Northwest Florida Business Climate July/August 2013

Haas Center

Q & A with Rod Lewis

Locals Lead

State Public Relations Gulf Coast Enterprises Inspires

HOPE

AND

PRODUCTIVITY

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from the

publisher’ s pen Malcolm Ballinger Publisher

Things seem to be looking up in Pensacola. The unemployment rate continues to drop, local professionals and businesses are receiving recognition and contracts at state and national levels, and as discussed in previous issues, the likely influx of BP Restore dollars should continue to bolster this great region and reduce the effects of the recession, oil spill, and sequestration. There is still much work to be done, though, and as a business owner myself, I'm excited to see the steps that many are taking to continually transform Northwest Florida, and the predictions of a more diverse economy.

Communication is vital to any success, be it in business, non-profit, or any promotion of new ideas. Pensacola has no shortage of award-winning, top-notch communicators, as evidenced by our story on page 48. Three local public relations practitioners, Jeff Nall, Gordon Paulus, and Valeria Palmertree, serve at the state level with the Florida Public Relations Association. With FPRA, they not only contribute their vast experience for the edification of others, but also learn about the very latest tools and trends in the profession so they can continually promote this great city.

It is no secret that Pensacola has a giving spirit. We have many charities and non-profits dedicated to helping the disadvantaged and disabled of our city have access to care, food, and more. One organization that many may not be aware of, though, is Gulf Coast Enterprises. Part of Baptist Health Care's Lakeview Center, GCE is headquartered in Pensacola and works in 13 states to provide physically and cognitively disabled citizens with access to competitive wage jobs. The disabled population in America has an unemployment rate of 80 percent, even though many are fully competent, able workers. Unfortunately, the stigma associated with many disorders places these people at a disadvantage. Read about how GCE helps combat that on page 51.

We all love good news, and Rod Lewis, director of the Haas Center for Business, Research and Economic Development, has some good news to share with us on page 55. Business Climate recently asked him a series of questions related to local unemployment, manufacturing, workforce concerns, economic predictions, local impact of federal budget cuts, and more. Go deep into the economic nuances of this area and what businesses can do to diversify and improve in the face of recent budget and environmental crises with our exclusive interview.

Finally, as usual, Mike White shares with us some valuable IT tips that smalland medium-sized business can use in their day to day operations.

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Contents FEATURES 55. Haas Center: Q&A with Rod Lewis Director of the Haas Center for Business, Research and Economic Development

DEPARTMENTS 48.

48. COMMUNICATION Locals Lead State Public Relations

51. WORKFORCE Gulf Coast Enterprises Inspires HOPE AND PRODUCTIVITY

51. in every issue 59. IT TIPS 60. AROUND THE REGION 61. PEOPLE ON THE MOVE 46

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July/August 2013

July/August 2013 PUBLISHER

never be bored

MALCOLM BALLINGER malcolm@ballingerpublishing.com BC EDITOR

KELLY ODEN kelly@ballingerpublishing.com ART DIRECTOR

RITA LAYMON rita@ballingerpublishing.com GRAPHIC DESIGNER & ADVERTISING COORDINATOR

KASSIE MCLEAN kassie@ballingerpublishing.com EDITOR

EMILY LULLO emily@ballingerpublishing.com BUSINESS EDITOR

JOSH NEWBY josh@ballingerpublishing.com EDITORIAL INTERN

ELLIE GRABSKI ellie@ballingerpublishing.com SALES & MARKETING

SHARYON MILLER, ACCOUNT EXECUTIVE EXT. 28 sharyon@ballingerpublishing.com RHEANA RICE, ACCOUNT EXECUTIVE, EXT. 31 rheana@ballingerpublishing.com CONTRIBUTING WRITERS MIKE WHITE

OWNERS

MALCOLM & GLENYS BALLINGER

www.downtowncrowd.com

PUBLISHER

MALCOLM BALLINGER malcolm@ballingerpublishing.com EXECUTIVE EDITOR

KELLY ODEN kelly@ballingerpublishing.com ART DIRECTOR

RITA LAYMON rita@ballingerpublishing.com GRAPHIC DESIGNER & ADVERTISING COORDINATOR

KASSIE MCLEAN kassie@ballingerpublishing.com EDITOR

EMILY LULLO emily@ballingerpublishing.com BUSINESS EDITOR

JOSH NEWBY josh@ballingerpublishing.com SALES & MARKETING SHARYON MILLER, ACCOUNT EXECUTIVE EXT. 28 sharyon@ballingerpublishing.com

RHEANA RICE, ACCOUNT EXECUTIVE, EXT. 31 rheana@ballingerpublishing.com SIMONE SANDS, ACCOUNT EXECUTIVE EXT. 21 simone@ballingerpublishing.com WEBSITE:

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_COMMUNICATION

Locals Lead State Public Relations

By Josh Newby

Formulating the messages of companies big and small, helping educate and enlighten the public on hot-button issues, dispelling false rumors and replacing them with accurate, easily digestible information: those are the responsibilities and mandates of the public relations professional. They work on both sides of the message—crafting it and responding to it, creating a dialogue that is beneficial for all parties. These practitioners understand the managerial, legal, sometimes confusing jargon of their clients and translate the key points into a message that can be easily understood by a fifth-grader.

