inroads 2nd qtr 2009
DESCRIPTION
A quarterly publication of the Hampton Roads Economic Development AllianceTRANSCRIPT
inroads
a quarterly publication of the hampton roads economic development alliance
2009 QTR 2
CHAIR Mike Barrett Runnymede Corp.
VICE CHAIR Robert BrownRobert Brown and Associates
TREASURER Bob BoydBB&T
SECRETARY Rick Bagley Wachovia Securities
President & CEO Darryl Gosnell
Senior Vice President Amy Parkhurst
Vice President Thomas Clemens
Vice President Steve Cook
Operations Debbie Ogan& Technology Director
Investor Sarah CavanaughDevelopment Director
Research David Gray& Information Services
Business Recruitment Chris Gullickson
Marketing Lisa LitwillerCommunications
Marketing Ashleigh Stein& Special Events Coordinator
Executive Kate RodenhouseAssistant International Consultants
Germany Ingo Bentz
United Kingdom Charles Macdowell
China Catherine Magill
staff
officers
500 Main Street | Suite 1300
Norfolk, VA 23510
T +1 757 627 2315
11820 Fountain Way | Suite 301
Newport News, VA 23606
T +1 757 627 2315
4 East Bank House | Tide Mill Way
Woodbridge, Suffolk IP12 1BY UK
T +44 1394 610022
World Trade Center | Birkenstrasse 15
28195 Bremen, Germany
T +49 421 174660
Darryl Gosnell, President & CEO
FROM THE PRESIDENT’S DESK
The Alliance is halfway through 2009 and making good on both our
short- and long-term goals.
The economy may not have shown the gains we’d hoped for at this
point, but there are indications that it is stabilizing – and, in some sectors,
showing the beginnings of recovery. That being said, our business recruit-
ment team has had no reason to slow its activities; in fact, summer is gear-
ing up to be our busiest and, hopefully, most productive quarter of the year.
We were pleased to announce in April two companies chose Hampton
Roads for their locations. ipConfigure, a developer of video surveillance
software, selected Innovation Research Park in Nor-
folk for its newest location. The Art Institutes, an edu-
cational company offering degree programs in culinary
arts and design, opted to make Virginia Beach’s Town
Center its new home. Both announcements translate
into a total of 57 new jobs, and a $8.65 million invest-
ment for Hampton Roads.
The 2nd quarter of ’09 saw our project managers
hit the road for several trade shows, seminars, confer-
ences, and various marketing missions. In April we conducted an aggres-
sive mission to China that included a high profile seminar; we also attended
the CoreNet Global Annual Conference in Dallas and Hannover Messe in
Germany. May saw the Alliance travel to New England and Japan on mar-
keting missions (the latter including two state-sponsored seminars); partici-
pate in ITEC 2009 Conference & Exhibition; and attend the IAMC Profes-
sional Forum. As a result of these marketing activities, the Alliance gained
56 new business contacts and accomplished 117 corporate and consultant
appointments in the second quarter.
The Alliance is working hard to ensure that despite the recession, eco-
nomic gains can and will be a reality for Hampton Roads. Thanks to your
belief in our mission, Hampton Roads is not just surviving these tough eco-
nomic times – it’s holding its own and even making measurable progress.
We appreciate your ongoing support and offer our best wishes to you all for
continued prosperity in our region.
inroads is a quarterly publication of the Hampton Roads Economic Development Alliance. Forward comments and suggestions to [email protected].
road w
ork
Canada Marketing Mission (4/09)
Hannover Messe Trade Fair, Germany (4/09)
China Marketing Mission (4/09)VEDP New England
Marketing Mission (5/09)
Southern California Marketing Mission (6/09)
Japan Marketing Mission (5/09)
Seminars and Special Event, Germany (6/09)
ITEC, Belgium (5/09)
Chicago Marketing Mission (6/09)
Atlanta Consultant Mission (6/09)
Hannover Messe ranks as the leading interna-
tional showplace for industrial technologies, materi-
als and product ideas. So it is with good reason
that attendance at this fair has been on the Alliance
calendar for over 10 years. Chesapeake, Virginia
Beach and Franklin Southampton joined HREDA for
this year’s five day show where alternative energy
seemed to be on everyone’s mind.
“Many European businesses are paying close
attention to the Obama administration’s investment
in alternative energy. Consequently many conversa-
tions centered around that particular topic,” noted
HREDA VP, Thomas Clemens.
“For exhibitors and visitors alike, the five days
of the show provided ample evidence that leverag-
ing one’s strengths is the only way to move forward.
Everyone headed off with a shot of confidence,
GERMANY - Hannover Messe
We’ve crossed miles, oceans and time zones, shaken countless hands, and eaten things we can’t even pronounce - nor would eat again - yet we are more energized than ever! Interest in our region continues to be steady and our project activity is up; some projects are new while others have been revived from previous years.
ready to surmount the problems they face and seize
the opportunities available,” commented Deutsche
Messe Managing Board Chairman Wolfram von
Fritsch at the end-of-show press conference. “Our
exhibitors gave proof positive that the drive to in-
novate is as powerful as ever. Rather than dwelling
on the crisis and agonizing over its causes, this
show was about finding the most promising ways
forward.”1
HREDA’s appointment schedule included visits
with companies who already have a location in
Hampton Roads and were present at the show.
