2017 ESCAMBIA COUNTY BUSINESS JOURNAL AN 850 BUSINESS MAGAZINE SPECIAL REPORT
ECONOMIC DEVELOPMENT VISIT PENSACOLA INNOVATION COAST NAVY FEDERAL CREDIT UNION NORTHWEST FLORIDA’S NAVY ACHIEVE ESCAMBIA GEORGE STONE TECHNICAL CENTER UWF NEW PRESIDENT
A D V E RTO R I A L
COX BUSINESS PROMOTES THE ENTREPRENEURIAL SPIRIT IN PENSACOLA
Congratulations to Cognitive Big Data Systems, the winner of Get Started Pensacola, presented by Cox Business! Cognitive Big Data Systems competed against four other startups at the “Shark Tank” style competition, presenting their big idea in front of a panel of business experts and a crowd of over 100 attendees. Lloyd Reshard presented on behalf of Cognitive Big Data Systems and shared the company’s artificial intelligence-based computer vision app. The software can improve current surveillance systems by learning pixel patterns from each camera’s video stream to understand potential threats and gain business intelligence. As the winner of Get Started Pensacola, Cognitive Big Data Systems received a prize package worth over $20,000 including a cash prize and business services from Cox Business along with other business development tools. Reshard states, “Cox Business internet has already proven to be a valuable service, allowing us to further our progress while continuing to invest in future work.” They also plan to use the Cox Media production prize to create a company promotional video to share with potential investors. Reshard has already noticed an increased interest in the business since winning the competition, and he hopes to keep up the momentum by entering more startup
competitions locally and regionally. “We entrepreneurs, we spin our wheels quite a bit doing things, but it’s better if you can work within a framework knowing you’re not spending your time doing the wrong thing, or you don’t know if somebody wants it. This event is just what Pensacola needed to stir up some entrepreneurship ... and give folks a chance.” He also encourages other startups or entrepreneurs looking to start their own business to enter in local startup competitions and enlist the support of the local governments to invest in the local entrepreneur community, something Cox is committed to reinforcing. Cox Gulf Coast Vice President David Deliman believes Get Started Pensacola is a step toward that cultivation. “Entrepreneurs and local businesses are the lifeblood of a community’s job growth. Cox is committed to assisting local entrepreneurs expand their business along the Gulf Coast, to provide jobs and services to the communities we serve. At our recent Get Started event in Pensacola, it was exciting to see the types of ideas generated by entrepreneurs in this area. Cox looks forward to working with these groups to help their businesses grow.”
Started | 866.701.8737 2 /Get 2017 E S C A MPensacola B I A C O U N |T Ycoxblue.com/getstartedpensacola BUSINESS JOURNAL
“This event is just what Pensacola needed to stir up some entrepreneurship ... and give folks a chance.” Lloyd Reshard, Cognitive Big Data Systems
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CONTENTS
PRESIDENT/PUBLISHER BRIAN E. ROWLAND
SALES & MARKETING VICE PRESIDENT/ CORPORATE DEVELOPMENT McKenzie Burleigh Lohbeck DIRECTOR OF NEW BUSINESS Daniel Parisi AD SERVICES COORDINATORS Tracy Mulligan, Lisa Sostre ACCOUNT EXECUTIVES Julie Dorr, Darla Harrison, Rhonda Lynn Murray, Dan Parker, Linda Powell, Sarah Scott, Brianna Webb, Lori Magee Yeaton INTEGRATED MARKETING SPECIALIST Jennifer Ireland INTEGRATED MARKETING COORDINATOR Bria Blossom MARKETING AND EVENTS ASSISTANT Mackenzie Ligas OPERATIONS ADMINISTRATIVE SERVICES/ HUMAN RESOURCE COORDINATOR Marah Rhone CORPORATE CLIENT LIAISON Sara Goldfarb CLIENT SERVICES REPRESENTATIVE/ PRODUCTION SPECIALIST Melinda Lanigan STAFF ACCOUNTANT Jackie Burns ACCOUNTANT ASSISTANT Lisa Cleaves ADMINISTRATIVE ASSISTANT Lisa Snell RECEPTIONIST Alyssa Cunningham
10 6 E CONOMIC DEVELOPMENT
New construction is the backbone of economic growth.
10 V ISIT PENSACOLA Growing
numbers of tourists pump millions into the local economy.
12 I NNOVATION COAST
Competition bolsters business growth.
14 N AVY FEDERAL
World’s largest credit union continues to grow its footprint in Escambia.
18 M ILITARY Contributions of
retired military are an economic boon for the region.
24 A CHIEVE ESCAMBIA
Community leaders from all walks of life join forces to improve education.
26 G EORGE STONE Technical Center helps meet the growing demand for trained workers.
MASS COMMUNICATION SPECIALIST 1ST CLASS DANIEL M. YOUNG/RELEASED
CREATIVE CREATIVE DIRECTOR Lawrence Davidson DIRECTOR OF PRODUCTION AND TECHNOLOGY Daniel Vitter SENIOR ART DIRECTOR Saige Roberts ART DIRECTOR Jennifer Ekrut PUBLICATION DESIGNERS Charles Bakofsky, Shruti Shah GRAPHIC DESIGNERS Meredith Brooks, Sarah Mitchell DIGITAL PRODUCTION SPECIALIST Chelsea Moore
COURTESY VISIT PENSACOLA
EDITORIAL DIRECTOR OF EDITORIAL SERVICES Steve Bornhoft EDITOR Linda Kleindienst SENIOR STAFF WRITER Jason Dehart EDITORIAL COORDINATOR Rebecca Padgett ASSISTANT TO DIRECTOR OF EDITORIAL SERVICES Kim Harris Thacker COPY EDITOR Barry Ray
18 28 N EW PRESIDENT
Martha Saunders takes the helm at the University of West Florida.
