Commentary:
Steve Roberts
West
Virginia’s Economy On A Roll
Collective
Focus Will Keep Things Moving
The State Journal, August 25, 2005
As the state’s business community prepares to gather
for the annual West Virginia Business Summit, it is welcome news to report that
the
Mountain
State
’s economy is
seeing a strong resurgence. The
pickup in the state’s economic vitality is evident by several recent economic
indicators. Recent reports show that
the state’s unemployment rate is at historically low levels, private-sector
employment is up, construction spending is very strong and tax revenues are
surpassing estimates. Just as significant, the level of capital investment
planned for
West Virginia
now amounts to more than $7.5 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. Adding
to this is the ongoing national economic expansion, which continues to expand at
a healthy pace.
The
major driver of the current good times in
West Virginia
clearly 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.
Further
“fuel” for the state’s economic engine will come from the influx of new
federal highway funds that are slated for
West Virginia
’s highways and bridges.
The recently enacted federal highway spending bill will provide up to
nearly $2.6 billion in funding for the
Mountain
State
. West
Virginia’s construction industry will see a big boost, and these funds will
help to propel economic activity throughout
the state for the next six years.
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. We
are seeking progressive change, sensible programs, pragmatic results, and, yes,
greater business growth.
The
West Virginia Chamber believes that it is incumbent among all of us –
government officials, employers, labor representatives, educators, non-profit
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. This unity of purpose was
shown recently with the widespread support provided to offering voters a
solution to our state’s pension debts.
We must continue in this effort and work come 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:
•
Increasing the state’s per capita income and employment opportunities
•
Improving health habits and conditions
•
Improving educational achievement and facilitating life-long learning
•
Diversifying the state’s demographic trends and reversing the youth exodus.
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.