VIRGINIA: AMERICA’STOP STATE FOR
BUSINESS
Amazon HQ2 Arlington VAMay, 2022

WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
State Capitol
Richmond, Virginia
2

VEDP ‘s Richmond Location
3

A Top Statefor Business
Virginia has been
consistently ranked as atop state nationally to dobusiness, with friendly tax
and regulatory policies

4WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
Virginia’sInternational
Gateway
Norfolk, VA
5

Virginia Overview

Our people
8.5M people – 12th largest state
6.7% population growth in past 10 years vs. 6.3%
nationwide

30% non-white vs. 24% nationwide
45% hold an associate degree or higher (7th nationally)

Our economy$533M GDP – 13th largest in the U.S.

4.4M workers
6.1% unemployment – 13th lowest in U.S.
$72K median household income vs. $60K nationwide

Our life

4 distinct, mild seasonsMore than 3,300 miles of shoreline and 1,000+ mountain
trails6

VIRGINIA’S 1,500 MILES OF INTERSTATES, EXPRESSWAYS, AND
FREEWAYS OFFER EXCELLENT CONNECTIVITY TO THE U.S.

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VIRGINIA OFFERS AN OPTIMAL LOCATION TO SERVE EAST COAST
MARKETS – OR AS A SINGLE GATEWAY TO THE U.S.
Access to Markets
Virginia’s central location
provides the best East Coastaccess point to major U.S.
population centers andconcentrations of consumers
with disposable income.

$27 Billion
Committed for transportation
project over the next six years

2,000+ mi.
of fiber, ensuring widespread
access to broadband tech firms

8

VIRGINIA IS RAPIDLY BECOMING A KEY CONNECTION POINT FOR
MAJOR TRANS-ATLANTIC FIBER, THE FIRST IN THE MID-ATLANTIC

9

Virginia’s Rail Network

Virginia’s 3,000+ mile rail network
provides reliable access to nearly all partsof the Commonwealth as well as to major
markets in the Northeast, Southeast, andMidwest, allowing businesses to quickly
and cheaply move products.

2Class I operators

9
Short line railroads

10THE PORT OF VIRGINIA IS MAKING SIGNIFICANT INVESTMENTS TO BE
THE WIDEST, DEEPEST, AND SAFEST EAST COAST PORT BY 2024
6 terminals
The Port of Virginia operates a combined 1,864 acres across 6terminals in Hampton Roads, Richmond, and Front Royal

Close to open sea
The Port of Virginia is only 2.5 hours (18 nautical miles) to open sea
with no air draft restrictions

Highly efficient
Turn times are much faster than industry standard, averaging 40
minutes or less vs. a 60-minute standard

Technologically advanced
26 Suez-class ship-to-shore cranes exist port-wide

Going to 55-foot channels & berths
Significant investments to dredge shipping channels to 55 ft will
make The Port of Virginia the deepest on the East Coast by 2024

Global reachDirect service is available to 45+ countries with 30 global portsof call
Virginia International Gateway, Portsmouth

Source: The Port of Virginia

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VIRGINIA’S DULLES (IAD) INTERNATIONAL AIRPORT OFFERS DAILYDIRECT FLIGHTS TO 150+ LOCATIONS AROUND THE WORLD

Image credit: Metropolitan Washington Airports Authority

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RONALD REAGAN WASHINGTON NATIONAL AIRPORT OFFERSNONSTOP FLIGHTS TO 90+ DOMESTIC DESTINATIONS

Source: Reagan Washington National Airport

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VIRGINIA POSES A LOW RISK LEVEL FOR NATURAL HAZARDS

Source: U.S. Natural Hazards Index, Earth Institute at Columbia University

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WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
Novozymes
Salem, Virginia
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A DIVERSE ARRAY OF INDUSTRY POSITIONED FOR HEALTHYGROWTH IN POST-PANDEMIC AMERICA•AdvancedMaterials•

