Susie
01-01-2007, 07:07 PM
http://www.theledger.com/apps/pbcs.dll/article?AID=/20061231/NEWS/612310312/1178
Published Sunday, December 31, 2006
A BUYOUT, A LAYOFF, A DECLINE, A RECORD, A SLUMP & A BARNBURNER
2006 Was a Fickle Year for Those Conducting Business in Polk County
LAKELAND
The Barn burned, the Realtors rumbled, and a giant took up residence in Lakeland.
Yes, it was another interesting year for business in Polk County, which was dominated by events big, small, sad and strange.
The job market had another banner year, while the housing industry hit a slump. Polk's mainstay citrus and phosphate industries also fell on hard times, as did a famed local restaurant.
The exit of an established Lakeland company might have brought more bad news, if not for the excitement surrounding its replacement. And let's not even get into the Realtors - just yet.
Without a doubt, Polk business in 2006 hasn't been easy to define. And with stories like these, it won't be easy to forget.
FEDEX
The rumor circulated for months that Lakeland-based Watkins Motor Lines was headed for a sale, but it couldn't be true, right?
The trucking firm had an extensive history in Lakeland, moving its headquarters here from Georgia in 1966, and seemed to be firmly in the hands of the Watkins family.
But the truth began to leak and in May the news became official: Watkins' new owner would be the Memphis-based shipping company called FedEx Corp.
FedEx paid $780 million in cash to acquire Watkins, which had roughly 800 local employees and more than 10,000 employees nationwide, in addition to 139 terminals and a sizeable fleet of tractor-trailers. The deal, finalized in September, added Watkins to FedEx's growing freight segment under the new brand FedEx National LTL.
"Our customers have increasingly asked us to provide a broader range of transportation and supply chain services, and as a result of this acquisition, we will be in a better position to meet their expectations," said Frederick W. Smith, the chairman and chief executive officer at FedEx Corp., in a prepared statement.
FedEx officials did not announce any major changes or plans for the former Watkins, but FedEx Freight Chief Executive Doug Duncan addressed employee concerns by publicly stating that no job cuts were planned.
"With the marketing force and the brand and customer base we have, we think we can grow this operation," Duncan told The Ledger in June. "I want every one of those 10,000 employees to stay and become a part of FedEx."
REAL ESTATE SLUMP
After generating sky-high construction and home sales figures in a booming 2005, there was only one place for Polk's housing market to go this year: Down.
PIERRE DUCHARME/THE LEDGER
A work crew places a truss assembly on a home on Bobcat Court in Poinciana on April 6.
Through November, permits for home construction registered nine consecutive months of annual declines. Existing home sales didn't fare any better, falling in nine months this year from 2005's levels.
But Polk is hardly alone in weathering the housing slowdown, which Realtors and builders say is the result of escalating prices, an oversupply of homes, and reluctant buyers holding out for the best deals and incentives.
Although Polk may just be experiencing a cooling off period in the wake of last year's overheated sales, economist Gordon Kettle said a decline in housing could affect the local economy.
"It is evident that much less local home building will be done in 2007, which will probably result in a negative spillover impact on hiring in not only the construction industry but related industries as well," Kettle told The Ledger this month.
HARD TIMES FOR PHOSPHATE, CITRUS
Polk's beleaguered phosphate industry sustained another blow in May when the Mosaic Co. announced it would shutter three area facilities and lay off 700 employees in the process.
RICK RUNION/THE LEDGER
Workers leave the Mosaic Green Bay Mine south of Mulberry on May 2 after the company announces it would close Greenbay and several other mines in Polk County.
Closing the Fort Green phosphate mining operation in Bradley, the Green Bay fertilizer plant in Bartow and the South Pierce fertilizer plant in Mulberry would allow Mosaic to cut costs and improve efficiency and its remaining sites, company officials said. But the move also scattered hundreds of lower-skilled workers who had once found financial stability in the phosphate industry.
In October, Minnesota-based Mosaic posted strong first quarter results with a $109 million profit but announced the following month that it would idle four Central Florida mines for two weeks because of a continued slump in fertilizer sales.
