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Greater Richmond Partnership shares economic impact during annual meeting
September 24, 2025
The Richmond Region’s lead economic development organization recently hosted guests, stakeholders and elected officials at its annual meeting, where it revealed results and detailed activities from its fiscal year.
Greater Richmond Partnership (GRP) helped attract $2.7 billion in capital investment to the region, along with 364 announced jobs. However, the organization’s impact travels farther than those direct results. The economic impact, which analyzes the ripple effect that job creation has on a community and region.
When a company locates a new facility in a community, it creates new jobs, leases or constructs commercial real estate and introduces new equipment or other taxable business property. This investment directly stimulates the local economy through business purchases of local goods and services, as well as spending by newly hired employees. These ripple effects generate increased sales, which in turn drive additional hiring for new jobs. This “rising the tide lifts all boats” is the goal of the GRP.
The easiest way to explain it is: indirect spending is when company spends locally whereas induced spending is when company employees spend locally.
For every job announced in GRP’s 2024-2025 fiscal year, an additional 1.2 jobs are created elsewhere in the Richmond Region. Thus, the 364 announced jobs will help create additional jobs, which totals 814 direct, indirect and induced jobs. These are the number of new jobs at local companies which are created by the demand from the new company making local purchases, and from demand created by the new companies’ employees spending their wages locally.
However, not all jobs create the same economic impact as others. Manufacturing occupations, for example, create a larger impact than office-based positions.
For each dollar in wages paid to workers in the region, an additional $1.24 in wages ripples across Greater Richmond’s workforce. This creates $61.6 million in direct, indirect and induced wages circulating around the region’s economy.
Thus, for each dollar in sales generated, an additional 80 cents in business sales are generated across Greater Richmond’s economy – which adds up to an additional wealth creation of $228.8 million.
Over GRP’s last five fiscal years (July 2020 to June 2025), the organization assisted 34 companies in their decision to locate in the region, resulting in the creation of 7,223 new jobs and $5.5 billion in new capital investment. These successes generate significant regional benefits, resulting in the creation of 14,000 new jobs and over $1.5 billion that circulate annually through the local economy.
