Author: Tim Aylor
No instant solutions exist to rejuvenate a Northwest regional* economy encumbered by old Appalachian problems and new global realities; but the Northwest Prosperity Zone region has come a long way in many respects.
Poverty rates have fallen greatly from generations past and high school graduation rates are among the best in the state. Northwest and its towns like Hickory enjoy a legacy of craftmanship and industry that has helped to create a welcoming environment for people wishing to start a business. Though still dependent on its natural resources and traditional manufacturing, the region's economy has become more diverse and has attracted new manufacturing and service businesses.
From 2010–2014, announced business investments in the Northwest region totaled 428 projects — equating to more than 19,000 jobs and $2.4 billion in investment. Some of the largest of these were data centers. For example, Apple and Google are two sought-after companies that have chosen the Northwest for recent major capital investments. Target and GE Aeronautics are examples of companies that have chosen the region for distribution centers and manufacturing facilities. Manufacturing in the area has branched out from textiles and furniture and now is also concentrated in Electrical Equipment, Plastics and Rubber Products, Food, Truck, and Chemical Manufacturing, to name a few. These trends have contibuted to bringing the region’s unemployment rate down from its elevated level following the 2007–2009 recession to nearly the statewide level.
While these changes are significant, much of Northwest still does not exhibit the same economic vitality and growth as some other parts of the state. With 600,000 residents, it is among the most rural and least populous of the regions. The scenic area shares state borders with Tennessee and Virginia and faces challenges that many Appalachian areas have.
Educational attainment levels are among the lowest in the state. Long-term population growth trends are slower in the Northwest than in any other region in North Carolina and it has among the highest concentration of adults aged 45 and older. This contributed to a smaller labor force in 2013 than in 2001 — the only region where that’s the case.
Making things worse, the region’s traditional industries like furniture manufacturing and textiles weathered growing global competition and job losses that will take time to fully recover. In 2008, 267,000 people were employed in the Northwest. By 2013, that number had fallen to 254,000 — the largest regional percentage decline.
Despite making strides, the Northwest region has a ways to go before reaching its economic summit because it has been battered by job losses and structural economic changes. Yet, there are opportunities to speed along its recovery by continuing to attract corporate investment while growing near-term employment and incomes. Regional partnerships, and workforce training and education are keys to spurring this local development and economic change.
*The Northwest Prosperity Zone is one of eight regions that was formed in 2014 to improve efficiencies between governmental agencies and to enhance customer service. It comprises Alexander, Alleghany, Ashe, Avery, Burke, Caldwell, Catawba, McDowell, Mitchell, Watauga, Wilkes, and Yancey counties. For an economic and demographic introduction to these new regions, see LEAD’s Prosperity Zone Data Books on LEAD’s website.