Annual Report: VEDP Accomplishments in FY23
Summary
Virginia Economic Development Partnership (VEDP) report for FY23, with a copyright date of October 2023. The contents list Who We Are, Our Partners, Leadership Message, Impact Metrics, Features, Project Case Studies and Progress Reports, and the board of directors names William H. Hayter as Chair. The report states that VEDP was created in 1995 and has adopted five transformational goals, including Robust State Growth and Every Region Wins. It states that FY23 saw a record-breaking $40.8 billion in new capital investment and that 377 new leads were generated for Virginia.
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“Annual Report: VEDP Accomplishments in FY23.”
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Somic America, Inc., Wythe County DroneUp, Virginia Beach
Hilton Global Headquarters, McLean
Amazon Web Services, Fairfax County Weidmüller
CoStar Group
Group,
rendering,
Chesterfield
Richmond
County
I WHO WE ARE 5
II OUR PARTNERS 9
III LEADERSHIP MESSAGE 12
IV IMPACT METRICS 14
V FEATURES 23
01 Virginia Talent Accelerator Program Captures Manufacturing Reshoring, 24
Secures Top Ranking
02 Supply Chain Optimization Program Provides Lifeline to Virginia Businesses 28
03 Virginia Ramps Up Site Development Funding to Boost Project-Ready Sites 32
Portfolio
04 VOEE's First-of-its-Kind Dashboard Aims to Unlock the Potential of the Virginia 34
Workforce
05 Transforming Virginia Into a National Growth Leader: An Innovative Framework 38
for Economic Growth
06 A Deep Dive Into Opportunities in Southside and Southwest Virginia 40
VI PROJECT CASE STUDIES 44
01 Plenty Unlimited Inc. 44
02 DroneUp, LLC 47
03 Amazon Web Services 48
04 Skip Barber Racing School 51
05 Hilton 52
VII PROGRESS REPORTS 54
01 Strategic Plan 56
02 Operational Plan 59
03 Marketing Plan 60
Middlesex County
Cape Charles
Board of Directors
William H. Hayter – Chair Richard “Rick” O. Harrell, III
Retired President & CEO, President (retired), R.O. Harrell, Inc.
The First Bank & Trust Company
John Hewa
The Honorable Caren Merrick – Vice Chair President and CEO,
Secretary of Commerce and Trade, Rappahannock Electric Cooperative
Commonwealth of Virginia
April Kees
Ex Officio Member
Director, Virginia Senate Finance and
Nancy Howell Agee Appropriations Committee
President and CEO, Carilion Clinic Ex Officio Member
and Chair, GO Virginia
Pace Lochte
Ex Officio Member
Assistant Vice President for Economic
Carrie Hileman Chenery Development, University of Virginia
Principal, Valley Pike Partners
Anne Oman
Mimi Rainero Coles Director, Virginia House Appropriations
Marketing & Business Development Committee
Vice President, Permatile Concrete Ex Officio Member
Products Company
Marianne Radcliff
The Honorable Stephen E. Cummings President, Kemper Consulting, Inc.
Secretary of Finance,
Nick Rush
Commonwealth of Virginia
Agent, Krupin Partners LLC
Ex Officio Member
William D. Sessoms, Jr.
Stephen A. Edwards
Executive Vice President, TowneBank
CEO and Executive Director,
The Port of Virginia Steven David Stone
Ex Officio Member Equity Principal, Offit Kurman
3
4
WHO WE ARE
The Virginia Economic Development Partnership (VEDP)
is the state economic development authority for the
Commonwealth of Virginia. Created in 1995, VEDP
collaborates with local, regional, and state partners to
encourage the expansion and diversification of Virginia’s
economy. VEDP works to accomplish these objectives
through a variety of activities, including marketing and lead
generation; business retention, expansion, and attraction;
trade development; business intelligence; competitive
benchmarking; site development; performance-based
incentives; and talent solutions.
Working closely with partners, VEDP has adopted five
transformational goals for Virginia and VEDP that represent
the central focus of its work:
1. Robust State Growth. Position Virginia to achieve a
growth rate in employment and median earned income
among that of the top 5–10 states in the United States.
2. Every Region Wins. Ensure that every region participates
in the growth of the Commonwealth (i.e., all with positive
growth in employment and median earned income).
3. Best State for Business. Restore Virginia to its previous
position near the top of the national business climate
rankings (i.e., average rank among the top 3–5 states).
4. Top State EDO. Reestablish and sustain VEDP as one of
America’s most effective state economic development
organizations.
5. Super Collaborator. Exhibit collaboration and
coordination as hallmarks of VEDP (i.e., place a central
focus on the “P” in VEDP).
5
INTERNATIONAL TRADE VIRGINIA TALENT
Provides export development programs, services, and ACCELERATOR PROGRAM
grants to help Virginia companies grow their international
Provides customized recruitment and training
sales and optimize international supply chains
solutions that give Virginia a competitive edge in
securing business investment projects
RESEARCH REAL ESTATE SOLUTIONS
Conducts in-depth analysis and creates tailored Collaborates with partners to develop a portfolio
client materials that convey Virginia’s of Virginia properties that meet the needs of
competitive advantages companies
INCENTIVES FISCAL AND SUPPORT SERVICES
Reviews, vets, tracks, and coordinates VEDP’s Provides a financial framework for VEDP to
performance-based incentive programs, along with accomplish its mission through accounting,
incentive structuring for major projects budgeting, and procurement
MARKETING & COMMUNICATIONS BUSINESS INVESTMENT
Markets the Commonwealth to raise awareness of Collaborates with partners to implement lead
Virginia’s advantages for business and to cultivate generation and project management strategies
new leads
VIRGINIA OFFICE OF EDUCATION REGIONAL TALENT SOLUTIONS
ECONOMICS (VOEE) AND BUSINESS OUTREACH
Leverages data to guide educational and workforce Connects Virginia companies with workforce
policy and practice on the availability, quality, and solutions and collaborates with partners to
supply of talent in Virginia strengthen relationships with existing businesses
ECONOMIC COMPETITIVENESS EXTERNAL AFFAIRS
Develops strategies to improve the foundations for Oversees the budget, legislative, and policy
state, regional, and local economic growth development process; encourages collaboration
and coordination among partners
HUMAN RESOURCES INFORMATION TECHNOLOGY
Seeks to hire, retain, and develop the best and the Supports VEDP’s technology platforms, including
brightest to accomplish VEDP’s mission and goals a variety of custom tech solutions
VEDP's Global Network
FOREIGN DIRECT INVESTMENT OFFICES Europe
VEDP’s international business investment offices implement lead generation Korea
strategies to identify and convert high-potential foreign direct investment leads
and prospects into project opportunities for Virginia. Japan
Taiwan
TRADE REPRESENTATION
VEDP's network of international research consultants covers more than 123 countries around the world.
These experts provide in-country market research for Virginia exporters, specific to the needs and
opportunities for each company.
8
Our Partners
VEDP conducts its work in
collaboration with hundreds
of economic development
partners. Core VEDP partners STATE COUNCIL OF HIGHER
EDUCATION FOR VIRGINIA
include the Governor and
the Administration, Virginia
General Assembly, other
state agencies, 17 regional
economic development
organizations, and over 100
local economic development
partners, utilities, railroads,
and trade associations.
