Federal Highway Bill Will Mean $2.6 Billion, 100,000 Jobs

West Virginia’s construction industry will get a big boost in the coming years thanks to a new federal highway spending bill. Under the bill, West Virginia will receive more than $2.6 billion in federal funds during the next five years for highway and bridge construction, maintenance and repair. Most of these federal funds will be matched by a 20 percent contribution from the state -- roughly $400 million more. The bill includes:

• $404 million annually for ongoing highway construction, including the King Coal Highway and the Coalfield Expressway projects in Southern West Virginia. This comes to a total of $2.02 billion.
• $432 million for ongoing work on the Appalachian Corridor highway system.
• $150 million specifically earmarked for new highway construction projects, including $87 million for U.S. 35 in Putnam and Mason counties.

The U.S. Department of Transportation estimates that 47,500 new jobs are created for every $1 billion spent on transportation nationally. Given this, West Virginia’s employment base could grow by more than 100,000 jobs.

Glassmaker Celebrates 100th Anniversary

Fenton Art Glass in Williamstown, W.Va., has passed a milestone that few companies have. The decorative glassmaker recently celebrated its centennial anniversary. While Fenton Art Glass did not move into West Virginia until 1907, the family considers May 5, 1905, the day it began when Frank L. and John Fenton deposited $284.86 into a savings account in Wheeling as their first commitment to the company. Fenton began as a glass decorating company before the brothers discovered the cost and other benefits of producing glass for themselves. Today, Fenton Art Glass remains a family business, including management by members of the fourth generation, and 500 employees.

W.Va. Restaurant Best In Nation

The Bob Evans Restaurant in Beckley, W.Va. is the best in the national chain. The store, located on Industrial Drive, has been named 2005 Restaurant of the Year by officials with Bob Evans. Stewart Owens, chairman of the board and CEO of Bob Evans Farms, was on hand at the store to personally present the award. The restaurant received the honor from among the company's 590 restaurants. The restaurant increased sales by more than 6 percent and had very low turnover. This is not the first time the restaurant has won the award. The Beckley store won the award in 1995.

W.Va. Hospital Tops In Wireless Tech Use

Camden-Clark Memorial Hospital in Parkersburg, W.Va., is being honored as one of the nation's "Top 25 Most Wireless Hospitals" for its wireless system. The Most Wired Survey and Benchmarking Study, conducted by "Hospitals & Health Networks" magazine, measures the nation's hospitals on their use of information technologies for quality, consumer service, public health and safety, business processes and work force issues. Results from the survey were used to named the 100 Most Wired, the Top 25 Most Wireless and other categories. This year 502 surveys were submitted, representing 1,255 hospitals.

100 New Telemarketing Jobs Being Created

Telespectrum Inc. will be creating 100 new jobs at its Charleston call center location, thanks to its recent success in picking up a new client. Presently, Telespectrum has about 210 full-time and 50 part-time employees at its Charleston center. The Charleston center opened in 1996. Telespectrum is a privately held company and is headquartered in King of Prussia, Pa. According to the company's Web site, Telespectrum has 3,500 employees who work in eight call centers in the United States and Canada.

New WV Mutual Will Be Nation's 15th Largest

West Virginia’s new mutual insurance company will be the 15th largest in the nation when it goes into business next year. The West Virginia Employers’ Mutual Insurance Co. also will be one of the state’s largest companies in terms of annual revenue, which will be more than $520 million next year. The company will be the sole source for workers’ compensation coverage for the state’s 42,000 employers until July 1, 2008, when private companies can begin competing for business in the state.

State's Broadband Uptake Beats National Average

West Virginia businesses and households added high-speed Internet connections last year at a pace that beat the national average. According to the most recent broadband subscribership data from the Federal Communications Commission, West Virginia’s broadband growth in 2004 was 54 percent. That beat the national average of 36 percent. In the Mountain State, broadband connections grew from 101,000 to 155,000.

