2021 Annual Report by Hampton Roads Alliance

EVERY BUSINESS NEEDS AN ALLY

HAMPTON ROADS ALLIANCE • 2021 ANNUAL REPORT

President’s Letter

About

Changing the Narrative

Regional Initiatives

Business Development

Lead Generation

Project Pipeline

2021 Announcements

Offshore Wind

Business Expansion & Retention

Marketing & Communications

Business Intelligence

Investor Relations

Governance & Operations

Staff

Financials

Locality Highlights

CONTENTS

From the Chair

FROM THE CHAIR I was honored to serve as Chair for the Hampton Roads Alliance Board in 2021 which was, indeed, a year like no other! While the Board met in-person only once this year, I am grateful to my fellow board members for the energy and enthusiasm that they brought to our virtual gatherings. In 2022, we agreed that alternating meetings will be in person. As an organization, the Alliance is hitting its stride and has done an exceptional job this year, and over the past couple of years, transforming the former HREDA into the Hampton Roads Alliance. In 2021, the Alliance board increased engagement by collaborating with GO Virginia and including James City County, Williamsburg, and York County in the organization. The board also helped to support the burgeoning offshore wind industry and deepened investor relations. The Alliance is now playing a real leadership role in the region and collaborating with several other regional organizations. During the year, we had healthy discussions on a range of topics including the importance of site readiness, concerns about our regional energy supply, and the need for diversity and inclusion in economic development. Along those lines, we had important discussions about how to enhance the diversity of our own board. We also spent a good deal of time strategizing about the American Recovery Plan and the federal infrastructure legislation that Congress passed. It was very interesting to have mayors and business leaders discuss how to best position the region’s infrastructure priorities for federal funding. The staff worked effectively within the budget that we approved for 2021. The 2022 budget is relatively flat in comparison to the 2021 budget after we deduct the one-time grants that have been received from GO Virginia. GO Virginia has provided funding for the development of the 757 Recovery and Resilience Action Framework, our offshore wind program, the robotics study conducted by Virginia Tech and now an assessment of our regional energy supply. The board will be discussing how to approach GO Virginia for even more significant funding. There are a couple of noteworthy items related to the budget. The GO Virginia grant for offshore wind runs out in July. Developing

4 HAMPTON ROADS ALLIANCE

Hampton Roads as a supply chain hub for offshore wind is a generational opportunity that we must seize. The Alliance team developed a plan to raise additional funding to keep the personnel for that program in place. This will be the final year of the threeyear commitment from our investors. To engage our investors, we have several initiatives planned. In March, we will be conducting an investor survey to get a sense of how investors feel about the work of the Alliance; in late spring and early summer, we launch an Investor Feasibility Study; and throughout the year, we will be calling current and potential investors to determine our goals going forward. The most exciting news for the Alliance came late in the year. Effective December 1, 2021, the communities of James City County, Williamsburg and York County joined the Hampton Roads Alliance. These three communities, known around the world as the first permanent English settlement in America, are a vital part of the Hampton Roads region. Together, they have a population of over 150,000 and a wealth of assets. A recent target industry study from Chmura Economics & Analytics found that the Greater Williamsburg area is poised to recruit and retain companies in many of the same industries targeted by the Alliance. This synergy will ensure that the Alliance can continue to build upon its strategic analyses while benefiting from the added expertise and talents offered by these three communities and their respective economic development offices. I am grateful to Doug, who has put together a strong team of both staff and consultants and has been a key player in bringing the public sector into the process. We have great public sector leaders — mayors, city managers, as well as economic development directors — who have made a significant difference through their involvement. I look forward to very strong results in 2022.

Howard P. Kern 2021 Alliance Chair President & CEO, Sentara Healthcare

2021 ANNUAL REPORT 5

Douglas L. Smith President & CEO Hampton Roads Alliance

In 2018, leadership at the Alliance recognized that the Hampton Roads economy was under-performing, ranking near the bottom of the 40 metro regions our size for job growth, wage growth, and GDP. The Alliance hired IBM-Plant Location International to perform a comprehensive site location analysis, assess the region’s current economic development landscape, and provide best practice recommendations for the region’s business environment. The recommendations from that study have guided our actions for the past 30 months. This report details our progress toward implementing the recommendations of IBM related to four headline initiatives: REGIONAL COLLABORATION, BUSINESS DEVELOPMENT, REGIONAL PROMOTION and MARKET INTELLIGENCE. This annual report explains how we have implemented the IBM recommendations with great success. The report also serves as the final chapter in this transition phase at the Alliance. As one economic development director said to me late last year – “I love what you all have done with the organization especially when it comes to Offshore Wind, but what’s next?” This report will tell you where we have been. Let me take a moment and tell you where we are going or “What’s Next.” It frustrates me when organizational leadership changes, and new plans are developed without building upon the work that went before them. We pride ourselves on always building upon the previous work and analysis that has been done here at the Alliance. So, we will build upon the four pillars identified by IBM.

6 HAMPTON ROADS ALLIANCE

PRESIDENT’S LETTER REGIONAL COLLABORATION We will continue to develop the programs identified in the 757 Recovery & Resilience Action Framework. As we continue the implementation phase of the Framework, the Alliance can step back a bit. We will implement those programs for which we have responsibility and allow other regional organizations to drive their own programs. We will continue to play a facilitating role, but that will be less intensive in 2022. We will work with our partners at Reinvent Hampton Roads to drive progress on the three Maritime Innovation Pillars identified in our Build Back Better Regional Competition Application. We will also nurture the relationships we have developed in North Carolina through that process. TARGET INDUSTRY DEVELOPMENT While IBM identified five target industries for our region, we believe those targets are too broad. We will use our Wadley Donovan Gutshaw Office Study and the Boston Consulting Group ‘s target-industry work done for VEDP to bring a tighter focus to our outreach efforts. We anticipate applying more resources toward attracting and growing priority sectors like unmanned systems, robotics, data sciences, cybersecurity, and renewable energy. We will engage the local businesses involved in those sectors to guide us and we will work with our universities to better understand these industries. We will do all of this with the support of our lead generation firm, PM&P. Our approach to lead generation was fragmented and too reliant on VEDP. We are very pleased with the discipline that PM&P brings to their work. Our deeper collaboration with PM&P coupled with our extensive offshore wind industry development efforts have had a significant impact on our project pipeline. We DOUBLED our number of new project leads in 2021 compared to 2020 and 2019. Additionally, the proportion of project leads generated through Alliance activities was significantly higher than VEDP-generated leads for the first time in many years. PROMOTING HAMPTON ROADS With the support of a new agency, Hampton Roads-based SWAY, we have developed a very strong marketing program with an effective social media campaign using the “Every Business Needs an Ally” tagline. That program is the theme of this report and is explained in more detail inside. Every regional study concludes that we must have a regional marketing campaign to help out-of-region business leaders,

site consultants, and travelers understand who we are and what Hampton Roads offers. We will work with city managers and county administrators to develop a regional marketing campaign proposal. MARKET INTELLIGENCE The business intelligence support we provide to our localities and investors is valued and appreciated. In 2022 we intend to accelerate our efforts around site readiness and energy. Without significant development-ready sites, we are simply not in the running for many of the projects that are in play. The termination of the Atlantic Coast Pipeline project dealt a real blow to this region. VEDP identified 54 sites in Hampton Roads that were ACP dependent for development. We received a GO Virginia grant that will allow us to hire a consultant in February to conduct a regional energy assessment. Understanding our region’s energy needs and the portfolio of potential solutions will be critical to our economic future. Finally, everything we do will be impacted by our ability to develop, recruit, and retain talent. We believe there is a narrow role for the Alliance in talent recruitment for our high growth industries. We are working closely with Shawn Avery and the Hampton Roads Workforce Council to define exactly what that role should be going forward. I want to thank our 2021 Chairman, Howard Kern. Chairman Kern’s insight and guidance would have been valuable any year, however having the CEO of the largest healthcare system in the region as our Vice-Chair in 2020 and Chair in 2021 was a stroke of good fortune as we all navigated through the uncertainty forced upon us by the COVID-19 pandemic. I hope our investors will be pleased with this annual report. Please know we will take another big step forward in 2022. We will be conducting an investor survey in March to solicit your feedback and gauge your satisfaction. Please take that survey and give us your suggestions as to how we can be better delivering “What’s Next” for you. Thank you for your ongoing support!

2021 ANNUAL REPORT 7

ABOUT The Hampton Roads Alliance is the leading regional economic development organization for Hampton Roads, Virginia. It is a nonprofit, public-private partnership representing 14 localities and nearly 70 private investors. With the support of its community and business partners, the Alliance serves as a single point of contact to assist domestic and international companies who are considering Hampton Roads for expansion or investment.

MISSION

VISION

VALUES

The Hampton Roads Alliance works collaboratively to lead the 757 region in attracting, growing and retaining companies and talent to create a more resilient, inclusive and equitable region of choice.

To be the catalytic partner that drives economic empowerment for the region, companies, organizations and people who call the 757 home.

An EMPOWERING environment. Instilling confidence and encouragement.

8 HAMPTON ROADS ALLIANCE

A COLLABORATIVE nature. Fostering working together as a team and with our partners. DIVERSITY in thinking. Supporting unique perspectives and thought processes. INTEGRITY in all we do. Earning the trust of the business community to represent our region.

PUBLIC INVESTORS JAMES CITY COUNTY

WILLIAMSBURG

YORK COUNTY

NEWPORT NEWS

POQUOSON

HAMPTON

ISLE OF WIGHT NORFOLK

PORTSMOUTH SOUTHAMPTON COUNTY

VIRGINIA BEACH

SUFFOLK FRANKLIN

CHESAPEAKE

2021 ANNUAL REPORT 9

CHANGING THE NARRATIVE In 2018, the Alliance hired IBM-Plant Location International to perform a comprehensive site location analysis, assess the region’s current economic development landscape, and provide best practice recommendations for the region’s business environment. While this analysis uncovered several competitive strengths in multiple sectors, it also identified several weaknesses which need to be addressed to elevate Hampton Roads’ business advantages. Headwinds facing Hampton Roads in 2018: • Under-performing and falling further behind peer and competitor regions. • Sluggish job growth that has hollowed out the Hampton Roads labor pool. • Close to the bottom on overall job growth and change in prosperity among top 100 metros. • A lower household income today than 20 years ago. The report concluded that the region would continue to demonstrate subpar performance without intervention at a regional scale. It also outlined specific steps needed to enhance economic development in Hampton Roads.

PRIOR ALLIANCE FOCUS

• Marketing and promotion for inward investment • Lead generation • Business facilitation • Research and analysis ALLIANCE DIRECTION GOING FORWARD

• Proactive targeted marketing of Hampton Roads to investors and companies (in collaboration with VEDP and local EDOs), coupled with business facilitation and support. • Acting as prime point of contact for existing and prospective companies and coordinator for promotion and support activities for other organizations, service companies, and stakeholders. • Fostering the indigenous growth of companies through international promotion of capabilities. • Facilitating partnerships between inward and local companies and reinforcing regional efforts with industry-university collaboration for research, skills, and cluster development. • Strong policy advocacy towards cities, region, and Commonwealth government authorities. • Supporting after care and investor/cluster development program.

IBM HEADLINE INITIATIVES

Since the study, the Alliance has committed to repositioning itself as the regional nexus for four key initiatives outlined by IBM:

1. ADVANCE COMPETITIVENESS PRIORITIES THROUGH REGIONAL COLLABORATION 2. IMPLEMENT PROCESS IMPROVEMENTS TO ADVANCE TARGET INDUSTRY DEVELOPMENT 3. PROMOTE HAMPTON ROADS THROUGH STRATEGIC MEDIA AND DIGITAL TECHNOLOGY 4. STRENGTHEN REGIONAL COMPETITIVENESS BY ORGANIZING AROUND MARKET INTELLIGENCE 10 HAMPTON ROADS ALLIANCE

The Alliance is diving into 2022 with a foundation of major progress on all four of the IBM headline initiatives. Transforming HREDA into the new Alliance has impelled major changes in the organization, stimulating regional cooperation, powerful regional marketing, and intensified research into boosting the region’s economic competitiveness. The Alliance will continue to refine the playbook for regional economic development that began with the IBM-PLI study. The following pages outline the organization’s progress, along with plans to continue evolving and innovating to outpace the COVID-19 economic crisis faster and more effectively than ever.

