A Home for Business for More Than 400 Years
The Commonwealth of Virginia has existed as a business venture since its inception in 1607, when the Virginia Company of London formed a joint-stock company to bring profits to shareholders and establish an English colony in the New World. More than 400 years on, Virginia is still known as one of the best states in the country for business. Since 2019, Business Facilities, CNBC, Forbes, and Site Selection have all ranked Virginia in the top five states in business climate, business friendliness, or their overall state rankings.
Virginia’s appeal for companies starts with its stability, allowing startups and expansions alike to move forward with business plans knowing that policies and operating costs will be predictable. Virginia’s corporate tax rate has been stable since 1972, and the Commonwealth’s state and local tax burden is significantly lower than the national average. Considering all forms of taxation, Virginia boasts one of the lowest overall business tax burdens in the country — similar to many states that tout “zero” corporate taxes — along with competitive leasing, utility, and construction costs.
Consistent policy and prudent financial management have earned the Commonwealth an AAA bond rating since 1938, longer than any other state. This commitment to stability has translated into financial predictability for the companies that choose to operate in Virginia. As a result of continued strategic investments in critical infrastructure and education, Virginia’s economy has grown steadily at an average of 2% annually for the past 20 years, contracting in only three of these years during nationwide recessions. The Commonwealth has experienced only two budget deficits since 2003, both occurring during the Great Recession and tempered by the state’s healthy “rainy day” reserve fund.
That stability has led to Virginia consistently being ranked among the best-run states in the country. This holds regardless of which party occupies the Executive Mansion or controls the General Assembly. As Mike Petters, former president and CEO of Newport News-based Fortune 500 company HII and now a member of the company’s board, said, “There’s a general consensus in the state legislature of the importance of business, and I don’t think that is tied to a particular party. It’s incumbent upon the businesses to identify those things that are good for business, but when the case is made, the Commonwealth steps up.”
Virginia’s regulatory environment offers a business-friendly climate that aligns strictly with federal labor regulations on family leave, overtime, and more. That climate includes one of the oldest right-to-work laws in the country, dating to 1947. Just 4.8% of Virginians belong to a union, less than half the national rate of 10.3%. Businesses and employees can work together freely and productively to establish common-sense workplace policies that fit their respective needs.
Virginia companies benefit from a premier talent base that’s one of the most educated and productive in the country across industries. Nearly 40% of Virginians have a bachelor’s degree or higher, making the Commonwealth the sixth-most educated state in the country (first in the South), well above the national average of 33%. SmartAsset ranked Virginia’s higher education system as the second-best in the country in 2022, while CNBC ranked the Commonwealth as the second-best state for education the same year.
Homegrown Virginia companies range from Fortune 500 giants like Capital One Financial Corporation, Markel Corporation, and Owens & Minor, Inc., to smaller companies that continue to innovate in a wide variety of fields. Bedford County-based NanoTouch Materials, LLC developed the world’s first line of self-cleaning surfaces. F.R. Drake Company in Waynesboro manufactures the world’s most popular frankfurter loading system. CarMax, Inc., a Fortune 500 company based in Goochland County, revolutionized used car sales through a big-box, mass retailer approach that has been adopted across a large swath of the industry.
When asked why their companies chose Virginia, executives across the Commonwealth echo some recurring themes: quality of life, a strong workforce, an advantageous Mid-Atlantic location, and growth potential. As Diane Kees, COO of Micro Harmonics Corporation in Botetourt County, said, “We can’t imagine being anywhere other than Virginia.”
A wide array of diverse companies have found what they needed in Virginia — a business-friendly regulatory climate, competitive and stable taxation, and one of the lowest private-sector unionization rates in the country. The Commonwealth’s homegrown success stories include several Fortune 500 companies and a great many other innovators in fields as diverse as banking and credit cards, manufacturing, shipbuilding, wood products, and food and beverage processing. Read on to learn about these innovators who chose Virginia to launch their businesses.
