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A library of business intelligence

Admittedly, many of my personal business memories start from more than just a short while ago — pre-internet days to say the least. Now that everything is online, we don’t hear much about libraries anymore, except maybe in the case of public schools. Politics aside, I’m delighted people are still interested in reading words on a page, regardless of topic or platform.

When it comes to business libraries, I spent many of my early career days as a graduate student and business researcher gleaning information from reference books.

When media companies were still flush with money, they had in-house research departments replete with voluminous business libraries. Ours had dark wood shelves arranged around a large reading table. Stocking the shelves were decades of annual publications on pertinent topics like nationwide newspaper circulation, ad rates for newspapers, television and radio markets, and ZIP code demographics for the entire U.S. Even more obscure were reverse telephone directories, where you could look up a phone number and find a corresponding name and street address for each listing.

In the days before everything became searchable, downloadable, sliceable and diceable, corporate libraries such as these were where business information was warehoused, waiting to be turned into business intelligence.

After the internet became ubiquitous, however, these company libraries were superseded by desktop computers in every office, laptops in every briefcase and smartphones in every pocket.

Looking at the immediate horizon, artificial intelligence programs such as ChatGPT are predicted to provide all life’s answers. Think of it as big data and technology replacing big libraries and thoughtful research.

Looking back, there was something especially nice about cozying up in a physical library with all that data in one place, copying numbers down on a yellow pad and using a calculator. This is a discipline that’s perhaps lost in the eternal now of today’s copy-and-paste world. The ability to instantly recalculate until an acceptable answer appears doesn’t really replace the innate talent of defining the right research questions at the outset. There is absolutely a difference between data and intelligence.

For me, all of this comes to mind each year when Virginia Business publishes our March issue, The Big Book.

Back during the halcyon days of physical business libraries in the 1980s and 1990s, our March issue served up the State of the State, reporting on the commonwealth’s economy across several industries. (Suffice it to say that we’ve long served as a source for business intelligence.)

In 2013, though, we replaced that annual State of the State report with The Big Book, expanding the issue to include roughly 50 different lists and charts with vital business statistics all in one place — creating an annual reference library of sorts for Virginia businesses.

And while Virginia Business has not yet moved into the realm of artificial intelligence, we have moved into e-commerce. Some of the key lists in this issue are available for purchase at virginiabusiness.com as downloadable spreadsheets in expanded formats beyond what’s included in the print version.

Whether digitized and downloaded or delivered as a paper magazine to your mailbox, think of us as your personal corporate library. Regardless of the platform, context is important, and that’s why we are especially proud to still be bringing you words on a page after 37 years. Enjoy!  

Business climate change

It’s no secret that the COVID-19 pandemic brought about a revolution in how workers and businesses think about where, when and how we work. And that change is fully reflected in the survey responses we received from the 100 companies selected for this year’s Virginia Best Places to Work cohort.

Seventy-one of those 100 businesses reported that the pandemic has resulted in major adjustments to their work schedules, ranging from increased telecommuting opportunities to a fully remote workforce. In this issue’s annual Best Places to Work report, freelance writer Sydney Lake examines how some of Virginia’s best employers are negotiating this shifting workplace landscape.

Surveyed about the ways the pandemic transformed their workplaces, 30 companies said they have expanded telecommuting opportunities, including allowing for a mix of employees working in-person, remote and hybrid schedules. Another 21 companies reported that their workforces have gone fully or mostly remote, with 85% or more of their employees working four or more days remotely each week. And 20 businesses have implemented a hybrid work model, allowing employees to work a mixed schedule of remote and in-office workdays.

Most of these businesses reported implementing new conferencing and project management tools such as Microsoft Teams, Zoom and Slack to better help staff keep up with one another.

Equally as important to Virginia’s best employers is maintaining work culture in this new environment.

“Our culture is HUGE to us,” said a representative from the Dutch cloud computing/web services company Leaseweb, which has its U.S. headquarters in Manassas and now employs a hybrid/remote workforce. Once a month, the company holds an in-person “Leasewebber Day,” gathering employees for fun team-building activities ranging from going out for happy hour to holding summer barbecues and cornhole tournaments to renting out a movie theater to watch the latest Marvel movie.

Mythics Inc., a Virginia Beach-based federal contractor that allows employees to work remotely or in the office as needed, reported that it has “hosted a variety of virtual and in-office activities and contests such as wellness bingo, employee cookbook, virtual yoga, happy hours and other engaging activities.” It also implemented a “buddy” program “to engage/connect our new hires with current team members to accelerate integration with teams.”

