West Virginia’s Industries at a Glance
Compiled by Samantha Cart
Broadband
By Kelly Workman, Director, West Virginia Office of Broadband, & Kent Sowards, Associate Director, Center for Business and Economic Research, Appalachian Transportation Institute, Marshall University Research Corporation
It’s true that technology is constantly changing, and John Chambers, founder and CEO of JC2 Ventures, says technology and innovation wait on no one.
West Virginia’s broadband industry is on a steep upward trend. As West Virginia prepares to execute the $1.2 billion Broadband Equity Access and Deployment program, the state is successfully utilizing funding from the American Rescue Plan Act, a $236 million initiative with nearly 50 projects touching 42 counties awarded to date. Historic federal funding combined with private investments are rapidly improving connectivity throughout the state.
The West Virginia Department of Economic Development (WVDED), Office of Broadband and West Virginia Broadband Enhancement Council are actively working to ensure West Virginia secures its place among the most connected states in the nation.
The WVDED has partnered with the Marshall University Center for Business and Economic Research to complete a broadband industry impact analysis. Preliminary data indicates that the industries primarily involved in broadband expansion represent 5% of total employment in West Virginia, providing approximately 31,000 jobs. The combined industry includes $1.7 billion, or 6%, of total payroll.
Companies serving the greatest number of locations in West Virginia, as reported by the Federal Communications Commission, are Frontier, Comcast and Optimum. Numerous small and regional companies are rapidly expanding, creating job opportunities for direct employment, contractors and suppliers.
**Total Workforce: 31,000
**GDP Contribution: $1.7 billion
Construction
By Jason Pizatella, CEO, Contractors Association of West Virginia
The construction industry gained employees at a rate of 9% in the last quarter of 2023. ConstructConnect reported that during the first 10 months of 2023, West Virginia construction projects had a value of over $5.8 billion, more than triple the $1.8 billion valued during the first 10 months of 2022, a year-to-date increase of 244%. Multiple factors can be attributed for this astounding growth, including the incredible infrastructure commitments elected officials have made in the last several years.
From the successful Roads to Prosperity and Economic Enhancement Grant Fund initiatives by the state to the passage of the generationally significant Infrastructure Investment and Jobs Act by Congress, positive effects are being felt in communities and throughout the construction industry. Collectively these programs will inject more than $8 billion into the West Virginia economy over the next several years.
These jobs, and the investments that go along with them, improve the quality of life for everyone who calls the Mountain State home. Companies within the private sector have also stepped up to make West Virginia what it is today, including Nucor, Form Energy, Berkshire Hathaway Energy Renewables, Mountaintop Beverage, Precision Castparts Corp., GreenPower Motors, Appalachian Regional Clean Hydrogen Hub and LG Electronics.
Total Workforce: 35,337
GDP Contribution: $3.5 million
*Top Employers:
1. West Virginia Department of Highways
2. Triton Construction, Inc.
3. Nitro Construction Services, Inc.
4. Applied Construction Solutions, Inc.
5. Davis H. Elliot Company, Inc.
Higher Education
By Jessica Tice, Senior Director of Communications for the West Virginia Higher Education Policy Commission, & Ben Beaks, Executive Director of the West Virginia
Independent Colleges and Universities
A robust K-12 system overseen by the West Virginia Department of Education makes education in the Mountain State a powerful weapon in the fight against unemployment, population loss and substance use.
This, coupled with the state’s public higher education system, is providing a wealth of educational opportunities for West Virginians. The higher education system includes 12 baccalaureate institutions that offer vast opportunities for a high-quality education at an affordable cost and nine public community and technical colleges that partner with businesses to meet workforce needs and provide a meaningful, career-driven education for students.
In close collaboration with these colleges and universities, West Virginia’s public higher education office, comprised of the Higher Education Policy Commission and Community and Technical College System, is working to arm 60% of the Mountain State’s workforce with a formal credential beyond high school by 2030. Through engagement, advocacy, collaboration and coordination of educational policy and research, the state’s higher education office supports West Virginia’s higher education system in meeting the current and future needs of West Virginia’s citizens and economy.
West Virginia also has six nonprofit, private higher education institutions from as far south as Beckley and as far north as Wheeling. These institutions are home to roughly 6,000 students, two-thirds of which are out-of-state. This makes the private institutions an important draw of talent for the state in addition to its in-state students. More than 1,700 of the state’s private higher education students are first-generation college students. West Virginia’s private institutions play an important role in serving less economically advantaged students as 40% of the students are eligible for Pell Grants, which are aimed to serve lower income families. Together, the six private higher education institutions tout a $233 million annual economic impact on West Virginia.