“BEFORE” HEADLINE

“HAMPTON ROADS FINALLY HAS MORE JOBS THAN BEFORE THE RECESSION, BUT ECONOMY STILL LAGS BEHIND NATION”

— VIRGINIAN-PILOT, JANUARY 30, 2019

Hampton Roads will become:

757 = ONE REGION

“AFTER” HEADLINE INNOVATION HUB: ROBOTICS & UNMANNED SYSTEMS BUSINESS READY SITES LEADER

“WITH GOAL OF FULL ECONOMIC REVIVAL, HAMPTON ROADS BUSINESS ORGANIZATIONS UNVEIL AMBITIOUS RECOVERY PLAN” — VIRGINIAN-PILOT, MARCH 22, 2021

AMERICA’S OFFSHORE WIND HUB

2021 ANNUAL REPORT 11

REGIONAL INITIATIVES

IBM PRIORITY #1: ADVANCE COMPETITIVENESS PRIORITIES THROUGH REGIONAL COLLABORATION An important theme throughout the IBM-PLI study was the need for more regional collaboration. At the time, the study noted that “current economic development efforts in Hampton Roads suffer from fragmentation and lack of coordination in regional efforts.” In order to combat this fragmentation, IBM-PLI recommended creating a “formalized structure” for collaboration and knowledge sharing, accompanied by more effective communication of said structure. The COVID-19 pandemic bore many challenges, but also afforded the region the opportunity to undergird their processes with IBM-PLI’s recommendations. The 757 Recovery and Resilience Action Framework is one such pillar, alongside the plans proposed as part of the Build Back Better initiative. The study also recommended maintaining strong relationships with other state and local economic development agencies in the Commonwealth, which Alliance staff accomplished through strategic partnerships with VEDP and VEDA.

Alliance President & CEO Doug Smith presents the 757 Recovery & Resilience Action Framework at the State of the Region. 12 HAMPTON ROADS ALLIANCE

757 RECOVERY & RESILIENCE ACTION FRAMEWORK

The Alliance, along with regional leaders, organizations, and citizens, continued collaborative work on regional recovery and resilience by creating the 757 Recovery & Resilience Action Framework (“the Framework”). The Framework was designed as an adaptable blueprint, a regional playbook, to help the Hampton Roads economy recover faster from the COVID-19 pandemic and build resiliency for future recoveries. Alliance staff performed a broad assessment of economic conditions revealing that the Hampton Roads region fared better than most metros of similar size during the height of the pandemic. However, as the nation’s economy begins to recover, the region’s recovery is slowing, which will continue without intervention. The Framework is an accumulation of many regional efforts and economic development priorities. Upgraded programs and newly created ones are interrupting the region’s current trajectory and recalibrating it for growth. The Framework seeks to advance five strategic imperatives: 1) Build Regional Unity 2) Grow New Jobs 3) Grow, Retain, & Attract Talent 4) Build Resiliency 5) Advance Regional Infrastructure

757framework.com is the digital home of the Framework. The site provides an interactive look at the facets of the framework and features a dashboard to monitor progress on regional economic indicators and key performance indicators for each of the 30 programs. Additional highlights throughout the year included: • 757+ regional leaders signed up to be “757 Champions” or advocates for the progress of the Framework and our region. • 757 Proud, a regional pride building organization, continues work on unifying next gen organizations and unveiled a “Did You Know” game designed to educate citizens on fun facts about Hampton Roads. • Alliance CEO, Doug Smith, and other regional leaders reported progress at Old Dominion University’s State of the Region address. • Regional leaders began to develop the Minority Supplier Resource Center, a comprehensive Minority Supplier support ecosystem facilitated in an interactive online platform, planned for launch in 2022. 2021 ANNUAL REPORT 13

BUILD BACK BETTER COALITION

As part of the COVID-19 relief focused American Rescue Plan, the United States Economic Development Administration (EDA) announced the “Build Back Better Challenge.” The Challenge promises a transformational investment for 20-30 regions across the country that want to revitalize their economies. Eligible applicants were invited to form regional coalitions to carry out three to eight distinct but related projects in their region in coordination with industry and community partners. The projects must be aligned around a holistic vision to build and scale a strategic industry cluster. The Alliance worked with lead applicant Reinvent Hampton Roads and over 20 other regional partners, as well peer organizations representing 11 counties in North Carolina, to submit a proposal to further develop the Maritime Innovation Cluster as a catalyst for equitable economic development.

INFRASTRUCTURE COALITION

To position the region to obtain greater funding for much-needed infrastructure improvements , the Alliance participated in the Hampton Roads Infrastructure Coalition (HRIC), alongside Reinvent Hampton Roads, the Hampton Roads Planning District Commission, Hampton Roads Transportation Planning Organization, Hampton Roads Business Roundtable, Hampton Roads Workforce Council, the Virginia Port Authority, the Virginia Maritime Association, and RVA-757 Connects with support from eight other regional organizations. The group submitted a high priority list of regionally-based, critical infrastructure projects designed and approved by all 17 localities as part of the FY2022 appropriations process and/or the President’s American Recovery Act. The HRIC’s initiatives focus on water resources, surface transportation, renewable energy, broadband, education, and housing.

14 HAMPTON ROADS ALLIANCE

STRATEGIC PARTNERSHIPS

VIRGINIA ECONOMIC DEVELOPERS ASSOCIATION The Alliance played a large role in championing economic development and collaboration with partners around the Commonwealth through its work with the Virginia Economic Developers Association (VEDA). Alliance Vice President of Business Intelligence & Communications, Steve Harrison, served as President of VEDA for 2021, helping to elevate the Alliance’s position within the economic development community and provide a platform to showcase Hampton Roads. The fall conference, co-chaired by Vice President of Business Development, Amy Jordan, was held in Norfolk and focused on industries vital to the Alliance’s work: offshore wind and unmanned systems. Alliance President & CEO, Doug Smith, opened the conference and introduced Norfolk Mayor Kenny Alexander. Next year, Harrison will continue on the VEDA Board as Immediate Past President, while Vice President of Business Retention & Expansion, Toi Hunter, has been elected to become a Board Director.

REINVENT HAMPTON ROADS The Alliance works closely with Reinvent Hampton Roads, a 501(c) (3) community leadership initiative focused on generating highpaying, satisfying jobs to underpin a vibrant economy. Notable projects include the 757 Recovery & Resilience Action Framework and the Build Back Better regional coalition. In 2021, the Alliance and Reinvent Hampton Roads co-located, deepening the rapport between the two organizations.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP Also in alignment with the IBM recommendations, the Alliance continued to strengthen its relationship with the Virginia Economic Development Partnership (VEDP). Staff met with VEDP leadership quarterly to discuss key initiatives and solicit feedback on the organization’s business development and marketing efforts. VEDP also assisted the Alliance and other regional organizations around the Commonwealth with the Build Back Better challenge.

TOP: Steve Harrison, VEDA 2021 President

Further strengthening the Alliance’s relationship with VEDP, is the appointment of Amy Parkhurst, Senior Vice President of Business Development, to the Advisory Committee on Business Development and Marketing. As a member of this committee serving a 4-year term, Amy’s role is to advise the VEDP Board on all matters relating to business development and marketing and make recommendations as requested.

BOTTOM: Amy Jordan, VEDA Fall Conference Chair, moderates panel on Unmanned and Autonomous Systems. 2021 ANNUAL REPORT 15

BUSINESS DEVELOPMENT

IBM PRIORITY #2: IMPLEMENT PROCESS IMPROVEMENTS TO ADVANCE TARGET INDUSTRY DEVELOPMENT

16 HAMPTON ROADS ALLIANCE

The IBM-PLI study recommended ways to streamline the Alliance’s business development functions, including improved processes to develop target industries. The Alliance realigned and retooled its business development processes to better understand and serve companies in one of the Alliance’s target industries—offshore wind. Chief among these initiatives is creating an offshore wind supply chain hub. The Business Development team also renewed their focus on understanding industries deemed well suited for Hampton Roads by both the IBM study and the Wadley Donovan Gutshaw study. This analysis informed the team’s activities throughout the year, from virtual meetings to innovative events. While COVID-19 continued to restrict the world, the Alliance business development team adapted their strategy, as in-person events pivoted to virtual or scaled back formats. For example, The Health Information Management Systems Symposium in Las Vegas in June welcomed 19,000 attendees in 2021 compared to a historical average of 65,000. Similarly, a call trip to the Northeast, which would have typically included 10-12 meetings, produced only four. Fighting against these odds, the Alliance’s lead generation team continued to pursue valuable conversations with prospects, presenting the opportunity for follow-up meetings during future trips. The team also brainstormed unique opportunities to propel the mission at home. Alongside the Center for Innovative Technology (CIT) and the Virginia Institute of Spaceflight and Autonomy (VISAODU), the Alliance sponsored the Unmanned Systems UxS Industry Engagement Summit & Leadership Reception in July at the Half Moone Cruise and Celebration Center in Norfolk. Approximately 125 industry professionals attended this event to hear from Virginia’s Secretary of Public Safety and Homeland Security, Brian Moran and Shawn Talmadge, Deputy Secretary and Governor’s Homeland Security Advisor. Attendees learned the results of the Hampton Roads Maritime Safety and Security Workshop and heard about the upcoming Hampton Roads UxS Playbook. Hampton Roads is largely regarded as a region that will play a pivotal role in the development of technologies and services to assist public safety and enhance corporate use and innovation of UxS systems. In 2021, The Alliance’s business recruitment staff participated in three digital events: the Site Selector Guild Virtual Table Talks in March and April, as well as Enterprise Connect in September. Given the constraints on travel due to the COVID-19 pandemic, the Alliance used technology to go places where health measures prevented staff from traveling. Through geofencing, or advertising within certain boundaries, the Alliance virtually marketed to conferences related to our target industries and in markets where those industries are clustered (Locations reached via geofencing are identified by green markers on the domestic map displayed on the above right).

The Alliance’s domestic business development staff held 142 corporate appointments while attending the following in-person conferences, trade shows and marketing missions in 2021 (identified by yellow markets on the above map): • Site Selectors Guild - Orlando, FL • Area Development’s Consultant Forum - Richmond, VA • Health Information and Management Systems Society Conference - Las Vegas, NV • Business Network for Offshore Wind International Partnering Forum - Richmond, VA • Sea Air Space - National Harbor, MD • Domestic Call Trip & WINDPOWER Conference - Providence RI and Boston, MA • Domestic Call Trip - New York City, NY & Boston, MA • International Call Trip: Advanced Manufacturing & Innovative Technologies Track - Germany • International Call Trip: Offshore Wind Track - Belgium, Germany & the Netherlands • Offshore Wind Energy Conference- Amsterdam • Business Facilities LiveXchange Conference -Tucson , AZ • International Work Boat Show - New Orleans, LA • ECONOMIX - Phoenix, AZ • Area Development Forum - Tampa, FL 2021 ANNUAL REPORT 17

LEAD GENERATION A critical component of any strong economic development strategy is lead generation. Typically, this is a labor and time intensive activity that requires the help of outside contractors who raise awareness about Hampton Roads as a region of choice and “fill the funnel” with meaningful leads. Over the years, the Alliance has hired various lead generation firms for a variety of undertakings. One of these firms, Frankfurt-based PM&P, rose to the top for the effectiveness and thoughtfulness of their outreach efforts. The Alliance recognized PM&P’s ability to understand the region thoroughly and deploy strategic outreach to companies that have the potential to expand into Hampton Roads. Because of these attributes, the Alliance decided to expand its relationship with PM&P in 2021. This included hiring PM&P to coordinate all lead generation endeavors, both in Europe and in North America. The 2021 efforts built upon previous work, which included handling European outreach for the previous three years, conducting an offshore wind business development strategic plan, and founding an official Hampton Roads Alliance office in Frankfurt, Germany. PM&P staff effectively serve as an extension of the Alliance team, including using Alliance-branded business cards and email addresses, as well as showcasing an official Alliance flag and signage at the headquarters office in Frankfurt.

