Please ensure Javascript is enabled for purposes of website accessibility
Upcoming Event

Best Places to Work in Virginia

Hamburger Menu Hamburger Menu

byline: Joan Tupponce

‘We try to be awesome’

Highest revenue growth
B.E.S. Technology Inc.
Ashburn
bestechnologyinc.com

B.E.S. Technology Inc. specializes in information technology contracting, but it doesn’t want to be known just for that. The Ashburn-based company’s scope is much broader, says President Paul Buede.

“We have a three-pronged vision of being a technical company,” says Buede, who founded B.E.S. in 2011 with Guido Ellsworth. “We do contracting, consulting and product development. We have a full stock of IT services.”

From 2013 to 2016 the company’s revenue grew 2,709.2 percent, making it the fastest-growing company in the Fantastic 50 for 2018. 

Buede and Ellsworth started the company after working on federal government IT projects that require high-level security clearances. “That’s a small world,” Buede says of IT workers with these clearances. “Everybody knows one another.”

The founders’ goal was to build a company focused on employees. “We tend to grow fast because everyone wants to work for a small company with great benefits,” Buede says. “We try to be awesome.”

For example, B.E.S. pays the equivalent of 15 percent of employees’ salaries into their 401(k) accounts even if workers don’t make their own retirement contributions.   Employees also get 37 days off a year, including 25 leave days, 10 federal holidays and two personal days. “We put all the days in one bucket so they can use it whenever they need to use it,” Buede says.

The company also pays full insurance premiums for employees with either health reimbursement arrangements (HRA) or health savings accounts (HSA) and provides a $5,000-a-year training budget for each worker. “We want to help people increase their skills,” Buede says.

Offering generous benefits allows the company to attract people from a small pool of workers who already have high-level security clearances.

If an employee is interested in a new benefit and the numbers allow it, the company will add it, Buede says. For example, the company added a flexible-spending account option in response to a suggestion. “It’s really an employee market. We give people the best deal to get the best people to come be part of our team.”

In addition to its benefits, Buede credits B.E.S.’ rapid growth to its small business-focused, family-oriented culture.

Families are invited to participate in company events, such as a night out at a Washington Nationals baseball game and the annual Christmas party. “We do other events as well,” Buede says. “We realize people work all day with their co-workers. When they are going to do something after hours, they like to spend time with their families.”

To help create a pipeline of new talent, the company last year started a summer intern program for college juniors, giving them the chance to work on real-life technical projects.

“It’s a way we can evaluate them to see if we want to make them employees in the future,” Buede says. “If we do, we will get them into the security-clearance process through some of the prime companies we deal with. We are trying to find great people and train them.”

The security-clearance process can take more than a year to complete. “We tend to keep college folks as part-timers until graduation and then put them in internal projects before they get security clearance,” Buede says.

Since 2011 the company has grown from the two founders to more than 50 employees. “Most are billable employees that work on customer locations,” primarily in Northern Virginia, he says.

During its first years in business, B.E.S. struggled to get major companies to take it on as a subcontractor. It landed its first large contract in March 2014. “We added our first three employees then,” Buede says.

The company’s capabilities have grown as its staff increased. “At first we just offered infrastructure services, but as we’ve added people we’ve added services,” he says.

During the next two years, Buede would like to diversify the company’s customer base. “We want to do work that does not require a high-level security clearance as well as lower-level-clearance security jobs,” he says. “We also want to work with other agencies at the state level.”

Additionally, the company plans to create and sell two software products — a business management platform and a consumer-focused mobile app.

“People used to tell me starting and running a company was hard, and it is. The challenges and difficulties change as we go through different phases of corporate growth,” he says. “But it’s all been worth it.” 

Growing in a crowded field

MANUFACTURING
O’Connor Brewing Co.
Norfolk
oconnorbrewing.com
 

Kevin O’Connor admits he has more gray hair now than he did when he started Norfolk-based O’Connor Brewing Co. in 2009.

