Ohio

By Luis Feliz Leon - In These Times, August 30, 2023

Thirty-year-old Rick Savage was among the first workers hired at Ultium Cells’ 2.8-million-square-foot battery plant in Lordstown, Ohio, in April 2022. ​“I heard about the battery plant and how it was going to be technologically superior to all other manufacturing companies,” Savage remembers thinking. ​“The future of the automotive industry is going to be electric.”

Ultium Cells was a high-profile joint venture between U.S. automaker General Motors and South Korea’s LG Energy Solution. The Lordstown plant — billed as the largest battery plant of its kind anywhere in the country — was predicted to cost some $2.3 billion and generate more than 1,100 new jobs. GM’s legacy as a union employer was part of the company’s sales pitch to new employees. 

“They were saying, ​‘Hey, it’s the next GM, you can retire here, it’s going to be great,’” Savage says.

Deindustrialization has been battering northeastern Ohio for half a century. Ohio hemorrhaged 50,000 jobs within five years after Youngstown Sheet & Tube shuttered its Campbell Works steel factory in 1977. In 2008, after GM shuttered its facility in Moraine, 2,000 autoworkers were left without jobs. The Chinese automotive-glass manufacturer Fuyao hired some of them when it took over the closed plant in 2014, but at much lower wages.

By Jon Hurdle - Inside Climate News, August 23, 2023

Natural gas production in the Appalachian region of the United States has failed to produce promised increases in jobs and income since the fracking boom began there in the late 2000s, with economic stagnation likely to persist now that output of the fuel has passed its peak, according to a report issued on Tuesday.

The study from the Ohio River Valley Institute, a nonprofit research group, found that gas-producing areas of Pennsylvania, Ohio and West Virginia lost more than 10,000 jobs from 2008 to 2021 and that their personal income growth trailed that of the three states and the U.S. as a whole. Their population dropped by more than 46,000 during the period.

Even though gross domestic product of the 22-county region surged at four times the rate of the states overall from 2008 to 2019, little of that new wealth helped local economies because natural gas investment is mostly made in capital, not labor, and because many of the industry’s workers came from distant areas like Texas or Oklahoma where oil and gas skills were more readily available, the report said.

“GDP, which is often cited as a principal barometer of economic health, failed to produce commensurate gains in local measures of prosperity and well-being, including job, income and population growth,” it said.

By Sean O'Leary - Ohio River Valley Institute, August 22, 2023

By the first quarter of 2020, EQT Corporation, the nation’s largest domestic producer of natural gas, was supplying more than 4 billion cubic feet of natural gas per day. Just a decade earlier, EQT’s output wasn’t even one-tenth as much and the company ranked an undistinguished 25th for output among US producers. But EQT had the good fortune and foresight to base all of its operations in Appalachia, which made it the greatest beneficiary of what turned out to be the world’s richest natural gas field. 

In those early days of 2010, when EQT was the scuffling little guy trying to find a place among giants, such as ExxonMobil, the company employed just 1,815 people. But, by 2020, when EQT’s production had surpassed that of ExxonMobil and all others, its employee count mushroomed to . . . 624.

Yes, EQT’s head count actually declined by nearly two-thirds between 2010 and 2020. In fairness, some of EQT’s job reduction was attributable to its spin-off of Equitrans Midstream (EQM) in 2018. But, even if you add EQM’s 2020 head count to EQT’s, combined employment at the two companies was only 1,395 in 2020, still a quarter smaller than EQT’s workforce in 2010.

EQT’s tale of skyrocketing output accompanied by a shrinking workforce helps us understand important things about the shale gas industry. It helps explain why, as the Ohio River Valley Institute documented in 2021, the Appalachian natural gas boom failed to deliver what had been expected to be hundreds of thousands of new jobs for the region. And it demonstrates that as the natural gas industry matures, it becomes less jobs-intensive and its already meager contributions to economic development and prosperity become even fewer. The dynamic is simple. As a larger share of output comes from existing wells and fewer new ones are dug and work is completed on the construction of processing plants and pipelines, fewer workers are needed. 

Consequently, if production stagnates and the only need for new wells is to replace those that retire, the economic value of the gas industry to Appalachia may diminish even further. And if the Energy Information Administration is correct in its most recent forecast for domestic natural gas production between now and 2050, that is exactly the scenario Appalachia and its natural gas industry are facing.

