New River Valley Regional Economic Strategy

The New River Valley Regional Economic Strategy (RES), also known as the Comprehensive Economic Development Strategy (CEDS) is designed to create broad goals to develop the region's economy in partnership with representatives of the region's communities. Implementing these goals will promote regional and local growth. The input from a range of partners representing private and public sectors informed the creation of the New River Valley Regional Economic Strategy. The committee set priorities and offered guidance for this strategy to shape economic focus for the next five years. 

The Regional Economic Strategy contains the following sections:

About the Region: An overview providing context and information about the current state of the New River Valley (NRV) and its effects on the economy.  

SWOT Analysis: A collaborative process utilized to determine regional strengths, weaknesses, opportunities, and threats. The tool identifies priorities to promote and expand the region's economic capacity. 

Resilience: An exploration of the region’s ability to prevent, withstand, and recover from disruptions to its economy, particularly the Covid-19 pandemic.

Action Plan: Informed by the SWOT analysis and Resilience sections, the Action Plan sets regional priorities and strategies for economic development and documents the region's priority projects.

Evaluation Framework: A means of identifying and prioritizing RES projects that will positively impact the region’s economy and enable the commission to track the progress of economic priorities and development over time.

The NRV comprises the counties of  Floyd ,  Giles ,  Montgomery , and  Pulaski , the  City of Radford , and 10 incorporated towns. The region also has three higher education institutions:  Virginia Tech ,  Radford   University , and  New River Community College .

Additional data about the region can be found on the  NRV Data Dashboard .

Target sectors are any business activity type that is strategically pursued by an economic development organization and its partners for growth and development. Virginia’s Initiative for Growth and Opportunity in Each Region ( GO Virginia ) is a statewide, bipartisan, business-led economic development initiative. By analyzing regional workforce, economic, and geographic similarities, and potentials, GO Virginia regions develop growth and diversification plans which recommend industry areas that offer high-paying, growing economic opportunities and encourage development within these sectors within their economies.

The SWOT Analysis evaluates a region's economic, Strengths, Weaknesses, Opportunities, and Threats.

Strength: a region's competitive advantages (e.g., industry supply changes, specialized workforce, stakeholder collaboration, etc.) these characteristics are often internal.

Weakness: a region's competitive disadvantages (e.g., Change-resistant culture), also often internal by nature.

Opportunity: openings of regional progress (e.g., expansion of regional life science sector), often these are external forces that impact the region.

Threat: foreseen possible negative impacts on the region which cause decline ( e.g., global pandemic). These are often external events that impact the region.

The NRV’s RES Committee discusses regional strengths, weaknesses, opportunities, and threats during its meetings. In 2019, an extensive update to the SWOT analysis and revisions based on recent events within the region.

Disasters occur when extreme events encounter vulnerable communities. According to the National Risk Index (NRI), the NRV has a very low risk of being impacted by natural disasters. The region is fortunate to encounter fewer extreme events than other communities within the commonwealth and nationwide.

The ability of a community or region to improve after a disaster is known as resilience. Historically, when disasters have occurred in the NRV, the region has been more resilient than the surrounding regions and often the State. The relative safety and resilience of the NRV have lessened the emphasis placed on disaster preparedness and emergency response planning within the region. Throughout the COVID-19 pandemic, the NRV has faced a compounding disaster that has affected many aspects of society. By capitalizing on regional strength, communities have banded together to ensure their residents' health, safety, and well-being.

In a survey conducted by Onward NRV and  Virginia Tech Center Economic and Community Engagement  in September 2020, regional manufacturing and technology companies were asked about COVID's impact on their business and the prospects for their business in the upcoming year. Sixty-two percent of manufacturers and 63% of technology companies expected to retain their employees. Sixty-two percent of manufacturers had unfilled production worker and engineer positions that needed to be filled, and 38% of tech companies needed software engineers, account executives, and production schedulers. Both sectors' businesses generally had a positive outlook for the following year. The most significant concern among companies was the health and safety of employees.

