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Page | 1
January | 2009
Source: University of Virginia, Weldon Cooper Center for Public Service
80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 80,000
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
AgeCohort
Hampton Roads Population in 2007
Male
Female
Virginia’s Hampton Roads Regional Profile
– Executive Summary –
Virginia’s Hampton Roads is a region rich in history, situated in the southeastern corner of Virginia, where the Atlantic Ocean
meets the Chesapeake Bay, the largest estuary in the United States. The region, comprised of 16 counties and cities, each with
unique assets, is enhanced by an extensive system of waterways and a population that has been growing and changing over
the last decade. This profile summarizes key demographic, economic and transportation trends.
Stable and increasingly diverse population.
Compared to Virginia and the nation as a whole, the population of the
Hampton Roads region has grown at a relatively slow pace and tends to
be younger and more diverse than the population of the United States.
Intricate and unique economy with stable employment.
Hampton Roads has one of the largest concentrations of military
personnel in the United States and increases in military pay and federal
contracts have significantly contributed to the region’s economic growth.
However, as home to a number of private employers, Hampton Roads
also has experienced relatively strong employment growth across several
industry sectors, particularly Education and Health Services, Leisure and
Hospitality and Retail Trade. The crown jewel of the region is the Port of
Virginia, which contributes nearly 350,000 jobs and greater than $13
billion in employee wages each year according to an analysis by the
College of William and Mary’s Mason School of Business.
Effective but aging transportation system.
Because of the abundance of waterways, the transportation network is
heavily dependent on bridges and tunnels. Per capita vehicle miles
traveled has remained relatively stable over the last 10 years, suggesting that commuting distances are relatively short. But, aging infrastructure
and congestion around tunnels and bridges pose a threat for future economic development.
Favorable educational attainment levels.
Children entering kindergarten in the Hampton Roads region are prepared at higher rates of literacy fundamentals than any other region of
Virginia. The population living in Hampton Roads compares favorably to other regions and metropolitan areas in high school and college degree
attainment.
Page | 2
January | 2009
Hampton Roads is located in southeastern Virginia where the
Atlantic Ocean meets the Chesapeake Bay. The region is
comprised of 16 jurisdictions – the cities of Chesapeake,
Franklin, Hampton, Newport News, Norfolk, Poquoson,
Portsmouth, Suffolk, Virginia Beach and Williamsburg, and the
counties of Gloucester, Isle of Wight, James City, Southampton,
Surry and York. The region’s land area covers approximately
2,907 square miles and includes an extensive system of
waterways including the Intercoastal Waterway and the James,
York, Nansemond and Elizabeth Rivers.
The name “Hampton Roads” originated from two separate terms. The term “Roads” is a nautical expression for a
protected anchorage or safe harbor. The term “Hampton” dates from the early 17th
century when the first royal governor,
Lord de la Ware, named the area in honor of Henry Wriothesley, the English Earl of Southampton, a major backer of the
Virginia Company who financed our Nation’s first English settlers. The region’s rich history includes the farming and
hunting practices of the many tribes of Native Americans who inhabited the fertile lands for centuries prior to the first
transatlantic migrants. The year 1607 marked the arrival of America’s first citizens who landed in Jamestown aboard three
tiny ships, the Susan Constant, Godspeed, and Discovery.
The region played a key role at both the beginning and the end of the Revolutionary War, with General Cornwallis
surrendering to George Washington at Yorktown in 1781. The most notable naval battle of the Civil War took place in
Hampton Roads in 1862 as the Ironclad CSS Virginia (also known as the Merrimac) fought the newly built USS Monitor.
Though the battle was inconclusive, the two ships forever changed the nature of naval warfare. The region’s safe harbors,
proximity to the ocean, and rich history have worked together to form the foundation of the Hampton Roads region.
LOCATION
HISTORY
Page | 3
January | 2009
DEMOGRAPHICS
Source: Weldon Cooper Center
80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 80,000
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
AgeCohort
Hampton Roads Population in 2007
Male
Female
According to the U.S. Census Bureau, Hampton Roads is the 34th
most populous Metropolitan Statistical Area (MSA) in the
United States. The University of Virginia, Weldon Cooper Center for Public Service (Weldon Cooper Center) estimates that
the region’s population was 1,647,937 in July of 2007. Over the past decade, Hampton Roads’ population has grown at an
annualized rate of 0.64%, relatively slow compared to the growth rate of 1.20% for both the Nation and the
Commonwealth.
As reported by the U.S. Census Bureau, the
median age of the Hampton Roads
population in 2007 was 35.2, over a year
less than the national average of 36.7.
Evidence of the baby boom, baby bust, and
echo boom generations are clearly visible
in the region’s population histogram. The
population histogram also illustrates the
uneven male to female ratio in the age 15-
19 cohort and the 20-24 cohort, a
testament to the large impact of the
military presence in Hampton Roads. The
U.S. Census Bureau estimates that
Hampton Roads is home to 623,698
households, with an average of 2.56
persons per household. Females and
males constitute 51.1% and 48.9%,
respectively.
Page | 4
January | 2009
DEMOGRAPHICS (continued)
The racial and ethnic composition in Hampton Roads is significantly different from that of the Nation. Hampton Roads has
proportionately more African Americans than the Nation and proportionately fewer persons in every other racial category.
The 2007 American Community Survey estimates that approximately 15.1% of the Nation’s population is Hispanic,
compared to 4.0% in Hampton Roads. Filipinos (a subset of the Asian Population) account for 1.8% of the region’s
population, compared to a nationwide average of 0.8%.
75.6%
12.7%
0.8%
4.5%
0.1%
6.3%
PopulationDistribution by Race in the United States
Source: U.S. Census Bureau
61.7%
32.5%
0.4%
3.1%
0.1%
2.1%
PopulationDistribution by Race in Hampton Roads
White
Black
American Indian and Alaska
Native
Asian
NativeHawaiian and Other
Pacific Islander
Two or more races
Page | 5
January | 2009
Source: U.S. Bureau of Economic Analysis
Economists typically refer to Gross Product when evaluating the
size or strength of a particular economy. In 2006, the Bureau of
Economic Analysis estimated the Gross Regional Product (GRP)
of the Hampton Roads Metropolitan Statistical Area (MSA) to be
$71.8 billion dollars, making it the 38th
largest metro economy in
the United States. Global Insight estimates that the Hampton
Roads economy is similar in size to that of Slovakia or Vietnam.
