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Virginia Beach Economic Indicators: Science & Engineering

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Welcome to Virginia Beach

With its beaches, great public school system, and recreational activities, Virginia Beach is one of the best places to live in America. And with its skilled, educated workforce, strategic location, low tax rates, and dynamic, diverse economy, it’s increasingly becoming one of the best places to do business as well.

The Virginia Beach Department of Economic Development is eager to assist your new or existing business maximize its economic potential in any way we can.

The programs and services we offer include, but are not limited to:

• Site selection• Advocacy• Market information• Financial guidance• Business assistance• Minority business assistance

TARGET: Science & Engineering –Research/Management/ Technical Consulting

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Strategic Location

Virginia Beach MSA• Largest Metropolitan Statistical Area (MSA)

between Atlanta and Washington, D.C.• More than two-thirds of the U.S. population and

business marketplace are within 750 miles of the Virginia Beach MSA

• Population: 1.65 million• Total Labor Force: 900,000City of Virginia Beach• The Commonwealth’s most populous city• Population: 440,000

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007

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Virginia Beach MSA – America’s First Region

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5.4%, or 10,620 people, of Virginia Beach’s employed citizens work in the technical, science, and engineering sectors.

Virginia Beach Civilian Employment by Sector

Chart excludes 19,900 active duty military membersSource: City of Virginia Beach 2007 Economic Development Strategy Update, January 2008

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Labor Pool

• 45,000 engineers, scientists and technicians in Virginia Beach MSA (Computers and Math, architecture and engineering; life and physical sciences)

• 82,000 college students at 11 colleges & universities (8,500 graduate annually)• 40% of residents hold college degree or higher

Total Labor Force near 900,000 including 16,000 personnel exiting the Navy each year, and over 40,000 military spouses continuously replenishing the labor force.

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007 and 2006 Newspapers First - The Norfolk Market .

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Labor Cost & Taxes

Virginia is an “Employment At Will” State, also known as a Right-to-Work State.

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State and Local Tax

Source: Virginia Beach Community Profile, Virginia Beach Economic Development, 2007

Together, the Commonwealth of Virginia and the City of Virginia Beach have one of the fairest tax structures in the nation. Virginia has not raised its corporate income tax rate of 6% since 1972.

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115 Virginia Beach companies have direct port-related activities.

Sea: The Port

Port Facts• The Port of Virginia is 18 miles from the Atlantic Ocean, with an

unobstructed, ice-free harbor and 50-foot-deep channels• Served by 48 steamship lines, with sailings to over 380 ports in 115

countries• The Port of Virginia handled 2.13 million Twenty-Foot Equivalent Units

(TEUs) in 2007• MSA is home to one of the country’s largest geographic Foreign Trade

Zones (FTZs), with 18 sites and 4 subzones• Lowest pilferage rate of any U.S. port

In the NewsAPM Terminals Virginia

• Phase I of its $450 million, 575-acre facility is currently operational • The USA’s largest private investment container terminal

Virginia International Terminals (VIT)• Signed 97% of customers to a 10 year contract worth $500 Million

Sources: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007, Maritime, Logistics, Warehousing and Distribution in Virginia’s Hampton Roads 4th Quarter 2007, www.hreda.com

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Intermodal: Rail & Trucking

• Fortune 500 holding company with corporate headquarters in the Virginia Beach MSA

• Operates 21,600 miles of track in 22 states in the Southeast and Midwestern U.S., as well as the Canadian province of Ontario

• Fortune 500 international transportation company with major presence in Virginia

• Network of 21,000 route miles in 23 states, the District of Columbia, and two Canadian provinces

National rail carriers handle cargo throughout the East Coast and Midwest.

Sources: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007, Maritime, Logistics, Warehousing and Distribution in Virginia’s Hampton Roads 4th Quarter 2007, www.hreda.com

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Air: Passenger/Cargo

Norfolk International Airport (ORF)• Serviced by seven airlines: Northwest, Continental, Delta,

Southwest, American, United Express, and U.S. Airways • Up to 90,000 passengers travel from Norfolk each week• Daily non-stop flights to Dulles International, gateway to the

international market

Newport News/ Williamsburg International Airport (PHF)• Serviced by three airlines: AirTran, Delta and US Airways• Up to 14,600 passengers travel from Newport News each week• Non-stop flights to seven cities including Atlanta, Boston, New York,

and Philadelphia

The Virginia Beach MSA’s primary airport offers 200 flights per day, including direct non-stops to 25 airports, 17 of which are major hubs.

Total 2007 Air Cargo: 64 million pounds Cargo Services:

Sources: www.takeorf.com and www.nnwairport.com

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Regional Overview-Science/Engineering Industry

The Virginia Beach MSA is home to many science- and technology-based businesses.

Below is a sampling of the key companies in this sector:

Aerotech Research (USA), IncAlion Science & TechnologyAllied Technology: Information & Technology SupportAnteon: Engineering & TechnologyThe Boeing CompanyBoeing Integration CenterComputer Science CorporationGeneral DynamicsLockheed Martin: Engineering TechnologyLockheed Martin Global Vision Integration CenterNorthrop Grumman: Engineering TechnologyProsoft: Technical Computer ServicesRaytheon Technical ServicesUnisys: Software Development & Support

Virginia Beach companies in red.

