South Louisiana: Open for Business

Hurricane Katrina cost the New Orleans area more than 18,000 businesses and nearly 200,000 jobs in addition to the loss of property and life. The devastation led Forbes to rank the state dead last in their annual “Best States for Business.”

But that was two years ago. In the wake of the disaster, Congress enacted the most aggressive business incentive package in US history.

The Gulf Opportunity Zone (or GO Zone) has already reaped benefits for the region. Louisiana Pipe and Steel Fabricators announced plans to build an $80 million plant in St. James Parish, employing nearly 500 full-time. And Louisiana Economic Development has announced more than 30 projects in the past year, representing investments of $6 billion.

“We are implementing targeted economic development programs designed to communicate the state’s unprecedented economic opportunities to decision-makers, investors and workers,” says Mike Olivier, the state secretary for economic development.

The Bayou Region Economy

Located 60 miles southwest of New Orleans is Louisiana’s Bayou Region.  The area is composed of the coastal parishes of Assumption, Lafourche, St. Mary, and Terrebonne, and is defined by extensive waterways, a high-productivity workforce, and strong ties to its Cajun heritage and culture.  Located in the southern coastal area of the state, the region is tied closely to the oil and gas extraction industry and its related sectors – machinery, fabrication, shipbuilding, water-borne transportation – that feed off of extraction activities.  With new finds in the deepwater tracts of the Gulf of Mexico, the area is projected to remain on a steady economic climb well into the next decade.

Spared direct hits by the 2005 storms, the area has recalibrated its economy to achieve growth that eclipses the already strong growth that preceded the storms. In a recent report by Louisiana State University Economist, Loren Scott, the region is projected to experience some of the strongest growth on record with significant demand for housing, new hotel and retail development and even exceptionally high demand for recreational properties located right on the waterways and Gulf most affected by the 2005 storms. Jobs are plentiful and wages up throughout the region with 3,700 new jobs forecasted over the next two years.  Spurring the excellent growth are four key drivers including; a significant rebound in the oil and gas extraction sector, spurring a natural pull-up with it the fabrication sector.  The shipbuilding industry, lead by major regional companies Edison Chouest and Bollinger Shipyards, are expanding operations and the construction of a new elevated roadway to  Port Fourchon on the Gulf of Mexico will bring even more growth to the area.

Vic Lafont, Executive Director of the South Louisiana Economic Council, notes, “Our region was in a steady economic climb even before the storms.  With new incentives and increasing opportunities for expansion in our area, we are seeing growth that is exceptional even for us.”

Moving forward

Even in spite of the devastation of Katrina, South Louisiana continues to be not only one of the most resource-rich areas in America, but is recovering its position as a preferred tourist destination. Thibodaux, one of the areas anchor communities has been recently named a certified retirement community and Morgan City, positions to develop a new resort called Tigre Isle on the shores picturesque Lake Palourde.   The region is home to the Louisiana Offshore Oil Port, LOOP, an offshore terminal offloading oil from supertankers to provide 13 percent of the nation’s oil supply to feed refineries in Louisiana that are the second largest petroleum refiner in the US, providing 16.9 billion gallons of gasoline per year, as well as one-quarter of America’s petrochemicals.

Among the most notable resources the state offers is quality of life. Outdoor recreation and cultural activities like fairs and festivals attract thousands of tourists annually. The fishing industry is the second largest in America and the area is well known for its Cajun and Creole cuisines.

In spite of unparalleled circumstances and overwhelming odds, Louisiana’s Bayou Region has not started on the road to recovery, the region has outshone every expectation. And, as Governor Blanco says, “With this kind of momentum, we will continue to move Louisiana forward.”

For more information on South Louisiana, contact Executive Director of South Louisiana Economic Development Council Vic Lafont at 985.448.4485 or vic.lafont@nicholls.edu. The organization’s website can be viewed at www.bayouregion.com.