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Changing Perceptions and Bucking INAUGURAL ISSUE Q1-Q3 2008 LOUISIANA ECONOMIC QUARTERLY EA SpoRtS: FoRtUNE 1000 HQ LoUISIANA’S It’S IN LoUISIANA RELocAtIoN NUcLEAR RENAISSANcE inside 13 Economic Update Secretary The State Of Louisiana’s Economy 4 Around the Regions What’s Happening With 10 Haynesville Shale And Federal City Moret Momentum Louisiana 13 Companies That 12 Said ‘Yes’ To Louisiana Small Business Spotlight Loads Of Opportunity For 20 am thrilled to share with you the inaugural This issue also includes a variety of stories Southern Textile Services issue of Louisiana Economic Quarterly – a describing some of the most consequential Louisiana community Network new publication designed to provide economic developments in Louisiana today, Tools For Success 22 insights about Louisiana’s economy, as well including the Haynesville Shale in North 24 as economic development efforts being Louisiana, the Federal City project in New Industry outlook undertaken to enhance it. Orleans, an exciting small business success Taking Digital Arts 24 story in Alexandria, and the emerging digital To The Next Level 20 In this and subsequent issues, we will detail media industry that is starting to form in Baton major economic developments in Louisiana, Rouge, Lafayette, New Orleans and Shreveport/ on the cover including economic trends, major business Bossier. We also include a thought-provoking Changing Perceptions And 26 19 investments, small business success stories, interview with Jim Clinton, a national economic Bucking National Trends the evolution of traditional and emerging development leader who just came back to industry sectors, and state and local economic Alexandria to make a difference. How planning development initiatives. We also will highlight Softened the Blow 36 economic development champions in our state Please send us your thoughts and feedback at Louisiana Resilient After who work hard every day to create a brighter [email protected]. In the meantime, thank you Back-to-back Hurricanes economic future for their communities. for your interest in the great state of Louisiana. EQ&A In this issue, our cover story outlines an Best regards, Interview With Jim Clinton Of 38 Cenla Advantage Partnership economic renaissance that is beginning in Louisiana. Not only is Louisiana’s economy Advantage Louisiana outperforming that of the nation, but also the Baton Rouge Becomes 40 state is taking deliberate steps to reposition Regional Hub For Coca-Cola itself as the next great American state for business investment and economic opportunity. Stephen Moret, Secretary EQ, Louisiana Economic Quarterly, is published four Louisiana Department of Economic Development times a year by Louisiana Economic Development (LED), P.O. Box 94185, Baton Rouge, LA 70804. Please contact us at 225.342.3000 or LouisianaEQ@ la.gov. © 2009 Louisiana Economic Development 18 3 LOUISIANA ECONOMIC QUARTERLY OVER THE LAST 12 MONTHS, LOUISIANA’S EMPLOYMENT LEVELS HAVE HELD UP BETTER THAN THE REST OF THE U.S. UNItED StAtES SoUtHERN StAtES Seasonally adjusted employment LoUISIANA (100 = November 2007) UPDATE 102 100 Louisiana has outperformed expectations despite the national economic downturn, 98 turbulent financial markets and the impact Nov Dec Jan Feb Mar Apr May Jun July Aug Sep oct 2007 2008 of two significant hurricanes. Source: United States Bureau of Labor Statistics; LED analysis The state’s economy was buttressed by high oil and gas prices, expansions in its energy and chemical sectors, continued hurricane recovery spending from the Statewide employment Over the recently ended quarter, most major industry up versus prior year sectors lost employment. The largest over-the-quarter 2005 storms, and a housing market that has so far defied the general malaise losses occurred in leisure & hospitality (-6,100 jobs), Louisiana’s nonfarm employment stood at about 1,939,000 at professional & business services (-1,900 jobs) and experienced in many regions across the nation. Moreover, Louisiana claimed the end of the third quarter, representing a decrease of about manufacturing (-1,400 jobs). The education & health 11,700 jobs over the quarter but a net gain of about 5,700 services and natural resources and mining sectors jobs (0.3 percent) since the third quarter of 2007, with most experienced the largest gains, albeit somewhat modest ones a number of significant corporate announcements that committed billions of industry sectors recording job gains over the year. Compared (900 and 600 jobs, respectively). to the same quarter a year ago, the largest absolute gains in dollars of investment and helped set the stage for future growth. However, the private-sector jobs were in education & health services, which added about 3,300 jobs (1.3 percent), followed by increases of about 2,300 jobs (1.7 percent) third quarter figures potentially signal that the state’s economic growth may slow in construction, 1,800 jobs (0.9 percent) in leisure & hospitality, and 800 jobs (0.2 percent) Louisiana’s economy or decline over the next several months, especially in light of deteriorating national in