Best US location for Technology businesses
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This document provides an overview of doing business in Fairfax County, Virginia. It highlights the key advantages such as access to major markets along the East Coast within a day's drive, a productive workforce, proximity to universities and R&D centers, and assistance from the Fairfax County Economic Development Authority. The document also discusses the major industries and business opportunities in sectors like IT, aerospace, defense, and homeland security. It provides information on taxes, real estate, workforce, education, and quality of life to help businesses decide to locate in Fairfax County.
Best US location for Technology businesses
- 1. Doing Business in Fairfax County “…One of the great economic success stories of our time.” TIME Magazine Siddharth Sarawgi Director – India FairfaxIndia@fceda.org +91.80.64516669 www.FairfaxCountyEDA.org
- 2. What does a business require to succeed in the United States? • Access to markets • A productive labor force • University and R&D support • Ease of transportation access • Assistance in meeting the right people • A desirable place for employees to live www.FairfaxCountyEDA.org
- 3. ACCESS TO MARKETS www.FairfaxCountyEDA.org
- 4. Fairfax County,Virginia, U.S. Fai www.FairfaxCountyEDA.org
- 5. Location 60% of the U.S. population is within a Chicago, IL• day’s drive – or a two- hour flight – of Fairfax St. Louis, MO • 300 m County 600 m Charlotte, NC • 900 m www.FairfaxCountyEDA.org
- 6. Washington Dulles International Airport • Adjacent to Fairfax County, 21 miles from Washington, D.C., 12 miles from Tysons Corner • Served nearly 24 million people in 2008, including 5 million+ international passengers • Nonstop service to 83 domestic and 43 international locations • Undergoing $4 billion capital expansion program with new runway and underground rail system Two other airports serve greater Washington: • Baltimore-Washington International Thurgood Marshall Airport • Ronald Reagan Washington National Airport www.FairfaxCountyEDA.org
- 7. Fairfax County Facts Total Area............................................................ 1,023 square kilometers 395 square miles Park Land............................................................ 416 Park facilities 22,500 acres Population (2008).............................................. 1,015,302 Number of jobs (2Q2009).............................. 572,708 Office space (midyear 2009).................... 111.5 million square feet Corporate base (1Q2009).............................. 33,583 business establishments Technology companies (2008)...................... 6,184 Foreign-owned firms (2009)........................ 355 Bond rating....................................................... AAA (Sources: Standard & Poor’s, Moody’s, and Fitch; Virginia Employment Commission; US Census Bureau; FCEDA) www.FairfaxCountyEDA.org
- 8. BUSINESS OPPORTUNITIES IN FAIRFAX COUNTY www.FairfaxCountyEDA.org
- 9. Where Are the Opportunities? • Federal government agencies - $80+Billion IT budget • Federal procurement - ~$800+Billion • Washington Greater Area, VA, MD, local government -- $1.0B • Defense sector Homeland security, Transportation and Port security, Cyber security • Partner with integrator/reseller for: System integration / code development Business Process Outsourcing Shared Services Value added knowledge service Investments • Real Estate Properties –very low now • Firms in Chapter 11 status –low valuation • Acquisitions of Service/Product companies – low valuation www.FairfaxCountyEDA.org
- 10. Critical Mass of Technology Companies • Nearly 6,200 technology establishments in Fairfax County directly employ more than 143,000 people • Tech corridor between Washington, D.C. & Dulles Airport • The technology sector accounts for more than one in four jobs countywide www.FairfaxCountyEDA.org
