Hampton Roads Housing/Real estate/and Economy

[MissySchmidt]

They are corporations all right, but none of them are really hip. Doesn't feel like the future, feels like the past.

And NS doesn't have a huge presence here.

not sure what you mean by "hip"... there aren't too many big corps that I would define as "hip." NS has their headquarters here and there top money-earners reside here, what else do you want in "huge presence." I'd love to see Google open up Google-east, but not sure that's gonna happen anytime soon.

[ronsmytheiii]

In a reversal of a long-standing ban on most offshore drilling, President Barack Obama is allowing oil drilling off Virginia's shorelines and considering it for a large chunk of the Atlantic seaboard. At the same time, he's rejecting some new drilling sites that had been planned in Alaska. Obama's plan offers few concessions to environmentalists, who have been strident in their opposition to more oil platforms off the nation's shores. Hinted at for months, the plan modifies a ban that for more than 20 years has limited drilling along coastal areas other than the Gulf of Mexico.

Obama was set to announce the new drilling policy Wednesday at Andrews air base in Maryland. White House officials pitched the changes as ways to reduce U.S. reliance on foreign oil and create jobs — both politically popular ideas — but the president's decisions also could help secure support for a climate change bill languishing in Congress.

http://news.yahoo.com/s/ap/20100331/ap_on_bi_ge/us_obama_drilling

[VBIllini13]

nevermind

Edited March 31, 2010 by VBIllini13

[mikeas]

What kind of effect do you guys think oil drilling off of the coast of VA would have on Hampton Roads? Any likely hood that ships would shuttle the stuff here for refining and/or redistribution using our rail systems?

[Glassoul]

What kind of effect do you guys think oil drilling off of the coast of VA would have on Hampton Roads? Any likely hood that ships would shuttle the stuff here for refining and/or redistribution using our rail systems?

In the area that's been opened up for exploration it is estimated that, given current technology, Virginia has 500 million barrels and 2 trillion cubic feet of gas that are economically recoverable. This is a pretty rough estimate based on old geological surveys, as well as some minor exploration that was done in the late 60's, 70's, and early 80's by Exxon and Shell. However, to put those numbers in a bit of perspective, the GOM has approximately ~45 billion barrels and 250tcf, and the Alaskan Arctic waters have ~30 billion barrels and 150tcf. So it's a pretty modest amount by those standards. The real goal of today's signing, and Virginia is certainly a beneficiary, but the real goal was to get the Florida GOM opened up. That "little" triangle has a very high probability for pay and is already located near major infrastructure. In the future, I guarantee they'll push to have that 125 mile limit pushed closer inland, to say 50 miles.

The biggest benefit to Virginia will come in the form of revenue from royalties and taxes, with Virginia having committed most of those dollars to transportation. There will be some jobs for the guys on the rigs, as well as support services, but you're talking a couple thousand at most. How that gets divided up regionally, I don't know. The only refinery in Virginia is in Yorktown and it has something like a 135,000 bpd capacity, if I remember correctly. It would benefit from closer proximity to its feedstock, provided the quality of the crude is similar to what they're already setup to upgrade. However, I wouldn't expect an expansion to occur or any new refineries to be built. Most of the North American large integrated oil companies are either shuttering production or are selling off their refining operations and getting out of that business.

Crude is almost never transported by train, much cheaper to use a pipeline or ship.

[calwinston]

A lot of people say Hampton Roads has no corporate presence. Well we were very close to having 4 Fortune 500 companies last year.

source:http://www.mutualfundsmag.us/magazines/fortune/fortune500/2009/states/VA.html

Smithfield Foods #183

Norfolk Southern #256

Dollar Tree #499

Amerigroup #509

Dollar Tree should be a solid Fortune 500 next year, they are reporting record sales. Not sure about Amerigroup.

Fortune Magazine came out with the new Fortune 500 2010 list today and 4 companies in Hampton Roads made it on the list. Looks like Virginia Beach finally has a Fortune 500 company.

Smithfield Foods #163 Smithfield

Norfolk Southern #287 Norfolk

Dollar Tree #397 Chesapeake

Amerigroup #404 Virginia Beach

Edited April 15, 2010 by calwinston

[VBIllini13]

Fortune Magazine came out with the new Fortune 500 2010 list today and 4 companies in Hampton Roads made it on the list. Looks like Virginia Beach finally has a Fortune 500 company.

Amerigroup #404 Virginia Beach

booooooooo. may the company fail and nobody care.

[varider]

Fortune Magazine came out with the new Fortune 500 2010 list today and 4 companies in Hampton Roads made it on the list. Looks like Virginia Beach finally has a Fortune 500 company.

