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First Coast manufacturing expanded in January, but there’s room for greater growth

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Northeast Florida’s manufacturing sector expanded in January, according to a new University of North Florida (UNF) survey.

The UNF Coggin College of Business conducts monthly surveys of First Coast manufacturers to determine production levels and other factors. According to the latest Jacksonville Economic Monitoring Survey (JEMS), there was an uptick for several key elements of manufacturing in Northeast Florida in January compared to November. Researchers did not conduct a survey in December due to the holiday stretch.

New orders for manufacturers in the region, one of the most important elements, ticked up in January, going from an index figure of 52 in November to 56 in January.

Albert Loh, interim dean of the UNF business school who oversees the study, said the increase in new orders bodes well for First Coast manufacturers and signals a strong start to 2025.

“Jacksonville’s New Orders Index of 56 in January signals strong demand growth in the local manufacturing sector. A figure well above 50 indicates that a significant share of surveyed businesses experienced an increase in new orders compared to (November). With new orders being a leading indicator of future output, this expansion points to continued momentum in Jacksonville’s industrial base, particularly in key sectors such as transportation equipment, chemicals, and machinery,” Loh said in the report published Wednesday.

Other elements of manufacturing showed strong economic foundations in January, including expansion among output, output prices, employment, business activity outlook over 12 months, and average input prices.

New export orders, quantity of input purchased and suppliers’ delivery times were unchanged.

There was some contraction in areas of First Coast manufacturing. Backlogs of work dropped in the index, falling from 49 to 48. Finished goods inventory saw an identical drop as well. The inventory of input purchased also contracted, falling from 47 on the index to 45.

Generally, Loh said the Northeast Florida manufacturing picture is on solid footing as 2025 progresses. But there is room for increased growth.

“Challenges remain, particularly with input costs rising (input prices index of 54) and backlogs of work continuing to contract (index of 48), suggesting that manufacturers are fulfilling orders faster than new backlogs are forming. Despite these mixed signals, the fact that Jacksonville’s economy is keeping pace with national trends suggests resilience in the region’s manufacturing base,” Loh said.

“A key bright spot for Jacksonville is its steady supplier delivery performance (index of 50). This stability suggests that local manufacturers are managing supply chains efficiently, avoiding significant bottlenecks.”


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Lawmakers propose tax credits to enhance hurricane resilience

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Rodriguez has introduced a measure that would allow owners of certified resilient and sustainable buildings to receive tax credits.

State lawmakers are looking to cut down on the destruction felt during future hurricanes.

Doral Republican Sen. Ana Maria Rodriguez is carrying a bill (SB 62) developed by the Environment and Natural Resources Committee. It seeks to promote and support hurricane resilient buildings in Florida through various tax incentives and advisory policies.

Resilient buildings are defined as those with specific Leadership in Energy and Environmental Design (LEED) certifications that range between silver, gold and platinum standards. According to the U.S. Green Building Council of Florida, there are almost 3,000 buildings in Florida that have earned a LEED certification.

Owners of LEED buildings would be eligible for a tax credit that would only be allowed to be claimed once. Tax credits depend on the LEED standard and would range from 50 cents per square foot to $2 per square foot of the building every year for a total of five years.

Building owners would be able to file an application with the Department of Business and Professional Regulation (DBPR) electronically. Under certain conditions, unused tax credits could be carried forward or transferred, while the bill also notes that this tax credit could be rescinded if the required information is not provided.

Applicants would need to include evidence of the type of LEED certification granted to their building, the date it received its certification, a statement from the building owner on the building’s energy use, and any other documentation deemed necessary to determine eligibility.

DBPR and the Department of Revenue would be responsible for adopting rules to implement the tax incentives.

The bill would further create and establish the Florida Resilient Building Advisory Council, which would provide recommendations on policies for resilient buildings and hurricane resiliency. The Council would be made up of representatives from various universities and members with specialized knowledge of resilient building designs and operations.

The Council would advise DBPR and the Legislature with meetings held at least semiannually, while DBPR would provide staffing and administrative assistance to ensure the Council has the necessary support to perform its duties effectively.

If passed, the bill would come into effect July 1.


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Prison problems continue, as Senators hear of significant staff shortfalls

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The Senate Appropriations Committee on Criminal and Civil Justice is hearing a familiar message of recurrent resource deficiencies in Florida’s prison system. And the gap between needs and money to address them will present problems for the foreseeable future.

Corrections Secretary Ricky Dixon told Senators of “staffing challenges” even amid “historical support in the last few years.”

“Massive turnover” is an issue, with roughly 27,000 inmates coming in and out of the system annually, Dixon said.

The 88,000 inmates in the system are up 8,000 since January 2021, but staff levels are roughly flat at 24,000, leading to the opening of 53 housing units “on the backs of existing officers and additional overtime,” supplemented by National Guard troops that will be repurposed later this year.

