byline: James Heffernan

With a major airline partner and daily connections to two of the nation’s busiest hubs, Shenandoah Valley Regional Airport is spreading its wings.  

The regional airport in Weyers Cave now offers nonstop service to and from Chicago O’Hare and Washington Dulles International airports aboard United Express, putting local travelers within reach of hundreds of domestic and international destinations and bringing the valley closer to the world.   

The service, operated by SkyWest Airlines, launched to great fanfare during a ceremony in April that drew area government officials, business leaders and residents. The first United Express 50-seat Bombardier CRJ200 jet touched down at 7:15 that evening en route from Chicago and departed an hour later bound for Dulles. 

In his remarks, Gerald Garber, chairman of the Shenandoah Valley Regional Airport Commission, said the partnership with United and SkyWest is 30 years in the making. “This is a once-in-a-lifetime chance,” he said at the event.“We need to get this right.” 

If the numbers are any indication, the partnership has accomplished just that. 

Passenger traffic at Shenandoah Valley Regional Airport in the last six months has been strong, according to executive director Greg Campbell. “United and SkyWest have done a great job,” he says. “We’re seeing significant increases over what the airport has seen before.” 

SkyWest operates more than two dozen inbound and outbound flights per week between Weyers Cave and United’s hubs at O’Hare and Dulles. In May, its first full month of service, the carrier served approximately 2,100 passengers, a 50 percent increase over the 1,400 people who used the service in April. Passenger traffic steadily increased over the summer, nearing 3,000 in August.  

Travelers can move through the terminal in Weyers Cave quickly, and the facility applies the same federal Transportation Security Administration standards as large metropolitan airports. Parking is free; there are three rental car kiosks located inside the terminal; and shuttle service is available for guests of the new Hotel Madison and Shenandoah Valley Conference Center at James Madison University.  

Campbell says that, as word continues to spread about the reliability of the service, he expects traffic to continue to increase throughout the fall and into next year.  

Shenandoah Valley Regional Airport’s evolution from a general aviation facility to commercial air service has not been without some turbulence. The airport cut ties with its previous partner, Via Air, in 2017 after only 18 months, in response to numerous flight delays and cancellations. Before that, the airport was served by Silver Airways for four years. Both of the Florida-based regional carriers were impacted by a nationwide pilot shortage.  

Officials, however, believe they have found the right partner in SkyWest. The Utah-based affiliate airline operates more than 2,000 flights per day nationwide for United, Delta Air Lines, American Airlines and Alaska Airlines. 

“It’s reliable service that the community can count on,” says Campbell, calling SkyWest’s performance record at Shenandoah Valley Regional Airport “exceptional.” 

The service also promises to bring more visitors to the valley and help boost economic development in the region.  

Carrie Chenery, former executive  director of the Shenandoah Valley Partnership (SVP),  says that business prospects want to know about access to commercial air service.

“They hear about our location and our transportation assets,” she says. “What had been missing there [until recently] was quality, reliable air service. So, now to have that in our fold is significant for our efforts.”  

Similarly, when SVP hosts national site location consultants, “they’re going to see these flights coming and going,” Chenery says. “They’re going to know that they can come back here using this service. And they can go home and tell the companies that they work for that we have this service.”

Courtland Robinson, SVP’s director of business development, says the service also offers existing employers better access to their customers as well as potential employees. 

In August, Chenery announced she was stepping down as executive director to begin a consulting business and devote more time to her 1-year-old daughter. Jay A. Langston, a Virginia Economic Development Partnership official, will succeed her in December.  

Cybersecurity program
Just as commercial air service is taking off in the Shenandoah Valley, so too is the field of cybersecurity. 

Blue Ridge Community College (BRCC) has implemented a cybersecurity workforce development program to fill high-wage, high-demand cybersecurity jobs in the region. 

The $200,000 public-private initiative is being funded by GO Virginia — a state grant program designed to encourage regional economic development collaboration and diversification — along with matching cash and in-kind investments from Harrisonburg and Waynesboro, BRCC and InnovateTech, a private cybersecurity firm in the region. 

