2017 Annual Report

Regional Economic Impact History & Trends Between 1990 and 2016 mining employment has decreased by 78%, and manufacturing had decreased by 67%. Specific downturns in these industries have played a large role in the overall trends. The coal industry in Southwest Virginia has been in a steady decline for decades due to changes in environmental regulations that govern both mining practices and the use of coal as an energy source. The most recent decline in coal employment in the region comes of the heels of falling natural gas prices contributing to a diminished demand of SWVA coal. Like manufacturing in much of the US, factories throughout Southwest Virginia, including the large furniture manufacturing sector in several counties, have moved operations abroad to take advantage of cheaper labor costs. A slight rise in manufacturing employment in the last five years is partially the result of a new focus on advanced manufacturing. However, the overall job loss in this industry re- mains in the tens of thousands over the past quarter century. Beginning in the early 2000s, Southwest Virginia began developing a new response to these economic changes by looking at its unique assets for economic development. A strategy for a creative economy based off of the region’s authentic, distinctive, and alive assets of traditional music, art and craft, local food and drink, and outdoor beauty and recreation was put into motion. The Crooked Road: Virginia’s Heritage Music Trail and ‘Round the Mountain: Southwest Virginia’s Artisan Network were developed, branded, and marketed. The entire region also began community development efforts and a branding/marketing campaign under the Southwest Virginia Cultural Heritage Foundation. In 2012, Friends of Southwest Virginia undertook its newest initiative, Appalachian Spring with the goals of developing an outdoor recreation industry in the region and promoting SWVA as a world class recreation destination.