ON THE COVER: Education, transportation and a robust military presence are critical arteries contributing to the health of the Escambia County economy and all serve as bridges to the county’s future. Construction projects abound in and around Pensacola as the national economy rebounds. PHOTOS COURTESY UNIVERSITY OF WEST FLORIDA, PENSACOLA BAY BRIDGE RENDERINGS COURTESY SKANSKA USA AND U.S. NAVY PHOTO BY MASS COMMUNICATION SPECIALIST 2ND CLASS RIDGE LEONI/RELEASED
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2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 5
ECONOMIC DEVELOPMENT
IMPROVED ECONOMY BOOSTS CONSTRUCTION, JOBS Public and private projects abound. PENSACOLA BY THE NUMBERS » Greater Pensacola’s October 2016 unemployment rate was 4.9 percent, the state of Florida’s was 4.7 percent and the U.S. unemployment rate was 5 percent (not seasonally adjusted). » The population of the greater metropolitan area is projected to increase 12 percent from 2012 to 2020 (518,830). » The average age in Greater Pensacola is 38.3 years, in comparison to the state of Florida’s average age of 41.
A
by LINDA KLEINDIENST
sked how economic development in Escambia County and Pensacola has fared over the past year, Scott Luth pauses a moment before emphatically answering: construction. “If I was to put a theme on it, it would be that it has been a year of construction,” says the president and CEO of FloridaWest Economic Development Alliance. “There are projects already under construction, projects approved for construction and projects starting to break ground. There are big projects and little projects, a new hotel, more office buildings, a new half-billion-dollar bridge from Pensacola to Gulf Breeze that’s been approved, more student housing
EDUCATIONAL ATTAINMENT, ESCAMBIA COUNTY (PERCENT OF PERSONS AGE 25 YEARS AND OLDER, 2010-2014) » High school graduate or higher — 88.5 percent » Bachelor’s degree or higher — 23.9 percent
6 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L
being constructed at the University of West Florida. Escambia is doing very well.” Expansion of facilities and the creation of new jobs crosses a wide variety of industry sectors, from real estate and aviation to education and retail. An improved economy has helped drop the county’s unemployment rate below 5 percent. That is attracting more people to the region and increasing the demand for services and housing. Two private co-working spaces have opened, and the focus on entrepreneurship is growing. And The Bluffs — Northwest Florida’s Industrial Campus, a 6,000-plus-acre masterplanned development — was designed to lure more industrial/manufacturing north of the city.
These renderings depict the predicted half-billion dollar Pensacola Bay bridge that will connect Pensacola to Gulf Breeze.
PHOTO BY MATT BURKE / ROWLAND PUBLISHING FILE PHOTO (LUTH) AND PENSACOLA BAY BRIDGE RENDERINGS COURTESY SKANSKA USA
With support from local government, some resources from Tallahassee and private sector leadership, “we’re hitting on all cylinders,” says John Peacock, chairman of the Pensacola Downtown Improvement Board. He points out that downtown Pensacola, where redevelopment has been spurred by private investors such as Quint Studer and Bobbie Switzer, has become increasingly popular for residents and visitors. Few vacant storefronts are located along the city’s major thoroughfares, which now offer a variety of entertainment, dining and shopping options. “If a visitor comes for a week, you can only do so many beach days,” explains Peacock, who lives and works downtown. “In the past, people used to go west to Alabama or east to Destin looking for something to do. Now they’re coming downtown, so we’re keeping more of the money here. We’re improving the aesthetic appeal for downtown and promoting historical and cultural tourism. We haven’t done a good job in the past of leveraging that.” Now there is also a focus on providing more residential options in the heart of Pensacola. Studer is building a 268-unit apartment complex that will provide affordable housing, and Switzer spent $7.5 million to purchase One Palafox, a 4.5-acre site that is the largest block in downtown and will be turned into an urban village with luxury apartments, retail and co-working space. “Having grown up in the area, there was a time when I was younger when there was nothing in downtown,” recalls Clay Ingram, president of the Greater Pensacola Chamber. “It was a dead area. No
retail activity, a place you didn’t want to be after dark. Now there has been an incredible renaissance.” Peacock agrees, adding, “There is something for everybody here. People were moving out, but now they’re moving back.” Some economic development projects that have been on the drawing board for up to a couple of years are now coming to fruition. They include VT Aerospace’s project at Pensacola International Airport. Nearly five years in the planning, ground was recently broken for a 173,000-square-foot facility for VT Mobile Aerospace Engineering. The planned major-aircraft maintenance, repair and overhaul facility, which will sit on a 19-acre site at Pensacola International Airport, will create 400 new jobs. Design and construction of the $46 million project is being made possible through a combination of funds from the Florida Department of Transportation, the city of Pensacola, Escambia County, the University of West Florida’s Haas Center Industry Recruitment, Retention and Expansion Fund and VT Mobile Aerospace Engineering. Expected to open in early 2018, the facility will accommodate two Boeing 777s, or four Boeing 757s, or six Airbus A-320-sized aircraft. “After all the bumps and bruises, we finally broke ground,” says Ingram, who used his position as a state legislator to work with city and county officials to get the project moving. “It’s been on the radar screen for so long, people were wondering if it was ever going to happen. There’s a pretty tangible feeling of progress.”
“
If I was to put a theme on it, it would be that it has been a year of construction. There are projects already under construction, projects approved for construction and projects starting to break ground. There are big projects and little projects, a new hotel, more office buildings, a new halfbillion-dollar bridge from Pensacola to Gulf Breeze that’s been approved, more student housing being constructed at the University of West Florida. Escambia is doing very well.”