The Hampton Roads economy has experienced relatively
constant growth in recent years. Since 2001, economic growth
in the region has averaged 6.7% annually (3.3% in “real” per
capita dollars). Much of this growth is the result of increased
Department of Defense (DoD) spending within the region.
Income
According to the U.S. Bureau of Labor Statistics, Hampton Roads’ per capita income has historically been below the
national average. The region’s relatively low wages can be attributed to such factors as the region’s unique occupational
and industrial mix. Increases in regional defense spending and military pay coupled with a national recession in 2001
helped to grow the region’s relative per capita income during the period from 2000 through 2003. Hampton Roads’
median household income ($54,824), as calculated by the U.S. Census Bureau in 2007, compares favorably against the
national average ($50,007). The income distribution in Hampton Roads is more concentrated in the middle income range
as compared to the Nation, which explains how the median income might compare favorably while per capita income
does not.
THE ECONOMY
INCOME
Page | 6
January | 2009
As prices for goods and services differ across the nation, any comparative discussion on income should include a
discussion on the cost of living. Until the early part of the 21st
century, Hampton Roads enjoyed a cost of living that was
below the national average. The low cost of living somewhat offset the region’s relatively low per capita income and
attracted businesses that were concerned about labor costs. The relative cost of living in Hampton Roads has increased
dramatically since the turn of the decade. The Council for Community and Economic Research surveys hundreds of
metropolitan areas each quarter to produce perhaps the most accurate comparative cost report for urban areas. Data for
the third quarter of 2008 revealed that composite prices in Hampton Roads were 7.3% above the average of all reporting
urban areas. Hampton Roads reported above average prices for housing, health care, and miscellaneous goods and
services and below average prices for grocery items and goods and services.
INCOME (continued)
Source: U.S. Census BureauSource: U.S. Bureau of Economic Analysis
U.S. Per Capita Income
Hampton Roads Per Capita Income
Page | 7
January | 2009
Year
Employment
Growth
Population
Growth
Unemployment
Rate
2000 -2.00% 0.86% 2.5%
2001 1.82% 0.56% 3.3%
2002 2.28% 0.43% 4.1%
2003 1.50% 0.58% 4.2%
2004 1.31% 1.41% 4.0%
2005 1.50% 0.60% 3.9%
2006 1.74% 0.24% 3.3%
2007 1.37% 0.70% 3.2%
2008 1.30% NA 4.2%
Sources: U.S. Bureau of Labor Statistics
and Weldon Cooper Center
Source: U.S. Bureau of Economic Analysis
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
2000 2001 2002 2003 2004 2005 2006
0
500,000
1,000,000
1,500,000
2,000,000
GrowthRate
TotalEmployment
Hampton Roads Employment
Total Employment EmploymentGrowth Rate
According to the U.S. Bureau of Economic Analysis, the
Hampton Roads region had 1,038,537 employees in 2006,
which calculates to 1 job for every 1.58 people. Hampton
Roads’ rate of growth in employment increased, along with
military pay increases, from 2002 through 2004. As
population often tracks employment, the increased
employment from the early part of the decade led to an
increase in the region’s population. Due to some unique
regional characteristics, changes in the region’s employment
can vary without changes in population. The high
concentration of retail employment combined with an
expansive tourism industry offers ample part-time, seasonal
and secondary employment opportunities.
Hampton Roads’ relatively low employment to population
ratio of 1 to 1.58 compares favorably to the Nation’s
employment to population ratio of 1 to 1.68. Due to an
increasing number of people entering the workforce, the
Hampton Roads region has recently experienced an increase in
the unemployment rate despite growth in the employment
base.
EMPLOYMENT
Page | 8
January | 2009
Source: Hampton Roads Economic Development Alliance
Employer
Number of
Employees
Product / Service
Northrop Grumman Newport News 18,000 Shipbuilding & repair
Sentara Healthcare 15,000 Full-service health care network
Riverside Health System 7,000 Full-service health care network
Dominion Enterprises (Trader Publishing) 5,700 Trade publications; online marketing; internet services
Smithfield Foods, Inc. 4,636 Meat processing & packing
Bon Secours Hampton Roads Health System 4,000 Hospitals & health care services
Bank of America 3,600 Banking & credit card service center
Colonial Williamsburg 3,100 Museums/cultural exhibits
BAE Systems Norfolk (Norshipco) 2,570 Shipbuilding & repair
Chesapeake Regional Medical Center 2,500 Hospital; health care services
SAIC / AMSEC 2,500 Defense, research & engineering consulting
Measurement Specialties, Inc. 2,428 Measuring & controlling devices; aerospace
Canon Virginia, Inc. 2,235 Copier machines; photographic equipment/supplies
Gwaltney of Smithfield, Inc. 2,100 Meat processing & packing
STIHL Inc. 2,016 Power driven hand tools; chainsaws
GEICO Direct 2,000 Insurance sales, service & support center
Children's Health System (CHKD) 1,905 Children's hospital; health care services & research
FHC Health Systems (Value Options Inc.) 1,700 Health care provider support/health insurance
Michael Baker Jr., Inc. 1,700 Technical & research engineering design services
VT Milcom (MILCOM Systems Corp) 1,653 Engineering, consulting & IT services for defense contracts
Virginia International Terminals, Inc. 1,550 Terminals - river & marine port operations
Eastern Virginia Medical School (Medical College of VA) 1,500 Schools-Universities & Colleges (private)
Tidewater Community College (4 campuses) 1,500 Community college system
Verizon Communications, Inc. 1500 Telecommunications services
AmeriGroup Corporation 1400 HMO provider for Medicaid
TOP 25 PRIVATE EMPLOYERS IN HAMPTON ROADS
Page | 9
January | 2009
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Jan-98
May-98
Sep-98
Jan-99
May-99
Sep-99
Jan-00
May-00
Sep-00
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
InitialUnemploymentClaims
Initial Unemployment Claims in Hampton Roads
(Data Adjusted for Seasonality)
While Hampton Roads is prone to many of the same cyclical unemployment pressures that face the Nation, the
unemployment rate in Hampton Roads has historically tracked well below the national average. The region’s low
unemployment rates can be attributed to several factors, including a favorable mix of industry and the relatively stable
employment that results from a steady flow of defense expenditures. The methodology employed to calculate
unemployment levels at the local level is limited to civilians. As a result, the large portions of military personnel within the
region are not included in employment statistics; the region’s already low unemployment rate overstates the actual
unemployment rate.
