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byline: Bernie Niemeier

Rethinking big

Once upon a time, I worked for a big company. Not for a short time, but a decades-long time. Somewhat unfortunately, I remember those years perhaps too well. Thousands of employees, rules, policies, a big human resources department, politics and power were all concentrated inside the headquarters building. And the customers were on the outside of that cultural equation.

Looking back, it is no surprise that company no longer exists.

In earlier days, the nation’s entire economy was oriented toward big companies. When I was growing up, my father was a company man. And, albeit in a different industry, I became one too.

In the post-WWII years, our nation transformed from an agricultural economy to one driven by manufacturing. Being a company man was the established norm. Around this time, Northern Virginia rose from swampland, eventually becoming the center of Virginia’s economy. Some might say Dee Cee is still a swamp — but that’s another story.

With the rise of more sophisticated supply-chain logistics, a truly global economy emerged in the ’70s and ’80s. Big manufacturing was increasingly offshored. The U.S. economy became largely dominated by financial markets and professional services. It was around this time that that my career began.

Three decades later, in late 2009, I found myself walking out of that big company’s door for the last time along with one of its best brands, Virginia Business.

For me, this was an entirely new phase. Entrepreneurship, innovation and disruption seemed like new concepts then.

Today, we have the gig economy. Economic development is evolving from wooing automotive and parts manufacturers to chasing craft brewers, high-tech server farms, app developers and co-working spaces. It’s a different world from just a decade ago and, of course, change never ends.

Looking forward, the rise of artificial intelligence, robotics and autonomous vehicles will inevitably lead to what some have termed the jobless economy.

Historically, the global system of wealth has been built upon the value of labor. What happens when labor is devalued or even eliminated? Ideas that sound farfetched, like a guaranteed minimum income, begin to gather momentum in that kind of future. Politics aside, it is hard to say such things won’t happen, and Virginia Business looks forward to chronicling these developments as we enter a new decade.

Change comes to all industries. For at least the last 400 years, the media business has been capital intensive and largely supported by advertising. The cost of a printing press or an FCC license, a broadcasting tower and transmitter were formidable barriers to entry. And the stewardship of such long-term capital investments kept the business of journalism a largely ethical and responsible enterprise. In an age of dubious facts distributed via social media and fly-by-night online sources, that isn’t always the case anymore.

Regardless of changes in technology or our economy, at Virginia Business we believe ethics and responsibility are still important values because truth is important to our democracy.

And we also believe in the power of big ideas.

Back in 2012, I picked up my mail one day to find Vanity Fair magazine’s annual Hollywood Issue. It ran some 600 pages long. Tucking it under my arm, I thought, “Why can’t I have a big book?”

And that’s how this particular big idea was born.

Welcome to our eighth annual Big Book. It is our vehicle for telling the big stories that constitute our commonwealth’s economic successes.

This is our biggest issue of the year and while we’re not near 600 pages yet, we’re still hoping!

Many thanks to our loyal readers and advertisers for being a part of Virginia Business’ big story.

Most importantly, it’s true.

People to meet

Years ago, a newspaper publisher friend of mine shared a pretty simple strategy: “We try to put 1,000 names of local people and companies in the paper every week.” This is a seemingly simple, but profoundly effective idea that intentionally engages readers with content about their friends, neighbors and co-workers. It is a lesson that I’ve never forgotten.

At Virginia Business, we do meet a lot of people. One of our goals has always been to bring you more than just words on paper. We are involved with business events across the state, serve on nonprofit boards and are active in the arts community. It is a big commitment by the magazine to establish and maintain relationships with so many business leaders, companies and other organizations. But, of course, business is about relationships.

This month’s Virginia Business marks the launch of a new feature: 100 People to Meet in 2020. Our intention is to make this an annual introduction to some of the people we’ve met over that past year: interesting folks, movers and shakers, up-and-comers. Some are new to important positions. In general, they are all impact makers.

