Revenue numbers up, but not enough?
The McDonnell administration announced on Monday that January revenue collections rose 3.4 percent over the prior year and that total revenue collections are up 4 percent year-to-date.
And yet to hear the governor tell it, the numbers indicate a need for continued belt-tightening. Continue reading “Revenue numbers up, but not enough?” »
Honeywell invests #27.5M in new Chesterfield County facility
Honeywell, a Fortune 100 manufacturing and technology company, will invest $27.5 million to add to its Advanced Fibers and Composites operation in Chesterfield County.
AF&C manufactures the lightest, strongest polyethylene fiber available anywhere in the world, which is used for ballistic protection with the U.S. military and law enforcement agencies and in certain industrial applications. The project will create 50 new jobs.
Virginia successfully competed against North Carolina and South Carolina. Continue reading “Honeywell invests #27.5M in new Chesterfield County facility” »
McDonnell announces 1,350 jobs in Chesterfield, Dinwiddie
Gov. Bob McDonnell and Amazon.com Inc. (NASDAQ: AMZN) today announced the company’s plans to open two fulfillment centers in Virginia, investing a total of $135 million. The company will invest $85 million and create more than 1,000 jobs in Chesterfield County, and invest $50 million in Dinwiddie County, creating more than 350 jobs.
“This project that includes a $135 million investment and more than 1,350 new jobs is a tremendous win for the greater Richmond region. Amazon is known all over the world, and the new centers in Chesterfield and Dinwiddie counties will fulfill orders across the United States. The establishment of these new operations is testament to the positive business climate and success the company has experienced in the Commonwealth,” McDonnell said. Continue reading “McDonnell announces 1,350 jobs in Chesterfield, Dinwiddie” »
Rubbermaid to expand Winchester operations
Rubbermaid Commercial Products, a leader in solution-based commercial products, will invest $67.25 million to expand operations in the City of Winchester and establish a distribution operation in Frederick County.
The company, best-known for its commercial cleaning, materials management, washroom and foodservice products, will add a total of 71 new jobs. In the City of Winchester, RCP is investing in high-technology, energy-efficient injection molding machines to upgrade the facility’s production capability. In Frederick County, the company will retrofit an existing 454,000-square-foot facility into a state-of-the-art logistics center.
“This significant investment is a logistics strategy that will streamline the manufacture and distribution of the products. The upgraded production facility and state-of-the-art logistics center will help support RCP’s growing global demand for commercial janitorial and sanitation products while creating new jobs and investment in two localities of the Commonwealth,” Gov. Bob McDonnell said. Continue reading “Rubbermaid to expand Winchester operations” »
Webb, Warner announce $200M for economic development
Sens. Jim Webb and Mark Warner today announced that the U.S. Department of Commerce National Institute of Standards and Technology will invest $212,800 in GENEDGE ALLIANCE, a statewide manufacturing support program based at Patrick Henry Community College in Martinsville, Virginia. Both Senators have consistently supported federal funding in Congress for the program, which supports industrial and manufacturing jobs by helping private businesses across the Commonwealth compete and succeed.
“I have been a big supporter of this concept, where high-quality advisors help small and mid-sized companies compete nationally,” said Sen. Webb. “The GENEDGE ALLIANCE manufacturing program is a strong example of a public-private partnership that will strengthen Virginia communities and invigorate local economies.”
“The GENEDGE ALLIANCE is a good example of a smart federal grant program that consistently produces a measurable return on investment,” Sen. Warner said. “GENEDGE consultants have helped employers across the Commonwealth upgrade processes and increase their growth opportunities. This grant represents a targeted investment that will strengthen Virginia’s economy and workforce.”
Since 1992, Virginia’s GENEDGE ALLIANCE has provided comprehensive services that produce quantifiable results for the companies they serve. The Manufacturing Extension Partnership (MEP) works in conjunction with companies to provide high quality analysis that helps companies increase productivity, lower costs, identify growth opportunities, improve technology application, and strengthen production. For every $1 invested in GENEDGE ALLIANCE assistance and service, $36 has been returned to the client’s bottom line, and descriptions of many GENEDGE ALLIANCE success stories from across Virginia can be found here.