Aerospace•Unmanned•

Wood Products ••Food &Beverage
Processing••

Automotive

•

BPO

•

SoftwareSupply Chain
Management•

Life Sciences•

Data Centers•

Cyber Security •Offshore Wind

Headquarters
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RECENT MAJOR PROJECTS WON ACROSS VIRGINIA ILLUSTRATE OURABILITY TO SUPPORT A TRULY DIVERSE SET OF OPPORTUNITIESWHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
Morgan Olson
Danville, Virginia
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Virginia State Capitol
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VIRGINIA’S EFFECTIVE TAX BURDEN FOR LABOR-INTENSIVEMANUFACTURERS IS LOWER THAN ITS MAJOR COMPETITORS
Effective tax rate for labor-intensive manufacturers%, effective tax rate for mature labor-intensive manufacturers1, 2021

Virginia
North Carolina
Georgia

6.0
6.8
7.8

Tennessee

8.2

Maryland

8.3

Ohio

8.3

Pennsylvania

8.9

Texas

9.1

South Carolina
New York

10.0
11.9

West Virginia¹ Model manufacturer is based on manufacturer of trucks or buses, employing 400 people, assumes capital investment of$100 million, including a 300,000 square foot suburban industrial building, revenue of $240 million with a gross profit
ratio of 20 percent and earnings before tax of 7 percent
Source: Location Matters, Tax Foundation, KPMG, 2021

14.620OVERALL, VIRGINIA'S STATE AND LOCAL TAX BURDEN IS LOWER
THAN MANY STATES WITH “ZERO” CORPORATE INCOME TAX
Effective tax rate for labor-intensive manufacturers%, effective tax rate for mature labor-intensive manufacturers1, 2021

“Zero” Corporate Income Tax States

Virginia

Ohio

6.0

8.3

Texas

9.1

Nevada9.2

Washington¹ Model manufacturer is based on manufacturer of trucks or buses, employing 400 people, assumes capital investment of$100 million, including a 300,000 square foot suburban industrial building, revenue of $240 million with a gross profit
ratio of 20 percent and earnings before tax of 7 percent
Source: Location Matters, Tax Foundation, KPMG, 2021

11.9

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VIRGINIA’S COMPETITIVE UTILITY COSTS OFFER SIGNIFICANTFINANCIAL ADVANTAGES OVER OTHER REGIONS OF THE COUNTRY
Average industrial electric rates for selected regions
Cents per kilowatt hours (Summer 2019)

East Central
South
East South
AL,Central
KY, MS, TN

Virginia
Virginia

Natural gas industrial price for selected states
Dollars per thousand cubic feet (2018)

Georgia

4.63

South Carolina

4.92

Tennessee

4.94

Virginia

5.08

6.31

6.39

South Atlantic
DE,DC, FL,GA, MD,South
Atlantic
NC, SC, VA, WV

Illinois

6.39

North Carolina

East Central
North
East North
IL, IN,Central
MI, OH, WI

Mid-Atlantic

Mid-Atlantic
NJ, NY, PA
New England

New England

CT, ME, MA, NH, RI

7.30

Ohio

7.79

14.78

U.S. Average: 6.91

5.55
6.18

6.65

New York

7.83

New Jersey

8.03

Maryland

8.51

Pennsylvania

8.69

Source: Edison Electric Institute; U.S. Energy Information Administration

22ALL VIRGINIA CITIES REPORT CONSTRUCTION COSTS BELOW THE
NATIONAL AVERAGE, AND BEST MANY NEARBY COMPETITORSConstruction costs for select U.S. cities
RSMeans Construction Cost Index¹, 100 = national average
one dot = one city

Virginia

Georgia
MarylandNew York
North Carolina
Ohio

Pennsylvania
South Carolina
Tennessee
Texas
West Virginia
U.S. Average¹ RSMeans calculates construction costs for select cities across the U.S.
Source: RSMeans

