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Tag: job creation

Northrop Grumman to establish $200M Waynesboro facility

Falls Church-based Fortune 500 defense contractor Northrop Grumman will invest more than $200 million to establish an advanced electronics manufacturing and testing facility in Waynesboro, creating an estimated 300 jobs over the next five years, Gov. Glenn Youngkin announced Tuesday.

“Northrop Grumman’s expanding Virginia footprint sends a powerful message that the commonwealth is a magnet for investment underpinned by a next-generation workforce,” Youngkin said in a statement. “This global leader’s cutting-edge facility in Waynesboro will provide job opportunities that attract and retain high-quality talent and create a transformational ripple effect for the entire region.”

The 315,000-square-foot building will be on Shenandoah Village Drive, and Pennsylvania-based Equus Capital Partners will be the project’s developer, according to the governor’s office. Construction will “begin soon,” according to a Northrop Grumman spokesperson. The company anticipates the building will open in 2025 and be ready for production in 2026. The facility jobs will be varied engineering and manufacturing roles, according to the spokesperson.

Northrop Grumman employs roughly 95,000 employees — 6,800 in Virginia — and reported $36.6 billion in 2022 revenue. The company ranked No. 413 on Fortune magazine’s Global 500 list for 2023, and No. 113 on its annual 1000 list of U.S. corporations for the year.

“This new facility will increase capacity to manufacture and test advanced electronics and mission solutions to meet our customers’ growing needs,” Kathy Warden, Northrop Grumman’s chair, CEO and president, said in a statement. “We are pleased to expand our technology presence in the commonwealth and look forward to welcoming more people to our mission-driven team.”

The Virginia Economic Development Partnership worked with the City of Waynesboro to secure the project for Virginia. Youngkin approved an $8.5 million grant from the Commonwealth’s Opportunity Fund to assist the city. The Virginia Talent Accelerator Program, a discretionary incentive program that provides free customizable workforce recruiting and training services for eligible businesses locating or expanding in Virginia, will support Northrop Grumman’s job creation. The program is a collaboration between VEDP and the Virginia Community College System.

Rockbridge tent manufacturer to expand, add 60 jobs

Natural Bridge-based fabric shelter systems manufacturer XFactor Solutions Global has leased 34,000 square feet to expand in Rockbridge County, with plans to create 60 jobs, Cushman & Wakefield | Thalhimer announced Thursday.

The company, which acquired the assets of Creative Tent International in October, will use the industrial space at 70 Douglas Way in Natural Bridge Station for light manufacturing and warehousing of large commercial-grade tents, according to Carmen Elliott with Cushman & Wakefield | Thalhimer, who handled the lease negotiations on behalf of XFS Global.

The new facility offers an expanded footprint and enhanced capabilities including large format welding, fabric sewing and cutting, metal, weld and fabrication and the ability to kit products for customer requirements according to XFS’ website.

The 60 jobs will include welders, sewers and general assembly workers. XFS Global has a 10-year lease on the industrial space.

XFS Global moved Creative Tent International manufacturing from Las Vegas to Natural Bridge Station.

“Our new Virginia headquarters brings us much closer to our customers, and our new facility will greatly enhance our manufacturing capabilities,” Paul Wilcox, vice president of business development and market growth, said in a statement. “Being strategically located near our customers means reduced lead times, improved service team response times and further alignment with our strategic partners, ultimately leading to new product offerings, operational efficiencies and increased value for our commercial customers and their businesses.”

XFS Global serves military, government, commercial and industrial clients.

Food/bev distributor opens $275M Caroline County center

Food and beverage distributor World Class Distribution has opened its nearly finished $275 million, 1.2 million-square-foot distribution center in Caroline County with 400 employees, the county’s board of supervisors announced Tuesday.

Gov. Glenn Youngkin initially announced the project in November 2022, at which time WCD expected to add 745 jobs. The company now plans to hire 1,000 employees, which would make it the largest employer in Caroline County, according to a news release.

“The opening of World Class Distribution is another step forward for the logistics industry in the commonwealth, one of North America’s premier supply chain destinations,” Youngkin said in a statement. “With plans to hire 1,000 employees, the company is well on its way and already providing opportunities for hardworking families in Caroline County.”

