Northwest Florida's Business Climate December 2014

DECEMBER 2014

LEADING BY SERVING Q&A’s with John Maxwell & Nick Vujicic

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RICK SCOTT’S ECONOMY LOCAL LOVE:

SMALL BUSINESS SATURDAY

THE GREAT BALANCING ACT: EQUITY IN THE WORKPLACE

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from the publisher’s pen

It is often said by politicians and business people alike that

just has a bad day. Well believe it or not, there is a very scientific

small business is the backbone of America. As the owner of a

reason for all this. I don’t want to spoil it for you, but you can

small business myself, I tend to agree. There is nothing quite

read all about it, as well as get some recommendations, on

like it: the employees are like family, the struggles and victories

page 8.

are shared amongst all, and there is a camaraderie unlike any

Last month, Florida reelected Gov. Rick Scott to the

that you might see at a larger corporate environment. You can

highest position in the state. Whatever your political views,

read all the statistics about the impact of small business on

the numbers show that the Scott administration has had a

page 18, but suffice it to say that your favorite mom-and-pops

positive effect on Florida’s economy. Whether that’s part of the

TO SUBSCRIBE: contact (850) 433-1166 ext. 30 or info@ballingerpublishing.com recovery that would’ve naturally happened anyway I’ll leave to you to decide. Perhaps his director of economic opportunity, Jesse Panuccio, can help you sift through the facts. Business Climate spoke with him about what the reelection of Rick Scott means for Florida’s economy--and specifically Northwest Florida. Find out more on page 22.

We have two other exciting Q&A’s this month, and I mean very exciting. The first is leadership expert and worldrenowned speaker John Maxwell. He’s returning to Pensacola Jan. 26, and my entire staff plans to attend. Discover some leadership insights, uncover important business practices, and find out what you can expect from him when he comes, all on page 10. Nick Vujicic will also be here at the same time with Maxwell. Nick was born without limbs, yet has used this challenge to transform his own life and the lives of others. He speaks powerfully about bullying, leadership, inspiration, and down the road invest more in our community and the lives

overcoming impossible odds to live a life without limits. Read

of our neighbors than you may realize. Once a year, we as a

our fascinating, exclusive Q&A with him on page 14.

nation get a chance to say “thank you” to these individuals on Small Business Saturday, a growing movement to save a little bit of Black Friday cash to spend at your favorite neighborhood shops and boutiques the following day. Locally, it was a huge success, thanks in no small part to support from the Chamber and other organizations.

Speaking of running a small business, it always seems like there’s so much to do. Employees can experience burnout, managers can experience frustration, and sometimes everyone

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As always, I hope you enjoy reading. Please let us know your thoughts by emailing malcolm@ballingerpublishing.com

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contents

10

Leading by Serving

8

The Great Balancing Act Equity in the Workplace

14 Q&A with Nick Vujicic

22 Rick Scott’s Economy

In Every Issue

Reader Services Letters We welcome your letters and comments.

Send letters to Ballinger Publishing PO Box 12665 Pensacola, FL 32591 or contact specific staff members under the Contact Us: Staff Info link on ballingerpublishing.com

18 Local Love

Writing Opportunities We are always willing to consider article ideas. Please send queries to Josh Newby, business editor, at josh@ballingerpublishing.com, or care of Josh to the postal address.

Around the Region

People on the Move 29 Business Scene

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DECEMBER 2014

Publisher Malcolm Ballinger malcolm@ballingerpublishing.com Executive Editor Kelly Oden kelly@ballingerpublishing.com BC Editor/Design & Layout Josh Newby josh@ballingerpublishing.com Art Director Rita Laymon rita@ballingerpublishing.com Graphic Designer & Ad Coordinator Guy Stevens guy@ballingerpublishing.com Editor Emily Echevarria emily@ballingerpublishing.com Editorial Interns Christian Pacheco Sales & Marketing Sharyon Miller, Account Executive sharyon@ballingerpublishing.com Becky Hildebrand, Account Executive becky@ballingerpublishing.com

Owners Malcolm & Glenys Ballinger Publisher Malcolm Ballinger · malcolm@ballingerpublishing.com Executive Editor Kelly Oden · kelly@ballingerpublishing.com Art Director Rita Laymon · rita@ballingerpublishing.com Graphic Designer & Ad Coordinator Guy Stevens · guy@ballingerpublishing.com Editor Emily Echevarria · emily@ballingerpublishing.com Business Editor Josh Newby · josh@ballingerpublishing.com Sales & Marketing Sharyon Miller, Account Executive, ext. 28 sharyon@ballingerpublishing.com Becky Hildebrand, Account Executive, ext. 31 becky@ballingerpublishing.com Simone Sands, Account Executive, ext. 21 simone@ballingerpublishing.com Website: ballingerpublishing.com Editorial Offices 41 North Jefferson St., Ste. 402 Pensacola, FL, 32502 850-433-1166 · Fax 850-435-9174

Published by Ballinger Publishing: Member of:

NW Florida’s Business Climate and Pensacola Magazine is locally owned and operated. All Rights Reserved.

Reproduction or use of the contents herein is prohibited without written permission from the publisher.

Comments and opinions expressed in this magazine represent the personal views of the individuals to whom they are attributed and/or the person identified as the author of the article, and they are not necessarily those of the publisher. This magazine accepts no responsibility for these opinions. The publisher reserves the right to edit all manuscripts. All advertising information is the responsibility of the individual advertiser.

Appearance in this magazine does not necessarily reflect endorsement of any products or services by Ballinger Publishing. © 2014

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THE GREAT BALANCING ACT

BY JOSH NEWBY

EQUITY IN THE WORKPLACE

W

ork, in its most base form, is

ourselves putting more into a job

all about inputs and

than we get out of it. Or perhaps we

outputs—an employee puts in a

get way more out of a job than we

hard day’s work and in return

actually put into it. This inequity

gets financial compensation

can only exist for so long before

or some other type of salient

something gives, either the input

reward. The world is built on this

or the output. It is the job of both

balance of inputs and outputs,

managers and workers to continually

though oftentimes the two are not

strive for balance and equity in our

symmetrical. Oftentimes, we find

day-to-day jobs.

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An employee’ perception of the 41% OF when we realize that more challenging work can also lead to equity that exists in his or her job has CUSTOMERS employees view inputs desirable outcomes for the employee and a correlation with that employee’s ARE LOYAL TO and outputs in differ- the organization. Most people enjoy chalmotivation and attitude, which ulti- A BRAND OR ent ways. A younger lenges and pursuing those challenges in mately affects their performance. By COMPANY employee may be will- autonomous, creative ways. our very nature, humans seek equality BECAUSE THEY ing to accept lesser It is also important to learn as much as and balance, and when we feel there is CONSISTENTLY pay in return for job possible about your employees and realize an imbalance, we seek to correct it by NOTICE A POSITIVE security or work free- that different types of people treat equity EMPLOYEE altering one side of the equation. dom. A new mother and inequity in different ways. For examIf you’re a manager, you might be ATTITUDE, may consider taking a ple, entitled people will always believe that thinking that this is a pretty easy equa- WHILE 68% OF pay cut in return for a they are worthy of more benefits than they tion to control. Keep an open line of CUSTOMERS flexible schedule. actually are. Benevolent individuals, quite communication with followers and DEFECT FROM Paying employees the opposite, enjoy giving more than receivwork to structure the equation in favor A BRAND OR more for more work ing and prefer to be under-benefitted. Most of high motivation! Unfortunately, it COMPANY does not always lead to people, however, are equity sensitive and is not that easy. Industrial psychol- BECAUSE OF a successful outcome, prefer their own input/output ratios to be ogy teaches us that it is often the NEGATIVE either, as a worker may equal to those of their comparative referidea of social comparison, something EMPLOYEE decide that the tasks ent. Knowing more about your employees outside the manager’s control, that ATTITUDE. he or she is currently and ascertaining what category they fall manipulates the equity equation most. doing are just worth into will help you make more strategic Social comparison essentially means that more than they once were. By the same management decisions. employees will evaluate their own input/ token, employees can be motivated to As an employee, keeping an open line of output ratios based on their comparison perform extraordinarily by the promise of honest communication with one another to other employees (known as compara- one day achieving executive position and and superiors is essential. Without comtive referents). Perception plays a huge pay, but exorbitant executive pay can be a munication—which in a work environment role in this, as obviously your coworker demotivation. is essentially a transference of meaning— may be putting more into the job or getSo what is an employee or manager to perception and social comparison will ting paid less than you rarely align with reality. imagine. Nevertheless, Perhaps most imporA YOUNGER EMPLOYEE MAY BE WILLING TO ACCEPT an employee will evalutantly, equity is not LESSER PAY IN RETURN FOR JOB SECURITY OR WORK ate his or her own time, something that anyone expertise, and quality on either side of the FREEDOM. A NEW MOTHER MAY CONSIDER TAKING A of work against those employee/employer PAY CUT IN RETURN FOR A FLEXIBLE SCHEDULE. of others, just as he or relationship should try she will evaluate their to battle. It is an innate own compensation with that of others’. If do? Well, fear not, because there are steps fact of human existence that we wish our an inequity exists, the employee will take that can be taken. contributions to be equal to our rewards. action.

