Tri-Cities Adjusting to Employment Shifts

Nestled in the mountains of northeast Tennessee is an economic microcosm of the United States. Like many communities across the country, the Tri-Cities area--comprising Bristol, Tenn. and Va., Johnson City, Tenn., and Kingsport, Tenn.--is making the transition from a manufacturing-based economy to one increasingly reliant on service jobs.

Manufacturing still matters

Even in the face of this transition, the region retains a strong manufacturing base. While the number of manufacturing jobs in the Tri-Cities has declined, the sector is still strong and boasts companies that would be the envy of many regions. The area's largest manufacturer is Kingsport-based Eastman Chemical Co., a chemical, fiber, and plastic maker that employs nearly 15,000 worldwide and about 7,500 locally, according to company data. Eastman, a Fortune 500 company and a linchpin of the local economy since its founding in 1920, had sales of $6.6 billion in 2004. …

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