Strategic Plan for Economic Development of the Commonwealth of Virginia: Biennial Update (FY27-FY31)
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Executive summary of the Strategic Plan for Economic Development of the Commonwealth of Virginia: Biennial Update (FY27-FY31), dated July 1, 2026. It states that the Virginia Economic Development Partnership Authority (VEDP) was established by the General Assembly in 1995, that the update began in September 2025 with partner engagement, and that the process was completed in June 2026 upon approval by the VEDP Board of Directors. VEDP engaged more than 80 economic development stakeholders and the plan sets out 33 strategic initiatives, with 7 new initiatives. The February 2026 target industry assessment established three new target industries, including Energy Supply Chain. The update also includes the Top State for Talent Strategy and the Virginia International Trade Plan.
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“Strategic Plan for Economic Development of the Commonwealth of Virginia: Biennial Update (FY27-FY31).”
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STRATEGIC PLAN FOR ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH
OF VIRGINIA: BIENNIAL UPDATE (FY27-FY31)
EXECUTIVE SUMMARY
July 1, 2026
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
1
AT A GLANCE: THE STRATEGIC PLAN FOR ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH OF VIRGINIA
▪ The Virginia Economic Development Partnership Authority (VEDP) was established by the General Assembly
in 1995 (Code of Virginia, § 2.2-2234 et seq.)
▪ VEDP is given broad powers in its enabling legislation “…to encourage, stimulate and support the
development and expansion of the economy of the Commonwealth.”
▪ This update to the Strategic Plan for Economic Development of the Commonwealth of Virginia has been
prepared in accordance with Code of Virginia, § 2.2-205 and 2.2-2237.1, which requires a biennial update
▪ This update to the Strategic Plan began in September 2025 with partner engagement efforts, and the update
process was completed in June 2026 upon approval by the VEDP Board of Directors
▪ To develop the FY27-31 Strategic Plan, VEDP engaged more than 80 economic development stakeholders
through surveys, live engagements, and one-on-one meetings to gauge input across a range of focus areas
▪ The current plan is the result of a multi-faceted work plan, resulting in a set of 33 strategic initiatives with 7
new initiatives that address recent trends and shifting economic conditions
▪ The FY27-31 Strategic Plan update also includes VEDP’s Top State for Talent Strategy and the Virginia
International Trade Plan, highlighting key initiatives to strengthen Virginia’s talent and workforce ecosystem
and drive international trade growth in Virginia over the next five years
2
THE CODE OF VIRGINIA OUTLINES SPECIFIC STRATEGIC PLAN
REQUIREMENTS AND A BIENNIAL UPDATE SCHEDULE
Code of Virginia, § 2.2-2237.1
A. The Board and the Chief Executive Officer shall develop and update biennially, prior to the start of each of the
Commonwealth's biennial budget periods, a strategic plan for specific economic development activities for the
Commonwealth as a whole. The strategic plan shall be responsive to the comprehensive economic development policy
developed pursuant to § 2.2-205. The strategic plan of the Authority shall, at a minimum, include:
1. The identification of specific goals and objectives for the Authority and the development of quantifiable metrics and
performance measures for attaining each such goal and objective;
2. A systematic assessment of how the Authority can best add value in carrying out each of its statutory powers and
duties; and
3. Such other information deemed appropriate by the Board to ensure that the Authority fully executes its powers and
duties.
B. The Authority shall report annually by November 1 on its strategic plan, any modifications to the strategic plan, and its
progress toward meeting the goals and objectives as stated in the strategic plan. The report shall be submitted to the
Governor, the Director of the Department of Planning and Budget, the special subcommittee on economic development
of the Joint Legislative Audit and Review Commission, and the Chairmen of the House Committee on Appropriations and
the Senate Committee on Finance and Appropriations.
C. The Board shall include in its strategic planning process the participation of key economic development partners,
including state, regional, and local economic development agencies and organizations, rural stakeholders, and
international trade organizations.
