News Alert: Capital Region businesses more optimistic for 2010

A survey of nearly 500 local leaders shows that Capital Region businesses are more optimistic about 2010 than they were about this year and they have an even brighter outlook for 2012. According to the Baton Rouge Area Economic Outlook Survey, done in cooperation between the Baton Rouge Area Chamber and the Business Report, 75% of businesses expect revenue to increase in 2010, compared with 65% in 2009. And 85% expect revenue to increase in 2012 and beyond. Similar optimism is seen for employment growth and capital expenditures. “There's a positive sense that stability has been here and we've seen the worst of the worst effects of the national recession," says Adam Knapp, BRAC president and CEO. "We've had a stronger than expected 2009 and 2010 looks better." Projections are that the Capital Region will see employment grow by 1% to 2% in 2010, a gain of 3,000 to 6,300 jobs. The biggest employment gains are expected in the health care, petrochemical and information sectors. Despite slight job losses in the third quarter, Knapp says Baton Rouge has seen the number of jobs increase by about 4,000 this year, with much of the gains coming in business and professional services, health care, state government, education and construction.

Other findings of the survey and BRAC analysis:

-- Workforce issues continue to be the major concern for businesses, but the numbers are down slightly. Thirty-seven percent of companies surveyed say finding workers is a major issue, compared with 45% in 2009. Knapp says the slowdown in local employment growth and rising unemployment has reduced the pressure to find workers.

-- The number of companies who expressed concern about real estate, utility and material costs dropped sharply.

To download a PowerPoint of the survey results, click here.—Timothy Boone