According to the EIA’s “Annual Energy Outlook 2023”, Appalachian natural gas production likely peaked in 2022. Although this year’s events may prove that forecast to be incorrect in the short term, the long-term trend is clear. Production is leveling off. Indeed, data show that Appalachian production began to plateau as early as 2019. And, as this report will show, economic outcomes in the 22 counties in Ohio, Pennsylvania, and West Virginia that are responsible for 90% of Appalachian gas production deteriorated even further since 2019, which was the last year examined in ORVI’s original study of the Appalachian natural gas boom’s economic impacts in the counties where it is concentrated – an area christened “Frackalachia.”

Download a copy of this publication here (PDF).

By Claire Kovach, Stephen Herzenberg, Amanda Woodrum, and Ted Boettner - ReImagine Institute, Keystone Research Center, Ohio River Valley Institute, July 25, 2023

The Appalachian region has long suffered from not having enough good paying jobs. Even when the unemployment rate is low, too many Appalachians are disconnected from the workforce entirely due to a myriad of factors. The result has been a long-term structural unemployment problem that has persisted for decades, with too many Appalachian adults out of the workforce entirely and unable to secure a decent paying job where they live.

A federal job subsidy program that is targeted at breaking down barriers to employment – such as improving the skills and experience of potential workers to meet current employer demands in their local labor market – and connecting them with a job could not only boost incomes and improve the livelihood of thousands of Appalachians but also give people self-esteem, a source of identity, and feel more connected to their community.

This report examines the economic conditions of Appalachia with a particular focus on the Appalachian counties of four states—Kentucky, Ohio, Pennsylvania, and West Virginia—that comprise the footprint of ReImagine Appalachia and the Ohio River Valley Institute. This includes describing how Appalachia has been a “region apart” from the rest of America, including its history of resource extraction and exploitation, the collapse of the steel industry, and now coal, that has led to large employment losses in the area, and how the region’s uneven development has led to chronically low rates of employment, disenfranchisement from the labor market and even loss of hope underpinning the opioid epidemic from which the Appalachian region was particularly hard hit.

Download a copy of this publication here (PDF).

By Katie Myers - Grist, May 11, 2023

In the Mon Valley of western Pennsylvania, steel was once a way of life, one synonymous with the image of rural, working-class Rust Belt communities. At its height in 1910, Pittsburgh alone produced 25 million tons of it, or 60 percent of the nation’s total. Bustling mills linger along the Monongahela River and around Pittsburgh, but employment has been steadily winding down for decades.

Though President Trump promised a return to the idealized vision of American steelmaking that Bruce Springsteen might sing about, the industry has changed since its initial slump four decades ago. Jobs declined 49 percent between 1990 and 2021, when increased efficiency saw the sector operating at its highest capacity in 14 years. Despite ongoing supply chain hiccups and inflation, demand continues growing globally, particularly in Asia. But even as demand for this essential material climbs, so too does the pressure to decarbonize its production.

Earlier this month, the progressive Ohio River Valley Institute released a study that found a carefully planned transition to “green” steel — manufactured using hydrogen generated with renewable energy — could be a climatic and economic boon. It argues that as countries work toward achieving net-zero emissions by 2050, a green steel boom in western Pennsylvania could help the U.S. meet that goal, make its steel industry competitive again, and employ a well-paid industrial workforce.

“A transition to fossil fuel-free steelmaking could grow total jobs supported by steelmaking in the region by 27 percent to 43 percent by 2031, forestalling projected job losses,” the study noted. “Regional jobs supported by traditional steelmaking are expected to fall by 30 percent in the same period.”

By Sarah Jaffe - The Progressive, May 5 2023

It was the workers’ nightmare come true.

The Norfolk Southern freight train that derailed in East Palestine, Ohio, on February 3 sent a toxic barrage of hazardous chemicals into the air, soil, and water and caused untold damage to waterways, wildlife, air quality, and people’s health. It was a grim confirmation of what rail workers have been saying would happen for years. And it could have been worse.