3
VEDP LEVERAGED PARTNER AND BOARD INSIGHTS TO GUIDE A
NEARLY YEAR-LONG STRATEGIC PLAN DEVELOPMENT PROCESS
September 2025: Identified partner priorities through surveys and strategic plan
feedback sessions at statewide economic development conference; gathered
board feedback on economic trends
October 2025: Engaged additional stakeholders from state agencies and key
economic development-focused associations to gather additional input on trends,
opportunities, and strategic priorities
December 2025: Updated the transformational goal risk assessment in response
to partner feedback and key economic trends
February 2026: Completed updated target industry assessment, establishing
three new target industries, including Energy Supply Chain
February – March 2026: Developed strategies and initiatives in coordination with
VEDP staff and partners
June 2026: Strategic Plan finalized and approved by the VEDP Board of
Directors
4
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
5
VIRGINIA HAS SEEN MUCH PROGRESS ON ITS TRANSFORMATIONAL
GOALS SINCE 2017, BUT WORK REMAINS TO DRIVE FUTURE GROWTH
Transformational Goal Progress Description Outlook
1. Robust state job growth ▪ Historical five-year job growth rate rank is No. 23, an improvement from
No. 25 in 2024
▪ As of April 2026, Virginia’s five-year job growth forecast ranks No. 29,
down from No. 17 in 2024; bold action is required to reach growth goals
2. Every region wins ▪ All 18 marketing regions have experienced job growth since 2021
▪ The number of marketing regions forecast to grow jobs over the next five
years increased from 4 in 2017 to 17 in 2026
3. Best state for business ▪ Secured average rank of 5.4 across five business climate rankings
(CNBC, Site Selection, Chief Executive, Business Facilities, and Area
Development) as of April 2026; Virginia last ranked this well in 2022
▪ Core sector employment growth has not yet reached Virginia’s ambitious
targets (No. 10 or higher) for Knowledge Work, Manufacturing, Logistics
4. Top state for talent ▪ Virginia Talent Accelerator Program recognized as best-in-the-nation by
Area Development and Business Facilities
▪ Created new Talent and Workforce Strategy team to coordinate and
communicate talent-related economic development efforts
▪ Launched InternshipsVA to connect employers with potential interns
5. Most Innovative, ▪ Ranked as among the five most effective State EDOs by Development
Collaborative, and Counsellors International in 2023
Effective State EDO ▪ Sustained 97% client satisfaction rate and improved employee
satisfaction rate from 90% to 92%
• On track to achieve long-term goals with no major • Will likely not meet goal
concerns
• Will make progress against long-term goals but • Not started
concerns 6
Transformative investments in
Virginia’s life sciences industry
Virginia Top 5 manufacturing project in Virginia
history
announced
multiple Largest service-sector project west of
historic
the Blue Ridge in Virginia history
projects Largest announcement by capital
investment in Virginia history
Largest competitive economic
development project by jobs in U.S.
history
7
Established InternshipsVA to help employers
design and launch high-quality, paid
VEDP has internships for Virginia higher ed students
achieved Virginia Talent
Accelerator
Launched the Virginia Talent Accelerator
Program in 2019, now ranked the No. 1
numerous
Program
customized training program in the U.S.
landmark International
Implemented Virginia’s first-ever
comprehensive International Trade
objectives
Trade
Strategic Plan
since the Virginia Office of
Education
Launched the Virginia Office of Education
Economics (VOEE) to strengthen workforce
2017
Economics
alignment in the Commonwealth
Strategic Launched the VEDP Real Estate Solutions
division to enhance the Commonwealth’s
Plan
project-ready site portfolio; secured over $300
million in site development funding
Launched the $2 billion Tech Talent
Investment Program, a historic investment to
expand Virginia’s tech talent pipeline
8
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
9
KEY TRENDS IN ECONOMIC DEVELOPMENT DRIVE UPDATED GOALS
AND INITIATIVES FOR THE STRATEGIC PLAN
Economic Development Trends* FY27-31 Strategic Plan Updates
GLOBAL ECONOMIC HEADWINDS Key Themes
After post-pandemic acceleration, changes to federal ▪ The FY27-31 Strategic Plan adapts
employment, trade uncertainty, and shifts in knowledge work VEDP’s deep sector focus and
hiring are reducing growth nationally. With high exposure,
Virginia is experiencing slower absolute and relative growth. whole-of-government approach to a
dynamic economic environment
TALENT MIGRATION PATTERNS ▪ Virginia’s core sectors were
Talent availability remains the top driver of firms’ location reviewed and reaffirmed; new
decisions. Virginia must look to ensure housing availability industry targets, including Energy
and affordability in the face of changing migration patterns, Supply Chain, were added to reflect
and to align education and work-based learning with firms’ evolving growth areas
evolving needs.
