Montgomery Economic Profile

Montgomery Economic Profile Daniel C. Eades Extension Specialist - Rural Economist / Community Design

Population and Workforce Characteristics of Montgomery, WV A key element of community development is an understanding of the community’s composition: Who lives there and where? Is the population well educated? Do residents work within the city limits or do they travel elsewhere to work? What industries are present in the community? This section will briefly describe the demographic and workforce characteristics of Montgomery, WV. Indicators such as unemployment, per capita incomes, poverty rates, etc. represent symptoms of larger economic issues and are conditions that many communities cannot easily address. Rather this section highlights the resources Montgomery can leverage for community initiated development projects and identifies opportunities that may be realized from becoming a more inclusive community and thinking beyond the city’s borders.

Readers should be aware that regularly collected socio-economic data for the city of Montgomery is limited; a problem common to many small towns and rural areas. In order to present information that is timely, demographic data comes from the U.S. Census Bureau’s American Community Survey 5-Year Estimates.

Unlike the Decennial Census, U.S. Census 5-Year estimates are not a point in time measure, but rather a computed average over the five year period between 2005 and 2009. Employment and commuting data was collected from the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics program. Because of the differences in time periods and collection methods the report will highlight how the distribution of population characteristics has changed over time.

Population Characteristics Figure 1 show the distribution of Montgomery’s population over the 2005-2009 time period (2005-2009 ACS).

Figure 1. Population Distribution for Selected Geographies, 2005-2009 30.00% 25.00% 20.00% 15.00%

Montgomery Charleston MSA WV

10.00% 5.00% 0.00%

US

Unlike the Nation and other regions of the State, Montgomery’s population is skewed toward a lower age demographic. Nearly 46 percent of the population was between the ages of 15 and 24 versus 14 percent for the Nation, and 13 and 11 percent for West Virginia and the Charleston MSA respectively. Because Montgomery is home to two colleges (West Virginia University Institute of Technology and Bridgemont Community and Technical College) these figures are not surprising. However, during the visit there appeared to be a disconnect between the college population and the “community” of Montgomery. City leaders would do well to embrace this younger segment of the population, consider their needs, and tap in to their energy and ideas for future community projects.

The colleges’ presence provides other resources to the community as well; specifically a skilled and well educated population. Although the city was below the national average (27.5%), Montgomery (21.4%) outperformed the Charleston MSA (20.5%) and State of West Virginia (17.1%) in the number of college graduates over the 2005-2009 period (Table 1) (2005-2009 ACS). Still, despite relatively high numbers of college graduates, the number of high school graduates is well below all other regions. Although the number has improved since the 2000 Census, growth was below that seen by the State of West Virginia as a whole Table 1. Educational Attainment of Population 25 Years and Over, 2000 and 2005-2009

Montgomery Charleston MSA West Virginia United States

2000 75.2 80.8 75.2 80.4

High School 2005-2009 78.3 83.5 81.6 84.6

Bachelor’s Degree 2000 2005-2009 20.7 21.4 20.4 20.5 14.8 17.1 24.4 27.5

Increasing local educational attainment rates could provide several benefits to the community. Not only are increased education levels correlated with increased earnings, but research indicates that college graduates are more likely to engage in volunteer activities than those with lower educational attainments (Volunteering in the United States, 2010). According to the Bureau of Labor Statistics the volunteer rate in 2010 was 42.3 percent for college graduates, compared with 17.9 percent for high school graduates, and 8.8 percent for those with less than a high school education (Volunteering in the United States, 2010). The community should focus on increasing graduation rates and retaining its well educated population, perhaps by encouraging closer relationships between Montgomery’s colleges, the local K-12 school systems, and local businesses.

Industry and Workforce Characteristics Montgomery’s college educated population is reflected in the town’s industrial composition. Figure 2 shows the distribution of jobs in Montgomery by broad industry category for the year 2008 (U.S. Census Bureau, LEHD). The presence of WVU Tech, Bridgemont Community and Technical College, and Montgomery General Hospital is evident with educational services, and health care and social assistance employing nearly 56 percent of workers. All three establishments provide a source of well trained professionals that could provide valuable leadership to community projects. Other leading sectors include transportation and warehousing (14.1%) and retail trade (7.4%).

