Economic Profile for Lynchburg, Virginia from the Lynchburg EDA
An Environment for Opportunity
If you are looking for information about Lynchburg’s economic profile, this page will help you review key details. Lynchburg is rapidly growing as Central Virginia’s urban center for commerce and culture. This is evident in our expanding diverse population, our flourishing higher education institutions, and our economic growth. Read below to find out more about why Lynchburg is thriving.
Economic Profile
Economic Growth Reports
Click on the links below to download Lynchburg’s annual report and economic strategy.
Business
Lynchburg contains all the right ingredients for success in business, research, and commercial development. Our growing population is coupling with rising incomes for a vibrant $8.74 billion economy. Lynchburg companies sell to customers all over the globe, exporting ideas, innovation, and some of the best advanced manufacturing and machining products in the world. Hill City retailers enjoy $1.6 billion in annual sales from over a quarter million local consumers and thousands of visitors a year, with per capita spending on the rise in a variety of products, with available market share in many categories.
Framatome
Automated Conveyor System
BWX Technologies
Bausch & Lomb
Belvac Inc.
Pacific Life
C.B. Fleet, Inc.
Centra Health
Central Virginia Community College
City of Lynchburg
Delta Star
Flowers Baking Company
Flowserve Corporation
Frito Lay Inc.
U.S. Pipe
Genworth
Harris
Horizon Behavioral Health
International Paper Company
J. Crew Outfitters
Liberty University
University of Lynchburg
Parker Hannifin Corp.
Randolph College
R. R. Donnelly Printing
Southern Air Inc.
Midcontinent Cabinetry
Tessy Plastics LLC
Tri Tech Laboratories Inc
VDOT
Walmart
Westminster Canterbury
Location and Transportation
Lynchburg is at the heart of Central Virginia, sited near the geographic center of the Commonwealth. This principal locality is contributing to the city’s status as the economic hub of the region. Nestled in the foothills of the Blue Ridge Mountains and bounded by the James River, Lynchburg is a prime location for pristine environment.
East of Lynchburg is the capital of Richmond, which is a short drive away. Also, North of Lynchburg is Washington, D.C. which is a quick train ride or drive. The major east coast shipping hub, the Port of Hampton Roads, can be reached in a matter of hours by rail or road.
Below you will find more information about all of Lynchburg’s modes of public transportation and major highways and interstates.
4-Lane Arterial Highways
|
Route |
Distance |
|
U.S. 29 |
North-South |
|
U.S. 221 |
North-South |
|
U.S. 460 |
East-West |
|
U.S. 501 |
North-South |
Interstates
|
Route |
Distance |
|
I-81 |
55 miles |
|
I-64 |
65 miles |
Commercial Air Service
- Lynchburg Regional Airport
- U.S. Airways Jet Service to International Hub
- General Aviation Service
- Lynchburg Regional Airport
- Multiple FBOs
- Falwell Airport
- Runway Length: 2,900 ft
Freight & Passenger Rail Service
- CSX Transportation
- Norfolk Southern Railway Company
- Passenger Rail
- Amtrak
- The Northeast Regional Line daily roundtrip commuter to Washington, D.C.
- The Crescent Line with destinations north to New York, south to New Orleans
Public Transportation
- Greater Lynchburg Transit Company
- 16 Routes Covering 50 Square Miles
- Bio Diesel-Fueled Fleet
- Para-Transit Services
Utilities
The following utility companies proudly service the Lynchburg Metropolitan Area.
Utility Providers
|
Electricity |
American Electric Power |
|
Natural Gas |
Columbia Gas |
|
Water |
Water Resources, City of Lynchburg |
|
Sewer/WWT |
Water Resources, City of Lynchburg |
|
Solid Waste Disposal |
Region 2000 Services Authority |
|
Telecommunications |
Verizon-Virginia |
Download the City of Lynchburg FY 2018 Rate Study & Annual Report and the 2019 Water Quality Report.
*In some cases commercial utility rates may be negotiable. Rates above based on recent published rates but are not guaranteed. Contact the utility provider for specific rates and rebates.
Taxes
Lynchburg’s business environment is vibrant due to a sensible local and state tax codes that help foster investment and expansion. Our local taxes reflect Virginia as the fourth most tax-competitive state in the nation. In many instances, the rates below may be eligible for reimbursement or credits depending on your business, revenues or expenditures. For more information, contact the Office of Economic Development at 434-455-4491 or email melissa.dismond@lynchburgva.gov.
Corporate Income Tax
- Rate of 6%
- Unchanged in Over Forty Years
- Three-Factor Apportionment Formula of Payroll, Property and Sales (Sales Double-Weighted)
- Tax Credits for Job Creation and Investment
- No Franchise or Net Worth Tax
Sales and Use Tax
- Rate of 4.3%
- Tax on Gross Receipts from Retail Sales or Leases of Taxable Tangible
- Personal Property Manufacturers Exempt from Tax on Purchases for Production
- Distributors Exempt from Tax on Items Purchased for Resale
Local Taxes
The Commissioner of the Revenue administers local taxes in the City of Lynchburg. For local tax purposes, businesses are classified as Manufacturers or Non-Manufacturers.