Public relations is not a new vocation; as a communications tool, it dates back hundreds of years to when scribes would document a pharaoh’s accomplishments and when Plato and Aristotle first drafted theories on rhetoric.

Today, in its modern form, PR practitioners partner together in professional organizations such as the Florida Public Relations Association (FPRA) to gain new insights into strategic communication, leadership, and creating mutually beneficial relationships between an organization and its publics.

“Pensacola has really become a hub of public relations, because of the quality of communication students and the leaders in the community that they become,” said Scott Harrington, a winner of the association’s highest honor, the John W. Dillin Award. “I’ve

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often said that communications in Pensacola is home-grown, and it’s because of organizations like FPRA that the profession has been able to evolve with the media while staying true to its roots.”

FPRA was founded in 1938, making it the oldest PR organization in the country. The association is comprised of more than 1,100 professionals representing nonprofits, government entities, agencies, private corporations, healthcare organizations and more. Each member pledges to adhere to a code of ethics that reflects their personal and professional integrity. FPRA is represented on the state level by a board of directors. This year marks FPRA’s 75th anniversary, and representing the association to the state are three local PR professionals who exemplify the organization and the profession as a whole.

Jeff Nall, whose day job is serving the Council on Aging of West Florida as vice president of communication and development, served as the association’s state president this year. Gordon Paulus, senior communications specialist for Gulf Power Company, serves as the state’s vice president of annual conference. Valeria Palmertree, director of communications for Visit Pensacola, serves the state as vice president of planning and research.

Pensacola is no stranger to recognition on the state FPRA stage, as the area’s

July/August 2013

professionals and students routinely receive positions at top levels of leadership and numerous awards representing a variety of notable accomplishments.

“It’s a real honor to represent the Pensacola Bay Area and our local public relations industry in this capacity, and it’s not something I take lightly,” said Palmertree. “To serve alongside people like Jeff and Gordon is a testament to the quality of our community’s communications professionals and to their passion and drive. I think I can speak on behalf of all of us in saying that we feel a strong desire to foster positive change and to bring professionals closer together, and each of us is very proud to be part of the Pensacola community and to represent it at the state level through our involvement in FPRA.” The association provides a variety of services, benefits and opportunities dedicated to the success of its public relations professionals from continuing education, professional accreditation, monthly professional development programs, professional recognition and an annual conference. This year’s 75th anniversary annual conference, which will take place August 4-7 in St. Petersburg, will include an unprecedented number of speakers from across the country, and will be a celebration of the past, present and future of public relations and FPRA.

Nall has been a long-time member of the organization and believes in the power of public relations and communications to shape relationships built on effective communication.

“In my opinion, it is all about relationships,” said Nall. “It is much easier, and more effective, when we communicate with those with whom we have relationships.

‘Relations,’ and relationships, infers two-way, open communication – the type of ‘listening to and learning from’ – required in any successful relationship, personal or professional. ‘Publics’ is the term used in the industry to refer to audiences, stakeholders and others with whom we would like to establish relationships and communication.”

For Pensacola, public relations has become a valuable tool in helping properly educate the public about recent disasters, such as the BP oil spill, and successes, such as money received to restore the city’s economic and environmental status.

“It’s all about the message,” said Paulus.

“Deciding what message, the appropriate way to deliver it and who needs to receive it are all components of good public relations. That holds true, whether it’s Pensacola, Poughkeepsie or Portland.”

“I think that level of professionalism in public relations serves all communities well, and in a close-knit city such as Pensacola, I can’t imagine a greater community asset than the ability to communicate strategically and efficiently as we continue to establish this destination as one of Florida’s greatest,” said Palmertree.

Just like any profession, public relations has seen vast and revolutionary changes with the rise of social media and amateur journalism. With a quickly changing, sometimes volatile political, business and economic landscape, it is perhaps more important than ever to craft understandable, truthful messages that cut through the clutter of rumor, establishing and reinforcing credibility.

The future of the industry remains to be seen, as forms of media change and access to information grows daily, but just as the theories of Plato and Aristotle still ring true today, so the need for clear, concise communication and strategic messaging will continue to be an indispensible tool.

“I believe the future is exciting for public relations practitioners,” said Nall. “Though the basic foundation and our strategic thought process are evergreen, the tools and technology that we use to communicate with others is constantly changing. I also believe that as the public increases its expectations of organizations – whether it be transparency, sustainability, social responsibility or community engagement, for example – and has access to greater information as well as the ability to initiate conversations and share opinions via social media, there will always be a need for professionals to represent organizations in dialogue, craft key messages and provide counsel to organizational leadership.”