Follow-up results from the 2022 survey show that regional manufacturing and technology companies have performed strongly since the pandemic. Relative to pre-pandemic levels, the majority of firms —75% of manufacturing firms and 83% of technology firms— report maintaining or increasing the number of employees at their firm. Furthermore, firms in both sectors anticipate employment growth into the future. Most manufacturing firms (82%) report unfilled positions, such as purchasing agents, accountants, engineers, machine operators, technicians, and assemblers. Just over half of technology firms (56%) have unfilled positions, such as developers, engineers, administrators, and various business and operations managers. Manufacturing firms report workforce recruiting and retention to be their main concerns, while technology firms report employee morale and company culture to be their main concerns.

The COVID-19 pandemic has also accelerated existing trends and issues within the region, such as income inequity, housing instability, and changes in small businesses and retail. It has also presented new challenges such as supply chain shortages, significant unemployment, and social and physical isolation. The Action Plan presented in the next section focuses on addressing and coping with these trends and issues. The RES committee identified strategies, partners, and priority projects to address weaknesses and threats and capitalize on strengths and opportunities.

1. Support Business Development and Entrepreneurship
2. Preparation and Continued Support of Qualified, Available Workforce
3. Utilize Available Land and Quality Infrastructure
4. Preservation of Natural and Cultural Resources in the Region
5. Encourage Business-friendly Governance and Representation

Fifty-one percent of the region’s local goods and service providers employ less than five (5) employees, and 95% employ 50 or fewer employees. Despite their size, small businesses are essential to the regional economy and communities. These businesses offer crucial goods and services as well as jobs, economic growth, and financial stability for employees. Unfortunately, pandemic-related financial hardships have put tremendous stress on these enterprises and emphasized how critical the need is for comprehensive business assistance programs.      

The  Roanoke Regional Small Business Development Center (RRSBDC)  is a resource to business owners in the region and assists them with technical training, best practices, and financial assistance. However, their service area covers both the Roanoke and New River Valleys, stretching their capacity thin. In 2021, the demand for their service was evident by much higher consultation rates than in previous years.     

Additionally, local economic development offices and organizations such as Onward NRV have been working with industry partners to actively attract and retain high-quality jobs, investment, and talent in the region and to promote the economic vitality of the region.

Provide a comprehensive array of support services for small business development and growth.

1. Encourage micro and small business success in downtown and commercial districts, through revitalization and promotion of community individuality. 
2. Develop and support peer networks and events to bring together small businesses in similar industries, such as tourism/outdoor recreation, technology, and health. 
3. Coordinate and improve the accessibility of counseling, technical assistance, and financing resources offered to local business owners by local, regional, and state partners.

Improve the region's ability to foster and retain fast-growing businesses in target sectors.

1. Improve access to capital for high-growth firms through the development of angel investor groups and promoting partnerships between capital sources and fundable firms. 
2. Support the development of university technology commercialization and industry research partnerships, building on existing efforts in unmanned systems, health/medical technology, and cloud computing/internet/IT. 
3. Support and develop business incubator and technical resources targeted to firms with growth potential

Promote entrepreneurship and provide resources for NRV residents to start their own businesses.

1. Support local entrepreneurship promotion initiatives, such as business plan competitions and youth entrepreneurship initiatives.
2. Coordinate local incentives to encourage business development in targeted sectors that align with local economic development strategies, such as tourism/hospitality, agribusiness, manufacturing support services, etc. 
3. Develop incubators, co-working,  maker spaces, and other resources to allow low-cost options to support entrepreneurs through the start-up phase.

Focus local and regional economic development marketing efforts on target industries and firms that build on the region's strengths.

1. Assess and improve the ability of the region to meet the workforce, infrastructure, and facility requirements of firms in the region's target industry sectors and prioritize projects that address these needs (industrial sites, workforce initiative, green energy requirements, etc.). 
2. Coordinate and promote the technical expertise, research capabilities, and pipeline of skilled graduates that the region's community college and universities can provide to business and industry. 
3. Target recruitment to firms with significant supplier relationships to existing NRV firms and firms that can benefit existing regional assets, including foreign trade zone, interstate access, Commerce Park, university research, etc.

The region's higher education programs draw many qualified people to develop skills and gain qualifications. Although there is a promising pipeline for talent and the ability to train for many different careers, there is often a disconnect between employers' desired qualifications and the available skills of workers. The New River/Mount Rogers Workforce Development Board has been developing "career ladders" that work with industry leaders to identify various career paths within an industry and explore qualifications, degrees, and skills that employers seek for these positions.

