Unlocking Hampton Roads is your resource for economic development and international business expansion in the region, delivered monthly to your inbox by the Economic Development Task Force at Willcox Savage.

MAY 2025

In This Edition

Feature | Unlocking Economic Opportunities in Our Region: Insights from Economic Development Experts, register to join us on June 10th

Here & Now | Update on Federal Budget for Military by Kevin Cosgrove

Word in the ‘Roads |Digest of significant press releases and investment announcements from over 40 of the region’s economic development authorities, alliances, chambers, incubators, and local governments

Legislative Affairs & Regulatory Compliance | Congress is considering major changes to the Opportunity Zone program through legislation

Where’s WilSav | Catch up with attorneys on our Economic Development Task Force at the region’s upcoming conferences and conventions

Willcox Savage Business Solutions Series | Watch the recording from this month's program, Navigating OSHA's Dynamic Landscape

You’re Invited | Invitation to join us for lunch on June 10th for the Economic Development Roundtable featuring insights from regional leaders

Speakers

Guest Panelists:

Doug Smith

President & CEO, Hampton Roads Alliance

Christian Green

Director of Economic Development, Virginia Beach Economic Development

Preston Wilhelm

Deputy Director of Economic Development, Chesapeake Economic Development

Andrew Nissman

Director of Grants and Corporate Stewardship, Hampton Roads Workforce Council

Moderated by:

Lisa Murphy

Member & Land Use Attorney

James ‘‘Jimmy’’ Wood

Member & Business Immigration Attorney

Unlocking Economic Opportunities in Our Region: Insights from Economic Development Experts

Join us for a powerhouse speaker program featuring a dynamic panel of top-tier economic development experts who are driving transformation across the region. This is your front-row seat to the inside track on what’s shaping our business landscape—and how you can take full advantage.

What to Expect:

Available Incentives: Discover the financial tools, grants, and tax credits that can jumpstart your next move.

Targeted Industries: Learn where the region is placing its bets—from advanced manufacturing to high-growth tech—and how your business fits in.

Role of Professional Service Providers: Hear how consultants, attorneys, CPAs, and other pros can be your strategic partners in navigating expansion and opportunity.

Support for Existing Companies: Already operating in the region? Find out what resources are available to help you grow, innovate, and thrive.

Workforce Needs & Solutions: Dive into the current and future talent pipeline—what skills are in demand, how to find the right people, and how the region is tackling workforce development head-on.

Whether you're a business owner, site selector, investor, or advisor, this program will equip you with the knowledge and connections to make your next move with confidence.

Register to Attend

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Here & Now

Hampton Roads -- A premier destination for international businesses

Update on Federal Budget for Military | Trump’s FY2026 Budget Hints at Big Gains for Hampton Roads as Navy Fleet Expansion Spurs Demand for Ship Repairs

On May 2, 2025, the Office of Management and Budget (“OMB”) released President Trump’s “Skinny Budget” for fiscal year 2026. The Skinny Budget is a high-level overview of the Administration’s priorities. It does not contain any detailed budget analysis. OMB will release the comprehensive budget document later this summer.

The Department of Defense’s (DoD”) total budget is proposed to be $1.01 trillion. That is an increase of 13% over DoD’s budget for fiscal year 2025. The Skinny Budget does not provide a breakdown of dollars proposed to be allocated to the individual armed services. For fiscal year 2025 the Navy’s budget was $257 billion. The Skinny Budget promised to “expand U. S. shipbuilding capability by investing in America’s shipyards and industrial base, increasing wages and modernizing infrastructure.”

With the exception of Newport News Shipbuilding, our market does not build ships. Instead, our sweet spot is ship repair. The Navy’s stated intent is to increase the size of its fleet. That will require vessels to stay in service longer, thus requiring more repair services. Spending additional dollars for ship repair, in addition to ship building, would be a home run for our region. Let your elected Federal officials know your desires in this area.

Kevin Cosgrove

kcosgrove@wilsav.com

Kevin's practice focuses on construction litigation, government contracts, and maritime matters. As a former city attorney, he is also well versed in land use advice and litigation matters. Kevin sits on the board of the Chesapeake Economic Development Authority.

Word in the ’Roads

Recent press releases from the regional economic development authorities

Solenis To Invest Additional $76 Million In Suffolk Manufacturing Operation

SUFFOLK, Virginia (May 13, 2025) Solenis, a global leader in specialty chemicals for water-intensive industries, will invest an additional $76 million at its manufacturing operations in Suffolk, bringing the planned total capital investment to $269.4 million. Previously announced by Virginia Governor Glenn Youngkin in January 2024, the project has now grown in scope.

