In an Aug. 22 opinion piece, Cardinal News warned that Virginia’s next governor may face stagnant job growth, rising energy costs and a tightening budget. The analysis, drawing on data from the University of Virginia’s Weldon Cooper Center, pointed to real economic headwinds.
Some major announcements of plans for new job creation were made since then, including two large pharmaceutical manufacturing facilities in central Virginia. Notwithstanding this news, if even some of the August predictions come to pass, the state’s economic situation will require serious attention.
If those forecasts bear out, the effects won’t stop in Northern Virginia or Hampton Roads. In a state as interconnected as ours, economic tremors in the urban crescent ripple quickly into rural counties.
When wages stall or federal contracting slows, income-tax collections dip statewide. That means less money for schools, reduced investment in economic development, and fewer resources for communities already struggling to keep up. When federal contractors scale back in the urban crescent, rural suppliers lose orders. Weekend trips from the Washington area — especially to Blue Ridge communities and Coastal Virginia — become rarer. Tourism fades. Local revenues stagnate.
So, what’s a new governor to do?
By law, she must produce a statewide economic development plan in her first year. But in today’s environment, the traditional 12-month, top-down report is too slow and too disconnected from the realities of Virginia’s diverse regions.
The next governor may face constrained state funds, fewer federal resources and mounting pressure on local services — from schools and housing to infrastructure, public safety, child care and health care. Her success will depend on assembling the right team — inside and outside government — to act quickly and collaboratively.
That means rethinking how Virginia produces its statewide economic development plan, beginning with these changes:
- Move faster. Deliver a usable plan in six months, not 12, with an initial set of actions ready for the next budget.
- Start local, then scale up. Build around regional needs and assets, not just priorities identified around Capitol Square in Richmond.
- Use what already works. Draw on the Virginia Chamber’s Blueprint Virginia 2035 for business input; mobilize the regional GO Virginia councils to connect state agencies, regions and localities; and partner with Virginia’s colleges and universities — public and private — through existing collaborations (e.g. the AM2 Tech Hub, Medicines for All, the Virginia Alliance for Semiconductor Technology, Project VITAL, Cardinal Education) to expand credentialed talent pipelines.
- Tap institutional know-how. Engage the Virginia Municipal League, the Virginia Association of Counties and the Virginia Economic Developers Association for fast, accurate regional intelligence and pilot solutions.
- Hire for technical competence. Preserve Virginia’s tradition of professional agency leadership to ensure continuity through budget cycles.
A visible signal of urgency would be to release the plan on July 4, 2026, in the Historic Triangle — Yorktown, Jamestown, Williamsburg — framing Virginia as a national model of economic and civic adaptability.
Virginia’s future depends on stronger connections between Northern Virginia, Hampton Roads and rural regions. As the plan takes shape, community leaders must be ready with:
- Shovel-ready projects that include a full mix of sites, new buildings and small-town redevelopment opportunities.
- Talent strategies that attract, retain and credential workers through high schools, community colleges and universities in direct response to employer demand.
- Energy diversification initiatives — solar, wind and small modular reactors — advanced through education and public-private partnerships.
The next governor cannot shoulder this work alone. Virginia’s strength depends on local and regional leaders preparing now — with projects, employer-aligned talent pipelines, and energy diversification strategies ready to scale. Northern Virginia, Hampton Roads and rural regions must see themselves as interdependent — and act that way.
If every corner of the commonwealth comes prepared, the governor’s plan can be more than just another state report. It can be a launchpad for faster growth, stronger communities and a more resilient commonwealth.
Unveiling it on Independence Day in the Historic Triangle would send a powerful message: Virginia is ready to lead the nation in economic and civic renewal.
John Provo is executive director of the Virginia Tech Center for Economic and Community Engagement. Liz Povar is a former senior executive with the Virginia Economic Development Partnership, past chair of Virginia Ed Strategies, and past president of the Virginia Economic Developers Association.
