GREATER RICHMOND
WHERE AMERICA’S BUSINESS BEGAN
Annual Report 2006-2007
LETTER TO INVESTORS
A Business Center for 400 Years
Virginia’s 400th birthday in 2007 is providing an opportunity to keynote Greater Richmond’s four centuries as a business center. “Greater Richmond: Where America’s Business Began” is the theme of a special Greater Richmond Partnership marketing campaign launched last winter. It ties events of 1607 to business sucJohn R. Nelson Chair
Top-rank recognition in the media here and abroad continues to focus on Greater Richmond
cess stories of today. At the same time, top-rank recognition in the media here and abroad continues to focus on Greater Richmond. One of the most noteworthy accolades this year
came from Foreign Direct Investment (fDi) magazine, a specialty business publication of London’s Financial Times group, which named Greater Richmond among the top five large metro areas in three categories in its first “North American Cities of the Future 2007/08” evaluation.
Gregory H. Wingfield President and CEO
Among other initiatives this year, an expanded emphasis has been put on assistance to existing businesses, an important growth engine. The Partnership launched Business First – Greater Richmond in cooperation with the economic development offices of Richmond, Chesterfield, Hanover and Henrico and the Greater Richmond Chamber. The initiative is coordinated by a new Partnership vice president of existing business services. It intensifies business-assistance initiatives that have been in place for a number of years.
John R. Nelson Chair Greater Richmond Partnership, Inc.
Gregory H. Wingfield President and CEO Greater Richmond Partnership, Inc.
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WHERE AMERICA’S BUSINESS BEGAN
Marketing Four Centuries of Success
A reconnaissance party financed by English investors knew a good business location when they saw it. They arrived at the site of present-day Richmond in late May, 1607, within days of their arrival at Jamestown. In the words of one member of the party, they found a place where “ships of great burthen may harbour in saftie.” William Byrd II, long known as the “father” of Richmond, saw the site as an ideal location for the founding of what he termed a “mart” where “the Traffick of the Outer Inhabitants must Center.” This wasn’t news to the native Algonquians. For it was here that they had established a village that was the home of “Little Powhatan,” the son of the great chief who ruled over some 30 tribes and 161 villages. Greater Richmond’s 400-year success story is providing a perfect framework for a special, year-long Partnership marketing program keyed to the theme “Greater Richmond: Where America’s Business Began.” One ad, for example, features Greater Richmond’s 13 Fortune 1000 companies which, like Native Americans before them, have helped to turn the region’s strategic location into “a bustling trade center.”
Print ads ran in regional magazines and newspapers.
The Scope of the Campaign Includes:
Billboards
Billboard and banner placements are in major-metro executive air terminals where they will be seen by corporate decisionmakers. These executive terminals include those in Washington, New York, Boston, Hartford, Philadelphia and Miami.
TV Spots
Television spots ran on the NBC network during the nationwide television coverage of the U.S. Open Cycling Championship. They also are slated to run in the Philadelphia airport and on the CNN Airport Network. The commercials are in 30- and 60-second formats.
30- and 60-second television spots ran during national and local programming.
Print Ads
The campaign includes three ads designed for magazines and special placements. Regionally, the ads have appeared in magazines including Virginia Business.
Public Relations and Direct Mail
Direct mail is targeted to current Partnership prospects and site-selection consultants. A public relations component of the campaign this fall will be aimed at MBA students.
Wall wrap in Boston Logan International Airport
Websites
“Gateway” ads, PodCasts, pop-up splash ads and banner ads are featured on the websites of key economic development and site-selection magazines, including Site Selection, Business Facilities and Expansion Management.
Trade Show Displays
Special self-standing displays featuring campaign graphics and messages are in use at trade shows and target-industry expos.
Animated banner ad on Business Facilities’ website: www.businessfacilities.com
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ACCOLADES 2006-2007
Greater Richmond Firsts: A Mix of History & High Technology
First Hospital - In 1611, America’s first hospital, a “guest house for sick people,” was built at Henricus, the Richmond area’s first major English settlement. First Tobacco - John Rolfe planted the first crop of tobacco just east of Richmond in 1612, after observing Native Americans cultivating tobacco. First University - In 1618 the first university was chartered at Henricus. First Iron - In 1619, the nation’s first ironworks were established at Falling Creek in Chesterfield County. First Coal - The nation’s first coal mining began in the mid1700s in the Richmond area. Oldest Medical College Building in the South - The South’s oldest medical college building is the Egyptian Building of Virginia Commonwealth University’s School of Medicine, built in 1845. First Electric Streetcar - In 1888, Julian Frank Sprague put into operation the first commercial streetcar system powered by overhead electric lines from a central station. First Cellophane - DuPont produced the nation’s first cellophane in Richmond in 1930. First TV Station in the South - In 1948 Richmond’s WTVR, Channel 6, CBS affiliate became the first TV station in the South. First Clinical Transplant Center - In 1962, MCV Hospitals opened the first Clinical Transplant Center (CTC), which remains the oldest unit of its kind in the United States.
Still A Prime Place After 400 Years
Tops Among “Cities of the Future 2007/08”
Foreign Direct Investment (fDi) magazine, an international specialty publication of the United Kingdom’s Financial Times group, ranks Greater Richmond among the top five large metro areas in three categories in its “Nor th American Cities of the Future 2007/08” evaluation which was announced in the magazine’s April/May 2007 issue. Categories in which Greater Richmond placed among the top five are “Best Development Practices,” “Best Human Resources” and “Quality of Life.”
only state to make the top 10 in all six major categories used to determine the rankings. The magazine examined business costs, the labor market, the economic climate, growth prospects, quality of life and regulatory climate.
