The Appalachian Regional 

Commission’s Five-Year 

Strategic Plan for Capitalizing 

on Appalachia’s Opportunities

2016−2020

Investing in

Appalachia’s

Future
ALABAMA

Governor Robert Bentley

Jim Byard Jr.

Director

Alabama Department of Economic 

and Community Affairs

401 Adams Avenue

P.O. Box 5690

Montgomery, Alabama 36103

GEORGIA

Governor Nathan Deal

Camila Knowles

Commissioner

Georgia Department of 

Community Affairs

60 Executive Park South, NE

Third Floor

Atlanta, Georgia 30329

KENTUCKY

Governor Steven L. Beshear

Tony Wilder

Commissioner

Kentucky Department for 

Local Government

1024 Capital Center Drive

Suite 340

Frankfort, Kentucky 40601

MARYLAND 

Governor Larry Hogan

Linda C. Janey

Assistant Secretary

Maryland Department of Planning

301 West Preston Street

State Office Building

Room 1101

Baltimore, Maryland 21201

MISSISSIPPI

Governor Phil Bryant

Robert G. “Bobby” Morgan II

Policy Advisor

Office of the Governor

P.O. Box 139

Jackson, Mississippi 39205

NEW YORK

Governor Andrew M. Cuomo

Dierdre Scozzafava

Deputy Secretary for Local 

Government Services

New York Department of State

1 Commerce Plaza

99 Washington Avenue

Suite 1015

Albany, New York 12231

NORTH CAROLINA

Governor Pat McCrory

Patricia Mitchell

Assistant Secretary

Rural Economic 

Development Division

North Carolina Department 

of Commerce

4301 Mail Service Center

Raleigh, North Carolina 27699

OHIO

Governor John Kasich

Jason Wilson

Director

Governor’s Office of Appalachia

77 South High Street

29th Floor

Columbus, Ohio 43215

PENNSYLVANIA

Governor Tom Wolf

Sheri Collins

Deputy Secretary

Office of Technology 

and Innovation

Pennsylvania Department 

of Community and 

Economic Development

Commonwealth Keystone 

Building, Fourth Floor 

400 North Street

Harrisburg, Pennsylvania 17120

SOUTH CAROLINA

Governor Nikki Haley

Michael P. McInerney

Director of External Affairs

South Carolina Department 

of Commerce 

1201 Main Street

Suite 1600

Columbia, South Carolina 29201

TENNESSEE

Governor Bill Haslam

Ted Townsend

Chief of Staff

Tennessee Department 

of Economic and 

Community Development

312 Rosa L. Parks Avenue 

Tennessee Tower Building, 27th Floor 

Nashville, Tennessee 37243

VIRGINIA

Governor Terry McAuliffe

William C. Shelton 

Director

Virginia Department of Housing

and Community Development

Main Street Center

600 East Main Street, Suite 300

Richmond, Virginia 23219

WEST VIRGINIA

Governor Earl Ray Tomblin

Mary Jo Thompson

Director

Community Development Division

West Virginia Development Office

State Capitol Complex

Building 6, Room 553

Charleston, West Virginia 25305

States’ Washington 

Representatives

Jim McCleskey

James Hyland

Executive Director

Scott T. Hamilton

November 2015

Plan Approved

Federal Co-Chair

Earl F. Gohl

States’ Co-Chair

Governor Steven L. Beshear

Appalachian Regional Commission

GOVERNORS AND STATE ALTERNATES
www.arc.gov

The Appalachian Regional Commission (ARC) ..................................................................................... 5

Appalachia is a Region of Great Opportunity ........................................................................................ 7

ARC’s Vision ............................................................................................................................................................ 8

ARC’s Mission ........................................................................................................................................................ 10

ARC’s Strategic Plan............................................................................................................................................ 11

ARC’s Strategic Investment Goals................................................................................................................ 13

Opportunity + Investment = Prosperity..................................................................................................... 15

Strategic Investment Goal 1: Economic Opportunities....................................................................... 17

Strategic Investment Goal 2: Ready Workforce..................................................................................... 21

Strategic Investment Goal 3: Critical Infrastructure............................................................................. 27

Strategic Investment Goal 4: Natural and Cultural Assets................................................................ 31

Strategic Investment Goal 5: Leadership and Community Capacity........................................... 35

Performance Targets ........................................................................................................................................... 41

ARC’s Commitment ............................................................................................................................................. 42

Partnering with ARC............................................................................................................................................ 43

Strengthening ARC’s Capacity to Invest ................................................................................................... 44

Regional Indicators of Progress..................................................................................................................... 45

Investing in Appalachia’s Future.................................................................................................................... 46

Table of Contents
4 2016 — 2020 ARC Strategic Plan

Appalachia

Appalachia, as defined in the legislation 

from which the Appalachian Regional 

Commission derives its authority, is a 

205,000-square-mile region that follows 

the spine of the Appalachian Mountains 

from southern New York to northern 

Mississippi. The Appalachian Region 

includes all of West Virginia and parts of 

12 other states: Alabama, Georgia, 

Kentucky, Maryland, Mississippi, New 

York, North Carolina, Ohio, Pennsylvania, 

South Carolina, Tennessee, and Virginia. 

Appalachia is home to more than 25 

million people.
2016 — 2020 ARC Strategic Plan 5

The Appalachian Regional Commission (ARC) is a regional 

economic development agency representing a unique partnership 

of federal, state, and local government.

Established by an act of Congress in 1965, the 

Commission is composed of the governors of the 

13 Appalachian states and a federal co-chair, who 

is appointed by the president. Local participation is 

provided through multi-county local development 

districts with support from community, business, 

and civic leaders. Each year Congress appropriates funds for Commission programs, which ARC 

allocates among its member states. The governors 

draw up annual state Appalachian strategies and 

select projects for approval by the federal co-chair. 

ARC has made investments in such essentials of 

comprehensive economic development as a safe 

and efficient highway system; education, job-training, and health care programs; water and sewer 

systems; and entrepreneurial and capital 

market development.

The Appalachian 

Regional Commission
6 2016 — 2020 ARC Strategic Plan
2016 — 2020 ARC Strategic Plan 7

For 50 years, the Appalachian Regional Commission (ARC) has 

invested in the efforts of its local, regional, and state partners to 

transform Appalachian communities and advance its mission of 

helping the Region achieve socioeconomic parity with the nation. 

These efforts have laid a foundation on which 

to build in pursuing current opportunities and in 

creating and strengthening the building blocks of 

future opportunities. Since 1965, ARC has made 

nearly 25,000 targeted investments and invested 

more than $3.8 billion in the Region. These 

investments were matched by $9 billion in other 

federal, state, and local funding sources. Since 1978, 

when ARC began tracking leveraging data, every 

dollar invested by ARC has leveraged an average of 

$6.40 from the private sector.

The record of progress in the Region over the past 

few decades includes these accomplishments:

• The Region’s poverty rate has decreased from 

nearly 31 percent in 1960 to 17 percent today; and 

the number of high-poverty counties (those with 

poverty rates one and a half times the national 

average) has decreased from 295 in 1960 

to 90 today.

