As robust economic growth returns to the U.S., few Virginians realize that economic growth across our state continues to lag. While most areas have now recovered all of the jobs lost during the Great Recession, statewide economic growth is far lower to that being experienced in other states. In fact, in 2016, Virginia grew only 0.6% - ranking us 40th in the nation. As a state used to economic prosperity, such data should be alarming. Even here in the Richmond area where the economy appears strong, we are performing just below the national average.
The reasons for this lagging growth are many – fewer federal contracts, less defense-related spending, and population declines in many Virginia localities. At the core of these declines however, is the loss of higher paying jobs in the state. In fact, last year, for the fourth year in a row, Virginia saw net out-migration of talented people to other states where better job opportunities exist. When job growth does occur, it is often in lower-paying jobs, which reduces economic growth.
Fortunately, our elected leaders have recognized that to reverse these trends, we need to take a hard look at the way we have traditionally done business in Virginia by encouraging cooperation, instead of competition, among our localities to tackle the many challenges our state faces.
In 2016, the General Assembly enacted the Virginia Growth and Opportunity Act, also known as GO Virginia, to provide incentives for cooperation to boost the state’s economy. Since that time, working through regional councils like our own GROW Capital Jobs, hundreds of business and community leaders have now started to develop innovative projects to again accelerate economic growth across Virginia.
GROW Capital Jobs has been working for the past year to first identify challenges to economic growth in our region and then prioritize the opportunities to reverse those trends. That study identified innovation and entrepreneurship in the areas of advanced manufacturing, life/biosciences, and logistics as keys to our region’s economic future. Projects to spur the development of new small businesses, develop new industrial sites, and to focus worker-training programs around these key industries, are now being advanced. Recently, both the VCU Pharmaceutical Commercialization Program andtheCommonwealth Center for Advanced Manufacturing Apprentice Academy were approved for funding by the GO Virginia Board. These projects have the potential to stimulate job creation and economic development throughout our entire region. Over the coming months, GROW Capital Jobs will continue to seek out projects that that will benefit our region and meet the council’s funding criteria.
Already, over $5 million of state incentive funds have been approved statewide since December to advance projects to help create more higher-paying jobs through regional cooperation, and additional grants are expected in the near future. These funds have also leveraged over $9 million dollars in additional monies that augment the state’s initial investments.
Similar to the fact that these economic problems didn’t emerge overnight, the solutions will also take time. It will take years of focused determination and additional funding to put Virginia’s economy back on the right track.
Over the coming weeks, it will be important that members of the General Assembly, along with Governor Northam, hear about how to continue the good work of GO Virginia. Such additional funding is necessary to sustain the progress we have already made and to restore Virginia’s competitiveness. Go to www.govirginia.org to learn more and to convey your support for the program.
William H. Goodwin Jr., Chair, and John A. Luke Jr., Vice Chair, GROW Capital Jobs Council of GO Virginia, Info@growcapitaljobs.org.
Goodwin is Chairman Emeritus of CCA Industries, and The Riverstone Group, whose holdings include Kiawah Island Golf Resort, The Jefferson Hotel, Sea Pines Resort and Dynamic Brands. Luke is Non-Executive Chair of West Rock, a leading manufacturer of packaging and paper products.
GO Virginia is a business-led initiative to provide state incentives for localities to collaborate to strengthen our private sector economy by increasing higher paying jobs.
Region Four, or as it is called GROW Capital Jobs, includes the counties of Charles City, Chesterfield, Dinwiddie, Goochland, Greensville, Hanover, Henrico, New Kent, Powhatan, Prince George, Surry, and Sussex; and the cities of Colonial Heights, Emporia, Hopewell, Petersburg, and Richmond. The Region Four Council is led by William Goodwin Jr. as chair and John Luke Jr. as vice chair and supported by the GROW Capital Jobs Foundation, led by Mark Hourigan, Chair of Region Four GROW Capital Jobs Foundation and Chief Executive Officer Wilson Flohr.
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