By Lewis Loflin
Congressman Rick Boucher (D-VA 9th), who served until 2010, promoted call centers as a strategy to bring high-tech jobs to Southwest Virginia (SWVA). Supported by LENOWISCO and other agencies, these initiatives received significant public funding but faced challenges, with many call centers closing or downsizing over time. This analysis examines Boucher’s call center initiatives, their economic outcomes, and the current state of SWVA as of 2025, focusing on employment trends and regional impacts.
Boucher’s vision centered on using call centers to create technology-driven employment in SWVA. One example is the Pioneer Center in Duffield, which opened in 2005 with $1.5 million in funding and was projected to create 75–125 jobs. By 2016, the center had not attracted significant private business and primarily housed government agencies and non-profits, according to local economic development records. Similarly, LENOWISCO (Lee, Norton, Wise, Scott Counties) invested approximately $120 million in broadband infrastructure since 2007 to support economic growth. This included $45 million in 2010 federal stimulus funds and additional state investments. However, the resulting jobs were primarily in call centers, offering wages of $8–$9/hour (equivalent to $12–$14/hour in 2025), which provided limited economic advancement.
A 2005 LENOWISCO study cautioned: “The region has been replacing traditional manufacturing jobs with call center jobs, which provide limited advancement and work opportunities...easily moved to other regions and/or countries.” Despite this, call centers like Results and KCG received public subsidies but closed within a few years. Results, based in Duffield, closed by 2008, and affected workers became eligible for federal aid in 2010. KCG in Pennington Gap, launched in 2005 with 48 initial hires and a goal of 225 jobs, received $344,700 from the Tobacco Commission in 2009 for a data center that was never built. The center closed by 2013, and its equipment was sold for $1 by the Lee County IDA.
Other call centers in LENOWISCO counties, such as US Solutions and Sprint, relocated to Tennessee by 2012 to pursue additional incentives, illustrating the mobility of such operations. Over $10 million in subsidies across Scott and Lee Counties supported these initiatives, but the jobs created were often temporary. Northrop Grumman and AMS-CGI in Russell County, projected to create 1,000 high-tech jobs, showed limited growth, according to Bristol Herald Courier investigations. Boucher and Senator Mark Warner supported “insourcing” policies that aimed to bring call center jobs to rural areas, but these efforts primarily offered low-wage positions, often at $8.50/hour, requiring minimal skills, as noted by Lee County IDA’s Tim Long in 2010.
The image above illustrates the population decline in Southwest Virginia from 2010 to 2018, a trend that reflects the region’s ongoing economic challenges, including limited job opportunities following call center closures.
By 2025, SWVA continues to face economic difficulties. The Tri-Cities area has lost over 60,000 jobs since 2009, according to regional economic data. Median wages in the Bristol Metropolitan Statistical Area (MSA) have risen from $15.27 in 2016 to approximately $17.33 in 2025, and in the Johnson City MSA from $14.47 to $16.15, adjusted for 3% annual inflation. Per capita income in Bristol, VA, has increased from $21,589 in 2018 to approximately $27,000 in 2025, also adjusted for inflation. However, these figures remain below the national average and living wage standards for many residents. The information sector in SWVA declined by 45% from 2010 to 2020, compared to a 2% national increase, highlighting the region’s struggle to develop sustainable employment.
The 2005 LENOWISCO study noted: “The region has been replacing traditional manufacturing jobs with call center jobs, which provide limited advancement and work opportunities...easily moved to other regions and/or countries.” It also highlighted offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms leveraging subsidies, such as VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Educational challenges—~50% lacking a high school diploma in Dickenson County (2008)—further limited the region’s ability to sustain such employment. LENOWISCO Study, sullivan-county.com
| Sector | SWVA (% Decline) | USA (% Change) |
|---|---|---|
| Arts, Ent., & Rec. | -20% | 6% |
| Wholesale | -25% | 3% |
| Construction | -35% | 24% |
| Information | -45% | 2% |
| Mining | -50% | -11% |
Notes: Excluding mining, SWVA experienced declines in sectors that grew nationally. The region’s mining sector decline exceeded the national average. A total of 10,451 jobs were eliminated across these five sectors, with 16,774 jobs lost when including national mining sector declines between 2010-2020. The 45% decline in the information sector persists despite an estimated $200 million in public investment, likely exceeding $300–$400 million, with significant data withheld.
Ref: Zach Jackson, Virginia Tech
Congressman Rick Boucher’s call center initiatives in Southwest Virginia, supported by LENOWISCO and other agencies, aimed to bring technology-driven jobs to the region but faced significant challenges. Many call centers, such as Results and KCG, closed or downsized within a few years, despite millions in public funding. By 2025, SWVA continues to experience economic difficulties, with declining employment in key sectors, population loss, and wages below living standards for many residents. The LENOWISCO study’s observations on call center instability remain relevant, highlighting the need for alternative economic development strategies. For further context, see History, Causes of Poverty in Southwest Virginia. Compiled April 16, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting in drafting and refining this article. The final perspective and edits are my own.
