Virginia Peninsula Economic Development Update - Fall 2025
By Bob McKenna, Virginia Peninsula Chamber
The Virginia Peninsula continues to make steady progress in advancing its economic development priorities, with momentum building around site readiness, workforce development, and industry growth.
Through the Virginia Business Ready Sites Program (VBRSP), Peninsula localities are positioning key properties—such as Newport News’ Carleton Advanced Manufacturing Site, AirCommerce Park, and assets in Oakland Industrial Park, Hampton and Newport News’ Copeland Industrial Park and York County’s King’s Creek Commerce Center—for future investment. While the most recent $40 million round of VBRSP funding awarded modest amounts to the Peninsula compared to other parts of the state, these sites remain strong candidates for accelerated characterization and development. The challenge is availability of large, contiguous parcels and the need for rezoning and infrastructure upgrades, but local EDAs are taking steps to prepare these properties for higher-tier VBRSP eligibility.
The recently enacted One Big Beautiful Bill Act (OBBBA) is expected to bring both opportunities and challenges. On the positive side, provisions such as full expensing for equipment and capital investment will encourage advanced manufacturers and maritime suppliers to modernize operations and expand capacity. This could be particularly beneficial for the Peninsula’s shipbuilding base, offshore wind supply chain companies, and technology firms in the growing Innovation District. However, localities also must weigh potential revenue trade-offs, as accelerated depreciation and tax incentives could reduce near-term state revenues that might otherwise support infrastructure and workforce initiatives.
Workforce readiness remains a central focus. The launch of the Virginia Peninsula Community College’s Newport News Trades Center will provide state-of-the-art training facilities for skilled trades, directly supporting maritime and advanced manufacturing jobs. This complements the Hampton Roads Workforce Council’s Maritime Workforce programs, which are already aligning training with employer demand, expanding apprenticeship pipelines, and helping to fill critical shortages in ship repair and new construction. Together, these initiatives are expected to produce hundreds of job-ready workers annually, easing one of the Peninsula’s most pressing economic bottlenecks.
The offshore wind industry stands to gain from both OBBBA incentives and the region’s growing workforce infrastructure. With billions of dollars in planned offshore projects through the Port of Virginia, tax incentives that lower the cost of equipment and supply chain investment could accelerate the establishment of advanced manufacturing, aviation-related industry, staging, and logistics hubs on the Peninsula. The key will be ensuring that sites like Carleton Advanced Manufacturing Site and AirCommerce Park are fully prepared to host these emerging industries.
In summary, the Peninsula is moving forward on multiple fronts—preparing business-ready sites, leveraging federal and state tax policy, and investing heavily in workforce training. The combined effect positions the region to capture growth in shipbuilding, offshore wind, and advanced manufacturing, while continuing to strengthen its economic resilience.