Smithfield Foods #163 Smithfield

Norfolk Southern #287 Norfolk

Dollar Tree #397 Chesapeake

Amerigroup #404 Virginia Beach

That's great. Now that Amerigroup has made the cut.. what's the next HR company to root for?

[Telmnstr]

booooooooo. may the company fail and nobody care.

Not an AmeriGroup fan? I don't know much about them. Know someone that worked there but left.

I'm not even sure what they do. Thought it had something to do with social security. Does their money come from the gov't?

[urbanvb]

amerigroup offers healthcare.

[VBIllini13]

Not an AmeriGroup fan? I don't know much about them. Know someone that worked there but left.

I'm not even sure what they do. Thought it had something to do with social security. Does their money come from the gov't?

Amerigroup is a Medicaid firm. Nothing wrong with the company's mission, but apparently their past leadership wasn't too great...

[Telmnstr]

Amerigroup is a Medicaid firm. Nothing wrong with the company's mission, but apparently their past leadership wasn't too great...

So like, the Fortune 400 they make is from the gov't, aka taxpayer? They don't actually make anything, just a middleman for tax dollars going to medical something or other?

[VBIllini13]

So like, the Fortune 400 they make is from the gov't, aka taxpayer? They don't actually make anything, just a middleman for tax dollars going to medical something or other?

Not quite, in a way Medicaid and Medicare firms compete with the actual government-run program. People were worried earlier during the healthcare debate that private insurance companies would be competing with a public option, which would make for unfair competition, but what many people don't realize is that Medicaid and Medicare firms already compete with a public option. I think it's mostly just an alternative to the actual Medicaid program.

[Telmnstr]

Not quite, in a way Medicaid and Medicare firms compete with the actual government-run program. People were worried earlier during the healthcare debate that private insurance companies would be competing with a public option, which would make for unfair competition, but what many people don't realize is that Medicaid and Medicare firms already compete with a public option. I think it's mostly just an alternative to the actual Medicaid program.

Ah so people buy their insurance from Amerigroup with their own money? Or employer provided or something?

[calwinston]

Hampton Roads median income has grown 14% from 2007-2010!

Best and Worst U.S. Cities for Salary Growth

For people with college degrees, location makes a big difference.

by Carol Tice, PayScale.com

The recession has been kinder to many college graduates, as new data from online salary database PayScale.com shows. For people with degrees, some cities have shown median wage growth of up to 15 percent since 2007. Across the nation, wages for college grads rose an average of 3 percent in the past three years, PayScale found.

The national unemployment rate for college grads has also stayed much lower than the national average--at just 4.7 percent in May (compared with 9.7 for the country as a whole), the U.S. Bureau of Labor Statistics reports, while the rate for people with only a high school diploma was 15 percent.

Where is salary growth the hottest for college grads? PayScale's analysis of the 100 largest market areas in the country revealed the best and worst cities for salary growth for people with a degree. The list includes the current median annual salary for college graduates in each area, as well as the salary growth percentage for those people over the past three years.

Best markets for salary growth

1. Honolulu, Hawaii ($55,800, +15%)

Hawaii's median wage (for college graduates) back in 2007 was lower than the national average of $55,000, so employers here may be playing catch-up, notes Al Lee, director of quantitative analysis at PayScale. The city also hosts major military facilities and is home to two universities, which together employ more than 23,000. "Universities provide stable pay and employment," says Lee.

2. Allentown-Bethlehem-Easton, Pa.-N.J. ($58,700, +15%)

If you've still got that old Billy Joel song in your head about rust-belt hard times in Allentown, forget it. These days, Lee says, this region is a bustling center for health care services, one of the few industries that have kept growing right through the downturn.

3. El Paso, Texas ($49,000, +14%)

Two words: border patrol. "National defense is huge here," says Lee, "and health care is strong." The area's lower-than-average wage may have been ripe for an upward swing, too.

4. San Francisco-Oakland-Fremont, Calif. ($73,800, +14%)

The Bay Area was a high-paying market to start with, notes Lee McPheters, director of the Economic Outlook Center at Arizona State University. Hiring highly skilled workers away from local competitors, as well as from across the country, requires a salary bump. The region is strong in health care, too, an industry where unemployment rates are low--3.2 percent for hospital workers--and labor shortages tend to drive up wages.

5. Virginia Beach-Norfolk-Newport News, Va.-N.C. ($51,900, +14%)

As in El Paso, military bases are a major employer here, with well-paid jobs for officers, pilots, nuclear engineers, and intelligence analysts.

