11 minute read
Economic Development
Regional Vision, Global Impact
Norfolk downtown waterfront
Courtesy of City of Norfolk
The Hampton Roads region is a great place to live, work and play. And, it’s only going to get better. “With proper foresight, continuous planning and dynamic economic development, Hampton Roads will be recognized internationally as a region fueled by Innovation, Intellectual and Human Capital, Infrastructure and a Sense of Place.”
A group of regional organizations and community leaders collaborated together to develop “Vision Hampton Roads,” a regional plan with a five year horizon. This “Vision” employs strategies and actions which leverage regional strengths to diversify and grow the economy, positioning Hampton Roads as a leader in the global economy of today and tomorrow.
In economic development today, it’s important to address who and what is Hampton Roads as a region; who lives here and why; what is the region’s business identity; and how entrepreneurs, creativity and innovation are attracted. Regions that thrive in the “new economy” will be those truly educating their workforce, cultivating innovation, investing in infrastructure and creating quality places, like Hampton Roads.
“Vision” planning has placed Hampton Roads on a path to regional transformation by embedding a working process as we think, live and act regionally.
After “Vision Hampton Roads” was developed, the Hampton Roads Partnership created “Innovate! Hampton Roads” as a component of “Vision” that looks to promote local business and tech-based development in the area. (http://innovatehamptonroads.com/)
The Virginia Gazette reported that York County is working forward with a planned mixed-use development moved a step forward with a $6.45 million property sale near Victory Boulevard at the York-Newport News line. Commonwealth Green plans include up to 384 apartments, 96 townhomes and four commercial buildings, according to the developer. Condominiums are planned above three of the commercial buildings. About 50 of the apartments would be in Newport News.
In addition, the Hampton Roads Economic Development Alliance annouced that Cushman & Wakefield/Thalhimer has sold the Palace Plaza strip shopping center just off Bypass Road in upper York. Polyzos Family Investments, LLC purchased the approximately 22,600 square-foot retail center for $610,000. The previous owner was C-111 Asset Management. According to York County’s property information website, the center is assessed at just over $1 million. It was sold to C-111 Asset Management for $680,000.
In 2016, The Commonwealth at York apartments opened in York County, near Village Square at Kiln Creek Shopping Center. (http://www.dailypress.com/ business/brandpublishing/dp-tbiz-bpcommonwealth-story-05102016-story. html) (http://www.signaturemanagementcorp.com/apartment-communities/york-county-va-communities/ commonwealth-at-york/). In 2017, Poquoson officials and board members discussed development opportunities for the Big Woods Area, on Victory Boulevard. (http://www.dailypress.com/news/ york-county/dp-nws-ypq-notebook0221-20170221-story.html)
Strategic location, global significance
The first rule of thumb for any economic development is location, location, location.
Hampton Roads, the region, is located in the southeastern coastal tidewater of Virginia in the heart of the Mid Atlantic. It is a region that depends on a maritimerich geography including all the benefits that come with it, such as commerce derived at its ports, tourism and real estate drawn to its beaches, and the waters that allow it to be one of the most concentrated naval strongholds on the planet.
Hampton Roads, the harbor, is formed by the confluence of the James, Nansemond and Elizabeth Rivers and flows into the Chesapeake Bay whose watershed covers 64,000 square miles and all or part of six states and Wash
ington, DC. As one of the world’s biggest and deepest natural harbors, the largest in North America, Hampton Roads is home to the world’s largest naval base at Norfolk and the Port of Virginia, third largest behind Port of New York and the Port of Savannah. It is one of the busiest and fastest growing commercial ports on the U.S. East Coast with products popular the world over from Smithfield Hams to Suffolk Peanuts to Chesapeake Bay crabs.
