Competitive Operating Costs

Virginia’s Cost-Effective Operating Climate

Believe it or not, companies have improved their bottom lines just by locating in Virginia. From soft costs like healthier, more productive workers, to hard costs like cheaper, available and reliable electricity, these companies have benefited from the combination of resources that only a Virginia location can offer.

  • Virginia has the 3rd lowest average worker's compensation costs in the nation and has been consistently among the lowest cost states for over 15 years.
  • The unemployment insurance tax rate is the 2nd lowest in the nation and is 56% lower than the national average.
  • In 2013, the average cost per unit of electricity for the industrial sector was 6.44 cents in Virginia, compared to 6.73 cents for the nation.
  • The 6% corporate income tax rate has not increased in over forty years, since 1972.
  • Building costs in Virginia range from 8% to 22% below the national average, depending on the region of the Commonwealth. Some examples:
    • Fairfax – 93.0%
    • Lynchburg – 84.8%
    • Richmond – 86.9%
    • Roanoke – 85.3%
    • Norfolk – 87%
    • Bristol – 79.8%
    • Winchester – 91.6%
    • Farmville – 78.9%

VIRGINIA ECONOMIC DEVELOPMENT PARTNERSHIP

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