Florida's economy had been characterized by growth since World War II. The dramatic increase in the state's population, from slightly less than 3 million in 1950 to almost 13 million in 1990, has been largely responsible for this growth. For years, however, Florida's geographical position of the peninsula on the southeastern edge of the continental United States, removed from population centers contributed to an image of the state as part of the national frontier. At the beginning of the twentieth century, Florida's economy was still relatively weak and its population small. The economy was primarily based on agriculture and forestry. The completion of an efficient railroad link between the state and the rest of the nation in the 1890s began to stimulate many sectors of the economy, including tourism, citrus and vegetable production, forestry, and mining. During the twentieth century, many social and technological changes occurred in the United States. Several of these changes contributed to the population and economic growth of Florida. The most significant change was a new national prosperity. Increased income enabled many Americans to buy agricultural products, such as citrus fruits and winter vegetables, grown in Florida; to visit the state during vacations; and to choose it as a place for retirement. The United States also developed a transportation system capable of delivering both people and goods long distances easily and economically. This system further reduced Florida's isolation from the rest of the nation. In addition, widespread use of air conditioning had an enormous impact upon Florida's economy, making its long summers more bearable. Florida's leading economic activities, in order of earned income, are services, government, retailÊtrade, manufacturing, construction, finance, and transportation. NonwageÊsourcesÊofÊincome are also vital to the state's economy. Florida citizens, since so many are retired, receive a higher proportion of their personal income from transferÊpayments (for example, socialÊsecurity), dividends, interest, and rent than citizens of any other state. Agriculture Florida normally leads the southeastern states in valueÊofÊfarmÊsales and is in the top ten in the nation. The state's climate is hot and humid and its soils are generally low in fertility. As a result, Florida's agriculture is energy intensive, requiring applications of large amounts of herbicides, pesticides, and fertilizers. Although the state usually receives abundant rainfall, rain does not always arrive at the right time of year for crops. Many farms, particularly in southern Florida, have elaborate irrigation systems. Its agriculture produces far higher sales per acre than most states, since much land is devoted to vegetables, citrus, and nursery plants. Citrus accounts for almost one quarter of all agricultural sales. Of all the varieties of citrus, oranges account for the majority of total sales (79 percent), with grapefruit a distant second with 17 percent of total sales. Florida's oranges are particularly well suited for orange juice concentrate, and much of the nation's orange juice concentrate is processed in the state. Freezes during the 1980s wiped out production on hundreds of thousands of acres of groves in central Florida, necessitating expansion of the citrus region into the poorly drained area west of Lake Okeechobee, as well as importation of orange juice concentrate from Brazil. Yields in the southern part of the peninsula are often lower than in the central peninsula, but killing freezes are less likely. Florida's total acreage, production and value of fresh market vegetables is exceeded only by California. Florida ranked high among the states in production of a number of vegetables, including fresh snap beans, cabbage, sweet corn, cucumbers, eggplant, sweet peppers, and celery. The state's special advantage is its ability to produce fresh vegetables for northern markets during the winter and spring. Since the 1970s, however, Florida's winter vegetable industry has faced stiff foreign competition, notably from Mexico. In the summer, high temperatures preclude the production of many vegetables. Sugarcane became a major crop in Florida only after the United States severed trade relations with Cuba in 1961. By 1980, sugarcane had become the leading product in dollar value of farm sales among the state's field crops. Almost half of all sugarcane produced in the United States is raised in Florida, almost all on organic soils along the south shore of Lake Okeechobee. Florida has one of the fastest growing ornamentalÊhorticulture industries in the country. The demand within the state from new residents partially accounts for this growth. A national market for its nursery plants developed because Florida's climate permits many tender ornamentals to be grown outside year-round, whereas farther north expensive greenhouses must be used. Florida's beef cattle industry has grown to national importance, and among southeastern states it is only exceeded by Kentucky. The industry began to grow rapidly only after World War II, when higher beef prices made ranchers more enthusiastic about applying advances in cattle parasite control, animal breeding and pasture improvement. The state has specialized in the sale of yearly stock to feeder lots, mainly on the Great Plains. The dairy cattle industry also contributes to