Virginia’s Competitiveness in the Global Economy

Hugh D. Keogh, President emeritus

The Virginia Chamber of Commerce

Spring 2011

Commonwealth of Virginia

Virginia Economic Overview• Geography: 42,000 Square Miles

95 Counties, 39 Cities• Population: 8 million• Unemployment: 6.4% (Spring ‘11)

US 8.9%• Per Capita Income: >$43,000 (2010)

110% of the US avg. 8th Nationally

Prominent Economic Sectors

• Business Services

• Defense

• Manufacturing

• Tourism

• International Trade and Development

Southeast Region: Our Competitive Environment

Hallmarks of Virginia Economy

• Strategic Location

• Supportive Business Climate

• Quality of Life

• Economic Diversity

• High Income/Low Unemployment

Virginia’s Assets

Traditional

• Reputation/ AAA Bond Rating

• Higher Education• Proximity to Markets/Transportation: Rail, Highway, Ports of Virginia, Dulles

• Workforce: Trainability & Work Ethic

• Workplace Environment: Right to Work (e.g. Wisconsin)

Virginia’s AssetsContemporary

• IT Ambience

• Cutting Edge Manufacturing

• At the Heart of the Nation’s Defense Posture

• Economic Incentives

• Forbes Ranking

Virginia’s Challenges 2011• Workforce: Shortage of technically skilled

workers- statewide

• Transportation: Approaching (or at) crisis levels- need high speed rail; third crossing; highway improvements/ Governor’s package 2011

• Growth (SPRAWL)• Structural Economic Change: Tobacco/ Textiles/

Coal/ Furniture

• Stable Revenues/ Economic Development Marketing – improving

Virginia’s Challenges, cont’d

• Politics/Reputation: Stability and a degree of collegiality – improving

• Local Government Structure

• Gubernatorial Succession

• Dealing with History

• Disparity: Spreading the wealth

• Healthcare Costs and Availability

• Energy self reliance

Current Priorities

• Bipartisan Leadership/ Business Leadership/LEADVA

• Dedicated Transportation Revenue Stream• Federal Issues: Health Care, EFCA, Cap

and Trade, CFPA• Fiscal Stability• Workforce Development System• Energy

Leadership• Many Faces• Integrity• Loyalty• Service• Team Sport• Sacrifice

Virginia

Conclusion

Virginia remains an outstanding location in which to do business. Nevertheless, without significant investment in infrastructure and some modernization of its public policy framework, it will fall short of its substantial potential.

Virginia’s Competitiveness in theGlobal Economy