THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, June 3, 1996 TAG: 9605310028
SECTION: FRONT PAGE: A8 EDITION: FINAL
TYPE: Letter
LENGTH: 43 lines
Gov. George Allen is back from East Asia with a trunkful of souvenirs for the home folks: a $17 million auto-parts plant for Botetourt County, a $6 million spinoff deal from the IBM-Toshiba semiconductor plant for Manassas, and a $15 million promise from the Sumitomo Corp. to expand its power-transmission-manufacturing plant for Chesapeake.
In all, the bounty includes $46.7 million in investment and export contracts signed and nearly 200 jobs. Not bad for a Yankee cowboy abroad in the land of sushi and pocket calculators.
Of course, most such deals are sealed and delivered - if not yet signed - before governors and their entourages take off on the trade missions that have become common in the past decade. It's hard to say how much a personal visit from a governor adds to the legwork already done by state and local economic-development staffs.
What's certain is that a growing number of state executives seem unwilling to take the chance on not making a courtesy call. As one who's staked a good bit of his legacy on economic growth, Allen wants to knock on as many doors as possible.
Recently released data from the Virginia Employment Commission say that Virginia is doing well, if not spectacularly, in the job-growth market. Nonagricultural employment was up 1.6 percent in the fourth quarter of 1995 over 1994. Georgia led the Southeastern states with a 3.2 percent gain, followed by Florida with 2.9 percent, Tennessee with 2.2 percent and Virginia. Nationally, gains averaged 2.1 percent.
But if promises were counted, Virginia's ranking likely would soar. State economists say that a series of recent economic-development announcements in the Richmond area could lead to 12,000-13,000 new jobs.
One unveiling came from Motorola Inc. and the Germany-based Siemens A. G. The companies said they'll build a $1.5 billion semiconductor plant in suburban Richmond. On a trade mission last year, Allen dropped by Siemens' German facilities. That hobnobbing was part of the mosaic that led to an investment decision.
No one can quantify the value of a handshake. But such experience is a good enough reason for Allen to keep showing up wherever the welcome mat is out. by CNB