GENEDGE ALLIANCE is a network affiliate of NIST-MEP, a national network of more than 59 affiliate centers, bringing enterprise expertise to over 149,000 businesses across the United States. GENEDGE ALLIANCE field offices are located throughout Virginia and their partnerships with the Old Dominion University Business Gateway (ODUBG) at Old Dominion University and the Manufacturing Technology Center (MTC) in Wytheville support companies across the Commonwealth.
McDonnell: Revenue collections up again, but that’s not good news
Gov. Bob McDonnell announced today that October revenue collections increased by 3.1 percent over the prior year – the 19th month out of the last 20 in which state revenue collections exceeded the previous year’s amount.
With the McDonnell administration preparing its first biennial budget, though, the governor’s office is trying to sound a political alarm about money issues even with the continued good news about the state economy.
“While Virginia’s economy continues to grow and recover from the economic challenges of past years, that rate of growth has slowed somewhat in recent months. All indicators at the state, national and global levels continue to urge caution as our economy struggles to regain its footing,” McDonnell said.
Actually, all indicators at the state level are positive. On a year-to-date basis, total revenue collections have risen 5.8 percent, ahead of the revised annual forecast of 3.7 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 5.0 percent, ahead of the economic base forecast of 3.5 percent growth.
“Virginia’s economy is showing modest growth and signs of improvement that surpass those of the nation’s economy as a whole, but the fragile national economy, persistent uncertainty in federal funding of programs that directly impact the states, and our economy’s vulnerability to upheaval due to national and world events requires economists and elected officials to take a conservative, responsible fiscal approach when budgeting for the future,” McDonnell said.
Virginia tourism: An $18.9B industry in 2010
Gov. Bob McDonnell announced today that visitors to Virginia generated $18.9 billion in revenue in 2010, a 6.7 percent increase over 2009. In 2010, tourism in Virginia supported 204,000 jobs and provided more than $1.3 billion in state and local taxes. The Virginia Tourism Corporation receives its annual economic impact data from the U.S. Travel Association. The information is based on domestic visitor spending (travelers from within the United States) from per person trips taken 50 miles or more away from home.
“The increase in revenue from tourism is very encouraging,” said McDonnell. “Given current economic conditions across the country, a 6.7 percent increase is impressive. Tourism is an instant revenue generator and job creator for Virginia, which is why I continue to advocate for more resources for tourism marketing. Smart investments in tourism provide economic benefits to communities across the Commonwealth and good jobs for our citizens.”
The 6.7 percent growth in domestic visitor spending follows Governor McDonnell’s recent announcement that tourism spending by overseas travelers to Virginia increased by more than 12 percent in 2010. Additionally, Canadian visitors to Virginia showed an even greater increase as nearly 575,000 Canadians traveled to Virginia and spent more than $133 million, a 16.6 percent increase in spending over 2009.
“We are pleased to have tourism revenue trending upward,” said Alisa Bailey, president and CEO of the Virginia Tourism Corporation. “However the economy continues to pose challenges for visitors and our industry. We’ll work with our industry partners to build on these positive gains, increase our marketing efforts and bring more visitors to Virginia.”
For information about Virginia’s travel destinations and trip planning resources, visit www.Virginia.org or call 1-800-VISITVA to request a free, Virginia is for Lovers Travel Guide.
Commonwealth posts revenue growth in August
Gov. Bob McDonnell announced today that August revenue collections increased by 7.8 percent over the prior year. This is the 17th month out of the last 18 in which state revenue collections exceeded the previous year’s amount.
Although August is not a significant month for revenue collections, the revenue increase was primarily driven by a 13.3 percent growth in individual income tax withholding and a 24.6 percent increase in non-withholding receipts (individual final payments based on 2010 tax liabilities). On the other hand, receipts for sales tax and corporate income tax fell. August features the annual sales tax holiday for school supplies. On a year-to-date basis, total revenue collections have risen 8.8 percent, ahead of the revised annual forecast of 3.7 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 6.7 percent, ahead of the economic base forecast of 3.5 percent growth.