While the region has a surplus of talent in some job sectors, other sectors struggle to recruit enough talent. For many years the region has experienced a decrease in skilled tradespersons.  Across the state and nationwide, skilled tradespersons are aging, and efforts to recruit and retain qualified replacements have had limited success. Reasons for this include: 

A significant barrier to the region’s workforce returning to work after COVID-19 has been the shortage of affordable childcare facilities and programs. Other services that workers struggle to access include healthcare and tuition assistance. Improving workers' access to critical services advances the ability of communities to attract and retain top-tier talent  as well as foster better opportunities for the employees themselves.

Align education and training programs with the current and future needs of the region's existing employers and targeted industry sectors.

1. Establish partnerships between industry/business and all levels of education and provide students with more "real world" learning opportunities.
2. Improve awareness of career options in local industries among K-12, community college, and university students and graduates.
3. Develop a career pathways approach to ensure regional colleges and universities provide training, credentials, and degrees that allow workers to advance their careers in local industries.

Establish a strong foundation for lifelong learning and career success for NRV residents.

1. Ensure quality, affordable pre-school programs are available throughout the NRV.
2. Ensure career counseling, technical education, and enrichment activities are available throughout the region to support K-12 students' plans and preparation for careers or post-secondary education.

Increase the availability and accessibility of supporting services that New River Valley residents need to participate fully in the workforce.

1. Increase the availability of quality, affordable childcare facilities for all areas of the NRV. 
2. Assure access to quality, affordable healthcare and wellness options for physical, mental, and social well-being and safety
3. Coordinate resources to provide low-cost options or tuition assistance for residents seeking college degrees or workforce training.

Ensure the NRV is competitive in its efforts to attract and retain talented workers in the region’s target industry sectors.

1. Coordinate industry recruitment and economic development marketing efforts to address shortages of specific technical workers or skilled professionals that hamper growth in target industries.
2. Implement projects that improve the quality of life and availability of housing and services to meet the needs of the region's current and future workforce.
3. Encourage and promote work from home and telework opportunities to keep and attract remote talent within the region.

Land and infrastructure are essential commodities for thriving businesses. Transportation, broadband internet, available commercial and residential property, and alternative energy sources are some of the areas the region has prioritized.

Transportation

Transportation is an essential factor influencing workforce and product availability and encourages the transfer of resources, goods, services, and consumers between the region and other locations worldwide. Interstate81, US 460, and other secondary roads are critical corridors for truck freight [word] and commuter mobility throughout the region. Rideshare programs like RIDESolutions support the reduction of single-occupancy vehicle commuting.

Passenger rail is expected to extend to the region within the next five years. Amtrak's Northeast Regional Service will extend operation to Christiansburg, VA. The addition of passenger rail in the NRV will connect the region to metropolitan areas such as New York, Philadelphia, and Washington D.C. which offers opportunities to expand visitorship and increase workforce connectivity.

Broadband

The pandemic underscored the need for quality internet to conduct business, engage in education, and access goods and services. The region has also been working to bring quality high-speed internet regionwide. In 2021, the NRV received funding for a multi-regional broadband project to address the gaps in affordable broadband access within the region. Other localized projects are also underway. It is estimated that by 2026 the entire NRV will have access to high-speed internet.  

Available Property 

A continued barrier to business attraction and growth is the limited availability of industrial, commercial, and residential building stock. Intense demand is outstripping supply, and because of these shortages, the region is often passed over for other communities who can offer adequate employee housing and commercial space.

Alternative Energy

Increasing utility costs and growing concerns around fossil fuel consumption and climate change have led many localities and business leaders to pursue alternative energy options. While fossil fuels still comprise the majority of energy usage, alternative energy solutions such as solar, wind, and geothermal energy generation offer a way for households and communities to reduce emissions and overall energy costs.

Expand transportation options to meet the needs of businesses and residents.