A Great Place to Find a Job
Greater Richmond is the sixth best city to get a job in, according to a study of the nation’s 100 largest metro areas by Forbes.com (July 2006). The study looked at five factors: recent unemployment rates, cost of living, median household income, job growth and income growth over a five-year period.
“Hot” Metro for Expansions, Relocation
Expansion Management magazine (April 2007) rates Greater Richmond as one of the “50 Hottest Cities” for expanding and relocating companies. The rating is based on a poll of 80 site-selection consultants who were asked to consider all of America’s 362 Metropolitan Statistical Areas (MSAs).
MeadWestvaco Is Newest Fortune 500 HQ
Fortune magazine (April 2007) credits Greater Richmond with seven Fortune 500 headquarters. MeadWestvaco, which moved its corporate headquarters from Stamford, Connecticut, to Greater Richmond last year, is the latest addition to the list. The other firms are Dominion Resources, Genworth Financial Great for Business and Careers (new to the list last year), Circuit City Stores, Forbes (April 5, 2007) ranks the region as No. 14 out Performance Foods, CarMax and Owens & Minor. of 200 large metro areas in its annual “Best Places for Among metropolitan areas with more than five Fortune 500 headquarters, Greater Richmond has the secondBusiness and Careers” survey. highest number per capita in the nation. A total of 13 Five-Star Metro for Knowledge Workers Greater Richmond-based companies made this year’s Greater Richmond is ranked by Expansion Management (April larger Fortune 1000 list. In addition to the above, they 2007) as a five-star metro area for knowledge workers. are LandAmerica Financial, Universal, Brink’s, Markel, Albemarle and Massey Energy.
Great Place for Creative People
Southern Business & Development magazine (Winter 2007) ranks Greater Richmond among the South’s top Virginia leads the nation in the creation of technology 10 places for the creative class. jobs, according to Cyberstates 2006, an annual report by AeA, the nation’s largest trade association for the Region Rated One of Nation’s Most Competitive high-tech industry. Virginia ranks second in high-tech job concentration, another growth measurement. The Greater Richmond is the 12th most competitive of the nation’s 50 largest metro areas, according to the report found that 88.6 of every 1,000 private sector latest Metro Area and State Competitiveness employees in Virginia work in a technology industry. Report released by Beacon Hill Institute in Boston. The report evaluates 37 measurements, including Virginia is No. 11 in Downloading Speed government and fiscal policies, security, infrastructure, human resources, technology, business incuba- The Communications Workers of America union, analyzing results of more than 80,000 users, ranks Virginia as tion, openness and environmental policy. the nation’s 11th-fastest state for downloading files on Virginia Is No. 1 Place for Business the Internet. The study, released in June 2007, places Forbes (August 2006) ranks Virginia as No. 1 on the Virginian’s downloading speed at 2.39 megabits, commagazine’s “Best States for Business” list. Virginia is the fortably ahead of the U.S. average of 1.97 megabits.
Virginia Leads in High-Tech Jobs
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CASE STUDIES 2006-2007
Knight Transportation
The Greater Richmond Partnership’s marketing outreach activities are guided by eight targeted business clusters that focus on the strengths and assets of the regional economy. One important sector is logistics and supply chain management. In late 2005 and 2006, a local telemarketing and business intelligence company, 310 Marketing, was retained to conduct a national outreach program to contact decision makers in the logistics sector. Serving as representatives of the Partnership, these interviewers sought to identify companies that were actively looking to expand in the mid-Atlantic. At the same time, questions were crafted to elicit insights into industry trends and perception and knowledge about Greater Richmond. During this campaign, direct contact was made with Knight Transportation, Inc., a short- to medium-haul, truckload carrier headquartered in Phoenix. In the summer of 2006, a conference call was arranged between the Knight representative and Partnership staff. This preliminary exchange of information led to a mutual decision that further communication might occur in the next six to 10 months as the company refined its plans and schedule. In February contact was reestablished and the corporate official indicated that Greater Richmond was on a short-list of expansion locations. Descriptions of the physical requirement and human resource needs were provided and a preliminary scouting trip was set up for early March by the Partnership staff. Locations were visited in all four jurisdictions. A return trip was arranged by the Partnership two weeks later when the Facility Operations Manager out of Phoenix visited to make a final selection. After zeroing in on two prime candidates, a site was selected in Chesterfield County at the Sustainability Park. This location will include a customer service center and will be home base for up to 100 drivers. Knight, a NYSE listed company, is recognized as a leader in its industry and a highly desirable employer. Because of its decentralized operations structure across the U.S., drivers are able to make shorter deliveries and end up at home more nights of the week. The upside for the Greater Richmond facility is bright. Over the coming years, other business units and functions will likely be added to the Chesterfield facility. This critically important link in the supply chain also strengthens the area’s attractiveness to existing and new business.