G I NIA
VI R
9
Regional Economic
Development Organizations
Unaffiliated localities
10
11
Leadership Message
FY23 was a year of successes and new beginnings regions of the Commonwealth in continued economic
for VEDP, with Virginia securing the largest capital progress.
investment in state history, achieving a coveted
This annual report details some of VEDP’s notable
workforce development milestone, and embarking upon
accomplishments in FY23, all of which were made
an innovative, ambitious plan to strengthen the way the
possible by the great work and support of our local,
Commonwealth approaches economic development.
regional, and state partners, including Gov. Glenn
The historic investment came in January 2023, when Youngkin, Secretary of Commerce and Trade Caren
Amazon Web Services (see page 48) announced plans to Merrick, the Virginia General Assembly, members and
invest $35 billion and create at least 1,000 total new jobs staff of the Major Employment and Investment (MEI)
by 2040 to establish multiple data center campuses Project Approval Commission, The Port of Virginia, the
across Virginia. Months later, as FY23 wrapped up in late Virginia Chamber of Commerce, the Virginia Economic
June, the Virginia Talent Accelerator Program earned the Developers Association, county and city government
top spot in the Business Facilities Customized Workforce leaders, and countless other state, local, and regional
Training ranking for 2023 (see page 24). All of this took economic development partners.
place as VEDP began work on a major new initiative, the
Through a combination of leadership, dedicated staff
Innovative Framework for Economic Growth (see page
work, and active support from our partners, VEDP and
38), a new operating model to achieve nation-leading
Virginia have made significant progress toward achieving
economic performance by leveraging a whole-of-
each of our five transformational goals (see page 55)
government approach and deeper collaboration with
— despite much of the implementation period occurring
local and regional partners to accelerate Virginia’s core
against the backdrop of the COVID-19 pandemic.
growth sectors: knowledge work, manufacturing, and
Nevertheless, there is much work left to do, and VEDP’s
logistics.
mission will be more important than ever in the coming
We continue to work collaboratively to position Virginia years as Virginia works to achieve nation-leading
for a strong economic trajectory following the economic economic growth with every region of the
disruptions caused by the global pandemic. As FY23 Commonwealth participating in that progress.
drew to a close, Virginia posted a labor force participation
Thank you for your interest in VEDP and your support
rate of 66.6%, its highest mark since January 2013. VEDP
for economic development in Virginia. Together, we are
and its partners are striving to maintain that momentum,
positioning the Commonwealth for a healthy and vibrant
drive robust job and wage growth, and leverage all
economic future.
WILLIAM H. HAYTER JASON EL KOUBI
Board Chair FY23 President and CEO
12
Colonial Beach
A Strong Year for
Business Development
in the Commonwealth
VEDP-assisted project
announcements
VEDP, in collaboration
with its local, regional,
89
and state partners, had
a tremendous FY23.
The year’s remarkable
performance was
PROJECTS highlighted by a record-
breaking $40.8 billion in
new capital investment.
10,866
DIRECT JOBS
VEDP-generated leads
$40.8b 377 228
LEADS LEADS
CAPITAL INVESTMENT CREATED CONVERTED
14
FY23 LEAD GENERATION PROGRAM BY THE NUMBERS
64,000+ Prospect calls completed by
VEDP’s Call Center
29,000+ Prospects targeted
1,400+ Prospect meetings conducted by
VEDP’s business managers
377 New leads generated for Virginia
124
Corporate prospects visited Virginia as
a result of VEDP-generated leads
40
Project wins for Virginia from
VEDP-generated leads
BUSINESS INVESTMENT: PARTNER AND CLIENT SATISFACTION
VEDP implements partner and client surveys to assist in evaluating project management
effectiveness. The program received high approval in FY23.
Project management
Strongly Agree Agree Disagree
Overall average response that
VEDP effectively manages 85.6% 14.1% 0.3%
economic development projects
15
INTERNATIONAL TRADE
482 COMPANIES PARTICIPATED IN INTERNATIONAL
TRADE PROGRAMS AND SERVICES IN FY23
167 121 107
Market research by VEDP Trade missions and trade International Training
staff and a network of in- shows place Virginia exporters Program provides access
country consultants helps directly in front of potential to training and courses on a
Virginia exporters access international customers, wide variety of international
opportunities and market including eight missions trade topics such as
information in more than hosted by VEDP per year and international marketing,
120 countries. participation in seven major accounting, legal services,
international trade shows. and more.
94 71 61
State Trade Expansion Trade Show Program (TSP) Virginia Leaders in Export
Program (STEP) offers grant provides resources for Trade (VALET) Program, a
funding for international travel Virginia exporters exhibiting two-year export accelerator
and global marketing individually at international program, assists participating
activities. trade shows. companies to develop and
implement an international
sales strategy utilizing the
full range of VEDP’s export
development resources.
60 60 28
Supply Chain Optimization Regional Export Program Global Defense Program
Program (SCOP) helps (REP) gives exporters (GDP) is designed to meet
companies evaluate and access to a range of VEDP the specific needs of exporters
streamline their supply chain International Trade services in the defense industry and
management and import and ongoing counseling to provides participants with
processes through counseling, reach specific export goals in access to VEDP’s services to
strategy development, and just one year. target one or two global
resources to improve markets over one year.
performance and reduce costs.
16
INTERNATIONAL We were very nervous about the
TRADE CLIENT ability to meet orders, but now the
nervousness is completely gone.
SATISFACTION We’ve got inventory, we can fill
large orders now, and we know
that if we get another set of large
International Trade orders, we’ll be able to fill it.
achieved exceptionally
high scores for the COLIN DUNN
quality of its programs CEO and Founder, Fend Inc.
and services in FY23.
99%
Companies that were
“extremely likely” or “likely”
to recommend VEDP’s export Fend Inc., Arlington County
assistance programs to other
Virginia companies
97% PERFORMANCE METRICS
Companies that rated the
In FY23, more than 480 Virginia companies utilized VEDP’s export
quality of VEDP International assistance and supply chain optimization programs and services
Trade’s export assistance as to expand their international sales and meet new customers
“excellent” or “above average”
overseas. These companies reported strong international sales
numbers, attributing over $1.5 billion in new or existing sales
99% to their work with VEDP. In total, over 13,000 jobs in the
Commonwealth in FY23 can be attributed to the work of
VEDP’s International Trade Division.
Companies that were
“extremely likely” or “likely” to
use VEDP International Trade
for export assistance in the
future
Performance Metric (FY23) Description Actual
97%
Companies enrolled in Number of companies enrolled in 482
programs VEDP Trade programs
International sales Total international sales attributed to $1.5B
Companies that say VEDP VEDP Trade programs
International Trade helped
their company work toward Trade-supported jobs Trade-supported jobs from companies 13,123
achieving its strategic enrolled in VEDP Trade programs
international goals
17
VIRGINIA JOBS INVESTMENT PROGRAM (VJIP)
262
Client projects supported with the
Client projects supported with the VJIP incentive
VJIP incentive
77
54%
Localities had a VJIP-supported project
Half of VEDP-assisted project wins
supported by the VJIP incentive
54%
24
VEDP-assisted project wins supported by the VJIP incentive
VEDP-assisted project wins led by
$32.37
the Talent Solutions regional team
(projects representing 1,587 jobs
and $248 million CapEx)
Average hourly wage for VJIP projects
4,873
Jobs supported by VJIP projects
$951 M
Capital investment for VJIP projects
100%
FY23 VJIP Client Satisfaction Survey respondents "strongly agree"
or "agree" that VJIP contributed to their growth and success
18
ZIM American Integrated Shipping Services Co., LLC, container ship at
Virginia International Gateway
EXISTING BUSINESS OUTREACH
VEDP’s Regional Talent Solutions and Business Outreach team meets with Virginia businesses in collaboration with
our local and regional economic development partners to foster relationships with companies that drive Virginia’s
economy and highlight existing business needs, particularly around talent. These efforts uncover challenges that
might cause businesses to consider relocating, identify potential growth opportunities, and cultivate supplier
ecosystems domestically and internationally. Workforce challenges (quantity, quality, and/or retention) were
the dominant concern across all industries and in all regions.
415 552 69%
Existing business outreach visits (61% manufacturing Consultative services Businesses visited
sector; 12% professional, scientific, and technical sector; delivered, including had an optimistic
7% supply chain management sector (transportation, 361 connections with business outlook
warehousing, and wholesale trade); 20% other) partner organizations
19
20
Frank Williams joined Mack Trucks, Inc., in Roanoke County in 2020 as
a product auditor after 20 years working mostly on his own at another
auto manufacturer. That work history left him uncomfortable leading
a team. In 2021, a member of Mack’s leadership team suggested
he take a leadership course at Virginia Western Community College
(VWCC) funded through the Virginia Jobs Investment Program. Frank
was promoted to process quality associate in 2022 and continues to
work toward his associate’s degree in mechatronics at VWCC.
