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Acoustical Sheetmetal Co. to invest $46M in Virginia Beach expansion

Virginia Beach-based will invest $45.8 million to expand its operations, with plans to add 350 jobs, announced Friday.

Acoustical Sheetmetal is a manufacturer of steel and aluminum enclosures for the power generation industry, providing on-site power integration for large-scale data centers. It plans to build an additional 250,000-square-foot building and add significant machinery on 21.1 acres of land it purchased at the Innovation Park from the City of Virginia Beach. About 17.5 acres of the land are developable.

“This next phase of our will allow us to continue to execute our strategy as the leader in power generation integration, again doubling our capacity in a very dynamic and fast-paced environment supporting the data center industry,” ASC CEO Margaret Shaia said in a statement.

Once construction is complete, ASC will have more than 550,000 square feet of production space. The company did not immediately return requests for comment.

Youngkin says this marks the third expansion by Acoustical Sheetmetal Co. in six years, which he described as “a testament to the strength of our local workforce and the pro-business environment we’ve worked hard to create.”

Acoustical Sheetmetal announced plans in 2020 to establish its headquarters and a second facility in the city’s Innovation Park. The first expansion included a 100,000-square-foot facility and the second expansion, which was completed in 2024, added an additional 135,000 square feet.

“Three hundred and fifty new jobs mean hundreds of new opportunities for Virginia families, and I’m proud to support the continued growth of the manufacturing industry in the Commonwealth,” Youngkin said in a statement. “Great homegrown companies like ASC continue to see Virginia as the place to grow and build their future.”

The Virginia Partnership worked with Virginia Beach and the on the project and Youngkin approved a $1.75 million grant from the city with this project. The Virginia Beach government provided a $921,869 land purchase discount, and the Virginia Beach Department of Economic Development provided a local cash grant of $828,130.

Founded in 1994 in Virginia Beach, ASC offers sound-attenuated and weather-protective packaging for on-site power generation equipment. It currently has two campuses in Virginia Beach — its 5.5-acre original campus on Production Road, featuring 75,000 square feet of manufacturing space and an 11,000-square-foot storage facility, and a 23-acre campus on Hudome Way, which includes 235,000 square feet of manufacturing space and a 5-acre storage facility.

The company employs more than 500 people, with employees including certified welders, licensed electricians and machinists, as well as an engineering design team.

Israel-Iran conflict fuels oil surge, economic fears grow

SUMMARY:

 

Israel’s attack on Iran Friday has catapulted their long-running conflict into what could become a wider, more dangerous regional war and potentially drive prices higher for both businesses and households.

Oil and gold surged and the dollar rose as markets retreated, signaling a flight to investments perceived as more safe.

After years of sky-high inflation in the aftermath of the COVID-19 pandemic, Americans have become increasingly leery about the economy this year due to ‘s sweeping tariffs, though the impact so far has been muted.

The latest escalation in the Middle East has the potential to cause widespread price increases that could set consumers back again.

Here’s a look at some of the sectors that could face an outsized impact from the escalation in the Middle East, and what that might mean for consumers.

Energy

surged Friday to their biggest gain since the onset of Russia’s war on Ukraine began more than three years ago. If or when Israel’s attack on Iran could impact gas prices, which have been in decline for nearly a year, isn’t entirely clear.

Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could significantly slow or stop the flow of Iran’s oil to its customers. Energy prices have been held in check this year because production has remained relatively high, and demand for it low. A widening conflict could tilt that balance.

“The loss of this export supply would wipe out the surplus that was expected in the fourth quarter of this year,” analysts for ING wrote in a note to clients.

In the past, conflicts in the Middle East have sent energy price soaring for extended periods but in recent years, because of the huge supply of oil, those spikes have been more fleeting.

Earlier this month, the countries in the OPEC+ alliance decided to increase production again, which often pushes crude prices down. They hit a four-year low in early May. That usually means cheaper gas, of which there is currently a surplus.

According to the auto club organization AAA, the average price for a gallon of gas in the U.S. on Friday was $3.13 per gallon, down from $3.46 a year ago.

Shipping

Shipping costs were already on the rise for a number of reasons. Cargo is being rerouted around the Red Sea where the U.S. began conducting air strikes on Yemen’s Houthis, the Iran-backed rebels who were attacking ships on what is a vital global trade route. And this year, companies have scrambled to import as many goods as possible before Trump’s tariffs kicked in, pushing demand, and prices to ship, higher.

The Baltic Dry Index, a key indicator of dry bulk shipping demand that tacks the movement of coal, iron ore, grains and more, is hitting eight-month highs.

The window for companies seeking to ship goods before the year’s end is coming to a close this month. A widening conflict in the Middle East would only drive prices higher as those companies jostle to get goods from overseas as geopolitical tensions in the region rise.

