2016 Okaloosa & Walton County Business Journal

SPECIAL REPORT OKALOOSA & WALTON COUNTIES

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SPECIAL REPORT OKALOOSA & WALTON COUNTIES

A Gem Among Airports Bob Sikes Airport is making the panhandle economy take off

by JASON DEHART

A

irports are a vital part of the Florida Panhandle’s economy, and Bob Sikes Airport is no different.

Nestled near Crestview inside one of the busiest aviation zones in the state, the airfield sports an 8,000-foot runway, an instrument landing system and hundreds of acres that are ready for development. Eight aerospace companies call Bob Sikes Airport home, and more than 2,700 people work there with a total payroll of $108,208,000.

But there’s more to come as Okaloosa County invests millions of dollars in hopes of landing more business opportunities.

Mike Stenson, deputy director of Okaloosa County Airports, said recently that the airport has made, and continues to make, significant improvements to maintain a competitive economic edge. He even describes it as a brand-new airport with plenty to offer potential tenants. The runway, taxiways and other connectors were all recently resurfaced, and Emerald Coast Aviation — the airport’s operator — recently completed a new terminal building.

“It’s a great location for any company looking to grow,” Stenson said. “We’ve got a world-class airfield in the center of the aerospace corridor for the region. You will be hard-pressed to find something like it 44

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A 747 taxis along a runway at Bob Sikes Airport near Crestview. Recent improvements at the airport have included resurfaced runways and taxiways and a new terminal.

with the size and capability we have with the space available. We’ve worked close with the Florida DOT and FAA to secure millions of dollars in grant funding to build a world-class airport suitable for any aerospace company looking to grow.”

Indeed, there is a lot of elbow room at the airport. Only about 500 of the facility’s 1,100 acres have been developed. In addition, some available land is already site-certified and ready to go. At the nearby Okaloosa

ON THE AIRFIELD » L3 CRESTVIEW AEROSPACE Okaloosa County’s largest manufacturer, specializing in aerostructures » LOCKHEED MARTIN C-130 conversions and modifications » EMERALD COAST AVIATION Fixed-base operator providing refueling and other services » SUNSHINE AERO Flight tests of military payloads for calibration » QWEST AIR PARTS “Parts out” and recycles retired aircraft » CAROLINA AERO PREP School providing airframe and power plant certifications » TEPPER AVIATION Flight tests » VERTOL SYSTEMS Helicopter flight training

OKALOOSA INDUSTRIAL AIR PARK » BAY STATE CABLE TIES Manufacturer of cable “zip ties” for a wide range of customers

PHOTOS COURTESY OF OKALOOSA COUNTY

» ASURION Consumer warranty call center » CUSTOM PRODUCTION Metal component manufacturer for a range of industries » COPY PRODUCTS COMPANY Business equipment leasing and service

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SPECIAL REPORT OKALOOSA & WALTON COUNTIES

County Industrial Air Park, for example, 135 acres were recently classified as “shovel-ready” through Gulf Power’s Florida First Sites site certification program, according to Nathan Sparks, executive director of the Okaloosa Economic Development Council.

“This prestigious designation was awarded in March 2015 by McCallum Sweeney Consulting, a premier sitelocation advisory firm,” Sparks said. “Achieving the certification required the completion of exhaustive due-diligence studies, including wetlands surveys, soil studies, utility verifications and cultural-resource studies. Now these parcels provide prospective purchasers with the certainty that development can occur quickly and with minimal front-end expense.”

Stenson said that, all told, “several hundred acres” at the airport have been site-certified.

“It is one of the few airport sites that is essentially shovelready and pre-permitted,” he 46

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said. “The stormwater master plan is already completed, so any company looking to relocate wouldn’t have to go through that process. It’s already been done. If a company comes in to construct hangars, they would literally cut months of time off the schedule.”

Meanwhile, one project in particular could provide an even greater incentive for businesses to set up shop. Fairchild Road, currently a clay road leading into the airport, will soon be paved. The new, industrial-grade road will be called Foy Shaw Industrial Boulevard and will provide a muchimproved link to U.S. Highway 90. Stenson said the new road ought to be an attractive feature for businesses looking to locate there, as well as provide a better commute. Officials said in April that the contract for the paving has been awarded and the road should be paved in six months.

“It will be a dramatic upgrade for people transitioning to and from the airport,” Stenson said.

