Louisiana is on a rural roll. Three major economic development projects announced in late 2006 in rural parishes as industrial eyes turn back to the Bayou state.

By Jennifer LeClaire

Louisiana is widely known as an urban state, and one that has attracted a diverse array of industrial interests. But rural Louisiana will not be undersold.

These lesser-known regions of the Bayou state are gaining tremendous momentum thanks to their natural assets, available labor force – and a little help from economic developers who are committed to rural revitalization. Indeed, Governor Kathleen Babineaux Blanco’s commitment to helping Louisiana’s rural regions rebuild after Hurricane Katrina is paying off on all fronts.

In November, Franke Beverage Containers said it would relocate to Ruston. Just weeks later, one of the world’s largest manufacturer of windows and doors announced it would build a plant in Winn Parish to build its door facings. Then, to top it all off, Cameron Parish announced a new, $22 million hospital. Louisiana is clearly on a rural roll.

Expanding in Winn Parish

Jeld-Wen is the largest of the trio of wins. The company announced it would build in Winn Parish last November. It expects to hire 75 people to run the $85 million plant it’s building there. Annual wages will average $33,000 for a total payroll of $2.5 million, a significant revenue stream for a small town of 16,000. Construction on the new facility is slated to begin in early 2007.

“Jeld-Wen’s investment demonstrates the viability of Louisiana’s forest products, infrastructure and workforce,” says Governor Blanco. “Jeld-Wen is making a major investment in rural Louisiana and adding value to the Louisiana timber harvest. We’re very pleased that the company has chosen Louisiana for its next stage of growth.”

Like most companies seeking a new home, Jeld-Wen considered multiple locations before making its final selection of Winn Parish, which is home to Louisiana Technical College. Jeld-Wen was also considering green field sites for new construction in Central Louisiana and Mississippi or an expansion at an existing facility in West Virginia.

Governor Blanco and her team at Louisiana Economic Development (LED) worked aggressively to communicate the benefits of Central Louisiana to the company. In fact, Blanco and LED began the Jeld-Wen campaign in 2004 and are still working with the company to develop the project. The governor “closed the deal” by stressing the key advantages of investing in rural Louisiana.

Louisiana officials convinced Jeld-Wen’s corporate site selectors that Central Louisiana was the home for them by touting its competitive utility rates offered by rural cooperatives. Louisiana officials also communicated its strategic location to serve the growing Sunbelt housing market.

The work ethic of the Louisiana people was also a prime benefit Louisiana officials used to woo Jeld-Wen to its parts. Louisiana workers are first in productivity measured by value of shipments per production worker, according to the Bureau of Census in the 2002 Annual Survey of Manufacturers, and fourth most productive in the U.S. in value added per production worker. A right-to-work state, Louisiana has the least number of hours lost due to work stoppage.

Finally, Louisiana officials made it clear that the state’s wood chip suppliers were capable of providing the raw material specifications and tonnages needed to accommodate its door facing production needs. Rural Louisiana is a treasure trove of natural resources, and Jeld-Wen is one of the latest companies to leverage these resources to grow its business.

With its $2.2 billion in annual sales, Jeld-Wen was a major win for rural Louisiana and continues the momentum of recent months. Swiss-based Franke Beverage Containers also selected rural Louisiana in November 2006, less than two weeks before Jeld-Wen’s announcement. Frank Beverage Containers plans to relocate its manufacturing equipment to Ruston, where Franke already produces kitchen sinks. The new keg production will be put into operation during the second quarter of 2007.

Ruston is in Lincoln Parish, home to Louisiana Tech and Grambling State University. Lincoln Parish is no stranger to the industrial front, with Weyerhaeuser Company operating numerous manufacturing facilities in the region. St. Gobain Containers, Hogan Hardwoods and Moulding also call Lincoln Parish home.

In Cameron Parish lies yet another November 2006 rural success story. Governor Blanco, the Louisiana Recovery Authority, and Cameron Parish announced a $22 million new state-of-the-art facility to replace South Cameron Memorial Hospital. Hurricane Rita destroyed the parish’s only full-service hospital in 2005.

"Construction of this new facility is absolutely critical to ensuring Cameron's long-term recovery and future growth," says Governor Blanco. "This is yet another symbol of the tremendous progress we're making across South Louisiana and proof that the intense winds and raging floodwaters from last year's storm are giving way to safer homes, stronger schools and hospitals and smarter communities."

Once completed, this new state-of-the art facility will include a full emergency room, 25 inpatient beds and rural health clinic, which includes a dental program. The hospital will also house a retail pharmacy and other ancillary services. The hospital will be constructed in two phases. Phase I will include the emergency department and eight inpatient beds. Phase II includes 17 inpatient beds and the other ancillary services. The contractor currently predicts that substantial completion of Phase I will be accomplished by mid-2007.

"This new facility will provide emergency care services for thousands of residents and offshore workers in lower Cameron," says Cameron Parish Assistant District Attorney Jennifer Jones. "This will serve as a critical access point during the 'golden hour' drive between Cameron and Lake Charles, which could mean the difference between life and death for many patients."

Rural Louisiana is clearly on a roll. And with Louisiana officials dedicated to revitalizing rural, as well as urban, regions of the state, this is likely just the beginning for the state’s 64 parishes.