Shares of ocean shipping companies like Teekay and Frontline rose sharply following Israel’s attack.

Consumer goods

Higher energy prices can lead to elevated costs for a wide range of products because just about everything is made and transported using oil or natural gas.

Government data this week revealed that Trump’s tariffs have yet to cause a broader rise in inflation. Still, many companies have announced price hikes due to the tariffs. Walmart has already raised prices on some goods and said it will do so again as the back-to-school shopping season begins. J.M. Smucker, largely due to the impact of tariffs on coffee from Brazil and Vietnam, said it’s also raised prices and will do so again. Combined with the higher shipping and production costs that could result from the escalated Middle East conflict, prices will almost certainly rise further, analysts say.

“Inventory buffers may have allowed firms to put off decisions about raising prices, but that won’t be the case for much longer,” the ING analysts said. “We expect to see bigger spikes in the month-on-month inflation figures through the summer,” they added, noting that The Fed’s recent Beige Book cited widespread reports of aggressive price hikes already in the pipeline.

Federal Reserve

Federal Reserve officials meet next week to make their next interest rate decision, and the vast majority of economists still think the U.S. central bank will leave its benchmark rate where it is for the fourth straight time. The Fed has been juggling its dual mandate of supporting the labor market while keeping inflation at bay. That goal may become increasingly difficult to achieve if prices for gas, food and other essential rise due to the Israel-Iran conflict.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

Shares of tech companies and retailers were among the biggest decliners Friday.

Travel

Perhaps contrary to conventional wisdom, one cascading effect of the heightened Middle East tension may be that the cost of traveling, even if fuel prices rise, will come down.

Airlines have been downgrading their travel forecasts as businesses and families tighten their travel budgets in anticipation of tariff-related price hikes. Several major air disasters also have made some wary of getting on a plane.

Most major U.S. airlines have said they plan to reduce their scheduled domestic flights this summer, citing an ebb in economy passengers booking leisure trips. Last month, Bank of America reported that its credit card customers were spending less on flights and lodging.

And because of the Trump tariff wars, the dollar has fallen almost 10% this year when measured against a basket of foreign currencies, making it more expensive for Americans to travel abroad due to unfavorable exchange rates.

On Friday, shares of major U.S. airlines were in sharp retreat.

Oil prices jump 7% as Israel-Iran conflict spooks markets

SUMMARY:

  • rose 7% after Israeli strike on Iran
  • S&P 500 fell 1.2%, Dow dropped 843 points
  • Nasdaq composite declined 1.3% on Friday
  • Fears grow over global oil supply disruption

 

NEW YORK (AP) — Oil prices are leaping, and stocks are falling Friday on worries that escalating violence following Israel’s attack on Iranian nuclear and targets could damage the flow of crude around the world, along with the global economy.

The S&P 500 dropped 1.2% and was on track to wipe out its modest gains from earlier in the week. The Dow Jones Industrial Average was down 843 points, or 2%, as of 2:45 p.m. Eastern time, and the Nasdaq composite was 1.3% lower.

The strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude jumped 7.3% to $72.98. Brent crude, the international standard, rose 7% to $74.23 for a barrel.

Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran’s oil to its customers and keep the price of crude and gasoline higher for everyone worldwide.

Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran’s coast. Much of the world’s oil moves through it on ships.

But past attacks involving Iran and Israel have seen prices for oil spike initially, only to fall later “once it became clear that the situation was not escalating and there was no impact on oil supply,” according to Richard Joswick, head of near-term oil at S&P Global Commodity Insights.

That has Wall Street waiting to see what will come next. U.S. stock prices dropped to their lowest points for the day as Iran’s state-run news site said Iran launched ballistic missiles towards Israel.

For now, the price of oil has jumped, but it’s still lower than it was earlier this year. “This is an economic shock that nobody really needs, but it is one that seems more like a shock to sentiment than to the fundamentals of the economy,” said Brian Jacobsen, chief economist at Annex Wealth Management.

That in turn had U.S. stocks falling to give back some of their big recent gains that had brought them to the brink of their record.

Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel fell to some of the sharpest losses. Cruise operator Carnival dropped 5%. United Airlines sank 4.5%, and Norwegian Cruise Line Holdings fell 5%.

They helped overshadow gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran.

Exxon Mobil rose 2.1%, and ConocoPhillips gained 1.9% because the leaping price of crude portends bigger profits for them.

Contractors that make weapons and equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose at least 3%.

The price of gold climbed as investors searched for safer places to park their cash. An ounce of gold added 1.5%.

Often, prices for Treasury bonds will likewise rise when investors are feeling nervous. That’s because U.S. government bonds have historically been seen as some of the safest options around. But Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive higher.