Also included in this issue is our 20th annual listing of the Virginia Business Legal Elite. Unlike our 100 People to Meet list, which are editors’ choices, the Legal Elite are selected through ballots submitted by lawyers licensed to practice in Virginia. Recognition by one’s peers is always a hallmark of professional excellence. To keep the playing field level, lawyers can’t just vote for attorneys from their own firm. Each vote cast inside the firm must be matched by at least as many votes for attorneys from a different firm. This adds significant credibility to the process. Congratulations to everyone who made this year’s Legal Elite!

Next month, as usual, our January cover story will focus on the upcoming session of the General Assembly. Given last month’s election results, which led to the selection of Virginia’s first female speaker of the House, it seems only natural to prominently feature women of the General Assembly in January. A record number of female candidates in this year’s election helped bring unprecedented change to the makeup of Virginia’s political class. Is Virginia really a bellwether of things yet to come in the 2020 national election? Time will tell.

February’s magazine will present our 10th annual listing of Best Places to Work in Virginia, and March’s issue, The Big Book, will include our eighth annual list of the 50 most influential Virginians.

In 2020, we are going to take the latter list to a whole new level. Coming in September, we will debut a new annual publication, The Virginia 500. This will be a listing of Virginia’s 500 most influential business leaders, from a variety of sectors ranging from real estate, energy and technology to higher education and nonprofits. The 500 will be a veritable social register of leadership in Virginia.

If you are beginning to notice a common theme here, that’s intentional — business really is all about people. Virginia Business sits at an interesting intersection of people, companies and places. In our pages, you can read about people you know or feel you could get to know, who work at companies or in places that you have visited or could easily visit. High among the reasons that Virginia is consistently rated as a top state for business should be its people. That’s not easily measured in such rankings, but undoubtedly it is one of the greatest reasons for our success.

Virginia Business strives to bring you stories about the people who make business happen in Virginia. We hope that you enjoy this issue, which starts you off with a fresh list of 100 people to meet in 2020. Here’s to the best of business success to you over the coming new year!

A new editor

In its thirty-three years of existence, Virginia Business has had only a handful of top editors.  Some opportunities just don’t come along that often. 

Richard Foster takes on a new role heading our editorial staff this month.  But first, let me share some thoughts about our departing editor, Robert Powell.

Robert and I first met in graduate business school in the 1980s.  Both of us were taking night classes and working day jobs at what was then known as Richmond Newspapers.  Robert worked in the newsroom and I was in circulation marketing.  Years later, Robert became editor of this magazine, and I had moved on to the corporate world of media.

In this role for nearly 15 years, Robert has served longer than any previous editor of Virginia Business.  Founding editor Jim Bacon moved on to associate publisher and then publisher when the magazine had not quite reached its teenage years. Karl Rhodes and Peter Galuszka both served stints in the years between Bacon and Powell.

Since I joined the magazine as publisher in 2007, Robert has kept a steady hand on the content of the magazine.  Trust me, a publisher sleeps best at night knowing he’s backed up by a capable editor.

Among Robert’s many accomplishments, one that stands out was the transformation of the magazine’s list of wealthiest Virginians, the Virginia 100, into The Generous Virginians Project, which focuses not just on wealth, but on the good works that are accomplished by individual donations, foundations and corporate philanthropy.

Virginia Business has also garnered dozens of statewide and national editorial awards under his leadership.  Fortunately, Robert will be staying on for a transition period as our new editor takes the helm.

Richard Foster is no stranger to these pages.  He has been a freelance writer for Virginia Business for 13 years.  Among his recent credits was the cover story of March’s Big Book on the disparities of rural employment numbers in Virginia.

A native of Chesterfield County and a career-long journalist, Foster was a staff writer at the Richmond Times-Dispatch and later at The Roanoke Times. He was assistant editor at Style Weekly, founding editor of Richmond.com and executive editor at Richmond Magazine. 

More recently, he has served as public affairs manager at the Virginia Foundation for Healthy Youth in addition to being a freelance writer.

That sums it up pretty nicely.  A passion for storytelling, statewide reporting experience, a seasoned editor, significant magazine experience and practically a digital native.  (Richmond.com was founded in 1999, just a few short years after the earliest days of electronic publishing.)