the state's economy, and through most of the year meets the milk demands of the state. Although in recent years the number of dairy cows has decreased, overall production has been maintained because of increased productivity per cow as a result of improved breeding and management. Forestry Florida's forests provided one of its first products to reach the national market. Even before the Civil War, steam-powered circular saws were cutting softwood lumber, primarily in northern Florida. In addition, pine was tapped for turpentineÊandÊrosin (naval stores). In time, lumber and naval stores production declined in relative importance, but during the twentieth century the development of a process to turn pine into pulp for both cellulose and paper gave the forests a new significance. Because pine matures far more quickly in the South than the North and because land on the southern coastal plain was relatively cheap, pulp and paper companies built mills and bought large areas of land in the South during the 1920s and 1930s. In 1990, Florida had more land in corporate tree farms than any other state except Georgia. Mineral Production Florida has a known reserve of phosphate rock, which is primarily used for fertilizer, that is greater in value than that of any other mineral. In terms of sales, Florida produces most of the nation's phosphate, much of which is exported. Although phosphate sales are important to the state's economy, phosphate mining has also resulted in a number of environmental problems, which the industry and state and local governments are working together to solve. These include landÊreclamation, heavy water usage, ponding of slurry, and the possibility of radiation problems in mined-out sites. Increasingly, the industry must also meet foreign competition. By 1990, the value of petroleum produced in the state had fallen far below that of phosphate, although in 1980, the two were almost equal. There are two areas of petroleum production in the state: one in the southwest, the other in the northwest. The Jay Field in northwest Florida is the most important. Discovered in 1970, its reserves have almost been depleted. Oil companies have engaged in intensive exploration for petroleum off Florida's Gulf coast since the early 1970s. Exploration continues although no discoveries have been made. Fishing Florida has a well developed commercialÊfishing industry. Its future, however, is threatened by the overfishing of the relatively few commercial species and by foreign competition. Shrimp is the most valuable species caught, accounting for over 40 percent of total sales, followed by lobster, crab, and snapper. Most shrimp are now caught off the Tortugas (west of Key West) and off the Gulf coast. Florida's national importance in both value and weight of the shellfish catch has declined. In part, this decline results from overharvesting. Some foreign nations now prevent Florida fishermen from entering their territories. Recently the nation has imported large quantities of shrimp from Ecuador and China, where they are raised in confined areas cheaply. Recognizing the benefits of a stable source of shrimp, Florida investors have spent considerable amounts of time and money attempting to grow them under artificial conditions, but have not had the success of either Ecuador or China. Manufacturing Manufacturing has traditionally played a smaller role in the Florida economy than in the economy of the average state. In part, this has resulted from the state's remoteness from the major population centers of the nation. The relative importance of industry to Florida has also been inhibited by the state's growing popularity as a tourist and retirement center. Unlike other southern states, the state government of Florida until recently did little to attract manufacturing and even enacted legislation to discourage it. In recent years, however, the state has become more aggressive in pursuit of industry. By earned income in 1990, the electronics industry was the most important type of manufacturing, followed by transportation equipment (except motor vehicles). Industry is highly concentrated in the state's larger cities, especially those on the southeastern coast, and Tampa Bay. A number of counties with small populations, many of which are in northern Florida, are far more economically dependent on manufacturing than are counties with large cities. Older manufacturing firms in the state are mainly based on processing the state's raw materials (phosphate, citrus, timber) or are market oriented (printing and publishing, baking, bottling). Market-oriented industries are among the state's most dynamic. For example, the tourist and retirement population has had much to do with the elevation of Florida to among the nation's leaders in the construction of pleasure boats. Printing and publishing, particularly of newspapers, grows along with the population. The electronics industry is relatively new to the state. The beginning of the state's high-technologyÊindustry dates from the start of the national space program in 1957, when Cape Canaveral was chosen as the site of the United States launch center. Since then some of the nation's largest technologically oriented corporations have opened facilities in the state, several employing thousands of workers each. Florida's importance in the electronics industry, including computers, is now