Inflation has remained relatively tame recently, and it’s near the Federal Reserve’s target of 2%, but worries are high that it could be set to accelerate because of ‘s .

That sent the yield on the 10-year Treasury up to 4.42% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.

A report on Friday suggesting an unexpectedly large increase in sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers’ expectations for coming inflation eased.

On Wall Street, Adobe fell 5.2% even though the company behind Photoshop reported a stronger profit for the latest quarter than Wall Street expected. Analysts called it a solid performance but said investors may have been looking for bigger increases to some of its revenue forecasts for the upcoming year.

Shares of Brazilian meat giant JBS fell 4.4% as they made their debut on the New York Stock Exchange. The company wants to increase access to its shares among global investors, despite criticism from environmental groups, U.S. lawmakers and others who noted JBS’ record of corruption, monopolistic behavior and environmental destruction.

In stock markets abroad, indexes slumped across Europe and Asia. France’s CAC 40 lost 1%, and Germany’s DAX dropped 1.1% for two of the larger losses.

Consumer sentiment rises in June after six-month slump

SUMMARY:

  • index rose 16% in June to 60.5
  • First increase after six straight months of decline
  • remains subdued, supporting optimism
  • Trade truce with China credited for improving outlook

 

WASHINGTON (AP) — Consumer sentiment increased in June for the first time in six months, the latest sign that Americans’ views of the economy have improved as inflation has stayed tame and the has reached a truce in its trade fight with China.

The preliminary reading of the ‘s closely watched consumer sentiment index, released Friday, jumped 16% from 52.2 to 60.5. The large increase followed steady drops that left the preliminary number last month at the second-lowest level in the nearly 75-year history of the survey. Consumer sentiment is still down 20% compared with December 2024.

“Consumers appear to have settled somewhat from the shock of the extremely high announced in April and the policy volatility seen in the weeks that followed,” Joanne Hsu, director of the survey, said in a written statement. “However, consumers still perceive wide-ranging downside risks to the economy.”

Americans have largely taken a darker view of the economy’s future after unleashed a wide-ranging , imposing steep tariffs on China, the European Union, and dozens of other countries. Yet in April Trump postponed a set of sweeping tariffs on about 60 nations and last month reached a temporary truce with China, after both sides had sharply ratcheted up tariffs on each other.

The Conference Board’s consumer confidence index, released in late May, also increased after five straight declines that were linked to anxiety over tariffs.

U.S. duties remain elevated compared with historical levels, but so far they have not worsened overall inflation. Prices rose just 2.4% in May compared with a year ago, up slightly from 2.3% in April. Still, most economists expect tariffs to hit harder in the coming months.

Consumer confidence is sharply divided by political outlook, with Republicans feeling much better about the economy under Trump than . Democratic sentiment about the economy was much higher under Biden, while views were low. This month, however, sentiment did improve among supporters of both parties and independents.

Consumers’ inflation expectations — basically a measure of how worried people are about future inflation — dropped this month, which will be welcomed by the inflation-fighters at the Federal Reserve. Inflation expectations can become self-fulfilling, because if people worry price increases will get worse, they can take steps — such as demanding higher pay — that push prices even higher.

The Fed meets next week, and is expected to keep its key short-term interest rate unchanged at about 4.3%.

Virginia casinos report $85.4M in May revenue

SUMMARY:

  • Virginia earned $85.39 million in May, up $6.63M from April
  • Caesars Virginia in led with $34.06 million in revenue
  • Localities received 6% of May’s revenues in taxes

May revenues from Virginia’s three casinos totaled $85.39 million, up $6.63 million from April, according to a June 13 report from the .

Last month, Hard Rock casino reported about $23.027 million in adjusted gaming revenues (wagers minus winnings), of which about $18.74 million came from its 1,423 slots and about $4.28 million came from its 73 table games. (The Bristol casino’s temporary facility opened in July 2022, making it the first operating casino in Virginia. The permanent opened in November 2024.)

Rivers Casino Portsmouth, which opened as Virginia’s first permanent casino in January 2023, generated about $20 million in May from its 1419 slots and about $8.3 million from its 84 table games, for a total AGR of about $28.31 million.

The state’s newest permanent casino, the Caesars Virginia resort in Danville, reported almost $34.06 million in AGR, with about $24.76 million coming from its 1,477 slots and roughly $9.29 million coming from the casino’s 100 table games. The $800 million Caesars Virginia opened in December 2024, replacing a temporary casino that opened in May 2023.

Virginia law assesses a graduated tax on a casino’s adjusted gaming revenue. For the month of May, taxes from casino AGRs totaled nearly $15.37 million.

Under Virginia law, 6% of a casino operator’s AGR goes to its host locality until the operator passes $200 million in AGR for the year, at which point the host locality’s tax rate rises to 7%. If an operator passes $400 million in AGR in the calendar year, that rises to 8%.

