New River and Roanoke Valleys see strong economic growth

Their population has remained relatively steady, but the New River Valley and Roanoke Valley have seen a significant economic uptick, a statewide study determined earlier this year.

According to Old Dominion University’s 2024 State of the Commonwealth report, the counties of Floyd, Giles, Montgomery and Pulaski marked a rise in real gross domestic product (GDP) of 3.7% in 2023, the state’s second highest increase. Charlottesville, with 4.2%, came in first, and the City of Roanoke and Roanoke County saw a rise of 2.9%.

The Blacksburg-Christiansburg-Radford metro region has recorded dramatic ups and downs in its GDP since 2019, with a fall of 2.5% in 2020 during the start of the COVID-19 pandemic, an 8.7% bounce in 2021, and a 4% increase in 2022.

This amounts to a 13.1% increase for the region’s GDP over the past five years, mirroring the state’s 13.2% rise, according to the report produced by ODU’s Dragas Center for Economic Analysis and Policy.

According to the University of Virginia’s Weldon Cooper Center for Public Service demographics report released in January, more than 3,000 people moved to the region — including Floyd, Giles, Montgomery, Pulaski and Roanoke counties and the City of Roanoke — between April 2020 and July 2024. Elsewhere across the state, people left Fairfax County and Virginia Beach by the thousands, while Chesterfield, Spotsylvania and Stafford counties gained thousands of new residents.

So, what does all this mean for the Roanoke and New River valleys in 2025, as manufacturers and other companies confront tariffs that are likely to raise the cost of doing business and cut into profits?

“It feels a little murky now, but because we have a diverse set of industries, we can stand the shocks that come our way,” says Katie Boswell, executive director of Onward New River Valley, the region’s economic development organization. “We continue to grow the base with a diverse range of businesses that span industries, such as advanced manufacturing, information technology, food processing and uncrewed systems.”

One valuable partner, according to Boswell, is the Additive Manufacturing and Advanced Materials (AM2) Tech Hub, a Radford-based consortium of 50 private and public partners that promotes additive manufacturing, aka 3D printing. It was launched in 2023 with a $500,000 federal Tech Hubs Strategy Development Grant.

Hub members identify industry and supply chain gaps, and direct assets from western and Southern Virginia to fill them. Meanwhile, students get to visit some of the companies, like Meld Manufacturing, a Christiansburg company that makes 3D large-scale printers. “We want to let them see how innovative these jobs are right here in our backyard,” Boswell says.

In this effort to modernize and diversify its industries, the NRV has made strides in improving broadband access, enhancing transportation networks and providing incentives for business development, she adds. Still, there are some shortcomings in the valley, Boswell says. Housing is significantly scarce, which the Dragas report also notes.

“If Virginia is to grow in the future, it must rethink its policies towards housing,” the report says. “We need a ground-up approach to housing (no pun intended).”

But just like with other issues, the NRV is engaged in addressing its housing shortage. The New River Valley Regional Commission, an organization of 13 local governments and three higher education institutions, is providing more affordable housing to the region through a $2 million grant from not-for-profit Virginia Housing. The grant sets up a regional housing trust fund and is funding at least 20 new affordable housing units.
Now, Boswell says, the next big effort will be to design “a strategic roadmap” that ensures that the valley’s collaboration-first model works “on almost every initiative.”

Close connections

NRV’s economic growth is “absolutely” connected to growth in Roanoke County and the City of Roanoke, says John Hull, Roanoke Regional Partnership executive director.

In addition to its GDP increase of 2.9%, Roanoke’s civilian labor force grew by 2.8% between 2020 and 2024.
“The community relationship is substantial between Roanoke and NRV,” Hull says. “There’s a good concentration of education. Virginia Tech ties the region together in direct and substantive ways.”

Manufacturing is a strong growth engine for the entire region, with advanced manufacturing technologies generating higher-skilled, higher-wage jobs, he adds. “The working environment is cleaner than people may remember from a bygone era.”

