The Business Report's Top 100 Private Luncheon was held
earlier this week and we heard good things about the future of
Baton Rouge. Jim Richardson and Loren Scott think the Greater Baton
Rouge Area will see an increase in jobs over the next two (2)
years. Despite the troubling economic news we are bombarded with
everyday, it appears good things are ahead for the City of Baton
Rouge and the Greater Baton Rouge Area as a whole.
Article submitted by Justin Langlois with Mike Falgoust & Associates Commercial
Real Estate.
By Ian McGibboney
BusinessReport.com
Despite bleak news for the economy both nationally and
statewide, the Baton Rouge area holds some good data, LSU economist
Loren Scott says. "We have a very positive future," Scott told
those at Business Report's Top 100 Private Companies
Luncheon this afternoon at the Crowne Plaza. Scott presented the
2012-13 "Louisiana Economic Outlook" report, which he co-authored
with LSU economics professor Jim Richardson. According to the
report, the Baton Rouge Metropolitan Statistical Area is expected
to see a net growth of 4,400 (1.2%) jobs in 2012 and 3,300 (0.9%)
in 2013. Though relatively flat, it's better than the state
overall, which the economists expect will see a 0.8% growth rate
for each of the next two years. The Baton Rouge MSA comprises a
nine-parish area including East Baton Rouge, West Baton Rouge,
Livingston, Ascension, Iberville, St. Helena, Pointe Coupee, East
Feliciana and West Feliciana parishes. The report estimates there
are 363,400 non-farm jobs in the area, second only to New Orleans.
Of the state's eight MSAs, Scott says, the Baton Rouge area was
"the second-least hit by the recession." The report says strong
activity in the petrochemical industry has created significant
construction projects, particularly an increase in "turnarounds" at
chemical plants. He notes several plant expansions are ahead in
Baton Rouge, including Westlake Chemicals, Georgia Pacific,
Honeywell and Formosa Plastics. Scott credits the success of the
chemical industry to numerous factors, including the uptick in
natural gas use. "We use it a lot," he says. "The price of natural
gas has come down a lot … and there are shale plays all over the
place." He cites the promise of the Tuscaloosa Marine Shale, which
cuts a wide swath across central Louisiana and could one day prove
to be as lucrative as the Haynesville Shale in northwest Louisiana.
"Fracking could totally change our oil picture in the country,"
Scott says. However, he also notes the offshore drilling moratorium
and the recession have hurt the state. Additionally, state
government cutbacks led to layoffs of about 1,300 workers this
year. Scott says state employment is a source of concern, given
that uncertainty over Medicaid funds "is a really tricky thing for
us. We're worried about it." Nonetheless, Scott forecasts the area
will weather its challenges. "If you're to be located in a place,
this is one of the best places to be located," he says.