For May, Portsmouth received 6% of the Rivers Casino Portsmouth’s AGR, getting about $1.7 million. Danville received 6% of the Caesars Virginia casino’s adjusted gaming revenue, amounting to roughly $2.04 million. For the Bristol casino, 6% of its adjusted gaming revenue — about $1.38 million last month — goes to the Regional Improvement Commission, which the established to distribute Bristol casino tax funds throughout Southwest Virginia.

The Problem Treatment and Support Fund receives 0.8% of total taxes — about $122,958 last month. The Family and Children’s Trust Fund, which funds family violence prevention and treatment programs, receives 0.2% of the monthly total, which was approximately $30,739 in May.

Two more casinos are on the horizon in Virginia.

Construction began on the long-awaited $750 million Norfolk casino in February. The Pamunkey Indian Tribe remains a partner, but Boyd Gaming replaced Tennessee investor Jon Yarbrough in 2024. A temporary casino is expected to be completed by the end of the year. Developers named Ron Bailey as vice president and general manager for the forthcoming casino earlier this month.

In November 2024, more than 80% of Petersburg voters said yes to the city’s casino referendum. Baltimore-based The Cordish Cos. and developer Bruce Smith Enterprise broke ground on the much-anticipated $1.4 billion casino in March.

In May, Rivers Casino and Chicago-based Rush Street Gaming announced they are planning to break ground on a $65 million hotel in Portsmouth this summer, more than two years after the casino first opened.

Hooker restructuring targets $25M savings by FY27

SUMMARY:

  • Hooker aims to cut $25M in fixed costs by fiscal 2027
  • Phase 1 involved downsizing and other cuts for $10M in cost savings
  • Phase 2 focuses on , operational consolidation
  • Company facing headwinds like soft , weak housing market

-based is moving ahead with a multi-phase plan aimed at cutting $25 million in annual fixed costs by fiscal 2027, roughly 25% of its baseline, company executives revealed in an earnings call Thursday.

The plan comes as Hooker navigates uncertain economic conditions’ continued headwinds like soft consumer sentiment and a weak housing market.

Hooker Chief Financial Officer Earl Armstrong said the company is executing its strategy in two phases. The first, initiated last year, included facility downsizing, headcount reductions and other fixed cost cuts, resulting in $10 million in expected annual savings starting this fiscal year. It incurred between $4.1 million and $4.9 million in restructuring charges, including $3.6 million in severance expenses.

The second phase, underway now, involves logistics and operational consolidation. The company plans to close its Savannah warehouse by Oct. 31, and it opened a new facility in Vietnam last month to shorten lead times from six months to four to six weeks. Hooker expects $3.4 million in net savings from phase two in fiscal 2026, growing to $14 million annually by fiscal 2027.

CEO Jeremy Hoff noted that tariff concerns are disrupting order flow, especially among large-volume customers.

“Cadence changed pretty drastically for us with the ,” Hoff said. “It definitely affects what we call the mega customer, which is really the [Home Meridian International] customer, more so than the many customers we have that are very different on the Hooker Branded and domestic upholstery side of our business.”

HMI net sales fell 29% year-over-year, driven by the loss of a major customer and buying hesitancy tied to potential tariffs. Incoming orders and backlog also declined, but gross margin improved by 200 basis points, and operating losses narrowed to $2.8 million from $3.4 million.

Hooker Branded saw modest sales growth and improved gross margin. Domestic upholstery sales dipped 3.7% due to softer indoor demand but were offset by a 12.7% increase in outdoor furnishings sales from its Sunset West brand. That segment cut operating losses by more than half.

The company ended the quarter with $18 million in cash, up $11.7 million from year-end, and lowered inventory by $7 million. It paid off all borrowings on its revolving credit facility after the quarter ended, leaving $63 million in borrowing capacity.

“These actions are not only improving near-term liquidity but also positioning us to pursue strategic growth with a stronger, more efficient balance sheet,” Armstrong said.

Hooker declared its regular quarterly dividend following the quarter’s close, extending a 50-year streak of uninterrupted payments.

“We are focused on disciplined capital deployment that supports both shareholder returns and operational resilience,” Armstrong said. “As we move through the year, we remain committed to capital allocation decisions that enhance long-term value creation.”

Senate Democrats, AG Miyares duel over rejected university board appointees

SUMMARY:

  • Democratic-controlled state Senate committee rejected eight appointees to three universities’ boards by Republican Gov. Glenn Youngkin
  • Virginia AG Jason Miyares says because it was a committee, not the whole legislature, vote is invalid and appointees can serve
  • Democratic Senate Majority Leader Scott Surovell says rejected appointees cannot serve under state law, and defiant board members will face consequences

Updated June 13

Like Schrödinger’s cat, the eight failed appointees to three Virginia universities’ boards are simultaneously valid members or not, depending whom you ask.

