Document Type
Book Chapter
Publication Date
2026
DOI
The State of the Region: Hampton Roads 2026
Pages
41-72
Abstract
The most recent economic data shows that the three-legged stool is tilting under the weight of conflicting economic policies. National defense spending has continued to expand, and we expect that, as a result, defense spending in Hampton Roads will also rise in the coming years. Declines in federal civilian employment will limit these gains, and the defense industrial base in the region faces an existential threat from the rise of uncrewed systems on the modern battlefield. The Port of Virginia performed well, gaining market share, but higher tariffs have negatively impacted the dollar volume of trade flowing through the Port. While the travel and tourism industry outpaced the post-pandemic national recovery, revenue growth has slowed, and real (inflation-adjusted) revenues have remained flat for several years.
Repository Citation
Dragas Center for Economic Analysis and Policy, Old Dominion University, "Part 2: Divergent Paths? Rising Defense Spending and Headwinds for the Port and Tourism" (2026). State of the Region Reports: Hampton Roads. 232.
https://digitalcommons.odu.edu/sor_reports/232