Sunday, June 20, 2010
Recession has taken a toll in New River Valley
Layoffs and factory closures have beset many companies tied to the auto industry.
The latest from The Ticker blog
A recently released economic analysis suggests that the Blacksburg-Christiansburg-Radford Metropolitan Statistical Area has "generally been harder hit by the recession than the state."
Few residents in the New River Valley would be surprised by this observation, included in an issue of "Virginia Economic Trends": "Manufacturing has been especially struggling in the metro area."
Layoffs and factory closures have beset many companies tied to the automotive industry, ranging from Volvo Trucks North America to TMD Friction.
According to the trends analysis, during the year ended September 2009, the Blacksburg metro area "shed 3,413 jobs, with 2,219 jobs lost in manufacturing."
The Blacksburg MSA includes the city of Radford and the counties of Giles, Montgomery and Pulaski.
"Virginia Economic Trends" is published quarterly by Chmura Economics & Analytics, a private firm based in Richmond.
During the year ending in March, retail sales in the Blacksburg metro area dropped 8 percent, the same decrease experienced in the Roanoke MSA. The two metros tied "for the quickest pace of decline among the state metro areas." Sales fell just 1.1 percent statewide during the same period.
The Chmura analysis of four key indicators determined that this recession "has been worse than the prior two recessions" of 1990 and 2001 for the Blacksburg MSA.
Aric Bopp is executive director of the New River Valley Economic Development Alliance.
Bopp agreed that the recession has taken a toll in the New River Valley and that major job cuts at Volvo Trucks North America and other manufacturers have obviously affected the economic indicators reviewed by the Chmura analysis.
"Fortunately, the economy is a lot more than just numbers," Bopp said.
And, like economic developers in the Roanoke MSA, Bopp said the "Virginia Economic Trends" report does not consider good news surfacing of late in the New River Valley, including hiring by the Dish Network call center, Virginia Casting Industries, Phoenix Packaging Operations and others, as well as expansion at the Virginia Tech Corporate Research Center.
"We're beginning to see signs that things might be stabilizing and headed back in the right direction," he said.
Numbers crunching aside, Bopp said it is important to recognize that there are real-world, personal costs experienced by people who have lost their jobs.
"It's what gets me up in the morning," he said, noting Tuesday that he was with state officials on a business recruitment trip to Philadelphia.
