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, 2020 - (Vol. 5, No. 2)
- Industry diversification in Southwest Florida fell in the fourth quarter of 2019, ranking eighth out of all 24 workforce regions.
- The Naples-Immokalee-Marco Island MSA was the third most diversified MSA in the state. The average annual IDI for the Naples-Immokalee-Marco Island MSA also increased, measuring at 8.728 for the four-quarter period ending in the fourth quarter of 2019.
- Industry diversification for the state of Florida increased to 8.634 for the fourth quarter of 2019, ranking it 17th out of 50 states.
The IDI for the Southwest Florida workforce region—comprising Charlotte, Collier, Glades, Hendry, and Lee counties—fell in the fourth quarter of 2019, indicating an decrease in workforce diversification for that time period. The workforce region’s IDI measured 8.601, a decline from the third quarter of 2019 revised measure (8.701), but still above the fourth quarter of 2018 (measured at 8.542). The IDI also fell in the rankings, registering as the eighth most diversified workforce region in the state (out of 24 total regions).
The increase in industry diversification for Southwest Florida is typical for the fourth quarter. Southwest Florida typically experiences higher index measures during the quarters spanning April through September, and lower index measures during the quarters spanning October through March. The lower index measures, expected 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. When the winter period ends and seasonal residents leave the region, the demand for both of these industries contracts, leading to a more diverse economy during the spring and summer period.
The Cape Coral-Fort Myers FGCU Industry Diversification Index (IDI) fell in the fourth quarter of 2019, registering at 8.598. While this was a decrease from the third quarter of 2019 (revised at 8.681), diversity for the MSA improved compared to the same quarter last year (8.539). Despite the quarterly decline, the MSA remained unchanged in the rankings, registering as the sixth most diversified MSA in the state, out of 22 total MSAs in Florida. The index registers between 0 and 10, with 0 being the least diversified, and 10 being the most diversified.
The Naples-Immokalee-Marco Island IDI decreased in the fourth quarter of 2019, with an IDI of 8.710—a decline from both the third quarter of 2019 revised measure (8.710) and the fourth quarter of 2018 (measured at 8.739). The Naples-Immokalee-Marco Island MSA also slipped in the rankings, down two spots to the third most diversified MSA in the state for the quarter.
The Punta Gorda IDI in the fourth quarter of 2019 was 7.489, unchanged from the previous quarter, but an improvement from the same quarter last year (7.387). The Punta Gorda MSA had the 19th highest IDI in the state of Florida (out of 22 MSAs in total).
Florida’s workforce experienced a decline in industry diversification during the fourth quarter of 2019, but improved in the rankings nationally. Florida’s IDI measured at 8.634, down from the third quarter of 2019 (revised at 8.643), but up from the fourth quarter of 2018 (measured at 8.624). Florida’s ranking amongst the states increased three spots to 17th, behind Kentucky (8.681) and ahead of Washington (8.618). The state continues to rank in the bottom of the Southeast Region, which contains five of the top 10 states with the highest IDIs in the United States.
Nationally, South Carolina, Georgia, and Tennessee had the three highest IDI measures, while Alaska, West Virginia, and Nevada had the three lowest IDI measures. The IDI for the United States was 8.645.