• SCOTT LUTH
PRESIDENT AND CEO OF FLORIDAWEST ECONOMIC DEVELOPMENT ALLIANCE
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 7
ECONOMIC DEVELOPMENT
Economic developers have targeted companies that fit in well with what is already in Pensacola, such as financial and business services companies, including Navy Federal Credit Union, information technology companies, and aviation manufacturing and portrelated businesses. They also look TEN LARGEST to expand homeland and defense EMPLOYERS* security work, especially in the 1 Baptist Health Care area of cybersecurity. 5,571 “Cybersecurity and IT develHealth Care opment, that’s a new target for us 2N avy Federal Credit Union and we’ve been working on that 5,325 initiative for a while,” Luth says. Financial Service Center 3 Sacred Heart Health Considering the number of miliSystems tary bases and defense contrac4,820 Health Care tors in the region, and the push 4 Gulf Power Company to teach cybersecurity at local 1,774 colleges, it has become a natural Electric Provider 5 West Florida target industry. Healthcare The UWF Center for Cyber1,200 Health Care security has become the regional 6 Ascend Performance hub for cybersecurity education Materials and research, including multidis830 Manufacturing ciplinary programs and certifi7 West Corporation cates, research opportunities, 800 Business, Processing, outreach activities and industry Outsourcing partnerships. And it has been 8 Innisfree Hotels designated a National Center of 750 Hospitality Academic Excellence in cyber9 Medical Center Clinic defense education by the National 500 Health Care Security Agency and the Depart10 International Paper ment of Defense. Pensacola State 475 College has also formed a cyberManufacturing *Source: FloridaWest Economic security center that offers help to Development Alliance. Employment figures current as of May 2016. local businesses. 8 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L SB0156 850 Mag half pg_Commercial Lending.indd 1
1/4/17 3:09 PM
COURTESY UNIVERSITY OF WEST FLORIDA
The University of West Florida Center for Cybersecurity is regionally and nationally recognized for its achievements in research and academia.
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2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 9
VISIT PENSACOLA
GROWING TOURISM NUMBERS BOOST LOCAL ECONOMY ESCAMBIA TOURISM BY THE NUMBERS » One additional dollar in hotel/ lodging sales will generate $7.60 in total taxable spending in the local area. » More than 16,000 jobs are related to the visitor industry (hotels, restaurants, attractions, transportation, retail). » For every dollar invested in Visit Pensacola marketing, $3.55 in tax revenue is generated. » For every dollar Visit Pensacola invests in marketing, $82 is returned to Pensacola businesses.
P
by LINDA KLEINDIENST
ensacola obviously has something that visitors like. Coming off a record summer tourist season in 2016, the numbers show that visitors are staying longer, spending more and beefing up tourist tax collections. “Everyone looks at summer as being the key factor,” says Steve Hayes, president of Visit Pensacola. “If summer went well, the rest of the year went well. The bed tax is up, and that’s one benchmark to look at. Length of stay and spending were also up.” Hayes credits the wide variety of events, activities and attractions in the Escambia County/Greater Pensacola area with the increased interest. Cultural offerings abound and include a local opera, theater, ballet and symphony. The region, occupied by Native Americans for thousands of years and then visited by Spanish explorer Tristan de Luna, who attempted to colonize the area in 1559, is rich in history. (A third shipwreck from de Luna’s fleet, hit by a hurricane a month after it arrived in
Historic Village Open House (right); Visitors to the National Naval Aviation Museum in Pensacola walk past Fat Albert, formerly a support plane for the Blue Angels (top far right); Palafox Street Celebration Downtown (bottom far right)
10 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L
Escambia Bay, was discovered in October.) Festivals are held throughout the year. The nearby beaches are among the world’s best. Naval Air Station Pensacola, the cradle of naval aviation, is home to the National Naval Aviation Museum, which attracts 800,000 visitors a year. And the famed Blue Angels precision flight team, which calls Naval Air Station Pensacola home and does two major performances a year (July and November) at home base, draws plenty of visitors on its own. “I think the number of things you can do in Pensacola is what brings people here. And look at where the spending is — 48 percent is in lodging, where you’re staying, but the remaining 52 percent is in the community,” Hayes explains of visitors’ economic impact on the region. “People are going shopping, visiting venues, buying gas, going to restaurants. Our big selling point for Pensacola is that Northwest Florida is blessed with great beaches, but we’ve got great history, great culture and a vibrant downtown.” Visitors come from the mid-Atlantic and Midwestern states, including from places such as Washington, D.C. and Chicago, as well as the Southeast. In 2015, Pensacola International Airport served 1.6 million passengers, making it the busiest airport in Northwest Florida. A decade ago, downtown Pensacola had an overabundance of vacant and neglected buildings. Today, it is a bustling center of commerce with restaurants, entertainment and small shops that bring locals and visitors downtown into the evening. One of the major attractions is the Community Maritime Park, which includes the Blue Wahoos baseball stadium, home to a minor league team affiliated with the Cincinnati Reds. “For a city of our size to have what we do is unheard of,” Hayes says.
PHOTOS BY PETER TITMUSS / SHUTTERSTOCK, INC. (BLUE ANGELS) AND COURTESY VISIT PENSACOLA
Pensacola proves to be gaining popularity.
CY 2015
% CHANGE FROM CY 2014
2016 (AS OF NOV., INCREASE FROM 2015)
Tax Collections
$9.4 million
+ 9%
+7.3%
Occupancy
64%
+2%
+3.7%
Average Daily Rate
$118
+6%
+3.4%
Length of Overnight Stay
8.5
+8%
+2.1%
Average Total Spent
$2,035
+40%
+3.5%
Average Spent Per Day
$172
+10%
+19.2%
Est. Unique Visitors
1.68 million
-7%
Not Available
Est. Direct Spending
$849 million
+26%
Not Available
TOURIST DEVELOPMENT
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 11
INNOVATION COAST
INNOVATION AWARDS BACK AND BIGGER THAN EVER
• JIM MCCLELLAN
CHAIRMAN OF INNOVATION COAST’S BOARD OF DIRECTORS
T
he Innovation Awards are back and bigger than ever. The business competition, billed as the most lucrative in the state, will return to Pensacola in April, offering more than $250,000 in cash and in-kind services to startups from throughout the region. The competition, to be held April 12-13 at the Hilton Pensacola Beach, is being organized by Innovation Coast, a Pensacola nonprofit dedicated to growing the region’s technology sector. Jim McClellan is chairman of the group’s board of directors. “Taking an idea from concept to market requires more than just an influx of capital,” McClellan said. “To succeed, entrepreneurs also need an extensive network of trusted advisers and mentors. This network
Colton Black, co-founder and CTO of Pensacola firm Robotics Unlimited, and CEO Sebastian Cotton placed third in the 2014 Innovation Awards, receiving a check for further research.