Responding to the 2023 Best Places to Work survey, some of this year’s cohort companies also discussed how implementing remote work has been advantageous in allowing them to hire employees from around the nation, enlarging their applicant pools amid a tight and competitive labor market for many industries.

“We have expanded our hiring practices to include remote candidates for nearly every position except the office administrator in our physical office,” responded Richmond-based marketing agency Workshop Digital, adding that 41% of the company’s employees are now working remotely from outside the region. Due to that shift, the agency is also downsizing its physical office space and reinvesting the savings in its workforce and training opportunities.

Remote work has given employees more freedom to work where and when they want to, while helping companies retain employees who need or want increased flexibility. Some companies, such as Reston-based tech company Resonate, report allowing employees to relocate to other states. Richmond-based RiverFront Investment Group, which has moved to a hybrid work model, responded that “some associates have worked remotely in the mountains, at the river or in other countries near family for weeks at a time, balancing that with time in the office later.” 

Overall, Virginia’s best employers report that moving to more flexible work models has been good not only for employee morale but also the bottom line.

“COVID was an opportunity to encourage the kind of working freedoms that transformed our day-to-day operations,” responded Alexandria-based Xsensus LLP, an intellectual property law firm. “Our people were champions during this time, as we grew our business 30% year-over-year since the beginning of COVID. Of course, we needed to hire more administrative staff, but they too are able to work remotely!

“The changes made to our existing workplace policies have been so successful, we do not foresee any reason to change this policy because most people would like to continue working remotely.” 

Tax cuts are the way to grow

Virginia’s finances are in excellent shape, paving the way for the General Assembly to agree with Gov. Glenn Youngkin that it’s time to cut taxes in the commonwealth. It’s your money, not the government’s, and the government has collected too much of it over the last few years.

In a snapshot, Virginia’s coffers are full. The commonwealth ended fiscal year 2022 with a $3.2 billion cash surplus and is poised to end fiscal year 2023 with a $3.6 billion surplus. Our revenue reserves are set to reach nearly $4.3 billion by the end of the 2023-24 biennium, more than the constitutionally targeted 15% of revenues. These numbers show that Virginia is extraordinarily well-positioned to deliver both necessary investments in critical services and badly needed tax cuts for Virginia’s families, individuals and local businesses.

A surplus in government happens by collecting more taxes than appropriated expenses. As part of the formulation of the governor’s current budget proposal, long-serving and highly experienced budget experts prepared five-year projections of revenues and expenditures that anticipate a recession beginning this year and incorporate inflation and ongoing growth in critical education and health care programs. Plainly put, Virginians are overtaxed, and it’s time our leaders take a good look at bringing down taxes to make the commonwealth competitive with our neighbors.

Last year, the governor and General Assembly funded a record $3.1 billion in new investment for public education, including double-digit raises for schoolteachers and funding for school infrastructure across Virginia. Law enforcement agencies across the commonwealth saw $400 million in new funding for training, equipment and recruitment. Landmark commitments to economic site development were included to make the commonwealth more attractive to large-scale investments from global companies like Lego, which selected Chesterfield County for its first U.S.-based manufacturing facility.

Under prudent assumptions — which include an economic recession this year — ongoing state tax revenue is expected to exceed ongoing spending by $1.8 billion and more in future budget cycles, well beyond what is required to support the proposed tax relief package.

Overtaxed Virginians are voting with their feet and their wallets, moving to states with lower taxes and a lower cost of living. The Wall Street Journal ranked our targeted competitor states (Florida, Texas, North Carolina, South Carolina, Tennessee and Georgia) first through sixth for net population growth from domestic migration from July 2021 to July 2022. Meanwhile, Virginia ranked 42nd in the nation, losing nearly 24,000 people to domestic migration in that year alone.

Census data shows that every year for the past nine years more Virginians have moved to other states than have moved from other states into Virginia, totaling 132,000 in net domestic out-migration. Over that same time period, net domestic migration increased Florida’s population by 1.8 million. North Carolina’s population grew by 671,000.

When Virginians relocate, they take their livelihoods with them, at the expense of the commonwealth. IRS data show that, since 2013, Virginia has lost $9 billion in income due to the net loss of Virginians. The same IRS data shows that North Carolina, our closest competitor, gained $17.6 billion in income from former residents of other states.