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WORKFORCE_

Gulf Coast Enterprises Inspires

HOPE AND PRODUCTIVITY

By Josh Newby Photos courtesy of Baptist Health Care

Gulf Breeze Hospital

One of the area’s best-kept secrets is an organization that partners with area non-profits and health care facilities to benefit the local economy, area veterans and people with disabilities in Northwest Florida. Founded in 1986 and part of Baptist Health Care’s Lakeview Center, Gulf Coast Enterprises (GCE) secures administrative, custodial, management, health care, and most recently information technology contracts and hires those who may otherwise not be able to find a job. The company currently has about 1,800 employees in 13 states and has won numerous awards for service excellence since its inception.

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The Lakeview Center has provided disadvantaged citizens with high quality, behavioral health care and vocational services for years, helping them recuperate and become independent, productive members of society once again. However, it was quickly discovered that the stigma associated with many of these individuals prevented many from receiving competitive wages and good jobs with benefits. It was for that reason that Gulf Coast Enterprises was created.

GCE works to obtain contracts for various services locally and nationally, then works with employment specialists in those areas to hire disabled individuals struggling with a variety of disadvantages, from PTSD and cognitive ailments to physical limitations such as blindness or deafness.

“On any contract that we get, we ensure that 75 percent of our employees are significantly disabled,” said Rusty Branch, GCE’s quality and training manager.

“For these individuals, we don’t just provide the hope of an opportunity, we provide the actual opportunity.

People tend to dismiss people with disability and they don’t employ them, even though they’re completely qualified. There are few things I’ve ever seen that are as valuable as this program. We answer a lot questions and provide a lot of dignity.”

A big focus of GCE is providing competitive wages and even benefits for those who normally would not be able to even hope for such things.

“We often say we have a triple bottom-line,” said Rich Gilmartin, the president of GCE. “The first is that we are giving these individuals a productive identity.

Many times when people first meet you, they’ll ask you what you do. Now our employees have an answer to that question. Our second bottom-line is that these people who were once tax-users, receiving subsidies and payments from the government, are now tax-payers, and are contributing to the system that helped them. The third are the organizations that need the service anyway, and are benefitting from the service while benefitting others.”

The disabled population in America currently has an 80 percent unemployment rate and represents the largest minority group in the country. This minority is also the only group that any person, regardless of race, sex, etc., could join at any time.

Branch said that this type of organization is beneficial not only because of economic and workplace concerns, but also because of concerns about human life and respect for all people.

“This is a phenomenal service, one that not only saves the taxpayers money and actually benefits the system as a whole; the organization also gives people hope and ambition that they can truly

Photos on these two pages are of the NAS Pensacola Galley

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better their own lives,” said Branch.

Recently, GCE procured a $50 million Department of Defense contract to provide enterprise information technology services and supports to the Defense Manpower Data Center (DMDC) at its locations in Seaside, CA., and Alexandria, VA. “This new contract will provide excellent opportunities for wounded warriors and disabled veterans to put their IT skills to work once again serving their country, but this time as civilians in high-skill, high-wage occupations,” said Gilmartin.

The DMDC is responsible for maintaining the largest data archive of personnel, training, security and financial data in the Defense Department. It is responsible for software development and quality assurance, data warehousing, data management, and issuance of military and civil service identification cards.

Initially, GCE’s primary role will be managing and supervising the contract. Most of the more than 300 positions covered by the agreement will be filled by employees of three companies subcontracted to do the work. Gradually over a two-year transition period, those positions will move to GCE, which will fill many of the posts with disabled military veterans, wounded warriors and other people with significant disabilities.

“We often seek people who already have experience in these areas,” said Gilmartin. “A lot of our military men and women have an IT background but are no longer able to find work because of PTSD or physical disabilities. This contract helps fill that demand.

We also provide some training so that even those who don’t have a strong IT background can benefit from the program.”

Although this contract will benefit disabled people in California and Virginia, the local company still focuses on their native region.

In the Panhandle alone, GCE employs 700 employees, 100 of whom are veterans and about 500 of whom are disabled.

“Locally, we look to United Way, ARC Gateway and other similar organizations for recommendations of employment,” said Branch. “When we procure a contract, we’ll set up a job fair and distribute information to our partners so that they can make their clients aware that we are hiring. We always aim to employ people from the actual city where we’ll be working, so we can benefit the local economy and local people.”

The same practice is used for finding veterans who have similar job experience but have been disadvantaged by lost limbs or the psychological side effects of war.

“We’ll go to local Veterans Affairs offices and look for individuals who are missing a limb or have PTSD but are still functional,” said Branch. “Employment specialists find the population we’re looking for. We’d like to make the IT extension not just in Seaside or Alexandria, but also employ people elsewhere for a national program.”

