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IALR 2023 Growing ImpactGROWING theINSTITUTEFOR ADVANCED LEARNING AND RESEARCH A Year of Growth and Expansion The last fiscal year was one of tremendous growth and expansion for our region. All the while, each of our five divisions upheld our mission of economic transformation in critical ways. The Advanced Learning team expanded key programs to advance career opportunities for our next-generation workforce. The Great Opportunities in Technology and Engineering Careers (GO TEC®) staff developed curriculum and added training coordinators and In-Region Coordinating Entities to serve four GO Virginia regions across the commonwealth, impacting 9,000+ students annually in 44 middle schools and 36 localities by 2024. Other expanding programs included registered apprenticeships, a second location for the Career ChoICE Youth Expo and a new Public Health AmeriCorps program. The Manufacturing Advancement team expanded staff and students of the national Accelerated Training in Defense Manufacturing (ATDM) program, which trains workers in critical manufacturing skills for the submarine industrial base. Steel was erected for phase one of the new national training center, which will accommodate 800-1,000 ATDM graduates annually by 2025. Also, the Center for Manufacturing Advancement opened to offer manufacturing optimization and emerging technology support while also welcoming four new companies as part of the U.S. Navy’s Additive Manufacturing Center of Excellence. The Applied Research team continued to expand and advance the controlled environment agriculture (CEA) industry in partnership with Virginia Tech and the state. The inaugural CEA Summit East was hosted in partnership with Virginia Tech and Indoor Ag-Con and attracted 200+ attendees from across the nation. Plus, state grants were awarded to advance CEA strawberry production. The Economic Development team partnered with local, regional and state economic developers to attract five new companies and announce four expansions, resulting in 545 new jobs and $335.7 million in capital investment. Also, 21 business sites achieved shovel-ready Tier 4 certification, and eight industrial sites received shovel-ready graded pad site Tier 5 certification. The Institute Conference Center exceeded its pre-pandemic conference services clientele volume in FY 2023 with 27,600 guests; 9,270 patrons were also served by Megabytes café. I am extremely proud of our staff for the exceptional work they do to transform Southern Virginia. I hope you will visit our campus to see our programs and initiatives in action. Visit ialr.org/tours for details. Telly D. Tucker, President, IALR FROM THE PRESIDENT INTRO TO IALR Since its founding as a political subdivision of the Commonwealth of Virginia in 2002, the Institute for Advanced Learning and Research (IALR) has made significant contributions to the growth of Southern Virginia. Through collaboration with excellent partners, IALR serves as a regional catalyst for economic transformation. The mission will be accomplished through: Applied Research Advanced Learning Economic Development Manufacturing Advancement Conference Services THE IALR CAMPUS AND TEAM ARE GROWING RAPIDLY, ENABLING THE EXPANSION OF OUR IMPACT IN SOUTHERN VIRGINIA AND BEYOND. STRATEGY AND GOALS Serve as Virginia’s Go-To Partner for Business and Economic Growth Expand as a Center of Excellence for Education and Workforce Development Cultivate a Globally Competitive Business Ecosystem Since its founding, IALR has experienced rapid growth marked by extensive infrastructure investment, high-caliber educational programming and workforce development, and applied research supporting economic activity in Southern Virginia and beyond. Leaning on our five- year strategic plan to guide our efforts, we capitalize on our strengths to meet the needs of the region. In fiscal year (FY) 2023, we expanded our impact with the scaling of programs like Accelerated Training in Defense