Three of our competitor states have no income taxes and the other three have been strategically lowering tax rates and have attracted people to them.

Gov. Youngkin has proposed reducing tax rates for both individuals and businesses to enhance our competitive position and grow the economy. All taxpayers in Virginia will benefit from the $5 billion package. The proposed reduction in the top individual income tax rate will benefit 86% of Virginia taxpayers. Paired with an increase in the standard deduction to $18,000 for married taxpayers ($9,000 for singles), 47,000 Virginians will be removed from the income tax rolls. This plan also reduces taxes on a veteran’s military pension regardless of age, increasing the after-tax income of 152,000 Virginia veterans that will stay in Virginia to retire or start their second careers.

Reduction in the tax rate on businesses in Virginia from 6% to 5% will catapult Virginia to the second lowest rate among competitor states. Other proposed business tax changes, such as the Qualified Business Income deduction, will reduce the tax bill for 450,000 small business owners.

Our unprecedented financial strength allows us to reduce taxes while providing resources for additional spending priorities. The governor’s proposed budget also provides $2.6 billion for spending that complements our economic development strategy and enhances Virginia’s quality of life. This includes $450 million for additional business site development, research to drive innovation in small modular nuclear reactors, $230 million to transform our behavioral health system, retention and performance bonuses for our teachers, recruiting bonuses to encourage more men and women to enter law enforcement, resources to allow more nurses to be trained and ready to serve in our health care facilities, and $537 million to preserve the treasure that is the Chesapeake Bay.

We must reverse the trends of the past decade in Virginia to create a more prosperous commonwealth. By creating a more competitive tax code, Virginia is sending a clear message to individuals, families and companies: We are competing to win.

Virginia Secretary of Finance Stephen E. Cummings took his oath of office on Jan. 15, 2022. He oversees the state Department of Accounts; Department of Planning and Budget; Department of Taxation; and Department of the Treasury along with the Virginia Resources Authority and Virginia Board of Accountancy. He previously served as president and CEO of Mitsubishi UFJ Financial Group Inc. (MUFG) in the Americas.

Reimagining the corporation

Welcome to the New Year! 2023 is a new one indeed. Business as usual isn’t so usual anymore. Tech companies are downsizing faster than local daily newspapers. Starbucks baristas are the new trend in organized labor. Amazon’s growth is slowing. Global consumption and supply chains can no longer be taken for granted. Twitter is, well, whatever. Travel, hotels and restaurants — the things we do in person — seem to be making a comeback. And yes, the kids are back in school, although colds and flu have been going around.

After a few tough few years, it’s worthwhile to rethink past assumptions. Many of our best guesses about the future have been dislodged or disproven by unforeseen events and circumstances.

When I first started working, getting hired by a large corporation was the gold standard. IBM was “Big Blue.” Does anyone remember mainframe computers now? In the ’80s and ’90s, McKinsey and Goldman Sachs were prime destinations for Wall Street’s wannabe rich and famous — that’s less the case today. Back then, all MBA schools waltzed to Milton Friedman’s mantra that the “social responsibility of business is to increase its profits.”

Looking back, I can’t help but think of an old Bonnie Raitt lyric: “I’ve had bad dreams too many times to think that they don’t mean much anymore.” The dream of a business world that was both fair and money-centric just hasn’t held up. I remember a well-respected boss who said, “I’ve tried fair, but life isn’t fair, and being fair just doesn’t work.” There may be some element of truth in that statement, but is that really a dream of how the world should be?

Among political and economic systems, capitalism is far and away the most successful driver of wealth creation. At the same time, in its purest form, capitalism derives significant motivational power from scarcity and inequality — it’s a world of winners and losers. As powerful as this is in its simplicity, a zero-sum game vastly understates the collective social problems faced by the world as we know it today. Think about pollution, energy, food scarcity, affordable housing or access to health care. In the long run, such social problems create significant new costs that are ultimately borne by the business world. Capitalism might do well to be a little less self-centered.

Today’s business environment is considerably different from past decades. Business is no longer just about profit. There is a growing recognition of the importance of a double or triple bottom line. Employees, customers and the community are gaining greater recognition for their indispensable value as inputs to financial success. Environmental, social and corporate governance (ESG) efforts are shaping investment decisions at a level not seen in the past.

Fortunately, capitalism has evolved to be more nuanced, more customer- and employee-centric. The best leaders realize that better results come when great people do good things in the best interest of customers and the community. This is a less self-interested and vastly more sustainable approach.