1. Develop and expand regional transit systems, rideshare programs, and other initiatives that connect population centers to employment centers to improve access for rural residents. 
2. Promote land-use policies that maximize the opportunities for regional access to transportation networks, including interstates and major highways, freight rail, and airports. 
3. Promote and support the development of a passenger rail station in the NRV. 
4. Expand the regional walking and biking trails, bike lanes, and pedestrian safety improvements. 

Identify opportunities to expand and improve the region's high-speed internet available to residents and offer services to meet the needs of households and businesses within the NRV.

1. Encourage the development of broadband networks in unserved rural areas and improve the capacity of broadband connections in underserved communities.
2. Support local service providers' efforts to bring fiber to the home.
3. Encourage the development of network redundancy around critical services (emergency services, health care facilities, schools, government buildings, etc.) to be prepared for emergency and disaster situations. 
4. Retrofit historic buildings to provide improved broadband options.

Develop and maintain adequate and affordable housing stock within the region.

1. Develop and encourage youth programs that offer on-the-job training in construction and other related skilled trades (electricians, HVAC technicians, plumbers, masons, etc.) related to the housing industry. 
2. Reinvestment in housing stock to provide renovation and retrofitting to older homes. 
3. Investigate programs that establish regional purchasing power for building materials to reduce building material costs. 
4. Business support for construction firms to improve business practices and cash flow. 

Develop and maintain available sites and buildings to meet the needs of industrial and commercial users.

1. Incentivize rehabilitation of deteriorating structures in historic downtown and encourage mixed-use development in growth areas and downtown districts.
2. Inventory and assess vacant industrial and commercial properties, and identify appropriate uses for the buildings and related retrofitting needs.
3. Promote and support shovel-ready mid and large-sized industrial site projects.
4. Promote and support building energy efficiency through efforts to increase demand for these features through public education and valuation for energy efficiency improvements.

Explore and implement alternative energy options within the region.

1. Promote and support the ability of government, businesses, and residents to invest in alternative renewable energy sources and infrastructure. 
2. Education programs to inform citizens about options and benefits of alternative energy for residents. 
3. Promote the NRV's alternative energy efforts as an asset for regional attraction.

The NRV has rich natural and cultural resources that shape the identity of each locality and offer many opportunities for the region's economy. These options include raw material production, outdoor recreation, other tourism opportunities, and rich cultural history to provide a unique place to live and work. During the COVID-19 pandemic, outdoor recreation amenities gave communities both continued economic development opportunities and a means for safer social interaction.

Preserve the NRV's natural and historic assets to protest the character and quality of the regional environment.

1. Support and encourage the continuation of family farms through efforts to increase the market for local agricultural products, including farmers' markets, regional aggregation facilities, and "farm to school" programs.
2. Utilize tourism initiatives to preserve open spaces, historic sites, and vital natural attractions in partnership with local non-profit historical societies, conservation groups, etc.
3. Coordinate conservation, outdoor recreation, and tourism initiatives related to the New River within the region and neighboring regions.
4. Improve land use planning and practices to preserve the region's rural character, and encourage development in existing population and employment centers.

Coordinate marketing and promotion campaigns to create a consistent brand and message for the NRV.

1. Explore options to provide regional support and coordination for tourism promotion campaigns of the county, city, and town destination marketing organizations.
2. Leverage state and regional tourism marketing and economic development marketing program that align with NRV marketing initiatives.
3. Identify, develop, and package the region's inventory of historical and cultural assets, arts, natural features, outdoor recreation amenities, and events to support external marketing.

Regional collaboration proved an effective tool for navigating the pandemic. Multi-disciplinary groups of local government representatives, businesses, first responders, and other volunteers worked together to limit disease transmission, hold vaccination clinics, and organize business support and assistance. Utilizing these relationships, regional and local stakeholders can continue to tackle issues that face the region.

Promote a business-friendly environment through governments cooperating with businesses at the local level and advocating for them at the state and federal levels.

1. Seek representation on state commissions and committees, and the GO Virginia Region 2 Council
2. Provide input to state agencies from regional economic development organizations and the NRVRC to ensure state policies and programs address local issues.
3. Support police, fire, and medical operations throughout the region.
4. Coordinate state's regional resources to expand the capacity and resources of local governments to implement desired economic development programs.

Develop and maintain partnerships among organizations, educational institutions, and government entities.