Greater Richmond Firsts: A Mix of History & High Technology
First Recyclable Can Reynolds Metals Company (now Alcoa) developed the recyclable all-aluminum can in 1963 in Richmond. First Transplant Matching System In 1969, MCV Hospitals and Duke University collaborated with six other regional medical centers to establish the Southeastern Organ Procurement Foundation (SEOPF), which became the nation’s first computerized donor-recipientmatching system for kidney transplants. First ISDN Phone Service C&P Telephone (now Verizon), then headquartered in Richmond, pioneered the nation’s first commercial (nontrial) Integrated Services Digital Network (ISDN) in 1988. First Forensic DNA - In 1989, Virginia’s Department of Forensic Science was the first state laboratory to offer DNA analyses to law enforcement agencies and the first to create a DNA databank of previously convicted sex offenders. First Undergraduate Engineering Consulting Group ChemEngine, the first and only undergraduate engineering consulting group in the nation, started in the summer of 1999. Since then, student-consultants have been solving real technical and engineering problems for real companies, for pay. First Artificial Heart Transplant on the East Coast - In April 2006 VCU’s Pauley Heart Center performed the first artificial heart transplant on the East Coast.
United Kingdom Initiative
The Partnership has undertaken a very aggressive and focused marketing campaign in the United Kingdom for the past three years. One result of this initiative is a close working relationship with our economic development counterparts in Great Britain. Greater Richmond is now working to broker trade relationships between interested U.K. small and medium size businesses and area companies interested in international opportunities. Several trade missions from the U.K. visited central Virginia during the past few months and new business partnerships are being created that result in new jobs and sales on both sides of the pond. A testimonial to this effort by one recent participant follows. “I was very nervous as this was my first ever Trade Mission. I found GRPVA very professional in the appointments that were organised for my colleagues and me and the care that was taken in making sure that we got to our respective destinations on time and in collecting us. I felt as though a lot of effort had been made to understand my business needs and set up the right appointments. I realise that a lot of organisations can provide this level of professionalism and I know that Southern hospitality plays a part but I came away feeling that everyone, from the very charming receptionist to the President had put in a tremendous amount of effort to make sure our trip was successful. I also got the impression that everyone was pulling together and it truly was a well organised, well oiled team effort. I would warmly recommend the GRPVA to any business interested in forging a bond with businesses in Virginia.”
Romilla Ready, Co-Author of Neuro-linguistic Programming for Dummies® - the best selling 'for Dummies®’ title in the UK
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MARKETING GREATER RICHMOND
Marketing Data
Trade and Industry Expos with VEDP and Other Allies
Number of Contacts Data Center World Conference Council for Supply Chain Management CoreNet Global World Congress - Orlando Mid-Atlantic BIO-MED NASFT Fancy Foods 2007 Photonics West 2007 BIO 2007 International Convention Hannover Messe Logistics and Supply Chain Forum 18 38 27 44 41 28 22 38 44
Strategy Targets Prospects Worldwide
Marketing Missions and Seminars
The Greater Richmond Partnership’s popular “Invest in America” and “Profit in America” seminars, presented this year in China, India, the United Kingdom (eight U.K. seminars in five days), Germany and Italy, continue to attract large groups of potential prospects. Overseas marketing missions during the year targeted these same countries. A Far East trade mission to India, as part of a team organized by Governor Kaine, was the region’s first to that country. Trade shows, special events and sales call here and abroad often are team efforts that involve Partnership and city, county and/or state economic development professionals and, depending on circumstances, elected leaders and business executives and the Partnership’s overseas consultants as well.
Communications
A special “Greater Richmond: Where America’s Business Began” marketing campaign, which takes advantage of the 1607-2007 celebration, was developed and launched on print, electronic, airport terminal, and trade show platforms. Updated and expanded versions of Technology in Greater Richmond and U.S. Start-Up Model for International Firms were published in 2006-2007, as were new editions of the Partnership’s Economic Development Services and Information Resources tri-fold brochures. A new edition of the Viewbook, the Partnership’s quality of life publication, and a new education brochure are in development. The Envoy continued to provide a quarterly update on Partnership activities for investors and elected officials. Media coverage during the year included USA Today, newspaper interviews in Germany, Italy and England and stories in site-selection publications.
Marketing Missions (International and U.S.)
Number of Contacts New York City/Connecticut 16 Atlanta Marketing Mission 9 California Mission 14 Washington, D.C./Maryland (Fall) 11
Special Marketing Events & Projects (U.S. & Abroad)
Number of Attendees Invest in America – Karlsruhe, Germany 22 Invest in America – Bologna, Italy 14 Profit in America – U.K. (Fall-3 cities) 42 Auto Parts Suppliers/Chinese – Reception 25 Invest in America – China 111 Profit in America – U.K. (Spring-5 cities) 69 Maryland Bio-Sciences Program & Reception 37 Invest in America – Hamburg, Germany 18 India Presentations and Receptions 430 Virginia Chamber of Commerce Report to Top Management – Atlanta 150
WORKMAGAZINE
WORKMAGAZINE, published by Palari Publishing in association with the Partnership, continues to grow in readership and circulation and is an effective way of spotlighting the vitality and diversity of people and businesses in Greater Richmond. All four issues during the year included special Downtown Richmond Creative WORKSPACE sections prepared under the aegis of Venture Richmond and the City of Richmond Department of Economic Development.
Electronic Communications Enhanced
A “Business Report Builder” feature was added to the Partnership’s website. It offers a consolidated menu of things needed by site-selection consultants to prepare a site evaluation analysis, is userfriendly and saves a lot of searching online. The Partnership’s economic development channel on Richmond.com was revamped. Electronic newsletters continued to be issued, including Working Capital (for the finance, securities and insurance industry), BioSynthesis (life sciences), Catalyst (advanced materials and specialty chemicals) and Logistics. Corporate Headquarters Capital, focused on corporate and division headquarters, was launched as a fifth industry cluster newsletter and website this year. The Partnership’s e-newsletter, grpva.comment, continued to go out regularly to thousands of addressees, including prospects and site-selection consultants.