One manufacturing giant located in the area can trace its roots back to 1869 with the founding of the Westinghouse Air Brake Co. Now known as Wabtec Graham White, it is a global provider of equipment, systems, digital solutions and services for the freight and transit rail industries, as well as mining, marine and industrial markets.

The company, which currently has more than 200 employees in Salem, announced in 2023 it would invest $2.7 million to expand its existing Graham White facility.

Another manufacturing company with a long-time presence in the NRV is Massachusetts-based Hollingsworth & Vose, which has been in Floyd County since 1976. The global manufacturer of papers used in filtration and energy applications announced in 2023 a $40.2 million expansion of its operation. It added 28,000 square feet to its facility on Christiansburg Pike Northeast.

Nanci Hardwick, CEO of Meld Manufacturing in Christiansburg, sees NRV as a hot spot for advances in additive manufacturing, more commonly known as 3D printing. Her company uses 3D printers to produce metal objects. Rather than melting metal, Meld’s process builds products layer by layer, creating stronger products in the end. Among her customers are companies in the defense, aviation, space and semiconductor industries.

Many U.S. companies have additive manufacturing facilities, Hardwick says, “but I believe few [additive] technologies are invented here. Meld technology was invented and commercialized in Virginia.”

This homegrown quality also helps her business as tariffs affect imported metals and raw materials. “It makes more sense to use less of it” by relying on products acquired from a domestic producer, Hardwick says. Founded in 2018, Meld has about 50 employees and a spinoff company, Meld PrintWorks, which produces made-to-order parts for customers.

The New River Valley and Roanoke also benefit from their higher education institutions, including Virginia Tech, Radford University and Roanoke College. Tech’s student population keeps growing, and in October 2024, it was above 38,000 students, as well as 3,400 faculty and staff members. Radford had more than 7,600 students enrolled last fall, marking its first year-over-year growth since before the pandemic.

Both schools are heavily involved in their communities, as well as connecting businesses to students who can fill future jobs. At Virginia Tech, the Center for Advancing Partnerships is a hub for industries seeking employees and for faculty and students seeking private sector partners to bring research projects to market. Radford, meanwhile, works with local companies through its economic development and engagement department.

Although Meld tends to recruit nationwide for its more senior-level positions, “we take advantage of our relationship with neighboring community colleges and universities” for recruitment and researchbpartnerships, Hardwick says. Meld employees “span a wide spectrum. We have Ph.D.s. We have machine operators and assembly technicians.”

Research support and workforce development are especially important for companies focused on new technologies, Hardwick says, because of challenges in lead time and innovation cycles. “If you’re designing new bulkheads in aircraft, it could take one year or two years to get a prototype.”
The health care industry also continues to contribute to growth in the region, Hull says. “Medical and biotech research is burgeoning, bringing new economic activity.”

In February, GO Virginia allocated $14.3 million to support Project VITAL: Virginia Innovations and Technology Advancements in Life Sciences, an initiative that involves the Roanoke Blacksburg Innovation Alliance, Virginia Tech and Carilion Clinic in establishing more research in medical devices, cancer therapies and neurotechnology in the NRV. This dovetails with similar initiatives in the Petersburg area and Charlottesville. According to Virginia Tech, Project VITAL expects to produce more than 1,300 jobs over the next five years.

In addition to biotech and medical research, Hull says that improvements to the Roanoke Blacksburg Regional Airport have helped bring in more travelers and increase local spending. Last year, the airport saw more than 756,000 passengers, hitting an all-time record.
All of this economic growth contributes to new opportunities and higher incomes, Hull says. “It come together to create a healthier, happier, more vibrant region.”

Hardwick, who started unmanned systems company Aeroprobe in 2007 in Montgomery County, calls herself “an advocate for this part of Virginia. The quality of life is definitely one of the reasons a company like mine can be successful. There’s a low cost of living, therefore a low cost of business.”
Plus, she says, “the average commute is maybe 15 minutes. It’s beautiful and people get to work with cutting-edge technology. It is an easy place to convince people they would like to live.”

Roanoke/New River valleys at a glance