Optimistic About the Futureand With Good Reason to Be

Fifteen years ago, Rich-mond, Va., was a placeyou drove through toget to someplace youreally wanted to go.That’s what Greg Wing-

field read in his image survey as hetook the reins of the newly createdGreater Richmond Partnership near-ly 15 years ago. It was the begin-ning of an economic revival of oneof the South’s greatest cities.Today, the Greater Richmond area isa mecca of corporate headquarters,Fortune 500 and 1000 companies,the coveted biotechnology cluster,and a myriad of international andhighly technical industries. Thissuccessful economy is the result offocused planning, strategic market-ing and unified teamwork betweenthe public and private sectors.

Asked about the challenges ofthose early days, Wingfieldrecounts, “Our biggest challengewas teaching the public and privatesides to work together and our

biggest opportunity was that wehad no public perception eithernegative or positive.” So Wingfieldand his team started reminding theglobal community that business inthe New World started in Richmond.In fact, the Greater Richmond areawas a place of many “firsts” – trol-ley cars, aluminum cans, teachinghospital, credit cards and the list ismuch longer.

“Richmond, for its entire histo-ry, has been a place where uncon-ventional thinking has takenplace,” says John Adams, presidentof the Martin Agency, which wastasked with helping Richmond rein-vent its “brand.” He cites as evi-dence Patrick Henry’s “Give MeLiberty” speech and ReynoldsAluminum creating a whole newindustry – oh yes, and the creationof CarMax and a whole new way tobuy cars. “Richmond has long beena community of creative thinkersand innovators, and today, businesswants to be in a place where

Greater Richmond

Fifteen yearsago, Richmond,Va., was a placeyou drovethrough to getto someplaceyou really want-ed to go…Today,the GreaterRichmond areais a mecca ofcorporate head-quarters,Fortune 500 and1000 companies,the covetedbiotechnologycluster, and amyriad of internationaland highly technical industries.

The Virginia BioTechnology ResearchPark is located on 34 acres adjacent tothe VCU Medical Center. Pictured here isBioTech Center One, home to graduatesof the Park's incubator program.

Virginia Commonwealth University (VCU) has itstwo campuses in Greater Richmond.

By Beth Braswell

VCU's School of Engineering offers a variety ofspecialized programs.

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Greater Richmond O p t i m i s t i c A b o u t t h e F u t u r e

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creativity and innovation flourish.”A great example of a local company

that fits this description is Mead-Westvaco(MWV), which develops innovative con-sumer packaging solutions. According toJohn A. Luke Jr., MWV chairman and CEO,company leaders saw the GreaterRichmond area as an excellent venue togrow their business.

A major part of Richmond’s success,too, has been the regional approach tosuccess. The Greater Richmond Partner-ship includes Virginia’s capital city,Richmond, and the counties of Chester-field, Hanover and Henrico.

Some of the first evidence that theGreater Richmond Partnership was a”player” in the big game was provided

by Motorola, quickly followed by a $3.3 billion Brinksproject, then GE Financial. The big names made a bigimpact. In 2005 Philip Morris announced it was

Greater Richmond's convention center has more than 70,000square feet for meetings and events.

Greater Richmond Advantages

� Highly educated andproductive work force;moderate cost of living

� Diverse economy with 13Fortune 1000 headquarters;pharmaceutical, chemical,biotech, semiconductor andother 21st centurymanufacturers

� Located at a mid-point on theEast Coast with Interstates 64,95, 85, and 295 converging inthe metro area

� State-of-the-arttelecommunications infrastruc-ture along with ready-to-gosites and buildings for a varietyof industries; building costsmore than 11 percent below the national average

� Cultural and recreational opportunities of a largecity with an average 24-minute commute

VCU is home to 32,000 studentsstudying in 205 programs.

Richmond's Agecroft Hall, a Tudor estate imported fromEngland, sits on the banks of the James River. It hosts avariety of community events.

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moving its headquarters from theBig Apple to the Greater Richmondbusiness community. Then, in 2006,another “catch” was added to thelist; Mead Westvaco announced itwould move its headquarters fromConnecticut in 2009 and occupy anew building on the downtown revi-talized riverfront.

