According to an article published by CNN Business, there are five states (Florida among them) where their economies are stronger today, as compared to their pre-pandemic numbers in March of 2020. The “Back-to-Normal Index” created by CNN and Moody's Analytics shows which states they are, and at what percentage they are “back to normal.”
The Index and Rankings
With statistics like this, it’s important to understand what’s being measured. According to the article, the index is composed of a basket of economic indicators that include: unemployment rates, claims for jobless benefits, consumer spending, and consumer behavior.
South Dakota, Florida, Rhode Island, Nebraska and Idaho are all thriving, operating at or above where their economies were in early March 2020 before the pandemic forced businesses to shutter and workers and students to stay home. South Dakota's economy is at 106% of its pre-pandemic strength, according to the index, while Florida's economy is at 101%. The other three states are operating above 100% of pre-Covid level as well.
Florida’s Economic Recovery
Recovery among the different states is varying widely, but Florida is shining brightly. States with larger service industries, or those more reliant on tourism (like New York, California, and Hawaii for example), are having a harder time bouncing back compared with others; however, Florida seems to be the exception to that trend. Without foreign visitors and cruise ship operations, Florida’s draw for domestic tourists has remained high and is staying high. In fact, experts are predicting that the Fourth of July travel volume in Florida is to be the second-highest on record, nearing pre-pandemic highs. Florida also has a real estate market that is booming, and an influx of new residents from the northeast, Midwest, and west coast. Once the cruise ship industry gets back up and running, and once Florida can welcome back tourists from overseas, that will accelerate our economy even further.
What it Means for Florida Businesses
With population growth and tourism fueling Florida’s economy, businesses who had seen a fall in revenue during 2020 are climbing back to normal pre-pandemic numbers, which makes it a fantastic time for sellers to think about putting their businesses on the market. It is truly a seller’s market out there. We have so many more active buyers looking to purchase good businesses than we have quality business listings to offer them. Because Florida fared so well during the pandemic, coupled with the onset of remote work, and people generally reinventing their lives, people are moving to Florida in droves, which can only mean positive things for Florida’s small businesses. This really makes it the perfect time for business owners who want to sell their business to list, because the buyer demand is there like we have never seen it before. For a buyer, Florida’s economic future couldn’t be brighter, so it’s the perfect time to invest in a business here. If you are thinking about selling your business or buying a Florida business, we would be honored to help. Get in touch with us today!