• Between 1970 and 2012, in counties that received 

ARC investments, employment increased at a 

4.2 percent faster pace, and per capita income 

increased at a 5.5 percent faster pace, than in 

similar counties that did not receive 

ARC investments. 

• The percentage of adults in the Region with a 

high school diploma has increased by more than 

150 percent, and students in Appalachia now 

graduate from high school at nearly the same rate 

as the national average. 

• The percentage of homes in Appalachia with 

complete plumbing has increased from 86.4 

percent in 1970 to 96.8 percent today, in line with 

the national rate of 98.0 percent.

• The infant mortality rate in the Region has been 

reduced by two-thirds since 1960.

Appalachia is a Region 

of Great Opportunity. 
8 2016 — 2020 ARC Strategic Plan

Appalachia is a region of 

great opportunity that will 

achieve socioeconomic 

parity with the nation.

ARC’S VISION
2016 — 2020 ARC Strategic Plan 9

Despite progress, continued investment is needed. 

The Appalachian Region’s economy has historically 

been dominated by a few industries, including 

mining, textiles, tobacco, and timber. Dependence 

on these industries as economic drivers and 

employers has left many communities, particularly 

those in the most economically distressed 

counties, vulnerable to economic fluctuations 

as their businesses face increasing competition, 

specialization, and market changes. 

This includes the need for: 

• More jobs. Job creation is increasing more 

slowly in the Region than in the nation as a whole. 

The number of jobs in the nation has jumped 83 

percent since 1975, while the number of jobs in 

Appalachia has increased only 50 percent over 

the same time period. In addition, the Region’s 

labor force participation rate remains low (59.5 

percent in the Region compared with 64.2 

percent nationally).

• Higher educational attainment. While 

overall educational attainment rates in the Region 

have improved over the past 50 years, Appalachia 

continues to fall behind the nation on this 

measure. Fifty-seven percent of Americans have 

some post secondary education; less than half 

of Appalachians (48 percent) have reached that 

education level.

• More investment to improve health 

status. The health status of the Region’s 

residents continues to decline: the mortality 

rate in Appalachia is 27 percent higher than 

the national average, and the Region has 

disproportionately higher rates of cancer, 

diabetes, substance abuse, and obesity.

• More investment in areas of persistent 

and severe economic distress. Nearly a 

fourth of Appalachia’s 420 counties still face high 

poverty rates, low per capita market income, and 

high unemployment rates.

ARC is committed to investing in Appalachia’s 

future by helping the Region’s communities 

seize opportunities that both reduce disparities 

and advance prosperity. The Commission’s 

unique federal-state partnership enables flexible 

community- and state-driven project development 

as well as opportunities to advance regional 

initiatives and model practices. ARC supports the 

efforts of local communities across the Region 

to transform their economies by working with a 

network of local development districts and other 

local partners. ARC also partners with private and 

nonprofit organizations, regional and national 

philanthropic institutions, and federal agencies to 

leverage its resources for the benefit of Appalachia’s 

people and communities. Together with its local, 

state, and national partners, ARC is making progress 

toward achieving its vision. 

ARC investments can address 

the challenges associated with 

economic transition.
10 2016 — 2020 ARC Strategic Plan

Innovate, partner, and invest 

to build community capacity 

and strengthen economic 

growth in Appalachia.

ARC’S MISSION
2016 — 2020 ARC Strategic Plan 11

Every four to six years, ARC engages in a process of evaluating its 

strategic direction and setting a course for the future. 

ARC’s 2016–2020 Strategic Plan was timed to 

coincide with the 50th anniversary of ARC’s 

inception in 1965, and was developed following a 

year-long assessment of socioeconomic trends in 

Appalachia and a review of past ARC investments 

completed for the report Appalachia Then and Now: 

Examining Changes to the Appalachian Region 

Since 1965. The Commission then launched an 

intensive seven-month process of engaging with 

local development districts, community leaders, and 

residents of the Region, as well as with ARC state 

and Commission staff, to gather input on issues and 

opportunities critical to Appalachia’s future. With 

the input from these stakeholders, via topical focus 

groups, regional listening sessions, and a widely 

publicized public survey, ARC identified the most 

significant opportunities for moving the Region’s 

economy forward and the most important building 

blocks or capacities that would need to be created 

or strengthened for those opportunities to be 

advanced. The message received from more than 

3,000 Appalachians committed to helping advance 

the Region was positive and forward-looking: There 

is a wide range of new economic opportunities in 

the Region in growing sectors—including local food 

systems, tourism, health care, manufacturing, and 

diversified energy—and the Region has a foundation 

of strong and valued natural and cultural assets to 

build on. 

Input from the Region also suggests that ARC is 

viewed as a strong partner that can:

• Invest in new economic opportunities brought 

forward by the Region’s entrepreneurs.

• Share exemplary practices from inside and 

outside the Region that community and

regional leaders can adapt and replicate in 

their communities. 

• Support the building blocks of a more prosperous 

Region, including a healthy, educated, and 

skilled population; world-class infrastructure; 

well-tended and well-used natural resources; and 

communities with the capacity to plan, lead, and 

innovate for the future. 

With this in mind, ARC seeks to make investments 

and use the full range of its resources and tools to 

help transform the Region’s assets and opportunities into real results by advancing its core mission.

ARC’s 2016–2020 

Strategic Plan
12 2016 — 2020 ARC Strategic Plan

These goals reflect consensus among local, state, 

and federal partners on the most critical investment 

opportunities in Appalachia. While the investment goals 

are distinct, they are also interdependent, with progress 

on one goal often requiring investment in another. 

ARC has identified five 

strategic investment goals to 

advance its vision and mission.
2016 — 2020 ARC Strategic Plan 13

Strategic Investment Goals

1 Economic Opportunities

Invest in entrepreneurial and business development strategies 

that strengthen Appalachia’s economy.

2 Ready Workforce

Increase the education, knowledge, skills, and health of residents 

to work and succeed in Appalachia.

3 Critical Infrastructure

Invest in critical infrastructure—especially broadband; transportation, 

including the Appalachian Development Highway System; and 

water/wastewater systems.

4 Natural and Cultural Assets

Strengthen Appalachia’s community and economic development potential 

by leveraging the Region’s natural and cultural heritage assets.

5 Leadership and Community Capacity

Build the capacity and skills of current and next-generation leaders 

and organizations to innovate, collaborate, and advance community 

and economic development.
14 2016 — 2020 ARC Strategic Plan

ARC uses an index-based 

county economic classification 

system to identify and 

monitor the economic status 

of Appalachian counties. 

The system involves the 

creation of a national index 

of county economic status 

through a comparison of each 

county’s averages for three 

economic indicators—threeyear average unemployment 

rate, per capita market 

income, and poverty rate—

with national averages.

County Economic 

Status in Appalachia 

FISCAL YEAR 2016
2016 — 2020 ARC Strategic Plan 15

Opportunity + Investment = Prosperity

There are many successful projects across the region supported by 

ARC and its state partners. 

These success stories, many of which are located in 

economically distressed counties, reflect the types 

of investments ARC will pursue as it implements its 

2016–2020 strategic plan. Fifteen such projects (a 

number of which benefit distressed areas in the 

Appalachian Region) are highlighted in this plan. 

They illustrate the different types of projects 

supported by the Appalachian states (but do not 

represent the range of projects that each state 

invests in). 