InnovateTech provides on-the-job and virtual training opportunities and assists BRCC with student recruitment and evaluation. BRCC, in turn, offers classes, training and support services, including continued online training post-certification.   

“I think almost every business now has to be aware of and address cybersecurity in some way,” says BRCC President John Downey. “I think what this will mean for the region is a greater number of trained, skilled technicians that can help local companies be prepared with cybersecurity. That’s the big win for the region.” 

The overall goal of the cybersecurity workforce development program is to create at least 50 candidates for entry-level cybersecurity analyst positions within two years. The average annual salary for these positions is $53,641.  

Harrisonburg and Waynesboro believe businesses in their communities will benefit from the training.   

“Harrisonburg has been targeting information-technology and information-security for well over five years now and recognizes that we need a talent pipeline in place to fill jobs when they become available,” says Brian Shull, the city’s economic development director. “This training program will certainly help provide that talent pipeline.”  

Greg Hitchin, Waynesboro’s director of economic development and tourism, sees a similar benefit for the city’s economic development growth opportunities. “By partnering on this initiative, we are solidifying our interest in a high-wage industry that will graduate skilled, certified technicians in a high-demand marketplace — a positive outcome for both area students and businesses,” he says.

Corporate moves 
The region’s transportation infrastructure, including its proximity to major interstates and access to the Port of Virginia, has helped the valley attract several multimillion-dollar corporate locations and expansions in recent months. 

InterChange Cold Storage is building a 250,0000-square-foot facility in Rockingham County to provide cold-chain warehousing and value-added services to the region’s food and beverage industry. The $41.6 million investment is expected to create 88 jobs.  

Road improvements and new rail service to the site will connect the InterChange facility to area manufacturers and the Port of Virginia, enhancing the potential for exporting the region’s food products overseas. The facility also will offer blast freezing for the poultry industry.  

Sumitomo Machinery Corp. of America is investing in new machinery at its manufacturing operation in Augusta County. The company, a subsidiary of one of the largest heavy machinery manufacturers in Japan, will purchase new 10- and 20-ton overhead cranes, a new paint booth, an automatic storage retrieval system, and new assembly workstations. Sumitomo recently built a 72,000-square-foot facility adjacent to its former location in the Mill Place Commerce Park.  

NIBCO Inc., a manufacturer of copper valves, fittings and flow-control products, is investing $14 million to expand its operations in Augusta County. The company is adding equipment and updating technology, training programs and new product development at its Stuarts Draft facility, which opened in 1969. The project will create 30 new jobs, while retaining 117 existing employees who will be retrained on the new technology. 

Also as part of its expansion plans, NIBCO recently purchased a 173,000-square-foot manufacturing/distribution building in Buena Vista.

In Frederick County, Amazon has opened a 1-million-square-foot e-commerce facility that soon will employ more than 1,000 workers. The facility is intended to help the online retailer improve distribution to mid-Atlantic markets. The county’s permit review team collaborated with Amazon and the developer to meet a nine-month occupancy deadline.

Economic development officials hope the new United/SkyWest service at Shenandoah Valley Regional Airport will help the region attract more projects like these.

“The Shenandoah Valley Regional Airport has the potential to be one of the biggest drivers of economic development in this region,” Robinson says.

While U.S. cities are vying to land Amazon’s second North American headquarters, one Shenandoah Valley county is reveling in the online retailer’s decision to open a warehouse and distribution center in its backyard.

Amazon is building a 1 million-square-foot fulfillment center in the White Hall Commerce Center in Frederick County. The project is expected to create more than 1,000 jobs.

Officials say the decision is a testament to Virginia’s extensive transportation network, which offers companies access to major markets.

“Virginia is within a one-day drive of more than 40 percent of the U.S., making the commonwealth and Frederick County an ideal location for the distribution and global logistics industry,” Todd Haymore, Virginia’s secretary of commerce and trade, said in announcing Amazon’s decision in March.

The $105 million facility should be fully operational by year’s end. Employees at the fulfillment center will pick, pack and ship large customer items such as big-screen televisions, kayaks and patio furniture, the company said.

