on coal. In short, the region that could least afford the losses
experienced the greatest losses. These economic losses are
also coupled with severe human capital challenges related to
poor health outcomes, dwindling population and drug abuse.
The economic challenges in the Southern Coalfields region
are enormous. A fundamental problem is that the region has
fallen into a vicious cycle. Consider this: economic losses occur
due to the loss of coal, and some men and women who lose
their jobs decide to move out of the region in search of work.
Statistics show that, overall, those who out-migrate tend to be
younger, healthier and more educated, leaving the region less
attractive to potential businesses. In addition, drug abuse rises
as economic opportunity falls, further eroding the region’s
attractiveness to potential businesses. This kind of cycle is
very difficult to curb.
The region is now searching for industries that will fill the
gap that has been created by significant declines in coal employ-
ment. While the region definitely has potential with various
industries like adventure tourism and industrial hemp farming,
it’s hard to say precisely which industries will work in the
region and which will not, given its various characteristics. The
fate of the region ultimately depends on entrepreneurs willing
to try different and innovative directions. A primary role for
government is to foster an environment that encourages and
supports these entrepreneurs as they try different directions.
Shale Gas Boom
The state’s Shale Gas Boom region has experienced a decent
amount of job growth in recent years, and opportunities are
looking up. However, a sizeable share of recent job growth
in the region is due to natural gas pipeline construction, and
while these jobs tend to be high-paying and create economic
benefits in many ways, most are temporary and will naturally
disappear in a few years. Further, in general, while drilling and
exporting raw natural gas also creates an array of economic
benefits, the industry is very capital intensive, meaning that
the number of workers involved is relatively small compared to
the value of the economic output. This is not bad; it is just the
nature of the industry. However, this does mean drilling and
exporting raw natural gas is unlikely to be a game-changing
opportunity for the region.
Rather, that opportunity lies in keeping the raw natural gas
in the state and allowing the value added to occur here rather
than elsewhere. West Virginia truly has the opportunity to
attract dozens of industries that would benefit from a cheap,
local supply of natural gas to use in the manufacturing of
countless chemical and plastics products. The Mountain State
has the potential to realize tens of thousands of manufacturing
jobs throughout a wide swatch of the state. However, other
states like Pennsylvania and Ohio are working vigorously to
attract these jobs as well, so this flourishing of activity is not
going to just happen. We must work aggressively to promote
our state and make it as attractive as possible to these potential
businesses.
Eastern Panhandle
West Virginia’s Eastern Panhandle region has, by far, shown
the strongest population and job growth of any region of
the state in recent years. The region has benefited from its
proximity to the very strong Washington metropolitan area
that includes Jefferson County. Thousands have chosen to
work in this metro area outside of the state while living in
West Virginia because of quality of life considerations and
lower cost of living. This bedroom community characteristic
is certainly a positive for economic development. Hopefully,
commuting options from West Virginia into the D.C. area will
be enhanced in coming years, allowing for more economic
development of this sort.
Further, the area has benefited from some very sizeable
capital investments within the state in recent years, making for
a more diverse array of economic drivers. The region is very
attractive to potential businesses from numerous perspectives
like location, highway infrastructure and the availability of
human capital, and this combination has recently led to signif-
icant gains in distribution and manufacturing. The economic
forecast calls for continued healthy growth in this region in
coming years. Economic development priorities for the area
likely include continuing to enhance infrastructure, providing
amenities that make the area more attractive to potential resi-
dents and continuing to market the area so potential businesses
are aware of the strengths the region offers.
North Central
West Virginia’s North Central region is another outlier
within the state as this region has experienced very stable
and healthy growth for many years. In North Central, while
the presence of West Virginia University is definitely a pillar
of strength and stability, it is difficult to really point to one
factor that is responsible for the region’s economic successes,
and this is exactly what one hopes for from an economic
development perspective. We want to see a diversified economic
landscape where multiple sectors are experiencing growth and
it is impossible to identify one factor that is responsible for a
strong economy.
North Central continues to be a relatively attractive region
within West Virginia for potential businesses because of this
diversity. And perhaps more importantly, the region benefits
from stronger human capital outcomes, which means businesses
can have a greater level of assurance that they will be able to
find the skilled, healthy and drug-free workers they need if
they choose to locate in the region. North Central has a lot of
potential in various sectors, such as health care, manufacturing
and high-tech manufacturing. While somewhat on the edge
of the Shale Gas Boom region, North Central stands to see
tremendous gains in professional and business services sectors
as downstream natural gas manufacturing opportunities
materialize. A key economic development priority should be
to continue working toward adequate infrastructure to ensure
reasonable drive times and housing availability.
New River Gorge
The state’s New River Gorge region has suffered in recent
years, largely driven by losses in coal. However, we are already
seeing improvements in the region, and growth is expected in
coming years. Several green shoots have emerged recently, such
as Great Barrel Company’s new facility in Greenbrier County.
The region has strengths to build upon, like its urban core in
Beckley, better infrastructure access, a manufacturing footprint,
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