Finding an economic driver as strong as steel is straining Georgetown and other steel towns across the country.

Long dependent on steel's jobs and economic investment, the towns are praying for their plants to pull through the tough times while working to find something that could help fill the void if rumors of mill closings become reality.

"It's devastating to the whole area," said Weirton, W.Va., Mayor Bill Miller, whose town shares the name of its steel mill, which is trying to hang on like Georgetown and other plants. "It's like having part of you kind of cut off."

Weirton is turning to tourism. Bartonville, Ill., is hoping growth in stores and roads will lure more development. Both have relied on steel since their beginnings and are facing uncer-
tain futures, as is Georgetown.

"The future of Georgetown does not lie in manufacturing," said Al Parish, an economist with Charleston Southern University. "It's simply going to have to alter itself. It's doing well with tourism. It's going to have to attract retirees and the health care businesses that cater to retirees and an aging population. That does not help the steel mill worker. They would have to be retrained."

The steel industry is amid a restructuring as plants try to survive the tough times, created by increased costs and competition from overseas.

After the last week's developments, including the rejection of a proposed 10 percent pay cut by the union, negotiations with potential buyers and talk of another bankruptcy, it's unclear what will happen to Georgetown Steel, which employs nearly 500 people. It's one of the county's largest employers and highest taxpayers.

In Georgetown and other steel towns, rumor mills are running nearly as fast as the steel mills, generating talk of more layoffs or a complete shutdown - actions that have happened at other steel plants.

That's put leaders on alert to the crippling effect a potential closure could have on area businesses and government budgets.

In Weirton, "Everyone is concerned ..." said Ed Powell, president of the Weirton Area Chamber of Commerce. "In the long run, I think we will be OK. There are a lot of things people are working on that will help fill the void [if the plant closes]."

In South Carolina, officials in Gov. Mark Sanford's office said they don't know what else they can do, beyond the package of incentives rejected by the workers Wednesday, to help Georgetown Steel keep operating. Other legislators said they, too, are at a loss.

The cities' perspective

On Thursday, Weirton Steel Corp. officials said assistance from West Virginia would play an integral role in the company's plan to emerge from bankruptcy. The company has asked the state to guarantee $18 million of a $175 million loan that is essential for the steel company, officials said.

Meanwhile, the city of Weirton is trying to find money to plug a $1.4 million hole the mill's struggles have left in the town's $12 million annual budget.

City officials in Georgetown also are dealing with a deficit caused by the mill's decreasing equipment value.

They are considering cutting jobs, reducing garbage pickup to once a week and closing the Police Department at night. More-detailed talks will happen next month.

As they struggle to fill their own voids, cities also are trying to help the mills.

Like Georgetown is considering, Weirton gave the plant a deal for payment in lieu of taxes to help the mill. But Weirton Steel filed for bankruptcy in May, and the city is one of those owed money.

Although new fees are unpopular politically, Weirton city leaders are eyeing them to generate more revenue and are turning toward tourism to offer a longer-term solution. A 1994 decision allowing gaming helped the tourism offerings grow.

Gaming is booming in Weirton's county, Hancock County, and some officials are hoping to expand on that gaming growth by bringing in table games. Petitions are circulating to get the legislature to allow a local referendum on the issue.

"This has certainly become an economic linchpin for our county," said Tamara Pettit, public relations director at Mountaineer Racetrack and Gaming Resort, which is promising 400 new jobs if table gaming is allowed. "They very much need the jobs."

Weirton's payroll has dwindled to 3,500 workers, with a cut of another 935 jobs recently announced.

Some Georgetown officials, business owners and residents have also talked about the need to expand tourism, which has upset those who believe the mill is vital to the area's future because it pays higher wages than the service industry.

An entire industry strained

The financial woes and job loss at Weirton, Georgetown and Keystone Steel & Wire Co. in Bartonville symbolize the problems that have strained the industry in the past few years.

Cheaper prices for steel made overseas, combined with rising costs for scrap and natural gas, have squeezed domestic steel manufacturers, which can't make steel for the price overseas competitors are charging.

Also, manufacturing jobs worldwide are disappearing as technological advances continue to increase productivity, meaning fewer workers are needed.

Since 1998, nearly 40 steel companies have filed for bankruptcy protection.

Some have merged with bigger corporations to give them the large backing to survive. Others are trying to reorganize, relying on help from local and state governments.

The number of jobs at Mountaineer resort has more than quadrupled in the past nine years, jumping from 342 in 1994 to 1,700 now. Weirton Steel's payroll went the other way.

The city is cutting costs by nixing capital projects, not allowing overtime for city workers and scrutinizing cell phone bills.

Miller, Weirton's mayor, is hopeful that will leave the city in good financial shape through the end of this budget year, on June 30.

"After that, it is going to be very difficult," said Miller, who retired from Weirton after 43 years. "We are making contingency plans right now."

An uncertain future

Miller's counterparts in Bartonville are doing the same thing in the shadow of Keystone, the area's largest employer, with 1,500 workers.

But Bartonville Mayor Marcia Markwalder is optimistic that growth in stores and banks will keep the village of 6,300 people doing well. A welding school is expanding, she said.

With rumors of a possible merger or a plant shutdown swirling, Markwalder planned to bring up potential ways to help the mill during a coming meeting with a state senator.

"It's been a little touch-and-go," Markwalder said. "Everybody is watching their money. It is hurting."

Last week as Georgetown Steel workers weighed temporary pay cuts, County Council tried to help by approving on first reading a plan to give tax breaks to companies that invest at least $10 million in the county and hire more than 200 people.

Mill owner Daniel Thorne has said he was looking for a buyer to invest in the plant and keep it operating. But since the union's "no" vote Wednesday, Thorne hasn't publicly commented about his next move.

As steel towns look for something to replace the declining steel industry, residents and leaders are clinging to the hope that the mills won't go away.

S.C. legislators, as well as officials in Sanford's office, have tried to create financial aid packages that would help Georgetown Steel survive.

State leaders in West Virginia and Illinois have lobbied for federal help, including tariffs President Bush imposed in March 2002.

"I would never count Weirton Steel out," said Mountaineer's Pettit, who worked for Weirton Steel for eight years. "They are very resilient. But it is a very, very scary time right now."