Meanwhile, the citrus industry got another dose of bad news this year with the announcement that commercial citrus acreage had sustained its second heaviest loss in 40 years, after two seasons marked by hurricanes, disease and urban development. Florida citrus land fell to 621,373 acres this year, a decline of 127,182 acres, or 17 percent, of commercial acreage since 2004, according to the biennial Commercial Citrus Inventory by the Florida Agricultural Statistics Service.
Acreage decreases were recorded in each of the 30 Florida counties included in the 2006 survey, though Polk continued to lead with a total 86,398 acres of citrus, dropping 9.1 percent from 95,050 acres in the 2004 survey.
"Unfortunately the trend of declines has been continuing," said Larry Black, assistant general manager of Peace River Packing Co. in Fort Meade, in a September interview with The Ledger. "It reflects the recent economics in the industry, the lack of new trees and urbanization."
NEW JOBS RECORD
One of the economic bright spots from 2005 didn't lose its luster this year because the county's job market enjoyed robust growth across a number of industries.
Undoubtedly, the high point came in April when Polk posted a record low unemployment rate of 2.7 percent, besting the previous all-time low of 2.9 percent in March. Polk's April performance was even strong enough to beat the statewide rate of 2.8 percent.
Despite the ongoing downturn in phosphate, citrus and manufacturing jobs, economists say that Polk's bustling labor market has reaped the benefits of steady population growth and continued diversification in professional- and health-related industries.
REALTORS SCANDAL
With 83 years of history and more than 1,300 members, the Lakeland Association of Realtors is one of the city's most established and visible professional organizations.
But this year, LAR got more attention than it wanted and is still trying to right itself after months of upheaval.
In October, sources told The Ledger about a LAR-funded private investigation into questionable activities at the association. A leaked report by a private investigator and former FBI agent turned up allegations of identity theft, mismanagement and vote-rigging surrounding Sue Riley, LAR's executive director.
In the aftermath, Riley lost her $72,673-a-year (according to most recent tax returns) job, the State Attorney's Office opened an investigation, and a bitterly divided board and membership fought amongst themselves.
Since Riley's ouster in October, five LAR board members have quit. The organization named an interim director earlier this month.
.
IMMIGRATION DEBATE
It happened just outside county lines but an immigration controversy in Avon Park drew coverage from The Ledger and news outlets across the country.
RICK RUNION/THE LEDGER
Libby Briseno and her father, Jose, both of Fort Meade, protest Avon Park's Illegal Immigration Relief Act in front of the Avon Park Community Center on July 24. That night, the City Council decided on the ordinance.
In June, Mayor Tom Macklin proposed an "Illegal Immigration Relief Act" that would deny business permits and fine any Avon Park companies that hired or attempted to hire illegal immigrants. The ordinance, which passed 3-2 on first reading, also called for establishing English as the city's official language and barred conducting any municipal business in another language.
"I think existing businesses and new businesses need to know from this point forward that if they hire an illegal alien, there will be consequences," Macklin said in July.
But the proposed measure generated widespread media coverage, protest rallies and a divisive debate between Avon Park's Hispanic community and many other residents. It was finally defeated in a 3-2 July vote, when Councilwoman Brenda Gray reversed her previous vote after turning to prayer.
BARN BURNER
The long history of the beloved Farmer Jones Red Barn Steak House went up in flames, literally, when it sustained heavy damage in a June 22 accidental fire.
The Lakeland eatery, which opened in 1948, had become famous for its tasty steaks and rustic atmosphere, and had thrived under three generations of family ownership. But in October, owner David Jones said he would not rebuild, saying costs would be too high and that family members were ready to move on.
SCOTT WHEELER/THE LEDGER
A Lakeland firefighter sprays water on a fire at Farmer Jones Red Barn Steak House west of Lakeland on June 22. New Tampa Highway was closed while firefighters battled the blaze.
Jones recently said he hopes to open a meat market in Lakeland, though that won't be much consolation to the Red Barn's most loyal patrons.
"I hate to see them not build it back, but I understand," said Lakeland Mayor Buddy Fletcher, a schoolmate of the late Bob Jones, David's father. "It was just a landmark in the city. It will be missed."
