Commentary: Steve Roberts

West Virginia’s Economy On A Roll

The Charleston Gazette, August 26, 2005

WE ST VIRGINIA’S economy is on a roll, as evident by several recent economic indicators. Recent reports show that the state’s unemployment rate is at an historic low, private-sector employment is up, construction spending is strong and tax revenues are surpassing estimates. Just as significant, the level of capital investment planned for West Virginia now amounts to more than $5 billion.

The resurgence in the state’s economy is due to two key factors — the ongoing boom in the energy industry and important policy changes that have been made to improve West Virginia ’s business climate.

The major driver of the current good times in West Virginia is the booming energy industry. That industry and all its support businesses are benefiting from record energy prices. Over the past couple of years, coal and natural gas commodity prices have gone up fourfold. Production is up and should continue well into the future. Recently, two announcements have been made about major investments in new coal mining operations. One of those involves the first new coal mine in the northern part of our state in more than 30 years.

The state’s natural gas industry also is growing, with drilling activity at a robust pace and major new investments in pipeline and storage infrastructure. And investments are being made in upgrading the state’s electric transmission infrastructure and in new generation capacities, including wind power.

The economic rebound — both nationally and in West Virginia — is helping other segments of our state’s economy. The state’s tourism industry is strong and growing larger every year. A recent economic report shows that this is now a $3.4 billion industry. The state’s automotive industry continues to expand with the recent news of additional investments in the Mountain State by Japanese manufacturers. And our state’s technology and advanced sciences sectors are growing with new facilities, expanded research projects and more highly skilled workers.

The second major reason for the state’s newfound economic growth comes from major policy changes that have been made recently involving workers’ compensation, insurance laws, the judicial system and our civil justice laws. These dramatic changes were unthinkable just a few years ago. Our state’s political, business, labor and education leaders accomplished these changes after the realization we must change West Virginia ’s ways so that it is in step with our surrounding states and be in a better competitive posture for new investment and expansions.

West Virginia ’s workers also are doing their part in helping to transform the Mountain State . Our high school graduation and college-going rates are up, workforce productivity is high, and employee turnover is low. Another very positive statistic about our state’s dedicated workers came out just a few weeks ago. The statistic is that West Virginia ’s workers are ranked number four in the nation in terms of wasting the fewest hours during the workday. This confirmed what our state’s employers already knew — that West Virginians can be counted on to get the job done.

The business community will continue to focus on the core issues that are important to creating new jobs in our state, fostering greater business investment, improving educational outcomes and enhancing the well being of our communities. ...

The West Virginia Chamber believes that it is incumbent among all of us — government officials, employers, labor representatives, educators, nonprofit executives, employees, retirees — to focus on how best to tackle the tough issues facing us and to promote the positive aspects and great values of our state.

We must continue in this effort and work together with a common mission, a common purpose and a common fellowship. We must build upon our success and newfound fellowship with the courage and faith to work toward making West Virginia a better place to live, work, invest, recreate, raise a family and retire.

We must continue to work together to achieve fundamental measures of progress throughout our state. These measures of progress include:

Our state leaders should continue to examine new approaches, entertain new ideas and seek out solutions that will help to achieve the dreams and prosperity of all West Virginians . Now is the time to put aside personal interests and traditional barriers and work to produce real solutions and real progress. We must use these “good times” wisely and collectively work to strengthen our economic and employment foundation. That is what West Virginians want, and that is what our state needs now more than ever.

Steve Roberts is president of the West Virginia Chamber of Commerce