Inroads Qtr 3 2009


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Inroads Qtr 3 2009

  1. 1. inroads a quarterly publication of the hampton roads economic development alliance 2009 QTR 3
  2. 2. FROM THE PRESIDENT’S DESK We are in the home stretch of 2009, and the Alliance anticipates an active and productive fall. officers During the 3rd quarter of this year our business recruitment team traveled to several U.S. and European cities promoting Hampton Roads at some excit- CHAIR Mike Barrett Runnymede Corp. ing venues. In July, the Alliance, sharing the venue with VEDP and the Greater Richmond Partnership, hosted a special event at Wimbledon in the U.K. and VICE CHAIR Robert Brown Robert Brown and Associates was able to secure several corporate appointments during the week-long occasion. We also conducted marketing missions to the New York area and TREASURER Bob Boyd BB&T Western Canada. The month of August included a consultant mission to New York and New Jersey and SECRETARY Rick Bagley Wachovia Securities a marketing mission to Washington, D.C. and Mary- land. In September we visited Germany and Austria, a trip that incorporated visits to Munich, Karlsruhe, staff Heidelberg, Freiburg, Salzburg, Linz and Vienna in order to meet with several corporate headquarters with operations in Hampton Roads. September also President & CEO Darryl Gosnell saw our marketing team attend the Defence Systems Senior Vice President Amy Parkhurst & Equipment International Exhibition in the U.K., conduct a Kansas marketing Vice President Thomas Clemens mission and participate in the IAMC Professional Forum in Minneapolis. Vice President Steve Cook The combination of these marketing activities culminated in 17 new busi- Operations Debbie Ogan ness contacts, 76 corporate appointments and 13 consultant appointments. & Technology Director In addition, HREDA’s project managers worked on 14 new inquiries and Investor Sarah Cavanaugh Development Director hosted 13 client visits. Research David Gray As you are no doubt aware, recent headlines have indicated that Virginia & Information Services has weathered the weakened economy better than most states; and the Al- Business Recruitment Chris Gullickson liance is optimistic Hampton Roads will continue to fare well. We are seeing Marketing Lisa Litwiller our efforts of the past several months yield hoped-for tangible results, while Communications continuing to add new projects to our pipeline. And of course, we remain Executive Kate Rodenhouse Assistant grateful to our partners for their ongoing support. With the force of our com- bined efforts, we can – and will – successfully promote Hampton Roads as the premiere location for business relocation and expansion. International Consultants China Catherine Magill Germany Ingo Bentz United Kingdom Charles Macdowell Darryl Gosnell, President & CEO inroads is a quarterly publication of the Hampton Roads Economic Development Alliance. Comments and suggestions should be forwarded to Lisa Litwiller at 500 Main Street | Suite 1300 11820 Fountain Way | Suite 301 4 East Bank House | Tide Mill Way World Trade Center | Birkenstrasse 15 Norfolk, VA 23510 Newport News, VA 23606 Woodbridge, Suffolk IP12 1BY UK 28195 Bremen, Germany T +1 757 627 2315 T +1 757 627 2315 T +44 1394 610022 T +49 421 174660
  3. 3. “Our battered suitcases were piled on the sidewalk again; road work we had longer ways to go. But no matter, the road is life.” – Jack Kerouac, Author, Painter, Poet Wimbledon & Corporate Appts. (7/09) Western Canada Marketing Mission (7/09) Munich, Germany DSEi, London Marketing Mission (8-9/09) NY/NJ/CT (9/09) Marketing Mission (7/09) Washington, DC NY/NJ Consultant Marketing Mission Mission (8/09) (8/09) Can Your Company Afford NOT to Travel? The following is an excerpt from Harvard Business Review, June 2009 Report 1 2,300 Harvard Business Review (HBR) subscribers were surveyed and 79% rated in-person meetings as the most effective way to meet new clients to sell business while 89% said face-to-face meetings are essential for sealing the deal and almost all, 95%, said such personal interac- tions are a key factor in successfully building and maintaining “Face-to-Face contact is the long-term relationships. In shaping new business opportunities, broadest bandwidth communication you need to see the body language to get a view as to whether you can have in professional life.” or not what is being proposed is being processed and, ultimately, is acceptable. The non-verbal communication is equal to, if not more important than, the verbal. This is especially true when working in the international arena where body language is often crucial to communicate perspective. All savvy business leaders recognize that travel is an investment - an investment of time and money and an investment in your clients that helps to align and speed up decision making. More than ever, it is an investment worth preserving. 1 A Report by Harvard Business Review Analytic Services: Managing Across Distance in Today’s Economy