Kyle Kennedy can be reached at kyle.kennedy@theledger.com or 863-802-7584.
Published Sunday, December 31, 2006
A BUYOUT, A LAYOFF, A DECLINE, A RECORD, A SLUMP & A BARNBURNER
2006 Was a Fickle Year for Those Conducting Business in Polk County
LAKELAND
The Barn burned, the Realtors rumbled, and a giant took up residence in Lakeland.
Yes, it was another interesting year for business in Polk County, which was dominated by events big, small, sad and strange.
The job market had another banner year, while the housing industry hit a slump. Polk's mainstay citrus and phosphate industries also fell on hard times, as did a famed local restaurant.
The exit of an established Lakeland company might have brought more bad news, if not for the excitement surrounding its replacement. And let's not even get into the Realtors - just yet.
Without a doubt, Polk business in 2006 hasn't been easy to define. And with stories like these, it won't be easy to forget.
FEDEX
The rumor circulated for months that Lakeland-based Watkins Motor Lines was headed for a sale, but it couldn't be true, right?
The trucking firm had an extensive history in Lakeland, moving its headquarters here from Georgia in 1966, and seemed to be firmly in the hands of the Watkins family.
But the truth began to leak and in May the news became official: Watkins' new owner would be the Memphis-based shipping company called FedEx Corp.
FedEx paid $780 million in cash to acquire Watkins, which had roughly 800 local employees and more than 10,000 employees nationwide, in addition to 139 terminals and a sizeable fleet of tractor-trailers. The deal, finalized in September, added Watkins to FedEx's growing freight segment under the new brand FedEx National LTL.
"Our customers have increasingly asked us to provide a broader range of transportation and supply chain services, and as a result of this acquisition, we will be in a better position to meet their expectations," said Frederick W. Smith, the chairman and chief executive officer at FedEx Corp., in a prepared statement.
FedEx officials did not announce any major changes or plans for the former Watkins, but FedEx Freight Chief Executive Doug Duncan addressed employee concerns by publicly stating that no job cuts were planned.
"With the marketing force and the brand and customer base we have, we think we can grow this operation," Duncan told The Ledger in June. "I want every one of those 10,000 employees to stay and become a part of FedEx."
REAL ESTATE SLUMP
After generating sky-high construction and home sales figures in a booming 2005, there was only one place for Polk's housing market to go this year: Down.
PIERRE DUCHARME/THE LEDGER
A work crew places a truss assembly on a home on Bobcat Court in Poinciana on April 6.
Through November, permits for home construction registered nine consecutive months of annual declines. Existing home sales didn't fare any better, falling in nine months this year from 2005's levels.
But Polk is hardly alone in weathering the housing slowdown, which Realtors and builders say is the result of escalating prices, an oversupply of homes, and reluctant buyers holding out for the best deals and incentives.
Although Polk may just be experiencing a cooling off period in the wake of last year's overheated sales, economist Gordon Kettle said a decline in housing could affect the local economy.
"It is evident that much less local home building will be done in 2007, which will probably result in a negative spillover impact on hiring in not only the construction industry but related industries as well," Kettle told The Ledger this month.
HARD TIMES FOR PHOSPHATE, CITRUS
Polk's beleaguered phosphate industry sustained another blow in May when the Mosaic Co. announced it would shutter three area facilities and lay off 700 employees in the process.
RICK RUNION/THE LEDGER
Workers leave the Mosaic Green Bay Mine south of Mulberry on May 2 after the company announces it would close Greenbay and several other mines in Polk County.
Closing the Fort Green phosphate mining operation in Bradley, the Green Bay fertilizer plant in Bartow and the South Pierce fertilizer plant in Mulberry would allow Mosaic to cut costs and improve efficiency and its remaining sites, company officials said. But the move also scattered hundreds of lower-skilled workers who had once found financial stability in the phosphate industry.
In October, Minnesota-based Mosaic posted strong first quarter results with a $109 million profit but announced the following month that it would idle four Central Florida mines for two weeks because of a continued slump in fertilizer sales.
