1. Central Business District Association Reinvent Hampton Roads Update
April 19, 2018

2. QUESTIONS/DISCUSSION
OUTLINE
HOW IS THE REGION DOING?
WHAT TO DO ABOUT IT?
GO VA REGION 5 RESULTS
QUESTIONS/DISCUSSION 2

3. State and Regional Economic Performance:
QUICK LOOK AT THE DATA 3

4. 4

5. 5

6. 6

7. Comparative Job Growth by Metro Area7

8. Net New Civilian Jobs Gained/Lost
in Selected MSA’s, Virginia, and North Carolina
From 2007* to 2016
185.7
200
152.5
150
108.5
105.1
Thousands
100
76.7
48.7
41.3 50
19.5
-6.5
-50
Source: U.S. Department of Labor CES seasonally unadjusted data and the Old Dominion University Economic Forecasting Project. * Peak employment in Raleigh, Durham, Northern Virginia, and Virginia occurred in Change for these areas is shown for 2008 through Data will be revised in March 2017

9. Total Employment vs. Nonfarm Payroll9

10. CONCLUSION: We Have A Serious Problem QUESTION: What To Do About It?10

11. JOB CREATION MODEL LEADERSHIP
Create More & Higher Paying Jobs,
Which Diversify & Strengthen Regional Economy and Create a High Employment Multiplier
Workforce Development, Attraction & Retention
Existing Sector
Job Growth
Entrepreneurial
Start-Up
Job Growth
Recruitment,
Attraction Job Growth
Non-Export,
Retail & Local Service
Job Growth
Drivers of Existing Economy
Potential Cluster Growth
Scale-Up Small/Mid-Size Company Growth
Start-Ups
Regional Marketing
Sites
Supply Chain Growth
Commercialized Research
Non-Research
Regional Culture and Infrastructure 11

12. Define assumptions and create long list
A location strategy process goes through several phases, including significant screening to pre-select location before regional EDOs get engaged
Step with possible/high EDO visibility and engagement
Step with low/no EDO visibility and engagement
Tactical site selection
Strategic location assessment/selection
De-select less attractive locations:
Many location options
High level, quick analysis
Based on desk research
Focus on key cost & quality drivers
Confidential
High level business case
Select best location solution:
Detailed analysis of many factors
Forward looking
Field work to understand dynamics and identify pitfalls
Assess implementation risks
Interviews and negotiations
Full business case
Few locations only (short list)
Location Strategy process
Define assumptions and create long list
Screen options and identify short list
Analyze short list and select region
Select site
Focus of the analysis 12

13. Competitiveness Analysis Results Shared services Hampton Roads' competitive position: Cost – Quality map and value proposition
Hampton Roads’s value proposition
Hampton Roads is positioned in the top-right quadrant offering a combination of high quality and competitive operating costs. In an international context, Hampton Roads can compete with a well established location like Dublin.
Major competitive strengths
Established shared services cluster
Good pool of experienced skills in finance and HR
Strong student base
Relatively competitive operating cost
Flexible labor market (in international context)
Key weaknesses
High competition for skills
Relatively lower attractiveness for staff
Quality of public transport in urban areas
Lower office space availability
Main competitors
Key competitors are San Antonio, Nashville and Jacksonville. 13

14. 14

15. to Grow and Diversify the Private Sector in Each Virginia Region
A Business-Led Statewide Initiative
to Grow and Diversify the Private Sector
in Each Virginia Region
Good morning. It’s a pleasure to share the stage with Stephen and John to provide an update on significant aspects of economic development in Virginia.
What I’d like to accomplish this morning is to start with a brief overview of the principles behind GO Virginia, and what motivated some of Virginia’s senior business leadership to undertake this effort, provide an update on our progress, and then close with a review of what I see as a rare and wonderful opportunity to dramatically and positively change the trajectory of economic growth in the Commonwealth. 15

16. What is GO Virginia?
A bipartisan, business-led, game-changing initiative …
that will provide a new framework for strengthening the economy in each Virginia region …
through enhanced collaboration by business, education, and local government …
that is incentivized and encouraged by the State.
READ THE POINTS
In sum, what we are focusing on is improving the economy in every region of the state through incentivized collaboration. To achieve this, GO Virginia facilitates bottom up priorities from each region to produce projects where at least two or more localities are collaborating. 16

