Virginia Economic Development, Liz Povar January 13, 2015 Wallops Island Regional Alliance

VIRGINIA ECONOMIC

DEVELOPMENT PARTNERSHIP

YESVIRGINIA.ORG

VEDP UPDATE FOR

ESDA

January 13, 2015

1

WHAT IS VEDP?

VEDP History

The Virginia General Assembly created the Virginia Economic Development Partnership (VEDP) in 1995 to attract new businesses to the Commonwealth, help major Virginia businesses expand, and increase trade opportunities for Virginia businesses

VEDP is governed by a 25 member Board Of Directors comprised of businesspersons from around Virginia, each of whom is appointed by the Governor and the General Assembly

VEDP’s President & Chief Executive Officer is employed by the Board to oversee the fulfillment of our mission

WHAT IS VEDP?

VEDP is

Virginia’s Business Welcome Center

Global Gateway for Virginia Companies

Ally for Virginia’s Communities

Revenue Generator for Virginia’s Citizens

Good Steward

VEDP’s Mission

To enhance the quality of life and raise the standard of living for all Virginians, in collaboration with Virginia communities, through aggressive business recruitment, expansion assistance, and trade development, thereby expanding the tax base and creating higher-income employment opportunities.

STRATEGIC REVIEW 2015

• A Commonwealth

at the Crossroads

4VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

• VEDP Current &

Proposed

Deliverables


• Commonwealth at the Crossroads

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP5


• Commonwealth at the Crossroads



• The New Virginia Economy

– “…Enhancing our infrastructure…”


VEDP Proposed Deliverable

1. Establish and fund public/private partnership

site program, with emphasis on prepared sites



– “…Growing our strategic industry sectors…”


VEDP Current Proposed Deliverables

1. Produce target sectors for marketing

2. Build-out geographic capacities

3. Conduct more in-depth sector research in targeted markets

4. Rely on empirically-driven marketing to reach key prospects

5. Outreach to key corporate and high-growth businesses

6. Expand communication and coordination with allies

7. Put in place cross-department industry sector “swat” teams

An Ideal Launch Pad for Success

Virginia’s role in the aerospace industry dates to 1917, when the nation’s first civil aeronautics laboratory was established in Hampton – it is now known as the NASA Langley Research Center

The federal government and the military continue to play leading roles in Virginia’s aerospace industry

Virginia Tech and the Mid-Atlantic Aviation Partnership were named as one of the FAA’s six UAS test sites

In the past ten years, 67 aerospace industry projects in Virginia have announced almost 7,400 new jobs and over $1.7 billion in investments

Recent major announcements include

Alliant Techsystems

Boeing

Goodyear Tire & Rubber

Orbital Sciences Corporation

Rockwell Collins

AEROSPACE IN VIRGINIA

9,100 people in Virginia make aerospace products

4,000 people in Virginia make composite products

5,300 people in Virginia work in machine shops

#1 state for U.S. Department of Defense Contracts

18,000 people exit the military from Virginia bases annually

Home to the Pentagon and multiple major military installations

Defense Advanced Research Projects Agency – directs and conducts military research

National Institute of Aerospace – conducts aerospace research and awards advanced degrees

Commonwealth Center for Aerospace Propulsion Systems – joint UVA-Virginia Tech research

Space launches from NASA Wallops Flight Facility – Mid-Atlantic Regional Spaceport

Space systems integration expertise at NASA Langley Research Center

Orbital Sciences Corporation manufactures satellites in Dulles, Virginia

9 commercial airports and 57 general aviation airports

25.3 million people board commercial aircraft in Virginia annually

1,400 people in Virginia work at FAA certificated repair stations

Military

R&D

Space

Airports

MFG

VIRGINIA’S AEROSPACE STRENGTHS

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

Virginia’s Aerospace Industry

Employs 30,300 people at 255 firms, primarily in Aerospace Technology and Aerospace Equipment

Benefits from key military bases in Hampton Roads and Northern Virginia

Ranks first in the nation for U.S. Department of Defense Prime Contracts –$51.5 billion in FY 2012

R&D assets include DARPA and the National Institute of Aerospace

Location of NASA Langley Research Center and NASA Wallops Flight Facility

Home to Rolls-Royce’s Crosspointe production facility

Commercial launch capability at the Mid-Atlantic Regional Spaceport

Direct economic output of $7.2 billion

Central location on the Atlantic Coast provides interstate and rail access to the Northeast, Southeast, and Midwest

Access to international markets provided by the Port of Hampton Roads and Washington Dulles International Airport

AEROSPACE IN VIRGINIA

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

Major Employers

AERIAL Machine & Tool

AerojetAlcoa Howmet

Aurora Flight Science

BAE Systems

Boeing

Cobham North America

Dynamic Aviation Group

EADS North America

Euro Composites

General Dynamics

Goodyear Tire & Rubber

Kollmorgen

L-3 Communications

Lockheed Martin

Measurement Specialties

Moog

Northrop Grumman

Orbital Sciences Corp.

