CASE STUDY: Rebuilding Dalton: How Clean Energy Diversified the Local Economy
Overview
Nestled in the foothills of Northwest Georgia, the city of Dalton has long been known as the Carpet Capital of the World. Located 30 miles southeast of Chattanooga and 90 miles north of Atlanta, Dalton’s textile legacy began in the early 20th century when local artisans revived the Southern tradition of tufted bedspreads. What started as a cottage industry evolved into the invention of modern tufted carpet, transforming Dalton into a textile powerhouse.
For nearly 70 years, Dalton thrived as the corporate and manufacturing home to a $10 billion industry. Despite being virtually recession-proof for decades, the Great Recession shattered that perception. Between 2007 and 2009, unemployment shot from under 4% to over 14%, making Dalton one of the hardest-hit communities in the country. The downturn exposed the risks of overreliance on a single industry and forced local leaders to rethink Dalton’s economic foundation.
Context:
Whitfield County population - 100,000
Greater Dalton Chamber Membership - 1,600
Seizing the Opportunity for Diversification
The Great Recession made it clear that Dalton’s economy was too dependent on a single industry: floor covering. In response, the Greater Dalton Chamber and local leaders fully funded an economic development initiative, the Dalton/Whitfield Joint Development Authority (JDA). This effort was jointly financed through private funds raised by the Chamber and matched by public funds from Whitfield County and the City of Dalton. Additionally, the Whitfield County Commission invested $5.25 million to acquire 150 acres along Interstate 75 to establish Carbondale Business Park—marking the first time the community had an industrial park to market and an economic development team tasked with the job.
Strategic Planning for a Stronger Community
In 2016, the Greater Dalton Chamber commissioned a study to guide a community-wide strategic planning process that the Chamber would go on to spearhead. The study confirmed that Dalton’s economic dependence on one industry was a significant problem, but also showed that Dalton was far behind peer communities in the Southeast on a host of other issues, including lagging market-rate housing, educational attainment, and median family income. The most concerning statistic: 62% of those earning more than $40,000 in Dalton chose to live elsewhere. Diversifying the local economy and making Dalton a more desirable place to live and work became the basis for the strategic plan, called Believe Greater Dalton.
As industry recruitment continued around Carbondale, the community worked to revitalize its downtown, create an entrepreneurial ecosystem, adding single and multi-family market-rate housing, and bolstering educational attainment.
Attracting Economic Investment
The Greater Dalton Chamber and JDA team began proactively marketing the community to site selectors and economic developers, while simultaneously building relationships with state economic development teams.
Success did not come immediately. It took time for economic development projects to start looking at Dalton. When they did, Carbondale—the county’s new industrial park—didn’t show well. As JDA Executive Director & Chamber Vice President of Economic Development, Carl Campbell liked to say, “It looked like a good place to hunt.” Hilly and tree-covered, it was difficult for development prospects to see the potential. Eventually, the County Commission addressed the challenge by grading a large site and having it certified as a Georgia Ready for Accelerated Development (GRAD) “shovel-ready” site. Prospect activity increased dramatically, but the community was still unable to close a deal—until Hanwha QCells visited in 2017.
QCells proved to be the right project at the right time. While Dalton was actively recruiting QCells, the city was also making progress on broader economic and community development initiatives through Believe Greater Dalton. When QCells announced a $200 million investment and 600 new jobs in 2018, it was a breakthrough for the city.
QCells was eager to move quickly, and after nearly a decade of preparation, Dalton was ready. The partnership ensured swift construction, and QCells produced its first panels within a year of the announcement. As of 2024, QCells employs over 1,800 people and has invested over $500 million in Dalton.
Economic Benefits
Together, the recruitment of QCells and the Believe Greater Dalton strategic plan have yielded significant economic benefits:
Over 900 new market-rate apartments built, with more in the pipeline, representing the first sizable multi-family investments in the community in over 20 years.
Three market-rate subdivisions built in the first in 30 years.
QCells has expanded its footprint, with total investment exceeding $500 million and over 1,300 employees onsite.
Carbondale Business Park is effectively full, with QCells acting as the anchor business.
Over $15 million in private investment in downtown Dalton.