ARC will continue to target investments to the most 

economically distressed areas of the Region—those 

with high unemployment rates, high poverty rates, 

and low per capita market income compared with 

national averages. Reducing or eliminating the 

number of distressed counties and areas is a top 

priority for the Commission and the Appalachian 

states. ARC investments are a means to that end. 

By making investments that advance the goals of 

ARC’s 2016–2020 Strategic Plan, the Commission 

will continue a tradition of helping communities 

capitalize on their unique opportunities as well 

as addressing broader opportunities that impact 

people and communities Region-wide. For example, 

ARC’s support for the Shaping Our Appalachian 

Region (SOAR) initiative in eastern Kentucky shows 

the power of leveraging ARC’s resources with 

forward-thinking leadership, financial support from 

other regional and public partners, and the energy 

and innovation of local residents.
16 2016 — 2020 ARC Strategic Plan
GOAL 1

2016 — 2020 ARC Strategic Plan 17

Over the past 50 years, ARC investments, coupled with significant 

leveraged investments from public- and private-sector partners, have 

helped improve economic outcomes across the Region.

However, work remains to bring the Appalachian 

Region to economic parity with the country. 

Creating opportunities for local ventures 

by supporting entrepreneurial and business 

development in existing and emerging sectors can 

help communities transform their economies. To 

achieve the greatest impact, ARC’s investments 

in entrepreneurial development will create and 

strengthen the ecosystems that provide broadbased support for business development, especially 

in economically distressed counties and areas. 

Investments will also support business development 

targeted to sectors that connect and build on local 

and regional assets, have growth potential, and 

offer better-quality jobs for the Region’s workers. 

ARC’s investments can also encourage renewed 

innovation and competitiveness in manufacturing, 

a regional economic mainstay. ARC’s aim is to 

support businesses that provide products and 

services to meet growing national and international 

demand. ARC will advance all of these efforts in 

close partnership with federal agencies, the private 

sector, and regional and national philanthropies.

Strategic Investment Goal 1 

Economic 

Opportunities

Invest in entrepreneurial and business development 

strategies that strengthen Appalachia’s economy.
18 2016 — 2020 ARC Strategic Plan

1. Strengthen entrepreneurial ecosystems and support for existing businesses. Locally 

owned businesses are important drivers of the Region’s economy. To succeed, these 

ventures need a strong community environment that encourages and supports 

entrepreneurship and local business development through technical assistance, 

incubation and acceleration, capital access, mentoring, networking, businessownership transition, and other types of support. 

2. Support the startup and growth of businesses, particularly in targeted sectors. In 

order to compete in a global marketplace, the Region must diversify its economic 

base. Supporting entrepreneurship and business development in targeted sectors 

that have growth potential and that build on local and regional assets provides the 

greatest opportunity for building a strong Appalachian economy. These businesses 

also offer better job opportunities for Appalachia’s workers. Targeted sectors can 

include manufacturing, diversified energy, tourism, local food systems, and health 

care, as well as other sectors with growth potential.

3. Enhance the competitiveness of the Region’s manufacturers. Appalachia’s 

historically strong manufacturing sector offers significant potential for growth. 

Developing networks and supporting innovative manufacturing processes and 

business plans will enhance the sector’s economic competitiveness.

4. Promote export strategies to connect startup and established businesses with 

external and global markets. Today’s global marketplace gives local businesses 

the opportunity to sell goods and services on a much broader scale. Demand from 

outside the Region for both manufactured goods and services has strong potential for 

growth. Helping Appalachian businesses tap into this growing external demand will 

contribute to their long-term success.

Action Objectives

Goal 1 primarily addresses ARC’s performance 

targets to create and strengthen businesses, create 

and retain jobs, and leverage private investment. 

ARC investments in Goal 1 projects generate 

additional outcomes tied to specific strategies 

and activities that contribute to regional success. 

The success stories that follow illustrate a range of 

outcomes and demonstrate the results ARC seeks 

through its investments. 

Outcome 

Measurement
GOAL 1

2016 — 2020 ARC Strategic Plan 19

Investments in Action

Accelerating Appalachia’s 

Manufacturing Resurgence

Manufacturing is poised to grow again in the 

Appalachian Region with the help of the Investing 

in Manufacturing Communities Partnership 

initiative, led by the National Economic Council 

with coordinated support from ARC and ten 

federal agencies. In 2013, manufacturing clusters 

in three Appalachian areas—the Tennessee Valley, 

northwest Georgia, and Pittsburgh—were among 24 

manufacturing communities granted access to over 

$1 billion in assistance. These clusters were selected 

because of their workforce and training capacity, 

advanced research strategies, infrastructure and 

site-development alignment, existing supply-chain 

support, export-promotion strategies, and access 

to capital. 

The Tennessee cluster is accelerating the 

development of automotive manufacturing 

through an experienced collaborative that includes 

universities, laboratories, and private-sector groups 

and organizations. The Georgia cluster is working to 

support a reinvention of the local carpet and flooring 

industry, bringing together local government, the 

private sector, and community colleges to create 

a network of partners to attract and encourage 

renewed manufacturing. The Pittsburgh cluster will 

build on the region’s historic strengths in metals 

manufacturing by using innovative technologies 

such as 3D printing, robotics, and advanced 

materials. Public- and private-sector partners plan 

to launch an apprenticeship program for workers 

in manufacturing startups and to create hardware 

design centers to foster promising product-oriented 

innovators and encourage “making” as a viable 

career option.

Spurring Business Growth in 

Clean Energy

In a region often characterized by a shortage of 

support for business growth, the Ohio University 

Innovation Center (OUIC) is part of a robust 

entrepreneurial ecosystem in Appalachian Ohio that 

provides “assistance that can help a company thrive,” 

according to director Jennifer Simon. Partnering 

with TechGROWTH Ohio, the East Central Ohio Tech 

Angel Fund, and Ohio University, OUIC connects 

entrepreneurs with resources that include investors, 

technology, business support, executive leadership, 

and research. Many of the center’s clients, including 

Third Sun Solar, Ecolibrium Solar, and ECO2Capture, 

are on the forefront of tech-based clean energy 

innovations. With OUIC support, companies 

graduating from the program directly created more 

than 130 area jobs. And with 86 percent of its clients 

still in business, OUIC demonstrates the economic 

impact a business incubator can have when it 

focuses its entrepreneurial support services on a 

promising sector like clean energy.

Growing Capital for Businesses

Appalachia’s entrepreneurs need growth capital. 

Thanks to the newly created Appalachian 

Community Capital (ACC), they can now tap into 

local funds that focus on building an Appalachian 

innovation ecosystem. Initially seeded with a 

foundational ARC investment of $3.45 million in 

equity and operating capital, ACC successfully raised 

$12 million from a diverse group of national and local 

investors that are committed to Appalachia but are 

also focused on making a profit. Since its inception, 

ACC has invested $11 million in five community 

loan fund and development finance institution 

partners that support new and growing businesses. 