The organization has produced countless testimonials and success stories. For people who want a productive identity and for those who no longer wish to be defined by their limitations, GCE provides an opportunity for hope and employment as means of restoration.

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Haas Center: Q&A with

Rod Lewis

By Josh Newby Photos courtesy of UWF

Rod Lewis, director of the Haas Center for Business, Research and Economic Development for more than two years, received a Ph.D in political science from Florida State University in 2006, and joined the Center shortly thereafter. He served as director of research for Kile Consulting, a Tallahassee-based firm, as a Leroy Collins fellow in the Department of Political Science and successively as a research associate in the Interdisciplinary Social Sciences during his graduate career at FSU. Before returning as the Haas Center director, he was president of Discover Analytics, Inc. He has participated in numerous local, regional, and state-wide projects with the Center including industry cluster analyses, workforce competency studies, and economic impact analyses. He maintains an active research agenda in his home discipline of political science and routinely collaborates with colleagues on experimental and empirical research in political psychology, political behavior and representation.

The Haas Center is a research and consulting arm of the University of West Florida that engages in applied research and strategy development in economics and across the social sciences. The Haas Center has played a prominent role in economic development efforts across the Northwest Florida region and around the state for the past two decades. The Haas Center is independently funded solely by project revenue that the staff generates.

The changing economic landscape in both Pensacola and the nation is causing many to wonder if the outlook since the recession of 2007 is the new normal. Sequestration and other federal budgetary concerns have only aggravated fears of uncertain times. Business Climate spoke with Lewis about these and other topics, and he revealed to us that things are looking up for this region and shared with us key strategies that businesses and local government can implement to make the transition to a more wholesome economy possible.

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2013. The education sector and the finance and insurance sector have posted modest gains, along with the utility industry. The shape of economic growth in Escambia County, however, has changed substantially.

“Labor force” is defined as those who are employed civilians plus those who are unemployed civilians.

“Employment” is defined as the number of workers, temporary, parttime or full-time.

BC: How has Pensacola adapted and changed since the recession?

RL: The Great Recession fundamentally changed the Pensacola economy in much the same way that it reshaped economies around the US, particularly the relationship between labor and economic output. For example, at the peak of the pre-recession economy, in 2006, Escambia County gross product (the total value added of all goods and services produced in the Escambia economy) stood at $12.53 billion (2005 US dollars). By 2012, the estimated gross product for Escambia County was $12.72 billion (2005 US dollars). However, employment, which peaked in 2007 at 183,000, was estimated at 172,000 in 2012. So, the economy is slightly more productive in 2012 than it was in 2006, but the workforce was only about 94 percent of the pre-recession peak.

The recovery in output, or gross product, has not necessarily led to a recovery in employment, even though the unemployment rate has declined dramatically from its peak. Put simply, we have learned to do slightly more with a much smaller workforce.

If you look at the key sectors that were growing prior to 2008, these included nearly all sectors with real estate, finance and insurance, health care and administrative support and waste management leading the way. Government was declining, construction was holding steady (or growing slightly) and manufacturing was shedding jobs. These were the only sectors that were not essentially “booming” between 2001 and 2008. The recession, and its wake, changed this. Healthcare continued to grow and the tourism industry grew healthily as well. Construction declined dramatically, shedding more than 3,200 jobs, manufacturing shed 500 jobs, wholesale trade shed 1,000 jobs, information shed 1,200 jobs and administrative support and waste management shed 1,000 jobs. Other sectors saw declines as well.

On the whole, post-recession growth has been fueled largely by tourism and healthcare – the only two major economic sectors to add more than 1,000 jobs in Escambia County between 2008 and

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BC: Do you believe that businesses in the community have done a good job adjusting to what many are calling “the new norm?”

RL: It is, I think, difficult to understand exactly what the “new norm” is, but I suspect that at the moment, “norm” is really undefined. I also suspect that there really is nothing normal about it. What we can definitely say is that is certainly a much less labor intensive economy in the sense that, across the economy, businesses learned that the key to survival was increasing worker productivity by essentially doing more with less. Thus the key lesson of the Great Recession, I think, was that it is indeed possible, even in an efficient economy, for businesses to do more with less.

If you look towards the future, we see that Pensacola is part of one of “America’s Growth Corridors” which was identified as “The Key to National Revival” by the Manhattan Institute. The “Third Coast” is the stretch of counties along the Gulf of Mexico, which ranges from Texas through to Florida and joins the Great Plains, the Intermountain West and the Southeast Manufacturing Belt as one of America’s future growth corridors. Moreover, the broader Northwest Florida Region is forecast to grow over the next decade at a faster rate than either the rest of Florida or the US. So, I’d say that we are doing a relatively good job adjusting to changing economic times and the models indicate that this forecast will continue.