He attributes that change in his appearance, in part, to an oversaturated craft-beer industry. “We’re seeing a lot of fallout now,” he says of industry trends. “A lot of breweries have cut back, pulled out of markets. Lucky for us we are still growing.”

Currently there are about 15 breweries in the Hampton Roads area. Nine years ago, O’Connor Brewing was the only brewery in the Norfolk/Virginia Beach area, and there were only two others in Hampton Roads.

“This is a different world from two or five years ago,” he says. “There are more breweries, and also restaurants, hotels and bars today have a wider array of beers, so branding is more difficult. We have been resilient and persevered. I think we will be fine in the long run.”

O’Connor’s conservative approach to business has served the company well. The company is the top manufacturer in the Fantastic 50. “You have to keep an eye on the business side,” he says. “Ninety-five percent is business, and the other 5 percent is about beer.”

The company’s 45 employees work at its 35,000-square-foot facility in the industrial section of Norfolk’s Ghent area. In March, O’Connor Brewing won a gold medal for its Imperial Turkish Coffee Stout as well as three silver and four bronze medals for other beers at the Dublin Craft Beer Cup in Ireland. 

It has 24 beers on tap and hopes to add 20 more by the end of the year. New beers are developed in its seven-barrel pilot system. That system enables the company to make and test seven barrels of a beer rather than the 90 barrels of beer it makes in its factory tanks.

“This allows us to play around with new ingredients and new styles,” he says. “It’s a better experience for our customers because they can try new things all the time.”

Transformational growth

SERVICE
Alpha Omega Integration
McLean
alphaomegaintegration.com

Alpha Omega Integration has adopted a new name and expanded its customer base in recent years.

Originally known as Znergis, the McLean-based information technology and consulting services firm was founded in 2010 by CEO Sujani Rangareddy. From 2013 to 2016 the company grew 1,610.4 percent, making it the fastest-growing service company in this year’s Fantastic 50.

The last two years have been pivotal for the company. Znergis became Alpha Omega in 2016 after it acquired Trusted Mission Solutions Inc. The deal helped expand the company’s business from commercial work to federal contracting.

Rangareddy says Alpha Omega President and COO Gautam C. Ijoor, a federal contracting veteran, “championed the acquisition along with the establishment of the company’s base infrastructure for growth and expansion in the federal contracting space.”

Alpha Omega is a participant in the Small Business Administration’s 8(a) Business Development Program and has been designated an economically disadvantaged woman-owned small business. The SBA programs give the company the opportunity to “gain a foothold in government contracting,” Rangareddy says.

The company now has 115 employees, working in Maryland, Massachusetts, Louisiana, Nevada, Florida, Texas, Michigan and Washington, D.C., in addition to Virginia.

Its customers range from IT service management company Kforce Government Solutions and business management consultant Bart and Associates to the U.S. State and Commerce departments.
Over the years, Alpha Omega has added a variety of services, including big-data analytics, cybersecurity and business process management. These services support “new customer needs around digital transformation, data-driven decision and risk management,” Rangareddy says. 
 

The ‘loudest group in a crowd’

TECHNOLOGY
DH Tech
Leesburg
dhtech.com

Owner Devin Henderson urges DH Tech employees to be “strategically rowdy.” That’s the phrase he coined to describe the Leesburg-based company’s culture.

“We try to think big picture and always look to the future,” he says. “This allows us to focus on emerging technologies and evangelize the ones we believe in. We are often called the loudest group in a crowd. I don’t mind being with the loud group. In fact, I encourage it.”

Henderson founded the company in 2011 at age 28. He previously worked as a consultant for the Pentagon and a government contractor in Germany for the U.S. Army.

“I wanted to focus on emerging technologies such as virtualization, virtual desktops, artificial intelligence and deep learning,” he says, explaining that deep learning involves computer-learned behaviors. “It is training the computer to recognize certain algorithms and to recognize objects or words.”

From 2013 to 2016, DH Tech saw 1,269.2 percent growth in revenue, making it the technology Vanguard winner in the Fantastic 50.