Over the course of 2021, the PM&P team deployed communication to a total of 32,744 companies in target industries through direct marketing and trade shows. This broad outreach led to 685 qualified meetings and 801 requests from companies to reengage at a later date. In 2021, PM&P approached 13,900 companies from defined target sectors in connection with participation in 27 trade shows, resulting in 240 qualified meetings. Furthermore, 286 additional companies with concrete potential for mid- and long-term expansion plans requested to be contacted again in the future. The 2021 partnership with PM&P culminated in multiple travel engagements during Q4 2021. Alliance and PM&P staff traveled to New York and Boston to meet with companies and site selectors primarily involved in the target industries recommended by the 2020 WDG study, including healthcare back-office and financial services. Additionally, staff led a concurrent two-track mission to Europe. The first track focused on innovative advanced manufacturing companies in Germany, while the second track focused on offshore wind and included company visits in Belgium, Germany, and the Netherlands. The mission also included a number of meetings at the Offshore Energy Exhibition and Conference in Amsterdam. Representatives from Chesapeake, Hampton, Norfolk, and Virginia Beach joined the Alliance on these missions.

32,744 COMPANIES CONTACTED 685 MEETINGS HELD 801 COMPANIES REQUESTED FOLLOW UP INFORMATION DOMESTIC

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INTERNATIONAL

2021 ANNUAL REPORT 19

PROJECT PIPELINE

The strong project pipeline built over the last few years led to another banner year for new project announcements. The Alliance’s efforts to support both attraction and expansion projects resulted in over a quarter billion dollars in new capital investment announced. PROJECTS ANNOUNCED

JOBS CREATED CAPITAL INVESTMENT

2021

2020

2019

800+

2,100+

265

$280M+

$330M+

$83M+

The expansion of PM&P’s lead generation activities, coupled with the offshore wind industry development activities, resulted in new project leads doubling compared to the previous two years. Additionally, many companies that had been unable to make travel arrangements to visit the region in 2020 were finally able to tour Hampton Roads sites in person. PROSPECT VISITS NEW PROJECTS

2021

2020

2019

119

For the first time in years, the proportion of project leads sourced through the Alliance’s efforts greatly exceeded the percentage of leads generated through VEDP. Similar to the drastic increase in the overall number of projects in 2021, this was primarily a result of the expanded relationship with PM&P and the ongoing efforts to attract the offshore wind industry. SOURCED BY THE ALLIANCE SOURCED BY VEDP

20 HAMPTON ROADS ALLIANCE

2021

2020

2019

65%

44%

47%

35%

56%

53%

2021 NEW PROJECTS BY INDUSTRY The Alliance continues to focus its efforts on supporting projects within its target industries. The chart below compares the number of projects in each target industry in 2021 and 2020, demonstrating that the expanded lead generation efforts and focus on offshore wind resulted in doubling the number of projects from 2020 to 2021.

ADVANCED MANUFACTURING BUSINESS & SHARED SERVICES DISTRIBUTION & LOGISTICS FOOD & BEVERAGE PROCESSING INFORMATION TECHNOLOGY OFFSHORE WIND

2021

2020

(31%)

(42%)

(3%)

(5%)

(3%)

(10%)

(4%)

(19%)

(5%)

(13%)

(48%)

(6%)

Note: Remaining 7% of projects were in non-target industries. 2021 ANNUAL REPORT 21

2021 ANNOUNCEMENTS CMA CGM GROUP NORFOLK

In February, CMA CGM, one of the largest shipping and logistics companies in the world, announced plans to increase its presence in Norfolk and throughout Virginia. The expansion in Hampton Roads will encompass a $36 MILLION investment to enhance the company’s Norfolk headquarters. The Alliance worked with the City of Norfolk and the Virginia Economic Development Partnership to help secure this expansion.

KATOEN NATIE NORFOLK

In April, Katoen Natie Norfolk Inc., a plastics and polymers warehousing and distribution company, announced it will invest $61 MILLION to expand its freight distribution center in the City of Norfolk. The company will add a 243,000 sq. ft. warehouse and rail facility to its operation, creating 35 NEW JOBS. The Alliance, alongside Virginia Economic Development Partnership, assisted Katoen Natie with its decision to locate in Norfolk over ten years ago.

SUNNY FARMS, LLC VIRGINIA BEACH

Startup Sunny Farms, LLC announced in April that it will invest $59.6 MILLION to create a state-ofthe-art hydroponic greenhouse for production, workforce development, and research in the City of Virginia Beach. The Alliance worked with the Virginia Economic Development Partnership, the Virginia Department of Agriculture, the City of Virginia Beach, and Virginia Tech on this project, which will generate 155 NEW JOBS.

BREEZE AIRWAYS NORFOLK

In May, Breeze Airways, a new U.S.- based airline providing low-cost, nonstop service to mid-size markets, announced that it will invest $5.2 MILLION to establish an operations center in the City of Norfolk, producing 116 NEW JOBS. Norfolk will be one of Breeze Airways’ first five locations in the U.S. Initial routes will fly to Charleston, Tampa, New Orleans, Columbus, Hartford, Pittsburgh, and Providence. The Alliance worked with numerous state and local partners to secure the project for Hampton Roads. In December, Breeze Airways announced it will be adding direct service flights to New York/Long Island and Palm Beach in early 2022.

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VRC METAL SYSTEMS CHESAPEAKE

VRC Metal Systems, in collaboration with Mid-Atlantic Tech Bridge, U.S. Navy, and Hampton Roads Maritime Collaborative for Growth & Innovation, announced in May that they will establish an industrial facility in Chesapeake, creating up to 10 NEW JOBS for the Hampton Roads region. VRC Metal Systems expanded to Hampton Roads from South Dakota as the first successful Navy Mid-Atlantic Tech Bridge company. The Alliance worked closely with the VRC team to identify the best location and establish operations in the region.

GLOBAL CONCENTRATE FRANKLIN

Global Concentrate, a New Jersey-based supplier for traditional and organic fruit and vegetable juice concentrates, purees, and puree concentrates announced in September that it will be purchasing approximately 170 acres of industrial land in the Pretlow Industrial Park in Franklin to establish their largest processing operation in the U.S. The company will invest a minimum of $121 MILLION, creating a total of 50 NEW JOBS within 36 months.

SVT ROBOTICS NORFOLK

In August, SVT Robotics, a Norfolk-based robotic software company, announced it will be adding 37 NEW JOBS and investing $101K to construct a laboratory to house robotic equipment used to demonstrate its proprietary SOFTBOT™ Platform’s capabilities for clients and industrial robotic manufacturers. SVT’s technology simplifies and accelerates the deployment of industrial robotics. SVT Robotics, launched by local entrepreneurs a little over three years ago, recently raised $25 MILLION in venture backed funding.

SIEMENS GAMESA PORTSMOUTH

Siemens Gamesa Renewable Energy (SGRE) reached an agreement with the Port of Virginia in October 2021 to lease more than 80 acres at the Portsmouth Marine Terminal for the establishment of the first offshore wind turbine blade production facility in the United States, propelling construction of the country’s largest new renewable energy project. Dominion Energy had previously selected SGRE as its partner for the energy generation project 27 miles off the coast of Virginia Beach. The facility, combined with its operations and maintenance activities, will create a total of 310 new jobs, of which roughly 50 will be service jobs to support the Coastal Virginia Offshore Wind Project. The project represents a total cost of $200 million, including over $80 million in investments for buildings and equipment at the Portsmouth Marine Terminal. The Commonwealth of Virginia will support the project through MEI-approved Virginia Public Building Authority bonds of up to $17.1 million to support infrastructure improvements and site preparation required for the construction of the facility. This project is the first critical domino to fall in determining where the offshore wind supply chain hub will land along the East Coast. Credit for this announcement goes to the Alliance’s partners at the Port of Virginia, as they not only recruited SGRE but also reimagined what the Portsmouth Marine Terminal could be in the era of offshore wind. In addition, Dominion Energy’s partnership with SGRE for the Coastal Virginia Offshore Wind project attracted the attention of this worldwide leader in green energy and made much of the region’s success to date possible. The Alliance congratulates the Port of Virginia, Dominion Energy, the Virginia Economic Development Partnership, the Virginia Department of Energy, and the City of Portsmouth on this monumental announcement. 2021 ANNUAL REPORT 23

In 2021, the Alliance continued to make significant progress in its efforts to establish Hampton Roads as a hub of the U.S. offshore wind industry. The Alliance opened the Virginia Offshore Wind Landing, completed a regional supply chain study, continued its series of business readiness and matchmaking activities, hosted high-level elected leaders and officials interested in learning more about Virginia’s leadership to advance the industry, held a VIP weekend that attracted leading national and international companies to Hampton Roads, and conducted a successful trade mission to Europe. Most importantly, the year culminated with Siemens Gamesa Renewable Energy’s decision to build an offshore wind blade finishing facility in Portsmouth. This decision is an important milestone for the industry and for Hampton Roads. It will help anchor the region as a supply chain hub and bring the potential for additional capital investment and job creation. Overall, the Alliance’s activities have driven the advancement of the offshore wind supply chain in the 757 and created the potential for long-term impacts that will benefit businesses, workers, and the general development of the industry in the U.S.

24 HAMPTON ROADS ALLIANCE

OFFSHORE WIND In May, the Hampton Roads Alliance, Virginia Department of Energy, and ODU’s OpenSeas Technology Innovation Hub opened the Virginia Offshore Wind Landing. The Landing is a collaborative space where companies interested in establishing a presence in Hampton Roads can become part of the region’s maritime network and growing offshore wind industry. It provides a platform for companies to work, connect, and access resources. The Landing’s purpose is to develop a cluster of offshore wind companies and cultivate Virginia as an innovation and supply chain hub of the offshore wind industry. The Landing has distinguished Hampton Roads from other regions vying to become the hub of the U.S. offshore wind industry by offering companies a risk-free point of entry into the nation’s largest maritime ecosystem. Starting with eight founding member companies, the Landing has grown to 20 members representing a cross section of companies that will be leading offshore wind energy and supply chain development in the U.S.

VIRGINIA OFFSHORE WIND LANDING MEMBERS Atlantic Wind Transfers Avangrid Renewables AZCO Burns & McDonnell Business Network for Offshore Wind

Canal Barge Crowley Dominion Energy Edison Chouest Offshore Grand Isle Shipyard Manora Logistics Marmen Welcon

Metal Shark Nexans Sabik Offshore Seajacks Seaway 7 Smulders Ventower Xodus

Industry leaders believe the Landing is a significant asset for developing the offshore wind supply chain in Hampton Roads:

“THE OPENING OF THE VIRGINIA OFFSHORE WIND LANDING PROVIDES BUSINESSES COMING TO HAMPTON ROADS A VALUABLE, NO COST WORKSPACE WITH EASY ACCESS TO ORGANIZATIONS FOCUSED ON ESTABLISHING THE REGION AS THE LEADING DOMESTIC SUPPLY CHAIN BASE FOR THE GROWING OFFSHORE WIND INDUSTRY.” –JOSHUA BENNETT, DOMINION ENERGY. “THE VIRGINIA OFFSHORE WIND LANDING IS ANOTHER EXAMPLE OF THE ALLIANCE’S CONTINUED COMMITMENT TO THE OFFSHORE WIND INDUSTRY. AVANGRID RENEWABLES, WITH OUR KITTY HAWK OFFSHORE WIND PROJECT, IS PROUD TO BE A FOUNDING MEMBER OF ‘THE LANDING’ THAT WILL PROVIDE A COLLABORATIVE WORKSPACE FOR THE INDUSTRY AS A MID-ATLANTIC HUB.” –MARCUS CROSS, AVANGRID RENEWABLES In 2022, the Alliance aims to increase membership in the Landing and conduct educational and networking events to connect members to each other and the local supply chain.

2021 ANNUAL REPORT 25

OFFSHORE WIND EDUCATION & MATCHMAKING ACTIVITIES

HAMPTON ROADS OFFSHORE WIND SUPPLY CHAIN ANALYSIS

The Alliance partnered with the renewable energy consultancy Xodus Group to conduct a major offshore wind supply chain study for the Hampton Roads region. The project included a supply chain assessment and gap analysis, cataloged regional companies that can participate in the offshore wind supply chain, classified offshore wind job roles and training requirements, identified opportunity sectors within the industry, and provided a set of recommendations to form Hampton Roads into the nucleus of the mid-Atlantic offshore wind industry. Through 2022 and beyond, the Alliance will work with its partners to implement key recommendations from the study. One primary recommendation has already been achieved with the attraction of offshore wind OEM Siemens Gamesa to the region. The Alliance’s partnership with Xodus Group brings global expertise to the offshore wind supply chain development initiative. Jeff Tingley, Head of Strategy and Market Development at Xodus Group said of the study “The size of the U.S. offshore wind market creates a need for the development of an entire new industry to the U.S., and Hampton Roads will play a major role in its development. This work aims to help both the industry and Hampton Roads improve efficiency and reduce costs as the scale of development grows, while helping [the region] further realize the economic benefits associated with offshore wind. With an aggressive strategy to ramp up offshore wind activity, this is a fantastic opportunity to create a sustainable local supply chain which can deliver a responsible energy future.”