Worst markets for salary growth

1. Harrisburg-Carlisle, Pa. ($49,900, -4%)

Budget cuts in the state capitol of Harrisburg led to 800 layoffs last year, and more are planned. Add dwindling manufacturing output and more layoffs, and wages start to shrink.

2. Portland-Vancouver-Beaverton, Ore.-Wash. ($57,100, -1%)

Slower computer sales are the likely culprit here, depressing wages for tech professionals. Big area employers such as Intel scaled back last year and are just starting to recover.

3. Springfield, Mass. ($49,700, -1%)

Here, Lee says, there's simply no strong driver to bring wage growth. Social workers were the top-paid professionals, PayScale's research shows.

4. Youngstown-Warren-Boardman, Ohio-Pa. ($44,200, -1%)

This region relies heavily on auto-industry related businesses, such as automotive-parts makers. "There's still a ripple effect out there from the auto industry," says Lee.

5. Detroit-Warren-Livonia, Mich. ($59,500, -1%)

You probably know the story here--slowed automotive sales have led to layoffs of college-educated workers such as engineers.

Business writer Carol Tice is a regular contributor to Entrepreneur, The Seattle Times and other major publications.

Source: All salary data is from PayScale.com. The salaries listed are median, annual salaries for full-time workers with five to eight years of experience and include any bonuses, commissions, or profit sharing. Growth rankings track three-year median pay trends from 2007 to 2010.

http://hotjobs.yahoo...ary_growth-1332

Edited July 6, 2010 by calwinston

[calwinston]

"Hampton Roads ranks No. 42 in Brookings report on exports"

Hampton Roads ranks midway among U.S. regions in terms of export activity, said a Brookings Institution report released today.The area generates $6.7 billion worth of exports annually, coming in at No. 42 among 100 regions, said the Brookings report, titled “Export Nation: How U.S. Metros Lead National Export Growth and Boost Competitiveness.”

Spurring exports from Hampton Roads and other metro areas will pay off in stronger economic growth and better-paying jobs, a Washington D.C., research organization

http://hamptonroads.com/2010/07/hampton-roads-ranks-no-42-brookings-report-exports?cid=srch

You think by having one the largest ports in the country, Hampton Roads would be a large export area to the world! Looks like is just a pass through port with products coming and going without stopping.

http://www.brookings.edu/~/media/Files/rc/reports/2010/0726_exports/0726_exports_profiles/VirginiaBeachVA.pdf

[calwinston]

"Peninsula Rebounds"

A profile on how the peninsula area of Hampton Roads is seeing a rebound with the new Town Center opening and a influx of companies moving to the area or expanding! Also the Atlantic 10 Conference Headquarters relocated to Newport News from Philadelphia!

The activity is a welcome thaw from what had been a down market. “The Peninsula up until January or February this year was in an almost two-year freeze,” acknowledges William Hudgins, president and CEO of Harvey Lindsay Development Services Group in Newport News.

Now, though, business is picking up in the area’s major office parks. And a slew of corporate investments are expected to generate new jobs, a positive harbinger for retail and commercial growth.

According to second-quarter figures from CoStar Group Inc., a Bethesda, Md.-based real estate research firm, the Peninsula’s office market of more than 13 million square feet had an overall vacancy rate of 12.3 percent at the end of the quarter, slightly lower than the 12.8 percent for all of Hampton Roads. Year-to-date net absorption during the second quarter (square feet leased less the amount of vacated space) was negative 46,603 square feet. About 76,332 square feet of new space remained under construction.

On the retail side, CoStar reported a lower vacancy rate. For the second quarter, the Peninsula had a 6.8 percent rate, compared with 7.1 percent for the Southside of Hampton Roads.

Real estate executives are encouraged by new leases in two of the area’s prime office areas. Oyster Point, Newport News’ 850-acre office park, is home to more than 1,400 businesses and 17,400 workers. “We’ve seen good activity there in the last couple of months,” says Hudgins.

One of the largest lease signings, according to CoStar, was a 10,500-square-foot deal for the Federal Emergency Management Agency, a government agency.

A mile away, City Center — a 52-acre, mixed-use development in the center of Oyster Point — also is rebounding from the recession. “Large parts of City Center projects had been put on hold for the last year, but they’re being put back together,” notes Hudgins.

City Center’s newest office building, Town Center One, opened last year and is 50 percent occupied. One of the major tenants is the 14-university Atlantic 10 Conference, which moved its headquarters from Philadelphia to Newport News last fall. “We offered them a package of things they really wanted,” says Chris Morello, administrator of development projects for the Newport News Department of Development. “They fell in love with the locale.”

