Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, April 4, 1991 TAG: 9104040405
SECTION: VIRGINIA PAGE: B-2 EDITION: METRO
SOURCE: MIKE HUDSON STAFF WRITER
DATELINE: LENGTH: Medium
The report, released Wednesday by the United Way of Roanoke Valley and the Council of Community Services, says the city "might be called an economic solution waiting for a problem. It appears to have every requisite for commercial and industrial success in the modern world."
The upbeat language flies in the face of concerns voiced by many business leaders about the Roanoke area's economy, which has grown slowly compared to the rest of Virginia.
Mary Dittmer Houska, head of the economics department at Hollins College, said Roanoke's economy could not be called "robust" by any stretch of the imagination.
"It's `surviving,' I think. That's it."
Wednesday's report cites the city's low unemployment, its new airport and an "honest, reasonably efficient government" as some of the evidence pointing to great economic potential for Roanoke.
It says the city "has taken a series of major steps to upgrade its physical appearance. But there remains a nagging problem of self-doubt, a feeling of somehow missing the boat."
Backers of the Explore project and last year's failed government merger drive have cited the valley's paucity of decent-paying jobs and population losses as evidence that the local economy is in poor health.
The most recent figures for Roanoke show 4.9 percent unemployment.
That may sound low, Houska said, but it is misleading because the official statistics don't reflect the fact that well-paying jobs are being replaced by low-paying, part-time positions that generally don't offer health insurance or pensions.
"It's like treading water," Houska said. "You're not drowning, but you're sure not seeing a good harbor, either."
William F. Hawkins, owner of ProForma Mid-Atlantic, headed the task force that wrote the report.
The document covers population changes, economics, politics and government, education and social trends. It is intended as a planning tool for social-service agencies and local governments.
Hawkins said the authors were bullish on the Roanoke economy for three reasons: It has avoided the boom-and-bust cycles of other areas, has a diverse job mix and serves a large geographic area.
He conceded, though, that many young people are leaving the area to find better jobs.
Among the report's predictions:
Unemployment will remain low.
Over the next five years, employers with 50 or fewer jobs will be the best candidates for relocating in the valley.
Interstate 81 "will be the backbone of development, bringing corridors of growth in surrounding counties."
Investment by foreign firms in the valley "will continue to grow."
Houska agreed that the valley is well-situated for potential growth. But, she said, most companies that want to relocate here are looking for a chance to pay lower wages. And "they may turn around and leave once wages begin to rise."
"We're borrowing a problem here," she said. "I don't see one being solved."
by CNB