greater washington 2010 Regional Overview Dutch Green Build Mission November 15, 2010 Matt S. Erskine Greater Washington Initiative Greater Washington Board of Trade

2 The Greater Washington region- an overview ›Greater Washington includes Washington, DC, Northern Virginia, and Suburban Maryland, encompassing twenty-six jurisdictions and a population of 6.2 million people ›Unique metropolitan region in the US with two states and federal district ›Three world-class airports ›The Greater Washington Initiative’s definition of the region differs slightly from the traditional government definition of the metropolitan statistical area (MSA), making it more expansive and representative of the true economic interdependence and dynamism of the region

The story of Greater Washington – now and moving forward › Greater Washington has an unrivaled portfolio of assets that has fueled the region’s impressive economic performance over the past two decades and will continue to do so in the years ahead. › Increasingly, the world is recognizing Greater Washington’s leading position in such areas as: Economic growth, stability, and resilience Educational attainment Talent attraction Economic and workforce diversity Global connectivity. 3

The story of Greater Washington – now and moving forward “The nation's capital is emerging from the recession better than any other major metropolitan area in the country.” Forbes “Washington, DC is increasingly drawing in the ‘young and wealthy’.” Nielsen Claritas “The region is chock-full of job prospects, entertainment venues and great neighborhoods, and it is booming.” Kiplinger’s “Washington DC is the only metropolitan area east of the Mississippi River characterized by high levels of growth, diversity, and educational attainment.” Brookings Institute No. 1 – US Metros for Real Estate Investment Association of Foreign Investors in Real Estate No. 2 – Top Metros for Quality of Life and 10 Best Places for Young Adults Portfolio.com No. 2 Major Metro – Best Metros for the Next Decade Kiplinger’s No. 1 – Metros Where The Recession Is Easing Forbes 4

economic strength and stability › Greater Washington is firmly established as the fifth-largest regional economy in the US, with a 2009 Gross Regional Product of $443 billion. › Greater Washington has outperformed virtually every other major metropolitan area in recent years, with an average annual growth rate of 5.3% since

economic strength and stability › Greater Washington boasts the second-highest gross regional product per capita in the US. › At 5.9%, Greater Washington’s unemployment rate remains far below that of all other major metropolitan areas. › Greater Washington had the largest over-the-year percentage increase in employment among large metro regions. 6

economic strength and stability › Since 2000, Greater Washington has added more than 270,000 workers to its payrolls—the second greatest number of any metropolitan area in the country. › During the past decade, Greater Washington has produced more jobs than Dallas, Miami, and Atlanta combined. 7

economic strength and stability › The recent recession has produced a great widening between the performance of Greater Washington’s economic performance and the rest of the country. › While it will take years for other regions to adjust to the new economic reality, Greater Washington is already there. 8

Greater Washington LA Atlanta Chicago New York City Boston Dallas THE GREAT WIDENING JANUARY 07 HIGHEST UNEMPLOYMENT RATE: CHICAGO 5.1% LOWEST UNEMPLOYMENT RATE: DC 3.2% DIFFERENCE: 1.9% DECEMBER 09 HIGHEST UNEMPLOYMENT RATE: LA 11.3% LOWEST UNEMPLOYMENT RATE: DC 6.2% DIFFERENCE: 5.1% Unemployment Rate (2005 – 2009)

knowledge production & attraction › Greater Washington has the most the most highly-educated workforce of any major metropolitan region in the US. › There are more college educated people in Greater Washington than in Austin, Charlotte, San Jose, and Raleigh combined. 9

knowledge production & attraction › Each year, Greater Washington’s world-class colleges and universities produce more than 70,000 college graduates. › Six of the country’s ten most educated counties are located within Greater Washington (including the top five most educated counties in the US). 10

knowledge production & attraction › Greater Washington ranks first in the proportion of its workforce in today’s most promising occupations: Business & Financial Computer and Mathematical Science Life, Physical, & Social Science Legal Occupations. 11

