Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, November 27, 1993 TAG: 9311270141
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
More than 60 percent of the 166 companies questioned in a poll said they expect to increase their number of workers in the next five years.
"That was the most surprising result," said Holly Lesko, project manager for the New River Valley Planning District Commission, which sponsored the poll.
Three companies said they expect some job cuts in that time period, while 61 companies reported that they expect employment levels to remain the same.
The poll, completed by Virginia Tech's Center for Survey Research, is part of the Planning District Commission's efforts to develop an economic strategy to deal with the massive layoffs caused by defense cuts.
Part of a $197,800 planning grant from the Department of Defense was used to pay for the study, Lesko said
Hercules Inc. has laid off more than 2,000 workers at the Radford Army Ammunition Plant in the past two years. The New River Valley's unemployment rate has hovered around 10 percent - nearly double the state's average.
The survey revealed that the defense cuts are hurting not just Hercules, but companies all over the valley.
The end of the Cold War has negatively affected 57 companies, while seven companies said they benefited from the defense downsizing.
Still, most of the manufacturing firms surveyed remained optimistic about the future and said they were happy doing business in the area.
Responses from individual companies were not released, just cumulative results. The number of job gains expected ranged from a single worker at one company to 500 workers at another.
In addition to gauging the impact of defense cuts, Lesko said, the survey was designed to reveal what factors attract and keep manufacturers in the New River Valley.
An overwhelming majority - nearly 95 percent - of the companies said the region's quality of life was important to keeping them in the area.
Just over 90 percent of the companies said they liked the area's skilled work force, while nearly 80 percent said they liked the labor because of its low cost.
Other positive factors from the area included: low utility rates; two major universities in the area; the right-to-work law that says employees don't have to belong to a union; tax structure; affordable office space; and a good transportation network.
"I can't think of a single reason to move," said one company official.
But not every company is completely sold on remaining here.
Negative aspects of the area revealed in the survey included: zoning problems; need for better, lower-priced health-care services; having to spend money to retrain workers; and the valley's image as a "low tech" area.
We would relocate if not for the cost, said one company. "The New River Valley lacks transportation ease and urban attractiveness."
by CNB