Manufacturing (ATDM) and Great Opportunities in Technology and Engineering Careers (GO TEC®) and the growth of our campus, technology and team. ALL PROGRAMS, INITIATIVES AND EFFORTS CAN BE ENCAPSULATED BY THREE MAIN GOALS: “THE LAST FISCAL YEAR WAS ONE OF TREMENDOUS GROWTH AND EXPANSION FOR OUR REGION.” - Telly Tucker, President, IALR OUR WORK HELPS REALIZE SOUTHERN VIRGINIA AS HOME TO A DYNAMIC ECONOMY WHERE ALL CAN LIVE AND THRIVE. Driven by public-private collaboration, IALR utilizes the EmPOWER framework to systematically connect students to careers. EmPOWER builds pipelines of students whose skillsets align with current employer needs and economic development interests. This custom work-based learning system is making a significant impact on Southern Virginia. An employer-driven, work-based learning framework The Career ChoICE Youth Expo allows middle and high school students to connect with employers and learn about career pathways and employment opportunities in their region. In its ninth year, the Career ChoICE Youth Expo expanded to add a second location at Hampden-Sydney College, allowing the expo to reach additional students across more than a dozen localities in Virginia. CONNECTING STUDENTS TO CAREERS 5,116 students connected with regional employers at the FY 2023 Career ChoICE (Imagine, Connect, Explore) Youth Expo events CAREER AWARENESS 14,000+ students across 13 school divisions utilized MajorClarity, an online career exploration platform. 202 MOCK INTERVIEW DAY participants 134 STUDENTS participated in Summer STEM Camps 56 PARTICIPANTS in Sector-Focused Camps CAREER EXPOSURE & ENGAGEMENT CONNECTING STUDENTS TO CAREERS 57 PARTICIPANTS in teamship program solving problems for employers “I CAN’T SPEAK HIGHLY ENOUGH OF ALL THE HELP WE HAVE RECEIVED IN GETTING OUR APPRENTICESHIP PROGRAM STARTED.” - Justin Hylton, Southside Mechanical Services IALR received a $497,890 grant from the Tobacco Region Revitalization Commission for the ExTRA (Expanding Talent through Registered Apprenticeship) program to grow state-registered apprenticeship in 15 Southern Virginia localities. In alignment with economic development and employer needs, IALR focuses on apprenticeship for occupations in construction, healthcare, early childhood education, manufacturing and information technology. ...continued 86 PAID INTERNS PLACED with regional employers 11 STATE-REGISTERED apprenticeship programs EMPLOYMENTCAREER EXPERIENCE PIPELINES OF TALENT DUAL ENROLLMENT 50 students in Academy for Engineering and Technology (AET) 74 in Piedmont Governor’s School COLLEGE Students funnel into Danville Community College (DCC) machining program, Patrick & Henry Community College welding, or other higher education programs MANUFACTURING ENGINEERING TECHNOLOGY MAJOR Old Dominion University has had 357 students enrolled in coursework related to the degree program to date. GO TEC® Hands-on learning in high-demand career pathways 9,000+ students annually by 2024 In partnership with industry, K12 and higher education institutions, IALR develops and supports programs at all levels that create talent pipelines. INTEGRATED MACHINING TECHNOLOGY Advanced machining education that incorporates real-world manufacturing experience Industry-driven, hands-on career awareness in strategic STEM sectors Fostered through public-private partnerships, the Great Opportunities in Technology and Engineering Careers (GO TEC®) program stimulates job growth in Virginia by creating dependable talent pipelines in strategic sectors. Starting in middle school Career Connections Labs and continuing through high school, dual-enrollment and postsecondary programs, GO TEC engages students in hands-on learning in high-demand career pathways such as: Metrology Precision Agriculture Robotics Manufacturing/Mechanical Engineering Additive Manufacturing (3D printing) Precision Machining Welding IT and Cybersecurity GROWING TALENT PATHWAYS PROGRAM IALR and regional partners have collaboratively developed a progressive talent pipeline that begins as early as middle school and funnels through college. The comprehensive framework, which includes strong partnerships, cutting-edge equipment and innovative programs, continues to expand and is seen as a model across the Commonwealth and beyond. True to the mission of IALR, GO TEC has made a tangible impact on economic growth in Virginia, serving as an attraction for industries considering locating or expanding here. Many companies have said that GO TEC – along with related workforce development programs – contributed to their decision to bring business to this region. 