1 Courtesy of www.hannovermesse.com
ITEC, the renowned European defence, train-
ing, education and simulation conference, pro-
vided this year’s 2400 attendees and 120 global
suppliers with the opportunity to learn insights
from industry experts as well as see many new
and emerging tools and technologies. The 12-14
May show highlighted a wide range of exhibits
including advanced synthetic technology, physi-
cal simulation of coping with IEDs, a variety of
Serious Games, modeling and simulation COTS
tools, simulation display systems, and virtual inte-
grated procedural trainers.
“This year’s ITEC was a great success with both the conference and exhibition being very well received.
Conference attendance was strong with 462 delegates - slightly higher than at ITEC 2008,” noted ITEC Show
Director, Nina Bushell of Clarion Defence & Security.
Whilst in country, HREDA’s Steve Cook (VP), Charles Macdowell (Senior Consultant UK ) and Scott Hall
(Virginia Beach) promoted the defense and technological assets of our region via appointments with 18 com-
panies representing a range of M&S technologies.
road
wor
k
BELGIUM - ITEC 2009
Firmly believing that we cannot dismiss the
continued growth of outward investment in the
China market, HREDA coordinated an April semi-
nar/marketing mission
to Qingdao, China.
Seminar presenters in-
cluded Darryl Gosnell,
Steve Cook, Catherine
Magill (Senior Consul-
tant China) and David
Cohn, a partner at the
Troutman Sanders law
firm currently residing
in Shanghai. Topics
covered issues from
starting a business in
the U.S. to immigration
law. Annie Kang, Chief Representative, Main-
land China for Virginia International Terminals,
highlighted the strength and growth of the Port
of Virginia. Of particular interest to the attendees
CHINA
was the personal account from Mr. Gao, General
Manager of Shangdong Zhangqiu Blower Co., Ltd. of
his company’s office/warehouse expansion to Suffolk
last December.
“It was a quick
trip, but with over
60 participants
at the seminar
representing more
than 25 compa-
nies, and a solid
meeting schedule
with manufactur-
ing and govern-
ment officials,
it was worth it,”
commented Mr.
Gosnell. “Of course we expect to see a few of these
companies visit Hampton Roads in the near future.”
Scott Hall (Virginia Beach ED), Charles Macdowell and Steve Cook (HREDA) on exhibit floor
Pictured above left to right: Catherine Magill, Darryl Gosnell, Rena Ren (Foreign-oriented secretary to the President), Steve Cook, Victor Qian (Key Account Manager to the U.S.), and Karen Chi (Qingdao liaison for HREDA).
road w
orkJAPAN - Tokyo and Osaka
“Investment Opportunities for Japanese Companies in the Alternative Energy Sector”
Sharing a common
purpose in a far away land,
HREDA, the Greater Rich-
mond Partnership (GRP),
and Virginia Economic
Development Partnership
(VEDP) hosted two sold-out
business investment seminars
in Japan the third week of May.
Combined attendance totalled
120 business executives - 80
attending in Tokyo and 40 in
Osaka.
Highlighting the strength of
our region’s international profile,
research/development facili-
ties, and our logistical, production and service advantages, the delegation’s message provided resources for
attendees considering a U.S. presence in Hampton Roads. ‘Alternative Energy’ was the key component of
both seminar presentations which later segued into discussions on new U.S. federal programs as part of the
stimulus bill passed by Congress earlier in the year.
As a special honor, the HREDA team was pleased to provide their business guests with the first hand tes-
timonies of Mr. Takanobu Ihara and Mr. Ai Sawasa, two former Usui International Corporation executives. Their
messages were simple and straight forward; Hampton Roads is a great place for international business.
SOUTHERN CALIFORNIA and CHICAGO MARKETING MISSIONS
Marketing venues successful in all aspects but the games!
Los Angeles -While our 20 plus Dodger fan guests
suffered a disappointing team loss to the Padres
at Dodger Stadium the evening of June 11, they
unanimously agreed the company, conversation
and food more than compensated for the outcome.
The 8-11 June marketing mission hit all targets with
a total of nine appointments involving companies
within the warehouse, distribution, maritime, logis-
tics, defense and modeling and simulation indus-
tries. In contrast to current economic trends, each
appointment classified their company’s status as in
a ‘growth mode.’
Chicago - Perhaps worse than losing a game is not
playing the game at all! Such was the outcome
of the scheduled June 16th Cubs vs. White Sox
rivalry. Unfortunately, the much anticipated city se-
ries game was rained out. But, thanks to a variety
of well appointed meetings with industry execu-
tives and consultants, including travel to locations
in Wisconsin and Indiana, Steve Cook, Ben White
(Chesapeake) and Scott Hall (Virginia Beach) made
this mission a success!
road
wor
k
announcements
The Alliance is pleased to have participated in locating five new businesses in the region during the first half of 2009. The business of recruitment is a team effort, regionally speaking, and one in which we are proud to facilitate and partner. The five new companies found their ideal locations in Chesapeake, Suffolk, Norfolk and Virginia Beach. Four of those five are highlighted here.