The company offers turnkey solutions in system integrations and virtualization services that include assessments as well as planning, setting up and building a network and installing software. Ninety percent of its customer base is related to the federal government. The remaining 10 percent is commercial.

The company works with the U.S. Air Force, Navy and Army along with civilian agencies such as the Justice, Energy and Commerce departments.
Henderson credits much of the company’s growth to having the right culture in place. “People are excited to come to work,” he says. “We want to make sure they actually enjoy what they are doing and are passionate about it. We want them to know how they fit into our machine.”  
 

Hotel, conference center get reservations well before opening

Guests started booking rooms at The Hotel Madison & Shenandoah Valley Conference Center well ahead of its scheduled opening in May.

“Response has been good,” says Eddie Bumbaugh, the hotel’s director of public relations. “We are already full for graduation weekend.”

The new property is a result of a public/private partnership between the city of Harrisonburg, James Madison University and development company dpM Partners. “We started talking about it six years ago, but it took several years to put the deal together,” says developer Paul Gladd of dpM.

The hotel has a total of 230 rooms — 180 hotel guest rooms and 50 extended-stay rooms with kitchens. The hotel also has a presidential suite measuring more than 1,500 square feet. “The concept was to build the hotel and match the design to the uses that will be most likely in demand,” Gladd says.

The conference center has 21,000 square feet of event space, with multiple breakout options.

The property is located on the grounds of JMU on Harrisonburg’s Main Street. JMU leased the land to the project and is allocating 300 parking spaces in its 1,000-car garage to the hotel and conference center.

The hotel will serve as the headquarters for events and conferences. “We’re working to also get room blocks from nearby hotels to accommodate larger events,” Gladd says, noting the hotel is working with city tourism officials to attract organizations and groups to the area. “The strongest benefit is the highly sought-after tourism dollar.”

JMU students also will  benefit. “It’s an opportunity for students at the Hart School of Hospitality, Sport and Recreation Management …  to have hands-on experience in events, food and beverage, and lodging,” says Bumbaugh.

The conference center includes several classrooms on the second floor of the event space, allowing students to be immersed in the facility’s activities. Students in upper classes also can apply for paid internships. “We will have academic classes as well as the opportunity to shadow and learn from our professional staff,” Bumbaugh says.

Gladd expects JMU to be one of the hotel’s largest customers. “It’s a great opportunity for JMU to make an impression on new students,” he says.

Plywood manufacturer expands operations in Pittsylvania

A longstanding corporate citizen of Chatham, Eastern Panel Manufacturing Inc. is investing $1 million to expand its manufacturing operations. The custom plywood manufacturer recently moved from its former 30,000-square-foot site to a 55,000-square-foot facility in the Chatham Industrial Park.

Matt Rowe, Pittsylvania County’s director of economic development, knew Eastern Panel was in growth mode. He contacted the company’s president, Keith Van Asch, as soon as he learned it was looking for a new facility.  

“I knew the company was testing the water to see how the market was building product-wise. They were looking at numerous options,” Rowe says. “I wanted to show him what kind of building product we had. He liked what we put together.”

The new building is only 2 miles from the company’s former site. “They will be able to keep their existing workforce and add to it,” Rowe says, noting the company hopes to create 15 additional jobs during the next three years.

The deal moved quickly. Rowe began the process with Eastern Panel in mid-December and wrapped it up in mid-January. “It was a fast deal,” he says. “They saw what they wanted, and we made it as easy as possible for them by waiving permit fees and doing a lot of the work for them on the real estate and legal side.”

The Virginia Economic Development Partnership worked with Pittsylvania County to secure the project. The Virginia Tobacco Region Revitalization Commission approved $30,000 in Tobacco Region Opportunity Funds, and the company will be eligible to receive sales and use tax exemptions on manufacturing equipment. The Virginia Jobs Investment Program will provide funding and services to support the company’s employee training activities.

“One of the good things that has come from this is that the company is our cheerleader now,” Rowe says. “Keith has introduced us to other companies, and one company is thinking about coming here and adding to our workforce.”