You can look forward to getting to know Richard better in future issues of this magazine, including some new column writing on this page.

Still, he has big shoes to fill.  Come next winter, we will certainly miss and reminisce a bit on the warm and reliable presence of Robert Powell, rising from his desk in the winter cold, Mr. Rogers-like, in his blue cardigan sweater. Any bets on whether Richard has one too, who knows?

Nevertheless, we celebrate both of these distinct personalities and their coming and going.  You can rest assured that Virginia Business is in good hands and will continue to be the leading source of business intelligence in the commonwealth.  As always, it is an honor for us to serve our readers.  They are, after all, Virginia’s leaders.

From HQ2 to EIC2 – the next big deal

No doubt. Virginia was the big winner in the competition for an East Coast headquarters for Amazon.  Originally pitched as a single project, the headquarters eventually was split into two, with Arlington and Queens in New York City being announced as the winning locations. That appeared to be the climax of a 14-month selection process involving nearly 240 competing locations across the U.S.  Then, the unthinkable happened in Queens — politics got in the way, and Amazon pulled out of New York.

Unthinkable, at least in Virginia.  A few community activists have voiced objections here, but the economic incentives offered by Virginia were nowhere near the size of the dollars dangled by New York.  Despite not being a big spender on incentives, the commonwealth still won what could ultimately result in up to 37,000 high-paying, high-tech jobs.  Score one for Virginia.

So, what’s up next?  How about nuclear physics?

A much lower profile, public-sector project has been in the works for years.  In 2015, the Nuclear Science Advisory Committee (NSAC) recommended to the U.S. Department of Energy (DOE) and the National Science Foundation (NSF) that construction of a U.S.-based Electron-Ion Collider (EIC) should be the highest priority for new facilities.

The DOE commissioned the National Academies of Sciences, Engineering, and Medicine to conduct an independent third-party review of the NSAC recommendation to construct an EIC.

Last summer, after 14 months of study, the National Academies released their findings, concluding that the EIC was timely, has the support of the nuclear science community, and will ensure U.S. leadership in nuclear physics with the potential for positive impacts on information technology, communications, health care, national security and other industries.

Unlike Amazon’s HQ2, which attracted interest from across the U.S., proposals for the EIC project are under development in just two locations, the Thomas Jefferson National Accelerator facility (Jefferson Lab) in Newport News and the Brookhaven National Laboratory (BNL) in Long Island, N.Y.

Both Jefferson Lab and BNL have considerable advantages over other locations because each has existing accelerators that can be adapted in cost-effective ways for an EIC expansion.

At this stage, the two facilities are doing more to collaborate in support of approval and funding of the project than they are competing over its final location.  Both will ultimately benefit from the increased scientific knowledge generated by the creation of an EIC, regardless of where it is located.

Jefferson Lab has established an Electron-Ion Collider Center (EIC2) to support the technological development and design of the EIC.

At this stage the scope and scale of the project remain unknown, but early guesstimates are that DOE government funding in the range of $1 billion would be required.  The economic impact of the construction project would be enormous and ultimately as many as 3,000 permanent, doctoral-level jobs would be created.

Newport News is ideally situated for this project.  Proximity to the federal government, existing defense, information technology, shipbuilding and federal contracting infrastructure are all positives.  As much as we are for the diversification of Virginia’s economy, the ability to work effectively and efficiently on federally funded projects remains one of the commonwealth’s major economic strengths.

As one might expect, the use of federal funds makes the timeline a bit vague.  Assuming that construction is approved, site selection is expected to occur in 2020, with construction to begin in 2021.

Kudos to Brookhaven and Jefferson Lab for their mutual support of this project, but for many reasons we believe that Newport News will ultimately prevail as the location of choice.

Another big win for Virginia.  Let’s put the commonwealth’s best foot forward and hope that turns out to be the case!

No quibbling: Virginia is great for business

No quibbling is a stipulation often formally or informally attached to military cadet honor codes at schools such as the Virginia Military Institute. In addition to the proviso that a cadet shall “Neither lie, cheat, steal, nor tolerate those who do,” no quibbling means that questions are to be answered directly and without the exclusion of facts that might artfully obfuscate the truth.  In ecclesiastical parlance, quibbling might well be deemed a “sin of omission.”

