THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Monday, January 20, 1997              TAG: 9701200248
SECTION: BUSINESS WEEKLY         PAGE: 16   EDITION: FINAL 
SERIES: 1997 FORECAST
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER 
                                            LENGTH:   48 lines

[1997 FORECAST] DEVELOPMENT: OFFICIALS FOCUSING EFFORTS ON LURING TECHNOLOGY COMPANIES

If economic development officials have their way this year, Hampton Roads will see more technology companies and high-paying jobs move into the region.

Because they recognize the area's limitations when issues of water, infrastructure and labor are raised, local economic development officials have talked about being choosier with the companies they encourage to settle in Hampton Roads.

``You have to be very selective,'' warned Donald Maxwell, Virginia Beach economic development director. By targeting high-paying industries like manufacturing or communication firms, the area can raise its level of wages and incomes, he said.

That would be good news for Hampton Roads, where per capita income and wages per worker lag behind the national average.

``Technology-centered companies is the direction we're all keeping our eye on and trying to push for,'' said Donald Goldberg, Chesapeake's economic development director. ``The technology companies are interested in doing R&D (research and development) kind of work, more manufacturing and assembly of products.''

Cities like Hampton are looking for additional business from industries related to those that have recently settled in the region.

``We hope suppliers will be moving to the community,'' said George Wallace, director of development in Hampton. Some vendors of computer marketer Gateway 2000 have started looking at locations on the Peninsula last year.

Although cities may be more selective about whom they invite, they'll continue to concentrate on the basics.

``The basic fundamentals of having infrastructure, education and a labor force in place isn't going to change,'' said Hugh Keogh, president of the Virginia Chamber of Commerce.

State officials echoed his sentiments.

``My emphasis on economic development this last year is aimed at small business, business retention, at work force training initiatives, all of which I think are more underrated aspects of economic development,'' said Virginia Secretary of Commerce and Trade Robert T. Skunda.

``But they're perhaps the more important things of our basic economic success. We have really got to have a good handle on these things.'' ILLUSTRATION: [Color Photo]

KEYWORDS: 1997 FORECAST ECONOMIC DEVELOPMENT