The company began moving equipment in and making modifications to its facility in February. “They are as happy as they can be now,” Rowe says.

Institute for Contemporary Art opening ‘is a big deal’

Joseph Seipel is elated about the publicity Virginia Commonwealth University’s new Institute for Contemporary Art has received in the U.S. and internationally. “It’s astounding,” says Seipel, ICA’s interim director. “This is a big deal in the world of creative art.”

VCU will open the Richmond facility April 21. Its inaugural exhibition, “Declaration,” will feature 33 artists from around the globe.

The nearly 41,000- square-foot building includes a 33-foot-high central forum along with galleries, offices, a learning lab, café, bar and 240-seat auditorium. 

ICA will exhibit art but will not have its own collection. It’s located at the busy intersection of Belvidere and Broad streets, an area where VCU owns several other properties.

In keeping with VCU’s master sustainability plan, ICA’s design incorporates technologies and design elements that make use of numerous natural resources. The project is designed to meet LEED Gold certification standards.

“This was the creative campus linchpin that was missing,” says Seipel of the center. “Students from across the campus can come in to see art and meet the artists when they are in town doing installations.”

ICA may be part of VCU, but it’s not just for students. It’s for “everybody in the city,” Seipel says. “We want people to come in and enjoy the exhibitions and talk about them. We hope it will spark cross-cultural conversations.”

Richmond is becoming a creative city and marketplace, he adds. “This offers one more opportunity to show everyone how forward-thinking Richmond is. I think this will be an arts tourist destination, bringing in people from around the country.”

Seipel wouldn’t be surprised if ICA attracts more than 30,000 visitors this year. “I think this is going to be another card in the deck for the city and the region,” he says. “We are looking forward to showing the world what VCU does.”

Seipel believes that ICA has the potential to be a major contributor to the evolution of contemporary art. “Much of the art that is coming in is brand new. Contemporary art is changing, and we will be on the cusp of that,” he says.

A good showing

Hampton Roads attracted a diverse mix of businesses last year. New business announcements included projects ranging from health care and biotech to technology and advanced manufacturing.

In terms of jobs, the WPS Health Solutions project was the largest of the year for Hampton Roads Economic Development Alliance and the city of Hampton.

A Wisconsin-based company, WPS, leased a 100,000-square-foot office in Hampton to administer a military health-care contract, providing customer service and claims payments services. The project, now up and running, originally was expected to create 645 jobs but now has a staff of 750. “This type of project is important because it provides quality payroll opportunities with benefits to our region’s workers,” says Rick Weddle, the alliance’s president and CEO.

While 2017 was a good year for economic development, Hampton Roads has a long list of “needs,” such as competitively priced, shovel-ready sites. It also needs prime office and industrial facilities for lease as well as “an increased workforce supply, especially in mid-level skill sets,” Weddle says, adding that “The Port of Virginia’s significant investments will continue to position the region in the competitive site-selection process.”

Virginia Beach
Virginia Beach’s efforts last year resulted in about 2,500 new jobs and capital investments of more than $240 million. It also retained more than 5,300 jobs that could have gone elsewhere.

“By all accounts this was a very successful year for us,” says Warren D. Harris, the city’s director of economic development. “Our efforts were led by City Council to diversify the economy and target specific industry sectors that provide value-added job opportunities for our citizens.”

The year started with Mythics, a systems integrator and managed-services provider,  deciding to stay in Virginia Beach instead of relocating its headquarters to Washington, D.C. “Mythics is a homegrown success story that started in a living room and has since grown to $900 million-plus in sales,” Harris says.

Mythics will relocate 143 full-time employees to its new 50,000-square-foot headquarters at the Town Center of Virginia Beach, creating another 30 full-time positions. The capital investment in real estate improvements, business property and machinery and tools exceeds $7.5 million.