As a manager, if you notice that your Contributions are measured differently It has long been assumed that a typical employees are working hard and giving between everyone, though, as are rewards. employee will seek to be fairly compensated it their all, far more so than what they For some people, for what he or she believes they are invest- are being compensated for, you may feel a reward is INCENTIVES ARE ing in the job. When that compensation as though you should give them a raise. money; for others, PART OF A $100+ does not exist, the employee takes action in Perhaps a raise is not an option, though, it is the gratitude BILLION INDUSTRY, one of three ways. First, the employee will especially in this economy. Employees that stems from a $46 BILLION seek to alter their actual inputs or outputs. value praise, job security and positive job well done. As OF WHICH IS This includes working harder or less hard, engagement often just as much as mon- long as employees NON-CASH altering the care and attention they pay to etary reward. A simple “thank you” or “we and managers are INCENTIVES. a task, or asking for a raise. Alternatively, couldn’t do this without you” will go a long mindful of their an employee can alter those inputs or out- way to restoring the employee’s internal own contributions puts in their own equity. You may also consider that work- and the rewards they receive or disperse, 90% OF BUSINESS mind by changing loads are distributed evenly and briefly everyone will work together to achieve LEADERS the comparative mentioning in company meetings all that equity, a greater work balance, and as a BELIEVE THAT AN referent. Finally, everyone does so that employees are using result higher motivation and performance.

ENGAGEMENT an employee can more accurate social comparisons.

STRATEGY COULD choose to leave Employees place great value on the POSITIVELY IMPACT the organization. social feedback of their teammates and THEIR BUSINESS, The equation clients, too. If a client tells you that they YET ONLY 25% OF is not so easy any particularly enjoyed working with so-andTHEM ACTUALLY more. It becomes so, make sure you tell that person. Using HAVE A STRATEGY even more difficult this positive feedback as a springboard for

IN PLACE.

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Leading By Serving THE JOHN MAXWELL Q&A

by Josh Newby

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The pastor turned leadership expert is coming to Pensacola for the second time.

N JAN. 26, FROM 10 am to 4:30 pm, the Sacred Heart Health System will present John Maxwell, worldrenowned leadership expert and motivational speaker, at the Pensacola Bay Center.

Maxwell has authored more than 70 leadership books, with over 22 million copies sold. It is estimated that he has trained 6 million leaders in 185 countries, and routinely speaks with leaders of Fortune 500 companies, foreign governments and diverse organizations worldwide.

Northwest Florida’s Business Climate sat down with Maxwell to uncover some of the secrets of leadership, understand how one exerts influence for maximum efficiency and effectiveness, and preview the upcoming event.

How would you define leadership, in your own words?

Leadership is the ability to say something or do something that influences others. It’s what leadership is all about. It’s not a title; it’s not a position. The person that I’ve always said that has the most influence in any group at any given time is the true leader of the pack. And what’s great about influence is you can learn how to increase it.

That’s basically how you learn how to lead: the more influence that you can increase in your life with people, the more leadership that you have. And so, when people say, “I want to learn how to lead,” I just say, “Start adding value to people, start gaining and developing influence, and you’ll be a leader.”

think when we do that, it’s not difficult at all to serve people.

I know, in my companies, every once in a while, I have somebody ask me, “Do they work for you?” and I always say, “No, no one works for me. I don’t have slaves. They work with me. We work together; I work with them. We’re a team.” I think that’s what servant leadership is all about: just really doing your best to help someone else, because if you help them, they’ll turn, come back, and help you. That’s why it always works.

How did you get started in becoming a speaker and expert on leadership?

Well, I started off as a pastor. So for 25 years, I pastored. So, hey, if you’re a pastor, you’re going to do some speaking. So that’s how I honed my skill, so to speak. And what happened is by the time I was 30 I had one

practice leadership, I say, “Everywhere.”

Everywhere I go, everybody I meet, every day is an opportunity for me to be intentional, to help somebody, to add value to them. Every time I do that, and make their day better. I’ve practiced leadership. I think the big mistake we make is we somehow think leadership is so tied to title or position, that we can only practice leadership in our company or practice leadership perhaps in our organization, when, if you really understand leadership as influence and adding value to people, you practice that every hour, every day of your life.

Do you believe that leadership dynamics—corporate, government, or just in general—have changed since the What are some ways people can gain recession? And if so, how? that influence?

I think that they have. I think because Well, I always say be intentional. of the recession, we begin to realYou know, 95 percent of the people in ize that we were not adequate within the world are not intentional; they just ourselves as organizations, and we have good intentions. In other words, began to partner more. Years ago, if they hope to do something fine, they you had something good, you kind want the best for everyone else. But, of built a fort, put a moat around it, if you really want to be successful, tried to keep everyone away and keep you gotta move your life from being it to yourself. But with the recession, a person full of good intentions, to a and the fact that people were majorly person who’s intentional in their livphysically and financially crippled, I ing. And the moment that we begin to think that they had to reach out to each not accept our life, but lead our life, other, partner more and take control of it, is the day that things leverage their business begin to turn around for us.

“LEADERSHIP IS with others, and I think So, when people ask, “Well, how we’ve filled in the moat, THE ABILITY TO SAY do I gain influence?” I say, “Be intentaken down the walls.

OR DO SOMETHING John and Margaret Maxwell tional, every day,” and add in value to With social media, I THAT INFLUENCES people. If everyday we get up and say, think we’re much more OTHERS. IT’S NOT “Okay, some time today, somewhere, ready to learn from A TITLE; IT’S NOT A with somebody, I’m going to serve them, of the 10 largest churches in each other and serve POSITION.” I’m gonna add value to them, I’m going to America, and pastors asked each other and partner do something positive that’s not expected me how I built the church, and with each other. So it’s of me to help them.” If we do that for a few I told them leadership. And so been one of the transitimes, we’ll begin to gain influence with I began to teach leadership, and I began to tions that has happened since 2008. them, which is really what helping people write on leadership, and then it got out into and influence is all about. the business community, and that’s where I You talked earlier a little about seram today. vant leadership and loving people.

It sounds like you’re a pretty big proBut there’s gotta be days when you ponent of servant leadership. Is that What experiences would you say have don’t necessarily feel like doing that, correct? shaped your leadership philosophy? or when the performance doesn’t necDefinitely. The reason I am is because Are they all pretty church-bound, or essarily match up with that mindset.

I think that you’ve got to love your people have there been other experiences as So my question is, how do you mainbefore you lead your people, and I think well? tain authenticity in those times? servant leadership is a visible way of showMy beginning experiences were, of It’s a great question, because that’s true ing people that you care for them. And, course, but through the last 20 years I’ve not that everybody can get worn out. It’s a dousadly, in leadership realms, so many times, pastored a church. You know, my leadership ble-edged sword. The good news is people; people get into a position of leadership and really has been shaped by the very fact that I the bad news is people. We rise and fall on basically want everybody to serve them, and want to add value to people. And so in every those people. Our best days are when people they expect everybody to kind of take care sector, and every place of my life, I’m always do well; our worst days are when people of them, and I think that great leadership is asking the question, “What can I do to help don’t perform well. So it can be quite a roller serving people and loving them and caring people, make their life better?” coaster. But I think that what has to govern for them, valuing them as a person. And, I And so, when people ask me where I the emotions of a leader is the fact that we nwflbusinessclimate.com | Business Climate | 11

“EVERYWHERE I GO, EVERYBODY I MEET, EVERY DAY IS AN OPPORTUNITY FOR ME TO BE INTENTIONAL, TO HELP SOMEBODY, TO ADD VALUE TO THEM.” see the big picture, and the big picture basically says that leadership pays off. And if we do the right thing and add value to people, most of the time, there’s a beautiful return for people. Not all the time, and there are those days when I ask myself, “Why am I leading?” It’s not a good experience. I’ve laughed many times and said when I die, I’m going to write a book before I die, but not going to have it published until the day I die, it would be called Leadership Sucks.

