The Port Everglades business ecosystem is facing a year of labor challenges and growing concerns over tariff uncertainty, according to a survey from a supply chain management professor at Florida Atlantic University.

The Port Everglades business ecosystem is facing a year of labor challenges and growing concerns over tariff uncertainty, according to a survey from a supply chain management professor at Florida Atlantic University.

The fourth annual Port Everglades Economic Engine Sentiment Index reading for 2025 was slightly pessimistic for the next three months at .49, and neutral for the next 12 months (.51). This year’s reading is down somewhat from the previous for three and 12 months (at .71 and .79), respectively, which saw the highest optimism expressed since the survey’s inception.

“The most pressing issue for these businesses is the uncertain nature of the tariffs and implementation, which is more distressing than the tariffs themselves,” said David Menachof, Ph.D., associate professor in FAU’s Information Technology and Operations Management department. “If it were just a flat 10% or whatever, they could plan around that. But the fluctuations make planning difficult.”

The PEESI surveyed members of the Port Everglades Association for their expected business outlook for the next three and 12 months, hiring plans, business expansion within the port, import and export volumes and current policy actions. The membership includes maritime, technology, construction, terminal operators, legal, financial and engineering businesses.

 According to the survey, import and export volumes are expected to decrease over the next year. Respondents were slightly less pessimistic about import volumes (.41) than with export volumes (.35). However, Joseph Morris, port director, noted that volumes for imports and exports increased during the month of May. 

On adjusting to tariffs, most surveyed said they were considering lobbying policymakers to reduce tariff policies or adjusting pricing strategies to offset increased import costs.

“Association members are working to offset the increased costs from tariffs, whether that is by a reduction in cargo volume or decreased investments,” Menachof said. “They feel the impact will be far-reaching, even resulting in potential job loss or reduced hours for port workers. Many can’t afford all the costs, so they are searching for ways to have it absorbed elsewhere.”

Members were also surveyed on the current labor market and the cruise sector outlook.

Only 47% of Port Everglades Association members said they plan to hire employees in the next quarter, down from 75% the previous year. Many businesses are concerned about bringing on new employees in the current economic uncertainty, according to Menachof.  Two-thirds of firms that are hiring say that they continue to experience a shortage of qualified applicants.

To address growing interest in the field and the need for qualified candidates, FAU’s College of Business launched the Master of Science in Supply Chain Management in fall 2021. The degree consists of 10 courses that can be finished in 18 months.

“The user sentiment survey is a bellwether that yields beneficial information for our port community,” said Lori Baer, executive director of the Port Everglades Association. “It is a privilege to work with Florida Atlantic University.”

For the cruise sector, respondents felt the overall cruise sector would continue to remain strong for the next 12 months. A value of 8.7 out of 10 showed an increase from last year’s strong outlook of 7.7.

“While there’s been some concern about disinterest in tourism to the United States, it appears that the cruise sector will still be bolstered by domestic travel and discounts,” Menachof said.

-FAU-