Raytheon

Rockwell Collins

Rolls-Royce N. A.

RTI International Metals

The Aerospace Corp.

Triumph Aerospace

Military and Federal

The Pentagon

Central Intelligence Agency

Dept. of Homeland Security

Fort Belvoir

Fort Eustis

Fort Lee

Fort Pickett

Langley Air Force Base

Marine Corps Base

Quantico

Missile Defense Agency

National Ground

Intelligence Center

National Reconnaissance

Office

Naval Air Station Oceana

Naval Surface Warfare

Center, Dahlgren

Navy Commander

Operational Test and

Evaluation Force

Norfolk Naval Base

Office of Naval Research

Space and Naval Warfare

Systems Command

Research and

Development

Commonwealth Center for

Advanced Manufacturing

Commonwealth Center for

Aerospace Propulsion

Systems

Defense Advanced

Research Projects

Agency

NASA Langley Research

Center

National Center for

Coatings Application,

Research & Education

National Center for

Hypersonic Combined

Cycle Propulsion

National Institute of

Aerospace

Virginia Modeling,

Analysis, and Simulation

Center

Virginia Space Grant

Consortium

Airports

Washington Dulles

International Airport

Ronald Reagan

Washington

National Airport

Charlottesville-

Albemarle County

Airport

Lynchburg Regional

Airport

Newport News-

Williamsburg


Norfolk International

Airport

Richmond


Roanoke Regional

Airport

Shenandoah Valley

Regional Airport

57 general aviation

airports

Education

University

Virginia Tech

University of Virginia

Old Dominion

University

Virginia

Commonwealth

University

Liberty University

Hampton University

Averitt University

Community College

Blue Ridge

Community College

John Tyler

Community College

Thomas Nelson

Community College

High School

Aviation Academy of

Newport News

Public Schools

AEROSPACE CAPABILITIES IN VIRGINIA



– “…Promoting our competitive business climate…”


VEDP Current and Proposed Deliverables

1. Develop new brand for The New Virginia Economy

2. Market attributes of Virginia regions

3. Increase exports to global markets

4. Build stronger collaborative partnerships

5. Create synergies and support work of VEDP’s regional allies

6. Benchmark Virginia’s regional industry strengths against global

competitors

7. Protect Virginia’s competitive taxation system, fair regulatory

environment and business-friendly laws and leadership

REGIONAL VIEW - HAMPTON ROADS


823 Jobs

$218 Million

12 Announcements

Regional Marketing Organizations

Hampton Roads Economic Development Alliance

Assets

• Federal Assets: Naval Facilities, Wallops Island

• Port of VA

• Skilled/Educated workforce, trained military personnel

• Higher Ed: William & Mary, ODU, EVMS, Norfolk State, VCCS

• Technology Assets: Modeling & Simulation, Thomas Jefferson National Accelerator, NASA Langley

• Tourism: Colonial History, Oceanfront, Naval History

• Companies: Huntington-Ingalls, STIHL, Perdue Farms, Alcoa-Howmet

Challenges

• Remote connectivity to population centers, citizens desire to maintain local culture

• Dependence on military

Strategies

• Diversify economy to reduce impacts of sequestration

• Promote environmentally-based/agribusiness development

• Global Attraction, especially Port supported

• Strategic Partnerships with Federal and State Assets

AEROSPACE IN VIRGINIA’S REGIONS



– “…Nurturing a sustainable entrepreneurial environment…”


VEDP Proposed Deliverables

1. Develop the first statewide sustained high-growth firm

strategy in the nation

VIRGINIA’S AEROSPACE STRENGTHS

R&D Assets

National Institute for Aerospace —

conducts research and awards advanced

degrees in aerospace engineering

through a partnership with nine

universities

Commonwealth Center for Aerospace

Propulsion Systems — a joint UVA /

Virginia Tech / Rolls-Royce research effort

National Center for Hypersonic

Combined Cycle Propulsion —

advances understanding of critical mode

transitions and supersonic/hypervelocity

flow regimes of combined cycle

propulsion

The Naval Surface Warfare Center

Dahlgren Division — the premier

research and development center for

advanced weapons system integration

NASA conducts aerospace research at

its Langley Research Center and

Wallops Flight Facility

Defense Advanced Research Projects

Agency — directs and conducts military

research

National Center for Coatings,

Application, Research, and Education

South Boston

National Center for Coatings,

Application, Research, and Education

— develops applied coating solutions

with manufacturers in its advanced

manufacturing laboratories

VIRGINIA SPOT MATRIX FOR <50 EMP. MARKET

STRENGTHS OPPORTUNITIES

PROBLEMS THREATS

CU

RR

EN

T/I

NT

ER

NA

L FU

TU

RE

/EX

TE

RN

AL

• Flexibility

• Lower Overhead

• Market Proximity

• Ports (2)

• Institutional

Knowledge

• Utility Costs

• High Taxes

• Regulations

• Access to Capital

• Scalability

• Lack of Depth (EE’s)

• Workforce Challenges,

e.g. Aging

Declining Coal

Industry

State Regulations

Aging population

Federal regulations

targeting

manufacturers

Decrease in Federal

Spending

Water Resources

Rate of change in

technology

Retailer Supply

chain, e.g. Wal-Mart

model

• Diverse Localities, e.g.