Meanwhile, the citrus industry got another dose of bad news this year with the announcement that commercial citrus acreage had sustained its second heaviest loss in 40 years, after two seasons marked by hurricanes, disease and urban development. Florida citrus land fell to 621,373 acres this year, a decline of 127,182 acres, or 17 percent, of commercial acreage since 2004, according to the biennial Commercial Citrus Inventory by the Florida Agricultural Statistics Service.
Acreage decreases were recorded in each of the 30 Florida counties included in the 2006 survey, though Polk continued to lead with a total 86,398 acres of citrus, dropping 9.1 percent from 95,050 acres in the 2004 survey.
"Unfortunately the trend of declines has been continuing," said Larry Black, assistant general manager of Peace River Packing Co. in Fort Meade, in a September interview with The Ledger. "It reflects the recent economics in the industry, the lack of new trees and urbanization."
NEW JOBS RECORD
One of the economic bright spots from 2005 didn't lose its luster this year because the county's job market enjoyed robust growth across a number of industries.
Undoubtedly, the high point came in April when Polk posted a record low unemployment rate of 2.7 percent, besting the previous all-time low of 2.9 percent in March. Polk's April performance was even strong enough to beat the statewide rate of 2.8 percent.
Despite the ongoing downturn in phosphate, citrus and manufacturing jobs, economists say that Polk's bustling labor market has reaped the benefits of steady population growth and continued diversification in professional- and health-related industries.
REALTORS SCANDAL
With 83 years of history and more than 1,300 members, the Lakeland Association of Realtors is one of the city's most established and visible professional organizations.
But this year, LAR got more attention than it wanted and is still trying to right itself after months of upheaval.
In October, sources told The Ledger about a LAR-funded private investigation into questionable activities at the association. A leaked report by a private investigator and former FBI agent turned up allegations of identity theft, mismanagement and vote-rigging surrounding Sue Riley, LAR's executive director.
In the aftermath, Riley lost her $72,673-a-year (according to most recent tax returns) job, the State Attorney's Office opened an investigation, and a bitterly divided board and membership fought amongst themselves.
Since Riley's ouster in October, five LAR board members have quit. The organization named an interim director earlier this month.
.
IMMIGRATION DEBATE
It happened just outside county lines but an immigration controversy in Avon Park drew coverage from The Ledger and news outlets across the country.
RICK RUNION/THE LEDGER
Libby Briseno and her father, Jose, both of Fort Meade, protest Avon Park's Illegal Immigration Relief Act in front of the Avon Park Community Center on July 24. That night, the City Council decided on the ordinance.
In June, Mayor Tom Macklin proposed an "Illegal Immigration Relief Act" that would deny business permits and fine any Avon Park companies that hired or attempted to hire illegal immigrants. The ordinance, which passed 3-2 on first reading, also called for establishing English as the city's official language and barred conducting any municipal business in another language.
"I think existing businesses and new businesses need to know from this point forward that if they hire an illegal alien, there will be consequences," Macklin said in July.
But the proposed measure generated widespread media coverage, protest rallies and a divisive debate between Avon Park's Hispanic community and many other residents. It was finally defeated in a 3-2 July vote, when Councilwoman Brenda Gray reversed her previous vote after turning to prayer.
BARN BURNER
The long history of the beloved Farmer Jones Red Barn Steak House went up in flames, literally, when it sustained heavy damage in a June 22 accidental fire.
The Lakeland eatery, which opened in 1948, had become famous for its tasty steaks and rustic atmosphere, and had thrived under three generations of family ownership. But in October, owner David Jones said he would not rebuild, saying costs would be too high and that family members were ready to move on.
SCOTT WHEELER/THE LEDGER
A Lakeland firefighter sprays water on a fire at Farmer Jones Red Barn Steak House west of Lakeland on June 22. New Tampa Highway was closed while firefighters battled the blaze.
Jones recently said he hopes to open a meat market in Lakeland, though that won't be much consolation to the Red Barn's most loyal patrons.
"I hate to see them not build it back, but I understand," said Lakeland Mayor Buddy Fletcher, a schoolmate of the late Bob Jones, David's father. "It was just a landmark in the city. It will be missed."
Kyle Kennedy can be reached at kyle.kennedy@theledger.com or 863-802-7584.