I’d like to write a book on all the downsides of leadership because there are some.

There are expectations of people of which you can’t fulfill; it’s impossible. So, absolutely, you have that roller coaster, but being a leader means you see the big picture, and that’s what distinguishes leaders from others. Others see their pictures, and when their world is spinning, they think everybody’s spinning. The leader realizes everybody’s not spinning. The big picture’s there, and they never lose sight of that. I think that’s the anchor that keeps everybody steady, that earths leaders, that is the fact that you have a bad experience, you have bad days, but the big picture says you have more good days than bad days and the people are worth the effort even though sometimes they can be real zombies.

Some followers may value a servant leader, another follower may value a more charismatic leader. Do you believe in catering to your followers in that way? Or should you remain consistent in your practices?

I don’t think “catering” is the word I would use. I don’t think it’s a word that a leader would use, but if you’re asking me if I lead people differently, the answer is yes, of course. To distinguish the difference between management and leadership: management leads everybody the same; leadership understands that people are motivated differently. You got 10 people in the room, I promise you 6 of those 10 people have a different—what I would call high motivation— and leaders understand that, are personable about it and insightful about it, to find out what that is. So if you’re motivated by a high ideal, for example, then as a leader I would appeal to you for your high idealism and that “change the world” kind of mindset. If 12 | Business Climate | nwflbusinessclimate.com

you’re motivated by position, I’m going to tell you that there’s an opening here that you could perhaps fill.

So, I’m going to lead you differently based on what your motivation is, of course.

I think the best leaders always understand that you don’t lead everybody the same; they’re not soldiers that you just have to know them well enough and care for them well enough to lead them according to their temperament, their idealism, their dreams, etc. And never, never manipulate them; always motivate them. When I motivate you, I move you for mutual advantage. Leaders have to move people, and it’s win-win. I move you, but you win, and I win. But when I manipulate you, I’m moving you, but I’m winning, and you’re not, and that’s always wrong. You always want to do the right thing. That’s why you want to value people, so you don’t manipulate them.

What is something you’ve seen that all great leaders have in common?

Well, I think that all great leaders have the ability to make it happen. They’re very good at producing. And that doesn’t make them a leader—there are people who produce who don’t lead well—but I’ve never met a good leader who wasn’t productive.

And what happens is they know how to help other people be productive. So, I think that’s a quality that I see in every leader. They’re successful, they know how to achieve, and they do it, but what makes them so important is they know how to help other people also achieve.

You talked earlier about how leadership can sometimes suck and how there are some bad days. Have you ever had a problem individual that wouldn’t respond to any technique or motivation or facilitation that you provided? And if so, how did you deal with that?

I’ve had hundreds. You were nice when you said, “Had I ever had an individual?” It’d be nice if I could say, “Yeah, I can remember in 1987, one person…” but, no, it’s been hundreds. Some people don’t respond to my leadership. I’m always asked, “What do you do?” Nothing. There’s nothing you can do. If they don’t respond to your leadership, you

can’t be it. Sometimes I think people think somehow there’s an alternative, but there isn’t. I guess I could take the Al Capone leadership mindset, who said, “It’s easier to get things done with a kind word and a gun than it is with a kind word alone,” and I suppose you could use a gun and march them how you want them to march, but there are many people who haven’t responded to my leadership.

There’s no such thing as a leader who has everyone respond, but I learned a long time ago that those who do respond, those are who you focus on, not the ones who don’t respond. The ones who won’t respond, you smile and understand that you won’t be leading them.

Who’s a leader for you?

I’ve had a lot of people who have mentored me and led me. My father is still alive, he turned 93 in November, and I still find him to be inspirational in my life. I think one of the great leaders, who just passed away, of the world was Nelson Mandela. I think it was a huge loss, but he left. Because I think he was a phenomenal leader in South Africa to take up the apartheid issue. John Wooden, for many years, was a major mentor of mine.

He passed away a couple years ago at 99. He was voted by Sports Illustrated as the greatest coach of the 20th century, so I’ve been very blessed to have good people, good leaders come alongside of me and help me and add value to me, that’s for sure.

Could you just briefly synthesize and distill your famous five levels of an emerging leader?

Yeah, the five levels of a leader. The five levels of leadership, and it all starts with position, title, that’s where everybody begins. You get appointed to be a supervisor to half-a-dozen people somewhere, so you get your position. But, sadly, that’s the lowest level, not the highest level, but 90 percent of people think when they get a leadership position, that’s the highest level of leadership. A level up is the relationship level. That’s where the leader realizes that you cannot lead just out of authority or power; you’ve got to connect with people.

They’ve got to like you. If they don’t, they won’t go along with you if they can’t get

along with you.

So, that second level is relationships and it’s just absolutely caring for people, and you know they care, and you connect and have synergy and get energy from them.

The third level is the production level: it’s when you, as a leader, truly produce. You not only have a title and position, and you are not only liked and like people, but you’re successful, you’ve produced and done well.

People don’t want to follow a failure; they want to follow a successful person.

The fourth level is developing people.

Once you begin producing very well, you understand that you can only add if you produce, but you can multiply if you begin to develop people under you and around you.

So, that’s the level when you begin to invest your life into other people, train them, mentor them, and get them to do what you can do, sometimes even more successfully than you can do it.

And then, the last level is what I call the pinnacle level, and that’s the level where you’ve done it so well, with so many, for so long, you truly become bigger than life. The people of the organization put you there, you don’t even put yourself there. They just put you there because you’ve meant so much

to them. I love the five levels of leadership because it really basically says that leadership is not one thing, and it’s not a simple thing, but that it’s a process and it should be.

Then that begs the question, of course, do you believe leaders are born, or made?

I think there are people who are born with giftedness in leadership like how you can be born with giftedness in music, but it could be taught.

In 1993, I wrote the book Developing the Leader Within You, which was the first leadership book written that basically says you can develop yourself as a leader. And people say, “Well, how do you know that?” I know that for two reasons. One is leadership is influence, and you can learn to develop your influence. Anybody knows that, so that’s true that you can develop your leadership.

Number two, I know that because I’ve developed and trained, through my companies, over six million leaders in every country in the world, so I have several thousand case studies of the fact that you can develop yourself as a leader.

What can attendees expect from your time here in Pensacola?

I’m looking forward to coming to Pensacola. I was there a couple years ago.

Whenever they come to a seminar of mine, they can expect three things. They expect to learn, ‘cause we’re always into teaching people to be better and how to improve themselves. They’re going to laugh, because what fun is it to learn if you can’t enjoy it?

So, we’re going to have a good time and enjoy each other and enjoy the principles that we’re learning. And the third thing is, they’re going to be able to apply it, they’re going to put it in practice in their lives.

That’s what I love about the conferences and these seminars. If people want to get better, it’s just this simple. If they want to get better, if they want to improve themselves, if they want to grow, they want to guarantee their success for tomorrow, then they’re going to love this day, because that’s what this day is all about.

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Q&A

14 | Business Climate | nwflbusinessclimate.com

with Nick Vujicic

by Josh Newby

M

OTIVATIONAL SPEAKER NICK VUJICIC WILL JOIN JOHN Maxwell in Pensacola on Jan. 26 to deliver an uplifting message on hope, faith and perseverance in the face of seemingly insurmountable odds. Vujicic is an Australian Christian evangelist born without arms and legs, even though three sonograms failed to reveal complications.

Understandably, Vujicic’s early childhood was quite difficult as he endured bullying from others and his own anger at his situation. At age 19, Vujicic decided to channel his experience into something good and has since become a prolific author, musician and actor. Today, he leads Life Without Limbs, a non-profit focused on boosting self-efficacy and reducing the harmful effects of bullying.

Tell me about yourself and Life Without Limbs.

