American Sociological Review 2014 McClintock 0003122414536391
VIRGINIA’S ECONOMIC DEVELOPMENT LANDSCAPE HAMPTON ROADS ASSOCIATION OF FINANCIAL PROFESSIONALS...
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Transcript of VIRGINIA’S ECONOMIC DEVELOPMENT LANDSCAPE HAMPTON ROADS ASSOCIATION OF FINANCIAL PROFESSIONALS...
VIRGINIA’S ECONOMIC DEVELOPMENT LANDSCAPE
HAMPTON ROADS ASSOCIATION OF FINANCIAL PROFESSIONALS
ROBERT W. MCCLINTOCK RESEARCH DIRECTOR
FEBRUARY 14, 2012
VIRGINIA UNEMPLOYMENT
2
6.2
4.6
7.0
6.4
6.8
6.5
7.2
5.6
8.9
5.0
6.3
6.1
0 2 4 6 8 10Percent (%)
Winchester
Northern Virginia
Hampton Roads
Roanoke
Richmond
Lynchburg
Bristol
Harrisonburg
Danville
Charlottesville
Blacksburg
Virginia
Source: U.S. Bureau of Labor Statistics, LAUS, Dec 2011 (not seasonally adjusted)
By MSAUnemployment Rate
VIRGINIA UNEMPLOYMENT
4
2.0
4.0
6.0
8.0
10.
0P
erc
ent (
%)
Jan 2000Jan 2001
Jan 2002Jan 2003
Jan 2004Jan 2005
Jan 2006Jan 2007
Jan 2008Jan 2009
Jan 2010Jan 2011
United States Virginia
Hampton Roads MSA
Source: U.S. Bureau of Labor Statistics (Not Seasonally Adjusted)
United States, Virginia, and Hampton Roads MSAUnemployment Rate
5
20%
Blacksburg CharlottesvilleDanville Hampton RoadsHarrisonburg LynchburgNorthern Virginia Other localitiesRichmond RoanokeWinchester, VA-WV
Source: Bureau of Labor Statistics, CES (Dec 2011, preliminary)
By MSAVirginia Employment
VIRGINIA EMPLOYMENT GROWTH
6
Recession Recession
-6.0
-4.0
-2.0
0.0
2.0
4.0
Pe
rcen
t (%
)
Jan 2000Jan 2001
Jan 2002Jan 2003
Jan 2004Jan 2005
Jan 2006Jan 2007
Jan 2008Jan 2009
Jan 2010Jan 2011
United States Virginia
Hampton Roads MSA
Source: U.S. Bureau of Labor Statistics, CESMeasured in percent change in S.A. nonfarm payrolls year-over-year; Virginia and Hampton Roads data not seasonally adjusted.
United States, Virginia, and Hampton Roads MSAEmployment Growth
VIRGINIA EMPLOYMENT GROWTH
7
2.9
1.3
-0.2
-0.6
0.4
1.1
1.5
1.6
1.0
3.0
5.2
1.0
1.3
-2 0 2 4 6Percent (%)
Winchester
Northern Virginia
Hampton Roads
Roanoke
Richmond
Lynchburg
Bristol
Harrisonburg
Danville
Charlottesville
Blacksburg
Virginia
United States
Percentage Change from Previous Year
Source: U.S. Bureau of Labor Statistics, CES
December 2011Employment Growth
VIRGINIA EMPLOYMENT GROWTH
8
1.01.3
-5.2-1.3
-1.40.8
-0.51.9
0.71.6
1.0-1.3
1.42.2
1.50.1
2.02.0
2.22.7
-6 -4 -2 0 2 4Percent (%)
Total Nonagriculture
Information
Construction
Manufacturing
Trade, Trans. & Util.
Government
Educ. & Health Services
Financial Activities
Leisure & Hospitality
Prof. & Bus. Services
Percentage Change from Previous Year
Source: Bureau of Labor Statistics, CES, December 2011
December 2011Employment Growth By Major Sector
United States Virginia
HAMPTON ROADS EMPLOYMENT GROWTH
9
-0.21.0
-1.4
-6.5-5.2
-1.70.7
-1.71.5
-0.42.0
0.6-0.5
0.91.0
1.42.2
1.71.4
-6 -4 -2 0 2 4Percent (%)
Total Nonagriculture
Construction
Information
Trade, Trans. & Util.
