Category Archive: Business & Economy

Jan 30

SmartRegion.org on Hiatus

on hiatus test patternBrought to you by the Hampton Roads Partnership since 2008, SmartRegion.org, the blog and its accompanying monthly e-Newsletter, is on hiatus.

Stay informed with essentials for your inbox through our recommended bloggers, bookmarked organizations, the region’s communities and traditional news sources (via the website links provided on the left-hand sidebar).

Regional News:

And if innovation is on your mind, our favorites:

Questions? Contact@HRP.org.

Need to reach our former editor? She’s on LinkedIn.

 

Jan 25

Startups Create Most New Net Jobs

During the State of the Union Address on January 24, 2012, the President referenced this important report…

Startups Data (Kauffman Foundation)

From the Kauffman Foundation Research Series on Firm Formation and Economic Growth

The oft-quoted American sports slogan, “Winning isn’t everything. It’s the only thing!” could well be attributed to the economic importance of firm formation in creating jobs. A relatively new dataset from the U.S. government called Business Dynamics Statistics (BDS) confirms that startups aren’t everything when it comes to job growth. They’re the only thing.

By now it is well understood that firms large and small are continuously and simultaneously destroying and creating jobs. Even a mild level of this creative destructive churn points to a dynamic economy much different than static economic models can describe. However, beyond the job churn at existing firms, there is a dynamic in firm birth that seems to be very important for understanding job creation— specifically, the unique effect of new firms, or startups. Put simply, this paper shows that without startups, there would be no net job growth in the U.S. economy. This fact is true on average, but also is true for all but seven years for which the United States has data going back to 1977.

The BDS is the first publicly available dataset that incorporates the age of firms in a dynamic format (Haltiwanger, Jarmin, and Miranda, 2008). Figure 1 presents summary data from the BDS,1 showing that firms in their first year of existence add an average of 3 million jobs per year. By construction, the BDS defines an existing firm—age one up to age twenty-six and beyond—such that it can both create and lose jobs. In contrast, a startup, or age zero firm, only creates jobs because it experiences no gross job destruction. We might anticipate that the net job gain also would be positive at existing firms, but that is decisively not the case during most years on record. Notably, the figure shows that, during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle.

Download and read the entire Kauffman Foundation report:  The Importance of Startups in Job Creation and Job Destruction

Jan 25

ODU gets down to business

ODU Monarch Mascot in Business Suit (Inside Business)Inventors and entrepreneurs struggle to launch their ideas.

By Philip Newswanger for Inside Business, originally posted on January 13, 2012

They are flummoxed by a morass of red tape and nervous investors, who, in this weary economic climate, want an immediate return.

Old Dominion University may have an answer, or at least is offering solutions to the problem of transforming ideas into profits.

The idea, according to two ODU officials, is to marry the pursuit of knowledge, a mission of universities, with the management of knowledge, a private sector endeavor.

Tom Osha, president and CEO of Innovation Research Park at ODU, and Jerry Robertson, executive director of the university’s Gateway initiative, recently highlighted this connection between a university and inventors and entrepreneurs in Hampton.

The Jan. 5 event, called “Working with ODU in the Aerospace Center,” was sponsored by Innovate!Hampton Roads, an initiative launched by the Hampton Roads Partnership to drive jobs and the regional economy.

Osha said technology is getting more, not less, expensive, so companies must change how they do business.

ODU has an economic development role, Osha said, but it must become Read the rest of this entry »

Jan 12

The Race To Dig Deeper Ports For Bigger Cargo Ships

Heard on NPR’s “All Things Considered” on January 5, 2012 –

MELISSA BLOCK, HOST:

This is ALL THINGS CONSIDERED from NPR News. I’m Melissa Block.

ROBERT SIEGEL, HOST:

And I’m Robert Siegel. Seaports up and down the Atlantic Coast are engaged in a race. In 2014, when expansion of the Panama Canal is complete, a new generation of super large cargo ships will begin calling on the East Coast. Miami, Savannah, New York and other cities are vying for the new business and the race is to deepen their ports and expand their facilities to accommodate these new ships.