Marketing Missions (International and U.S.)
Yorkshire and the Humbers Kent/Essex Counties Number of Contacts 7 26
On-Site Prospect Visits
The Partnership maintains contact with more than 600 prospects, site-selection consultants and real estate brokers worldwide. On-site prospect visits are arranged by the Partnership. Itineraries usually begin with a regional overview in the Partnership’s briefing center, with economic development professionals from all jurisdictions participating.
Website Statistics
grpva.com Monthly Average of Unique Visitors 2,000
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RELOCATIONS & EXPANSIONS 2006-2007
Biagi Bros.
This nationwide transportation and warehousing company headquartered in Napa, California, opened an 80,000-square-foot, $1.6 million logistics center in the Fairgrounds Industrial Park in Henrico County. The facility opened initially as a distribution center for Mexican beer. As many as 20 rail-cars of beverages can be processed daily at the center which serves the mid-Atlantic region. Biagi Bros. has 15 distribution centers, 2.3 million square feet of food-grade warehouse space in 10 states and a fleet of more than 300 trucks and tankers. Primarily associated with the beverage industry, the family-owned firm provides inter/intra-state common, liquid and bulk freight services. A major customer is Anheuser-Busch, including its Williamsburg facility. The company was assisted in the location of the logistics center here by the Greater Richmond Partnership, Inc. and the Henrico County Economic Development Authority. MeadWestvaco’s 250,000- to 300,000-square-foot corporate headquarters on a four-acre site in Foundry Park next to the Federal Reserve building. The headquarters will have eight to 10 floors and a capacity to house 1,000 employees. The company moved from Stamford, Connecticut, to Greater Richmond in 2006 after its relocation team spent more than a year studying various sites around the country. Diligent private-sector and government economic development efforts at all levels played a key role in the company’s decision to locate here. MeadWestvaco is in temporary facilities pending completion of the new headquarters. “With all of the energy and excitement downtown, it will be a perfect place for the company,” says John A. Luke, Jr., MeadWestvaco chairman and CEO.
W. M. Jordan Company
The company provides construction management, pre-construction services, design/build services and general contracting to a diverse clientele across Virginia. The continued growth of commercial development in the region prompted W.M. Jordan to consider expansion plans. But where? “We contacted the Greater Richmond Partnership, and the process led us right back to our current location in Manchester because of the overwhelming advantages we have here,” says Chuck McCarthy, Richmond division vice president. “At that stage, we began working closely with the City of Richmond’s Economic Development Office to help us move the project forward and we consider them an important part of our team.” The result will be a doubling in size of the company’s current building and will encompass a facility that stretches from Bainbridge to Hull streets along Commerce Road. “The project is as much about our company’s commitment to Greater Richmond as it is about expanding our building and workforce,” says John Lawson, president.
More Relocations & Expansions
Rheingold GmbH, a German manufacturer of laminated staircase-renovation material, has opened a distribution center and headquarters for its U.S. subsidiary, Rheingold, Inc., in the Byrd Center Business Park. The company’s laminates can be used to enhance old staircases made of wood, stone and concrete. HCA Richmond Health System has announced it is adding 120 new jobs to its patient-account service center in the Boulders office park in Chesterfield County as the result of a consolidation move. “The work environment and cost structure of operations in our Richmond service center made it attractive to relocate more of our financial functions to the Richmond area,” said Patrick Farrell, HCA Richmond president. Bass Pro Shops plans to open a superstore in Hanover County next year. The Hanover store, which is expected to create 300 jobs, will be the anchor tenant of a 186.5-acre entertainment and retail development off I-95 at the Lewistown Road interchange. The complex also will include a hotel and an Islamorada Fish Co. restaurant. Philip Morris USA plans to invest $230 million in its Richmond cigarette-manufacturing center as the result of the closing of the company’s North Carolina plant and consolidation of manufacturing operations here. Employee transfers could be in the hundreds. 7
MeadWestvaco Corporation (New Headquarters)
The downtown riverfront is in the process of gaining a new Fortune 500 company with the construction, now underway, of
EVENTS, MISSIONS & SEMINARS 2006-2007
Greg Wingfield is joined by Grace Zhang, the GRP Chinese consultant, at the wrap up of a “Profit in America” seminar in Beijing, China.
The Greater Richmond Team, composed of Grace Zhang, Fred Agostino, Toney Hall and Greg Wingfield, is joined by seminar participants at a Shanghai December 2006 marketing event. Partnership President Greg Wingfield and Paul Wookey, Chief Executive of Locate in Kent, sign a memorandum of understanding as their staffs look on.
Former Partnership Chair Robert Grey joins Governor Tim Kaine at the MeadWestvaco groundbreaking in May 2007.
Pictured above are Partnership allies in Mumbai, India, from left to right, Thomas Capozzi, Virginia Port Authority; Paul Grossman, Virginia Economic Development Partnership; Pat Gottschalk, Virginia Secretary of Commerce and Trade; and Toney Hall, Henrico County Economic Development Authority.
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Annual Report 2006-2007
Stay Here. Grow Here.
