The Fertilizer Institute, a nonprofit advocacy group, has released a study that ranks Louisiana first among states with ammonia plants in terms of economic contributions. The study, conducted by Charles River Associates International, found that the Louisiana fertilizer industry directly employs more than 1,100 people who produced fertilizers valued at almost $1.3 billion. Moreover, the industry’s compensation per employee was considerably higher than the Louisiana average, at $108,535 per employee versus a statewide average of $37,112 across all industries.
These higher salaries, wages, benefits and other forms of compensation were a result of a very high output per employee ratio. The fertilizer industry in Louisiana generates over $1.1 million in output per worker, which is almost seven times the state average across industries.
The significant economic contributions of the fertilizer manufacturing industry in Louisiana are primarily the result of the productivity of the ammonia plants within the state. In 2006, the state had the greatest ammonia plant capacity in the country, representing 24% of the U.S. total. The report also states that the total economic contributions to the state of Louisiana, including additional contributions such as impacts on suppliers and spending by employees, were $2.4 billion and over 7,300 jobs.—Jeremy Alford