Where changes in the unemployment rate are indicative of the market’s ability to meet the needs of the labor force, initial
unemployment claims reveal how changes in the market are impacting the employment base. The current cool economic
climate is reflected by the recent sudden increase in initial unemployment claims.
UNEMPLOYMENT
Source: U.S. Bureau of Labor Statistics Source: Virginia Employment Commission
Page | 10
January | 2009
INDUSTRY AND OCCUPATIONAL EMPLOYMENT
In recent years, Hampton Roads has experienced
relatively strong employment growth across a number
of industry sectors. Paralleling trends in the national
economy, the region experienced a large employment
increase in the Education and Health Services sector,
adding 7,400 jobs from 2004 through 2007. Declines in
the region’s “goods sector” were more than offset by
other service sector employment, such as Leisure and
Hospitality, Retail Trade, Professional and Business
Services, and Financial Activities.
According to the U.S. Bureau of Labor Statistics,
112,717 persons were employed in Hampton Roads’
retail trade sector in 2006. At 108,324 employees, the
military was the region’s second largest industrial
sector. The diversification of industrial sectors is
important in that well diversified economies are less
prone to economic shocks, whereas a single industry
may be severely influenced by super-regional factors at
the national or international level.
0%
2%
4%
6%
8%
10%
12%
PercentofTotalEmployment
Employment by Industry in Hampton Roads
Source: U.S. Bureau of Economic Analysis
-4,000
-2,000
0
2,000
4,000
6,000
8,000
NumberofEmployees
Industry Sector
Three-Year Change in Employment by Sector
Source: U.S. Bureau of Labor Statistics
Page | 11
January | 2009
Source: U.S. Bureau of Labor Statistics
Source: U.S. Bureau of Labor Statistics
Occupational Classification
Employed in
Hampton Roads
Regional
Distribution
National
Distribution
Office & Administrative 124,060 16.5% 17.3%
Sales & Related 89,960 12.0% 10.7%
Food Preparation 68,550 9.1% 8.4%
Transportation & Material Moving 54,280 7.2% 7.2%
Education, Training & Library 47,760 6.4% 6.2%
Construction & Extraction 47,530 6.3% 5.0%
Production 41,590 5.5% 7.6%
Business & Financial 37,220 5.0% 4.5%
Healthcare & Technical 36,710 4.9% 5.1%
Installation, Maintenance & Repair 34,440 4.6% 4.0%
Maintenance 26,570 3.5% 3.3%
Architecture & Engineering 21,400 2.8% 1.9%
Management 19,880 2.6% 4.5%
Protective Service 18,970 2.5% 2.3%
Personal Care & Service 18,690 2.5% 2.5%
Computer & Mathematical 18,680 2.5% 2.4%
Healthcare Support 17,300 2.3% 2.7%
Arts, Design & Entertainment 9,060 1.2% 1.3%
Community & Social Services 8,620 1.1% 1.3%
Life, Physical & Social Science 5,430 0.7% 0.9%
Legal 3,770 0.5% 0.7%
Farming, Fishing & Forestry 790 0.1% 0.3%
The occupational distribution in Hampton Roads complements
the diversity of the region’s industrial sectors. While the top five
regional occupational sectors account for over half of the
region’s occupations, the relative distribution in Hampton Roads
is remarkably similar to the national distribution. Occupational
categories such as Architecture and Engineering, Construction
and Extraction, and Sales are overrepresented in the region
while Life, Physical, and Social Sciences, as well as Management,
Production, and Legal occupations are underrepresented.
The majority of industry and occupational employment
in Hampton Roads is clustered around the region’s
comparative advantages, such as the natural deepwater
ports, the concentration of military, and the historic and
recreational attractions that abound in the area. As the
regional, national and global economies continue to
evolve, the Hampton Roads region must strive to
remain competitive by researching new avenues and
working to explore, develop and secure competitive
advantages for the future.
INDUSTRY AND OCCUPATIONAL EMPLOYMENT (continued)
Page | 12
January | 2009
Source: Consolidated Federal Funds Report
Hampton Roads is home to one of the largest concentrations of Department of Defense (DoD) personnel in the United
States. Hampton Roads also has the largest naval base in the world, the only NATO command on U.S. soil and the
presence of all five military services, operating forces and major commands.
The significance of the defense sector in Hampton Roads cannot be overstated as the direct, indirect, and induced impact
of the military presence accounts for as much as one-third of the region’s economy. In 2007 alone, the region’s defense
expenditures and obligations topped $15.6 billion, a 5.9% increase over the previous year. The size and scope of the
military presence in Hampton Roads can result in rather unique growth patterns. When defense expenditures are
consistent from year to year, the military presence buffers the region’s economy from periods of growth or decline.
Increases or decreases in defense spending have a dramatic impact on the regional economy, moving the region’s
economy independently of the national business cycle. In the past, limited growth in defense spending resulted in
relatively slow growth with respect to the regional economy. Through the nineties, cuts in military personnel coupled
with increased non-military employment somewhat decreased the significance of the defense sector. In more recent
years, increases in both military pay and federal contracts
have significantly contributed to the region’s economic
growth.