I have no doubt that the training I received has equipped
me with the tools I need to take on this new role —
self-confidence, approach, and most importantly, my
people skills. When I am working with our production
and quality teams with issues, I rely on the methods
that I learned to help me contribute to solving whatever
problems come our way.
FRANK WILLIAMS
Process Quality Associate, Mack Trucks Roanoke Valley Operations
21
Peaks of Otter, Bedford County
FEATURES
01 Virginia Talent Accelerator Program Captures Manufacturing Reshoring,
Secures Top Ranking
02 Supply Chain Optimization Program Provides Lifeline to Virginia
Businesses
03 Virginia Ramps Up Site Development Funding to Boost Project-Ready
Sites Portfolio
04 VOEE's First-of-its-Kind Dashboard Aims to Unlock the Potential of the
Virginia Workforce
05 Transforming Virginia Into a National Growth Leader: An Innovative
Framework for Economic Growth
06 A Deep Dive Into Opportunities in Southside and Southwest Virginia
Virginia Talent Accelerator Program Captures
Manufacturing Reshoring, Secures Top Ranking
The Virginia Talent Accelerator Program accelerates location. The Talent Accelerator team also produced
facility startups and expansions by expediting recruiting recruitment videos designed to give interested job
and shortening the new-hire learning curve through candidates a peek inside each company, showcasing
highly customized services. The program’s innovative everything from their processes to what has inspired
approach to supporting job creation projects earned people to build a career there. This work was
Virginia the top spot in Business Facilities’ Customized completed in the weeks between each company’s
Workforce Training rankings for 2023. official commitment to Virginia and the Governor’s
announcement. The Talent Accelerator’s signature
In FY23, the program helped the Commonwealth best practice is to have all assets and a strategic ad
continue to capture the reshoring wave of campaign in place and ready to go live at the time of the
manufacturing to the United States. Talent Accelerator announcement to leverage the publicity generated and
projects from FY23 featured multiple electronics capture talent for the future job openings.
equipment manufacturers, part of the more than
11,000 jobs across Virginia that the program has The results have been impressive: the average
helped secure since its launch in 2019. response time between the public announcement
and registration of the first applicant is 18 minutes.
Delta Star, Inc., the largest, American-owned medium Delta Star, Weidmüller, and Zollner all saw hundreds
transformer manufacturer in the United States and of new applicants within a matter of weeks. This
the premier manufacturer of mobile transformers in recruiting support is just the beginning. The Virginia
North America, will invest $30.2 million to expand its Talent Accelerator Program will create training fully
manufacturing and headquarters operation in the customized to each company’s unique processes,
City of Lynchburg, creating 149 new jobs. equipment, and procedures. Customized training for
Delta Star will range from an overview of transformer
assembly to 3D animations showing what happens deep
The Virginia Talent Accelerator Program also helped
inside a sealed transformer, all produced by the Talent
secure the expansion of German company Weidmüller
Accelerator’s in-house team of illustrators. For Zollner,
Group, a provider of smart industrial connectivity
this can cover everything from multimeter calibration to
products and solutions that connect and automate
the use of surface-mount technology in the production
electrical power and signaling for components,
of printed circuit boards.
machines, and installations worldwide, which will
create more than 100 jobs in Chesterfield County.
Another German company, Zollner Elektronik AG, one
of the world’s largest manufacturing service providers
for electronic and mechatronic components, will invest
a combined $18 million to expand in Danville and
Loudoun County, growing its market presence in the The Commonwealth of Virginia offers
U.S. and creating 100 new jobs. a unique set of advantages … along
with exceptionally well-executed and
On all three projects, the Virginia Talent Accelerator supported workforce development
Program’s work began immediately with the and recruitment.
development of highly customized recruitment
websites that feature the career and lifestyle
JASON GREENE
opportunities unique to each company’s Virginia CEO, Delta Star, Inc.
24
Weidmüller Group, Chesterfield County
State workforce program rankings
2018–2023
Area Development Business Facilities
1
2
3
4
5
6
7
8
9
10
2018 2019 2020 2021 2022 2023
Source: Area Development; Business Facilities
25
The LEGO Group is one of the high-profile clients of the Virginia
Talent Accelerator Program, recently named the top customized
workforce training program in the country by Business Facilities.
Talent Accelerator services for the LEGO Group included a
customized recruitment website that drew more than 3,000 job
candidates within 36 hours and customized recruitment and
training services delivered by Brightpoint Community College
and the Community College Workforce Alliance.
The Virginia Talent Accelerator Program team took
the time to learn our business, culture, and processes
in order to recommend and support a very effective
customized solution for our startup factory operation.
They enabled us to attract a qualified candidate pool,
conduct effective per-hire assessment training, and
design and deploy a signature onboarding experience
for all levels of employees. They use innovative and
data-driven approaches and they are a valuable
extension of our team.
KERRELL BRYANT
Senior Talent Consultant, The LEGO Group
26
27
Supply Chain Optimization Program Provides Lifeline
to Virginia Businesses
Two seemingly unrelated companies are proof of to the material changes based on the engagement,
concept for a program with the potential to transform Somic has benefited from improved relationships
supply chain operations for Virginia companies. with its suppliers as a result of the planning work
Fend Inc. is a small cybersecurity provider that ran done together.
into supply issues during the depths of the COVID-19
pandemic. Somic America is a large auto parts Those improvements have resulted in quantifiable
manufacturer that wanted to build supply chain outcomes. In 2022, Somic missed a dozen shipments
resiliency in case of future disruptions. from suppliers. In the first half of 2023, the company
reported just one missed shipment, the result of
Fend and Somic are two success stories from circumstances beyond the control of Somic or the
VEDP’s Supply Chain Optimization Program (SCOP), supplier in question.
believed to be the country’s first state-led supply chain
assistance program. SCOP is designed to help Virginia Fend, meanwhile, also benefited from increased
companies evaluate and streamline their supply transparency in its supplier relationships. SCOP
chain management and import processes through helped leadership develop methods to get priority
counseling, strategy development, and resources to for components and expedite deliveries, but just as
improve performance and reduce costs. valuable, the company came away from the process
with greater understanding of the nuance of the supply
Based in Arlington County, Fend makes products chains for its key components — and the company
that protect critical infrastructure from cyberattack. made it through the pandemic without having to turn
The company got through the early portions of the down an order based on supply concerns. Taken
pandemic without major issues, but supply chain together, Fend and Somic serve as proof of concept for
shortages eventually caught up to them as key how SCOP helps companies evaluate and streamline
components came into high demand from other their supply chain management and import processes.
companies in similar situations. As founder and CEO
Colin Dunn put it, “Designs assume an infinite supply
of everything you ever needed,” and the company
suddenly needed to build resilience into its operations.
Somic, located at the intersection of Interstates 81
and 77 in Wythe County, depends on infrastructure During COVID, we purposely built up
and friction-free logistics operations to keep its our raw material inventory to try to
products moving. Jeff Dunnack, the company’s general protect us from missed shipments.
manager of supply chain management, helped keep Working with our suppliers through
the company moving during the pandemic and the this program, we’ve been able to
associated freight and trucking backups, describing
reduce that raw material inventory
the effort as “fighting a losing battle,” and thought
by 25%, which frees up cash, which
SCOP could provide an outside perspective on what
makes everybody happy.
the company could do better.
Through VEDP and SCOP, Somic engaged with a
JEFF DUNNACK
management consulting partner, which helped the General Manager of Supply Chain Management,
company work with its suppliers to develop more Somic America, Inc.
meaningful key performance indicators. In addition
28
Somic America, Inc., Wythe County
PARTNER AGENCIES:
G I NIA
VI R
29
30
Anne Vaughan Designs in Floyd designs and creates
handcrafted jewelry collections that can be found online at
AnneVaughanDesigns.com as well as in unique boutiques and
stores both in the United States and international markets.