That’s the message carried by Business First Greater Richmond – the enhancement of the long-running business visitation program that has touched more than 3,000 businesses over the past seven years. This regional initiative is supported by the economic development offices in the counties of Chesterfield, Hanover and Henrico and the City of Richmond, the Greater Richmond Chamber, the Greater Richmond Partnership, Inc., and numerous volunteers from the business community. Changes made to the program in 2006 make it an even more valuable resource for participating companies and give local partners greater insight into the attitudes and opinions of businesses in the region. A new network of referral partners is poised and actively working to help solve business problems, remove barriers to growth, and provide direct assistance to firms in need. Exciting changes from previous years’ programs include a new way to collect information. As such, year over year comparisons will not be available until next program year. This annual report is intended to give a thumbnail view of the regional business environment as expressed by the business owners and CEOs in more than 300 face-to-face interviews conducted throughout the region. The data is presented in aggregate.
What We Learned
The Richmond region continues to be a great place to do business. In fact, more than 90% of all respondents rated the business climate as Good or Excellent, and it’s clear the majority feels that trend will continue into the future. Of those surveyed, one in three companies has definite plans to expand their business, and collectively this group plans to create 811 new jobs over the next 12 month period. The Business First Greater Richmond team is committed to supporting these exciting plans for growth in the future and using the information collected during this process to build an even better business climate in the Greater Richmond region.
Representing the City of Richmond, Chesterfield, Hanover and Henrico counties
Area Business Leaders Share Their Insight
Who We Talked To Since October 2006, more than 320 firms have been interviewed across the region. These companies represent more than 13,000 employees, or about 2% of the total labor pool. The group is diverse as indicated by the chart below. In terms of total employment, the largest groups represented were those in the manufacturing and business services sectors.
Manufacturing 16.1% Business Services 21.8%
Their Workforce The whole is more than the sum of its parts, and there were many positive things said about the quality of the parts that make up the workforce in the Greater Richmond region. Sixty-nine percent of the respondents ranked Workforce Quality as Good or Excellent. Recruitment was mentioned as a challenge by more than 100 firms and in a region with an unemployment rate Construction under 3%, it’s not surprising. This chal10.4% lenge was not unique to any specific Finance, industry. It was expressed by a wide Industry Utilities Construction Manufacturing, (food, beverage, etc.) Manufacturing, (wood, paper, etc.)
variety of firms, from construction companies to health care facilities. Employment growth is projected for the vast majority of the industry sectors in the region, with the fastest growth anticipated in health care, construction, manufacturing, and financial services. The chart below shows the annual percent increase in employment as stated by the companies interviewed. Their Space Growth brings challenges. Two areas where firms are feeling the squeeze is in their utilization of equipment and facility. Approximately Anticipated Employment Change 2% 11% 10% 2% 6% 6% 3% 2% 4% 8% 11% 4% 3% 6% 5% -6% 25% 0% 4% 6%
Transportation & Warehousing 2.8% Arts, Entertainment, Retail Trade Food & Lodging Information 9.5% 3.5% Education Utilities 1.9% Other & Health 0.3% Services Care 4.4% 3.2%
Insurance & Real Esatate 14.2% Wholesale Trade 12.0%
Manufacturing, (primary and fabricated metal, etc.) Wholesale Trade Retail Trade, (motor vehicle, furniture, etc.) Retail Trade, (sporting goods, book, music, etc.) Transportation and Warehousing, (air, rail, truck, etc.) Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support; Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration)
More than 65% of the companies visited are headquartered in the Richmond region. That gives these business leaders a unique perspective and special commitment to the community. The average firm interviewed had 40 employees, although this program year included firms as small as one and as large as 900. More than 80% of firms identified their primary product or service as Emerging or Growing, indicative of a vital and vibrant group of companies. Fifty percent predicted sales growth in excess of 10%. This builds on a strong positive trend with 75% of firms stating sales had increased over the previous 12 month period.*
* These figures do not include Henrico County.
60% of respondents indicated that they were using more than 90% of their capacity in both areas .* Area economic development staff and Business First Team members are working with these companies to assist them in evaluating their options for the future. One hundred seven companies have definite plans to expand. Many can do so in their current location, but others are being assisted in identifying new buildings or land for new construction. The Business Climate Interviewed firms feel that the Greater Richmond region’s business climate remains a strength. Area businesses were asked to rank a number of variables, from state and local taxes to utility services provided. Local government operations and the services they provide received high marks. The rankings revealed several opportunities to improve service delivery as well. Most surprising were the relatively low rankings for broadband and high speed internet access. Specific concerns surrounded both the availability and reliability of service. This was obviously a concern for many of the firms interviewed and more research is being done to better evaluate the infrastructure in this area. The Greater Richmond region is fortunate to have a strategic location. Area firms were asked to comment and rate a number of different transportation modes – ground, rail, water and air. Area businesses rated the Richmond International Airport very high. Eighty percent ranked it as Good or Excellent, and comments expressed by those interviewed highlighted the fact that this regional transportation asset is much improved both in the quality of the facility and the cost of travel. On the inverse, area employers expressed some level of dissatisfaction with the other modes of public
* These figures do not include Henrico County.
transportation, commenting on how the lack of available service limits their ability to recruit employees. Quality of Life The Greater Richmond region’s impressive array of cultural and recreational opportunities ranked high with area CEOs and business owners. The region’s education system, particularly the offerings at area
colleges and universities and K-12 primary education, received high marks. Technical school offerings ranked slightly lower. Approximately 80% of the respondents felt that the region’s housing offerings were Good or Excellent. It is clear area businesses value a region where they and their employees can live, work, play, and grow.