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WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildingsIncentives designed for your successExceptional quality of life
How VEDP can assist
American Merchant, Inc.
Bristol ,Virginia
24Maggie L. Walker Governor’s SchoolRichmond25Mar-Bal Inc., Dublin
26

George Mason University27

Virginia Tech28

VIRGINIA’S EDUCATIONAL INSTITUTIONS ENSURE A CONTINUAL
SUPPLY OF INDUSTRY TALENT BEGINNING AT AN EARLY AGE

Alexandria Country Day
School, Alexandria

K-12 and CTE▪ Virginia’s public schools ranked best in the South and No. 4 in the U.S.
(WalletHub, 2019)▪ Career and technical education (CTE) programs in Virginia’s public schools
serve more than 640K students across 16 occupation and industry careerclusters, including Agriculture, Food, and Natural Resources

Virginia Community College System▪ Comprised of 23 institutions offering numerous certificate and degreeprograms▪ FastForward program allows Virginians the option to enroll in short-term
training opportunities that facilitate the growth of Virginia’s industry sectors.
J. Sargeant Reynolds
Community CollegeColleges and Universities▪ No. 2 higher education system in the U.S. (SmartAsset, 2020)▪ Many of Virginia’s top-ranked higher education institutions house programs
addressing food science and technology, environmental studies, andagriculture research
Virginia Tech

Source: Virginia Department of Education (Career and Technical Education Performance Trends); Institutional websites

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COMPANIES IN VIRGINIA HAVE ACCESS TO A WORKFORCE PIPELINELOYAL TO VIRGINIA, FROM SCHOOLS ACROSS THE COMMONWEALTH

60% of Virginia’s talent stays in Virginia after graduation

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ONE OF THE NATION’S LARGEST AND MOST EDUCATED VETERANWORKFORCES IS AT YOUR SERVICE

185,000
Virginia is home to over 185,000 veterans under
the age of 45, the 4th-largest population in thecountry

13,800+An average over 13,800 service men andwomen exit the military from VA’s 30 military
installations each year (FY2017-2019)38%
Virginia’s veterans are the 2nd-most educatedin the country, with 38% having a bachelor’s
degree or higher (compared to 27% nationwide)

Committed
Virginia is committed to helping its veteransattain their highest potential, through initiatives
such as Virginia Values Veterans (V3)Fort Belvoir, Northern Virginia
Source: Veteran’s Administration, ACS 201731

VIRGINIA’S TECH TALENT INVESTMENT PROGRAM IS INVESTING~$1.1 BILLION TO FURTHER EXPAND THE TALENT PIPELINE

Master's-Level
Tech-Talent
Education

Strengthening theK-12 Tech-TalentStatewide

Statewide
Community
College TechTalent Education

Tech Internship
Program forHigher Education
Students

Statewide
Bachelor's-Level
Tech-Talent
Education

Investments to add 31K BS / MS grads in CS and related fields over 20 years:▪
▪
▪
▪

~$675M in undergrad education, including 250-300 new faculty lines, startup packages, capitalprojects (new buildings and labs), and operational support~$375M in graduate education, including 50-75 new faculty lines, startup packages, capital projects(a new tech campus plus new buildings), and operational support$25M in tech internships / apprenticeships in higher education$25M in K-12 computer science education (e.g., professional development, online curricula)VIRGINIA’S MANUFACTURING WORKFORCE IS OF HIGHEST QUALITY
Productive
No. 3 state for Workforce (CNBC Top State for Business)

Educated
Created y lad ina
from t e Noun P ro ect

No. 2 state for Education (CNBC Top States for Business)

Reliable
Fourth lowest rate of illicit drug use in the country (National Survey of Drug Use & Health)

HealthyHealthiest state in the South (America’s Health Rankings)

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WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
Lidl Distribution Center
Spotsylvania County, Virginia
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VIRGINIA HAS A ROBUST (AND GROWING) INVENTORY OF SITES AND
BUILDINGSWith 450+ fully-characterized sites of 25 acres orlarger, dozens of certified sites, and a growing
inventory of spec buildings and virtual buildings,
Virginia is constantly improving its portfolio of realestate options.

