How the Pandemic Environment Fuels South Florida Business Growth
I’ve been talking with business owners in various industries since March 2020, and in the course of those conversations, I'm seeing some unusual ways that the pandemic is driving business trends – some of them, surprisingly, for the good of society. The internet-driven trend toward conducting business at home and running companies online using a mostly remote workforce has contributed to business growth in South Florida including during the COVID disruption.
This growth seems steady and measurable, based on an analysis of the 2020 edition of Inc. magazine’s “Inc. 5000” list of the United States’ fastest-growing, privately-held companies. Of the 28 industries on the list, software had the most companies – approximately 11% of the list. The second most-listed industry was Advertising & Marketing (approximately 9% of the list). The Business Products & Services industry was a close third, also with about 9%.
2020 US Industries with the most Fast-growing Privately-held Companies
Software
Advertising & Marketing
Business Products & Services
Florida
As a Florida business consultant who focuses on profitability and growth, I then narrowed in on businesses on the list located in Florida, roughly 8% of the total list. This makes Florida the third largest state represented in this group noted for fast growth, behind only California and Texas.
2020 States with the most Fast-growing Privately-held Companies
California
Texas
Florida
South Florida
Additionally, a good chunk of the Florida businesses listed (slightly more than 40%) are based in South Florida: Miami-Dade County, Broward County and Palm Beach County.
The Advertising & Marketing industry, second on the list overall, was the most listed industry in Florida (11% of the state) and in South Florida (at 14%). Business Products & Services, third on the list overall, was the second most listed in the state (at roughly 10%), and also the second in South Florida (about 13% of South Florida).
To see what was driving the growth of businesses in the Advertising & Marketing industry and Business Products & Services industry, I took a closer look at the 41 South Florida companies in these two categories. The driver is clearly the internet and online operations.
Of the Advertising & Marketing companies listed in South Florida, roughly 20% sell software development services or software as a service (SaaS). On top of that about 30% offer internet-focused marketing services, such as digital marketing, digital media assistance and internet marketing campaigns. The current pandemic shift of more people doing business remotely and, therefore, online, clearly fueled the growth of these companies, accounting for 50% of the list.
Of the Business Products & Services companies listed in South Florida 20% offer services intended to support online commerce, provide remote services or sell IT support for remote work programs. In these areas, the pandemic had a more positive impact than might have been expected due to the shift to online business, sales and communication.
The outlook
Developments to watch in this environment include tracking the impact of the migration of some California technology companies to Florida and the impact of the national vaccination program on the potential reinvigoration of retail and hospitality industry players. Tourism, a significant foundation of Florida’s economy before the onset of the pandemic, has taken a bad hit, but analysts believe that widespread vaccination has the long-range potential to put hospitality companies – notably hotels and airlines – back on Inc.’s roster. The cruise industry may have a longer swim back to a growth environment.