THE MILITARY
Source: 2008 Hampton Roads Statistical Digest
Installation Total Personnel
Naval Air Station Oceana 10,683
Naval Air Station Oceana, Dam Neck Annex 5,578
Naval Amphibious Base 14,413
Naval Station Norfolk 96,000
Naval Weapons Station Yorktown 2,182
Norfolk Naval Shipyard 8,850
Fort Eustis 9,682
Fort Story 1,959
Fort Monroe 4,117
Langley Air Force Base 11,500
Page | 13
January | 2009
Source: American Association of Port Authorities Source: Virginia Port Authority
Short Ton (S/T) is a unit of weight equal to 2,000 pounds.
The naturally safe harbors in Hampton Roads have been bringing commerce and trade to the Hampton Roads region for
centuries. Deepwater access that can accommodate today’s … and tomorrow’s … supertankers, a strategic mid-Atlantic
location, and a streamlined infrastructure network have helped to make Hampton Roads home to one of the premier
ports on the east coast, with over 3,000 foreign and domestic vessels calling on the port annually. Significant investments
by both the Port of Virginia (includes all Port facilities in Virginia ) and by APM Terminals (A.P. Moller-Maersk Group) have
made Hampton Roads well-positioned to capitalize on and accommodate increased port traffic well into the future. A
recent analysis conducted by the College of William and Mary’s Mason School of Business estimates that the Port of
Virginia contributes 343,000 jobs, $13.5 billion in employee wages, $1.2 billion in taxes and $41.1 billion in business to the
Commonwealth annually. General cargo tonnage in Hampton Roads has expanded every year since 2001.
THE PORT
Page | 14
January | 2009
Over the past decade, the Hampton Roads housing market has undergone a
significant adjustment. A combination of factors, including historically low
mortgage rates, increased access to credit, changes in defense housing
policies, increases in regional income, and regional housing prices that were
set below market fundamentals culminated in a very rapid increase in the
demand for housing, subsequently and significantly pushing up the region’s
housing prices.
Source: Virginia Tourism Corporation
Source: U.S. Census Bureau
Homeowner Rental
1997 2.8% 5.7% 62%
1998 2.8% 7.6% 64%
1999 2.6% 4.2% 64%
2000 2.6% 6.8% 70%
2001 2.0% 7.0% 72%
2002 1.4% 3.5% 75%
2003 1.3% 10.3% 80%
2004 0.5% 15.1% 73%
2005 0.6% 7.4% 68%
2006 1.2% 7.7% 68%
2007 3.5% 7.7% 66%
Hampton Roads Housing Data
Year
Home
Ownership
Vacancy Rate
From the surf and sand of Virginia Beach to the Historic
Triangle of Williamsburg, Jamestown, and Yorktown, to the
attractive convention centers spread throughout the region,
Hampton Roads is an established tourist destination.
According to the Virginia Tourism Corporation, tourists spent
in excess of $3.7 billion in Hampton Roads in 2007. The
Leisure and Hospitality industry employed 85,400 people in
Hampton Roads, adding over 6,000 positions in the last three
years to make it the second fastest growing employment
sector in the region. In addition to the hoteliers who depend
on tourists to fill their rooms, tourism brings extensive new
money to restaurants, retail establishments, and government
coffers.
TOURISM
HOUSING
Page | 15
January | 2009
Low mortgage rates effectively pushed down the price of
housing, increasing the region’s homeownership rate to almost
80% in 2003. Competition in the region’s housing market
reached its height in June of 2004 when the average listing
remained on the market for only 24 days. As prices continued
to escalate, affordability began to decrease, building permits
began to decline and home sales retreated. A sudden rise in
foreclosures, due in part to decelerating housing prices and
poor lending practices, has cooled the national economy and
caused home prices to retreat as well. The region’s housing
prices are now headed back towards equilibrium with market
fundamentals.
Source: National Low Income Housing Coalition
HOUSING (continued)
Source: Office of Federal Housing Enterprise Oversight Source: Rose and Womble Realty, Hampton Roads, Virginia
HousingPriceIndex
Page | 16
January | 2009
Source: Texas Transportation Institute Sources: Federal Highway Administration (FHWA)
and Virginia Dept. of Transportation (VDOT)
RC-Regional Commission, PDC-Planning District Commission,
MSA-Metropolitan Statistical Area
0
50
100
150
200
250
HAMPTON
ROADS
NORTHERN
VIRGINIARC
RICHMOND
REGIONALPDC
CHARLOTTE
MSA
RALEIGH-
DURHAMMSA
ROANOKE
VALLEYRC
TotalLane-MilesofBridges
Lane-Miles of Bridges
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
CongestionCostsinMillions
Annual Congestion Costs in Hampton Roads
By most measures, Hampton Roads currently enjoys an effective transportation system. The efficiency of the local
highway system is comparable to that of similar metro areas.
According to the Texas Transportation Institute, Hampton Roads ranks 16th
among the 25 metro areas with populations
between one and three million in terms of delay per peak period traveler. The unique system of waterways in Hampton
Roads results in a transportation network that is heavily dependent on bridges and tunnels. Aging infrastructure costs
coupled with increased congestion pose an economic threat by potentially limiting commerce, deterring tourism, and
limiting the capacity of the port.
TRANSPORTATION
Page | 17
January | 2009
The greatest opportunity we have to grow our economy and maintain a healthy, thriving region is by investing in
education. High wages follow high skills, and long-term economic growth increasingly depends on educational excellence.
It starts with our very young. A child’s earliest experiences and environments set the stage for future development and
success in school and life. The Phonological Awareness Literacy Screening for Kindergarten (PALS-K) is an assessment of
literacy readiness. More than 86 percent of children entering kindergarten in Hampton Roads are prepared in literacy
fundamentals, a higher percentage than any other region of Virginia.
Educational attainment refers to the highest degree of education an individual has completed. The Hampton Roads
Metropolitan Statistical Area (MSA) compares favorably to other regions and MSAs on the percentage of adults with high
school or college degrees.
