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Economic Synergies across Southeast Louisiana

Economic Synergies across Southeast Louisiana. Dr. Allison Plyer, MBA, ScD. 1998 2005 2013. www.gnocdc.org 200,000 unique visits/year. www.gnocdc.org 200,000 unique visits/year.

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Economic Synergies across Southeast Louisiana

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  1. Economic Synergies across Southeast Louisiana Dr. Allison Plyer, MBA, ScD

  2. 1998 2005 2013

  3. www.gnocdc.org 200,000 unique visits/year

  4. www.gnocdc.org 200,000 unique visits/year

  5. Economic Synergies across Southeast Louisiana Dr. Allison Plyer, MBA, ScD

  6. Economic Synergies across Southeast Louisiana • THE BIG PICTURE describes the Baton Rouge, New Orleans, and Houma-Thibodaux "super region" and its challenges relative to robust regions like Houston and Atlanta…as well as opportunities. • ECONOMIC SYNERGIES examines interconnections across the 3 metros by highlighting commuter patterns, industrial specializations, and freight flows. • THE OPPORTUNITY provides a baseline analysis of Southeast Louisiana's economy relative to each of the sectors targeted by the state for growth.

  7. The Baton Rouge, New Orleans, and Houma-Thibodaux "super region” (aka Southeast Louisiana) "In a complex and globalized economy, the competitive advantage of a region lies in achieving a critical mass of local interconnected firms and institutions, which leads to increases in productivity, innovation, new business formation, and global competitiveness." - Michael Porter The Baton Rouge, New Orleans, and Houma-Thibodaux regions combined have over 1,000,000 jobs and a population of nearly 2,400,000. This Southeast Louisiana “super region” is comparable in jobs and population to the Orlando metro, larger than the San Antonio metro, and eclipses the Raleigh-Durham super region. THE BIG PICTURE Source: GNOCDC analysis of data from U.S. Bureau of Labor Statistics CES 2012 and U.S. Census Bureau population estimates 2012.

  8. Southeast Louisiana has received high rankings for its economic performance during the Great Recession. Percent change in nonfarm jobs December 2007–December 2012 THE BIG PICTURE Source: GNOCDC analysis of data from U.S. Bureau of Labor Statistics CES.

  9. Taking the longer view, we see that Houston outperformed Southeast Louisiana by developing a more diverse economic base after the oil bust. Historical job growth and loss, 1970-2011 (thousands of nonfarm jobs) Houston metro and Southeast Louisiana THE BIG PICTURE Source: GNOCDC analysis of data from Moody’s Analytics (U.S. Bureau of Labor Statistics; CES, QCEW).

  10. However, job projections for Southeast Louisiana continue to lag other Southern regional economies. Projected employment compound annual growth rates, 2010-2020 Select metros and super regions THE BIG PICTURE Source: GNOCDC analysis of data from Moody’s Analytics (U.S. Bureau of Labor Statistics; CES, QCEW).

  11. Sea level rise is rapidly increasing flood risk to essential economic infrastructure and population centers. Predicted Louisiana land loss with 1.0 to 3.3 feet relative sea level rise by 2100 THE BIG PICTURE Source: Carbonell, A. & Meffert, D.J. (2009). Climate change and the resilience of New Orleans: The adaptation of deltaic urban form. World Bank.

  12. THE BIG PICTURE • Economic diversification is nascent and sea level rise is rapid. • The state’s Blue Ocean plan for diversification will simultaneously bolster existing industries while boosting growth in emerging industries. • Southeast Louisiana is poised to receive RESTORE Act dollars which will rebuild wetlands and could accelerate plan for economic diversification. • The Southeast Louisiana Super-Region Committee is a sign of the increasing sophistication of regional leadership in Baton Rouge and New Orleans.

  13. Q: To what extent can New Orleans, Baton Rouge, and Houma-Thibodaux, working together, maximize their mutual economic sustainability? Do these metros share important economic synergies?

  14. Commutes between Southeast Louisiana metros increased 11 percent from 2004 to 2010, indicating an increasingly shared workforce. Workers commuting between metros in Southeast Louisiana Trends in number of workers commuting each ways ECONOMIC SYNERGIES Source: GNOCDC analysis of Local Employment Dynamics, U.S. Census Bureau.

  15. Ten industry specializations are currently shared across the three Southeast Louisiana metros. ECONOMIC SYNERGIES Source: GNOCDC analysis of data from Moody’s Analytics (U.S. Bureau of Labor Statistics; CES, QCEW)

  16. Drilling down into sub-sectors of industry specializations, we see the three metros are highly complementary to each other in their economic roles. ECONOMIC SYNERGIES Source: GNOCDC analysis of data from Moody’s Analytics (U.S. Bureau of Labor Statistics; CES, QCEW)

  17. Value of freight shipped between Baton Rouge and New Orleans is greater than to any other region. Value of freight flows (in millions of dollars) between New Orleans and Baton Rouge by mode, 2007 ECONOMIC SYNERGIES Source: GNOCDC analysis of data from U.S. Bureau of Transportation Statistics, Freight Analysis Framework.

  18. Freight flows data reveal that oil and gas and resulting products are primary shipments between the two metros. Value of freight flows (in millions of dollars) between New Orleans and Baton Rouge by commodity, 2007 ECONOMIC SYNERGIES Source: GNOCDC analysis of data from U.S. Bureau of Transportation Statistics, Freight Analysis Framework.

  19. ECONOMIC SYNERGIES • All three metros are highly dependent on oil and gas (and resulting products) which drives major interconnections as well. • Oil and gas, construction, shipping, ship building, waste management, food manufacturing, higher education, and insurance agency sub-specialties are highly complementary across metros. • At the heart of Southeast Louisiana’s economy is sophisticated engineering and scientific consulting.

  20. THE OPPORTUNITY • In 2010, LED developed a plan that aspires for Louisiana to achieve job growth rates similar to states such as Texas and Georgia. • The “Blue Ocean Initiative” targets the best growth opportunities: • Emerging industries of high growth in which Louisiana has a clear advantage • Legacy industries of moderate/low growth where Louisiana has a clear advantage and acceleration is possible THE OPPORTUNITY

  21. These 3 metros represent 55 percent of the state’s jobs and 53 percent of the state’s population. Source: GNOCDC analysis of 2011 U.S. Bureau of Labor Statistics QCEW and 2012 U.S. Census Bureau population estimates. THE OPPORTUNITY

  22. Regional economic development organizations are aligned with state in targeting six broad industry sectors. THE OPPORTUNITY Sources: Louisiana Economic Development, Greater New Orleans, Inc., New Orleans Business Alliance, Baton Rouge Area Chamber, and South Louisiana Economic Council.

  23. Advanced Manufacturing:Why is it important? Number of Jobs: 32,800 Location Quotient: 0.6 Average Pay: $63,990 • Many sub-sectors are specializations in the 3 metros: ship building, machinery manufacturing, metal manufacturing, and plastics products manufacturing. • Creates quality jobs, fuels exports, and drives innovation. • Poised to grow due to low natural gas prices and abundant supply. (e.g. Lockheed Martin) THE OPPORTUNITY Photo Credits: LED.

  24. Advanced Manufacturing:What are the challenges? Number of Jobs: 32,800 Location Quotient: 0.6 Average Pay: $63,990 • Supplying the high-skilled workforce, including software programmers, engineers, process operators, and welders. • The recent downsizing of higher education. THE OPPORTUNITY Photo Credits: LED.

  25. THE OPPORTUNITY

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