One of the businesses supported by a local loan 

fund was the Hughes Supply Company in Beckley, 

West Virginia, which used a working capital loan 

to diversify its clients: instead of supplying only to 

coal-mining companies, Hughes now also supplies to 

water-treatment plants and school districts.
20 2016 — 2020 ARC Strategic Plan
GOAL 2

2016 — 2020 ARC Strategic Plan 21

A healthy, skilled, and ready workforce is a building block for a more 

prosperous Appalachian Region. 

Education, particularly postsecondary education, 

is a key component of the business and 

entrepreneurial ecosystem and often a primary 

economic driver. Investments by ARC and its 

partners aim to connect education, workforce, 

and business interests in a seamless system that 

prepares the Region’s young people to succeed 

in existing and emerging sectors, and creates 

new opportunities for workers transitioning to 

new employment. These efforts must begin with 

strong educational programming and institutions, 

and ensure that all students have the basic skills, 

as well as the soft skills, needed for productive 

employment or entrepreneurship. Particular 

emphasis will be placed on providing education and 

training matched to the Region’s current sectors 

and jobs, while increasing access to advanced skills 

training for the jobs of the future. 

The health status of Appalachia’s residents is also 

closely tied to the Region’s economic health. A 

healthy community has increased prospects for 

business development, civic entrepreneurship, and 

quality of life. ARC will leverage its resources and 

partner with other public, private, and nonprofit 

organizations to advocate for and address—through 

evidence-based and innovative practices—the 

challenges posed by poor health conditions, 

inefficient health-care infrastructure, and other 

health barriers that keep residents from being 

active and productive workers.

Strategic Investment Goal 2

Ready Workforce

Increase the education, knowledge, skills, and health 

of residents to work and succeed in Appalachia.
22 2016 — 2020 ARC Strategic Plan

1. Develop and support educational programs and

institutions to prepare students for postsecondary

education and the workforce. Educational

attainment and achievement in Appalachia has

improved over the last 50 years; however, more

work is needed for the Region to achieve parity with

the nation. It is essential to develop and support

early childhood education, as well as primary and

secondary programs and institutions, so youth in

Appalachia graduate from high school prepared

for postsecondary education, training, and entry

into the workforce. Investments in postsecondary

education—including increased distance-learning

opportunities, upgraded classroom technology, and

improved science facilities—are also needed.

2. Support programs that provide basic and soft-skills

training to prepare workers for employment.

A ready workforce includes workers that have

the basic knowledge and skills—such as literacy,

numeracy, and problem solving—that are needed

to succeed in the workplace. In addition, workers

need soft skills—such as communication, time

management, and interpersonal skills—in order

to obtain and maintain employment. Investing

in activities that build the basic and soft skills of

Appalachia’s workforce will help retain, attract, and

grow businesses in Appalachia.

3. Develop and support career-specific education and

skills training for students and workers, especially

in sectors that are experiencing growth locally

and regionally and that provide opportunities for

advancement. Appalachia’s economy is undergoing

transition. New employment opportunities are

emerging as the Region’s economic sectors grow

and change. However, with these opportunities come

new demands on local workers’ skills and knowledge.

For workers to take advantage of new employment

opportunities they must have access to and engage

in career-specific education and skills training that

can help them succeed and advance on the job.

4. Increase local residents’ access to STEAM and other

skills training on state-of-the-art technology and

processes across all educational levels.

A number of emerging sectors in Appalachia,

including manufacturing, health care, and energy,

require a workforce with strong science, technology,

engineering, arts, and math (STEAM) skills. In

addition, these sectors require a workforce trained in

using cutting-edge technology. For workers to take

advantage of employment opportunities in growing

sectors, they must have both the foundational

knowledge and the relevant technological skills

needed to succeed.

5. Improve access to affordable, high-quality health

care for workers and their families. Many parts of

Appalachia, particularly economically distressed

counties and areas, are underserved by health-care 

professionals and health-care facilities. Investments 

that increase access to quality, affordable health 

care are critical to the Region, as a healthy 

workforce is essential for Appalachia to compete 

in today’s economy.

6. Use proven public health practices and establish

sustainable clinical services to address health

conditions that affect the Region’s economic

competitiveness. The Region’s residents, particularly

those in economically distressed counties and

areas, experience disproportionately high rates of

chronic disease, reducing workforce participation

and productivity. The Region must invest in

proven strategies to reduce those disparities while

innovating to meet the unique needs of Appalachia.

Initiatives that improve the health of the Region’s

residents will help ensure a ready and able

workforce, increasing the Region’s overall economic

competitiveness.

7. Develop and support sustainable programs that

remove barriers to participating in the workforce.

A number of factors—such as access to reliable

transportation, affordable elder or child care, and

health services—can affect workforce participation.

Developing and supporting programs that are

specifically designed to reduce employment barriers

and increase workforce participation will help ensure

a ready and able workforce in Appalachia.

Action Objectives
GOAL 2

2016 — 2020 ARC Strategic Plan 23

Goal 2 primarily addresses ARC’s performance

target to educate and prepare students and 

workers to participate in the Region’s economic 

opportunities. ARC investments generate additional outcomes tied to specific strategies and 

activities that contribute to regional success. 

The success stories that follow illustrate a range 

of outcomes and demonstrate the results ARC 

seeks through its investments. 

Outcome 

Measurement
24 2016 — 2020 ARC Strategic Plan
GOAL 2

2016 — 2020 ARC Strategic Plan 25

Advancing Student 

Achievement

Imagine increasing college-going rates for 

Appalachian high school graduates by double digits 

for only a few hundred dollars per student. The 

Appalachian Higher Education (AHE) Network is 

doing just that. Inspired by the Ohio Appalachian 

Center for Higher Education, the AHE Network, 

with support from ARC, has grown through 

challenge grants and leveraged funding from private 

businesses and foundations to include centers in ten 

states. Focused on addressing the emotional and 

social barriers to college and tailored to the local 

context and culture, this highly regarded program 

has been replicated in 264 high schools across 

Appalachia, and has served more than 35,000 

students to date. In Alabama, 67 percent of seniors 

in schools served by the program have graduated 

from high school and enrolled in higher education or 

joined the military; in Tennessee, that number was 

60 percent.

Strengthening the HealthCare Sector through 

Career Pathways

Across the northern Mississippi region, Itawamba 

Community College (ICC) is connecting students to 

career pathways as a way to address the shortage 

of skilled allied health workers. An ARC investment 

of $250,000 provided equipment for a new allied 

health education center designed to address the 

shortage of health-care workers in the Region. The 

center is projected to serve more than 700 students, 

with 375 or more expected to earn degrees, over its 

first two years of operation alone. These students 

will fill the growing need for trained workers at 

health-care facilities across ICC’s service area.

Advancing the Next 

Generation of GreenCollar Workers

Alfred State College’s Wellsville campus in 

Appalachian New York is helping prepare the next 

generation of green-collar workers. A $150,000 

ARC grant helped establish a new green-building 

laboratory to train students in the latest renewableenergy systems. During the two-year project, 145 

students enrolled, 98 completed training, and 96 

obtained employment or advanced their careers. 

A similar grant for an alternative fuels laboratory 

allowed the campus to incorporate the latest 

alternative fuel systems into one space, and educate 

local technicians and the general public through 

workshops and demonstrations of emerging 

technologies. Over the two-year course of the 

project, 199 students enrolled, 90 trainees completed 

training, and 98 percent of the trainees obtained 

employment or advanced their careers.