Updated strategies & initiatives
THE AI TRANSFORMATION ▪ Four initiatives that prioritize
Given its existing strengths, Virginia is poised to capture AI- growing international trade and
driven commercial opportunities and productivity growth. supporting communities facing
However, some occupations may face disruption. impacts of economic shifts
▪ Ten talent-related initiatives to
SCARCITY OF SITES, CHANGING OFFICE NEEDS
attract, retain, develop, and support
A deepening nationwide shortage of large industrial sites has
reinforced the need for sustained investment in site the workers needed to propel
development. Separately, lower office space demand has left Virginia’s economy and prepare
many properties vacant and ripe for redevelopment. talent for an AI future
▪ Three initiatives to accelerate
RISING ENERGY DEMAND property development (sites and
Heightened need from industrial and commercial users and buildings)
broader electrification has led to a significant increase in ▪ One initiative to address utility
power demand with businesses prioritizing power availability capacity, timelines, and rates
and timing at competitive rates.
*Not comprehensive 10
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
11
VEDP WILL TARGET 15 INDUSTRIES THAT DRIVE EMPLOYMENT
GROWTH OR PROVIDE VIRGINIA AND ITS REGIONS UNIQUE VALUE
Core Sectors Additional Target Industries
Dedicated holistic approach Focused, traditional tactics
Knowledge Work Strategic Projects & Lead Generation
Aerospace & Defense* Biz./Financial Services Aerospace & Defense*
Tech & Cybersecurity
Automotive & Battery
Manufacturing Building Materials
Advanced Materials Food & Beverage Mfg. Cloud & AI Infrastructure
Life Sciences
Energy Supply Chain
Logistics Industrial Machinery
Supply Chain Management Quantum Computing
Semiconductors
Wood Products
*Targeted collaboratively across VEDP’s Knowledge Work and Strategic Projects & Lead Generation Teams 12
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
13
THE STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT OF THE
COMMONWEALTH OF VIRGINIA INCLUDES 3 CORE COMPONENTS
TRANSFORMATIONAL Aspirational outcomes to drive economic
GOALS growth in the Commonwealth
Strategic focus areas to enhance Virginia’s competitiveness
STRATEGIES
and VEDP’s capabilities
Specific actions that must be completed to accomplish
INITIATIVES
the strategic plan’s goals
14
TRANSFORMATIONAL GOALS FOR ECONOMIC DEVELOPMENT
REFLECT STAKEHOLDER INPUT & SHIFTING BUSINESS NEEDS
Robust State Growth
Position Virginia to achieve a growth rate among that of the top 10 states in the U.S.
Every Region Wins
Ensure that every region participates in the growth of the Commonwealth
Best State Business Climate
Cultivate a leading business climate and sector-specific ecosystems
Top State for Talent
Establish Virginia as a top state for talent attraction, retention, development, and alignment
Most Innovative, Collaborative, and Effective State EDO
Solidify VEDP’s position as one of America’s top state EDOs through an innovative strategy, collaborative
approach, and effective outcomes
15
FY27-31 TRANSFORMATIONAL GOALS REFLECT STAKEHOLDER
INPUT & INCORPORATE ELEMENTS OF THE INNOVATIVE FRAMEWORK
Transformational goal Description Metrics (Targets)
1. Robust state job Position Virginia to achieve a ▪ Five-year historic employment growth rate rank (Top ten)
growth growth rate among that of the top ▪ Five-year forecast employment growth rate rank (Top ten)
10 states in the U.S. ▪ Five-year historic inflation-adjusted Median Household
Income (MHI) growth rate rank (Top ten)
2. Every region wins Ensure that every region ▪ Count of marketing regions with positive five-year historic
participates in the growth of the employment growth (All positive)
Commonwealth ▪ Count of marketing regions with positive five-year forecast
employment growth (All positive)
▪ Count of marketing regions with positive five-year historic
inflation-adjusted MHI growth (All positive)
3. Best state business Cultivate a leading business ▪ Average rank in the state business climate rankings (Top
climate climate and sector-specific five)
ecosystems ▪ Five-year historic core sector growth rate ranks (Top ten)
4. Top state for talent Establish Virginia as a top state ▪ Rank of net in-migration as a % of population (Top ten)
for talent retention, attraction, ▪ Rank of credential and degree attainment rate (Top five)
development, and alignment ▪ Strada Education Foundation State Opportunity Index
– Ten-year Bachelor’s and Associates ROI (Top ten)
– Employer Alignment (Leading category)
▪ Labor force participation rate rank (Top five)
5. Most innovative, Solidify VEDP’s position as one ▪ Client satisfaction surveys (95% target)
collaborative, and of America’s top state EDOs ▪ VEDP employee satisfaction (90% target)
effective state EDO through an innovative strategy, ▪ VEDP partner satisfaction (80% target)
collaborative approach, and ▪ DCI Best in Class: State Economic Development
effective outcomes Organizations (Top three)
16