Virginia , in a June 11 letter to the state’s public universities’ rectors, wrote that the eight people — including former Attorney General Kenneth Cuccinelli, whom Gov. Glenn Youngkin appointed to the ‘s Board of Visitors in March — remain members “with the rights and responsibilities conferred upon a member of a board of visitors.”

State Senate Majority Leader Scott Surovell, D-Fairfax, has the opposite view. Cuccinelli and seven appointees to the and Virginia Institute boards are no longer active members following an 8-4 Senate Committee on Privileges and Elections vote Monday to reject their appointments, he says.

Further, Senate Clerk Susan Clarke Schaar sent a letter Tuesday to Secretary of the Commonwealth Kelly Gee advising her of the committee vote — by direction of Sen. Aaron Rouse, D-, the committee’s chair — and noting that the Constitution of Virginia says, “No person appointed to any office by the Governor, whose appointment is subject to confirmation by the … shall enter upon, or continue in, office after the General Assembly shall have refused to confirm his appointment, nor shall such person be eligible for reappointment during the recess of the General Assembly to fill the vacancy caused by such refusal to confirm.”

The party line vote this week by the Democratic-led Senate committee, which has voted to confirm thousands of other board and commission appointments by the governor, came in response to what state feel has become an overly partisan scheme by Youngkin to exercise ideological power over the state’s public universities.

Charles J. Cooper, a Florida appellate attorney who represented former U.S. Attorneys General Jeff Sessions and John Ashcroft and served as a U.S. assistant attorney general under President Ronald Reagan, was among the rejected appointees to George Mason’s board, along with Caren Merrick, who served as the state’s immediate past commerce secretary under Youngkin. William Hansen, a former U.S. deputy secretary of  under President George W. Bush, and Maureen Ohlhausen, a former Federal Trade Commission chair, were also rejected by the Senate committee.

appointees John Hartsock, deputy chief of staff for U.S. Rep. Ben Cline; Stephen Reardon, an attorney with Spotts Fain; and Jose Suarez, a Florida businessman, were also rejected, mainly because of the timing of their appointments shortly after the General Assembly had adjourned from its regular session, Surovell said in an interview Thursday with Virginia Business.

He noted that the Lexington military institute’s board, including the three new members, took a controversial vote not to renew the contract of VMI’s first Black superintendent, retired Army Maj. Gen. Cedric Wins, who was hired in late 2020 on an interim basis and then offered the permanent post in 2021.

The governor’s three VMI appointments were announced in late February and days later, the vote to oust Wins took place, Surovell said, calling the timing of the appointments, which didn’t allow the legislature to take a confirmation vote without calling a special session, a “deliberate political stunt” by the governor.

Surovell added that he has heard from current and former board members who said that Youngkin has “inappropriately” tried to influence boards, which have hiring and firing power of university presidents, “in ways that no governor has done before,” including calling BOV members to tell them how to vote.

The governor’s office did not respond to questions about this allegation and other matters Thursday and referred Virginia Business to the attorney general’s letter, “which refutes the claim made by General Assembly Democrats, including Sen. Surovell in his letter, that action by a single committee of one house of the General Assembly constitutes action taken by the General Assembly as a whole,” spokesperson Peter Finocchio said in an email.

On June 9, Surovell sent a letter to the the state’s rectors, some of whom were appointed by Youngkin and others by former Gov. Ralph Northam, a Democrat, affirming that the legislature has authority over confirmation of gubernatorial appointees.

“As you are aware, Virginia’s public universities operate under a framework established by the Code of Virginia and are subject to the ultimate authority and control of the General Assembly of the Commonwealth of Virginia,” Surovell wrote. “It is important to understand that Virginia is currently and for the next six months will experience divided government. This means that governance of our universities is a shared exercise between coequal branches of government.”

Miyares, however, wrote in his letter to the rectors, who lead their universities’ boards, that Surovell made a “false statement” in his letter that “appears designed to mislead you into thinking that the General Assembly as a whole has taken action, when in fact it has not. Citing no authority for his claim, the senator goes on to offer you guidance that is legal in nature.”

U.Va. Rector Robert D. Hardie, a Northam appointee, then contacted Surovell, an attorney, seeking clarification about Cuccinelli’s status, and Surovell addressed a letter Wednesday to Hardie saying, “ is no longer eligible to serve as a member of the UVA Board of Visitors and must immediately cease all activities in that capacity.

“Contrary to [Miyares’] public comments, it is important to note that neither the Constitution of Virginia nor the Code of Virginia requires the entire legislature to vote on gubernatorial nominations,” Surovell continued in his letter to Hardie. He added that Youngkin had previously accepted rejection of other appointees, including some that were not voted on by the entire legislature, and named new appointees for confirmation.