Reimagining the corporation means thinking differently about people. Companies are more complex than just an amalgam of labor and capital. Organizational structures are more complex than just divisions between management and employees. Today’s most successful companies think in terms of teams, teambuilding and placemaking. There is a much greater recognition that we are all in this together.

Most problems cannot be solved by a profit-only mindset. Going into the New Year, let’s strive to make work fun, respectful and profitable. Isn’t that a better approach?

Business is better

Over the past several months, there’s been a bit of a buzz about the direction of the global economy. In conversation, many business leaders will express deep concerns about inflation and the onset of recession. Yet, when asked about their financial performance, most all of them say, “Business is going great!”

Within these conversations lies an obvious disconnect between economic expectations and individual business results. Why is it that we think things are getting worse when they’re actually getting better? Perhaps it’s the long-overheated stock market, coupled with an instinctual bit of defensive self-preservation.

Much of what one reads about the economy or corporate earnings is grounded in comparisons with year-over-year results. However, in my experience, last year’s numbers say equally as much about last year as they do about this one. What kind of year was last year? Was it great? Or, at best, was it just a rebuilding year from an underperforming baseline of pandemic conditions?

For the most part, reports of price gouging and runaway corporate profits are overstated. To be certain, inflationary pressures are leading to higher prices, but simply comparing this year’s prices with the previous year’s vastly oversimplifies the conversation.

Bottom-line improvements are a combination of both price and volume variances. After coming through two-and-a-half years of a pandemic-induced recession with severe supply chain disruptions, most businesses are just getting back to normal or what’s often called “the new normal” of sales volume. It’s been a while since supply and demand were actually anywhere near equilibrium.

At the same time, most companies are continuing to benefit from pandemic-induced cost-reduction measures. It’s no wonder that inflationary price increases are falling quickly to the bottom line. Simply put, business is better.

A couple of quarters of economic contraction with no true recession, followed by a better quarter. A couple of months of rising prices, followed by slower increases. Near full employment, resulting in difficulty in recruiting and hiring. All the while, profits for many companies are higher. Compared with the outlook a couple years ago, we should definitely be grateful for the current economic conditions.

Meanwhile, along with the new normal is what one might call the “new networking.” Almost three years of Zooming has left many of us Zoomed out. Fortunately, in-person business events are starting to make a comeback — it’s just a bit different now. After a long hiatus from in-person networking, the biggest difference is that there are a lot of new faces in the crowd. Many of the people that used to attend nearly every business event seem to have retired, changed jobs or otherwise moved on during the pandemic.

New faces are a good thing. As we reset and restart in 2023, there’s a whole new generation coming up through the workforce. Think about the theory of “weak networking” — essentially this means the more people you meet who are less tightly connected to those you already know, the more likely they are to lead you to an entirely new set of business prospects. With that in mind, you can expand your network and prospects with our 100 People to Meet in 2023 feature, which contains some new and interesting people you should get to know better.

We’re also proud this month to feature Jim McGlothlin as our 2022 Virginia Business Person of the Year. (Read December 2022 cover story.) McGlothlin’s business acumen, accomplishments and philanthropy are legendary. They are the stuff that great stories are made of, making him exactly the kind of person you’d like to meet.

As 2022 draws to a close, I’d be remiss if I didn’t take a moment to thank all our readers and advertisers for the outsized role each of you plays in the economic success of the commonwealth. Because of you, business is better for all of us!  

Getting meta

Twenty years ago, artificial intelligence seemed like the stuff of sci-fi films such as “2001: A Space Odyssey” and “The Matrix.” Today, it’s so ubiquitous as to be virtually unremarkable and unnoticeable — integrated into everything from GPS traffic navigation apps on our phones to smart devices in our homes to security scanners at the airport.

In this issue, Virginia Business Associate Editor Courtney Mabeus explores how some of the commonwealth’s largest federal contractors and tech companies are developing this maturing technology for uses such as expediting medical diagnoses and providing real-time intelligence to troops on tomorrow’s battlefields. (See related story, “Artificial intelligence gets real”)

In a way not dissimilar to AI’s journey, by 2042 the metaverse may be passé. But to the average business executive outside the tech realm, the concept can seem a bit bewildering here in 2022, even though it’s getting more and more press lately.

