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Old Dominion Electric Cooperative - State of Virginia

Auto manufacturers expanding and relocating to the South can find the best of both worlds in the Commonwealth of Virginia. Not only will they find a ready and willing workforce that historically outshines other Southern states in educational achievement, but they’ll also find a low-cost environment that maximizes profit potential.

As an example of this low-cost environment, average hourly manufacturing wages in Virginia are well below the national average, and Virginia manufacturers enjoy one of the lowest workers’ compensation costs in the country, some 43 percent lower than the national average.

And in a state with more than 10,000 high-tech manufacturing firms, Virginia has shown itself to be fully capable of transitioning itself from a Southern economy once based on agriculture to one that rivals northeastern states.  Proof of this lies in the state’s acquisition of companies like Wyeth Pharmaceuticals, Canon, Gateway, Northrup Grumman, Raytheon, Hewlett-Packard, Oracle and Nextel.

While the pharmaceutical and microchip industries are relatively new acquisitions in this state, the automotive cluster is well established, tracing its roots back to 1925 when Ford Motor Company built an assembly plant in Norfolk. Since then, more than 7 million vehicles have rolled off Norfolk’s assembly lines.  And with companies like GM Powertrain, TRW, Volvo Trucks, Mack Trucks, Yokohama Tire and Siemens VDO Automotive, Virginia’s auto sector is alive and thriving and employing more than 25,000 Virginians.  Just since 1992, the auto sector here has invested more than $2.1 billion in 117 new facilities and created an astounding 10,300 jobs.

Further making this state an attractive location for automotive manufacturing, Virginia’s commitment to fostering an atmosphere conducive to business growth is unsurpassed. For instance, it’s been more than three decades since Virginia raised its corporate income tax rate, which continues to be the lowest in the nation at 6 percent. The commonwealth offers a streamlined permitting process for businesses, and provides recruitment training to get news companies off to a running start. 

While the larger and well-known Virginia communities like Richmond, Norfolk and Roanoke have long been known as excellent places to locate industries, the suburban and rural areas of the Commonwealth are rapidly making a name for themselves as well.

“There’s been a quiet emergence in the rural parts of the state where the automotive industry has found it can succeed, and indeed, exceed expectations,” said David Hudgins, director of economic development for Old Dominion Electric Cooperative.

The low cost of doing business and the pro-business climate have certainly been factors in that growth, Hudgins said. But the skill, work ethic and diversity of the Commonwealth’s workforce is the primary driver, he said.

“The diversity of our workforce enables Virginia to stand out from the competitors,” Hudgins said. That diversity, when combined with Virginia’s excellent education and worker training resources, has allowed the labor force to easily transition from agriculture, textiles and furniture production to high-tech manufacturing, he said. “It’s incredible how quickly and how efficiently our people have adapted.”

For more information in how Virginia can meet any automotive company’s needs, contact David Hudgins of the Old Dominion Electric Cooperative at (800) 656-0220 ,e-mail dhudgins@odec.com, or go to www.odec.com.