Interested in growing their export sales through e-commerce
channels, the company turned to VEDP International Trade for
assistance in developing their international digital marketing
strategy and updating their website to better target and convert
international leads.
VEDP's expertise in international business assisted
our small company with developing an international
strategy, conducting market research, connecting
us with providers to implement the plan, as well as
funding to offset some of the expense connected to it.
With their support our international sales have gone
from almost nothing to a regular part of our business.
VEDP is my go-to entity for international business
questions and guidance.
AARON VAUGHAN
Co-Founder, Anne Vaughan Designs
31
Virginia Ramps Up Site Development Funding to
Boost Project-Ready Sites Portfolio
VEDP analysis showed that a lack of prepared sites Commonwealth’s infrastructure with more competitive
cost Virginia more than 52,000 direct jobs and $120 project-ready sites and attract new business and
billion in capital investment between 2016 and 2022. expansions. The program’s goal is to identify, assess,
Industrial projects looking for sites larger than 250 and improve the readiness of industrial sites with at
acres represent the majority of potential industrial jobs least 100 contiguous, developable acres or 50 acres in
and more than 75% of potential capital investment. the western part of the Commonwealth. Localities can
apply for grants to assist with the costs associated with
As of October 2022, just 9% of the properties in the initial assessment and the development required
Virginia’s real estate portfolio were classified as to increase a site’s current Tier designation level.
Tier 4 (project ready) or above, with more than half
of the Commonwealth’s sites classified as Tier 1 or In January 2023, an unprecedented $90 million in
2 — years from potential consideration for economic VBRSP development grants was announced for
development projects. In coordination with state, 21 sites across Virginia. Thanks to the Governor,
regional, and local partners, VEDP is accelerating its his administration, and General Assembly
work to close that gap through targeted investments members making the investment a priority, the
in Virginia’s sites inventory aimed at helping the VBRSP is now strengthening the Commonwealth’s
Commonwealth compete for these projects. infrastructure and driving economic growth.
In 2021, VEDP established the Real Estate Solutions The VBRSP team is actively working to prepare these
Division to build on the progress made through Virginia’s sites for future economic development projects. VEDP’s
first-in-the-country site characterization initiative, which new Site Development Task Force, which includes
evaluated more than 460 sites of 25 acres or more across government and utilities partners, complements VBRSP
the Commonwealth. This team analyzes, develops, and by coordinating other activities that are key to advancing
implements solutions to address the sites and buildings sites to a project-ready stage. The Task Force will help
needs of economic development projects across Virginia. fast-track development timelines and enhance Virginia’s
portfolio of viable sites, helping the Commonwealth build
The Real Estate Solutions Division also administers the on existing momentum and continue to make progress
Virginia Business Ready Sites Program (VBRSP), which on site development.
helps characterize and develop sites to enhance the
Size and certification status of sites across Virginia
Commonwealth Crossing, Martinsville-Henry County
VOEE’s First-of-its-Kind Dashboard Aims to
Unlock the Potential of the Virginia Workforce
Virginia is developing groundbreaking insights in The dashboard allows users to specify their criteria by
the connections between education and the labor geographical area and various occupation categories,
market to unlock the potential of the Commonwealth’s providing a holistic look at the workforce in a particular
workforce. The desire to improve employment occupational group or career cluster. Users can further
outcomes for Virginians drove the creation of the analyze the data through the lenses of educational
Virginia Office of Education Economics (VOEE), programming, workforce projections and alignment,
established in 2021 to provide a unified, consistent job postings, demographics, and graduate earnings,
source of information and analysis on linkages as well as focus on a specific occupation at the
between education and employment outcomes. regional and state levels and assess supply,
VOEE’s mission is to leverage data to inform demand, and underlying workforce dynamics.
educational programming, policy, and workforce
partnerships across the Commonwealth. While the dashboard is not predictive, policymakers
can use its insights to estimate whether the labor
In developing its priorities, VOEE realized that there pool is likely to be sufficient to fill future needs and
was no one-stop shop for data on the intersections make informed decisions on how to manage the
between education and employment. The first-of- availability of qualified workers. The data can be used
its-kind Virginia Education and Workforce Alignment to evaluate funding streams and provide direction as
Dashboard was developed to provide that information to how various agencies and partnerships make new
and support the office’s mission. The dashboard, investments to prepare the future workforce, or to
currently in the beta stage, aggregates data around look closely at bigger-picture issues like the supply of
state and regional workforce dynamics for key education programs around a particular occupation,
industries to help inform policy development and diversity in pre-career programs and how that affects
implementation related to talent development. The the workforce, and whether a need exists to recruit
dashboard integrates data from multiple sources, more aggressively in a particular field.
including the State Council of Higher Education for
Virginia, job postings, and other sources. Learn more at www.voee.org/data/
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34
One-Stop Shop for Data on the Intersections Between Education
and Employment
Virginia Post-Secondary Education and Workforce Job Posting Analytics
Completion Dashboard Alignment Dashboard Explorer
The Virginia Post-Secondary The Education and Workforce The Job Posting Analytics
Completion Dashboard offers Alignment Dashboard provides Explorer is a dashboard
a comprehensive look at insights into how Virginia's higher that provides users the
student enrollment and degree education institutions align with ability to research the most
completion data from colleges job demands across different recent 12 months of online
and universities affiliated with geographic regions. Users can job postings in a region
the State Council of Higher view data through four regional based on a selected VOEE
Education for Virginia (SCHEV). lenses and choose from 120 VOEE occupation group.
occupational groups.
35
Jillian Ylagan studies computer science at Virginia Tech,
helping to fill the talent pipeline in a growing field in Virginia and
nationwide. Virginia Tech and the Commonwealth’s other higher
education institutions benefit from Virginia’s $2 billion Tech Talent
Investment Program, which provides funds for hiring new faculty
members, upgrading equipment, labs, and facilities, and attracting
diverse students.
During my time at Virginia Tech, studying Computer
Science has been an incredible experience. While in
this program, I have developed many coding skills
that I’ve used in multiple technical interviews so far.
As I learn more, these skills will not only enhance
my future interviews but will also be useful in my
future career. In addition, the career fairs have been
a great way for me to meet potential employers and
prepare for life after graduation. I’m really excited to
start my senior year, and I can’t wait to explore the
opportunities that I have while continuing to learn
and grow at Virginia Tech.
JILLIAN YLAGAN
Computer Science Student, Virginia Tech
36
37
Transforming Virginia Into a National
Growth Leader: An Innovative Framework
for Economic Growth
VEDP and its state, regional, and local partners are Evolving from a more generalist model, VEDP is
implementing a new operating model with the goal establishing core sector teams that will provide
of cementing Virginia as a national leader in economic dedicated focus on knowledge work, manufacturing,
growth. The Innovative Framework for Economic Growth and logistics:
aims to accelerate growth across Virginia by building
a model that leverages deep focus, expertise, and
Knowledge Work
collaboration in Virginia’s core growth sectors (i.e., the
sectors with the largest employment growth potential Business Services
over the next several years) in order to attract and Financial Services
expand businesses across the Commonwealth. Software & Cybersecurity
Aerospace & Defense Innovation
This new model is grounded in the Strategic Plan for
Economic Development of the Commonwealth, which
Manufacturing
includes five transformational goals that continue to
guide all of VEDP’s work. The Innovative Framework Advanced Materials
is designed primarily to accomplish the first of those Food Processing & Manufacturing
goals: Position Virginia to achieve a growth rate Biopharmaceuticals
(measured by employment and earned income) among
that of the top states in the country. Logistics
The Innovative Framework includes three key elements:
(1) new dedicated teams at VEDP that provide capacity, By establishing these new sector teams, VEDP
expertise, and relationship management for each will be uniquely positioned to provide an in-depth
core growth sector, (2) a deep focus on sector-based understanding of industry and company needs and
ecosystem building activities within each sector to develop distinctive solutions that unlock the growth
complement Virginia’s traditional strengths in economic potential of Virginia and all of its regions. The sector
development project management, and (3) collaboration teams will take a holistic and proactive approach
across the Commonwealth to align these sector- that will include coordinating whole-of-government
focused activities at the state, regional, and local initiatives aligned with local and regional economic
levels for greater impact. development partners to leverage ecosystem building
(e.g., talent pipelines, infrastructure development, tax
This whole-of-government alignment will enable VEDP, and regulatory policy) and develop a pipeline of leads
other state organizations, and local and regional in the core growth sectors.