EDUCATION
Source: HamptonRoadsPerforms.org Source: HamptonRoadsPerforms.org
Page | 18
January | 2009
Publication
of
www.HamptonRoadsPerforms.org
Compiled by
Hampton Roads Planning District Commission
723 Woodlake Drive
Chesapeake, VA 23320
www.HRPDCVA.gov
and
Hampton Roads Partnership
430 World Trade Center
Norfolk, VA 23510
www.HRP.org

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HamptonRoadsPerforms.org Regional Profile

  • 1.
  • 2. Page | 1 January | 2009 Source: University of Virginia, Weldon Cooper Center for Public Service 80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 80,000 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ AgeCohort Hampton Roads Population in 2007 Male Female Virginia’s Hampton Roads Regional Profile – Executive Summary – Virginia’s Hampton Roads is a region rich in history, situated in the southeastern corner of Virginia, where the Atlantic Ocean meets the Chesapeake Bay, the largest estuary in the United States. The region, comprised of 16 counties and cities, each with unique assets, is enhanced by an extensive system of waterways and a population that has been growing and changing over the last decade. This profile summarizes key demographic, economic and transportation trends. Stable and increasingly diverse population. Compared to Virginia and the nation as a whole, the population of the Hampton Roads region has grown at a relatively slow pace and tends to be younger and more diverse than the population of the United States. Intricate and unique economy with stable employment. Hampton Roads has one of the largest concentrations of military personnel in the United States and increases in military pay and federal contracts have significantly contributed to the region’s economic growth. However, as home to a number of private employers, Hampton Roads also has experienced relatively strong employment growth across several industry sectors, particularly Education and Health Services, Leisure and Hospitality and Retail Trade. The crown jewel of the region is the Port of Virginia, which contributes nearly 350,000 jobs and greater than $13 billion in employee wages each year according to an analysis by the College of William and Mary’s Mason School of Business. Effective but aging transportation system. Because of the abundance of waterways, the transportation network is heavily dependent on bridges and tunnels. Per capita vehicle miles traveled has remained relatively stable over the last 10 years, suggesting that commuting distances are relatively short. But, aging infrastructure and congestion around tunnels and bridges pose a threat for future economic development. Favorable educational attainment levels. Children entering kindergarten in the Hampton Roads region are prepared at higher rates of literacy fundamentals than any other region of Virginia. The population living in Hampton Roads compares favorably to other regions and metropolitan areas in high school and college degree attainment.
  • 3. Page | 2 January | 2009 Hampton Roads is located in southeastern Virginia where the Atlantic Ocean meets the Chesapeake Bay. The region is comprised of 16 jurisdictions – the cities of Chesapeake, Franklin, Hampton, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk, Virginia Beach and Williamsburg, and the counties of Gloucester, Isle of Wight, James City, Southampton, Surry and York. The region’s land area covers approximately 2,907 square miles and includes an extensive system of waterways including the Intercoastal Waterway and the James, York, Nansemond and Elizabeth Rivers. The name “Hampton Roads” originated from two separate terms. The term “Roads” is a nautical expression for a protected anchorage or safe harbor. The term “Hampton” dates from the early 17th century when the first royal governor, Lord de la Ware, named the area in honor of Henry Wriothesley, the English Earl of Southampton, a major backer of the Virginia Company who financed our Nation’s first English settlers. The region’s rich history includes the farming and hunting practices of the many tribes of Native Americans who inhabited the fertile lands for centuries prior to the first transatlantic migrants. The year 1607 marked the arrival of America’s first citizens who landed in Jamestown aboard three tiny ships, the Susan Constant, Godspeed, and Discovery. The region played a key role at both the beginning and the end of the Revolutionary War, with General Cornwallis surrendering to George Washington at Yorktown in 1781. The most notable naval battle of the Civil War took place in Hampton Roads in 1862 as the Ironclad CSS Virginia (also known as the Merrimac) fought the newly built USS Monitor. Though the battle was inconclusive, the two ships forever changed the nature of naval warfare. The region’s safe harbors, proximity to the ocean, and rich history have worked together to form the foundation of the Hampton Roads region. LOCATION HISTORY
  • 4. Page | 3 January | 2009 DEMOGRAPHICS Source: Weldon Cooper Center 80,000 60,000 40,000 20,000 0 20,000 40,000 60,000 80,000 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ AgeCohort Hampton Roads Population in 2007 Male Female According to the U.S. Census Bureau, Hampton Roads is the 34th most populous Metropolitan Statistical Area (MSA) in the United States. The University of Virginia, Weldon Cooper Center for Public Service (Weldon Cooper Center) estimates that the region’s population was 1,647,937 in July of 2007. Over the past decade, Hampton Roads’ population has grown at an annualized rate of 0.64%, relatively slow compared to the growth rate of 1.20% for both the Nation and the Commonwealth. As reported by the U.S. Census Bureau, the median age of the Hampton Roads population in 2007 was 35.2, over a year less than the national average of 36.7. Evidence of the baby boom, baby bust, and echo boom generations are clearly visible in the region’s population histogram. The population histogram also illustrates the uneven male to female ratio in the age 15- 19 cohort and the 20-24 cohort, a testament to the large impact of the military presence in Hampton Roads. The U.S. Census Bureau estimates that Hampton Roads is home to 623,698 households, with an average of 2.56 persons per household. Females and males constitute 51.1% and 48.9%, respectively.