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BY THE NUMBERS Direct impacts from airport tenants/ businesses and construction:

$174,324,000 Indirect impacts from visitors who arrive by general aviation aircraft:

$1,853,000 Multiplier impacts:

$117,516,000 Total output:

$293,693,000 Source: Florida Statewide Aviation Economic Impact Study, August 2014

Named in honor of U.S. Rep. Bob Sikes, the airport opened in the early 1960s, and Stenson said it was used as a repair station for battle-damaged aircraft during the Vietnam War. The military connection still figures prominently in the work done there in flight testing and aircraft

conversion and modification.

One such company, L-3 Crestview Aerospace, has been very happy there.

“When the Crestview Aerospace facility at Bob Sikes Airport was established in 1964

by Fairchild, it was primarily used for Air Force maintenance and modification,” said Woody Tignor, vice president and general manager of the company. “L-3 purchased the facility in 2006, and it has grown and diversified over the decades to include a substantial volume of manufacturing and fabrication work. Today, we create a number of aerostructures, assemblies and parts for aircraft manufacturers, while still performing the aircraft modification that has always been done at the L-3 Crestview Aerospace facility.”

Tignor said the company has benefited greatly from the support shown by Okaloosa County.

“The workforce in Okaloosa County is very talented, and that’s a result of our proximity to military facilities, as well as a commitment by local leaders to providing training opportunities for potential and current employees,” he said. “There has always been tremendous support in this community for our customers and work — including local, regional and state assistance for growth and workforce development.

There is a keen interest in this community to ensure our military and the aerospace community are supported.”

PHOTO COURTESY OF OKALOOSA COUNTY

This aerial view of Bob Sikes Airport is dominated by the facility’s 8,000-foot runway. The airport, which originally served as an Air Force maintenance station, is now home to eight aerospace companies.

We’re dedicated to creating jobs for families and veterans in North Florida, and I am grateful when new employees excel in their positions – helping us, as a business, to move forward.

MICHELLE RASBECK Director of Administration, Certified Manufacturing Holt, Florida

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SPECIAL REPORT OKALOOSA & WALTON COUNTIES

Collaborating to Succeed Technology companies work cooperatively to spur Okaloosa’s economic development

by LINDA KLEINDIENST

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PHOTO COURTESY OF OKALOOSA EDC

ith more than 156 technologybased businesses per 100,000 population, Okaloosa County can rightly claim the title of “technology hub” of Northwest Florida.

Because of its location, nestled in the midst of several major Northwest Florida military installations that include Eglin Air Force Base and its research lab, Okaloosa has become a magnet for companies that are aerospace and defense-related. And to help that sector of the local economy grow, representatives from technology, engineering and manufacturing companies meet regularly to collaborate, share expertise and advice, and act as the premier business advocate for industries that focus on science, technology, engineering and math (STEM).

The Technology, Coast Manufacturing and Engineering Network, otherwise known as TeCMEN, was established in 1989 and two years later became part of the Economic Development Council of Okaloosa County.

A top priority is getting local companies to do business with each other.

“The idea was to have companies getting to know each other and becoming familiar with each other’s capabilities,” said Jim Breitenfeld, the TeCMEN manager. “They meet once a month and discuss issues that include collaboration on getting contracts. They talk about

their future needs. The research lab talks about its workforce needs and what opportunities are coming up for future (Department of Defense) contracts. And the larger companies are interested in developing their supply chain.

“We spend a lot of time giving the companies an opportunity to explain their capabilities because it’s always more efficient and cheaper to do business next door.”

There’s a high degree of community cooperation, he added, “because we have to band together to be able to compete in the bigger world.”

Today there are 36 corporate members,

including Fortune 500, midsized and small local businesses that include the likes of Lockheed Martin Corporation, Boeing Company and General Dynamics along with local companies like Fort Walton Machining, Bay State Cable Ties and Sunshine Aero Industries.

TeCMEN member companies represent every major manufacturing and engineering discipline necessary to support requirements of both the military missions and the civilian community including: aerospace and aviation; micro-electronics; biometric technology; precision machining; metal fabrication; and information technology.

Companies that participate must be a member of the EDC. Another 18 organizations such as Eglin Research Lab, Gulf Power, the University of West Florida and Enterprise Florida are listed as partners.

“We have members that provide support services,” explains Wayne Bernheisel of Cerified Manufacturing Inc., who is TeCMEN’s chairman. “They want to understand from the small and large businesses what they need, what type of workers do they need and what training

Companies that are the backbone of the manufacturing and engineering sector of Okaloosa’s economy collaborate to boost each other’s business. Shown here is an example of the area’s clean manufacturing, Fort Walton Machining, where a worker is machining a drill head for the oil and gas industry.

