Louisiana’s current fiscal issues make economic development more challenging, but the state remains well-positioned to attract a diverse array of businesses, the state’s economic development chief says in a Q&A featured in the current quarterly issue of 10/12 Industry Report.
“It’s an important endeavor right now to right-size our budget and to make sure that education, health care and transportation infrastructure needs are met,” Louisiana Economic Development Secretary Don Pierson tells the magazine. “That backdrop makes economic development a bit more challenging in the short term, but most investments take the long view.”
A second special session of the Louisiana Legislature begins today, focused on the task of raising enough revenue so significant cuts won’t be made to TOPS, K-12 education, hospitals and other areas in the budget spanning the fiscal year beginning July 1.
Even so, Pierson says, the state’s potential for economic development remains extraordinary, thanks to its rich resources that include deep water ports, highway and rail infrastructure, natural gas and labor supply.
Global economic growth will benefit the state as it becomes a key player in moving products to developing nations, Pierson says.
He acknowledges, however, that the downturn in the oil and gas sector has impacted Louisiana, with significant workforce layoffs in Lafayette and in the Houma-Thibodeaux area. But Pierson says the silver lining lies in Louisiana’s available labor resources.
“In Lake Charles, we have $97 billion in announced projects, with $33 billion in projects under contract. Large projects also related to industrial construction are going on between Baton Rouge and New Orleans, including Shell’s major expansion and Monsanto’s billion-dollar project in Luling. The idea would be to transition some oil and gas workers into industrial construction,” Pierson says.
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