I was born in 1982 in Australia without arms and legs; no medical reason why. In life, many things happen that don’t make sense and catch us off guard, and it was definitely not even in my wildest dreams that I would ever have a non-profit organization that helps anyone with anything. As a kid who basically felt like there was no hope because of bullying at school, because everyone had more than me, I looked at my life and future and didn’t think I had a purposefilled future. It really disturbed me because I thought I would be alone. That was the worst part about having no arms and legs.

It wasn’t the limb deficiency; it was the fear of being alone, never getting married, never being able to hold my wife’s hand. Because of bullying at school, I actually entered into depression at age 8 and attempted suicide at age 10, because I felt like there was no hope and purpose. So I tried to drown myself in my bathtub, because if my life had no purpose and meaning, and I’m just in pain, well I should just end it. I’m just glad for my parents who were in my life and loved me and encouraged me, that they said, “Nick, you’re beautiful, you’re special. Don’t worry, just do your best and God will do the rest.” You know, sometimes that helped, sometimes it didn’t help, but that was the only reason I did not attempt suicide again. I didn’t want to leave that pain with my parents. The love of a parent to a child can actually save lives.

It’s really important that we in the home make sure we have values and principles about love and self-esteem and the value of

life. That’s what was instilled in me.

I became a speaker at age 19 because my janitor at my high school said that I would one day be a speaker, and I said, “You’re crazy.” So he said, “Nick, you should come speak to a group of students. You’ll change their lives.” I was like, “Dude, you have no idea what you’re talking about. What am I gonna share?” He said, “Your story.” I was like, “I don’t have a story.” He said, “Yes, you do. Just come.” It was like a prayer group at school on Fridays. I said no for three months but I finally went because he twisted my arm. People were crying. They were like, “I was just touched.” And I realized that hope, communicated simply, could affect someone deeply and quickly. All I said was about love and loving yourself and never giving up and knowing that there is hope. Basically, I spoke about 12 more times between ages 17 and 19. And then at 19, I found myself in front of 300 teenagers for about three minutes. The girls were crying. One girl was weeping and put her hand up and said, “I’m so sorry to interrupt, but can I come up and share something?” So in front of everyone she hugged me and cried on my shoulder and said, “Thank you, thank you, thank you.

No one’s ever told me that they love me, that I’m beautiful the way that I am.” That’s when I knew that I was born to be a speaker.

That was 12 years ago.

So no one knowing me and YouTube not existing yet, I was halfway through my degree in financial planning, but that girl touched my life and that’s when I knew that I was born to make a difference in this world on a big magnitude. So that’s the beginning.

It’s been an amazing ride since. So after a string of phone calls, I called 53 schools before one school said yes. And every time I got a “no,” I got better and better. And so with word-of-mouth, we now have 35,000 invitations for me to speak. And I love my life and wouldn’t change anything about it.

I got married 2 ½ years ago in February of 2012, and one year later our baby was born.

It’s a joy in my heart. He gave me his first hug about three or four months ago and it was the best feeling in the world.

What do you say to those struggling with depression or inadequacy and those tempted to pursue that suicidal route?

You know, there is hope in every single situation. That’s just how I’ve seen it. I’ve seen sex slaves being rehabilitated, finding a job, saving up money—not for a house or a car—but going back to pay off another girl’s debt and setting them free and friending them. They would go to rehab together after that and find a job and a new life. Those girls then go back to the pimps who kidnapped and abused them and looked them in the eye and say, “I forgive you. There’s so much more to your life than meets the eye. I forgive you. And if you ask for renewing of your mind and your heart, and a new start, you can find a new beginning in your life too.”

So for someone to forgive someone like that, that is powerful and possible.

Now, I’m not saying I suffer more than anyone else. I believe it’s worse to be in a broken home than to have no arms and no legs. You can have limbs but be disabled on the inside by fear. People put their happiness in what people think of them, in money, fame, sex, pornography, fortunes.

They’re all very bad distractions if you put your happiness in those things. People who are single are like, “Well, I’m never gonna be happy until I get married.” Just because your circumstance doesn’t change, doesn’t mean you can’t have a heart change. You can receive that miracle, you can be that miracle.

That came true when I was 24-years-old and I met a little boy with no arms and no legs in a crowd. His father was holding up this 19-month-old boy. His name was Daniel.

I got him up on stage and everyone cried. He nwflbusinessclimate.com | Business Climate | 15

was my mini-me. I looked at him and just smiled, and he smiled, and everyone cried.

Why? Because it was a miracle. I know when I was 10, I just wished I met someone like me, just to know I’m not alone and I’m not the only one. That would’ve helped me out a lot. It would’ve been even better if someone had actually come to my school and talked about bullying. That would’ve changed my life. But I never got that miracle, but I can be that miracle to him. I want everyone to know that there is hope. You have to be thankful for what you have. Visit kids who have cancer, make someone laugh. One of the greatest medicines of the heart is laughter. It’s beautiful to take your mind off yourself and validate someone else. It ends up helping you. It’s sort of selfish but it’s not.

You actually realize just how much compassion the human spirit actually has. It’s in all of us. We just need to experience, smell it, taste it, touch it and we’ll be changed. My dad always taught me to pray for the poor people before I eat. My first international trip was to take money to African orphans as a 19-year-old. We can’t just say we love the world and not give them anything. We have to help people in need. Instead of thinking, though, that generosity is just about money, be generous with your words, your forgiveness, your understanding, your patience.

Have other understandings of the world. Be a friend to someone. The best friends I had were the friends I befriended first.

Do you believe that adults are bullied and if so, how do they respond to that?

Bullying is everywhere—government, media, workplace, families. It really stems from the weakness of pride, the pride which says I am better or more important than some other human being. Some angry people are just reacting. They control others because they felt control in their lives. A lot of the bullies at my school had problems at home, I found out later. It’s to understand that everyone does something because of something, whether it’s culture, their family, their hurt, their loss, their bitterness, their frustrations. It’s about what we accept as culturally acceptable. A lot of bullying happens in the world because people have

this mindset, “Let this person be bullied, it’ll toughen them up for later.” It actually doesn’t. It does not make someone stronger. They’ve gone through something, yeah, and they know they can get through it, but really, it doesn’t make anyone stronger.

Encouragement makes people stronger, friends make people stronger, faith makes people stronger; not abuse, not marginalizing anyone.

I mean, if three people think you’re a bully, you’re probably a bully. I want people to know that we only have a limited about of time. It’s about dreaming small or dreaming big. I just heard someone say that the same energy and time to dream small is the same it takes to dream big. So why not dream big?

We realize that when you actually get an education and realize what effect your words and actions actually have, you realize that bullying can actually make people contemplate suicide. Most people don’t know that.

My bullies didn’t know that. They didn’t know how depressed I was or how helpless I felt. Five to 7 percent of kids have attempted suicide because of bullying at school. I tell everyone that. There’s nothing good about bullying. What if there’s a chance of a chance that the person you gossiped about tried to commit suicide? Bullies kill someone’s potential. Do you want a part of that?

I don’t want to be remotely associated with that. Nothing’s worth that. Your actions and

words have an impact. If you don’t have anything nice to say, don’t say anything at all.

This generation really needs that message. If you don’t have anything nice to say, just shut your mouth. I get defensive of these people.

I don’t even know their names, but they’re my brothers and my sisters. I don’t tolerate it, ever, and never will.

What applications do hope and selfefficacy have in the business and corporate world?

As soon as we step away from the basic fundamentals of respect and integrity and self-esteem, it’s all gone. It’s vital to have those morals. If we think we can get away with something, in the end it’ll catch up to you. I tell politicians, “You can’t expect to honor a nation if you can’t even honor your own family. You can’t raise a generation until you’re a good parent to your own kids.”

So when you’re tapped into the genuine and the real, everything else is extrapolated from that. It’s the math of the success of life.

Without character and values, you may end up with a lot of things, but you’ll be empty on the inside. There’s always other stuff, and how you get there is everything. During your life, it’s all about achievements, but after you’re gone, it’s about how you lived, how you loved, how you forgave, or how you were selfish. It’s how you make others feel and help them along the way.

“WE CAN’T JUST SAY WE LOVE THE WORLD AND NOT GIVE THEM ANYTHING. WE HAVE TO HELP PEOPLE IN NEED. INSTEAD OF THINKING, THOUGH, THAT GENEROSITY IS JUST ABOUT MONEY, BE GENEROUS WITH YOUR WORDS, YOUR FORGIVENESS, YOUR UNDERSTANDING, YOUR PATIENCE. HAVE OTHER UNDERSTANDINGS OF THE WORLD. BE A FRIEND TO SOMEONE.” 16 | Business Climate | nwflbusinessclimate.com

You speak openly about your faith.

