Your SlideShare is downloading. ×
Virginia's Hampton Roads Regional Overview
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Virginia's Hampton Roads Regional Overview


Published on

Is your business looking to relocate or expand? Virginia's Hampton Roads just may be your answer. Strategically located along the mid-Atlantic coast, Hampton Roads' pro-business attributes, enviable …

Is your business looking to relocate or expand? Virginia's Hampton Roads just may be your answer. Strategically located along the mid-Atlantic coast, Hampton Roads' pro-business attributes, enviable climate and lifestyle makes this dynamic region a prime location.

Published in: Business, News & Politics

1 Like
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Virginia’s Hampton Roads Regional Overview 4 th Quarter 2009
  • 2. Meet HREDA The Hampton Roads Economic Development Alliance (HREDA) promotes Virginia's Hampton Roads as the premier location for capital investment and business expansion. As the region's lead economic marketing organization, the Alliance aggressively pursues new business opportunities throughout the world. The Alliance’s goal is to match your business needs with the assets found in Virginia’s Hampton Roads. To that end HREDA will…
      • Provide a manager dedicated to your project
      • Work confidentially and without charge
      • Guide and support you through the planning, expansion and/or relocation process
      • Coordinate visits highlighting fifteen (15) localities
      • Connect you to business leaders in the region
      • Advise you on financial incentives
      • Serve as your liaison with the State of Virginia Economic Development Partnership and numerous business services
      • Become your one-stop source for information and cost comparisons
      • Act as a liaison between you and the best local legal and financial advisors
  • 3. General Overview
    • 2 nd largest Metropolitan Area between Washington D.C. and Atlanta, GA
    • Centrally located along U.S. East Coast
    • Civilian labor force of over 800,000
    • Over 96,000 students enrolled in the region’s 8 universities and 4 community colleges
    • Offers close proximity to key U.S. markets
    • Unobstructed ice free harbor with 50 ft deep channels located 18 miles from the open ocean
    Sources : U.S. Census Bureau; State Council for Higher Education for Virginia, Port of Virginia Aerospace and Aviation Corporate and Professional Operations Maritime and Logistics Modeling and Simulation Industry Clusters
  • 4. Population Source: U.S. Census Bureau Total Population: 1.6 million James City 62,414 Williamsburg12,481 Gloucester 38,656 York County 61,027 Newport News 179,614 Poquoson 11,829 Hampton 145,494 Southampton 18,480 Isle of Wight 35,472 Suffolk 82,302 Chesapeake 220,111 Virginia Beach 433,746 Portsmouth 100,577 Norfolk 234,220 Franklin 8,877 3
  • 5. Infrastructure Hampton Roads is linked to domestic markets by one of the country's most modern highway systems. Interstate 64, a major east-west route, encircles the metropolitan area and connects Hampton Roads to I-95, a principal north-south route. Additionally, U.S. Routes 58 and 460 connect Hampton Roads to I-95 and I-85. To the east, the Chesapeake Bay Bridge Tunnel saves 90 miles to the New York/New Jersey corridor and gives coastal highway traffic direct access to Hampton Roads. 4 Sources: Virginia Port Authority; U.S. Census Bureau; 2008 American Community Survey Distance & Delivery Time from Hampton Roads to Major U.S. Cities City Distance Delivery Time (in days) Miles Kilometers Motor Carrier Rail Washington, DC 193 310 1 2 Philadelphia, PA 387 622 2 3 New York, NY 435 700 2 3 Atlanta, GA 597 960 2 4 Boston, MA 571 918 2 4 Dallas, TX 1,376 2,214 2 4 Detroit, MI 732 1,178 2 5 Chicago, IL 899 1,146 2 5 Miami, FL 959 1,543 3 5 Houston, TX 1,382 2,224 3 7 Average Commute Time (Minutes) Atlanta, GA Charlotte, NC New York, NY Washington, DC U.S. Average Hampton Roads, VA 30.7 25.1 34.8 33.4 25.3 23.3