› Business and Professional Services is the largest single employment sector, employing 22.8% of all workers in the region. › Education and Health Services employment has grown by more than 26% since 2001 and is projected to post significant increases in the years ahead. economic diversity 12

economic diversity › Since 2000, Greater Washington’s Business and Professional Services sector has increased by nearly 118,000 workers. › During this same period, no region has added even half the number of jobs gained by Greater Washington in this sector. 13

workforce diversity › Greater Washington is number one among major metropolitan regions for female executives, as well as for median earnings of the female workforce. › Greater Washington attracts the world’s best minds— nearly 42% of the region’s foreign-born workforce possesses a bachelor’s degree or higher. 14

serious about business › The Greater Washington region is home to 18 Fortune 500 company headquarters, which earned a combined $308 billion in › In the most recent Greater Washington Board of Trade survey of Greater Washington’s executives, 75 percent reported that it is easier to do business in Greater Washington than in most other places in the US. 15

innovation & entrepreneurship › Greater Washington has led the country in the number of Inc. 500 companies for the past 13 consecutive years. › In 2010, Greater Washington featured 58 Inc. 500 companies—more than anywhere else in the US. 16

innovation & entrepreneurship › Research and development activity continues to support innovation in the region’s key industries. › In 2008, regional universities and colleges received $3.6 billion in federal research and development expenditures— dwarfing the level of investment of every other region in the country. 17

international business › Greater Washington is home to almost 1,000 foreign-owned firms representing more than 50 countries throughout the world. › More than 1.2 million people in Greater Washington speak at least one other language in addition to English. 18

Boston Chicago Seattle Houston Los Angeles Dallas Philadelphia New York San Francisco / San Jose Atlanta Miami Greater Washington Greater Washington ranks 5 th in the US for the number of foreign-owned firms NYC SF/SJ LA CHI GW ATL HOU BOS DAL MIA PHILLY SEA

For foreign-owned firms in Greater Washington, ADS+I and Engineering play a more a prominent role in GW than the overall US pattern Top 5 Industries ICT MANUFACTURING PROFESSIONAL SERVICES A / D / I + S ENGINEERING Top 5 Countries of Origin ENGLAND FRANCE CANADA JAPAN GERMANY

global connectivity › With combined domestic and international service to more than 40 global cities, Greater Washington is connected to 80 percent of the world’s economy. 19

market access › Sixty percent of the US and Canadian economies – nearly 20 percent of the world’s gross domestic product – is within a two- hour flight from Greater Washington

Dutch firms in Greater Washington › Forty-four (44) Dutch firms operate in the Greater Washington region. › Represent aerospace, finance, professional services, IT, software, manufacturing, logistics, and pharmaceuticals. › Dutch firms operate in at least seven of Greater Washington’s jurisdictions.

federal government foundation › In 2009, federal procurement in Greater Washington totaled approximately $75 billion. › Greater Washington continues to outperform every state in the US in federal procurement. 20

infrastructure investment › On a per capita basis Greater Washington will receive more highway-related stimulus funds than any other major region on the East Coast. › Regional utilities—including Pepco and Constellation—will invest nearly $800 million in Greater Washington smart grid technology infrastructure over the next few years. 21

quality of place & culture › Higher incomes and lower cost of living equals a powerful and attractive combination - Greater Washington’s cost of living ranks well below other US cities such as New York, Los Angeles, San Francisco, and Chicago. › Health care costs in Greater Washington are among the lowest of any major metropolitan region in the US. 22

Annual Health Care Costs Per Employee (05 – 09 Growth Rate in White) Greater Washington 17.5% Atlanta 20.6% Boston 18.3% Chicago 20.3% Dallas 21.1% Los Angeles 16.7% New York City 12.5% Philadelphia 21.2% San Francisco 31.2% 2005 U.S. AVERAGE 2009 U.S. AVERAGE Greater Washington’s Health Care Costs Remain Lower than Most Competitor Regions Source: Hewitt Associates

›While regions throughout the world are quick to proclaim their commitment to Energy Efficiency and Sustainability, few areas compare to Greater Washington. ›Greater Washington’s leadership and comprehensive integration across a portfolio of assets — human capital, research and development, thought leadership, private enterprise, green expenditures, and a culture of sustainability — will drive business success in this industry unlike anywhere else. Energy Efficiency & Sustainability

›Per capita, Greater Washington features the second-greatest number of Leadership in Energy and Environmental Design (LEED) registered and certified projects among the largest US metropolitan areas. ›With the country’s third largest Energy Efficiency and Sustainability venture capital market, Greater Washington provides an ideal environment for ambitious companies looking to change the world.

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