12 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L
of support is what distinguishes the Innovation Awards from other business plan competitions. Individuals emerge from our competition with a comprehensive and integrated business plan that enables them to thrive in a competitive business market.” Colton Black, co-founder and CTO of Pensacola firm Robotics Unlimited, knows firsthand the impact that advantage can have. Black’s company, which spun off from the Institute for Human and Machine Cognition, designs robotic toys and placed third in the 2014 Innovation Awards. Black credited the competition with helping him and CEO Sebastian Cotton muster the confidence, connections and capital they needed to take their business to the next level. “It kind of put us on the map,” Black said. In the same way, event organizers hope this year’s competition can put Northwest Florida on the global map as a center for innovation in the technology sector. “We want to establish Northwest Florida as a technology hub,” said McClellan, who daylights as marketing director for AppRiver, an email and web security firm based in Gulf Breeze. The region, he said, is well-positioned for growth — particularly in the cyber security industry. The proximity of the Navy’s Center for Information Dominance and other military installations offers a competitive advantage, as does the area’s quality of life. Still, he said, much work remains to be done if the region is to realize its potential. “We need capital,” McClellan said. “We need investors looking at companies here. We need companies looking to move here, and we need to attract talented students who will come to the universities and colleges here and remain.” The awards, he said, offer a great opportunity to raise the profile of the region and bring together all
PHOTOS BY DAVE BARFIELD (TOP RIGHT) AND COURTESY OF APPRIVER
“
Taking an idea from concept to market requires more than just an influx of capital. To succeed, entrepreneurs also need an extensive network of trusted advisers and mentors.”
Innovation Coast looks to expand signature business competition in 2017. by T.S. STRICKLAND
Black went from selling homemade games on a website he built to building his own circuit boards to starting his own company.
the stakeholders who will be needed to make this vision a reality. Tiffany Sullivan, who joined Innovation Coast as executive director late last year, said she hoped future competitions could serve as a platform not just for supporting local entrepreneurs — like Black and Cotton — but also for bringing in talent from outside the region. “One of the requirements of the winners is that if they’re not already located and participating in business within one of the eight major Gulf Coast counties, they have to commit to do that within 90 days to get their prize money,” she said. “So the ultimate goal is to grow this area.” Businesses in this year’s competition will be divided into four categories — post-revenue, prerevenue, veteran-owned and student-owned — where they will compete for cash prizes ranging from $5,000 to $100,000. A panel of expert judges will score all applicants before inviting the best three in each category to present their business plan live at the competition — á la “Shark Tank.” The latter experience, in particular, was important to Black.
“Doing the Innovation Awards definitely gave us the first dose of proving we knew what we were doing,” he said. “I think, because of that, we were able to raise money a lot more easily.” In the two years since the competition, Robotics Unlimited has amassed a small team of engineers and moved out of the Gulf Coast Center for Innovation and Entrepreneurship into larger digs in downtown Pensacola. They’ve also been hard at work designing new products. In January, the duo was traveling to Los Angeles to meet with four different manufacturers about licensing one of their toys. Meanwhile, they were also talking with retailers about putting another of their products on store shelves. Black said the awards offer an important leg up for businesses trying to get a foothold in the region. “When you’re starting a company, you need to get your name out there,” he said. “You need to build your reputation, and you need to raise money. The Innovation Awards offers a road to all of that in an area that doesn’t have much of an ecosystem otherwise.”
“
One of the requirements of the winners is that if they’re not already located and participating in business within one of the eight major Gulf Coast counties, they have to commit to do that within 90 days to get their prize money. So the ultimate goal is to grow this area.”
• TIFFANY SULLIVAN EXECUTIVE DIRECTOR OF INNOVATION COAST
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 13
NAVY FEDERAL CREDIT UNION
JUMP-STARTING THE JOB MARKET Navy Federal’s expansion is a boon for Escambia County. by TABITHA YANG
Federal’s growth has benefited Florida and the Pensacola area in particular, as many of its operations are based in Escambia County, where it is in the midst of a twophase expansion process that will lead to the creation of thousands of new jobs.
ESCAMBIA COUNTY: THE PERFECT PLACE TO EXPAND In the early 2000s, Navy Federal was looking for places to expand beyond its headquarters in Vienna, Virginia. The company looked at several different sites but eventually settled on Pensacola. Navy Federal opened a call center in the area in 2003 that employed about 300 people, and has continued to expand its operations in Escambia County since then. “The talent pool has exceeded our expectations and is the main reason for the growth, along with the growth of our membership,” notes Debbie Calder, the credit union’s executive vice president. Currently, Navy Federal employs more than 5,000 people in Escambia County, most of whom work on a 308-acre campus in the Beulah community. In addition to being home to a call center, the campus also features several other business units, including the credit union’s IT department, savings and membership, branch operations support, consumer lending and mortgage processing. Prior to Phase 1 of the current expansion
14 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L
COURTESY NAVY FEDERAL CREDIT UNION
T
he clean-cut, athletic Marine begins his story: “For years I’ve trained dogs for the Marines. And like me, some of these dogs have seen many tours of duty.” The Marine’s deep voice and solid build make you think of someone who is disciplined, competent and knows how to lead. He continues: “And for the past 15 years, I’ve been a Navy Federal member. Thanks to their fast approval process, when it came time to buy a new car, we got everything we needed to transport my wife’s little bundle of joy.” The camera pans out to reveal his shiny silver truck, then zooms back in to show a panting, fluffy Pomeranian sitting next to him in the front seat. The Marine and dog exchange wry glances, then he looks back at the camera and adds, completely deadpan, “Who I just adore.” This recent Navy Federal Credit Union commercial hits on all the credit union’s strong points: its commitment to serving members of the armed forces and Department of Defense employees and their families, as well as the benefits the credit union is able to offer its members, such as a fast approval process for car loans. The credit union’s popularity has led to a lot of growth in recent years, and although it started in 1933 with only seven members, it now has 292 branches and more than 6 million members around the world. Navy
The Navy Federal Heritage Oaks Building 3 is one of the four buildings that comprises the 600,000 square feet of office space on the new campus.
project, there were four buildings on the campus, for a total of 600,000 square feet of office space. According to Navy Federal public relations specialist Bill Pearson, Phase 1, a $245 million endeavor, is scheduled to be completed in January 2017 and will add two more buildings to the campus (for an additional 400,000 square feet of space.) Phase 2 of the expansion, which involves constructing another two office buildings that will add another 1 million square feet of space, began this past summer and is scheduled to be completed by the end of 2019 or beginning of 2020, depending on how quickly the project progresses, Pearson said. The project appears to be continuing as planned despite the fact that Navy Federal had to pay $28.5 million in penalties in the fall of 2016 to affected customers and the Consumer Financial Protection Agency due to alleged deceptive debt collection practices.