The 400 employees the company has hired so far are working on-site in the Caroline 95 Logistics Park in Ruther Glen while the remaining sections of the building’s interior are completed.

“World Class Distribution is another major new business in Caroline, hiring more citizens and creating even greater revenue for the county,” Caroline County Board of Supervisors Chairman Floyd Thomas said in a statement. “This is one of the businesses, along with … M.C. Dean’s 169,000-square-foot expansion, the Lingerfelt 325,000-square-foot building in Carmel Church and the $6 billion Amazon data center project near Thornburg that is making 2023 a banner development year for Caroline.”

Founded in 2009, World Class Distribution is a subsidiary of Tact Holding. It distributes food and beverage products, including canned foods, dry foods, candy, grocery, beer and wine, frozen foods and other refrigerated products. WCD manages 11 distribution centers throughout the country and has more than 4,500 employees in eight states.

Third-party logistics company to expand in Pulaski County

Wytheville-based third-party logistics company Camrett Logistics will invest more than $2 million to expand in Pulaski County, creating an estimated 58 jobs, Gov. Glenn Youngkin announced Tuesday.

Camrett Logistics’ investment in its Dublin facility will include construction, renovating existing space and buying new forklifts and electric trucks.

“Homegrown Virginia businesses like Camrett Logistics keep the commonwealth’s economy on the move,” Youngkin said in a statement. “With this expansion and modernization, Camrett will strengthen its operations and Virginia’s supply chain industry ecosystem, securing continued longevity for years to come.”

Founded in 1995, the warehouse and third-party logistics services company operates 11 facilities totaling 1.8 million square feet in West Virginia and Virginia, including locations in Atkins, Rural Retreat, Wytheville, Dublin and Radford.

“This long overdue expansion will help revitalize an iconic World War II facility into a multi-use warehouse and usher the company into its new era as green supply chain experts,” Camrett Logistics President Cameron Peel said in a statement. “With four electric trucks, two electric spotters, a brand-new electric forklift fleet and motion sensor-activated LED warehouse lights, we are focused on sustainability and the future for the generations to come.”

The Virginia Economic Development Partnership worked with Pulaski County and Dublin to secure the project, for which Virginia competed with North Carolina, Tennessee and West Virginia. Youngkin approved a $230,000 grant from the Commonwealth’s Opportunity Fund to assist Pulaski County. VEDP will support Camrett Logistics through its three-year Virginia Jobs Investment Program, which provides cash grant reimbursements for associated human resources costs after a company has had new employees on the payroll for at least 90 days.

Envelope maker to expand in Bedford County

Forest-based Parkland Direct, a lithographic print and custom envelope manufacturer, will invest $10 million to expand in Bedford County, creating 41 jobs, Gov. Glenn Youngkin announced Tuesday.

The company will add 50,000 square feet to its current 60,000-square-foot facility to increase production capacity with the addition of two converters and press machines. The family-owned business started in Virginia in 1978, and its clients include national brands in areas such as finance, insurance and travel. This will be the fourth expansion in the company’s history, the most recent being in 2005, according to Clink Seckman, president of Parkland Direct. Work on the expansion would start in the first quarter of 2024 and take about six months, with the first of the new equipment arriving at the end of the year. Seckman said it’s been ordered and takes 13 months to build.

Parkland Direct currently has 145 employees and the new jobs would be skilled positions with operating the new equipment and some entry-level positions for equipment assistance, Seckman said.

“We are excited for our operational expansion and adding new careers in our community and the commonwealth,” Clint Seckman, president of Parkland Direct, said in a statement. “We are so thankful to [the Virginia Economic Development Partnership], our team and clients who have given us the opportunity to adapt to our evolving industry and provide even better products and service in direct mail marketing.”

Parkland Direct does foiling, embossing and specialty coatings for direct-mail marketing.

“Parkland Direct’s success in Virginia for 45 years exemplifies what startup businesses can accomplish in the commonwealth,” Youngkin said in a statement. “Cutting-edge companies thrive in our entrepreneurial ecosystem that is enhanced by unparalleled talent, and I am proud that this homegrown Virginia business is expanding and creating new jobs in Bedford County.”