“Following the closure of the fiscal year with our second straight surplus, revenue indicators continue to demonstrate that Virginia’s economy continues to gradually show some signs of improvement,” Governor McDonnell said. “While 7.8 percent revenue growth this month is great news, August is typically not a significant month for revenue collections, so we will look forward to the closure of the first quarter of fiscal year 2012 in September for a more comprehensive view of the Commonwealth’s overall economic picture. The fact is, while Virginia’s economy continues to recover, we still have not fully turned the corner from the deep and long-lasting downturn that has impacted every Virginian. More than 250,000 Virginians are still out of a job, and that is tragic and unacceptable. There are tough days still ahead, and we know that the road back to economic prosperity for all our citizens will be a long and winding one. Virginia is not immune to national trends. Clearly, recent negative news and disappointing projections about the trajectory of the American economy will have an impact here in the Commonwealth. With this in mind, we must redouble our efforts to work together to ensure Virginians can find the good-paying jobs they deserve and that we get our economy back on track. Our administration is committed to implementing aggressive policies that encourage economic growth, help private-sector companies add jobs, reduce government spending, and nurture a strong and growing economy in the years ahead.”
The August revenue numbers are available at this link:
www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2011-2012/2012ReportsList.cfm.
Virginia: Apple harvest looks good
The weather in 2011 has been hard on many of Virginia’s agricultural crops, but the Virginia Department of Agriculture and Consumer Services says the outlook for the 2011 apple crop is very good. In early September, staff from VDACS’ Office of Sales and Market Development contacted growers representing the state’s major apple-growing areas and the reports are good. Growers indicated that the 2011 harvest should be normal, even if slightly off the five-year average in volume.
Apple trees experienced minimal damage from Hurricane Irene, although Tropical Storm Lee’s torrential rains delayed or interrupted the harvest for some of the earlier varieties because farmers couldn’t get into the fields. That added moisture should increase the size of varieties that are picked later, and the cooler temperatures at night will help the red-skinned apples achieve the bright red color that consumers prefer.
Growers are finished picking Ginger Golds and Galas and are actively packing and selling these varieties now. Harvest of Red and Golden Delicious is just starting in Northern Virginia; in the southwest part of the state the harvest is well underway. Harvest of Rome apples should begin in early October; York apples in early to mid-October; Winesaps, Staymans and Granny Smith apples in mid-October; and then Fujis in late October or early November. Many pick-your-own farms also offer heirloom and heritage varieties of apples.
Apples are big business in Virginia. The state boasts more than 150 commercial growers. VDACS Marketing representatives canvassed the state and determined that apples are selling very well this year, and while some growers are expecting a smaller crop, they say the quality is very good. Virginia farmers produced between 5 and 5.25 million bushels of apples last year for markets in 15 states and more than 20 countries. This year’s harvest may be slightly less, depending on the weather between now and the end of harvest.
Adding to apple’s economic importance is the agritourism factor, the festivals and events that draw Virginians and tourists alike to apple-growing regions each fall. “People go to an apple farm to pick apples for several reasons,” said Matthew J. Lohr, VDACS Commissioner, “but chief among them is that they want to buy local products. Savvy consumers realize that local means fresher and fresher means more nutritious. They like to know the farmer who comes with their food and they like to keep their dollars in the community. But they also want to have fun, and there are few better places to do that in the fall than at a pick-your-own apple farm. While on the farm, consumers can enjoy hay rides, petting zoos, pony rides and shopping. They can buy baked goods, jellies, cider, plants, pumpkins, even fall decorations. In addition, there are a host of apple festivals around the state that may or may not take place on farms, and all of these enhance the local economies.”
State revenues up again in May
May state-revenue collections increased by 17.9 percent over the prior year. This is the 14th month out of the last 15 in which state-revenue collections exceeded the previous year’s amount. It is the sixth out of the last seven in which year-over-year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by a 49 percent increase in nonwithholding receipts (individual final payments based on 2010 tax liabilities). On the other hand, growth in two large sources, payroll withholding and sales tax, slowed. On a year-to-date basis, total revenue collections have risen 5.8 percent, slightly ahead of the revised annual forecast of 3.5 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 7.3 percent, ahead of the forecast of 5.5 percent.
