Our holiday tree is up, shimmering with treasured ornaments. As they come out of hibernation each year, I take stock: what’s good, what’s ratty, what deserves front-of-the-tree.

At year end, businesses take stock, too. They look at what worked, what didn’t, what strategies should be in play for 2008.

This year brought dramatic change to Virginia’s business community. Businesses came and went and continued to morph as they jockeyed for position in a 21st century global economy. After more than eight decades, Ford Motor Co. closed its assembly plant in Norfolk as part of an effort to restore profitability. As the last F-150 truck rolled off the line, more than 1,000 workers said goodbye to some of the best-paying manufacturing jobs in Hampton Roads.

Meanwhile, new players decided to call Virginia home: Volkswagen of America is moving its corporate headquarters to Fairfax County, and Rolls-Royce plans a new jet engine plant in Prince George County — developments expected to create 900 new jobs. Plus, Virginia’s R&D profile is on the rise with construction under way on SRI International’s new drug research facility in Rockingham County.

On the bright side, Virginia continued to rack up No. 1 rankings as the best state for doing business. But there’s still room for improvement. Just ask Northern Virginia how to spell r-o-a-d-s.

Before we get too woozy from the eggnog, whereupon even journalists have been known to bid good cheer, here’s a short list of some of the major business developments in 2007:

The housing industry
The subprime mortgage meltdown is starting to feel like a limbo contest. How low can you go? Some mortgage lenders already are out of business and major financial powerhouses have reported billion-dollar losses. Foreclosure rates stand at a 20-year high, a trend contributing to budget shortfalls in Northern Virginia, where localities rely heavily on real estate tax revenues to fund public services. However, a diamond remains among the lumps of coal. Median home prices in Virginia are still going up. In October, the median price was $232,478, way above the national median of $205,700, which dropped 6 percent compared to the same month in 2006.

Telecom
In this industry, developments are flying faster than Santa’s reindeer. Verizon ended the year with a major policy change. Come mid 2008, its expansive cell network will open to phones purchased from other vendors. The move will give customers more freedom when picking network providers and mobile applications.

Meanwhile, AT&T rolled out a new third-generation (3G) wireless broadband network in Richmond and Hampton Roads. Customers can check company e-mail or catch the latest video highlights of the Hokies’ upcoming Orange Bowl game, all from their phone. The AT&T team stopped by our office and demonstrated Video Share, a service that lets users share live video while carrying on a telephone conversation. Look, Grandma, here’s little Susie playing Bach at her recital.

Energy
It seems everyone is going green and looking for alternative energy sources. The Hopewell City Council recently voted to sell city land to a company that wants to build an ethanol plant downtown, and a biodiesel plant is coming to Lee County. Conversely, Chesapeake said no to a massive ethanol plant.

As the price of gasoline shot up at one point to nearly $100 a barrel, nuclear energy seemed poised for a rebirth. Richmond-based Dominion became the first investor-owned electric utility in the country to file an application with the Nuclear Regulatory Commission for a possible third reactor at North Anna. Altogether, applications for six new reactors have been filed with federal regulators in the last five months, and they expect more in the new year.

Nuclear power is cheaper to generate and doesn’t contribute to global warming like the burning of fossil fuels. However, disposing of nuclear waste remains a challenge.

Health care
Hospitals around Virginia are expanding as they brace for the aging of the baby boomers. The cost of health-care premiums continues to rise at many companies while small businesses struggle to even afford employee health care. Some relief could be on the way for small businesses if Virginia’s General Assembly signs off on a $7.7 million budget proposal from Gov. Timothy M. Kaine to assist businesses in purchasing health insurance. The move would cover about 5,000 people — out of an estimated 1 million who are uninsured in Virginia. Only a small step to be sure. Yet, isn’t that what a new years is all about? Trying new solutions to old problems.