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Why South Florida is a Global Private Jet Hub

Why South Florida is a Global Private Jet Hub

Why South Florida is a Global Private Jet Hub

Private aviation has set new records and greeted new customers during the past 18 months. The pandemic set the stage for this industry to flourish, behind its unparalleled flexibility, comfort, and safety standards. Yet, there is one place that has registered a steady increase in demand well beyond the past three years, truly positioning as one of the top private jet hubs in the world – South Florida.

Welojets, a Miami-based air charter company, projects that South Florida’s strategic location, proximity to the Caribbean and Latin America, and established routes to New York, will continue playing a major role in driving demand. A mix of variables, as Martin Baldoma Jones says, CEO of Welojets, is the main reason behind South Florida’s ascent to one of the top business aviation hubs in the world. 

“Weather and beaches aside, South Florida has a handful of executive airports that constantly top national rankings in terms of movements. The number of private aircraft based in the region also helps, as well as the proximity to the Caribbean and the recent relocation of many cold-weather Canadians and Americans. South Florida is set to thrive for years to come.” 

Private jet airports

According to 2021 data from Argus TraqPak, five of the top 25 executive airports in the U.S. were based in South Florida: Palm Beach, Miami-Opa Locka, Naples, Fort Lauderdale Executive, and Fort Lauderdale International. 

Additionally, 2022 data from WingX positions Palm Beach as the main terminal with almost 34,000 movements to date in the region, followed by Miami-Opa Locka with almost 23,000, Miami International Airport (11,000) and Miami Executive Airport close to the downtown with roughly 5,000 movements. The same data shows that South Florida has increased 11% versus last year in number of flights (73,000) and 13% in flight hours. 

Private jet routes and aircraft

In terms of routes, it is widely known that the South Florida – New York connection is one of the main in the country throughout the year. In fact, Palm Beach – New York leads the list of all departing flights from South Florida with almost 4,400 movements during 2022, while Miami – New York comes in close at second place with nearly 4,100. 

The Bahamas is the main international destination from South Florida, with almost 5,000 movements in 2022, followed by Mexico and Canada.

In terms of types of aircraft in the South Florida sky, the super midsize jet segment leads the way with more than 18,000 operations in 2022, while heavy jets and light jets have roughly 11,700 movements apiece. 

Although Teterboro is probably the world’s most coveted private aviation airport, which also has a good connection to Europe, South Florida’s demand diversity, short and long range, has been the perfect foundation to establish as one of the top private jet hubs in the world, with the Caribbean also playing an important role as a demand driver. The global business aviation market, from aircraft manufacturers to operators and brokers, should continue expecting big things from South Florida during the foreseeable future.

About Welojets

WELOJETS is a global air mobility company, with offices in Miami, Buenos Aires, and Madrid. We have a great team, focused on offering the best charter flights anywhere in the world including private jets, cargo, airliners, helicopters, and medical flights. We work with competitive pricing and maximum safety standards and provide a tailor-made concierge experience to each one of our customers.

 

port tampa bay

BIG SHIP READY: COSCO Shipping is Among Container Lines that Call Port Tampa Bay

Port Tampa Bay has emerged as Florida’s preferred new supply chain solution for containerized cargo. The incorporation of direct Asia container services and new connections to Mexico and Central America have significantly enhanced the port’s role in serving the state’s largest and fastest-growing market—the Tampa Bay/Orlando 1-4 Corridor, Florida’s distribution hub. 

The Central Florida region has boomed into one of the hottest industrial real estate markets in the country, becoming the state’s hub for distribution, logistics and manufacturing. As the “front door to the I-4,” Port Tampa Bay is well situated to help businesses capitalize on the growth of the region, which is driving demand for retail, e-commerce, food & beverage, energy products and construction & building materials. 

New tenant Celadon will soon break ground on a paper fiber manufacturing plant that aims to generate up to 80,000 TEUs/year for export to Asia. The port recently expanded terminal capacity with additional paved storage and extended berths to keep pace with continued growth. Part of the expansion includes additional cranes and equipment, and new trans-load warehouse facilities.

