Issuu

HAMPTON ROADS ALLIANCE HAMPTON ROADS ALLIANCE

2021 MID-YEAR REP RT ECONOMIC EMPOWERMENT AND GROWTH FOR ALL The Hampton Roads business community created the 757 Recovery & Resilience Action Framework to reactivate the economy and build future economic and community resilience. This coalition, led by the Hampton Roads Alliance, also includes the Hampton Roads Chamber, Virginia Peninsula Chamber, Reinvent Hampton Roads, Hampton Roads Workforce Council, Greater Peninsula Workforce Board, Old Dominion University’s Strome College of Business, Norfolk State University, and the CIVIC Leadership Institute. This Framework is not a plan, but rather an action playbook created by and for the 757’s business community and approximately 5,500 business leaders. The Framework seeks to advance five strategic imperatives: 1) Build Regional Unity

2) Grow New Jobs

3) Grow, Retain, & Attract Talent

4) Build Resiliency

5) Advance Regional Infrastructure

On March 11, the coalition hosted a media briefing to present the 757 Recovery and Resilience Action Framework. This public relations effort resulted in a variety of media articles and editorials in support of this game-changing initiative that is buoyed by tremendous regional cooperation. A microsite, 757framework.com, was built to serve as a digital home for the Action Framework. The site provides an interactive look at the facets of the framework and will feature a dashboard to monitor regional economic indicators and showcase key performance indicators for each of the 30 programs. In addition, a supplier resource platform geared toward minorityowned companies is under development in conjunction with Norfolk State University, Hampton University, and the Urban League of Hampton Roads. The dashboard and minority supplier platform will both launch in October 2021.

THE NEXT GENERATION OF LEADERS

Building on the Envision 2020 Regional Branding Initiative, the next generation of leaders have continued the efforts to build pride in the region under the 757 branding. In December 2020, 757 Proud, a non-profit 501(c)(3) launched. It is the first, successful coalition of young professional organizations of Hampton Roads collectively representing more than 2,000 (40 and under) 757 leaders. Together, their energy, consistent communication, and collective voice has ignited the pride-building campaign and other program components of the 757 Framework. As part of the Framework, the Alliance provided seed funding to 757 Proud and serves as the primary convener for the program. 757 Proud’s Board of Directors includes 11 diverse, young professionals who live across the region and five Ex-Officio Directors who lead the five largest local young professional networks to include the Hampton Roads Chamber’s group tHRive and ASPIRE in Williamsburg. In May, 757 Proud launched the 757 Did You Know? Campaign which featured an online, interactive Fact or Myth game where users test how much they know about 757’s incredible history, sports, local famous celebrities, and other fun facts. Monthly winners receive cash or prizes from local merchants. Metrics are tracked on a monthly basis confirming how many games have been played and the number of questions answered correctly or incorrectly. These metrics are used to gauges how many people are gaining knowledge and understanding about everything the region has to offer. 757 Proud has many more initiatives in the works and plans to make presentations across the region about their efforts and how they plan to take the 757 to the next level.

PROUD

CMA CGM GROUP

In February, CMA CGM, one of the largest shipping and logistics companies in the world, announced plans to grow its presence in Norfolk and throughout Virginia. The expansion in Hampton Roads will encompass a $36 MILLION investment to reinforce the company’s Norfolk headquarters. The Alliance worked with the City of Norfolk and the Virginia Economic Development Partnership to help secure this expansion.

2021 ANNOUNCEMENTS

KATOEN NATIE

In April, Katoen Natie, a plastics and polymers warehousing and distribution company, announced it will invest $61 MILLION to expand its freight distribution center in the City of Norfolk. The company will add a 243,000 sq. ft. warehouse and rail facility to its operation which will create 35 NEW JOBS. The Alliance assisted Katoen Natie with its initial decision to locate in Norfolk alongside Virginia Economic Development Partnership over ten years ago.

SUNNY FARMS, LLC

Sunny Farms, LLC, announced in April that it will invest $59.6 MILLION to establish a state-of-the-art hydroponic greenhouse for production, workforce development, and research in the City of Virginia Beach. The Alliance worked with the Virginia Economic Development Partnership, the Virginia Department of Agriculture, the City of Virginia Beach, and Virginia Tech on this project, which will create 155 NEW JOBS.

BREEZE AIRWAYS

Breeze Airways, a new U.S.- based airline providing lowcost, nonstop service to mid-size markets, announced in May that it will invest $5.2 MILLION to establish an operations center in the City of Norfolk, creating 116 NEW JOBS. Norfolk will be one of Breeze Airways’ first five locations in the U.S. Initial routes will fly from Norfolk to Charleston, Tampa, New Orleans, Columbus, Hartford, Pittsburgh, and Providence. The Alliance worked with numerous state and local partners to secure the project for Hampton Roads.

VRC METAL SYSTEMS

VRC Metal Systems, in collaboration with Mid-Atlantic Tech Bridge, U.S. Navy, and Hampton Roads Maritime Collaborative for Growth & Innovation announced in May that they will establish an industrial facility in the City of Chesapeake, creating up to 10 NEW JOBS for the Hampton Roads region over a five-year period. VRC Metal Systems expanded to Hampton Roads from South Dakota as the first successful Navy Mid-Atlantic Tech Bridge company. The Alliance worked closely with the VRC team to identify the best location for their facility and establish operations in the region.

