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, 2021 - (Vol. 6, No. 2)
- Industry diversification in Southwest Florida decreased to 5.246 in the fourth quarter of 2020, ranking 13th out of all 24 workforce regions.
- The Naples-Immokalee-Marco Island MSA was the 3rd most diversified MSA in the state. The average annual IDI for all three Southwest Florida MSAs continued to improve in 2020.
- Industry diversification for the state of Florida decreased to 5.188 for the fourth quarter of 2020, ranking it 20th 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 2020, indicating a decrease in workforce diversification for that time period. The workforce region’s IDI measured 5.246, a decrease from the third quarter of 2020 revised measure (5.282) and a slight increase from the fourth quarter of 2019 (5.238). The region ranked as the thirteenth most diversified workforce region in the state (out of 24 total regions).
After spiking in the second quarter of 2020, industry diversification in the workforce region continues to decrease. The Covid-19 pandemic played a role in the IDI spike, as employment in the hospitality and leisure industry decreased by 35 percent from the first to 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 2020, registering at 5.017. This was a decrease from the third quarter of 2020 (revised at 5.090), but an increase from the the same quarter in the previous year (5.005). In addition to a quarterly decrease, the MSA dropped two positions in the rankings, registering as the 18th most diversified MSA in the state, out of 22 total MSAs in Florida.
The Naples-Immokalee-Marco Island IDI declined in the fourth quarter of 2020, with an IDI of 5.443—a decrease from the third quarter of 2020 revised measure (5.472), however higher than the fourth quarter of 2019 (measured at 5.368). The Naples-Immokalee-Marco Island MSA maintained its ranking as the 3rd most diversified MSA in the state for the quarter.
The Punta Gorda IDI in the fourth quarter of 2020 was 4.783, a decrease from both the last quarter (4.806), the same quarter last year (4.805). The Punta Gorda MSA had the 2rd lowest IDI in the state of Florida.
Florida’s workforce experienced a decrease in industry diversification during the fourth quarter of 2020, while improve in the rankings nationally. Florida’s IDI measured at 5.188, down from both the third quarter of 2020 (revised at 5.227) and the fourth quarter of 2019 (measured at 5.206). Florida’s ranking amongst the states, however, rose five spots to 20th, behind Texas (5.191) and ahead of South Carolina (5.180). The state ranks in the third 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 Alaska, Delaware, and Mississippi had the three lowest IDI measures. The IDI for the United States was 5.257 for the fourth quarter of 2020.