Executive insights

Virginia Business asked six Hampton Roads leaders to discuss how their organizations are contributing to the region’s success and meeting challenges such as workforce recruitment and inflation.

DAWN GLYNN

President and chief experience officer, Corporate Services Group, TowneBank, Suffolk

How are your customers responding to inflation and higher interest rates? 

After many years of historically low interest rates, we are all facing increases in the cost of financing for any loan tied to a variable interest rate and any new loan applications. With mortgage rates doubling in the last year, some are putting off plans to buy a home or refinance.

Households and businesses are squeezed as the cost of living rises for everything from housing and construction to goods and services. Remember that your banker is a ready resource to provide insight during these uncertain times. There may be opportunities you have not explored in your banking relationship that can reduce your overall expenses. In any economic climate, we can develop strategies for growth and a path to achieving all of your financial goals. 

What is on TowneBank’s plate for 2024?

TowneBank will continue our focus on the health of local businesses and the support of organizations that provide vital services to our community. We also are fortunate to be celebrating our 25th anniversary next year. It is a reflective time as we look back on 25 years of serving others and enriching lives, with the help of our Hampton Roads community that has grown along with us. We also look ahead to a bright future, imagining the economic prosperity and innovation that we will work hard to support in each market we serve over the next quarter century and beyond.

PAT DAVIS-HAGENS

Market president, Bon Secours Mercy Health, Hampton Roads, Suffolk

Bon Secours is building a new hospital in Suffolk — how is construction going?

Construction continues on Harbour View Hospital, which is scheduled to open in 2025.

The approximately $80 million, 98,000-square-foot hospital will adjoin the existing Bon Secours Health Center at Harbour View campus, creating the new hospital. This new, surgically focused hospital will include 18 medical/surgical beds and up to four operating rooms, serving as an extension of the services currently offered on the campus.

Currently, the Health Center at Harbour View includes an emergency department, outpatient imaging, outpatient lab services, an ambulatory surgery center and physician practices. These services are being expanded to include a hospital with inpatient beds and operating rooms.

While most surgeries performed here will be scheduled ahead of time, the benefit of expanding our existing facility is that patients presenting in the emergency department will have access to hospital services on-site, including surgery, when appropriate. Residents will be able to receive hospital and surgical care in the community in which they live, without the need to travel to another city.

Health care staffing was challenging even before the pandemic. How are you tackling the problem in Hampton Roads? 

We are committed to rewarding and recognizing our talented clinical teams through investments in our compensation and benefits offerings, to attract and retain the best health care workforce in the region.

We have vacancies, as do many other hospitals and health systems, as the health care industry as a whole continues to face staffing shortages, but [we are making] steady progress in our recruitment efforts. Specialty physicians that practice in niche or unique settings can tend to be more difficult to recruit … due to the high demand for them in areas like neurology, vascular and cardiology. In the last year, we’ve reduced registered nurse turnover by almost 30%.

REAR ADM. WES McCALL

Commander, Navy Region Mid-Atlantic, Norfolk

How is the Navy Region Mid-Atlantic doing in terms of recruiting and retaining civilian employees?

We are continuously looking for new talent to welcome into our workforce, and our opportunities are vast. From positions as a first responder in our police and fire programs to morale and welfare opportunities in child care and counseling, we have career opportunities for just about anyone.

More than anything, we are really focused on being an employer of choice for our workforce by offering competitive pay and development opportunities that allow for professional growth.

Can you give us an update on land you expect to lease commercially in the Hampton Roads area, including 400 acres at Oceana?

NAS Oceana continues to seek partnership opportunities for leasing several of its underutilized parcels of land to help meet infrastructure and mission requirement challenges throughout the installation.

We are reviewing the requirements for the 113-acre lot known as the Former Horse Stables. If requirements determine a new request for proposal should be issued for that parcel, it will be posted on the government’s System for Award Management. In addition, NAS Oceana is considering releasing several requests for interest for other underutilized parcels at the installation.

What regional community institutions do you hope the Navy can partner with more closely in coming years? 

The Port of Virginia is literally one of our next-door neighbors in Hampton Roads, and we are exploring opportunities with them for some shared wins. The local colleges and universities in the area provide us great opportunity to partner more with them as they graduate talent looking for long-term employment, particularly with law enforcement, child care, dispatchers and a host of other great employment opportunities within the Department of Navy.

