YesVirginia Business Blog | A place for news, opinions, and information regarding the Virginia Economic Development Partnership.
As leaders of the Board of Directors of VEDP—which by anyone’s measure, just experienced its most difficult year of operation since its formation in 1995—we are wrestling with deep problems facing VEDP, the economy and some systemic ones woven into the very fabric of how our Commonwealth approaches economic development. We are, however, optimistic because we know that economic development partners across the state are taking actions necessary to fortify Virginia’s future.
For our part, the VEDP Board is engaged. In 2014, Don Seale, then Chairman of the VEDP Board of Directors, realized that fundamental changes were needed inside the organization. Don called for the creation of a Chief Operating Officer position and recruited Dan Gundersen to help reset VEDP. Dan’s initial focus was on strategic direction, creative programming, engaging employees, and assuring greater management control and accountability procedures.
We began to peel back the layers of VEDP. Dan Gundersen produced for the Board a first-ever Strategic Review that serves today as the guidepost for a 3-5 year action strategy for VEDP. A new compensation plan was adopted which provided pay equity across positions. We evaluated funding models for 49 other states’ economic development entities, produced new top-line metrics, put in place a robust communications strategy for the external partners and encouraged new avenues for employee input and engagement.
We (Chris Lumsden and Dan Clemente) succeeded Don Seale as Chairman and Vice-Chairman respectively and the first thing we decided to do was to hear from our stakeholders. We conducted a Listening Tour that involved over 150 economic development professionals, public officials, and business interests in all regions of Virginia and more than 80 counties. We learned that over several years’ time, VEDP’s approach to marketing and deals had alienated many of its stakeholders and contributed to a crisis of confidence.
In March of this year, we asked Dan Gundersen to serve as Interim President and CEO, as well as COO, to help turn around VEDP. He demonstrated great courage and collaborative leadership skills in managing VEDP during a period of serious political stress and organizational crisis. Working with the Board’s Finance and Audit Committee, the VEDP team put in place solid due diligence procedures for discretionary grants, cleaned up twenty years of Governor Opportunity Fund records, and delved into data integrity and integration issues. VEDP also moved its 55,000 square-foot headquarters to new space that saved the Commonwealth over $1.8 million. The new headquarters is designed with open spaces and glass offices and, quite literally, sends a clear message to all that VEDP is a transparent organization that is reinventing itself for the next generation of economic development.
By mid-summer, again with direct involvement of key Board leaders, input from the Joint Legislative Audit & Review Commission (JLARC) team and independent management consultants, VEDP was prepared to roll out a reorganization. Dan Gundersen successfully led VEDP through the difficult reorganization process, with input from a core planning group, cross-functional work teams, and facilitated focus groups of employees throughout the organization. Three new market-facing divisions were established: Business Investment, Competitive Initiatives and Workforce Development. They operate alongside VEDP’s International Trade team to support businesses.
New management in key spots has infused new energy and determination to have VEDP become recognized as the very best economic development organization in the country. We are pleased that Stephen Moret will join us at the helm in January.
Our work is not over—far from it. But we have laid a solid foundation on which to build a bright future for economic growth in Virginia. This would not have happened without the active support of Virginia’s economic development professionals. We thank you and look forward to continuing to work closely with you as we enter into the new year with renewed confidence and enthusiasm.
Dan Clemente, Chairman of the Board
Vince Mastracco, Vice-Chairman of the Board
Chris Lumsden, previous Chairman of the Board
Throughout the year, VEDP embarks on regional familiarization trips, or FAM tours. In August, Charlie Jewell of the New River Valley Alliance lead a small group from VEDP on a tour around the New River Valley (NRV), which included 20 visits to local businesses.
The NRV covers more than 200 square miles and is home to Giles County, Pulaski County, Floyd County, Montgomery County, the City of Radford and Towns of Blacksburg and Christiansburg. With a growing population of 183,000, the NRV has an incredibly diverse and robust economy for its size.
In 2015, the region had the second highest job growth rate in Virginia, and this year, Area Development Magazine listed the NRV as having the fourth best workforce in the nation. The Valley is also a constant recipient of quality of life accolades thanks to the area’s beautiful mountainous setting and charming small town atmosphere. The NRV is also bolstered by their esteemed universities, including Virginia Tech and Radford, in addition to the New River Valley Community College.
On the tour, VEDP visited a wide array of business including Red Sun Farms, Jackson Park Inn, Floyd Commerce Park, Rackspace, Virginia Tech’s Corporate Research Center and the Riverbend Facility.
To learn more about Virginia’s wide variety of communities, click here.