Have you always had those convictions?

I did not like the idea of God. In fact for many years, I really got angry when someone would say, “God’s got a plan for you.”

Well, if he had a plan for me, he should’ve given me arms and legs. Why’d he give me less? Why didn’t he give me a miracle? Well, I’ve seen miracles and I have a pair of shoes in my closet in case he says “yes” to me. I’m not waiting for it either, though. Very rare that you see a miracle like the ones I’ve seen.

In the Bible, there’s a man that was born blind and no one knows why, so they asked Jesus, and Jesus said, “It was done so that the works of God would be revealed through him.” Jesus did not have tell him what his plan was, but he put mud on the man’s face.

What if I put mud on your face? He allowed Jesus to do what he did. So I realized that more than arms and legs, I want life and I want purpose and you can give that to me without arms and legs.

Is faith the one thing to which you attribute your success and coping?

My faith is definitely the foundation of my truth, values and destiny. Anything other

than that is just trying to be a good person.

But being a good person isn’t enough. When you talk to 600 sex slaves, you can’t just say, “Have a positive attitude. Well, just do good and good things will happen.” If there’s a truth, it has to be absolute for everyone, regardless of conditions, time or situation.

What do you see for your future, short-term or long-term?

We want to really start a foundation of philanthropy. Life Without Limbs helps me go around the world and share my faith. I’ve spoken to 400 million people, sharing with them a message of hope. But we don’t want to just spread a message of hope. We want to feed the hungry, clothe the naked, give homes to the homeless. With a billion people going hungry, I’m hopeful that in the next 10 years, world hunger will be eradicated. I believe that there will be an army, connected through social media, of 400 million people giving a dollar per month to say, “Enough is enough. We’re gonna end world hunger.” So that’s my dream.

In the next 18 months, there should be a film about my life that’s going to be in cinemas from birth to becoming a speaker.

I’m probably not actually acting in it. We’re

gonna put a famous actor’s head on my body. The first quarter of 2016, I’m releasing a documentary with me, my wife and my son, about our life. The last scene of the documentary will be me starting my own TV talk show.

We’re thankful and we’re also launching an Attitude Is Altitude magazine with speakers like John Maxwell featured in it. It’ll be free, online, and translated in multiple languages.

What can people expect from your time here in Pensacola?

I’m really excited. I believe that everyone can expect a positive message of hope and inspiration, values and attitudes that I’ve adopted to help transform my life from a life without limbs to a life without limits.

There are limitations to the human spirit and mind, but I want to share about how you don’t have to limit your joy to your circumstances. Change that mindset and heart, and that’s what we’ll be talking about.

nwflbusinessclimate.com | Business Climate | 17

local love SMALL BUSINESS SATURDAY IS A WIN FOR LOCAL CONSUMERS AND BUSINESSES ALIKE

BY JOSH NEWBY & VALERIE THORNEWELL PHOTOS COURTESY OF THE GREATER PENSACOLA CHAMBER

18 | Business Climate | nwflbusinessclimate.com 18 | Business Climate | nwflbusinessclimate.com

s

mall businesses are responsible for a vast majority of economic development in the United States and are considered vital to our continued recovery from the Recession. In fact, small businesses have generated more than 65 percent of new jobs since 1995 and more than 50 percent of America’s working population is employed in a small business, defined as any company with fewer than 500 employees. It is not an overstatement to say that small business has largely built America into what it is today, and while the big box retailers get much of the attention during the holiday season, it is often the little guys that offer the best deals and quality.

Enter Small Business Saturday, the mom-and-pop answer to Black Friday. It was first observed in 2010 and has experienced a surge in awareness recently due to sponsorship by American Express and local chambers of commerce. In 2012, the day was further legitimized when the US Senate and President Obama expressed their support. In 2013, consumers spent $5.7 billion on Small Business Saturday, thanks to the fact that an estimated 93 percent of Americans believe that locals should support other locals.

The growth does not stop there. The National Federation of Independent Business indicated that 88 million consumers shopped small this year, up almost 15 percent from 2013. Even better, 446 companies agreed to be official supporters of the day and a reported 610,000 small business owners used marketing tools available on shopsmall.com, which resulted in the average small business shopper spending $162 on Saturday. The day has become a social media phenomenon, too, with #SmallBizSat and #ShopSmall accounting for 126,000 tweets within the 24-hour period.

“More Americans recognize the direct link between shopping locally and stronger communities and that’s an extremely positive result,”

said Dan Danner, CEO and president of the National Federation of Independent Businesses, in a

statement. “We’re delighted by the success of Small Business Saturday but we’re even more excited by

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the growing commitment among Americans to give small businesses a chance to compete all year round.”

These small businesses are the ones that are worth supporting, as small businesses donate an average of 250 percent more than larger businesses to non-profits and community organizations. According to a recent civic economics study, $68 of every $100 spent at a small business stays in the local economy, compared to only $43 at a larger business.

Locally, the Small Business Saturday initiative was headed up by the Greater Pensacola Chamber of Commerce, which handed out shopping bags, balloons,

doormats, and perhaps most enticingly, American Express gift cards. American Express offers discounts and other rewards on Small Business Saturday to anyone who used their card at a registered small business, with rewards differing every year. The company also puts out online advertisements about small companies to help raise awareness about the day. American Express offers $10 back to every $10 spent. This push seems to have helped, as many local stores reported as much as double the responsiveness and sales over the shopping weekend compared to other weekends.

One such success story is Urban

MORE AMERICANS RECOGNIZE THE DIRECT LINK BETWEEN SHOPPING LOCALLY AND STRONGER COMMUNITIES AND THAT’S AN EXTREMELY POSITIVE RESULT.

“

”

20 | Business Climate | nwflbusinessclimate.com 20 | Business Climate | nwflbusinessclimate.com

Objects, which has been open in downtown Pensacola for almost exactly one year after moving from mid-town. Owner Sarah Gillette believes in fashion forward interior design and the importance of shopping small.

“We’ve been here a year and our sales have doubled from last year,” said Gillette. “People are realizing that if you keep the money local, it goes right back into our local economy.”

Jeanne Kennedy, an employee at Urban Objects, was there for Small Business Saturday and joyfully reported the spike in sales and window shoppers.

“We did have a lot of locals who would come in and say, ‘We are trying to keep it local,’ so they knew what they were participating in,” said Kennedy.

As more corporately-owned companies seek to dominate a

larger share of consumers’ dollars by continually pushing Black Friday into the late hours of Thanksgiving the night before, small businesses remain steadfast and continually increase their profits over the previous year.

At Indigeaux Denim Bar & Boutique, a four-year-old clothing store that is a favorite among locals, co-owner Katie Rozier said that Shop Small merchandising, as well as local marketing and social media initiatives, helped make this Small Business Saturday the best she has seen since the store has been open.

“I think people were shopping late Thursday at big stores and likely slept in a lot Friday,” said Rozier.

“We did really great on Saturday, though. We had 20 percent off the entire purchase and people really showed up because of that and the awareness that was built around shopping small downtown.”

Some businesses actually did better on Black Friday, the day traditionally reserved for larger retailers, than on Saturday.

Michelle Vice owns Vivian’s Loft in downtown Pensacola, a consignment clothing store that is off the usual main drag that is Palafox Street, and sees her increased sales and small business patronage as a sign of the times in the city.

“We actually got more traffic on Friday than on Saturday,” said Vice.

“Friday saw a sales increase of 50 percent and Saturday was 30 percent. I think that just goes to show that people are paying attention to small retailers and are even venturing off of Palafox. It’d be really cool if we keep this momentum going.

As there’s more stores, more people will come down here, which means more stores will open. It’s good for everybody.”

Small Business Saturday is

about more than just the sales, though, according to Vice.

“It’s also about awareness,” said Vice. “Lots of people came in and visited who may not have otherwise. Even if they didn’t buy anything, they know about us now. We generally cater to women over 40, but lots of moms and young girls came in that day.”

