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COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) - Executive Summary

The District is located in south?central Virginia in excellent proximity to large regional markets. In addition to an interstate highway and several U.S. and state highways the District is served by four municipal, one regional and three international airports within a one-hundred mile radius. The District, comprised of Brunswick, Halifax and Mecklenburg Counties plus twelve towns, has an abundance of resources including educational facilities, outdoor recreational facilities, industrial and residential sites, medical services, and two lakes comprising over 1,100 miles of shoreline. These resources enhance the District's competitive advantage as an attractor of people and business.

A recent assessment of the labor market in the Planning District revealed disparity in the employment sectors. According to Wadley Donovan Group using the 1997 U.S. Census of Trade, accounting for 39% of total employment, manufacturing is more than twice the proportional size of the state and national averages. Employment in agriculture, forestry and construction is also higher than the national average. On the other hand the region is severely underrepresented in finance, insurance, and real estate sectors, with only 2% of employment compared to 7% in Virginia and the nation. Also the region is under represented in transportation and public utilities, wholesale trade and services. The District’s proportion of employment in the retail trade sector is comparable to national figures but below the state.

Additionally within the sub-sector of manufacturing most of the employment is in the textile/apparel markets and most of the agriculture jobs are in tobacco—all declining markets and traditionally low-wage paying industries.

For decades, even centuries, the economic structure of the District has revolved around agriculture with tobacco being the principal crop. Our counties still rank 2nd, 3rd, and 4th in tobacco production in the state. The agrarian economy and lifestyle within the region has undergone tremendous changes in the past two decades. The role of agriculture as an employment-generating sector of the economy has declined significantly during this time and the trend continues. Tobacco is under attack at every level and farmers are staggering under the blows of recent court decisions. The traditional tobacco auction is being eliminated in favor of direct or contract sales to the manufacturer, leaving the towns which once thrived on “market days” with lost revenue and empty warehouses.

The number of small farms has steadily decreased within the region. Many small farmers have been able to keep their farms only because someone in the family has been providing non-farm income. Presently the lack of non?farm jobs is one of the most serious economic problems for small farmers. During the fifties, sixties and seventies many textile manufacturers built businesses in Southside Virginia, benefiting from readily available labor exiting the farms. As the textile sector grew the area’s economy developed a dependence upon this industry. With the passing of the North American Free Trade Agreement (NAFTA), the region began experiencing another severe economic blow. Industries have been attracted by the cheap labor in Mexico and overseas, and thousands of jobs have been lost. Since 1998, more than 4,200 jobs have been lost in Planning District 13; of these 50% or 2,100 were in the textile/apparel sector, thus presenting another challenge to the economic stability of the region. These losses were counteracted by only 1,400 new jobs.

As these traditional manufacturing and agricultural jobs disappear, new types of industries are expanding and the Planning District labor force, which is plentiful, needs to take steps to ensure they are properly trained to take advantage of these new opportunities. The infrastructure necessary to attract these industries must also be available. In this age of new technology, industrial parks must offer, in addition to water and sewer and a good road network, high-speed communications capabilities. Additionally, marketing to “get the word out” about the region figures prominently in any economic development strategy.

· Workforce training is being addressed through the Work Keys Program, the Southern Virginia Higher Education Center, and the Southside Virginia Community College. Also the Lake Country Advanced Knowledge Center in South Hill is being developed to serve the eastern half of the District with job skills improvement.

· Infrastructure deficiencies are constantly monitored and where necessary improvement projects are underway. High-speed communications infrastructure is to be installed in several areas including industrial parks within the District.

· Lake Country Marketing Council was created to promote and market the counties of the Southside Planning District. Additionally the District economic development offices work closely with the Virginia Economic Development Partnership and the Department of Business Assistance. Tourism is being explored as another economic development tool.

· Downtown redevelopment is taking place to revitalize the towns’ central business districts to provide another drawing card for the District.

· Development of projects to draw visitors to the Region.

· The continued expansion of commercial and industrial activities often depends on the availability of low?cost capital. The Lake Country Development Corporation is a locally administered program offering financing at reasonable rates to new or expanding businesses that locate within Planning District 13. The program is primarily targeted for manufacturing companies that create and/or retain a minimum of 15 jobs.