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VIRGINIA ECONOMIC

DEVELOPMENT PARTNERSHIP

YESVIRGINIA.ORG

VIRGINIA ASSOCIATION OF

COUNTIES

COUNTY OFFICIALS SUMMIT

Martin Briley

President & CEO, VEDP

August 13, 2015

THE VIRGINIA ECONOMIC

DEVELOPMENT PARTNERSHIP (VEDP)

• Virginia’s Business Welcome Center

• Global Gateway for Virginia Companies

• Ally for Virginia’s Communities

• Revenue Generator for Virginia’s Citizens

• Good Steward

• Report to Board of Directors

– 24 members

– 18 appointed by the Governor or the General Assembly

– 6 ex-officio members

– 6 year terms

• Report to the Secretary of Commerce & TradeVIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

VEDP MISSION STATEMENT

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 building the tax base and

creating higher income employment opportunities.

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

BUSINESS ATTRACTION


• Global sales team dedicated to targeted outreach

marketing to companies “New to Virginia”

– Geographically deployed

• Asia, Europe, India, and Canada

• Northeast, Midwest, West, South, and Mid-Atlantic

• Offices in China, Germany, Japan, India, and the

United Kingdom

BUSINESS EXPANSION


• Focused on developing, in collaboration with

VEDP’s allies, a robust Business Retention &

Expansion Strategy

– Increase the number of projects from existing Virginia

businesses

– Allies Communication Strategy

– Higher Education Partnership Strategy

– Strengthen Partnerships with other Virginia Agencies &

Allies


INTERNATIONAL TRADE

VALET PROGRAM

• Launched in January 2002, the Virginia Leaders in Export Trade (VALET) Program assists exporters in the Commonwealth that have firmly established domestic operations and are committed to international exporting as an expansion strategy. Participating firms are chosen based on their dedication to growth through export.

• The VALET program puts participating companies on the fast track to international business growth by connecting them with the necessary tools for successful export sales.

• To date, 245 Virginia companies have been accepted to participate in the VALET program

• 210+ graduate companies

• 49 active companies


VEDP GOING GLOBAL DEFENSE INITIATIVE


• VEDP launched the Going Global Defense Initiative

(GGDI) in 2013

• Grant funding for Year 3 of GGDI has been approved

• VEDP’s International Trade division assists Virginia

defense-related companies find new customers in

international markets

• Total companies in program - 246

• Average percentage of sales to U.S. defense agencies

by company participants – 69%

VEDP VIRGINIA INTERNATIONAL TRADE

ALLIANCE (VITAL) INITIATIVE


• The Virginia International Trade Alliance (VITAL) is a new VEDP

initiative announced in July 2015 that will increase international

trade in Virginia.

• VITAL expands the Commonwealth’s nationally-recognized

international trade program via formal partnerships with

Virginia’s public universities, industry associations, and the

Virginia Chamber of Commerce to serve their member

companies as they expand international sales.

• Goals for VITAL include:

– Growing Virginia exports by $1.6 billion in five years

– Creating 14,000 trade-supported jobs in five years

– Increasing the number of companies enrolled in VEDP’s international trade programs

to serve 390 companies per year

VEDP FY15 RESULTS

July 1, 2014 – June 30, 2015

GOAL ACTUAL % OF GOAL % OF FY

$3 billion $2.9 billion 96% 100%

13,000 18,756 144% 100%

201Announcement Projects

93Average Jobs

$14MAverage Investment

Capital Investment

Jobs


FY15 VEDP-ASSISTED ANNOUNCEMENTS

BY REGION

Virginia

18,756 Jobs

$2.9 Billion

201 Announcements

1 Southwest VA 2 Southern VA 3 Valley 4 Central VA 5 Northern VA 6 Hampton Roads

1,443 1,989 1,893 5,049 5,272 3110

$69 Million $651 Million $316 Million $602 Million $929 Million $375 Million

23 14 39 38 68 19

1

3

2

4

5

6


GENERATING REVENUE FOR VIRGINIA

12

VEDP-assisted projects generate a steady revenue source for the Commonwealth,

increasing its ability to fund the important needs for Virginia’s citizens:

VEDP FY15 ROIPER DOLLAR OF

BUDGET

201New Projects

$2.9BNew Investment

18,756New Jobs

Across Virginia

State figures are in present value terms and are estimated net revenues after deducting all VEDP operating costs (budget and incentives).