Opportunities
This year’s outreach effort revealed a number of opportunities to directly assist companies and to focus efforts on regional business issues, such as ensuring access to a sufficient pool of quality labor and gaining a better understanding of the region’s transportation needs and the important role transportation plays for area companies. The team is working to identify ways to more quickly connect area employers with qualified job seekers to lower the overall cost of recruitment and time to hire. A first step was the distribution of the comprehensive Workforce Services Directory. Work continues as the team evaluates recruiting needs by industry and works with the appropriate team of employers, training providers, and workforce agencies. Business First Greater Richmond recognizes the important role existing industry plays in the future of the Greater Richmond region. More than 80% of all new investment and new job creation is expected to come from this group of firms who already call the region home. The continued success of the regional economy is directly related to the success of these firms. Providing assistance at the firm-level and identifying and addressing common barriers to business growth are two important goals for the program. Working together, the economic development offices in the City of Richmond, the counties of Chesterfield, Hanover, and Henrico, the Greater Richmond Chamber, the Greater Richmond Partnership Inc., and dozens of other program partners are striving to create an even better environment. Thank you to all the companies who have participated. If your company would like to request an interview or learn more about this initiative, visit the program website at www.businessfirstrichmond.com or contact the local representative for your community.
Program Partners
| chesterfield
Karen A. Aylward Phone 804-748-3963 karen@chesterfieldbusiness.com
| hanover
Karen Epps Phone 804-365-6464 ktepps@co.hanover.va.us
| henrico
Leonard Cake Phone 804-501-7654 leonard@henrico.com
| richmond
Sheila H. Shepperson Phone 804-646-5491 shepperson@ci.richmond.va.us
For More Information
Debbie Jackson Program Manager Greater Richmond Chamber P.O. Box 1598 Richmond, VA 23218-1598 Phone: 804-783-9316 Email: debbie.jackson@grcc.com Website: www.grcc.com Sara Dunnigan Vice President, Existing Business Services Greater Richmond Partnership, Inc. 901 East Byrd Street, Suite 801 Richmond, VA 23219 Phone: 804-643-3227 Email: sdunnigan@grpva.com Website: www.grpva.com
www.businessfirstrichmond.com
In August 2006, the Partnership hosted a tour of the Virginia Historical Society’s new exhibit “Virginians at Work” for staff of the Virginia Economic Development Partnership.
A replica of the “Godspeed,” one of the three ships that brought the first English settlers to Virginia, docked in Greater Richmond along with other tall ships on May 23 as part of the celebration of the 400th anniversary of the arrival of the first English explorers at the site of present-day Richmond in 1607. A reception and tours of the ship were part of the Greater Richmond Partnership’s “Where America’s Business Began” marketing program.
During the Partnership’s 2006 annual meeting held at Philip Morris’ headquarters, Chairman Manoli Loupassi presents Jon King with a notification that a check to the Virginia Foodbank was made in his name.
Gene Winter, Partnership Senior Vice President (far left) and Pete Boisseau of Richmond Region 2007 (far right) welcome two guests from the United Kingdom at the Partnership’s “Where America’s Business Began” reception.
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PROSPECT ACTIVITY 2006-2007
New Prospect Activity 2006-2007
This year, the Partnership handled 112 new leads in addition to the 368 active prospects from the previous year. 45% of those leads came from companies located outside of the United States, particularly from Asia and Europe where there is a marked increase in activity compared to last year. Of those new leads, 16.1% located in the Greater Richmond Region. More than 60% of those new leads are still being actively managed by Partnership staff.
STATUS
SOURCE OF LEADS
Active Prospects
The Partnership begins the year with 342 active prospects, down slightly from 2006. Of those currently active, the largest business functions represented are manufacturing, distribution and business office uses. The primary lead source for currently active prospects is fairly equally distributed in five major categories. Partnership led activities – marketing and overseas trade missions, industry trade shows, and direct company contact – account for more than 60% of that total.
ORIGIN OF LEADS
SOURCE OF LEADS
BUSINESS FUNCTION
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REPORT CARD: FIVE-YEAR GOALS & ANNUAL GOALS
July 1, 2004 to June 30, 2007
Goals (Annual)
10,000 new primary jobs (2,000 per year) $1.5 billion capital investment ($300 million per year) 25 new foreign-affiliated companies (5 per year) 125 domestic companies* (25 per year) Place 50 media messages (10 per year) 500 existing companies provided with expansion assistance (100 per year) Counsel 2,500 small businesses (500 per year) Training for 10,000 business owners (2,000 per year) Information for 25,000 business owners (5,000 per year) 1. Retain 1,500 jobs (300 per year)** 2. Create 1,250 jobs (250 per year)**
* Company may be counted more than once if it has multiple projects in several localities. **Data collected from semi-annual surveys covering Jan-June and Jul-Dec.
