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May 7, 2008
Vickie Pleus, APR
Community Information Manager

ECONOMIC DEVELOPMENT TRENDS REPORTED AT SECOND QUARTER BRIEFING MAY 7

More than 100 business professionals, local elected officials and city and school system representatives attended an economic development briefing presented by the Volusia County Economic Development Department May 7. The briefing covered economic trends for the first quarter of 2008, compared to those recorded in previous quarters and statistics from Florida and around the country.

Rick Michael, director of the County’s Economic Development Department, said the purpose of the meeting was to encourage participation by the community, and facilitate the understanding of economic trends and how they affect the local economy.

Michael presented statistics concerning new construction, employment, workforce, commercial and residential permitting data and the most recent information on home foreclosures.

“Often many people deal with perceptions and realities, and make decisions based on perceptions and not necessarily realities,” said Michael. “The information is provided today is to encourage the use of data and cross-referencing them to other types of information.”

According to Michael, an example of perception versus reality is the perception the construction industry has been seriously and negatively affected over the past year. Michael reported that, in reality, Volusia County averaged 14,000 construction workers one year ago, and today, construction employment has declined to 12,733 - not as low as perceived. Michael said that much of the decline in construction jobs is due to the reduced level of permit activity countywide and within the region.

The county’s workforce is growing at a rate of .5 percent compared to earlier levels of 1.5 to 2 percent, according to Michael. This change has been influenced largely by a general slowdown in the number of new residents migrating to the county. “Even with the slowdown, we are expecting upward of 30,000 new residents to Volusia County in 2008.”

Offsetting the addition of residents is the increasing number of families leaving the community for other parts of the country. Outmigration from Volusia County in recent years is trending upward, and is expected to reach between 22,000 and 23,000 residents in 2008.

While Orange and Seminole counties account for a little more than 20 percent of Volusia County’s inmigration, many of these residents are retaining their jobs in the greater Orlando market and making Volusia County their suburban home. “People are getting more square feet for their money in Volusia County as compared to Seminole and Orange counties,” Michael said, adding that the perceived value of the Volusia County school system also is a key driving factor. The cities experiencing the most impact of the expansion of Central Florida are those in West Volusia County, including Deltona, DeLand, Orange City and DeBary.

Commercial and industrial permitting activity is stronger than expected in the first quarter of 2008, which largely was influenced by major capital investments in Daytona Beach, Port Orange and Orange City. Residential permit activity for single family homes, while still slow, showed a modest gain to reach $69 million in the first quarter or 2008 as compared to $59 million in permitting for the fourth quarter of 2007.

The complete economic development statistical report for the first quarter of 2008 is available online. From the left-side menu bar, select “statistics, key reports” and scroll to the “Q2” document. For more information about the economic development briefing, please call Volusia County Economic Development Director Rick Michael at (386) 248-8048.

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