BC: With sequestration and its effect on the local military, arguably the biggest economic driver of the region, what can we as a city do to remain sustainable?

RL: First, I think we must realize that this will not blow over. Longterm federal budget issues are here and they are here to stay. The defense budget is a huge target; it is the largest chunk of discretionary spending. Balanced budgets do not happen without cuts in defense spending or in entitlements. Therefore, I do not believe that the underpinnings of sequestration are near or medium term in nature because I seriously doubt the ability to successfully reform entitlements in the current climate. Thus the defense budget will remain a target or large deficits will persist.

Second, I think it’s important that we realize that the one and only local approach to sustainability that will work in the long term is diversification of the economy beyond the traditional sectors of defense and tourism. If we do not continue to diversify in a sustainable fashion, then long-term stability is out of reach.

BC: Continuing its current trend and assuming all BP Restore projects get funded, what do you believe Pensacola will be like in four to five years?

RL: I think that we will look back, a decade hence, and see a Pensacola that has transformed itself in the wake of a disaster outside of its control. BP Restore dollars will flow, along with many other BP funding “pots,” into the region. We can use these to build infrastructure, diversify the economy, continue to grow the tourism market and ensure long-term growth and environmental sustainability. I hope that we make sound investments, that we think regionally and that we think long-term about diversification and sustainability. I think that the creation of Triumph Gulf Coast (SB 1024) to receive the recovery of sales tax funds was a stroke of genius because it contemplates a regional approach, focuses on workforce and economic development along with infrastructure improvements and has a very long time horizon. It charts the course that we should have been traveling all along. I think these opportunities, when combined with local, in-county near and medium-term efforts, ensure a bright future for the region if we execute correctly.

Our recent setbacks were unfortunate, but they have given us the opportunity to become even greater than we were, and that

depends on whether we will learn from our mistakes or not. This area has potentially billions of dollars coming its way very soon, and we can use that to recreate the old economy, or to develop into something more diverse, into something greater. The question is, did we learn from our mistakes?

BC: What can we do to maximize our opportunities, on both a small business and regional infrastructure front?

RL: We know the formula for this: minimize the regulatory and tax burden to the extent possible, ensure that necessary regulations are easy to understand, ensure that permits are easy to obtain, ensure that the infrastructure in the region is favorable for the businesses that you are attempting to recruit and ensure that existing businesses are supported in the market. This includes everything from creating and maintaining a modern transportation infrastructure (airports, ports, roads, bridges) to ensuring ready and easy access to efficient and cost effective water and sewer systems. I think it is also very critical that we understand that the workforce is part of the infrastructure as well. The future belongs to the creative individuals who will shape it. We want those individuals to shape the future from our region. We need to ensure that our region is attractive to the best and brightest talent in the nation. We also need to ensure that our local colleges and universities have the resources and talent necessary to participate in shaping the future and also the resources necessary to develop the best and the brightest talent right here at home.

BC: We hear a lot of differing opinions and Northwest Florida has faced three big challenges lately (recession, BP, sequestration).

How do you believe those have affected us and how can we continue to minimize the effects?

RL: I think this is essentially correct. The recession will sort itself out. When left alone, markets tend to be able to do that.

Northwest Florida’s “economic pony” essentially knows two tricks: tourism and defense. Growth in everything from manufacturing to construction essentially depends on a healthy tourism market and the in-flow of defense dollars through transfer payments (to disabled and/or retired veterans), salaries to civilian and military personnel and procurement. The recession and the effects of sequestration should have taught us that the defense industry is vulnerable and it remains vulnerable. The oil spill showed us a) the volatility of the tourism market to random catastrophic events, and b) the resiliency of that market in the medium and long term.

There is little reason to suspect that we have effectively been able to minimize the effects of sequestration. This is largely because we haven’t yet fully realized those effects. If we look at the long-term budget issues in the US, the potential impacts of new government programs such as healthcare reform and the long-term sustainability of popular entitlements such as Social Security, Medicare and Medicaid it is clear that we will have to reduce spending somewhere or face out-of-control deficits. Defense spending accounts for roughly one-half of the nation’s entire discretionary spending budget. If one is looking to trim, then it is clear that defense spending is the most likely place to start. Balanced budgets cannot be achieved without cutting spending in at least one of these categories: Social Security, Medicare, Medicaid or Defense. If you eliminated the rest of the entire federal budget beyond these four categories you will not balance it. Therefore, defense spending will come down. We have several options locally. First, we must actively seek to protect the missions that we have. Second, we must actively compete for additional missions for which we are and can be competitive.

Third, we must aggressively diversify the economy beyond the defense industry by connecting our key defense manufacturers and contractors with other non-defense related markets. Fourth, we must think regionally. We are simply not large enough, or important enough as individual counties to mount an aggressive challenge in a competitive economy – at least not beyond tourism.