Who and Why – In Their Own Words
becker solutions Corp., a German based hydraulic hose assembler and hydraulic parts manufacturer chose Chesapeake’s Riverwalk Commerce Center as the location for its first U.S. sales and distribution office.
SPARTA Composite Products, an industry leader in high tech military and civil aerospace composite products, chose Suffolk’s Northgate Commerce Park for its first East Coast plant. Operations are scheduled to begin early 2010.
GERMANY - Hamburg Mission and Reception
The dedicated efforts of VP Thomas Clemens and our senior consultant in Germany, Ingo Bentz, has
made connecting with prospects in Germany as seamless as a well-tailored suit. Interest in this year’s busi-
ness seminars in Halle and Rostock resulted in 47 “Making the Connection” registrants. Participants were
very engaged in the team’s presentations and open forum discussions, and keen on gaining insights into
establishing a business presence in the U.S. Alliance staff members Darryl Gosnell and Thomas Clemens
partnered with Tom Elder (Chesapeake) and Chuck Rigney (Norfolk) to bring their knowledge and experience
to panel discussions regarding the benefits of operating a business in Hampton Roads. The successful in-
ternational mission concluded with a VIP cocktail reception and dinner jointly hosted by Virginia International
Terminals and HREDA for key Hamburg steam ship line representatives and maritime prospects.
“Making the Connection”
Why Hampton Roads? “With a growing number of U.S. clients, I needed a location that could
readily support not only our domestic distribution, but international as well. The region’s thriving inter-
national community, cost of living, infrastructure and ideal East Coast location provided the solution and
ultimately led us to Chesapeake.”
Fabian Becker, President
Why Hampton Roads? “Our reasons for selecting Hampton Roads and Suffolk over all of the
competing cities were based on the abundance of a high quality workforce, the great quality of living
as well as clearly identified statistics and details of the incentive packages from the city of Suffolk and
the commonwealth of Virginia. Since we made the decision, we continue to be pleasantly surprised by
more and more reasons why this was not only the right decision, it was the BEST decision we could
ever have made… we could not be more proud to be a member of such a high class, thriv ing and
friendly community.”
Paul Oppenheim, Vice President and General Manager
road rep
ort
1st Quarter 2nd Quarter YTD TOTAL 2008
PROJECTS Total Active 109 112 N/A 129
New 5 14 19 38
PROSPECT VISITS
Total 7 12 19 39
New 6 8 14 27
Repeat 1 4 5 12
RECRUITMENTACTIVITIES
Trips 12 14 26 48
Appointments 40 117 157 269
Contacts 121 56 177 n/a
ANNOUNCEMENTS Total 2 3 5 4
Capital Investment $13,450,000 $9,400,000 $22,850,000 17,820,000
Jobs Created 201 85 286 63
Square Footage 70,000 39,200 109,200 326,300
ipConfigure, a surveillance software development company, headquartered in Houston, TX, located its global sales office at Innovation Research Park (IRP) @ ODU in Norfolk earlier this year. A self-described bootstrap company, ipConfigure is poised to become a leader in electronic surveillance.
MASA Group Inc., a high technology company specializing in cognitive artificial intelligence and optimization for logistics. Home based in Paris, France, MASA adds to the region’s growing international profile. MASA’s office in ODU’s Innovation Research Park (IRP) employs three software developers and modelers. With sights for the Norfolk team to become the core U.S. technical team, MASA maintains an aggressive growth plan.
Why Hampton Roads? “Locating at IRP allowed us to take advantage of proximity to ODU’s
Vision Lab and a ready pool of well-trained, enthusiastic workers. We have space, expertise and it’s
near our workforce. We’d love to make Hampton Roads the center of video surveillance technology.”
Chris Uiterwyk, CEO and ODU alum
Why Hampton Roads? “We chose to operate in Norfolk due to the development of the new
technology park, the proximity to ODU and the regional commitment to modeling and simulation. We
moved to the park to benefit from the university environment and to tap into the student population as
we proceed to hire. The location is close enough to our customers and the facilities are new and well
appointed.”
Mark Phillips, Vice President for Business Development
second quarter report
?Do you know someone who could benefit from being an Alliance investor?
contact
Sarah Cavanaugh
Investor Development Director
T: 757-664-2624
500 Main Street, Suite 1300Norfolk, VA 23510
inroads
Investor Calendar Notes All meetings scheduled for 8:30 AM unless indicated August 20 Executive Committee MeetingSeptember 24 Board Meeting, TNCC Workforce Dev. CenterOctober 22 Executive Committee MeetingDecember 10 Board Meeting, VMASC
Congratulations to Dollar Tree on being named to Fortune’s List
of Top 500 Companies for 2009. The Chesapeake-based retailer
joins regionally headquartered Norfolk Southern and Smithfield
Foods in earning the coveted Fortune 500 status.
FYI – The Commonwealth of Virginia boasts 33 Fortune 500
companies; Richmond has 5 and Hampton Roads, 3.