Another big save involved Global Technical Systems (GTS). The company is expanding operations at its Virginia Beach headquarters, investing $54.7 million and creating 1,100 jobs (see related story on Page 23).
Virginia Beach also expects to benefit from completion of two transatlantic cables. One of the projects is Marea, a high-speed cable running 4,000 miles from Bilbao, Spain, to Virginia Beach. The cable, which is expected to begin operation this year, is the result of a partnership involving Microsoft, Facebook and Telxius, a subsidiary of telecom provider Telefónica. Telefónica also has a second cable, Brusa, running between Virginia Beach and Brazil, which also is expected to begin operation this year.

The cables are expected to attract data centers and data-related companies to Virginia Beach. “To assist in that effort, our City Council reduced its tax rate as it relates to data centers from $4 on materials, products and services to 40 cents per $100,” Harris says. “Our depreciation schedule is lower and different from other localities. This will position Virginia Beach to be competitive for growth in data-center development.”

The city also saw an increase in biosciences and health-care firms as well as the expansion of power-tool manufacturer Stihl Inc. Stihl plans to spend $25 million tearing down its existing building to construct a 70,000-square-foot North America headquarters facility on its campus in Virginia Beach. “It is a reaffirmation of their support,” Harris says.

Suffolk
Suffolk, meanwhile, recruited prospects promising more than 700 jobs and $100 million of capital investment last year. The wins include companies in manufacturing, distribution, health care and retail. “We had a nice, diverse project mix,” says Kevin Hughes, the city’s director of economic development.  

Spain-based Atarfil, which makes thermoplastic geomembranes, has opened its first U.S. manufacturing and distribution facility in Suffolk, a $5.1 million investment. Peet’s Coffee has started construction on the first phase of its $58 million roasting plant, which should be completed in 2020. 

In addition, India-based Welspun Group has occupied 200,000 square feet of space in a speculative building constructed by Panattoni Development in the Virginia Regional Commerce Park. The company, which invested $1 million in the building, manages distribution of linens and towels for its U.S. retail and hospitality customers.

Also, Sentara Healthcare is expanding its BelleHarbour campus, a $34 million project that the health system expects to complete early next year.

One of Suffolk’s goals this year is recruiting “those companies in distribution along the West Coast that don’t have East Coast operations,” Hughes says. The initiative builds on the city’s recent success with West Coast-based companies such as Peet’s, Emser Tile and Friant and Associates.

Portsmouth
Portsmouth saw investment climb in 2017 while 420 jobs were created or saved. The city’s largest deal was the completion of the nearly 200,000-square-foot building for Harrisonburg-based InterChange Group Inc. in the former Gwaltney hot dog plant. “It’s right off the interstate. It’s a great location,” says Robert D. Moore, Portsmouth’s director of development, noting the deal represented an $11 million investment. 

Richmond-based Legend Brewing expanded into the city in July, occupying the Seaboard Coastline Building in Olde Towne Portsmouth. The $400,000 investment is expected to create up to 30 jobs.

Portsmouth also landed its first microbrewery, MoMac Brewing, which made a  $500,000 investment, as well as its first micro-distillery, Copper and Oak Craft Spirits, which is investing $200,000.

PortRail Crane Service added 30 employees with an investment of $400,000, thanks to the Port of Virginia’s order of 86 specialized cranes. The contract is the largest one-time order for automated stacking cranes in industry history. PortRail will assemble and service the cranes.

Newport News
Last year was a year of “economic growth, diversification, leveraging successful partnerships, major business expansions and continued redevelopment throughout the city,” says Florence G. Kingston, director of the Newport News department of development. 

The bigger projects included Ferguson Enterprises’ nearly $83 million plan to expand its headquarters to City Center at Oyster Point. That campus will house 1,400 Ferguson employees working in information technology and other corporate functions. The move is expected to create 434 jobs. 

Newport News Shipbuilding, a division of Huntington Ingalls Industries, will work jointly with Connecticut-based Electric Boat to build a new fleet of submarines for the Navy. To support this effort, the company expects to invest more than $750 million in its facilities and add 1,000 jobs by 2025. 

Mühlbauer Inc., which manufactures automated machinery, expanded its existing facility 51,000 square feet. The $12 million investment is expected to add up to 20 jobs.