  • 6. Port and Rail Hampton Roads is served primarily by the rail transportation giants Norfolk Southern and CSX and is home to Norfolk Southern’s corporate headquarters. The Ports at Hampton Roads create a perfect entry location for these railways to distribute throughout the East Coast and the Midwest. Efficient connections with other rail systems and motor carriers provide easy and affordable access to the rest of the U.S. Rail Service
    • The Port of Virginia
    • has the lowest pilferage rate on the U.S. East Coast
    • handled 2.0 million TEUs in 2008, a 2% decrease from calendar year 2007
    • has 20 shipping lines offering weekly service to Europe and Asia
    The Hampton Roads region hosts one of the country’s largest geographic foreign trade zones (FTZs) Sources : The Virginia Port Authority; Norfolk Southern; CSX 5
  • 7. Airports in Hampton Roads serve 4.7 million passengers annually with low-fare service and over 200 daily flights through Norfolk International Airport (ORF) and Newport News/Williamsburg International Airport (PHF). Also serving northern Hampton Roads is the Richmond International Airport (RIC). = Nonstop flights = Direct flights (same plane, max 2 stops) 6 Sources: Norfolk International Airport, 2009; Newport News/Williamsburg International Airport, 2009; Richmond International Airport Hampton Roads Air : Passenger
  • 8. Labor Pool With approximately 13,000 military personnel exiting annually, and over 30,000 military spouses, Hampton Roads has a continuously replenishing labor force. 7 Sources: Virginia Employment Commission; 2009 Hampton Roads Statistical Digest; U.S. Department of Defense Skilled Workforce with a “Can-Do” Attitude Civilian Labor Force Statistics August 2009 Civilian Labor Force 842,634 Employment 786,915 Unemployment Rate 6.6% Estimated total labor of over 800,000 Military Labor Statistics Active-duty Personnel (2009) Navy 79,192 Army 7,384 Air Force 12,846 Coast Guard 1,738 Total 101,160
  • 9. Employment and Wage Information 8 Sources: Virginia Employment Commission (Nonfarm Employment August 2009); U.S. Bureau of Labor Statistics (Wage Rate Data – May 2008) The Average Wage Rate in Hampton Roads is 8% below the U.S. Average Hampton Roads offers companies a diverse economy plus competitive wage rates Wage Rate Comparison Metro Area Mean Annual Wage Rate (All Occupations) New York, NY $54,850 Newark, NJ $50,680 Los Angeles, CA $47,600 Baltimore, MD $47,030 Philadelphia, PA $46,450 Atlanta, GA $44,170 Charlotte, NC $42,490 U.S. Average $42,270 Hampton Roads, VA $38,790
  • 10. Major Private Sector Employers 9 Source: HREDA Research Note: This list is a sampling of major employers in the region (based on the number of employees) and is not intended to be a complete list. Employer Name City Employees Industry Northrop Grumman Newport News Newport News 19,000 Manufacturing Sentara Healthcare Norfolk 17,000 Services Norfolk Naval Shipyard Portsmouth 7,500 Government / Military Riverside Health System Newport News 7,050 Services Smithfield Foods, Inc. Smithfield 5,000 Manufacturing NASA Langley Research Center Hampton 4,000 Government / Military Bank of America Norfolk 3,600 Finance Dominion Enterprises Norfolk 2,800 Services Chesapeake Regional Medical Center Chesapeake 2,500 Services Measurement Specialties, Inc. Hampton 2,428 Manufacturing Canon Virginia, Inc. Newport News 2,235 Manufacturing BAE Systems Norfolk (Norshipco) Norfolk 2,200 Manufacturing Gwaltney of Smithfield, Inc. Smithfield 2,100 Manufacturing Portfolio Recovery Associates Norfolk 2,032 Services STIHL Inc. Virginia Beach 2,016 Manufacturing GEICO Direct Virginia Beach 2,000 Finance Amerigroup Corporation Virginia Beach 1,737 Finance FHC Health Systems (Value Options Inc.) Norfolk 1,700 Services HSBC (Household International, Inc.) Chesapeake 1,200 Finance MANCON, Inc. Virginia Beach 1,200 Services International Paper Company Franklin 1,100 Manufacturing Cox Communications, Inc. Virginia Beach 1,000 Services