ROBUST LEAD GENERATION The Alliance’s lead generation team deploys outreach to companies in target industries through direct marketing and trade shows. This outreach ultimately leads to introductory meetings with a subset of potential viable prospects, some of which ultimately become leads. The team’s lead generation activities since January are detailed below. DOMESTIC

INTERNATIONAL

COMPANIES CONTACTED

2,851 10,569

MEETINGS

65 187

FOLLOW UP REQUESTS FOR INFORMATION

112 294

ENGAGING ELECTED OFFICIALS In February, Senator Warner’s office worked with the Alliance to host a meeting with industry leaders in unmanned systems. The purpose of the meeting was to better understand the challenges and opportunities in Hampton Roads in the unmanned systems space to include air, land, and marine. Participants included DroneUp, Tridentist, Huntington Ingalls Industries, Virginia Institute for Spaceflight & Autonomy, and the National Institute of Aerospace. The Alliance is continuing to work with these leaders and is planning to host more roundtables to discuss the developing the unmanned systems ecosystem in the region. Throughout the spring, the Alliance participated in two Offshore Wind roundtables: one with Senator Warner and another with Senator Kaine. These meetings were held to help both Senators understand the generational opportunity presented to this region by offshore wind and identify ways the Senators could remove some federal-level obstacles. Other participants included Dominion Energy, Avangrid Renewables, Orsted, Old Dominion University, Virginia Maritime Association, Port of Virginia, Hampton Roads Workforce Council, and Virginia Department of Mines, Minerals and Energy.

BUSINESS BUILDING CONSULTANT RELATIONSHIPS The Virginia Economic Development Partnership (VEDP) invited regional EDOs to participate in two virtual networking programs organized by the Site Selectors Guild. The first discussion included several prominent site selectors who lauded VEDP’s workforce development training programs and expressed significant interest in Hampton Roads’ offshore wind supply chain efforts. The second discussion, held in April, centered around the Commonwealth’s new Talent Accelerator Program and an in-depth overview of the offshore wind supply chain in Hampton Roads. In June, Alliance staff attended the Site Selectors Guild Annual Conference in Orlando. The event featured 50 Guild members, all of whom actively work site location projects on behalf of their clients. Two roundtable sessions enabled attendees to have an open discussion with many of the site selectors. During the second evening of the conference, the Alliance joined VEDP and several other Virginia economic developers in hosting a dinner for 6 of the site selectors.

RECRUITMENT During the first half of 2021, the Alliance engaged with a variety of prospects in both virtual and in-person formats. Since January, the Alliance has worked on the following:

27 LEADS An inquiry from or initial conversation with a company, where capital investment/job creation parameters have not been communicated

21 REAL ESTATE SEARCHES Company request for real estate options; project parameters have not been decided or disclosed

Alliance staff also attended Area Development’s Consultant Forum held in Richmond in June. The Alliance helped sponsor the event along with VEDP and 13 other regional groups. In addition to networking opportunities, the conference featured presentations by the 14 consultants in attendance. A wide range of topics were addressed including a discussion of the shifting dynamics of economic development in a post-pandemic world and how to manage workforce shortages. In early June, the Alliance hosted site selector Steve Weitzner for a familiarization tour of Hampton Roads. Steve is employed by PM & Partners and is assisting the Alliance in its domestic lead generation efforts. During his two days in the region, Steve met with ADP and ITA International to learn about their experiences with the local workforce. He also spent time at the Port of Virginia and toured Sumitomo Drive Technologies to hear about their use of the Foreign Trade Zone program. In addition, Steve spent time with many of the local economic development directors so that he could develop relationships and learn more about the assets of Hampton Roads.

4 INFORMATION GATHERINGS Company request for preliminary information. Company has a plan with a time-frame >12 months but project parameters not specifically communicated

9 SITE VISITS Company representatives visit Hampton Roads either in person or virtually to tour real estate or learn more about the region

7 NEW ATTRACTION PROJECTS 5 NEW EXPANSION PROJECT Definitive parameters for job creation and capital investment, as well as a time-frame for decision-making within 12 months.

JAN

FEB

MARCH

APRIL

MAY

JUNE

BUSINESS RETENTION & EXPANSION

The Alliance spent the first half of 2021 developing a Business Retention & Expansion (BRE) framework by which the Alliance, along with local and state partners, can provide maximum value to existing businesses. The approach will be both regional and collaborative, providing follow-up services related to ongoing BRE outreach efforts to existing businesses and adding value to the existing business retention efforts of local public partners. BRE ASSISTANCE & VISITS

MAKING THE CASE FOR RETENTION

The Alliance participated in 32 traditional BRE meetings with companies in the first half of 2021. Alliance staff also assisted one community with writing its BRE strategy and is tasked with assisting the community in carrying out the plan.

Since its introduction last year, the BRE function has supported three expansion projects. In particular, the Alliance added value by developing and contributing relevant business intelligence to support the companies’ decisions to expand at their respective existing locations. Through engaging with companies on traditional business retention visits and through existing relationships with local partners, the BRE function is gaining insight of pending and current expansion projects and collaborating with the Alliance’s Business Intelligence division to determine what relevant data (i.e., regional commuting patterns, applicable workforce development programs, regional wage comparisons) could be organized into a formal Retention Proposal. In one instance, data provided by the Alliance was included in Virginia’s incentive proposal to the client. The BRE and BI divisions are currently collaborating on developing a standard regional business retention proposal for future projects.

BRE PILOT PROJECT A select group of localities — Franklin Southampton, Hampton, Isle of Wight, and Norfolk — served as a pilot panel to offer constructive feedback on the Alliance’s BRE framework. The group examined policies and procedures under consideration and will issue a final draft version of BRE Protocols for Regional Collaboration in late summer.

REGIONAL TRAINING The Alliance facilitated a regional BRE training course delivered by the organization’s business development consultant, PM&P. The training sessions, six in total, led attendees from the Alliance, local economic development organizations, the Chambers of Commerce, and regional workforce development councils through topics ranging from conceptualizing the Alliance as a regional hub of retention and expansion efforts to the potential implementation of trade support services.