- 11. Major Technology Sectors • Aerospace/Defense: British Aerospace, General Dynamics, Lockheed Martin, Northrop Grumman, Raytheon • Biotech/Biomedical: American Medical Laboratories (AML), Biovail, Covance, Envirogenesis • Energy: Exxon Mobil, Columbia Energy • Internet/E-Commerce: AOL, Primus, Technology Sectors in Fairfax County (Number of companies) UUNet, Verisign • Software: American Management System, Computer Associates, Landmark System Microstrategy, TRW, Oracle, Xybernaut • Systems Integration: BAE, BTG, DynCorp, EDS, Radian, SAIC Source: FCEDA analysis of 2008 VEC data www.FairfaxCountyEDA.org
- 12. “Access and Proximity” Defense, HLS, and IT $7.5 Northern Virginia is $15.0 Largest and strongest technology cluster in the nation Of the 20 largest regional SI firms, 18 are in Fairfax County Foreign companies sharing in success FY09 www.FairfaxCountyEDA.org
- 13. Federal Procurement • According to U.S. Census Bureau‟s Consolidated Federal Funds Report, companies in Fairfax County performed US $ 13.67 billion worth of procurement in Fiscal 2007 • Key Steps to Success Understand the Federal Market Get Practical Help Identify your Niche Cover the Basics Market your Business www.FairfaxCountyEDA.org
- 14. Trends, technologies and applications • Network/cyber security (e.g. consulting, risk analysis, firewalls, virus protection, e-commerce security, biometrics etc) • IPv6; WiMAX; Web 2.0 • Mobile applications, e.g., messaging • Geospatial and imaging applications • Clean/green technologies www.FairfaxCountyEDA.org
- 15. Information & Communications Technologies (ICT) • Northern Virginia is “Silicon Valley” for IT and Department of Homeland Security (DHS) Largest and strongest technology cluster in the nation Of the 20 largest system integrators in the region, 18 are in Fairfax County Foreign companies sharing in success www.FairfaxCountyEDA.org
- 16. Key IT Sectors in Fairfax County • Information Technology • Aerospace • Defense/Government • New Media • Network Security • Satellite Communications • Systems Integration • Telecommunications • Wireless • Green Technologies www.FairfaxCountyEDA.org
- 17. Homeland Security: IT Ground Zero • Federal agencies are buying IT ($80B)…… DOD, DHLS, NASA • Safe City / Port Security / First Responders • Transportation / Critical Infrastructure Network/cyber security / Bio-Defense Mobile applications e.g. messaging Perimeter defense and surveillance • Proximity to research and academia centers. • Leading SI and government contractors: www.FairfaxCountyEDA.org
- 18. Corporate Trends / M&A Foreign-owned communications firms: BT, China Telecom, Ericsson, Siemens, Orange Business Services/FT, T-Mobile, Detecon, TATA Communications, TeliaSonera Mergers and acquisitions Software AG (Germany) acquired WebMethods (April „07) IBM purchased Consul Risk Management (The Netherlands) (Dec ‟06) QinetiQ acquired Apogen, Planning Systems, Analex and 3H Tech („05-‟08) BT (UK) to acquire Comsat International (April ‟07) Irdeto (The Netherlands) acquired Cloakware (US/Canada) (Dec „07) Finmechanica (IT) purchased DRS Technologies (May „08) Elbit NA purchased Innovative Concepts (Nov‟08) Cisco announced the $3 billion acquisition of Tandberg (Norway) (Oct „09) Cobham (UK) made multiple acquisitions in 2009 CHEMRING (UK) purchase Allied Defense (Jan „10) www.FairfaxCountyEDA.org
- 19. DOING BUSINESS IN FAIRFAX COUNTY www.FairfaxCountyEDA.org
- 20. Taxes • Major Tax rates in Fairfax County Description Tax Corporate income 6 per cent Business Personal Property $ 4.57 per $ 100 assessed value Real Property (Residential) $1.04 per $ 100 assessed value Real Property (Commercial) $ 1.15 per $ 100 assessed value Sales and Use 5 per cent (4 per cent + 1 per cent local) Sales and Use (food for home 2.5 per cent consumption) (1.5 per cent + 1 per cent local) Personal Income 5. 75 per cent (top rate) Hotel/ motel 4 per cent (Transient Occupancy) www.FairfaxCountyEDA.org
- 21. Commercial Real Estate • Fairfax County is the largest suburban office market in the Washington metropolitan area and the largest office market in Virginia (Nearly 112 million square feet of office space) Average Monthly Rents for 2000 sft office space Class A: $ 5000 • There are about 30 executive office suites located in the County Average monthly rents: $800 for 200 sft www.FairfaxCountyEDA.org
