AUGUSTA, Maine -- A telephone cooperative in two depressed Kentucky counties may have found a good path to economic development in poor rural areas -- through super-fast broadband.

The Peoples Rural Telephone Cooperative serves 18,000 people in Jackson and Owsley counties in Kentucky - one of the poorest areas in the country due to the collapse of coal mining. PRTC CEO Keith Gabbard said during the Great Recession, they moved to connect every home and business to the internet with gigabit-capable fiber.

He said it was very expensive, but it made possible a boom in tech support work with companies such as U-Haul and Apple.

"We've seen over 1,000 jobs created; work-from-home jobs," Gabbard said. "They have benefits. Some of these people are working for Apple, they're doing tech support for Apple. And all of them are paying more than a lot of the minimum-wage things that are available around here."

Gabbard said it cost $50 million, an average of $5,000 a mile, because it's especially expensive to wire the last mile to buildings. But he called it the best investment they've ever made. Along with the general improvement in the economy, broadband helped cut the unemployment rate by two-thirds -- from 16% at its peak to 5% now.

Like much of rural Maine, eastern Kentucky has suffered in recent years. Not only has it been hit by changes in the energy markets, it's also faced problems such as the opioid crisis.

Gabbard said areas with broadband tend to have better school test scores. And he said through telemedicine, they've been able to help local veterans skip the three-hour round trip to the nearest Veteran's Administration clinic in Lexington.

"We worked out a partnership with our local public library and we equipped a room," he said. "And now the veterans can actually have doctor appointments and go on there and talk to them via the computer."

About one-third of the money came from grants, 60% from loans and 10% from capital the co-op had saved, Gabbard said. He added that, with some help from their successful business as the local cell-service provider, the broadband venture has been able to meet its debt payments.


get more stories like this via email

South Dakota's new governor is making an active pitch regarding economic opportunities for the state. The renewable-energy sector said it continues to build a strong case, including manufacturing jobs.

Gov. Larry Rhoden spent much of March crisscrossing South Dakota on his "Open for Opportunity" tour to hear about promising development, workforce needs and trade issues. It has not received a visit yet but officials with the Marmen Energy plant in Brandon said they are keeping busy. Nearly 300 people there construct towers to hold turbines for wind energy.

Dan Lueders, plant manager for Marmen Energy, called it the very definition of "American-made" products.

"It's fully American made with American steel," Lueders explained. "We're contributing to the American independence on energy and also providing good-paying manufacturing jobs."

The Clean Grid Alliance said the plant produces roughly 1,000 tower sections each year for shipment throughout the upper Midwest. Lueders noted with data centers and other factors driving up electricity demand, he sees more opportunities for his operation. Nationally, enthusiasm has been somewhat dampened by the Trump administration's push to roll back renewable-energy funding, with a stated desire to focus more on fossil fuels.

But utilities are increasingly turning to renewables to diversify their output as demand spikes.

Waylon Brown, president of Rushmore State Renewables and regional policy manager for Clean Grid Alliance, said if South Dakota keeps the welcome mat out for wind and solar development, other industries will want to set up shop here.

"They're looking for nearby energy generation when deciding what states to do business in," Brown pointed out.

In addition to the manufacturing upside, the Energy Information Administration said South Dakota ranks second nationally for wind energy generation. Brown said, for example, having a healthy power supply could be attractive to the health care sector, noting advancement in medical technology is one of the many other things requiring more energy use.

More jobs could be coming to Arkansas as companies interested in bringing manufacturing jobs back to the U.S. consider the Natural State, according to a study by the Reshoring Institute.

Rosemary Coates, executive director of the nonprofit, said the state's low minimum wage is cost-effective for companies requiring a large labor force.

"What we generally encourage our clients to do is look at the major metropolitan areas and set up manufacturing just outside of that area so you can pull from the labor pool there," Coates explained. "Or to look at the metropolitan areas in places like Arkansas."

She noted although manufacturing remains cheaper in other countries, supply-chain problems experienced during the pandemic are making U.S. companies explore options for reshoring. The study did not address the financial effects of possible Trump administration tariffs on materials manufactured abroad.

Twenty states across the country, mainly in the South, pay the federal minimum wage of $7.25 an hour. If labor is a high percentage of a company's costs, it could be less expensive to reshore operations. Coates added some companies opt to have plants in multiple countries.

"Bringing some manufacturing to Mexico and some to the U.S. and keeping some in Asia," Coates outlined. "Companies are really rethinking the whole idea and strategy about where in the world they're manufacturing."

She stressed labor rates vary between rural areas and major cities in every state. Other costs associated with reshoring include local and state taxes, training, tax credits and logistics.


get more stories like this via email

A lack of access to in-home care in Pennsylvania has reached a crisis point, according to professionals in the field, leaving thousands of residents without essential services.

More than 400,000 Pennsylvanians rely on in-home care for daily support.

Mia Haney, CEO of the Pennsylvania Homecare Association, said Gov. Shapiro's budget puts seniors at risk, as it only includes $21 million for direct care workers and only for what's known as the directed model, which employs just 6% of them, leaving 94% without funding.

"We do not have enough workers to meet the need for folks who are looking for services and every single month, 112,000-plus shifts go unfilled," Haney pointed out. "That could be an eight-hour shift, it could be a six-hour shift, but a caregiver is not coming and someone is waiting for services."

Haney emphasized legislators control budget priorities and insisted they must support the direct care workforce this year. Without funding increases, she argued, many will go without care, leading to harm and unnecessary nursing facility placements for those who could receive services at home.

The General Assembly must vote on the budget by June 30.

Haney notes by 2030, one in three Pennsylvania residents will be over 65, increasing the demand for caregivers. Meanwhile, the number of potential caregivers remains steady, creating a growing shortage as the elderly population rises.

"We just this year had a study released that showed that the rates here in Pennsylvania are insufficient, meaning that you cannot possibly recruit and retain quality workers with the Medicaid reimbursement rate that we have today," Haney reported. "In fact, (it) indicated that we are 23% below where we should be."

Pennsylvania's average reimbursement rate for in-home care is just $20.63 cents per hour, which some feel is insufficient to maintain a stable workforce.

In comparison, neighboring states -- such as Delaware, Maryland, New Jersey and West Virginia -- offer rates that are 25% to 75% higher for the same services.


get more stories like this via email