4,397 MIDDLE SCHOOL STUDENTS COMPLETED THE GO TEC® CURRICULUM GO TEC VIRGINIA 2025 GO TEC WILL BE IN VIRGINIA MIDDLE SCHOOLS FROM ABINGDON TO VIRGINIA BEACH. 44 MIDDLE SCHOOLS ACROSS 36 LOCALITIES BY 2024 9,000+ STUDENTS ANNUALLY $20 MILLION INVESTMENT …supporting job growth and talent development across Virginia through collaborative regional partnerships. …middle school students engaged in GO TEC Career Connections by 2024. …leverages $9 million from GO Virginia with over $11 million from localities, federal agencies and philanthropy. in the 2022-23 school year Accelerated Training in Defense Manufacturing (ATDM) is a pilot training platform for rapidly developing workers in high demand by Navy and Department of Defense suppliers. Scaling rapidly, this program is preparing a skilled workforce to support the defense industrial base and submarine industrial base. A prime example of a modern public-private collaboration, ATDM strategic partners include the U.S. Department of Defense, IALR, Danville Community College, Phillips Corporation and The SPECTRUM Group. TRAINING TO BUILD SUBMARINES Innovative, collaborative training program for the defense industrial base This four-month training program includes 600 hours of instruction and produces skilled talent with industry- recognized credentials for the following trades: ADDITIVE MANUFACTURING CNC MACHINING NON-DESTRUCTIVE TESTING (NDT) QUALITY CONTROL INSPECTION (METROLOGY) WELDING NAVY’S NATIONAL TRAINING CENTER SLATED FOR COMPLETION IN 2025 The ATDM program is funded through the Industrial Base Analysis and Sustainment Program Office in the Office of the Undersecretary of Defense for Acquisition and Sustainment. The U.S. Navy’s Program Executive Office for Strategic Submarines executes the program in collaboration with contractor and campus host IALR. 157 GRADUATES OVER FOUR COHORTS 800-1,000 ANNUAL GRADS BY 2025 50+ STAFF MEMBERS “I’M EXTREMELY PROUD OF THE INVESTMENTS THAT ARE HAPPENING RIGHT HERE IN DANVILLE, VA. WORKING TOGETHER, WE WILL GAIN THE SKILLS THAT WE NEED IN THE DEPARTMENT OF THE NAVY IN ORDER TO BUILD SUBMARINES FASTER AND BETTER THAN EVER BEFORE — THAT’S ONE TEAM, ONE FIGHT, ALL OF US WORKING TOGETHER AS ONE.” - The Honorable Carlos Del Toro, Secretary of the Navy IALR’s full-service conference center offers flexible services and state-of-the-art spaces equipped with modern technology for every event. This includes: “OUR TEAM HAS BEEN REPEATEDLY BLOWN AWAY BY THE PROFESSIONALISM, HELPFULNESS AND QUALITY OF THE STAFF AND FACILITIES AT IALR.” - Jennifer Eddy, Eddy Alexander  THE GREAT HALL (accommodates 750) THE ATRIUM (accommodates 400) THE AUDITORIUM (accommodates 135) BUSINESS CONFERENCE ROOMS (accommodates 8-26) Since its inception, the IALR facilities have been a major component of its reputation and mission. With over 25,000 square feet of premier, flexible meeting and event space, the Institute Conference Center accommodates small to large meetings, classroom training, board meetings, multi-day conferences and more. INSTITUTE CONFERENCE CENTER Southern Virginia’s Premier Venue for Business Events and Conferences 9,2709,270 TOTAL PATRONS SERVED IN MEGABYTES The Institute Conference Center hosted a variety of events geared toward the growth of industry sectors and Southern Virginia, including trainings and economic development activities. Summits around industries like defense manufacturing, controlled environment agriculture, regional housing and workforce development brought the brightest minds to IALR’s campus to collaborate, network and grow up-and- coming sectors. Megabytes, IALR’s on-site café, debuted a new menu in April 2023. The café features healthy and unique food options with an appetizing daily menu and rotating hot buffet menu Tuesday-Thursday. 