As interest in the Marcellus and Utica shale gas formations grows, so does the Mahoning Valley's chances for continued economic growth.
On Wednesday night, Youngstown City Council is expected to approve what would be just the latest project to bring new jobs to the area. As we've seen with businesses like TMK Ipsco in Brookfield as well as DeCal and V & M Star in Youngstown, developers are looking to be close to where the activity is.
Officials have confirmed that Houston, Texas-based Exterran Energy Solutions wants to build a $13 million manufacturing facility and office building on about 20 acres in the Salt Springs Road Industrial Park on the city's West Side. The company makes and services equipment for the oil and gas industry and officials said the location, relative to those projected Marcellus and Utica formations, makes the spot ideal.
"In our conversations with Exterran, basically they draw a circumference around the areas of activity and it makes business sense for them to locate there so they can provide their product in a timely fashion. And it makes their operations move seamlessly," said Youngstown Economic Development Director T. Sharon Woodberry.
Providing City Council approves the development package on Wednesday and the state OKs a separate incentive deal, construction could begin in February and take about a year or so to complete. Part of the city's agreement would include a 10-year property tax abatement as well language to turn over the land to Exterran free of charge.
Although the company is committed to hiring just over 100 employees by the summer of 2015, local economic development officials believe that figure could be closer to 200 as the project moves forward.
"That provides stability to the neighborhoods. Those who are employed well, their roots are grounded. They're purchasing homes, making improvements to their homes because of the stability of having a job," Woodberry said.
The Regional Chamber worked with the company and said similar projects around the country have created significant, long-term growth.
"There's one company I've talked to over the months who have a location in Louisiana and that town's unemployment rate's about 3.5, 4 percent. They can't find more machinists, so I think that bodes well for the chances for the Mahoning Valley," said Eric Planey, vice president of business attraction for the Regional Chamber.
Exterran would use the plant to produce parts used in compressors and compressor stations used in the production and transportation of natural gas from shale drilling.
For facts on shale drilling and more information on the industry in the Valley, click the Shale News tab above.