Suffice it to say that there has been some quibbling going on in Virginia lately. As unsavory as February’s revelations about decades-old racist behaviors by Gov. Ralph Northam and Attorney General Mark Herring were, they should perhaps come as no great surprise to anyone taking the long view of history.

It is not exactly breaking news that Virginia had a racist past.  Prior to emancipation, Virginia had more slaves than any other Southern state.  Richmond also was the capital of the Confederacy.  Even today, of nearly 1,500 Confederate memorials in the U.S., 242 are located in Virginia, more than any other state.  As recently as the 1950s Virginia’s politicians were architects of the Massive Resistance movement against school integration.

Thinking back to growing up in Virginia and my own education in Richmond’s public schools, I was taught that the Civil War was fought over states’ rights, not slavery.  Looking back today, I question if that is a correct view of history.  In any event, the fact that old yearbook photos have surfaced, unsavory by today’s standards, comes as no surprise. We all have had a lot to learn.

Changing the past is impossible. But in all fairness, similar history and problems exist elsewhere, and much has been learned.  Virginia’s new image as one of the most politically progressive states in the South is accurate.  But that doesn’t always keep the ghosts of the past from resurfacing.  There is still work to do.

One thing about which there should be no quibbling is Virginia’s business environment.  The commonwealth is a great place to locate or expand a business. 

The Amazon second headquarters  project is a prime example.  Unlike Queens in New York City, Virginia is delighted to have been awarded what was essentially the national grand prize for economic development in 2018.  Virginia’s politicians get it; 25,000 new high-paying jobs from Amazon will have a long-term positive impact on our economy.

Bipartisan cooperation involving legislators, the executive branch, institutions of higher education as well as local, regional and statewide economic development agencies is what made Virginia’s win in the competition for HQ2 possible.

When it comes to economic development, the commonwealth is known globally for an abundance of positive attributes.  Virginia has a business-friendly tax and legal environment.  It is a right-to-work state. 

Northern Virginia is a well-established hotbed for high-tech.  The Port of Virginia is a leader in import/export logistics.  Virginia’s higher-education system uses its decentralized structure to create competitive advantages but also shows great cooperation on workforce development.  There is a strong entrepreneurial ecosystem.  Greenfield industrial expansion opportunities exist across the entire state.

If you are looking for more on why Virginia is great for business, look no further.  This month’s issue of Virginia Business is our seventh-annual Big Book, a compendium of economic development data and business opportunities in every region of the state.  This issue also features our 2019 list of the 50 Most Influential Virginians, as well as nearly 50 other lists of major statewide players, companies and corporations in a variety of industries.

Virginia Business always strives to be your source for business intelligence.  While history is rarely unblemished, one thing that there can be no quibbling about is that the business climate in Virginia is one of the most attractive in the world.  Our future remains bright.  Enjoy!

Mavericks, retirees, losers and quitters

It’s hard to know where to begin.  I suppose you could go back to John Warner (R) in 2008, retiring and being replaced by Mark Warner (D) in the U.S. Senate.  Interestingly, the incoming Democrat received the endorsement of the outgoing Republican.  For just such reasons, John Warner, best known by some for marrying Elizabeth Taylor, was often referred to as the maverick senator from Virginia.

Another starting point might be state Sen. John Watkins (R), who, rather than run for re-election, retired from the Virginia General Assembly in 2015. 

Watkins, also considered a maverick, was succeeded by Republican Glen Sturtevant in a hotly contested race against Democratic real estate developer Dan Gecker.  The vote tally was much closer than expected in traditionally conservative Chesterfield and Powhatan counties.

Then there’s former House Speaker Bill Howell (R) of Stafford.  After holding office for 26 years, Howell announced his retirement from politics at the end of his term in early 2018.  His House seat was won by Bob Thomas, another Republican.  Thomas won by only 82 votes in a race that featured legal challenges and a recount.

