More Baton Rouge area plant managers than in the third quarter of 2016 say they expect to hold hiring levels steady over the next six months, according to the fourth quarter outlook survey conducted by the Greater Baton Rouge Industry Alliance.
“While some members comment that their plant production remains strong in the next six months, others mention that Louisiana’s new government and tax regulations will continue to negatively affect the state’s industrial competitiveness,” the report reads.
Of the 31 plant managers who participated in the survey, 84% say they plan to hold hiring steady over the next six months, up from 66% surveyed in the third quarter outlook.
Fewer managers, 16%, expect hiring to increase, compared to 26% surveyed for last quarter’s outlook.
No one anticipates a decrease in hiring, however, unlike some 9% in the prior survey.
“The most common issue plant managers cite this quarter includes increases in taxes and regulations, which will affect decisions to expand in Louisiana. Other issues include low oil prices and shortage of manpower,” the report reads.
Based on survey responses, GBRIA compiles an index score for the region in its outlook. The index ranges from negative 50 to 150, with any reading above 50 reflecting an expansion of the local economy and any reading below 50 as evidence of economic contraction.
The latest GBRIA index is 65, a one point increase from the association’s previous quarter’s index.
GBRIA represents 60 petrochemical, energy, paper, pharmaceutical, pipeline, and storage terminal and other industrial facilities located in the eight-parish Capital Region.
