Posted: February 5, 2010

By Philip Newswanger

philip.newswanger@insidebiz.com

Last year was bad for everyone, including the Hampton Roads Economic Development Alliance.

But the region's marketer hunkered down and survived the winds of rising unemployment, hesitancy by firms to invest and credit so tight that not even your mother could get a loan.

Yet the alliance ended 2009 better than the previous year if you go by the numbers.

The alliance announced five projects in 2009 for a capital investment of $18.75 million that will create 294 jobs.

That contrasts with four announcements in 2008 for a capital investment of $17.82 million that created 63 jobs.

On balance, the alliance did well for its public and private investors.

Last year also marked Darryl Gosnell's first full year as president and CEO of the alliance.

Gosnell agreed to an interview to discuss his tenure so far with the alliance, last year's economic development activity and how he sees the future.

Gosnell landed in Hampton Roads in October of 2008 after Jones Hooks, the previous president and CEO, had left for another job in Georgia.

Gosnell took the helm of the alliance just after the financial meltdown on Wall Street, mounting job losses and wary investors.

It wasn't the best of times. Yet Gosnell and his staff did what they do best: meeting, greeting, informing, educating and pitching Hampton Roads to the world.

"Did we fare better than portions of the U.S.?" Gosnell said. "Absolutely. Did we take some hits? We certainly did."

Gosnell said not many plants were being built last year, considering the weakened state of the national and global economy.

Asked if the era of big plants generating thousands of jobs is over, Gosnell said, "I wouldn't say it's over, but there are only a handful a year that get announced anymore."

Gosnell cited Canon's expansion on the Peninsula and Northrop Grumman's partnership with AREVA to manufacture equipment and pressure vessels for the nuclear industry as examples of big projects, generating hundreds of jobs and investment.

Gosnell said future jobs will germinate in advanced manufacturing.

"They will create more higher-paid jobs, but not as many," he said. "We are strong in this area in manufacturing and advanced manufacturing. Are there fewer jobs? Sure. Are they better paid? Yes."

Other areas where he sees growth: modeling and simulation and the port and logistics.

"Modeling and simulation will continue to grow," Gosnell said. "We have so many pieces between Old Dominion University, defense spending and the military. I think that area has tremendous potential."

On the port and logistics side, Gosnell expects more activity between the port and the Midwest once Norfolk Southern Corp. opens its Heartland Corridor this spring or summer.

The Heartland Corridor is a direct rail link between Hampton Roads and Columbus, Ohio, and other Midwest cities. Already, distribution centers are sprouting in Columbus near NS's rail ramp there.

The alliance will get more aggressive with site-selection consultants and companies in Chicago after the Heartland Corridor opens, Gosnell said.

"We want to raise our visibility so we might see some activity," Gosnell said.

The alliance will travel to new destinations this year, Memphis among them.

"We saw several projects out of there," Gosnell said. "We haven't been there in years.

"We will revisit some consultants we know and visit some consultants we don't know."

Gosnell said there's a good mix in Memphis, referring to major distribution players and site selection consultants.

South Korea is also on the travel roster this year.

"We have not been there for a while," Gosnell said. "Korea has a lot of manufacturing that would be a good fit for this area."

A student from South Korea enrolled in a master's program at Old Dominion University is helping the alliance with background on the country.

Expect the alliance to maintain its high profile in Germany, Austria and the United Kingdom, especially the U.K., whose government contracting firms, such as BAE Systems, have a presence here or know the region for its influx of government dollars.

Asked how he would grade his first year, Gosnell issued a modest and self-effacing response.

"I think we had a pretty good year, all things considered. Can you do all the things you want to accomplish? No. There were a lot of positives that came out of last year."

Mike Barrett, the alliance's chair last year, praised Gosnell's performance.

"We recently completed our review of Darryl's performance, and I can tell you that without reservation or dissent, the officers of the alliance concluded that Darryl had in every case met or exceeded the specific objectives upon which we had agreed when he was employed," Barrett said. "In particular, we noted his evaluation and subsequent reassignment of the staff to the most compatible positions, the improvement in relations with our municipal partners, and the significant improvement in relations with the Virginia Economic Development Partnership as evidenced by a significant increase in referrals from them.

"Also, of particular note were the increases in announcements by our municipal partners, active projects and prospect visits," Barrett said. "He did all this yet completed the year under budget and with a lean, enthusiastic staff. All in all, a great first year."

Gosnell said last year was a year of positioning the alliance and getting prepared for this year.

The alliance counts among its in-house achievements a new logo, Web site, tracking system, marketing materials, a direct mail campaign to site-selection consultants and an advertising campaign with The Virginian-Pilot and the Daily Press to raise the alliance's profile in the region.

The ad campaign with The Pilot began during the third quarter with in-kind dollars and includes half-page black and white ads in the front section of the newspaper.

The ad campaign with the Daily Press will begin this month and run through the remainder of the year.

In place of the newspapers' investing dollars with the alliance, both newspapers agreed to trade their membership fees for running ads. nib