27,60027,600 GUESTS HOSTED AT EVENTS AND PROGRAMS IN 2023 IALR collaborates with partners to transform Southern Virginia’s economy, and a major focus of that work involves connecting people with resources and services. In FY 2023, IALR implemented new programs and grew existing initiatives to address community health and increase access to resources, information and education. The Public Health AmeriCorps program, launched in FY 2023 and funded through a Public Health AmeriCorps grant, is focused on expanding public health capacity through education and outreach. Community health educators conduct public health workshops and provide individualized support, addressing the region’s most pressing physical and mental health challenges. The Public Health AmeriCorps program works in conjunction with the Regional Engagement to Advance Community Health (REACH) partnership, which unites agencies to address systemic barriers that prevent at-risk populations from accessing physical and mental health services. The program’s Coordinated Care Teams, which include cross-agency Community Health Workers, Care Coordinators and Community Paramedics, have worked with hundreds of clients across Danville, Pittsylvania County and Caswell County, N.C. A PARTNER IN EDUCATION & HEALTH Addressing health outcomes, closing education gaps and providing learning opportunities FY 23 AMERICORPS ACCOMPLISHMENTS: 4,722 SERVICE HOURS 480 CLIENTS SERVED 20 MEMBERS A self-development program supported by IALR, the Wonder Community of Lifelong Learning provides high-quality programming that ignites passions. People can join as members, supporters or presenters – with 60% of all proceeds benefiting nonprofits. The Dan River Year AmeriCorps program mobilizes members in a community-supported environment to address pressing needs – primarily STEM and literacy assistance. AmeriCorps members tutored students across Southern Virginia both in schools and during out-of-school time with partner organizations. 10,100 SERVICE HOURS CONTRIBUTED BY 29 MEMBERS IN 2023 “THE WONDER COMMUNITY IS ONE OF MY FAVORITE ORGANIZATIONS IN DANVILLE. EVERYONE COMES TOGETHER TO LEARN AND HAVE FUN, AND I ALWAYS WALK AWAY WITH A COOL NEW SKILL.” - Mary Alice Buck-Hayes, Member IN FY 23 84 MEMBERS 14 EVENTS/ WORKSHOPS IALR contributed to economic success by serving as a temporary home for growing businesses and by providing critical services to innovative companies across industries. Leveraging partnerships, IALR and the Southern Virginia Regional Alliance (SVRA) supported the regional housing market, technology network and more. FACILITATING ECONOMIC SUCCESS Advancing industries by connecting businesses with resources and opportunities $925,000 GRANT FROM THE GO VIRGINIA STATE BOARD EMPOWERS BRIDGE TO RECOVERY PROGRAM The “Bridge to Recovery” GO Virginia Resiliency Grant of $925,000 supported the business community during the COVID-19 pandemic and was extended to deal with the lingering impacts of consequences for workforce. Supported by IALR and SVRA, the Southern Piedmont Technology Council (SPTC) provided events and resources for businesses throughout the region to serve technology- related needs. Planned a regional wage and benefits study Convened a workforce summit Completed a workforce pipeline study on technical skills 43 Member Companies 4,460 Represented Employees RAPID-LAUNCH SPACE IALR has helped many companies expand or launch their business in Southern Virginia by providing near-term lab spaces and high bays, which are used temporarily while a permanent facility is established. In fiscal year 2023, IALR rapid-launch space, offices and labs supported: EXPANDING HOUSING IN SOUTHERN VIRGINIA The Southern Virginia Regional Alliance worked with the City of Danville and localities across the region to create the inaugural Southern Virginia Regional Housing Summit to educate the community and potential developers on the needs for additional housing and the programs in place to support construction. CIRC FASTECH BGF INDUSTRIES MAKING EVERYTHING POSSIBLE (MEP) PHILLIPS CORPORATION Thanks to the work of the Southern Virginia Regional Alliance (SVRA) and many partners, Southern Virginia continues to attract robust businesses from various industry sectors. The SVRA team is growing to better support the regional growth, and several SVRA staff and board members occupy key roles within the Virginia Economic Developers Association (VEDA). SVRA Executive Director Linda Green served as VEDA’s Vice President of the Board and will assume the role of 2024 President. CREATING A STRONG ECONOMY Accessible + Affordable + Skilled = Competitive Business Ecosystem THE VIRGINIA ECONOMIC DEVELOPERS ASSOCIATION RECOGNIZED THE IPERIONX PROJECT AS A TOP PROJECT. THE COMPANY PLEDGED AN INVESTMENT OF $82 MILLION FOR ITS INITIAL PHASE AND PLANS TO CREATE 108 NEW JOBS. DURING FISCAL YEAR 23:545 new jobs 239 companies worked with SVRA 47 prospect company visits 4 company expansions and 5 companies locating in Southern Virginia $335.7 million capital investment Thanks to nearly $2 million in combined funding from the Tobacco Region Revitalization Commission and GO Virginia Region 3, 29 industrial sites across Southern Virginia received a higher certification from the Virginia Business Ready Sites Program. These certifications were achieved through engineering due diligence that helps minimize risks for prospects. ANNOUNCED EXPANSIONS AND NEW PROJECTS 21 sites moved from a Tier 2 to a Tier 4 certification. This denotes a shovel- ready site. 8 industrial sites moved from Tier 2 to Tier 5 which denotes a shovel-ready graded pad site. THE NOMINAL GROSS DOMESTIC PRODUCT (GDP) IN SOUTHERN VIRGINIA EXPANDED BY 9.5% IN 2022. INNOVATION & APPLIED RESEARCH The research and expertise at IALR largely revolve around biology and technology to improve agricultural production. Industry-driven research combines the use of biologicals to enhance agricultural production and sustainability, CEA and the use of robotics and plant imaging technology. Dynamic and industry-leading research, testing services and facilities  With world-class partners like Virginia Tech, IALR is a leader in the growth and evolution of controlled environment agriculture (CEA), a rapidly emerging industry in Southern Virginia and around the world. With soilless systems in greenhouse environments and indoor vertical growing racks, the Virginia Tech-IALR Controlled Environment Agriculture Innovation Center convenes academia and businesses to grow the CEA industry. 220+ PARTICIPANTS FROM AROUND THE WORLD AT THE CEA SUMMIT EAST IALR provides contract research, analytical chemistry testing services and use of polymer testing labs to facilitate a globally competitive business environment. FROM THE VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES TO SUPPORT STRAWBERRY CEA RESEARCH AWARDED $100,000 TO PARTNER WITH COMPANIES TO ADVANCE THE AGBIO AND CEA INDUSTRIES 15 NEW NDAS - Ameer Shakeel, Founder and CTO, AgroSpheres “WE HAVE BEEN WORKING WITH IALR THROUGH THE MANY GROWTH STAGES OF OUR COMPANY AND COULD NOT HAVE ASKED FOR BETTER PARTNERS ALONG THE WAY. IALR’S STATE-OF-THE- ART FACILITIES AND TALENTED SCIENTIFIC TEAM HAVE HELPED US TAKE OUR RNA TECHNOLOGIES FROM LAB TO FIELD.” ENSURING GLOBAL COMPETITIVENESS A space designed for collaborative approaches to implement emerging technologies and manufacturing optimization, the Center for Manufacturing Advancement (CMA) helps companies remain globally competitive. Rich with technology and built to foster innovation and collaboration, the CMA includes: The Center for Manufacturing Advancement The CMA provides state-of-the-art: • Facility