INTERNATIONAL BUSINESS CONNECTIONS AND OPPORTUNITIES The Alliance participated in a virtual trade mission being carried out by a UK-based Chamber of Commerce representing the Cities of Dundee and Angus in Scotland and served as a regional point-of-contact for participating Scottish companies. The Alliance shared the company list and descriptions with local economic development partners, supplied the Scottish companies with requested contacts at local businesses and regional organizations, and formally presented a Hampton Roads overview to two companies seeking to explore entry into the US market within the next six-totwelve months.

INDUSTRY CLUSTER DEVELOPMENT As a focal part of BRE visits, the Alliance is exploring companies’ existing supply chains to identify opportunities to attract potential suppliers or customers for existing businesses. Through a series of meetings with wood-products manufacturers, the Alliance has engaged the small, yet robust wood-products industry cluster primarily located in the City of Franklin and Counties of Isle of Wight and Southampton. This industry could add more depth by diversifying the existing cluster with manufacturers in the engineered wood space which is driven by the rise of the cross-laminated timber market in the US and the alternative energy market globally. The Alliance and local partners are in conversations with PM&P to pilot this lead generation initiative by developing a value proposition, by connecting PM&P with select companies to further the consultants’ knowledge of supply chain goals, and by implementing a direct marketing campaign for this industry.

SUPPLIER ENGAGEMENT

The Alliance and the Virginia Maritime Association hosted two supplier engagement events in May with Nexans and Seaway7, two global offshore wind companies that are seeking to source work locally should they win a contract to install subsea cables and foundations. Nexans and Seaway7 presented information about their companies, scopes of work they intend to source in Hampton Roads, and how local companies can become a subcontractor for this project and future projects. Over 100 companies participated in the events. Participants were invited to arrange follow-up meetings with the Nexans and Seaway7 procurement teams.

RESEARCH DRIVEN OUTREACH The Alliance partnered with Xodus Group, a global energy consultancy, to conduct an offshore wind supply chain assessment and gap analysis for the Hampton Roads region. The study assessed Hampton Roads’ supply chain assets and gaps, gauged the capabilities of local companies to become suppliers in the offshore wind supply chain, classified offshore wind job roles and training requirements, identified opportunity sectors within the industry, created an outreach plan to connect developer and Tier 1 suppliers with the local supply chain, and provided a set of strategically focused recommendations to develop Hampton Roads into a hub of the offshore wind industry. In addition, the Alliance and consulting partner PM&P have developed an offshore wind business attraction plan. The plan identifies target industry sectors, target countries, and an investment promotion strategy.

FRIDAY FORUMS

In partnership with Dominion Energy, the Alliance hosts a “Friday Forum” once a month to discuss ways in which interested companies can support and can engage in the Coastal Virginia Offshore Wind project. Speakers have included several Dominion executives as well as Jeff Tingley, Senior Consultant for Xodus Group, GENEDGE’s Steve Holcomb, and Chief Deputy of the Virginia Department of Mines, Minerals, and Energy (DMME) Jennifer Palestrant, among others. These forums will continue on a monthly basis throughout 2021.

VIRGINIA OFFSHORE WIND LANDING

The Hampton Roads Alliance, Virginia DMME, and ODU’s OpenSeas Technology Innovation Hub opened the Virginia Offshore Wind Landing in the World Trade Center in May. The Landing is a co-working space and networking hub for offshore wind companies interested in establishing a presence in Virginia. The purpose of the Landing is to develop a cluster of offshore wind companies and foster the growth of Hampton Roads as an innovation and supply chain hub of the offshore wind industry. The Landing has ten member companies including two wind energy developers and a cross section of companies that will be leading the development of the offshore wind supply chain in the U.S. A ribbon cutting ceremony was held at the Landing on May 12 and welcomed over 30 guests including City of Norfolk Mayor, Kenneth Alexander; CEO and Executive Director of the Port of Virginia, Stephen Edwards; and Virginia DMME’s Jennifer Palestrant, as well as representatives from the founding member companies. Three founding members stayed in the region for extended visits, which included site tours and meetings with key stakeholders and potential supply chain partners.

OFFSHORE WIND

Alliance staff engaged in 50 meetings with prospect companies in the offshore wind industry during the first half of 2021.

STRATEGIC ANALYSIS CORPORATE OFFICE ATTRACTION In 2020, the Alliance hired site selection firm, Wadley Donovan Gutshaw Consulting (WDGC) to assess the locational resources of Hampton Roads for corporate office entities. The goal was to increase the pipeline of office projects with the aim of bringing high-skill, high paying jobs to Hampton Roads and to fill available office space in key sub-markets throughout the region. The project was completed in six months and resulted in the recommendation of four office and three technology sectors for which Hampton Roads has the best chance of attraction. To ensure the study could be put to immediate use, the Alliance asked WDGC to produce white papers for the recommended office sectors. These reports were completed in early March and are being incorporated into the Alliance’s marketing materials. WDGC is currently developing white papers for the three technology sectors that will enable the Alliance to increase its effectiveness in its targeted marketing approach. To best utilize the study results, the Alliance Business Development team worked in collaboration with the Marketing & Communications department to develop 4-page executive summaries and brief PowerPoint presentations that highlight key information and regional assets within the industry.