Fairlead Boatworks also is expanding operations in the Seafood Industrial Park, an investment of more than $1 million. The company, which specializes in the repair of commercial and military vessels, will create 25 jobs and work to establish a second facility, North Yard. The second expansion will include more than $4 million in investment.

Hampton
Steven L. Lynch, interim director of economic development in Hampton, calls 2017 a clear “demonstration of the city’s viability as a destination for business investment and growth.”

Hampton announced 46 new projects last year, which represented total investment of $97 million and 1,097 new jobs. Those numbers include the WPS Health Solutions deal.

Last year lodging was a strong focus for the city.  “It was essential for the city’s tourism, entertainment and sports venues to develop quality hotel rooms to support the venues,” Lynch says.

Hotel projects included the $11.2 million Hyatt Place and the $11.3 million Element by Westin. Other projects include The Vanguard, a $2.3 million live entertainment venue project, and Lumen, a $42.9 million new luxury rental residential project.

Norfolk
Chuck Rigney, director of development for the city of Norfolk, last year worked with companies on projects that are expected to add about 1,150 jobs.

Deals included the expansion of apparel company Tegra Global, representing a $2.5 million-plus investment and 300 jobs. Colonna’s Shipyard also invested $23 million for pier improvements and its new 600-foot floating dry dock. The shipyard is adding up to 100 jobs.

Norfolk Commerce Park is gaining Instant Systems, a medical packaging firm. The company is leasing 6,968 square feet and investing more than $900,000 to expand its production and distribution capabilities. Instant Systems will retain its current location in Norfolk’s Central Business Park as a research and development facility. The expansion is expected to generate more than 72 jobs within the next five years. 

Also, Optima Health now occupies 45,000 square feet at the former J.C. Penney building at Military Circle Mall and is adding 200 jobs.

Last year also saw the openings of the $40 million Waterside District; a $164 million 300-room luxury hotel, The Main Hotel and Exchange Conference Center; the $75 million Simon Norfolk Premium Outlets; and the groundbreaking for Norfolk’s $75 million Ikea store. 

 

Eastern Virginia’s recent deals

Company Location #Jobs
Global Technical Systems Virginia Beach 1,100
WPS Health Solutions Hampton 750
Geico Corp. Virginia Beach 500
Ferguson Enterprises Newport News 434
LifeNet Health Virginia Beach 321
Standard Calibrations Inc. Chesapeake 150
J&F Alliance Group Hampton 119
Atlantic Core Building Products Chesapeake 50
U-Play Virginia Beach 38
Mythics Virginia Beach 30
Source: The Hampton Roads Economic Development Alliance, 2017

Staying close to home

Global Technical Systems (GTS) considered locations in Mississippi, Oklahoma, Florida and Northern Virginia when it decided to build a new advanced-manufacturing plant. Ultimately, however, it stuck to its roots in Virginia Beach.

“The city has been really good to me. It’s great to work with,” says Terry Spitzer, the co-founder and co-owner of the company with his wife, Yusun. The company started in Virginia Beach in 1997 and has headquarters on the city’s Lynnhaven Parkway.

A provider of advanced-engineering solutions for defense, homeland security and related U.S. government and international customers, GTS is investing $54.7 million in its new 500,000-plus-square-foot manufacturing operation. The plant is expected to create more than 1,100 jobs in two to three years with an average annual salary of $74,000. “I think the total investment will push over $100 million before we are done,” Spitzer says.

The company will construct a manufacturing center where it will produce and distribute “flywheels” (electro-mechanical batteries) for the U.S. Department of Defense and commercial customers. The facility will be located on approximately 30 acres currently owned by the city at the site of the former Owl’s Creek Golf Course.

“We would like to break ground in April,” Spitzer says. “We have been promised a completed building 12 months after that, but that won’t include the production lines. Those will probably lag two months behind.” GTS currently has nine facilities in Oklahoma, California, Alabama, Florida and Virginia.

Spitzer, a Navy veteran, got the idea for the company after seeing a growing need for up-to-date technology in the military. “The military wasn’t keeping up with technology like the commercial world,” he says.

