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If 2024 was the year AI went from buzzword to business imperative, 2025 will be the year of cautious optimism—where resilience takes center stage and technology fuels smarter growth strategies.
CEOs are looking ahead, balancing bold moves with pragmatic strategies to navigate economic ambiguity—inflation, shifting regulations, workforce challenges and geopolitical tensions.
Yet, while uncertainty looms, growth is still on the table for leaders who know where to look and how to adapt.
For CEOs ready to scale in this volatile environment, the right location isn’t just a backdrop—it’s a strategic advantage. Business-friendly policies, access to top-tier talent and strong infrastructure can make the difference between shuffling along and thriving.
Enter Richmond, Virginia—a rising hub for high-growth companies seeking stability, innovation and a mix of affordability and accessibility.
Heading into 2025, CEOs are contending with economic uncertainty, workforce shortages and regulatory complexities. While many remain optimistic, they’re prioritizing resiliency and adaptability.
A potential looming recession, rising interest rates and global trade tensions add to the unpredictability. A recent CBIZ-Hofstra University survey says middle-market CEOs cite tariffs, talent availability and tax uncertainty as top concerns. With shifting alliances reshaping global business, long-term strategic decisions require factoring in new geopolitical risks.
Yet many CEOs see opportunity. A global confidence survey from EY reports that executives remain confident in their company’s ability to expand and innovate despite the uncertainties.
That ability depends on making smart location decisions, cultivating a strong workforce and embracing future technologies and sustainability—all underpinned by a proactive approach to risk management and resilience building.
In a volatile economy, companies that prioritize operational flexibility, crisis preparedness and strategic adaptation will better weather disruptions.
“Resilience isn’t just about mitigating risks—it’s about understanding them well enough to turn them into opportunities,” says Brian D. Haney, president and chief operating officer of Kinsale Insurance Company. “CEOs must assess their risk appetite carefully, ensuring they have the agility to navigate challenges while staying focused on long-term growth.”
Coincidentally, Richmond has emerged as a leader in risk management, particularly in the insurance sector. Insurance leaders like Kinsale and Markel thrive here, leveraging a business-friendly environment and deep talent pool in finance and specialty insurance.
The region’s ranking as the No. 1 most climate-resilient metro in the U.S. further underscores its stability.
For CEOs looking to balance growth with risk, Richmond provides a model for integrating financial security and long-term adaptability.
Growth is a top priority for business leaders in 2025, and many are looking beyond their current markets to make it happen. About one-third of businesses are prioritizing domestic expansion—according to JP Morgan’s latest Business Leaders Outlook survey—while CEO confidence in dealmaking is at its highest in nearly two years.
A strategic location can be a game-changer. Companies are positioning themselves for long-term success by choosing locations that offer stability, access to skilled talent and business-friendly policies.
The question for CEOs isn’t whether to grow, but where to do it most effectively.
“When site location consultants evaluate locations, we’re seeking for our clients a place that provides for a balance of workforce readiness, cost of doing business, infrastructure and economic stability,” says Christopher Lloyd of McGuireWoods Consulting’s economic development team. “The right location is more than just a site, it is all about where you intend to grow and prosper in true partnership with the community.”
Richmond has emerged as a top choice for businesses looking to scale. Its robust infrastructure, including a growing public transit system, supports industries from logistics to advanced manufacturing. The region’s affordability—operating costs are 11 percent lower than a national average surveying 30 domestic metros—makes it attractive for companies optimizing expenses.
Major corporations have taken notice. The LEGO Group’s upcoming $1 billion manufacturing operation has earned global attention. Meanwhile, leaders in technology and life sciences are investing in the area, drawn by its strategic East Coast location and strong workforce pipeline.
Attracting and retaining top talent remains one of CEOs’ biggest challenges. Labor shortages and high turnover continue to pressure industries, making a solid workforce strategy essential.
The demand for specialized skills is growing in fields like healthcare, technology and advanced manufacturing. Companies are responding with on-the-job training, leadership development and tuition assistance programs.
Richmond stands out with its collaborative efforts between universities and businesses to strengthen the talent pipeline.
Just steps from Fortune 500 companies and emerging startups, Virginia Commonwealth University’s new CoStar Center for Arts and Innovation will be a launchpad for the city’s growing digital and creative economy. Supported by CoStar Group’s $18 million investment, the center will help bridge the gap between academic training and real-world business demands.
“Higher education plays a pivotal role in strengthening regional growth,” says David Hale, executive vice president and chief operating officer at the University of Richmond. “Aligning academic programs with industry needs ensures businesses have access to a workforce that’s not just skilled but ready for the future.”
Beyond education, workplace culture is evolving. Employees today seek more than just competitive salaries; they want career development, diversity and purpose. Companies that prioritize these elements will have the edge in keeping top talent engaged and motivated.
AI, automation and digital infrastructure aren’t just trends—they’re the backbone of modern business success. Companies that invest in these technologies are unlocking new revenue streams and driving long-term economic and community impact.
Richmond offers a compelling example of how strategic digital investments can power sustainable growth. The region has emerged as a hub for data-driven industries, fueled by cutting-edge infrastructure like high-speed subsea fiber connectivity.
Businesses across industries can replicate this model by prioritizing robust digital ecosystems that enhance efficiency while attracting talent and investment.
Haleon’s recent $54.2 million expansion strengthens Richmond’s role in life sciences and AI-driven automation. (Plus, its new consumer healthcare-focused internship will provide paid opportunities for VCU students.)
Henrico County’s reinvestment of data center tax revenues into affordable housing offers another key takeaway: smart infrastructure investments can drive community-wide benefits.
“This innovative approach, directing data center tax revenues to the Henrico Affordable Housing Trust Fund, is a model for how strategic economic development can drive real, lasting community impact,” says Jody K. Rogish of the Henrico County Board of Supervisors and Greater Richmond Partnership’s board of directors. “We’re not only providing businesses with world-class connectivity and energy efficiency but also reinvesting in the well-being of our residents.”
Companies that embed environmental, social and governance (ESG) principles into their strategy aren’t just protecting the environment; they’re strengthening their long-term business outlook and contributing to economic stability.
The best sustainability strategies go beyond reducing carbon footprints—they enhance operational efficiency, attract top talent and create lasting economic benefits. The Port of Virginia’s $380 million sustainability upgrades will streamline logistics while reducing environmental impact.
“Companies that build sustainability into their growth strategies reduce costs, boost efficiency and strengthen relationships with customers and partners,” says Bryan Jones, president of construction at the Richmond-headquartered construction and development firm Hourigan Group.
Richmond is also at the forefront of green business innovation. Babylon Micro Farms and Plenty Unlimited are leaders in indoor vertical farming, eliminating long-haul transportation and making food production more sustainable.
Businesses that apply ESG principles are more than meeting consumer expectations; they are building businesses that can adapt and lead in an increasingly complex and changing global climate and economy.
The challenges of 2025 may feel daunting, but they also present unprecedented opportunities for forward-thinking CEOs. While economic uncertainty is real, so is the potential for reinvention.
The companies that will thrive will be those that embrace calculated risk, leverage data-driven decision-making and remain agile in adapting to shifting market forces.
There are models of success to follow—businesses and regions proving that growth and resilience can go hand in hand. Richmond stands as one such example, demonstrating how investments in workforce development, technology and sustainability create a foundation for long-term prosperity.
CEOs who study and apply these lessons can gain a competitive edge, turning volatility into momentum.
That’s because cautious optimism is more than a mindset; it’s a strategy. And leaders who balance bold action with thoughtful planning will set the pace for the next era of growth—as uncertain as it may be.
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