Local figures are estimated gross revenues.

$546M

New Revenue for Virginia

10 YEARS

$234M

New Revenue for Virginia

5 YEARS

$897M

New Local Revenue across Virginia

10 YEARS

$418M

New Local Revenue across Virginia

5 YEARS

$6Over 5 Years

$15Over 10 Years


BEYOND SEQUESTRATION


The great recession changed the business landscape, producing a

ripple effect in the absolute number of projects being worked by

VEDP.

The bottom line: Virginia must out-perform competitor states

and global regions for a smaller universe of projects.

Fewer Projects

In Market

&

Increased Global

Competition

Multinational

Deals have

Higher Capital

Investment &

Automation

Every State has

Seen Significant

Drops in the

Average Number

of Jobs

VA Average Jobs

Per Project in 2013

(33% decline from 2012)

60

INCREASED GLOBAL COMPETITION


States modeling pro-growth policies based on Virginia’s proven success:

• Indiana and Michigan recently passed right-to-work laws to bolster states’ business

retention and attraction efforts

• States across the country implementing multi-million dollar advertising campaigns:

New York

$50M

Connecticut

$27M

Michigan

$25M

California

$50M

Recent Virginia

Accolades

No. 2 State with Highest STEM Job Concentration – Enterprising States

Report 2014

No. 4 in 2014 Forbes.com Best States for Business

No. 4 in Pollina Corporate Real Estate’s 10 Top Pro-Business States

No. 8 in Economic Growth Potential – Business Facilities

PROSPERITY PERFORMANCE OF STATES

Rankings of U.S. States GDP per Capita (2001-12)

High and Rising Prosperity

• 17 States, including Virginia

High but Declining Prosperity

• 5 States

Low but Rising Prosperity

• 13 States

Low and Declining Prosperity

• 15 States

15VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

Rankings

Completed

Prior to Full

Effects of

Federal

Sequestration

Cuts

Source: BEA, Harvard University M. Porter

COMMONWEALTH AT THE CROSSROADS

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP16

Virginia Benefited from Increased

Federal Spending• Federal spending increased 179% from 2000 to

2007

• Federal contracts increased 2,176% from 2000

to 2007

• Federal contracts reached its peak of contracts

in 2007, while federal spending reached its

peak in 2011

Virginia Now Suffers from

Decreased Spending• Federal spending decreased 4%

from 2007 to 2014

• Federal contracts decreased 83%

from 2007 to 2014

Source: USA Spending (Federal Fiscal Years)

POSITIONING VIRGINIA

Addressing the Challenges

Facing the Commonwealth

and VEDP

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP17

PUSHING THE RESET BUTTON

Diversifying the Economy

Governor McAuliffe’s “New Virginia Economy”

5 Pillars of Economic Success

• Enhancing Infrastructure

• Growing Strategic Industry Sectors

• Promoting Competitive Business Climate

• Nurturing Sustainable Entrepreneurial Environment

• Equipping Workforce with In-Demand Skill Sets


PUSHING THE RESET BUTTON

Recalibrating VEDP

Strategic Review 20155 Declarations of Intent & Hurdles to Clear

• Outperform Competitors. . .Unpredictable Funding

• Work as One. . .Diffused Roles

• Advance Business Competitiveness. . .Greener Pastures

• Meet Market Demand. . .Reassessing Pro-Business Policies & Retooling Incentives Portfolio

• Access World Markets. . .Increasing Exports & Foreign Direct Investment


VOICES OF VIRGINIA

• You can make a huge impact. Join us in moving Virginia

forward by sharing with the world why Virginia is the

BEST state for business. Just remember:

Business-first Values

Easy access to domestic and

global markets

Stable and low operating costs

Talented and educated workforce


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