RD78 - Virginia Coalfield Economic Development Authority 2009 Annual Report


Executive Summary:
This year was in many respects a noteworthy year for the Virginia coalfield region, which VCEDA markets as “Virginia’s e-Region.” With the national economic conditions, it was a slower year for company location decisions, however, during every month of 2009 the region’s average unemployment rate was below the national average. In fact, during the year several localities in the region had unemployment rates near or even below the Virginia state average, also noteworthy for the region. And, a comparison with adjacent counties in other states shows that, in terms of unemployment, Virginia’s e-Region has been performing significantly better. Factors helping to benefit the region’s economy include a strong energy industry, an increase in construction jobs (particularly at the Dominion Virginia City Hybrid Energy Center), and growth in the information technology jobs sector such as at Northrop Grumman, CGI, and Sykes.

What these statistics also help validate is the wisdom of the creation of VCEDA over 21 years ago when it was realized that the regional economy needed to diversify and was not keeping pace with the rest of the state. A 2007 Virginia Tech study indicates that if VCEDA had not been created, unemployment rates in the region could have exceeded 18 percent by 2006. The existence of a regional organization such as VCEDA to serve as an ambassador for the region and a facilitator to bring resources together, in addition to providing funding for noteworthy projects, has been key to the survival and growth of the region’s economy.

Although progress has been made in regional unemployment rates, much work remains to be done to bring more diversified, more highly skilled, and better paying jobs to the region. Regional per capita income rates still lag behind the state average. These are issues on which VCEDA will continue to focus, in accordance with the organization’s prime directive of helping to enhance and diversify the region’s economy with an emphasis on basic jobs. As we look forward to 2010 and beyond, we stand ready to work on these important issues.