GTS designs, builds and produces combat, command, control, intelligence, surveillance and reconnaissance systems for the Defense Department. “We morphed from a service company into a total research, development and production [firm],” Spitzer says. “We are experts in chemical, biological, radiological, nuclear and high-yield explosives.”

On the commercial side of the business, the company is a National Security Agency-certified integrator. It provides secure communications. “We are at the leading edge of a new program — commercial solutions for classified data,” Spitzer says. “There is a need for this, and we understand the need. We build, test, certify and produce the technology.”

The new communications program is used to send sensitive information. While any type of business can use it, it is especially helpful to the military as well as health-care and financial institutions. “No one is going to crack this. No one is going to hack this,” Spitzer says. “That I can guarantee.”

The company also produces carbon-fiber technologies for the Department of Defense and commercial industry. It can take any kind of energy, such as solar or wind, and convert the electrical power to kinetic energy. It stores the energy until it is needed. “Energy is the machine that drives the world’s economy,” Spitzer says. “We are doing something that has a worldwide touch.”

Kinetic energy is 100 percent green, he adds. “It can drop a company’s data costs for power by 40 to 50 percent,” Spitzer says.

The company will have to make its own raw materials, set up its own supply lines and create a market. “It’s the hardest thing I have done, but it’s something we are really excited about,” he says.

New employees will need to be trained on the technology. GTS will work with local and regional workforce partners to develop customized training programs. Spitzer likes to employ other veterans because they have the “attitude and mentality as well as similar training,” he says.

Being able to secure GTS’ commitment to Virginia Beach was the city’s “biggest success in 2017,” says Warren Harris, Virginia Beach’s economic development director. “GTS is changing the world. The company has been working on the prototype at its Lynnhaven headquarters facility for several years and the market response has been incredible. This confirms that our efforts to create a sustainable and diverse innovative economy are working.”

Spitzer, who grew up in the Shenandoah Valley, has lived in Virginia most of his life. “The idea of creating manufacturing jobs and going in with something cutting edge and being able to put this in Virginia was a big deal for us,” he says.

A big upswing in interest

In the first six months of the current fiscal year — July 1 through Dec. 31, 2017 — economic development project activity more than doubled in the Southern region.

“We have seen a big upswing in the number of prospect visits,” says Linda Green, executive director of the Southern Virginia Regional Alliance, which covers a region stretching along the North Carolina line from Patrick through Halifax counties. “We’re seeing more mature projects where the average wage is higher.”

Last year was a mix of expansions and new leads for the region. Its biggest win was the United Kingdom-based Unison, which will invest $5.2 million and create 35 jobs within three years. Landing the deal was a joint effort by the alliance, Danville and Pittsylvania County.

Expansions in the region include Intertape Polymer Group in Pittsylvania with a $7 million project that will create jobs for an additional 15 employees. Halifax County saw the expansion of Grand Springs, a water producer, with an $800,000 investment that is expected to create 28 jobs.

The region also is seeing a growing number of international investments. “We have companies from Asia, Europe, Canada and Mexico,” Green says. “We’re also seeing diversification as well as growth in small and large industries.”

The success of existing companies often attracts new businesses to the area. “When existing companies are happy and growing, it’s the best image that you could depict for incoming industries,” Green says.

The region also has looked at supply-chain needs for existing industries while seeking out potential new suppliers. “Our local, existing businesses are more cognizant about telling us what supply-chain companies are important to them,” Green says.

Prospect-ready sites
One of the challenges facing the region is making sure sites and buildings are ready for prospects. “When we are contacted by a company or site consultant, they have already scouted out an area,” Green says. “They expect immediate results when they get here because they are ready to make hard decisions. Five years ago that might not have been the case. Timelines are significantly shorter.”

A strongpoint for the region is its skilled machining programs. “We have a large pipeline feeding into Danville Community College and Patrick Henry Community College for people getting industry recognized credentials,” Green says.

