Embedded Files
INDUSTRIAL SITE CERTIFICATION market analysis | apple grove, wv
INDUSTRIAL SITE CERTIFICATION market analysis | apple grove, wv
This project involved exploring the development potential of a large (1,400-acre), predominantly flat, vacant piece of industrial land in rural West Virginia along the Ohio River.
Context
The region where the site is located has experienced economic challenges from the decline of coal mining and the loss of industrial jobs overseas. The local economic development agency, together with the owner, sought to better market the site to stimulate economic growth and job creation. The energy sector in West Virginia is transitioning from coal to natural gas and petrochemicals, with competitive energy prices and growing industrial clusters in the region driving potential investment. The site has remained vacant for years despite its multi-modal transport access (river, rail, road, pipelines) and abundant affordable energy.
The primary objective of the study was to evaluate the site’s suitability and readiness for different kinds of industrial development. The work included reviewing previous technical and environmental studies, conducting a SWOT analysis, assessing infrastructure and local/regional economic conditions, identifying missing data or studies, and providing strategic recommendations for marketing, planning, and future development approaches. Documentation of this work was intended to aid the client in presenting the site effectively to potential investors and developers, highlighting key opportunities.
Scope
Reviewed earlier technical, environmental, and site studies for completeness and relevance.
Conducted a detailed SWOT analysis addressing site physical characteristics, infrastructure, environmental considerations, labor market, location advantages, and economic context.
Compiled a consolidated checklist evaluating site size, topography, flood and wetland risks, civil utilities (power, water, wastewater, gas, telecom), and transportation infrastructure.
Examined local economic and industry cluster trends, including statewide development strategies and Mason County specialization.
Analyzed developer perspectives distinguishing speculative versus build-to-suit industrial development models.
Assessed planning and construction considerations focusing on site parcelization, multi-building layouts, and infrastructure requirements.
Identified target industry sectors aligned with regional resource strengths and market needs.
Reviewed local and regional plans, recent investment projects, and major economic development initiatives.
Provided detailed recommendations on marketing strategies, planning efforts, environmental due diligence, and stakeholder engagement.
Highlighted macroeconomic risks and uncertainties such as COVID-19 impacts and oil market volatility affecting shale gas economics.
Recommendations
Implement focused marketing targeting selected industry sectors aligned with site and regional strengths.
Use extracts of the report to develop targeted marketing collateral.
Create a detailed masterplan demonstrating parcel subdivisions adjusted for floodplains and topography to increase marketability.
Conduct necessary additional environmental and archaeological studies to fill information gaps (wetlands evaluations, full endangered species assessments, Phase II environmental site assessments).
Engage with neighboring industrial facilities to explore complementary investment and supply chain linkages.
Coordinate infrastructure improvements, including roads, wastewater, broadband, and emergency services, prioritizing upgrades that enhance site attractiveness.
Monitor macroeconomic and sectoral trends that impact the viability of energy-dependent industries and diversify target sectors accordingly.
Recognize that speculative development is unlikely in current conditions; focus on build-to-suit models for large energy-intensive employers requiring specialized infrastructure and site scale.
Results
After the study was completed, the site was successfully marketed for a $3–$4 billion investment by Nucor Corporation to build a state-of-the-art steel sheet mill. Construction began on the site in 2023, and the project represents the largest manufacturing investment in West Virginia history.
The mill will have a production capacity of 3 million tons of sheet steel per year, serving automotive, construction, appliance, and heavy equipment industries.
Nucor is utilizing electric arc furnace technology, making the facility one of the most advanced and sustainable steel mills in the world, with a low carbon footprint due to the use of recycled scrap metal.
At peak construction, up to 2,000 workers are expected on site, with 1,000 already engaged as of late 2024. Once operational (expected in the second half of 2026), the facility will employ more than 800 permanent manufacturing workers, with additional jobs in supporting services.
The project has received significant support from state and local economic development authorities, including infrastructure incentives for port and water system upgrades.
Local communities are preparing for growth and economic transformation; housing, infrastructure, and commercial redevelopment projects are being planned in anticipation of an influx of workers and residents.
This major investment is intended to transform Mason County’s economy, creating long-term skilled jobs, boosting local industries, and positioning West Virginia as a leader in sustainable steel production.
Brian Jennett authored the study while employed as an Associate Principal | Senior Real Estate Consultant at the Lamar Johnson Collaborative (LJC).
Page updated
Report abuse