As awareness continues to build and shopping small becomes the pervasively trendy thing to do, these small stores have even more business to look forward to. When money that is earned locally is spent locally, it helps us. When visitors come and spend their outside money locally, it helps everyone.

nwflbusinessclimate.com | Business Climate | 21 nwflbusinessclimate.com | Business Climate | 21

ECONOMIC DEVELOPMENT

RICK SCOTT’S ECONOMY

A conversation with Rick Scott’s director of Economic Opportunity, Jesse Panuccio, sheds light on what the governor’s reelection means for Northwest Florida.

By Josh Newby

22 | Business Climate | nwflbusinessclimate.com

ECONOMIC DEVELOPMENT

J

ESSE PANUCCIO IS THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF ECONOMIC OPPORTUNITY, A SINGLE STATE AGENCY DEVELOPED BY THE LEGISLATURE CHARGED WITH STREAMLINING AND COORDINATING FLORIDA’S VARIOUS ECONOMIC POLICIES, PROGRAMS AND SERVICES. PANUCCIO JOINED THE DEO IN JANUARY OF 2013 AND SUPPORTS THE GOVERNOR BY DEVELOPING WORKFORCE, COMMUNITY AND ECONOMIC DEVELOPMENT STRATEGIES.

WHAT ECONOMIC DEVELOPMENT INITIATIVES DO YOU AND YOUR OFFICE ENVISION FOR NORTHWEST FLORIDA? The main thing we’re going to do is keep doing what we’ve been doing. We want to continue to have an unrelenting focus on job growth in the state. The constant work of Enterprise Florida and the DEO to attract new business to the state is not going to let up.

With respect to Northwest Florida, we need to step back and say, “What are the inherent advantages we have and how do we capitalize on those?” And then we need to invest time and energy there. So if you look at the Panhandle, you have access to all the major Southeast markets, the trail line, sea ports and airports.

You have three universities, you have the military, which provides a constant and renewable workforce. You have a pro-business attitude and you have a high quality of life and are a great destination for tourism. So when you look at all that, what do you want to focus on?

You could focus on manufacturing, aerospace, health sciences, and supply-chain

logistics. So DEO really works to build on those areas.

I KNOW THAT THERE ARE LAWS AND COMMITTEES THAT DETERMINE THE DESTINATION OF RESTORE FUNDS, BUT IF YOUR OFFICE HAD A SAY IN IT, HOW WOULD YOU LIKE TO SEE THOSE GET USED? Well you’re right that there are various laws that govern that money and that money is not a DEO direction. I think in general we’d want to see them get used in line with a strategic plan for economic development and with our goals from the last several years.

The main focus of those funds is the environmental protection and restoration, but also economic development.

Recently the Governor put out proposals for a number of projects for environmental protection and restoration. Hopefully those can all get funded.

As for economic development, I think I would go back to strengths and weaknesses. That money should be a longterm investment in the area and shore up Northwest Florida’s infrastructure

development, site readiness for businesses, education of the workforce, and tourism. With the right focus, those funds could create long-term economic development for the region.

WHAT DO YOU SEE THAT SETS NORTHWEST FLORIDA APART THAT MAY BE ATTRACTIVE TO OUTSIDE BUSINESSES? Those advantages are really key. First of all, proximity to the Southeast market.

The southeastern United States is probably the fastest growing area of the country, and Northwest Florida is the closest part of the state to those markets. You have good transportation and logistic infrastructure in place already. You have two deep water sea ports in Pensacola and Panama City, both of which are foreign trade zones. The military installations can also not be understated. Not only is that attractive for industries that work with them like defense and aerospace, but it also means you have a workforce that is well trained and dedicated as they come out of the military. Another advantage is abundant land. There are

FLORIDA HISTORICAL DEBT OUTSTANDING IN BILLIONS

2011 WAS THE FIRST YEAR SINCE THE RECESSION WITH A BUDGET SURPLUS

$30 $25 $20 $15

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

$0

1993

$5

1992

$10

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ECONOMIC DEVELOPMENT

some areas in the Southeast market that are very much built out and there’s not a lot of space for development. That’s not the case in Gulf Coast Florida. There’s a lot of space to grow. You also have a probusiness attitude and municipal governments that want to encourage growth and be friendly to industry. Tourism is also important because it brings money into the economy and allows other things to grow. I think there are a lot of advantages that outside businesses seek and will find to be evermore attractive.

WHAT ARE YOUR THOUGHTS ON FLORIDA’S JOB PARTICIPATION RATES? First of all, labor force participation: we’ve had very strong growth recently.

The latest numbers we have for October show that we had 238,000 people entered the workforce over the last 12 months. That means the unemployment rate is coming down because people are getting back to work and are entering the work force for the first time and getting jobs. That growth over two months is 2.5 percent, so compare those numbers nationally. Both in terms of percentage and raw numbers, our workforce growth

outpaces the national growth rate. Over that year, there was a 1.1 percent increase and ours was 2.5. With 700 people moving to the state everyday, and while not everyone is coming here for a job, a lot of people are coming to Florida for the opportunity.

WHAT DO YOU THINK ACCOUNTS FOR THIS GROWTH? It’s what’s happening in our economy.

People are confident again that there’s a market out there for them and jobs out there for them. You see that in those numbers. We’ve had one of the strongest job growth stretches in the country over the last several years. As that news gets there, as the story of economic turnaround permeates the labor market, you see people want to get back in and get a good job and get back on the road to prosperity.

ARE THESE ENCOURAGING TRENDS SUSTAINABLE? We certainly hope so. I think what you have seen around the country, and especially in Florida, is that there are states that pursue the low-tax policy

UNEMPLOYMENT RATE 7% 7% 6% 6% 5% 5% 4% 4%

FLORIDA

BAY

WASHINGTON

HOLMES

WALTON

0

OKALOOSA

0%

SANTA ROSA

1% 1%

ESCAMBIA

2% 2%

UNITED STATES

3% 3%

and that proves that those policies work.

We don’t have any plans to change that as long as the Scott administration is in office. We will continue to see job growth and we want the unemployment rate to continue to go down. As long as that’s happening, you will continue to see a very attractive labor market for both native Floridians and people coming here.

A RECENT STUDY PUT FLORIDA’S INCOME INEQUALITY AT THE THIRD-WORST IN THE NATION, BEHIND JUST NEW YORK AND CONNECTICUT. HOW DO YOU RESPOND TO THAT? Well, I think what we need to be talking about is whether everyone who wants a job in Florida can get a job. Once they’re in that job, is there room to grow and go up the economic and opportunity ladder? This is America. We have people with free hearts and free minds.

We want people to be entrepreneurs, go out there, invest their time, talent and money, and then succeed wildly beyond their dreams. We want them to be rewarded for that. When you talk of perhaps punishing those with success,

FLORIDA JOB CHANGES MONTH TO MONTH Florida 40,000 35,000 United States 30,000 25,000 20,000 Bay 15,000 10,000 Washington 5,000 Holmes 0 -5,000 -10,000 Walton -15,000 -20,000 Okaloosa

24 | Business Climate | nwflbusinessclimate.com

Santa Rosa

2011

2012

2013

2014

that is the wrong mindset.

We should be talking about creating an opportunity economy for everybody.

And I think that is happening in Florida.

If you look at where the jobs are, the 679,000 jobs we’ve added so far, 77 percent of them are in a sector with an average wage greater than $39,000, so that’s far above minimum wage. Fortytwo percent are in a sector with an average wage greater than $45,000. So if you look at our job growth, we are seeing that growth in higher wage, higher skill sectors. And we want that to continue.

The best way to deal with issues of increasing wages is to have policies that encourage work, encourage people to be in the work force. That’s how you encourage everyone to be better: gain skills and gain experience that will help you move up the economic ladder.

SINCE THE RECESSION, THE TOP 1 PERCENT’S INCOME IN FLORIDA HAS INCREASED BY 116 PERCENT WHILE THE BOTTOM 99 PERCENT’S HAS DECREASED BY 8 PERCENT. DO YOU BELIEVE IT IS THE ROLE OF GOVERNMENT TO HELP REVERSE THAT TREND? Well the first thing I say is that a lot of these things, it depends on which economist you’re asking and what they tell you. Some economists will tell you income inequality studies are based on taxable income and changes in the way it’s calculated by the federal government.

That may affect how we look at income inequality. For example, as benefits shift toward healthcare and other things that

may not get taxed, it may affect how we look at it.