Taken together, however, all of Northwest Florida is. Therefore, think regionally.

“Unemployment” is defined as number of people who do not have a job, have actively looked for work in the prior four weeks, and are currently available for work.

“Unemployment rate” is defined as the ratio of unemployed to the civilian labor force, expressed as a percent.

With regards to the tourism market, the rebound in the wake of the spill results largely from the influx of advertising, which was largely funded by BP in the wake of the spill. Cohesive, regional marketing campaigns will be necessary to sustain this growth. If we fail to do this, then the growth that the region has experienced in the wake of the spill will plateau and may well decline.

BC: In your opinion, what is the best “bang for your buck” investment that we can make to ensure a viable future?

Education, business, government, military, etc.?

RL: A highly skilled workforce – this is key to future growth and development. If you look at the restructuring of the economy over the past several decades, we have seen employment divide itself into four basic categories: Non-Routine Cognitive (management, finance, legal, high-skill), Routine Cognitive (sales-related, office and administrative support, middle skill), Non-routine manual (healthcare support, food prep, janitorial, low-skill), and routine manual (production, construction, material moving). Employment growth has occurred over the last three decades, in non-routine cognitive categories and non-routine manual categories – in short, occupations that cannot be mechanized or automated. You need lawyers, doctors and nurses because it’s hands-on. You need kitchen workers and hotel maids because it’s hands-on. Assembly line workers, on the other hand, are increasingly replaced by robots that can do the job more effectively and efficiently and save considerable overhead in the process. Future economic growth will, I believe, hinge on a region’s ability to attract, retain and create high-end talent to lead future innovation. Regions that have this will prosper. Regions that do not or cannot attract and/or grow talent will not fare as well. Workforce investment, from skilled technicians to the creation of research scientists - this is the key driver of the future.

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IT TIPS

The Importance of a Secure Network

By Mike White

Have you ever lost an hour of work on your computer?

Now imagine if you lost days or weeks of work – or imagine losing your client database, financial records, and all of the work files your company has ever produced or compiled.

Imagine what would happen if your network went down for days, where you couldn’t access e-mail or the information on your PC. How frustrating would that be?

Or, what if a major storm, flood, or fire destroyed your office and all of your files? Or if a virus wiped out your server…do you have an emergency recovery plan in place that you feel confident in?

Many small business owners tend to ignore or forget about taking steps to secure their company’s network from these types of catastrophes until disaster strikes. By then it’s too late and the damage is done.

But That Could Never Happen To Me! (And Other Lies Business Owners Like To Believe About Their Businesses…)

After working with a number of small and mid-size businesses in Escambia and Santa Rosa counties, I found that six out of 10 businesses will experience some type of major network or technology disaster that will end up costing them between $9,000 and $60,000 in repairs and restoration costs on average.

That doesn’t even include lost productivity, sales, and client goodwill that can be damaged when a company can’t operate or fulfill its promises due to technical problems.

Most Computer Problems Are Hidden And Strike Without Warning, And At The Most Inconvenient Times Hardware failure, viruses, spyware, and other problems usually aren’t detectable until they strike by causing a server to go down, data to be lost, or some other catastrophe. Viruses and spyware are particularly sneaky because they are designed to hide themselves while they do their damage. For example, spyware can secretly transmit information about you and your company to an outsider without being visible to you.

Even if your network was recently audited by a computer consultant, viruses, spyware and hackers are constantly attacking your network (that is why we constantly monitor our clients’ networks because you never know when a new virus is going to strike).

Unfortunately, most computer consultants only offer “break-fix” services. That basically means when something breaks or stops working, they come in and fix it. While this may seem like a good setup for you, it actually leaves you wide open to a number of threats, problems, and other disasters because it is reactive rather than proactive maintenance.

Take a look at these statistics: Companies experience an average of 501 hours of network downtime every year, and the overall downtime costs an average of 3.6 percent of annual revenue. (Source: The Costs of Enterprise Downtime, Infonetics Research) 93 percent of companies that lost their data center for 10 days or

more due to a disaster filed for bankruptcy within one year of the disaster, and 50 percent filed for bankruptcy immediately. (Source: National Archives & Records Administration in Washington.)

20 percent of small to medium businesses will suffer a major disaster causing loss of critical data every five years. (Source: Richmond House Group) This year, 40 percent of small to medium businesses that manage their own network and use the Internet for more than e-mail will have their network accessed by a hacker, and more than 50 percent won’t even know they were attacked. (Source: Gartner Group) Of those companies participating in the Contingency Planning & Management Cost of Downtime Survey: 46 percent said each hour of downtime would cost their companies up to $50,000, 28 percent said each hour would cost between $51,000 and $250,000, 18 percent said each hour would cost between $251,000 and $1 million, and 8 percent said it would cost their companies more than $1 million per hour.