partners to take a state-of-the-art approach to
accelerate the economic growth of Virginia and all of The Innovative Framework for Economic Growth
its regions in these core growth sectors. As Virginia will complement VEDP’s continued commitment
Economic Developers Association President Christina to excellence in other existing functions, including
Winn said, “I’m excited for our regions and localities a focus on deal excellence and collaborative
to flex their creative muscles, seizing opportunities to engagement with partners across the Commonwealth,
collaborate with industry and stakeholders in fresh, to achieve transformational project wins and solidify
innovative ways.” Virginia’s advantages into the future.
38
Roanoke Star
39
A Deep Dive Into Opportunities in Southside
and Southwest Virginia
In the 2022 Session, the Virginia General Assembly tasked the VEDP via House Bill 894 to determine
whether barriers exist for infrastructure and supply chain investments in Southside and Southwest Virginia.
The bill also requested a review of incentives that the Commonwealth and its localities should utilize or
develop to retain businesses and promote new infrastructure and supply chain investment.
VEDP’s Economic Competitiveness team immediately got to work, leveraging data from a variety of
sources and engaging with more than 50 partners — including local governments, economic developers,
regional organizations, academic institutions, nonprofits, private sector companies, and state agencies —
to identify existing barriers and provide recommendations on how to address those barriers.
Many of the challenges facing Southwest and Southside Virginia today stem from the decline of four
key industries — furniture, textiles, tobacco, and mining. The region has seen a loss of production and
employment over the last four decades, beginning in the 1980s. Across Southwest and Southside, over
$2.2 billion in Gross Domestic Product (GDP) and 60,000 jobs disappeared from just those four industries
alone. Due to the high concentration of these industries in the regions, their loss led to the general decline
of the regional population and economies of Southwest and Southside Virginia.
VEDP’s review of barriers to infrastructure and supply chain investment in Southwest and Southside
identified five core challenges:
■
Limited economic development staff
■
Lack of available workforce, driven by limited workforce development program capacity, lack of
workforce housing, lack of childcare and healthcare facilities, and limited amenities to attract new talent
■
Limited portfolio of prepared sites and buildings
■
Remoteness from key infrastructure
■
Competitive business incentives
Based on extensive input received from community stakeholders, the report’s recommendations address
these challenges and highlight priorities for supporting economic growth in Southwest and Southside
Virginia, including:
■
Increase capacity in economic development
■
Expand the eligible workforce by supporting housing, childcare, healthcare, quality of life
■
Increase funding and programs related to site and building development
■
Accelerate the development of planned interstates, highways, and expressways
■
Establish new incentives targeting creation of manufacturing jobs
The Southside-Southwest Virginia Report can serve as a model for growth outside the regions and help
accomplish Virginia’s goal of positioning all regions of the Commonwealth for sustained economic
growth. Rural regions across Virginia are facing similar challenges, all of which can be addressed using
this multi-pronged approach that combines efforts to address the underlying barriers and maximize
economic growth in the Commonwealth.
40
Southside Virginia Community College
PBE Axell, Tazewell County University of Virginia's College at Wise
Jasper Yeast in Loudoun County was founded by beer industry
veterans to provide high-quality liquid yeast for craft beverage
producers. The company enrolled in VEDP's Economic Gardening
Program in an effort to enhance its marketing efforts and came
away with contacts and tactics to support its marketing, lead
generation, and future business.
Our goal was to find new ways to effectively
target new and current customers. The Economic
Gardening Program outlined unique ways we
can improve our efforts online, through SEO
optimization and strategies to direct more traffic
to our website. They also provided research and
insight on ways to make our in-person efforts
more productive. We have started to implement
these recommendations and are already seeing the
benefits of these changes.
JASPER AKERBOOM, PH.D.
Co-Owner, Jasper Yeast
Plenty Puts Down Roots in Virginia with
CASE STUDY
World’s Largest Vertical Farm Campus
Founded in 2014, Plenty Unlimited Inc. is an indoor vertical farming technology company capable of
growing clean produce year-round, anywhere in the world. Plenty is changing the agriculture industry by
taking the variables out of farming and using indoor technology to create peak season-quality produce
with up to 350 times more yield per acre than conventional farms.
The controlled environment agriculture (CEA) industry has taken off in recent years, and Plenty began
looking to expand its footprint to the East Coast, requiring ample space, a skilled workforce pipeline,
and proximity to an agro-tech ecosystem to make it a reality. As the Plenty team searched for the next
hub for hydroponics, the company narrowed its search to Virginia to plant its next campus.
After looking at five other states and considering a number of locations, in September 2022 Plenty
selected Chesterfield County to establish the world’s largest indoor vertical farming campus — a
$300 million investment that will create more than 300 full-time jobs. The Plenty Richmond Farm
Campus marks the company’s expansion beyond the U.S. West Coast and aims to bring fresh, healthy
produce to the East Coast year-round. Virginia’s successful bid centered on a large site near the
thriving Richmond metro area, home to 33,000 local manufacturing workers and close to more than 20
colleges and universities that deliver top talent each year — and strong nearby infrastructure including
Interstates 85 and 95 and The Port of Virginia’s Richmond Marine Terminal.
Plenty plans to complete its Richmond Farm Campus in multiple phases over the next six years, with
recruiting and training support provided by the top-ranked Virginia Talent Accelerator Program. The
first farm on this site, a dedicated Driscoll’s berry farm, will be the first to grow indoor, vertically farmed
strawberries at scale. The campus is designed to grow more than 4 million pounds of strawberries
annually, helping to meet increasing demand for flavorful, fresh berries in the Northeast, the largest
berry consumption region in the U.S. Plenty broke ground in April 2023, and the first crop of Driscoll’s
strawberries grown onsite will be available in 2024 at retailers throughout the Northeast.
CEA companies have called Virginia home for years, attracted to the Commonwealth's diverse
ecosystem of partners and suppliers for food and beverage processors, numerous universities and
research centers, and a notable abundance of natural resources. Virginia’s central East Coast position
also enables companies to efficiently access major U.S. economic hubs. Located within a one-day
drive of nearly half of the nation’s consumers, Virginia offers companies a single gateway into critical
customer markets along the affluent Northeast corridor, across the high-growth Southeast, and
throughout the Midwest.
KEY PARTNERS:
Administration of Governor Glenn Youngkin • Chesterfield County • Greater Richmond Partnership •
Virginia Community College System • Virginia Department of Agriculture and Consumer Services •
Virginia Port Authority • Dominion Energy
44
At Plenty, we’re on a mission to sustainably grow fresh
food for everyone, everywhere. This campus will raise
the bar on what indoor vertical farming can deliver.
The scale and sophistication of what we’re building
here in Virginia will make it possible to economically
grow a variety of produce with superior quality and
flavor. We look forward to continuing to work in close
partnership with the government of Virginia as we
endeavor to rewrite the rules of agriculture.
ARAMA KUKUTAI
CEO, Plenty Unlimited Inc.
Plenty Unlimited Inc. groundbreaking, Chesterfield County
CASE STUDY
We started what is now the largest drone technology services company
in the United States … and we celebrate further expansion and the
opening of the world’s first and most advanced specialized drone pilot
training facility. And we’ve done it all right here in Virginia.
