NORFOLK, Va. (AP/ WVEC) — A new report suggests that the Hampton Roads region has mostly recovered from the Great Recession. The number of jobs has surpassed pre-recession levels. And housing prices are rising.
But job creation still lags behind other areas of Virginia and the mid-Atlantic. Wages have yet to rise significantly. And people continue to move away.
That's all according to the 2018 State of the Region Report that was released Tuesday by Old Dominion University. Each year, ODU's Strome College of Business assesses the region's economy.
The report noted substantial increases in federal defense spending, which is the bedrock of the region's economy. For instance, the U.S. Navy is embarking on a shipbuilding plan that will increase the demand for skilled workers.
"It's a foundation of our economy," said ODU economics professor Bob McNab.
The ODU economic forecasting team presented their findings today to the Hampton Roads Chamber. They said the increase nationally in defense will pay big dividends here.
The professors said it's likely that about $3 billion of the increase in national defense spending in Fiscal Year 2018 will occur, over time, in Hampton Roads with "a good portion" of those dollars going to shipbuilding here.
"Things are actually improving," said McNab. "Hampton Roads is going to put together a second year of growth and that's going to be the first time we've had two consecutive years of economic growth since 2007."
Defense spending did account for 40.8 percent of the gross regional product last year. It's now at 42 percent of the GRP.
However, all this good fortune does raise a question. Is the Hampton Roads economy too reliant upon the Pentagon?
"We are dependent, but it's an asset," said ODU economics professor Vinod Agarwal. "We need to build on it, and build other industries that are incremental to this business. We certainly need to expand the private sector."