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Technological Assets

• The Virginia Beach MSA is home to the country’s center for military training utilizing computer simulation technology (major military training facilities: JTASC, JWFC, Joint Forces Staff College)

• The world’s third largest marine science institute dedicated to estuarine research is at the Virginia Institute of Marine Science at the College of William and Mary

• The largest university wind tunnel in the country is operated by Old Dominion University• The world’s largest Continuous Electron Beam Accelerator resides at the Thomas Jefferson National

Accelerator Facility, Newport News, VA• The nation’s first Doctorate degree in “Modeling & Simulation” was awarded by Old Dominion University• The nation’s first in vitro fertilization and birth took place at the Jones Institute, Eastern Virginia Medical

School• NASA’s Wallops Flight Facility on Virginia’s Eastern Shore was selected to demonstrate the new Orbital’s

Taurus II launch rocket in 2010

The Virginia Beach MSA employs over 60,500 people in the high technology sector – a number which grows by 5.2% each year.

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007

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Education – Virginia Beach City Public Schools

• Virginia Beach City Public School graduation rate is 82.7%• Average SOL* Part 1 passage rate: 89.8%; average SOL Part 2 passage rate: 87.1%• 84.9% of Virginia Beach high school graduates have continuing education plans

Source: Virginia Beach Community Profile, Virginia Beach Economic Development, 2007, www.vbschools.com, stats for 2006/2007 school year

*Virginia Standards of Learning examination, part of the national No Child Left Behind initiative

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The Virginia Beach City Public Schools’ Workplace Readiness Skills Program giveshigh school students the training they need to succeed in the workplace

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Education - The Advanced Technology Center (ATC)

The Advanced Technology Center (ATC) provides high school and college students with Students who complete programs at the ATC are poised to enter the job market well-prepared with the industry certifications and entry-level skills demanded in their field of choice. They also have the option of continuing their education at the community college or university level. The center offers four strands of curriculum: Information Technology, Telecommunications, High Performance Manufacturing/Engineering and Marketing Education.

The ATC also houses Tidewater Community College programs. These programs allow students to earn Associates in Science (AS) or Associates in Applied Science (AAS) degrees, with a choice of focus on information technology, computer science, engineering and technology, and industrial, electronic, mechanical, civil, and engineering technology, as well as computer-aided drafting and design.

The ATC provides high school and college students with technology-driven education and industry-certified training.

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Education - Regional

Over 92,000 students are enrolled in the area’s colleges and universities.

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007, http://www.city-data.com/us-cities/The-South/Virginia-Beach-Education-and-Research.html

Over 12,000 college students graduate in the Virginia Beach MSA every year.

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Military Presence

Military Commands

DoD: United States Joint Forces Command – NorfolkNATO: Allied Command Transformation - NorfolkNavy: U.S. Fleet Forces Command - NorfolkNavy: Naval Network Warfare Command - Virginia BeachNavy: Navy Expeditionary Combat Command- Virginia BeachNavy: Navy Exchange Headquarters - Virginia BeachAir Force: Air Combat Command - HamptonMarine: Marine Forces Atlantic – NorfolkUSCG: Maintenance and Logistics Command Atlantic – NorfolkUSCG: Atlantic Area Command – PortsmouthUSCG: Integrated Support Command – PortsmouthArmy: Surface Deployment and Distribution Command – Newport NewsArmy: Training and Doctrine Command - Hampton

The Virginia Beach MSA has the largest number of military decision makers outside of the Pentagon.

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007

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Germany

Israel

United Kingdom

Japan

Switzerland

Sweden

Iceland

Hong Kong

Italy

Canada

Denmark

India

More than 20 international companies from 12 different countries have offices in Virginia Beach.

Virginia Beach: International Business

Source: Virginia Beach Department of Economic Development

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Major Private Sector Employers in the MSA

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007

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Real Estate

Sources: NAI Global Commercial Real Estate Services, and RS Means

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Virginia Beach Business Corridors

Virginia Beach Corridors• Corporate Landing Business Park• Central Business District/Town Center• Oceana West Corporate Park/Lynnhaven Corridor• Airport Industrial Park• Hilltop Commerce Center• Oceanfront/Resort Area

Virginia Beach has six major business corridors containing nearly 33 million square feet of total enclosed space.

Source: VBDED 2007/2008 Community Profile

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Unparalled Quality of Life

Virginia Beach is one of the largest resort cities in the world, with 38 miles of shoreline and 59 square miles of inland. It offers a temperate four-season climate.

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Incentives

Virginia offers a variety of performance-based incentives designed to meet the needs of the company as well as the development plans of localities and the state.

Virginia Beach Economic Development offers the following incentive programs to qualified businesses:

• Economic Development Investment Program Funds

• Industrial Revenue Bonds• Fast-Track Construction Program• Public-Private Partnerships

Source: Virginia’s Hampton Roads Regional Overview 4th Quarter 2007.

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Site Selection Criteria

Important site selection considerations: Virginia Beach

• Proximity and easy access to markets, suppliers & customers

• Labor availability and competitive wage levels

• Low cost of doing business and living

• Real estate suitability (cost, timing, quality & availability)

• Strong global and regional economics

• High quality of life

• Business incentives