TOM WALKER
Founder and CEO, DroneUp
DroneUp, Virginia Beach
46
DroneUp Takes Off in Virginia
Virginia-born business DroneUp, LLC was founded by former U.S. Navy officer Tom Walker in
2016. The company works to make drone flight work for businesses through flight services,
delivery services, and airspace management. What originally began as a web and mobile
platform for on-demand drone pilot services has expanded into a multimillion-dollar operation
that is the exclusive provider of drone services for Walmart. After establishing DroneUp's
headquarters in Virginia Beach in 2016, Walker has kept his eyes on the skies looking for new
ways to expand his business.
In 2019, DroneUp expanded its headquarters operation in Virginia Beach, creating 41 new jobs.
One year later, during the height of the COVID-19 pandemic, the company partnered with Walmart
to deliver COVID-19 test kits. The partnership was so successful that the retail giant invested in
DroneUp to establish permanent last-mile drone delivery for a large portion of its product line. In
2021, DroneUp announced a multi-year commercial services agreement with Walmart to provide
drone delivery services at 34 sites, providing the potential to reach 4 million U.S. households by
the end of the year.
With exponential growth on the horizon, DroneUp needed to expand its physical footprint and
its workforce, including building a talent pipeline of new employees such as drone pilots and
engineers. The company’s existing headquarters in Virginia Beach was the right spot to launch
this next phase of development, but the company also required a location for testing, training,
and R&D for drone operators. Richard Bland College in Dinwiddie County had just the setup for
the newest operation. DroneUp’s work complements Richard Bland’s ongoing efforts to develop
a curriculum for an unmanned aviation program, so the school could begin training pilots right
away while additional training center facilities were built. Every drone pilot hired would first need
to come to Richard Bland College for a two-week course, and the college also offered dorm
space for pilots coming in from all over the country for training.
In August 2022, DroneUp announced a total investment of $27.2 million to expand its
headquarters in the city of Virginia Beach and establish a testing, training, and R&D center at
Richard Bland. Virginia successfully competed with Arizona, New York, North Carolina, and Texas
for the projects, which will create 655 total new jobs.
In addition to the headquarters facility and training center, DroneUp also announced plans
to establish three drone hubs at Walmart locations in the Commonwealth as part of their
commercial services agreement.
DroneUp’s expansion in Virginia Beach and new testing, training, and R&D center at Richard Bland
is an exciting step forward for the unmanned systems industry in Virginia and serves as a model
for higher education partnerships and economic development.
KEY PARTNERS:
Administration of Governor Glenn Youngkin • City of Virginia Beach • Dinwiddie County •
Hampton Roads Alliance • Richard Bland College • Virginia’s Gateway Region • Virginia
Innovation Partnership Corporation • Virginia Tobacco Region Revitalization Commission
47
Amazon Web Services Announces Largest
CASE STUDY
Capital Investment in Virginia History
When Amazon Web Services (AWS) first established data centers and operations
facilities in Virginia in 2006, no one imagined the company would one day announce the
largest capital investment in the history of the Commonwealth.
Between 2011 and 2021, AWS invested more than $51.9 billion in Virginia and is among
the largest private-sector employers in the Commonwealth, with over 8,700 full-time,
well-paying jobs in corporate offices and data centers across Virginia. These roles
include data center technicians, engineers, solutions architects, sales representatives,
account managers, software development engineers, and cloud experts.
AWS continues to expand its massive cloud cluster in Northern Virginia, where it
operates more than 50 data centers. The region is the largest single concentration of
corporate data center infrastructure on Earth, housing the AWS US-East cloud region.
In January 2023, Governor Glenn Youngkin announced that AWS would expand its
footprint in Virginia, investing $35 billion by 2040 to establish multiple data center
campuses across the Commonwealth.
VEDP worked with AWS for five years prior to the announcement to ensure Virginia
could meet the company’s requirements for the major data center expansion. In the
various iterations of the project, the needs shifted from 50-acre sites to multiple
1,000-acre campuses with 15-year development plans. The sites required access to
high-voltage power lines and the ability to run fiber optic cables underground. Virginia
delivered on every front.
VEDP’s consistent project management and willingness to adapt to the company’s
shifting priorities and requirements was key to winning this project, as well as Virginia’s
ability to assemble tracts of land that could deliver significant utility requirements. AWS
also has more than a decade of first-hand knowledge of the Commonwealth’s industry
strengths — including a world-class tech workforce.
The company’s planned investment will create at least 1,000 total new jobs across
Virginia and a tremendous ripple effect for the Commonwealth’s economy for decades
to come. The new campuses will also combine expandable capacity to position AWS
for long-term growth in the Commonwealth.
Amazon Web Services’ legacy in Virginia is a testament to the success tech companies
can find in the Commonwealth. Virginia continues to dominate the data center industry
thanks to its infrastructure, competitive business costs, and workforce, and AWS is
helping to lead the charge.
KEY PARTNERS:
Administration of Governor Glenn Youngkin • Administration of former Governor Ralph
Northam • Virginia Department of Environmental Quality • Virginia Department of
Transportation • Virginia General Assembly and Major Employment and Investment
(MEI) Project Approval Commission • Local Partners • Utility Partners
48
Virginia is a world leader in innovation and cloud
computing, thanks to its investment in a robust,
highly skilled workforce and emphasis on long-term
public and private partnerships.
ROGER WEHNER
Director of Economic Development, AWS
Amazon Web Services, Fairfax County
49
CASE STUDY
Our relationship with Virginia started with VIRginia International
Raceway. The more our team worked with Connie Nyholm and VIR,
the more apparent it was that Virginia and Halifax Country would be
the ideal location for our new headquarters. The support the Governor’s
office and Halifax County provide to motorsports businesses and the
automotive industry is second to none.
ANTHONY DeMONTE
CEO, Skip Barber Racing School
VIRginia International Raceway, Halifax County
50
Finishing First: Virginia Wins Skip
Barber Racing School Headquarters
Skip Barber founded the racing school that bears his name in 1975 after
retiring from his own driving career. Since that first class, the school has
taught more than 400,000 students, many of whom have become racers
and champions themselves. Famous alumni include racing stars as
prominent as Danica Patrick and Marco Andretti, and more than one-third
of the starting lineup in the 2022 Indy 500 were Skip Barber graduates.
Today, the Skip Barber Racing School (SBRS) is the world’s largest
automotive education and entertainment company, training the drivers of
tomorrow on the finest tracks in the United States.
In November 2022, SBRS announced that it would invest $8.9 million to
relocate its headquarters from Lakeville, Connecticut, and establish a
performance driving school at VIRginia International Raceway (VIR) in
Halifax County. VIR will build a 25,000-sq.-ft. facility within its Motorsport
Technology Park to lease to SBRS. Virginia successfully competed with
California and Texas for the project, which will create 24 new jobs. The
project will be supported through grants from the Commonwealth’s
Opportunity Fund and the Tobacco Region Opportunity Fund, and funding
and services to support SBRS’s employee training activities will be provided
through the Virginia Jobs Investment Program.
Southern Virginia has a rich history in auto racing. In addition to VIR, the
region is home to Martinsville Speedway — the only track to host NASCAR
Cup Series races every year since the division’s founding in 1949 — and
numerous short tracks that have hosted local races for decades. Notable
Southern Virginians in racing history include International Motorsports Hall
of Famer Wendell Scott of Danville — the first Black driver to win a race
at NASCAR’s highest level — and the Burton brothers, Ward and Jeff, who
grew up in Halifax County before winning a combined 26 Cup Series races.
That cultural affinity for racing, along with SBRS’s relationship with VIR
leadership, formed the basis of the company’s Virginia decision. Anthony
DeMonte, the company’s CEO, cited support for the motorsports and
automotive industries from the Commonwealth and Halifax County as
a major factor in the decision, calling Virginia’s friendliness to those
industries “second to none.”
