Coming off the banner year that was 2013, economic development officials in the Capital Region weren’t quite sure what to expect for 2014. They needn’t have worried. Though 2014 did not see the record increases in payroll and capital investments seen the previous year, economic activity surpassed projections, according to Baton Rouge Area Chamber President Adam Knapp.
“We saw a continued high pace of economic development in the region,” Knapp says. “That was particularly true in manufacturing and software development.”
In late 2013, BRAC projected $57 million in direct payroll for 2014. Earlier this month, the region surpassed that goal, reaching $58 million. Those figures are lower than those of 2013, a year in which several major chemical plant expansions were announced, as well as the IBM Services Center project and the expansion of CBI. Those projects collectively helped push direct payroll expenditures in the Capital Region to some $112 million.
Still, Knapp is pleased with the performance of the local economy in 2014, noting that the number of non-farm jobs exceeded 399,000—another record number.
“We crossed that threshold in September and we’re expecting at any point to cross the 400,000 mark,” he says. “So we’ve really been growing at a faster pace than expected.”
For the year ahead, BRAC projects positive developments—including a job growth rate of 2.5%, which would add some 17,000 jobs to the Capital Region over the next two years. What’s more, business leaders surveyed in BRAC’s annual Economic Outlook, released in early November, indicated they are optimistic about the economy and plan to continue investments here.
“The positive, optimistic outlook is what you continue to hear from business leaders,” Knapp says. “The majority are expecting to expand and increase their investment, so you continue to see this sense of optimism in the community.” —Stephanie Riegel
