Saturday, January 09, 2010
Va. chamber outlines ideas for new year
The chamber of commerce said lawmakers should lure new businesses to the region.
The latest from The Ticker blog
In spite of flat revenue for the year, the Virginia Chamber of Commerce will be back to promoting its traditional business values for transportation and economic development when the Virginia General Assembly convenes its annual session next week.
Hugh Keogh, president and CEO of the Virginia chamber, was in Roanoke on Friday, speaking about his group's visions for the new year, along with Clinton Morse, who will become chairman of the Virginia chamber's board later this month.
Morse is a labor law attorney for LeClair Ryan in Roanoke.
The two outlined priorities that they believe state lawmakers should address this year, but they did not offer specific solutions for some of the major issues, such as transportation funding and the need for stronger economic development.
The Virginia chamber and local chambers are nonprofit organizations that consider themselves spokespeople for the business community. They lobby lawmakers and sponsor educational and networking functions for members.
Businesses pay yearly fees to join a chamber. Dues are based on sales revenue and a firm's total number of employees.
Funding for state transportation needs is the primary issue for Virginia businesses this year, Keogh and Morse said Friday.
The state has a multibillion transportation revenue shortfall that has caused job loss, canceled construction projects and closed rest areas.
Poor infrastructure does not bode well for businesses "if you can't get your product delivered, your raw materials to your plant and your product out of your plant," Morse said Friday.
But a solution for finding the funds is not easy. Keogh said he's not opposed to tolls, but he's aware that the trucking industry does not favor them.
Regardless, the chamber will support governor-elect Bob McDonnell's initiatives, Keogh said, adding that "the governor unmistakably, unequivocally ran on a platform of no new taxes."
The Virginia chamber, which has about 1,000 members, also wants the state to pump up economic development marketing efforts and offer incentives to lure new businesses.
Still, because the state budget is strapped, "That calls for some almost dramatic reordering of priorities," Keogh said.
The chambers face economic challenges of their own. The economic downturn has forced some businesses to give up their chamber memberships.
Total members dropped 3 percent in 2009, from 2008, for the Virginia chamber, and its revenue from membership dues was $5,000 higher than 2008, which essentially is flat, Keogh said.
"We're not able to grow," he said. "We're not able to add programs or add lobbyists."
Also, total revenue in 2009 was flat, at about $1.2 million, Keogh said.
Dues and member totals also were flat for the Roanoke Regional Chamber of Commerce last year, compared with the previous year, President Joyce Waugh said. The Roanoke chamber has about 1,300 members.
Significant membership and revenue loss forced the city of Radford to bail out its local chamber last year. In August, Radford gave the Radford Chamber of Commerce $10,000 after 25 of the chamber's members shut down and 20 to 25 more dropped their memberships. The chamber lost $6,955 in revenue and at least $8,000 in open invoices and bills due.
"It is a tough time for chambers and especially for smaller local chambers who don't have the business base to rely on," Keogh said.
Still, sticking to his advocacy role, Morse said Friday that businesses should try to retain their chamber investment.
"It's penny-wise and pound-foolish to cut your chamber memberships, because that's your voice," he said. "Businesses need to be very proactive in explaining their side of the story, or we're going to wind up with a very different environment in which to do business in Virginia and the nation."