  • 11. Education Strong public education plus numerous post-secondary educational centers ensure that Hampton Roads can offer companies an educated and labor ready workforce Nearly 15,000 degrees, representing a variety of different fields, were conferred by Hampton Roads’ colleges and universities in 2009, an increase of 2% over 2008. 10 Sources : SCHEV; U.S. Census Bureau Colleges and Universities (8) University / College Enrollment (2008-2009) 23,086 7,892 6,325 5,427 4,904 4,460 1,381 807 Percentage of population (25+) with high school education or higher Attainment Level Hampton Roads U.S. Average At least a high school diploma 88.3% 84.5% Some college (no degree) 23.2% 19.5% Associates Degree or higher 35.4% 34.9% Community Colleges (4) College Enrollment (2008-2009) 26,898 10,557 1,628 3,307
  • 12. Cost of Doing Business - Tax Overview Sources : VEDP; Research Institute of America, State and Local Taxes – All States Tax Guide , 3/20/2007 and 5/15/2007); The Tax Foundation; Forbes Magazine; Pew Center on the States Virginia does not impose a unitary tax on worldwide profits 11
    • Corporate Income Tax
      • Tax rate of 6%, not raised since 1972
      • Has a three-factor apportionment formula of payroll, property and sales (with sales double-weighted)
        • The double-weighted sales factor has the effect of reducing tax liability for firms with significant sales to customers outside Virginia
      • Tax credits for job creation and investment in economically stressed areas
      • No franchise or net worth tax
    • Sales and Use Tax
      • The total tax is 5 percent (4 percent state and 1 percent local)
      • A seller is subject to a sales tax on gross receipts derived from retail sales or leases of taxable tangible personal property
      • Manufacturers do not pay tax on purchases used for production; distributors do not pay tax on items purchased for resale
    • Virginia was the 4th most corporate tax-friendly state, as reported in 2008 by The Tax Foundation .
    • In 2008, Forbes Magazine named Virginia as “The Best State for Business.” It was the third consecutive year Virginia received this distinction.
    • In 2008, The Pew Center‘s Government Performance Project recognized Virginia as “Best Managed.” Virginia was one of only three states to receive this title.
    Corporate Income Tax Rate Comparison Virginia 6.00% U.S. Median 6.90% South Atlantic Median 6.90%
  • 13. Cost of Doing Business - Labor Costs Virginia’s Unemployment Insurance and Workers’ Compensation rates are among the lowest in the U.S. Virginia is an Employment At Will and a Right-to-Work State Sources : Union Membership and Earnings Data Book (2009 Edition); Virginia Economic Development Partnership; U.S. Department of Labor; Actuarial and Technical Solutions., Inc. 2009) 12 State Workers’ Compensation Rate (Per $100 of Payroll) Unemployment Insurance Tax per Employee California $6.09 $284 Florida $3.89 $96 Georgia $3.75 $127 Maryland $3.08 $145 New Jersey $4.92 $557 New York $4.77 $292 North Carolina $3.24 $335 Pennsylvania $4.09 $374 South Carolina $3.71 $146 Virginia $2.08 $91 U.S. Average $3.90 $157 Union Membership Type of Workforce Hampton Roads U.S. Total Workforce 3.4% 12.4% Total Private Sector 2.5% 7.6% Private Sector Manufacturing 3.9% 11.4% Public Sector 6.2% 36.8%
