County’s economic growth continues to shine in region

Washington County’s economy, which has seen significant growth over the past several years, continued its pace in 2014, according to an annual economic update provided Thursday by county commissioners.
During a breakfast presentation to about 200 members of the Washington County Chamber of Commerce at the Hilton Garden Inn in Southpointe, commission Chairman Larry Maggi said the county attracted 111 economic development projects and $1.4 billion in capital investment last year.
While energy – particularly natural gas extraction and production – has been the key driver over the past several years, Maggi noted the latest projects were spread across energy, commercial/retail development, hospitality and manufacturing.
The spread across industries was noted later by Commissioner Harlan Shober, who said the county needs to continue economic diversification as it moves forward.
Dr. Yongsheng Wang, associate professor of economics at Washington & Jefferson College, highlighted an economic impact study he did in conjunction with the chamber and the Marcellus Shale Coalition that found, between 2011 and 2013, the shale industry was responsible for contributing between 15 and 20 percent of the county’s total economic output.
During an initial press conference by Maggi, Shober and Commissioner Diana Irey Vaughan, the trio laid out the story behind the growth, which was fueled by private investment from companies that see opportunities in the county; the continued success of the county’s Local Share Account from The Meadows Casino; and tourism, which has seen direct visitor spending here double during the past eight years.
”Washington County has been truly exceptional in the greater Pittsburgh region in creating new economic growth, energy development and commercial expansion,” Maggi said. “Our positive economic growth, new jobs and low taxes have many people in our country talking about Washington County – there is truly no other county experiencing our growth in this region.”
Maggi added the county’s jobless rate has been below the U.S. national rate for 22 of the past 23 months and at or below Pennsylvania’s rate for at least the past 27 months.
He noted the energy sector was responsible for creating 1,762 jobs in the county last year, which led all eight counties in the region in that category, as tracked by the state Department of Labor & Industry.
In fact, commissioners acknowledged during a question-and-answer period with the audience that the low unemployment rate is putting pressure on filling some job openings here.
In addition to the new growth in projects, Irey Vaughan noted that the Washington County LSA program, an eight-year-old effort that takes a portion of revenue from The Meadows Casino for community, economic and industrial development projects has invested over $65 million.
”However, more impressive is the leverage that we have been able to realize from these investments,” she said, noting that the funds have been matched with more than $185 million in additional federal, state and local money for a total of $250 million.
The investments have included expansions at some of the county’s business parks, including Alta Vista and Starpointe, as well as the expansion of the Washington County Airport, and community investments in infrastructure upgrades and new recreational areas in Centerville and Charleroi.
”Our process for awarding the funds is unique to other counties” that have casinos and receive a portion of the revenue, she added, explaining that the vetting process for projects is conducted in public and approved by the commissioners.
While a portion of The Meadows’ gross revenue helps to create economic development across the county, the casino and racetrack complex also is the largest asset in the county’s portfolio of tourism attractions, noted Shober.
At its seventh anniversary last year, The Meadows had become one of the county’s largest employers with 1,285 workers, hosting more than five million guests annually.
The numerous tourism attractions, as well as business conducted by the energy industry, were responsible for generating $754.7 million in direct visitor spending in 2013, and supported 5,957 jobs, Shober added.
He said the spending amount has more than doubled from 2006, when direct visitor spending in the county was $333 million.
”This was prior to the full development of such tourism assets as The Meadows, Tanger Outlets and the tremendous opportunities presented by the energy industry,” he said. “You can clearly see the positive impact these assets have on our economy.”
In answering questions posed by Washington County Chamber President Jeff Kotula, commissioners acknowledged that growth hasn’t been limited to the Interstate 79/Route 19 corridors, and pointed to the Monongahela River, which they said they see growing potential as a prime tourism attraction for boating and fishing.
Maggi noted that people are purchasing homes in some river communities as vacation homes. There also is a need being expressed for docks at many of the towns.
When asked by Kotula where he sees the county in 25 years, Shober said he expected that the development stage of natural gas would be completed, and the county should begin now to pursue the businesses that will use the fuel in coming years.
”We need to diversify,” he said.
Commissioners acknowledged that low unemployment is beginning to challenge employers who have job openings.
Amy D’Amico, who heads community outreach for Penn Commercial, noted that Brownsville Marine has a large demand for welders, and has offered part-time positions for the school’s students enrolled in its welding program.
Commissioners also acknowledged that like many other communities around the country, the county has a drug problem, which keeps people from participating in gainful employment.
”It’s everybody’s problem,” Maggi said.
Irey Vaughan said the county “has to change our way” of thinking about how to deal with drug addiction among its residents.
”Almost everyone in our jail has a drug problem,” she said, noting that studies have shown that it costs about $8,000 to incarcerate each prisoner for six months, but nearly the same amount of money could be spent on “in-treatment” programs with the hope of rehabilitating people for productive lives.