By Lewis Loflin
In 2015-2016, Southwest Virginia faced a wave of industrial job losses, from Kennametal’s Chilhowie plant to Matthews Aurora in Piney Flats, CSX in Erwin, Ball Corp. in Bristol, and Bristol Compressors, totaling over 700 jobs. Against this backdrop, Woodgrain Millwork’s rehiring of 17 workers in Marion, supported by a $100,000 state grant, offered a glimmer of hope but raised questions about economic strategy. As I’ve explored in Washington County’s Missteps and Bristol’s Tax Increases, the region’s reliance on incentives often overshadows structural challenges. In 2025, these events highlight the need for sustainable growth in the Tri-Cities.
Parallels to Scott County and Energy Center underscore a pattern of lost opportunities.
In 2016, Woodgrain Millwork announced it would rehire 17 workers at its Marion facility, increasing employment from 30 (1996) to 140, per the Bristol Herald Courier (April 19, 2016). The company, tied to forestry through door and window frame production, received a $100,000 grant from Virginia’s economic development funds. Critics noted this conflicted with state efforts to diversify away from timber and coal, which received millions for tech and manufacturing incentives. The grant’s impact—17 jobs averaging $30,000-$40,000 annually—was modest compared to regional losses, echoing concerns in Washington County.
Such incentives, like Bristol’s $25,000 grant in Tax Increases, often yield limited economic returns.
On May 26, 2016, Kennametal informed 89 employees at its Chilhowie plant of plans to close and relocate to Pennsylvania, though no firm date was set (SWVA Today, May 31, 2016). Spokesperson Christina Sutter cited market pressures and competitiveness, stating, “The timeline will be determined in our effects bargaining with Local Union #15094-02.” Kennametal promised support, but the loss of manufacturing jobs, averaging $45,000-$50,000, hit hard. By 2025, no updates confirm the closure’s completion, but the plant’s fate reflects regional declines, similar to Job Losses.
[](https://finance.yahoo.com/news/kennametal-second-quarter-2025-earnings-183009784.html)In June 2016, Matthews Aurora Funeral Solutions announced the closure of its Piney Flats, Tennessee, plant, shifting production to York, Pennsylvania, starting fall 2016 with full closure by early 2017 (WCYB, June 22, 2016). Lured to Sullivan County in 2006 with promises of 100 jobs, the company offered severance but withheld employee numbers. Assuming 100 layoffs, as projected, the loss of casket-making jobs (est. $35,000-$45,000) strained the area, compounding losses like Replacement Jobs.
On October 15, 2015, CSX announced reduced operations at its Erwin, Tennessee, yard due to declining coal traffic, impacting 300 contract and management jobs (WJHL, Oct. 15, 2015). These roles, ranging from $50,000-$70,000, were critical in Unicoi County. The cutback reflected broader coal industry woes, a recurring issue in TICR Challenges, leaving families and businesses reeling.
Ball Corp.’s Bristol plant, operational since 1971, closed in Q2 2016, eliminating 230 jobs, as announced July 29, 2015 (Bristol Herald Courier, April 19, 2016). Daniel W. Fisher, Ball’s president, cited market competition, incurring a $19 million charge for severance and shutdown costs. Similarly, Bristol Compressors cut 120 jobs around 2016, part of ongoing downsizing before its 2018 closure (Bristol Herald Courier, 2018). These losses, totaling 350 manufacturing jobs ($40,000-$60,000), deepened Bristol’s economic strain, as noted in Washington County.
In 2025, Southwest Virginia’s economy shows uneven recovery. Hard Rock Casino’s 2024 opening in Bristol boosts taxes, but poverty (15-20%) and job scarcity persist. Woodgrain Millwork’s 140 jobs remain a bright spot, yet the $100,000 grant’s value is debated when 789 jobs vanished across these closures. Kennametal’s uncertain status and Matthews Aurora’s exit highlight manufacturing’s decline, while CSX’s cuts reflect coal’s fade. Bristol Compressors’ 2018 end cemented losses. Like Scott County, the region needs robust strategies beyond incentives.
Southwest Virginia can rebuild with focus:
| Action | Benefit |
|---|---|
| Job training | Adapts workforce |
| Diverse industries | Stabilizes economy |
| Incentive audits | Ensures value |
| Community input | Aligns priorities |
Investing in resilience, as urged in Meth Epidemic, can transform the Tri-Cities.
The loss of 789 jobs across Kennametal, Matthews Aurora, CSX, Ball Corp., and Bristol Compressors, against Woodgrain’s modest gain, demands a rethink of economic priorities. In 2025, Southwest Virginia must pursue sustainable jobs and transparent policies to uplift its communities.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for helping me draft and refine this article. The final edits and perspective are my own.
