"Sometimes it takes a crisis to get people’s attention," says Al Wenstrand, president of Florida’s Great Northwest, a 16-county economic development organization. The combination of falling real estate sales, lower housing prices, job losses and a government budget crunch reinforces the importance of having a regional economy based on more than tourism, real estate, construction and retail sales, Wenstrand says. "The problem is those industries trend upward together, and they trend downward together." The region’s No. 1 need? A trained, skilled workforce in information technology and engineering to support aerospace, health services, renewable energies, logistics, transportation and international trade.

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Other Northwest leaders are recognizing the changing industrial climate.

» Richard Williams is executive director of the Chipola Workforce Board, which serves five rural, inland counties that lack the advantages of a coastline and a tourism draw. "We’re still making the shift from agriculture to something else; we just don’t know what that something else will be yet." Lately, unemployed workers are asking for agency training in completely new skills to help them find jobs, a costlier proposition than simply updating the skills they use at the present jobs. A major handicap: The agency’s federally funded budget has undergone six years of cuts.

» The University of West Florida at Pensacola is breaking ground this spring on a $32-million School of Science and Engineering, complementing a community effort to expand its high-tech base. Included: Incubator space for entrepreneurs and accelerator assistance for innovators, says School of Science and Engineering director and project shepherd Leonard ter Haar. "It’s one of the ways we can help get Pensacola going."

POPULATION TREND

Walton County, a coastal second-home favorite, is the only Northwest Florida county that grew at a faster pace last year (3.4%) than the state as a whole. Only Washington County had a faster growth rate (1.4%) last year than its previous five-year average (1.12%).

The two largest counties, Escambia and Okaloosa, lost population; Escambia’s dropped by 0.39%, from 307,401 to 306,204, Okaloosa’s by 0.9%, from 192,079 to 190,342. University of West Florida economist Rick Harper blames decreases partly on suburbanization, as residents moved to neighboring Santa Rosa and Walton counties.

Falling population growth contributes to lower housing demand and declining home values, says Harper. The upside: Falling home prices can make homeownership more affordable.

Maritime Support (Gulf Breeze) Quint and Rishy Studer » Quint and Rishy Studer’s multiple philanthropic gifts are benefiting community development, health and education needs. Among recent donations: $2.25 million to the University of West Florida toward development of a Florida Maritime Museum and Research Center, part of Pensacola’s planned Community Maritime Park waterfront development. Quint Studer’s company, the Studer Group, provides its leadership coaching program free to the Escambia County School System, county government and United Way. [Photo: Jeffrey Camp]

PENSACOLA / ESCAMBIA COUNTY

How tough will ’08 get? Pensacola retail sales peaked in late 2005 and have been declining since. Layoffs are occurring in construction and support businesses. Property taxes are the biggest concern, says David Peaden, executive director of the Home Builders Association of West Florida. "Nobody’s building second homes."

Pensacola Bay Area Chamber of Commerce’s proposal to create a 9.2-acre technology campus on city- and county-owned property in downtown Pensacola could enter its engineering phase this spring. The chamber’s refocus on recruiting technology-based jobs and smaller entrepreneurial companies is beginning to pay dividends, says Bank of Pensacola President and CEO Thomas B. Carter. "Large companies are reluctant to move in hard times."

LEADER

» County Commissioner Gene Valentino introduced and won passage for a county ordinance providing financial incentives for new and expanding businesses, of up to $5,000 per new job.

PANAMA CITY / BAY COUNTY

Despite the effect of the declining real estate market on construction, engineering and architectural businesses in Bay County, overall employment was up 1.7% last year— surpassing the state’s 1.1% average growth rate. "We need a fresh influx of workers; it’s a tough labor market," says Ted Clem, executive director of the Bay County Economic Development Alliance. Two bright spots: A strengthened defense industry in Panama City and beach retail expansion.

Bay County will be the region’s hot spot for the next 10 years, predicts UWF economist Rick Harper — powered by construction of the new Panama City-Bay County International Airport at West Bay and adjacent development by St. Joe Co.

St. Joe has begun marketing West Bay, the 75,000-acre project anchored by the new airport, which is now under construction. The first phase includes 4.4 million square feet of industrial, office and retail space, plus 5,842 residential units, 490 hotel rooms and two marinas, says Senior Vice President Jerry Ray.

LEADERS

» This year isn’t expected to be a banner year for tourism, says Dan Rowe, new CEO of the Panama City Beach Convention and Visitors Bureau. "But with Panama City one of the world’s best beaches, we feel visitation will remain strong. We’ll be actively marketing." The spring grand opening of Simon Property’s Pier Park will be a tourism plus. "Shopping is a top activity when people vacation."

» United Way of Northwest Florida, serving six counties, is expecting to meet its goal, "which speaks volumes for givers," says regional resource development director Ron Sharpe. "We know the challenges we have. Federal grant opportunities are decreasing, say some agencies, and (future) local contributions, due to the tax amendment, could decline as well."

FORT WALTON BEACH / OKALOOSA COUNTY

Business leaders in Okaloosa, Walton, Bay and Gulf counties are joining together for a new branding initiative called Coastal Vision 3000. Organized by Buddy Runnels, chairman of the Sterling Cos. and Cornerstone Development of Destin, the effort focuses on increasing national awareness of the region as a tourism and business destination.