Be that as it may, the overriding point is the government’s role is to create conditions that allow the private sector to grow and to thrive. When that happens, you’ll get better innovation, more jobs, and the wage growth that comes with it. And more importantly, opportunity for everyone to enter the labor force. I mean, in a free market society we want jobs available at every step on the ladder of the economy. There are entry-level jobs that people can get into, gain contacts, and move up the ladder.

An economy where every job pays the same thing wouldn’t be the free market and wouldn’t be the engine that made America great. I think our job is to make sure we have pro-growth, low-tax policy that encourages the private sector to grow. Then we get out of the way and allow it to happen. When that happens, everyone benefits, not only in terms of wages, but also in terms of the policy behind it. It’s because America has a free market that people like Bill Gates and Steve Jobs were able to go out there and innovate in the way that they did.

ARE THE NEW JOBS THAT HAVE BEEN ADDED TO FLORIDA’S ECONOMY WEIGHTED TOWARDS JOBS THAT PEOPLE ACTUALLY WANT, OR ARE THE PART-TIME JOBS BEING FILLED BY FULLTIME WORKERS? If you look at the number of workforce in terms of fulltime jobs versus part-time jobs, I don’t think it’s changed

much over the last several years. This indicates that there are jobs that people want and those who want fulltime jobs, many of them are able to get them.

People often say that the jobs that are added are not the ones people want, and I have two responses to that. One, every job is a good job to someone who didn’t have one yesterday; and two, every job is an entry point back into the labor force.

That’s very important. The longer someone is unemployed, the harder it is to get a job. Getting back in at any level is significant in terms of future opportunity.

But if you break down those 679,000 jobs, the average wage for the industry in which they’re found is pretty good.

DO YOU SEE FLORIDA GOING MORE TOWARD A HIGHER EDUCATION WORKFORCE OR A VOCATIONAL WORKFORCE? I actually think it’s both. First let’s look at the numbers and what they tell us. Education is economic development.

The numbers show that the more education you have, the higher your earnings tend to be and the lower unemployment is. So a high school grad over time makes about $10,000 more a year than a nonhigh school grad. Those with a college degree tend to earn $20,000 more per year than those without a college degree.

And we see lower unemployment rates as we move up the educational ladder.

That said, we as a country and certainly as a state started to look down on what used to be called vocational education. What we’re finding out is that nwflbusinessclimate.com | Business Climate | 25

ECONOMIC DEVELOPMENT

training in the mid-level tech field or STEM jobs is very important. Training in a two-year apprenticeship program can very often lead to prosperity for many families and result in careers that have long-term, higher wage jobs. We are focusing on both.

We need to be educating at the highest levels the Ph.Ds and the engineers that will design businesses and innovations of the future. But for every one of those, you probably need 10 or 20 to actually implement those ideas and get paid well for doing that. So we need both. You’re seeing the state, governor, legislature, and other leaders in the state really focus on that—making sure that our universities are getting better all the time but at the same time making sure we have certificate programs that will get those mid-level STEM jobs. My short answer is “it’s both.”

HOW DO YOU BALANCE ENVIRONMENTAL SUSTAINABILITY AND COMMONSENSE REGULATIONS WITH THE FREE MARKET? Again, the short answer is “it’s both.”

The environment and the economy are intertwined, especially in a state like Florida where the environment is not only important for people who live here but for the people who visit as tourists.

We have beautiful nature and wonderful beaches that people want to visit.

Florida has realized for a very long time that we need to be careful of our natural resources and grow our economy in a

sustainable way.

I think you’ve seen in the Scott administration a dual track. We have pursued economic development vigorously, but at the same time, we have done that in a responsible way with a lot of emphasis on environmental sustainability and restoration. You’ve seen record investments in Everglade restoration, for example.

We have water standards that are held up as a model for the rest of the nation.

And I don’t think that’s going to change.

You just have to have both in mind. We are a growing state and the people moving here will need somewhere to live and work and have opportunity. But as we grow, we need to grow in a smart way and have the resources that those people will need in the future for their children.

ANYTHING ELSE YOU’D LIKE TO ADD ABOUT YOUR OFFICE? I think the main message is, “Stay the course.” You have Gov. Scott throughout the campaign season and his entire first few years and now looking out at the next four talk about jobs, jobs, jobs. He and his administration have helped our ability to continue to lower taxes so that people want to continue to move to the state and everyone who wants a job can get one. I think that is the encouraging work we’ve done.

We’re looking forward to working with partners all over the state. I think you’ve seen a greater cooperation across the state as everyone sort of coalesces

Pictured: Jesse Panuccio

around economic development and the goals of the administration. That’s a good thing. Economic development takes a while, so I’m glad we have eight years to really continue this project. I think the 679,000 jobs is just the beginning.

JOBS AND WAGES AS OF OCTOBER 2014 SECTOR

AVERAGE WAGE

# JOBS SINCE DEC. 2010

Leisure/Hospitality

$22,490

138,400

Other Services

$31,139

17,300

Trade/Trans/Util

$39,181

153,000

Construction

$42,129

83,100

Education & Health Services

$45,582

80,400

Professional & Business Services

$52,963

151,200

Manufacturing

$54,087

18,500

Financial Activities

$63,006

40,100

Information

$68,514

-3,200

Government

$48,376

-22,700

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around the region

UWF Office of Economic Development and Engagement announces industry research matching grant program The University of West Florida Office of Economic Development and Engagement recently launched a $1.5 million matching grant program to connect Northwest Florida businesses with research resources available through UWF. The new program, called the Northwest Florida Industry Research Matching Grants Program, makes UWF faculty, staff and students available to participating businesses to promote job creation in Northwest Florida by aiding in the development of new, commercially viable intellectual property that could net new revenue for the region and state.

Participating businesses will be required to contribute at least $3 for every $1 provided by the matching-grant program. Businesses interested in participating in the grant program must work with a UWF faculty or staff member to draft a proposal they will submit to OEDE for review by a committee.

Florida’s business tax climate ranked fifth in the nation A new national report ranking Florida’s business climate as fifth best in the nation highlights the state’s strengths but may overstate the attractiveness of Florida’s tax system, according to Florida TaxWatch. The ranking is from the Tax Foundation’s 2015 Business Tax Climate Index, an annual publication that analyzes how tax structures compare across states.

“Florida’s tax structure is one of the many factors that makes Florida a good place to do business,” said Dominic M. Calabro, president and CEO of Florida TaxWatch.

“However, there is always room for improvement. Instead of focusing on Florida’s fifth place ranking, policymakers should look at where they can make needed reforms to help welcome additional capital, more jobs, and further economic growth to the Sunshine State.”

Florida is the only large state appearing in the top five, while rival Texas received a 10th place score. California, New York and New Jersey were judged to have the worst tax climates.

Florida’s lofty ranking is largely due to its not having a personal income tax, the most heavily weighted tax in the Index.

While Florida receives high scores in all tax categories, the Florida TaxWatch report notes that the property and sales tax rankings may be overstated. Florida’s property tax structure shifts burden to non-homestead properties, including businesses. Florida’s high sales and excise taxes rate and its taxes on commercial leases, communications, and non-residential electricity may not be adequately reflected in the state’s sales tax ranking of 12.

“Other states are taking significant steps to improve their business tax climate,” said Kurt Wenner, vice president of Tax Research for Florida TaxWatch. “Florida lawmakers have an opportunity to use the tax ranking information to address real tax reform in our state, such as reducing or eliminating the sales tax on commercial leases, reducing the communications services tax, eliminating the tangible personal property tax, and collecting lawfully owed sales and use taxes on internet purchases.”

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Viewpoint: Income Distribution

By Rick Harper

Increased global trade and improvements in technology contribute strongly to greater household incomes around the world. But the improvements aren’t uniform either across nations or within nations. The hollowing of job markets in wealthier nations that is associated with globalization and automation contributes to greater income inequality within those nations.

Data from the IRS allow us to examine some of these income changes over time in the U.S. The Statistics on Income dataset provides data at the ZIP code level. Publicly available data go back to 2001, although later years report a greater variety of information for each area.

For Florida, we can identify 895 ZIP codes with enough returns in both 2001 and 2012 to allow for meaningful comparison. These data reflect the prevailing wisdom that inequality is increasing. Households that had higher adjusted gross income before tax in 2001 showed a higher income growth rate over the next dozen years. There is a highly statistically significant 34.9 percent correlation between income in 2001 and subsequent income growth rates. If we look at those 446 ZIP codes that had the highest income in 2001, they registered an average cumulative income growth rate of 38.4 percent over the following years until 2012, while the bottom 446 registered a 27.3 percent growth rate.

