Virginia Beach Launches Military Economic Development Initiative
The city of Virginia Beach's Department of Economic Development is actively courting businesses that leverage the region's large military presence. Guided by its Military Economic Development Advisory Committee, the initiative aims to capitalize on the local skilled workforce and technical expertise. The strategy seeks to foster innovation and create new economic opportunities tied to the defense sector.
The Hampton Roads region, where Virginia Beach is a key city, is home to 18 military installations representing all six service branches. This includes the world's largest naval base, Naval Station Norfolk, and a total of approximately 120,000 active duty, reserve, and civilian personnel. The military's presence accounts for about 40% of the Hampton Roads area's $136 billion gross regional product. Direct Department of Defense spending in the region was projected to be around $29 billion in 2024, with military-related work comprising roughly one-third of the local economy. This initiative marks a strategic pivot for the region's economic developers. After previously attempting to diversify away from federal budgets, local leaders are now intentionally "doubling down on defense" as a primary growth engine, spurred by rising global tensions and a renewed focus on domestic manufacturing. Recent investments signal the strategy's early momentum. ViDARR Inc., a manufacturer of thermal optics and autonomous systems, is investing $2.69 million in a new Virginia Beach facility, creating 40 jobs. Additionally, UK-based defense software firm Sirius Analysis is establishing its U.S. headquarters in the city, adding 105 new jobs. A key component of the city's strategy is capturing the talent leaving the service. An estimated 16,000 military members transition out annually in the region, with about half choosing to remain in the local workforce. City-backed programs like "Thrive @ The HIVE" provide resources, co-working space, and mentorship to support veteran entrepreneurs and connect skilled individuals with local employers. The region's infrastructure supports high-tech defense innovation beyond just its military bases. Virginia Beach is a tier-one digital port city with three of the world's fastest subsea data cables, and local entities like the NavalX Mid-Atlantic Tech Bridge exist specifically to foster collaboration between the Navy and tech companies.