Part of the problem is that there doesn’t appear to be any consensus on the meaning of metaverse. Science fiction gives us an idealized concept of it as a three-dimensional virtual world that would replace the internet and social networks. Instead of shopping by scrolling through a page of images, for instance, you’d stroll through a virtual mall, examining 3D wares, trying on clothes or test-driving cars in VR.

Despite the fact that Facebook Inc. changed its name to Meta Platforms Inc., we’re still a long way from living in the Matrix. Facebook’s metaverse vision so far is a VR network called Horizon Worlds that requires a bulky headset and features legless, cartoonish avatars that look more like characters from “The Sims” than real people. Horizon Worlds is also similar to Second Life, a virtual network that launched in 2003. So far, Horizon Worlds’ numbers have been underwhelming, The Wall Street Journal reported, with fewer than 200,000 users as of mid-October — less than the population of Sioux Falls, South Dakota.

Additionally, it’s unlikely that current VR rigs, which can cause motion sickness and neck pain in some users, will become de rigueur in offices and homes — especially considering that Meta’s latest VR headset, the Quest Pro, debuted in October at $1,500 a pop.

That said, as remote work continues to grow, making it possible to employ workers from practically anywhere, the demand for virtual and augmented (or mixed) reality platforms and technologies will grow, and more companies and products will arise to meet those needs.

As with any tech, there will be winners and losers, and some will be more comfortable adopting it than others.

Today, we think of digital natives as younger millennials, Gen Zers and members of Generation Alpha, people who know only a hyperconnected world of the internet and smartphones. But the metaverse will speak to a slightly different skill set.

The people who will be most comfortable navigating 3D interfaces are likely to be video gamers. And before you dismiss that population as nerdy basement dwellers, consider that gaming is a $60 billion industry in the U.S. alone, with more than 215 million Americans actively playing video games, according to the Washington, D.C.-based Entertainment Software Association.

About 48% of gamers are women and girls now. And while most children play video games, more than 70% of all video gamers are over age 18. About 36% of gamers are between ages 18 and 34, and 26% are between ages 36 and 54. The numbers drop dramatically, however, among people ages 55 and older, who could stand to be left behind or at a considerable disadvantage in navigating a vastly different cyberworld than the one we know today. There’s plenty of time yet to deal with that problem, though.

I believe Web3 and future social media and work platforms may well feature 3D environments and mixed reality objects, but I think it’s also possible that the American innovators who will create the best of those haven’t yet joined the workforce.

Confident pronouncements from the Mark Zuckerbergs of the world aside, be skeptical of those who claim the ability to definitively predict the future of the metaverse. And be more so of those spouting empty buzzwords and asking you to invest your money in it.   

Full speed ahead

No other region of Virginia moves the entire commonwealth forward like Hampton Roads. Sure, Dee Cee is about technology, government contracting and national politics. And Richmond is about politics that are generally more local.

Hampton Roads, on the other hand, is about the military and commerce. The ports, the railways, interstates, tunnels, trucks and air cargo move millions of shipping containers from across the globe to distribution centers all across Virginia and ultimately to many destinations across the nation.

The past year has been another period of growth for the region. Container volumes are up. Port profitability is up. Projects to widen and deepen shipping channels are nearing completion. Wind power is ramping up, and the $3.9 billion Hampton Roads Bridge-Tunnel expansion is striving to open in November 2025 as expected. These are all major projects and important investments in the economy of the commonwealth.

Meanwhile, tourism in Virginia Beach is on the upswing. Hotel projects that were launched pre-pandemic have been completed. Occupancy rates for leisure travel were strong this summer, and state and regional hospitality experts have high hopes for business travel rebounding this fall after difficulties during the pandemic’s height. New investments are being made in cultural venues to sustain a thriving arts and music scene across the entire region.

If you aren’t already doing business in Hampton Roads, maybe you should be. The talent pool being produced by local colleges and universities is outstanding. Virginia’s largest manufacturer, Newport News-based Huntington Ingalls Industries, offers extensive training to support a variety of highly skilled positions at its Newport News Shipbuilding subsidiary, the state’s largest industrial employer. There is an ongoing supply of well-trained individuals who are completing military service and looking forward to entering the civilian workforce. In these pages, the new commander of Navy Region Mid-Atlantic, Virginia Beach native Rear Adm. Christopher “Scotty” Gray, discusses how he plans to continue the Navy’s partnership with local developers.