But as NPR’s Greg Allen reports from Miami, some of the cities are running into significant challenges.

GREG ALLEN, BYLINE: In Miami, dredging is a hot topic. Plans are underway to deepen the port to 50 feet. Some see it as a great business opportunity. To others, it’s a threat to the environment. The CEO of Miami’s port, Bill Johnson, is one of those who’s excited.

BILL JOHNSON: We are the only port south of Norfolk, Virginia, the only port south of Virginia that has full approval from the U.S. Congress to go to that depth. It is the game changer.

ALLEN: After 2014 when expansion of the Panama Canal is complete, ports on the gulf and the East Coast will see more so-called post-Panamax vessels: ships that carry two or three times the load of standard freighters. Miami expects to be ready if it gets the green light to begin dredging its port, but it recently hit a snag.

Environmental groups concerned about how the dredging would affect Biscayne Bay filed a petition with state regulators that, for now, has put the project on hold.

DAN KIPNIS: We’re going to lose the bait. We won’t survive it.

ALLEN: Dan Kipnis is a former charter boat captain, now an environmental activist who’s long worked on Biscayne Bay. He grew up here on nearby Palm Island and was active in efforts in the ’70s and ’80s to restore the health of the bay. Today, the water is cleaner than in decades past and the bay is a busy place.

Along with the cargo ships, it’s one of the world’s busiest ports for cruise ships. There are also sail boats, kayaks and jet skis and Kipnis says excellent fishing.

KIPNIS: I will catch you groupers that weigh 12 pounds and hog snappers and Spanish mackerel and it’s just amazing the amount of life we’ve got here, forgetting crabs and shrimp and all that.

ALLEN: Kipnis has joined with Biscayne Bay Waterkeeper and the Tropical Audubon Society in asking Florida to make sure the port dredging project won’t damage the bay.

In most ports, dredging means digging and pumping mud, sand and other material from the bottom of a river or a bay, but in Miami, the bottom of Biscayne Bay isn’t mud, but limestone. To make the shipping channel wider and deeper, the Army Corps of Engineers wants to conduct nearly two years of underwater blasting.

Kipnis is worried about the amount of sediment the dredging will put into the bay’s crystal clear water.

KIPNIS: If you lift all the silt up year in and year out for two years and get it in suspension, you’re going to kill the grass beds. When you kill the grass beds, there’s no filtration. There’s nothing to hold the sediment that’s there down any more.

JOHNSON: So we’re not about killing manatees. We’re not about polluting the bay. We’re about doing things that are right and working to ensure that it’s done right.

ALLEN: At a recent port presentation, CEO Bill Johnson said he’s willing to work with environmental groups and make sure the dredging is done in a way that addresses their concerns.

Miami is not the only city where port dredging plans are controversial. In Georgia, a plan to dredge Savannah’s port has riled up both environmentalists and politicians. Environmental groups are concerned about some of the same sediment issues raised in Miami.

Regulators in South Carolina, just across the Savannah River, at first moved to block the dredging, but then South Carolina governor Nikki Haley intervened. In part because of her help, Georgia was able to negotiate a deal with South Carolina regulators that allows the dredging to go forward, but some in the state felt that Haley was unfairly helping the competition.

South Carolina is working to expand Charleston and its other ports to accommodate the new post-Panamax ships. At a news conference, Haley said there will be enough business for ports in both states.

GOVERNOR NIKKI HALEY: Those Panamax ships are coming through Charleston and it is going to be so vibrant and so strong that the overflow is going to go to Jasper and Jasper is going to be a great port. Without question, the ports are the best thing we’ve got going. It’s an opportunity waiting to happen.

ALLEN: That’s the message you can hear in New Orleans, Baltimore and other ports along the Gulf and Atlantic Coasts. So far, only one port, Norfolk, is deep enough to accommodate the new super large ships.

By 2014, a handful of other cities hope to be ready, but there’s a lot of work to be done before then. In New York, the port is deep enough, but there’s another problem. It’s the Bayonne Bridge, which is currently too low to allow the new container-laden ships to pass. To fix that, the Port Authority is planning to raise the bridge by 64 feet, a job that will take more than $1 billion and five years to complete.

