Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Strong Fiscal Health: Ranked 15th in the nation for fiscal health with a ∼$2.8 billion surplus, providing stability and a "B" grade for financial condition (2025). Low Business Cost/Taxes: Eliminated the Business Franchise Tax and reduced the Corporate Net Income Tax, leading to a historically low business tax burden.

Poor Workforce Participation: Ranks last among all states in the labor force participation rate (∼54.3% in July 2025), severely limiting workforce availability. Low Per Capita Income: Ranks 49th nationally in per capita personal income, indicating lower consumer spending power.

Ready-to-Build Sites Initiative: New state funding and plans to develop shovel-ready industrial sites to remove a major barrier for attracting new, large-scale employers (e.g., steel mills, battery factories).

Revenue Instability: Recent tax cuts have led to two consecutive years of declining state revenue (FY 2024-2025), raising concerns about long-term fiscal sustainability and the ability to fund public services.

Domestic Manufacturing

Massive Capital Investment: Attracting historic, large-scale investments in core and emerging sectors (e.g., Nucor's $4 billion steel mill, Form Energy's battery factory). High-Value Automotive/Aerospace: Toyota's plant produces next-generation hybrid transaxles, and the chemicals/materials sector (e.g., Chemours) is a key global supplier of high-value materials.

Lack of Prepared Sites: Lags significantly behind neighboring states in having readily available, infrastructure-equipped, "shovel-ready" industrial sites for new investment. Concentrated Growth: Job and population growth is heavily concentrated in the northern half of the state and Eastern Panhandle, leaving many rural counties behind.

Downstream Energy Manufacturing: Strategic location on the Marcellus and Utica shale offers a low-cost natural gas feedstock to develop downstream chemicals, plastics, and advanced materials manufacturing clusters.

Decline of Traditional Industry: Continuous, long-term decline in the mining and logging workforce (e.g., one-third loss over the previous decade), creating employment challenges in specific regions.

Sustainability Initiatives

Pioneering Energy Storage: Home to Form Energy's high-volume battery manufacturing facility, positioning the state as a leader in long-duration energy storage technology. Diversification Strategy: Explicit state focus on diversifying beyond coal by promoting wind, solar, and hydroelectric power, supported by new microgrid and clean energy legislation.

Policy Contention: Ongoing legislative battles over environmental regulations (e.g., protecting water quality, nuclear power, and public land use) create an uncertain regulatory environment for developers.

Carbon Tech/Hydrogen Hub: Leveraging natural gas reserves to become a hub for carbon capture and sequestration (CCS) and hydrogen production, bridging the gap between traditional energy and clean tech.

Reputational Risk: A historical identity tied to fossil fuels can hinder efforts to attract environmentally conscious businesses and talent seeking a "green" location.

Balance of Trade

Export Diversification: Success in exporting a range of complex goods, including Spark-Ignition Engines, Polyacetals, and Aircraft Parts. Job Support: International trade supports nearly 170,000 jobs, or 20.0% of all jobs in the state.

Trade Deficit: Exports ($333M) are typically lower than imports ($404M) as of July 2025, resulting in a persistent negative trade balance, ranking low (45th in exports, 47th in imports) compared to other US states.

Global Market Expansion: State-led programs are actively helping West Virginia companies (especially SMEs) break into new international markets, as evidenced by the 2025 Export Awards.

Volatile Commodity Exports: A high percentage of exports are composed of coal and natural gas-related products, making total trade value highly susceptible to fluctuations in global commodity prices and climate policies.