Financial Activities
Leisure & Hospitality
Manufacturing
Government
Prof. & Bus. Services
Educ. & Health Services
Percentage Change from Previous Year
Source: Bureau of Labor Statistics, CES, Monthly Data (December 2011), Not seasonally adjusted
December 2011Employment Growth By Major Sector
Virginia Hampton Roads
VIRGINIA EMPLOYMENT FORECAST
10
-0.4
-1.0
0.6
-0.3
0.9
-0.0
1.7
1.1
-2-1
01
23
Pe
rcen
t (%
)
2010 2011(p) 2012F 2013F
Percentage Change from Previous Year
Source: Bureau of Labor Statistics, BEA, Moody's Analytics
Virginia and Hampton Roads MSAEmployment Growth Forecast
Virginia Hampton Roads MSA
ANNOUNCED INVESTMENT AND EMPLOYMENT
2009 2010 2011
Investment $2.79 $2.60 $3.39Jobs 17,061 18,372 28,407Announcements 310 303 420
11
All announcements are subject to revision
CALENDAR YEAR 2011 HIGHLIGHTS
• Encouraging announcements results and trends compared with 2010– Jobs: +52% (28,407)– Capital Investment: +30% ($3.39 Billion)– Projects: +34% (420)
• Strongest job totals in 8 years, since 2003 • Geographic parity in job growth; each of the 6 Regions exceeded 2010 job totals;
and Diversified Sector Growth statewide• Existing business expansions remain fundamentally important to economic
performance: 71% of jobs, 72% of capital investment• Manufacturing represents 22% of job totals, 38% of total capital investment• Data centers (14 projects) dominant sector for investment; ($960M), and almost
half of all non-manufacturing investment• Professional, Scientific, and Technical Services dominant sector for job growth
(12,363 jobs); high wage sector• International job growth up 66% (2,162 jobs), 8% of all projects; still down about
2/3 from 2008 recent peak of almost 7,000 jobs
SELECTED STATEWIDE PROJECTS - 2011
Company Name Location Business Jobs Investment (millions)
Amazon.com Chesterfield & Dinwiddie Cos. Fulfillment centers 1,060 $85.0
Green Mountain Coffee Roasters Isle of Wight Co. Coffee roasting, grinding, flavoring, packaging 800 $180.0Defense Health Headquarters Fairfax Co. Defense Department’s Medical Command HQ 533 $225.0 International Paper Isle of Wight Co. Fluff pulp mill 213 $80.0ICF International Henry Co. Operations center, business process mgmt. 539 $15.0Bechtel Corporation Fairfax Co. Global Operations HQ; engineering 625 $18.0Backcountry.com Montgomery Co. Online retailer of outdoor gear 216 $25.5MeadWestvaco Corp. Covington Bleached paperboard 0 $285.0
Rubbermaid Commercial Products Winchester/Frederick Co. Commercial plastic products 71 $67.25
Albany Industries Galax Upholstered furniture 335 $2.5K-VA-T Food Stores Washington Co. Corporate HQ; Distribution of food products 25 $20.4Microsoft Corp. Mecklenburg Co. Data center 10 $150.0Cadence Staunton Micro-scale precision-cutting tools 65 $15.9CFA Institute Charlottesville Global association of investment professionals 45 $24.5
All announcements are subject to revision 14
SELECTED HAMPTON ROADS PROJECTS - 2011
Company Name Location Business Jobs Investment (millions)
Green Mountain Coffee Roasters Isle of Wight Co. Coffee roasting, grinding, flavoring, packaging 800 $180.0
Enviva LP Southampton Co. Manufactures wood pellets 64 $75.0
International Paper Isle of Wight Co. Fluff pulp mill 213 $80.0
Katoen Natie Norfolk Warehousing and distribution 225 $12.0
GEICO Corporation Virginia Beach Call center; insurance policies 285 $1.0
IMS:GEAR Virginia, Inc. Virginia Beach Metal and plastic gear assemblies 80 $35.5
Ace Hardware Corp. Suffolk East Coast re-distribution center; hardware 75 $14.0
TRG Customer Solutions Hampton Inbound and outbound communications 120 $3.0
Kruger, Inc. Portsmouth Warehouse, pulp and paper import/export 0 $25.0
Enviva LP Chesapeake Storage/distribution of wood biomass products 24 $11.7
All announcements are subject to revision
15
ANNOUNCED INVESTMENT AND EMPLOYMENT
Region New Jobs Investment (millions) Announcements
Central Virginia 4,134 $517.64 70
Hampton Roads 3,202 $567.81 52
Northern Virginia 14,422 $1,220.73 184
Southern Virginia 2,669 $424.50 39
Southern Virginia 2,029 $149.62 31
Valley Region 1,951 $508.16 44
Grand Total 28,407 $3,388.46 420
Regional Totals – Calendar Year 2011
16
All announcements are subject to revision
RECENT VEDP HIGHLIGHTS
• International Presence Expanded– India: 2 firms engaged in August 2011– United Kingdom: Engaged HMC Global in March 2011– China: Representative in Shanghai in May 2011
• Governor’s Mission to Israel & India – November 2011– Over 60 prospect meetings and events
• Digital Media Campaigns – Over 30 million targeted impressions– Wall Street Journal, Bloomberg Business Week, Forbes– Area Development
• Export Program (VALET ) expanded– Serving existing VA businesses to increase international sales
17
RECENT VEDP HIGHLIGHTS
• Project pipeline improving(+ 40%)• International projects (18% of pipeline)• Broad-based sector activity
– Advanced manufacturing– IT/ Data centers “hot”– Corporate HQ’s; operations centers– Slight uptick in distribution activity, but still below pre-recession norms
• Sector Marketing Campaigns – launched in key regions – Federal (MD/DC)– IT (Northern CAL)– Food Processing (Chicago)– Aerospace (TBD)– Life Sciences (TBD)
18
KEY DEVELOPMENTS AT THE PORT OF VIRGINIA
Trends
• Port volume expected to grow 4% to 5% in 2012
• Volume was up 1.2% in 2011
Port Tax Credits
• Port Volume Increase Tax Credit ($50 per TEU)
• Barge & Rail Usage Tax Credit ($25 per TEU)
• International Trade Facility Tax Credit ($3,000 per new FT employee or 2% of qualifying investment)
20Source: Virginia Business; Port of Virginia
LEGISLATIVE AGENDA - 2012
• Life Sciences Strategy• Tax Credit Enhancements
– Major Business Facility Job Tax Credit– Small Business Investor Tax Credits
• Funding to Promote Advanced Manufacturing– Mega project site development– Workforce readiness
• Non-credit instruction at community colleges• Wallops Island launch site improvements• International & domestic marketing funds• Agricultural & Forestry Initiative Development Fund
21
PROMINENT ACCOLADES
• Virginia named “Top State for Business” by CNBC
• Ranked “No. 1 Pro-Business State” by Pollina Corporate Real Estate, Inc. in 2011
• Ranked number one for “Economic Growth Potential” in Business Facilities magazine
• Virginia Beach named the “Best-Run City in America” by 24/7 Wall St., a financial news website. Chesapeake was ranked sixth.
22