KEY PARTNERS:
Administration of Governor Glenn Youngkin • Halifax County • Halifax County
Industrial Development Authority • Southern Virginia Regional Alliance •
Virginia Tobacco Region Revitalization Commission
51
Hilton Books Permanent Stay in Virginia
CASE STUDY
Fourteen years after checking into Virginia, Hilton has solidified its commitment to the
Commonwealth, making significant upgrades to the Fairfax County headquarters from
which the company runs its global hospitality enterprise.
In 2009, Hilton relocated its global headquarters from California to Fairfax County,
Virginia, creating 300 jobs and investing $17 million. In 2011, the company invested
$1.8 million to expand its headquarters and relocate an additional 100 jobs in supply
management to Fairfax County. Eleven years later, Hilton doubled down on its Fairfax
headquarters, investing in significant upgrades to the facility and creating 350 new jobs
by 2027.
Founded in 1919, Hilton is a leading global hospitality company with a portfolio of 22
world-class brands comprising nearly 7,300 properties and more than 1.1 million rooms
in 123 countries and territories. Dedicated to fulfilling its founding vision to fill the earth
with the light and warmth of hospitality, Hilton has welcomed over 3 billion guests in its
100+-year history, earned a top spot on Fortune's 100 Best Companies to Work For list,
and been recognized as a global leader on the Dow Jones Sustainability Indices for six
consecutive years.
Hilton originally selected Virginia for its headquarters relocation because the
Commonwealth represented a central location for its global organization with strategic
domestic and international access and significantly reduced operating costs in
comparison to its prior location. For more than a decade, the company has continued
to invest in the region because of the wealth of talent available in Northern Virginia, one
of the most educated and diverse regions in the United States. The 2022 headquarters
retention and expansion to create hundreds of additional jobs showcases Virginia’s
ability to deliver a top-tier talent pipeline.
The COVID-19 pandemic had a significant impact on the hospitality industry, and
Hilton was not immune. The company has since established a new vision, focusing on
how technology can transform the hospitality industry. Virginia’s workforce is ready:
Named the No. 2 Tech Talent Pipeline in the nation (Business Facilities, 2023), the
Commonwealth is making investments to develop tech talent, STEM-oriented education
programs and partnerships, and innovative tools to prepare its workforce, accelerating
Hilton’s next steps into the future of hospitality.
KEY PARTNERS:
Administration of Governor Glenn Youngkin • Fairfax County • Fairfax County Economic
Development Authority
52
Northern Virginia has been Hilton’s home for more than a decade, and
the region has played an instrumental role in helping us create the best,
most inclusive home for our Team Members while also managing the
demands of a global business ... We appreciate the continued support
of the Commonwealth of Virginia in ensuring we continue to attract
strong, diverse talent to our vibrant, growing region.
CHRIS NASSETTA
President and CEO, Hilton
Hilton Global Headquarters, McLean
Progress Reports
This section offers an update on the progress made by the Virginia Economic Development Partnership Authority
(VEDP) in FY23 relative to VEDP’s Strategic, Operational, and Marketing Plans. These plans were previously
submitted in accordance with Code and other requirements. Because most elements of these plans are treated
with confidentiality and are exempted from mandatory disclosure provisions (Code of Virginia §2.2-3705.7. 33.),
this progress report references specific elements of the plans without revealing information that is protected by
the Code for competitive purposes.
Strategic Plan
The Strategic Plan for Economic Development of the Commonwealth of Virginia adopted by the VEDP Board in FY21
is a five-year plan (FY21-FY25) for which implementation began in January 2021.
Key highlights of Strategic Plan implementation for FY23:
With the support of the administration, the General Assembly, and hundreds of partners, much progress has been
made in implementing many of the initiatives detailed in the Strategic Plan. Following are just a few examples (not
comprehensive):
■
To accelerate progress toward achieving our transformational goals, VEDP launched the Innovative Framework
for Economic Growth, a focused effort to cultivate core sectors through strategic engagement and ecosystem
building.
■
Developed with strong VEDP support, the Youngkin administration unveiled Compete to Win, the Comprehensive
Economic Development Policy for Virginia, outlining a vision to position Virginia as the best state for business
and take job creation and investment to new heights.
■
With new state funding, VEDP awarded $90M in Virginia Business Ready Sites Program (VBRSP) grants to 21 site
development projects across the Commonwealth, representing the largest investment grant round to date.
■
Working to advance priorities of Virginia’s rural regions, VEDP collaborated with partners to complete two General
Assembly studies: the Inland Port Study and the Southside-Southwest Virginia Barriers to Infrastructure and
Supply Chain Investment Study.
■
With continued state support, the Virginia Talent Accelerator Program affirmed its status as the national leader
for customized talent solutions, ranking Virginia No. 1 in the U.S. for Customized Workforce Training in the 19th
annual Business Facilities State Rankings Report.
■
Virginia continued its climb in national business climate rankings, achieving a No. 5 average rank across key
outlets including CNBC, Site Selection, and Business Facilities.
■
VEDP continued to grow its international trade capabilities, launching expanded training programs for Virginia
businesses and implementing new tools to enhance access to trade program information.
■
VEDP established the Regional Talent Solutions Business Outreach division to engage key businesses across
the Commonwealth and address their talent and growth needs; in its first year, the division made 415 visits to
companies across all of Virginia’s regions.
■
Working in collaboration with state, regional, and local partners, VEDP supported nearly 20 federal grant
applications; our recent efforts have contributed to a $52M grant for the Richmond-Petersburg Advanced
Pharmaceutical Manufacturing Cluster, and a $23M grant in support of the Eastern Shore Rail Trail.
■
Working in collaboration with our state, regional, and local partners, VEDP-assisted projects resulted in over
10,800 announced jobs and $40.8B in capital investment.
Despite the strong progress that has been made on several fronts, many initiatives detailed in the Strategic Plan
have not yet been implemented. Accordingly, while substantial progress has been made with respect to all five of
the following transformational goals, Virginia has not yet fully achieved them.
54
Five Transformational Goals
The Strategic Plan includes five transformational goals, the achievement of which would require implementation
of dozens of new initiatives over a period of years (multiple biennium budgets). The five transformational goals are
outlined below, as well as a progress indicator rating the Commonwealth’s status in achieving each of these goals.:
Transformational Goal Description Outlook
1. Robust state job Position Virginia to achieve a growth rate in employment and median
growth earned income among that of the top 5–10 states in the U.S.
2. Every region wins Ensure that every region participates in the growth of the Commonwealth
(i.e., all with positive growth in employment and median earned income).
3. Best states for Restore Virginia to its previous position near the top of the national
business business climate rankings (i.e., average rank among the top 3–5 states).
4. Top state EDO Reestablish and sustain VEDP as one of America's most effective state
economic development organizations.
5. Super collaborator Exhibit collaboration and coordination as hallmarks of VEDP (i.e., place a
central focus on the "P" in VEDP).
On track to achieve long-term goal Substantial progress has occurred, but not yet on track to fully achieve goal
Not on track to achieve goal Not started, or strategy shift under consideration
Some of the initiatives in the Strategic Plan require new funding to implement and, therefore, achievement of the five
transformational goals will depend on resourcing levels.
Progress Report: Strategic Plan Initiatives
Status update on 35 detailed initiatives
The Strategic Plan provides for 35 detailed initiatives for phased implementation over a period of years
(multiple biennium budgets). Some of the initiatives scheduled for implementation in FY23 were not
funded, slowing progress toward achieving the transformational goals outlined in the Strategic Plan.
Enhance Virginia's Economic Competitiveness
SP1 Build out the best turnkey, customized workforce recruitment and training incentive program
in the U.S.