trade, transportation & utilities. The biggest over-the-year loss occurred in manufacturing, continues to grow ... despite the economic conditions. with a 2,900-job decline (-1.8 percent). This softening national economy. was followed by declines in government, which fell by about 400 jobs (-0.1 percent), and relatively minor job losses in other services. LOUISIANA ECONOMIC QUARTERLY 4 5 LOUISIANA ECONOMIC QUARTERLY LOUISIANA’S UNEMPLOYMENT RATE HAS REMAINED STEADILY BELOW THE NATIONAL AND SOUTHERN TRENDS OVER THE PAST YEAR Total employment in the Northwest UNItED StAtES Region (Shreveport-Bossier City MSA) Retail trade and the education and SoUtHERN StAtES ended the third quarter at 182,300, health services sectors experienced LoUISIANA representing an over-the-quarter loss Unemployment Rate of 800 jobs (-0.4 percent) but a gain strong gains in the Northwest. of about 1,900 jobs (1.1 percent) over 7.0 the past year. Retail trade, education & health services and government experienced strong gains over the past year with 900 Total employment in the Central Region (Alexandria MSA) 6.0 jobs each (4.2 percent, 3.5 percent and 2.5 percent ended the latest quarter at about 65,000, with a net loss of respectively). The region’s construction sector gained 500 600 jobs (-0.9 percent) over the year and a loss of 100 jobs jobs (5.6 percent) since the third quarter a year ago. Job (-0.2 percent) over the quarter. The region experienced an 5.0 losses were concentrated in leisure & hospitality, which annual net gain of 100 jobs (1.0 percent) across the goods- lost 700 jobs (-3.1 percent), and manufacturing, which lost producing sectors (e.g., manufacturing, construction) but 600 jobs (-4.3 percent). suffered modest losses in services employment, including 200 jobs (-1.7 percent) in trade, transportation & utilities. 4.0 The Acadiana Region (Lafayette MSA) ended the quarter with a total employment count of about 151,900, Employment levels in the Bayou Region (Houma-Thibodaux representing a gain of about 1,700 jobs (1.1 percent) over MSA) stood at approximately 94,800 at the end of the 3.0 the year but a loss of 500 jobs (-0.3 percent) over the quarter, representing a loss of 1,100 jobs (-1.1 percent) Nov Dec Jan Feb Mar Apr May Jun July Aug Sep oct quarter. The largest absolute gains over the year were in over the year and 2,700 jobs (-2.8 percent) over the quarter. 2007 2008 natural resources & mining, which grew by 700 jobs (4.3 Driven in large part by the impact of hurricanes percent) primarily due to a strong Source: United States Bureau of Labor Statistics; LED analysis oil & gas market, and education & health services, which grew by 600 jobs (2.9 percent). The region’s net job losses over the year were 1. BAYOU concentrated in the government 7 2. SOUTHEAST New Orleans MSA) ended the quarter at about 525,900, losing sector, which lost 600 jobs (-3.4 3. CAPITAL Regional employment trends are mixed approximately 3,200 jobs (-0.6 percent) over the quarter but percent). 8 4. ACADIANA gaining about 8,400 jobs (1.6 percent) above the third quarter 5. SOUTHWEST Looking at growth over the year through the third quarter, of 2007. Over the past year, leisure & hospitality, construction, Employment for the Southwest only three of Louisiana’s eight regions – Southeast, Northwest and education & health services experienced particularly Region (Lake Charles MSA) totaled 6. CENTRAL and Acadiana – experienced employment gains. Of the areas strong gains of about 3,400 jobs (5.1 percent), 1,700 jobs about 92,400 jobs at the end of the 7. NORTHEAST showing a decline in employment over the year, the Bayou and (5.2 percent) and 1,500 jobs (2.3 percent) respectively. Most third quarter. The region had a net 8. NORTHWEST Northeast regions experienced the greatest absolute losses other industries experienced steady growth, with the exception employment loss of only about 100 (about 1,100 jobs each), with the Central, Capital and Southwest of relatively modest declines in the financial activities and jobs (-0.1 percent) over the year, 6 regions ending the third quarter with job counts down slightly government sectors. with a net loss of 1,100 jobs (-1.2 from a year ago. percent) over the past quarter. The Capital Region (Baton Rouge MSA) lost about 200 jobs (-0.1 Employment losses occurred in Employment in the Southeast Region (based on data for the percent) over the third quarter to finish at about 373,400 and manufacturing (-6.5 percent) and 3 was down by about 300 jobs (-0.1 percent) professional & business services over the year. The largest absolute gains (-1.3 percent). Over the year, 2 over the year were recorded in education & the region’s largest employment 5 4 health services and trade, transportation & increases were concentrated in Acadiana, Northwest and utilities (700 jobs each) and construction trade, transportation & utilities, (400 jobs), while regional job losses were which grew by 1,100 jobs (6.2 Southeast regions experienced concentrated in professional & business percent), with more modest services (-1,400 jobs) and government gains in other sectors such as 1 employment gains.
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