West Virginia University experts are offering commentary on today’s (Feb. 10) announcement that Procter & Gamble is investing $500 million in a West Virginia manufacturing facility that the company expects will create 700 jobs.

• John Saldanha is assistant professor of management information systems and supply chain management. Saldana can be reached at 304-293-5318 or John.Saldanha@mail.wvu.edu.

• John Deskins is director of the WVU Bureau of Business and Economic Research and an associate professor. Deskins can be reached at 304-293-7876 or John.Deskins@mail.wvu.edu.

• Ednilson Bernardes is associate professor of supply chain management. He can be reached at 304-293-3011 or Ednilson.Bernardes@mail.wvu.edu.

• Gerald “Jerry” Biser is director of Industrial Extension and director of the West Virginia Manufacturing Extension Partnership. These entities serve as affiliates to the national Manufacturing Extension Partnership program, managed by the National Institute of Standards and Technology of the U.S. Department of Commerce. They provide consulting services to West Virginia industry ranging from production process improvement and quality systems to environmental management systems and health and safety. Services are customized to the specific needs of individual companies. Biser can be reached at 304-293-9384 or Gerald.Biser@mail.wvu.edu.

• Ken Currie is chair of industrial and management systems engineering. A three-time WVU graduate, Currie previously served as director of the Center for Manufacturing Research at Tennessee Technological University where he also served as associate director of the U.S. Department of Energy-funded Industrial Assessment Center, which offers energy assessments to small- and medium-sized industrial clients at no cost to the industry. WVU also has an Industrial Assessment Center. Currie can be reached at 304-293-9431 or krcurrie@mail.wvu.edu.

The Berkeley County facility is advantageous for Procter & Gamble, according to Saldanha.

“Locations in West Virginia, and Berkeley County in particular, offer access to skilled labor and inexpensive transportation from key supplies, and to national and international markets,” Saldanha said.

This location gives the company easy access to Interstate 81 and Interstate 70 as well as CSX and Norfolk Southern railroads.

West Virginia has a higher than the national average rate of residents with a high school diploma above the age of 25 at 40.6 percent, according to the College of Business and Economics West Virginia Economic Outlook 2015. The state’s average annual income of $40,200 is below the national average for manufacturing, and transportation and distribution.

This is also an interesting development for WVU faculty and students as it’s the first year of the University’s supply chain management program.

Bernardes said that Procter & Gamble has been redesigning its North American supply network to be more responsive to customer demand and drive out supply chain costs.

“This includes rationalizing their product portfolio and closing down the factories responsible for the divested brands,” Bernardes said. “The investment in a modern multi-category facility in West Virginia reflects P&G’s move toward bigger and more flexible facilities that can both accommodate multiple brands and benefit from economies of operations.

“The role of the future Eastern Panhandle facility on P&G responsiveness is critical because if consumers cannot find the desired product at a retail store, they will very likely purchase a rival’s product. However, responsiveness needs to be achieved as efficiently as possible and the location of the new facility is strategic in that sense.”

Deskins said the facility is promising for the state economically.

“This new manufacturing facility appears to have the potential to provide a significant boost to the economy of West Virginia’s Eastern Panhandle,” Deskins said.

“The income associated with the 700 direct jobs has the potential to provide an even greater boost to the economy as those employees spend a portion of their income in the region, creating additional income and employment.

“This builds on an already strong economy in the area, which is one of the strongest regions economically in West Virginia.

“Manufacturing is an important industry in terms of economic development. Manufacturing jobs are often relatively high paying, and the industry provides excellent opportunities for export out of the region.”

-WVU-

dm/2/10/15

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