INVESTOR NEWSLETTER - JULY 2009

Jaguars to Participate in Third Quarter Luncheon
Join Wayne and Delores Weaver and the Jacksonville Jaguars players and coaching staff at the third quarter luncheon on Friday, September 4 at the Prime Osborn Convention Center. The Jaguars have a huge economic impact on our region in many ways. The luncheon will kick off the new season and showcase the first of the season’s “Teal Fridays” where fans are being asked to wear teal on Fridays to show support for the team.

Become a sponsor of the event and pick the player that sits at your table! To become a sponsor, register for the lunch or for more information click here.

Information Technology - A Cornerstone Targeted Industry
In our last newsletter, we took a closer look at the advanced manufacturing industry. This month we focus on the information technology industry, the current environment and how we are looking to grow this sector in the future. Northeast Florida's IT industry is not always at the forefront, but it is thriving and actually growing, even in our current economic environment. Our IT sector bolsters a myriad of industries, with finance and logistics employing the greatest number of IT professionals.

Well known financial firms such as Bank of America, Merrill Lynch, Fidelity National Information Systems and Blue Cross & Blue Shield are just a few of the companies that have extensive IT functions housed in their Jacksonville operations. These functions represent a very high level of sophistication and knowledge and play a key role in helping our financial industry develop and grow.

The other primary industry sector with significant IT functions is the logistics and distribution industry. Major logistics companies such as CEVA and Landstar have grown their businesses predicated upon the innovation of their IT solution systems. Companies like CSX also rely heavily on their IT functions to help them meet the increasingly complex supply chain demands of today's goods movement.

The sophistication and capabilities of our workforce play an important role in helping to attract new IT related companies to our region. One example is a European company specializing in e-governance that will employ hundreds to archive and mine emails required to be reviewed as part of legal proceedings. Other solution providers are actively looking at Jacksonville as a potential location for all aspects of IT related industries.

As more IT functions are consolidated or expanded in the Jacksonville Metro region our reputation as a solution provider center of excellence will spread. For more information on our IT industry, contact Mike Breen, director, International department, at (904) 366-6682 or Mike.Breen@jacksonvillechamber.org.




Economist's Corner
Jacksonville is Weathering the Storm

In our May newsletter we had the opportunity to hear about the current state of the economy from an economist at BBVA. This month we got an updated overview of the economy from Mark Vitner, Wachovia Bank's Senior Economist.

While the recession appears to be ending, the economy is not out of the woods just yet. Real GDP is expected to rise slightly during the third quarter as inventory liquidations slow dramatically and consumer spending revives. While GDP should bounce back, final demand is expected to remain weak through the spring of next year, which means that even if the recession technically ends recessionary conditions will remain in place for some time.

The first half of 2009 was difficult across most of the First Coast. Businesses eliminated 10,100 jobs and the unemployment rate soared 2.5 percentage points to 10.5 percent. The largest job losses continue to be in construction, manufacturing and financial services but virtually every industry has been slimming down, including traditional recession-resilient areas like education and health care.

Economic Overview

• Domestic demand is restrained by continued job losses, sluggish wage and salary growth and a massive loss of wealth.
• Non-farm employment has fallen 4.7 percent since the recession began.
• Job losses are only part of the problem. Companies are also reducing operating hours and pay.
• Hours worked plummeted at a 7.9 percent annual rate over the past three months and are down 6.8 percent over the past year.

The Positive News

• Dollars are beginning to flow in from the $787 billion stimulus act passed earlier this year, and some of that money is finding its way to the First Coast.
• After a brief increase during spring, gasoline prices are falling, which should free up a few more dollars for consumer spending.
• The pace of layoffs appears to be moderating and layoff announcements have declined in recent months.
• Some of the more troubled areas of the local economy are showing signs of bottoming out, including home sales.
• Home prices are still falling but property tax receipts came in slightly ahead of expectations, which should ease fears of a more dramatic price drop.
• Federal economic stimulus dollars are beginning to flow into numerous area road and water projects. Stimulus dollars are also helping upgrade several area Navy facilities and will also help finance a dredging project in the St. Johns River.

Despite the many challenges our region faces, we remain well positioned to compete as the broader economy emerges from the recession. We have the lowest ‘cost’ of any major metropolitan area on the Eastern seaboard and remain the most cost effective way to serve the entire Southeast population. The region’s port facilities are modern and efficient and the area’s large military presence is a powerful stabilizing influence, whose future now appears to be fairly secure. Growth at the port will continue to fuel expansions in the region’s core logistics industry. Defense contracting is playing a growing role in the region’s economy and Jacksonville continues to attract a great deal of interest from businesses interested in expanding in Northeast Florida.

Cornerstone Gets Linkedin
Stay connected to news, events and discussions through the new Cornerstone Linkedin sub-group of the Jacksonville Regional Chamber of Commerce. To join our group today sign in to Linkedin and search for the Cornerstone Regional Development Partnership Group.

Northeast Florida Budgets Under Pressure
City and County budgets across the First Coast are under great pressure. Everyone is making the necessary adjustments to revenues and/or expenses. The biggest challenge may be in Jacksonville, which faces a $50 million deficit. Please consider getting involved in your county to help your elected officials find solutions to these funding challenges, while maintaining their commitment to economic development.

2009 Jacksonville Chamber Leadership Trip

• Where: Kansas City, InterContinental Hotel Kansas City at the Plaza
• When: October 6-8, 2009
• Why: To get to know the leaders within Kansas City and discover how they were able to positively change the direction of their community with a single strategic vision. See first-hand the results of that vision and learn how leaders overcame challenges along the way. This trip is not about a city; it's about the leaders of a city who made change happen. To find out more about Kansas City, click here.
• How: To register for the trip, click here and download the registration form.

Sincerely,
Greg Smith

Cornerstone Chair
Jacksonville and Northeast Florida President, Bank of America

Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns Counties
3 Independent Drive • Jacksonville Fl 32202 • 904.366.6639
bizrelo@jacksonvillechamber.org • www.expandinjax.com
Where the Future Leads®