CORPORATE OFFICE LOCATION SEARCHES AND THE CASE FOR HAMPTON ROADS: A SITE SELECTION CONSULTANT’S PERSPECTIVE* Hampton Roads, Virginia — A Logistics Center of Excellence

SNAPSHOT OF KEY ADVANTAGES COMPANIES CAN DRAW UPON A DEEP POOL OF LOGISTICS EXPERTS AND A SUBSTANTIAL ENTRY-LEVEL TALENT POOL: Hampton Roads can supply critical talent to logistics companies to perform functions including: supply chain design / flow path analysis, route planning, inventory deployment, risk mitigation, and advanced analytics to collect clean data, build models and conduct sophisticated planning and scenario analysis. • Nearly 60,000 employees in the distribution, logistics and transportation sectors regionally, including 1,900 logisticians, 1,500 marine engineers, 2,000 civil engineers, 1,000 operations research analysts / statisticians • A firm new to the area can become involved with local colleges/universities to support existing logistics curricula, create new programs, and enhance the talent pipeline. PRESENCE OF AN EXCEPTIONAL INDUSTRY ECOSYSTEM. Hampton Roads has strategically significant players in academia, nonprofit, innovation/start-up, and established private sector companies. In addition to the Port of Virginia, these include: • Old Dominion University’s Maritime Institute and Transportation Research Institute (two cornerstones of higher education collaborating with logistics companies in Hampton Roads); • Defense Logistics Agency; • Huntington Ingalls Shipbuilding and other private companies such as: Smithfield Foods’ Logistics Office, UPS Supply Chain Solutions, Norfolk Southern, CMA CGM America, Lineage Logistics and Zim Integrated Shipping; • Old Dominion University’s Center for Cybersecurity Education and Research and the Virginia Modeling, Analysis and Simulation Center.

INTRODUCTION 0-

il e

ra d

ius

NATIONAL RECRUITING IS STRENGTHENED by the low cost of living, array of amenities/services, recreation opportunities, affordable housing, and the industry ecosystem.

Hampton Roads, Virginia, with a population exceeding 1.7 million, is the largest metro between Washington, DC and Charlotte, NC. Connecting the Atlantic Ocean with the Chesapeake Bay and James River, this waterborne region comprises 17 localities. The Hampton Roads Alliance represents 11 of these including the cities of Virginia Beach, Norfolk, Newport News, Chesapeake, Poquoson, Portsmouth, Suffolk, Franklin and Hampton and the surrounding counties of Southampton and Isle of Wight. Hampton Roads boasts a vibrant, diversified economy in the office sector, including financial services, headquarters, and other corporate functions.

HAMPTON ROADS, VIRGINIA

Several well-regarded colleges and universities, including William & Mary, Old Dominion and two historically black colleges and universities, attract a diverse student body and faculty, both nationally and internationally as well as being important players in innovation across a spectrum of leading technologies. These institutions, along with local community colleges, provide an excellent source of talent within Hampton Roads. Generating more local job opportunities for graduates is an important economic development priority. Hampton Roads’ proximity to the nation’s capital plus easy access to the Northeast corridor and Mid-Atlantic regions are geographic assets. These, in combination with a deep logistics and distribution industry talent pool, a robust maritime and inland transportation infrastructure, business and living costs far lower than the Washington to New York City corridor, and welcoming state and local governments add up to an impressive value play for companies to establish or expand logistics competencies.

Hampton Roads has one of the most robust ecosystems for logistics / supply chain activities in the U.S., with an impressive core competency in maritime transportation. The competitively priced talent pipeline is far from saturated, which allows ample room for companies to establish new logistics centers of excellence. * In April 2020, the site selection firm of Wadley Donovan Gutshaw Consulting (WDGC) began a 6-month study assessing the locational resources of Hampton Roads for corporate office entities that could capitalize on the region’s talent pool and other assets. Logistics Center of Excellence was one of the sectors identified as a good fit for Hampton Roads. WDGC was selected to perform this study because they have been advising corporations on business location strategy for four decades and have performed numerous site selection assignments involving corporate offices.

A COMPANY CAN RECRUIT WORLD CLASS TALENT, DRAWING FROM THE INDUSTRY ECOSYSTEM, thereby benefiting from knowledge sharing and innovation. All of this can be accomplished at an attractive price point: • Business costs are among the most favorable when compared to other logistics hubs, especially those on the coasts; • Salaries are substantially less than in Tier One port city metros such as New York, Philadelphia, BaltimoreWashington D.C., Chicago, and West Coast cities; • Virginia offers a moderate tax burden for business, and lower than many likely source regions; • Office space is readily available throughout the region at moderate lease rates. OPPORTUNITIES FOR OFFICING ACROSS THE SUBMARKETS: One of the outstanding assets of Hampton Roads is the flexibility of officing opportunities across multiple submarkets, each offering a variety of price points, amenities and local talent nuances.

SALARY COSTS For a 250-headcount logistics center of excellence, the salaries in Hampton Roads offer significant cost advantages. For example, in comparison to Washington DC, the logistics job family median is 34% lower in Hampton Roads, resulting in annual salary costs savings of over $5.5 million for a 250-person operation. Over 10 years, salary savings could exceed $50 million, prior to consideration of lower real estate costs, taxation, and other costs of doing business.

Hampton Roads Alliance

Median Weighted Salary Index (U.S. = 100) By Occupational Job Family AREA NAME

LOGISTICS JOB FAMILY

FINANCIAL PROF’L/ CLERICAL

SHARED SERVICES PROF’L/ CLERICAL

CUSTOMER SERVICE

INFO TECH PROF’LS

Hampton Roads

109.5

95.3

94.8

88.5

90.2

Boston

120.6

117.4

118.7

114.7

New York

115.4

134.5

127.3

118.7

114.7

San Francisco

127.1

127.5

128.1

129.7

137.5

Washington, D.C.