Further, if rectors or other board members officially recognize the rejected board appointees, they “would be violating both the Constitution of Virginia and the Code of Virginia.”

In Thursday’s interview, Surovell said that there could even potentially be “criminal consequences” for board members who ignore the vote and recognize rejected nominees as full board members.

“Such conduct would constitute ‘malfeasance and incompetence’ … and would provide grounds for removal of any board member who permits such violations” by Youngkin or his successor, Surovell wrote. Only governors have the authority to remove board members, as Youngkin did earlier in the year with former U.Va. board member Bert Ellis, whom Cuccinelli was named to replace.

In addition to hearing from Hardie, Surovell said that he had heard from VMI’s board president, NewMarket Chairman and CEO Teddy Gottwald, who “said he didn’t understand why we were upset.”

On Friday, VMI provided Gottwald’s June 10 response to Surovell, in which he noted that the General Assembly rejected two earlier appointees to the board, in addition to the three this week, “with little explanation, leaving us to wonder about the reasoning. Quintin Elliott served for more than twenty years in the Virginia Air National Guard and was later named Deputy Secretary of Transportation by Governor Northam. Clifford Foster is a highly respected financial professional who has given back to VMI extensively. Both were expected to strengthen our Board Finance Committee.”

Gottwald added that he views Hartsock, Reardon and Suarez, all alumni and former service members, as “equally qualified. … I respectfully take exception to any suggestion that these five individuals somehow do not possess the judgment, character or willingness to follow good governance practices per your letter.” Also, he wrote, he is “not aware of any directive, binding or otherwise, that the Governor has given members of our BOV. I believe that any suggestion of that sort has no basis in fact.”

Specifically addressing the non-renewal of Wins’ contract, Gottwald wrote, “This tough decision has been unpopular with some, and due to the sensitive nature of this personnel matter, the BOV has not commented on it. Our decision was based on several years of performance reviews, together with an assessment of our institutional needs, and then made after thoughtful and thorough discussion. Governor Youngkin was not involved in this decision, nor am I aware of any directive or guidance from the Governor on this decision to any Board member.”

Gottwald concluded his letter to Surovell by asking him to share specifics of “any undue interference from Governor Youngkin with any of our Board members,” but does not directly address the conflicting opinions over whether the Senate committee’s board appointment vote is valid.

George Mason University’s rector, The Heritage Foundation’s Charles “Cully” Stimson, had not contacted Surovell as of earlier Thursday, but the senator said he had heard that Stimson, another Youngkin appointee, “was very defiant.”

Miyares’ office, Hardie and Stimson did not respond to requests for comment by Virginia Business Thursday, nor did Cuccinelli, although The Washington Post reported that the former state attorney general and first-term Trump official said in a statement that he looked forward to serving on U.Va.’s board “until next June if confirmed by the General Assembly, or until this coming February if not.”

Meanwhile, Youngkin is expected to make more university board of visitors appointments to take effect July 1 as former members rotate off boards.

Surovell said the General Assembly doesn’t typically sue people, but he added, “We can take into account the behavior of these boards when we return in January.”

This article has been corrected since publication; Teddy Gottwald is currently VMI’s board president, but Col. James Inman will succeed him July 1, according to VMI. 

JetZero plans to build $4.7B plant in North Carolina, aims to create 14,500 jobs

SUMMARY:

  • JetZero to build first plant in Greensboro, NC
  • Project expected to create 14,500 jobs within a decade
  • Described as North Carolina’s largest-ever job commitment
  • Incentive packages tied to the deal extend into the 2060s

GREENSBORO, N.C. (AP) — JetZero Inc. announced plans Thursday to build its first manufacturing plant for a next-generation passenger jet in central North Carolina, a project that if successful would create more than 14,500 jobs there in a decade.

The California-based startup intends to build the factory at Greensboro’s airport, investing $4.7 billion. The planned hirings from 2027 through 2036 would be the largest job commitment in North Carolina history, according to Gov. Josh Stein.

The company previously identified Greensboro as one of three finalists for the factory to build its fixed-wing — also known as all-wing or blended-wing — Z4 aircraft, which JetZero says will be 50% more fuel-efficient than traditional tube-and-wing airliners.

JetZero has said it’s already received about $300 million in investment in the Z4 project, including a U.S. Air Force grant to build and fly a demonstrator model by 2027.

United Airlines and Alaska Airlines also are project investors and have made conditional purchase agreements for their fleets, the company said. JetZero aims for the planes to go into service in the early 2030s, with a goal of completing 20 airplanes per month at full production.