  • 5. Page | 4 January | 2009 DEMOGRAPHICS (continued) The racial and ethnic composition in Hampton Roads is significantly different from that of the Nation. Hampton Roads has proportionately more African Americans than the Nation and proportionately fewer persons in every other racial category. The 2007 American Community Survey estimates that approximately 15.1% of the Nation’s population is Hispanic, compared to 4.0% in Hampton Roads. Filipinos (a subset of the Asian Population) account for 1.8% of the region’s population, compared to a nationwide average of 0.8%. 75.6% 12.7% 0.8% 4.5% 0.1% 6.3% PopulationDistribution by Race in the United States Source: U.S. Census Bureau 61.7% 32.5% 0.4% 3.1% 0.1% 2.1% PopulationDistribution by Race in Hampton Roads White Black American Indian and Alaska Native Asian NativeHawaiian and Other Pacific Islander Two or more races
  • 6. Page | 5 January | 2009 Source: U.S. Bureau of Economic Analysis Economists typically refer to Gross Product when evaluating the size or strength of a particular economy. In 2006, the Bureau of Economic Analysis estimated the Gross Regional Product (GRP) of the Hampton Roads Metropolitan Statistical Area (MSA) to be $71.8 billion dollars, making it the 38th largest metro economy in the United States. Global Insight estimates that the Hampton Roads economy is similar in size to that of Slovakia or Vietnam. The Hampton Roads economy has experienced relatively constant growth in recent years. Since 2001, economic growth in the region has averaged 6.7% annually (3.3% in “real” per capita dollars). Much of this growth is the result of increased Department of Defense (DoD) spending within the region. Income According to the U.S. Bureau of Labor Statistics, Hampton Roads’ per capita income has historically been below the national average. The region’s relatively low wages can be attributed to such factors as the region’s unique occupational and industrial mix. Increases in regional defense spending and military pay coupled with a national recession in 2001 helped to grow the region’s relative per capita income during the period from 2000 through 2003. Hampton Roads’ median household income ($54,824), as calculated by the U.S. Census Bureau in 2007, compares favorably against the national average ($50,007). The income distribution in Hampton Roads is more concentrated in the middle income range as compared to the Nation, which explains how the median income might compare favorably while per capita income does not. THE ECONOMY INCOME
  • 7. Page | 6 January | 2009 As prices for goods and services differ across the nation, any comparative discussion on income should include a discussion on the cost of living. Until the early part of the 21st century, Hampton Roads enjoyed a cost of living that was below the national average. The low cost of living somewhat offset the region’s relatively low per capita income and attracted businesses that were concerned about labor costs. The relative cost of living in Hampton Roads has increased dramatically since the turn of the decade. The Council for Community and Economic Research surveys hundreds of metropolitan areas each quarter to produce perhaps the most accurate comparative cost report for urban areas. Data for the third quarter of 2008 revealed that composite prices in Hampton Roads were 7.3% above the average of all reporting urban areas. Hampton Roads reported above average prices for housing, health care, and miscellaneous goods and services and below average prices for grocery items and goods and services. INCOME (continued) Source: U.S. Census BureauSource: U.S. Bureau of Economic Analysis U.S. Per Capita Income Hampton Roads Per Capita Income
  • 8. Page | 7 January | 2009 Year Employment Growth Population Growth Unemployment Rate 2000 -2.00% 0.86% 2.5% 2001 1.82% 0.56% 3.3% 2002 2.28% 0.43% 4.1% 2003 1.50% 0.58% 4.2% 2004 1.31% 1.41% 4.0% 2005 1.50% 0.60% 3.9% 2006 1.74% 0.24% 3.3% 2007 1.37% 0.70% 3.2% 2008 1.30% NA 4.2% Sources: U.S. Bureau of Labor Statistics and Weldon Cooper Center Source: U.S. Bureau of Economic Analysis 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 2000 2001 2002 2003 2004 2005 2006 0 500,000 1,000,000 1,500,000 2,000,000 GrowthRate TotalEmployment Hampton Roads Employment Total Employment EmploymentGrowth Rate According to the U.S. Bureau of Economic Analysis, the Hampton Roads region had 1,038,537 employees in 2006, which calculates to 1 job for every 1.58 people. Hampton Roads’ rate of growth in employment increased, along with military pay increases, from 2002 through 2004. As population often tracks employment, the increased employment from the early part of the decade led to an increase in the region’s population. Due to some unique regional characteristics, changes in the region’s employment can vary without changes in population. The high concentration of retail employment combined with an expansive tourism industry offers ample part-time, seasonal and secondary employment opportunities. Hampton Roads’ relatively low employment to population ratio of 1 to 1.58 compares favorably to the Nation’s employment to population ratio of 1 to 1.68. Due to an increasing number of people entering the workforce, the Hampton Roads region has recently experienced an increase in the unemployment rate despite growth in the employment base. EMPLOYMENT
  • 9. Page | 8 January | 2009 Source: Hampton Roads Economic Development Alliance Employer Number of Employees Product / Service Northrop Grumman Newport News 18,000 Shipbuilding & repair Sentara Healthcare 15,000 Full-service health care network Riverside Health System 7,000 Full-service health care network Dominion Enterprises (Trader Publishing) 5,700 Trade publications; online marketing; internet services Smithfield Foods, Inc. 4,636 Meat processing & packing Bon Secours Hampton Roads Health System 4,000 Hospitals & health care services Bank of America 3,600 Banking & credit card service center Colonial Williamsburg 3,100 Museums/cultural exhibits BAE Systems Norfolk (Norshipco) 2,570 Shipbuilding & repair Chesapeake Regional Medical Center 2,500 Hospital; health care services SAIC / AMSEC 2,500 Defense, research & engineering consulting Measurement Specialties, Inc. 2,428 Measuring & controlling devices; aerospace Canon Virginia, Inc. 2,235 Copier machines; photographic equipment/supplies Gwaltney of Smithfield, Inc. 2,100 Meat processing & packing STIHL Inc. 2,016 Power driven hand tools; chainsaws GEICO Direct 2,000 Insurance sales, service & support center Children's Health System (CHKD) 1,905 Children's hospital; health care services & research FHC Health Systems (Value Options Inc.) 1,700 Health care provider support/health insurance Michael Baker Jr., Inc. 1,700 Technical & research engineering design services VT Milcom (MILCOM Systems Corp) 1,653 Engineering, consulting & IT services for defense contracts Virginia International Terminals, Inc. 1,550 Terminals - river & marine port operations Eastern Virginia Medical School (Medical College of VA) 1,500 Schools-Universities & Colleges (private) Tidewater Community College (4 campuses) 1,500 Community college system Verizon Communications, Inc. 1500 Telecommunications services AmeriGroup Corporation 1400 HMO provider for Medicaid TOP 25 PRIVATE EMPLOYERS IN HAMPTON ROADS