VEDP worked with Bedford County to secure the project and will support Parkland Direct through the Virginia Jobs Investment Program (VJIP), which provides consulting and funding to companies creating jobs in order to support employee recruitment and training activities.

Amazon to open fulfillment, delivery facilities in Va. Beach

Amazon.com will launch a fulfillment center and delivery station in Virginia Beach, creating an estimated 1,000 full-time jobs, Gov. Glenn Youngkin announced Monday.

Groundbreaking began Monday, according to Ian Allen-Anderson, an Amazon spokesperson. The fulfillment center will be located at the intersection of Harpers and Dam Neck roads, and the delivery station will be “at an adjacent site.” Amazon declined to disclose its expected capital investment.

Amazon anticipates launching operations at the delivery station in time for the 2024 holiday season and at the 650,000-square-foot robotics fulfillment center in 2025. Employees at this center will pack and ship small items like books, electronics and toys, according to a news release.

“Amazon’s cutting-edge fulfillment centers generate major capital investment and thousands of jobs and strengthen Virginia’s position as a logistics industry leader on the East Coast,” Youngkin said in a statement. “We see Amazon’s expanding footprint impacting economic growth and innovation across the commonwealth, and we will continue to compete for additional investment in Virginia.”

Amazon opened its first fulfillment center in the state in 2006, in Sterling. The Virginia Beach buildings will be the company’s 14th sorting and fulfillment center in Virginia and its 17th delivery station. The e-tailer expects to launch an Amazon robotics fulfillment center in Henrico County, announced in 2021, later this fall. In September 2022, Amazon opened a 3.8 million-square-foot robotics fulfillment center in Suffolk, the second largest building in the state, after the Pentagon. That facility cost $230 million to build, and it employs about 1,500 people.

Along with HQ2, the e-tailer’s $2.5 billion East Coast headquarters in Arlington, Amazon has 15 Whole Foods Markets, five Amazon Fresh stores and three Prime Now Hubs — located in Virginia Beach, Richmond and Springfield and focused on one- and two-hour deliveries to Prime members — in the state.

The Amazon Web Services subsidiary also operates multiple data centers in the state but has not disclosed the number. From 2011 to 2021, AWS invested more than $51.9 billion in Virginia, according to an economic impact statement released in June. In July, the Spotsylvania County Board of Supervisors voted to amend the county’s comprehensive plan to make data centers a targeted industry, and AWS has since filed three rezoning requests within the county and one in neighboring Caroline County.

“Virginia is a great state for business and gives us the opportunity to better serve our customers in the region,” Holly Sullivan, Amazon’s vice president of worldwide economic development and public policy, said in a statement. “We are excited for our future in the commonwealth, and for what this means for our customers as we continue to grow.”

Since 2010, the company has invested more than $109 billion in Virginia and has created more than 36,000 direct jobs and supported 200,000 indirect jobs in fields like construction and professional services, according to a news release, and has contributed more than $72 billion to the state’s gross domestic product.

The Virginia Economic Development Partnership worked with the city of Virginia Beach and the Hampton Roads Alliance to secure the project. The city will fund stormwater and road improvements between Dam Neck Road and London Bridge Road to provide access to the new facilities, and Dominion Energy will provide power to the sites.

Data centers added $54.2B to Va. GDP over five years

The data center industry contributed $54.2 billion to Virginia’s gross domestic product from 2017 to 2021, according to a PricewaterhouseCoopers study released Tuesday.

That calculation includes indirect impacts from other businesses as part of the data center industry supply chain and induced impacts resulting from household spending of income earned from the industry or its supply chain. The study, commissioned by the Loudoun County-based Data Center Coalition, found that the data center industry supported 86,290 jobs in the state in 2021, up 32% from the 65,500 jobs it supported in 2017. In total for that five-year period, the industry contributed $31 billion in labor income. In terms of total employment, labor income and GDP impact, Virginia’s data center industry outpaces the sectors in Arizona and Ohio, which are also included in the study.

In 2017 alone, the data center industry contributed $8.9 billion to Virginia’s GDP, and in 2021, that number was $13.5 billion. Labor income contributions to the state similarly rose, from $5.05 billion to $7.9 billion. Arizona data centers, by contrast, contributed $8.5 billion to the state’s GDP in 2021, and Ohio’s industry contributed $4.3 billion to its state GDP in 2021.

