Virginia Coalfield Economic Development Authority notched some major successes in 2007

NORTON, Va – Virginia’s coalfield counties had a strong year in terms of economic development, said Jonathan Belcher, executive director of the Virginia Coalfield Economic Development Authority.

One of the primary reasons for the good economic news is a new emphasis on three key areas that give the seven coalfield counties and the city of Norton an edge in recruiting business and industry, Belcher said.

"We have been focusing heavily on the Virginia e-Region," said Belcher, who just completed his first full year as head of VCEDA, a regional authority created nearly 20 years ago by the Virginia General Assembly to diversify the coalfield region’s economy.

Belcher explained that Virginia’s e-Region refers to electronic information technology, energy and education. The e-Region is VCEDA’s term for its new campaign to market the region. The coalfield region includes Buchanan, Dickenson, Wise, Tazewell, Russell, Scott, and Lee counties and the city of Norton.

The coalfield region remains in an economic transition, Belcher said. New jobs in information technology and in energy-related companies are developing in the area, he said.

"We want to keep focusing efforts on the industries that are important to the area," he said. "We feel this is an area where we have an advantage."

The region has had success luring high-tech companies such as Northrop Grumman and CGI to Russell County, Va., and the companies opened permanent facilities in Lebanon earlier this month, Belcher said. The region’s colleges and community colleges developed good worker-training programs and degree programs to prepare the work force for the new high-tech jobs, he said

Belcher added that the region has had positive job growth in 2007. He pointed to the region’s steady decline in jobless rates as proof of the economic turn-around.

According to data from the Virginia Employment Commission, VCEDA localities have a total population of 209,928 people with 83,976 in the labor force. Only 3,972 people in the labor force are unemployed. The average jobless rate in the coalfield region hovers between 4.2 percent to 5.5 percent.

Belcher said several new companies announced plans to open in the region in 2007 while some existing companies expanded operations.

"We feel it was a productive year," Belcher said.

Sykes Enterprises has announced plans to open a new customer call center in Buchanan County’s new Southern Gap regional business and industrial park. Belcher said the facility could create 400 jobs in a few years.

Pinnacle Wood Products of Virginia opened in Wise County and expects to create more than 200 jobs within the next three years.

Buchanan Pump is adding 15 new workers to its 34-member labor force as well, he said.

The region is also getting its first biodiesel fuel production company in Lee County. Synergy Biofuels will create 30 jobs when it opens.

Belcher said the authority will also work to support its existing industries as well as launch a new campaign to bring more manufacturing jobs to the region in 2008.

The authority is also encouraged that a recently completed Virginia Tech study shows VCEDA has made a difference in the coalfields since it was created, Belcher said.

"We were pleased to see the results of the report," Belcher said. "It shows we are having a positive impact on the region and that the companies we work with see us as ambassadors for the region."

According to the report, the companies VCEDA has worked with over the years laud the authority for more than the economic incentives it offers new industry as a lure to the region.

VCEDA is funded by a small tax on coal and natural gas produced in the region. The money collected operates the authority and gives each county some money to use to lure new business and industry to the area.

kstill@bristolnews.com | (276) 679-1338