Investments in Action
26 2016 — 2020 ARC Strategic Plan
GOAL 3

2016 — 2020 ARC Strategic Plan 27

ARC investments in infrastructure have helped reduce the Region’s 

isolation, spur economic activity, and improve public health and safety. 

In order to compete in the global economy, 

Appalachia must continue to develop and improve 

the infrastructure necessary for economic 

development, including broadband and telecommunications; basic infrastructure, such as water 

and wastewater systems; diversified energy; 

housing; and transportation, including the 

Appalachian Development Highway System 

(ADHS). ARC will also support investments 

in multi-modal transportation systems that 

strengthen connections to regional, national, 

and global markets. 

ARC infrastructure investments will address local 

community needs as well as strategic, innovative 

approaches to economic development. ARC will 

provide leadership in helping communities develop 

long-term plans for effective development and 

deployment of the infrastructure needed to 

support economic competitiveness and quality 

of life. To create the greatest impact, ARC will 

leverage resources and bring together government 

agencies and the private sector to build the 

critical infrastructure needed to strengthen 

the Region’s economy.

Strategic Investment Goal 3

Critical 

Infrastructure

Invest in critical infrastructure—especially 

broadband; transportation, including the 

Appalachian Development Highway System; 

and water/wastewater systems.
28 2016 — 2020 ARC Strategic Plan

Goal 3 primarily addresses ARC’s performance

target to increase access to improved 

infrastructure for businesses and households. 

ARC investments generate additional outcomes 

tied to specific strategies and activities that 

contribute to regional success. The success 

stories that follow illustrate a range of outcomes 

and demonstrate the results ARC seeks through 

its investments.

1. Promote the productive and strategic use of broadband and other telecommunications

infrastructure to increase connectivity and strengthen economic competitiveness.

Telecommunications infrastructure can help reduce Appalachia’s isolation and connect

its communities with information and markets around the world. But many of the Region’s

communities, particularly those in distressed counties and areas, lack access to reliable

and affordable telecommunications infrastructure. Investing in telecommunications for

these communities, and supporting its productive use, will help strengthen Appalachia’s

economic competitiveness.

2. Ensure that communities have adequate basic infrastructure to implement their community

and economic development objectives. Communities need adequate water and wastewater

systems, diversified energy sources, and quality affordable housing to sustain businesses,

generate jobs, protect public health, and ensure a basic standard of living for residents.

Many Appalachian communities continue to lack this basic infrastructure, compromising

their ability to pursue broad community economic development objectives. Investing in

basic infrastructure that can help advance local community and economic objectives is an

investment in the economic potential of the Region, as well as in the health of its residents.

3. Support the construction and adaptive reuse of business-development sites and public

facilities to generate economic growth and revitalize local economies. Communities must

have adequate sites and facilities, tailored to the specific needs of the Region’s growing

sectors, in order to sustain and grow the businesses that generate local jobs. Investing to

create and improve technology centers, incubators, shared work spaces, and commercial,

industrial, health-care, creative, and educational sites and facilities, and to reclaim and reuse

brownfields, is an important community economic development strategy.

4. Complete the Appalachian Development Highway System and construct local access

roads to strengthen links between transportation networks and economic development.

Investment in the Appalachian Development Highway System has significantly reduced

the Region’s isolation and opened up opportunities for economic growth. Completing the

remaining portions and constructing local access roads will further connect the Region to

strategic regional, national, and global economic opportunities.

5. Invest in intermodal transportation planning and infrastructure that builds on the ADHS and

maximizes the Region’s access to domestic and international markets. In order to compete

in a global economy, Appalachia must have reliable access to domestic and international

markets. Connecting the ADHS to rail, waterway, and aviation routes can help link Appalachian

businesses to regional, national, and international markets.

Action Objectives

Outcome 

Measurement
GOAL 3

2016 — 2020 ARC Strategic Plan 29

Harnessing Broadband’s 

Last Mile

At the peak of the recent recession, some 

communities in Garrett County, a rural county in the 

far western corner of Maryland, lacked adequate 

access to telecommunications services. ARC helped 

fund a study that examined options for improving 

broadband services in the county, and, based on 

the study’s findings, provided funding for a “last 

mile” broadband access project that will serve as 

many as 2,450 businesses and homes in the county. 

The project, which started in 2013 and is expected 

to be completed in 2017, uses a wireless spectrum 

technology that can reach around hills and through 

foliage—crucial for rural areas. When the broadband 

system is completed, it will be operated by an 

Internet service provider that will maintain the 

service and upgrade the system as needed, through 

fees generated from users.

Overcoming Regional Isolation 

through the ADHS

In 1965, Congress, recognizing the importance of 

overcoming the Appalachian Region’s geographic 

isolation, authorized the construction of the 

Appalachian Development Highway System. 

The ADHS enhances economic development 

opportunities in the Region by providing access 

to markets, jobs, health care, and education. Since 

1965, more than $9 billion in federal dollars has been 

obligated for the 3,090-mile ADHS, which is now 89 

percent complete or under construction. Corridor Q 

in Pike County, Kentucky, stretches 16.5 miles from 

U.S. 23 to the Virginia state line, where it connects 

with the Virginia Coalfields Expressway. The first half 

of the corridor was opened in 2014, paving the way 

for new economic development as well as improved 

transportation efficiency and safety in the county.

Improving Critical 

Infrastructure in Distressed 

Communities

Many communities in Appalachia, particularly 

those in areas of high economic distress, have 

inadequate and outdated infrastructure. ARC, 

recognizing that safe and efficient infrastructure 

is critical to advancing local economies, partners 

with communities in the Region to construct new 

facilities and upgrade current ones. In 2010, the 

City of Campton, in economically distressed Wolfe 

County, Kentucky, needed to construct a new 

water-treatment facility in order to meet waterquality standards. The city had obtained a grant 

and a loan from USDA Rural Development, as well 

as an investment from the Kentucky Infrastructure 

Authority, but lacked the additional funding needed 

to complete the $7 million project. Using special 

funds designated for projects in distressed counties, 

ARC provided the $300,000 the city needed to 

complete the project. As a result of the project, 

a total of 1,852 households and 152 commercial 

customers received improved water service. The 

new plant also provided the capacity for commercial 

development along an Appalachian Development 

Highway System (ADHS) corridor.

Investments in Action
30 2016 — 2020 ARC Strategic Plan
GOAL 4

2016 — 2020 ARC Strategic Plan 31

Appalachia’s natural and cultural heritage assets are significant 

building blocks for a more prosperous future.

They contribute to a sense of identity for 

Appalachians and provide the basis for sustainable, 

place-based economic development in many 

current and emerging sectors. Investments 

in natural and cultural assets can catalyze 

other economic development activities in the 

Region, including the growth of entrepreneurial 

ventures and high-tech companies, and create an 

environment that helps attract and retain workers. 

ARC has an opportunity to promote community 

and regional planning that takes a long-term view 

of local assets and emphasizes the balanced use 

of those assets to generate sustainable economic 

benefits for local communities. 