nationally recognized. Construction The construction industry, Florida's fifth most important in terms of earned income, has been unstable. Rapid population and economic growth has resulted not only in an active market to meet the needs of new residents, but it has also spawned considerable speculation in the housing market. Construction fluctuates as much by the cost and ease of obtaining loans as by demand. This has led to periods when there is a glut of homes and commercial buildings for sale, as well as periods of scarcity. As in the rest of the nation, housing costs in Florida have risen rapidly. The share of Florida's employed who work in construction is higher than that of the nation. The state's economy is more sensitive than that of most other states to fluctuations in construction. Wholesale and Retail Trade In terms of earned income, retail trade is the third most important component of the state's economy. Florida's retail establishments serve tourists, increasing numbers of whom are Latin Americans and Europeans, as well as residents. Florida's recent population growth has brought about an enormous expansion in retail establishments. There are few places in the nation which have experienced a greater growth in the number of large regional malls. In Florida, a greater share of total retail sales are made in department stores than in most other states. In contrast to the state's perÊcapitaÊretailÊtrade, Florida's per capita wholesale trade is below that of the nation. For years, Jacksonville was the state's major wholesale center. Lately, Miami, which serves Latin America as well as Florida, has overtaken it, and Tampa and Orlando are increasing in importance as wholesale centers. In 1979, the state began to authorize "free trade zones," which provide tariff protection for importers, exporters, and manufacturers. The Miami Free Trade Zone, which is especially important in Latin American trade, is by far the largest free trade zone. Transportation and Foreign Trade Florida's economic growth, to a great extent, has depended upon the quality of its connection with other places. Trucks move the vast majority of Florida's agricultural and industrial products. Airlines bring a greater percentage of tourists to Florida than to any other state except Hawaii. In large measure, the growth of the Miami tourist industry after World War II was the result of combined advertising efforts of airlines, hotels, and car rental agencies. Maintenance facilities for several major airlines, with employment in the thousands, are located in Miami. Florida's seaports have grown to national dominance in handling cruise ship passengers, and have considerable significance in value of international trade. Latin America and Japan are Florida's principal trade partners. By value of trade, Latin America is the primary destination of Florida exports, and Japan is the major source of the state's imports. Jacksonville is the largest port of entry for Japanese automobiles on the East Coast. Finance, Real Estate, and Government Jacksonville, Orlando, Tampa, and Miami are the state's financial centers. Jacksonville long held primacy within the state in banking, but Miami's growing population and its close connection with Latin America now give it far greater national and international importance. Recently, as a result of the state's new branch banking regulations many Florida-based banks have merged with others whose headquarters are in other states. Jacksonville, however, has retained its importance as an insurance center and is the home office of several national insurance companies. The one category of financial employment that ranks far higher in relative importance in Florida than in the nation is real estate. The state's rapid population growth has given rise to over twice as many real estate employees per thousand people in Florida than in the nation. Counties with exceptionally high ratios of real estate employees are those that attract the most new residents. Although a large share of Florida's population is dependent (retirees and children under fifteen), the percentage of local and state civil servants in the total work force is no higher than that of the nation. Civil servants, however, account for a large share of the work force in Tallahassee and Gainesville. The federal payroll makes an important contribution to the local economy in counties with large military installations. Tourism Tourism is Florida's most widely known economic activity. In 1990, slightly over 39 million tourists visited the state, contributing many billions of dollars to the economy. For retail sales considerations, the state's tourists contribute the equivalent of well over 1.5 million residents to the economy, but they require far fewer government services than residents. National affluence after World War II, broader based than in the earlier part of the century, made it possible for an ever-growing number of people to vacation in Florida. Before World War II, most tourists came by train and in the winter. After the war, whole families began to come, most by car, and commonly in the summer. These tourists were primarily attracted to the beaches along the Atlantic coast. In the 1970s, theme parks were built in the center of the state, the most famous being Walt Disney World. Theme parks have had much to do with an increase in the length of Florida's tourist