Virginia Beach Economic Indicators: High Performance Manufacturing
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1 Virginia Beach Economic Indicators: High Performance Manufacturing 1
2 Welcome to Virginia Beach With its beaches, great public school system, and recreational activities, Virginia Beach is one of the best places to live in America. And with its skilled, educated workforce, strategic location, low tax rates, and dynamic, diverse economy, it s increasingly becoming one of the best places to do business as well. Target Cluster: High Performance Manufacturing The Virginia Beach Department of Economic Development is eager to assist your new or existing business maximize its economic potential in any way we can. The programs and services we offer include, but are not limited to: Site selection Advocacy Market information Financial guidance Business assistance Minority business assistance 2
3 Strategic Location Virginia Beach MSA Largest Metropolitan Statistical Area(MSA) between Atlanta and Washington, D.C. More than two-thirds of the U.S. population and business marketplace are within 750 miles of the Virginia Beach MSA Population: 1.65 million Total Labor Force: 900,000 City of Virginia Beach The Commonwealth s most populous city Population: 440,000 Source: Virginia s Hampton Roads Regional Overview 4th Quarter
4 Virginia Beach MSA America s First Region 4
5 Major Manufacturers in Virginia Beach 5
6 Technological Assets With an annual growth rate of 5.2%, the Virginia Beach MSA employs over 60,500 people in high technology. The Virginia Beach MSA is home to the country s center for military training utilizing computer simulation technology (major military training facilities: JTASC, JWFC, Joint Forces Staff College) The world s third largest marine science institute dedicated to estuarine research is at the Virginia Institute of Marine Science at the College of William and Mary The largest university wind tunnel in the country is operated by Old Dominion University The world s largest Continuous Electron Beam Accelerator resides at the Thomas Jefferson National Accelerator Facility, Newport News, VA The nation s first Doctorate degree in Modeling & Simulation was awarded by Old Dominion University The nation s first in vitro fertilization and birth took place at the Jones Institute, Eastern Virginia Medical School Nasa s Wallops Flight Facility on Virginia s Eastern Shore was selected to demonstrate the new Orbital s Taurus II launch rocket in 2010 Source: Virginia s Hampton Roads Regional Overview 4th Quarter
7 Simulation Technology The Virginia Modeling, Analysis and Simulation Center (VMASC) was founded July 1, 1997 by Old Dominion University and several regional partners to capitalize on the military simulation that occurs at the Joint Training, Analysis and Simulations Center (JTASC). Current Projects Homeland Defense M&S Crowd Modeling Cognitive Task Analysis Enhanced Visualization Human Systems Integration Support Medical Mass Casualty Modeling Virtual Non-Lethal Weapon Development The nation s first Doctorate degree in Modeling & Simulation was awarded by ODU. Source: Defense Industry in Virginia s Hampton Roads, 4th Quarter 2007, 7
8 Labor Pool Total Labor Force: 900,000 including 16,000 personnel exiting the Navy each year, and over 40,000 military spouses continuously replenishing the labor force. 38,000 engineers, scientists and technicians in Virginia Beach MSA - second only to the Silicon Valley on a per capita basis (Source: David Birch, MIT) 16,000 highly trained, experienced, and disciplined personnel exit the Navy each year Source: Virginia s Hampton Roads Regional Overview 4th Quarter 2007 and 2006 Newspapers First - The Norfolk Market. 8
9 Labor Cost & Taxes Virginia is an Employment At Will State, also known as a Right-to-Work State. Virginia Unemployment Insurance Rate is one of the lowest in the U.S. VA Average = $146 U.S. average = $194 Virginia Workers Compensation Cost is among the lowest in the U.S. VA Average = $2.33 U.S. average= $4.19 Source: Virginia s Hampton Roads Regional Overview 4th Quarter
10 State and Local Tax Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures in the nation. Virginia has not raised its corporate income tax rate of 6% since Source: Virginia Beach Community Profile, Virginia Beach Economic Development,
11 Education Virginia Beach City Public Schools The Virginia Beach City Public Schools Workplace Readiness Skills Program gives high school students the training they need to succeed in the workplace. Virginia Beach City Public School graduation rate is 82.7% Average SOL* Part 1 passage rate: 89.8%; average SOL Part 2 passage rate: 87.1% 84.9% of Virginia Beach high school graduates have continuing education plans QuickTime and a TIFF (Uncompressed) decompressor are needed to see this picture. Source: Virginia Beach Community Profile, Virginia Beach Economic Development, 2007, stats for 2006/2007 school year *Virginia Standards of Learning examination, part of the national No Child Left Behind initiative. 11
12 Education - The Advanced Technology Center (ATC) The Advanced Technology The Center ATC provides (ATC) provides high school high and school college and college students students with technology- driven with technology-driven education and industry-certified education and training. industry-certified training. Students who complete programs at the ATC are poised to enter the job market well-prepared with the industry certifications and entry-level skills demanded in their field of choice. They also have the option of continuing their education at the community college or university level. The center offers four strands of curriculum: Information Technology, Telecommunications, High Performance Manufacturing/Engineering and Marketing Education. The ATC also houses Tidewater Community College programs. These programs allow students to earn Associates in Science (AS) or Associates in Applied Science (AAS) degrees, with a choice of focus on information technology, computer science, engineering and technology, and industrial, electronic, mechanical, civil, and engineering technology, as well as computer-aided drafting and design. 12