146.7

122.1

122.7

111.8

120.1

$59,904

$62,630

$61,711

$29,812

$90,326

U.S. MEDIAN WEIGHTED SALARY

Virginia Beach-Norfolk-Newport News Metropolitan Statistical Area

www.HamptonRoadsAlliance.com

April 2021

BUSINESS INTELLIGENCE ASSISTS The Alliance’s Business Intelligence department is tasked with researching, analyzing, and disseminating information about the myriad reasons why Hampton Roads is an ideal location for business. This is done in conjunction with the business recruitment and expansion teams, as well as for the Alliance’s public and private investors, who can call on the business intelligence team for research assistance, including but not limited to economic impact studies, demographic reports, mapping, company lists, and cost comparison analyses. During the first half of 2021, the team completed 83 business intelligence assists. The majority of these were for locality partners and ranged in scope from completing economic impact analyses to providing commuting patterns and demographic reports. The Alliance stands at the ready to assist any public or private investors, with a stated goal to perform at least 150 assists in 2021.

HAMPTON ROADS INFRASTRUCTURE COALITION As part of the Alliance’s efforts to support the greater Hampton Roads region, the Alliance participated in the Hampton Roads Infrastructure Coalition (HRIC), which apart from the Hampton Roads Alliance, includes Reinvent Hampton Roads, the HRPDC and HRTAC, the Virginia Port Authority, the HRWC, the Virginia Maritime Association, RVA757 Connects and the Hampton Roads Business Roundtable. The group submitted a high priority list of critical infrastructure regionally based projects developed and approved by all 17 localities as part of the FY2022 appropriations process and/or the President’s American Recovery Act. The HRIC’s initiatives focus on water resources, surface transportation, renewable energy, broadband, education, and housing.

GO VIRGINIA ROBOTICS HUB PLANNING GRANT The Alliance, along with the Cities of Hampton, Newport News, and Norfolk, received a GO Virginia grant to study the feasibility of a robotics and automation hub for Hampton Roads. In January, the Virginia Tech Office of Economic Development was selected to conduct this study. As part of this initiative, the Virginia Tech team explored the regional context for industry-related robotics and the related innovation it supports; the national/global industry context for robotics and automation; and the most promising niches of opportunities for robotics and automation in the region. To help address those questions, the team conducted national and regional stakeholder interviews with companies either directly engaged in robotics and automation or those that rely on it in the work that they do. The Virginia Tech team then presented the first draft of the study findings to the planning grant team, who is currently reviewing the initial report.

MARKETING & COMMUNICATIONS

AGENCY SEARCH AND SELECTION

As part of the continued rebranding of the organization into the new Hampton Roads Alliance, staff set out to partner with a local advertising agency. Sway Creative Labs was selected and brings with them not only an intimate knowledge of the region but also an impressive client portfolio that includes Alliance investors like Sentara Healthcare, Dollar Tree, and the Port of Virginia. Sway worked with the Alliance Marketing & Communications team to outline a post-covid marketing plan which will launch in August 2021. The strategy will be to build upon the IBM, Wadley Donovan, and offshore wind studies performed for business recruitment to make the case for Hampton Roads to specific industries and markets. The agency is also helping to redesign key pieces of Alliance collateral and creating brochures to promote the Alliance to local business owners and interested parties as a regional resource for businesses looking to expand within the market.

INVESTOR SPOTLIGHT SERIES The Alliance launched an Investor Spotlight Series in April to highlight its Premier, Platinum and Gold private investors as well as its 11 public-sector locality investors. Each spotlight is featured on the Alliance website and promoted on all social media platforms. Not only does it showcase the great work the Alliance’s investors are doing in the community, but it shares the story and significance of the entity as part of the greater community from the perspective of the company or locality itself. The write-up includes a history of the company/locality, any recent successes/announcements, biggest growth opportunities provided, and how the Alliance has assisted in their overall success.

CONTENT MARKETING In 2020, the Alliance engaged Site Selection Magazine and its public-sector investors for a print advertising campaign intended to increase exposure for Hampton Roads. The campaign featured industry-focused editorials, called Investment Profiles by Site Selection Magazine, written by a managing editor with strategic direction and collaboration from the Alliance. The five part series began in July 2020 and concluded in May 2021. These content marketing pieces included testimonials from local companies and gave the Alliance the chance to dive deeper into its key industries to proactively create marketing content. In addition to sharing the online version of the editorial, Site Selection Magazine provided high quality reprints of the features to be used as business recruitment collateral with prospects and site location consultants. To amplify the impact of this campaign, the Alliance coordinated co-marketing opportunities with its member localities within the Investment Profile series. While the Alliance paid for two pages-worth of editorial, Site Selection Magazine agreed to increase its editorial to three total pages if the Alliance secured one full page of paid advertising from one of its public investors, which was offered at a discounted rate by Site Selection Magazine. In January, the Alliance’s Investment Profile focused on Food & Beverage Processing and featured businesses such as Massimo Zanetti, Acesur USA and The Tarnished Truth. The piece also included a full-page ad from Portsmouth Economic Development. The March 2021 issue of the magazine included an Investment Profile on Shared Services that was co-marketed with the City of Newport News. Featured companies included CMA CGM, Avis Budget Group, and Dollar Tree. To conclude the series, the Alliance coordinated with more than half a dozen state and local partners to develop a five page editorial on Offshore Wind. The piece included ad support from the Virginia Department of Mines, Minerals and Energy, the Port of Virginia and the City of Virginia Beach.