Another 3,000 inmates are expected in the next couple of years, further exacerbating overtime issues.

Education buildings have opened up, Dixon said, but with security brought over from housing units. The problems are especially acute in North Florida and the Panhandle, with traveling staff brought in to deal with shortages.

Tenure, or lack thereof, is also an issue.

“Fifty-eight percent of our staff have less than two years experience. Seventy percent have less than three years. The inmates have more experience than the officers,” Dixon said.

Post-COVID offenders are more violent than those from before the pandemic, which requires a more “intense” staffing, Dixon said.

And man hours are up 93% since 2019 for hospitalization of inmates, further increasing overtime hours.

“We are at a fork in the road,” Dixon added.


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General Counsel gripes abound in Jacksonville City Council

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Jacksonville’s top lawyer has sided with Mayor Donna Deegan in a spat with the City Council over how much of a raise to give Meridian Waste.

And some members of the legislative branch that confirmed him unanimously less than two years ago now express deep disapproval of General Counsel Michael Fackler, suggesting he’s more aligned with the executive branch.

Deegan vetoed the attempted 29% raise approved on Dec. 10, 2024.

And while the Council overrode that veto, Fackler contends that the ordinance that allows the Council to set rates “violates the principle of separation of powers explicitly stated in the Charter.”

Less than 24 hours after the Council approved a garbage fee increase raising the fee from $151.80 annually to $324 this year and $384 two years from now in an attempt to rectify a fund in deficit for years, many members expressed discomfort with Fackler’s handling of the Meridian morass.

“We have walked into a lawsuit by that vote,” said at-large Republican Ron Salem, saying Meridian would sue for redress.

In response, Fackler (the subject of a no-confidence resolution from Salem and Rory Diamond) noted the “separation of powers” was in discussion in his office since October, well before the vote.

“The message to me was don’t stick my head up” and “offer unsolicited advice,” he said, adding that he did not know if she would veto the bill and was not “authorized to reveal her plans.”

Salem said Fackler told him “the Mayor was (his) client,” and in that context, he wondered who the City Council lawyer was.

“You didn’t advise us,” Salem said.

Fackler offered to provide preemptive legal advice in the future, but it didn’t mollify Salem, who believes Fackler didn’t offer the Council “adequate representation” and that as a result, Meridian could win a lawsuit and several hundred thousand dollars as a result.

Salem also expressed concern that Deegan has line-item veto authority on the budget passed by the Council, saying he’s worried the legislative branch “won’t be controlling the budget.”

He also took issue with Deegan’s claim that Fackler calls “balls and strikes,” saying the lawyer had never sided with the Council; Fackler disputed Salem’s read.

Diamond, a lawyer by training, expressed his own concerns about the “tense” situation, saying he didn’t believe he could do his job “well” without a General Counsel he has “trust” to represent him and not “break confidences.”

“We’re getting live grenades coming at us now that we’re in a lawsuit,” the Beaches Republican said, noting that Fackler had called him once in the last 15 months, a contrast from regular communication from previous General Counsels.

“I don’t reach out affirmatively on every issue,” Fackler said, urging Diamond to see if they could “work together as best (we) can.”

Diamond also suggested “trust wasn’t there” between Fackler and his deputy lawyers.

Southside Republican Joe Carlucci pressed Fackler on how ordinances became law if they didn’t comply with the city charter.

“If the Mayor doesn’t object, then you guys can do whatever you want,” the city’s chief lawyer said, adding that the Mayor in 1976 (Hans Tanzler) signing off on legislation letting the Council set fees wasn’t binding on this one.

“Don’t change the rules of the game,” Carlucci would say later on in the discussion, after colleagues expressed frustration over the lawyer and opinions they believe are tailored to the Mayor’s agenda.

At-large Republican Nick Howland worried about “further breakdown” between the Mayor and City Council in light of Fackler’s opinion.

Northside Republican Mike Gay likewise said he felt the Council had been “hung out to dry” from the lawyer’s novel interpretation of long-standing law.

“This whole thing was a set up,” added Southside Republican Kevin Carrico, the Council Vice President.

Former President Randy White wondered if the Council could appeal to the Florida Attorney General for an opinion on separation of powers. Fackler advised that he didn’t believe they could.

Westside Democrat Dr. Rahman Johnson said it was “almost dysfunctional” that the General Counsel could represent the Mayor’s Office and City Council simultaneously during conflicts like this. Told of the Office of General Counsel process in arriving at decisions, Johnson wondered if the Council would have access to those deliberations where city lawyers figure out strategy and binding opinion.

“I think what I would say is no,” Fackler said, saying the interest was in his lieutenants being “candid” with him.

The hits kept coming.

“I just don’t believe we have an overall General Counsel for the City Council,” said at-large Republican Chris Miller.


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