ARC will work with partners to leverage the 

productive use of these assets in support of 

existing and emerging economic opportunities 

throughout the Region. The restoration and 

development of natural and cultural assets has 

the potential to become a critical economic driver, 

particularly in economically distressed counties 

and areas.

Strategic Investment Goal 4

Natural & 

Cultural Assets

Strengthen Appalachia’s community and economic 

development potential by leveraging the Region’s 

natural and cultural heritage assets.
32 2016 — 2020 ARC Strategic Plan

1. Preserve and strengthen existing natural assets in support of economic

opportunities that generate local and regional benefits. Natural assets, such as

forests, land, water, and mountains, provide a strong base for the Appalachian

economy. Restoring assets and providing for responsible stewardship of these assets,

through activities such as improvement of mine-impacted lands, clean-up of streams

and other waterways, and sustainable agriculture and forestry, can unlock even

greater economic development potential for the Region.

2. Preserve and strengthen existing cultural assets through strategic investments that

advance local and regional economic opportunities. The Region’s cultural assets,

as much as its natural assets, must be preserved and strengthened in order to fully

unlock their development potential. Investments that strengthen cultural assets,

such as helping maintain cultural traditions and improving or developing unique

historic, artistic, and heritage sites—all of which attract tourists, new residents, and

businesses to the Region—should be connected to strategic economic

development opportunities.

3. Support strategic investments in natural and cultural heritage resources to advance

local economic growth. Investing in economic development activities that leverage

natural and cultural heritage resources is a recognized way to strengthen local

communities and economies. Strategic investment in activities such as developing

and connecting regional multi-use trails and cultural heritage sites generates interest

from residents and tourists alike and results in substantial economic impact in

the Region.

4. Support preservation and stewardship of community character to advance local

economic growth. Appalachian communities are rich in history and heritage, yet

many lack the resources to maintain or strengthen the unique community character

that could help them advance their local economy. Strategic investments in downtown

redevelopment, gateway communities, historic districts, and other unique community

features can help revitalize and enrich local economies.

Goal 4 primarily addresses ARC’s performance

target to create and strengthen businesses 

through initiatives tied to asset development. 

Goal 4 also addresses ARC’s performance target 

to enhance community capacity. ARC investments 

generate additional outcomes tied to specific 

strategies and activities that contribute to regional 

success. The success stories that follow illustrate 

a range of outcomes and demonstrate the results 

that ARC seeks through its investments. 

Action Objectives

Outcome 

Measurement
GOAL 4

2016 — 2020 ARC Strategic Plan 33

Promoting Nature Tourism, 

Outdoor Recreation, and 

Economic Impacts

Pennsylvania, like much of Appalachia, is rich in 

rolling mountains, river valleys, and other natural 

resources, and ARC has helped the state invest in 

its vast natural assets. Over the past decade, the 

12-county Pennsylvania Wilds area, whose wide 

range of activities includes hiking, boating, and elk 

watching, has used $384,000 in ARC investments 

to grow the nature tourism and outdoor recreation 

sector by connecting entrepreneurs and artisans 

to the resources they need to start and grow 

businesses. The result is one of the fastest-growing 

rates of tourism spending in the Commonwealth. 

In southern Pennsylvania, an ARC investment of 

$170,000 helped the Southern Alleghenies Planning 

and Development Commission create the Allegrippis 

Trails System, a 33-mile multi-use trail on the banks 

of the state’s largest lake. The trail attracts 25,000 

to 40,000 mountain-bike enthusiasts annually, and 

spring hotel and campground occupancies in the 

area have increased 109 percent.

Working Together to Invest in 

Cultural Heritage Resources

Communities in Southwest Virginia are working 

together to build a more sustainable creative 

economy, building on the success of the Crooked 

Road and ‘Round the Mountain initiatives. Facilitated 

by the Southwest Virginia Cultural Heritage 

Foundation, in collaboration with more than 100 

state, regional, and local government entities, 

nonprofit organizations, and private-sector partners, 

these initiatives are welcoming visitors and new 

businesses to the 19-county region, while preserving, 

protecting, and interpreting the area’s rich cultural 

heritage and natural assets. The Crooked Road, 

Virginia’s 330-mile heritage music trail, showcases 

the uniqueness and vitality of the area’s heritage 

music. ‘Round the Mountain is a regional artisan 

network of more than 550 artisans, craft venues, and 

agritourism businesses centered around Heartwood, 

a 29,000-square-foot artisan gateway in Abingdon, 

Virginia, that serves as a sales center for local crafts 

and a hub for this unique economic development 

initiative. ARC has invested more than $8 million 

over 12 years in research, marketing, heritage-site 

improvement, and youth-development programs. 

Over time, the region’s economy has come to life. 

From 2004 to 2012, the region saw a nearly $300 

million increase in annual travel expenditures 

and significant growth in local lodging and meal 

tax revenues.

Discovering Local Food, Farms, 

and Flavor

ARC developed the Bon Appétit! Appalachia 

promotional campaign in 2014 with the support of 

its Tourism Advisory Council, which includes tourism 

leaders from all 13 Appalachian states. The campaign 

seeks to capitalize on the Region’s agricultural 

heritage and burgeoning local food movement to 

increase tourism in the Region by promoting local 

farms, farmers markets, restaurants, and other 

culinary destinations to targeted audiences. The 

effort includes a social media marketing “cookbook” 

and facilitated training workshops to help food 

and farm entrepreneurs reach new customers; a 

coordinated social media campaign; and a print and 

Web-based map highlighting the most distinctive 

local food destinations throughout Appalachia. 

The interactive Web site features approximately 

650 destinations across the Region, including the 

Happy Cow Creamery in Pelzer, South Carolina, 

and averages 25,000 unique Web visitors a month. 

The campaign has generated extensive coverage 

of Appalachia’s culinary traditions and food 

destinations by the Wall Street Journal and other 

publications, and is expanding, with local, state, 

and ARC support.

Investments in Action
34 2016 — 2020 ARC Strategic Plan
GOAL 5

2016 — 2020 ARC Strategic Plan 35

Strategic Investment Goal 5

Leadership & 

Community Capacity

Build the capacity and skills of current and 

next-generation leaders and organizations to 

innovate, collaborate, and advance community 

and economic development.

Community economic development is, at its core, an exercise in 

effective leadership. 

The future of the Appalachian Region depends on 

both the current and the next generation of leaders. 

Investing in leadership development programs 

and activities and providing access to the 

resources community leaders need to understand 

their economic opportunities and the root causes 

of the challenges they face will help create stronger 

communities in Appalachia. 

To achieve the greatest impact, ARC investments 

in leadership and community capacity building will 

aim to help communities create a common vision 

for local development, and develop and execute an 

action plan for achieving that vision. The plans will 

be based on model practices in engaging residents 

in the visioning and implementation processes and 

will promote effective collaboration and partnerships across geographic and other boundaries. 

The development plans that emerge will provide a 

guide for future investments—from ARC and local, 

state, federal, and other partners—to capture new 

economic opportunities and create positive 

community change.
36 2016 — 2020 ARC Strategic Plan

1. Develop and support robust inclusive leadership that can champion and mobilize

forward-thinking community improvement. Appalachia is undergoing a significant

economic transition that calls for innovative leaders who think long-term and offer

effective strategies for community improvement. Communities need leadership that

reflects their demographics, understands the local economic context, and is skilled in

communication, collaboration, consensus building, and community engagement.

