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Home My WebLink AboutI. B. HAMPTON ROADS ALLIANCE UPDATE 8.27.24Hampton Roads Alliance Presentation to Virginia Beach City Council August 27, 2024 Overview Hampton Roads: Who Are We? •New Regional Economic Order •AUKUS/DOD Spending •Defense Industrial Strategy What is changing? How Does the Region Benefit? Regional Investment Playbook How does Virginia Beach benefit? / Discussion 3 2024: Discussions on the New Regional Economic Order January •Governor’s Panel February •Board Discussion •Bruce Katz/Julie Wagner Visit •Annual Meeting April •RED Team May •EVRIFA Board Discussion •Regional Maritime Partner Convening June •Mayor Oliver Coppard Visit•Bruce Katz Initial Report•RED Team July •Regional Organizations Presidents Council August •RED Team •VA Beach City Council Monthly Briefings •Secretary of Commerce & Trade: Caren Merrick •Secretary of Veteran & Defense Affairs: Craig Crenshaw •Secretary of Labor: Bryan Slater •VEDP & HRWC 4 America’s Top State for Business 5 Hampton Roads: The center of Virginia’s World Class Maritime & Defense •Home to 1.8 million people (including Richmond the population is 3+ million) with a labor force of over 866,000 •Younger, more diverse, and more educated than the national average •Just 2 ½ hours south of Washington DC •Home to over 200+ international companies and the world’s largest maritime and defense industrial base •Significant military and federal aerospace presence •Large and talented military and aerospace workforce •Specialized education and training programs from high school to universities •Home to the Port of Virginia 6 Largest Concentration of Military Assets on the Planet •World’s Largest Naval Base •NATO’s North American Headquarters •HII Newport News Shipbuilding and Unmanned Systems Center for Excellence •Joint Base Langley-Eustis •Fifth Coast Guard District •United States Marine Corps Command •Naval Air Station Oceana – Virginia Beach (East Coast’s Master Jet Base) •Naval Air State Oceana – Dam Neck •Naval Station Norfolk •Joint Expeditionary Base Little Creek-Fort Story 7 8 Unparalleled access to Federal Government Decision Makers Major military units and headquarters include: •NATO’s Allied Command Transformation •U.S. Joint Forces Command •U.S. Fleet Forces Command •U.S. Air Force’s Air Combat Command •U.S. Marine Corps Forces Command •U.S. Army Training and Doctrine Command and Aviation Brigade •The military currently has 80+ ships homeported in the area and nearly 40 aircraft squadrons. •They also have a variety of Navy Special Forces and support units. •FBI, CIA, NSA, NASA, Coast Guard, etc. Every branch of the armed services is in Hampton Roads 9 “The pandemic, and now geopolitical upheaval, have taken the economy and shaken it up like a snow globe. The flakes will eventually fall – there will be a new equilibrium – but things may be arranged differently when everything settles.” Jeanna Smialek, New York Times, March 25, 2022 Unprecedented Federal Spending Inflation, Credit Crunch & Rising Interest Rates Rising Tensions with China/Iran Wars in Ukraine & Israel/Gaza COVID-19 Disruptions The Climate Crisis Renewed Calls for Racial Justice Remote Work “The New Disorder” 10 Offshore Wind Strategy Regional Energy Roadmap KPMG Investor Event – Fall 2023 KPMG/EVRIFA – Site Readiness Governor's Event – Past, Present, Future 2024 Annual Meeting – Bruce Katz New economic order has been catalyzed by unprecedented federal spending 11 A Changing World Order - Mega forces are creating a new economic order 12Sources: The Biden-Harris Plan to Revitalize American Manufacturing and Secure Critical Supply Chains in 2022; Remarks by U.S. Secretary of Commerce Gina Raimondo: The CHIPS Act and a Long-term Vision for America’s Technological Leadership. New driving forces and local assets that may have been hidden or undervalued 13 The National Defense Industrial Strategy (NDIS) provides a roadmap for Hampton Roads Stated Priorities •Resilient supply chains •Workforce readiness •Flexible acquisition •Economic deterrence 14 AUKUS: A Trilateral security partnership between Australia, the United Kingdom, and the United States intended to “promote a free and open Indo-Pacific that is secure and stable.” AUKUS 101 (Australia, UK, US) •AUKUS Pillar 1 will provide Australia with conventionally armed Nuclear-Powered Submarines •3 billion investment from Australian government into the US Supply Chain •Newport News Shipbuilding will hire an additional 21,000 people over the next 5 years •AUKUS Pillar 2 will develop and provide advanced joint military capabilities to promote security and stability in the Indo-Pacific Region •The key target areas include cyber capabilities, artificial intelligence, quantum technologies, and undersea, hypersonic and electronic warfare capabilities. •The impact of Pillar Two cannot be understated, we believe it could be game-changing, securing the future military and economic advantage of the AUKUS nations and recasting the nature of this competition for global influence. 16 AUKUS Pillar 2 Alignment – Advanced Capabilities 17 AUKUS Pillar 2 Assets •Jefferson Lab High Performance Data Facility Hub (HPDF) •Recently selected by DOE’s Advanced Scientific Computing Research (ASCR) program in partnership with Berkley Lab •HPDF is set to become the newest capability in high-performance computing provided through ASCR program. ASCR operates three high performance computing user facilities: •National Energy Research Scientific Computing Center (NERSC) •Lawrence Berkeley National Laboratory (LBNL) •Leadership Computing Facilities at Oak Ridge National Laboratory and Argonne National Laboratory •NASA Langley Research Center & NASA Wallops Island Spaceport •HII Unmanned Systems Center for Excellence & Lockheed Martin Center for Innovation •Virginia Institute for Spaceflight & Autonomy at ODU •Virginia Modeling, Analysis, & Simulation Center at ODU •ODU’s Virginia Beach Institute of Data Science 18 Federal Spending, Green Supply Chain, and Critical Industries AREAS OF ANALYSIS 20 21 22 Next Step: Regional Investment Playbook •Moves from the articulation of economic position to the identification of a small set of concrete projects that unlock economic possibilities. •Projects that have the potential to align with federal funding, leverage other public, private and civic capital, and drive inclusive and sustainable outcomes. •Graduating Hampton Roads from a region focused on the end assembly of sophisticated products (e.g., nuclear powered submarines, offshore wind turbines) to one that participates more extensively in technological innovation and earlier parts of the supply chain. 23 Virginia Beach’s Position: Discussion •Defense: Hampton Roads has a remarkably robust public economy, primarily driven by DoD contracts, positioning the region among the top in the country •Oceana Resolution / Defense Contractors •Energy & Green Supply Chains: Early findings indicate that Hampton Roads is well placed to capitalize on key projects related to nuclear energy, wind energy, and the grid. •Virginia Beach has a strong position in wind energy, resilience technologies, energy and battery technologies. •Business Expansion Opportunities (i.e. STIHL, GTS, DroneUp) •EVRIFA •Knowledge Work & Cybersecurity: Opportunity to enhance the cybersecurity industry by promoting applications for defense, grid development, and wind and nuclear energy. •Cybersecurity is a key technology for supporting defense operations and the offshore wind industry. •How can the regional fiber ring and transatlantic cables positively benefit these sectors? 24 Your Ally in Economic Development. Alliance Headquarters 3 Commercial Place, Suite 1320 Norfolk, VA 23510 T: +1(757) 627-2315 www.HamptonRoadsAlliance.com info@hamptonroadsalliance.com