Greg Allen, NPR News, Miami.

Jan 12

What is the state of the Port of Virginia?

Join the Hampton Roads Global Commerce Council (HRGCC) and special guest speaker Joe Dorto, President and CEO of Virginia International Terminals, for the Annual State of the Port Address.

WHERE:  Town Point Club, World Trade Center (101 W. Main Street, 3rd floor), Norfolk, VA

WHEN: Wednesday, January 18, 2012; 11:30 a.m. registration, 12:00 p.m. luncheon

 NOTE:  Online registration is not available because of the limited number of seats remaining available — please email president@hrgcc.org to reserve seats now.

The Hampton Roads Global Commerce Council (HRGCC), previously known as the Hampton Roads Foreign Commerce Club, is a non-profit organization founded in Hampton Roads in the early 1950s by local business leaders who were engaged in international commerce.

HRGCC is dedicated to promoting the international commerce of the United States in general, and that of the port of Hampton Roads in particular. The Council’s primary mission is to bring together and serve the industries in Hampton Roads associated with national and international commerce, particularly the trucking, shipping, rail and air transport industries, through education, information-sharing, and networking opportunities. The Council meets these goals through a variety of breakfast, luncheon, and after-work meetings where members and guests have an opportunity to hear from and meet political, industry, and community leaders, as well as the Annual “State of the Port” Address given in January by the President of Virginia International Terminals, scholarships, and the Commerce Builder Award. For more information on HRGCC, visit t www.hrgcc.org.

Jan 09

The year ahead: What’s in store for Hampton Roads

By Bill Cresenzo for Inside Business, posted January 6, 2012

2012 – 2011 redux? As Hampton Roads begins another year, Inside Business asked the region’s business, government, civic, educational and community leaders to give readers an idea of what they would like to see happen in the year ahead and what they expect to see.

Leaders such as Greg Grootendorst, the chief economist with the Hampton Roads Planning District Commission, who said, “The economic outlook for the coming year is likely to be one characterized by very modest growth.

“Hampton Roads remains entrenched in the process of recovering from the great recession,” he said. “The region has lost in excess of 50,000 jobs since payroll employment peaked in July of 2007; regional employment is now at the same level as it was in 2001.”

Vinod B. Agarwal, an economics professor at Old Dominion University, concurs with Grootendorst. The author of an annual regional economic forecast, Agarwal will present his findings at 10:30 a.m. Jan. 25 at the Norfolk Waterside Marriott at the annual economic forecast event. To register, call (757) 683-5138.

Agarwal said he expects the economy to pick up slightly in 2012, but it will continue to be a “jobless recovery.” While the economy might grow some, unemployment rates will remain steady or rise.

But there are other, exciting things on the business horizon. From Hampton Mayor Molly Ward to Jerry Bridges, the executive director of the Virginia Port Authority, to Dana Dickens, president of the Hampton Roads Partnership, inside this issue you’ll find what the region’s leaders believe 2012 will bring, as well as what they hope it will bring.

Recently seen on the Twitterverse:  What’s your wish for Hampton roads in 2012? See what Dana Dickens and other local leaders think. http://insidebiz.com/news/inside-business-story-257

The Year Ahead: E. Dana Dickens III President and CEO, Hampton Roads Partnership

My one wish for 2012 is that the many years of work in regional cooperation and collaboration by the Hampton Roads Partnership translate into true regional consensus, with significant results in growth and in greater diversification of the economy of Hampton Roads.

We can accomplish this if:

  • Entrepreneurs have better access to capital, supported via a multimillion dollar fund organized by investors to promote “grow your own” economic development in the region.
  • Taxpayers enjoy enhanced government services and lower taxes, supported via implementation of shared public services identified during the pilot program launched in 2011 with Virginia Beach, Norfolk and Chesapeake.
  • Local government implements improved efficiencies and savings, supported via more Hampton Roads cities – and counties – joining in shared services projects across the region.
  • Startup businesses achieve explosive growth thanks to mentors, supported via coaching provided by the region’s proven business leaders, both retired and active.
  • Growth-oriented companies realize their entrepreneurial goals, supported via a cultural shift enabled by Innovate!HamptonRoads and its “Economic Gardening Network,” a suite of high-end, high-speed business growth resources.
  • Serious networking and marketing happens for entrepreneurs, supported via successful events like Start Norfolk, active local entrepreneurs, metropolitan-focused academic institutions and the groups championing the region’s technology clusters of aerospace, bioscience, coastal energy, modeling and simulation, robotics and unmanned systems and sensors.
  • Education in STEM/STEAM moves forward rapidly, supported via the various regional efforts such as a full-time boarding school, a governor’s school and curricular/extracurricular activities for public schools tied to Virginia’s standards of learning. [STEM stands for science, technology, engineering and math. STEAM stands for science, technology, engineering and applied math.]

Jan 06

Events for Inventors on Prototyping, DoD in VA, Naval Station Norfolk’s future, Bioelectrics in Hampton Roads

The Virginia Inventors Forum meets Wednesday, January 11, 2012, 6:00 – 9:00 p.m. at Thomas Nelson Community College – Historic Triangle Campus (4601 Opportunity Way, Williamsburg, VA – Room 222) for a program featuring Dwight Dart, Design Lab Engineer from the Department of Mechanical and Aerospace Engineering at the University of Virginia on “Prototyping…and after: the importance of building a prototype, refining the prototype, and what comes next once the prototype is built.” To register and for more information, visit VirginiaInventors.org.

CREW Hampton Roads CREW (Commercial Real Estate Women) Hampton Roads hosts a Luncheon Program on “Naval Station Norfolk: The State of the Base, Current and Future Growth and Improvement Strategy” featuring Captain Mary Jackson, Commander, Norfolk Naval Air Station, Norfolk, Virginia. Join CREW on Tuesday, January 17, 2012, at Town Center City Club (222 Central Park Avenue #230, Virginia Beach, VA) from 11:30 a.m. to 1:15 p.m. SIGN UP ONLINE at CrewHamptonRoads.org or contact Jamie Richardson at crewhr@verizon.net.

Tidewater Association of Service Contractors Tidewater Association of Service Contractors (TASC) meets on January 18, 2012, at 11:30 a.m. for a Luncheon at the Norfolk Airport Hilton (1500 North Military Highway Norfolk, Virginia) featuring Stan Scott, Executive Director of the Virginia National Defense Industrial Authority (VNDIA) which advocates for our nation’s military in Virginia. The Virginia National Defense Industrial Authority (VNDIA) was established during in 2005 by the Virginia General Assembly recognizing that “a need exists for the provision of technical assistance and coordination between the Commonwealth, its political subdivisions and the United States military…” Department of Defense (DoD) spending in the Commonwealth now exceeds $57 billion annually ($5,000 for each Virginian) and accounts for 15.6% of the Gross State Product and 18.9% of jobs in Virginia. DoD remains Virginia’s number one direct employer (187,000 jobs) and indirectly supports more than 900,000 Virginia jobs. Register at TASC-TGIC.org/events/registration.php.

Join Biotech at the Beach on Friday, January 20, 2012, from 12:30 p.m. to 2:00 pm. Luncheon topic is “Bioelectrics and its use for both medical and environmental applications” with speaker Dr. Richard Heller, Director of the Frank Reidy Research Center for Bioelectrics at Old Dominion University. Location: Virginia Beach Economic Development Authority Conference Room located in the Armada Hoffler Tower at 222 Central Park Ave, Suite 1000, Virginia Beach, VA. Center for Bioelectrics (CBE) at Old Dominion University is a multi-discipline center mainly focused on translational research. Examples of research being performed at CBE will be discussed during the presentation including wound healing, cancer therapy, cardiovascular and decontamination. As always, the luncheon is complimentary, you can register to attend here. Learn more about Biotech in Hampton Roads at Arkios.com/BiotechattheBeach.htm.

Jan 04

Financing Your Hampton Roads Business Venture-Who, What, When, Where, How

Technology Hampton Roads invites you to “Financing Your Business Venture” on  Wednesday, January 18, 2012 from 2:00 p.m. to 5:00 p.m at ECPI University, 5555 Greenwich Road, Room 360, Virginia Beach, Virginia.