Since the English settlers arrived in the Huntington Ingalls Industries Launches U.S. Navy Aircraft Carrier Future USS John F. Kennedy (CVN 79) early 1600s, Hampton Roads has been an enviable strategic stronghold. The and venues, shopping malls, historic Systems Norfolk Ship Repair, Stihl, HSBCregion’s land area covers approximately cities and towns, amusement parks North America, Maersk Line Limited, 2,907 square miles and includes an and state and national parks. Hampton CMA CGM North America, Zim-Ameriextensive system of waterways including Roads’ climate is enjoyed by outdoor can, Ferguson Enterprises/Wolseley NA the Intra-coastal Waterway and enjoys enthusiasts; recreational activities inand Anheuser-Busch/InBev. 38 a temperate climate guaranteeing an clude boating, fishing, camping, biking, Fortune 1000 firms with headquarice-free harbor. and tennis throughout the hundreds of ters or a significant presence in the
The central location of Hampton local parks and campgrounds. region include Amerigroup, Dollar Tree, Roads’ is within 750 miles of threeThe region’s safe harbors, proximity to Smithfield Foods, and the largest private fourths of the nation’s population and six the ocean and rich history have worked employer in Virginia, Huntington Ingalls of the ten largest U.S. population centers. together to form today’s Hampton Industries, Inc. 38 The Virginia Beach-Norfolk-Newport Roads. Amazon.com Inc. will build two News, VA-NC Metropolitan Statistical operations facilities in Hampton Roads, Area (Hampton Roads MSA) is made up Industr y Diversit y, creating an expected 1,500 jobs. Both of fifteen cities and counties, making it Leveraging Assets facilities are anticipated to open in 2021. the seventh largest MSA in the SouthThe region’s largest employers repreThe first facility is a multi-story roboteast U.S., the second largest between sent industry sectors like shipbuilding, ics fulfillment center in Suffolk, which Washington, DC and Atlanta and the health care, education, tourism, banking, will create 1,000 jobs. The second is a largest coastal MSA between New York insurance, manufacturing, telecommuni650,000-square-foot processing center and Miami in the Eastern U.S. 21 cations, and transportation and include: in Chesapeake, which will create 500
The Virginia Beach-Norfolk-Newport public school systems, colleges and unijobs. News, VA MSA ranks 37th out of the naversities, Sentara Healthcare, Riverside The region’s largest financial institution’s 366 MSA’s. 22 Health System, Bon Secours Hampton tions include Bank of America, Wells
Hampton Roads is one of America’s Roads Health System, Colonial WilliamsFargo, SunTrust and BB&T. Several most popular vacation spots, and burg, Chesapeake Regional Medical regional banks are also strong financial boasts something for everyone. It has Center, SAIC, Measurement Specialties assets in Hampton Roads, the largest of an expansive 2,600 miles of shorelines, and GEICO. 38 which is TowneBank. 38 world-renowned museums and cultural Hampton Roads is an international The economic structure of the region opportunities such as the Virginia Opera, gateway with a large presence of is characterized by the strong presence Virginia International Arts Festival, and foreign firms dominated by Germany, of the military, followed by real estate Virginia Symphony, sports organizations Japan and UK, including Canon, BAE and rental leasing, manufacturing and shipbuilding, construction, tourism and recreation, and retail. Over the past decade, Hampton Roads’ population has grown at an annualized rate of 0.64%, slow compared to the nation. Since 2001, economic growth in the region has averaged 6.7% annually (3.3% in per capita dollars). Much of this growth is the result of increased Department “Connecting Business with Opportunity” of Defense (DoD) spending within the region. 5
Federal /Military Sector
Hampton Roads has one of the largest concentrations of military personnel, second only to Washington DC, hence »
the regional moniker, “Pentagon South.” Hampton Roads hosts all five military services with both operating forces and major command headquarters. This includes the only NATO command in North America, and the U.S. Joint Forces Command (one of DoD’s ten combatant commands charged with transforming U.S. military capabilities). Increases in military pay and federal contracts have significantly contributed to the region’s economic growth. And defense spending continues to cushion the region in times of economic downturn. 22 Thirty of the 100 largest defense firms in the world have a presence in Hampton Roads.
Hampton Roads is also the home to the world’s largest concentration of U.S. Coast Guard assets.
Additionally, thirteen Federal departments, administrations, and agencies are represented in the Hampton Roads region: Departments of Veterans Affairs, Agriculture, Commerce, Energy, Homeland Security, Interior, Justice, Labor, and Transportation.
Port /Maritime Sector
In 2016, Virginia ports generated 530,800 jobs, $27.4 billion in wages, $88.4 billion in spending and $2.7 billion in state and local taxes. (10.1 percent of Virginia’s gross state product) (http://www. suffolknewsherald.com/2017/01/28/virginia-ports-a-driving-economic-force/) Naturally safe harbors in Hampton Roads have brought commerce and trade to the Hampton Roads region for centuries. Deepwater access that can accommodate today’s -and tomorrow’ssupertankers, a strategic Mid-Atlantic location and a streamlined infrastructure network have helped to make Hampton Roads a premier international port. Over 3,000 foreign and domestic vessels calling annually.
In addition to the Port of Virginia, Hampton Roads’ economy is built on many port-related activities including commercial, military land-based support facilities and inland transportation, ship repair, shipbuilding, cargo terminals, cargo and cruise ships, maritime insurance and legal services, shipping line offices, mega yacht repair and maritime construction.
Hampton Roads is well poised to be the dominant port on the East Coast. The 2040 Virginia Port Authority Master
Helpful Websites
Fort Monroe Authority
www.fmauthority.com
Franklin & Southampton County Chamber ofCommerce
www.FSAChamber.com
Gloucester County Chamber of Commerce
www.GloucesterVAChamber.org
Greater Williamsburg Chamber & Tourism Alliance
www.WilliamsburgCC.com
Hampton Roads Chamber of Commerce
www.HamptonRoadsChamber.com
Hampton Roads Alliance
www.HamptonRoadsAlliance.com
Hampton Roads Military & Federal Facilities Alliance
www.HRMFFA.org
Hampton Roads Performs
www.HamptonRoadsPerforms.org
Plan is driven by the creation of 600 acres of land and opening of Craney Island Marine Terminal, improvements at Norfolk International Terminals and Portsmouth Marine Terminals, development at the APM Terminal in Portsmouth and enhanced intermodal rail service.