The Port recently welcomed CMA CGM, COSCO, Evergreen, OOCL, Maersk and Sealand to their family of container lines offering an array of new services, joining established carrier partners ZIM, MSC and Seatrade. 

Expanded connections serving trade with Mexico offer more efficient supply chain solutions versus the traditional costly and congested overland routes. Work Cat recently began offering a weekly Brownsville Texas-Port Tampa Bay container-on-barge services using 53-foot containers, which is especially attractive for customers used to receiving deliveries by truck from Monterrey and Northern Mexico. ZIM recently launched a weekly Altamira-Port Tampa Bay service, the Mexico Tampa Shuttle, with Kuehne and Nagel as partners on the new service, promoted as the Blue Marlin Express. Seatrade’s SeacatLine also increased the frequency of its Costa Rica service to weekly.

Importers and exporters in Florida’s distribution hub now enjoy significant savings as truckers make as many as three to four roundtrip deliveries per day from Port Tampa Bay to their distribution centers. Partners such as container terminal operator Ports America and cold storage specialist Port Logistics Refrigerated Services have made it possible for Port Tampa Bay to expand infrastructure and capacity to ensure it is well-positioned for continued growth.

BYD

BYD Brings Sustainable Transportation to Florida

The City of Ocala, Florida represents the first in the state to add Build Your Dreams-branded innovative trucking solutions to its fleet.

The Ocala City Council confirmed the approval of five Class 8 battery-electric refuse trucks to replace the currently used internal combustion-powered trucks. The addition of the trucks will begin through the pre-approved 2021 three “quiet, clean-electric” refuse trucks with the addition of two more trucks to follow in 2022.

“The community of Ocala has taken a leadership role in Florida with the purchase of these BYD electric trucks,” said John Gerra, Sr. GerrDirector of Business Development with BYD Motors.

Officials confirmed these will bring an estimated fuel cost savings of nearly 78 percent. The refuse trucks offer impressive maintenance cost savings as well, with officials stating upwards of 75 percent expected in savings. The addition of the refuse trucks equals a total life cycle savings of approximately $270,000 and a return on the taxpayers’ investment in under 5 years for the City of Ocala. BYD confirmed union labor in the U.S. will be responsible for assembly.

“All BYD trucks are purpose-built and utilize our proprietary safe battery technology that exceeds the requirements for some of the most rigorous safety-testing programs around the world,” Gerra concluded.

Build Your Dreams (BYD) is an LA-based innovative manufacturing company that boasts the title of the largest manufacturer of electric vehicles globally in addition to pioneering battery-electric transportation solutions across the globe. Known for being the “Official sponsor for Mother Nature,” the company is also heavily involved in sustainable development, workforce diversity, and community service.

top states

TOP 10 STATES FOR MANUFACTURING 2019

It’s safe to say that most of the products we use daily were manufactured somewhere. From the clothes we wear to the cars we drive, a long line of wheels must be set in motion before the things we own end up in our hands. That’s why manufacturing and the people who manufacture are so important. 

Whether you have a product that needs manufacturing or need a manufacturer to make that product, finding the best team for the job is paramount to your product’s success and your businesses survival. These 10 states have an edge over the rest when it comes to manufacturing. From incentives to low tax rates to education programs that encourage students to consider manufacturing careers, these states are leading the country in manufacturing. Here’s why.

OHIO

With manufacturers in Ohio accounting for 12.56 percent of the state workforce, this Rust Belt state remains a manufacturing powerhouse despite recent shifts in the manufacturing landscape. Though smaller in size than many other states, Ohio is still the third largest in American when it comes to manufacturing, with a total output of $107.95 billion in 2017, and $50.40 billion in exports in 2018. To date, Ohio is home to more than 12,000 manufacturing firms, with 89 percent of those exporters being small businesses. 

MICHIGAN

Boasting total manufacturing output of $96.22 billion in 2017, Michigan has seen a significant resurgence in manufacturing in the past decade. Still king in the motor vehicle and vehicle parts manufacturing marketplace, the Wolverine State has also begun to earn a reputation for manufacturing quality machine parts, chemicals and pharmaceuticals. A small business friendly state, nearly 90 percent of all exporters in Michigan in 2018 were from that sector. Manufactured goods exports in 2018 alone totaled $55.35 billion.

