Ready or not, 2016 is here, and change is on the horizon for many economic sectors as new leadership prepares to move into the governor’s mansion.
An altered political course; sustained, historically low oil prices; the low cost of natural gas; the rise in data and security breaches in 2015—all of these factors and more will impact the business community differently starting in the first quarter of the new year.
Business Report recently checked in with decision-makers in eight key sectors of the economy: health care, industry, energy, real estate, exports, banking, retail and technology. In a feature from the current issue, they share their first-quarter outlook for both emerging and lingering issues and trends that will drive Baton Rouge as companies look ahead to what they hope will be a record-setting year for business this year.
“After unprecedented capital growth through petrochemical manufacturing sector due to the low cost of natural gas, the Capital Region will experience some slowing but continued investment,” says Tom Yura, senior vice president and general manager at BASF in Geismar. “The area will remain in the midst of an industrial construction boom that will carry through the next few years as announced projects are completed.”
As for oil, Yura says, “the current situation is expected to continue for some time with supply exceeding demand and leading to soft market conditions.”
On the health care front, Capital Area Medical Society President Carol Patin predicts the outlook in the Baton Rouge area will be improved this year for several reasons.
“With the change in state leadership, new ideas will be vetted,” she says. “The proposed assurances of the new governor promise an improved ‘listening ear’ that was absent with the last administration.”
Baton Rouge real estate, both residential and commercial, had a benchmark year in 2015. Justin Langlois, a partner and commercial real estate adviser at Sperry Van Ness | Graham, Langlois & Legendre Commercial Real Estate Advisors, says the sector should remain strong this year.
“Job reports have been positive and have led to a strong appetite for new and existing home sales as well as multifamily rentals. The residential real estate market will continue to see positive growth,” he says. The Federal Reserve’s recent decision to raise the interest rate, Langlois says, “will spur activity from buyers looking to take advantage of a lower interest rate in Q1 of 2016.”
Read the full feature for the complete predictions of all of the professionals, which also include William Clouatre, vice president of corporate business development at Cajun Industries; Devin Zito, president of Teknarus; Robert Taylor, CEO of the Louisiana Bankers Association; Dawn Johnson, executive director of the Louisiana Retailers Association; and Brittany Banta, acting director at the New Orleans U.S. Export Assistance Center.
Send your comments to editors@businessreport.com.