  • 14. Labor Costs Employee benefits paid as a percentage of payroll in Virginia are among some of the lowest in the U.S. Source : Bureau of Labor Statistics, Employer Costs for Employee Compensation, September 2009 13 South Atlantic Percentage of Benefits Paid Legally Required Payments: Federal & State Payroll Taxes, Unemployment Compensation, Workers’ Compensation Insurance Benefits Paid for Time Not Worked: Paid Holidays, Paid Time Off, Payments for Vacation Time, Sick Leave Pay, Paid Breaks, Family & Medical Leave Pay Medical Benefits Payments: Sickness/Accident Insurance, LTD/Wage Continuation, Medical, Dental & Retiree Medical Insurance Premiums, Vision Care, Life Insurance, Prescription Drug Coverage Retirement and Savings Benefits: 401(K) & Similar, Defined Benefit Pension Plan, Cash Balance or Other Hybrid Plan, Administration Costs, Profit Sharing, Stock Bonus/ESOP Miscellaneous Benefits: Overtime and premium, Shift differentials, Nonproduction bonuses Geographic Region Total Percentage of Benefits Paid East North Central (WI, IL, MI, IN, OH) 30.1% East South Central (KY, TN, MS, AL) 28.5% Middle Atlantic (NY, PA, NJ) 30.7% Mountain (MT, WY, NV, UT, ID, CO, AZ, NM) 27.4% New England (ME, VT, NH, MA, CT, RI) 31.5% Geographic Region Total Percentage of Benefits Paid Pacific (WA, OR, CA, HI, AK) 29.3% South Atlantic (WV, VA, MD, DE, DC, NC, SC, GA, FL) 27.9% West North Central (ND, SD, NE, KS, MN, IA, MO) 29.0% West South Central (TX, OK, AR, LA) 27.7%
  • 15. Source : Virginia Economic Development Partnership Virginia offers a variety of performance-based incentives designed to target the needs of the company in conjunction with the development plans of localities and the state Incentives Overview 14 Local project specific incentives may also be available. Examples Include:
    • Economic Dev. Grants
    • and Loans
    • Utility Connections
    • Relocation Assistance
    • Machinery/Tool Tax
    • Rebates
    Incentive Advantage Governor’s Opportunity Fund Discretionary funds Virginia Jobs Investment Program Customized recruiting and training assistance for companies Sales and Use Tax Exemptions Virginia offers some of the broadest sales and use tax exemptions in the U.S. Property Tax Exemptions Virginia does not tax intangible property, manufacturers' inventory and manufacturers' furniture, fixtures and corporate aircraft Enterprise Zones State and local incentives to businesses that invest and create jobs within Virginia's 56 enterprise zones Foreign Trade Zones Virginia and Hampton Roads offer foreign trade zones and subzones which effectively eliminate or reduce customs duties
  • 16. Cost of Doing Business - Real Estate Hampton Roads offers a variety of real estate options—including executive suites—at exceptional prices Search latest listings at N/A = Data not available * Represents cost for mid-town NY 15 Sources : NAI Harvey Lindsay Market Research 2009; RS Means Quick Cost Calculator Square Meters = Square Feet * 0.0929   Hampton Roads, VA Atlanta, GA Baltimore, MD Orlando, FL New York, NY Washington, DC Downtown Office Average Rental Rate per Sq.Ft. Class A $20.50 $25.25 $25.00 $29.00 $52.50 $48.00 Class B $14.00 $22.52 $19.00 $22.00 $35.00 $41.00 Suburban Office    Class A $18.00 $23.50 $24.00 $24.00 $100.00* N/A Class B $13.50 $19.14 $21.00 $21.00 $52.00* N/A Industrial Bulk Warehouse $4.75 $3.19 $5.50 $5.70 N/A $12.00 Manufacturing $6.00 $3.10 N/A $7.00 N/A N/A High Tech / R&D $8.50 $5.25 $10.00 $30.00 N/A $14.00 Construction Median Cost (40,000 sq.ft. warehouse) Construction Costs $2,134,833 $2,222,500 $2,321,500 $2,252,000 $3,520,000 $2,489,000 Contractor's Overhead & Profit $533,833 $555,500 $580,500 $563,000 $880,000 $622,500 Architectural Fees $186,667 $194,500 $203,000 $197,000 $308,000 $218,000 Total Building Cost $2,855,333 $2,972,500 $3,105,000 $3,012,000 $4,708,000 $3,329,500
  • 17. Regional Economy - Technology Assets The nation’s . . . 16 The Commonwealth of Virginia ranks second in the nation in total defense employment and Hampton Roads has the largest share in Virginia with 52% Sources : Old Dominion University; Jefferson Lab; Decision Data Resources The world’s . . .
