Virginia Business

[vdogg]

Virginia named best state in the country for doing business.

The national press is learning what state business leaders have known for years: When it comes to nurturing economic growth, Virginia is on a roll. The commonwealth regularly woos businesses with its low corporate taxes, stable regulatory climate, strategic location to U.S. markets and a pipeline of educated workers.

[vdogg]

Virginia retail rebounds, takes on new look

The revival in Virginia downtowns from coastal Norfolk to mountainous Marion is a growing success story, despite one lagging component.

[wrldcoupe4]

Virginia will soon be welcoming yet another Fortune 500 HQ... Altria will be moving from its offices in NYC to Richmond as soon as next year.

[burt]

Richmond is about to snag its 8th Fortune 500 company. Altria, parent company of Phillip Morris USA, is selling off PM International, leaving New York City and setting up headquarters in Richmond. The NYCity office currently employs 600, but 400 will lose their jobs and the remaining 200 will be offered transfers to Richmond. Speculation is that the company planned the Richmond move months ago when an un-named corporation thru its contractors sought fast-track approval from Henrico County for an 8-story building in Reynolds Crossing. The site being developed off of West Broad Street near the I-64 interchange is across the road from Phillip Morris USA headquarters. Reynolds Crossing now has three buildings under construction -- the 8-story fast-tracked "mystery tenant" structure, a Bon Securs medical center and a Westin Hotel.

There is also rumor that Kraft, a spin-off from Altria, is investigating Richmond as a regional headquarters.

PM USA is closing down its Concord, NC plant and is offering its 2400 workers transfers to Richmond which will become the company's sole cigarette-making plant.

Fort Lee, a US Army Quartermaster unit near Petersburg, is doubling its size and will be home to about 15,000 personnel.

On the minus side, Wachovia Securities merged with A.G. Edwards brokerage firm in St. Louis and will vacate its space in Riverfront Tower East in downtown Richmond. Only about 500 of its 2600 employees will remain, leaving about 2000 jobless. Apparently only a handful will be offered transfers to St. Louis.

[burt]

Virginia will soon be welcoming yet another Fortune 500 HQ... Altria will be moving from its offices in NYC to Richmond as soon as next year.

Oooops! I just finished posting this in Virginia Off Topic thread.

And today (Friday) I see it has been moved. Thanks, vdogg.

[4307]

LOL you both posted within minutes of eachother. I hope that makes 10 for the region now?

[wrldcoupe4]

Yeah was kind of weird! I think it would be 8 actually... If LandAmerica could have stayed in the top 500 (they were like 520 this year) we'd have one more.

Dominion Resources

Circuit City

Genworth Financial

Meadwestvaco

CarMax

Performance Food Group

Owens and Minor

and soon

Altria

LandAmerica, Universal Corp, Brinks, Markel Corp, and Massey Energy round out the Fortune 1000's... used to have Overnite Transportation but they were bought out by UPS a year or two ago.

[Telmnstr]

Congrats Richmond! Interesting that there is such a large reduction in labor force for that company.

As far as unemployment statistics, I can't figure it out. On another board I read, someone made the comment "If the US Gov't currently used the same methods that ?Germany?Engalnd? used to calculate unemployment, we would be showing 8% or so."

But I didn't look into it any further. The majority of the people I know are employed, but my friends are more on the middle class of things. The few people I know that were lower we're really struggling... one was working 2 jobs to try to make his portion of rent and basic living costs. He finally got a job out of the area (something he has been hoping to get for a while) and now his pay will jump $4 and he gets a huge discount in living costs by moving about an hour and a half away.

I know that when I was unemployed, and 2 other friends were, none of us "counted" in those statistics. Realtors don't generally count, nor many of the types of jobs that are related to the housing boom.

[wrldcoupe4]

Congrats Richmond! Interesting that there is such a large reduction in labor force for that company.

The International segment was by far the largest portion of the company... spinning off PMInternational means they'll need less corporates at Altria.

[beltwayboy08]

http://www.washingtonpost.com/wp-dyn/conte...7090800162.html

the VW move to Virginia from michigan converstaion has been redirected here. Im not trying to interup any other conversations. to see what has happened in this conversation, look at the end of the "largest sylines in the state" thread.

