Surving and thriving in this economy

Published in the Culpeper Star Exponent
Monday, December 12, 2011

I attended the Virginia Chamber of Commerce Economic Summit a few weeks ago. The subject of the conference was “The Role of the Federal Government in Virginia’s Economic Prosperity”.  The speakers were impressive, former Governor’s  Kaine and Allen (both candidates for the US Senate in 2012) Congressman Forbes (R-VA-4th District), US Secretary of Transportation LaHood, Virginia Secretary of Transportation Connaughton, and President of the Virginia Chamber of Commerce – Barry Duvall, each very engaging regarding the Virginia Economy.

However, I was most struck by a presentation by Dr. Fuller, Director - Center for Regional Analysis, School of Public Policy, George Mason University.  His presentation was direct and showed statistical analysis of the Federal Budget’s impact on Virginia. Dr. Fuller stated that Virginia gains the most benefit from federal procurement. We have recently surpassed California as the number one state for federal procurement dollars spent. This is not surprising considering our proximity to Washington DC. In addition, he showed that federal procurement in Virginia grew an average of 10.7% per year from 2000 – 2010, and from just over $20 Billion to almost $60 Billion during this time.

According to Dr. Fuller, Virginia is 4th in Federal Wages & Salaries after Texas, California, and DC with just over $20 Billion in Federal Wages & Salaries. Consider that for each federal job, there are a correlative number of private sector service and support jobs. Thus, for any federal job lost, there would be private sector jobs impacted as well.

As beneficiaries of federal procurement and federal jobs, Virginia is equally vulnerable to federal budget cuts. As we consider the potential budget reductions in Washington, hoping for fiscal responsibility, Virginia will potentially see a significant economic impact. This seems even truer for Northern Virginia and the Hampton Roads MSA. The numbers are sobering and motivating.

The “Silver Lining” for Culpeper… As Federal Agencies and Government Contractors look for ways to cut costs, Culpeper is a strategic solution. One of the candidates in the recent election for the Virginia General Assembly alluded to the solution for transportation being high speed internet as well as roads, enabling business from virtual locations. Though he was not suggesting Culpeper, he described it well. Our robust internet infrastructure offers business and government an opportunity to locate and conduct business in a rural setting with a high quality of life, while reducing the cost of operations.

In addition, our proximity to Washington is close enough to take Amtrak into DC for a quick meeting while returning that same evening. Our 5000’ runway Jetport is perfect for most business and government small jet travel.

Culpeper as a “Micro Economy” has stood alone in many ways with regard to employment due to a healthy diversity of business. With Manufacturing, Professional Services, Hospitality, and Retail Industries, Culpeper has been able to weather the economic intervals with resiliency.

The time for “The Culpeper Solution” is now… current inventory of homes at very attractive values, infrastructure in place, strategic proximity to DC, healthy quality of life, and business friendly environment. Those who realize this sooner than later will secure the benefits.

Jim Charapich, CEO/President
Culpeper County Chamber of Commerce