26 HAMPTON ROADS ALLIANCE

In 2020, the Alliance and Dominion Energy began a partnership to educate Virginia businesses about supply chain opportunities associated with Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project and the East Coast offshore wind industry. This partnership flourished in 2021 with a series of monthly events called the CVOW Friday Forums. CVOW Friday Forum topics have included an overview of the CVOW project by Dominion leadership, a primer on offshore wind project development, guidance on successfully participating in Dominion Energy’s procurement process, an overview of workforce development resources, and an in-person event for regional businesses to meet representatives from the Alliance and its offshore wind partners. Approximately 1,300 people registered to attend the CVOW Friday Forums in 2021 and recordings of the Forums are available on the Alliance YouTube channel. To help companies apply knowledge gleaned through events like the Friday Forums and win business in the industry, the Alliance organized matchmaking events with many major offshore wind companies. In May, the Alliance and the Virginia Maritime Association hosted two supplier engagement events with Nexans and Seaway 7, two global offshore wind companies that supply and install cables and turbine foundations. Nexans and Seaway 7 presented information about their companies, scopes of work they could source in Hampton Roads, and how local companies can become one of their subcontractors. Over 100 companies participated in the events. Participants were invited to arrange follow-up meetings with the Nexans’ and Seaway 7’s procurement teams to explore further engagement with the companies. Similarly, in August, the Alliance hosted a matchmaking event to facilitate connections between leading offshore wind companies and potential supply chain partners in Virginia. The event consisted of four rotations of meetings pairing offshore wind companies with local suppliers. The event was an important step in coupling the needs of offshore wind companies with supply chain solutions in Virginia. Eleven offshore wind developers and Tier 1 suppliers and 29 companies from Virginia participated in the event. In 2022, the Alliance will continue to help connect local businesses to offshore wind opportunities. The Alliance and Dominion Energy are planning a series of engagement events for Virginia businesses to learn about subcontracting opportunities with the companies that will be building and installing Dominion’s CVOW project.

VIP VISITS

In July, the Alliance helped host a visit to the region from Interior Secretary Deb Haaland. Secretary Haaland, accompanied by U.S. Senator Tim Kaine, Governor Ralph Northam, and Bureau of Ocean Energy Management Director Amanda Lefton, met with key offshore wind stakeholders from the Commonwealth to discuss job creation opportunities and tour the Hampton Roads harbor. As part of the event, Senator Kaine and Director Lefton held a discussion at the Virginia Offshore Wind Landing about regional efforts to generate a skilled and diverse offshore wind workforce.

“THE DEMAND FOR OFFSHORE WIND ENERGY HAS NEVER BEEN GREATER... TODAY’S TOUR AND MEETINGS WERE A GREAT CHANCE TO LEARN ABOUT THE COMMONWEALTH’S CONTINUED LEADERSHIP ROLE IN DEVELOPING THE OFFSHORE WIND INDUSTRY AND ATTRACTING AND SUPPORTING THE DOMESTIC SUPPLY CHAIN.” - SECRETARY DEB HAALAND, U.S. DEPT. OF INTERIOR

Over the year, Alliance President and CEO, Doug Smith, participated in several other visits to the region from high-ranking federal officials to discuss the assets of Hampton Roads and opportunities arising from offshore wind. These included a roundtable discussion with U.S. Senator Mark Warner and a meeting with White House National Climate Advisor Gina McCarthy. The Alliance was also involved with the announcement in late October that Siemens Gamesa Renewable Energy will establish the first offshore wind turbine blade facility in the United States at the Portsmouth Marine Terminal. U.S. Energy Secretary Jennifer Granholm, U.S. Senators Warner and Kaine, and Governor Northam were all present to mark the announcement of this important investment that will cement Hampton Roads as a leader of the U.S. offshore wind industry. 2021 ANNUAL REPORT 27

VIP WELCOME WEEKEND 28 HAMPTON ROADS ALLIANCE

At the end of August, the Alliance hosted a multi-day visit to the region for sixteen offshore wind companies and attended the Business Network for Offshore Wind’s International Partnering Forum in Richmond. The VIP Weekend was coordinated by the Alliance, Virginia Energy, and 19 additional supporting sponsors. Three offshore wind developers and a variety of companies leading the progress of the offshore wind supply chain in the U.S. convened for several networking receptions, a harbor tour, panel discussions with local maritime and workforce development professionals, and a supplier matchmaking session with Virginia businesses. Governor Ralph Northam, Congressman Bobby Scott, and Congresswoman Elaine Luria made remarks in support of the industry’s development in Virginia at a networking reception, putting a bow on the success of the weekend. The weekend gave industry decision-makers the opportunity to see the region’s assets in person, connect with local partners, and learn more about Virginia’s vision as a leader in offshore wind. It also served as a testament to the collaborative effort across all levels of government and between the public and private sector that has been the hallmark of Virginia’s effort to establish Hampton Roads and Virginia as the Mid-Atlantic hub of the offshore wind industry.

“I REALLY ENJOYED THE ACTIVITIES AS THEY WERE BOTH INFORMATIVE AND RELAXING. I CERTAINLY HAVE A BETTER VIEW ON THE POSSIBILITIES OF YOUR REGION AND WE AS SMULDERS LOOK FORWARD TO FURTHER EXAMINE HOW THE ECONOMIC ACTIVITY IN THE AREA CAN FIT IN OUR FUTURE PLANS FOR THE US.” — ERIC FINÉ, SMULDERS “I WAS IMPRESSED BY YOUR COMMITMENT TO OFFSHORE WIND AND THE LEVEL OF COLLABORATION ACROSS AGENCIES AND INDUSTRIES. COLLABORATION IS NOT ALWAYS EASY TO FACILITATE AT THE STATE, LOCAL AND REGIONAL LEVEL BUT THE ALLIANCE SEEMS TO HAVE ALREADY MASTERED THIS. THE NETWORKING EVENTS WERE ESPECIALLY ENJOYABLE AND MADE IT EASY TO MEET AND INTERACT WITH VIRGINIA REPRESENTATIVES AND MEMBERS OF THE SUPPLY CHAIN. I LEFT WITH MANY NEW FRIENDS AND BUSINESS ASSOCIATES IMPORTANT TO MOVING OUR PROJECTS FORWARD AND MAKING VA PART OF OUR REGIONAL SUPPLY CHAIN!” –ANNE MARIE MCSHEA, OCEAN WINDS

The VIP Weekend was planned to lead into the Business Network for Offshore Wind’s International Partnering Forum (IPF), the largest offshore wind conference in North America. The Alliance played a key role in the planning, design, and staffing of the trade show’s signature tri-state booth – a collaboration between the States of Virginia, North Carolina, and Maryland. At the center of the show, the booth represented the three states’ SMART POWER agreement to work together to promote offshore wind energy generation and its accompanying supply chain and workforce. IPF was also a productive business development event. During the conference, Alliance staff and partners from VEDP and local economic development offices held meetings with over two dozen offshore wind companies. As a result of the VIP Weekend and IPF, the Alliance gained five new members of the Virginia Offshore Wind Landing, and a group of industry ambassadors for the region. The new members of the Landing are the companies Edison Chouest Offshore, Grand Isle Shipyard, Marmen Welcon, Metal Shark, and Smulders. Since August, Canal Barge, Manora Logistics, Sabik Offshore, Seajacks, Ventower, Xodus Group, and the Business Network for Offshore Wind have also joined the Landing, bringing the number of members to 20, and making the Landing one of the most significant associations of offshore wind companies in the United States.

The Alliance and partners have also participated in several other conferences and trade shows in the U.S. and Europe including Husum Wind 2021, Offshore Wind Transmission US 2021, American Clean Power Association Offshore WINDPOWER 2021, and Offshore Energy 2021 in Amsterdam. By joining these conferences and trade shows, the Alliance has garnered new industry knowledge, built numerous relationships, and proudly displayed the assets of Hampton Roads. 2021 ANNUAL REPORT 29

BUSINESS RETENTION & EXPANSION In following the recommendations of the IBM-PLI study, the Alliance has adopted a special focus on regional business retention and expansion. PM&P training supplied the framework for the BRE program, which included local economic development organizations and partners. Through its BRE program, the Alliance strives to (1) market the region effectively; (2) grow existing industries and positively influence new job creation; and (3) collect data to identify trends and challenges in the private sector.

BRE FOR ATTRACTION

The Alliance draws upon its relationships in the community to make the case for Hampton Roads to prospective businesses. Existing businesses contribute to lead generation by identifying their vendors, customers, or business partners, helping the Alliance tailor its business attraction efforts.

BRE FOR GROWTH

Informed by the knowledge that more jobs are created by current businesses than fledging ones, the Alliance’s BRE program focuses on partnering with local economic development organizations to identify existing industries with the potential to add new lines of business or utilize new technology. Together, they develop the business case to market Hampton Roads for greater investment.

BRE FOR BUSINESS INTELLIGENCE

The Alliance is a central data hub for the region, assembling feedback from existing businesses to supplement data obtained from the Alliance’s business intelligence tools. Businesses share their insights on the regional economy, public policy concerns impacting their organizations, and forecasts for their industry – all important data to collect directly from the company, aggregate, and distribute to economic development partners throughout the region.

30 HAMPTON ROADS ALLIANCE

INTERNATIONAL TRADE For existing companies interested in expanding their market to include international sales, the Alliances serves as a channel to access these markets. The Alliance continues to partner with the International Trade program at the Virginia Economic Development Partnership to ensure that companies have knowledge of resources provided by the Commonwealth. In addition, through VEDP, the Alliance connected with the Dundee and Angus Chamber of Commerce in the United Kingdom and participated in a virtual trade mission for a cohort of Scottish companies exploring entry into the United States market. In partnership with the City of Norfolk and the U.S. Small Business Administration, the Alliance co-sponsored a virtual workshop for companies pursuing a pathway into international markets. Participants gained knowledge of local grants and incentives, federal loan programs, and the Alliance’s international business-to-business matchmaking services.

2021 ANNUAL REPORT 31

Q1 Q2 Q3 Q4

61 BRE

VISITS

In 2021, the Alliance conducted 61 BRE visits. A BRE visit is defined as a scheduled visit to an existing Hampton Roads company to learn about the company’s experiences in the region and assist with their retention & expansion needs.

DEVELOPMENT OF REGIONAL PROTOCOLS & BEST PRACTICES Over the past year, the Alliance has laid a solid BRE foundation. Through feedback from, and collaboration with economic development partners, the BRE program has made significant strategic headway during this phase. Regional business outreach and retention efforts are conducted collaboratively between the Alliance, its local economic development partners, and other regional organizations. The development of internal protocols is important for developing transparency between partners and offering excellent customer service to companies being served. Feedback from Alliance partners helped form the following protocols, which are carried out in the spirit of collaboration: • Local economic development offices are contacted by the Alliance prior to BRE outreach, and the visit with the company will include the locality, region and state economic development organizations. • The Alliance researches the company using business intelligence tools and internal records before the meeting, sharing background information with the BRE team of local and state partners. • The BRE meeting is led by the host locality. The Alliance’s role is to listen and collect business intelligence. Intelligence gathered is recorded internally and shared with the local partner for their records. 32 HAMPTON ROADS ALLIANCE

DEVELOPMENT OF KEY BRE INDUSTRIES The Alliance has identified seven key profiles for regional BRE outreach:

1. 2. 3. 4. 5. 6. 7.

ALLIANCE INVESTORS: Benefits for Alliance investors include an invitation to the annual meeting and an opportunity to provide feedback to the Alliance on their business and perspective on the regional economy.

COMPANIES WITH UPCOMING EXPIRING LEASES: Companies with expiring leases, as indicated by CoStar Solutions and other business intelligence tools, may have the opportunity to expand, contract, or relocate.