[calwinston]

Virginia is currently ranked 8th in total number of Fortune 500 comapnies by state (20). Hopefully that will change in the next couple of years if we get the addition of Northrup Grunman and others.

http://money.cnn.com.../states/VA.html

http://www.virginiabusiness.com/index.php/news/article/20-firms-in-virginia-make-fortune-500-list/204003/

[calwinston]

Northrup Grumman HQ is moving from Los Angeles, CA to Northern Virginia next year.

Its really not that much of a surprise because of Virginia's lower corporate taxes and also the Pentagon being located in Arlington. Also 90% of Northrup Grumman's revenue is federal contracts. Big government all the way!

I find it funny that the CEO Wes Bush contacted Sen Mark Warner of the move to Virginia instead of Gov Bob McDonnell. Looks like Sen Mark Warner was the one instrumental in the process, while Gov Bob McDonnell stands by the wings and takes credit.

http://www2.timesdis...-184201/340155/

[VBIllini13]

Northrup Grumman HQ is moving from Los Angeles, CA to Northern Virginia next year.

Its really not that much of a surprise because of Virginia's lower corporate taxes and also the Pentagon being located in Arlington. Also 90% of Northrup Grumman's revenue is federal contracts. Big government all the way!

I find it funny that the CEO Wes Bush contacted Sen Mark Warner of the move to Virginia instead of Gov Bob McDonnell. Looks like Sen Mark Warner was the one instrumental in the process, while Gov Bob McDonnell stands by the wings and takes credit.

http://www2.timesdis...-184201/340155/

...or because without McDonnell, this deal most likely would not have gone in favor of Virginia. And this is not a matter of "big government," it's a matter of private enterprise. If it were truly "big government," companies like Northrup Grumman wouldn't even exist because the government would control everything. Our capitalist society allows for private companies to be contracted by the government to aid in helping the military being the best and strongest one in the world.

[calwinston]

...or because without McDonnell, this deal most likely would not have gone in favor of Virginia. And this is not a matter of "big government," it's a matter of private enterprise. If it were truly "big government," companies like Northrup Grumman wouldn't even exist because the government would control everything. Our capitalist society allows for private companies to be contracted by the government to aid in helping the military being the best and strongest one in the world.

Name one thing that Gov Bob McDonnell did to sway Norhtrup Grunman are way? Plus this deal was already in the works way before Gov Bob McDonnell took office (he was sitting on a deal that was already made for him perks and all). Gov McDonnell just had to promise what was already given to Northrup Grumman. Hence that's why CEO Wes Bush called Sen Mark Warner. Many companies that move their businesses have made their decision months before they make the announcement. They just use other states or jurisdictions to try to sweeten the deal with the state they have already chosen. Take the NASCAR Hall of Fame for example. Back in 2005 5 jurisdictions (Richmond, St. Louis, Charlotte, Daytona, Atlanta) turned in competing bids for the Hall of Fame. The one that was selected (drum roll) Charlotte. Why was Charlotte selected amongst the bidders. 73% of the NASCAR teams are centered around Charlotte, NASCAR HQ, and the team owners wanting it in their backyard. So why would NASCAR open it up to a bidding competition? To see if other jurisdictions would essentially give them more money to come to their town. Then they would come back to Charlotte and say that Richmond is giving us $25 million. What can you do to sweeten the deal or we are leaving for Richmond. But always knowing that Charlotte is their choice.

Northrup Grumman mainly works off of government contracts. Just like Lockheed Martin, Boeing, General Dynamics, etc. Many of these companies use the federal government by charging close to three times the actual cost to build or whatever service they provide. During my tour as a Aviation Ordnance Technican in the Marine Corps, I was in charge of inventory control for my department. I had access to the list price of what companies charged us. Everything from a F-18 to a $20,000 bolt. Im sorry but $50,000 for each 6 foot trailer that were essentially trailers attached to a back of a truck to haul loads is ridiculous in my book. I sometimes balked at the outrageous purchases I had to make. This was my money also. You have politicians drawing up contracts with little perks that are not accountants, financial analyst, etc. The cost we are paying as taxpayers is enormous so these companies can thrive and become larger. You are right its not big governemnt it is a big waste of taxpayer money. The federal, states, and cities needs to get these things under control or this country will go bankrupt with these outrageous contracts.