“
The talent pool has exceeded our expectations and is the main reason for the growth, along with the growth of our membership.”
• DEBBIE CALDER
EXECUTIVE VICE PRESIDENT NAVY FEDERAL CREDIT UNION’S GREATER PENSACOLA OPERATIONS
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 15
COURTESY NAVY FEDERAL CREDIT UNION
NAVY FEDERAL CREDIT UNION
The construction on Navy Heritage Oaks Phase Two is expected to reach completion by early 2020, at the latest.
THE BREAKDOWN OF JOBS CREATED IN PENSACOLA BY NAVY FEDERAL AS OF NOVEMBER 2016: » Construction (261) » Retail (448) » Finance and Insurance (5,446 — which includes Navy Federal and other industry jobs) » Professional Services (268) » Administrative, Support and Waste Management (371) » Health Care (452) » Accommodation and Food Service (533) » Other Services (302)
Asked about the incident, Calder referred to a statement that Navy Federal issued, which states, “Where our Collections practices have come up short in the Consumer Financial Protection Bureau’s estimation, we have made all the necessary changes. We have cooperated with the CFPB throughout the process.” The statement also reiterates the credit union’s commitment to “upholding our standards of service excellence.” Despite this setback, Navy Federal was rated No. 44 in 2016 on the list of Fortune’s “100 Best Companies to Work For.” The company is poised to become one of the biggest employers in Escambia County, as once the expansion process is complete, the Pensacola campus will employ about 10,000 people. The campus will include some amenities for its employees, such as a fitness center, training center, café and coffee shop.
AN ECONOMIC HEAVY HITTER For a city of just over 50,000, Navy Federal’s expansion in Pensacola represents major growth in the number of jobs available. Data from the University of West Florida’s Haas Center for Business Research and Economic Development indicates that as of November 2016, more than 8,800 jobs had
16 / 2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L
been created in the Pensacola area thanks to Navy Federal. (This includes jobs in other sectors, such as construction and retail, which have been created as a result of the company’s presence in the area.) The total earnings impact (the aggregate earnings of all jobs) amounts to slightly more than $444 million. “Just overall, they are probably the largest attraction and expansion project in Northwest Florida,” said Scott Luth, the executive director of Florida West, which advocates for economic development in Northwest Florida. “And having a company such as Navy Federal in the area continues to lead to more opportunity for growth.” Pensacola Mayor Ashton Hayward agrees, saying he thinks more companies will want to make Pensacola their home knowing that a large and wellrespected company such as Navy Federal has based a large share of its operations there. He also thinks Navy Federal’s expansion will help Pensacola grow as a city. “This is going to be a huge draw for obviously the folks that are in the pipeline at our universities,” he said. “Our talent that’s here in Pensacola (will benefit), but also folks that are looking to move to Florida and work for a tremendous company like Navy Federal.”
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NORTHWEST FLORIDA NAVY
NORTHWEST FLORIDA’S NAVY Ensign Matthew Bray is pinned by his daughter during a ceremony at the National Naval Aviation Museum on board Naval Air Station Pensacola. The ceremony marked the graduation of the newest aviators from Training Air Wing Six (TRAWING SIX). Bray has been selected to fly the P-8A Poseidon.
T
he “Cradle of Naval Aviation” is also a fine place to rest. According to the U.S. Department of Actuary, Pensacola’s 325-- ZIP codes are home to the highest concentration of military retirees in the nation — totaling 33,560 as of September 2015. Retired Navy Rear Adm. Donald P. Quinn has traveled far and wide with the military. Although he reports that there are many bases with fine community relations, he believes Pensacola’s relationship with its military is among the best in the country. After serving more than 30 years in the Navy,
culminating with his command of the Naval Education and Training Command at Naval Air Station Pensacola, today Quinn works as a consultant to the Greater Pensacola Chamber of Commerce — alongside Vice President of Armed Services Debi Graham, who he largely credits for the strong military-civilian relationship in the area. “Debi is known throughout the East Coast because of her participation in defense forums and the success she has generated here,” Quinn said. “Other civilian communities around the country come to our chamber to ask how we do it. We lead the way.”
A UNIQUE CONNECTION Quinn says the number of retirees can be chalked up to the state’s pursuit of military contracts and the sheer number of bases in the area. It’s also where many members of the armed services first earn their “wings.” Because NAS Pensacola is a training base, people have fond memories of their time there. “It’s warm. The climate is good. The quality of life is good,” Quinn said. “So many Air Force, Army, Navy, Coast Guard and Marine folks have come through here for training and remember it with a special place in their hearts.” Pensacola treats the military well with regard to schools and jobs, including the hiring of spouses. It’s also a smart place to start your own business. “Because of the cost of living, it’s easier to open your own business because conditions are good and you don’t have to make as much money to maintain a good quality of life,” Quinn said. “There is less risk involved than in other places in the country.”
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PHOTO BY MASS COMMUNICATION SPECIALIST SEAMAN BRITTANY N. TOBIN/RELEASED (LEFT) AND MASS COMMUNICATION SPECIALIST 1ST CLASS DANIEL M. YOUNG/RELEASED (RIGHT)
Pensacola and the military enjoy ties 100 years strong. by ASHLEY KAHN SALLEY
U.S. Navy Flight Demonstration Squadron, the Blue Angels, Diamond pilots perform the Low Break Cross over the Gulf of Mexico during the Pensacola Beach Air Show 2016. In 2016, Blue Angels celebrated their 70th show season.
