The Amazon effect

New Virginia Tech campus shows Virginia’s push for more high-tech jobs

OAmazon pledged to hire 25,000 workers with an average salary of $150,000 and the General Assembly approved an incentive package in 2018 totaling $750 million that is dependent on the company fulfilling that promise.

rdinarily, construction of a building in Arlington wouldn’t reverberate much beyond the surrounding area. But when workers recently installed the final beam on the top floor of Virginia Tech’s new Innovation Campus — known as “topping out” in the construction world — it was a milestone that echoed across the commonwealth.

The new graduate school campus focused on computer engineering and computer science came into being as a result of Amazon’s 2018 decision to locate its second headquarters in Northern Virginia.

More than a pipeline for employment with the online retail behemoth, the campus promises to be a gateway for high-tech careers for students across the commonwealth — as well as a powerful marketing tool for attracting computing firms eager to share Virginia’s rich bounty of talent.

It’s impossible to measure the impact that Amazon’s new headquarters will have on the commonwealth. For one, the actual facility has yet to open its doors; that’s scheduled for later this year. But the company’s decision to locate in Northern Virginia will have all sorts of direct and indirect effects that may be difficult to quantify, even in the long term.

For instance, construction is underway on Amazon’s $2.5 billion campus in Crystal City, a huge infusion of investment in that community. The company pledged to hire 25,000 workers with an average salary of $150,000 and the General Assembly approved an incentive package in 2018 totaling $750 million that is dependent on Amazon fulfilling that promise, paying $22,000 for each of the first 25,000 jobs and $15,564 for each subsequent hire, up to 12,850 additional jobs.

That will inject a tremendous amount of money into the local, regional and state economies as people join the company’s workforce and spend on things such as housing, food and other purchases. There are concerns that it will drive already astronomical rent prices even higher, a ripple effect.

One of the key aspects of Virginia’s attractiveness to Amazon was the education of its workforce. Northern Virginia has one of the most educated populations of any area the company considered, meaning that there were plenty of workers ready to move into the new headquarters and get to work.

That is a testament to the commonwealth’s universities that emphasize programs such as computer science and computer engineering, on which high-tech firms such as Amazon depend for talent. Schools such as Virginia Tech and, closer to home, Old Dominion University, Norfolk State University, Christopher Newport University and the College of William & Mary have done well to prepare their students to seize these opportunities.

Virginia capitalized on that when making its pitch to Amazon, highlighting its universities and the strength of its K-12 public schools. State officials also promised to invest heavily to expand the number of students who have access to those programs and who will graduate with the skill set needed for these sorts of jobs.

That came in the form of a $1.1 billion package over 20 years for an additional 25,000 to 35,000 students to earn degrees in computer science and related fields. Called the Tech Talent Investment Program, it helped forge partnerships with universities and community colleges across the commonwealth.

Virginia is also investing millions to expand STEM and computer education in K-12 schools, funding teacher training and equipment needs so students who want to pursue those careers can get a head start. And Amazon has donated millions to the Richmond-based computer science education nonprofit CodeVA to do that important work. Preparing more Virginia students for these jobs of the future couldn’t be more important.

Virginia Tech’s Innovation Campus is but one part of this rather intricate machine, but it’s a powerful symbol of how Virginia has reoriented to make the commonwealth a top-tier destination for the tech world’s most valuable and successful companies.

The topping out ceremony may be a minor milestone, but it’s another sign of progress and should inspire hope for the future.