Florida Trend | Florida's Business Authority

Northwest Fla.: How Bad Is It?

U.S.Army tank
[Photo: U.S. Army]
Defense
‘Well-Funded’

“The defense business is well-funded because of increased demands for modern equipment to support military operations. We have 370 employees now, up from 300 a year ago and expect to have 400 by year-end — average pay, $35,000. We make the electronics for armored vehicles, to keep our soldiers out of harm’s way. We’re impacted by the economic downturn, however,

Rob Cowan
Rob Cowan
in that company professionals such as engineers and managers can’t relocate here from elsewhere because they can’t sell their homes; so we have to hire people locally who aren’t skilled in our own process systems and train them. That takes time.”

Rob Cowan, human resources manager, General Dynamics Land Systems, Tallahassee


How Bad Is It?Economy
Most Indicators Are Down

“Single-family home sales in August compared to a year ago were down between 22% and 45% in the region’s four metro markets. Except for the Fort Walton Beach area, August declines were greater than year-to-date decreases, suggesting we still have some distance to go before we exit the slump.

Rick Harper
Rick Harper
Taxable retail sales for the region’s four metro areas in June averaged 5.6% below June 2007 versus 7.6% for the state. In employment, both Tallahassee and Fort Walton Beach metro areas have lost 2,200 jobs between August 2007 and August 2008; Panama City area has lost 1,700; and Pensacola, 1,800. Department of Defense spending, including personnel and procurement, accounts for 35% of economic activity in northwest Florida, somewhat insulating the region from pressures facing the rest
of the state.”

Rick Harper, director, Haas Center for Business Research and Economic Development, University of West Florida, Pensacola

Existing-Home Sales
Metro Area August Sales 1-Yr. Chg. August Median $ 1-Yr. Chg.
Fort Walton Beach 223 +2% $203,900 -10%
Panama City 96 -29 192,300 -3
Pensacola 288 -31 154,400 -8
Tallahassee 156 -42 186,700 -10
Source: Florida Association of Realtors

Retail
Downscaling

Silver Sands shopping

“Shoppers are being more cautious and conservative with their money — looking for lower ticket items or items that offer more value. We are located in a resort destination along the Gulf Coast, which is visited by over 17 million people each year. People tend to have more leisure time when they are on vacation, and they are still shopping and dining, just on a smaller scale. Our car traffic at Silver Sands year-to-date is up 9% versus last year; average sales per square foot and total center sales are up slightly.”

Myra Williams, vice president of marketing, Howard Group, parent company of Silver Sands Factory Stores and Grand Boulevard, Destin


Government/Workforce
An Uptick — in Job Hunters

How Bad Is It?“We’re seeing a 30 to 35% increase in people coming in to our three One Stop centers — more people applying for welfare and unemployment benefits, more looking for jobs or second jobs. WestPoint Home closed a 150-employee plant at Marianna last year. Other companies are making do with fewer workers. Our five-county unemployment average, at 5.9% in August, was highest overall since 1993. To me, it seems worse than it was back in ’91. But there are bright spots, a lot related to renewable energy, for example use of biomass for generating electricity.”

Richard Williams, executive director, Chipola Regional Work Force Board

Next page: Charts on Gross Sales, Unemployment and School Enrollment Change for the Northwest region of Florida

How Bad Is It?
Gross Sales (Jan.-June 08 vs. Jan.-June 07)
County % Change $ Change
Bay +0.9% +$25,450,857
Calhoun +0.4 +279,935
Dixie -4.0 -4,407,982
Escambia -8.9 -436,763,921
Franklin +7.6 +8,482,952
Gadsden +3.1 +18,257,249
Gulf -7.4 -8,887,395
Holmes -1.6 -1,885,709
Jackson +3.9 +20,962,892
Jefferson -8.2 -8,208,128
Lafayette +25.1 +14,856,082
Leon -1.5 -57,412,151
Liberty +16.6 +7,431,750
Madison +5.6 +5,883,111
Okaloosa -3.1 -115,006,961
Santa Rosa +1.7 +19,422,736
Taylor -9.3 -22,869,291
Wakulla -3.6 -6,477,190)
Walton -4.3 -41,606,203
Washington +6.6 +10,751,728
Source: Florida Department of Revenue

Unemployment
Metro Area August 2007 August 2008 Number Unemployed
Fort Walton Beach/ Crestview/ Destin (Okaloosa) 3.1% 4.7% 4,771
Panama City/ Lynn Haven (Bay) 3.6 5.4 4,812
Pensacola/ Ferry Pass/ Brent (Escambia, Santa Rosa) 4.0 6.1 13,200
Tallahassee (Gadsden, Jefferson, Leon, Wakulla) 3.5 5.3 9,850
Source: Agency for Workforce Innovation

School Enrollment Change
County % Change
(from 2007-08)
Student Change
Bay +1.93% +97
Calhoun +1.27 +28
Dixie -2.30 -51
Escambia -2.87 -1,201
Franklin +2.08 +25
Gadsden -5.40 -363
Gulf -5.51 -119
Holmes -1.08 -37
Jackson -0.26 -19
Jefferson -5.28 -60
Lafayette +0.99 +11
Leon -1.86 -607
Liberty -4.09 -61
Madison -5.24 -145
Okaloosa -1.98 -595
Santa Rosa -1.58 -403
Taylor -3.26 -110
Wakulla -5.71 -292
Walton -8.04 -556
Washington -1.08 -39
Source: Florida Department of Education