NEW AT NAS PENSACOLA The base is seeing an increase in training, largely due to funding, but first and foremost in an effort to enhance its quality and effectiveness, according to Rear Adm. Quinn. Among those upgrades: » Corry Station’s National Cybersecurity and Communications Integration Center is expected to double in size over the next several years, both in square footage and in people. This will bring in top talent and further solidify Pensacola’s growing reputation as “Capital of the Cyber Coast.” » Training Wing Six has leapt forward about three generations in the use of technology to train Naval Flight Officers. Live, virtual and constructive (LVC) principles and technology are now extensively used, including virtual airto-air engagements in the actual T-45 aircraft. » One of the three wing squadrons, VT-4, is now 100 percent simulation, yet is producing some of the best-trained naval flight officers the P-3, E-2 and E-6 communities have ever seen. Many of the lessons learned in this training are being exported to other training squadrons and organizations throughout naval aviation, including the Naval Aviation Warfighting Development Center in Fallon, Nevada.
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NORTHWEST FLORIDA NAVY
Sailors and Marines currently enrolled in the Naval Aircrew Candidate School (NACCS) at Naval Air Station Pensacola, hold a modified plank position as a part of physical training (PT). PT is essential to the NACCS three-week regimen, since sailors and Marines are required to pass a physical screening test before graduation.
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» On the Air Force side, the 479th Flying Training Group will ramp up from 260 pilots to 330 per year. Although electronic warfare had lain dormant for some time, the Pensacola unit has become a center for it. » Coast Guard aviation is expected to increase from 55 to 70 pilots per year. A Coast Guard tender may potentially be assigned to NAS Pensacola, beginning in summer 2017, bringing as many as five additional 210foot cutters to the base. Meetings and planning are ongoing. » The VA and Navy Hospital Pensacola are working together to optimize use of the hospital and the clinics to support active-duty personnel, retired military, veterans and their dependents. Recent advances now make it possible for Navy doctors to view a patient’s VA medical records.
A CENTURY OF COMMUNITY SUPPORT Long before retirement, young service members — enlisted and officers — complete extensive training at NAS Pensacola. From naval aviators to cybersecurity professionals, its training commands graduate more than 59,000 students annually — representing every branch of service and foreign allies. In 2014, NAS Pensacola celebrated its 100th anniversary as the Navy’s first Naval Air Station. For more than 100 years, the city of Pensacola, Escambia County and surrounding areas have continuously supported both the base and its mission “to efficiently deliver the very best readiness from the shore.” One of only four installations in the continental United States with an active airfield and a deepwater port, NAS Pensacola is home to 126 Department of Defense and non-DoD tenant commands, according to public affairs officer Patrick Nichols. Composed of four geographically separate locations, the base’s major tenant commands include the Naval Education and Training Command, the Center for Naval Aviation Technical Training, the Naval Aviation Schools Command, the Center for Information Warfare Training, Marine Aviation Support Groups 21 and 23, the Naval Medicine Operation Training Center, the Naval Survival Training Institute, the Navy Orientation Recruiting Unit and the Air Force 479th Flying Training Group. To assist the community in its support of the military, Escambia County and the Pensacola Chamber have received funds via grant programs from the Office of Gov. Rick Scott, administered by Enterprise Florida and funded by the state Legislature.
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LOOKING TO THE FUTURE The chamber’s Graham points to a call to action by the Association of Defense Communities to foster increased collaborations between military bases and their host communities. According to a new paper released by the association, “States and communities have a significant role to play in helping military installations adapt to a variety of challenges — including budget constraints, aging infrastructure, evolving missions and weapons systems and generational changes in social attitudes.” That’s where Graham’s work comes in, and Quinn says there’s no one better suited to the task. “She can connect you with the city, the county, the state, the businesses,” he said. “She’s a connector. I don’t know if you can put a value on that.”
PHOTO BY MASS COMMUNICATION SPECIALIST 2ND CLASS RIDGE LEONI/RELEASE
NEW AT NAS PENSACOLA
The Defense Infrastructure Grant provides support for local infrastructure projects that have a positive effect on NAS Pensacola’s military value, while the Defense Reinvestment Grant provides funds to the community to support military relations. “The funds received by the county and the chamber have been integral in land acquisition projects to prevent encroachment, provided transportation and base access upgrades, and assisted in the Cyber Warfare Battle Lab acquisition and surface restoration,” Nichols said. The community’s dedication is reciprocated. NAS Pensacola fosters community service from within its Outreach Department — providing an average of 8,000 volunteer hours by sailors each year. Command staff also serve as integral and active members of the chamber’s Military Affairs Council, promoting face-to-face interaction with Pensacola leaders, business owners and residents. “With more than 23,000 people attached or working at NASP, the installation enjoys an incredible relationship with the community,” Nichols said. “All of the civilian employees and many of the military members live in and support the local area.” The annual economic impact of NAS Pensacola is more than $1.3 billion, around 40 percent of the local economy — even greater than tourism.
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Students at Naval Survival Training Institute (NSTI) learn to properly use a MK124 signal flare. NSTI aims to provide safe, effective, and relevant aviation survival and human performance training to enhance the operational readiness of the joint warfighter.
Quinn and Graham work together within the Military Affairs Department of the chamber to enhance current commands and missions, ensuring stability and quality of life for Pensacola’s military members and their families. This includes helping the base become more proactive in utilizing alternative fuel sources such as solar energy, fostering public-private partnerships and assisting with changes in base security. Few military bases have a tourist attraction on-site, Quinn notes. NAS Pensacola has three: the National Naval Aviation Museum, Barrancas National Cemetery and Pensacola Lighthouse and Museum. When base security tightened at the main gate, Graham was instrumental in securing grant funding to increase signage on Interstate 10 and feeder roads, directing visitors to the back gate in an effort to maintain the level of security while still giving the community access to on-base attractions. The chamber is also raising awareness. Each year, Graham and her team coordinate a five-county Washington, D.C., fly-in to ensure that elected officials know the issues facing the defense community in Northwest Florida, from Escambia to Walton County. “That’s the role that we at the chamber are taking,” Graham said. “We are looking at how the community can support the installation as a ‘base of the future,’ including hardening of infrastructure and making sure there are no encroachment or security issues.”
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A U.S. Marine with Marine Aviation Training Support Group (MATSG) 23, conducts practical application training using an air traffic control tower simulator at Naval Air Station Pensacola, Flaorida, April 20, 2016. MATSG-23 is a formal school responsible for providing students entry-level and intermediate training in aviation logistics.