40+
sites are certified as project-ready under Virginia’s
Business Ready Sites program

12of Virginia’s certified parks have graded pad sites
available for construction

12-18 mo.
for project-ready sites to have utilities on-site and all
infrastructure in place80+
rail-served sites for advanced materials
manufacturers requiring on-site rail
Data current as of Aug. 2020

Southern Virginia Megasite at Berry Hill,
Pittsylvania County35

SITES OF VARIOUS SIZES AND CAPABILITIES ARE AVAILABLEACROSS VIRGINIA; MANY ARE CERTIFIED PROJECT-READY

Source: VEDP Sites and Buildings database36

WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
TMI AutoTec, Inc.
Halifax County, Virginia
37

INCENTIVES DESIGNED FOR SUCCESS IN A NEW ERA

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VIRGINIA OFFERS COMPANIES THE OPTION TO CHOOSE THE
WORKFORCE INCENTIVE THAT’S BEST FOR THEIR PROJECT
Virginia ensures that new or expanding
facilities quickly attract and train high-quality
workers by offering a choice between two ofAmerica’s best workforce incentive programs:
Virginia Talent Accelerator Program
Provides world-class, tailored workforce
solutions, including recruitment andscreening, as well as development anddelivery of customized training, all at no cost
Virginia Jobs Investment Program
Provides straightforward grants to reimbursea large portion of recruitment and training
costs (for companies that implement theirown workforce programs)

Abbott Laboratories, Campbell County

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VIRGINIA JOBS INVESTMENT PROGRAM (VJIP)Red Sun Farms, Dublin
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VIRGINIA TALENT ACCELERATOR PROGRAM

Companies have a choice between VJIP or the Talent Accelerator Program tobest fit their needs.

Morgan Olson, Danville-Pittsylvania
https://vimeo.com/493194534
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WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climateThe top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
Virginia Creeper Trail
Washington County42

VIRGINIA OFFERS AN EXCEPTIONAL QUALITY OF LIFE
Virginia offers a diverse range of lifestyle options, a mild, four-season climate, and acompetitive cost of living. Vibrant urban centers and picturesque small towns are alive witharts and culture and stunning landscapes. Outdoor enthusiasts can take advantage of a widevariety of beautiful outdoor settings, from mountains and hiking trails to beaches and rivers.

(From Left) Smith Mountain Lake, Bedford County; Downtown Arlington; Canal Walk, Downtown Richmond; Sandbridge,Virginia Beach

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VIRGINIA’S AFFORDABLE, EXCITING, AND DIVERSE ENVIRONMENTALLOWS PROFESSIONALS TO THRIVE ON AND OFF THE CLOCK

Live
Virginians enjoy a cost-of-living index below orin line with the national average in 70% of its
cities and counties

Learn
Virginia is frequently recognized as one of thebest states in the country for Pre-K-12
education, with 320 highly-ranked high schools

PlayVirginia offers plentiful access to natural beautyand outdoor recreation, as well as dining andcultural experiences

Virginia Beach Boardwalk
Source: U.S. News & World Report high school rankings;
WalletHub, 2020

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WHY VIRGINIA?

Virginia in the rankings
An optimal location to serve east coast markets
A large and diverse industry ecosystem
An award-winning and stable business climate
The top state for talent
A robust inventory of sites and buildings

Incentives designed for your successExceptional quality of life
How VEDP can assist
VEDP Headquarters
Richmond, Virginia
45

VEDP IS YOUR ECONOMIC DEVELOPMENT PARTNER
VEDP offers customized services and solutions to support a company’s growth.
A single point of contact in Virginia

Site selection assistanceTalent Solutions
Customized incentive proposals
Tailored researchInternational trade services46THANK YOU