Leading Question

It widens opportunities for businesses, say economists and executives.

"[It’s] only two-and-a-half hours away from Southwest Florida’s front door, and for that much activity to be taking place that close to this area can do nothing but help us," says Todd Gates, whose real estate development company, Gates, has an office in Panama.

The widening—one piece of a $5.25 billion plan to make the 51-mile, man-made canal more competitive—is slated for completion by 2014.

Gary Jackson, director of Florida Gulf Coast University’s Regional Economic Research Institute, says the changes to such major infrastructure signal support in this part of the world for international trade. "It means trade is going to become more important in the future. That’s going to have an impact on the nation, the state and the region," he says.

Gates says other local businesses have expressed interest in doing business in Panama, in part due to the changes under way. He’s taken 50 to 60 subcontractors, vendors, investors and others to tour the area.

"When a market starts growing the way Panama is growing, there are all types of opportunities to fill needs," Gates says. "Growth creates opportunities across the board."

The canal links important international trade routes, and the growth of Asian exports to international markets has been a significant factor of changing trade demands and supplies, says Aysegul Timur, an associate professor of business administration at Hodges University.

"In order to keep up with this growth, international shipping companies must plan accordingly," she says. "However, the Panama Canal has been operating at close to its capacity; therefore, it is important to have an expansion economically to handle estimated future demands."

Timur says it’s hard to specify the direct economic impact of the widening on Southwest Florida because most of the canal’s traffic originates from or travels to the East Coast of the U.S. "However, the growth of Southwest Florida’s economy will need the Panama Canal’s expansion for the efficient transportation," she adds.

Florida will be a major player in the massive investment in Panama, says Manny Mencia, senior vice president of Enterprise Florida’s international trade and business development division. "Oftentimes, people think, ‘It’s Panama, so automatically Southeast Florida companies are going to have an advantage.’ That’s not necessarily the case at all," he says. "If you are a well-managed company with a good product, you can be as successful as anybody in the state."

Mencia says companies can be informed about potential opportunities by taking trade missions organized by Enterprise Florida to Panama and checking out resources by the U.S. Commercial Service, a unit of the International Trade Administration.

Gates estimates that about 25 percent of his revenue now comes from Panama.

"It’s really an interesting place," he says. "Either [you can] hang out and wait for the economy to come back, or you can do something about it and make something happen."