The Roanoke Times: Manufacturing in the valleys: Getting back on track

As I say in many speeches, Virginia coal helps create good paying jobs from Southwest Virginia to Roanoke to our Virginia Ports. This increase in manufacturing jobs in Roanoke is a big plus. These jobs would not be available if the federal government imposed energy tax schemes, which attack America’s energy resources.

Manufacturing in the valleys: Getting back on track

The Roanoke Times

By Jeff Sturgeon

August 28, 2011

Finally, after staggering losses in the manufacturing trades, a   company that builds things is hiring. FreightCar America, at its Roanoke   factory, this past week announced a big order and plans to hire about   200 people. Officials want to nearly double the work force by late this   year.

At a trackside news conference, the head of Norfolk   Southern Corp. smacked a new rail car with a bottle of champagne,   cracking it open.

Roanoke Mayor David Bowers heralded the pending arrival of “good-paying jobs.”

However,   the good economic news could be tempered by a number of variables. Pay   levels at the plant fall below area norms for manufacturing. And the   lingering possibility of another recession could put the brakes on   plans, one analyst said.

To be sure, though, there is cause for celebration.

One   in three manufacturing jobs in the Roanoke metro area in 1990 has since   disappeared, according to federal labor data. Experts say two factors   drove most of the domestic manufacturing job losses: higher   productivity, resulting in a lower need for workers, and foreign   competition, which took jobs away.

But things are turning around.   Manufacturing employment is growing modestly again and one expanding   sector is rail cars, the multi-ton vehicles that ferry everything from   coal and automobiles to grain and chemicals. Rail car makers delivered   more than three times as many units during the second quarter of 2011 as   they did in the second quarter of 2010, according to the Railway Supply   Institute.

In Roanoke, for the second time this year, NS ordered   1,500 rail cars to replace older units in its fleet. For each 1,500   cars, it will pay FreightCar about $100 million. Employment at the   FreightCar shops on Campbell Avenue Southeast could rise close to the   factory’s pre-recession peak of 430 employees.

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