17. 17

18. GROWTH AND OPPORTUNITY (GO) GRANTS: POTENTIAL PROJECTS
Scale-ups of existing small and medium-sized businesses
Credentialing and Talent Development
Joint Site Development and Economic Development projects
Commercialization of R&D (public and private)
Startup collaborations (incubators/innovation centers/accelerators)
Priority
Clusters 18

19. REGION 5 GRANT PROPOSALS
Virginia’s Digital Shipbuilding Workforce Program
Hampton Roads Cybersecurity Education, Workforce, and Economic Development Alliance Collaboration Laboratory (HRCyber Co-Lab)
757 Seed Fund
Hampton Roads Regional Unmanned Systems Facility
Hampton Roads Regional Broadband Strategy 19

20. $ REGION FIVE Funding Request: Total Project Budget: $647,540
Virginia Digital Shipbuilding Program
Old Dominion University’s Virginia Modeling, Analysis, and Simulation Center (VMASC)
Hampton Roads’ advanced manufacturing industry leads the way through Industry 4.0; to support continues success a training program must be established locally that will generate a consistent pipeline of talent for local manufacturers to hire. This project will create a regional and statewide program to train approximately 8,500 future workers skilled craftsmen, engineers, designers, and IT professionals to work in the new digital manufacturing environment and will support Hampton Roads’ existing advanced manufacturing and shipbuilding clusters. Digital manufacturing theory and skills will be provided to align directly with the high job demand in the advanced manufacturing sector regionally, statewide, and nationally.
100% of region’s population impacted
Strategy:
Talent Development and Credentialing
Private Industry Partners:
Siemens and Newport News Shipbuilding
Other Partners: Virginia Ship Repair Association, Thomas Nelson Community College, Norfolk Naval Shipyard, and Purdue University
Participants:
Hampton City Williamsburg City Isle of Wright County
Project Outcomes:
8,500 Jobs Created in 5 years
$74,000 Average Salary vs. $46,192 Average Per Capita Income for the Region
Return on Investment (ROI): Increase state revenues by $6,640,805 over 5 years
Targeted Clusters:
Advanced Manufacturing
Shipbuilding
Information Technology
Business Services
Newport News City James City County Virginia Beach City
Funding Request:
$647,540 $
Total Project Budget:
$ 6,200,000 20

21. $ REGION FIVE Funding Request: Total Project Budget: $642,713
Hampton Roads Cyber Collaboration Laboratory
(HRCyber Co-Lab)
Old Dominion University’s Virginia Modeling, Analysis, and Simulation Center (VMASC)
The Hampton Roads Cybersecurity Education, Workforce, and Economic Development Alliance (HRCy-ber) is a collaborative partnership among educational institutions, government agencies, nonprofits, and private employers. GO Virginia support will formalize HRCyber with an industry-led governing board and extend its scope from educational pathways to include collaboration, workforce development, jobs creation, and innovation. The HRCyber Co-Lab will be a highly advanced collaboration hub at Old Dominion University’s Tri-Cities campus. HRCyber and the Virginia Modeling, Analysis, and Simulation Center (VMASC) will anchor a Tri-Cities innovation district in modeling and simulation, data analytics, and cybersecurity; and expand this regional center of in- novation to include autonomous and virtual systems.
89% of region’s population impacted
Strategy:
Talent Development and Credentialing
Private Industry Partners:
SimIS
Other Partners: The Virginia Space Grant Consortium, Virginia Community College System, NASA and Virginia Center for Innovative Technology
Project Outcomes:
54 Jobs Created in 5 years
$63,882 Average Salary vs. $46,192 Average Per Capita Income for the Region
Return on Investment (ROI): Increase state revenues by
$9,175,818 over 5 years
Participants:
Targeted Clusters:
Suffolk City
Norfolk City
Chesapeake City
Virginia Beach City
Hampton City
Portsmouth City
Newport News City
Williamsburg City
York County
Cybersecurity
Unmanned Systems
Data Analytics
Funding Request:
$642,713 $
Total Project Budget:
$ 3,844,996 21

22. HIGH GROWTH SCALE-UP COMPANIES
INNOVATION PATHWAY
LABS
CITIES
INCUBATORS
INITIAL
PROGRAMMING
757SEED FUND
HIGH GROWTH SCALE-UP COMPANIES VC
PEq
ACCELERATOR
757 ACCELERATE
ACADEMIA
757
ANGELS 22

23. 23

24. 24

25. GROWTH & OPPORTUNITY
QUESTIONS
DISCUSSION 25