COMPANIES IDENTIFIED AS GROWTH STAGE: Companies with the potential to expand due to industry dynamics and efforts to source investment, as indicated by Gazelle AI and other business intelligence tools.

COMPANIES WITH INTERNATIONAL HEADQUARTERS: International companies located in Hampton Roads with executive leadership in the country of origin. The Alliance was part of the recruitment process for many.

MAJOR REGIONAL EMPLOYERS: Companies with at least 200 employees. Geographic business intelligence, such as U.S. Census Bureau data, indicates that establishments with 200+ employees are pulling from multiple localities.

PORT-RELATED COMPANIES: Companies with services or products supporting port operations, such as global logistics office users and third-party logistics providers. The Virginia Port Authority is a partner in identifying and engaging port-related companies.

REGIONAL ASSETS: Regional assets are organizations and institutions that are significant to the regional ecosystems, such as colleges and universities, federal military installations, and regional healthcare systems. 2021 ANNUAL REPORT 33

MARKETING & COMMUNICATIONS IBM PRIORITY #3: PROMOTE HAMPTON ROADS THROUGH STRATEGIC MEDIA AND DIGITAL TECHNOLOGY

The IBM-PLI study advised the Alliance to take “a pro-active proposition based marketing approach” as a core component of its business attraction and retention efforts. Plans should include the electronic deployment of sector-specific marketing materials to a defined audience: prospective businesses in the Alliance’s target industries that are also situated in markets deemed prime targets for recruitment. The study also noted the importance of a strong, fact based website and the growing role of social media marketing and suggested placing a greater emphasis on those channels. With the help of the Alliance’s new advertising agency and the strength of the marketing & communications staff, the Alliance actualized such a campaign in 2021 and has seen extraordinary results to date.

PARTNERING WITH SWAY

As part of the continued rebranding of the organization into the new Hampton Roads Alliance, staff set out to partner with a local advertising agency. Sway Creative Labs was selected, bringing not only an intimate knowledge of the region, but also an impressive client portfolio that includes Alliance investors like Sentara Healthcare, Dollar Tree, and the Port of Virginia. Sway worked with the Alliance to outline a post-covid marketing plan and to develop a data-driven digital marketing campaign. Sway is also helping redesign key pieces of Alliance collateral and promoting the Alliance to local business owners and interested parties as a regional resource for businesses looking to expand within the market.

34 HAMPTON ROADS ALLIANCE

EVERY BUSINESS NEEDS AN ALLY The name of the 2021 Annual Report borrows its title from the Alliance’s new digital ad campaign. Showcasing key facts that distinguish the region alongside iconic photos of local city skylines, the initial run of the campaign set out to meet four objectives: • Raise awareness of Hampton Roads as a hub for global business. • Strategically engage decision makers in targeted states and within defined industry segments outlined in both the IBM study and Wadley Donovan Gutshaw Consulting office market study. • Incorporate personalized landing pages to increase overall website engagement and conversion. • Challenge any misconceptions about the area by incorporating distinct messaging. The initial slate of ads featured a variety of designs aimed at both internal and external audiences. Within Hampton Roads, business leaders saw messages about the Alliance and the benefits of enlisting economic developers for business assistance. Externally, C-suite executives in the northeast and target industry leaders in offshore wind, manufacturing, and healthcare saw sector specific messaging designed to speak directly to them. The campaign ran from the end of August through the end of November, with the following results:

• 7.33M+ IMPRESSIONS LEADING TO 790K+ BRAND ENGAGEMENTS ACROSS SEVEN AUDIENCES • 1,800 CONVERSIONS ON LANDING PAGES • ABOVE AVERAGE CLICK-THRU-RATES (CTR) • PERFORMANCE RANKED 2X BETTER THAN INDUSTRY BENCHMARKS FOR B2B CAMPAIGNS In 2022, the Alliance will continue to refine these message sets and serve ads to additional target industry leaders. The ultimate goal of these campaigns is not only to raise awareness of the Hampton Roads community but also to create a new portal for lead generation based on conversions from people viewing the ads to contacting the Alliance for additional information.

2021 ANNUAL REPORT 35

I N V E S T M E N T

P R O F I L E :

HAMPTON ROADS, VIRGINIA

ADVERTISING & EARNED MEDIA

Food and Beverage Steeped in Hampton Roads

Photos: Hampton Roads Alliance

by ADAM BRUNS adam .bruns @ siteselec tion .com

In 2020, the Alliance engaged Site Selection Magazine and its public-sector investors for a print advertising campaign intended to increase exposure for Hampton Roads. The campaign featured industry-focused editorials, called Investment Profiles by Site Selection Magazine, and are written by a managing editor with strategic direction and collaboration from the Alliance. The five part series began in July 2020 and concluded in May 2021. These content marketing pieces included testimonials from local companies and gave the Alliance the chance to dive deeper into its key industries to proactively create marketing content. In addition to sharing the online version of the editorial, Site Selection Magazine provided high quality reprints of the features to be used as business recruitment collateral with prospects and site location consultants. To amplify the impact of this campaign, the Alliance coordinated co-marketing opportunities with its member localities within the Investment Profile series. While the Alliance paid for two pages-worth of editorial, Site Selection Magazine agreed to increase its editorial to three total pages if the Alliance secured one full page of paid advertising from one of its public investors, which was offered at a discounted rate. In January, the Alliance’s Investment Profile focused on Food & Beverage Processing and featured businesses such as Massimo Zanetti, Acesur USA and The Tarnished Truth. The piece also included a full-page ad from Portsmouth Economic Development. The March 2021 issue of the magazine included an Investment Profile on Shared Services that was co-marketed with the City of Newport News. Featured companies included CMA CGM, Avis Budget Group, and Dollar Tree. To conclude the series, the Alliance coordinated with more than half a dozen state and local partners to develop a five page editorial on Offshore Wind. The piece included ad support from the Virginia Department of Energy, the Port of Virginia and the City of Virginia Beach. The Alliance also continued its engagement with Virginia Business magazine and ran a two page advertorial in August that highlighted the new direct air service routes out of Norfolk International Airport as a result of Breeze Airways’ June announcement. The feature also highlighted more than a dozen other air routes that were added or resumed by other airline providers.

36 HAMPTON ROADS ALLIANCE

Massimo Zanetti is one of several coffee and tea producers whose operations have earned Suffolk the moniker “Caffeine Capital of America.”

ood can spark our most powerful memories. Generations of good experiences in coastal Virginia continue to spark investments by global food and beverage companies. Many of them even got their start right there in Hampton Roads, the region of southeastern Virginia officially known as the Virginia BeachNorfolk-Newport News metro area. J.S. Darling & Sons Oyster Packers was founded in 1881 in Hampton. McMenamin Crab Co. founder James McMenamin invented and patented the modern process of canning and sealing meats in air-tight containers in the 1870s and gave Hampton its “Crab Town” nickname. Today the tradition is carried on by L.D. Amory Company and Graham & Rollins Inc. Nearby, Wanchese Fish Company, headquartered in Suffolk, is one of the world’s largest harvesters, processors and distributors of Atlantic seafood. Amedeo Obici founded Planters in Suffolk in 1913, helping the city, home to Mr. Peanut, become the peanut capital of the world. Even as

Photo: Getty Images

JANUARY 2021

the company continues churning out products, its legacy includes Obici Healthcare Foundation, a major regional presence today with the mission to improve the health status of residents of Suffolk and the surrounding communities. Joseph Luter in 1936 founded Smithfield Packing, now a part of Smithfield Foods, in Isle of Wight County, cementing the area’s reputation as the Ham Capital of the World. Hubbard Peanut Company, maker of the famous Hubs Virginia Peanuts, until recently had been run out of the family home in Sedley, Virginia, where Dorothy Hubbard pioneered the commercialized process of “home cooked peanuts” using a water blanching and oil roasting process in the 1950s. The company recently purchased a former grocery store building in Franklin that will offer customers a new retail experience and capabilities for shipping the highest quality peanuts all around the world. The company is adding 10 jobs to its staff of 40, and is Virginia’s oldest continuously family owned and operated peanut processor. These founding fathers and mothers of food and beverage (F&B) have made their mark around the world at the same time they’ve established deep roots in the region around seafood, peanuts and pork, among other foods. Hampton Roads is a big

reason why 150 F&B processing companies have chosen to locate or expand in Virginia over the past decade, creating over 7,300 new jobs and making capital investments totaling $2.3 billion. Virginia’s F&B companies employ more than 42,000, account for 17% of total manufacturing employment in the commonwealth and have fostered 15% employment growth over the past five years. Global Connections The range of Hampton Roads F&B operations is deep, wide and global — from local delicacies to Hampton-based FDA compliance firm Registrar. A robust roster of tea and coffee operations from the likes of Unilever (producer of every Lipton tea bag in North America at its Suffolk facility), Massimo Zanetti and J.M Smucker (maker of Folger’s) have given Suffolk the moniker “Caffeine Capital of America.” Massimo Zanetti (MZB-USA) sells 120,000 tons of coffee annually around the world. The company’s 20 brands include Hills Bros., Kauai Coffee and Chock full o’Nuts. Today MZB-USA’s portfolio in Hampton Roads includes a corporate headquarters, a roasting operation in Suffolk and a new East Coast distribution center the company announced in June 2020, to be located in Virginia Port Logistics Park in Suffolk. “This facility will position us for greater efficiency and continued growth, add to the economic vitality of the area, and bring great people to Suffolk — along with some of the best coffee on earth,” said MZB-USA Senior Vice President of Supply Chain Doug Nesmith of the move from a smaller facility in the region. MZB-USA employs around 400 in the region. Helping make the labor equation work is Hampton

Roads’ status as the second largest metro area on the East Coast between the nation’s capital and Atlanta, with a labor force of more than 800,000 and more than 96,000 students from the region’s eight universities and four community colleges. Road and rail help too, with CSX and Norfolk Southern serving the commonwealth along with an improving network of highways. But it’s the Port of Virginia that looms largest, with a deep, ice-free harbor that’s soon going to be even deeper and wider: After securing federal funds in 2018, a project from the Port and the U.S. Army Corps of Engineers will deepen the Chesapeake Bay’s Thimble Shoal Channel from its current 50 feet to 56 manufacturing feet, the inner harbor to 55 feet and the Atlantic Ocean Channel to 59 feet. jobs in More than 1.7 million sq. ft. of cold storage space is either already in place or planned within a 20-mile radius of the Port, which moved half a million TEUs in October and November is in 2020, setting a record. It is the second largest coffee port on the East Coast and, among other accomplishments, is Italy’s No. 1 single largest export destination. Another company from southern Europe is also growing in Suffolk, as 180-year-old Spanish olive oil manufacturer Acesur in early 2020 committed to invest $11 million and employ 29 at its first U.S production operation in Suffolk Industrial Park. The project is receiving support from the Hampton Roads Alliance and incentives from the Virginia Economic Development Partnership, the City of Suffolk and the Port of Virginia. The facility will handle the company’s bulk oil imports from

1 in 8

Hampton Roads

food & beverage processing.