No one was killed or badly injured in the derailment itself, and most of the 149-car train’s cargo was nontoxic. Fears of a massive explosion, which led to the evacuation of nearby residents, did not happen. But it’s hard to say there’s a silver lining to a disaster that prompted a “controlled burn” of toxic chemicals producing a cloud visible from passing airplanes, says Ross Grooters, a longtime railroad worker and co-chair of Railroad Workers United, a caucus of rail workers that spans multiple unions. Still, they add, after an attempt by rail workers to strike over working conditions—including ongoing safety concerns—was squelched by members of Congress and President Joe Biden late last year, at least there is renewed attention on the rails.

But if the politicians and the rail companies had listened to the workers, this accident, and others, might have been prevented. In the weeks following the disaster, three more Norfolk Southern trains derailed—in Ohio, Michigan, and Alabama—the latter occurring just before the company’s CEO, Alan Shaw, appeared before Congress to answer questions about the Ohio disaster.

I first spoke to Grooters in late January for a story about the rail workers’ fight for paid sick leave. At the time, they described a constant pressure to do more with less, exemplified by a system known as precision scheduled railroading, or PSR.

“The ‘precision’ part of ‘precision scheduled railroading’ is how precisely can we cut the operation to the bone and still have it walk around as a full skeleton,” Grooters told me. “They’ve cut so deep that it just doesn’t function and they don’t have people to fill the jobs.”

There had been cutbacks to track and equipment maintenance, and more equipment fatigue and derailments. “It just feels really unsafe when you’re in the workplace. It’s like we’re rolling the dice with all these things.”

In 2020, for example, The Washington Post reported that more than 20,000 rail workers had lost their jobs in the previous year, of which more than 3,500 had been at Norfolk Southern. Simultaneously, train lengths were increasing, adding more cars to the workload of the same tiny train crew. A rail engineer told the Post at the time, “They found they can hook two trains together and cut a crew.”

Rail workers were stressed, but railroad stock prices jumped. The following year, two rail workers’ unions filed suit, alleging that Norfolk Southern had sliced rail crews so deeply because of PSR that engineers were having to do the work of conductors and brakemen. “[Norfolk Southern] cannot lawfully lay off roughly 4,000 conductors and brakemen, and then give their work to another craft,” the two union presidents said in a statement at the time.

By Amanda Kiger - Global Justice Ecology Project, May 1, 2023

By Kari Lyderson, Ron Kaminow, and Maximillian Alvarez - The Real News Network, April 26, 2023

By Jacqueline Ebner, Ph.D., Kathy Hipple, Nick Messenger, and Irina Spector, MBA - Bob Muehlenkamp, April 17, 2023

For more than a century, steel has played an important role in the economy and culture of the Ohio River Valley. But the traditional method of making steel, known as BF-BOF (blast furnace-blast oxygen furnace), requires lots of energy and produces lots of climate-warming emissions. The iron and steel sector is currently responsible for about 7% of global greenhouse gas (GHG) emissions, according to the International Energy Agency.

Shifting to fossil fuel-free steelmaking could reduce greenhouse gas emissions, boost jobs, and grow the region’s economy. Fossil fuel-free DRI-EAF (direct reduced iron-electric arc furnace) steelmaking uses green hydrogen—created with wind and solar energy—to make steel with nearly zero climate-warming emissions.

Investing in fossil fuel-free steelmaking is a win for the climate and the economy. This report looks at Mon Valley Works, a steelmaking facility in southwestern Pennsylvania, as a model for transitioning from carbon-intensive BF-BOF steelmaking to fossil fuel-free DRI-EAF steelmaking.

Key takeaways:

• A transition to fossil fuel-free steelmaking could grow total jobs supported by steelmaking in the region by 27% to 43% by 2031, forestalling projected job losses. Regional jobs supported by traditional steelmaking are expected to fall by 30% in the same period, data show.
• Transitioning to fossil fuel-free steelmaking will cut Pennsylvania’s industrial sector emissions by 4 million metric tons of CO2e per year, improving quality of life and saving the state $380 million in health, community, and environmental costs.
• The Ohio River Valley is uniquely positioned to become a decarbonized industrial hub. A skilled workforce with applicable manufacturing experience, ready access to water and iron ore, and high potential for solar, wind, and green hydrogen development situate the region to lead a growing green manufacturing industry.
• Billions in federal funding from the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS and Science Act will boost demand for American-made steel while supporting worker retraining programs, hydrogen infrastructure, and renewable energy development.

Download a copy of this publication here (PDF).