The Regional Economic Research Institute first developed the Industry Diversification Index in Spring of 2016 and updates it on a quarterly basis.
Researchers and academics are encouraged to contact the RERI to request access to the data for use in academic studies and modeling. The IDI begins in 1990 and is computed for each Florida metropolitan statistical area, each Florida workforce region, and each U.S. state. Upon request, the RERI will compute it for any MSA in the United States.
SECOND QUARTER, 2022 - (Vol. 7, No. 2)
- Industry diversification in Southwest Florida decreased to 5.264 in the fourth quarter of 2021, ranking 9th out of all 24 workforce regions.
- The Naples-Immokalee-Marco Island MSA was the 3rd most diversified MSA in the state (out of 22 total MSAs). Moreover, the Cape Coral-Fort Myers MSA and Punta Gorda MSA ranked 16th and 20st in the state, respectively.
- Industry diversification for the state of Florida decreased to 5.184 for the fourth quarter of 2021, ranking it 22nd out of 50 states.
The IDI for the Southwest Florida workforce region—comprising Charlotte, Collier, Glades, Hendry, and Lee counties— decreased in the fourth quarter of 2021, indicating a decrease in workforce diversification for that time period. The workforce region’s IDI measured 5.264, a decline from the third quarter of 2021 (revised at 5.282), but a slight increase from the fourth quarter of 2020 (5.244). Despite the decline, the region remained the ninth most diversified workforce region in the state (out of 24 total regions).
The region’s IDI has fluctuated since the beginning of the Covid-19 pandemic, when the decline in hospitality and leisure employment forced the measure to spike in the second quarter of 2020. Historically, the region typically experiences higher index measures during the quarters spanning January through June, and lower index measures during the quarters spanning July through December. The higher index measures during the winter period can be attributed to an influx of tourism and seasonal residents, which leads to an increase in demand for both the retail trade and accommodation and food service industries to meet the seasonal demand. In return, the increased seasonal demand in these industries create spillover effects for all of the other super sector industries in the region. In addition, the first two quarters of the year are associated with crop harvesting in the region, creating demand in all other sectors of the economy as well. During the second half of the year, there is a higher concentration in fewer industries driven by construction, professional and business services, trade, transportation and utilities, and education and health services.
The Cape Coral-Fort Myers FGCU Industry Diversification Index (IDI) decreased in the fourth quarter of 2021, registering at 5.056. This was a decrease from the third quarter of 2021 (revised at 5.109), and an increase from the same quarter in the previous year (5.017). In addition to a quarterly decrease, the MSA went down two positions in the rankings, registering as the 16th most diversified MSA in the state, out of 22 total MSAs in Florida.
The Naples-Immokalee-Marco Island IDI slightly increased in the fourth quarter of 2021, with an IDI of 5.412 — a very small increase from the third quarter of 2021 revised measure (5.411), but a decrease from the fourth quarter of 2020 (5.443). The Naples-Immokalee-Marco Island MSA managed to maintain its ranking as the 3rd most diversified MSA in the state for the quarter.
The Punta Gorda IDI in the fourth quarter of 2021 was 4.889, an increase from both the last quarter (revised at 4.874) and the same quarter last year (4.796). The Punta Gorda MSA had the 20th highest IDI in the state of Florida, a singular ranking increase from both the previous quarter and the same quarter the previous year.
Florida’s workforce experienced a decrease in industry diversification during the fourth quarter of 2021, while also rising in the rankings nationally. Florida’s IDI measured at 5.184, down from the third quarter of 2021 (revised at 5.219), but the same as the fourth quarter of 2020 (measured at 5.184). Despite the decline, Florida’s ranking amongst the states increased significantly, rising five spots to 22nd, behind Hawaii (5.192) and ahead of New Mexico (5.139). The state rank remains in the fourth position of the Southeast Region, which contains five states in the top 25.
Washington, Colorado, and Oregon had the three highest quarterly IDI measures, while Arkansas, Connecticut, and Mississippi had the three lowest IDI. The IDI for the United States was 5.276 for the fourth quarter of 2021.