SITE SELECTION

I N V E S T M E N T

JANUARY 2021

P R O F I L E :

HAMPTON ROADS, VIRGINIA Service members transition by the thousands each year into the Hampton Roads workforce. Source: City of Virginia Beach

Hampton Roads Answers the Call

A savvy workforce hits the sweet spot for back-office operations. by GARY DAUGHTERS gar y.daughter s @ siteselec tion .com

s with any enterprise connected to health care, the Hampton, Virginia, location of government contractor Maximus is facing unprecedented challenges. Maximus typically provides customer service support to state Medicare and Medicaid programs. Now, the Maximus staff of some 800 workers, largely dispersed from the Maximus workplace, finds itself engaged in the battle against COVID-19. “With the outbreak of COVID, our business model has expanded,” says Joe Raposa, who runs the Maximus shared services center in Hampton as director of standardized operations and analytics for the Reston-based contractor. “We have been doing work for states in regard to contact tracing, and most recently, we have implemented multiple contracts involving vaccine appointment support. “It’s kind of amazing,” Raposa observes, “the stuff we’re learning as we go along.” Hampton was selected for the Maximus operation in 2016 — ahead of prospective locations in Texas and Pennsylvania — for its robust supply of regional office talent and its advantageous position on the East Coast. By car, Hampton Roads is less than three hours from Washington, D.C., five hours from Philadelphia and less than a full day’s drive to New York City, affording speedy access to those roaring, higher-cost markets. For Maximus, the decision to locate in Hampton has proved to be fortuitous. The Maximus facility at Hampton’s NetCenter — a former shopping mall redeveloped into a business center — has twice expanded since its 2017 opening and now occupies 80,000 sq. ft. (7,430 sq. m.), nearly twice its original size. The Maximus staff of customer service 2

MARCH 2021

representatives, call center supervisors, team leaders, quality assurance specialists and support staff currently amounts to twice original projections. “We blew through the workforce targets really quick,” says Raposa. “Within Maximus, we became known as a location that could rapidly hire and deploy resources to support programs and projects.” Hampton Roads boasts a growing number of shared services operations, where related office functions are consolidated efficiently under a single roof. Geico, Avalon Bay, The New York Times and PRA Group are among organizations with backoffice facilities in Hampton Roads locations. One of the biggest such operations is the $32.25 million customer service center established in 2016 by ADP, the cloud-based human capital management company. The ADP facility in Norfolk employs more than 2,000. Most recently, international shipping giant CMA CGM Group announced plans in February 2021 to expand customer care and finance operations at its North American headquarters in Norfolk. Part of a major commitment that includes investments in other parts of the Virginia Commonwealth, the Hampton Roads expansion is expected to create several hundred new jobs, many supported through the Virginia Talent Accelerator Program, which offers direct delivery of recruitment and training services. “This project is a tremendous victory for Virginia that will add significant momentum to our economic recovery as we emerge from this pandemic,” said Gov. Ralph Northam. “Hampton Roads has a well-deserved reputation as a maritime services hub.”

The Talent is There The Hampton Roads Alliance is the regional economic development organization representing 11 localities in Hampton Roads, the region of southeastern Virginia officially known as the Virginia Beach-Norfolk-Newport News metro area. In 2020, the Alliance partnered with Wadley Donovan Gutshaw Consulting, the New Jerseybased site consulting firm, to identify sectors within the region that might be ripe for white collar job growth. WDGC’s six-month analysis, led by Dennis Donovan, principal and veteran site selector, discerned distinct potential in shared services. “More and more companies are going to a shared services platform,” Donovan tells Site Selection. “It is a growth industry, and tier two and tier three markets will be the targets. Shared services really fits into the sweet spot of Hampton Roads.” Sweet spot? Donovan says the Hampton Roads region’s supply of office-oriented talent is deep and self-sustaining. “Hampton Roads is unique,” he explains. “If you look at the functions that are typically performed in a shared services center — procurement, human resources, real estate, finance, even information technology — in Hampton Roads, you have a lot of these skill sets embedded in organizations that are already there. You have really good labor availability at a moderate cost, and that equation will remain favorable into the future. It’s all about talent, and they have a tremendous talent base.” Helping to keep that workforce refreshed, Hampton Roads is served by a network of 12 colleges and universities and 21 training and technical schools. About 100,000 students are enrolled throughout the region and some 18,000 graduate annually.

As a talent differentiator, Hampton Roads is blessed by the presence of 15 military bases representing every branch of the U.S. Armed Forces. In addition to Naval Station Norfolk, the world’s largest naval base, Hampton Roads is home to U.S. Joint Forces Command, U.S. Fleet Forces Command, U.S. Marine Corps Forces Command, the U.S. Air Force’s Combat Command and NATO’s Allied Command Transformation. Each year, more than 13,000 former military personnel transition into the private workforce, bringing with them specialized skills, experience and discipline. “We’ve had a number of ex-military personnel that have retired and joined us,” says Larry Weinstein, vice president of shared services operations, Avis Budget Group, which is celebrating the 25th anniversary of its shared services location in Virginia Beach. “The military people bring a lot of unique skills, an ability to work with others and an ability to lead. Military spouses also represent a very highly qualified pool of candidates. It’s a market we have definitely tapped.” “The Region Supports Economic Development” Avis Budget’s Virginia Beach facility traditionally handles such functions as vehicle accounting, client services, charge card processing, compliance, and title transfer — all in support of thousands of Avis Budget rental locations across the country. “Our job is to allow our field workers to focus on the customer,” says Weinstein. “The primary purpose of consolidating our shared services has been to allow our frontline workers not to have to worry about back-office activities. It’s being more efficient by centralizing and taking advantage of best practices.” As with Maximus, Avis Budget has had to respond aggressively to changes to the business environment presented by the pandemic, chiefly the precipitous drop in travel. The Virginia Beach team of about 200 workers has stepped in to facilitate sales from the company’s fleet of vehicles to an expanding used car market, a strategy that has

SITE SELECTION

I N V E S T M E N T

MARCH 2021

P R O F I L E :

HAMPTON ROADS, VIRGINIA

Offshore wind farms require substations and hundreds of miles of submarine transmission cable.

Offshore Wind Is About to Blow Up And with Dominion Energy leading the way, Virginia is poised to become the East Coast wind energy hub.

by GARY DAUGHTERS gar y.daughter s @ siteselec tion .com

multi-billion-dollar industry is on the brink of taking off along the U.S. East Coast. As the demand for renewable energy skyrockets, a recent study by London-based BVG Associates, an international renewable energy consultant, estimated that investors could spend up to $140 billion by 2035 on wind power facilities along the Atlantic Outer Continental Shelf. The group concluded that electricity generated by offshore wind, virtually

non-existent in the U.S. at present, could reach a massive 40 gigawatts in a mere 15 years. Fueling expectations that offshore wind power is an idea whose time has come, the new Biden administration has signaled that it clearly is a friend to the industry. In late March, and with unusual fanfare, the White House announced federal backing for a vastly expanded offshore wind capacity that includes $3 billion for loan guarantees and port upgrades. Crucially, the administration

Dominion Energy’s pilot project off Hampton Roads began supplying electricity to consumers in January. 20

MAY 2021

SITE SELECTION

Source: Dominion Energy

also pledged to streamline a permitting process and two off Hampton Roads, Virginia. whose glacial pace had stymied the kind of longThe monstrous size of a 15MW offshore turbine term, 10-figure investments needed to get the — more than 800 ft. tall (250 meters) with blades industry going. that are longer than a football field — delivers The encouragement coming from Washington its own hint as to the enormity of what will be represents “a huge shot in the arm” says Jennifer required to get the industry up and running. Palestrant, who as chief deputy at the Virginia And therein lies opportunity. A 2020 study by Department of Mines, Minerals and Energy is Richmond-based Magnum Economics projected spearheading state and regional efforts to establish that the offshore wind industry could eventually what is certain to be an extensive supply chain for support in excess of 5,000 jobs in Hampton Roads an emerging industry that alone. Home to the world’s is heavy on manufacturing. largest naval base and some Indeed, signs of an of the nation’s biggest imminent boom are so shipbuilding facilities, the numerous and vivid that coastal region’s ports and — Marcus Cross, Director of Business Development, Avangrid Renewables Kitty Hawk Offshore Wind Project the picture rendered by associated maritime assets energy industry officials and align uniquely, officials analysts is that of a row of sprinters having endured believe, for Hampton Roads to serve as an offshore some false starts and now digging in expectantly, wind energy hub. finally, for the sound of the starting gun. It is “If this industry can grow on the East Coast, enough to make some officials positively giddy. we think it can be supported, in large part, from “It is incredibly exciting,” says Marcus Cross, Hampton Roads,” says Doug Smith, president and director of business development for the Kitty CEO of the Hampton Roads Alliance. Last year, Hawk Offshore Wind Project being launched the Alliance used a $529,788 grant from the state to off the coasts of Virginia and North Carolina launch an initiative to leverage the region’s assets by Avangrid Renewables, a projected $2 billion to attract that supply chain. Virginia Gov. Ralph investment expected to generate some 2.5 gigawatts Northam is a staunch supporter of the effort. of electricity and up to 1,000 jobs. “How many “Hampton Roads’ unmatched port infrastructure times in your life do you get a chance to start an and high-quality maritime workforce make the entire industry, pretty much from scratch? We are region an ideal location for offshore wind energy not here to build a project. We’re here to build an development,” says Northam. “Virginia should be industry.” the prime location for the offshore wind industry, from the supply chain to the full buildout of our A Long Way to Go offshore wind assets off the coast.” Things are expected to coalesce quickly. The federal government envisions as many as 2,000 Why Offshore? wind turbines spinning in the Atlantic by 2030. It is easier and initially cheaper to build a wind Today, there are seven. Five are off Rhode Island farm on the plains of West Texas, for example,

We’re here to build an industry.”

SITE SELECTION

MAY 2021

SOCIAL MEDIA In addition to utilizing social media for digital advertising, the Alliance continues to use its online profiles to promote the region and the organization, provide business resources, and share relevant and timely information with the community. Over the last twelve months, the Alliance’s content creation efforts and social media activity resulted in 252,000+ organic impressions on LinkedIn and 1,131,700+ impressions on Facebook. On LinkedIn, the Alliance’s page had an additional 2.2M+ paid impressions through its digital marketing efforts. The Alliance’s LinkedIn page saw a 18% increase in followers and its Facebook page saw a 16% increase in likes. Additionally, the Alliance maintained an above average engagement rate of 8.2% and had more than 410 post shares on LinkedIn. On Twitter, the Alliance profile had over 685,223 impressions and nearly 13,000 profile visits.

853 NEW FOLLOWERS 2.45M+ IMPRESSIONS 220 NEW FOLLOWERS 1.1M+ IMPRESSIONS 251 NEW FOLLOWERS 685,200+ IMPRESSIONS 2021 ANNUAL REPORT 37

BUSINESS INTELLIGENCE

IBM PRIORITY #4: STRENGTHEN REGIONAL COMPETITIVENESS BY ORGANIZING AROUND MARKET INTELLIGENCE In order to achieve the goals set out by the IBM study, one core component must be present: data. The Alliance’s Business Intelligence department is tasked with finding that data, analyzing it, and presenting it in a compelling way to entice businesses to invest in Hampton Roads. Business intelligence has evolved from a behind-the-scenes supporting service to a front-facing, value add to our public and private investors. Throughout the year, investors called upon the Alliance for assistance with items including economic impact studies, demographic reports, mapping, company list creation, and cost comparison analyses. The majority of these assists were for public investors, but private investors requested staff assistance as well. In 2022 the team will provide “proactive assists” to be comprised of reports and often-requested items to all investors. The Alliance’s goal for 2021 was to complete 150 total assists, which was exceeded with 176 total assists, or 117% of goal, by the end of the year.

176

BUSINESS INTELLIGENCE ASSISTS Requests from localities, investors, stakeholders, or regional and state partners for information from the Business Intelligence team. Q1

38 HAMPTON ROADS ALLIANCE

VIRGINIA: AMERICA’S TOP STATE FOR BUSINESS In 2021, Virginia was once again named America’s Top State for Business by CNBC. This recognition was Virginia’s fifth – more than any other state – and earned the Commonwealth the distinction of being the first state to win in back-to-back years. CNBC cited the state’s ability to “nurture and retain talent,” its high performing public schools, and the major economic engine that is the Port of Virginia as reasons Virginia stayed on top. HOW DID THEY DETERMINE THE WIN?

CNBC awards points in 10 categories, for a total of 2,500 points. Cost of Doing Business Infrastructure Life, Health & Inclusion Workforce Economy

400 points 375 points 375 points 325 points 250 points

Business Friendliness Access to Capital Technology & Innovation Education Cost of Living

200 points 175 points 175 points 150 points 75 points

New this year was a focus on equity & inclusion, where Virginia performed well. The Commonwealth ranked highest in education and workforce. The Virginia Economic Development Partnership played a pivotal role in the win by helping to foster a positive business environment, as well as advocate for and market the Commonwealth’s strengths. Should the Commonwealth wish to perform a “hat trick,” the state, and in particular the economic development community, must continue focusing on the attributes that make Virginia the leading choice for so many businesses. Business Facilities also gave Virginia top scores for its business climate, ranking the Commonwealth the best business climate in America for the first time. The publication cited the addition of workforce programs like the Talent Accelerator Program from VEDP and Virginia’s low unemployment rate among the reasons for the designation.