CALIFORNIA

Consistently ranked among the top 10 states for manufacturing in the U.S., the Golden State workforce has nearly 8 percent of its employees working in that sector. California’s total manufacturing output was more than $300 billion in 2017, and 2018 saw nearly $155 billion in exported manufactured goods. With over 25,000 manufacturing firms (of which 93 percent are considered small to medium-sized businesses), California boasts a skilled workforce that is in it for the long haul, with many workers considering manufacturing a career, not just another job. California manufacturing jobs pay an average of over $100,000 in salary and benefits, compared to the U.S. average of $54,329.


TEXAS

Home to its own power grid and no personal or corporate income taxes, Texas is about as business friendly as you can get among the states. With $247.46 billion in manufactured goods exported from the Lone Star State in 2018, manufacturing accounts for 13.33 percent of the total Texas output while employing 7.04 percent of the state’s workforce. They say everything’s bigger in Texas, and the incentive programs in the state are no exception. Between the ample Texas Enterprise Fund, which has invested more than half a billion dollars since 2004, and major cuts to the state’s franchise tax, Texas is poised to remain one of the top manufacturing states in the nation.

NORTH CAROLINA

The second-largest food and beverage manufacturing state and the overall fifth-largest manufacturing state in America, North Carolina is home to the largest manufacturing workforce in the Southeast. The manufacturing industry employs 460,000 skilled workers in North Carolina–nearly 11 percent of the state’s workforce. North Carolina manufacturing makes up about 20 percent of the state’s gross state product, to the tune of $102.48 billion in 2017 and $31.06 billion in exports in 2018. North Carolina has experienced tremendous growth in manufacturing goods in recent years, with a nearly 35 percent increase in exports from 2010 to 2018. North Carolina’s pro-business climate and expert workforce make it an ideal state for manufacturers.

INDIANA

Manufacturing accounts for nearly 30 percent of the output in Indiana, where $102.59 billion was generated in 2017. Manufacturing accounts for almost 20 percent of the state’s workforce, with 516,900 workers employed in the sector statewide–an estimated one in five workers. In fact, Indiana has the highest concentration of manufacturing jobs in America. With more than 8,500 manufacturing firms already in the state, Indiana is the second-largest automobile manufacturing state in the nation. Along major truck routes and freight lines, goods manufactured in Indiana can reach 75 percent of the U.S. and Canada’s populations within a day’s drive.

FLORIDA

With more than 12,000 manufacturing firms in Florida, the state has made a big push in recent years to encourage more manufacturing. With the fifth-lowest corporate income tax in the country, the Sunshine State employs more than 331,000 workers in the manufacturing sector. Your manufactured goods can get to their destination with ease, because Florida’s multi-modal transportation system offers everything from air and rail to deep-water shipping and highways, all at a low cost of living and a low cost of doing business.

GEORGIA

Another  Southeast state that’s blazing trails in the manufacturing industry, Georgia boasts more 480,000 manufacturing jobs, ensuring that the future remains bright for the industry. That’s why the Peach State developed the Quick Start program and partnered with many in-state universities to teach rising students the skills they need for careers in manufacturing. Industry employs nearly nine percent of Georgia’s workforce across 6,600 firms. In 2018, manufacturers in the state generated $36.81 billion in exports, with a total manufacturing output of $61.06 billion in 2017.

TENNESSEE

According to the Tennessee Department of Economic and Community Development, the state’s growth in advanced manufacturing is higher than anywhere else in the nation; in fact, it’s 42 percent higher than the U.S. average. Manufacturing accounts for 16.13 percent of the state’s total output, which was $55.70 billion in 2017. Tennessee has numerous initiatives to help train its manufacturing workforce, including the NIST Manufacturing Extension Partnership, which provides small to medium-sized manufacturers with training and consulting, all with the goal of helping Tennessee-based manufacturers increase competitiveness in the marketplace via workplace initiatives to increase productivity and lower costs.