VEDP’S STRATEGIC PLAN IDENTIFIES 10 STRATEGIES TO BE
IMPLEMENTED OVER A 5-7 YEAR PERIOD, SUBJECT TO FUNDING
Position Virginia as Strengthen Virginia’s Enhance
America’s top state for talent economic competitiveness VEDP’s capabilities
1. Retain and attract talent to 4. Improve site and infrastructure 8. Elevate Virginia through best-in-
drive growth in target assets to accelerate industry class marketing and consultant
industries growth cultivation programs
2. Align talent development to the 5. Strengthen Virginia’s business 9. Deliver best-in-class lead
needs of employers climate through strategic generation and business
ecosystem initiatives and engagement through innovative
3. Activate individuals’ potential
statewide collaboration strategies
by increasing supports to
ensure Virginians participate in 6. Support and promote programs 10.Cultivate world-class talent
the labor force and state assets that drive development and knowledge
international trade growth management at VEDP
7. Increase economic development
capacity and investment in
economically-challenged regions
Signifies updates from the previous (FY25-FY29) Strategic Plan
17
FY27-31 STRATEGIC PLAN INITIATIVES REINFORCE MANY CORE
COMPONENTS OF VEDP’S EXISTING STRATEGY
Expands on VEDP talent priorities, emphasizing internships, veterans, project support,
and housing
Establishes several new target industries, largely confirms current strategic direction
Maintains prioritization of site programs and infrastructure assets for further
investment, including a renewed focus on energy
Reinforces internal talent development and use of Artificial Intelligence within VEDP
Promotes statewide partner collaboration; prioritizes resiliency for economically
challenged communities
Reinforces our programs that support new and existing businesses and international
trade growth
Note: Not comprehensive 18
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
19
VEDP HAS UPDATED THE INTERNATIONAL TRADE PLAN AS PART OF
THE FY27-FY31 STRATEGIC PLANNING PROCESS
Background
▪ The original ITP, developed in 2019, laid out an ambitious long-term plan to increase Virginia’s exports
by 50% over the next 15 years and increase Virginia’s ranking for exports per capita from 39th to 20th
– These goals were achieved in 2023 and 2024, respectively
▪ The ITP was comprised of 26 initiatives to support businesses by targeting exports (13 initiatives),
international supply chains (6), and enablers (7) that touch all facets of international trade
▪ With 57% of the $8.1M that was originally planned to fully implement VEDP’s ITP initiatives, 15 of the
17 VEDP-led initiatives have been fully or partially implemented, and 22 of the 26 initiatives were fully
or partially implemented
International Trade Plan updates
▪ Beginning in 2024, VEDP integrated an update to the International Trade Plan (ITP) into the FY25–
FY29 Strategic Plan to ensure alignment with agency-wide goals and priorities
▪ Through this integrated planning process, VEDP collaborated with partner agencies and stakeholders
to shape priorities and develop new initiatives to grow international trade in Virginia
▪ Progress on strategic plan initiatives has advanced international trade outcomes through expanded
export programs and services for existing businesses; advancement of logistics, site development,
and air, cold chain, and intermodal infrastructure priorities; and strengthened coordination across
sector teams and ecosystem partners
▪ Enhanced coordination and communication with key partners, including VDACS and the Port of
Virginia, has improved alignment across trade-related programs to support international trade activity
statewide
20
TABLE OF CONTENTS
Strategic Plan Background 2
Virginia’s Progress Since the 2017 Strategic Plan for Economic Development
6
of the Commonwealth of Virginia
Trends & Economic Context 10
Updated Assessment of Target Industries 12
Strategic Plan Components: Transformational Goals, Strategies, & Initiatives 14
International Trade Plan 20
Statutory Value Add 22
21
THE CODE OF VA REQUIRES VEDP TO ASSESS HOW IT CAN BEST
ADD VALUE IN CARRYING OUT ITS STATUTORY POWERS AND DUTIES
Code of Virginia, § 2.2-2237.1
A. The Board and the Chief Executive Officer shall develop and update biennially, prior to the start of each of the
Commonwealth's biennial budget periods, a strategic plan for specific economic development activities for the
Commonwealth as a whole. The strategic plan shall be responsive to the comprehensive economic development policy
developed pursuant to § 2.2-205. The strategic plan of the Authority shall, at a minimum, include:
1. The identification of specific goals and objectives for the Authority and the development of quantifiable metrics and
performance measures for attaining each such goal and objective;
2. A systematic assessment of how the Authority can best add value in carrying out each of its statutory powers
and duties; and
3. Such other information deemed appropriate by the Board to ensure that the Authority fully executes its powers and
duties.
