The recent record numbers on Wall Street are not yet indicating new economic development in the Upper Ohio Valley, according to the president of the International Brotherhood of Electrical Workers Local 141.
The DOW Industrial Average this week finished above 30,000 for the first time in history and it finished at 29,910 when the markets closed Friday afternoon. The DOW reflects the daily price movements of 30 large American companies on the Nasdaq and the New York Stock Exchange, including corporations like Nike, Boeing, IBM, McDonald’s, and Walmart.
The IBEW’s Doug Giffin, though, explained the schedule for economic development in the region remains thin with a month remaining on the 2020 calendar.
“There’s one thing that always affects the work that goes on with construction and development throughout this area, and that is a presidential election cycle,” Giffin said. “That’s because corporations hold back money and don’t spend money until they find out who the next commander in chief is going to be. It’s been that way my entire career.
“They want to know who the next president is going to be before they move forward with any plans they may want to develop,” he said. “It’s either that, or they have to decide if they want to shut anything down based on the winner of the presidential election. They may not think that the next president would be good for their company for whatever reasons and that’s what impacts the amount of development that we may see here in this area.”
Pandemic Impact
At the time COVID-19 made its way to the United States early this year, several construction projects already were under way in the Upper Ohio Valley, including two large work sites at The Highlands in Ohio County.
The $30 million Highlands Athletic Complex was completed two months ago but has yet to fully open to the public because only a limited number of people are permitted to utilize it at one time. Menards, the newest and now the largest big-box retailer at The Highlands, opened in mid-October and is open from 6 a.m.-9 p.m. seven days per week.
“Besides the president election, we have this pandemic and that has had a negative impact on a lot of the potential that we once felt we had here,” Giffin explained. “The pandemic has had a huge impact on the brick-and-mortar industry and there was already concern about the future of those types of businesses because of how cost-efficient they are compared to the other options.
“This pandemic has added to that concern in a big way,” the IBEW president said. “I don’t think anyone has gone to as many businesses as they used to because they are attempting to remain safe, and I don’t think that changes until we get past this virus.”
When the pandemic first began, many companies sent employees home to work, and online shopping, Giffin believes, has become more popular than ever. With spikes reported throughout the Upper Ohio Valley, the holiday shopping season likely will be affected, as well.
“A lot of corporations now are looking at other innovative ways that they can do business,” Giffin said. “Most of the time that leads to less employment and less wages being paid so they can protect their bottom lines. That’s one of the reasons why there’s not a lot of development taking place right now. We may have about 20 percent of what we usually having at this time of year.”
Delayed Again
Ever since PTT Global America announced intentions to construct a petrochemical “cracker” plant in the Dilles Bottom area of Belmont County, the former Burger Power Plant has been cleared, homes have been purchased and demolished, and land along the Ohio River has been sculpted to make way for the development.
The facility, which would take advantage of the natural gas harvested from the Upper Ohio Valley, is estimated to be a $10 billion project, but PTT officials blamed the pandemic when announce yet another decision delay two weeks ago. A new timeline was not offered by company officials, but it was revealed that a new feasibility study would be conducted in 2021.
Giffin is hopeful PTT will move forward with the Belmont County location because of the number of jobs it would mean for the members of IBEW Local 141, and despite the fifth delay since 2017, he remains encouraged.
“If you travel near that site in Dilles Bottom, you see that there’s still progress taking place,” he reported. “From what I am told, the previous delay for the investment announcement was because of finances and PTT searching for a new project partner, but I have also been told that those issues have been taken care of. Now, I’m hearing, that they want to wait until after the pandemic before they move forward with it.
“The construction on the Shell cracker in Beaver County is still ongoing, and we still have some members who are traveling up there for work,” Giffin said. “There have been parts of that project have been impacted by the pandemic because those companies have had to deal with some of the workers being quarantined.”