Here is what others are saying across the country

Wall Street Journal

http://online.wsj.co...l?mod=wsjcrmain

LA Times

http://www.latimes.c...p-move-20100427,0,6123590.story

http://www.latimes.c...an-headquarters,0,1418009.story

Washington Post

http://www.washingto...0042604235.html

[calwinston]

This article makes my point from my reply above.

http://www2.timesdispatch.com/rtd/news/state_regional/state_regional_govtpolitics/article/MCDOGAT27_20100427-113401/340338/

[VBIllini13]

Name one thing that Gov Bob McDonnell did to sway Norhtrup Grunman are way? Plus this deal was already in the works way before Gov Bob McDonnell took office (he was sitting on a deal that was already made for him perks and all). Gov McDonnell just had to promise what was already given to Northrup Grumman. Hence that's why CEO Wes Bush called Sen Mark Warner. Many companies that move their businesses have made their decision months before they make the announcement. They just use other states or jurisdictions to try to sweeten the deal with the state they have already chosen. Take the NASCAR Hall of Fame for example. Back in 2005 5 jurisdictions (Richmond, St. Louis, Charlotte, Daytona, Atlanta) turned in competing bids for the Hall of Fame. The one that was selected (drum roll) Charlotte. Why was Charlotte selected amongst the bidders. 73% of the NASCAR teams are centered around Charlotte, NASCAR HQ, and the team owners wanting it in their backyard. So why would NASCAR open it up to a bidding competition? To see if other jurisdictions would essentially give them more money to come to their town. Then they would come back to Charlotte and say that Richmond is giving us $25 million. What can you do to sweeten the deal or we are leaving for Richmond. But always knowing that Charlotte is their choice.

Northrup Grumman mainly works off of government contracts. Just like Lockheed Martin, Boeing, General Dynamics, etc. Many of these companies use the federal government by charging close to three times the actual cost to build or whatever service they provide. During my tour as a Aviation Ordnance Technican in the Marine Corps, I was in charge of inventory control for my department. I had access to the list price of what companies charged us. Everything from a F-18 to a $20,000 bolt. Im sorry but $50,000 for each 6 foot trailer that were essentially trailers attached to a back of a truck to haul loads is ridiculous in my book. I sometimes balked at the outrageous purchases I had to make. This was my money also. You have politicians drawing up contracts with little perks that are not accountants, financial analyst, etc. The cost we are paying as taxpayers is enormous so these companies can thrive and become larger. You are right its not big governemnt it is a big waste of taxpayer money. The federal, states, and cities needs to get these things under control or this country will go bankrupt with these outrageous contracts.

Interesting points...

[calwinston]

"Can Virginia stay at the top of the list?"

Virginia has been ranked the best state for business the past 4 years by Forbes Magazine. Ironically we probably could be at the top this year also.

"Luckily, the numbers-oriented methodology used by Forbes.com doesn’t measure things like traffic congestion, inadequate highway funding or state budget cuts."

http://www.virginiabusiness.com/index.php/opinion/article/can-virginia-stay-at-the-top-of-the-list/204017/

Many people are crying that are transportation problems will hurt are ranking with Forbes. Dont get me wrong our transportation infrastructure needed to be fixed yesterday. But in hindsight in does not effect are ranking with Forbes.

[calwinston]

'Recession failed to slow Virginia’s fastest-growing companies'

The company at the top of the Fantastic 50, ITA International Inc., grew by 5,778.82 percent from 2005 through 2008, a period that included 13 months of the worst economic downturn since the Great Depression. That pace was more than double the 2,603.54 percent growth rate of last year’s top company in the Fantastic 50.

http://www.virginiabusiness.com/index.php/news/article/harnessing-the-whirlwinds/

[calwinston]

Chief Executive Magazine has ranked Virginia as the fourth best state for business. Virginia is behind Texas, North Carolina and Tennesee.

The survey asked 651 CEOs to rank their experience with each state based on taxes and regulation, quality of work force and living environment.

The listing is one of Virginia’s many top rankings on business-friendly lists. For the past four years, it has topped Forbes.com’s annual list of Best States for Business.

http://www.virginiabusiness.com/index.php/news/article/chief-executive-magazine-ranks-virginia-fourth-best-state-for-business/204418/

[calwinston]

"DIA includes seven Northern Virginia firms in $6.6 billion IT contract"

Of the 11 firms that were awarded contracts, 7 were awarded to Northern Virginia firms.