space • Technology • Equipment • Leading expertise • Computer Numerical Control (CNC) Machining Innovation Lab • Industry 4.0 Integration Lab • ISO-Certified Metrology Lab • Rapid-Launch Space • U.S. Navy’s Additive Manufacturing Center of Excellence The U.S. Navy established and began ramping up its Additive Manufacturing Center of Excellence (AM CoE) within the CMA. The AM CoE develops and matures additive technologies that enable companies to produce submarine components. SOLVING ADVANCED MANUFACTURING CHALLENGES When combined with the ATDM program and other collaborative workforce development initiatives, IALR is helping to expand critically needed manufacturing talent and resources for the manufacturing sector in Virginia and beyond. MEMBERSHIP AND PARTNERSHIP OPPORTUNITIES ARE AVAILABLE WITHIN THE CMA. Our board has proudly and prudently governed IALR, which grew significantly last fiscal year in response to the expanding needs of the region it supports. IALR welcomed a new leadership position, Executive Vice President of Operations Dr. John H. Hughes IV, to support the continued significant growth at IALR. Dr. Hughes’ addition will help lead expanded organizational divisions and allow for more public and stakeholder engagement. The organization also expanded staff to aid the scaling efforts of the federal Accelerated Training in Defense Manufacturing (ATDM) program. By 2025, ATDM will graduate 800-1,000 workers annually to meet submarine industrial base workforce needs. IALR’s campus saw vital expansion as well. The Center for Manufacturing Advancement, a 51,250-square-foot building, opened with cutting- edge technology to support the optimization and scaling needs of manufacturers while introducing emerging technologies. Additionally, the Navy broke ground on a new 100,000-square-foot national training center to house the rapidly growing ATDM program – which, with the CMA, will expand IALR’s campus from five buildings to six. It is with great care and intention that our board governs the activity and economic transformation strategy of IALR for the good of our communities. We commend President Telly Tucker and his staff on a successful FY 2023 and look forward to many more. Mr. David Bennett Vice Chair of the Board of Trustees; Vice President of Operations, Intertape Polymer Group Mr. Ben Davenport Chairman, First Piedmont Corporation and Davenport Energy Dr. Betty Jo Foster Retired Professor/Vice President, Danville Community College Dr. Tiffany Franks President, Averett University Dr. Guru Ghosh Vice President for Outreach and International Affairs, Virginia Tech Mr. Don Gibson Director, Shenandoah Telecommunications, Inc. Dr. Greg Hodges President, Patrick & Henry Community College Mr. Mark Holland Vice President, Trust Officer, American National Bank and Trust Company Ms. Emma Maddux Kozlowski Community Volunteer Mr. Charles Majors Retired Board Chairman & CEO, American National Bank and Trust Company Ms. Leslie Mantiply Assistant Business Unit Manager, Dewberry The Honorable Donald Merricks Chair of the Board of Trustees; Retired Banker, Politician & Small Business Owner Mr. Kunal Patel Compliance Manager, Caesars Virginia Mr. Lott Rogers President of the IALR Foundation Board; Financial Consultant, Equitable Advisors Dr. Jerry Wallace President, Danville Community College Donald W. Merricks, Board Chair BOARD OF TRUSTEES AS OF JULY 1, 2023 FROM THE BOARD FINANCIALS FINANCIALS 2023 2022 Total Operating Revenues 8,689,059 14,273,591 Total Operating Expenses 24,541,738 18,497,981 Operating Income (loss)(15,852,679)(4,224,390) Total Nonoperating Revenues (expenses) Before Grants 12,597,616 10,603,403 Total Equipment and Construction Grants 21,065,610 12,178,243 Change in New Position 17,810,547 18,557,256 Net Position, Beginning of Year as Restated 52,097,953 32,400,393 Net Position, End of Year*69,908,500 50,957,649 *Net position increase due to increased assets with the construction of our state-funded manufacturing advancement building.