Economic Development: Shovel-ready sites bring bigger projects to Va.

Site-readiness spending — a priority for Gov. Glenn Youngkin since he took office in 2022 — seemed to truly bear fruit in 2024, especially in Central and Southern Virginia.

In Chesterfield County alone, Super Radiator Coils announced plans last year to expand its facility, creating 160 jobs, and Danish electrolyzer manufacturer Topsoe said it will build a $400 million manufacturing plant, creating approximately 150 jobs. And at the end of the year, Youngkin announced that the world’s first grid-scale commercial fusion plant is set to be built in Chesterfield’s James River Industrial Center, a nearly $3 billion project from Massachusetts-based Commonwealth Fusion Systems, a fusion energy MIT spinoff.

In Pittsylvania County, lithium-ion battery separator manufacturer Microporous is planning to invest $1.3 billion to build a plant at the Southern Virginia Megasite at Berry Hill, creating more than 2,000 jobs.

Also, Virginia regained its crown as CNBC’s Top State for Business in July 2024 for a record-breaking sixth time and the first time under Youngkin.

As usual, the commonwealth was lauded for its educational prowess, ranking first in the nation, but CNBC also called special attention to Virginia’s infrastructure, which “really shines in the wealth of shovel-ready sites the state offers for companies that want to build fast.” Assisted by expanded site readiness funding initiatives spearheaded by Youngkin, the Virginia Economic Development Partnership and local economic development officials have brought “dozens of sites” up to speed, “promising that all utilities and infrastructure can be in place within 18 months,” the network noted.

This isn’t to say that the Republican Youngkin gets everything he wants. In early 2024, his pet economic development project, a $2 billion arena in Alexandria for Washington, D.C.’s NHL and NBA teams, failed in the Virginia State Senate, vanquished by the “blue wall” personified by Democratic Sen. Louise Lucas, chairman of the powerful Senate Finance and Appropriations Committee. For 2025, Youngkin’s last year in office as a term-limited governor, the situation has been the same — narrow Democratic majorities in both houses, too small to override his vetoes.

It’s unclear yet what Youngkin’s legacy will be, as well as whatever lies ahead for him in political life. But it’s plain as day that the state’s friendliness toward economic development has grown during his tenure, thanks in part to increased spending for site development, as well as previous administrations’ focus on workforce training and education offered through VEDP and the state’s higher education system, particularly the Virginia Community College System.

One notable area for improvement, at least according to economic development directors, would be to increase the state’s marketing budget for economic development initiatives. At the December 2024 Virginia Economic Summit and Forum on International Trade, Jennifer Wakefield, executive director for the Greater Richmond Partnership, pointed to Ohio and Michigan, states that have spent millions advertising their opportunities to prospects.

JobsOhio, a private company that promotes the state’s economic development opportunities and receives state liquor revenue under a contract, spent about $50 million on billboards in big cities on both coasts to draw people and investors to Ohio. Michigan allocated $20 million in 2023 for a national marketing campaign to boost the state’s population and economy.

VEDP President and CEO Jason El Koubi, speaking at the same event, echoed Wakefield’s points.

Virginia’s achieved momentum in getting sites prepped for businesses to move in, El Koubi added, so now is the time to spend more on marketing.

“We’ve got to solidify our position as America’s top state for talent and begin to communicate that to the rest of the world. We hear over and over again that Virginia is a great business location, but that we are a quiet state. They’re not hearing from us. We’re not showing up in the media, in the advertising, in the LinkedIn feeds,” he said.

“Virginia spends a fraction of what other states are spending on marketing for Virginia as a business location. We have got to close this gap and make this a greater priority in the state budget.”