  4. 4. Mission Briefings: The Northeast, Canada and the Midwest road work During the second week of and Thomas Clemens facilitating Carla Howard (Norfolk) and July Amy Parkhurst and Sam 14 appointments with maritime, Scott Hall (Virginia Beach) ac- Workman (Newport News) distribution and computer sci- companied Steve Cook in Au- covered a lot of territory in the ence related industry corporate gust to the New York City/New Northeast conducting 14 corpo- decision makers. Prompted by Jersey metropolitan area to rate appointments in New York, government initiatives and incen- meet and update consultants New Jersey, Connecticut and tives, the Canadian based high on the latest and greatest hap- Pennsylvania. Six companies tech sector is enjoying a boom. penings in Hampton Roads. indicated an interest in investigat- “From start-ups to expansions Detailed planning resulted in ing Hampton Roads for a future companies are beginning to seek successful meetings with 11 expansion or relocation in the out more centralized customer representatives from 8 differ- next 1 to 3 years. Many cited support locations to better serve ent companies. “This trip was the high costs of doing business their ever-broadening base of cli- such a great experience,” said in the Northeast as an incentive entele; many with operations on Carla. “I love sharing the excit- for considering a more business the eastern coast of the United ing things happening in Norfolk friendly location. States,” said Clemens. “And we and the region. The meetings want them to think of Hampton gave me a fresh perspective on A late July marketing mission Roads as their location solution.” how consultants view Hamp- to Vancouver, BC, Canada’s larg- This was the Alliance’s third mis- ton Roads.” est metropolitan area, found Tom- sion to Canada and second to my Miller (Franklin-Southampton) Vancouver this year. HREDA and VEDP Visit Correctional Facility in Kansas Impact Design Researching Mid-Atlantic Opportunities Steve Cook participated in a marketing mission to the Kansas City region with VEDP’s Steve Bridges in September. One of the more interesting companies they met with was Impact Design, an embroidery and art needlework facility located on site at the Lan- sing Correctional Facility in Lansing, Kansas. The company employs ap- proximately 300 inmates in the de- sign and production of artwork for all types of apparel for colleges and universities, golf clubs, high school teams, etc. Interestingly enough, the first item the visiting team noticed as they entered the workroom was a Virginia Tech polo shirt at the embroidery station! Due to the success of their innovative company, Impact Design is researching expansion options in the Mid-Atlantic.
  5. 5. United Kingdom - All England Lawn Tennis Club road work For a third consecutive year the Alliance hosted select cli- ents, contacts and consultants to view world-class tennis at Wimbledon’s Grand Slam tennis tournament. This traditional, high profile event is consistently well received and provides our team a unique opportunity to engage and entertain British cli- ents with whom the Alliance has developed business relation- ships throughout the year. This year’s VIP guests rep- resented 7 projects considering Pictured above, from left: Allan Edwards (Frontline Engineering), Matt Hatson (Babcock), Gerry Fabian (SELEX), Amy Parkhurst (HREDA), Jeff Taylor (De- Hampton Roads as an expansion location. Amy Parkhurst and Charles fence Manufacturer’s Association -DMA), Simon Walstrom (QinetiQ) Macdowell, HREDA’s U.K. consultant, represented the region at the July 2 event held at the historic All England Lawn Tennis Club. Headquarters Visit - Germany and Austria The Power of Gratitude HREDA Team visiting Plasser & Theurer’s headquarters in Linz, Austria. Designed to thank companies and decision makers for their invest- ment in our region Darryl Gosnell, Thomas Clem- ens, Scott Hall (Virginia Beach) and Tom Elder (Chesapeake) embarked on a brand new type of marketing mission. In late August, the delegation, divided into two teams, covered 3,200 miles in 5 days visiting German and Pictured above L-R: Joseph Neuhofer (President, Plasser American Corporation Chesapeake); Patrick Vierlinger (Export, Plasser & Theurer, Vienna, Austria); Tom Elder (City of Chesapeake); Robin Laskowski (Vice President, Secretary/Treasurer, Plasser American Corporation Austrian headquarters of Chesapeake). companies with opera- tions in Hampton Roads. The meetings, 11 in all, provided face-to-face opportunities to engage and thank business leaders for their investment in our region. And the sentiment was returned. The corporate hosts expressed sincere appreciation for the team’s investment of time and resources to become more familiar with their companies, operations and future plans.
