The Western Challenge

[Mr. Brown did not make his speech available for reprint.] Productivity is the Answer - Always Was; Always Will Be When Bill Balaz invited me to speak here this morning, he asked me to examine the three most important issues Consol will face over the coming decade. There are more than three. But the more I thought about that question, the more I realized all our issues come down to only one. As I reviewed the U.S. coal industry over the past ten years, and as I thought ahead into the year2000, one thing stood out. Not markets. Not government regulations. Not record tonnages. But productivity. The recent history of American coal is a tale of productivity improvement. It is a story that needs telling. And understanding. Not just for the good of the coal industry, but for the benefit of the American economy. Americans today do not appreciate the value of productivity growth. I don't say that lightly. As I review recent debate over American industrial competitiveness, as I look at certain legislative proposals, I see disturbing trends. It's not that anyone is against productivity per se. But many people seem to fear the very processes that enhance productivity. Twentieth century America enjoyed unprecedented growth in productivity. And in personal standards- of-living. Those two go together. This century has been one of change. Demographics. Education. And technology. Many new industries-cable television, computer services, telecommunications, for example-have grown from mere dreams to billion- dollar enterprises employing tens-of-thousands. And some older industries have declined. The nature of work has changed-from manual work to know- ledge work. From agriculture, to manufacturing, to services. In the mid-1960s. AT&T employed more than one million people. These were not high-paying jobs: telephone operators, linemen and equipment assemblers. Today, the successor Bell companies and their new competitors employ no more than a few hundred thousand. Because of automation. Because of enormous gains in employee productivity.