SP2 Invest in Virginia's pipeline of computer science talent through $1.1 billion Tech Talent
Investment Program
SP3 Develop mechanisms to ensure sufficient supply of high-impact baccalaureate+ degrees
in critical fields
SP4 Develop sub-baccalaureate talent pathways and signaling mechanisms to drive inclusive
economic growth
SP5 Upgrade Virginia's labor market data infrastructure to empower data-driven decision-making
SP6 Work toward creating a comprehensive ecosystem for talent development and deployment
SP7 Strategically enhance Virginia's portfolio of development-ready sites
SP8 Develop a program to enhance Virginia's portfolio of project-ready buildings
SP9 Build a best-in-class Economic Competitiveness team within VEDP
SP10 Pursue a national rankings initiative to develop strategies and plans for marked improvement
SP11 Proactively address key elements of local and regional economic competitiveness
SP12 Assess Virginia's state/local tax burdens and propose targeted solutions to improve tax
competitiveness
SP13 Conduct a review of Virginia's incentive portfolio to identify targeted competitiveness improvements
SP14 Pursue a focused economic development strategy sufficient to position rural Virginia for growth
SP15 Marshal the Commonwealth's full support behind expanding broadband access
56
Enhance VEDP's Capabilities Cultivate Target Industry Clusters
SP16 Adhere to protocols for alignment and coordination SP28 Position Virginia to be one of
America’s leading states for
traded-sector tech growth
SP17 Implement a talent management and organizational
development program for VEDP SP29 Collaborate with The Port of
Virginia to enhance its
SP18 Implement a robust marketing, branding, and site economic development impact
consultant cultivation program for Virginia
SP30 Enhance the toolkits,
SP19 Upgrade VEDP's lead generation capabilities strategies, and assets on
hand to attract targeted firms
SP20 Implement a strategic site consultant cultivation SP31 Implement the Rural and
program Small Metro Tech Centers
Initiative
SP21 Expand VEDP's Business Retention and Expansion
(BRE) Program SP32 Support entrepreneurship and
innovation ecosystem efforts
SP22 Implement Virginia’s International Trade Plan in
collaboration with internal and external stakeholders
Position Virginia for Post-COVID Recovery
SP23 Strengthen VEDP's approach to project management
to communicate Virginia's total value proposition PC1 Explore opportunities to
capture growth from
SP24 Launch a Project Development and Special teleworking trends
Opportunities Fund
PC2 Explore opportunities to best
SP25 Develop best-in-class incentives reporting and
position Virginia to thrive as
administration functions
supply chains adjust in the
wake of COVID-19
SP26 Position Virginia to secure transformational economic
development projects PC3 Explore opportunities to best
position Virginia to support
SP27 In partnership with the Virginia Chamber, launch Team workers' upgraded skills in
Virginia response to COVID-19
On track to achieve long-term goal Substantial progress has occurred, but not yet on track to fully achieve goal
Not on track to achieve goal Not started, or strategy shift under consideration
57
Commonwealth Center for Advanced Manufacturing, Prince George County
Progress Report: Operational Plan
VEDP’s Operational Plan outlines specific and incremental actions for VEDP staff to undertake within a fiscal year
in order to ultimately achieve the transformational goals of the organization’s Strategic Plan. FY23’s Operational
Plan covers the time period between July 1, 2022, and June 30, 2023. During the second half of FY23, VEDP
also launched planning efforts for the new Innovative Framework for Economic Growth. Given its far-reaching
implications for the organization, some major initiatives were modified and/or delayed until the Innovative
Framework is fully implemented in FY24.
Major Initiatives
VEDP prioritized 11 major initiatives in its FY23 Operational Plan, as summarized below.
Major Initiative Status
Build out the best customized workforce recruitment and training incentive program in the U.S.
Develop long-term Real Estate Solutions strategy that includes execution of expanded VBRSP
program and a regional ecosystem approach to site development
Expand Virginia exports and strengthen supply chains through implementation of high-priority
elements of the International Trade Plan
Accelerate efforts toward achieving national leadership in tech sector growth across Virginia
Align and integrate VEDP’s business outreach activities to achieve increased coverage and impact
Support development of Governor’s Comprehensive Economic Development Policy to include
analyzing the economic context
Build out VOEE's operating structure and execute on priority deliverables
Strengthen VEDP’s lead generation, project management capabilities, and related support functions
(pending additional funding)
Enhance industry strategies by fully leveraging existing assets and developing new capabilities
(pending additional funding)
Launch an Offshore Wind Supply Chain Grant Program to establish an end-to-end supply chain of
small businesses within the Commonwealth
Finalize comprehensive HR talent management strategy and launch priority components
Goal achieved as planned Partially completed Did not achieve goal Change in approach/focus
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Progress Report: Marketing Plan
VEDP executes a variety of marketing initiatives Informing and Transforming How
each year to build awareness among executives
VEDP Markets Key Industries:
and site selection consultants of Virginia’s attractive
business climate and many assets for businesses. In FY23, VEDP completed a major refresh of
Because business site-selection processes rely on its value proposition materials — with deep
both quantitative assessments as well as qualitative dives on Virginia’s key industry sectors
perceptions of regions and states, strategic marketing — to better position the Commonwealth.
efforts can make a substantial impact on a state’s Consistently branded, the continued
ability to attract investment. VEDP focuses its marketing value proposition collateral and content
efforts on eight key industry sectors and several related provides comprehensive looks at the state’s
subsectors. assets and the advantages of a Virginia
location. From brochures to web to branded
collateral, these pivotal pieces help guide
FY23 Marketing Highlights:
how the organization markets Virginia to
■
Implemented a targeted site selection consultant prospects and target audiences.
cultivation effort to raise awareness and improve
perceptions of Virginia as a premier business
destination among this highly valued influencer group.
■
In partnership with Team Virginia, hosted dozens of
top site consultants in Virginia Beach for the Virginia
Consultants Forum.
■
Published four editions of Virginia Economic Review,
a quarterly magazine featuring Virginia’s assets and
advantages for business, including rural Virginia, as
well as interviews with national and in-state thought
leaders.
■
Implemented a C-level testimonial campaign featuring
companies located in Virginia.
■
Oversaw implementation of VEDP’s event marketing
program.
■
Produced and maintained a high-quality web presence
on VEDP.org, ExportVirginia.org, and VOEE.org.
■
Placed multiple, limited ad campaigns, as well as
contributed content, to raise awareness and improve
perceptions of Virginia as a business destination.
■
Created new brochures and website content for
several industry sectors.
Note: To shield strategic initiatives from competitors, the update
provided in this document is purposely high-level. Additional details
about VEDP’s marketing and lead generation activities can be provided
to in-state partners through in-person briefings.
60
Spotlighting the Breadth and
Diversity of the Commonwealth
The third-quarter 2022 issue of
Virginia Economic Review (pictured
top right) featured every region of the
Commonwealth in highlighting Virginia’s
wide array of tourist trails, from
recreational trails to historical tours,
presidential sites, cultural trails, and
food and beverage trails.
Pictured right (from top to bottom): Virginia
Economic Review; Issues Q3 2022, Q4 2022,
Q1 2023, and Q2 2023
Focus on Regions in Proximity
to High-Unemployment Areas:
VEDP balances its marketing efforts
by highlighting all regions of Virginia
(including rural areas and assets) through
social media, Virginia Economic Review,
site selection consultant and media
familiarization tours, and inclusion
of regional and local partners in lead
generation events.
Most (59%) of the partner mentions in
FY22 on VEDP’s X (formerly known as
Twitter) account were of a rural locality
or region.
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Fredericksburg
Old Town Winchester University of Virginia
To view audited financial statements once available, visit VEDP.org/FY23AnnualReport.
Rockbridge County
Expertise • Collaboration • Innovation • Solutions
The Virginia Economic Development Partnership’s team of dedicated and knowledgeable
professionals is committed to Virginia’s economic success, and connects industry-leading
businesses to the resources they need to make relocations and expansions successful.
From site selection, customized research, cost analysis, and coordination with public and
private partners, to discretionary incentives and workforce solutions, VEDP’s services are
tailored to companies’ unique requirements.
To learn more about VEDP’s expertise and resources, visit VEDP.org.
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