Updated plan prioritizes high-growth industry clusters and addresses regional labor shortages
SOUTH HILL, Va. (March 10, 2026) – GO Virginia Region 3 has released an updated version of its Growth and Diversification Plan in February 2026, offering a comprehensive review of the region’s economic performance, workforce trends and strategic priorities. This update introduces logistics and transportation as a new priority cluster, reflecting the region’s changing economic needs and the growing importance of transportation infrastructure. It also tackles workforce shortages, expands workforce development, and highlights the need for better access to childcare, housing, and healthcare to ensure labor force stability across Southern Virginia.
This revision builds on prior reviews, including the 2023 plan, and outlines how targeted investments in these areas will help the region accelerate economic growth and create more resilient communities.
“This updated Growth and Diversification Plan reflects the collective ambition of Southern Virginia’s business, education, non-profit and government leaders to build a stronger, more competitive region,” says Lauren T. A. Willis, GO Virginia Region 3 Council Chair. “By aligning our priorities around high-growth industries, workforce development, and the infrastructure that supports our communities, we are laying the groundwork for lasting prosperity across Southern Virginia. The future of our region is bright, and this plan gives our communities and partner organizations a clear and unified path to get there.”
The newly revised plan is a direct response to regional workforce shortages and infrastructure gaps, specifically targeting the expansion of childcare and housing to stabilize the local labor pool. These challenges are compounded by the growing demand for skilled labor in sectors such as healthcare, advanced manufacturing and logistics. While progress has been made, Region 3 still lags behind state averages in wages and household income with significant disparities among subregions. Bridging these gaps is a primary goal of the updated plan, which outlines targeted strategies for expanding workforce development initiatives and fostering more equitable economic growth across all localities.
Key highlights from the updated plan include:
- Logistics and Transportation as a New Strategic Cluster: The addition of Logistics and Transportation as a priority industry recognizes the region’s geographic advantage and its critical role in supporting economic growth and infrastructure development across regional supply chains.
- Targeted Workforce Alignment: A renewed focus on expanding credentialing systems ensures that Southern Virginia’s labor force is specifically trained for high-demand roles in healthcare, manufacturing and logistics.
- Identifying Critical Workforce-Supporting Services: The plan takes a comprehensive approach to economic development that extends beyond its customary body of work to identify critical workforce-supporting services — childcare, healthcare and housing — that strengthen labor force participation and build long-term stability across Southern Virginia.
- Resilient Entrepreneurship: New strategies will fortify the local startup ecosystem, providing small businesses with the support and capital needed to drive innovation and foster long-term economic resilience.
“This update gives us a data-driven path to making Southern Virginia more competitive,” said GO Virginia Region 3 Program Manager Bryan David. “By prioritizing high-growth industries and leveraging our region’s unique strengths, we’re creating targeted opportunities to drive economic growth and build a stronger economy for our communities. This plan also reflects the valuable input of stakeholders from across Southern Virginia, and we’re grateful for their time and commitment to shaping the future of our region.”
For more information and to see the plan in full, please visit https://govirginia3.org/resources/diversification-plan/.