Plant managers from 41 industrial facilities in the Baton Rouge area surveyed by the Greater Baton Rouge Industry Alliance foresee steady capital expenditures and employment forecasts over the next six months.
The survey, released late Monday, shows the current GBRIA index is 58, which is a 1-point decrease from October’s index. 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. GBRIA surveys area plant managers and compiles an index score for the region, similar to the index reported by CEOs of The Business Roundtable.
GRBIA Executive Director Connie Fabré says the index’s 15-point increase for plant production stems from recent public announcements of plant projects.
“The index has decreased from a high of 94 in the 3rd quarter of 2012, before many capital investments were made, however, now that many of those investments are in place members continue to enjoy the strong business conditions,” Fabré says in a statement.
The top issues the plant managers identified for this quarter are lower oil prices, new tax and regulation increases, and an overall slowing of the chemical industry and global economy.
Of the 41 respondents, 68% say they see no change in their plant’s production in the next six months, while 24% say they foresee an increase and only 7% predict a decrease. For the question about whether they expect a change in their company’s capital expenditures at the plant, 45% say they do not expect an increase, compared to 25% who foresee an increase and 30% who expect a decrease.
When asked about whether they expect the plant’s company employment to change in the next six months, 63% indicate they expect no change, while 32% predict an increase and 5% foresee a decrease. When asked if they expect the company’s contract employment to change in the next six months, 59% reported they do not expect a change, while 20% see an increase in contract labor and 22% see a decrease.