season to twelve months a year. The maintenance of a successful tourist industry has not been without difficulties. Florida now must compete with many places throughout the nation and the world for visitors. To date, Florida has been successful in the competition for United States tourists, as well as attracting a growing number of tourists from abroad, particularly Europe. A note of concern for the future, however, has arisen if the realÊcost of gasoline should rise. If fuel should become so expensive as to elevate the cost of transportation to Florida prohibitively, the state's tourist industry would be severely hurt. Florida Regions Throughout this century, Florida's Peninsular Coast has experienced dramatic population, and accompanying economic, growth. The population has grown gradually along the coast from traditional retirement centers such as Miami Beach, Ft. Myers, and St. Petersburg. There has also been an influx of younger people into the region who have found jobs primarily in construction and service industries. Dade, Broward, Brevard, and Hillsborough counties are among the state's manufacturing centers, whereas Charlotte, Collier, Lee, and Sarasota counties cater mostly to tourists and retirees. Agriculture once played a more significant role in the Peninsular Coast economy, but urbanization has removed much land from crop and livestock production. The arrival of so many people to the Peninsular Coast in so short a period has not occurred without problems. With growth have come potential problems of water availability, air quality, and road congestion, as well as social problems. Miami continues to attract many people including increasing numbers from abroad. Few, however, are retirees, who now more frequently choose other coastal counties. The Peninsular Interior has played a significant role in Florida's economy since the nineteenth century. After the Civil War the citrus industry spread gradually southward from along the St. Johns River and its tributaries to the central highlands. Vegetable farming, cattle raising, and phosphate mining also increased during this period. Today the Peninsular Interior is more economically diverse than any other region in the state, with agriculture, manufacturing, and tourism sharing importance. The majority of Florida's citrus, beef cattle, dairy products, sugarcane, and vegetables are produced in this region. Citrus, sugar cane, and phosphate are processed as well as produced within the region. In addition, Orlando, the region's largest city, has a diversified industrial base, including a growing electronics industry. Tourism has grown dramatically along the route of Interstate 4 between Tampa and Orlando. Near Orlando is Walt Disney World, the state's most popular tourist attraction, which draws approximately one-quarter of all visitors to Florida, as well as Sea World and Universal Studios. Busch Gardens, another popular tourist attraction, is in Tampa. The Peninsular Interior is popular with retirees as well as with tourists. There are many small planned retirement communities extending as far north as Marion County. The North is distinct both physically and culturally from the two peninsular regions. It shares many of the physical and cultural characteristics of the two states immediately to its north, Georgia and Alabama. Cotton and timber became the bases of the region's economy before the Civil War, just as they did in southern Alabama and Georgia. Agriculture and forestry are still major components of North Florida's economy. Farming in the north is more mixed than in the other regions of the state and less energy intensive. Field crops such as peanuts, soybeans, corn, cotton, and tobacco are raised. Beef cattle and, to a lesser extent, hogs are raised on many farms. Around Madison, there is a thriving broiler chicken industry, and in Clay County there are large dairy herds. In the 1920s, the large paper mills began to buy poor, cutover lumber company land in the region cheaply. These areas are now operated as huge scientifically managed tree farms, supplying the raw materials for pulp and paper mills, which are scattered from Pensacola to Jacksonville. The North has a rapidly declining oil field at Jay, northeast of Pensacola. Phosphate is also mined and processed approximately 100 miles west of Jacksonville. Fishing is locally important along the coast, and the shoreline, especially from Panama City to Pensacola, attracts many summer tourists. Naval and Air Force bases are located in the western panhandle and in Duval County, and are major civilian as well as military employers. Tallahassee, the state capital, not only has a major governmental function, but is also the home of two state universities. Conclusions In large part, the strength of Florida's economy has been its diversity. Tourism, retirement income, agriculture, manufacturing, and construction are all important to the state's economy, and to a degree insulate it against national cycles in the economy. The state, however, has to resolve two critical problems. First, its tax base is too small to build an infrastructure to accommodate its rapidly growing population. Second, it has to make a greater effort to work out a better relationship between its population and the state's physical environment. The resolution of these problems will greatly improve the state's already attractive national image.