BRIAN O. HEMPHILL

President, Old Dominion University, Norfolk

How do you expect the integration of Eastern Virginia Medical College into ODU to change the health care landscape in Hampton Roads, and is the merger on track?

Old Dominion University is deeply committed to addressing the health disparities that are facing our region and its people. With that goal in mind, in December 2021, ODU entered into a partnership with Eastern Virginia Medical School, as well as Sentara Health, to enhance health care, strengthen educational programs, bolster the workforce pipeline and expand research capabilities. Since that time, we have made significant progress in establishing an academic health sciences center.

Legislation that passed during the 2023 session calls for the integration to occur on Jan. 1, 2024. 

How is ODU’s $500 million capital campaign going, and what are the challenges of fundraising amid high inflation?

Last October, we boldly and proudly launched a campaign to change the trajectory of Old Dominion, especially the opportunities for our students. To date, we have secured more than $300 million in funding. We are on track to complete this important effort in record time.

What is the biggest challenge in making higher education accessible and relevant to students, and how is ODU meeting those goals? 

Old Dominion University adopted a new strategic plan earlier this year. In the plan, we have intentionally and thoughtfully outlined the innovative steps that we will take to ensure that we are meeting the needs of students now and well into the future. ODU has a reputation for access and opportunity; however, we are equally committed to achievement and excellence. For example, we have pledged to be flexible by pursuing scalable and stackable offerings and remain affordable by exploring alternate tuition models. 

TOI HUNTER

Vice president, business retention and expansion, Hampton Roads Alliance, Norfolk

You joined Hampton Roads Alliance in 2020. What has changed since then in how you are assisting businesses to remain and grow in the region?

In 2020, when COVID was at its height, manufacturers were concerned with sourcing labor and shoring up their supply chains, while the business services industry pivoted to remote work, and wage arbitrage played a significant role in the cost of human capital. Industrial warehouse space reached historic demands, and local governments have shouldered the impacts to permitting and managing public concerns. Now, I am listening for how business intelligence data may play a role in analyzing consumer behaviors and optimizing operations for the companies I assist. In addition, I keep in mind that companies need help with developing the business case for remote work by balancing lease rates for likely renovated office space occupied two to three days a week, along with quality-of-life attributes to attract or retain a workforce.

Which external factors have the most influence on business retention?

There are several factors that can impact business and employee retention. Often internal corporate strategy sets the stage for how the company chooses to operate (or not) in their existing location — whether that be a decision to automate operations or reduce their footprint in implementing a remote work strategy.

Access to affordable child care options, training programs and workforce housing are major factors in ensuring that the workforce has the support systems in place to create a competitive regional labor market.

I would encourage human resources managers and operations leaders to connect with their economic and workforce development partners. There are programs designed to lower the costs for hiring new employees and training incumbent workers. For gaps in the available programming, a meeting between businesses and economic development is an effective approach to shaping policies related to those external factors impacting business growth.

DAWN KENNEDY

CEO, Hampton Roads Realtors Association, Chesapeake

The residential market has seen higher prices and interest rates this year. What do you anticipate for 2024? 

I have learned from many Realtors and from observing the industry as a Realtor association CEO that the market is cyclical and often in 15- to 20-year cycles. I think the key point for sellers and buyers is perspective. The National Association of Realtors’ chief economist, Dr. Lawrence Yun, is predicting that mortgage rates will fall to 6% or under in 2024, and new home sales will increase.

For commercial real estate, what factors are most affecting industrial, office and retail markets in Hampton Roads?

One only needs to drive around to see all the new construction happening. The need for multifamily housing has only increased with a tight residential market. Industrial markets are very much impacted by all forms of local and state legislation, but overall this market is very strong in Hampton Roads. Demand is high, but supply can become an issue.

Retail appears stable. However, like everywhere else in the nation, office is still lagging; many people and companies have seen the benefits of working from home. However, compared to the national average office vacancy rate, Hampton Roads is doing incredibly well. We are not that far off from pre-pandemic rates.

Which external factors have the most influence on local real estate?

I believe the huge naval complex here in Hampton Roads most likely has the largest impact on the housing market. I have worked in another market with a large military base, Tinker Air Force [Base, outside] Oklahoma City … and the sheer volume of ancillary and primary jobs these bases bring to an area benefits its citizens and the housing market.