Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

World-Class Education & Infrastructure: Ranked #1 in Education and #2 in Infrastructure nationally (2025 CNBC ranking), providing a highly skilled workforce and excellent logistics network. High Competitiveness: Consistently ranked among the top 5 states for business (currently #4) and has a AAA bond rating.

Rising Business Costs: Cost of doing business and cost of living are relatively high, with the cost of doing business ranking dropping to #31 nationally.

Leverage Federal Access: The state's proximity to Washington D.C. can be leveraged for defense, national security, and government contracting businesses.

Federal Policy Volatility: State economy is highly dependent on federal spending, making it vulnerable to federal budget cuts and job losses (a cited reason for the drop in the 2025 rankings).

Domestic Manufacturing

Advanced Manufacturing Hub: Strong in life sciences and advanced manufacturing due to recent multibillion-dollar investments from companies like AstraZeneca ($4.5B) and Eli Lilly ($5B) in pharmaceutical production.

Limited Focus on Traditional MFG: Manufacturing's contribution to state GDP (around 7.3%) is lower than in some major US manufacturing states, indicating a smaller traditional industrial base.

Reshoring/National Security: Active efforts like the "Made in Virginia" program focus on accelerating reshoring and strengthening supply chains in national security-tied sectors (defense, shipbuilding, aerospace).

Workforce Shortages/Cost: Maintaining a sufficient, skilled workforce to support massive new advanced manufacturing facilities (e.g., pharmaceuticals) amid high living costs and a competitive job market is a persistent challenge.

Sustainability Initiatives

Coastal Resilience Leadership: Strong focus on coastal resilience and flood-risk financing due to sea-level rise issues, driving public-private collaboration on future-ready infrastructure.

Permitting Fragmentation: Fragmented and complex local permitting processes can slow down the development of essential infrastructure, including clean energy projects and data centers.

Clean Energy Investment: High focus on offshore wind (Port of Virginia as a staging port) and nuclear energy development, positioning the state to be a leader in clean energy production and technology.

Environmental/Political Conflict: Tension exists between major economic drivers (like data centers and industrial development) and community/environmental concerns (e.g., land use, noise), leading to legal challenges and project delays.

Balance of Trade & Global Contribution to Trade

World-Class Port: Home to The Port of Virginia, "America's Most Modern Gateway," which serves as a critical asset for global trade, logistics, and a staging port for new industries like offshore wind.

Exposure to Tariffs: Global trade volatility, including tariffs, negatively impacts the overall economy ranking, suggesting the state's international trade is sensitive to geopolitical tensions.

Global Supply Chain Optimization: The Virginia Maritime Association is actively hosting symposia focused on agile, tech-driven, and environmentally responsible supply chains, attracting global leaders and driving innovation.

Geopolitical Uncertainty: Vulnerability to global economic slowdowns and geopolitical uncertainty, which affects the high-volume shipping and logistics activities passing through the Port of Virginia.