B. The Authority shall report annually by November 1 on its strategic plan, any modifications to the strategic plan, and its
progress toward meeting the goals and objectives as stated in the strategic plan. The report shall be submitted to the
Governor, the Director of the Department of Planning and Budget, the special subcommittee on economic development
of the Joint Legislative Audit and Review Commission, and the Chairmen of the House Committee on Appropriations and
the Senate Committee on Finance and Appropriations.
C. The Board shall include in its strategic planning process the participation of key economic development partners,
including state, regional, and local economic development agencies and organizations, rural stakeholders, and
international trade organizations.
22
VEDP’S STATUTORY RESPONSIBILITIES CAN BE GROUPED INTO
EIGHT CORE CATEGORIES
1. Ensure that effective marketing programs are delivered
2. Engage in business development activities
3. Engage in product development activities
4. Encourage coordination of organizations engaged in economic development
5. Encourage exports of Virginia products and services and encourage imports
6. Assist in developing Virginia’s economic development strategies
7. Administer economic development incentive programs
8. Fulfill various administrative and reporting responsibilities
23
VEDP ASSESSED ITS STATUTORY RESPONSIBILITIES TO DEVELOP
AND REFINE STRATEGIES AND INITIATIVES TO FURTHER VALUE-ADD
Category of Statutory Powers
or Duties Strategies to increase VEDP’s value-add
Ensure that effective marketing ▪ #1 - Attract and retain talent to drive growth in target industries
programs are delivered ▪ #8 - Elevate Virginia through best-in-class marketing and consultant cultivation programs
▪ #9 - Deliver best-in-class lead generation and business engagement through innovative
strategies
Engage in business ▪ #8 - Elevate Virginia through best-in-class marketing and consultant cultivation programs
development activities ▪ #9 - Deliver best-in-class lead generation and business engagement through innovative
strategies
Engage in product development ▪ #4 - Improve site and infrastructure assets to accelerate industry growth
activities ▪ #5 - Strengthen Virginia’s business climate through strategic ecosystem initiatives and
statewide collaboration
▪ #6 - Support and promote programs and state assets that drive international trade growth
Encourage coordination of ▪ #7 - Increase economic development capacity and investment in economically-challenged
organizations engaged in regions
economic development ▪ #9 - Deliver best-in-class lead generation and business engagement through innovative
strategies
Encourage exports of Virginia ▪ #4 - Improve site and infrastructure assets to accelerate industry growth
products and services and ▪ #5 - Strengthen Virginia’s business climate through strategic ecosystem initiatives and
encourage imports statewide collaboration
▪ #6 - Support and promote programs and state assets that drive international trade growth
24
VEDP ASSESSED ITS STATUTORY RESPONSIBILITIES TO DEVELOP
AND REFINE STRATEGIES AND INITIATIVES TO FURTHER VALUE-ADD
Category of Statutory Powers
or Duties Strategies to increase VEDP’s value-add
Assist in developing Virginia’s ▪ #2 - Develop talent to align with the evolving needs of employers
economic development ▪ #3 - Support the workforce through targeted talent solutions, including improved access to
strategies childcare and housing
▪ #5 - Strengthen Virginia’s business climate through strategic ecosystem initiatives and
statewide collaboration
▪ #7 - Increase economic development capacity and investment in economically-challenged
regions
▪ #9 - Deliver best-in-class lead generation and business engagement through innovative
strategies
Administer economic ▪ #5 - Strengthen Virginia’s business climate through strategic ecosystem initiatives and
development incentive programs statewide collaboration
▪ #9 - Deliver best-in-class lead generation and business engagement through innovative
strategies
▪ #10 - Cultivate world-class talent development and knowledge management at VEDP
Fulfill various administrative and ▪ #10 - Cultivate world-class talent development and knowledge management at VEDP
reporting responsibilities
Utilize powers granted to VEDP ▪ #4 - Improve site and infrastructure assets to accelerate industry growth
under statute in order to enable it ▪ #10 - Cultivate world-class talent development and knowledge management at VEDP
to carry out its responsibilities
25
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