Business leaders are gearing up for a 5,000-personnel surge in military population, expected at Eglin Air Force Base by 2015, the result of Base Realignment and Closure decisions; 80% will need off-base housing.

The ’08 economy likely won’t be upbeat, says David Goetsch, vice president of Okaloosa Walton College. Construction and real estate are down, and tourism layoffs have been higher than usual for the off-season. "A problem is the Panhandle’s economic drivers are along the coast, and they’re affected by the high insurance costs," Goetsch says.

LEADER

» "We’re trying to grow high-wage jobs to help strengthen the economy. We’re doing some targeting for skilled personnel in soft Florida markets," says Larry Sassano, president of the Economic Development Council of Okaloosa County. "Our No. 1 need is identifying, retaining and recruiting talent; we have a demand for engineering jobs, in line with growing industries — aerospace, energy and environment, research and engineering."

APALACHICOLA / FRANKLIN COUNTY

Apalachicola was listed among the 2008 Dozen Distinctive Destinations by the National Trust for Historic Preservation. That, plus recent travel articles by Southern Living and the Associated Press, have sparked a flood of calls to Apalachicola Bay Chamber of Commerce, prompting Executive Director Anita Grove to forecast "another good year."

Franklin County’s housing market isn’t as rosy. According to county planner Alan Pierce, residential building permits dropped to 37 last year, from 79 in 2006 and 150 in 2005. Many construction workers who previously migrated from the seafood industry, says Pierce, are now migrating back to seafood, an industry also enduring calamitous pressures.

HOLMES / WASHINGTON COUNTIES

Holmes County is positioned to benefit from Panama City-Bay County International Airport construction, but to cash in, it needs to make potential industrial sites ready for move-in, says Holmes County Development Commission Executive Director Jim Brook. The county lacks money for developing the infrastructure, so it will be looking for grants. In addition, says Brook, the Amendment 1 hit on local taxes will be tough on the county’s budget.

Neighboring Washington County similarly needs industrial sites. Gary Clark, chairman of the county’s Economic Development Council and vice president of member services for West Florida Electric Coop, says the EDC has a couple of infrastructure grant applications in the hopper. One, if successful, will bring a new industry with 300 jobs to Chipley. "We’re making a transition from agriculture all through the Panhandle. Washington County has been aiming for construction-related products manufacturing; those industries will be coming back."

JACKSON / CALHOUN COUNTY

"Our biggest issue is to continue to get jobs to replace the jobs lost during the last decade," says Bill Stanton, executive director of the Jackson County Development Council. He counts 1,505 major industrial job losses since 1998 but 1,280 newcomers since 2004. Recent successes include development of two build-ready industrial parks close to Interstate 10, one for distribution industries, the other for construction-related companies.

When Calhoun County Commissioner Dan Wyrick went door to door seeking support in the last election, three-fourths of those polled said jobs were their biggest concern, he says. He recently sparked an initiative to hire Calhoun County Chamber of Commerce Executive Director Marti Vickery on a part-time basis as county economic development director.

WALTON COUNTY

Road Funding (Walton County) Dawn Moliterno » Walton County Chamber of Commerce President Dawn Moliterno has been lobbying for funds to widen Highway 331 to four lanes. [Photo: Jeffrey Camp]

The county’s priority is diversifying its economy, says Dewayne Youngblood, vice president of Regions Bank in Destin and president of the Walton County Economic Development Council. "The real estate market has affected our economy tremendously; most of our industries are somewhat real estate-related." And strapped budgets have eliminated economic development funding. Chamber of Commerce President Dawn Moliterno also sees the four-laning of all of Highway 331 as a major need. Pluses include explosive population growth during the past two years and south Walton retail successes.

Matthew Avery, manager of engineering for Choctawhatchee Electric Cooperative at DeFuniak Springs, is chairman of BUILD (Building U in Leadership Development), a new chamber initiative to attract and retain leaders through mentoring. It has attracted 42 mentors so far.

SANTA ROSA COUNTY

The biggest issue for Santa Rosa County: Developing more buildings to offer industrial prospects, says Cindy Anderson, executive director of Team Santa Rosa Economic Development Council. "The good news is all our buildings are filled. The bad news is all our buildings are filled," says Anderson. The county owns a developed industrial park and land for expansion. Among current industry newcomers: H.T. Hackney Co., starting construction of a food distribution facility this spring, to employ 100. EDC Chairman Ed Gray, a school board member and former Gulf Breeze mayor, also has concerns related to the passage of Amendment 1, which cuts taxes: "How to manage the decrease in resources and still maintain an environment where we can recruit new jobs."

LIBERTY / GULF COUNTY

Johnny Eubanks, president of the Liberty County Chamber of Commerce, worries about the 60 jobs at the Sunshine State Cypress sawmill at Hosford, which St. Joe Timberland Co. has for sale. But he’s encouraged by plans proposed by Liberty Industries in Bristol to build a $38-million plant in the region to produce ethanol from pine waste — a project awarded a $4-million state grant.

Gulf County needs to become a destination point, not only for tourism but also for economic enterprises, says Commissioner Bill Williams. Two beneficial projects are under way: Construction of the new Sacred Heart Hospital starting this spring and port reactivation work. Economic Development Council funding, meanwhile, has lapsed, but its executive director, Alan McNair, is staying on as a volunteer. "We’re attempting to get grants to keep the organization alive."