The work on the Frederick facility has been overshadowed in recent weeks by a competition involving cities throughout the nation for another Amazon prize. The Seattle-based company announced in early September that it plans to build a second, $5 billion headquarters occupying 8 million square feet that would house 50,000 employees in high-paying jobs. The deadline for the “HQ2” proposals was Oct. 19.

Before announcing the headquarters project, Amazon already was involved in a major expansion of its warehousing and distribution network (including the Frederick facility) that will create more than 100,000 jobs across the U.S. during the next 18 months. Akash Chauhan, Amazon’s vice president of North America operations, said the expansion in Virginia is the result of “incredible customers” and “an outstanding workforce.”

Amazon now employs more than 3,500 full-time employees at its three existing Virginia fulfillment centers in Chesterfield, Dinwiddie and Loudoun counties.

Charles S. DeHaven Jr., chairman of the Frederick County Board of Supervisors, says the top of Virginia has a lot to offer companies like Amazon, including accessibility to major markets, infrastructure, a competitive workforce and a good quality of life. “We look forward to creating a lasting partnership,” he says.

Navy Federal expansion
Amazon is the second company to announce a major business initiative in Frederick this year.

Navy Federal Credit Union broke ground in January on a $100 million expansion of its Winchester call center operations that will add 1,400 jobs to the local economy. The site plan for a three-level, 180,000-square-foot building has been approved and construction on the structure will begin after a new parking garage on the property is completed. The expansion project is scheduled to be finished in early 2019.

Navy Federal, the world’s largest credit union with more than 7 million members, serves active and retired U.S. armed forces personnel as well as federal civilian and contract workers and their families. The company began operations in Frederick in 2006 and is the county’s largest private employer, with roughly 1,400 workers split between two facilities. The new building will nearly double Navy Federal’s workforce in the area. On average, the local call center answers 27,500 member calls per day, or 9.8 million calls a year.

“Our continued growth is a reflection of the service we provide each and every day to servicemen and women and their families, our members,” says Susan Brooks, senior vice president of contact center operations in Frederick County. “Our continued expansion reflects our commitment to make member service our number one priority.”

Brooks says Navy Federal has found a home in Frederick County. “We have a lot of great, hardworking individuals in Frederick County who are committed to serving our 7 million members. I’m confident that trend will continue as we bring on more people.”

In addition to a $2 million grant from the Commonwealth’s Opportunity Fund to assist Frederick County with the project, Gov. Terry McAuliffe approved $4 million in funds from the Virginia Economic Development Incentive Grant program, which is reserved for exceptional economic development projects with large numbers of employees and high wages relative to the average pay of a particular area.

“We are thrilled and humbled to have welcomed Navy Federal and Amazon into our business portfolio this year,” says Patrick Barker, executive director of the Frederick County Economic Development Authority. “Companies have a choice in where they expand. We are pleased they chose Frederick County. The capital investment and new job creation resulting from their commitment is historic in nature for the county, further diversifying our economy and offering broadened career opportunities for our growing workforce.”

84 Lumber
Frederick’s manufacturing sector welcomed another corporate partner in August when building materials supplier 84 Lumber opened a $3.9 million facility in the Stephenson area for the production of roof trusses. The facility, part of the company’s manufacturing division, 84 Components, promises to add 100 jobs.

With trusses now being used in more than 80 percent of new residential construction, production needs have skyrocketed, 84 Lumber said. The company will leverage the new software designs, computerized saws and specialized jigging equipment to produce trusses for buildings of all sizes. 

The Stephenson location, measuring more than 32,000 square feet, will be the first 84 Lumber location of its kind in Virginia and build upon an existing footprint that includes stores in Front Royal and in Martinsburg and Ranson, W.Va.

Other local manufacturing-related announcements include Winchester Metals’ $870,000 investment — adding precision metal fabrication equipment, a third shift and 17 jobs — and Thermo Fisher Scientific’s expansion of its line of medical diagnostic equipment, creating 57 jobs.

In addition, American Woodmark, a major manufacturer of kitchen and bath cabinets for the home, is consolidating its headquarters operations in Frederick. The project will retain 377 jobs, while creating 55 more.

