High Country Council of Governments
Regional Economic Description
The High Country Council of Governments region covers the northwestern corner of the state. All counties except Wilkes are west of the Blue Ridge escarpment, though part of Wilkes extends up the escarpment, and the county also includes the Brushy Mountains. The region is rural but not remote, being accessible to large population centers in the Piedmont. All towns in the region except Boone are less than 4,300 in population, with half below 700. The scenic environment, outdoor recreation opportunities, and varied climateenhance the quality of life. A solid educational foundation is a positive characteristic, with a major state university in the center of the region and a strong community college system with a presence in each county.
The region lags behind both the state and the nation economically. Median household income is $35,081, compared to $43,754 in North Carolina and $50,221in the United States. The poverty rate shows a similar pattern: 18.9% regionally, 16.2% state, and 14.3% USA. Like much of North Carolina, the High Country region has been economically dependent on furniture and textile manufacturing, and – in the agricultural sector – tobacco.Unemployment in December 2013 is 7.5%, compared to 6.9% in the state and 6.7% in the nation.
These economic drivers and other industries have declined precipitously over the last two decades, and have not been replaced with equally dominant economic activities. However, a more mixed, complex economy may characterize the region in the future, with no prevailing industries overshadowing other types of commerce.
Tyson Foods and Lowes Home Improvement corporate facilities are major employers in Wilkes County. Tyson contracts with local poultry growers and operates poultry processing facilities. Wilkes was home to the corporate headquarters of Lowes until the company moved to Mooresville, but a significant number of corporate operations remain in the county. Both Tyson and Lowes have spurred local collateral businesses/industries.
Alleghany and Ashe Counties contain a number of industries manufacturing a wide variety of products: emergency vehicles, packaging products, automobile belts, textile products, and floor care equipment.
Appalachian State University has a major economic impact in Watauga County, both in terms of employment and the presence of a large student body. Aregional hospital and related medical facilities employ over 1,000 persons. Another major employer (over 500) in Watauga County is Samaritans Purse, a nongovernmental international disaster relief and humanitarian aid organization.
Geography ties the economies of Mitchell, Yancey, and part of Avery Counties together along the Toe River Valley. Much of the three counties’ economic activity is concentrated along the river corridor. Mining of mica, quartz, and feldspar is prevalent in Mitchell County. The state of North Carolina employs over 500 persons at a prison located at the border of Avery and Mitchell. In Yancey, Glen Raven manufactures specialized textile products, andAltec produces aerial lifts for utility vehicles.
While a single large employer can have a major economic impact in a small rural county, the collective influence of small businesses in the High Country region is above average. Businesses with less than 10 employees make-up 77% of the total number of businesses in the region, compared to 72% in North Carolina and 73% in the United States. The number of non-employer businesses (i.e. self-employed) compared to the number of other businesses is a ratio of 3.3 to 1; higher than the 2.8 to 1 ratio for both North Carolina and the United States.
Tourism is a significant economic force in all counties, directly benefiting retail, lodging, and restaurant establishments, and having indirect effects on other aspects of the economy. Major attractions such as ski resorts and Tweetsie Railroad provide a considerable amount of seasonal employment in Avery and Watauga Counties. Several annual events such as the Grandfather Mountain Highland Games and the internationally-known music festival Merlefest stimulate local economies for a short period, but serially have a significant year-round impact on the regional economy. The region offers an abundance of outdoor recreation opportunities – hiking, biking, rock climbing, canoeing, cross-country skiing, fishing, birding – that are major draws, and in some cases nationally recognized. Developed recreation includes six state parks and national forest lands. The Blue Ridge Parkway extends through all seven counties, while the Appalachian Trail skirts the region in some locations.
Many of the general features that draw tourists (e.g. scenery, climate, recreation)also contribute to thequality of life for permanent residents, making the region attractive to business and encouraging young people to remain in the area. Though indirect, these factors have a considerable influence on all aspects of the regional economy.
Fraser fir Christmas tree production has been the dominant agricultural activity in much of the region for many years. Overproduction, however, has recently saturated the market, making it less profitable. Many farms sell directly to consumers on-site through choose-&-cut promotions, a practice that has grown very popular and incidentally stimulates other tourism-related businesses. Other forms of agri-tourism exist – e.g. corn mazes and wineries – but not on the same scale. To some degree, Fraser fir has replaced burley tobacco as the region’s primary farm commodity. Beef cattle production remains an important agricultural sector. Pastures (& associated hay) and Fraser firs make-up a large majority of agricultural land use and incidentally contribute to the scenic variety of the region.While it shares many features with the other counties, Wilkes County has its own unique agricultural characteristics: poultry farming, several large commercial apple and peach orchards, and timber and wood products.
A growing agricultural sector is vegetables (especially organic) and, to a lesser extent, fruits. The region has access to a distribution network in the Piedmont, a cooperative regional sales system, and farm-to-consumer outlets such as farmers markets and community supported agriculture organizations (CSAs). Demand has been strong and increasing, even in a slow economy. Societal concerns about food safety and a desire for local food are contributing to this demand.
Vegetable and fruit production requires much less land than cattle and Fraser firs, but is comparably profitable. Agriculture in the region seems to be trending away from commodities toward a more diverse, specialized model with multiple market outlets. Agri-tourism has potential, especially since the region is already tourist-oriented.
Identifying economic strengths and weaknesses of the region is difficult; because the nature of the region’s economic future is unknown. For example, no interstate highway runs through northwestern North Carolina and the area is not on any route between metropolitan centers. Under the old manufacturing model, this situation would be a major handicap. But few expect manufacturing to return at or near its former level. With advances in technology, and economic activity that does not require the movement of massive amounts of materials and goods, such seclusion may even be attractive to some entrepreneurs. Much of the region’s economy already depends –either directly or indirectly – on its rural and scenic characteristics.
No obvious model for future economic development has emerged, and perhaps a single model should not be expected. Whatever its constituent characteristics, the region’s future economy will likely be diverse, complex, and somewhat unpredictable.