West Virginia Manufacturing
In the Mountain State, manufacturing
alone accounted for $7.43 billion in output,
$3.92 billion in exports and 48,300 jobs in
2015, according to the Center for Manu-
facturing Research. Those in the industry
recognize its challenges—like the growing
lack of a qualified, skilled, drug-free work-
force—as well as its opportunities.
“West Virginia’s tax structure is less favor-
able than other states,” Rebecca McPhail,
executive director of the WVMA, says of the
challenges facing the state’s industry. “Our
state is one of the few that taxes inventory
and machinery, which is an issue for manu-
facturers. West Virginia’s current financial
situation does not lend itself to addressing
this issue in the short term. We hope law-
makers and leadership will continue to look
for ways to create a more competitive and
modern tax structure in West Virginia.”
Despite the challenges, McPhail is op-
timistic about the potential she sees in the
Mountain State. “There is tremendous
opportunity for manufacturing growth in
West Virginia related to the downstream
development of ethane and other shale de-
rivatives,” she says. “The resource lends
itself to the likely rebirth of the chemical
manufacturing industry and West Virginia.”
Path to Prosperity
As Abernathy reports, all southern states
have the opportunity to improve their com-
petitiveness, but it requires a commitment
to growth and the support of policymakers,
who play a crucial role in addressing com-
petitiveness in manufacturing.
“Once policymakers have a clear analysis
of the state’s current competitive position,
they have to ask, ‘What efforts will it take
to move the state from its current competi-
tive position to where it aspires to be,’”
he says. “Then they must make very hard
choices about investments and regulations.”
West Virginia is no stranger to hard choices.
Facing a financial crisis, the state is strug-
gling to balance harmful budget cuts with
the exploration for new revenue sources. As
optimistic chatter about the potential for a
manufacturing renaissance spreads through-
out the state, the report couldn’t have come
at a better time. “A New Blueprint” provides
a roadmap to prosperity for an industry full
of potential. Today, competitiveness is king,
and in order for West Virginia to capture the
throne, state and industry leaders will need
to commit to investing in the state’s talent
and addressing its business climate.
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