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Owens & Minor to invest millions in new Richmond engagement center

February 16, 2017

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300 new jobs to be created, 200 retained in deal

RICHMOND, VA – The Greater Richmond Partnership (“Partnership”) successfully helped secure Owens & Minor’s new Client Engagement Center in downtown Richmond, Va. The global healthcare supply chain company will invest in the multi-million-dollar center, leasing 90,000 square feet at 951 East Byrd St. The region successfully competed against Nashville, Tenn., and Salt Lake City, Utah for the project, creating 300 jobs and retaining 200 that would have left the region.

In May 2016, the Partnership was contacted directly by Jason Hickey and Jason Rancadore of Hickey & Associates, a site selection firm with offices throughout the world, with an opportunity to compete for “Project Engage.” Hickey described Engage as a high-touch customer service operation related to the healthcare industry which was considering 60 locations. After working the project, it became clear that it was Owens & Minor, a Fortune 500 firm headquartered in Hanover, Va.

“Virginia has been the home of Owens & Minor for 135 years, and we are very pleased to expand our presence in Richmond with this new initiative. This project will support our plan to build the most efficient and intelligent route to market for healthcare products and supplies,” said Cody Phipps, President & Chief Executive Officer of Owens & Minor. “The downtown Client Engagement Center will support standardization and enhanced service to our nationwide customers, who are asking for our assistance in adapting to a changing healthcare market. The CEC will provide a scalable platform for future growth, as well as higher levels of service to our customers. We thank the City of Richmond and the Commonwealth for their help in bringing this initiative to life.”

In the site location process, the Partnership encouraged the project managers to evaluate the region with the same metrics and high standards as competitor cities.

“It was important for the site selectors and company representatives to see Richmond with a fresh pair of eyes,” said Bethany Miller, Vice President of Business Development at the Partnership. “We encouraged them to tour the region and meet with companies, as they had with competitor locations, and to explore how the region has progressed. Looking at things from a new perspective really made a difference.”

“Four years ago the Partnership created a Site Location Consultants program with the goal of strengthening our relationships with these important gatekeepers,” said Barry Matherly, President/CEO of the Partnership. “Over the last year, more than $80 million in capital investment and 500 jobs have been brought to us from consultants, proving that these valuable relationships are paying off.”

“I am so pleased that Owens & Minor has chosen the City of Richmond as the location for its Client Engagement Center,” said Mayor Levar M. Stoney. “Their decision is a testimony to their confidence in the quality of our local workforce and commitment to the region. We welcome this industry leader to the city with open arms and look forward to the vitality they will bring to the downtown community. The City’s Office of Community Wealth Building and Workforce Development will be working closely with Owens & Minor to develop training programs for the new jobs created by the company.”

The Greater Richmond Partnership worked with the City of Richmond’s Jane Ferrara and the Virginia Economic Development Partnership’s Pandy Brazeau on the project. Gov. Terry McAuliffe approved a $1.5 million grant from the Commonwealth Opportunity Fund to assist the company, which is eligible to receive benefits from the Virginia Enterprise Zone Program. Funding and services to support employee training activities will be provided through the Virginia Jobs Investment Program.

David Wilkins, Trib Sutton and Matt Anderson of CBRE Richmond negotiated the lease for Riverfront Plaza’s landlord, Hertz Investment Group.

About the Partnership

The Greater Richmond Partnership, Inc. is the lead economic development organization for the City of Richmond and counties of Chesterfield, Hanover and Henrico. The Partnership impacts the Richmond Region by recruiting companies from all over the globe, which provide employment opportunities and taxable capital investment for our local community. For more information, please visit www.grpva.com.