All Businesses
|
Real Estate Tax |
|
|
Nominal Tax Rate per $100 of Assessed Value |
$1.11 |
|
Business Personal Property Tax |
|
|
Nominal Tax Rates per $100 of Assessed Value |
$3.80 |
|
Value Used for Tax Calculation |
Original Cost |
|
Assessment Ratio (in years) |
|
|
1-5 years old |
30% |
|
6+ years old |
25.35% |
Manufacturing Businesses
|
Machinery and Tools |
|
|
Nominal Tax Rate per $100 of Assessed Value |
$3.00 |
|
Value Used for Tax Calculation |
Original Cost |
|
Assessment Ratio (in years) |
|
|
1-5 years old |
30% |
|
6+ years old |
25.35% |
Non-Manufacturing Businesses
|
Business, Professional and Occupational License Tax |
|
|
All Businesses with Gross Receipts Less Than $10,000 |
No fee |
|
$10,001-$50,000 |
$30.00 |
|
$50,001-$100,000 |
$50.00 |
|
$100,001-$150,000 |
$160.00 |
|
Retail Merchants |
20 cents per $100 of Gross Receipts |
|
Contractor |
16 cents per $100 of Gross Receipts |
|
Business/Personal Service |
36 cents per $100 of Gross Receipts |
|
Professional Service |
58 cents per $100 of Gross Receipts |
|
Wholesale Merchant |
$20 plus 28 cents per $100 of Gross Purchases |
Hospitality & Service Sector Taxes
Local Sales and Use Tax
- Retail Sales and Leases of Tangible Property: 1%
Meals & Lodging
- Prepared Foods and Beverages: 6.5% of Sale
- Lodging for Compensation Per Room Per Night: $1 plus 6.5% of Sale
Amusement Tax
- Event or Activity Admission: 7% of Sale
Population
We are honored to have a diverse community call Lynchburg their home.
Age, Gender & Race in Lynchburg
- Median Age: 28.7
- Male Population (% of total): 37,987 (46.9%)
- Female Population (% of total): 43,009 (53.1%)
- White: 37,986
- Black: 23,002
- Hispanic (of any race): 3,240
- Asian: 2,348
- Two or More Races: 1,781
- American Indian: 324
- Pacific Islander: 80
- Total: 80,995
Income
Lynchburg boasts an expanding disposable income paired with a low cost of living.
|
Median Household Income |
$50,635 |
|
Per Capita Income in Past 12 Months (Lynchburg) |
$26,194 |
|
Sample of Annual Wages Across Industries |
|
|
Construction Laborers |
$28,100 |
|
HVAC Mechanics |
$50,300 |
|
Customer Service Representatives |
$29,000 |
|
Truck Drivers |
$44,300 |
|
Maintenance and Repair Workers, General |
$39,200 |
|
Licensed Practical Nurses |
$41,700 |
|
Machinists |
$51,300 |
|
Elementary School Teachers |
$54,300 |
|
Computer Programmers |
$71,500 |
|
Accountants and Auditors |
$73,300 |
|
Gross Regional Product & Aggregate Economic Activity |
|
|
Gross Regional Product |
$8,740,000,000 |
|
Manufacturer’s Shipments |
$2,801,602,000 |
|
Retail Sales |
$1,665,130,000 |
|
Retail Sales Per Capita |
$23,171 |
|
Hospitality & Food Service Sales |
$189,000,000 |
Sources: U.S. Census Bureau, Virginia Employment Commission, U.S. Bureau of Economic Analysis
|
Labor Force & Labor Participation Rate |
|
|
Lynchburg Workforce Participation (% of Population) |
35,838(59.8%) |
|
Metro Area Workforce Participation (% of Population) |
125,114 (63.8%) |
|
Total Workforce |
160,952 |
|
Underemployment |
||
|
Lynchburg |
3,820 |
|
|
Metro Area |
9,617 |
|
|
Total Underemployed |
13,437 |
|
|
Sample of Regional Growth Occupations |
|
|
Occupation |
Estimated Growth Rate by 2018 |
|
Network Systems and Data Communications Analysts |
59.4% |
|
Healthcare Support Occupations |
43.8% |
|
Financial Advisors |
42.7% |
|
Mathematical Scientists |
38.9% |
|
HVAC Mechanics |
36.2% |
|
Computer Software Engineers |
34.8% |
|
Physical Therapists |
34.6% |
|
Counselors and Social Workers |
32.7% |
|
General Medical Practitioners |
30.1% |
|
Teachers and Professors (averaged) |
23.5% |
|
Architects |
22.8% |
|
Machine Operators |
22.8% |
|
Engineers |
20.8% |
|
Registered Nurses |
20.3% |
|
Finance and Insurance Services |
16.9% |
|
Construction Managers |
16.9% |
|
Arts, Design and Media Occupations |
16.1% |
Education
Lynchburg is comprised of 6 distinguished and accredited Higher Education Institutions as well as a flourishing public school system.
|
Higher Education Institutions & Enrollment (Fall 2016) |
|
|
Institution |
Enrollment |
|
Liberty University |
75,044 |
|
Central Virginia Community College |
4,128 |
|
Lynchburg College |
2,956 |
|
Virginia University of Lynchburg |
402 |
|
Randolph College |
617 |
|
Sweet Briar College (Amherst County) |
337 |
Public Schools
|
Public School Graduates Continuing Education (2015-2016 Academic Year) |
|
74.7% |
|
Public School Enrollment (Fall 2016) |
||
|
Level |
Facilities |
Enrollment |
|
Elementary |
11 |
4,205 |
|
Middle |
3 |
1,856 |
|
High School |
2 |
2,416 |
|
Student Teacher Ratio (FY 2015) |
|
|
Elementary |
11:1 |
|
Secondary |
12:1 |
|
Per Pupil Expenditure (FY 2015) $11,426.00 |
Commercial Real Estate in Lynchburg
Lynchburg is the place for your business. Whether your business needs 100,000 square feet of warehouse, 1,000 square feet of retail or raw land for new construction, there is a building or site available for lease or sale in Lynchburg. Our diverse commercial real estate market offers competitive lease rates and reasonable sale prices, along with the infrastructure your business needs, from high-speed internet to rail access.