West Virginia export growth exceeds national average (WV News)

March 17, 2019

MORGANTOWN — Whether it’s coal, aerospace parts or other products, the Mountain State is experiencing an increase in exports to other states and around the world, even outpacing the national average.

According to a report from the West Virginia Department of Commerce, exports increased for the second year in a row in 2018, reaching $8.1 billion.

Furthermore, the state outpaced the national average for export growth rate in 2018 by almost double, as state exports increased by 14.2 percent while the nation’s exports grew by just 7.6 percent.

Information from the Department of Commerce’s report comes from the U.S. Census Bureau, which releases export data annually.

“To see our exports growing at almost double the national rate is truly incredible,” Gov. Jim Justice said. “Not only is it great news for our manufacturers who have made a home here in West Virginia and have seen their businesses grow because of it, but it is also wonderful to know that West Virginia’s products are making an impact all over the world and that everyone gets to see just how good we really are.”

The export news comes on the heels of Toyota’s announcement that it will invest $111 million in equipment and facility upgrades at its plant in Putnam County in order to double production of hybrid transaxles starting in 2021.

The investment will create more than a hundred new jobs in the process.

Coal continues to be West Virginia’s main export product and led the nation, with more than $4.3 billion exported to 35 countries. India, Ukraine, Netherlands, Brazil, and Canada are the top five export markets for West Virginia coal.

However, coal is by no means the only thing leaving the state.

Plastics, chemicals, automotive parts, metals, aerospace materials and hardwoods combined for more than $3 billion in exports from West Virginia last year. Notably, products and parts for the aerospace industry reported export growth at 17.8 percent over the previous year.

West Virginia Chamber of Commerce President Steve Roberts said these findings and Toyota’s announcement stand as proof the state is going in the right direction in terms of creating a business-friendly environment.

“I think it’s accurate and safe to say there’s some really good things happening in our economy,” he said. “We know chemical manufacturing is a major export product, and we really are seeing excellent signs of economic recovery. For three quarters in 2018, we were ranked 12th and 13th nationally in jobs creation. We have come up to eighth place in national GDP growth.”

Roberts said 16,000 new jobs have been created since 2016, and while there is still a long way to go to make up for the jobs lost since the decline of the coal industry, the economy appears to be turning a corner.

What’s more, he said the state also appears to be moving in the right direction regarding diversification. He said the coal industry started to slump in the late 20th century, but for a time started to pick up steam again in 2003-2004. As a result, the state was caught off guard when it started to decline again years later, he said.

Roberts said the success of the natural gas industry can further spur that diversification in the form of plastics manufacturing and the petrochemical industries, which use natural gas in many of their processes.

That process is already in motion.

In January, J. Michael Hager, the chief financial officer of U.S. Methanol, announced the company’s plans to dismantle two of its overseas plants in Brazil and Slovenia and relocate them in West Virginia in order to take advantage of the state’s gas supplies. Methanol is essentially alcohol in its simplest form and has a variety of applications, particularly among the industries already operating in the Kanawha Valley.

“This report highlights the ongoing, sustained and successful efforts in place to continue diversifying the economy in West Virginia,” said Mike Graney, executive director of the West Virginia Development Office.

“West Virginia manufacturers have proven they can deliver quality goods at a competitive price to customers located throughout the world.”

The West Virginia Development Office runs its own Export Assistance Program designed to help small and medium-sized businesses export their products beyond the state’s borders.

Mountain State-made products found their way to 142 countries in 2018. Canada remains the state’s largest trading partner, receiving more than $1 billion in exports, while India, the second biggest trading partner, saw its exports grow by 46 percent that same year.

Business Editor Conor Griffith can be reached by at 304-395-3168 or by email at [email protected]