In addition to assisting its public and private investors with research requests, the Business Intelligence team plays a leading or supporting role in a variety of initiatives and studies, including robotics, site readiness, and a regional energy master plan. ROBOTICS The Alliance worked with the cities of Norfolk, Newport News, and Hampton to secure a GO Virginia grant to fund a feasibility analysis and action plan for a regional robotics innovation hub. Prepared by the Virginia Tech Center for Economic and Community Engagement, the report engaged local robotics industry leaders like SVT Robotics and concluded that the region could support a unified robotics hub. A focus on intelligence robotics, to include the design, construction, and programming of robots, is among the strengths that unite many Hampton Roads companies that utilize robotic technology and could serve as a unifying nexus. The Alliance will work with regional robotics leaders and the RED team to further analyze this study and implement any agreed upon recommendations. SITE READINESS In 2020, the Alliance worked with HRPDC and the localities to secure one of the first GO Virginia grants for site readiness. The program is designed to provide funding to perform due diligence and infrastructure work needed to elevate large sites to “Tier 4,” or shovel-ready, status. The initial grant funded Innovation Park (Virginia Beach - $866,900), Tech Center Research Park (Newport News - $51,400) and Shirley T. Holland Intermodal Park ( Isle of Wight - $150,500) Work on those sites continued in 2021, with their designations as Tier 4 sites to follow shortly. A lack of large, business-ready sites has been listed among the main reasons why the Commonwealth loses projects to other states. In fact, VEDP estimates that since 2016, Virginia has lost out on 42,000 direct jobs and $75 billion in capital investment due to a lack of prepared sites. Governor Northam, in proposing a $150 million budget for business ready sites in late 2021, stated that “companies want to invest here, and we can make it easier for them by preparing these industrial sites for their use.” The Alliance will continue to work with HRPDC and the localities to secure additional funding for site readiness, with a goal to advance all eligible sites to Tier 4 status. REGIONAL ENERGY MASTER PLAN In addition to a lack of business-ready sites, growing energy demands and a constrained supply may present a challenge for Hampton Roads’ future industrial growth. The Alliance secured an $84,000 GO Virginia grant to perform a study analyzing the region’s current and projected energy needs. The project will develop a baseline for the capacity of the current energy system, clarify the capacity of that system, and identify options to deliver energy to meet further demand. Interested consulting firms and universities submitted responses to a request for qualifications in December, with plans to complete the study in 2022.

2021 ANNUAL REPORT 39

PRIVATE INVESTORS PREMIER ($100,000+)

Hampton Roads Shipping Association

PLATINUM ($50,000+)

40 HAMPTON ROADS ALLIANCE

GOLD ($25,000+)

ONE REGION. ONE WORKFORCE. ONE ECONOMY.

SILVER ($10,000+) Children’s Hospital of the King’s Daughters

Kaufman & Canoles

U.S. Waterways Transportation

MEB General Contractors

Vandeventer Black

Bank of America

Clancy & Theys Construction

Norfolk State University

BB&T

Crenshaw, Ware & Martin, PLC

Southern Bank

Bon Secours Health System

Damuth Trane

Tidewater Community College

Chartway Federal Credit Union

Dollar Bank

Timmons Group

Aerotek, Inc.

Capital Concrete, Inc.

Hunton Andrews Kurth

Old Point Financial Corporation

Atlantic Dominion Distributors

Chesapeake Regional Healthcare

Jones Lang LaSalle

PNC Bank

BHE Gas Transmission & Storage

Columbia Gas of Virginia

KPMG LLP

Riverside Health System

The Lee Group

Thomas Nelson Community College

McGuire Woods LLP

Venture Realty Group

Norfolk Airport Authority

Williams Mullen

Atlantic Union Bank Avangrid Renewables

Virginia Department of Energy Willcox Savage

BRONZE ($5,000+)

Birdsong Peanuts Branscome, Inc.

Drucker + Falk, LLC Harbor Group International, LLC

The Breeden Company

Harvey Lindsay Commercial Real Estate

Canon Virginia, Inc.

Hourigan Construction

Norfolk Waterside Marriott

2021 ANNUAL REPORT 41

JAMES CITY COUNTY

WELCOME WILLIAMSBURG YORK COUNTY 42 HAMPTON ROADS ALLIANCE

The Hampton Roads Alliance is pleased to welcome the City of Williamsburg, James City County, and York County as new public investors, bringing the number of localities the Alliance represents to 14. These three communities, known around the world as the first permanent English settlement in America, are a vital part of the Hampton Roads region. Together, they have a population of over 150,000 and a wealth of assets, including:

WILLIAM & MARY, THE SECOND OLDEST AND ONE OF THE TOP RANKED UNIVERSITIES IN AMERICA THE COLONIAL WILLIAMSBURG FOUNDATION, A 301-ACRE OUTDOOR HISTORY MUSEUM EMPLOYING APPROXIMATELY 1,500 PEOPLE MAJOR MILITARY FACILITIES INCLUDING NAVAL WEAPONS STATION/ CHEATHAM ANNEX AND THE U.S. COAST GUARD TRAINING CENTER MAJOR FOOD & BEVERAGE PROCESSING FACILITIES, INCLUDING INBEV/ANHEUSER BUSCH BUSCH GARDENS, A MAJOR THEME PARK THAT WELCOMES MILLIONS OF GUESTS ANNUALLY A recent target industry study from Chmura Economics & Analytics found that the Greater Williamsburg area is poised to recruit and retain companies in many of the same industries that the Alliance targets. These mutual goals create synergy, allowing the Alliance to benefit from the talent, expertise, and economic development initiatives of the communities. “We are thrilled to welcome Williamsburg, James City County, and York County to the Alliance family,” stated Doug Smith, Alliance President and CEO. “The addition of these three communities will help us tell a more complete story of the Hampton Roads region and its nearly 400-year history. The Alliance looks forward to working with the talented economic developers in these communities to continue growing the 757 region.” “On behalf of the communities of York County, James City County, and Williamsburg I’d like to say we are very excited to join the Hampton Roads Alliance,” shared Jim Noel, York Country Economic Development Director. “The greater Williamsburg area is a vital part of the Hampton Roads region and we are confident that, by teaming up with the Alliance, our communities will continue to see economic growth and diversification. The Alliance’s expanded mission and role in enhancing the business environment, as well as its well-defined approach to recruiting and retaining target industries made the decision to join particularly appealing. We look forward to working with the Alliance team and our locality partners moving forward!” In 2021, the Alliance announced the creation of 800+ new jobs and $280+ million in capital investment across the region. The organization looks forward to accelerating this momentum into 2022 with these three new public investors. The Alliance will continue to join forces with the region to show the world why Hampton Roads is vital to Virginia’s ranking as the best state for business. 2021 ANNUAL REPORT 43

INVESTOR EVENTS

44 HAMPTON ROADS ALLIANCE

Given the uncertainty of the ongoing pandemic, the Alliance continued offering virtual events the first half of 2021 to include the Annual Meeting in January and two Investor Update Events in April and May. In June, the Alliance switched to in-person affairs following COVID protocols. The shift allowed investors to gather again after nearly 18 months. The Investor Updates in June, October, and November, as well as the holiday reception in December were held at unique locations across the Hampton Roads region: IPConfigure, the National Institute of Aerospace, SVT Robotics, and Assembly. Hosting at these standout venues allowed the Alliance to cultivate investor relationships as well as showcase some of the special organizations flourishing around the 757. The Alliance was thrilled to welcome eight new investors in 2021. The private investors included: Avangrid Renewables; Crenshaw, Ware & Martin PLC; Hunton Andrews Kurth LLP; U.S. Waterways Transportation; and Virginia Department of Energy. The public investors included James City County, City of Williamsburg, and York County. The Alliance continued to increase its social media activities and launched an Investor Spotlight Series to promote its Premier, Platinum and Gold private investors as well as its public-sector investors. Each spotlight is featured on the Alliance website and promoted on all social media platforms. The series highlights the great work Alliance investors are doing in the region, sharing their story and significance as part of the greater community. The series will continue in 2022.

2021 ANNUAL MEETING — JANUARY

The Annual Meeting celebrated the region’s impressive resilience and progress in 2020 despite the ongoing pandemic. During the online seminar, Past Chair, Brian Skinner, passed the torch to Howard Kern, Alliance 2021 Chair, who shared his priorities and goals for the coming year. Doug Smith, Alliance President & CEO, introduced the 757 Recovery & Resilience Action Framework, an innovative playbook to help the region rebound from the pandemic. The majority of the Alliance’s investors attended, as did regional economic development directors and several city managers and elected officials.

757 FRAMEWORK PANEL — APRIL

The 757 Recovery and Resilience Action Framework supplies a strategic blueprint to accelerate the region’s recovery from the COVID-19 pandemic — and do so in a way that will bolster the region’s ability to weather future shocks. The Framework, created by and for the Hampton Roads business community, focuses on providing greater economic opportunities for all residents. During the webinar, investors learned from regional partners what the Framework is, how it works, and why it’s needed. The Framework

includes a vision for the regional economy with measurable goals, five strategic focus areas, 30 related programs, and a dashboard to track it all. The webinar, which was moderated by Alliance President & CEO, Doug Smith, included the following panelists: Jeff Tanner (ODU Strome College of Business), Latisha James (Urban League of Hampton Roads), Maegan Barnes (Hampton Roads Workforce Council and Tage Counts (Hampton Roads Chamber)

A CONVERSATION WITH STEPHEN EDWARDS — MAY

The Alliance hosted an intimate, virtual discussion with The Port of Virginia’s new CEO and Executive Director, Stephen Edwards, and one of Hampton Roads’ most veteran media professionals, Cathy Lewis, about Edwards’ new role leading the Port. Edwards shared his vision for the Port, how that vision promotes the Commonwealth’s effort to become a supply chain hub for the offshore wind industry, and what Alliance investors can do to support the Port’s continued growth.

INVESTOR REUNION — JUNE

After 15 months of virtual events, the Alliance was thrilled to hold its first in-person investor event of the year. Investors gathered at IPConfigure for an evening of networking, refreshments, and musical entertainment by local bassist Jimmy Masters. Alliance President & CEO Doug Smith provided an update on the Alliance’s activities over the last year and what lies ahead for the 757.

INVESTOR GATHERING — OCTOBER

Alliance investors met at the National Institute of Aerospace (NIA) for an afternoon of discovery hosted by Dr. Douglas Stanley, NIA President. Director of NASA Langley Clayton Turner inspired the crowd with a talk about the future in space. Investors then toured three of NIA’s labs: Advanced Aircraft Company (AAC), a developer of long-endurance hybrid-electric unmanned aircraft systems; Panicopia, a private R&D and engineering company that specializes in environmental and energy engineering; and Psionic, a company that uses proprietary perception and navigation technology to conquer the most challenging environments on Earth and in Space.

757 DEMO DAY — NOVEMBER

The Alliance partnered with 757 Collab and the Mid-Atlantic Tech Bridge for a demonstration day featuring 3DXtremes, PaintJet, and SVT Robotics. All three robotics companies gave demonstrations, giving attendees an opportunity to see firsthand the innovative technologies developing in the 757 and their global impacts.

HOLIDAY RECEPTION — DECEMBER

The Alliance warmly welcomed investors to a holiday reception at Assembly to show its appreciation for a successful year! 2021 ANNUAL REPORT 45

2021 BOARD OF DIRECTORS PRIVATE SECTOR PUBLIC SECTOR REPRESENTATIVE REPRESENTATIVE

City of Chesapeake

Honorable Richard W. West

City of Hampton

Honorable Donnie R. Tuck

City of Newport News

Honorable McKinley L. Price, DDS

City of Norfolk

Honorable Kenneth C. Alexander, Ph.D.

City of Virginia Beach

Honorable Robert M. Dyer

City of Franklin

Honorable Frank Rabil, At Large Public Sector Representative

Cox Communications Virginia Mr. J.D. Myers, II

Dominion Energy Ms. Diane Leopold

ECPI University

Mr. Mark B. Dreyfus

Ferguson Enterprises

Mr. Keith VanderVennet, Treasurer*

Huntington Ingalls Industries Mr. Bill Ermatinger, Vice Chair*

Port of Virginia

Ms. Cathie J. Vick

Sentara Healthcare

Mr. Howard P. Kern, Chair*

EX OFFICIO

GOVERNANCE

The Alliance Board of Directors is comprised of six mayors/county chairs, seven private CEOs/executives, and six ex-officio directors and meets monthly to provide strategic direction and guidance to the organization. Similarly, the Alliance’s Regional Economic Development (RED) Team is comprised of one representative from each member locality and several regional partners. The RED Team meets on a monthly basis to review the Alliance’s activities, learn from industry experts, and work collaboratively to solve regional issues. The Alliance extends its sincerest gratitude to the following individuals for their service to the organization and the 757 region at-large.