Investments Worth $5 Billion Underway, Planned In West Virginia

West Virginia’s economy is receiving a major infusion of investment capital that amounts to nearly $5 billion, according to a quick tally of recently announced and ongoing projects across the state. The $5 billion in capital investments include projects in the energy, health care, research, environmental and automobile industries, to name a few. Among the energy-related projects that are in the works for West Virginia are:

• Coal: Two new coal mines have been announced for West Virginia. One is a new Arch Coal mine in Logan County, and the other is a new International Steel Group mine in Taylor County. These projects will account for nearly $400 million in new investment over the next several years.
• Natural Gas: Columbia Gas Transmission is spending $100 million to expand its natural gas storage facilities in the state, and drilling activity and production investment among natural gas producers is at running at a very active pace.
• Electric: A new power plant (Longview Power Plant) is planned for northcentral West Virginia, and this project will involve an investment approaching $1 billion. In addition, electric power generation stations across the state will be seeing construction and installation of more than $2 billion in emission control technology projects.

The state’s I-79 technology corridor is booming with nearly $1 billion in construction and expansion projects, many of which involve the region’s health care and technology industries. Projects include expansion of the W.V.U Health Center and the Ruby Memorial Hospital, construction of the new Blanchette Rockefeller Neurosciences Center, and the 263,000-square-foot ISR (Institute for Scientific Research) headquarters complex. Other major projects include continued expansion of the office campus in the High Technology Foundation’s technology park and the Charles Pointe mixed-use community.

In the Huntington area, $175 million in new projects are underway, including the $85 million expansion of the Cabell Huntington Hospital, the new $40 million biotechnology research center at Marshall University and the $54 million Pullman Square retail/entertainment complex.

Another business sector in West Virginia that continues to see growing investment is the state’s automobile industry. Earlier this year, Toyota Motor & Manufacturing announced the latest expansion of its massive facility in Putnam County. The company will be investing $120 million in the expansion. Other recent “auto related” investment announcements include those from A.K. West Virginia and Nippon Thermostat of America Corp.

Finally, interest seems to be growing from real estate developers who are searching the state for available tracts of land to transform into residential and recreational areas. Several of these projects are planned in Fayette and Greenbrier Counties.

“This multi-billion-dollar investment in these projects is tremendous news for our state,” said Steve Roberts, Chamber President. “Not only do these projects represent a continued expansion and diversification of our business base, but they also will provide for a large number of construction, material and supply jobs. Additionally, they will create employment opportunities that are designed for the future and will produce benefits for many areas for many years to come.”

New, ‘Improved’ Landscape For Commercial Insurance

West Virginia has a new, improved landscape for commercial insurance thanks to recent legislative reforms. That is the assessment of Jane L. Cline, West Virginia's Insurance Commissioner. Commissioner Cline noted that several recent changes have altered the climate for commercial insurance in West Virginia. She said three laws enacted in 2005 by the West Virginia Legislature, and signed by Governor Manchin, will have noticeable effects on commercial insurance, either directly or indirectly. These laws are:

• Senate Bill 30. Among other things, this law allows commercial insurers to “file-and-use” rates and forms.
• Senate Bill 418. This law contains new insurance remedies with respect to third-party complaints under West Virginia Unfair Trade Practices Act (UTPA).
• Senate Bill 421. This law changes the nature of liable parties in a lawsuit when more than one defendant is at-fault. Namely, the law changes the apportionment of damages in the system of joint and several liability.

These laws became effective on July 8, 2005. In broad terms, Cline said she "is confident these changes will improve the insurance climate in West Virginia. We anticipate the entry of new insurance carriers, expansion of existing carriers, and development of new insurance products." The commissioner said she anticipates that rates "will accurately reflect the cost of the insurance product and that availability will improve."

CEOs Highlight Needs Of State’s Education System

West Virginia’s new State Superintendent of Schools has been reaching out to CEOs across the state. According to a recent Associated Press article, Superintendent Stephen Paine called on CEOs recently to inquire into how the state’s school system was doing and what changes may be needed. Paine, appearing before a recent legislative interim committee meeting, was quoted as saying the CEOs urged him to improve how the state’s students tackle problem-solving and critical thinking. Paine noted that he is a supporter of the Manchin administration’s push toward harnessing the Internet and videoconferencing to offer more to students in smaller and poorer counties. According to the AP article, Paine said the state’s “virtual classroom” program is second perhaps only to Florida, noting that state considers nearly half the children in its program to be at risk. “That means they don’t have to be the brightest or come from well-off households,” Paine said. “Technology can be used in a major way to bring curriculum to rural schools.”

