Hampton Roads leverages regional economic assets

Hampton Roads has launched a new economic development strategy to become a global leader in areas where it has a clear competitive edge.

The Hampton Roads Playbook, announced in October 2025, focuses on four sectors — defense, energy, aerospace and logistics, aka DEAL — and outlines eight initiatives to expand workforce capacity, strengthen infrastructure and attract long-term investment across the region’s 17 localities.

“We identified who we are and what we do exceptionally well, then aligned our strategies around those strengths,” says Hampton Roads Alliance President and CEO Doug Smith.

Hampton Roads is home to 18 military installations and the Port of Virginia, accomplishes about a quarter of all U.S. shipbuilding and has offshore wind development and major research and aerospace facilities. Having a regional marketing strategy to leverage these resources is “an incredible opportunity for us as a region,” says Amanda Jarratt, Virginia Beach‘s deputy city manager for development.

“For so long we haven’t had that one vision, one road map, if you will, of where we want to go and who we want to be as a region. The alliance has certainly stepped in to fill that role with thoughtful, data-driven approach.”

The regional strategy is complemented by targeted efforts, such as the new Defense Technology Accelerator, an 11-week program led by 757 Collab in partnership with NavalX Mid-Atlantic Tech Bridge, designed to help early-stage startups break into the Department of Defense ecosystem.

To create the playbook, the alliance worked with the Hampton Roads Workforce Council, Hampton Roads Planning District Commission, colleges, universities and chambers of commerce across the region.

“At the end of the day, we will want to help all kinds of companies come here,” Smith says. “We’ll have all kinds of companies that are here grow, but it’s those sectors of defense, energy, aerospace and logistics where we offer unique opportunities.”
Hampton Roads’ 10 biggest economic development announcements in 2025 totaled more than $1.5 billion in investments and 1,434 jobs. Most of these projects were in DEAL sectors.

Chesapeake and Peninsula

LS Cable & System’s announcement in December 2025 of its plans to build a $689 million copper and advanced materials manufacturing campus in Chesapeake, creating 430 jobs, is one of the region’s biggest ever economic development announcements, along with the company’s high-voltage submarine power cable manufacturing facility now under construction nearby.

The campus will supply materials to LS GreenLink’s $681 million-plus plant and other LS operations throughout the United States.

“We know that this latest project is going to raise the profile of our city, of our region [and] of our state within these industries, and we certainly plan to capitalize on it and take advantage of it and reach out to companies both domestic and abroad that can provide a level of support to the industries that are being developed here,” says Chesapeake Director of Economic Development Steven C. Wright.

Also, KCG Engineering Group announced in October 2025 that it’s investing $185,000 to consolidate its Hampton Roads operations at a new facility at 1305 Executive Blvd. The move was made Jan. 1 and is estimated to create 60 jobs. The company provides IT, cybersecurity and systems engineering consulting services to all branches of the U.S. military.

On the Virginia Peninsula, recent investments highlight the range of industries driving growth, from defense manufacturing to power systems supporting data center development.

In Hampton, Huntington Ingalls Industries is investing $28 million to gradually transform a 150,000-square-foot assembly building into an aircraft carrier and submarine manufacturing plant for its Newport News Shipbuilding division. It will house 3D-printing technology and about 300 employees, most of whom will be existing NNS workers transferring to new jobs.

Meanwhile, Irish data center power provider CEL Critical Power announced in November 2025 that it has opened its first manufacturing facility in the United States in James City County, a 400,000-square-foot building where it has invested $5.225 million. The company anticipated creating 250 jobs this year and double that by 2030.

Norfolk

The long-awaited Interim Gaming Hall in Norfolk opened last November. The temporary tent-like structure, set near the Elizabeth River, opened five years after city voters approved a casino in 2020 and is a placeholder for the $750 million Norfolk casino and resort, set to open in November 2027.

The Interim features 132 slot machines, a food truck, and a vending machine for alcoholic drinks. Many of its 85 employees will likely shift to the permanent casino complex when it opens.

The casino could be a potential draw for other companies looking to locate or expand in the region, especially as the city is considering turning the area into an entertainment district, says Sean M. Washington, Norfolk’s director of economic development.

Norfolk intends to invest its share of the tax revenue generated by the gaming hall, which earned more than $1.4 million in its first month of operation, and the eventual casino complex, in its schools, Washington says. Owners Boyd Gaming and the Pamunkey Indian Tribe are also making charitable donations to the community, he notes.

Also significant is TST Fabrication and Machine’s $3 million expansion of its headquarters on West 27th Street, expected to create 56 jobs, announced last March. As of December 2025, 15 employees had been hired, and work had begun on the expansion, officials said.

The company specializes in precision machine shop services, custom sheet metal fabrication, laser cutting, welding and painting for defense, maritime, aerospace and commercial partners.

In August 2025, Land ‘N’ Sea Distributing, a wholesale-only distributor of marine and RV parts and accessories, said it would invest $1.1 million in a new 120,000-square-foot facility on East Princess Anne Road, about double the size of its previous plant. The company anticipates creating 29 jobs.

Virginia Beach

Norfolk and Chesapeake weren’t the only cities to see significant economic development activity in 2025. In Virginia Beach, several companies announced investments tied to manufacturing, defense and energy-related technologies.

New Hampshire-based night goggles manufacturer Vidarr announced in March 2025 that it will invest $2.69 million to open a 16,410-square-foot manufacturing facility on Lishelle Place, creating 40 jobs. As of January, Vidarr has moved into the building, which it is leasing, and renovations are expected to be completed soon, officials say. The company manufactures and assembles a range of advanced defense technologies, including night vision goggles, thermal optics and autonomous systems.

Last June, Acoustical Sheetmetal Co. announced its third expansion in recent years, creating an expected 350 jobs and investing $65 million in a 250,000-square-foot fabrication and finishing plant in Virginia Beach’s Innovation Park. The project is expected to be finished in early 2027.

ASC manufactures sound-reducing, weather-protective enclosures for on-site power generation equipment for customers like data centers, hospitals and wastewater treatment plants. The expansion will make it one of the country’s largest enclosure manufacturers.

Local veteran-owned maritime firm Anchor Innovation announced in October 2025 that it will invest $213,000 to expand its headquarters in the Lynnhaven area, adding an expected 86 jobs. The company provides marine repair and retrofitting services for the U.S. Navy and recreational customers.