“Manufacturing is the county’s largest employment sector, one that is further strengthened by these announcements,” says DeHaven, the board of supervisors chairman.

According to Barker, Frederick is among the top 15 percent in new capital investment and job creation among Virginia localities during the past decade and in the top 10 percent during the past three years.

“The county hopes to leverage these projects, coupled with a supportive and pro-business mentality, to empower its economic future,” he says.

Shamrock Farms
Elsewhere in the valley, Shamrock Farms, one of the largest family-owned dairies in the U.S., plans to expand its Augusta County operations, adding more than 70 jobs. The expansion is expected to more than double its production capacity in response to growing demand.

In addition to investing more than $40 million in the expansion, the Arizona-based company has committed to spending an additional $24 million on Virginia milk, quadrupling its current purchases of agricultural products from the commonwealth.

Shamrock Farms’ products are sold in more than 50,000 quick-service restaurants and 36,000 grocery and convenience stores nationwide.

The company opened a 200,000- square-foot facility on a 40-acre parcel of land in the Mill Place Commerce Park in 2014.

Also in Augusta, The Hershey Co. is adding 69 jobs and millions of dollars in new machinery to increase production in Stuarts Draft, home to the chocolate maker’s second-largest U.S. facility.

The expansion is Hershey’s eighth in Augusta since the Stuarts Draft plant was opened in 1980. Most recently, the company added a new product line in August 2016.

Meanwhile, discount grocer Aldi is building an 11,000-square-foot store on East Market Street in Harrisonburg near the Valley Mall. The location is slated to open next year.

Aldi, whose parent company is based in Germany, operates more than 1,600 stores in the U.S., including locations in Winchester and Waynesboro. The company sells only the most frequently purchased grocery and household items, including fresh produce, bread, dairy, beef and organic products. The vast majority of these products are sold under the Aldi label.

The company plans to open 650 stores in the U.S. by the end of next year.

Shenandoah University
Meanwhile, Winchester-based Shenandoah University and Falls Church-based Inova Health System have announced a partnership to educate the next generation of health-care professionals, with new programs in nursing, public health, pharmacogenomics and information technology. The venture will be based at the Inova Center for Personalized Health (ICPH) in Fairfax County.

The university’s presence at ICPH will include nearly 28,000 square feet of administrative, classroom and clinical space.

The majority of the new programs began in August. Master’s degree programs in pharmacogenomics and precision medicine and a postgraduate certificate program for adult gerontology primary-care nurse practitioners are slated to begin next August. Students in these programs will have the opportunity to complete clinical experiences and rotations at Inova facilities.

Adrienne Bloss, Shenandoah’s vice president for academic affairs, said the partnership will produce skilled practitioner-leaders “who are experienced in the interprofessional, team-based care model and play an important role in health-care delivery in the region immediately upon their graduation.”

Shenandoah Valley residents have been brewing beer since the Scots-Irish settled in the region in the early 18th century. Three hundred years later, local brewmasters are crafting more than just beer; they’re creating experiences for tourists.

In May, tourism officials launched the Shenandoah Beerwerks Trail, which links craft beer with the valley’s many outdoor recreational activities and attractions.

“It’s a natural pairing,” says Sheryl Wagner, Staunton’s director of tourism who is the trail’s spokeswoman. “We know that craft beer drinkers love the outdoors, and so after a day of hiking, biking and exploring, now they can tap into our local beer culture.”

The Beerwerks Trail is just one example of how the valley is capitalizing on national trends to stimulate the regional economy.

Overall growth in the $106 billion U.S. beer industry has been tepid — with volume in barrels rising only 0.2 percent last year. Craft beer production, however, increased 12.8 percent.   

“We think the Beerwerks Trail provides a new way to showcase one of the fastest-growing attractions in our market to a slightly younger demographic — who also love the great outdoors, music festivals, farmers markers, and exploring vibrant, walkable Main Street communities,” Wagner says.

Tourists initially may come to the region to try out its breweries, she says, “But they’ll also explore our region, eat in our local restaurants and stay overnight. It’s a win-win for everyone.”

