IDP Reports

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.

FIRST QUARTER, 2026 - (Vol. 11, No. 1)

The seasonally-adjusted IDI in Southwest Florida decreased minimally to 5.150 in the third quarter of 2025, ranking 6th out of all 21 workforce regions.

The Naples-Marco Island MSA was the third most industrially diversified MSA in the state (out of 22 total MSAs). Moreover, the Cape Coral-Fort Myers MSA and Punta Gorda MSA ranked 10th and 18th in the state, respectively.
Industry diversification for Florida decreased slightly to 5.189 for the third quarter of 2025, ranking 18th out of 50 states.

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The seasonally adjusted Cape Coral-Fort Myers FGCU Industry Diversification Index (IDI) decreased in the third quarter of 2025, registering at 5.046. This was down from both the third quarter of 2024 (revised to 5.078) and the second quarter in 2025 (5.053). The MSA slipped to the 10th most diversified MSA in the state, out of 22 total MSAs in Florida. The index registers between 0 and 10, with 0 being perfectly concentrated and 10 being perfectly diverse.

Industrial diversification in the Cape Coral-Fort Myers MSA gradually improved from 2015 to 2023, but has slowly declined over the past couple of years. The MSA saw quarterly decreases in employment across majority of the industries, with declines ranging from 0.5 to 25.1 percent. The top industry by total employment, Education and Health Services, increased 3.2 percent year over year, while all other industries in top 5 total employment exhibited no growth over the year.

Seasonality plays a significant role in the Cape Coral-Fort Myers MSA economy, as it is typical for the MSA to experience its lowest unseasoned IDI measures during the first and fourth quarters of the year, while having its highest unseasoned measures during the second and third quarters.

The Naples-Marco Island seasonally adjusted IDI registered at 5.211 in the third quarter of 2025 — a small decrease from both the last quarter (5.223) and same quarter last year (5.270). Despite the decline, the Naples-Marco Island MSA remained toward the top of the rankings, measured as the third most diversified MSA in the state for the quarter.

The seasonally adjusted IDI measure in the third quarter of 2025 continued a general downward trend for the MSA that began in the 2nd quarter of 2020. The jump and subsequent decline in industrial diversification can be attributed to the impact Covid-19 had on the Leisure and Hospitality sector in the MSA, which saw total employment drop 36 percent from the 1st to 2nd quarter of 2020. Employment in the sector has recovered since then and once again represented one of the largest industries in the 3rd quarter of 2025.

The MSA also saw year-to-year decreases in four of the top five industries, with declines ranging from 0.2 to 4.4 percent. Leisure and Hospitality, the second largest industry in the MSA, was the lone industry in the top 5 to see employment improve year over year, rising by 2.5 percent. Altogether, the top three industries in the Naples-Marco Island MSA represent 56.7 percent of total employment in the MSA, up 0.7 percentage points from a year ago.

The Punta Gorda seasonally adjusted IDI in the third quarter of 2025 was 4.738, a slight decline from both the last quarter (revised at 4.756) and from the same quarter last year (4.794). The Punta Gorda MSA had the 18th highest IDI in Florida, rising from being the 19th highest IDI in the previous quarter.

The MSA’s seasonal IDI continues to be the least diverse in Southwest Florida with the top five sectors accounting for 82.4 percent of the employment in the MSA and the top three accounting for 62.1 percent. For comparison, the top three industries in Cape Coral-Fort Myers MSA and Naples-Marco Island MSA account for 55.9 and 56.7 percent of total employment, respectively.

Historically, Punta Gorda MSA’s unseasoned IDI has exhibited less seasonal fluctuation than the other two coastal Southwest Florida MSA’s. Because the population in Punta Gorda has one of the highest median ages in the country (second highest median age out of 393 MSAs in the United States¹), the region remains highly concentrated in industries catered towards the elderly, with the Trade, Transportation, and Utilities, Education and Health Services, and Leisure and Hospitality industries accounting for 62.1 percent of total employment in the third quarter of 2025. These permanent residents help support these industries in the Punta Gorda MSA throughout the year.

¹ Source: U.S. Census Bureau, 2024 American Community Survey 5-year estimates, Table B01002: Median Age by Sex

The seasonally-adjusted IDI for the Southwest Florida workforce region —comprising Charlotte, Collier, Glades, Hendry, Lee and Monroe counties—decreased slightly from the second quarter of 2025. The region’s seasonal IDI measured 5.150 in the third quarter of 2025, less than both the previous quarter (revised at 5.164) and the third quarter of 2024 (5.199). The region fell to the sixth most diversified workforce region in the state (was previously 5th out of 21 total regions last year and 4th last quarter).

Following the same pattern as the MSAs, the region saw quarterly declines in most industries, ranging between 0.2 and 19.2 percent. The Education and Health Services, Trade, Transportation and Utilities, and Leisure and Hospitality were the top three industries in Southwest Florida during the third quarter and comprise 57.1 percent of total jobs. This share is slightly higher than the same quarter last year, when the top three represented 56.6 percent of total jobs.

Historically, the region typically experiences higher unseasoned 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.

Florida’s seasonal IDI measured at 5.189 in the third quarter of 2025, slightly below both the previous quarter (revised at 5.191), and the third quarter of 2024 (measured at 5.221). Florida ranked the 18th most industrially diversified state in the third quarter, improving from the same quarter last year, but maintaining the same rank as last quarter. The highest seasonal IDI for the third quarter of 2025 was Washington (5.684) while the lowest IDI in the nation belonged to Vermont (3.504).

Over the past year, the state has seen moderate improvements in employment for some of its larger industries – Education and Health Services industry (increased 1.7 percent) and Leisure and Hospitality industry (up 0.8 percent). Most other industries experienced either a slight improvement or a slight decline in employment over the past year. The Unclassified Industry declined 53.2 percent compared to last year, while the Information and Natural Resources and Mining industries fell 3.0 and 3.3 percent respectively.