The Roanoke region is full of optimism, job opportunities and investment — despite national economic headlines that often paint a discouraging picture. If the end of the year offers a time of reflection, then the Roanoke region of Virginia has plenty of great economic news to celebrate.
In 2023, our region achieved a record-setting year for announced job creation and investment. More people moved to the region than out. And other factors — including housing and labor force — showed signs of growth despite national headwinds involving inflation, high interest rates, housing shortages and overall economic insecurity.
This success isn’t a fluke. The strength and resilience of the regional economy is a result of partnership building and intentional strategic action. With thoughtful and sustained investment and leadership from eight local governments and more than 130 private sector investors, the Roanoke Regional Partnership and its local partners have developed next-generation business parks, engaged in placemaking and marketed the region around the globe. Gaps are filling in the talent pipeline and a productive workforce is being attracted and retained through meaningful collaboration with area colleges, universities and workforce partners.
We’re now seeing substantial gains because of long-term strategies that leverage the strengths of our region to provide economic benefits for citizens. That means we’re better positioned than ever for economic growth as we enter 2024.
Record-setting announced job creation and investment
In 2023, we saw announcements for more than 1,400 jobs and $165 million in new capital investment. This represents a tremendous level of new wealth and economic activity coming to the Roanoke region from a diverse mix of industries:
• Wells Fargo announced the largest job-creation investment in the Partnership’s 40-year history, with 1,100 jobs and $87 million in investment over the next five years to modernize and expand its customer support center in Roanoke County.
• STS Group AG, a German supplier of automobile and truck parts, picked the city of Salem for its North American headquarters, bringing new life to the former General Electric building while creating 119 jobs.
• Also in Salem, Layman Distributing, a small, woman-owned wholesale distributor, will invest $6.8 million to double its operations, creating 42 new jobs.
• Altec Inc. is investing $1.4 million to reconfigure its Botetourt County operation for a new product line, resulting in 150 new jobs.
• Wabtec Corp., a leading manufacturer for the heavy rail and rail transit industries worldwide, will invest $2.7 million to expand its existing facility in the city of Salem, creating 38 new jobs.
• New Belgium Brewery acquired the Botetourt County brewing facility from Constellation Brands, preserving 60 jobs and increasing the output of product brewed.
These developments will generate $387 million in new economic activity each year upon full implementation. The 1,449 new jobs will be augmented by roughly 928 induced and indirect jobs. The multiplier impact will support a variety of businesses throughout the region.
These announcements accelerate an already promising period. Employment growth from August 2022-August 2023 in the Roanoke Metropolitan Statistical Area was 1.5%. Job growth in Roanoke outpaced Lynchburg, Winchester, Blacksburg-Christiansburg-Radford and Virginia Beach-Norfolk Newport News.
In 2023, the Roanoke MSA saw manufacturing employment top 16,900, the highest since 2008, with 1,400 jobs added since late 2019. In fact, over 40% of the state’s manufacturing growth has occurred in the Roanoke region over the past three years. With Wells Fargo’s monumental investment, the region is poised to see significant growth in corporate services, further diversifying the economy in Western Virginia.
Positive in-migration
New jobs lead to new residents. Turns out, Roanoke is the second-fastest growing region by net migration in Virginia over the last four years, with migration exceeding that in Hampton Roads, Northern Virginia and Richmond, according to IRS data on migration.
Over 1,100 people moved to the Roanoke MSA since the 2020 census, according to the Weldon Cooper Center for Public Service. Why are people moving here? Great quality of life with access to world-class outdoor recreation are most often cited as reasons people choose our region, traits our Roanoke Outside initiative has been promoting and enhancing since 2010. Our outdoor story continues to pay dividends.
Record labor force growth
This past year, the Roanoke region’s labor force not only rebounded to pre-pandemic numbers, it surpassed the previous peak of 2014. More than 7,000 people have entered or returned to the workforce since 2019, reaching a high of 164,435 as of September 2023.
Standing at an all-time high, the region’s labor force continues to build, erasing nine years of slow loss prior to the pandemic caused by an aging demographic. This progress demonstrates the success of talent attraction and placemaking strategies we’ve been developing with partners to make our region a more desirable location for businesses and especially younger workers.
Get2KnowNoke, the region’s talent attraction brand, has reached and engaged Gen Z workers and young millennials who are especially drawn to our blend of mountain and metro — the mountains, rivers, hiking and biking trails, Smith Mountain Lake and fine dining, increased downtown, suburban and rural living options, and cultural activities. All in a scenic region with favorable climate and low cost of living. In fact, a site consultant who helped with the Wells Fargo expansion noted that the upward trend in attracting Gen Z workers was key to its decision to expand in the Roanoke region.
Housing boom
The Roanoke region has seen an influx of new and affordable apartments and single-family houses to support future growth, while at the same time other communities have struggled to develop more housing options. The development community is projected to exceed 1,165 housing units developed per year in the foreseeable future based on figures compiled by Moody’s Economy and S. Patz Associates. This represents nearly a doubling of affordable, multifamily units per year. This volume is a market response to growing demand, newly announced jobs, and a growing population — in short, a vibrant regional economy.
Our success stories — new investment and jobs, in-migration, labor force growth and new housing — position us for a promising economic future. Growth begets growth, and so there are plenty of reasons to be bullish on the Roanoke region at the end of 2023.
But nothing is given, and this success is not by chance. The outcomes we can all be proud of are only possible when local governments, private sector leaders, and higher education institutions all work together. Strong relationships with state government and partners like Virginia Economic Development Partnership are also crucial to our regional success. This exceptional regional collaboration has been cited by national site selectors as one of our strengths and a key advantage to being selected for specific marquee projects in 2023.
Together, we must continue to build on our hard-earned economic vitality. Our time is now. Our regional renaissance is just beginning.
John Hull is executive director of the Roanoke Regional Partnership, which serves as the point of contact for businesses looking to relocate and expand in the counties of Alleghany, Botetourt, Franklin and Roanoke, cities of Covington, Roanoke and Salem, and the town of Vinton.
