News & Events

Economic Barometer Newsletter


Fall 2004

The Business of Government: Reports Detail ‘03 Spending; Defense, IT Contracts - In a study released in September 2004, George Mason University Professor Stephen S. Fuller reported that the Washington area’s robust job market is thriving because of extraordinary government procurement spending. The report documents procurement spending in Greater Washington at $42.2 billion in 2003, a 16.9% increase since 2002. This total sustains 294,000 private-sector contractor jobs, which in turn indirectly supports more than 600,000 other positions. Read article highlighting study

And a report from INPUT, a market intelligence firm based in Reston, VA, states that the federal government awarded $20 billion in info tech prime contracts during the fourth quarter of fiscal year 2004. Defense agencies accounted for $16 billion of those deals. Read report

Related News: Local Counties Lead the Nation in Explosive Job Growth - New U.S. Department of Labor data shows that several jurisdictions in the Washington, DC region are experiencing rapid job growth. Prince William County, VA added jobs at the fastest rate in the nation with an 8% increase; Loudoun County, VA captured a 5.5% gain, ranking sixth in the country. Other Washington area locales, Frederick, MD and Fairfax, VA, each experienced a 4.2% expansion. Thousands of government contracting positions, and related construction and retail jobs, are contributing to the counties’ phenomenal job growth. Read Washington Post article

More Good News: Area Firms Rule Inc. 500 List of Fastest Growing Businesses - According to Inc. Magazine, the Greater Washington region has the highest number of fastest-growing private companies in America for the eighth consecutive year. Washington, DC-based InPhonic, the nation's leading internet provider of wireless services and phones, peaked on the Inc. 500 list at number one, with an annual growth rate of nearly 6,000%! Compared to other metro areas, Boston ranks second with 24 firms, followed by San Francisco/San Jose with 19. The 40 area businesses that appear on the list range in industries from information technology to construction and generate annual revenues of more than $750 million. Read GWI analysis

Post-Election Business Outlook: Local Executives Cautiously Optimistic - Although the region’s economic base is viewed as rock solid, local business leaders are taking a “wait-and-see” attitude about the economy’s final quarter of 2004, largely due to the landmark November elections, according to results of a recent Business Pulse survey. When surveyed in October, only 25% (down from Q3) of business leaders are “very positive” about the region’s economy. However, 57% are “somewhat positive” about their industry’s prospects; an increase from July’s results. Business leaders do anticipate continued growth in sales revenue and company performance. Business Pulse is a quarterly survey conducted by Widmeyer Communications for the Greater Washington Board of Trade and the Washington Business Journal. View detailed results

VENTURE CAPITAL

Regional Venture Capital Update: Majority Goes to Info Tech/ Communications - In the year’s second quarter, there were 35 venture capital deals in the region, totaling $112.3 million. While Greater Washington garners a small share of the national venture capital market, 83% of the area’s funding went to companies in the information technology and communications industries. Lumenos, Inc., which provides medical and health internet content, had two of the largest deals in the region, accounting for $26.9 million of the investment. More info

MAJOR ECONOMIC NEWS FROM AROUND THE REGION

Northern Virginia: IBM Expands While AOL Contracts - IBM will invest $10 million to expand its presence in Fairfax County, VA and create 1,250 job opportunities. The company will lease additional space in a 200,000 square-foot building, and the new positions are part of the firm’s public sector consulting unit. This expansion is a part of IBM's plan to create 18,800 jobs worldwide this year. Details

Meanwhile, Internet service provider giant America Online announced that it will cut more than 700 jobs next month at the Dulles, VA headquarters. The cost-reducing measures are partially due to the company’s loss of customers to competing companies. Approximately 5,000 of AOL's 13,000 U.S. employees are located in Northern Virginia. Read Washington Post story

Suburban Maryland: Tech Commercialization Initiative Renewed - The Patuxent Partnership, along with the Maryland Technology Development Corporation, announced the $1.26 million renewal of the NAVAIR Technology Commercialization Initiative (NTCI). The program facilitates the transfer of technology being developed by the U.S. Navy into the commercial sector. NTCI provides seed funding to initiate development of technologies through a fund that can award up to $75,000 to for-profit companies to assist with technology development projects. Since 2001, 11 Maryland businesses have received financial support. More info

Washington, DC: Baseball’s Back; New Stadium To Serve as Economic Catalyst - Downtown DC is buzzing with news of a Major League Baseball team returning to the area after a 33 year absence! On Sept. 29, MLB announced that the Montreal Expos franchise will move to Washington’s RFK Stadium for the 2005 season. After three years, the team will begin play in a new, state-of-the-art ballpark to be built on the Anacostia waterfront. The stadium is expected to provide long-term benefits to the community and catalyze the Anacostia Waterfront Initiative, a public-private collaborative effort to revitalize the neighborhoods surrounding the river.

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The Greater Washington Economic Barometer is a quarterly communication from GWI for business professionals on regional economic trends and news. For more information on the Economic Barometer or to be added to the distribution list, email greaterwashingtoninitiative@bot.org. To opt-out of this list, please reply to this message with UNSUBSCRIBE in the subject line. For regional statistics and news, visit our web site at www.greaterwashington.org. GWI is an affiliate of the Greater Washington Board of Trade.

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