tourism arts & culture / sector
Hampton Roads is a popular vacation destination for millions of visitors annually. Each city has its own unique attractions, events and activities. From the surf and sand of the longest pleasure beach in the world at Virginia Beach, to the Historic Triangle of Jamestown, Yorktown and Williamsburg, to the convention centers spread throughout the region, Hampton Roads is an established multi-faceted tourist destination. The Leisure and Hospitality industry employs over 80,000 people in Hampton Roads. In addition to the hoteliers who depend on tourists to fill their rooms, tourism brings new money to restaurants, retail establishments and government coffers. 25
Tourism contributes to quality of life through the influx of tax revenue, creation of jobs and improved services and attractions that add to the vibrancy of life in Hampton Roads. For businesses in Hampton Roads this means improved recruiting and retention and greater quality of life for those employees. 26
Hampton Roads Planning District Commission
www.hrpdcva.org
Hampton Roads Regional Blog
SmartRegion.org is no longer available
Isle of Wight-Smithfield Windsor Chamber of Commerce
http://www.hrpdcva.gov/
ODU Center for Real Estate & Economic Development
www.BPA.ODU.edu/creed/
Opportunity, Inc.
www.Opp-Inc.org
Peninsula Council for Workforce Development
www.PCFWD.org
Virginia Peninsula Chamber ofCommerce
www.VPCC.org
York County Chamber of Commerce
www.YorkCountyChamberVA.org
Arts & Culture in Hampton Roads serve as a significant component of the Tourism industry. The arts strengthen and educate communities, lift spirits and build a better quality of life for everyone. As a billion dollar industry in Virginia, arts and cultural organizations create millions of dollars in revenues for area businesses, attract out-of-state tourism spending, generate millions of dollars in personal income for Hampton Roads’ workforce and entrepreneurs and create thousands of jobs for residents in the region. 27
Employment
The Virginian-Pilot reported that jobs continue to increase at a slow, but steady pace. Port of Virginia is responsible for nearly 375,000 jobs and its economic impact is 60.3 billion a year. Navy Cyber Command in Suffolk brought 700 military, civilian and con
tracting jobs to the area. (http://www. dailypress.com/news/military/dp-nwsnavidfor-established-20150128-story. html) Chesapeake will add new jobs with Xerox and the Sumitomo Machinery Corp. of America. Norfolk’s Waterside Live, AECOM, Bauer Compressors, Inc., and American Airlines will top the list of companies adding jobs. Green Mountain did build a facility in the Shirley T. Holland Intermodal Park. Cost Plus World Market and Safeco Products are also there. (http://www.dailypress.com/ news/isle-of-wight-county/dp-nws-iwintermodal-park-contract-developer20170208-story.html). Portsmouth will make gains with Kroger and Suffolk with the Shenzhen Superwatt Power Technology Co. Virginia Beach rounds out the list with LoanCare, Medical Facilities of America, Amerigroup Corp. (expanding to Norfolk,) IMS Gear (opening a new 112,000 square foot facility from state funds and grants), Labels Unlimited, and Green Flash Brewing Company. IMS Gear opened in Virginia Beach and employs 220 workers (as of 2016). (http://www.13newsnow.com/ news/local/mycity/virginia-beach/ made-in-america-and-made-in-virginiabeach-1/124824819)
In Feb. 2017, Sanjo Corte Fino selected Virginia Beach as the site of its 24,000-square-foot North American manufacturing headquarters. (http:// pilotonline.com/inside-business/news/ commercial-real-estate/the-millergroup-is-building-sanjo-corte-fino-svirginia/article_f7e3313c-e035-5993- bc4b-c80584d16d49.html)
Newport News shipyard voted in favor of a 52-month contract through July 9, 2017, with Huntington Ingalls Industries Inc., the parent company of Newport News Shipbuilding. The Apprentice School,” a six-acre, $70 million venture for Newport News Shipbuilding was reaccredited until 2022 (http:// pilotonline.com/inside-business/ newport-news-shipbuilding-apprenticeschool-reaccredited/article_57465813- 5037-5319-9dc2-4024b855e642.html)
In addition, largest recent growth in the Hampton Roads region was in the healthcare and social assistance sectors, followed by leisure and hospitality, scientific and technical sciences, retail trade, and finally federal and manufacturing, as reported by Hampton Roads Planning and District Commission.
Courtesy of Norfolk
photo
Norfolk
Measuring Success, Follow the numbers
Business, civic and government leaders in the region use the web-based Hampton Roads Performs as their resource for data that shows how the region is performing on key quality of life indicators.
Open to full public access, these quality of life indicators answer the question, “How is the Hampton Roads Region Doing?” and the results are used to compare Hampton Roads to other regions.
Workforce Quality: Over 27% of residents hold at least a Bachelor’s degree and the number of community college, high school career and technical education awards is increasing. 1
Business Startups: The rate of startups, a measure of entrepreneurship, remains high compared to previous years.
Personal Income: Among peer metro areas, per capita income is growing fastest in the Hampton Roads area and faster than the rate for the U.S. as a whole. 30 A strong economy is characterized by prosperity reflected in improving standards of living.
Unemployment: Unemployment was 4.3% as of December 2016, but thanks to a strong military presence, still well under the national average which was 4.9% as of October 2016.