Achieved 2004-2007
4,165 $1,049,378,775 8 47 56 398 1,638 9,633 18,146 1,128 773
% of Five-Year Goals
42% 70% 32% 38% 112% 80% 66% 96% 73% 75% 62%
ASSISTED COMPANIES: NEW & EXPANDED
Companies Assisted by the Partnership 2006-2007
Company
Bass Pro Biagi Bros. ClearPoint Resources Curry Pharmaceuticals Guardian Horse Bedding HCA IBA Molecular* Knight Transportation Konica Minolta* Lestoni, Inc. Life for Kids MDS Pharma* MeadWestvaco Midwest Proteomics Palaxar, Inc. Plastics Processing Resort Hotel Association Rheingold USA*
Jobs
300 20 3 2 6 130 2 100 10 2 2 80 200 3 12 20 15 2
Investment
$25,000,000 $1,060,000 $7,116 $15,277 $1,400,000 $750,000 $4,300 $2,000,000 $0 $1,500 $1,200 $2,000,000 $100,000,000 $1,500 $0 $1,100,000 $0 $317,000
Location
Hanover Henrico Richmond Richmond Chesterfield Chesterfield Richmond Chesterfield Henrico Richmond Richmond Richmond Richmond Richmond Richmond Richmond Richmond Henrico
Date
Oct. 2006 Sept. 2006 August 2006 Feb. 2007 Dec. 2006 June 2007 Nov. 2006 June 2007 August 2006 Feb. 2007 Oct. 2006 June 2007 Feb. 2007 Feb. 2007 Dec. 2006 June 2007 June 2007 Sept. 2006
Total
909
$133,657,973
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Employment and investment figures shown only where available. *Foreign-affiliated firms.
OFFICERS & BOARD 2006-2007
Mission Statement
The Greater Richmond Partnership, Inc.
To help grow the Greater Richmond economy through the attraction of high quality jobs and new capital investment, the retention of existing businesses, and the continued improvement of the region’s business climate.
Board of Directors
Katherine Busser Senior Vice President Capital One Marjorie M. Connelly CEO and President Business Services Group Wachovia Securities David A. Kaechele Board of Supervisors Henrico County John R. “Jack” Nelson President Operations and Technology Philip Morris USA William Pantele President, City Council City of Richmond Jackson T. Ward Board of Supervisors Hanover County Arthur S. Warren Board of Supervisors Chesterfield County Katherine M. Whitney Director Warren Whitney & Sherwood
Officers
John R. “Jack” Nelson Chair David A. Kaechele Vice Chair Gregory H. Wingfield President and CEO Lillie B. Stratton Corporate Secretary
Board Alternates
James W. Dunn President Greater Richmond Chamber Cecil R. Harris, Jr. County Administrator Hanover County Virgil R. Hazelett County Manager Henrico County Lane B. Ramsey County Administrator Chesterfield County Robert S. Ukrop President and CEO Ukrop’s Super Markets, Inc.
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CHAIRS OF THE GREATER RICHMOND PARTNERSHIP, INC.
1994-1995 to 2006-2007
The Partnership’s Board of Directors is composed of four public-sector members and four private-sector members. Year-to-year, leadership alternates between the sectors.
1994-1995
William T. Bolling Hanover County Board of Supervisors
1999-2000
Robert J. Grey, Jr. Hunton & Williams
2004-2005
Arthur S. Warren Chesterfield County Board of Supervisors
1995-1996
Phyllis Cothran Trigon Blue Cross Blue Shield
2000-2001
David A. Kaechele Henrico County Board of Supervisors
2005-2006
Marjorie M. Connelly Wachovia Securities
1996-1997
Harry G. Daniel Chesterfield County Board of Supervisors
2001-2002
James C. Cherry Wachovia Bank, N.A.
July 1, 2006 December 31, 2006
G. Manoli Loupassi City of Richmond City Council
1997-1998
Frank B. Bradley III Bradley Properties LLC
2002-2003
Jackson T. Ward Hanover County Board of Supervisors
January 1, 2007 June 31, 2008
John R. “Jack” Nelson Philip Morris USA
1998-1999
John A. Conrad City of Richmond City Council
2003-2004
Robert S. Ukrop Ukrop’s Super Markets, Inc.
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FINANCIAL INFORMATION 2006-2007
Balance Sheet as of June 30, 2007
ASSETS Current Assets (Cash) Other Assets (Investments) Total Current Assets Fixed Assets Other Assets - Intangible Accumulated Amortization TOTAL ASSETS LIABILITIES AND EQUITY Total Current Liabilities EQUITY TOTAL LIABILITIES AND EQUITY $589,026.45 1,480,496.93 2,069,523.38 55,666.53 (50,000.00) 2,075,189.91
278,381.54 1,796,808.37 $2,075,189.91
Financial Statement Comparison
Budget FY2007 INCOME Private Contributions Chesterfield County Hanover County Henrico County City of Richmond Reserve Fund Interest Income TOTAL: EXPENSES Administration Marketing and Recruitment Activities 2007 Promotion Flexibility Program Workforce Preparedness Initiative (Chamber) Existing Business/Retention Program (GRP & Chamber) Small Business Development Center (Chamber) TOTAL: $1,560,000.00 390,000.00 390,000.00 390,000.00 390,000.00 250,000.00 3,370,000.00 Actual FY2007 $1,560,000.00 390,000.00 390,000.00 390,000.00 390,000.00 71,092.67 3,191,092.67
1,592,754.00 812,500.00 250,000.00 25,000.00 186,461.00 137,396.00 365,889.00 $3,370,000.00
1,420,133.11 859,661.79 188,166.60 35,000.00 170,922.62 140,392.69 344,564.88 $3,158,841.69