Figure 2. Distribution of Employment in Montgomery by NAICS Industry Sector, 2008

Health Care and Social Assistance Educational Services Transportation and Warehousing Retail Trade Professional, Scientific, and Technical Services Accommodation and Food Services Public Administration Others 0.0%

10.0%

20.0%

30.0%

40.0%

As Montgomery identifies development projects to pursue it will want to harness all available resources at its disposal. One way to increase this resource base is to think of the community of Montgomery in broader terms than political boundaries. As discussed earlier, the town draws a sizeable number of students into the area. In addition to this population the city draws non-residents into the community for employment; likewise, many of the city’s residents travel outside of the political borders for employment. For both populations “community” extends beyond the city limits.

Table 2 shows where Montgomery’s workforce primarily resides. As the numbers indicate, the bulk of the city’s jobs (96.6%) are held by workers living outside the city limits; nearly 13 percent commute in from Charleston (U.S. Census Bureau, LEHD). From a purely economic standpoint this population represents a “leakage” in the local economy; dollars created in Montgomery, but spent elsewhere. Retaining this population and their incomes could lead to improvements in the local economy; specifically in the local retail sector. Beyond the economic benefits this is a group with a stake in the future of the community—after all, most are spending close to a third of their day here. This population, although not residing in the city, should be considered an essential element in future development projects. Why have they chosen to live outside of the community?

What could draw them in? What resources can they bring to the table? These are questions Montgomery’s residents should be asking. Determining what amenities would make the community a more attractive place to live, and developing projects to address this population’s concerns may entice current workers to move into the community and could encourage future workers to make Montgomery their home.

Table 2. Home Destination Report: Where workers live who are employed in Montgomery, WV (2008) Home City Charleston city, WV Powellton CDP, WV Montgomery city, WV East Bank town, WV Oak Hill city, WV South Charleston city, WV Pratt town, WV Beckley city, WV All Other Locations

Percentage of Workforce 12.7% 3.7% 3.3% 2.6% 2.4% 2.3% 1.6% 1.4% 70.1%

Table 3 presents the other side of the workforce “coin” showing where residents of Montgomery are employed.

Data indicates that only 11.4% of Montgomery’s population works in the community (U.S. Census Bureau, LEHD). As with the previous population Montgomery should be asking “why?” Is a lack of employment opportunities in the area forcing residents to seek employment outside of the city, or are residents not equipped with the skills necessary to find work at the city’s major employers. This issue may provide a valuable opportunity to strengthen relationships between Montgomery’s educational resources, social service programs, and local businesses. Training programs and internships could be developed to connect students or residents in need of job skills with local employers.

Table 3. Work Destination Report: Where workers are employed who live in Montgomery, WV (2008) City of Employment Charleston city, WV Montgomery city, WV South Charleston city, WV Smithers city, WV Columbus city, OH Nitro city, WV Beckley city, WV Cedar Grove town, WV Logan city, WV Oak Hill city, WV All Other Locations

Percentage of Workforce 15.6% 11.4% 3.0% 2.1% 1.5% 1.5% 1.2% 1.2% 1.2% 1.2% 60.1%

Summary The community of Montgomery possesses unique assets and opportunities that can be harnessed to effect change in both the short and long term. A sizeable portion of the population is young and vibrant, and skilled and well educated. Although much of the workforce travels from outside the city they spend a large portion of their time in the community and have an investment in the well being of the town and its residents. Listening to the needs of these groups and finding creative ways to include them in the development process can provide fresh ideas and energy to further the development goals of the community. By recognizing its strengths and

better utilizing its resources Montgomery can become a community its diverse populations will want to call home.

Sources: U.S. Census Bureau, Center for Economic Studies. Longitudinal Employment-Household Dynamics.

Accessed via “On The Map.” Available at: http://lehdmap.did.census.gov/ U.S. Census Bureau. 2005-2009 American Community Survey 5-Year Estimates. Accessed via “American Fact Finder.” Available at: http://factfinder.census.gov/home/saff/main.html?_lang=en Volunteering in the United States, 2010. United States Department of Labor, Bureau of Labor Statistics.

Available at: http://www.bls.gov/news.release/volun.nr0.htm