13 Education - Regional Over 92,000 students are enrolled in the area s colleges and universities. Over 12,000 college students graduate in the Virginia Beach MSA every year. Source: Virginia s Hampton Roads Regional Overview 4th Quarter 2007, 13
14 Virginia Beach Civilian Employment by Sector Chart excludes 19,900 active duty military members Source: City of Virginia Beach 2007 Economic Development Strategy Update, January
15 Air: Passenger/Cargo The Virginia Beach MSA s primary airport offers 200 flights per day, including direct non-stops to 25 airports, 17 of which are major hubs. Norfolk International Airport (ORF) Serviced by seven airlines: Northwest, Continental, Delta, Southwest, American, United Express, and U.S. Airways Up to 90,000 passengers travel from Norfolk each week Daily non-stop flights to Dulles International, gateway to the international market Newport News/ Williamsburg International Airport (PHF) Serviced by three airlines: AirTran, Delta, and US Airways Up to 14,600 passengers travel from Newport News each week Non-stop flights to seven cities including Atlanta, Boston, New York and Philadelphia Total 2007 Air Cargo: 64 million pounds Cargo Services: Sources: and 15
16 Sea: The Port 115 Virginia Beach companies have direct port-related activities. Port Facts The Port of Virginia is 18 miles from the Atlantic Ocean, with an unobstructed, ice-free harbor and 50-foot-deep channels Served by 48 steamship lines, with sailings to over 380 ports in 115 countries The Port of Virginia handled 2.13 million Twenty-Foot Equivalent Units (TEUs) in 2007 MSA is home to one of the country s largest geographic Foreign Trade Zones (FTZs), with 18 sites and 4 subzones Lowest pilferage rate of any U.S. port In the News APM Terminals Virginia Phase I of its $450 million, 575-acre facility is currently operational The USA s largest private investment container terminal Virginia International Terminals (VIT) Signed 97% of customers to a 10 year contract worth $500 Million Sources: Virginia s Hampton Roads Regional Overview 4 th Quarter 2007, Maritime, Logistics, Warehousing and Distribution in Virginia s Hampton Roads 4 th Quarter 2007, 16
17 Intermodal: Rail & Trucking National rail carriers handle cargo throughout the East Coast and Midwest. Fortune 500 holding company with corporate headquarters in the Virginia Beach MSA Operates 21,600 miles of track in 22 states in the Southeast and Midwestern U.S., as well as the Canadian province of Ontario Fortune 500 international transportation company with major presence in Virginia Network of 21,000 route miles in 23 states, the District of Columbia, and two Canadian provinces Sources: Virginia s Hampton Roads Regional Overview 4 th Quarter 2007, Maritime, Logistics, Warehousing and Distribution in Virginia s Hampton Roads 4 th Quarter 2007, 17
18 Military Presence The Virginia Beach MSA has the largest number of military decision makers outside of the Pentagon. Military Commands DoD: United States Joint Forces Command Norfolk NATO: Allied Command Transformation - Norfolk Navy: U.S. Fleet Forces Command - Norfolk Navy: Naval Network Warfare Command - Virginia Beach Navy: Navy Expeditionary Combat Command- Virginia Beach Navy: Navy Exchange Headquarters - Virginia Beach Air Force: Air Combat Command - Hampton Marine: Marine Forces Atlantic Norfolk USCG: Maintenance and Logistics Command Atlantic Norfolk USCG: Atlantic Area Command Portsmouth USCG: Integrated Support Command Portsmouth Army: Surface Deployment and Distribution Command Newport News Army: Training and Doctrine Command - Hampton Source: Virginia s Hampton Roads Regional Overview 4th Quarter
19 Military Presence Source: Defense Industry in Virginia s Hampton Roads, 4th Quarter 2007, cnic.navy.mil/oceana/index.htm, cnic.navy.mil/littlecreek/index.htm, 19
20 Virginia Beach: International Business More than 20 international companies from 12 different countries have offices in Virginia Beach. Germany Japan Iceland Canada Israel Switzerland Hong Kong Denmark United Kingdom Sweden Italy India Source: Virginia Beach Department of Economic Development 20
21 Region: International Business There are 140 firms from 27 countries doing business in the Virginia Beach MSA, in addition to the international firms in Virginia Beach. Other includes Australia, Brazil, China,Finland, Greece, India, Israel, Leichtenstein, Mexico, Norway, Spain & Taiwan Source: Virginia s Hampton Roads Regional Overview 4th Quarter
22 Major Private Sector Employers in the MSA Source: Virginia s Hampton Roads Regional Overview 4th Quarter
23 Healthcare Source: Virginia s Hampton Roads Regional Overview 4th Quarter
24 Real Estate Sources: NAI Global Commercial Real Estate Services, and RS Means 24
25 Virginia Beach Business Corridors Virginia Beach has six major business corridors containing nearly 33 million square feet of total enclosed space. Virginia Beach Corridors Corporate Landing Business Park Central Business District/Town Center Oceana West Corporate Park/Lynnhaven Corridor Airport Industrial Park Hilltop Commerce Center Oceanfront/Resort Area Source: VBDED 2007/2008 Community Profile 25
26 Unparalled Quality of Life Virginia Beach is one of the largest resort cities in the world, with 38 miles of shoreline and 59 square miles of inland water. It offers a temperate four-season climate. 26
27 Incentives Virginia offers a variety of performance-based incentives designed to meet the needs of the company as well as the development plans of localities and the state. Virginia Beach Economic Development offers the following incentive programs to qualified businesses: Economic Development Investment Program Funds Industrial Revenue Bonds Fast-Track Construction Program Public-Private Partnerships Source: Virginia s Hampton Roads Regional Overview 4th Quarter
28 Site Selection Criteria Important site selection considerations: Virginia Beach Proximity and easy access to markets, suppliers & customers Labor availability and competitive wage levels Low cost of doing business and living Real estate suitability (cost, timing, quality & availability) Strong global and regional economics High quality of life Business incentives 28
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