Historic Pensacola -- Spanish explorers founded the city in the late 1500s -- is entering a new era, one defined by the demands of growth. The city's low cost of living and plentiful workforce have attracted industries and new residents, boosting the population of Florida's western-most metropolis to 61,113 residents and that of the surrounding metropolitan area to more than 400,000. Last year saw a number of relocations and expansions, including chemical company Solutia, which expanded its facilities, and papermaker Champion International, which invested in new equipment.
Some shortcomings have surfaced -- too few trained workers in some sectors, for example, and a shortage of property zoned specifically for industry.
"I learned a long time ago that I lost as many tenants because I couldn't grow their buildings as I did from people just saying 'we don't want to be in your building anymore,'" says construction contractor Jim Cronley. The solution? "We try not to ever build a building that can't be doubled in size."
Building facilities that can be easily expanded has helped retain companies like Florida Block Window, Mohawk Carpet and Delta Truss. To further ease the property shortage, industrial parks are expanding and new spec buildings are going up, says Ted Clem, vice president, business development, Pensacola Chamber of Commerce. "We're starting another 50,000-sq.-ft. spec building at Ellison Industrial Park that is expandable to 250,000 square feet," he says.
Longer range, Pensacola could become a trade hub for the Americas, according to Bob Cordes, director of economic development for Gulf Power. Gulf, the Florida subsidiary of Atlanta-based Southern Company, has a strong identification with Pensacola, the largest city in its service area. Cordes sees Pensacola's identity evolving as it grows. "We view ourselves more regionally every day, but with a regional airport and a port, we're now beginning to think more globally," he says.
In May, the Pensacola-based World Trade Council of Northwest Florida will sponsor an expo for businesses in north Florida, southern Alabama and southern Mississippi, focusing on commerce with Mexico, Argentina, Chile and Brazil.
PANAMA CITY: Company Town?
Whither goes St. Joe Co., so goes Panama City. The Jacksonville-based real estate giant has been the key to Panama City (population 37,869) since the company was founded some 60 years ago. St. Joe , Florida's largest private landowner, sat on its holdings for decades, but recently has become more aggressive about developing its properties. St. Joe will sell off 800,000 acres of timberland to focus on 300,000 acres of developable property nearer the coast, mostly in north Florida [Florida Trend, August 1998]. Much of the activity will be in or near Panama City, whose metro area encompasses nearly 150,000 residents. St. Joe's strategy has the local business community aflutter with visions of a new airport, expanded facilities at Port Panama City and at least two new industrial parks. "Things here are never going to be the same," says Dan Duda, director of the Economic Development Council of Bay County. "This is a mid-size city that could be the size of Orlando in 20 or 30 years."
That prospect concerns many long-time residents and those who fled big-city headaches like crime and heavy traffic. "Whatever happens," says Gerry Clemons, the four-term mayor of Panama City, "it has to be done carefully." The city has already begun four-laning several streets to help manage traffic from an expected 20% growth in residents over the next decade, says Mark Wimberly, economic development council chairman.
What's proven vexing, according to Jerry Fulcher of the Bay County Homebuilders Association, is the lack of residential-home lots that aren't owned by St. Joe. "We could be out of new lots altogether in two years," says local builder Robert Goree. "That could be a problem."
As St. Joe's plans unfold, the city's economic engine will remain tourism: Nearly 7 million of the 49 million visitors to Florida in 1998 visited Panama City Beach. A $21 million nourishment project has made the beaches wider and whiter than ever before, but those in the tourism business say ancillary events are vital to keeping the visitors coming. Dan Stark, president and CEO of the Panama City Beach Convention & Visitors Bureau says several festivals -- both automobile and aerial -- should help. "You've got to have a reason for coming here. The beach itself won't do it."
Businesses to Watch
Dynasty Technologies, computer designer and manufacturer, Clif Parker, CEO, Stephanie Parker, president. The company has seen its sales rise from $150,000 when it started in 1991 to some $3 million in 1998.
Berg Steel Pipe Co., manufacturer of flexible steel pipe, Milan Kosanovich, president. Berg scored a multimillion-dollar contract to produce and transport 133 miles of pipe to be used for the Alliance Pipeline Project, a natural gas line running from Alberta, Canada, to Illinois.
People to Watch
Allan Bense, owner of an air-conditioning repair firm, a dance studio, and a construction and contracting company, parlayed a stint on the Tourist Development Council into a seat in the Florida House of Representatives. Some enthusiastic Republicans see enough potential in Bense to forecast him as a future governor.
Charles Whitehead, who sold his mammoth Ford dealership to billionaire Wayne Huizenga in 1997, plans to come out of retirement to reassume the reins of Florida's Democratic Party. He held the post from 1980 to 1989.
FORT WALTON BEACH: Silicon Dreams
The city of Fort Walton Beach is small (population 22,052), but dreams big - residents see the coastal community's future in technology and aviation. Already, the greater Fort Walton area, which includes some 175,000 people, counts more than 200 defense and aviation-related companies.
At the forefront are businesses such as Certified Manufacturing, a 1-year-old company that manufactures parts for computer circuit boards. Pamela and Robert Bechtold's firm has 15 employees and now competes with larger, more established firms such as IBM and Motorola. "We deal with everyone from the National Security Agency to state and local governments," says Robert Bechtold. "Our company is booming and the potential is unlimited."
The EDC and several businesses have formed a coalition, TECMEN (Technology Coast Manufacturing and Engineering Network), to pair established companies with newer companies. "They network their high-tech and manufacturing services to each other," says Larry Sassano, director of the Economic Development Council of Okaloosa County. "That stimulates the economy and keeps the work local." He says it also lays a solid foundation for future growth, taking advantage of Fort Walton's proximity to Eglin Air Force Base, the service's largest in the world. "That gives us an unparalleled pool of engineers and programmers and scientists to draw from," notes Lisa Burkett, who volunteers as president of TECMEN.
Businesses to Watch
Centrobe, part of EDS, a call center representing nearly 150 publishers, Bob Henry, manager. The company opened in November and has already grown to 220 workers.
Crestview Aerospace Corp., aircraft modification company, Jack Owen, president. The business will be helped by a $1.2 billion, 10-year project by the Boeing Co. to modify 87 planes at nearby Hurlburt Field.
People to Watch
Larry Sassano, local EDC director, is leading the charge to make Fort Walton Beach a high-tech haven.
David Fleet, an assistant state attorney, has spearheaded a drive to have a child advocacy center built in Fort Walton Beach. Law enforcement agencies have signed on.