  6. 6. Defence Systems & Equipment International (DSEi) road work According to a report featured in the September 15th Virginian-Pilot, Hampton Roads’ economy is considered in the top 20 of the nation’s 100 largest metro areas. And, according to Alan Berube, the Brooking Institute study’s coauthor, the region’s significant concentration of defense and government related industry is the most important contributing factor. Hampton Roads knows defense. And, HREDA knows Hampton Roads. So, it is not uncommon for the Alliance’s marketing calendar to contain a fairly large number of defense related events. Attendance at September’s Defence Systems & Equipment Inter- national (DSEi) in the U.K. marked the fourth out of six such events scheduled in 2009. As the leading integrated defense and security exhibition in the world, DSEi provides a forum for all those concerned with defense, security and military aerospace to meet with senior international trade and military experts. The event offers a valuable platform for attendees to view the latest systems and equip- Pictured above, L-R: Chris Gullickson (HREDA), Charles Macdowell (HREDA U.K. Consul- tant), Steven Wright (City of Chesapeake), and Jim Noel (York County). ment from the world’s defense and security industry. Pictured below, L-R: Aran Croker (Vice President of the Americas, Astute) and Geoff Hill Among the 29,000 attendees from over 40 (Manager Director, Astute) at the Astute booth. countries at the 8-11 September U.K. conference were HREDA team members Chris Gullickson and Charles Macdowell, Jim Noel (York County) and Steven Wright (Chesapeake). The tireless delegation facilitated appointments with 16 different companies and learned the following perceptions and/or factors are regarded as regional strengths: our pro-military representation in D.C. via Forbes, Webb, Allen and Nye; the large number of primary (tier one) defense contractors; and the fact that every branch of the military is represented in Hampton Roads. “Golden nuggets of potential projects are still out there,” Macdowell commented. “We just have to sift deeper to find them. At the moment, British interest in the U.S. is highest in the defense sector, which ap- pears to be unaffected by the economic downturn.” “Although the economy has suffered, the U.S. defense industry is strong with a budgeted defense & homeland security spending for 2010 at over 600 bil- lion dollars,” noted Gullickson. “Many of the compa- nies we met with expressed an immediate need for a U.S. location. And, we are happy to report, one such company has already scheduled an October visit to Hampton Roads.”
  7. 7. A View from Across the Pond road report Charles Macdowell, HREDA’s U.K. Consultant’s Update to the Board September 24, 2009 The trade relationship between the U.S. and the United Kingdom is the strongest in the world, and Britain is the largest foreign investor in the U.S. economy, valued at $300 billion. However, British business is typically more focused on services as compared to manufacturing. As a result, British investment activity has tended to take place in financial centers like New York or Chicago, and biased towards acquisition – like HSBC’s pur- chase of Household – instead of organic expansion. The current economic climate is impacting investment into the U.S. The UN’s World Investment Report stated that direct investment between developed nations experienced a downturn of 60% in the first quarter of 2009, while investment in developing nations fell 25%. In the U.K., business investment slumped by 10.4% between the first and second quarter of this year, the biggest drop since 1985. Annually, the decline is the largest on record since 1967. The effects the Alliance is facing with our marketing activities in the U.K. are: - Fewer companies prepared to risk ‘stretching their wings’ across the Atlantic, preferring to focus on their domestic markets; - Greater difficulty in raising sufficient finance for a new U.S. operation or expansion; - Slowing of the pipeline of projects already under consideration – although not many have cancelled their plans altogether; - Greater interest in lower risk methods to enter the U.S. market, through JVs, partnerships and the licensing of IP. Due to the region’s favorable business climate and low cost of doing business, Hampton Roads remains attractive to British companies. But, the lack of direct transatlantic air service is seen as our single greatest disadvantage. third quarter report 3rd Quarter YTD TOTAL 2008 PROJECTS Total Active 129 N/A 129 New 19 38 38 PROSPECT Total 13 32 39 VISITS New 10 24 27 Repeat 3 8 12 RECRUITMENT Trips 9 35 48 ACTIVITIES Appointments 89 246 269 Contacts 17 194 n/a ANNOUNCEMENTS Total 0 5 4 Capital Investment 0 $22,850,000 17,820,000 Jobs Created 0 286 63 Square Footage 0 109,200 326,300 HREDA operates on a calendar fiscal year; therefore YTD reflects January through September 09
  8. 8. Safco Celebrates New Operation in Isle of Wight Safco Products Co., a division of Liberty Diversi- fied Industries, is the newest tenant in IOW’s Intermodal Park occupying 329,000 SQ FT of state-of-the-art distri- bution space. A leading provider of organization and comfort enhancing products for the workplace, Safco serves as an importer and exporter for well-known office and business retailers. At the grand opening ceremony held last June, Liberty Diversified Industries President Mike Fiterman complimented the profes- sionalism of the IOW Board of Supervisors, County staff and the county’s ability to simultaneously attract quality business while maintaining its rural and aesthetic Pictured above, L-R: Dan Zdon (Vice President of Liberty Diversified Industries and beauty. General Manager of Safco Products Company); Mike Fiterman (President of Liberty Diversified Industries) and The Honorable James B. Brown, Jr., Chairman of the Isle of Wight County Board of Supervisors. The Alliance introduced representatives of Safco to the region in January 2008 and the project was officially Investor Calendar Notes announced for IOW in July 2008. All meetings scheduled for 8:30 AM unless indicated October 22 Executive Committee Meeting December 10 Board Meeting, VMASC January 14, 2010 Annual Meeting of Investors inroads Norfolk, VA 23510 500 Main Street, Suite 1300