  • 10. Page | 9 January | 2009 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Jan-98 May-98 Sep-98 Jan-99 May-99 Sep-99 Jan-00 May-00 Sep-00 Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 InitialUnemploymentClaims Initial Unemployment Claims in Hampton Roads (Data Adjusted for Seasonality) While Hampton Roads is prone to many of the same cyclical unemployment pressures that face the Nation, the unemployment rate in Hampton Roads has historically tracked well below the national average. The region’s low unemployment rates can be attributed to several factors, including a favorable mix of industry and the relatively stable employment that results from a steady flow of defense expenditures. The methodology employed to calculate unemployment levels at the local level is limited to civilians. As a result, the large portions of military personnel within the region are not included in employment statistics; the region’s already low unemployment rate overstates the actual unemployment rate. Where changes in the unemployment rate are indicative of the market’s ability to meet the needs of the labor force, initial unemployment claims reveal how changes in the market are impacting the employment base. The current cool economic climate is reflected by the recent sudden increase in initial unemployment claims. UNEMPLOYMENT Source: U.S. Bureau of Labor Statistics Source: Virginia Employment Commission
  • 11. Page | 10 January | 2009 INDUSTRY AND OCCUPATIONAL EMPLOYMENT In recent years, Hampton Roads has experienced relatively strong employment growth across a number of industry sectors. Paralleling trends in the national economy, the region experienced a large employment increase in the Education and Health Services sector, adding 7,400 jobs from 2004 through 2007. Declines in the region’s “goods sector” were more than offset by other service sector employment, such as Leisure and Hospitality, Retail Trade, Professional and Business Services, and Financial Activities. According to the U.S. Bureau of Labor Statistics, 112,717 persons were employed in Hampton Roads’ retail trade sector in 2006. At 108,324 employees, the military was the region’s second largest industrial sector. The diversification of industrial sectors is important in that well diversified economies are less prone to economic shocks, whereas a single industry may be severely influenced by super-regional factors at the national or international level. 0% 2% 4% 6% 8% 10% 12% PercentofTotalEmployment Employment by Industry in Hampton Roads Source: U.S. Bureau of Economic Analysis -4,000 -2,000 0 2,000 4,000 6,000 8,000 NumberofEmployees Industry Sector Three-Year Change in Employment by Sector Source: U.S. Bureau of Labor Statistics
  • 12. Page | 11 January | 2009 Source: U.S. Bureau of Labor Statistics Source: U.S. Bureau of Labor Statistics Occupational Classification Employed in Hampton Roads Regional Distribution National Distribution Office & Administrative 124,060 16.5% 17.3% Sales & Related 89,960 12.0% 10.7% Food Preparation 68,550 9.1% 8.4% Transportation & Material Moving 54,280 7.2% 7.2% Education, Training & Library 47,760 6.4% 6.2% Construction & Extraction 47,530 6.3% 5.0% Production 41,590 5.5% 7.6% Business & Financial 37,220 5.0% 4.5% Healthcare & Technical 36,710 4.9% 5.1% Installation, Maintenance & Repair 34,440 4.6% 4.0% Maintenance 26,570 3.5% 3.3% Architecture & Engineering 21,400 2.8% 1.9% Management 19,880 2.6% 4.5% Protective Service 18,970 2.5% 2.3% Personal Care & Service 18,690 2.5% 2.5% Computer & Mathematical 18,680 2.5% 2.4% Healthcare Support 17,300 2.3% 2.7% Arts, Design & Entertainment 9,060 1.2% 1.3% Community & Social Services 8,620 1.1% 1.3% Life, Physical & Social Science 5,430 0.7% 0.9% Legal 3,770 0.5% 0.7% Farming, Fishing & Forestry 790 0.1% 0.3% The occupational distribution in Hampton Roads complements the diversity of the region’s industrial sectors. While the top five regional occupational sectors account for over half of the region’s occupations, the relative distribution in Hampton Roads is remarkably similar to the national distribution. Occupational categories such as Architecture and Engineering, Construction and Extraction, and Sales are overrepresented in the region while Life, Physical, and Social Sciences, as well as Management, Production, and Legal occupations are underrepresented. The majority of industry and occupational employment in Hampton Roads is clustered around the region’s comparative advantages, such as the natural deepwater ports, the concentration of military, and the historic and recreational attractions that abound in the area. As the regional, national and global economies continue to evolve, the Hampton Roads region must strive to remain competitive by researching new avenues and working to explore, develop and secure competitive advantages for the future. INDUSTRY AND OCCUPATIONAL EMPLOYMENT (continued)
  • 13. Page | 12 January | 2009 Source: Consolidated Federal Funds Report Hampton Roads is home to one of the largest concentrations of Department of Defense (DoD) personnel in the United States. Hampton Roads also has the largest naval base in the world, the only NATO command on U.S. soil and the presence of all five military services, operating forces and major commands. The significance of the defense sector in Hampton Roads cannot be overstated as the direct, indirect, and induced impact of the military presence accounts for as much as one-third of the region’s economy. In 2007 alone, the region’s defense expenditures and obligations topped $15.6 billion, a 5.9% increase over the previous year. The size and scope of the military presence in Hampton Roads can result in rather unique growth patterns. When defense expenditures are consistent from year to year, the military presence buffers the region’s economy from periods of growth or decline. Increases or decreases in defense spending have a dramatic impact on the regional economy, moving the region’s economy independently of the national business cycle. In the past, limited growth in defense spending resulted in relatively slow growth with respect to the regional economy. Through the nineties, cuts in military personnel coupled with increased non-military employment somewhat decreased the significance of the defense sector. In more recent years, increases in both military pay and federal contracts have significantly contributed to the region’s economic growth. THE MILITARY Source: 2008 Hampton Roads Statistical Digest Installation Total Personnel Naval Air Station Oceana 10,683 Naval Air Station Oceana, Dam Neck Annex 5,578 Naval Amphibious Base 14,413 Naval Station Norfolk 96,000 Naval Weapons Station Yorktown 2,182 Norfolk Naval Shipyard 8,850 Fort Eustis 9,682 Fort Story 1,959 Fort Monroe 4,117 Langley Air Force Base 11,500
