The region’s economy functions with moderate efficiency to deliver goods and services to the 190,087 residents of this three-county area. This region has been classified by the Appalachian Regional Commission as transitional; this area hasn’t achieved economic parity with the Nation.  This Region shows impacts of poverty, poor health, and limited economic capacity.  Rural and urban poverty occurs in the STC region; 15.6 % of people in the region are in poverty vs. the 14.2% poverty rate in New York State. Poverty in the STC region is higher than the Appalachian Poverty rate of 14.5% and higher than the 12.5% National poverty rate. Census tracts within the region are classified as distressed by the EDA.  The region’s residents are primarily white (89%).  African-Americans are 3.3% of the population, individuals of two or more races are 2.5% of the population, Hispanic individuals are about 2.7% of the population and Asian individuals are 1.4% of the region’s population.

The weather of this region is Dfb: warm summer, no rainy season, continental as classified by the Köppen classification. For agricultural purposes, this area is prone to freeze between October and May; located almost entirely in USDA zone 5b and 6a, small portions of land adjacent to the Finger Lakes are classified as 6b. Cloud coverage is notable.  Regular precipitation and cloud cover support the region’s forests, pastures, and field crops.  This community is not prone to frequent droughts and municipal water is sourced from underground aquifers.  Terrain and riverine water resources shaped historical development in these communities.   Agricultural land uses like field crops and pasture lands occur on gently sloping or flat terrain outside the urban areas.  Steep slopes are generally left to forestry uses (open space, timberland, and hunting acreage).  High intensity urban development is concentrated in the flat-lands adjacent to the rivers; these flat lands are historic floodplains.  Flood control structures (local levees and regional structures like Cowanesque Dam in Pennsylvania) protect a significant portion of the region’s residents from river-based flooding.  The location, condition, and height of these structures is an ongoing topic of significant importance to the region.  STC’s staff work with local, State, and federal government to raise awareness of the risks of levee de-certification and to develop a long-term strategy to rectify the issues raised by FEMA.

Six types of infrastructure are common throughout the Region: road, rail, electric, water, sewer, and internet. The entire area is covered by electric infrastructure following rural electrification in 1940’s and the development of Steuben Rural Electric (which now serves parts of Western NY as well). Although the condition of electrical infrastructure has deteriorated, or in some cases not been improved  to meet increased demand.  Electric grid constraints are a major regional concern highlighted in this CEDS.  State or Federal highway infrastructure serves the entire region; every part of the region is within a 40-minute drive of an Interstate highway. Highways receive routine maintenance, although some culverts are at risk of deterioration. Rail lines cross our region and rail access to developable sites is possible.  Water infrastructure (Water/Sewer systems) are prevalent in urbanized areas, and generally absent in the rural areas. High-speed internet is generally available throughout the region; unfortunately, there are rural areas that do not have reliable fiber broadband access and approximately 25% of the region is served by only one internet service provider (ISP) allowing for little competition in the broadband market and generally higher cost of services.

From a total population of approximately 190,000, the region’s workforce is approximately 80,000 people and workforce participation is poor.   The U.S. workforce participation rate is 62.4% in Jan 2025 according to the St. Louis Fed, 61.2% for NY state, and only 54.3% for the STC region.  Poor workforce participation has been identified by regional partners for more than eight years and was studied in detail in the 2018 workforce study from Three Rivers Development and STC’s 2021 workforce study funded by the CARES Act. The workforce could be increased by attracting a percentage of the region’s 69,409 residents who are 16 or older and not participating in the labor force.  Increases in participation will require increasing the attractiveness of employment, or offering stability to new workers in uncertain times.  Workforce increases due to attraction of workers from outside the three-county area is possible if housing stock improves or if housing availability increases. 

Regional educational attainment is near average for the US and Appalachia.  Educational attainment in this region is comparable with other Rural NY communities: High School graduation attainment is 2-3% higher than NYS average (92.4% for Chemung, 90.8% for Schuyler, and 92% for Steuben, vs. 89.8% for NYS), with lower rates of attainment for Bachelors, Masters, or PHD degrees. Higher education options in/near the area are available through Elmira College, Binghamton University, Cornell University, Ithaca College, and Keuka College. However, due to the small population and workforce size specific educational attainments necessary for employment like advanced degrees and specific skills are often recruited from outside.

Regional industry is led by government employment (far exceeding the national average for communities of this size).  Followed by health care and social assistance which is slightly above the national average for a community of 190,000 people.  Manufacturing is the region’s third largest employer, and this industry is very strong in the STC region, approximately nearly double the national average for a community this size.  Retail employment is slightly higher than the national average, due in part to the region’s proximity to the Northern Tier of PA (residents from outside the region routinely shop in the STC region, as there are no equivalent ‘mall style’ retail offerings in the adjacent PA counties).  The STC region has lower than average employment in most of the other industries, except Ag. (although agriculture remains a small part of the region’s employment mix.

Specific clusters of note include rail manufacturing, glass and fiber optics, as well as high tech manufacturing, agricultural products, and value added agricultural products.  Clusters expected to decline over the next 20 years include education, other services and retail.  Growth in the next 20 years is expected in agriculture, transportation and warehousing, resource extraction, information, accommodation and food service. 

Elmira Corning, Bath, Watkins Glen, Montour Falls, and Big Flats were induced to grow because of natural resource extraction, agriculture, and the manufacturing economy.  Historic manufacturing employment induced development in the region’s cities and villages.  The long-term effects of this historical development is a legacy of industrial sites with potential for redevelopment embedded within established communities with infrastructure.   Future impacts of manufacturing industries in the area include continued investment by wealth creating industries in the area, reuse of existing sites for appropriate new development in manufacturing, and continuation of a local culture of manufacturing.  Agriculture impacted the landscape with widespread clear cutting and hay farming in the 1800’s and 1900’s, followed by dairy and crop farming.  The agricultural declines from 1900-through 2000 did stabilize, although there have been small changes in recent years, those changes are consistent with national trends.  Present impacts of past agricultural clusters include: the longest running agricultural fair in the US, the Steuben County Fair, many existing farms, as well as perennial plantings like vineyards, orchards and berry farms that are still in production. Future impacts of the agricultural cluster are generally positive: continued investment in agricultural land uses, growth of the dairy industry specifically to meet customer demand, soil improvement, youth-community retention, increased regional GDP, and value-added production in dairy and innovative crops.

 Factors affecting regional economic performance include: grid capacity, childcare, low workforce participation, mismatch between in-demand skills and the education system, and housing constraints.  New York State laws and regulations increase operating costs for employees, employers and residents of the area.  The transportation system is approximately adequate, with thorough coverage of Interstate highways, state roadways, county roadways and local roads, in addition to several airports.  Rail lines, but public transportation improvements could lower costs for working people.  Energy costs are high and rising.  Taxes in New York State are high and rising.  The issues of taxes and energy costs, as well as regulation, have been addressed in detail in STC’s prior CEDS from 2012 to 2024. Thus, the abbreviated commentary here.  Land use patterns are appropriate for the community and STC is working to improve emergency preparedness risks that are linked to land use.

The region has generally low population density, high quality of life, and strong outdoor recreation opportunities. The community is generally safe, with crime rates at or below national trends.  Resources are present in the community, and generally available to residents and visitors. The Southern Tier Central region is an important part of the New York State economy, generating approximately $12.1 billion annually toward the NYS GDP of $2.2 trillion.  Regional manufacturing supply chains link broadly throughout the NYS economy.  The region’s manufacturing base is higher than the New York average, and agriculture is also above the New York average.  The region continues to generate global exports.