Though 27.3 percent growth is hardly trivial, the challenges of slow income growth become apparent when looking at inflationadjusted measures of income. Using the consumer price index as a measure of inflation, a household would have needed a 29.6 percent increase in income just to keep 2012 purchasing power equal to 2001 purchasing power. In Florida, 486 ZIP codes, or 54 percent, failed to beat inflation over that period.

There are several economic drivers at work. With technology prices falling and the cost of hiring rising, traditional middleclass jobs in high-income economies are increasingly at risk.

The job categories with the best growth are those that create or manage the new technologies and those that require face-to-face contact and can’t be automated.

Less-skilled workers, particularly those with outdated skills, face intensified competition even as the demand for their services stagnates or falls. This change is a primary driver of increased income inequality.

Many skilled workers can sell directly (the NBA will play before crowds in China, Brazil, Germany and Turkey this season) or indirectly (via profitable export markets) across national borders, and the demand for their services grows rapidly.

The newest Maersk Triple-E series ships can carry 18,000 20-foot containers across the Pacific Ocean in about two weeks and only need 22 crew members. Fast and efficient shipping from the factories of Southeast Asia has revolutionized the global geography of manufacturing, allowing wages to rise in new manufacturing hubs around the globe.

But shipping cost changes are small compared to the impact of automated processes on the way goods and services are produced. A commonly used rule of thumb in industry is that it makes sense to replace a worker with a robot if the cost of that robot is less than double the annual wage for displaced worker(s). Automated technology becomes more cost competitive with labor every year.

Research shows that our tax system then alleviates some of this inequality, although not to the extent seen in other developed nations. The net result is an increase in income inequality that can be seen in Florida and around the nation.

Pensacola area adds jobs in October The metro area jobs report for October was released on Nov. 21 by the Florida Department of Economic Opportunity, and Pensacola registered 163,600 jobs, seasonally adjusted, on nonfarm payrolls. This was an increase of 2,700 jobs, or 1.7 percent, over October 2013.

The uptick for the twocounty metro area was in line with national growth of 1.9 percent in October, but slower than the statewide growth rate of 2.7 percent for the month.

The metro area unemployment rate was 5.6 percent, down from 6.3 percent for October 2013.

Of the area’s 10 major economic sectors, leisure and hospitality turned in the strongest performance, accounting for 1,700 jobs, or 63 percent, of total growth over the year.

The information sector showed the greatest percentage growth over the period, at 9.1 percent. But because that sector is only about 1.5 percent of total employment, it was a change of some 200 jobs over the prior year’s figure.

Because the leisure and hospitality sector is large, accounting for 14 percent of all employment, those 1,700 jobs equated to an 8.2 percent annual growth rate.

The natural resources and other services sectors each lost about 200 jobs over the year, while government employment grew by 600.

Pensacola is still some 8,200 jobs short of the peak reached in early 2007 at the height of the real estate bubble. However, the 2,700 per year pace registered over the past year is well above the average 12-month change of 1,600 seen since the economy began regaining jobs after employment bottomed out in late 2009. The latest seasonally adjusted figures are now 10,300 jobs above the December 2009 figure.

people on the move

Saltmarsh elects Chuck Landers as shareholder Saltmarsh, Cleaveland & Gund is pleased to announce that Chuck Landers has been elected to shareholder as of Jan. 1, 2015. Chuck joined the firm in 2005 and has served as a senior manager in the Audit & Assurance Services Department of Saltmarsh, Cleaveland & Gund. Chuck’s primary areas of focus include providing audit and assurance-related services to not-for-profit and governmental entities, utilities, manufacturers, contractors, home builders and related trades within the construction, real estate and development industries. His professional designations include Certified Public Accountant (Florida) and Construction Industry Technician (CIT).

Matthew Schmidt joins Summit Bank as new vice president of Summit Investment Services Matthew Schmidt joins Summit Bank as Vice President, Summit Investment Services. In his new role, Matthew will be responsible for recommending sound investment portfolios and products that offer the highest probability of accomplishing each client’s unique objectives, without exposure to unnecessary risks. Matthew’s background includes a successful track record and investment philosophy formed during his 14 years of experience as a Raymond James financial advisor, wealth management partner at a local bank, and most recently as a financial advisor at Morgan Stanley Wealth Management.

Wayne Sumlin, CPA to join Saltmarsh, Cleaveland & Gund Saltmarsh, Cleaveland & Gund is pleased to announce that Wayne Sumlin, CPA will be merging with the Firm effective Jan. 1, 2014.

Wayne Sumlin will be joining the Pensacola office as a shareholder along with five of his current employees. Sumlin opened his own practice in September of 1981 in Pensacola, Florida. He has over 40 years of experience in accounting with an extensive background in trust and estate work.

Ronald Jackson named Chairman of the Board of Directors of PKF North America for 2015 Saltmarsh, Cleaveland & Gund is pleased to announce that Ronald Jackson has been named Chairman of the Board of Directors of PKF North America for 2015. “‘We rely on the talented leaders on our board for direction and vision as we strive to capitalize on our association’s strong national and global position,” said Terry Snyder, president and CEO of PKF North America. “Ron is a former board member and has served on several committees within PKF, including the Nominating Committee, which he chaired from 2010 to 2012, Strategic Planning Committee, and Firm Management Review Committee.”

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business scene At Wreaths of Joy Gayle & Todd Torgersen

Herb & Ann Woll

Glenys Ballinger, Jerri McAlpin, Gay Carter

Ed and Marsha Hanson with Miss Teen USA

At the Wreaths of Joy sponsor reception Alisia & Vincent Andry

Scott & Cindi Warren

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Teresa & Arthur Shimek

Andy Eskridge, Malory, Gayle & Todd Torgersen

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Partnering With Our Community Each  year,  International  Paper  provides  more  than  $10  million  to  support  thousands  of  charitable  organizations  in  the  communities  where  our  employees  live  and  work.  Company  contributions Â

giving  strategy,  as  we  strive  to  be  the  best  socially  responsible  corporate  neighbor  in  our  communities.  Another  way  that  IP  maintains  community  dialogue  is  through  meetings  with  our  community  advisory  council.  Members  of  the  group  are  actively  involved  in  the  community  in  both  Florida  and  Alabama  and  volunteer  their  time  to  provide  guidance  and  feedback  on  a  variety  of  topics.

2014  IP  Foundation  Grant  Recipients Autism Pensacola Ballet Pensacola Community Action Program Council on Aging Escambia County Board of Education Escambia County Public Schools Foundation Every Child A Reader Jim Allen Elementary JM Tate High School Navarre Beach Sea Turtle Conservation Center Partnership for Community Programs Pathways for Change Pensacola Habitat for Humanity Pensacola Opera Pensacola State College Perdido Bay Tribe Muscogee Creek Perdido Bay United Methodist Church Ronald McDonald House of Northwest Florida SS Dixon Primary United Cerebral Palsy University of West Florida

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2014  Mill  Contributions  and  Donations Area  School  Project  Activities Creative Learning Academy Jim Allen Elementary JM Tate High School McMillan Pre-­K SS Dixon Primary School

Community  Events American Cancer Society Relay for Life Bayou Hills Run Cram the Van Dumpster Dive Great Gulf Coast Arts Festival Golden Apple Awards Log-­A-­Load for Kids MLK Commemorative Parade and Celebration United Way Workforce Campaign Vision 2015

ARC Gateway American Heart Association BIG Autism Foundation

BRACE Covenant Hospice Greater First Baptist Church FCA Fiesta of Five Flags First Book Pensacola Health and Hope Clinic Leaning Post Ranch Junior Achievement Junior League of Pensacola Manna Food Pantries Pace Center for Girls Santa Rosa County Foundation for Schools

Community  Memberships Greater Pensacola Chamber of Commerce Northwest Florida Manufacturing Council Pace Chamber of Commerce Perdido Key Chamber of Commerce For  more  information  on  IP  giving  visit:  ipgiving.com Pensacola  Mill  contact:  Janice  Cooper  Holmes  @  850-­968-­4203

Thank  You  to  our  Community  Partners  from  the  Pensacola  Mill  Team!