I N V E S T M E N T

P R O F I L E :

HAMPTON ROADS, VIRGINIA

Food and Beverage Steeped in Hampton Roads

Massimo Zanetti is one of several coffee and tea producers whose operations have earned Suffolk the moniker “Caffeine Capital of America.” Photos: Hampton Roads Alliance

by ADAM BRUNS adam .bruns @ siteselec tion .com

ood can spark our most powerful memories. Generations of good experiences in coastal Virginia continue to spark investments by global food and beverage companies. Many of them even got their start right there in Hampton Roads, the region of southeastern Virginia officially known as the Virginia BeachNorfolk-Newport News metro area. J.S. Darling & Sons Oyster Packers was founded in 1881 in Hampton. McMenamin Crab Co. founder James McMenamin invented and patented the modern process of canning and sealing meats in air-tight containers in the 1870s and gave Hampton its “Crab Town” nickname. Today the tradition is carried on by L.D. Amory Company and Graham & Rollins Inc. Nearby, Wanchese Fish Company, headquartered in Suffolk, is one of the world’s largest harvesters, processors and distributors of Atlantic seafood. Amedeo Obici founded Planters in Suffolk in 1913, helping the city, home to Mr. Peanut, become the peanut capital of the world. Even as

Photo: Getty Images

JANUARY 2021

the company continues churning out products, its legacy includes Obici Healthcare Foundation, a major regional presence today with the mission to improve the health status of residents of Suffolk and the surrounding communities. Joseph Luter in 1936 founded Smithfield Packing, now a part of Smithfield Foods, in Isle of Wight County, cementing the area’s reputation as the Ham Capital of the World. Hubbard Peanut Company, maker of the famous Hubs Virginia Peanuts, until recently had been run out of the family home in Sedley, Virginia, where Dorothy Hubbard pioneered the commercialized process of “home cooked peanuts” using a water blanching and oil roasting process in the 1950s. The company recently purchased a former grocery store building in Franklin that will offer customers a new retail experience and capabilities for shipping the highest quality peanuts all around the world. The company is adding 10 jobs to its staff of 40, and is Virginia’s oldest continuously family owned and operated peanut processor. These founding fathers and mothers of food and beverage (F&B) have made their mark around the world at the same time they’ve established deep roots in the region around seafood, peanuts and pork, among other foods. Hampton Roads is a big

reason why 150 F&B processing companies have chosen to locate or expand in Virginia over the past decade, creating over 7,300 new jobs and making capital investments totaling $2.3 billion. Virginia’s F&B companies employ more than 42,000, account for 17% of total manufacturing employment in the commonwealth and have fostered 15% employment growth over the past five years. Global Connections The range of Hampton Roads F&B operations is deep, wide and global — from local delicacies to Hampton-based FDA compliance firm Registrar. A robust roster of tea and coffee operations from the likes of Unilever (producer of every Lipton tea bag in North America at its Suffolk facility), Massimo Zanetti and J.M Smucker (maker of Folger’s) have given Suffolk the moniker “Caffeine Capital of America.” Massimo Zanetti (MZB-USA) sells 120,000 tons of coffee annually around the world. The company’s 20 brands include Hills Bros., Kauai Coffee and Chock full o’Nuts. Today MZB-USA’s portfolio in Hampton Roads includes a corporate headquarters, a roasting operation in Suffolk and a new East Coast distribution center the company announced in June 2020, to be located in Virginia Port Logistics Park in Suffolk. “This facility will position us for greater efficiency and continued growth, add to the economic vitality of the area, and bring great people to Suffolk — along with some of the best coffee on earth,” said MZB-USA Senior Vice President of Supply Chain Doug Nesmith of the move from a smaller facility in the region. MZB-USA employs around 400 in the region. Helping make the labor equation work is Hampton

Roads’ status as the second largest metro area on the East Coast between the nation’s capital and Atlanta, with a labor force of more than 800,000 and more than 96,000 students from the region’s eight universities and four community colleges. Road and rail help too, with CSX and Norfolk Southern serving the commonwealth along with an improving network of highways. But it’s the Port of Virginia that looms largest, with a deep, ice-free harbor that’s soon going to be even deeper and wider: After securing federal funds in 2018, a project from the Port and the U.S. Army Corps of Engineers will deepen the Chesapeake Bay’s Thimble Shoal Channel from its current 50 feet to 56 manufacturing feet, the inner harbor to 55 feet and the Atlantic Ocean Channel to 59 feet. jobs in More than 1.7 million sq. ft. of cold storage space is either already in place or planned within a 20-mile radius of the Port, which moved half a million TEUs in October and November is in 2020, setting a record. It is the second largest coffee port on the East Coast and, among other accomplishments, is Italy’s No. 1 single largest export destination. Another company from southern Europe is also growing in Suffolk, as 180-year-old Spanish olive oil manufacturer Acesur in early 2020 committed to invest $11 million and employ 29 at its first U.S production operation in Suffolk Industrial Park. The project is receiving support from the Hampton Roads Alliance and incentives from the Virginia Economic Development Partnership, the City of Suffolk and the Port of Virginia. The facility will handle the company’s bulk oil imports from

1 in 8

Hampton Roads

food & beverage processing.

