Unparalleled Success in Uncertain Times, Newport News State of the City is exceptional

Newport News experienced a year of stunning, positive economic investment announcements totaling nearly $2 billion in the city.

"The message here is we are not going to be as severely impacted like other places because of the investments we made in bringing in these industries and bringing growth to the community," said Newport News Mayor Joe S. Frank.

Mayor Joe Frank and Governor Timothy Kaine were joined by a panel of business and community leaders for the State of the City Summit. Panelists included Dr. Larry Filer, Associate Professor of Economics and Research Fellow for the Old Dominion University Economic Forecasting Project; Takayoshi Hanagata, President and Chief Executive Officer, Canon Virginia, Inc.; William H. Hudnut, III, former four-term mayor of Indianapolis and Congressman, author, public speaker, and TV commentator; Brigadier General Brian R. Layer, Commanding General, Fort Eustis; Dr. Hugh Montgomery, President of Jefferson Science Associates and Director of Jefferson Lab, Jefferson Lab; Mike Petters, Corporate Vice President and President of Northrop Grumman Shipbuilding - Newport News; Kregg Wiggins, Senior Vice President, Powertrain North America, Continental).

In April 2008, Canon announced a $623.5 million expansion of its local plant, generating more than 1,000 jobs over several years. AREVA Newport News, the nuclear reactor collaboration with Northrop Grumman Shipbuilding, also said it would invest $363 million in its new Newport News plant and create 540 jobs. In December, Continental AG, a fuel injection production company, announced its transfer of 318 jobs and $194 million investment to Newport News from South Carolina.

What's the secret?

Newport News offers a unique mixture of consistent, long-term planning that creates a solid pro-business environment that includes many long-standing relationships, he said. In addition, urban perks such as good schools, work force training, medical, recreational and cultural facilities like the Ferguson Center for the Arts add to the city's appeal, Mayor Frank said.

"All these things give people a sense that Newport News is an attractive place to work, live and raise a family," Frank said.

Like other localities across the region, Newport News is wrestling with rapidly shrinking tax and state dollars. "These projects didn't just happen overnight. It's taken a long time," Florence Kingston, Economic Development Director, said. "It's more than just a piece of real estate or an incentive package (to attract these businesses)."

During the Newport News Summit, Mayor Joe Frank also announced that Pepsi is investing in a $20-million dollar expansion to their existing business in Newport News. It will be a 16,000 sq. ft. expansion that will create 15 new jobs.

Also at the Summit, ODU Economics Professor Larry Filer explained the results of his study showing a ripple effect from that job growth. "The initial job creation of say 3,360 jobs may generate somewhere around 3,200 other jobs in the region maybe as many as 600 more jobs in the City," says Filer.