(Source: Cost of Downtime Survey Results, 2001.)

What These Failures Are REALLY Costing Your Business Even if you don’t factor in the soft costs of lost productivity, there is a hard cost of repairing and restoring your network. Most major network repairs will require a minimum of four to eight hours on average to get the network back up and running. Plus, most consultants cannot get on-site to resolve the problem for 24 to 48 hours. That means your network could be down for one to two days.

Since the average computer consultant charges over $100 per hour plus a trip fee and a surcharge if it’s an emergency, the average cost of these repairs is $600 to $1,000; and that doesn’t even include any software or hardware costs that may also be required. Over a year, this results in $1,800 to $3,000 in costs without even considering hardware and software costs, or other soft costs of lost sales and work hours.

What’s most exasperating about this situation is that 100 percent of these disasters and restoration costs could have been completely avoided or greatly mitigated easily and inexpensively with a little planning and proactive maintenance.

Why Small Business Are Especially Vulnerable To These Disasters With the constant changes to technology and the daily development of new threats, it takes a highly-trained technician to maintain even a simple three to five person network; however, the cost of hiring a fulltime, experienced technician is just not feasible for most small business owners.

In an attempt to save money, most try to do their own in-house IT support and designate the person with the most technical expertise as the part-time IT manager. This never works out because this makeshift IT person has another full-time job to do and is usually not skilled enough to properly support an entire computer network anyway.

This inevitably results in a network that is ill-maintained and unstable. It also means that the backups, virus updates, and security patches are not getting timely updates, giving a false sense of security.

Something to think about.

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AROUND THE REGION business news bits you should know Gulf Breeze $6.2M community center overhaul completed When Hurricane Ivan destroyed the city’s fishing bridge on Pensacola Bay in 2004, Gulf Breeze officials began casting about for options for using the $6.2 million replacement grant.

The Federal Emergency Management Agency also was eager for local governments to find alternate projects rather than rebuild structures that could be vulnerable to future storms. In June, one funded project officially opened: a dramatically upgraded Gulf Breeze Community Center, with an additional 24,000 square feet of multi-use space, new tennis courts, new indoor gymnasium, conference rooms, multi-purpose rooms, expanded parking and new landscaping. The $6.2 million project also included the installation of a 128-ton geothermal system to heat and cool the now-44,000 sq. ft.

center, along with other energy efficient insulation and lighting features.

Pensacola Bay Center gets a digital facelift Pensacola Bay Center, managed by SMG, recently completed an install of 26 digital televisions on all three levels. “Digital signage in a facility like Pensacola Bay Center is not only expected, but an important marketing tool and revenue stream. Most facilities our size have many digital advertising options. This will help us stay competitive and is a critical step in our rebranding process,” stated Casey Sparks, assistant general manager and director of sales and marketing.

Pensacola Bay Center partnered with the local firm, Electronic Displays Network (EDN), whose clients include Pensacola Beach Chamber of Commerce, Downtown YMCA and Anytime Fitness. EDN is the region’s only full service digital signage company capable of handling any digital signage project from one screen to a hundred.

Perdido Key Area Chamber of Commerce’s Mary Ellen O’Hare recognized by the Better Business Bureau Foundation of Northwest Florida The Perdido Key Area Chamber of Commerce is proud to announce that Mary Ellen O’Hare, information specialist, has received the Better Business Bureau Foundation of Northwest Florida’s 2013 Customer Service Excellence Award for Escambia and Santa Rosa counties.

O’Hare, who has been employed by the Perdido Key Area Chamber of Commerce since April 2010, is responsible for carrying out the chamber’s day-to-day administrative services, as well as for providing visitor information services at the Perdido Key Visitor Center. She is one of three full-time employees.

Pen Air Federal Credit Union receives 5-Star Superior Rating BauerFinancial, Inc. proudly recognizes Pen Air Federal Credit

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Union as a 5-Star Rated Superior credit union for the 90th consecutive quarter. This 5-Star Superior rating indicates that Pen Air FCU is one of the strongest credit unions in the nation. Having earned and sustained this 5-Star rating for more than 20 years merits an even more elite distinction of being a “Sustained Superiority Credit Union.” To receive a Bauer 5-Star rating, a credit union must operate at the highest level of strength and performance with impressive capital gains and an enviable loan portfolio with negligible levels of delinquent loans.

Only five percent of the nation’s federally-insured credit unions have earned top ratings for this length of time and with such consistency.

Greater Pensacola Chamber wins national communications award The Greater Pensacola Chamber, a business association devoted to promoting and improving the Pensacola Region through economic improvement, community involvement and workforce development, was recently honored with a national communications award from the American Chamber of Commerce Executives (ACCE) for its newly redesigned website.