Workers Waste Less Time In West Virginia

West Virginia is ranked number four in the nation in terms of having workers who waste the fewest hours during the workday, according to a recent CNN/Money.com article. The Mountain State’s workforce was one of the least to spend time making personal use of the Internet (including email), socializing with colleagues, conducting personal business, spacing out, running errands, making phone calls, applying for jobs, planning personal events, and arriving late or leaving early. Apparently, that's typical for the American worker, according to a survey released Monday by Salary.com and AOL. More than 10,000 respondents in the online survey admitted to wasting, on average, 2.09 hours per day. West Virginia’s average was 1.4 hours (see state results). According to Salary.com's survey of HR managers, employers expect workers to waste about an hour a day plus lunch. That downtime is even built into the salary structure, Coleman said. But since employees report wasting more than twice what companies expect, he estimates that the extra 1.09 hours of wasted time costs companies an estimated $759 billion a year.

State’s Automotive Industry Expands Again

A new automotive manufacturing company is coming to West Virginia and should create as many as 100 new jobs. K.S. of West Virginia will invest $10 million in the new plant, which will sit next to the K.S. plant in Ravenswood. Workers at the new plant will stamp small- to medium-sized precision parts out of metal, and weld and assemble parts for the automotive industry. Construction on the new building should start soon and the new facility should open next spring. U.S. Rep. Shelley Moore Capito, (R-W.Va.), helped secure a $1.5 million grant through the U.S. Department of Agriculture to extend the water and sewer lines to the new facility. The Silverton sewer line extension also will bring these utilities to people who live in that area. Plans for the new company were solidified during a recent trip to Japan led by Gov. Joe Manchin and Sen. Jay Rockefeller, D-W.Va.

New Motorsports Complex Announced

U.S. Rep. Nick J. Rahall (D-W.Va.) announced recently that the U.S. Department of Commerce Economic Development Administration (EDA) has awarded the Mingo County Commission funds to start construction of a $2 million Twin Branch Motorsports Complex. The EDA will provide $1.2 million, and the Mingo County Commission will provide $800,000. The project will create many jobs in southern West Virginia during construction as well as after the complex is operational. The plan calls for the complex to be built at a former mine site and will provide many opportunities for local entrepreneurs. There are already proposals to build a new hotel near the site and to open a new Harley-Davidson store nearby.

W.Va.'s Unemployment Rate Falls Dramatically

West Virginia's dropping unemployment rate is reaching some new lows. From April to May, the state’s jobless rate dropped from 5.2 percent to 4.3. During that time, 7,400 fewer people reported being unemployed. "I tend to think that labor market conditions are in real good shape in this state," said Steve Shackleford of the state Bureau of Employment Programs. West Virginia is close to what most economists call "full employment," or 4 percent unemployment, he said. It is also called "ideal unemployment" because if the rate drops much below 4 percent, then wages become inflationary. The state's civilian labor force totaled 793,100 people in May. That's up about 2,000 from the same month the previous year.

W.Va. Ends Fiscal Year With Record Revenue Collections

Fueled by high energy prices and a rebounding economy, West Virginia's state government collected a record $3.5 billion in taxes, fees and other revenue during its budget year that ended June 30, state officials said Tuesday. The state ended the fiscal year with an $83.8 million surplus (even after appropriating $349.2 million of projected surpluses for the 2004-05 budget year). Compared to the prior fiscal year, revenues increased by $421 million, or 14 percent. The hike in tax collections was due to strong Severance Taxes, which came in more than $85 million higher ($248 million total) higher that first projected. The state's two biggest sources of tax revenue remain the consumer sales and personal income taxes. The sales tax landed $960 million for the year, while personal income taxes added $1.17 billion to the state's coffers.