By Lewis Loflin
Southwest Virginia, including Bristol, VA/TN, Wise, and Buchanan Counties, once relied on sewing factories like Eastern Isles, Buster Brown, and Donnkenny for steady, if low-paying, jobs. The 1994 North American Free Trade Agreement (NAFTA) accelerated their relocation to Mexico, leaving ~10,000 manufacturing jobs lost by 2000 and vacant buildings often publicly owned. Local leaders, through the Virginia Coalfield Economic Development Authority (VCEDA), turned to call centers to fill the gap, hoping for “high-tech” economic revival. Bristol Herald Courier, September 28, 2003
By 2003, ~2,000 workers staffed 11 call centers, supporting computer users, wireless services, and more. Facilities in Wise (Sykes Enterprises) and Saltville drew companies with subsidies and low labor costs, but wages—$7–$8/hour, some at minimum wage ($5.15)—lagged behind coal mining’s higher pay.
VCEDA, created in 1988 and funded by coal severance taxes, aimed to diversify Southwest Virginia’s economy. It claimed ~9,000–10,000 jobs created by 2005, backed by $186 million in incentives for call centers, auto parts, and wood flooring firms. However, a 2005 VCEDA response clarified these were “projected” figures. Many businesses closed or underperformed—for example, a Lebanon site claimed 1,200 jobs but housed ~100 by 2013, mostly via a state contractor. VCEDA Correspondence, April 18, 2005
Ron Flanary, a VCEDA board member, noted the region’s abundant workforce (~23,000 registered jobseekers, 2003) and training at community colleges as draws. Yet, low wages (1.5x minimum wage, ~$7.73) and subsidies, like $5.6 million for Sykes in Wise, often attracted transient firms. Bristol Herald Courier, 2003
Call centers faced global competition early on. The Labor Department reported ~500,000 IT jobs offshored by 2003, with projections of 1–3.5 million by 2015. Sykes’ Wise manager, Todd McReynolds, acknowledged overseas facilities in India and the Philippines as “part of our business” in 2008, citing a competitive market. Non-unionized labor and anti-union policies locally amplified vulnerability. Communications Workers of America, 2003
Closures followed: Sykes laid off 197 in Vansant (2019), leaving buildings vacant until reused, like VEC’s 2021 move to Southern Gap. Low wages and instability drove outmigration, with ~35,000 graduates leaving Tri-Cities (1980s–2000s), worsened by education gaps (~50% no diploma in Dickenson County, 2008). Bristol Herald Courier, 2006
Call centers persist in Southwest Virginia, employing ~1,500 region-wide, with wages at $12–$15/hour. VCEDA’s 2018 study claimed $6.9 billion in impact and 37,311 jobs, though call centers remain volatile. Automation and AI displaced ~20% of such roles by 2025, per industry trends. VEC’s Buchanan center, using a former Sykes site, supports 200+ jobs, bolstered by a $200,000 grant. VCEDA, 2021
[](https://www.vceda.us/3846-2/)[](https://wcyb.com/news/local/up-to-110-new-jobs-coming-to-buchanan-county-as-vec-relocating-and-expanding-call-center)The region’s economy leans on retail and services; high-tech jobs are under 1%. Population dropped 2–4% (2010–2025), and ~25% lack high school diplomas. VCEDA’s 2024 efforts added 487 jobs ($18.86 million investment), but diversification lags, with call centers still a risky bet. WJHL, 2024
Southwest Virginia’s call center push sought to replace lost factory jobs but faced low wages, global offshoring, and automation. VCEDA’s subsidies brought temporary gains, yet questionable job claims and education gaps hindered lasting growth. Diversifying beyond low-skill sectors requires stronger training and retention strategies.
Originally posted September 2003. Updated April 15, 2025.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting with drafting and refining this article. The final content reflects my own analysis and edits.