BBB Foundation announces “Torch Award for Marketplace Ethics” winners The BBB Foundation serving Northwest Florida is proud to announce the recipients of the eighth annual Torch Award for Marketplace Ethics program from its District I area: Escambia and Santa Rosa counties. One-10 employees category: Tires Plus, Gulf Breeze; 11-49 employees category: Cronin Construction, Inc.; 50+ employees category: Connell and Manziek Realty, Inc.; charity category: United Way of Escambia County; honorable mention: Doodlebuggers Service Network; customer service excellence: Mary Ellen O’Hare, Perdido Bay Chamber of Commerce.

SBDC workshops schedule The Small Business Development

PEOPLE

Center offers the following workshops, to be held at 9999 University Pkwy.: "Starting a Business" at 9 am on July 25 covers the essentials of getting started in business, including idea evaluation, legal business structures, regulations, licensing, taxation, finding capital and more; and "Power of Networking" at noon on Aug. 7, at which participants will learn how to maximize networking efforts and build a network that will take your business to new heights.

UWF Masters in Public Health receives additional accolade The University of West Florida (UWF) Masters in Public Health (MPH) program was recently ranked No. 4 “Best Buy” in the nation, by GetEducated.com. “Best Buy” rankings highlight the most affordable online master’s for public health professionals and managers seeking a high quality, low-cost education online, all regionally accredited. The ranking list is based on a national, comprehensive survey of 22 public health graduate schools (regionally accredited) that offer 31 different online MPH degrees.

Rosemary Beach hotel nears completion Major construction on the 55-room luxury hotel The Pearl is nearly complete. The main portion of the hotel and its room is finished. The hotel should open around July 20 and employ about 85 full- and part-time workers.

Chamber to host four-week seminar series program The Greater Pensacola Chamber will be hosting a fourweek-long session of its signature Seminar Series, which will feature local experts as they discuss the importance of online marketing and how it can impact small businesses. The program will take place on Wednesdays in July – the 10th, 17th, 24th and 31st – from 11:30 am to 1 pm, at the Greater Pensacola Chamber, 117 W. Garden St. The cost for Greater Pensacola Chamber members is $15, and the cost for the general public is $25 with limited seating available.

US economy shows signs of improvement with employment numbers Employers added 195,000 jobs in June, a promising sign for the second half of the year. The unemployment rate remained stagnant, though, as more people began looking for work, a positive sign of renewed hope in the economy. Average hourly pay in June also increased by 10 cents to $24.01. Over the past year, is has risen 2.2 percent. Tourism, retail, and health care appear to be the big winners in this current economy, according to the Labor Department. Auto sales are also at their highest point since before the recession.

ON THE

MOVE

Veteran Pensacola banker David G. Cooper joins Hancock Bank; Sherrill named Commercial Banker Seasoned West Florida banker David G. Cooper has joined Hancock Bank as senior vice president, Commercial Banking.

Additionally, the bank has promoted Charles “Charlie” Sherrill, III, to Commercial Banker. Together, these appointments further enhance the commercial banking expertise available to Hancock Bank business clients throughout the region.

Blue Marlin Realty announces new team member, Jordan Dennis Los Angeles native and active marine, Jordan Dennis joins the team at Blue Marlin Realty Group as a realtor. With three years of real estate experience in the California area and nine months in Florida, Dennis joins the team at Blue Marlin after relocating to the area with his family a year ago. Dennis, his wife and two children moved to the Destin area in February 2012 with the Marine Corps and currently resides on Eglin Air Force Base.

Baptist Health Care facilities manager receives national credentials Baptist Health Care Facilities Manager for Baptist Medical Park – Nine Mile, Lamar Bragg, received the national Certified Health Care Facility Manager (CHFM) credentials from the American Hospital Association. To receive the CHFM title Lamar was tested on five major health care facility management areas including: maintenance, code compliance, planning and design, construction, finance management and administration. The CHFM is an extensive, written exam that requires months of study and preparation. Less than five percent of all health care facility managers in the United States achieve CHFM designation.

IMS ExpertServices announces new employees, promotions IMS ExpertServices announces the addition of two new associates, Alan Ritchie and Amy Nelson, to the growing IMS team. Current team members, Tina Grenier and Michael Ellis, have both recently been promoted within the Pensacola office.

Brandi Welk joins Council on Aging of West Florida as development director Brandi Welk has joined Council on Aging of West Florida as Development Director. Welk, a native of Pensacola, has local experience in fundraising and special events. As development director, Welk is responsible for charitable giving, outreach efforts to increase awareness of private-pay programs, and major special events. Welk earned a Bachelor of Arts degree in Public Relations from the University of West Florida. While attending the University of West Florida, she completed an internship with WEAR ABC3 in the news and promotion departments. Welk serves on the board of directors of First Book and is a member of the Florida Public Relations Association.

To be included in Around the Region or People on the Move, email your news releases and business announcements to josh@ballingerpublishing.com.

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