Comprehensive Economic Development Strategy Report

The region boasts a multitude of strengths that contribute to its vibrant and dynamic character. Key aspects include its stunning natural environment and recreational opportunities, alongside a low cost of living and doing business. Geographically well-placed in the Mid-Atlantic with excellent road and rail access, the region is also noted for its strong educational infrastructure, including good schools and numerous higher education institutions. Cultural diversity is celebrated through various programs, and a robust arts, culture, and sports scene adds to the area’s appeal. The economy is notably diverse and not dependent on a single industry, benefiting from a strong medical and research presence. Additional highlights include:

• Transportation and Connectivity: Efficient transportation system, including Amtrak service and a good road and rail network.
• Business and Employment: Low unemployment, right-to-work state, burgeoning entrepreneurial climate, and available sites for industrial development.
• Community and Lifestyle: Vibrant downtowns, attractiveness to retirees, and strong regional cooperation among local governments.

Overall, these strengths paint a picture of a region that is economically diverse, culturally rich, well-connected, and supportive of both business and community development.

The region’s weaknesses are varied, reflecting challenges in education, economy, infrastructure, and community development. These factors, within the control of local governments and businesses, hinder the region’s competitive edge:

• Education and Workforce Development: Issues include the need for improvement in certain school systems, declining school enrollment, and a high number of children requiring free or reduced lunch. There’s a gap in awareness about non-four-year degree career paths, contributing to a shortfall in associate degree completers.
• Economic Diversity and Growth: Some areas have less diverse economies, with issues like flat revenue growth for local governments, dependence on machinery and tool tax, and a high concentration of tax-exempt uses. There’s also a notable lack of large, developable land for industrial development.
  Population Dynamics: Challenges stem from an aging population, the outmigration of youth seeking employment and lifestyle changes, and regional differences in addressing rural and urban issues.
• Political and Financial Influence: There’s a continuing loss of political influence in Richmond and limited outside funding for projects at the state and federal level.
• Infrastructure and Services: The region faces issues with airline reliability, limited public transportation services and funding, and an aging housing stock that lacks middle-income options.
• Community and Economic Support: Challenges include lack of venture capital for startups, limited communication among localities and state/federal agencies, and a need for greater equity and opportunities for all residents.

In summary, these weaknesses indicate areas where focused efforts could significantly enhance the region’s ability to compete and thrive, particularly in education, economic diversification, infrastructure development, and community support.

The region presents a wealth of opportunities that, if harnessed effectively, can significantly enhance its growth and prosperity. These opportunities span various sectors and initiatives:

• Healthcare and Education: Leveraging Carilion Clinic, Virginia Tech Medical School, and other research initiatives, and hosting medical conferences to showcase regional strengths.
• Manufacturing and Economic Development: Evolving manufacturing strategies to include retention, expansion, and skill building, and focusing on economic development beyond industrial sites to include housing and quality of life enhancements.
• Infrastructure and Connectivity: Expanding broadband services, especially in rural areas, using federal and state grants, and developing intermodal facilities and passenger rail services.
• Tourism and Community Engagement: Building on tourism infrastructure and branding, promoting agri-tourism, and developing new lodging opportunities focused on outdoor tourism.
• Education and Workforce Development: Cultivating talent among the student population, partnering businesses with educational sectors for training programs, and implementing recommendations from career and technical education studies.
• Innovation and Entrepreneurship: Promoting a culture of innovation, expanding resources for entrepreneurship, and seeking investment for career technical education.

Key areas of focus include:

• Real Estate Development: Re-development of underutilized properties, utilizing available commercial properties, and capitalizing on Opportunity Zones for investment.
• Regional Collaboration and Marketing: Unifying regional legislative agendas, marketing to attract millennials and others, and leveraging volunteer resources in education.

These opportunities collectively suggest a dynamic approach towards regional development, emphasizing collaboration, innovation, and a comprehensive strategy that includes infrastructure, education, healthcare, and tourism.

The region faces several external and internal threats that could impact its economic development and overall well-being. These threats, largely outside the control of local businesses and governments, highlight the need for proactive contingency planning:

• Economic and Policy Changes: Potential elimination of machinery and tools tax and BPOL tax by the General Assembly, loss of corporate headquarters, and impacts from mergers and acquisitions.
• Workforce and Demographic Challenges: Workforce availability issues due to low unemployment and an insufficient number of workers for new jobs, compounded by a declining birth rate, decreasing school enrollments, and an aging population.
• Infrastructure and Regulatory Concerns: Aging infrastructure and the possibility of increased regulatory burdens, particularly in areas like stormwater and air quality.
• Competition and Technology: Competition with other localities in a “race to the bottom” scenario, other states offering larger incentive funds, and technological advancements that could displace local businesses.
• Environmental and Health Risks: The potential for natural disasters and public health crises to significantly impact the local economy and operating budgets.

These threats underscore the importance of strategic planning and adaptability in the region’s approach to economic development, workforce management, and infrastructure investment.