SOUTH CAROLINA

Over the past decade, South Carolina has seen manufacturing growth of 18 percent, the second largest jump in the Southeast. Manufacturers in the Palmetto State account for a total of nearly 17 percent of the state’s total output and 11.55 percent of South Carolina workers are employed in the manufacturing industry. In 2018, South Carolina’s exported goods totaled $33.89 billion. In 2018, South Carolina earned an A grade in the Manufacturing and Logistics Report Card by Ball State University’s Center for Business and Economic Research and Conexus Indiana. The report rated each state on criteria such as how desirable it is to site selectors, and the share of Income earned by manufacturing workers within the state.

PORT TAMPA BAY GROWS BY LEVERAGING ITS REAL ESTATE AND CARGO DIVERSITY

Diversity among seaports is a concept not only understood but exemplified with Port Tampa Bay. Known as Florida’s largest seaport in both acreage and tonnage, with more than 34 million tons of cargo handled annually, Port Tampa Bay demonstrates industry breadth through its cargo diversification, cruise passengers and real estate strategies to keep pace with the central part of the Sunshine State’s blistering growth.

Through its purposeful investment and master planning approach, the management team has made great strides in recent years connecting transportation methods, logistics, warehousing and even manufacturing to support and grow the region’s largest economic engine. As its 2018 fiscal year saw an unprecedented number of major announcements related to growth, Port Tampa Bay is already seeing more growth in fiscal year 2019.

Cargo diversity, real estate and proximity to growth are the major differentiators that have enabled Port Tampa Bay to leverage itself and grow. 

“I found a tremendous convergence of opportunity when I arrived,” said Paul Anderson, Port Tampa Bay’s president and CEO. “I knew I wanted to maintain and expand a diverse portfolio, capitalizing on our land assets and building the infrastructure to serve more customers and Florida’s growth more efficiently.”

As a result, officials understood that Port Tampa Bay’s most valuable position within the market could only be achieved through analyzing industry benchmarks, investing in infrastructure and capitalizing on opportunities by listening to the perspectives of carriers and beneficial cargo owners before implementing strategic initiatives. By gaining a thorough understanding of market conditions on a domestic and international level, Port Tampa Bay has successfully become the largest economic influencer in the Western Florida region, responsible for a more than $17 billion in economic impact while generating more than 85,000 jobs.

Port Tampa Bay’s cargo portfolio includes all major categories, from liquid bulk and dry bulk to containers, automobiles, break-bulk and more. Additionally, the port serves as one of the largest shipbuilding and repair handlers in the Southeast United States. It is also a top 10 cruise homeport, and last year the 1 million mark was surpassed for passengers sailing from Port Tampa Bay.

One of the world’s premier fertilizer export ports continues leading in both the liquid and dry-bulk arenas, thanks to the likes of global exporters Amalie Oil and Mosaic. Through these connections, Port Tampa Bay supports the reach of more than 100 countries and helps to feed the world.

On the break-bulk side, Tampa Tank/Florida Structural Steel helps to anchor several steel fabricators and related businesses, making the port a significant mover in this business segment. Furthermore, the port has developed about 290 acres of land to help continue its efforts handling steel, dry bulk and other commodities. 

Furthering its diversity and strategic master planning approach, the port developed a new on-dock cold storage facility and a dedicated automobile terminal fully equipped to process the anticipated expansion of vehicle production in Mexico and the Southeast.

Looking to the future, Port Tampa Bay has major plans in the works to expand overall capacity and infrastructure from docks and terminals to land tracts and parcels supportive of increased containers and break-bulk cargos. A total of $380 million is projected to support the port’s expansion efforts over the next five years. Through this budgeting and robust development planning, the port projects expanding its container terminal capacity to 160 acres–essentially quadrupling current capacity and attracting new services.

All of this vision, planning and investment has already paid off in a couple of very big ways. COSCO Shipping in December announced Port Tampa Bay’s first direct Asia weekly call service, followed by a second announcement in February by CMA CGM to expand its global container reach. Secondly, in April, Port Tampa Bay completed a major navigational improvement on its Big Bend channel, deepening and widening to accommodate larger ships.

More accomplished was how the project was pulled off: by first assembling a public-private partnership that included five stakeholders and maintaining its cohesiveness for several years. The improved channel can now service the approximately 290 acres of new terminal operations and capacity among port tenants.