2. Empower and support next-generation leaders and encourage authentic

engagement in local and regional economic and community development. Young

leaders are critical to the future of Appalachia. Providing the next generation with

meaningful leadership and engagement opportunities at the local and regional levels

will motivate them to stay in the Region—establishing careers, creating businesses,

and otherwise contributing to community and economic development.

3. Strengthen the capacity of community organizations and institutions to articulate

and implement a vision for sustainable, transformative community change.

Community organizations and institutions are integral parts of local communities.

Their leadership can help create and implement a vision for community change.

However, in many communities across Appalachia, particularly those in economically

distressed counties and areas, community organizations and institutions have limited

capacity to engage in long-term community improvement efforts. Support is needed

to build organizational resources and skills so these entities can have a greater impact

in the community.

4. Support visioning, strategic planning and implementation, and residentengagement approaches to foster increased community resilience and generate

positive economic impacts. Long-term visioning and strategic planning by local

and regional leadership provide a way forward for Appalachian communities as they

face economic transition. Including residents in community planning processes is

important, as they can identify strategies suited to the local culture and economy. In

addition, residents involved in planning and contributing to the creation of a common

vision are more likely to support and engage in implementing the vision.

5. Develop and support networks, partnerships, and other models of collaboration

that catalyze public, private, and nonprofit action for community impact. It will

take many partnerships across business, government, nonprofit, and philanthropic

organizations to advance Appalachia’s economy. These collaborations attract

investments and produce greater impacts, helping move the Region’s

economy forward.

Goal 5 primarily addresses ARC’s performance

target to strengthen leaders and enhance 

community capacity. ARC investments generate 

additional outcomes tied to specific strategies 

and activities that contribute to regional success. 

The success stories that follow illustrate a range of 

outcomes and demonstrate the results that ARC 

seeks through its investments. 

Action Objectives

Outcome 

Measurement
GOAL 5

2016 — 2020 ARC Strategic Plan 37

Investments in Action

Facilitating CommunityWide Development with 

Small Grants

The West Virginia Flex-E-Grant Program, a joint 

effort of ARC, the Claude Worthington Benedum 

Foundation, and local investors, provides grants 

of up to $10,000 to strengthen local leadership, 

enhance civic engagement, and build organizational 

capacity across economically distressed, at-risk, 

and transitional counties in the state. Over 13 

years, ARC investments of $2.8 million and the 

foundation’s investments of $1.6 million have helped 

build community leadership and promote economic 

development opportunities. In Sutton, West Virginia, 

community members used their grant to identify 

local assets and develop a common vision for their 

economic future. They defined arts, recreation, 

and historic preservation as key economic drivers 

for their community and developed a strategic 

economic development plan to advance their 

mission, vision, and goals. This process enabled them 

to participate in the ON TRAC community project, an 

initiative of the Main Street West Virginia program, 

which fosters economic development through 

historic preservation.

Building Community Capacity 

to Plan for the Future

The Mountain Landscapes Initiative—a long-range 

project of the Community Foundation of Western 

North Carolina—helps citizens and communities in 

its 18-county region plan for growth. The foundation 

partnered with the Southwestern North Carolina 

Planning and Economic Development Commission 

to produce a “toolbox” of best practices for planning 

and development in the mountain region—the 

product of community meetings with more than 

900 participants. The commission then established 

a Toolbox Implementation Fund. Thirty projects 

received mini-grants of approximately $10,000 

to adapt and implement best practices from the 

toolbox, including greenway design, strategic 

tourism plans, and farmers’ market location 

feasibility studies. The $350,000 investment from 

ARC, coupled with $400,000 in local support and 

$30,000 in state dollars, created greater community 

capacity to advance sustainable community 

economic development in the region.

Powering Philanthropic 

Partnerships

The Appalachia Funders Network (AFN) is a group 

of more than 80 national, regional, and local grant 

makers who work together to accelerate the 

development of diverse and resilient local economies 

in Central Appalachia by building on the region’s 

unique assets. As a founding investor and member 

of the AFN steering committee, ARC has helped 

guide the network’s strategic goals and build crosssector partnerships, including ones with the Federal 

Reserve Banks and USDA Rural Development.

Two noteworthy and high-impact initiatives 

supported by AFN are the Appalachian Transition 

Fellowship Program and the Just Transition 

Fund. The fellowship program connected 12 

next-generation leaders with 33 cross-sector 

organizations—including the Community Farm 

Alliance in Kentucky—to work together to advance 

the promising sectors of food, health, textiles, 

and renewable energy across Central Appalachia. 

The Just Transition Fund was created by the 

Rockefeller Family Fund and AFN to help the 

Region’s coal-impacted communities take advantage 

of new federal support through the Partnerships 

for Opportunity and Workforce and Economic 

Revitalization (POWER) Initiative. The first awards 

provided $436,500 to help 19 organizations apply 

for POWER grants to support their work in both 

coalfield and power plant transitions.
38 2016 — 2020 ARC Strategic Plan
GOAL 5

2016 — 2020 ARC Strategic Plan 39

Cultivating Community 

Leadership through SOAR 

(Shaping Our Appalachian Region)

SOAR is a model for strengthening community economic 

development capacity in the Appalachian Region. 

In 2013, Kentucky Governor Steven Beshear and Kentucky 5th 

District Congressman Hal Rogers joined together to create 

an initiative that would help eastern Kentucky assess current 

challenges and leverage activities already under way to capture 

regional development opportunities and diversify the region’s 

economy. At the heart of this initiative was a commitment to 

community engagement and collaboration. The initial convening 

in December 2013 attracted more than 1,500 people from across 

eastern Kentucky. Ten working groups were charged with taking 

the ideas from the convening and engaging the region in deeper 

discussions about the challenges and opportunities in areas 

such as business incubation, broadband development, and 

regional collaboration and identity. Acting on one working-group 

recommendation, Governor Beshear and Congressman Rogers 

announced, in August 2015, the launch of the first phase of the 

Kentucky Wired I-Way broadband network—a statewide system 

that will begin in eastern Kentucky and spread across the state, 

helping reduce barriers to education and economic development by 

providing affordable, high-quality Internet service. ARC’s support 

for, and financial investment in, SOAR is establishing a commitment 

to help eastern Kentucky diversify its economy and make a positive 

economic transition.
40 2016 — 2020 ARC Strategic Plan

ARC holds itself and its local, state, and regional partners 

accountable for setting and achieving the performance 

outcomes associated with ARC-supported investments. 

ARC measures the effectiveness of investments by 

tracking progress on six key performance targets. 

Accountability at all levels
Performance Targets

Annual 

Performance Target

5–Year 

Performance Target

Businesses created 

and/or strengthened 2,500 12,500

Jobs created and/or retained 20,000 100,000

Ratio in leveraged 

private investment 6 to 1 6 to 1

Students, workers, 

and leaders improved 22,000 110,000

Communities with 

enhanced capacity 250 1,250

Businesses and households with 

access to improved infrastructure 22,000 110,000

2016 — 2020 ARC Strategic Plan 41

Targets are based on level annual appropriations of $70 million over the five-year time frame.
42 2016 — 2020 ARC Strategic Plan

ARC’S COMMITMENT

At all levels, ARC is committed 

to investing organizational and 

financial resources in ways that:

•Are strategic and

encourage alignment

of projects with the

goals of community

and regional plans.

