By Lewis Loflin
The relocation of U.S. Solutions from Bristol, Virginia, to Bristol, Tennessee, exemplifies the pitfalls of corporate welfare and competitive bidding wars for low-wage call center jobs in Southwest Virginia (SWVA). Once touted as an economic boon, the telecommunications industry’s reliance on public subsidies has failed to deliver sustainable employment for Bristol, Virginia, residents. With the exception of the EarthLink call center in Norton and a few jobs in Scott County, nearly all call centers in SWVA have closed, leaving behind a legacy of lost jobs and unfulfilled promises. This analysis revisits the 2012-2013 U.S. Solutions move, critiques the inflated job creation claims, and examines the broader impact on Bristol, Virginia, as of 2025, highlighting the region’s ongoing economic challenges.
In 2012, U.S. Solutions Group, a Teleperformance subsidiary, relocated its operations from Bristol, Virginia, to Bristol, Tennessee, across State Street, lured by substantial taxpayer-funded incentives. Richard Venable, CEO of NETWORKS Sullivan County Partnership, claimed the firm would receive undisclosed millions from Tennessee, Sullivan County, and Bristol, Tennessee, to move 318 workers from Bristol and Abingdon to the former Touchstone building on West State Street. The company benefited from direct access to Bristol Virginia Utilities’ (BVU) high-speed fiber optic system, a $120 million public investment initiated in 2002 to spur job creation. However, this investment has yielded negligible results for Bristol, Virginia, with the U.S. Solutions move contributing to a loss of 913 jobs, alongside an earlier relocation by Sprint to Tennessee for similar incentives.
The narrative of job creation was heavily promoted. In August 2012, the Associated Press reported that U.S. Solutions would open a call center and hire 548 people, a claim echoed by Governor Bill Haslam and Economic and Community Development Commissioner Bill Hagerty as a foundation for long-term growth in the Tri-Cities area. The Kingsport Times-News later inflated this to a $4.1 million investment creating 548 jobs by June 2013. Yet, these figures misrepresented reality—most were existing jobs moved across the state line, not new positions. U.S. Solutions promised to hire 200 additional workers, but this future commitment lacks evidence of fulfillment. By September 2013, the company’s website (www.ussolutionsgroup.com) was offline, and reports from the Herald Standard indicated 306 layoffs in Uniontown, Pennsylvania, suggesting workers faced pay cuts or relocation pressures rather than genuine job growth.
Former Bristol, Virginia, City Manager Dewey Cashwell downplayed the economic impact in 2012, noting the workers remained local and predicting no dramatic effect. However, Cashwell’s tenure ended mysteriously in 2013 amid conflicts with the Bristol Virginia City Council, earning him a $120,000 severance package and other benefits. The council’s dissatisfaction may have been linked to his support for The Falls retail development, a $65 million public handout for a Cabela’s at Exit 5 on I-81, though officials denied this connection. This episode underscores the opaque decision-making that has plagued SWVA’s economic strategies, benefiting corporations at taxpayers’ expense.
U.S. Solutions’ track record reveals a pattern of instability and layoffs, contradicting the rosy projections tied to its relocation. The South Florida Business Journal reported 1,223 job cuts in Florida on March 31, 2011, while the Augusta Chronicle noted 247 layoffs in Georgia after hiring 300. Additional cuts included 209 jobs in Dublin, Ohio, in 2009 and 250 in Akron, as documented on employmentspectator.com. This history of “horror stories” raises doubts about the company’s reliability as an economic anchor for Bristol, Tennessee, or SWVA. The relocation exemplifies how poor, low-wage communities like Bristol engage in bidding wars, offering subsidies that fail to secure long-term employment, instead facilitating job shuffling across state lines.
In 2025, the closure of nearly all call centers in SWVA—beyond EarthLink in Norton and limited jobs in Scott County—underscores this failure. The $120 million BVU fiber optic investment, supplemented by $45 million in 2010 federal stimulus funds for LENOWISCO areas and $1.5 billion in Virginia broadband funds since 2021, has not translated into sustainable tech jobs. Instead, it has enabled companies like U.S. Solutions to exploit infrastructure while relocating or shedding jobs, leaving Bristol, Virginia, with a net loss. The claim of 1,113 “new jobs” by Venable and associates, based on moving 318 workers and a vague promise of 200 hires, is a clear exaggeration, reflecting a strategy to maximize public handouts rather than foster genuine economic growth.
The loss of 913 jobs to Tennessee has had a tangible impact on Bristol, Virginia. The city’s unemployment rate, historically elevated due to its reliance on low-wage industries, has been further strained by such relocations. While Cashwell’s 2012 assessment minimized the effect, the cumulative loss of call center jobs—exacerbated by Sprint’s earlier move—has eroded the local tax base and community stability. Residents, many of whom lack advanced education (e.g., ~50% with no diploma in Dickenson County in 2008), are left with few viable alternatives, often migrating to urban areas or accepting underpaid retail and service roles at $12–$15 per hour in 2025.
The BVU fiber optic system, intended to attract high-tech firms, has instead supported transient call center operations that prioritize cost-cutting over local investment. This misalignment reflects a broader trend in SWVA, where public funds—totaling over $300–$400 million—have failed to create a robust tech ecosystem. The departure of U.S. Solutions and other firms highlights the competitive disadvantage faced by Virginia communities when neighboring states offer more lucrative incentives, a dynamic that continues to undermine regional development efforts in 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
| 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 the greatest 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
The U.S. Solutions relocation from Bristol, Virginia, to Bristol, Tennessee, illustrates the failure of corporate welfare in SWVA, where bidding wars for low-wage call centers have resulted in job losses rather than gains. The inflated claim of 1,113 “new jobs” masks the reality of 913 lost positions and unfulfilled hiring promises, a pattern consistent with the region’s history of unaccountable economic development. The LENOWISCO study’s warnings about offshoring and subsidy exploitation remain pertinent, highlighting the need for a shift in strategy. Policymakers must prioritize transparency, reduce reliance on foreign labor through visa programs like those supported by Rep. Morgan Griffith, and invest in education and high-value industries to retain local talent. Without such reforms, SWVA risks further economic decline, with Bristol, Virginia, bearing the brunt of corporate opportunism. 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.