SITE SELECTION

I N V E S T M E N T

JANUARY 2021

P R O F I L E :

HAMPTON ROADS, VIRGINIA Service members transition by the thousands each year into the Hampton Roads workforce. Source: City of Virginia Beach

Hampton Roads Answers the Call

A savvy workforce hits the sweet spot for back-office operations. by GARY DAUGHTERS gar y.daughter s @ siteselec tion .com

s with any enterprise connected to health care, the Hampton, Virginia, location of government contractor Maximus is facing unprecedented challenges. Maximus typically provides customer service support to state Medicare and Medicaid programs. Now, the Maximus staff of some 800 workers, largely dispersed from the Maximus workplace, finds itself engaged in the battle against COVID-19. “With the outbreak of COVID, our business model has expanded,” says Joe Raposa, who runs the Maximus shared services center in Hampton as director of standardized operations and analytics for the Reston-based contractor. “We have been doing work for states in regard to contact tracing, and most recently, we have implemented multiple contracts involving vaccine appointment support. “It’s kind of amazing,” Raposa observes, “the stuff we’re learning as we go along.” Hampton was selected for the Maximus operation in 2016 — ahead of prospective locations in Texas and Pennsylvania — for its robust supply of regional office talent and its advantageous position on the East Coast. By car, Hampton Roads is less than three hours from Washington, D.C., five hours from Philadelphia and less than a full day’s drive to New York City, affording speedy access to those roaring, higher-cost markets. For Maximus, the decision to locate in Hampton has proved to be fortuitous. The Maximus facility at Hampton’s NetCenter — a former shopping mall redeveloped into a business center — has twice expanded since its 2017 opening and now occupies 80,000 sq. ft. (7,430 sq. m.), nearly twice its original size. The Maximus staff of customer service 2

MARCH 2021

representatives, call center supervisors, team leaders, quality assurance specialists and support staff currently amounts to twice original projections. “We blew through the workforce targets really quick,” says Raposa. “Within Maximus, we became known as a location that could rapidly hire and deploy resources to support programs and projects.” Hampton Roads boasts a growing number of shared services operations, where related office functions are consolidated efficiently under a single roof. Geico, Avalon Bay, The New York Times and PRA Group are among organizations with backoffice facilities in Hampton Roads locations. One of the biggest such operations is the $32.25 million customer service center established in 2016 by ADP, the cloud-based human capital management company. The ADP facility in Norfolk employs more than 2,000. Most recently, international shipping giant CMA CGM Group announced plans in February 2021 to expand customer care and finance operations at its North American headquarters in Norfolk. Part of a major commitment that includes investments in other parts of the Virginia Commonwealth, the Hampton Roads expansion is expected to create several hundred new jobs, many supported through the Virginia Talent Accelerator Program, which offers direct delivery of recruitment and training services. “This project is a tremendous victory for Virginia that will add significant momentum to our economic recovery as we emerge from this pandemic,” said Gov. Ralph Northam. “Hampton Roads has a well-deserved reputation as a maritime services hub.”

The Talent is There The Hampton Roads Alliance is the regional economic development organization representing 11 localities in Hampton Roads, the region of southeastern Virginia officially known as the Virginia Beach-Norfolk-Newport News metro area. In 2020, the Alliance partnered with Wadley Donovan Gutshaw Consulting, the New Jerseybased site consulting firm, to identify sectors within the region that might be ripe for white collar job growth. WDGC’s six-month analysis, led by Dennis Donovan, principal and veteran site selector, discerned distinct potential in shared services. “More and more companies are going to a shared services platform,” Donovan tells Site Selection. “It is a growth industry, and tier two and tier three markets will be the targets. Shared services really fits into the sweet spot of Hampton Roads.” Sweet spot? Donovan says the Hampton Roads region’s supply of office-oriented talent is deep and self-sustaining. “Hampton Roads is unique,” he explains. “If you look at the functions that are typically performed in a shared services center — procurement, human resources, real estate, finance, even information technology — in Hampton Roads, you have a lot of these skill sets embedded in organizations that are already there. You have really good labor availability at a moderate cost, and that equation will remain favorable into the future. It’s all about talent, and they have a tremendous talent base.” Helping to keep that workforce refreshed, Hampton Roads is served by a network of 12 colleges and universities and 21 training and technical schools. About 100,000 students are enrolled throughout the region and some 18,000 graduate annually.

As a talent differentiator, Hampton Roads is blessed by the presence of 15 military bases representing every branch of the U.S. Armed Forces. In addition to Naval Station Norfolk, the world’s largest naval base, Hampton Roads is home to U.S. Joint Forces Command, U.S. Fleet Forces Command, U.S. Marine Corps Forces Command, the U.S. Air Force’s Combat Command and NATO’s Allied Command Transformation. Each year, more than 13,000 former military personnel transition into the private workforce, bringing with them specialized skills, experience and discipline. “We’ve had a number of ex-military personnel that have retired and joined us,” says Larry Weinstein, vice president of shared services operations, Avis Budget Group, which is celebrating the 25th anniversary of its shared services location in Virginia Beach. “The military people bring a lot of unique skills, an ability to work with others and an ability to lead. Military spouses also represent a very highly qualified pool of candidates. It’s a market we have definitely tapped.” “The Region Supports Economic Development” Avis Budget’s Virginia Beach facility traditionally handles such functions as vehicle accounting, client services, charge card processing, compliance, and title transfer — all in support of thousands of Avis Budget rental locations across the country. “Our job is to allow our field workers to focus on the customer,” says Weinstein. “The primary purpose of consolidating our shared services has been to allow our frontline workers not to have to worry about back-office activities. It’s being more efficient by centralizing and taking advantage of best practices.” As with Maximus, Avis Budget has had to respond aggressively to changes to the business environment presented by the pandemic, chiefly the precipitous drop in travel. The Virginia Beach team of about 200 workers has stepped in to facilitate sales from the company’s fleet of vehicles to an expanding used car market, a strategy that has

SITE SELECTION

I N V E S T M E N T

MARCH 2021

P R O F I L E :

HAMPTON ROADS, VIRGINIA

Offshore wind farms require substations and hundreds of miles of submarine transmission cable.