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2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 23
ACHIEVE ESCAMBIA
COMING TOGETHER FOR KIDS How we can do more to help children achieve more by ASHLEY KAHN SALLEY
I
n Escambia County, only 67 percent of children are prepared for kindergarten. Just 72 percent of high school students will graduate on time. And among the working-age population, 63 percent hold a high school diploma or less. The people of Pensacola want better for their children, and they’re coming together to do something about it. It all started two years ago, when Gulf Power CEO Stan Connally took stock of the company’s volunteer forces. He quickly recognized they were doing a lot of good — as were many other community partners. Connally wondered, “How can we align our resources to help kids succeed?” From this question would develop Achieve Escambia, an initiative bringing together leaders in education, faith, public safety, health care, government and business to address social challenges by aligning efforts. In addition to Gulf Power, Navy Federal Credit Union, Baptist Health Care and Sacred Heart Health System were integral to the establishment of Achieve Escambia, operating within the United Way of Escambia County. For counsel and direction, the team engaged with Strive Together, a national organization dedicated to the improvement of education through collective impact. Achieve Escambia is the first Strive Together network in Florida and the only one in the nation to have sprung up from a business community.
LEADING THE WAY After numerous community summits, the next step was to hire an executive director. With more than 25 years of experience in nonprofit management, Greg Voss took on the role in October 2016.
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The 2016 Achieve “I know we are underachieving … everyone Escambia knows it,” Voss said. “The idea now is to put a community plan in place — to inch those statistics up and summit brought local leaders and continue to see improvement.” activists together Upon moving to Northwest Florida from to discuss area Wisconsin, Voss was immediately impressed challenges. by the dedication of the Pensacola community. “The staff from these corporations devoted so much of their time that would otherwise have been spent doing their jobs,” he said. “It’s amazing, the level of commitment. I have not seen such intensity and focus and loyal dedication.” Voss echoes the sentiments of those who worked to shepherd Achieve Escambia from the start. “The school districts can’t do it alone … the corporate folks can’t do it alone, but when we bring in experts, take a disciplined approach and measure results, we’ll move the needle,” he said. “That’s the benefit of collective impact.” To begin, Voss is working hard to build trust, meeting eye-to-eye with people throughout the community. “In the end, isn’t that what gets things done?” he said. “If you’re a police chief, a priest or a principal, it all comes down to building trust.” Pensacola Chief of Police David Alexander couldn’t agree more. “Our goal is to increase cultural understanding and build trust between organizations within our community by engaging in Achieve Escambia’s collective impact effort, so that our community’s resources can be utilized more effectively,” said Alexander, who serves on the initiative’s Leadership Council. “I hope to help build trust between law enforcement and citizens and, in turn, direct members of the community to available resources.”
SETTING GOALS TO ACHIEVE Escambia County is growing, with 5,000 new employees expected to join Navy Federal’s already vast employee base there. Corporate leadership wants what is best for its employees. “I am proud to support Achieve Escambia’s mission to align our community resources so that everyone is empowered to achieve success,” said Debbie Calder, executive vice president at Navy Federal and a member of the Achieve Escambia Leadership Council. “Navy Federal hopes to help create a sustainable work force of future employees by engaging with Achieve Escambia, and we hope to see prosperity in our community as a result for generations to come.” Like Navy Federal, business leaders throughout Escambia County have a strong desire to improve quality of life. They’re looking to attract skilled talent. They want to attract families. What attracts families? Good schools. To improve education in Escambia County, Achieve Escambia has established five CANs, or Collective Action Networks, in the following areas: » Kindergarten Readiness » Third Grade Reading » Middle School Math
»H igh School
Graduation Rates » Career Readiness
Along with the community, the board of Achieve Escambia weighed in on these goals and their progression. For each CAN, experts in the specific areas will help identify gaps and determine measurable outcomes. Kindergarten Readiness kicked off in November 2016 — a natural beginning to this noble journey.
Jennifer Grove, community development manager with Gulf Power and Achieve Escambia operational support team member, and David Alexander III, Pensacola police chief speak to the ongoing efforts and commitment of Achieve Escambia members. TO LEARN MORE OR TO GET INVOLVED, VISIT UNITEDWAYESCAMBIA.ORG/ACHIEVE-ESCAMBIA.
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STRIKE UP THE BAND Voss is careful to keep the perspective of helping one child at a time. Reflecting on being a father of four, he has a poem stuck in his head these days — “All I Really Need to Know I Learned in Kindergarten,” by Robert Fulghum. “Wouldn’t the day be nice when the most significant challenge for kids would be remembering to hold hands while walking across the street?” Voss said. “It just seemed so innocent and simple back then.” Today, there are many other issues children face. That’s why Doug Brown, executive director of the Community Action Program Committee, decided to join the Achieve Escambia Leadership Council. “Achieve Escambia will benefit students and families greatly, allowing us to align resources,” Brown said. “Children often need someone to step up and to stand in the gaps they are facing, and that Good Samaritan is in all of us. It can be exhausting if everyone tries to help but ends up pulling in different directions, but it is energizing when we all pull in the same direction.” Voss hopes to harness the energy of the community’s loyal supporters to significantly improve all outcomes, from cradle to career. “I’m the maestro of the orchestra,” he said. “I’m just leading the band.”
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2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 25
Sparks fly at the George Stone Technical Center, which specializes in training for technical careers.
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GEORGE STONE TECHNICAL CENTER
TRAINING FOR SUCCESS George Stone Technical Center helps meet growing demand for highly skilled workers. by MATT ALGARIN
PHOTOS COURTESY GEORGE STONE TECHNICAL CENTER
T
he George Stone Technical Center has been training the local workforce in high-skill, technical careers since the first classes were offered in September 1968. Located in Pensacola, the school is part of the Escambia County School District and is accredited by the Council on Occupational Education. Principal Thomas Rollins has been with the school for five years and has been an educator for almost 30 years. George Stone Technical Center partners with local businesses and industries to ensure that its training programs are preparing students for high-skill, highwage and high-demand occupations. “We really try and adapt our programs to what is needed in the community,” Rollins said. “We work very closely with the local chambers of commerce, Career Source Florida and Career Source Escarosa.” For example, Rollins says welding is seeing tremendous growth. To meet the demand for skilled welders, classes are offered day and night. There has also been an increased need for manufacturing-based trades and IT, so programs are offered in aviation maintenance, marine service technology, electrical work, network support services (CISCO), network systems administration and cybersecurity. The need for skilled workers will only increase as the local and regional economy becomes more and more diverse. But as Rollins sees it, right now there are not enough skilled technical workers to fill the positions that are expected to be available soon. “We have a very large workforce of skilled laborers that’s aging,” he said. “People just don’t build things and work with their hands to fix things like they used to. Now everything is on the computer or a TV screen — it’s just a different time.”