From 2017 to 2021, the data center industry added a total $2.1 trillion to the national GDP, according to the study. In 2021 alone, data centers contributed $486 billion in economic impact, reflecting value added — the difference between the total revenue of the industry and the total cost of its materials, supplies and services purchased from other businesses.

In 2021, U.S. data centers directly and indirectly supported 3.5 million jobs, up from 2.9 million jobs in 2017, and $294 billion in labor income, an increase from $209 billion in 2017. From 2017 to 2021, the industry contributed a total $1.2 trillion in labor income.

Counting direct and indirect taxes, the industry generated $403.5 billion in federal, state and local taxes from 2017 to 2021. Total tax impact in 2021 was $99.6 billion, up from $66.2 billion in 2017.

Based on preliminary government data for 2022, the data center industry is estimated to have added more jobs in 2022 than it did over the 2017 to 2021 period, according to the study, supporting 560,000 direct jobs.

More than 70% of the world’s internet traffic comes through Data Center Alley — six square miles in Loudoun’s Ashburn area. In 2022, the region accounted for 64% of the total new data center capacity brought online in primary markets across the U.S., according to the North American Data Center Trends Report by CBRE.

While some communities have referred to data centers as game changers, they also are subject to criticisms for being loud, unsightly and large consumers of electricity. Prince William County Board Chair Ann Wheeler lost her primary bid in June over backlash to the controversial proposed Digital Gateway campus, which she supported, and some Northern Virginia-based state lawmakers have attempted to place limits on locating data centers near historic landmarks, although legislation failed earlier this year.

Between 2011 and 2021, Amazon invested $52 billion in building data centers in Virginia, and the e-commerce giant expects to spend $35 billion more on data centers in the commonwealth by 2040. 

The industry’s job-to-investment ratio is lower than other economic development categories, but the Northern Virginia Technology Council’s 2022 economic impact report concluded that for every job inside a Virginia data center, 4.1 additional jobs are supported in the rest of the Virginia economy.

Lyon Shipyard to expand, adding 134 jobs

Lyon Shipyard, a 95-year-old family-owned ship repair facility in Norfolk, will spend $8.5 million to expand its operations and add an estimated 134 jobs, Gov. Glenn Youngkin announced Wednesday.

The shipyard plans to increase its capacity to work on commercial ships and vessels that will work on offshore wind farm operations. Virginia competed with Maryland and North Carolina for the project.

“Lyon Shipyard has been a leader in marine repair and industrial services in Norfolk for nearly a century, and its new investment will allow the company to service vessels integral to Virginia’s growing offshore wind industry,” Youngkin said in a statement. “We thank Lyon Shipyard for its long-term partnership with the commonwealth and advancing Virginia’s position as a leading state in this emerging sector on the East Coast.”

Established in 1928, Lyon has two facilities in Norfolk located on more than 30 acres along the eastern branch of the Elizabeth River. The company provides marine electronics repair, barge repair and pier side repairs and hauls vessels out of the water for underwater repairs to equipment including propellers, tail shafts and rudders. The company’s commercial customers include tug and barge operators, dredging and marine construction contractors, ferry and cruise ship operators, research vessels and commercial fishing companies. Its government customers include the Navy, Army, Coast Guard, Military Sealift Command and the Maritime Administration.

The company announced a $24.4 million expansion in 2021, during which it added 119 jobs, and it has received several Navy contracts this year, according to Pentagon records, including one for repair, alterations and maintenance for vessels that is valued up to $70 million through September 2027 if all options are exercised. The region is also home to Dominion Energy’s $9.8 billion Coastal Virginia Offshore Wind project.

“We want to be the change so many other companies just talk about — Lyon Shipyard wants to lead the charge and help transform the socioeconomical landscape for the city of Norfolk and its residents,” Nikole Dunkley, Lyon’s vice president of human resources, said in a statement.

The Virginia Economic Development Partnership worked with Norfolk and the Hampton Roads Alliance to secure the project for Virginia and will support Lyon Shipyard’s job creation through the Virginia Jobs Investment Program, which provides consulting and funding to companies creating jobs to support employee recruitment and training activities.