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“Any time you can put 30 to 40 smart, successful folks in a room together month after month, greatness can grow.”— Jim Breitenfeld, the TeCMEN manager do they need. And we’re reaching into primary and secondary education to educate students on why manufacturing can be fun, to get them understanding that we need workers in all sorts of technical vocations.”

A big emphasis has been placed on helping manufacturing and engineering companies upgrade the skills of their employees with training and certification programs.

“For smaller companies, it can be costly to send people for training for certain industry certifications,” Breitenfeld says.

“If we were able to provide that training locally, it would be more efficient and effective. And companies have control

over what is provided, instead of going to a cookie-cutter conference.”

TeCMEN’s influence in the county has helped lead to free certification and training programs that are specifically tailored to local business needs and offered by UWF on the Fort Walton Beach campus. Up to nine courses — based on the annual needs assessment filled out by companies — are made available each year.

“TeCMEN provides a unique opportunity for the business and education communities to come together to identify programs and projects they can collaborate on. That’s a huge piece of what we do,” Breitenfeld says of the unique program that breaks down silos and fosters communication for

the betterment of the community. “It also allows the manufacturing community to sit around a table and explain their future needs. You’ll have the research lab talking about its workforce needs and companies looking for future contract opportunities, especially with the military.

“Any time you can put 30 to 40 smart, successful folks in a room together month after month, greatness can grow.”

By building personal relationships during the monthly meetings, small local companies in particular have joined forces to bid on and secure larger military and aerospace contracts.

Says Breitenfeld, “If you put people in situations where there are opportunities, smart people will find opportunities.”

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SPECIAL REPORT OKALOOSA & WALTON COUNTIES

The beach at Inlet Beach. It is among 16 communities that lie along the 26 miles of Gulf front in South Walton, where tourism is a growth industry. Condos dominate accommodations, outnumbering hotel rooms by more than 11 to 1.

A Healthy New Normal For Walton County’s tourism industry, growth has emerged as a constant

by LINDA KLEINDIENST

PHOTO COURTESY OF VISIT SOUTH WALTON

T

ourism and hospitality are the driving forces in Walton County’s economy, providing 19,500 jobs for area residents and having a $2.8 billion direct economic impact.

And they keep getting stronger every year.

“Since Oct. 1, in the first six months of our fiscal year, we were up 14 percent in short term accommodation rentals over the prior year. That’s pretty considerable since we already had been doing very, very well,” says Jon Ervin, director of Marketing and Communications for the Walton Council Tourist Development Council. “And our numbers for March were up 18.92 percent in spending on those rentals.”

Between October 2014 and October 2015, the county welcomed more than 3.2 million visitors. They spent $495 million on accommodations — $202 million of that in June and July alone.

Walton County tourism has grown by double digits for each of the past five years, making it the “new norm,” Ervin says. “South Walton is particularly fortunate. We have a product that people value greatly. Once folks come here, they enjoy it and want to return.

The loyalty is there and the repeat is there.”

Indeed, 96 percent of the visiting tourists indicate their intent to return and surveys show that about 80 percent actually do come back.

South Walton lays claim to 26 miles of the sugar sand beaches of the Gulf of Mexico, and 16 distinct neighborhoods are located along that beachfront. There are only approximately 1,000 traditional hotel rooms, representing about 10 percent of the 11,000-plus accommodations. The remaining 10,000 are considered nontraditional, such as condo and private home rentals.

Close to one-in-four working residents of the county, or 23.4 percent of the workforce, are employed by the tourism and hospitality industry. But beside the 19,500 jobs directly related to tourism — three of the county’s top employers are resorts (Sandestin Golf 850 Business Magazine

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and Beach Resort, Hilton Sandestin Golf Resort and Spa, and ResortQuest) — close to another 7,000 “indirect” jobs, such as landscaping, are tied to the industry. And the busy time is no

HERE ARE SOME OF THE MORE RECENT HONORS EARNED BY WALTON COUNTY: ▪ Th e Pearl, Top 20 Hotels in Florida, Readers Choice Award (2015) — Conde Naste ▪ South Walton, 2015 “Hassle Free Beach” — USA Today ▪ Seaside, Best Family Beach 2015 — Travel Channel ▪ Alys Beach, Perfect Beach Town — Southern Living ▪ Seaside, Best Beach on Earth — Travel+Leisure ▪ Hilton Sandestin Beach Golf Resort and Spa, Top 100 most popular meeting ▪ Rosemary Beach, 2015 Best Places to Travel — Money.com resorts (2015) — Cvent

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PHOTO COURTESY OF VISIT SOUTH WALTON

Resort-rich Sandestin is home to South Walton’s largest employers.

