When most people think of South Florida’s top industries, they think of tourism, hospitality and real estate. Manufacturing? Not so much.
But due to the region’s seaports, international airports and prime location, the manufacturing industry has matured into a robust sector garnering national accolades for its growth. For example, Forbes magazine named Miami-Dade and Palm Beach counties in its 2018 list of counties where manufacturing thrives.
“Manufacturing in South Florida isn’t thought of as sexy, and that’s a struggle for our industry,” said Matthew Rocco, president of the South Florida Manufacturers Association. “But in reality, there are some really good, high-paying jobs down here, and it touches everything we do in our economy. It’s really the backbone of our economy.”
The sector benefits from South Florida’s railways, highways, three major seaports and three international airports – including Miami International Airport, which is No. 1 in the nation for international freight. That, and its status as an international hub, has helped make the region’s manufacturers strong trade partners with Latin America and the Caribbean.
“Everything that a manufacturer needs is all here,” Business Development Board of Palm Beach County President and CEO Kelly Smallridge said. “If you look at the talent and education networks, the university systems, the transportation and mobility, the bilingual workforce … the resources we have in South Floridaare unmatched.”
Manufacturing: Made in South Florida
The booming manufacturing industry is great news for job growth and investment opportunities. Some manufacturers use private funding, while others rely on strategic acquisitions to grow their businesses.
The industry employed nearly 89,000 people in South Florida and supported an additional 2.9 million indirect jobs in 2018, according to the U.S. Bureau of Labor Statistics. It expects those number to swell nearly 10% by 2026.
Those workers earn an average annual wage of $57,163, with total wages for the sector at about $5 billion, BLS statistics show. That compares to the state’s median household income of $52,594, according the most recent U.S. Census data.
South Florida is a prime location for the building of aerospace and marine materials. Pharmaceuticals, medical devices, biotechnology, and health and beauty products also thrive.
“What’s most important for companies now is proximity to the customer,” Greater Fort Lauderdale Alliance President and CEO Bob Swindell said, adding that the region’s accessibility to Latin America and the Caribbean provides a competitive advantage, as it shaves companies’ manufacturing costs.
“Our marine and aerospace industries in South Florida are an example of this because, with our transportation networks, we’re the perfect spot for servicing boats or aircraft,” he said.
The industry is also quite automated, said Stanley Rigaud, the Miami-Dade Beacon Council’s director of international economic development and trade and logistics. South Florida’s manufacturers are diverse and small, with 93% of them employing less than 50 workers.
“We’re in good shape,” Rigaud said. “We’re seeing the area become a big attraction for a lot of startups here, particularly from South America – but also from all over the world.”
Cosmetic Solutions lures big-name brands
For Cosmetic Solutions CEO Warren Becker, the best part of his day is walking into a mall and spotting his company’s products displayed everywhere.
The Boca Raton-based company manufactures private-label skincare products for established brands, physicians and skincare professionals, and even some celebrities.
Cosmetic Solutions works with clients to create, mass-produce and market its beauty products. It makes about 50,000 products, including cleansers, exfoliators, moisturizers and wrinkle treatments. The company will manufacture 10 million to 15 million units this year alone, Becker said.
Established in 1991, Cosmetic Solutions focuses on pure and clean beauty products created with natural ingredients. The company employs about 125 workers and occupies about 90,000 square feet of manufacturing space.
Cosmetic Solutions has confidentiality agreements with its clients, so it cannot disclose the companies or celebrities it works with, Becker said. However, its products can be found at major cosmetics retailers such as Ulta Beauty and Sephora, he added.
Becker declined to reveal the private company’s annual revenue but said it’s projecting revenue growth of 25% this year.
“We’ve been able to bring on some meaningful customers, and we’ve got some exciting opportunities with big brands and celebrities in our pipeline,” Becker said. “It’s really just astounding to keep growing commercially as well as operationally.”
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