In fact, Wingfield says thePartnership has worked with morethan 370 companies since theagency’s inception, bringing morethan 122,000 net new jobs and morethan $6.2 billion in capital invest-ment. More than 140 of these com-panies are international. Asked what

entices international companies to take a look at theGreater Richmond area, Wingfield states that this iswhere American business started. Taking care of glob-al interests means having international baccalaureateprograms in the schools and international associationsthat provide a comfort level. It is the ability to beabsorbed effortlessly into a community by havingrestaurants, grocery stores and religious organizationsthat represent a multitude of cultures. “GreaterRichmond provides all the amenities of a New York or

Los Angeles but with an average 24-minute commuteand a family-friendly atmosphere,” Wingfield touts.

Jack Nelson, president of operations and technol-ogy at Philip Morris, was open about some of the dif-ferences he found when the company moved from NewYork: “One of the contrasts we found: If we had anissue that we wanted to talk to the governor or themayor about, we could call and get an appointment.There’s recognition by the Virginia government thateconomic development is one of the most importantthings to make the community and the citizens havebetter lives.”

A great many others have noticed the appeal ofthe area. Most recently named “One of the nation’s 10best places for business and careers” by Forbes, theGreater Richmond area is now acknowledged as aleader in numerous categories: The South’s Top TenLocation for the Creative Class, a 5-star metro area forknowledge workers, hot headquarters metro, top 20places to educate your children. Look on thegrpva.com Web site under “accolades” to get the woweffect of all the recognition.

No longer just a bump in the road halfway betweenBoston and Atlanta, the Greater Richmond area hasemerged as one of the South’s best business locationswith 13 Fortune 1000 headquarters, a growing clusterof biotechnology and life science companies, and anenviable presence of international companies. �

No longer just a bump in the

road halfway between Boston and

Atlanta, the Greater Richmond

area has emerged as one of the

South’s best business locations

with 13 Fortune 1000 headquar-

ters, a growing cluster of biotech-

nology and life science companies,

and an enviable presence of inter-

national companies.

Greater Richmond O p t i m i s t i c A b o u t t h e F u t u r e

A Melting Pot ofSuccessesThe Greater Richmond business

environment features a diverse econ-omy from entrepreneur to worldwideheadquarters and from dot-coms tosoy sauce. Here is just a sampling ofwhy some of these companies findGreater Richmond a successful busi-ness choice:

MEAD WESTVACO CONSUMER PACKAGING SOLUTIONS

“MWV has had a presence inVirginia for many years. MWV selectedthe city of Richmond as the locationfor its corporate headquartersbecause it best met our needs for sev-eral reasons:

� It allows us to be an activeparticipant in the vibrant andthriving Greater Richmondcommunity;

� The city riverfront location offersus ready access to downtownevents, local business services,and government officials; and

� Being central to the entireRichmond area provides ouremployees, who travel from allthroughout the region, with easyaccess to our facility.

“Richmond’s pro-business envi-ronment, reasonable cost structure,access to a talented work force andthe overall quality of life make it theright place for MWV’s headquarters.”

—John A. Luke Jr., Chairman andCEO, Mead Westvaco

SAN-J TAMARI SOY SAUCE, COOKINGSAUCES, SALAD DRESSINGS, SOUPS

Established by the Sato family in1804, today the company is still fam-ily-run, brewing their premium Tamarisoy sauce in a traditional Japanesemethod. The company was founded inMie, Japan, in a climate and geo-graphical setting very similar toRichmond. Hot, humid summers andchilly winters are ideal for Tamari fer-mentation. Greater Richmond alsooffered access to vital roadways andrail distribution, which were impor-tant in choosing a North Americanheadquarters. Facilities include pro-duction, R&D, sales and marketing.San-J shipped its first Virginia-grownproducts in 1988.

GETLOADED.COM FREIGHT MATCHINGSERVICE

With its beginnings as a home-based business in Chesterfield County,Getloaded.com has grown to 59employees, providing services to morethan 42,000 companies as the third-largest freight matching service.Getloaded.com has realized a 40 per-cent increase in each of its past fouryears, now helping to move more than140,000 loads per day. The companyhas tapped into numerous local busi-nesses as valuable and integralresources in its success including Website hosting, programmers, call centerand computer requirements. With agoal of being the number one freight-matching service in the U.S.,Getloaded.com has plans for contin-ued expansion.