Total Workforce: 9,303
GDP Contribution: $442,000
*Top Education Employers:
1. West Virginia University
2. Kanawha County Board of Education
3. Berkeley County Board of Education
4. Marshall University
5. Monongalia County Board of Education
Energy
By Nicholas Preservati Director, West Virginia Office of Energy
West Virginia stands at the forefront of the energy sector, fulfilling its role as a traditional energy provider and embracing its leadership position. This means not only harnessing and protecting its natural resources but also adopting a proactive approach in communicating the realities of the energy market. By emphasizing cost-saving measures and operational efficiencies, the state energy market strives to address the diverse needs of its constituents while simultaneously nurturing sustainable growth and development.
At the heart of this vision lies the recognition of the importance of building and supporting a skilled energy workforce. To ensure it remains competitive within an ever-evolving energy landscape, West Virginia needs to position itself as a hub of expertise and innovation. Through a concerted and forward-thinking approach, West Virginia is poised not only to meet its immediate energy requirements but also to emerge as a global leader in energy innovation. This dedication to progress and responsible stewardship underscores the state’s plan to shape a future defined by prosperity and resilience in the energy sector.
Total Workforce: 23,376
GDP Contribution: $19.5 million
*Top Mining, Quarrying, Oil & Gas Employers:
1. Alpha Metallurgical Resources
2. American Consolidated Natural Resources
3. Arch Coal
4. Sev.en Energy AG
5. Coronado Global Resources, Inc.
*Top Utilities Employers:
1. FirstEnergy Corp.
2. American Electric Power Company
3. Mountaineer Gas Company
4. Hope Gas, Inc.
5. West Virginia American Water
Forest Products
By Robert L. Morris, Jr., Executive Director, Randolph County Development Authority
The forest products industry in West Virginia is crucial to the state’s economy. It is the only manufacturing sector that can be found in all 55 counties and contributes nearly $3.5 billion in GDP to the state, employing more than 30,000 West Virginians directly and even more indirectly.
While many think of this industry as logging and sawmills, it offers so much more. From hardwood flooring, cabinets and mouldings to home heating pellets, railroad ties and landscaping mulch, the forest products industry serves as a renewable and sustainable industry for all of West Virginia. World renowned companies such as AHF Products, Weyerhaeuser and American Woodmark are sprinkled throughout the state’s 12 million acres of beautiful forests.
West Virginia forests boast more than 75 billion board feet of lumber inventory and continue to grow nearly three times faster than they are harvested, providing economic growth opportunities that will span well into the future. Furniture, cross laminated timber and other growth sectors have the raw materials needed for success in West Virginia. The forest products industry is here to meet the increasing
demands of the domestic and world consumer markets for products made from sustainable sources.
**Total Workforce: 30,000
**GDP Contribution: $3.5 billion
Health Care: Hospital
By Jim Kaufman, President & CEO, West Virginia Hospital Association
Hospitals are major economic catalysts, supporting West Virginia’s economy and expanding community outreach. They serve as foundational economic engines in communities throughout the state. Future economic success is intertwined with sustaining a vibrant, financially strong and sophisticated health care system ready to deliver high-quality modern health care services into the future.
West Virginia residents want to have peace of mind that they have timely access to high-quality care close to home. West Virginia hospitals directly employ 53,000 people statewide, indirectly employ another 43,000 people and contribute more than $1 billion in community benefit, with a total annual economic impact of $12.5 billion. They pay $3.5 billion in direct wages and benefits and $214 million in annual taxes. The data reinforces the connection between West Virginia’s economy and the role of its hospitals as economic drivers.
Beyond administering lifesaving and emergency medical care to patients around the clock, all hospitals provide incomparable value to their communities. West Virginia hospitals have invested more than $102 million in community benefit activities to improve the health of the local citizens, neighborhoods and communities. Community benefit activities include providing screening services,
working to improve public health through wellness and nutrition activities, educating medical professionals and conducting research to fight disease.
Total Health Care Workforce: 123,798
Health Care GDP Contribution: $9.6 million
Top Hospital Employers:
1. WVU Medicine
2. Vandalia Health Network
3. Marshall Health Network
4. Mon Health
5. Thomas Hospital
Manufacturing
By Bill Bissett, Ed.D., President, West Virginia Manufacturing Association
A word like renaissance can evoke eyerolls, but when discussing the state of manufacturing in West Virginia, it’s the perfect word as a rebirth is happening.
With new companies moving into the state such as Nucor, Precision Castparts Corp. and Form Energy, West Virginia continues its legacy as a state that makes products people and companies need. From handmade wooden furniture to automobiles, the members of the West Virginia Manufacturing Association (WVMA) represent companies and employers that touch lives every day. While the chemical industry remains a major portion of the state’s manufacturing economy and has expanded in recent years, diversification is also occurring in new sectors such as technology and energy production.
