Advanced Manufacturing

As the pandemic impacts the global production of goods, Virginia must capitalize on its strategic assets to advance manufacturing within the Commonwealth. However, while Virginia has a good business climate and a transportation system to support manufacturing, it must address certain challenges to attracting advanced manufacturing in the state—(1) High tax burdens discourage capital investments in new and existing companies, (2) The lack of available business-ready sites, (3) Supply chain disruptions and the need for an expanded footprint in international markets (4) Certainty and predictability in the permitting process, and (5) The need for highly-skilled, highly-trained talent. 

The recommendations included here offer a platform for growing the advanced manufacturing sector and building the talent workforce in Virginia.

  • Strengthen Virginia’s potential in the high-growth, advanced manufacturing sector through a dual focus on attracting manufacturing economic development opportunities and growing the industry organically by nurturing entrepreneurs and commercialization efforts
  • Explore ways to expand and utilize incentive programs for capital investments in areas of the state where manufacturing clusters exist and can grow
  • Explore opportunities to work with surrounding states on economic development projects of shared interest
  • Revise the definition of “local match” within Virginia’s economic development incentive programs to enable multiple localities or even regions to pool their resources to meet this requirement
  • Support efforts to build a strategic portfolio of project-ready sites by connecting them to important infrastructure such as broadband, energy, water, rail, highways, etc.
  • Create a more welcoming business climate for the advanced manufacturing sector
    • Work with the Governor and General Assembly on a comprehensive review of Virginia’s tax system, including identifying targeted tax changes for Virginia’s manufacturers which will allow for greater growth in the industry
    • Pursue targeted tax changes to reduce the combined state and local effective tax burden for job-creating manufacturing business investments
    • Streamline the regulatory and permitting process to provide greater efficiency, consistency, and predictability to allow for greater manufacturing growth
    • Ensure regulations are evaluated with standards that appropriately balance environmental protection and economic development
    • Improve permit processing times among Virginia’s state agencies and localities
    • Limit the growth in fees for services which currently act as a regulatory unfunded mandate on industry
    • Allow the General Assembly to oversee regulatory agencies’ use of fees for service and evaluate their effectiveness in processing permits and applications
  • Attract and provide additional private and public funding to enhance and expand the scientific and technological research and commercialization at federal research institutions and facilities, as well as the Commonwealth’s higher education institutions for advanced manufacturing
  • Target opportunities in rural areas and small metros to help build and expand business centers of excellence for manufacturing

  • Fully fund Virginia’s International Trade Strategic Plan which seeks to double exports by 2035
    • Prioritize the importance of advanced manufacturing in export growth
  • Target advanced manufacturing growth for products that have large export potential and a high return on investment
  • Strengthen the domestic and international supply chains for critical materials and products for advanced manufacturing, especially regarding inventory critical to national security and public health
  • Recognize the sensitivity of the global supply chain and work collaboratively with the business community to ensure continuity of critical operations through public-private partnerships and the removal of trade barriers and impediments to the efficient movement of goods and services
  • Limit supply chain disruptions to avoid negative impacts to the economy and ensure as much predictability and stability in production for manufacturers as possible
  • Develop a working partnership between the private sector and the Commonwealth’s network of colleges and universities to educate and train the workforce necessary to fill critical jobs in the 21st Century supply chain to move materials and products from the waterfront to final destination

  • Encourage facilitated communication between manufacturers, academic institutions, and other training curricula developers to address local industry-identified gaps and emerging skill needs
  • Support the Commonwealth Center for Advanced Manufacturing’s (CCAM) efforts to solve advanced manufacturing challenges and grow a qualified manufacturing workforce ecosystem by providing a diverse and industry-driven educational pathway
  • Create and expand work-based learning opportunities such as internships, apprenticeships, and other training programs
  • Reduce the stigma amongst young people and their parents in entering the manufacturing industry or the skilled trades through career education in K-12 and other forums
    • Communicate the opportunity and high return on investment for a career in advanced manufacturing

  • Recognize the need for smart regulations that ensure workplace safety and protect public health while appropriately balancing the economic impact
    • Support commonsense workplace safety measures that are consistent, reasonable, and account for the views of communities and businesses
  • Support constructive workplace safety strategies that contribute to a day-to-day safety culture in the workplace
  • Provide thought leadership on workplace safety best practices and regulatory updates for small businesses