ALFA LAVAL HEAT TRANSFER SEPARATION AND FLUID HANDLING

“Greater Richmond is a uniqueand ideal area for Alfa Laval to driveits business into its wide range ofmarkets throughout the U.S.A. As aninternational engineering and manu-facturing company with worldwideoperations, Richmond’s proximity tomajor ports and efficient domestictransportation routes are keys to serv-icing our customers.

“Since locating in Virginia in1990, we’ve found that Greater

Richmond is rich in a diverse and tal-ented labor pool that has allowed usto further strengthen our competen-cies in all functions of our organiza-tion to support our mission of opti-mizing the performance of our cus-tomers’ processes, time and timeagain. In addition, we have devel-oped sound relationships with manyof the excellent educational institu-tions in Richmond and throughout theregion from which we can draw onnew talent to enhance our team as wereach and grow into the future.”

—Alessandro Terenghi, Presidentand CEO, Alfa Laval Inc.

PHILIP MORRIS/ALTRIA GROUPTOBACCO COMPANY

Incorporated as a small tobaccocompany in New York City in 1902,the headquarters for PM USA and itsparent company, Altria Group, now arelocated in Richmond. As the nation’sleading cigarette manufacturer, thecompany also has the highest rev-enues, income, volume and marketshare among U.S. tobacco companiesfor more than 20 consecutive years.PM USA offices and facilities includeits headquarters, the Center forResearch & Technology, manufactur-ing, processing and support facilitiesin the Greater Richmond area. JackNelson, president of PMUSA, creditsthe high quality of life and educatedwork force as a reason for moving toGreater Richmond. “It’s in the midstof one of the finest state universitysystems in the world. It offers a lowercost of living on the East Coast, espe-cially compared to the Northeast,which means it’s easier to attractemployees. Richmond also offers afamily-friendly environment.”

Other well-known names you’llfind in Greater Richmond:� CarMax Used car retailer� Performance Food Group

Foodservice distribution� The Brink’s Company Global

security services� Genworth Financial Global

financial security � Owens and Minor Health care

wholesaler

In February 2008, Aspen Productsannounced it would invest $12 millionin Richmond's Southside to build apaper goods manufacturing facility.

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Greater RichmondO p t i m i s t i c A b o u t t h e F u t u r e

In May 2008, Mazda opened a new technicalcenter in Chesterfield County where it willrebuild engines.

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T he Greater RichmondPartnership took the firstyear of its existence to focus

on the plan, identify the goals andsolidify the five-year metrics. “Wewanted to sell the unique proposi-tion that could make a differenceand be a tipping point,” says GregWingfield, president and CEO ofthe Greater Richmond Partnership.

One of the immediate strengthsthe team identified was educationand, in particular, VirginiaCommonwealth University (VCU).The area has 10 colleges and uni-versities, but VCU is Virginia’slargest university with nearly32,000 students. With two down-town campuses in Richmond, VCUhas established itself as a domi-nant player in life sciencesresearch and plays a key role inattracting industry. Typical of aforward-thinking culture, VCU con-tinually is pioneering new ven-tures. VCU recently introduced theDaVinci Lab, which provides forcollaboration from the businessschool, the design school and theengineering school for innovativeproduct development. It also con-ducts leading-edge research oneverything from material sciencesto nanotechnology – all focused onthe development of new productsfor the life sciences industry. Inaddition, VCU’s Brand Center isarguably the nation’s most honoredand highest-ranking think tank,turning out the cream of the nextgeneration of marketing gurus.

What a great resource for adevelopment group identifyingmarket opportunities. However,

A great economic developer once said: “If you fail to plan, you plan to fail.”

Lesson: How to take a ‘good’ location and turn it into something great

(Above) Carytown is Richmond's urban retail districtfeaturing over 300 shops, restaurants, and offices.

Greater RichmondO p t i m i s t i c A b o u t t h e F u t u r e

Southern Business & Development | SPRING 2008 | 61

key weaknesses were addressedalso. Wingfield identifies one of hisgreatest accomplishments as theattraction of two low-cost air carri-ers: JetBlue and AirTran. “If wewere going to continue to grow, weneeded to improve airfares,” hesays. “There was a new terminalthat was going to be built, so wehad a window of opportunity tosell Greater Richmond, the newterminal and new parking. Wewanted to be more attractive.”

