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Surfing for A Niche
Higbe's company, Connexsys, which provides high-speed wireless connections to the Internet, has placed antennas on the roof of the hotel, on an apartment building several miles down the beach and on a building miles to the west. Connexsys customers located near the antenna triangle get unlimited wireless Internet access for a monthly fee. "Every business can benefit from wireless connectivity," says Higbe, president of 8-month-old Connexsys. "Wherever you go, access is there. It's pervasive computing."
While Jacksonville's business identity has been shaped by its collection of banking and insurance companies and call-center operations, young entrepreneurs such as Higbe are trying to establish a high-tech beachhead in a region boosters want to rename Silicon Beach.
In addition to many small fledgling ventures like Connexsys, Jacksonville economic development officials and investors alike are eagerly following the progress of a few larger, more promising companies, most notably that of Encore Development, a fast-growing professional services organization specializing in information technology and Internet strategies.
Founded five years ago by brothers Tom and Bob Leonard, Encore has 170 employees, with headquarters in Jacksonville and offices in Fort Lauderdale, Atlanta, Chicago and New York. The company expects to open overseas offices next year. Clients include UPS, Southeast Toyota and CSX railroad. Last year, Encore had revenues of $7.5 million. It projects to reach about $17 million this year and $150 million by 2002.
Pat Allin, the former global chief operating officer of PricewaterhouseCooper's management-consulting business who was hired as Encore's chief executive officer, says it's likely that within five years Encore will be a $500-million to $1-billion company with 2,500 to 5,000 employees. The company plans to go public within the next year.
Meanwhile, however, economic development officials at the Jacksonville Chamber of Commerce say the scarcity of qualified high-tech workers in northeast Florida is a big problem. To get a fix on the employment needs, Chamber workers are visiting 400 area companies. A workforce analysis report should be released in early March.
In the meantime, the Chamber is pushing ahead with recruiting efforts, sending hundreds of direct mail pieces to high-tech companies and workers in Northern California's Silicon Valley and Boston, touting the First Coast's quality of life and relatively low cost of living. To make the point, the mailer includes a hologram picture of a small, rather drab house in Silicon Valley that sells for $250,000. Tilt the picture, and you see what $250,000 buys in Jacksonville: A large, tiled-roof house with a spacious yard and pool.
Business-related inducements include an extensive fiber-optic network that will be expanded as part of the $2.2-billion Better Jacksonville Plan. City officials also are pushing for the creation of a major hub for Internet traffic, known as a network access point, or NAP. South Florida will have two this year. A new business incubator -- Technology Enterprise Center -- opened late last year on the city's Southside.
The Chamber is also looking to develop a partnership with Florida's two biggest research universities -- the University of Florida in Gainesville and Florida State in Tallahassee -- as resources for supplying skilled high-tech workers to the First Coast. "What high-tech companies need most are good students," says Jerry Mallot, executive director of Cornerstone, the Chamber's economic development program. "We see our future aligning with UF and FSU to fulfill the needs of Jacksonville-area companies."
Like many would-be high-tech communities, northeast Florida also suffers from a lack of venture capital, especially early-stage financing from "angel" investors. David Hayes, a founder of Tempus Software, says he's found it easier to find investors in other parts of the country than in his own back yard. Dennis Stemmle, president and CEO of No Boundaries Network, a maker of software for financial services firms, agrees. He doesn't think access to capital will improve "until we get some real success stories."
To be sure, there are a few investment firms in Jacksonville that are showing more interest in financing high-tech companies, including Rock Creek Capital and Heritage Capital Group.
So far, Jacksonville hasn't carved out any special technology niche. Reflecting the city's business past, there are a smattering of software companies specializing in banking and finance, transportation and healthcare. In fact, one of Jacksonville's largest trucking companies -- Landstar -- has developed a sophisticated wireless communication system that helps traffic managers move freight more efficiently.
"I have not seen that Jacksonville is developing a niche in any particular sector of technology," says Chanley Howell, an attorney at Foley & Lardner who specializes in technology issues. "But from the anecdotal evidence I've seen, I think Jacksonville is on the cusp of seeing its technology industry really taking off."
High-tech Inducements
To attract quality employers, Jacksonville is:
Expanding a fiber-optic network as part of the $2.2-billion Better Jacksonville Plan
Trying to create a major hub for Internet traffic, known as a network access point, or NAP
Working on developing a partnership with the University of Florida and Florida State University to supply skilled high-tech workers
