CONTACT: Jenna Wines
jwines@vamanufacturers.com
FOR IMMEDIATE RELEASE: December 20, 2024
Virginia Ranks 9th in Competitiveness Index
-Drops from Previous 7th Place Position-
Richmond, VA – The Virginia Manufacturers Association (VMA) released the 2024 Manufacturing Competitiveness Index results. Virginia is ranked 9th nationally, a decline from its 7th place position in the previous year.
The annual rankings evaluate states based on 57 metrics critical to manufacturing success and five key indexes: business climate, workforce, infrastructure, innovation, and economic strength. Virginia’s performance across these categories reflects both areas of strength and opportunities for improvement:
- 3rd in Business Climate: In the 2023 Index, Virginia was tied at 6th with Tennessee. Virginia is now ranked as the 3rd most competitive state and 2nd in all Southern states. Virginia continues to foster a favorable business environment for manufacturers through supportive tax policies, regulatory efficiencies, and a collaborative approach to economic development.
- 5th in Workforce: Virginia’s workforce competitiveness continues to be good. It improved from 6th ranked in 2023 to 5th ranked in 2024, ranking second among Southern states. The Commonwealth’s commitment to workforce development programs and technical education has kept Virginia among the top states for manufacturing talent.
- 18th in Infrastructure: Infrastructure is a critical area for manufacturers, and Virginia is ranked 18th in the nation (down from 7th in 2023) and is now the 8th highest-ranked Southern state. Declines in freight shipments and increases in natural gas prices contributed to the loss in position.
- 28th in Innovation: Virginia improved in rank in the Innovation Index from 34th in 2023 to 28th in 2024, remaining in the middle of the Southern states. The state’s ranking underscores a need for improved intellectual property licensing and contracting involving universities and higher education institutions.
- 40th in Economic Strength: Virginia’s position fell to 40th from 35th in 2023. This ranking highlights challenges in growing its overall Gross State Product manufacturing share and addressing competitive pressures from competing with other states.
“While we celebrate Virginia’s continued position as a top 10 state for manufacturing, the drop from 7th to 9th underscores the need for targeted action,” said Brett Vassey, President & CEO of the Virginia Manufacturers Association. “Our strong business climate and workforce provide an excellent foundation, but it is imperative that we focus on the fundamentals of operational costs and expanding economic opportunities for manufacturers to remain globally competitive.”
The VMA emphasizes that Virginia’s ranking is not just a number but a reflection of the collective efforts of policymakers, businesses, community leaders, and educators to support the manufacturing sector—a cornerstone of the state’s economy. Manufacturing contributes over $45 billion annually to Virginia’s GDP and employs nearly 10% of the state’s workforce.
In the coming months, the VMA will issue a revised Virginia MFG Competitiveness Plan that will identify specific public policies necessary to adopt by 2027 to rank 1st for manufacturing in the U.S.
About Virginia Manufacturers Association (VMA)
The VMA develops and advocates for constructive public policies and supports a broad array of business services and programs to help ensure that Virginia manufacturing companies can be productive, profitable, and competitive in Virginia. Virginia’s 6,000+ manufacturers employ over 239,000 individuals, contribute $49.5 billion to the gross state product, and account for over 80% of the Commonwealth’s manufactured goods exports to the global economy. For more about the VMA, please visit vamanufactuers.com.