Members from VEDP tour available building space in the New River Valley.
This week, VEDP is attending the International Woodworking Fair in Atlanta, Georgia. We had the opportunity to partner with our state’s Department of Agriculture and Consumer Services and Department of Forestry to promote Virginia and its forest products, emphasizing the importance of the industry in the Commonwealth.
More than 31,000 people were employed by over 900 companies in Virginia’s wood products industry in 2015, which had a direct economic output of $10.3 billion and supported an additional output of $7.1 billion.
Virginia’s strategic mid-Atlantic location and superior transportation network provide access to 43 percent of the U.S. population located within a one-day (10 hour) drive. These assets combined with access to the Port of Virginia and a direct connection to over 100 foreign ports make an ideal location for wood industry companies.
Virginia’s higher education system provides education and training programs to bolster the Commonwealth’s workforce and therefore Virginia businesses. Virginia Tech’s Department of Forest Resources and Environmental Conservation is home to the following research centers: Conservation Management Institute, Center for Geospatial Information Technology and Virginia Water Resources Research Center. Virginia State University partners with Virginia Tech to run the Virginia Cooperative Extension to offer programs such as the Virginia Forest Landowner Education Program and the Virginia SHARP Logger Program. Blue Ridge Community College has a Die Cutting and Packaging program to generate skilled technicians for the paperboard packaging industry.
In the past decade, wood products companies in Virginia have announced projects worth $3.8 billion in pledged investment and more than 10,100 pledged jobs. To learn why companies choose Virginia click here.
VEDP, VDACS and VA Department of Forestry provide large Virginia presence at IWF 2016.
This week, VEDP attended the SelectUSA Investment Summit, a high-profile event in Washington, D.C. dedicated to promoting foreign direct investment (FDI) in the United States. We had the opportunity to connect with companies all over the world to discuss the benefits of doing business in Virginia.
Governor Terry McAuliffe hosted a Virginia reception to showcase the Commonwealth’s assets and participated in a workforce development panel during the conference.
Global investment supports nearly 487,000 jobs in Virginia. These direct FDI and related supply chain jobs earn higher compensation than the overall state average.
During SelectUSA 2015, VEDP met ELDOR Corporation for the first time. Following the Summit, Governor McAuliffe traveled to ELDOR’s headquarters in Italy to meet with company leadership. Less than one year after first meeting at SelectUSA, ELDOR announced their plans to invest $75 million and create 350 new jobs at their North American regional headquarters in Botetourt County.
More than 700 internationally-owned companies call Virginia home, including Canon, Stihl and Rolls-Royce. Cost-effective operations, pro-business values, global logistics assets and easy access to the U.S. market are just a few of the unique resources that allow businesses to prosper here.
From 2009 to 2014, international companies announced more than 15,000 new jobs and $4.6 billion investment in the Commonwealth. To learn why companies choose Virginia for internal investment, click here.
Governor McAuliffe participated in a workforce development panel during SelectUSA.
Sumitomo Machinery Corporation of America (SMCA) is celebrating the 50th anniversary of its North American headquarters, located in Chesapeake, Virginia.
Sumitomo Machinery Corporation of America is a subsidiary of Sumitomo Heavy Industries, one of the largest manufacturers of machinery in Japan and the global leader in power transmission knowledge and innovation. SMCA is the premiere power transmission and control solution provider and has customers across the U.S. and globally.
In 1987, Sumitomo relocated to Chesapeake from New Jersey and constructed a new manufacturing facility for the production of its cyclo drive technologies, speed reducers, speed variators, motors and related industrial gears.
Sumitomo has experienced consistent growth since joining the Commonwealth. In 2009, SMCA announced its first Engineering and Service Center would open in Chesapeake, and in 2012, they shared plans for the first phase of a three year investment strategy to transition their 250,000-square-foot facility from an assembly and distribution center to an assembly and manufacturing facility.
In August 2013, the company announced a definitive merger agreement with Hansen Industrial Transmissions Inc., a leading provider of large size industrial gear drives, which operates at the HNA facility in Verona, Virginia.
Since locating to Virginia, Sumitomo has invested over $60 million in the Commonwealth and has 264 employees in Chesapeake, Suffolk and Verona.
Virginia’s strategic central location on the U.S. East Coast and access to the Port of Virginia has made an ideal home for Sumitomo.
To learn why more than 5,500 manufacturing companies like Sumitomo have chosen to locate in Virginia, click here.
Mayor of Chesapeake Alan Krasnoff and Secretary of Commerce and Trade Maurice Jones recognize Sumitomo leadership during the anniversary event.