An ongoing challenge for manufacturers across the U.S. is finding the necessary workforce to produce their products. The WVMA and its membership work with elected leaders to solve ongoing challenges like child care, housing and transportation. An increased emphasis on postsecondary education is also critical as the next generation is prepared to benefit from the opportunities provided by West Virginia manufacturing.
With a nearly $9 billion economic impact, West Virginia manufacturers offer opportunities that attract a loyal workforce with an average annual compensation of $78,330.
Total Workforce: 47,005
GDP Contribution: $8.7 million
*Top Abrasive Product Manufacturing Employers:
1. The Chemours Company FC, LLC
2. Procter & Gamble Manufacturing Company
3. Mylan-Upjohn-Viatris-Pfizer
4. Allegheny Wood Products
5. Weyerhaeuser NR Company
*Top Measuring & Controlling Device Manufacturing Employers:
1. Toyota Motors Manufacturing West Virginia
2. Northrop Grumman Systems Corporation
3. Constellium Rolled Products Ravenswood LLC
4. Cleveland-Cliffs, Inc.
5. Huntington Alloys Corporation
Technology
By Jim Estep, President & CEO, High Technology Foundation
West Virginia has recently experienced a plethora of much-needed economic investment in a variety of industries, one being the knowledge sector. Just after the new year, Governor Jim Justice announced that the state of West Virginia and LG Electronics’ North America Innovation Center were launching a strategic initiative to grow new business ventures in West Virginia and advance the development of technologies for renewable energy, health care and industries of the future. He noted that alongside LG’s jobs commitment, an investment fund is being created with plans to invest $700 million in West Virginia over the next five years to grow these businesses.
While this is welcomed news on multiple levels, it is particularly exciting because it coincides with a $300 million investment being made at the I-79 Technology Park in Fairmont by the National Oceanic and Atmospheric Administration (NOAA). The NOAA investment will substantially increase the infrastructure at the park that currently supports the agency’s supercomputing center and its three satellite ground station operations.
This expansion will position West Virginia to potentially participate in the multibillion-dollar expansion of the commercial climate and weather industry being driven by the data collection and high-performance computing assets NOAA operates at the park. The strategic initiative with LG could be just the catalyst to make West Virginia the epicenter of this knowledge sector expansion resulting in a truly transformative economic impact.
Total Workforce: 16,979
Top High-Tech Employers:
1. Federal Bureau of Investigation
2. National Energy Technology Laboratory
3. National Oceanic & Atmospheric Administration
4. National Institute for Occupational Safety & Health
5. Department of Defense
Tourism
By Chelsea Ruby, Cabinet Secretary, West Virginia Department of Tourism
Tourism continues to be a bright spot in the state’s economy with its impact growing each year. Last year, annual economic revenue exceeded $7 billion for the first time in West Virginia’s history. With investments in tourism advertising and recreational infrastructure, the industry has grown more than 30% since 2016, despite a global pandemic.
The world has taken note of the transformation occurring in the Mountain State. West Virginia has received recognition from nearly every major travel publication in the world including National Geographic, TIME magazine, USA Today, Condé Nast Traveler and CNN. Visitors are taking note of the popularity and flocking to the state, resulting in increased visitation to each county.
Traveler spending in West Virginia contributes significantly to the state’s economy and has provided an enhanced revenue stream for communities across the state. Recent data shows annual food and beverage spending topped $1.4 billion, and lodging spending surpassed $800 million for the first time ever, led by a 275% increase in short-term rental revenue since 2019.
Visitor spending generated an impressive $887 million in tax revenues last year, with $520 million going directly to both state and local governments. That means on average, tourism-generated tax dollars contributed approximately $715 per household to maintain their current government services.
Total Workforce: 72,143
GDP Contribution: $3.4 million
*Top Accommodation & Food Service Employers:
1. GMRI, Inc.
2. J.W. Ebert Corporation
3. Gino’s Distributing, Inc.
4. Greenbrier Hotel Corporation
5. PNGI Charles Town Gaming, LLC
Editor’s Note:
Gross Domestic Product (GDP) and employment data was supplied by the Regional Research Institute at West Virginia University with the help of Caroline Welter and Heather Stephens and was sourced from U.S. Bureau of Economic Analysis and Lightcast using NAICS codes. For this data, the energy sector includes utilities, mining, quarrying and oil and gas extraction. Tourism includes arts, entertainment, recreation, accommodation and food service. GDP is not available for the high-tech industry, and the employment data is reported using the classification from Dorfman, Partridge and Galloway. Please contact our staff for further information.
*This top employer data was supplied by WorkForce West Virginia using NAICS codes.
**GDP and employment data for broadband and forest products industries were compiled by the contributing authors for each section.