Urban - Rural

• Corporate Research

Model

• Higher Education

• Technology

Infrastructure, e.g. Fiber

Optics etc

• Population Imbalance

• Lack of Business resources (e.g.

risk management for immature

companies)

• Reliant on Govt. as major driver

• Scalability

• Lack of Depth (EE’s)

• Workforce Challenges, e.g. Aging

• Tools needed to do business

• Higher Ed not so nimble

• Duplication of Govt. services

• Availability of Veterans

• Cost Differential: NOVA v

ROVA

• New Commercial Market

Development, e.g. US,

Medical, Energy, Food,

Beverage

• Increasingly available

(affordable) technology

• Consolidate Govt. Services

• Industry cluster development

• Export opportunities

• Global E-commerce

• Medical Technology

• Increasingly available

(affordable) technology

• Leverage Regulations into

opportunities

• Increasing rate of change in

Ecosystems



– “…Equipping Virginia’s workforce with in-demand skill sets…”


VEDP Current and Proposed Deliverables

1. Fully integrate workforce (VJIP) into operations

2. Enhance VJIP as a portal for businesses to access

workforce delivery capabilities

3. Leverage and champion higher education partners in

creating credentials that count for business

MRO

Virginia’s Advantages

47 FAA Certificated Repair Stations operate in all regions of Virginia and employ almost 1,400 people

9 commercial airports, including Washington Dulles International Airport and Regan National Airport

Workforce benefits from 18,000 people exiting the military annually from bases in Virginia

Opportunities exist for commercial MROs, business jet completions, and military conversions

Blue Ridge Community College offers an Associate of Applied Science in Aviation Maintenance Technology

Furniture industry cluster in southern Virginia offers skilled workers for producing and installing interiors

Key employers include

Dynamic EngineeringL-3 Flight InternationalLandmark AviationOrion Air Group

VIRGINIA’S AEROSPACE TALENT

ACTIONS TO MOVE FORWARD

• Align and Invest in Talent Development Coalitions and

Capabilities

– Create Regional “Front Doors” - Business Services Teams - delivering talent with

credentials that are meaningful to business (VEDP/VJIP)

– Support strategic investments in:

• Non-credit training & certifications – VCCS, DOE

• Apprenticeships – DOLI

• Distributed education – PRODUCED in Virginia (UVA); Commonwealth

Graduate Engineering program (VT, UVA, VCU, GMU, ODU)

• Higher Education Equipment Trust Fund

– Assess the impact of a Virginia Talent Investment Loan Program (VSBFA)


MID-ATLANTIC

AVIATION PARTNERSHIP

STATUS


OUR TEAM

• Awarded the FAA UAS Test Site OTA through Virginia Tech

• Led by Virginia Tech, Rutgers and University of Maryland

• Includes Academia, Government, Industry, Economic Development Agencies and Non-

Profit Organizations

• Specific Team strengths:

• Three top 50 research universities

• Companies w/ experience in UAS development, manufacture, operation and

testing

• Existing relationships to federal UAS R&D centers

• William J. Hughes FAA Technical Center

• NASA Langley

• NASA Wallops

• NAVAIR Patuxent River

• NSWC Dahlgren

• International airport with 10,000’ runway

• Flexible and diverse airspace

• Funding provided from State Economic Development23

MAAP STRUCTURE

Business• Active flight testing in all three states

• Bring companies to VA/MD/NJ

• Refine process for multi state work

• Engage in larger research efforts with larger companies

• Better outreach to stakeholders

Technical• Expansion of access and airspace

• Training curriculum in place for multiple types of UAS

• Enhance the airworthiness and SOP’s

• Engage a Designated Airworthiness Representative (DAR)

Be seen as a leader among the test sites 24

MAAP GOALS 2015

VIRGINIA ECONOMIC

DEVELOPMENT PARTNERSHIP

YESVIRGINIA.ORG

QUESTIONS?

Virginia Economic Development, Liz Povar January 13, 2015 Wallops Island Regional Alliance

Documents

developmentcommonwealth

indepth sector research

triumph aerospace military

new virginia economygrowing

new virginia economyenhancing

dgdfgdfgdfgdfg vedp

key prospects5

coatings application