Offshore Wind Is About to Blow Up And with Dominion Energy leading the way, Virginia is poised to become the East Coast wind energy hub.

by GARY DAUGHTERS gar y.daughter s @ siteselec tion .com

multi-billion-dollar industry is on the brink of taking off along the U.S. East Coast. As the demand for renewable energy skyrockets, a recent study by London-based BVG Associates, an international renewable energy consultant, estimated that investors could spend up to $140 billion by 2035 on wind power facilities along the Atlantic Outer Continental Shelf. The group concluded that electricity generated by offshore wind, virtually

non-existent in the U.S. at present, could reach a massive 40 gigawatts in a mere 15 years. Fueling expectations that offshore wind power is an idea whose time has come, the new Biden administration has signaled that it clearly is a friend to the industry. In late March, and with unusual fanfare, the White House announced federal backing for a vastly expanded offshore wind capacity that includes $3 billion for loan guarantees and port upgrades. Crucially, the administration

Dominion Energy’s pilot project off Hampton Roads began supplying electricity to consumers in January. 20

MAY 2021

SITE SELECTION

Source: Dominion Energy

also pledged to streamline a permitting process and two off Hampton Roads, Virginia. whose glacial pace had stymied the kind of longThe monstrous size of a 15MW offshore turbine term, 10-figure investments needed to get the — more than 800 ft. tall (250 meters) with blades industry going. that are longer than a football field — delivers The encouragement coming from Washington its own hint as to the enormity of what will be represents “a huge shot in the arm” says Jennifer required to get the industry up and running. Palestrant, who as chief deputy at the Virginia And therein lies opportunity. A 2020 study by Department of Mines, Minerals and Energy is Richmond-based Magnum Economics projected spearheading state and regional efforts to establish that the offshore wind industry could eventually what is certain to be an extensive supply chain for support in excess of 5,000 jobs in Hampton Roads an emerging industry that alone. Home to the world’s is heavy on manufacturing. largest naval base and some Indeed, signs of an of the nation’s biggest imminent boom are so shipbuilding facilities, the numerous and vivid that coastal region’s ports and — Marcus Cross, Director of Business Development, Avangrid Renewables Kitty Hawk Offshore Wind Project associated maritime assets the picture rendered by energy industry officials and align uniquely, officials analysts is that of a row of sprinters having endured believe, for Hampton Roads to serve as an offshore some false starts and now digging in expectantly, wind energy hub. finally, for the sound of the starting gun. It is “If this industry can grow on the East Coast, enough to make some officials positively giddy. we think it can be supported, in large part, from “It is incredibly exciting,” says Marcus Cross, Hampton Roads,” says Doug Smith, president and director of business development for the Kitty CEO of the Hampton Roads Alliance. Last year, Hawk Offshore Wind Project being launched the Alliance used a $529,788 grant from the state to off the coasts of Virginia and North Carolina launch an initiative to leverage the region’s assets by Avangrid Renewables, a projected $2 billion to attract that supply chain. Virginia Gov. Ralph investment expected to generate some 2.5 gigawatts Northam is a staunch supporter of the effort. of electricity and up to 1,000 jobs. “How many “Hampton Roads’ unmatched port infrastructure times in your life do you get a chance to start an and high-quality maritime workforce make the entire industry, pretty much from scratch? We are region an ideal location for offshore wind energy not here to build a project. We’re here to build an development,” says Northam. “Virginia should be industry.” the prime location for the offshore wind industry, from the supply chain to the full buildout of our A Long Way to Go offshore wind assets off the coast.” Things are expected to coalesce quickly. The federal government envisions as many as 2,000 Why Offshore? wind turbines spinning in the Atlantic by 2030. It is easier and initially cheaper to build a wind Today, there are seven. Five are off Rhode Island farm on the plains of West Texas, for example,

We’re here to build an industry.”

SITE SELECTION

MAY 2021

INVESTOR RELATIONS The Alliance’s Annual Meeting was broadcast via Zoom Webinar on January 28. Many of the Alliance’s public and private investors and regional economic development directors attended, in addition to a handful of city managers and elected officials. The meeting, led by Alliance President & CEO Doug Smith, celebrated the region’s impressive progress and resilience in 2020. A presentation on the 757 Recovery & Resilience Action Framework documented the bold new approach of the Alliance and the region’s leading business organizations to provide more economic opportunities for the region’s residents and become better prepared to weather future shocks. During an April 14th Webinar, Alliance Investors heard additional information about the Action Framework including why it is needed, who created it, how it works, and how they can stay up to date on the progress. This Framework includes a vision for the regional economy, measurable goals, five strategic focus areas and 30 related programs, priorities, and a dashboard to track it all. The webinar was moderated by Doug Smith and included the following panelists: Jeff Tanner, Strome College of Business; Latisha James, Urban League of Hampton Roads; Maegan Barnes, Hampton Roads Workforce Council; and Tage Counts, Hampton Roads Chamber. The Alliance hosted an intimate discussion between The Port of Virginia’s new CEO and Executive Director, Stephen Edwards, and one of Hampton Roads’ most veteran media professionals, Cathy Lewis, about Stephen’s new role leading the port on May 12, 2021. Edwards explained how he saw the port evolving over the coming years and how it will support the Commonwealth’s effort to become a supply chain hub for the Offshore Wind industry. He also provided feedback on what the Alliance’s private and public sector investors can do to support the port’s continued growth. After 15 months of virtual events, the Alliance was thrilled to welcome investors to its first in-person gathering of the year! This mostly social event was held on June 30 at IPConfigure. The investors enjoyed an evening of networking, drinks and hors d’oeuvres and local Bassist Jimmy Masters provided the musical entertainment. Alliance President & CEO, Doug Smith, provided a brief update on the Alliance’s activities over the last year and what’s ahead for the 757 for the rest of the year and beyond.

2021 Mid-Year Report, published July 22, 2021 www.HamptonRoadsAlliance.com