Throughout all of Port Tampa Bay’s projects and new business expansion are the common themes of vision, strategic planning, investment and expertise. “That and listening to what our customers need to increase their efficiency and/or speed to market is what it is all about,” Anderson says.

These elements continue to provide Port Tampa Bay with ideas that increase economic impact, import/export efficiencies, and just as importantly, sustainable growth.

RECORD BREAKING NUMBERS REPORTED FOR FLORIDA PORT

Port Everglades released information this week boasting an impressive 1,108,465 TEUs for fiscal year 2018 – the highest number recorded to-date for the Port.  The Northern Europe shipping activity and increase in overall consumer population are factors being attributed for the substantial numbers.

Chief Executive and Port Director Steve Cernak stated, “We’ve enjoyed a robust growth period and are moving forward with significant investments to maximize the use of our land, cranes and berth space,” in response to the Port’s growth.

In a proactive attempt to leverage this year’s momentum, the Port plans on investing $1 billion over the next five years towards efforts for infrastructure improvements. This is one of the strategy’s the Port plans on utilizing to continue increasing cargo volumes, according to the release.

Port Everglades will also be undergoing additions to the structure including expansion efforts such as, “adding new cargo berths, installing new Super Post-Panamax container gantry cranes, increasing the lift capacity on existing cranes, and deepening and widening the Port’s navigation channels,” (Port Everglades).

The numbers for the Port are as follows:

-Three percent overall year-over-year increase

-Port Everglades handled 15 percent of all Latin America trade

-The Port handled 37 percent of overall trade in the Florida state region

As the Port continues through the next year, industry competitors and experts alike need to consider such strategies and should learn from the initiatives that prove successful time and time again.  We will continue to monitor Port Everglades and report on additional numbers as they are released.

For additional information on Port Everglades and their cargo initiatives, visit porteverglades.net.

Source: Port Everglades

Largest Apparel and Textile Sourcing Show in Southern U.S. and Latin America Announces Major Expansion for 2019 as Industry Sees Resurgence

Following the enormous success of its inaugural show this past spring, Apparel Textile Sourcing Miami (ATSM) – the largest apparel and textile sourcing show in the Southern U.S. and Latin America – has announced its return to Miami in 2019, double in size and bringing thousands of out-of-state and international visitors to the Magic City, according to press release highlights.

Produced by JP Communications Inc., publishers of TopTenWholesale.com and Manufacturer.com, ATSM 2019 will take place May 20–22 at the Mana Wynwood Convention Center. The show – which has attracted the attention and support of manufacturers and industry partners across the globe – has received a $2 million investment infusion to support its growth from JP Communications and the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), the largest textile and apparel trade agency in both China and the world.

“We at ATSM are so grateful for the support of all our international partners, and our community and business partners in South Florida, each of whom has been instrumental in helping us make this show a success and with whom we look forward to growing,” said Jason Prescott, CEO of ATSM.

“The Apparel Textile Sourcing Miami Show will bring a large number of domestic and international industry decision makers to our community, promote Florida as a premier destination for the industry and stimulate the local economy,” said Manny Mencia, Senior Vice President of International Trade and Development for Enterprise Florida.

Local supporters include Moishe Mana of Mana Wynwood, City of Miami Mayor Francis Suarez, Miami Dade County Mayor Carlos Gimenez, Commissioner Dale Holness from Broward County, Commissioners Jose “Pepe” Diaz and Audrey M. Edmonson from Miami Dade County, Dr. Shanjie Li, Executive Chief Economist and CEO of Miami-based American Da Tang Group, as well as organizations such as the Greater Miami Convention and Visitor’s Bureau, the Broward County Office of Economic and Small Business Development, the Port of Miami, the City of North Miami, Port Everglades, Florida East Coast Railway, the Council of International Fashion Designers, Fashion Group International, Greater Miami Convention and Visitors Bureau, the Beacon Council, the City of North Miami, Enterprise Florida and Miami International University.

“The Apparel Textile Sourcing Miami Show will bring a large number of domestic and international industry decision makers to our community, promote Florida as a premier destination for the industry and stimulate the local economy,” said Manny Mencia, Senior Vice President of International Trade and Development for Enterprise Florida, which has committed its promotional support for 2019. “The apparel sector remains very important to Florida’s international economy. In 2017, nearly $8 billion in apparel trade flowed through Florida ports and airports.”