City of Hampton

Ms. Mary Bunting, CAO Chair

Hampton Roads Alliance

Mr. Douglas L. Smith, Secretary* (Non-Voting)

Hampton Roads Workforce Council Mr. Shawn Avery

Isle of Wight County

Mr. Chris Morello, RED Team Chair*

Reinvent Hampton Roads Mr. James K. Spore

TowneBank

Mr. Brian K. Skinner, Past Chair*

Willcox Savage

Mr. Hugh L. Patterson, General Counsel* (Non-Voting) 46 HAMPTON ROADS ALLIANCE

*Executive Committee members

LOCALITIES

2021 RED TEAM Chesapeake Economic Development Mr. Steven Wright

Franklin Southampton Economic Development, Inc. Mr. Karl Heck

Hampton Economic Development Mr. Chuck Rigney

Isle of Wight County Economic Development Mr. Chris Morello

James City County Economic Development Mr. Chris Johnson

Newport News Department of Development Ms. Florence Kingston

Norfolk Department of Economic Development Mr. Jared Chalk

Poquoson Department of Economic Development Ms. Charity Gavaza

Portsmouth Economic Development Mr. Robert Moore

Suffolk Economic Development Mr. Greg Byrd

Virginia Beach Economic Development Mr. Taylor Adams

Williamsburg Economic Development Ms. Yuri Adams

York County Economic Development

UTILITIES AND REGIONAL PARTNERS

Mr. Jim Noel

Dominion Energy

Mr. Max Bartholomew

Hampton Roads Military & Federal Facilities Alliance Mr. Craig Quigley

Hampton Roads Planning District Commission Mr. Bob Crum

Hampton Roads Workforce Council Mr. Steve Cook

Port of Virginia Mr. Russell Held

Reinvent Hampton Roads Mr. James K. Spore

Virginia Natural Gas Mr. George Faatz

2021 ANNUAL REPORT 47

STAFF Pictured above (left to right):

Jonathan Holman, Director, Business Intelligence Amy Parkhurst, Senior Vice President, Business Development Steve Harrison, Vice President, Business Intelligence & Communications Amy Jordan, Vice President, Business Development Matt Smith, Director, Offshore Wind, Business Development Toi Hunter, Vice President, Business Retention & Expansion Doug Smith, President & CEO Adelaide Gilmore, Senior Administrative Specialist Alisa Crider, Director, Investor & Public Relations Jillian Goodwin, Director, Marketing & Communications Nicole Ryf, Chief Strategy Officer Carmon Schietzelt, Specialist, Offshore Wind, Marketing & Communications

48 HAMPTON ROADS ALLIANCE

FINANCIALS 2021 Budget

2021 Preliminary Actual

2022 Budget

Corporate Investment Corporate Investment

$1,785,000

$1,569,750

$1,781,000

Municipal Investment Municipal Investment

$1,774,996

$1,765,042

$1,783,295

$275,000 $103,000 $0 $0 $0 $3,000 $0

$275,000 $35,343 $0 $208,000 $0 $2,000 $133,850

$137,500 $0 $84,000 $0 $10,000 $3,000 $0

$3,940,996

$3,988,985

$3,798,795

2021 Budget

2021 Preliminary Actual

2022 Budget

$775,176 $558,236 $290,847 $347,629 $1,617,582 $100,000

$725,000 $502,000 $242,500 $302,000 $1,760,000 $91,000

$689,695 $595,950 $321,280 $333,705 $1,821,115 $35,000

$3,689,470

$3,622,500

$3,796,745

$251,526

$366,485

$2,050

SUPPORT & REVENUE

Other Income Offshore Wind Grant Robotics Planning Grant Regional Energy Assessment Grant Grant Matching Funds Annual Meeting Interest Miscellaneous

Total Support & Revenue

EXPENSES Marketing Business Intelligence Investor Relations Administration Business Development 757 Recovery

Total Expenses Excess of Revenue over Operating Expense The “extraordinary expenses” listed to the right represent one-time expenditures that the Board agreed should not come out of the operational budget, but should instead be paid for out of reserves. These expenses include the following: anticipated moving costs associated with relocating the office into the 13th floor of the TowneBank Tower, implementing recommendations made by Xodus in their Offshore Wind Supply Chain Study, assessing the region’s energy supply and developing a regional energy master plan, and customizing and upgrading the Alliance’s customer management systems in Salesforce.

2022 EXTRAORDINARY EXPENSES Budget

Moving Expenses Offshore Wind Program Implementation Regional Energy Masterplan Salesforce Training & Development

$10,000 $100,000 $150,000 $100,000

Total Extraordinary Expenses

$360,000

Deficiency of Revenue after Extraordinary Expenses

($357,950)

2021 ANNUAL REPORT 49

LOCALITY HIGHLIGHTS

While the Alliance is engaged in a variety of activities across the 757, each locality has celebrated many accomplishments throughout the year. Here is a sampling of some of the major projects, milestones, awards, and accolades that were announced throughout the Hampton Roads region in 2021. RETAIL, SMALL BUSINESS & REDEVELOPMENT 1865 Brewing Company, the first Black-owned brewery in Hampton Roads, opened in the Phoebus section of Hampton. One of only about 60 Black-owned breweries in the United States, this community meeting hub derives its name from the Thirteenth Amendment which abolished slavery in 1865. Isle of Wight Economic Development officials are leading community efforts to determine the best community-oriented uses for the former 24,000 square foot James River Christian Academy Campus. The County was awarded two Department of Housing and Community Development (DHCD) grants and hired VIA Design to complete a preliminary architectural review to ensure optimal site and building redevelopment scenarios are considered. Isle of Wight County officials broke ground on a new Hardy Elementary School in October which will replace the current 60-yearold school. The new two story school, slated to open in 2023, will have a capacity of 887 students and cost approximately $36.8 million. Papa’s Garden, a commercial greenhouse that grows microgreens for restaurants, leased 8,490 square feet in the Monette Parkway Office campus in Isle of Wight. Nearby, Pagan River Labs leased 5,000 square feet for its laboratory for testing vitamins, protein, bars and shakes, and other items from small farms; the company will create four new full-time jobs. The City of Norfolk announced the arrival of MetroNet, a new internet option for residents. This $90 million infrastructure investment will help make Norfolk a Gigabit City. In Newport News, The Offices @ Two Five & J, a new coworking resource in the Southeast Community, opened to support the creation and growth of locally-owned businesses and stimulate the MarshallRidley Choice Neighborhood. The center was made possible by more than $2 million in investments, including a $480,000 grant from the Virginia Department of Housing and Community Development’s Industrial Revitalization Fund. 50 HAMPTON ROADS ALLIANCE

Development of the Newport News Downtown 23rd Street Corridor, also referred to as “Restaurant Row,” continued in alignment with the City’s “Downtown Reimagined” plan. The reinvigoration efforts include a new branding effort in the Yard District, public art, and a variety of new mixed-use developments which include apartments, offices, and a new microbrewery, among others. Farm Fresh announced plans to reopen its doors in Poquoson under new ownership. The store will generate approximately 40 jobs and will provide residents with fresh, quality foods and a renewed focus on giving back to the community. COMMUNITY IMPACT Chesapeake was awarded the Veteran’s Administration Outpatient Clinic from the General Services Administration (GSA). This facility, which will service Southside Hampton Roads veterans in a 196,000 square foot facility estimated to cost $250 million, will lead to the creation of 400 healthcare jobs. Chesapeake Economic Development provided $5.36 million in grants to 469 small businesses that were financially impacted by COVID-19. Of those businesses, 51 were veteran-owned and 201 were SWaM eligible or certified. Franklin Southampton Economic Development Inc. (FSEDI) resumed its IEDC award-winning STARTUP Franklin Southampton program, which had 10 new businesses make it to Pitch Night to compete for two $30,000 grants and marketing support. The Franklin Business Center (FBC) reached 100% occupancy for the first time in its 16-year history, an increase of over 20 percent from 2020. The FBC has over 125 full and part-time employees working in its building in downtown Franklin. Portsmouth Economic Development opened a brand-new workforce development center – Portsmouth@Work. The center aims to build career pathways for unemployed and underemployed residents by providing free training, certifications, and events. In September, the Virginia Beach opened The Hive, a collaborative workspace where entrepreneurs can connect with resources and find support to grow their endeavors. Akin to a community center, 38 events were hosted in 2021 at The Hive’s Town Center office. In alignment with the city’s economic development strategies, Virginia Beach Economic Development opened two incubators in 2021: an International Incubator and Bio Accelerator. The International Incubator allows international companies to set up in the city easily, and then assists with resources to eventually expand in the community; the first tenant is Chorus Intelligence, a UK headquartered software company. The Bio Accelerator offers shared lab space, conference rooms, and offices to start-ups and growing companies. Industry experts will nurture these companies and help them grow as they seek to create new jobs and provide breakthroughs in medicine.

ANNOUNCEMENTS & EXPANSIONS In Chesapeake, Plasser American Corporation announced a $52.6 million expansion of its North American headquarters, including a 45,000 square foot office building and 82,000 square foot manufacturing facility. The project will double production capacity and add 98 jobs to its current workforce of 300+ employees. In Hampton, Huntington Ingalls Unmanned Systems Center of Excellence completed construction of a 150,000 square foot building on a 20-acre campus in Hampton Roads Center North. More than 250 high-quality jobs will be created as the company works to assemble large unmanned undersea vehicles for the Navy. Virginia Tech completed its Seafood Agricultural Research and Extension Center in Downtown Hampton. The new $9 million seafood research facility focuses on disciplines ranging from seafood safety to aquaculture and offers office space, an updated micro lab, and a new classroom for cooking demonstrations. Global Concentrate announced plans to construct facilities totaling two million square feet for juice production, along with the creation of 50 new jobs and $121 million in capital investment, in the Pretlow Industrial Park in Franklin. CMA CGM announced plans to grow its U.S. headquarters in Norfolk, thereby creating more than 400 new jobs. The company will invest $36 million to expand operations in Hampton Roads. In Norfolk, Lyon Shipyard announced plans to invest $24.4 million to expand operations, add a marine travel lift, and expand its dry docks. The investment will increase the shipyards capacity to handle 165 ships a year, up from 120 per year, and create 119 new jobs. Aery Aviation announced plans to invest $15.3 million to expand its global headquarters in Newport News. The company will construct a 60,000 square foot hangar facility and create 211 new jobs. Ranked as one of the top sites for offshore wind on the east coast, Portsmouth is now home to three major projects. In addition to the previously announced Orsted lease of 27 acres at Portsmouth Marine Terminal (PMT) for staging and equipment, Dominion Energy reached an agreement with the Port of Virginia to lease 72 acres at PMT for staging and pre-assembly. Siemens Gamesa Renewable Energy also reached an agreement with the Port to lease more than 80 acres of PMT for the establishment of the first offshore wind turbine blade production facility in the United States, bringing with it $200 million in investment and 310 new jobs. In October, Lineage Logistics opened their new, fully automated facility in Portsmouth. The project represents an $80 million investment in cutting edge cold storage capacity and employs over 60 fulltime professionals in a 200,000 square foot facility. In Suffolk, the new, master-planned Portside Logistics Center will include the construction of a 338,000 square foot distribution center leased by RoadOne Intermodal Logistics. The building is expected to be completed and operational in 2022. Following on the heels of Amazon’s $200 million, 3.8 million square foot robotics fulfillment center, industrial development was at a record demand in 2021 in Suffolk. Massimo Zanetti Beverage USA completed construction on a new, technologically advanced 355,000 square foot distribution center. GXO, a division of XPO Logistics, announced plans to construct a 348,000 square foot distribution Center in Virginia Port Logistics Park in Suffolk. The facility will be completed and operational in 2022. Virginia Beach-based DroneUp announced a deal with the world’s largest retailer, WalMart, to develop a drone delivery system. This milestone deal will allow the company to grow from 100 employees to 1,000 by the end of 2022; 60% of those positions will be based in Hampton Roads. 2021 ANNUAL REPORT 51

2021 Annual Report

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Regional Initiatives