Stein, on hand with JetZero executives and other officials for the formal announcement at Piedmont Triad International Airport in Greensboro, cited North Carolina’s robust aerospace industry and the first manned powered flights at Kitty Hawk by the Wright brothers in 1903.

“North Carolina is the perfect location,” Stein said. “North Carolina was first in flight. We are also the future of flight.”

The jobs would pay minimum average salaries of more than $89,000, according to the state Department of Commerce, which provided details of the project earlier Thursday to a state committee that awards economic incentives.

State and local monetary and training incentives for JetZero and the project described at the committee meeting could exceed $2.3 billion by the 2060s if investment and job-creation thresholds and other requirements are met.

A portion of state incentives awarded by the committee — more than $1 billion over 37 years — is based on a percentage of income taxes withheld from plant workers’ paychecks. The incentives also include up to $784 million from Guilford County and Greensboro and $450 million from the to help with infrastructure, officials said. The project includes a research facility for composite structures.

A commerce department official said that JetZero, headquartered in Long Beach, California, looked for over a year for a plant location, examining 25 sites in 17 states.

JetZero, currently with just 225 workers, enters a jet purchasing market dominated by industry behemoths U.S.-based Boeing and European Airbus.

“We have already shown strong commercial interest and momentum to meet the real airline demand for this aircraft,” CEO Tom O’Leary said. “So this is more than just a factory. It’s a launchpad for a new chapter of American aerospace.”

While a variant of the Z4 would have tanker and transport uses in the , JetZero has said that it would focus first on building a commercial jetliner with about 250 seats and a range of 5,000 nautical miles.

The 5-year-old company says the plane’s shape will reduce drag and the mounting of engines on the top and back of the plane will make it much quieter than traditional airliners. The Z4 would run on conventional jet fuel but could be converted to hydrogen fuel, according to JetZero.

JetZero says Z4 travelers will board through larger doors and into shorter but wider cabins, and aisles will be less congested as bathrooms will be far away from galleys where meals are prepared.

“It’s going to deliver a better passenger experience than you’ve ever had before on any other plane,” O’Leary said.

The state is already home to more than 400 aerospace companies. And the Piedmont Triad airport has emerged as an industry hot spot, with Honda Aircraft placing its headquarters there and Boom Supersonic building its first full-scale manufacturing plant for next-generation supersonic passenger jets.

The central location and easy access to interstates also lured Toyota to build an electric battery plant in adjoining Randolph County.

North Carolina’s previous largest project, measured by employment, was revealed in 2022, when Vietnamese automaker VinFast announced plans to build an electric vehicle manufacturing plant in Chatham County, promising 7,500 jobs.

Army official says Chinese mineral shortage could impact military equipment

SUMMARY:

• Rare minerals, magnets and metals supplied by China are in shortage, affecting manufacturers of equipment
• In response, the U.S. may need to issue military equipment from a stockpile maintained for emergencies, an Army official says
• President Trump and Chinese officials have agreed to “framework” for deal expected to speed up mineral exports from China, but critics say deal may not last

A growing shortage of rare minerals, magnets and metals from China needed for manufacturing military warfighting equipment could lead to the pulling military equipment from a stockpile maintained for emergencies, an Army lieutenant general said Wednesday at a Richmond symposium hosted by the National Defense Industrial Association.

A panel of senior military leaders who specialize in and supplying warfighting materials to U.S. military branches said cuts in defense staffing and spending are causing them to reassess priorities, although they do not expect a decrease in demand for equipment produced by private sector contractors, including those in Virginia.

Speaking at the NDIA’s annual DLA Supply Chain Alliance Symposium & Exhibition, a multiday event held this year in downtown Richmond, leaders from the , the U.S. Navy, the U.S. Army, Air Force and the Defense Contract Management Agency addressed supply chain challenges as well as the changing nature of global warfare.

One particular area of concern is rare earth minerals and magnets needed for drones, vehicles and tech equipment, because China has a virtual monopoly on the export market and mineral refining capabilities, and supplies have been delayed recently by ‘s with Beijing. Although the export delay is most affecting U.S. automakers, it also impacts the military and its commercial equipment manufacturers.

The Defense Logistics Agency, headquartered at in Fairfax County, manages a strategic stockpile of military equipment, said Army Lt. Gen. Mark Simerly, the DLA’s director, with a certain level of inventory maintained in case of emergency. “We’ve acquired this capability over time. We maintain it, manage it, make sure that it’s in a usable state, but otherwise we don’t issue [equipment] out,” he said.

Now, however, “we might issue it to our customers in the industrial base or to our commercial manufacturers, as well, because of the shortfalls,” Simerly said. “We have to issue those items rather than just hold those items, because we’re approaching some periods of risk and manufacturing capability of critical commodities that we just can’t obtain, in part because we don’t either have the source of supply or, more importantly, we don’t have the refining capability in the U.S.”