    • most advanced particle accelerator, the Continuous Electron Beam Accelerator, resides at the Thomas Jefferson National Accelerator Facility
    • largest proton therapy institute will be operated by Hampton University starting in 2010
    • first in-vitro fertilizations and birth took place at the Jones Institute, Eastern Virginia Medical School
    • first doctorate in “Modeling and Simulation” was awarded by Old Dominion University
    • largest Seawater Research Laboratory is operated by the Virginia Institute of Marine Science (VIMS) at the College of William and Mary. VIMS is among the largest marine research and education centers in the nation
    • only manufacturer of nuclear-powered aircraft carriers is located in Hampton Roads
  • 18. Business Incubators 17 Sources : Franklin Business Incubator; Hampton Roads Technology Incubator System 40,000 sq. ft. located in downtown Franklin. Designed for existing small businesses as well as new business startups. Provides cost-effective space, administrative services and professional equipment. Franklin Business Incubator Hampton Roads Technology Incubator System (HRTIS) The Hampton Roads Technology Incubator System is comprised of city-specific technology-based incubator facilities located within the Hampton Roads region of southeastern Virginia. The HRTIS currently has 15 clients and 11 graduates. Hampton Technology Incubator (HTI) The HTI is primarily supported by the City of Hampton and the Hampton Roads Technology Council. Hampton is dedicated to nurturing high-growth, high tech businesses into profitable industry leaders. James City County Incubator (JCCTI) The JCCTI is the newest addition to the system and is located in Williamsburg, VA. This facility offers full incubator services, including high speed internet, board room facility, copier & printer services, common area, individually locked offices, after-hours access and new office furniture.
  • 19. NATO: Allied Command Transformation - Norfolk Department of the Navy: U.S. Fleet Forces Command - Norfolk DoD: United States Joint Forces Command - Norfolk USMC: Marine Forces Atlantic - Norfolk USCG: Maintenance and Logistics Command Atlantic - Norfolk USCG: Atlantic Area Command - Portsmouth USCG: Integrated Support Command - Portsmouth U.S. Army: Surface Deployment and Distribution Command - Newport News U.S. Army: Training and Doctrine Command – Hampton USAF: Air Combat Command - Hampton Headquartered Military Commands 18 Source : 2009 Hampton Roads Statistical Digest
  • 20. International Presence, Service and Support 180 international firms representing 27 countries in Hampton Roads means the region has internationally-oriented services and support in place " Other" includes Australia, Belgium, Brazil, Chile, China, Finland, Greece, Hong Kong, India, Israel, Liechtenstein, Norway, South Korea, Spain, Taiwan & Turkey 19 Source : HREDA Research Romania France Norway Finland Denmark Cyprus Brazil Belgium Sweden Moldova Iceland Italy Germany Consuls in Hampton Roads
  • 21. Hampton Roads Lifestyle Hampton Roads Cost of Living Offering the best of city, suburban and country living 20 Sources : ACCRA, 2 nd Quarter 2009; National Association of Realtors, 2nd Quarter 2009 Metropolitan Area Existing Home Prices; ODU, Center for Real Estate & Economic Development, 2009 Market Review Expansive Shoreline Varied Residential Options Museums State and National Parks Opera Historic Cities, Towns, Villages Festivals Shopping Malls Recreational and Professional Sports and Venues Amusement Parks Composite Index 112.1 Groceries 107.9 Housing 121.6 Transportation 94.4 Health Care 108.6 *National Average = 100 Median price of existing single–family homes $216,000 Average apartment rent $871 per month
  • 22. Sampling Our Business Community “ We hire in excess of 500 college graduates every year…the workforce is very stable and very successful.” Joe Witt Corporate Treasurer, Ferguson Enterprises “ Southeast Virginia is seen as a strategic location for NYK Logistics’ major East Coast presence. Centrally located with excellent port facilities and infrastructure, our expansion here further enables us to provide a full complement of logistics services for our clients. That, combined with a talented workforce and a business-friendly community, made this an easy choice.” Lane Turner President, Warehouse Division, NYK Logistics Inc 21
  • 23. The Hampton Roads Economic Development Alliance HREDA.COM U.S. Headquarters: 500 Main Street | Suite 1300, Norfolk, VA 23510 USA 11820 Fountain Way | Suite 301 Newport News, VA 23606 USA T: +1.757.627.2315 | F: +1.757.826.6706 World Trade Center Birkenstrasse 15 28195 Bremen, GERMANY T: +49.421.174660 4 East Bank House Tide Mill Way Woodbridge, Suffolk 1P12 1BY UK T: +44.1394.610022 T: +1.757.627.2315 |F: +1.757.623.3081