Hudgins says other major tenants are close to signing leases. A major international defense contractor is expected to open marketing offices in Town Center One, while another company will likely lease 7,000 square feet on the office’s first floor. “Office demand is the strongest component of City Center,” says Hudgins. As such, he anticipates construction will start on one or two new office buildings in the next year.

Also more good news!

Much of the Peninsula’s fiscal viability rises and falls with the fortunes of Hampton Roads’ largest private employer, Northrop Grumman Shipbuilding. Thanks to a $14 billion contract to build eight nuclear-powered submarines between 2011 and 2019, the company plans to add 2,000 employees over the next few years. Northrop Grumman also is investing $25 million to expand its apprentice school between 2012 and 2016. Plus, it has joined forces with Areva NP in a $363.5 million investment to build heavy components for nuclear power plants. Whether all these projects pan out, however, remains to be seen since the company announced in July that it has hired advisers to explore options for its shipbuilding business, including a possible sale or spinoff of the shipyard in Newport News.

Areva is building a 368,000-square-foot plant and office building in Northrop Grumman’s North Yard that’s expected to bring at least 540 new jobs to the area by 2013. “Areva will diversify downtown Newport News,” predicts Hudgins, who says the company was attracted to the area because of rail and water access. “Downtown Newport News is no longer a commercial center. It’s a job center.”

Jobs are also coming to Newport News through the expansion of Canon Virginia. It opened a new 700,000-square-foot facility at Oyster Point in May 2009. All told, Canon’s projects in Newport News and in Gloucester will add more than 1,000 employees to the Peninsula work force.

Also expanding is Liebherr Mining Equipment Co. A Newport News fixture since 1970, the German firm employs more than 450 people and will invest $15 million over three years to double production and add 80 employees. Plus, an upgrade at the Thomas Jefferson National Accelerator Facility is expected to result in about 100 new jobs. “We continue to see expansions despite what the rest of the economy is doing,” says Morello.

That bodes well for the area and provides an incentive for developers such as Steiner. “Town Center by its openness becomes the glue that holds the area together,” he says. Although Town Center’s revenue has exceeded expectations, Steiner cautions that the true test will be over the long term as the remaining 30 to 40 percent of the complex is completed. “We certainly believe it will be the hub of the city of Hampton’s economic and civic activity.”

http://www.virginiabusiness.com/index.php/news/article/peninsula-rebounds

[calwinston]

"Lumber Liquidators income rises"

Hardwood flooring retailer Lumber Liquidators says strong consumer demand drove an increase in sales, helping its net income climb about 32 percent in the second quarter. The Toano company said today it earned $9.1 million, or 32 cents per share, for the three months ending June 30. That's up from $6.9 million, or 25 cents per share, a year ago.

Lumber Liquidators says net sales increased about 18 percent in the quarter to $168.7 million. Sales at stores open at least a year grew 5.5 percent.

http://www2.timesdispatch.com/business/2010/aug/04/lumgat03-ar-412206/

http://www.lumberliquidators.com/

[jeffconn]

Incomes fall in most metro areas

Personal incomes fell across the U.S. last year except in areas with a high concentration of federal government and military jobs, the Commerce Department said Monday. They declined most in places with a lot of housing and finance jobs.

Among the 52 metro areas with populations of more than one million, in only three did both net earnings and the broader measure of personal income both rise.

All three had strong ties to the federal government: the Washington, D.C., area and two areas with a large military presence, San Antonio and Virginia Beach, Va. In all three, the biggest gains were among workers in the federal government and the military; private sector compensation fell.

http://online.wsj.com/article/SB10001424052748703428604575419683851811758.html?mod=googlenews_wsj#articleTabs%3Darticle

[Telmnstr]

JFCOM closing isn't going to be pretty.

[urbanvb]

Well, this article doesn't give me too much hope:

Hampton Roads faces a "mediocre" economic outlook over the next decade, weakened by a decline in defense spending and the aftermath of the recession, Old Dominion University's annual State of the Region report says.

What is also bad is the article states that now 45% of defense spending is due to military up from 28% 20 years ago. We have been preaching diversification of our economy yet the military seems to be bigger than ever.

ODU economist predicts dour decade for Hampton Roads

Edited October 8, 2010 by urbanvb

[MissySchmidt]

Well, this article doesn't give me too much hope: What is also bad is the article states that now 45% of defense spending is due to military up from 28% 20 years ago. We have been preaching diversification of our economy yet the military seems to be bigger than ever.

ODU economist predicts dour decade for Hampton Roads

The Regional Vision for Technology-Driven Prosperity in Hampton Roads

By Joseph F. Bouchard, Ph.D.