Sandpaper manufacturer to expand in Va. Beach

Hermes Abrasives USA, the U.S. subsidiary of Hamburg, Germany-based Hermes Abrasives, will invest $5.6 million in a Virginia Beach expansion that will add an estimated 30 jobs, Gov. Glenn Youngkin announced Wednesday.

Hermes Abrasives manufactures coated and bonded abrasives and grinding tools. The company will return its narrow belt production line to its Virginia Beach facility, which moved to Mexico in 2019, and will add new manufacturing assembly lines and machinery to improve efficiency and output, Hermes Abrasives North America President Brad Sorgen told Virginia Business. The transfer of work from Mexico to Virginia will be complete by the end of September, he added.

Virginia competed with Mexico for the project. Hermes Abrasives USA has had a Virginia Beach facility since 1981, and it manufactures 60% of Hermes’ product portfolio at that location, its U.S. headquarters. It is also the flagship facility for the company’s industrial-scale sandpaper product, primarily used in the automotive and woodworking industries.

“Hermes Abrasives has demonstrated a 40-plus year commitment to Virginia, and the return of its belt production line from Mexico to Virginia Beach sends a clear message that the commonwealth has the right combination of assets for manufacturers to locate and grow,” Youngkin said in a statement. “Hampton Roads offers the skilled workforce, logistics advantage and business climate that international leaders like Hermes need to thrive, and we look forward to their continued success in the commonwealth.”

Sorgen said the positions being added include operators, assembly technicians and associated administrative staff to manage growing business operations at Hermes’ North American headquarters. The company has a manufacturing or sales presence with major offices in Canada, the United Kingdom, France, Austria, Bulgaria, Hungary, Poland, Germany, Singapore, China, Mexico and Virginia.

“Hermes Abrasives has proudly called southeastern Virginia home for over 40 years. Though we have grown and changed with the times, we are excited about the potential expansion and development that we have planned over the next five years,” Sorgen said in a statement. “With nearly $6 million in planned capital investment, Hermes is looking to increase its overall manufacturing footprint to better service its hundreds of customers throughout North America.”

The Virginia Economic Development Partnership worked with the City of Virginia Beach and the Hampton Roads Alliance to secure the project for Virginia and will support Hermes Abrasives’ job creation through the Virginia Jobs Investment Program, which provides consulting and funding to companies creating jobs to support employee recruitment and training activities.

Polish glass fabricator expanding in Henry County

Poland-based Press Glass Inc. will spend more than $155 million to expand its operations in Henry County and add 335 jobs, marking the largest expansion in the county’s history, Gov. Glenn Youngkin announced Wednesday.

The largest independent glass fabricator in Europe, according to a news release, Press Glass will construct a 360,000-square-foot addition at its existing facility in the Commonwealth Crossing Business Centre in Ridgeway, where it manufactures glass for the commercial construction industry. The company currently employs more than 300 workers at the site, which it opened in 2020.

“With this expansion, Press Glass will make the largest single capital investment by a business in Henry County’s history,” Youngkin said in a statement. “The addition of 335 new jobs, more than doubling the company’s head count, helps this region continue its economic rebound and demonstrates the resurgence of manufacturing that is happening across the commonwealth.”

Press Glass was founded in 1991 and has 15 factories in Europe and the United States. The company processes glass for fabricators of windows and doors, facades and interior glass constructions.

“Our clients have trusted us and recognized the high quality of Press Glass products, so the expansion of the factory in Ridgeway is a natural step to increase the availability of our offerings and strengthen our position in the American market,” Press Glass President Maciej Migalski said in a statement. “After the expansion, the Ridgeway plant will be one of the largest and most automated facilities processing architectural glass in the USA. At the same time, we will create new, valuable job opportunities. We express our gratitude to the local leadership for their invaluable support.”

In January, Youngkin announced Commonwealth Crossing would receive about $22 million from the Virginia Business Ready Sites Program in an effort to grow the state’s inventory of project-ready industrial sites larger than 100 acres.

The Virginia Economic Development Partnership worked with the Martinsville-Henry County Economic Development Corp. to secure the project for Virginia, and Youngkin approved a $2 million grant from the Commonwealth’s Opportunity Fund to assist Henry County with the project. Funding and services to support the company’s employee training activities will be provided through VEDP’s Virginia Jobs Investment Program.