Then there’s the odd case of Bob Marshall (R).  Best known for his failed “bathroom bill,” Marshall’s district included portions of Prince William and Loudoun counties.  After 26 years in the House of Delegates, Marshall was defeated in 2017 by Democrat Danica Roem, a transgender candidate.

Del. Dave Albo (R) announced his retirement after seven terms representing Fairfax in the General Assembly.  Albo was succeeded by Kathy Tran (D), the first Vietnamese-­American elected official on any level in the commonwealth.

In 2018, U.S. Rep. Barbara Comstock (R), also from Northern Virginia, was soundly defeated by state Sen. Jennifer Wexton (D).
Ditto for U.S. Rep. Dave Brat (R).  A member of the Freedom Caucus, Brat was defeated in a close 2018 race by first-time candidate Abigail Spanberger (D).

In early January, state Sen. Dick Black (R-Loudoun) announced he will retire at the end of his term after 16 years in the General Assembly.  An ex-Marine and arch conservative known for his support of the Assad regime in Syria, Black most certainly faced an uphill battle for re-election in a district that went for Ralph Northam (D) over Ed Gillespie (R) by 11 points in the 2017 governor’s race and for Tim Kaine (D) over Corey Stewart (R) by 19 points in the 2018 U.S. Senate race.

For his part, Stewart announced in early January that he is quitting politics “for the foreseeable future.”  Stewart, who never rose above the Prince William Board of Supervisors in elected office, lost his 2018 U.S Senate challenge by 16 points statewide.  As quoted by The Washington Post, Stewart said: “Politics sucks.  On a personal level, it’s been a disaster.”

More recently, Joe May (R) lost a special Virginia Senate election to Jennifer Boysko (D) to succeed Wexton in Loudoun.  May, a moderate Republican, served 20 years in the General Assembly before losing the 2013 Republican primary to Tea Party-aligned Dave LaRock.

This is by no means an exhaustive list, but the general trend is clear.  Fewer R’s remain; more D’s are replacing them.  Sure, there are other examples. 

Way back in 2010, long-serving congressman Rick Boucher (D) lost his Southwest Virginia seat to Morgan Griffith (R).  Today’s landscape has changed.

There have been far more retirements and losses among Republicans than Democrats.  Some of these pols served the commonwealth long and well and are deserving of their retirement.  Some have simply retired in the face of inevitable defeat.  For some, it’s perhaps a little of both.

Unfortunately, this Republican diaspora doesn’t seem to lead to a promised land.  Where have all the mavericks gone?

Business is a social activity

Welcome to the January issue of Virginia Business!  It’s almost unbelievable how fast the new year has come upon us.  Regardless of whether you’ve already had your fill of holiday cheer, 2019 will unquestionably bring more reasons to gather and celebrate.  After all, business is a social activity.  We may not always think of it that way, but commerce is fundamentally about bringing people together for mutual benefit.

One of the things to celebrate in 2019 is that Virginia Business will reach its 10th anniversary as a private, independently owned media company.  Although the magazine was founded in 1986, it wasn’t until September 2009 that we left public company ownership to walk the tightrope of small business independence.  It has turned out to be a pretty good move.

Ten years ago, we were feeling the prolonged effects of the Great Recession.  The internet economy was just a shadow of what it is today; Facebook was still a startup; Uber, Snapchat, Instagram — who knew?  Who would have thought that Amazon-founder Jeff Bezos would be the world’s wealthiest person or that this month’s cover story (see Page 20) would be on Amazon’s HQ2 project coming to Virginia?

It is perhaps tempting to focus on how much has changed, but many things also remain the same.  Technology may be advancing by leaps and bounds, but great products still need the support of great people.  Workplace culture makes a distinctive difference.  High-quality customer and supplier relationships, coupled with a great workforce, reign supreme.  Business is definitely a social activity.

Virginia Business attends and also hosts a variety of events.  Just last month, we hosted a reception for the members of the 2018 Legal Elite at The Jefferson Hotel in Richmond, co-sponsored by the Virginia Bar Association.