The Beerwerks Trail features a dozen breweries in the central and southern valley: Brothers Craft Brewing, Pale Fire Brewing Co., Three Notch’d Brewing Co. and Wolfe Street Brewing Co. in Harrisonburg; Redbeard Brewing Co., Shenandoah Valley Brewing Co. and Queen City Brewing in Staunton; Devils Backbone Outpost Brewery & Tap Room in Rockbridge County; Stable Craft Brewing in Augusta County; Blue Lab Brewing Co. in Lexington; and Basic City Beer Co. and Seven Arrows Brewing in Waynesboro.

“For a rural area like the valley, it’s a real boost, and especially for the smaller townships,” says Heidi Crandall, co-owner of Devils Backbone, which also has a production facility in Nelson County.  “Any time you have one industry in a cluster like that, it brings in more people, and that helps everyone.”

(Devils Backbone announced in April it is being acquired by St. Louis-based Anheuser-Busch. )

The sixth craft-brewing trail in Virginia, Shenandoah Beerwerks received a $50,000 grant from the Virginia Tourism Corp.’s marketing leverage program to support print, digital and social media marketing for the trail during the next fiscal year. Signs will be installed at each brewery, and promotional information will be available at visitor and welcome centers across the commonwealth.

“We are very excited about this grant, because we can greatly expand how we promote our region,” Wagner says. “We see this as a strategic tourism investment that builds off the booming craft-beer industry.”

Following Virginia Craft Beer Month in August, Shenandoah Beerwerks rolled out a “Farm-To-Cask” event over three weekends in September. Each participating brewery crafted a new cask beer for the occasion, using produce from local farms, including honey, apples, Asian pears, blackberries, peppers, pumpkins and ginger. A new brewery, Great Valley Farm Brewery in Rockbridge County, also opened this fall.

The region’s hospitality industry is jumping on the craft beer bandwagon, too. For example, in addition to its other travel packages, Stonewall Jackson Hotel and Conference Center in downtown Staunton is offering guests tickets that are good for their choice of local craft beers and souvenir glasses.

“For us, it’s an opportunity to expand our reach into other avenues,” says Damon Strickland, the historic hotel’s general manager. “It’s agritourism — grain to glass. There are a lot of folks who enjoy learning about the industry from start to finish. And we truly enjoy supporting anything that is local and part of the valley.”

Bath County stave mill
Meanwhile, a Scottish company is tapping the region’s timber industry to produce another type of adult beverage, bourbon.

Speyside Bourbon Cooperage chose Bath County for a new stave mill. It will supply American white oak staves used to make bourbon barrels. The company is investing $5 million to create a production facility in an industrial park in Millboro, creating 30 jobs.

The Distilled Spirits Council of the United States reports that sales rose 4.1 percent to nearly $72 billion in 2015. Sales of U.S. whiskeys increased even faster, up 7.8 percent. The surge in demand for bourbon has led to a shortage of barrels, according to the Wall Street Journal.

Darren Whitmer, Speyside’s general manager, says the search for a stave mill location started more than a year ago. “Our goal all along was to locate the plant in the Shenandoah Valley region due to the availability of white oak and the fact that the timber industry is strong there,” he says.

Speyside currently operates two plants in Scotland and one in Kentucky. The company is a part of a larger cask-making operation based in France. Speyside Bourbon Cooperage in Jackson, Ohio, was the company’s first plant dedicated solely to producing bourbon barrels.

The project is the first economic development project announcement for Bath since 2003. The company has agreed to get 80 percent of its timber from Virginia landowners.

“It’s a huge win for them,” says Carrie Chenery, executive director of the Shenandoah Valley Partnership, a regional economic development group. “Bath was able to provide the natural resources and the workforce that Speyside was looking for.”

Community solar project
While developing its beverage industry, the valley also is responding to the growing interest in solar energy. Virginia’s first community solar project is being built at the BARC Electric Cooperative facility in Rockbridge County.

Instead of installing solar panels on their rooftops, customers of the community solar project will have access to solar power generated at a single facility. BARC is building and maintaining the system for its member-owners, who live in Rockbridge, Bath, Highland, Augusta and Alleghany counties.