CCCT Chairman Mr. Cao Jiachang said the 2019 show will see participation from popular branded companies from across Asia in addition to a wide range of suppliers and products. “These are all highly successful, leading apparel brands in China, looking for U.S. partners to represent them in America and help grow their brands globally,” he explained.

Prescott added that “this is an unprecedented opportunity for buyers in the U.S. and Latin America to source and negotiate licensing rights with these never-before-seen innovative brands.”

“Thousands of top buyers from more than 40 countries are expected to attend ATSM 2019 to source, connect and develop lasting relationships with qualified international and domestic suppliers,” he said, citing as examples ATSM notable buyers from Kate Spade, HSN, Perry Ellis, Zara, Gap Inc., Chico’s, Macy’s, Disney, Zumba, Fountainbleau, Hard Rock, Royal Caribbean, Levi’s and Westgate Resorts.

The ATS brand debuted in 2016 in Canada, with the successful ATS Canada show, and has established its reputation as the major marketplace for Canadian, US, Latin American and Caribbean buyers to see, select and source apparel and textiles from the most reliable and price-competitive international manufacturers in the world. In three short years, the organization has grown to include ATS MiamiMontreal Matchmaking, and will debut their fourth show,ATS Germany, in September 2019. “There is no better trade show to expand your factory and production opportunities for finished garments, contract manufacturing, and private label development than an ATS show!” Prescott said.

 

For registration details, visit: https://www.appareltextilesourcing.com

About Apparel Textile Sourcing:

Apparel Textile Sourcing is the apparel industry’s link to the entire global supply chain. The events,resources, experts and manufacturers come from more than 25 countries and cover the worlds of fashion, apparel, textiles and sourcing.   New sources, new products, and new ideas come alive with education, fashion shows and trade opportunities. The ATS Trade Shows are produced in Toronto (Apparel Textile Sourcing Canada), Montreal (Montreal Matchmaking), Miami (Apparel Textile Sourcing Miami) and Berlin (Apparel Textile Sourcing Germany)

About JP Communications:

JP Communications runs the most expansive network of business-to-business sourcing platforms in the U.S. Anchored by TopTenWholesale.com and Manufacturer.com, millions of international members use the brands to locate wholesalers and manufacturers. JP Communications CEO Jason Prescott is the author of two best-selling books, Wholesale 101 and Retail 101, published by McGraw Hill.

ROAR Logistics Opens New Florida Distribution Center

Buffalo, NY – Global third-party logistics provider ROAR Logistics Inc. has opened a new operations center in Clearwater, Florida.

The new Florida facility is the company’s sixth US location and continues a run of strategic acquisitions and expansion that began more than 18 months ago.

The new office “provides the company and its customers direct access to myriad shipping opportunities through Port Tampa Bay, which handles nearly 40 percent of all cargo moving in and out of the state of Florida,” the company said.

Founded Oct. 1, 2003, ROAR Logistics is a subsidiary of global food manufacturer Rich Products Corp. and offers a broad range of logistics services to an array of local, national and global customers.

In January 2013, ROAR opened its first office on the US West Coast in Temecula, California, extending its reach into Mexico and positioning the company in proximity to the most-active ports in America, including Los Angeles and Long Beach.

In May 2014, ROAR purchased Phoenix-based Legend Transportation Group, a full-service, third-party logistics provider known for its managed solutions model and online, Less Than Truckload (LTL) shipment solutions.

10/14/2014

Florida East Coast Rwy Enhances Intermodal Service

Jacksonville, FL – The Florida East Coast Railway (FECR) is expanding its services to include intermodal rail transportation between Charlotte, North Carolina and a number of locations in South Florida.

The company’s new Piedmont Express service is available five days a week, utilizing FECR’s assets.

The “seamless” two-day service allows customers to select from a variety of pickup and delivery options, including door-to-door, ramp-to-door, and ramp-to-ramp.

“We are pleased to offer our reliable intermodal service to customers moving freight between the Carolinas and South Florida,” said James R. Hertwig, FERC president and CEO.