The company will construct an 80,000-square-foot production and packaging facility, an industrial tank farm, and a new rail spur to support the growth of its polymer product line and increase production capacity. These polymers are critical to global paper and cardboard manufacturing and other essential industrial applications.

The expansion is expected to create 38 new permanent jobs, adding to the current workforce of 110. A groundbreaking is expected later this month, pending final building permits. Construction is slated for completion by the end of 2026, with full operations beginning in spring 2027.

DroneUp’s Skyrocketing Success: Revolutionizing Healthcare Delivery and Inspiring Hampton Roads Innovators

DroneUp, founded in 2016 in Virginia Beach, has grown from a local startup to a national leader in drone technology, known for its FAA-certified pilots and advanced flight software. Their latest venture? A game-changing pilot program in Traverse City, Michigan backed by a $1.64 million investment from Michigan’s Advanced Aerial Mobility Activation Fund.

Partnering with Traverse Connect, Munson Healthcare, and others, DroneUp is powering a drone delivery system that’s slashing transit times for medical supplies, lab samples, and medications across rural Northern Michigan. In a region where healthcare staff log over 90,000 miles annually by road, DroneUp’s drones—equipped with low-resolution safety cameras and tether systems—complete deliveries in mere minutes, like a 4-minute flight from Munson’s Copper Ridge Surgery Center to Munson Medical Center.

Sumitomo Drive Technologies to Automate Warehouse and Distribution Center in Chesapeake

HAMPTON ROADS, VA — The Virginia Economic Development Partnership today announced that Sumitomo Drive Technologies, a global power transmission manufacturer, will invest $9.3 million to automate a warehouse and distribution center in the City of Chesapeake. The company will retrain 42 employees, the majority of whom will be retrained to operate the new automated warehouse.

Sumitomo Drive Technologies, a brand of Sumitomo Machinery Corporation of America, manufactures power transmission and control products for a variety of applications serving customers in food and beverage, parcel handling, automotive and mining. The company’s headquarters facility in Chesapeake, Virginia, broke ground in April 1988 and continues to supply Cyclo, BuddyBox, Hyponic and Paramax products to customers across the United States.

HII is Awarded Contract Modification for Construction of Two Additional Block V Virginia-class Submarines

NEWPORT NEWS, Va., (April 30, 2025) — HII (NYSE: HII) announced today that the Virginia-class shipbuilding team, which includes the company’s Newport News Shipbuilding (NNS) division, has been awarded a contract modification in support of construction of two fiscal year 2024 Block V submarines.

The contract modification, to NNS and teaming partner General Dynamics Electric Boat, authorizes construction of the 11^th and 12^th fast-attack submarines of the Block V contract.

NNS and GDEB have built and delivered 24 Virginia-class submarines to date.

Phenix Commerce Center Lands its First Tenant

May 1, 2025 -- An international e-commerce provider has signed on as the first tenant at the new Phenix Commerce Center in Hampton.

Cirro Global, also known as US Elogistics Service Corp., is an e-commerce fulfillment, warehousing and logistics provider. The company has leased 149,685 square feet in one of the new buildings at 30 Aberdeen Road. The real estate broker, Colliers, made the announcement on Thursday morning on behalf of NorthPoint Development, describing it as "the largest warehouse lease in the Hampton Roads region for a newly constructed Class A facility in over a year."

NorthPoint Development completed construction on the park in January, with two buildings totaling 834,000 square feet. Because of its central location and proximity to the Port of Virginia, Hampton is considered prime territory for new warehouse space, especially with the progress being made on the Hampton Roads Bridge-Tunnel Expansion Project.

Legislative Affairs & Regulatory Compliance

Navigate the political and regulatory landscape with confidence and precision.

Hampton Roads May Gain or Lose Under New OZ Rules

Congress is considering major changes to the Opportunity Zone program through legislation* introduced May 12, 2025. Current OZ designations would expire December 31, 2026, with new designations running January 1, 2027 through December 31, 2033. Key changes include tightening income eligibility, requiring at least one-third of designations in rural areas with enhanced tax benefits, and allowing $10,000 annual ordinary income investments.

Hampton Roads faces uncertainty in the redesignation process, as tighter eligibility criteria could exclude some current zones. The new 70% median income threshold (down from 80%) may disqualify tracts that have experienced economic improvement since 2018, while the elimination of contiguous non-low-income tract designations could further reduce eligible areas.