Next month, we will be at the Boar’s Head in Charlottesville for our annual Best Places to Work in Virginia awards luncheon, co-sponsored by the Virginia Chamber of Commerce and Virginia Society for Human Resource Management.  (See next month’s issue for a list of this year’s winners.)

Each June we hold our annual CFO Awards, also at The Jefferson. This black-tie gala celebrates top-achieving financial officers in publicly traded companies, private companies, nonprofits and government agencies.  Sponsors include Dixon Hughes Goodman, the Virginia Society of CPAs, McGuireWoods and Bank of America Merrill Lynch.

Following next November’s elections, we will hold our 13th annual Political Roundtable with a group of political trend watchers focusing on how the results will affect the political climate in Virginia and the nation.  Washington Gas and Shentel have been among our roundtable sponsors.

If that’s not a full enough calendar, Virginia Business also holds Meet the Editors luncheons in various communities across the commonwealth.  In the past two years, we’ve held these in Norfolk, Roanoke, Richmond, Charlottesville and Hampton, all sponsored by Bank of America.  These events are great opportunities to learn about the regional economies of our state, as well as to ask questions about how the magazine puts together its monthly issues.

Check out photos of these and other events in the Out & About pages of each issue of Virginia Business (Pages 8 and 27 in this issue).  Give us a call if you are interested in event marketing opportunities and would like to join our list of sponsors for 2019.
At Virginia Business, we bring people together in print, online and in person.  We appreciate your interest in what we do to stay abreast of business intelligence and economic development on a statewide basis.  In fact, we cannot do it without you.  Here’s to the best of success in 2019!

Tim Kaine is good for business

Virginia Business endorses Tim Kaine for re-election to the U.S. Senate.  We encourage everyone to vote in next month’s election, and we especially encourage those with an interest in Virginia’s economy and business community to vote for Kaine.

Let’s be clear. Since the first issue of Virginia Business was published in March 1986, this magazine has never endorsed a candidate.  Three hundred ninety-one issues later, we are doing it for the first time.  This is not intended to set any sort of precedent for endorsements in future political races.

So, why now?

Simply put: Kaine is good for business.

This isn’t about political parties.  In fact, for the moment, let’s just put aside that Kaine is a Democrat.

Kaine has a long record of success. He entered politics as a member of the Richmond City Council in 1994 and served as mayor of Richmond from 1998 until being elected lieutenant governor in 2001.  He served as governor of Virginia from 2006 to 2010.  Kaine was elected to the U.S. Senate in 2012.  In 2016, he was Hillary Clinton’s  running mate.  The Clinton-Kaine ticket won the national popular vote but lost the Electoral College.  This is the only election that Kaine has ever lost.

During Kaine’s tenure as governor, Virginia took first place each year from 2006 to 2009 in Forbes magazine’s ranking of “Best States for Business.”  During this period, Virginia also was rated as one of the nation’s best-managed states by Governing magazine and one of the best states to raise a child by Education Week.

As governor, Kaine supported spending for mass transit, highway construction and education.  He struck a centrist note in supporting a coal-fired power plant in Wise County that was opposed by environmentalists, while backing tighter restrictions on mountaintop removal mining.

As a senator, Kaine again has struck a centrist note, aligning himself with issues and bills supported by the U.S. Chamber of Commerce, the Virginia Chamber of Commerce and other business advocacy groups.  His voting record has been pro-business on immigration, health-care reform, free trade, military spending and investment in infrastructure projects.

Along with Sen. Mark Warner, Kaine has been a strong advocate for keeping federal spending in Virginia.  In a time of federal budget cuts, these hard-fought wins have been very significant contributors to preserving the vitality of the commonwealth’s economy.

Disregarding political parties, this endorsement seems like a no-brainer, right?

So, why now?

Answering this question can be done only by considering the opposing candidate and the risk to Virginia’s economy that a loss by Kaine would cause.

Virginia Republicans have been unable to win a statewide race since Bob McDonnell was elected governor in 2009.  Meanwhile, Democrats have won the past two elections for the U.S. Senate, the past two races for governor of Virginia, as well as the past two contests for lieutenant governor and attorney general.

