Louisiana and Greater New Orleans Economic Update April, 2019
Louisiana Louisiana is a rich state with a poor structure; it needs to reform to reach its potential. 2
Louisiana Strengths 3
Economic Development Louisiana continuously ranks near the top for doing business. 4
The Shale Revolution Billions are being invested in northern Louisiana natural gas plays. 5
The Shale Revolution Driving over $170B of industrial projects, primarily in south LA. 6
#1 per Capita Foreign Direct Investment Louisiana has become a major destination for global investment. 7
Tech Diversification Louisiana is #5 in the country for software employment growth. 8 Source: Software.org, BSA Foundation
Low Business Cost Louisiana has the lowest overall business cost in the country. 9 Source: KPMG Competitive Alternatives
Workforce Louisiana has the #1 ranked Workforce training program, and the #2 “Most Engaged” workforce in America. 10
Millennial Influx Louisiana is a top state in the U.S. for new millennials. STATES WITH THE HIGHEST PERCENTAGE OF NEW MILLENNIAL RESIDENTS 11 Source: U.S. Census Bureau, Porch.com
Louisiana Challenges 12
Economy In 2012, the state’s GDP has decreased by 8% from 2010 – 2017. Real Total Gross Domestic Product for Louisiana (2012 dollars) $226.6B 13 Source: U.S. Bureau of Economic Analysis, Real Total Gross Domestic Product for Louisiana, retrieved from FRED, Federal Reserve Bank of St. Louis
Jobs After experiencing significant job growth in the aftermath of the Great Recession, Louisiana has lost jobs since 2015. Louisiana Total Nonfarm Employees 1,971,000 14 Source: U.S. Bureau of Labor Statistics, All Employees: Total Nonfarm in Louisiana, Annual, Not Seasonally Adjusted, retrieved from FRED, Federal Reserve Bank of St. Louis
Unemployment Having decreased significantly since the great recession, Louisiana’s unemployment is still higher than the national average. Louisiana Unemployment Rate 11.3% 4.9% 15 Source: U.S. Bureau of Labor Statistics, Unemployment Rate in Louisiana, retrieved from FRED, Federal Reserve Bank of St. Louis
Tax Structure Louisiana’s tax climate is increasingly seen as unfriendly to business. 16 Source: Tax Foundation
Tax Structure Louisiana is #1 in the USA for increases in taxes on business. 17 Source: LABI
Insurance Louisiana’s has the highest auto insurance rates in the country, which impacts both businesses and individuals. 18
Lack of Headquarters Louisiana has only two Fortune 500 headquarters. 19
State Structure Louisiana is a rich state with a poor structure. Does the political will exist to change it? Ex: Personal Income Tax Ex: Constitution 20
Quality of Life While Louisiana has an unmatched culture, the state ranks near the bottom of some lists of “the best states to live in.” 10. New Mexico 9. (tie) Mississippi 9. (tie) South Carolina 7. Oklahoma 6. Missouri 5. Indiana 4. Tennessee 3. Alabama 2. Louisiana 1. Arkansas 21
Louisiana Challenges Summary 22
Greater New Orleans Greater New Orleans is doing better than in decades, but must rebuild drainage system. 23
Greater New Orleans Strengths 24
Economic Diversification After decades as a “two - trick” pony, the New Orleans region is diversifying. For Immediate Release January 24, 2019 Port NOLA Sets Container Record in 2018 25
Tech Growth New Orleans is the fastest growing tech city in the country, and is Top Five for women and minorities in technology jobs. 26
Third-Party Validation Entities from around the country are taking notice of tech growth in the region. New Orleans: Silicon Valley of the South? “Rising Tech Hub” Tech Market to Watch Top 10 in USA for African Americans and Women in Tech 27
Technology DXC Technology is the biggest economic development jobs win in Louisiana history.
Technology Amazon continues to expand in Greater New Orleans.
Trade Avondale is back on-line after nearly a decade.
Energy & Petrochemical GNO has had nearly $20B of announcements over three years. F o r m o s a S e l e c t s S t . J a m e s P a r i s h f o r $ 9 . 4 B L o u i s i a n a P r o j e c t
Advanced Manufacturing Michoud is a public and private-sector leader world-leader. “Technology Center Of The Americas” Will Produce and Test The Largest Offshore Blades in The World
More Diversification The New Orleans Music Economy Initiative will take back the mantle of “Music City” from Nashville. Building the “Business of Music” in Greater New Orleans
Higher Education Home to over 71,000 students, Greater New Orleans is uniquely positioned for higher education and industry based partnerships.
Air Connectivity Over the past decade, the New Orleans International Airport is the 3 rd fastest growing in the country.
Tourism Over the past decade, the New Orleans International Airport is the 3 rd fastest growing in the country.
Downtown Development Over $1B of hotels, and nearly 1,000 apartments are under construction in the Central Business District
Demographics New Orleans is San Francisco, at half the cost, with better food, and nicer people.
Cost of Living At the national average, Louisiana is significantly cheaper in terms of cost of living when compared to other metros. Cost of Living 248.5 250 It would take over $600,000 in Manhattan to equal a 196.3 200 $250,000 salary in New Orleans 162.6 150 National Average 105.4 101.8 100.7 99.2 98.4 100 50 0 Austin Nashville New Orleans Atlanta Dallas Washington San Francisco Manhattan D.C. Source: C2ER 2018 Annual Average. Cost of Living includes: Grocery items, Housing, Utilities, Transportation, Health Care, and Misc. Goods and Services
Education Reform Since Hurricane Katrina, New Orleans has experienced significant education reform. Percent of Orleans Parish Percent of Orleans Parish Students Graduating in 4-years Graduates Enrolling in College 80% 70% 73% 61% 70% 60% 60% 54% 50% 50% 37% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2004 2017 2004 2017 Source: Washington Post 40
Crime The crime situation is slowly but steadily improving.
Quality of Life In an increasingly homogeneous world, the unique quality of life in New Orleans is a real competitive advantage. 42
Third Party Validation 43
Third Party Validation 44
Greater New Orleans Challenges 45
Employment Growth After outpacing the national employment growth rate over the past decade, the metro area has trailed the national growth rate recently. % Growth in Total Nonfarm Employees Source: U.S. Bureau of Labor Statistics, All Employees: Total Nonfarm in New Orleans-Metairie, LA, retrieved from FRED, Federal Reserve Bank of St. Louis 46
White Collar Jobs While the regional population is 96% of its pre-Katrina level, white collar jobs are only 87%, a deficit of nearly 33,000 jobs. Pop. Pop. 1,338,000 1,278,000 (New Orleans Metro) • As of 2016, white collar jobs Jobs represented only 250,000 39% of the regional labor force, compared to 42% Jobs 218,000 nationally • We need more white collar jobs to retain the post-Katrina “brain gain” Source: Bureau of Labor Statistics, May 2016; US Census 47
Wages Wages are rising, but a persistent gap exists with the US average – and wages in GNO are rising slower than the cost of living. (New Orleans Metro) AVG. NOLA As of 2016, wages in New Orleans were $6,000 below the national average Note: Wages are not adjusted for inflation 48 Source: Bureau of Labor Statistics, May 2016
Lack of Shared Prosperity Large income gaps by race persist. 49 Source: The Data Center
The New Orleans Brand While beloved around the world, the New Orleans brand is a “double - edged sword.” 50
Stormwater Drainage New Orleans needs a new drainage system. 51
Thank you Michael Hecht President and CEO, Greater New Orleans, Inc. mhecht@gnoinc.org (504) 715-5037 52
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