- 22. Highly Skilled Workforce Measure Fairfax County United States Residents age 25+ with College degree (2008) 58.8% 27.4% Unemployment (4Q2009) 4.5% 9.5% Foreign Born Population (2008) 27.7% 12.5% Technology jobs as a % of total (2008) 24.6% 7.8% Median household income (2008) $106.8K $52.2K Source: U.S. Census Bureau, 2008 American Community Survey; Virginia Employment Commission www.FairfaxCountyEDA.org
- 23. Largest Fairfax County Employers Sources: Fairfax County Economic Development Authority, Dun & Bradstreet www.FairfaxCountyEDA.org
- 24. Associations and Partnerships • Northern Virginia Technology Council www.nvtc.org • TelecomHUB www.telecomhub.org • Center of Innovative Technology www.cit.org • Virginia Economic Development Partnership (VEDP) www.yesvirginia.org • Greater Washington Initiative (GWI) www.greaterwashington.org • ITAA / WITSA www.itaa.org www.FairfaxCountyEDA.org
- 25. Fortune 500 HQs in Fairfax County www.FairfaxCountyEDA.org
- 26. Foreign-owned Firms (355) www.FairfaxCountyEDA.org
- 27. LIVING IN FAIRFAX COUNTY www.FairfaxCountyEDA.org
- 28. Education Fairfax County Public School System • 12th largest in U.S. (2009-2010): 173,573 students in 197 schools/centers • Nationally recognized for excellence Higher Education • 70 colleges and universities in greater Washington • George Mason University‟s Fairfax campus: 31,000 students, 168 degree programs • University of Virginia and Virginia Tech: Northern VA Center, joint undergrad/grad campus www.FairfaxCountyEDA.org
- 29. Quality of Life www.FairfaxCountyEDA.org
- 30. FAIRFAX COUNTY VS. OTHERS www.FairfaxCountyEDA.org
- 31. Fairfax County/ Virginia Vs. Maryland www.FairfaxCountyEDA.org
- 32. Fairfax County/ Virginia Vs. Maryland www.FairfaxCountyEDA.org
- 33. HOW TO START YOUR BUSINESS IN FAIRFAX COUNTY www.FairfaxCountyEDA.org
- 34. Entering the US Market: A Roadmap 1. Market research the opportunity 2. “On the ground” business development Key partners (Integrator, Regional reseller, 8A firm) Expertise in the Federal Market sales Leads generation –direct sales –need reference!! Capture the business -- demonstrate dedicated support 3. Start small – grow gradually 4. Network with the business community 5. Build your brand presence-- PR / Marketing www.FairfaxCountyEDA.org
- 35. How Can FCEDA Help You? • Assisting with business introductions and connections • Identifying and showing possible location options • Providing information on the country‟s real estate market • Assisting businesses with building and planning processes and zoning regulations • Providing current market information about Fairfax County and Washington D.C. area • Providing information to employees relocating to the county • Providing information on venture financing, conventional banking services and other financial services www.FairfaxCountyEDA.org
- 36. FCEDA Outreach to India • A local FCEDA office in Bangalore – Innoversant Solutions (www.innoversant.com) • Outreach marketing activity • Fairfax County is home to 20+ Indian companies IT, Telecom, ITeS, S/W and Application development, Defense, Security • Tata Communications, Infosys, Satyam, Wipro • HCL Technologies America, IDS Infotech • EAI Technologies, Epass Central, CMC America • Indus Corp., Megasoft, Pingho Associates • Grintex, Vasu Export, Newgen Software www.FairfaxCountyEDA.org
- 37. Case Studies Tata Communications • Offers services ranging from co-location, managed hosting and storage, security, content delivery network and TelePresence services. • Started its operations in Fairfax in Jan, 2009 • The Fairfax office is equipped with a state-of-the-art Cisco-certified TelePresence room to host "virtual" meetings around the world. • The office accommodates around 100 employees “Fairfax County has been an outstanding place to do business for Tata Communications, and we are pleased to be able to grow into larger premises” - Dave Ryan, EVP, Tata Communications www.FairfaxCountyEDA.org
- 38. Fairfax County Economic Development Authority Head Office: 8300 Boone Boulevard - Suite 450, Vienna, VA 22182 www.FairfaxCountyEDA.org India Office: #62, 1st Cross, 2nd Main, Dollars Layout, J.P. Nagar 4th Phase, Bangalore 560078 www.FairfaxCountyEDA.in Email: FairfaxIndia@fceda.org Ph: +91-80-64516669 Overseas Offices: Bangalore, Frankfurt, London, Seoul and Tel Aviv www.FairfaxCountyEDA.org