Virginia has competitive advantages for business including its strategic location, supportive business climate, and quality workforce. However, it faces challenges such as a shortage of skilled workers, inadequate transportation infrastructure, and the need to diversify its economy beyond traditional sectors. To remain competitive, Virginia will need bipartisan leadership and investments in its transportation network, workforce development, and energy independence, while maintaining fiscal stability and a business-friendly policy environment.

1. Virginia’s Competitiveness in the Global Economy Hugh D. Keogh, President emeritus The Virginia Chamber of Commerce Spring 2011

2. Commonwealth of Virginia

3. Virginia Economic Overview Geography: 42,000 Square Miles 95 Counties, 39 Cities Population: 8 million Unemployment: 6.4% (Spring ‘11) US 8.9% Per Capita Income: >$43,000 (2010) 110% of the US avg. 8th Nationally

4. Prominent Economic Sectors Business Services Defense Manufacturing Tourism International Trade and Development

5. Southeast Region: Our Competitive Environment

6. Hallmarks of Virginia Economy Strategic Location Supportive Business Climate Quality of Life Economic Diversity High Income/Low Unemployment

7. Virginia’s Assets Traditional Reputation/ AAA Bond Rating Higher Education Proximity to Markets/Transportation: Rail, Highway, Ports of Virginia, Dulles Workforce: Trainability & Work Ethic Workplace Environment: Right to Work (e.g. Wisconsin)

8. Virginia’s Assets Contemporary IT Ambience Cutting Edge Manufacturing At the Heart of the Nation’s Defense Posture Economic Incentives Forbes Ranking

9. Virginia’s Challenges 2011 Workforce: Shortage of technically skilled workers- statewide Transportation: Approaching (or at) crisis levels- need high speed rail; third crossing; highway improvements/ Governor’s package 2011 Growth (SPRAWL) Structural Economic Change: Tobacco/ Textiles/ Coal/ Furniture Stable Revenues/ Economic Development Marketing – improving

10. Virginia’s Challenges, cont’d Politics/Reputation: Stability and a degree of collegiality – improving Local Government Structure Gubernatorial Succession Dealing with History Disparity: Spreading the wealth Healthcare Costs and Availability Energy self reliance

11. Current Priorities Bipartisan Leadership/ Business Leadership/LEADVA Dedicated Transportation Revenue Stream Federal Issues: Health Care, EFCA, Cap and Trade, CFPA Fiscal Stability Workforce Development System Energy

12. Leadership Many Faces Integrity Loyalty Service Team Sport Sacrifice Virginia

13. Conclusion Virginia remains an outstanding location in which to do business. Nevertheless, without significant investment in infrastructure and some modernization of its public policy framework, it will fall short of its substantial potential.

14. Virginia’s Competitiveness in the Global Economy