  • 14. Page | 13 January | 2009 Source: American Association of Port Authorities Source: Virginia Port Authority Short Ton (S/T) is a unit of weight equal to 2,000 pounds. The naturally safe harbors in Hampton Roads have been bringing commerce and trade to the Hampton Roads region for centuries. Deepwater access that can accommodate today’s … and tomorrow’s … supertankers, a strategic mid-Atlantic location, and a streamlined infrastructure network have helped to make Hampton Roads home to one of the premier ports on the east coast, with over 3,000 foreign and domestic vessels calling on the port annually. Significant investments by both the Port of Virginia (includes all Port facilities in Virginia ) and by APM Terminals (A.P. Moller-Maersk Group) have made Hampton Roads well-positioned to capitalize on and accommodate increased port traffic well into the future. A recent analysis conducted by the College of William and Mary’s Mason School of Business estimates that the Port of Virginia contributes 343,000 jobs, $13.5 billion in employee wages, $1.2 billion in taxes and $41.1 billion in business to the Commonwealth annually. General cargo tonnage in Hampton Roads has expanded every year since 2001. THE PORT
  • 15. Page | 14 January | 2009 Over the past decade, the Hampton Roads housing market has undergone a significant adjustment. A combination of factors, including historically low mortgage rates, increased access to credit, changes in defense housing policies, increases in regional income, and regional housing prices that were set below market fundamentals culminated in a very rapid increase in the demand for housing, subsequently and significantly pushing up the region’s housing prices. Source: Virginia Tourism Corporation Source: U.S. Census Bureau Homeowner Rental 1997 2.8% 5.7% 62% 1998 2.8% 7.6% 64% 1999 2.6% 4.2% 64% 2000 2.6% 6.8% 70% 2001 2.0% 7.0% 72% 2002 1.4% 3.5% 75% 2003 1.3% 10.3% 80% 2004 0.5% 15.1% 73% 2005 0.6% 7.4% 68% 2006 1.2% 7.7% 68% 2007 3.5% 7.7% 66% Hampton Roads Housing Data Year Home Ownership Vacancy Rate From the surf and sand of Virginia Beach to the Historic Triangle of Williamsburg, Jamestown, and Yorktown, to the attractive convention centers spread throughout the region, Hampton Roads is an established tourist destination. According to the Virginia Tourism Corporation, tourists spent in excess of $3.7 billion in Hampton Roads in 2007. The Leisure and Hospitality industry employed 85,400 people in Hampton Roads, adding over 6,000 positions in the last three years to make it the second fastest growing employment sector in the region. In addition to the hoteliers who depend on tourists to fill their rooms, tourism brings extensive new money to restaurants, retail establishments, and government coffers. TOURISM HOUSING
  • 16. Page | 15 January | 2009 Low mortgage rates effectively pushed down the price of housing, increasing the region’s homeownership rate to almost 80% in 2003. Competition in the region’s housing market reached its height in June of 2004 when the average listing remained on the market for only 24 days. As prices continued to escalate, affordability began to decrease, building permits began to decline and home sales retreated. A sudden rise in foreclosures, due in part to decelerating housing prices and poor lending practices, has cooled the national economy and caused home prices to retreat as well. The region’s housing prices are now headed back towards equilibrium with market fundamentals. Source: National Low Income Housing Coalition HOUSING (continued) Source: Office of Federal Housing Enterprise Oversight Source: Rose and Womble Realty, Hampton Roads, Virginia HousingPriceIndex
  • 17. Page | 16 January | 2009 Source: Texas Transportation Institute Sources: Federal Highway Administration (FHWA) and Virginia Dept. of Transportation (VDOT) RC-Regional Commission, PDC-Planning District Commission, MSA-Metropolitan Statistical Area 0 50 100 150 200 250 HAMPTON ROADS NORTHERN VIRGINIARC RICHMOND REGIONALPDC CHARLOTTE MSA RALEIGH- DURHAMMSA ROANOKE VALLEYRC TotalLane-MilesofBridges Lane-Miles of Bridges $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 CongestionCostsinMillions Annual Congestion Costs in Hampton Roads By most measures, Hampton Roads currently enjoys an effective transportation system. The efficiency of the local highway system is comparable to that of similar metro areas. According to the Texas Transportation Institute, Hampton Roads ranks 16th among the 25 metro areas with populations between one and three million in terms of delay per peak period traveler. The unique system of waterways in Hampton Roads results in a transportation network that is heavily dependent on bridges and tunnels. Aging infrastructure costs coupled with increased congestion pose an economic threat by potentially limiting commerce, deterring tourism, and limiting the capacity of the port. TRANSPORTATION
  • 18. Page | 17 January | 2009 The greatest opportunity we have to grow our economy and maintain a healthy, thriving region is by investing in education. High wages follow high skills, and long-term economic growth increasingly depends on educational excellence. It starts with our very young. A child’s earliest experiences and environments set the stage for future development and success in school and life. The Phonological Awareness Literacy Screening for Kindergarten (PALS-K) is an assessment of literacy readiness. More than 86 percent of children entering kindergarten in Hampton Roads are prepared in literacy fundamentals, a higher percentage than any other region of Virginia. Educational attainment refers to the highest degree of education an individual has completed. The Hampton Roads Metropolitan Statistical Area (MSA) compares favorably to other regions and MSAs on the percentage of adults with high school or college degrees. EDUCATION Source: HamptonRoadsPerforms.org Source: HamptonRoadsPerforms.org
  • 19. Page | 18 January | 2009 Publication of www.HamptonRoadsPerforms.org Compiled by Hampton Roads Planning District Commission 723 Woodlake Drive Chesapeake, VA 23320 www.HRPDCVA.gov and Hampton Roads Partnership 430 World Trade Center Norfolk, VA 23510 www.HRP.org