A Bull Run In Hampton Roads Economy

Even though the local economy has been slowed by declines in defense and other government spending over the past several years and has been reeling from the shocks of September 11, 2001, the outlook for 2003 and beyond is quite positive. Many aspects of economic development show signs of resiliency and a quick recovery from the “depression” of late 2001 and early 2002.

Due to its prime location at one of the world’s greatest ports, interstate accessibility, rail, truck, air, ship and all other modes of transportation, both new and expanding businesses benefit economically. The Peninsula has a stable growth-oriented economy, relative low taxes and competitive wage and other operating cost factors that encourage economic development across a wide spectrum business activities.

Additionally, the local economy is buoyed by its mature, highly educated, and diverse workforce and the commitment of the local communities and their educational facilities and government agencies to workforce development for the future of the area . The area has a reputation of being a “high-tech” community and will continue to attract a wide-based level of high technology firms, both large and small, and associated research activities, venture capital and technically skilled personnel to the community.

Both employment and unemployment rates indicate positive growth ahead. Unemployment rates continue to remain below the average for the United States and have consistently remained below the “f ull employment” rate of 4 percent for a number of years. Employment in the local area is continuing to set net record highs, across all categories of activity.

Throughout the year, new hires should outpace the number of dismissals with more than 37% of new jobs being created in professional managerial, general business management, insurance, finance, accounting, retail sales, tourism and real estate with average annual incomes of slightly more than $46,000.

The sectors of the local economy predicted to have the greatest growth patterns in 2003 and beyond are those in tourism and the travel related industries, financial services, state and local government, shipbuilding and other defense spending areas, port activities and education. Although consumer confidence was shaken by the events and aftershocks of September, 2001 their resilience has allowed them to recover quickly and remain a stabilizing influence in local economy. Travel and tourism, as well as retail spending especially on durable goods in the local area were especially hit hard but now are recovering smoothly.

Defense spending in the local area is increasing, reversing a seven year trend of decline.

In 2003 local businesses confidence in the economy will grow and become more and more optimistic about future economic development. Local business executives are optimistic for the future performance of the local economy generally as well as for their outlook of their own particular business venture.

Population and income growth will continue for the next few years in the local area as well. Population growth predictions for the Peninsula portion of the entire Norfolk-Virginia Beach-Newport News Metropolitan Statistical Area for the five year period 2001-2006 are for a gain of 3.2% as compared with 2.9% for the entire MSA. The majority of population growth in the Peninsula area will continue to be in the counties of James City and York.

Household Effective Buying Income in the local area will also increase during that time period, with the major gains being in Poquoson, James City County and Williamsburg. Growth in population and income on the Southside of the MSA, a vital part of the economic picture for the entire local economy, will occur primarily in, Suffolk, Chesapeake and Virginia Beach. Suffolk and Chesapeake, closely allied with the Peninsula economy will experience continued rapid growth in all major components of their economic development. This development coupled with expansive growth in the Coliseum Central section of Hampton, Port Warwick, Oyster Point and Patrick Henr y complexes in Newport News and others will help insure the economic future of this area.

Overall, the local economy provides a unique combination of a mature work force, available and affordable and developable natural resources, a continually improving transportation system, and a bevy of dedicated individuals, groups, and government agencies that work in concert to complement business activity and enhance their competitive advantage in the Global Community. This will ensure the enrichment and full development of the economic potential of this area for several years to come.