We hope that you will enjoy reading the 2022 issue of Hampton Roads Business as much as we’ve enjoyed reporting on the stories in these pages. Our goal is to help everyone better understand the area’s economy and connect with the businesses that drive its success. Hampton Roads is a team player not only for all of Virginia, but also for points across the nation and the globe.

Full speed ahead!

— Bernie Niemeier,

President & Publisher

2022 Virginia 500: The power of leadership

Power is one of those things that can sound great until you have it. It’s a be-careful-what-you-ask-for kind of thing. Power without leadership often goes awry, leading to unfortunate outcomes. The kind of power that works well requires leadership, good stewardship and a genuine concern for the well-being of an entire team.

Many of us can remember working hard to rise through the ranks of large companies. There were leaders who helped — not just because they had they power to do so, but because of a true interest in the work, its potential and the collective ability to grow as an organization.

Conversely, particularly on rungs closer to the top of the corporate ladder, one might find some who are more self-interested. Maintaining or increasing personal power becomes their objective. That’s power without leadership. Unchecked, such toxic behaviors lead to cultural and organizational decline. Teams can be built, but they can also be lost. Sadly enough, it’s easy to know this when you see it. But internal politics are hard to undo, one common rationalization being that this is just how the world works. Then again, hindsight does tend to be 20/20.

Properly executed, power is a handmaiden to leadership. Real leaders set values and direction but empower those below them — not just to get the job done, but also to demonstrate shared organizational values, unlock creativity and generate new ideas from the people who are closest to customers and the tasks at hand.

True leaders maintain a focus on culture and values that lead the organization forward in good times and bad. That’s the sustainable power of good leadership in action.

The third annual edition of the Virginia 500 again features profiles of the top leaders from across the commonwealth. Thanks to the success of our first two issues, we’ve been able to improve the layout and design to make this an even more reader-friendly, must-have resource.

This is a list of the most powerful Virginians. And in almost every instance, you will find these are leaders who have done it right. We thank them for providing the vision and leadership that makes Virginia a great place to do business. Enjoy!

All businesses great and small

There are 32.5 million small businesses in the United States, employing more than 61 million people and making up a staggering 99.9% of the nation’s businesses, according to the U.S. Small Business Administration.

As business journalists, though, we tend to focus almost exclusively on the larger businesses that reap bigger profits and make bigger news. With a combined $16.1 trillion in annual revenues, Fortune 500 companies alone make up 18% of the gross world product and two-thirds of U.S. gross domestic product, while employing nearly 30 million worldwide. It’s easy for corporations like Boeing Co. or Dominion Energy Inc. to soak up attention.

And the fact is, it’s also very difficult to know which small businesses will last and which have a story worth telling. Entrepreneurs face steep risks — about 20% of small businesses fail in the first year, according to the Bureau of Labor Statistics. That figure rises to a dreary 45% in five years, and a daunting 65% hang up “out of business” signs within 10 years.

Faced with that kind of math, it’s understandable why business news outlets can be hesitant to cover startups and small businesses. Yet, with the contraction and closure of many daily and weekly newspapers, coverage of small, local businesses is shrinking, and that’s everyone’s loss.

That’s one of the reasons why we’ve launched a new page devoted to startups, where we’ll endeavor to cover a little of everything — from accelerators, venture capital and funding rounds to mom-and-pop shops.

And speaking of startups, in our cover story, freelance writer Greg Weatherford takes us on the speedy journeys some Virginia companies have traveled to become unicorns with billion-dollar-plus valuations — just six years(!) in the case of Herndon cybersecurity firm Expel Inc.

September also brings the third annual edition of the Virginia 500, polybagged with this issue. Five times the size of our annual monthly issues, this compendium of the commonwealth’s 500 most powerful executives is the length of a modest airport paperback. And if, like me, you’re the type of person who enjoys learning about movers and shakers and how they got to where they are, it can be just as compelling a read.

From an editorial standpoint, I don’t mind confiding that the 500 is a beast of a project. From research to writing to publication, it’s about six months of work, involving all five members of our editorial staff, nine freelance writers and two copy editors. And that’s not even including the photographers, art director and layout staff. I’d like to single out Virginia Business Associate Editor Courtney Mabeus and freelance writer Beth JoJack, whose stellar writing and reporting accounts for about 40% of the 500. Additionally, Deputy Editor Kate Andrews and Assistant Editor Katherine Schulte provided invaluable editing and fact-checking assistance, and Associate Editor Robyn Sidersky kept our daily news website humming along while the rest of us were deep in 500 Land.