•Encourage and

reward collaborative

efforts to achieve

common ends,

with specific focus

on connecting

economically

distressed counties

and areas to Regionwide economic

opportunities.

•Achieve the greatest

impact possible,

leveraging ARC’s

limited resources to

bring more resources

into the Region.

•Hold ARC, its

partners, and

its grantees

accountable

for achieving

performance

targets and helping

Appalachia prosper.
2016 — 2020 ARC Strategic Plan 43

One of the most important roles ARC plays in the Region is its role as investment partner. 

Over the next five years, ARC will work with public, private, and 

philanthropic partners—both inside and outside the Region—to 

advance current and emerging opportunities and to continue to 

close the gap between Appalachian communities and the nation 

on key socioeconomic indicators. For partners at the national 

level, ARC brings deep knowledge of the Region, a strong track 

record of impact, and far-reaching networks of critical community, 

state, and regional partners established over the last 50 years. 

With ARC’s leadership, national organizations can more easily 

connect with local and state partners and join with mission-driven 

organizations committed to helping the Region transition to a 

more prosperous future. For national public- and private-sector 

organizations, partnering with ARC is partnering with Appalachia. 

ARC has a long history of working together with other public 

agencies—both state and federal—to leverage its resources for the 

benefit of the Appalachian Region. Most recently, ARC partnered 

with federal agencies on the Appalachian Regional Development 

Initiative, the Rural Jobs and Innovation Accelerator Challenge, 

the Made in Rural America export and investment initiative, the 

Investing in Manufacturing Communities Partnership initiative, and 

the Partnerships for Opportunity and Workforce and Economic 

Revitalization (POWER) Initiative. ARC also recently partnered 

with the private and philanthropic sectors on regional initiatives 

that included a capital and credit initiative, which led to the 

establishment of Appalachian Community Capital; and the research 

project “Creating a Culture of Health in Appalachia,” in partnership 

with the Robert Wood Johnson Foundation.

Within the Region, ARC will continue to partner with state and 

community leaders to build on the foundation laid over the past 

50 years and to look for opportunities to make more strategic 

and catalytic investments that achieve the greatest impact 

for communities across the Region. The investment goals in 

ARC’s 2016–2020 Strategic Plan are a response to the positive, 

opportunity-focused input from community residents and leaders 

in all parts of the Region. These goals—and the success stories 

shared for each of them—help to define the types of investments 

ARC seeks to make with private, public, and nonprofit partners 

in the Region. ARC brings to these partnerships a commitment 

to build local and regional capacity, support innovation and 

collaboration, use data and exemplary practices to inform decision 

making, and connect communities with needed resources. 

Working with partners inside and outside the Region, and across 

the private, public, and nonprofit sectors, ARC will be able to 

build on the foundation of progress achieved through 50 years of 

investments and continue to invest in Appalachia’s future. 

Partnering with ARC
44 2016 — 2020 ARC Strategic Plan

As the investment goals in this forward-looking strategic plan make clear, ARC is 

committed to advancing community economic development in the Appalachian 

Region by emphasizing strategic focus, collaboration, impact, and accountability. 

ARC’s commitment to the Region is that it will be a strategic 

partner, using the full range of its resources in support of this 

plan’s five-year investment goals. ARC will continue to work 

with and support the local development districts and other local 

partners in effectively identifying and building on new investment 

opportunities. In addition, ARC will be accountable for making 

the operational changes needed to implement the new direction 

embodied in this strategic plan. 

To this end, ARC will pursue the following activities, which were 

informed by input from the Region’s residents during the strategic 

planning process: 

1. Identify, document, and proactively share exemplary practices

and new ideas with the Region’s communities on a regular,

timely, and consistent basis so they can maximize economic

opportunities.

2. Develop and share data and research that is actionable and

useful to communities as they make strategic decisions about

their assets and the economic opportunities that offer the best

future prospects.

3. Advocate for Appalachia and develop co-investment

partnerships with other organizations at all levels—local,

regional, national, and global.

4. Provide technical assistance and referrals so communities have

the capacity and connections needed to pursue opportunities.

5. Work with local development districts in the Region and help

build their capacity to support local communities.

6. Create and effectively use advisory councils and other regional

networks to provide input on sectors and building blocks that

contribute to regional prosperity.

7. Invest in pilot initiatives to demonstrate new and promising

practices in the Region.

8. Catalyze, facilitate, and strengthen partnerships and

collaboration across the Region.

9. Foster coordination among the range of economic development

plans and initiatives taking root in the Region.

10. Provide regular opportunities for public, private, and nonprofit

stakeholders to inform ARC’s investments.

Strengthening ARC’s 

Capacity to Invest
2016 — 2020 ARC Strategic Plan 45

Engaging State Expertise

In 2015, ARC convened the Emerging Opportunities Committee, a group of ARC state representatives who worked together throughout 

the year to better understand the emerging opportunities that could positively impact the Appalachian Region’s future. They explored 

innovative projects already under way in the Region and sought the counsel of key private-, public-, and philanthropic- sector actors. 

The group brought its research and insights to the strategic planning process and committed to being an ongoing resource for ARC in 

the years ahead. 

Over time, ARC’s portfolio of investments will spur significant, lasting impacts across the 

Region and continue to close the gap between Appalachian communities and the nation 

on key socioeconomic indicators.

To assess progress toward achieving these broader impacts, ARC monitors a set of regional indicators that illustrate how ARC’s 

investments, along with those of local, state, and national partners, are making a measurable difference in Appalachia. These 

indicators provide empirical evidence about the socioeconomic status of the Region. 

Key regional indicators of progress in Appalachia (benchmarked against national averages):

• Rate of business startups in Appalachia

• Employment in key sectors, such as manufacturing and

health care, as a share of the regional economy

• Poverty rate

• Per capita market income

• Unemployment rate

• Number of economically distressed counties

• Educational attainment rate

• Mortality rate

• Labor force participation rate

• Availability and use of broadband in the Region’s

businesses, schools, and homes

Regional Indicators 

of Progress
46 2016 — 2020 ARC Strategic Plan

As the Appalachian Region looks to the future, this strategic plan 

will be a guide for ARC in taking targeted and measurable action 

toward its vision of bringing Appalachia to full socioeconomic 

parity with the nation. The plan outlines goals and objectives that 

provide clear guidance for investments and a basis for evaluation. 

It calls for alignment of resources to maximize results and for 

performance measurement that ensures that the ARC partnership 

is effective and accountable. It creates a framework for building on 

past accomplishments to invest in Appalachia’s future.

Investing in 

Appalachia’s Future
2016 — 2020 ARC Strategic Plan 47
Appalachian Regional Commission

1666 Connecticut Avenue, NW

Suite 700

Washington, DC 20009-1068

202.884.7700 info@arc.gov www.arc.gov

Photos on pages 6, 29, and 39 courtesy of Peoples Rural Telephone Cooperative (PRTC)

Designed in partnership with Destination by Design, Boone, NC