Republicans have tried a variety of candidates from across the political spectrum.  Conservative Ken Cuccinelli lost a close race for governor in 2013.  Moderate Ed Gillespie lost a close contest for the U.S. Senate in 2014 and then was defeated by a larger margin in the gubernatorial election last year.

This time Virginia Republicans settled on Corey Stewart, chair of the Prince William Board of Supervisors, to run against Kaine.

One of Stewart’s personal claims is that he’s “Trumpier than Trump!’  He has opposed the removal of Confederate memorials from public sites.  He has associated with white-nationalist Jason Kessler, the organizer of the deadly “Unite the Right” rally in Charlottesville. (Stewart now disavows Kessler’s views.)  He also campaigned for Roy Moore, an unsuccessful U.S. Senate candidate in Alabama who was accused by several women of sexual misconduct.

From a business perspective, these kinds of associations are not positives when Virginia is being evaluated by economic development prospects as a potential site for business expansion.

With a nod to Trump’s “Make America Great Again” slogan, Stewart has said he wants to “Take Virginia back.”  We’re not exactly sure what that means, but going backward is definitely not the way forward for Virginia.

Stewart’s candidacy, in fact, has given some Republicans heartburn.  The chair of the Virginia GOP resigned less than three weeks after Stewart’s nomination.  The National Republican Senatorial Committee has said it will not devote resources to his campaign.  GOP congressional candidates also have avoided campaigning with him.

Regardless of whether you are a Democrat or a Republican, we urge you to vote next month.  A vote for the right candidate is more important than a vote for either party.

Tim Kaine has a long record of successful leadership.  He has the right demeanor.  A vote for Kaine is good for business and good for Virginia.

You don’t have to take the bad

At one time or another we’ve probably all heard the phrase, “You’ve got to take the bad with the good.”   It’s a saying that’s generally offered as unquestioned wisdom. Such seemingly simple truths are often worthy of a challenge.  A few years back, I used this exact phrase with a friend, who immediately shot back, “No! You don’t have to take the bad!”  At the time, this turned out to be pretty good advice.  Let’s not take the bad.

Unfortunately, this conundrum is highly prevalent in our current political landscape. As tempting as it may be to take bad with good, this apparent tradeoff is one that not everyone is quite ready to swallow — and rightfully so.

This dichotomy manifests itself in a variety of ways, the most common of which can be identified as “false equivalence.“ 

Take gerrymandering.  If one party crafts voting districts in their political favor while in control of the General Assembly, does that make it right for the other party to do the same when control changes? Of course not!  If Obama or Hillary did it, does that make it OK for Trump? Of course not!

False equivalence is more than an easy way to justify taking the bad; it’s weak logic.  Take Trump’s statement after the violent “Unite the Right” rally in Charlottesville last year, “You had some very bad people in that group, but you also had people that were very fine people, on both sides.”

The presence of extremes does not mean anything goes.  You don’t have to take the bad.  Right is different from wrong.  Truth is not the same as a lie.  Real news cannot be replaced by fake news.  Good is not the equal of evil.

If this isn’t already obvious, think back to when you were a teenager.  How did your mother react when you said, “Everybody does it”?  Call this the mom test.  Most likely, her reply was, “You’re not everybody!”

Another popular rhetorical device is deflection.  It’s similar to false equivalence.  If you can’t justify one candidate or party’s actions, just pivot to the real or perceived faults of the other side, “They did it, too. Right?”  Put that to the mom test. Wrong!  No, let’s not take the bad.

It really doesn’t matter if the perpetrators are Republican, Democrat, Libertarian or whatever.  Our moms were right.  False equivalence and deflection are poor excuses for ethical lapses; they are weak logic.

From a business perspective, justifications such as these inevitably lead to failure.  No business owner can expect to get away with poor service or shoddy products on an excuse like “Everybody does it.”  Customers respond speedily to an ethical lapse, and it’s rarely a good response.

In Virginia, what a difference a year makes.  For one weekend in August 2017, Charlottesville was crawling with Klansmen, Nazis and various other Alt-Right types.  U.Va.’s Lawn and the city’s downtown mall were under siege.  Lives were lost.  A year later, even for a march in Dee Cee, it’s hard to find as much as a busload of such reprobates.  That’s a good thing.