1. Build Relationships between groups to collaborate to facilitate the exchange of information to benefit the region.
2. Collaborate with multi-disciplinary groups of stakeholders and partners to develop strategies and tackle priority regional projects.
3. Coordinate events that foster cross-organizational relationships.

The RES committee and the NRVRC Board members reviewed and updated the project evaluation criteria. These criteria reflect RES priorities and strategies and are used to measure the relevancy of a project with the regional strategy. Projects are evaluated on project readiness and priority alignment, economic competitiveness, and regional alignment.

The "Top 10 plus 4” have been identified as the highest relevant and important projects to the region. The full list of RES projects, including local projects, appears in the appendix.

Development of Broadband Infrastructure and Availablity: Implement recommendations of studies in local jurisdictions (Montgomery, Pulaski, Giles). NRV will continue to pursue additional funds for underserved areas.

The Future of Transportation and Logistics: Virginia Tech leads regional coalitions that aim to support the local transportation and logistics cluster and accelerate the adoption of electric and automated (uncrewed) vehicles. The coalition plans to build upon its existing strengths in vehicle manufacturing, digital technology R&D, and vehicle test and evaluation. The coalition proposes to support this cluster through three distinct projects providing more accessible technology testbeds and networks for tech transfer, business development support, and talent development services.

Provide technical assistance services to supply chain firms of regional manufacturers: Engage university experts and industry consultants to provide product testing/prototyping, market analysis, process improvement, and other technical assistance services to support the competitiveness of suppliers to large regional manufacturers.

Implement 'sector strategies' focus for workforce development programs to meet needs in target industry sectors: Develop relationships between regional businesses and education, economic development, and related stakeholder organizations to provide services that ensure the success of these industries in the region. Enhance integrated 'career pathways' workforce curriculum to develop workforce skills that address the needs of targeted industry sectors, especially manufacturing, IT, and healthcare.

Manage, promote and expand local and regional revolving loan fund programs: Deploy RLFs to small businesses and entrepreneurs across the region. Secure funds to recapitalize the loan fund to target scale-up opportunities and emergent business sectors.

Commercial District Revitalization efforts: Encourage micro and small business success in downtown and commercial districts, through revitalization and promotions of community individuality, redevelopment of blighted properties, and small business support services.

Support of local agriculture, growers, and producers: Through business development services, networking, and mentoring, local farmers and agriculture producers can expand business opportunities in the food/beverage and small-scale manufacturing industries to increase production and profitability.

Promote and coordinate the development of a New River Valley passenger rail station: In conjunction with the Virginia Passenger Rail Authority and the New River Valley Passenger Rail Station Authority, coordinates state and private stakeholders to pursue the development of this passenger service from Roanoke to Christiansburg.

New River Water Trail Expansion Project: Support regional and local efforts to develop outdoor recreation tourism amenities related to the New River and other natural resources, such as boat ramps and access, signage, marketing, education, safety, stewardship, and other recreation supportive projects.

Industrial Site development and upgrades: Site grading, pad site development, shell building construction, and other infrastructure upgrades to the region’s industrial parks and sites, along with marketing and advocacy of available sites.

Housing Production: Development of a wider range of homeowners opportunities and rentals; development of greenfield sites for housing.

Blockchain Ecosystem Catalyst: Virginia Tech will develop and implement academic programming, professional talent development, developing industry relationships, and launching an online resource portal for blockchain startups and professionals. The program is designed to encourage entrepreneurship and commercialization of blockchain-related technologies and bolster existing IT pipelines around blockchain systems.

Bio-medical/life sciences expansion: The Virginia Tech Corporate Research Center in partnership with the city of Roanoke, Montgomery County, and Johnson & Johnson JLABS, will support a three-prong approach to growing the region’s health and life science cluster. The project will pilot a shared lab facility in Blacksburg at the VTCRC to meet the demand from small, early-stage companies, many of which are spinoffs from Virginia Tech and/or alumni of the Regional Accelerator& Mentoring Program (RAMP).

Valley to Valley Trail Study: Perform analysis combined with consensus building to result in a recommended alignment that will connect the Roanoke River Greenway to the New River Trail while connecting to other recreational facilities in the region such as the Huckleberry Trail in Christiansburg.