A little know fact is that a little over half of the countries internet traffic past through servers that are located in Virginia. Also Northern Virginia has the second most concentration of technology companies after Silicon Valley. (Bay Area)(San Francisco, Oakland, San Jose, CA)

http://www.virginiabusiness.com/index.php/news/article/dia-includes-seven-northern-virginia-firms-in-6.6-billion-it-contract/204442/

[calwinston]

Virginia has fallen back into second place for the CNBC study for the "Americas Top States for Business". Texas was number one this year!. Texas and Virginia have been trading places for the past 4 years on the survey! The reason Virginia fell into second place was the high cost of living! Which compared to Texas is high.

Virginia can still claim the number one spot on the Forbes list which it has held for the past 4 years!

Virginia comes in second overall this year, but the Old Dominion State still has plenty for which to be proud.

In the Business Friendliness category, which measures the states’ legal and regulatory climates, Virginia is second only to neighboring Delaware. And Virginia offers a diverse economy, making it chock-full of business opportunities, from imports and exports to government contracts in the state that is home to the Pentagon. “Hampton Roads has the third largest port in the country. That, along with heavy military presence usually provides for a stable economy,” says WAVY-TV’s Schaad, who also notes that federal stimulus money, particularly in the area outside Washington, D.C., is keeping overall unemployment well below the national average.

http://www.cnbc.com/id/37642856

http://www.cnbc.com/id/37554006/

http://www.cnbc.com/id/15840232?video=1540958703&play=1

http://www.cnbc.com/id/37875509

[HopHead]

^ Texas has housing that is very inexpensive and no state income taxes. People are moving there in droves as it's unlike anywhere else in the country now. I have a friend (actually in Richmond) that is moving to the Dallas area for a job next month and he was blown away at what you can get there. Houses with a pool in the backyard are a staple.

[calwinston]

'McDonnell prepares to leave for European trade trip'

The trip, which McDonnell's staff is billing as a chance to market Virginia overseas, has been built around the Farnborough Air Show, taking place outside London. He'll be holding a series of meetings with business executives, including Rolls-Royce, and will get together with the Dutch Minister of Economic Affairs and energy ministers in the UK.

Maureen McDonnell will meanwhile push Virginia wine and agricultural products.

McDonnell said that almost 50 percent of all capital investment in Virginia over the past six years came from international companies, and overseas trips are key to spurring the job growth necessary to stabilize the state's economy.

"Our foremost priority is getting Virginians back to work, and we recognize that job creation cannot be accomplished within the confines of the United States alone. We need to sell Virginia products to the world, and invite the world to invest and create jobs right here," he said................

McDonnell was also celebrating some good news on the job front Thursday, announcing in a morning news conference that 71,500 jobs were created in Virginia in the first half of 2010, the third-best such figure in the country.

http://voices.washingtonpost.com/virginiapolitics/2010/07/mcdonnell_prepares_to_leave_fo.html

Virginia's Secratary of Commerce and Trade Jim Cheng has been traveling all across the world since being appointed sometimes on his own dime and staying with friends to lure companies to Virginia. In my book he's going leaps and bounds above and should be commended by all Virginians for the job he is doing!

[calwinston]

"Biomedical research lab draws attention"

By opening a $50 million Biomedical Research Laboratory (BRL) in June, George Mason University intends to position itself on the front lines of efforts to combat infectious diseases and bioterrorism.The 52,000-square-foot fac­ility is one of 13 regional biocontainment laboratories being built nationwide with competitive grants from the National Institute of Allergy and Infectious Diseases. But GMU officials say that in addition to seeking medical breakthroughs, BRL will be an economic engine for the region.

http://www.virginiabusiness.com/index.php/news/article/biomedical-research-lab-draws-attention/261640/

[calwinston]

Businesses expnading in Southside Virginia

Dominion Virginia Power and Halifax County have proposed building a 4 megawatt demonstration solar power and battery storage plant in the county. The $28 million investment would mean 150 jobs and help Dominion meet goals for renewable energy projects. The deal is dependent on a $5 million grant from the Virginia Tobacco Commission and approval by the State Corporation Commission. (Danville Register & Bee)

Monogram Food Solutions LLC, a Memphis, Tenn., producer of snack foods, will invest $4 million to expand production capacity at its Henry County plant, creating 150 jobs. The company makes snacks such as jerky, cheeses and beef sticks. (Richmond Times-Dispatch)

http://www.virginiabusiness.com/index.php/news/article/for-the-record-southern-virginia-august-2010/261624/