The business community knows this, and voters are most certainly recognizing it.  The General Assembly saw massive change last November, foreshadowing numerous tumultuous party primaries across the country.  November’s general elections are unlikely to be much different.  Perhaps we are moving past the blithe acceptance of the bad.

Business is different from politics.  There’s not a lot of difference between knowing your niche and playing to your base.  But a business only needs enough customers to be profitable.  Most companies are well aware of the pitfalls of trying to be all things to all people.  Values like being genuine, authentic, knowing your craft and your brand are important.

Politicians would do well to take note of this.  Whether they need to be profitable is debatable.  But, they do need to win by a majority, and voters can always choose not to take the bad.

More better, but still not finished

Since 2006, Virginia Business has presented its annual CFO Awards.  Being a chief financial officer always has been a taxing job, but back then things were just beginning to get a lot tougher.  Who knew then that the subprime mortgage crisis would engender the deepest recession since the Great Depression?

Fortunately, business today seems to be going a lot better.  Last month, The Port of Virginia reported its fourth consecutive year of growth and an all-time high for container volume.  Heck, even the Virginia Lottery is reporting record sales and profits (see Page 27 in this month’s cover story).

Good times in the commonwealth tend to come when federal spending is on the increase.  Defense budget increases pump up Northern Virginia’s technology sector and shipbuilding in Hampton Roads.  After all, shipbuilder Huntington Ingalls is Virginia’s largest industrial employer.

Although it is early, tariffs and potential trade wars do put some clouds on the horizon.  By definition, Virginia’s ports depend heavily on international trade.  On the other hand, Canadian-company Cascades Inc. has announced plans to reopen its Bear Island newsprint mill in Hanover County.  Tariffs imposed earlier this year on Canadian newsprint may have been a factor in reopening the facility.

In terms of state government, Gov. Ralph Northam’s success in getting Medicaid expansion through the General Assembly is a good move for the economy, especially for cash-strapped hospitals in rural areas where access to medical care has become increasingly difficult.

Medicaid expansion also is good for the business community.  Employers have far too long borne the brunt of medical cost increases for employees as well as for indigent care as those costs are passed on to policyholders through higher insurance premiums.

Last month also saw an announcement portending that Virginia is reversing its multiyear decline in economic development rankings.  CNBC listed Virginia as No. 4 in its “Top States for Business,” up from No. 7 last year.

Forbes.com, Site Selection magazine and others publish similar lists.  None of them is considered the definitive ranking.  But improvement is improvement; we’ll take it!  Hats off to the Virginia Economic Development Partnership.

So, much of the news is good.  Nevertheless, the commonwealth’s regional economies remain uneven, with disproportionate gains in NOVA, Richmond and Hampton Roads, while Southern and Southwest Virginia continue to lose jobs and population. 

Without a dramatic improvement in the state’s manufacturing economy, the harsh truth is Virginia’s “new economy” is largely based on professional services and the information technology sector, which are harder to develop in rural areas.

Looking at other states throughout the South that have won manufacturing deals during the past decade, competitive economic development incentives are a significant factor. Too often the value of incentives is discounted by our legislators, but that value cannot be denied.  The rising tide of the current economy in some regions now makes such incentives possible. Let’s get them in place for the other regions.  This will have statewide benefits.

Returning to the role of CFOs, this year’s awards were presented in June, but see the coverage beginning on Page 73 for a listing of all nominees and finalists plus profiles of the winners in five categories.  Many thanks are due to Dixon Hughes Goodman, the Virginia Society of CPAs, McGuireWoods and Bank of America, which were sponsors of this year’s program.

And for more on economic development, see this month’s special advertising section, the 26th annual Virginia Business Site Locator (Page S1).  A new partnership with the Virginia Economic Developers Association has helped make this year’s guide to the best locations for business development sites in the commonwealth especially robust.

Let’s all be a part of the rising tide that floats all boats.  Enjoy!