This FREE event brings together fourteen financing professionals from a multitude of industries to discuss various options available to the entrepreneur to finance his or her business venture.  Done in both single speaker and panel formats, participating professionals will enlighten you about financing opportunities and will be on hand to answer questions about the numerous strategies.

Topics include:

  • Understanding Investors,
  • Valuing Owner and Investor Interests,
  • Attracting Investors and Key Team Members,
  • Negotiating the Deal, and
  • Not-So-Apparent Funding Sources.

Register at:  http://www.TechnologyHamptonRoads.org/en/cev/702

Dec 12

Hampton Roads cities teaming up with industry leaders

THE PLAN: Officials from Chesapeake, Norfolk and Virginia Beach and executives from Amerigroup, Dollar Tree, Huntington Ingalls Industries, Norfolk Southern and Smithfield Foods have begun discussing ways the three cities could team up to reduce expenses.

THE IDEAS: While the group has not made any recommendations, officials said “everything is on the table.” Some of the services they could consider combining include 911 service and trash pickup. Cities could also merge some business operations or buy products, such as fuel, together.

Shared Services Poll
Click here to take POLL:  Should Chesapeake, Norfolk and Virginia Beach explore combining some operations and programs to cut costs?

By Josh Brown for The Virginian-Pilot, December 12, 2011

Faced with budgets strained by flagging tax revenue, cities in Hampton Roads could soon combine some government operations and programs to cut costs.

A coalition of the region’s three largest cities and five of the largest locally-based corporations have launched a pilot program to examine ways that the municipalities can share services.

Officials from Chesapeake, Norfolk and Virginia Beach already have begun meeting with executives at Amerigroup, Dollar Tree, Huntington Ingalls Industries, Norfolk Southern and Smithfield Foods.

The Hampton Roads Partnership, a regional organization of business, political and academic leaders, is spearheading the project, which runs through March. Its $150,000 cost is being split among the cities and the businesses.

“Everything is on the table,” said Dana Dickens, president and CEO of the partnership. “They’re interested in looking at anything that would generate efficiencies, whether it’s sharing a service or purchasing widgets or trucks or fuel or IT services or picking up garbage.”

Preliminary discussions about cities working together began in February, as officials searched for ways to trim tight budgets.

“Things that might have been difficult a few years ago – to think across city lines – now have become more of just a way to do business,” said Marcus Jones, Norfolk’s city manager. “Can you be more efficient with the way you deliver services? More is being asked of us to collaborate.”

Jones said Norfolk officials already had been looking at ways to Read the rest of this entry »

Dec 09

For Homegrown Jobs, Look to Innovation Ecosystems Fed by Universities and Talent

Just like any ecology, a robust innovation ecosystem depends on a complex interplay: human capital, financial capital, intellectual capital, and social capital all work together to create a sustainable environment for the economy to thrive. The investment, entrepreneurial, and nonprofit communities are all critical elements that, along with a foundation of functional government and exceptional universities, build a bridge between ideas and economic impact.

By Dr. Holly Krisztina, Vice Provost for Innovation, University of Southern California and Member of the National Advisory Council on Innovation & Entrepreneurship (NACIE) for the U.S. Economic Development Administration’s December 2011 newsletter

To create jobs, economic development efforts should refocus regionally on innovation-based economies, which have high growth potential, and focus on people rather than infrastructure. The most effective investment of these dollars is on the development of talent and the networks among innovators, investors, and entrepreneurs on the local level.

Higher education plays a vital and extensive role in driving innovation in the United States, so government should look to research universities as a foundation of these regional networks. They offer a vast research base (a total of $50 billion nationwide), the ability to teach and develop a fresh new workforce (3 million graduates each year), the ability to convene disparate expertise, and a deep commitment to the local community.

Businesses are the key piece of the system, but there are only three sources of companies: they can be transplanted, which is done at the expense of other regions and can be very costly if incentive packages are involved, or they can be nurtured from the seed stage and homegrown.  It’s our view that the latter is the best long-term strategy for sustainable regional employment and economic growth. Read the rest of this entry »

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