Economics of Virginia
earliest Virginia site for manufacturing glass (1608 and 1621-22) and "reconstructed" furnace at Jamestown
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Businesses do not locate their facilities at random, by throwing data at a map or looking at just the sources of labor and raw materials. State, county, and city governments are active players in attracting private sector businesses and non-government organizations to locate in a particular area.
Your tax dollars are also used to retain jobs and property taxes, when other governments try to entice existing companies in Virginia to move to another location. For example, Virginia's A.L. Philpott Manufacturing Extension Partnership (VPMEP) was described in a news release1 as follows:
- The partnership, based in Martinsville and named after the late House Speaker A.L. Philpott of Bassett, works to improve the manufacturing capabilities and global competitiveness of manufacturers through offices in Danville, Harrisonburg, Lynchburg, Newport News, Norfolk, Richmond, Roanoke, Winchester and Wytheville. Internal VPMEP resources are supplemented by private consultants, community colleges, universities, and government agencies. VPMEP partners with Virginia's Center for Innovative Technology to provide access to high technology resources across the Commonwealth.
- In addition, VPMEP works in partnership with the Technology Applications Center (TAC) at Old Dominion University and the Manufacturing Technology Center (MTC) in Wytheville to bring services to manufacturers from Hampton Roads to Southwest Virginia:
- The Manufacturing Technology Center in southwestern Virginia is a consortium of five community colleges and is funded by VPMEP, the Commonwealth, CIT, and federal grants. It provides technology deployment and manufacturing modernization services in southwestern Virginia.
- The Technology Applications Center at Old Dominion University is funded by VPMEP and CIT. It primarily provides faculty-based engineering services to manufacturers for high technology product and process prototype development and testing in the Hampton Roads area and across Virginia.
VPMEP is based in Martinsville in part because A. L. Philpott was the powerful Speaker of the House of Delegates and he represented Pittsylvania County. Even
before passage of the North American Free Trade Act (NAFTA), the textile, furniture, and other manufacturing businesses were reducing work hours and closing plants.
The state and the local governments recruit companies that could provide high-wage manufacturing jobs to replace the companies that are leaving are reducing hours.
The Certified Business Location program, begun in the latter half of the 1980s, required each locality to establish an Industrial Development Authority, formalize their industry targeting activities, and establish other processes in support of industrial development. However, the Virginia Department of Economic Development no longer offers the certification. (What's the point of a certification if everyone has received it?)
1. "Governor Warner Announces Grants to Virginia Manufacturing Partnership," August 15, 2002 news release from Governor Mark Warner, www.governor.state.va.us/Press_Policy/Releases/Aug2002/0815c.htm"www.governor.state.va.us/Press_Policy/Releases/Aug2002/0815c.htm (last checked August 24, 2002)
inside Potomac Mills