Many formerly summer-only jobs are becoming longer in duration given the success of the area’s shoulder seasons.

longer just the summer. Now the spring and shoulder seasons are growing in popularity, in part because of the string of annual festivals that include the arts, food and wine. As an example, the South Walton Wine and Food Festival in May brought in more than 4,000 people — a record crowd.

“If you go back 10 or 15 years, you could be a little lonely in South Walton after Labor Day,” Ervin adds. “But that’s not the case any more. Now it’s strong into October and November. Luckily we’ve become known for more that just our sugar-sand beach.”

Walton County’s growth in the number of visitors that come each year has not grown dramatically — a 1.5 percent increase from 2014 to 2015. But the amount of money visitors spend has gone up by nearly 12 percent.

“It isn’t about head count,” Ervin said. “It’s really about spending.”

To achieve that higher level of spending, the county has very targeted marketing aimed at households with incomes of $175,000 or higher. They also seek out “look alike” customers — individuals and families that mirror known visitors who are loyal to the region.

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SPECIAL REPORT OKALOOSA & WALTON COUNTIES

OKALOOSA COUNTY

By the Numbers POPULATION POPULATION (2015) — 200,895 MEDIAN AGE — 35.83

LABOR FORCE COLLEGE DEGREE — 41.12% HIGH SCHOOL DEGREE OR SOME COLLEGE — 43.89% WHITE COLLAR WORKERS — 35% BLUE COLLAR WORKERS — 64%

BUDGETS HOUSEHOLD EXPENDITURES (AVERAGE) — $54,637 HOUSEHOLD INCOME (MEDIAN) — $54,027

MILITARY Okaloosa County is home to Eglin Air Force base, the largest installation in the Department of Defense, Hurlburt Field and more than 300 defense related businesses, the highest concentration in the state. Defense-related spending accounts for 73 percent of the county’s economic activity.

In March, Okaloosa was one of 10 communities from across the nation to be designated as “Great American Defense Communities” at the National Association of Defense Communities Innovation Forum. The designation recognizes areas for providing unwavering support to service members and military families.

Eglin, which is the world’s largest Air Force installation, hosts the headquarters of the Air Force Special Operations Command (AFSOC), the 96th Test Wing and the 33rd Fighter Wing (F-35 graduate flying and maintenance training wing) among others. With research and testing at the forefront of activities taking place at Eglin, numerous technology and defense contractors have located here – including renowned powerhouses Boeing, BAE Systems, Lockheed Martin and L3 Communications.

Eglin covers 724 square miles and encompasses almost half of Okaloosa County’s land mass.w

10 TOP EMPLOYERS/ NUMBER OF EMPLOYEES

10 TOP MANUFACTURERS/ NUMBER OF EMPLOYEES

FORT WALTON BEACH MEDICAL CENTER — 1,000+

L-3 CRESTVIEW AEROSPACE — 600+

TROY UNIVERSITY UNIVERSITY OF ARKANSAS

JACOBS TECHNOLOGY — 1,000+

BAE — 380

EMBRY RIDDLE AERONAUTICAL UNIVERSITY

UNIVERSITY OF WEST FLORIDA UNIVERSITY OF FLORIDA RESEARCH ENGINEERING & EDUCATION FACILITY NORTHWEST FLORIDA STATE COLLEGE FAMU - COLLEGE OF PHARMACY & PHARMACEUTICAL SCIENCES

LOCKHEED MARTIN CORPORATION — 800+

BOEING — 450

INDYNE INC. — 800+

DRS TRAINING AND CONTROL SYSTEMS — 325

NORTH OKALOOSA MEDICAL CENTER — 700+

CRANE ELECTRONICS — 200

L-3 CRESTVIEW AEROSPACE — 600+

FORT WALTON MACHINING — 199

NEW (AN ASURION COMPANY) — 500+

MICROSYSTEMS — 135

THE BOEING COMPANY — 450

BAY STATE CABLE TIES — 100

WHITE WILSON MEDICAL CENTER — 400+

G.S. GELATO — 90

BAE — 380

MAGNA MANUFACTURING — 35 Sources: U.S. Census Bureau, Economic Development Council of Okaloosa County

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U.S. AIR FORCE PHOTO/SAMUEL KING JR.