In fact, research shows that baby boomers are retiring in large numbers — as many as 10,000 a day nationwide. But these are services and skills that will be needed, especially as the region sees an increase in manufacturing-type jobs, whether directly related to the Airbus facility in neighboring Alabama or the numerous military-related contractors and shipyards along the Gulf coast. “There is a real opportunity in these fields,” Rollins said. “These are going to be highly technical careers that will offer good wages and opportunities to grow in a career.” According to the Florida Chamber of Commerce, manufacturing contributes more than $40 billion to the state’s economy and provides more than 90 percent of Florida’s exports. It is also noted that for every 10 jobs created in the state’s export-oriented
manufacturing, 12 more jobs are created in transportation, warehousing and retail. Most programs at George Stone tend to be about a year in length, which gives students the opportunity to learn a skill and join the workforce much quicker than if they were to attend a traditional fouryear institution. George Stone also offers adult basic education and adult general education (GED) courses. Financial aid is offered for students who have earned a high school diploma or GED. “We can help you no matter your level of education,” Rollins said. “Our students can get most, if not all, of their education paid for (through various funding options).” To learn more about the programs offered at the George Stone Technical Center, visit georgestonecenter.com or call (850) 941-6200.
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 27
UWF NEW PRESIDENT
SAUNDERS TAKES HELM AT UWF University’s sixth president takes reins at critical time. by T.S. STRICKLAND
M
COURTESY UNIVERSITY OF WEST FLORIDA
artha Saunders became the sixth president of the University of West Florida on Jan. 1, stepping into the job at a critical juncture in the school’s history. UWF will celebrate its 50th anniversary this year, and the institution — long regarded as among the sleepiest of Florida’s public universities — has been making a lot of noise. Saunders’ predecessor, Judith Bense, oversaw a remarkable string of successes during her eight years at the school’s helm. Enrollment topped 13,000 this year — up from just 10,000 in 2008. A spate of new construction, begun during the height of the Great Recession, has reshaped UWF’s campus and helped improve student retention. The university’s newly minted Division II football team sold out each of its home games during its inaugural season, and Bense announced the discovery in downtown Pensacola of the country’s oldest, multi-year, European settlement — a crowning moment for the career archeologist. These successes and others have catapulted the school into the center of public life in Northwest Florida like never before. Saunders — Bense’s successor — is the beneficiary of all this positive momentum. That said, she will also inherit the unenviable task of improving the school’s performance against state funding metrics. Right now, the university ranks at the bottom of the state’s Performance Funding Model, costing UWF millions each year.
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With 30 years of academic experience and two prior stints as a university president, Martha Saunders established herself as the most worthy candidate to step into Judith Bense’s previous role.
2017 E S C A M B I A C O U N T Y B U S I N E S S J O U R N A L / 29
UWF NEW PRESIDENT
Goals for her presidency include a focus on enhancing and building upon the university’s strengths. The nursing program and the IHMC Robotics lab will receive particular attention.
working for Amazon while in college, then move into careers with Amazon after graduation,” Saunders said. “It’s a great program that builds a career path to a great company.” Saunders said UWF would be the first university in the state to partner with the company in this way. Likewise, Saunders said she plans to work more closely with Pensacola State College and other institutions of higher learning to improve workforce readiness in targeted industries. “I’m particularly interested in developing intellectual infrastructure — hubs — for the support of manufacturing, innovation and commercialization,” she said. “Here, we can partner with our strong state colleges
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and career academies to really make things happen. I know from experience that investors like organized, ready-to-go entities. We can do that for our region.” Saunders’ other priorities include investing more in university research and expanding UWF’s distance learning offerings. Saunders said she is excited about what the new year will bring. In November, UWF announced the launch of its 50th anniversary capital campaign — the largest in the university’s history. By the start of 2017, UWF already had raised more than $48 million of the $50 million goal. “I expect to see that goal extended early in the year,” Saunders said. “People are recognizing our potential, and we’re on a roll.”
COURTESY UNIVERSITY OF WEST FLORIDA
Saunders, however, seems up to the task. The administrator, who began her academic career teaching undergraduates at UWF more than 30 years ago, has built a reputation as a bold, capable and collaborative leader, and she has no plans to slow down. “I expect to focus on partnerships, innovation and programming on which we can build a national and global reputation,” Saunders said in December, in the midst of transitioning into her new role. This is not the first time Saunders has led a university. After leaving UWF in 2002, she went on to serve as chancellor at the University of Wisconsin-Whitewater from 2005 to 2007 and president of the University of Southern Mississippi from 2007 to 2012. She returned to UWF as a provost in 2013, at Bense’s request. The faculty senate that year had returned a vote of no confidence in Bense, an event that threatened to topple her administration. The president, who had heard of Saunders’ departure from USM, asked if she would be willing to return to Pensacola and oversee the university’s operations and budget for the following year. Saunders jumped at the opportunity and ended up leading a reorganization of the university’s colleges and helping to mend relationships with faculty — both Herculean tasks. Looking ahead, Saunders said she planned to build on those successes. A key priority will be establishing “programs of excellence” in fields where the university has a strategic advantage, including robotics, cybersecurity, health and supply chain logistics. Saunders said she planned also to continue her predecessors’ efforts to encourage more community engagement at the university. Part of that effort, she said, will be interfacing more with the region’s business community. “The possibility of industry partnerships excites me,” Saunders said, “and can pair the expertise of our faculty with economic need.” For example, Saunders pointed to a fledgling work-study partnership with ecommerce giant Amazon. “They will be recruiting on campus after the holidays for students who will begin
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