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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.