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INVESTORS 2006-2007
PUBLIC SECTOR
City of Richmond County of Chesterfield County of Hanover County of Henrico ColonialWebb Contractors Control Dynamics, Inc. Costen Floors, Inc. CRT/tanaka Davenport & Company, LLC Diamond Springs Water, Inc. Ditch Witch of Virginia Dominion Dominion Realty Partners, LLC Draper Aden Associates E.A. Holsten, Inc. East West Partners of Virginia Edloe’s Professional Pharmacy Ernst & Young, LLP Exclusive Staffing Companies First Capital Bank First Market Bank Froehling & Robertson, Inc. GENWORTH Financial, Inc. Grubb & Ellis/Harrison & Bates Gumenick Properties HCA Richmond Hospitals Highwoods Properties, Inc. Hilb Rogal and Hobbs Hirschler Fleischer Hourigan Construction Corporation Hunton & Williams J. Sargeant Reynolds Community College James River Heating and Air Conditioning Company, Inc. The Jefferson Hotel Jefferson-Jones, Inc. Jewett Machine Manufacturing Company Jones Realty and Construction Corporation KBS, Inc. Keiter, Stephens, Hurst, Gary & Shreaves Kjellstrom & Lee, Inc. KLEOS Magazine Korman Signs, Inc. KPMG LLP Kraft Foods Lamar Outdoor Advertising LandAmerica Financial Group, Inc. Lansing Building Products, Inc. LeClair Ryan Liberty Property Trust Long & Foster Real Estate, Inc. Luck Stone Corporation Markel Corporation Mattress King, Inc. McCandlish Holton, PC McGuireWoods LLP McKinney & Company Media General, Inc. Midlothian Enterprises, Inc. Mitchell Wiggins & Company, LLP Mooers Volvo Mutual Assurance Society of Virginia Napier Realtors ERA NewMarket Corporation The Old Original Bookbinders Restaurant Owens & Minor, Inc. Kings Dominion Patient First People’s Income Tax, Inc. Performance Food Group Company Philip Morris USA Pollard & Bagby, Inc. Porter Realty Company, Inc. PricewaterhouseCoopers LLP Provident Bank Prudential Slater James River Realtors Pruitt Associates, LLC Qimonda Rainbow Station, Inc. RBC Centura Bank ReedSmith, LLP The Retail Merchants Association Reynolds Development Richmond Association of REALTORS Richmond Coliseum/SMG of Richmond, Inc. Richmond Primoid, Inc. Richmond.com RSM McGladrey Ryan Homes S. L. Nusbaum Realty Co. S&K Famous Brands, Inc. Sands Anderson Marks & Miller Scott & Stringfellow, Inc. SERVPRO of Richmond, Inc. Shockoe Properties, Inc. Shoney’s and Captain D’s Restaurants Smith Barney Strange’s Florists & Garden Centers St. Christopher’s School SunTrust Bank Superior Sign Productions SuperValu Eastern Region The Supply Room Companies/ Mega Office Furniture Thalhimer/Cushman & Wakefield Thomas Rutherfoord, Inc. Thompson & McMullan Timmons Group TLA, Inc. Trammell Crow Company Transurban USA Tredegar Corporation Troutman Sanders LLP Tyson Foods, Inc. Ukrop’s Super Markets, Inc. Universal Leaf Tobacco Co., Inc. University of Richmond UPS UPS FREIGHT The Vectre Corporation Verizon Communications Virginia Air Distributors, Inc. Virginia Commonwealth University Virginia Credit Union, Inc. Visual Aids Electronics Corporation Wachovia Bank Wachovia Securities, LLC Warren Whitney & Sherwood Weinstein Management Co., Inc. M. H. West & Co., Inc. Whitlock Group Williams Mullen
PRIVATE SECTOR
Advantis, Real Estate Services Company Albermarle Corporation Alcoa Consumer Products Alfa Laval, Inc. Alloy Polymers, Inc. Anderson & Strudwick, Inc. Anthem Blue Cross Blue Shield Bank of America Base Camp Development Company/Chesdin Landing LLC BB&T of Virginia BCWH Architects Blackwood Development Company Inc. Bon Secours Health Systems, Inc. South Division Bradley Properties, Inc. Brandywine Realty Trust The Brink’s Company The Bull & Bear Club C. F. Sauer Company C. Porter Vaughan, Inc. Cantor Arkema, P.C. Capital Interior Contractors, Inc. Capital One Financial Corporation Capital Relocation Group, Inc. CapTech Ventures, Inc. Carmax, Inc. CB Richard Ellis CCA Industries, Inc. Centerpointe Associates Chasen’s Business Interiors, Inc. Cherry Bekaert & Holland, LLP Chesapeake Corporation Christian & Barton, LLP Cintas Corporation Cobb Technologies The Collegiate School Colonial Homecrafters, Ltd.
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United States
Gregory H. Wingfield, President & CEO 901 East Byrd Street Suite 801 Richmond, VA 23219-4070 Toll-free: 1-800-229-6332 Phone: 804-643-3227 Fax: 804-343-7167 Website: www.grpva.com
China
Dr. Kenneth Xu Mrs. Grace Zhang 3D, LLC 3781 Westerre Parkway, Suite F Richmond, VA 23233 Phone: 804-212-1433 Fax: 804-212-1426 E-mail: kenneth@3d-llc.com Website: www.3d-llc.com
United Kingdom
Andrew Harfoot Springboard Marketing Limited 1 Tonbridge Chambers Pembury Road Tonbridge, Kent TN9 2HZ Phone: 44-1732-363399 Fax: 44-1732-352304 E-mail: Andrew.harfoot@springboard-marketing.co.uk
Germany
Dr. Raimund Pflug Mrs. Edith Pflug Directors, European Operations Poststrasse 15-23 D-50676 Cologne, Germany Phone: 49-221-232602 Fax: 49-221-2407357 E-mail: pflug@grpeurope.de