Last year was a promising year for Danville, officials say. “We had more activity and more inquiries than we had in several years,” says Linwood Wright, a consultant to Danville’s office of economic development.

Sixty-five upscale market-rate apartments with rents from around $800 to $1,250 became available in the city’s downtown River District. “For Danville, that is pretty darn good,” Wright says. “Twenty-seven million dollars of public funds generated about $130 million of private investment in the River District last year.”

New in the River District are Ballad Brewery, a craft brewery that opened last year, and a craft distillery, Dry Fork Fruit Distiller. “The distillery will probably open this April,” Wright says. “They will sell fruit-flavored whiskeys. Their products are now sold in Virginia and West Virginia ABC stores.”

The River District Tower, a more than $26 million project providing commercial and professional space, is now open. Originally developed  by Dan River Inc., the building was about “to be demolished,” says Wright.

Many companies last year moved forward with previously announced plans. Range Rover manufacturer Overfinch has started working on vehicles. The company invested $8 million in establishing its manufacturing operation in Danville, hiring 41 employees.

Kyocera SGS Tech Hub, a subsidiary of Kyocera SGS Precision Tools, is building an approximately 30,000-square-foot facility in Cyber Park. The company is investing $9.5 million and plans to hire 35 employees. Completion is expected this May.

A 3,500-acre industrial park, Berry Hill in Pittsylvania County, is starting to take shape. The park is designed to attract large, advanced-manufacturing prospects. “We have a couple of live prospects that have not been announced,” Wright says.

Advanced manufacturing is just one of the region’s economic development targets. It is also recruiting technology firms and companies from around the globe. “Right now, we are working on a project with headquarters based in India,” Wright says.

South Boston hotel
Last year South Boston received a $475,000  Industrial Revitalization Fund grant to renovate the John Randolph Hotel. The downtown building had been vacant for about 20 years. The town also received a $600,000 Tobacco Region Revitalization Commission grant for remodeling the building.

Built in 1929, the revamped hotel will include a restaurant and 27 guest rooms as well as a rooftop bar. Renovations are estimated at $8 million.

Last year, Martinsville-Henry County saw $22.9 million in capital investment that promised the creation of 147 jobs. “It was another consistent year,” says Mark Heath, president and CEO of the Martinsville-Henry County Economic Development Corp. “Over the last five to six years, it has been fairly consistent in terms of jobs, tax base and deals. We are thankful for that.”

Bassett Furniture last year completed a $1.5 million expansion that is expected to add 22 employees during the next few years. Eastman Chemical Co. likewise invested $11.7 million in expanding its Henry County manufacturing operation.

Canadian sliding glass door manufacturer Novatech became operational last year and is expected to create 50 jobs.

More international companies are looking at the area “because they need to be in the North American market. They need a U.S. presence,” Heath says. “They feel like this is an excellent place to start up.”

It’s not easy for a foreign company to come to the U.S. and “start from scratch,” he adds. “We have learned how to help them navigate through that. We have had three of these types of projects in the last three to four years.”

Training center
Last year also saw the beginning of development of the Commonwealth Centre for Advanced Training at the Commonwealth Crossing Business Centre industrial park. The training center will provide potential prospects a site for specialized workforce training. Construction on the 25,889-square-foot, $13 million project is expected to take 18 months to complete.

“We are competing in a big world,” Heath says, noting the four states that he competes with the most for projects are Tennessee, Georgia and North and South Carolina.

“Our incentive packages are not competing with other states. Our total tax burden on industry is not good,” Heath says. “Virginia is getting rated poorly in the national marketplace. These are things that need to be addressed going forward.”

Southern Virginia’s recent deals

Company Location #Jobs
Unison1 Pittsylvania County 35
Grand Springs Halifax County 28
Blue Ridge Fiberboard Danville 26
Bassett Furniture Henry County 22
Intertape Polymer Group 1 Pittsylvania County 15
Eastman Chemical Co. Henry County 15
Applied Felts 1 Henry County 15
1 Company has headquarters in another country.                  Source: Virginia Economic Development Partnership, 2017