Dr. Jim Koch, President Emeritus of Old Dominion University, delivered a much needed, yet unpleasant, dose of hard reality in his annual State of the Region address this week. As was well reported in the newspapers [The Virginian-Pilot, October 7, “ODU economist predicts dour decade for Hampton Roads”] [Daily Press, October 6, “Hampton Roads economy: Recovery is slow, and the signs are worrisome”], his economic forecast for the region is mediocre, at best.

Defense spending and employment are likely to decline – a serious blow given that defense spending makes up 45% of our regional economy. Recovery in commercial and residential real estate sales and prices are likely to be modest and painfully slow. And the port faces stiff competition from other East Coast ports and declining ability to move cargo efficiently due to the state’s inability to provide adequate funding for transportation.

Does all this mean we are condemned to mediocre economic growth? Absolutely not.

Do we have a way to overcome these challenges and ensure a prosperous future for our region? We do.

Hampton Roads already has the blueprint for economic success published in Vision Hampton Roads, the region’s comprehensive economic development strategy. Led by the Hampton Roads Partnership and the Planning District Commission, it is the first region-wide roadmap of strategies and actions – to position the region as a leader in the global economy. The Vision experience is about engaging citizens and embracing ongoing region-wide economic development practices with a 21^st century perspective, that is, to think globally, strategize regionally and act locally.

While underscoring the importance of the existing three pillars of our regional economy – the military, the port and tourism – this bold strategy emphasizes the critical importance of diversifying our economy through technology-based economic development. Additionally, the strategy calls for constantly scanning the horizon for future opportunities to complement the region’s existing technology clusters of Bio-Science, Energy, Modeling & Simulation, Robotics and Sensors.

The Innovation sub-committee which helped develop Vision Hampton Roads has been established by the Partnership as a permanent Innovation Task Force to implement the plan’s objective of regional economic growth through promoting technological innovation and entrepreneurship. Hampton Roads has a quarter of a million K-12 students, and Vision is an opportunity to start them on the best path for a future rife with technology and innovation.

The Task Force has two immediate missions. First, to transform the decade old Hampton Roads Research Partnership into Innovate!HamptonRoads to unify the efforts of our region’s research institutions, economic and work force development agencies, technology clusters, technology incubators, and the technology council, Technology Hampton Roads (http://HRTC.org). Working together as a cohesive team, these organizations will provide the programs, expertise and resources needed to nurture innovation and entrepreneurship across our region.

The Task Force’s second mission is to establish IdeaWorksHamptonRoads to strengthen and support the region’s technology incubators – vital breeding grounds for entrepreneurs. IdeaWorks will support the incubators by providing critical support for individuals trying to bring new technology to market: protecting their intellectual property, commercializing their technology, establishing an effective management team, creating a sound business plan, identifying customers, and, most difficult of all, attracting investors.

As Dr. Koch pointed out, our region faces daunting challenges. And through a concerted, sustained effort with broad regional support focused on creating a culture of innovation and entrepreneurship in Hampton Roads, we will succeed and flourish. The future of our regional economy depends on the success of Vision Hampton Roads.

Innovate!HamptonRoads and IdeaWorksHamptonRoads are the teams that will make that vision a reality. The volunteers who make up these teams believe that contributing their time, efforts and expertise will transform Hampton Roads as the go-to place for people with great ideas.

Dr. Bouchard is the Chair of the Vision Hampton Roads Innovation Task Force. http://VisionHamptonRoads.com

[rusthebuss]

I'm out looking for a job and most of the tech jobs are in DC. I don't forsee any of the leaders of this region changing any of this. I fear that I will have to move away from here. When is the region leaders going to get it through their heads that we must diversify our regions economy? We must get more technical, R&D, engineering jobs. I feel that we are our worst enemy.

[MissySchmidt]

I'm out looking for a job and most of the tech jobs are in DC. I don't forsee any of the leaders of this region changing any of this. I fear that I will have to move away from here. When is the region leaders going to get it through their heads that we must diversify our regions economy? We must get more technical, R&D, engineering jobs. I feel that we are our worst enemy.

did you read my previous post? visit http://bit.ly/Vision-Innovation and see where you might be able to fit in... if we're our own worst enemy, then we can become our own best friend.

[rusthebuss]

I've been here all of my life and seen promises of change but it always stays the same. I hope you are right but I don't think we will see this region to change. Light rail is not going to fix our traffic problems. There are too many other places to put your business at and not worry about major traffic. State is not on our side. I hope your plan does work.

Edited October 9, 2010 by rusthebuss