WEST VIRGINIA manufacturers have benefited greatly from IOF. We're talking about the U.S. Department of Energy's Industries of the Future Program, which was conceived under the administration of President George H.W. Bush, took root under President Clinton, and has really bloomed under President George W. Bush.

Under this program, through competitive grants, co-funded by industry, organized in partnerships between government, industry and university researchers, the cost of energy in our basic industries has been reduced by $15 billion nationally, and that improvement continues every year. IOF is a tool that the manufacturing industry cannot afford to lose.

But there is now a proposal in Congress reducing the budget for IOF. There are ongoing programs in more than 33 states that have established state-level programs. The program is just now hitting its stride and if the funding that facilitates the industry, university and government partnerships is removed, these projects will be at the least disrupted and possibly dismantled.

By any criteria, it is not a good time to jeopardize a program that produces billion-dollar results on million-dollar budgets. The best resolution would be to restore the IOF budget to its 2002 level, or at the least leave it at the budget level for fiscal year 2003.

In 1997, West Virginia was the first state that put together a state-level program. In the words of two successive West Virginia governors, "This is a program that works."

In West Virginia, co-directors for IOF-WV are John Herholdt, the West Virginia Development Office's energy efficiency manager, and Carl Irwin of West Virginia University. Through their efforts in partnership with West Virginia's basic industries and the Department of Energy, the energy cost reduction in West Virginia is nearing $1 billion. Here's an example:

Weirtec, the research and development arm of Weirton Steel, had 70 researchers at work five years ago. Today, it has four. This depletion of industry researchers is being replicated nationwide in all basic industries, as is the growing cost of energy. As Weirton Steel struggled to survive, it turned to IOF-WV for research help.

The thrust of the IOF-WV program is to secure seed-money grants to reduce energy costs through new technology and new energy-efficient processes that are environmentally friendly. One of many IOF-WV and Weirton Steel partnership projects was to assess the benefits of utilities automation. The project was a success, reducing steel production costs by $8 a ton, which on 2.3 million tons a year, amounts to $18 million annually.

Weirton Steel is now the lead partner in another IOF-WV project that is far more significant - new pot hardware that will reduce line downtime and save Weirton close to $50 million annually in lost production time and energy costs. Practically the entire national steel industry making galvanized products has joined in the partnership and the impact nationwide will amount to hundreds of millions a year. The industry has provided co-funding on this nearly $3 million research project, and if the federal IOF budget is reduced, the project is in danger of losing momentum in this economically troubled industry.

Let's look at a few other examples, the Bayer Chemicals plant in New Martinsville. An IOF-WV plantwide energy assessment project turned up potential energy savings of $1.4 million annually. The cost of realizing these savings can be recovered in less than a year and Bayer is in the midst of implementing the necessary changes as fast as its budget allows.

Century Aluminum of America at Ravenswood is in the midst of another IOF-WV partnership project dealing with smelting operations, which also effects the glass industry. The targeted energy savings for Century Aluminum is $15 million a year. For the U.S. aluminum industry nationwide, there are potential savings of 500 million kilowatt hours per year and the project is adaptable to any existing smelting operations. Like other IOF-WV projects, it is co-funded by participating industry members, but without continued support of the national IOF program, progress might be disrupted or really strung out. The proposed budget cut makes the prognosis gloomy.

DynaTech Adhesives is another ongoing project that could be in peril. It involves polymers in pressure sensitive adhesives, such as those on postage stamps. The adhesives currently being used are most efficiently produced using solvents that harm the environment. This project will produce a more environmentally friendly, energy efficient, water-based adhesive.

To date, it has received $1.4 million in federal research funds, with co-funding in the amount of $1.3 million. Progress has been significant and the program is nearing completion - but could be derailed if the proposed IOF budget is cut.

As West Virginia struggles to maintain a vibrant manufacturing industry providing good paying jobs and benefits, we need Industries of the Future to help us become more competitive in the global marketplace.

Price is president of the West Virginia Manufacturers Association.