COLLEGES AND UNIVERSITIES

THE FY 2015 THE FY 2015 THE FY 2015 ANNUAL REPORT THE FY 2015 By the Numbers Walton County Tourist Development Council

WALTON COUNTY

Visitors Visitors The Beach VISITORS Walton County is 41st in county population Visitors

Economics ECONOMICS

Eme Eme Eme

Walton County is 41st county Spending population in Florida, yet Top 11 ininVisitor

TDC 70+ beach in Beach Florida,Operations yet Top 11 inmaintains Visitor Spending County is365 41stdays in county population andWalton bay accesses per year.

in Florida, yet Top 11 in Visitor Spending

$2,800,000,000+ Direct Economic Impact Annually to Walton County For every $1 of tourism advertising, Visit Florida calculates that, $390 is generated in tourism spending and $23 in new sales taxes.

12.5%

GROWTH IN RENTAL REVENUE $600M

$440M

$495M

$202M+

1

Spent on Accomodations in June & July

$400M

South Walton was #1 Coastal Economy in Florida for

VISITOR TOURISM in June & July 2015

$200M

$0

FY2014

FY2015

19,500 JOBS DIRECTLY RELATED TO TOURISM IN WALTON COUNTY

600

TONS OF TRASH

PICKED UP 3,200,000+ 3,200,000+ ANNUAL 3,200,000+ ANNUAL (Approx. 84,800 bags)

VISITORS ANNUAL VISITORS came to South Walton came to South Walton VISITORS came to South Walton AWARDS

84

78

Sea Turtle

Sea Turtle

27 27

NESTS NESTS

Soc Soc Soc

HATCHED

MARKED

SEA TURTLE SEASON IS MAY - OCT

Accolades

MARKETING & PUBLIC RELATIONS MARKETING & PUBLIC RELATIONS MARKETING & PUBLIC INCL UD ING RELATIONS

INDUSTRY AWARDS INDUSTRY AWARDS “America’s THE TDC’S FIRST “HENRY” INDUSTRY AWARDS THE The TDC’S FIRST “HENRY” highest award given at INCL UD ING

favorite The highest award given at towns” WEBVisit Florida’s annual Flagler Awards INCL UD ING

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VISITORS TO FLORIDA

$8.3M DESTINATION IMPROVEMENTS (in progress & planned)

1

FLORIDA JOB ON AVERAGE

137%

SHOULDER SEASON GROWTH

Including parking, bike paths, Outpacing peak season, beach boardwalks, signs, bathrooms, over 10 years beach safety, & more Sources: VisitSouthWalton.com, Walton County Tourist Development Council

www.VisitSouthWalton.com

highest award given Awards at Visit The Florida’s annual Flagler THE TDC’S FIRST “HENRY” Visit Florida’s annual Flagler Awards

SANTA ROSA BEACH

I I I

TRAVEL+LEISURE

26 1,243,745 1,243,745 1,243,745

SOUTH WALTON ACCOLADES BY WEBSITE VISITORS MAJOR TRAVEL MEDIA WEBSITE VISITORS Increase over FY2014 WEBSITE VISITORS Increase over FY2014 Increase over FY2014

+26% +26% +26%

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201 201 FA FA 201

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AT T O R N E YS AT L AW

INSIGHT INTEGRITY INNOVATION

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DESTIN 4475 Legendary Drive | Destin, FL 32541 | 850.837.3662 phone | 850.654.1634 fa x NICEVILLE 323 E. John Sims Parkway | Niceville, FL 32578 | 850.729.7440 phone | 850.729.7871 fa x CRESTVIEW 596 N. Ferdon Road | Crestview, FL 32536 | 850.682.6211 phone | 850.398.6434 fa x | JUNE – JULY 2016 | 850businessmagazine.com

· 2015

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REMEMBERING THE PAST, SEEING THE FUTURE

DEAL ESTATE

Church newly listed; offices are fully leased

By Shelby Bouck Just Sold

Computer Support & IT Solutions in Northwest Florida

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A church building including a fellowship hall, along with 20 residential units, has been placed on the market with an asking price of $600,000. Located at 3717 Crawfordville Road, the 20-acre property is zoned for light industrial use. Buildings total 14,321 square feet. The main church facility includes four offices and nursery rooms; the fellowship hall features a kitchen and open banquet area. Abundant green space makes this property ideal for redevelopment.

Contact: T.J. Lewis, NAI Talcor: (850) 933-9787, tj@talcor.com

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