“On average, for every four southbound shipments arriving in South Florida, there is only one northbound shipment,” he said. “This imbalance can be challenging; however, FECR’s Piedmont Express in FECR’s containers provides a cost-effective option for customers in the Carolinas.”

Based in Jacksonville, Florida, Florida East Coast Railway provides a wide range of services, including carload and door-to-door intermodal solutions across North America.

In addition, FECR connects customers to worldwide locations through its strategic partnerships with Port Miami, Port Everglades and Port of Palm Beach.

09/18/2014

 

Starbucks, Juan Valdez in Friendly “Coffee Clash’

Los Angeles, CA – International coffee purveyors, US-based Starbucks and Colombia’s Juan Valdez, have both announced major expansion plans…in each other’s own front yard.

Starbucks has opened the doors at its first operation in Bogota, Colombia – the South American country synonymous with coffee, while Juan Valdez has countered with a new coffeehouse in Miami, Florida.

The new Bogota Starbucks is a three-floor, 2,700-square foot operation, the first of a planned chain of 50 the company plans to open throughout the country over the next five years. It will also be the only Starbucks in the world to serve exclusively only locally-sourced coffee.

Starbucks’ stores in Colombia will be operated as a joint venture with two of the company’s regional Latin American business partners, Alsea and Colcafe, a subsidiary of Grupo Nutresa, Colombia’s largest food company.

Alsea currently operates more than 520 Starbucks in Mexico, Argentina and Chile, while Colcafe worked with Starbucks to develop ‘soluble coffee’ product.

The company has heavily invested in Colombia, which serves as its primary source of arabica coffee, a mainstay of its menu.

In 2012, Starbucks opened a Farmer Support Center in Manizales, Colombia to deliver training and agronomy support to Colombian coffee farmers.

Last summer, Starbucks announced a public-private partnership with the US Agency for International Development that is investing $3 million to increase Colombian coffee yields and to enhance economic opportunities for Colombian coffee growers, according to the company’s website.

Not to be outdone, Colombia’s own Juan Valdez, the coffee brand backed by the Colombian Coffee Growers Federation (Procafecol), is expanding its footprint in Starbuck’s home turf with the opening of a new coffee house in downtown Miami, Florida.

Procafecol, which represents more than 500,000 Colombian coffee-growing families, said it will work with an unnamed Florida franchisor to open four more stores in Miami by the end of this year with an additional 60 sited throughout the state over the next five years.

The new Florida operation isn’t the Colombian company’s first attempt to build a retail chain in the US. It currently operates seven stores in New York, Washington and the Miami International Airport.

The moves by both companies underscores the nature of the ongoing competition for an upscale market that in the US alone generates $18 billion in business annually.

But, whatever the competitive dynamics of the so-called ‘coffee clash’, Juan Valdez will have a long way to go to match the clout of rival Starbucks in Florida and elsewhere.

Customer Loyalty

With 200 stores in Colombia alone, Juan Valdez has garnered a vast reservoir of customer loyalty, both in its home country and regionally.

It is heavily invested in developing Colombia’s country’s coffee industry, a bulwark of the country’s economy. Since its founding in 2003, the coffee chain has funneled more than $20 million to a national fund that supports the country’s 560,000 coffee-growing families, some of whom also own shares in the company.

Most of its 450-plus current cafes are in Latin American countries, though they span as far as South Korea and Kuwait.

There are, however, more than 400 Starbucks in Florida alone, and, while, Procafecol’s total sales are expected to reach $85 million this year, up from $74 million in 2013 and $67 million the previous year, Starbucks is projecting 2014 sales of $16.5 billion, according to reports released by both companies.

There are more than 20,500 Starbucks locations in 65 countries. In 2002, Starbucks opened its first location in Mexico. Since then, the chain has expanded into Latin America with more than 700 stores in 12 countries including Peru, Brazil, Argentina, Costa Rica, and soon, Bolivia and Panama.

Despite the David and Goliath caste to the parallel developments, Procafecol is, at least outwardly, welcoming the competition with the group’s Director of International Sales, Alejandra Londono, was quoted as saying, “There’s room in the market for us both.”

07/25/2014