By JAKE JARVIS
Charleston Gazette-Mail
CHARLESTON, W.Va. — Industrial energy costs have steadily risen in recent years in West Virginia, a trend which potentially threatens the state’s efforts to rebrand itself as a business-friendly state.
(Gazette-Mail photo by Craig Hudson)
That was one of several findings in a 60-page report state officials and higher education leaders unveiled Wednesday, a report they hope will “move West Virginia forward.” The report was created in hopes of identifying ways to make it easier to do business in the Mountain State and to attract more innovative businesses, among other things.
The report, completed in partnership with West Virginia University, Marshall University and the state’s Department of Commerce, was authored by McKinsey and Co. using private donations. The firm is considered one of world’s most prestigious consulting firms.
To complete the report, the firm synthesized myriad public and private datasets and interviews with community and business leaders across the region. Business leaders worried about the rising cost of industrial electricity.
The cost of industrial electricity has risen 7 percent on average over the past two years, according to the report. At several points this year, the cost has even risen over the national average.
The report also looks at current industries in West Virginia and opportunities to strengthen them. It could expand on its downstream oil and gas manufacturing, the report says, and attract more business that make carbon fiber reinforced plastics. CFRPs, as they’re called, are lightweight, fibrous materials used in industries like aerospace, automotive and civil engineering. One way to expand the CFRP industry here, the report suggests, it to commercialize existing CFRP patents owned by WVU and Marshall.
Authors of the report say a task force is needed to bring together education providers and major employers to launch a coordinated effort to build the state’s talent pool, improve the health of people to increase workforce participation and attract talent from outside the state.
“There is a mismatch between labor supply and demand, with employers reporting that it is necessary to hire people from out of state for occupations such as nursing, because unemployed workers are not receiving support and retraining to fill positions in growing industries,” the report reads.
WVU, Marshall and the Department of Commerce each plan to enter into an agreement to each start tackling initiatives the report suggests.
Gov. Jim Justice, who spoke briefly at the end of the news conference, linked next week’s vote on his road bond referendum to the plan to move the state forward.
“I very proudly can say we’re on the move. We’re starting to move, and you know it. You know it. You feel it. You feel it when you walk in communities and you see hope that maybe was dashed and not there six or nine months ago. We’re starting to really move…” Justice said. “When you drive through the community, the Dairy Queen is full, the Krogers is full, there’s people walking around the car lots. I mean, it’s happening.”
Reach Jake Jarvis at [email protected], Facebook.com/newsroomjake, 304-348-7939 or follow @NewsroomJake on Twitter.
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