The shortage may not reach that point, though. After two days of talks in London, Trump and Chinese officials announced they have agreed to a “framework” to speed up China’s exports of seven critical rare earths and associated products that automakers and other manufacturers rely on.

Trump, in exchange, agreed to back off on blocking Chinese university students’ U.S. visas, the Associated Press reported.

However, Veronique de Rugy, senior research fellow at ‘s Mercatus Center, dismissed the London truce as “a handshake deal … It can change at any time.”

Simerly added that the shortage of rare earth minerals and magnets is “really kind of an enduring challenge that may be made more acute by recent events, but it’s not created by these recent events alone,” referring to Trump’s trade war with China. He also noted that the DLA has begun mining discarded materials, “things that are in the disposal process,” and providing them to manufacturers.

“So, for instance, any old sites that are being demilitarized, when they get turned into DLA from the services, we’re able to … capture germanium as an example, or titanium,” and use it for additive manufacturing, Simerly said.

Asked about Virginia’s shipbuilders and and the impact of federal spending cuts and resulting private sector layoffs and furloughs, Simerly said, “That’s mostly an internal discussion. We are still going to have demands upon industry. We’re still going to have demands upon our partners in advisory roles, many of which operate in this state. So we expect the demands to meet future requirements for readiness … to continue to grow.”

He added that he doesn’t expect DLA’s demands on private-sector defense businesses in Virginia to change a great deal despite federal spending cuts, and White House layoffs of federal civilian workers has not hit his agency particularly hard.

“We’re spread out in 48 different states and 22 different countries,” Simerly said, and many of the people in eliminated jobs have taken voluntary retirements.

In February, the Pentagon proposed cutting $50 billion out of its annual budget over the next five years, or about 8% of its $800 billion budget, but new budget documents indicate that the DOD intends to request about $205 billion in funding for fiscal year 2026, about 18% more than in fiscal 2025, Breaking Defense reported this week.

The Associated Press contributed to this report.

A look at Boeing’s recent troubles after Air India crash

SUMMARY:

  • Air India crashed after takeoff in Ahmedabad, killing passengers
  • First fatal crash involving the Dreamliner since its 2009 launch
  • Boeing faces scrutiny after past crashes and door plug failure
  • Financial losses total over $35B since 2019 amid strikes and delivery delays

The crash of a Boeing 787 passenger jet in India minutes after takeoff on Thursday is putting the spotlight back on a beleaguered manufacturer though it was not immediately clear why the plane crashed.

The Air India 787 went down in the northwestern city of Ahmedabad with more than 240 people aboard shortly after takeoff, authorities said. It was the first fatal crash since the plane, also known as the Dreamliner, went into service in 2009, according to the Aviation Safety Network database. Boeing shares fell more than 4% in afternoon trading.

The 787 was the first airliner to make extensive use of lithium ion batteries, which are lighter, recharge faster and can hold more energy than other types of batteries. In 2013 the 787 fleet was temporarily grounded because of overheating of its lithium-ion batteries, which in some cases sparked fires.

737 Max

The Max version of Boeing’s best-selling 737 airplane has been the source of persistent troubles for Boeing after two of the jets crashed. The crashes, one in Indonesia in 2018 and another in Ethiopia in 2019, killed 346.

The problem stemmed from a sensor providing faulty readings that pushed the nose down, leaving pilots unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned the system.

Last month, the Justice Department reached a deal to allow Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes.

Worries about the plane flared up again after a door plug blew off a Max operated by Alaska Airlines, leading regulators to cap Boeing’s production at 38 jets per month.

Financial woes

Boeing posted a loss of $11.8 billion in 2024, bringing its total losses since 2019 to more than $35 billion.

The company’s financial problems were compounded by a strike by machinists who assemble the airplanes plane at its factories in Renton and Everett, Washington, which halted production at those facilities and hampered Boeing’s delivery capability.

For the first three months of 2025, Boeing reported a narrower loss of $31 million compared with the previous year. CEO Kelly Ortberg said Boeing made progress on stabilizing operations during the quarter.

Orders and deliveries

The stepped-up government scrutiny and the workers’ strike resulted in Boeing’s aircraft deliveries sliding last year.

Boeing said it supplied 348 jetliners in 2024, which was a third fewer than the 528 that it reported for the previous year.

The company delivered less than half the number of commercial aircraft to customers than its main rival Airbus, which reported delivering 766 commercial jets in 2023.

Still, Boeing’s troubles haven’t turned off airline customers from buying its jets. Last month the company secured big orders from two Middle Eastern customers. The deals included a $96 billion order for 787 and 777X jets from Qatar, which it said was the biggest order for 787s and wide body jets in the company’s.