Economy of Norfolk

In addition to commercial activities, Hampton Roads is a major military center, particularly for the United States Navy, and Norfolk serves as the home for the most important of these regional installations, Naval Station Norfolk, the world's largest naval station. Located on Sewell's Point Peninsula, in the northwest corner of the city, the installation is the current headquarters of the United States Fleet Forces Command (formerly known as the Atlantic Fleet), as well as being home port for the Second Fleet, which compromises approximately 62,000 active duty personnel, 75 ships, and 132 aircraft. The base also serves as the headquarters to the Allied Command Transformation (NATO) and the United States Joint Forces Command.

The region also plays an important role in defense contracting, with particular emphasis in the shipbuilding and ship repair businesses for the city of Norfolk. Major private shipyards located in Norfolk or the Hampton Roads area include: Huntington Ingalls Industries (formerly Northrop Grumman Newport News) in Newport News, BAE Systems Norfolk Ship Repair, General Dynamics NASSCO Norfolk, and Colonna's Shipyard Inc., while the US Navy's Norfolk Naval Shipyard is just across the Downtown Tunnel in Portsmouth. Most contracts fulfilled by these shipyards are issued by the Navy, though some private commercial repair also takes place. Over 35% of Gross Regional Product (which includes the entire Norfolk-Newport News-Virginia Beach MSA), is attributable to defense spending, and that 75% of all regional growth since 2001 is attributable to increases in defense spending.

After the military, the second largest and most important industry for Hampton Roads and Norfolk based on economic impact are the region's