Today, “quality of place” is list-ed as another key attribute withthe area’s remarkable architecture,arts and culture, and many outdoorrecreation opportunities. However,15 years ago, downtown Richmondfaced a similar fate as so manycities, losing its people, business,luster and vitality. Richmond has alarge stock of historic buildings,many of which sat vacant fordecades. Developers now have ren-ovated a vast majority of them,taking advantage of state and fed-eral tax credits. Centuries-oldtobacco warehouses now are con-verted into spacious lofts andimpressive office spaces. Over thepast 10 years, downtown Richmondhas made a dramatic comeback andnow is home to almost 7,000 resi-dents and more than 80,000employees. “The entire region hasbenefited from the downtown’sresurgence, as companies seekingto locate here are glad to find thatthere is an active cultural scene, anauthentic and vibrant urban envi-ronment, and a great supply of loftapartments for their young, profes-sional employees,” explains JackBerry, executive director of VentureRichmond, which engages businessand community leaders in partner-ing with the City to enhance com-munity vitality. There is a bustlingarts scene with 20 art galleries,three recording studios, dozens of

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clubs and two new 1,400-seatmusic venues; and a long-awaitedperforming arts center currentlyunder construction.

The downtown office market isanchored by state government,regional banking headquarters,major law firms, brokerage firms,ad agencies, the VCU MedicalCenter, the Richmond FederalReserve Bank, and Fortune 500companies, including DominionResources, MeadWestvaco (MWV)and New Market Corp. Recently,Philip Morris USA completed a$350 million research and tech-nology center downtown, provid-ing a big boost to the scientificcommunity, while MWV brokeground for a new nine-story cor-porate headquarters along theJames River.

There was another piece ofdeserted Richmond property thathas turned into an economicjewel. Around 1991, the idea for alife sciences research park wasfloated around and a former urbanrenewal site of 34 acres was beingeyed. Around the time ofInterstate-95 construction, theland was leveled for surface park-ing lots. It was an area that newdevelopment wouldn’t consider.Through teamwork among thecity, the university, the state andthe business community, the ideabecame a reality. “No one under-stood the challenges of what itrequired to pull this off,” saysRobert T. Skunda, CEO of theVirginia Biotechnology ResearchPark. “Greater Richmond is now arecognized center for life sciencesand research as well as business. Ifyou want to build a cluster in lifescience, you have to have criticalmass; you have to have recogni-tion to separate you from thecompetition. We have accom-plished that in the past 15 years.

We have done that based on thereputation of VCU.”

Yet another monstrous plan isnow in the works. “It’s like build-ing another small city within yourmetropolitan area,” explainsDennis K. Morris, executive direc-tor of the Crater Planning DistrictCommission. He’s referring to theseven installation military consol-idation that will benefit Fort Lee,providing an additional 20,000inhabitants. This major trainingcenter for the U.S. Army is locat-ed just 25 minutes south of down-town Richmond. With $1.2 billionworth of construction alreadyunder way, all facets of this radi-cal growth are being addressed:roadway enhancements, schoolimpact, available housing, andopportunities for the trailingspouse. Morris says area employerswill be beneficiaries of the fort’sgrowth. The local community col-lege offers a military spouse pro-gram, matching them up withprospective employers andenhancing skill sets. Additionally,this base will be a high-technolo-gy center with a focus on armylogistics.

“There are a lot of people whowill complete their Army careershere and will look for secondcareers in the area. They bring agreat skill set to local employers”Morris says. The first influx oftransplants will occur in 2010 andultimately will result in a total of40,000 people on base. Oncebuild-out is complete in 2013,facility space will have doubled to15 million square feet and theestimated economic impact will be$1.5 billion on the GreaterRichmond economy. �

In 2006, Bass Pro Shops announced plans tobuild an outdoor superstore in Hanover County.

Richmond's historic Monument Ave. isthe only street in the U.S. that is ahistoric landmark. Pictured here is theRobert E. Lee Monument.