“The growth in state revenue is a positive sign that Virginia’s economy continues to improve,” Gov. Bob McDonnell said. “However, while 17.9 percent revenue growth is great news, it does not mean we have fully turned the corner from the deep and long-lasting recession that has impacted every Virginian. Like some national economic indicators, our payroll withholding and sales tax collections slowed last month. This means there is still much work to be done before we find ourselves with the full and robust economic recovery our Commonwealth and nation needs.”
State revenues continue climb
April revenue collections by state government increased by 1.5 percent over the prior year, continuing a trend of increased monthly state revenues dating back to last year. This is the 13th month out of the last 14 in which state revenue collections exceeded the previous year’s amount. Over the last six months, state revenues have grown by 7.7 percent.
April is a significant month for revenue collections with final payments for tax year 2010 due April 15th for corporations and May 1 for individuals. The April revenue increase was primarily driven by withholding (+6.5%), nonwitholding (+11.1%) and sales tax (+7%- this number reflects March sales) collections.
On a year-to-date basis total revenue collections have risen 4.5 percent, ahead of the annual forecast of 3.5 percent growth. Adjusting for the accelerated sales tax program in June 2010, total revenues grew 6.1 percent through April, ahead of the economic-base forecast of 5.5 percent growth.
“That means we are now seeing gains over previous gains, which is a positive sign that this recovery is increasingly taking hold. While we have a long way to go before every Virginian can find the good-paying and rewarding job they need and deserve, it is clear that progress is being made,” Virginia Gov. Bob McDonnell said in a statement Thursday.
McDonnell opens Virginia marketing office in Shanghai
Gov. Bob McDonnell today expanded Virginia’s international economic development presence with the opening of the Commonwealth’s new marketing office in Shanghai.
The governor announced the opening of the new office during a press conference at the JW Marriott in Shanghai.The governor is currently on a two-week job creation and marketing mission to Japan, China and Korea.
“Virginia has a compelling story to tell, and we must tap into the Chinese market if we want to be successful in today’s global economy,” McDonnell said.”Success in China will mean good jobs for Virginians.A strong economic relationship with China will grow the Commonwealth’s economy and that is why I committed in my campaign to establish this office.Unfortunately Virginia has failed to properly devote resources in recent years to market to China, putting us behind other states in competing for investment opportunities. That is no longer the case.”
Hailey Fong, the Virginia Economic Development Partnership’s Director of International Investment, China, is now based in the new office in Shanghai.Fong has worked for VEDP for 10 years, promoting trade and investment in the greater China region.
VEDP has also hired Joyce Hua as Director of Trade Development, China. Hua has 10 years of experience working in foreign trade, marketing and project management. She is familiar with multi-culture environments, especially with Sino-American relationship and culture exchange. Hua is experienced in consumer research management, along with marketing communication, planning and execution. She will be an important addition to the Virginia export team, working to develop new trade opportunities for Virginia companies.
VEDP has conducted multiple trade missions with Virginia companies to China. At least eight current companies in the Virginia Leaders in Export Trade program are actively pursuing the Chinese market and have used VEDP resources to assist with their strategy in China.
With the establishment of this office, Chinese companies will have the opportunity to work directly with Virginia as they establish their “Go Global” strategy, and Virginia companies will work closely with Chinese companies to establish new products and services to serve Chinese consumers.
China’s annual economic output has surpassed that of Germany and Japan, and is now the world’s second-largest economy. China is Virginia’s 2nd largest export destination. Virginia exports to China grew eight percent in 2010 to reach a value of $1.2 billion. In the year 2000, when China was Virginia’s 14th top export destination, Virginia exports to China were valued at $197 million. Top 2010 exports from Virginia to China are integrated circuits, plastics, synthetic fibers, industrial machinery, and aluminum, mainly waste and scrap.
