Market Research Meets the World’s Largest Outdoor Cocktail Party
There’s never been any love lost between the “dawgs” from Georgia and those with a heart full of Gator Pride. Aside from the fierce competition from two of the leading collegiate football programs in the country, Florida and Georgia also share a healthy competition of some growing industries. While neighbors preach the untouchable joy of winning the SEC championship game and try not to jinx the chance at a national championship, showing signs of strength in the local economy comes as a close second for community members as the pride of their state.
Both Georgia and Florida, according to IBISWorld state industry reports, are showing some interesting growth in specific industries and it’s time businesses in each state, and around the country, start taking notice. These industries are growing at a solid rate and should be on the radar for relationship managers at leading Community Banks.
Other industries that saw strong growth in the last five year period in Florida include used car dealerships and landscaping services.
Florida annual growth 2012-2017
Used Car Dealerships
Access the Florida state reports
In Georgia, it was nursing care facilities that saw an interesting development. Local growth was overshadowed by national growth, and while national growth is projected to climb even higher, the 2017-2022 projection for Georgia is expected to shrink to only 1.6%.
Access the Georgia state reports
Impact on Community Banks
As community banks continue to intertwine with local businesses, they need to keep their finger on the pulse of the different industries that make up, or could contribute to, a diversified portfolio. Knowing if the business a loan applicant is opening shows a strong projected growth rate, or faces low or high competition, is key information for decision makers.
The heating and air conditioning industry in Georgia for instance showed a far higher growth than it did in the rest of the country. The five year projection, however, shows that industry growth will stall considerably in Georgia, whereas it’s picking up by a hair nationwide. By looking at that information, as well as other data points, a community bank will know if the industry can continue to grow at a rate that will benefit internal goals.
Strong character and a handshake go a long way, but understanding the climate of your client’s industry within your footprint allows you to gain deep insight into how your portfolio might perform in coming years. The national average plays a minimized role in the economy of a tight-knit community and information covering that community is important for decision makers. It minimizes risk and allows decisions to be made from the perspective of a thought leader, instead of as a soothsayer.
Banks in Florida and Georgia have a lot of information to go through and a lot to brag about, and a lot to debate. Now it’s time to put on the helmets and really find out which state has what it takes.
Learn more about the local conditions in Florida and Georgia