However, opportunities exist if Hampton Roads areas qualify for rural designations under the new criteria. Rural OZs would receive enhanced benefits including a 30% basis step-up (versus current 10%) and reduced substantial improvement requirements from 100% to 50% of original basis, making projects more financially viable.

*See Renewal and Enhancement of Opportunity Zones, from House Ways and Means Committee’s 389-page reconciliation bill, aka, ‘‘One, Big, Beautiful Bill’’, p. 158-165.

Where’s WilSav

Hope to see you at these upcoming events

Virginia Peninsula Chamber Economic Forecast | June 6th

Catch up with William Tew at The Economic Forecast Mid-Year Breakfast is a partnership event with the Old Dominion University Dragas Center at which economists present their annual economic forecast for the Hampton Roads region.

Hampton Roads Chamber Blueprint Virginia 3035 Regional Tour| June 11th

Catch up with Kevin Cosgrove at The Hampton Roads Chamber Blueprint The Economic Forecast Mid-Year Breakfast is a partnership event with the Old Dominion University Dragas Center at which economists present their annual economic forecast for the Hampton Roads region.

Southeastern Admiralty Law Institute | June 19th-21st

Catch up with Chris Abel & Mike Collett at the annual seminar of the Southeastern Admiralty Law Institute. SEALI was founded to provide a forum for the discussion of admiralty and maritime law, and its practice and administration, among practitioners in the ports of the Southeastern United States.

Snapshots

Where We’ve Been

Lisa Murphy Attends the Community Preview Opening of The Dome| Apr. 2nd

The Dome is a new indoor-outdoor music venue in Virginia Beach, Virginia, officially opened on May 2, 2025. The venue is part of the larger Atlantic Park project which includes a hotel, apartment building, restaurants, and a surf park. and is located on the footprint of the original Dome, which closed in 1994. The Dome has a seating capacoty of 5,000 and is expected to host about 100 events per year.

Kevin Cosgrove at LS GreenLink Groundbreaking Ceremony | Apr. 29th

LS GreenLink USA, Inc. (“LS GreenLink”), a subsidiary of LS Cable & System Ltd. (“LS Cable & System”), today officially commenced construction on its state-of-the-art manufacturing and port facility in Chesapeake, Virginia. This significant project represents a major advancement in bolstering global energy infrastructure, with the initial phase representing an investment exceeding $681 million and the creation of more than 330 new jobs in the region.

The initial phase of the development will encompass a 750,000 sq. ft. advanced manufacturing plant, a 660-foot VCV (Vertical Continuous Vulcanization) tower, and a dedicated pier, all designed to enhance the production, handling, and global delivery of HVDC (high-voltage direct current) submarine cables critical to modern energy infrastructure. The 660-foot VCV tower is projected to be the tallest structure in the Commonwealth of Virginia and the tallest structure between Philadelphia, Pennsylvania, and Charlotte, North Carolina, underscoring the facility’s significant contribution to the regional skyline.

William Tew attended Bauma 2025 in Munich, Germany | Apr. 7-13th

Bauma is the world’s leading trade fair for construction, building material and mining machines, construction vehicles and construction equipment.

Willcox Savage Business Solutions Series

Our lunch and learn speaker series delivering timely and operation-critical information to businesses operating in Hampton Roads

Navigating OSHA’s Dynamic Landscape: Key Insights for Employers | May 20th

For Virginia employers, particularly those with multi-state operations, navigating OSHA’s evolving landscape will require a proactive approach to staying apprised of the latest developments and their potential impact on their industry, projects, workers and safety programs. Join us in-person, or remotely for a 1-hour presentation by Joe Moriarty on OSHA's shift in its operational approach and enforcement priorities.

ICYMI, watch the recording | Download the Virginia Employer OSHA and VOSH Guide

Economic Development: Unlocking Economic Opportunities in Our Region | June 10th

A panel of local economic development professionals will highlight key resources available to support business growth, with a focus on targeted industries, how professional services can provide critical support throughout the business lifecycle, and expansion programs, grant opportunities, and infrastructure support are offered for companies already operating in the region. We'll also address local workforce needs and opportunities to build a strong talent pipeline.

Join us in-person, or remotely.

Virginia Employment Law Update: What You Need to Know Now | August 12th

Details coming soon..

Email us to show interest.

You’re Invited

Join us on Tuesday, June 10th for a powerhouse speaker program featuring a dynamic panel of top-tier economic development experts who are driving transformation across the region.

In-person | Webinar

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