As reporters and editors, we find the 500 is an incredibly valuable reference exercise for helping us keep up with the state’s top executives and businesses. And we know that many of you feel the same way, because the 500 is the most popular publication we’ve introduced in the magazine’s 36-year history.

That said, we don’t like to work in a vacuum. Our goal for the 500 is to present as accurate a picture of power in the commonwealth as we can, but it’s also somewhat subjective, no matter how much research we do to back it up. So, if after reading this year’s edition you feel we missed someone crucial or included someone you think shouldn’t have made the grade, feel free to reach out to me. I’m always glad to chat — and now that the 500 is done for another year, I’ll have a little more time.

For a while, anyway.  

Breaking rank

What a difference a year makes.

On July 13, 2021, against a backdrop of ships blasting their horns and spraying water in celebration at the Port of Virginia’s Norfolk International Terminals, Gov. Ralph Northam sat for a harborside interview with CNBC, which had just named Virginia the nation’s best state for business for an unprecedented second consecutive year. (Virginia previously won the No. 1 spot in CNBC’s America’s Top States for Business list in 2019; the cable business news network suspended the 2020 rankings due to the pandemic.)

“This is an exciting day for Virginia,” a grinning Northam said, going on to tout the state’s investment in the port’s infrastructure.

Exactly one year later, under new Republican Gov. Glenn Youngkin, the commonwealth presented a very different response after Virginia was bumped from the top spot by North Carolina, with CNBC ranking the Old Dominion as the nation’s No. 3 state for business in 2022.

There were no news releases sent out from the governor’s office recognizing the fact that coming in third out of 50 is still pretty darn good. Ditto, there were no kudos extended to our southern neighbor.

Instead, when asked by reporters about the rankings, Youngkin said, “I’m always so appreciative of Virginia receiving good accolades … [but] Virginia has not been performing like the best state for business.”

This isn’t a case of sour grapes on Youngkin’s part — it’s a consistent position.

During his campaign for governor, Youngkin downplayed Virginia’s No. 1 ranking, noting that Virginia’s pandemic job recovery numbers in late summer 2021 had placed it among the bottom five states. He’s also been critical of the cost of living and doing business in Virginia, as well as the fact that Virginia lags behind many other states in the availability of large, shovel-ready sites for larger economic development projects. (Incomplete site grading was cited as one factor for why Hyundai chose a site in Savannah, Georgia, for a $5.5 billion electric vehicle battery manufacturing plant in May instead of Pittsylvania County’s Southern Virginia Mega Site at Berry Hill.)

CNBC bases its rankings on 88 metrics, including workforce (the most heavily weighted category); education; cost of living; technology and innovation; and access to capital.

“A great education system is building a smart workforce,” CNBC said about Virginia this year, “but migration has slowed to a state where living costs are high.”

In terms of infrastructure, CNBC ranked Virginia ninth best in the nation, citing the commonwealth’s ongoing $3.8 billion Hampton Roads Bridge-Tunnel expansion, as well as the fact that 89.3% of Virginians have broadband access. (Also, just 4% of bridges and 13% of roads in Virginia are in poor condition, the network noted.)

Nevertheless, CNBC gave Virginia a D+ grade for cost of living and C+ grades for its economy and life, health and inclusion.

To his credit, Youngkin, former co-CEO of Washington, D.C., private equity firm The Carlyle Group, has said that as governor his priorities include job creation and lowering the costs of living and doing business in the commonwealth.

Responding to the CNBC rankings, Youngkin noted that Virginia jobs numbers improved dramatically during the first six months of his administration, and he touted economic development successes such as the June announcement that the Lego Group plans to build a $1 billion toy manufacturing plant in Chesterfield County. Yet, the governor distanced himself a bit from the factors that CNBC criticized, saying that while he’s working to improve the economy, his administration’s also “had to dig out of a hole” he inherited from Northam.

Meanwhile, Virginia Democrats issued a statement, claiming that Youngkin’s “culture war” and stances on issues such as abortion (the governor has proposed banning abortions after 15 weeks of pregnancy) “are driving business away” from Virginia. State Democrats also charged that Youngkin is too focused on his rumored interest in a 2024 presidential bid.

After just six months in office, though, it was probably still a little early for Youngkin to either take credit for the good or blame for the bad. And if Virginia politicos learned any lessons from former Gov. L. Douglas Wilder’s term, it is likely also far too soon to chase national ambitions.