The cooperative also built an educational center at the facility to teach students and visitors about solar energy production. The classroom features a touch-screen display of real-time data from the solar array.

At the announcement in August, Gov. Terry McAuliffe called the community solar project “an excellent model for stabilizing and reducing energy costs, while delivering clean solar power to large segments of households on the grid.”

Health-care projects
Health-care projects also have taken shape in the region, a sign of the industry’s influence on the valley’s economy and quality of life.

Earlier this year, Merck, a New Jersey-based global pharmaceutical company, announced a $168 million expansion of its manufacturing facility in Rockingham County near Elkton.

The investment includes upgrading the plant’s infrastructure and adding new manufacturing facilities and equipment. Merck began operations in Elkton in 1941.

McAuliffe approved a $1.3 million performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies. Funding and services to support the company’s employee retraining activities will be provided through the Virginia Jobs Investment Program.

Meanwhile, Valley Health opened a $28.5 million regional cancer treatment facility at Winchester Medical Center in August.

The 52,000-square-foot facility houses chemotherapy and radiation treatment areas, physician practices for surgeons, medical and radiation oncologists as well as consultation, nutrition counseling, integrative care and a clinical research office. The building also includes a 70-seat meeting room.

“Cancer care has long been a vital service for us and for the communities we serve throughout our region,” says Grady W. “Skip” Philips III, the president of Winchester Medical Center.

“This center enables our patients to conveniently access the entire spectrum of cancer services under one roof and have a more seamless, coordinated treatment experience,” he says. “It will be a wonderful place for our multidisciplinary team to work and our patients and families to be supported throughout treatment and recovery.”

Winchester-area plans
Winchester and Frederick County, in fact, have been buzzing with economic development activity in recent months.

Home Depot opened its third distribution center in Frederick County in the fall. The company now occupies 250,000 square feet in the Stonewall Industrial Park. Home Depot will use the space as an overflow facility, complementing its other domestic distribution center at 480 Park Center Drive. The home improvement retailer also operates an international distribution center in southern Frederick County.

The FBI is moving forward with the development of a Central Records Complex in Frederick County. The U.S. General Services Administration purchased a 59-acre site on Millwood Pike in June for $4.75 million.

The complex previously was being considered for the White Hall section of the county, near the West Virginia line, but the project has endured numerous funding and logistical hurdles since its initial announcement in 2004.

The estimated $109 million complex will streamline the FBI’s records management system. The 256,000-square-foot facility is expected to employ as many as 450 people.

Winchester Regional Airport is set to expand as a result of $1.5 million in funding from the Federal Aviation Administration. The airport is looking to construct 11 hangars on undeveloped land north of the runway and east of the Public Safety Building on Coverstone Drive to accommodate future airport development and growth.

Workforce partnership
The valley’s economic development depends upon it having a skilled workforce. This year marks the 20th anniversary of a partnership between Staunton-based Cadence Inc. with Blue Ridge Community College.

Cadence, a contract manufacturer serving health-care and life-science markets, established an endowment at the college for its Technical Studies/Manufacturing Engineering program. Many of Cadence’s employees are graduates or current students of the mechatronics program.

“Not only has Blue Ridge been a great source for new employees, but as our company has grown, many of our current employees utilize Blue Ridge to continue their education and improve their skills in order to grow with the company,” says Ken Cleveland, Cadence’s chief financial officer.

Amy Kiger, executive director of BRCC’s Educational Foundation, says it’s important to have partners in the community like Cadence who recognize the value that a community college provides.

Cadence also collaborates with the Community Foundation of the Central Blue Ridge to support “Student Focus. Community Impact. The Campaign for Blue Ridge Community College.”

The partnership helps fund various technologies and curriculum materials: BRCC’s Career Coach program that places educational and career advisers in 12 local high schools; and the Workforce and Economic Development program to promote awareness to the school’s various degree and certification offerings.

Collaborations such as the one between Cadence and BRCC will help ensure that the valley will continue to attract skilled workers as well as tourists.