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Manufacturing the economic foundation
By Sharon Caskey Hayes

Despite some shifts in employment levels, manufacturing has remained the economic foundation of the Tri-Cities region for years.

In 2000, manufacturing accounted for 47,908 jobs in the metropolitan area, representing 18.35 percent of the region’s employment base. That number has declined 6 percent from 1990, when manufacturing made up 56,050, or 24.4 percent, of the region’s jobs.

In comparison, manufacturing represented only 11.41 percent of the jobs across the nation in 2000, down from 14.13 percent in 1990.

“Despite job losses in recent years, we continue to be an area where the major economic activity is manufacturing,” said Dr. Steb Hipple, economist at East Tennessee State University. “We will continue to be more dependent on manufacturing than most other areas in the foreseeable future.”

The Tri-Cities is home to more than 140 manufacturing and distribution firms.

The region’s largest manufacturer is Eastman Chemical Co., employing 15,800 worldwide, with nearly 8,000 in Kingsport. Eastman manufactures and markets chemicals, fibers and plastics.

Other major manufacturers in Kingsport are Quebecor World, with 1,450 employees; AFG Industries, a glass producer with 1,167; Weyerhaeuser, a pulp and paper mill, with 400; BAE Systems, with nearly 400 at Holston Army Ammunition Plant; and Chiquola Fabrics, with 250.

In Bristol, large manufacturers include Exide Battery Plant, with 1,000 employees; King Pharmaceuticals, with 764; GlaxoSmithKline, with 383; Robinette Co., with 238; and Bristol Metals, with 200.

In Johnson City, the largest manufacturers are American Water Heater, with 1,200 employees; Siemens Industrial Automation, with 850; Kennemetal Inc., with 451; Superior Industries, with 437; and TPI Corp., with 425.

In Hawkins County, large manufacturers include AFG Industries, with 900 employees; TRW Corp., with 700; Hutchinson Sealing Systems, with 520; Rockwell Automation, Dodge Division, with 420; International Playing Card & Label, with 270; and Cooper Standard Automotive, with 520.

About 50 auto supplier plants are located in Northeast Tennessee.

Service jobs represent the fastest-growing employment category in the Tri-Cities. In 2000, 66,719 people worked in the service industry in the region, representing 25.55 percent of the employment base. That’s up from 1990, when 50,955 people, or 22.18 percent, were in services.

Health care fields also are fast growing employment areas in the Tri-Cities.

The area’s largest health systems — Wellmont Health System and Mountain States Health Alliance — continue to grow, along with various other health-related businesses and organizations.

The largest non-manufacturing employers in the region include Wellmont Health System, Mountain States Health Alliance, area school systems, and Wal-Mart.

 


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