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Regional Report: Energy and Infrastructure Lead the Way in Louisiana

Through its infrastructure upgrades and workforce development initiatives, Louisiana is drawing investment from both traditional and advanced technology companies.

Q3 2019
The Port of Greater Baton Rouge is completing nearly $60 million in rail improvements that complement more than $200 million in improvements (shown here) made by Louis Dreyfus Co. over the last decade.
The Port of Greater Baton Rouge is completing nearly $60 million in rail improvements that complement more than $200 million in improvements (shown here) made by Louis Dreyfus Co. over the last decade.
With a supportive pro-business climate and top-ranked transportation system, Louisiana continues to attract major economic development projects across the state in key growth sectors. This economic growth is reflected in the state’s gross domestic product (GDP), which hit an all-time high of $255.5 billion in the fourth quarter of 2018. Through July 2019, Louisiana attracted 37 major project wins that are collectively worth $7.6 billion in new capital investment and will create over 6,400 new jobs, according to a Louisiana Economic Development (LED ) spokesperson.

With some business leaders citing a shortage of high-tech workers, the state has been making investments in education and workforce development — especially for key industries such as oil and gas, petrochemicals, and advanced manufacturing. For example, over the past decade, Louisiana has invested nearly $300 million in higher-education initiatives to broaden training in energy, manufacturing, advanced manufacturing, software/IT, and other STEM (science, technology, engineering, and math) sectors. These initiatives, many of them led by the Louisiana Economic Development FastStart workforce training program, are yielding more than 20,000 new technology jobs in the state. In fact, Louisiana’s workforce development efforts have helped reduce the state’s unemployment rate to 4.3 percent in June, the lowest it has been since January 2008.

“This is a testament to the continued strength of our economy,” says Gov. John Bel Edwards. “With the highest GDP and personal income in our state’s history and the lowest unemployment in 11 years, Louisiana is headed in the right direction.”

Additionally, Louisiana’s network of interstate, rail, and deepwater shipping ports makes the state a leader in shipping and distribution; however, over recent years, investments in upgrades and expansions have been lagging. To keep up with the needs of businesses and industries across the state, Louisiana has undertaken several major projects. For example, a new terminal to replace the existing facility is nearing completion at Louis Armstrong New Orleans International Airport. And this fall, a four-year dredging project will commence that deepens the Mississippi River channel from 45 to 50 feet from Baton Rouge to the Gulf of Mexico, increasing both maritime commerce and international shipping.

Center for Advanced Manufacturing and Engineering Technology at Bossier Parish Community College
The Center for Advanced Manufacturing and Engineering Technology at Bossier Parish Community College was built to support workforce development needs for regional manufacturers.
Key Industries Deliver
Major growth industries in Louisiana are liquefied natural gas (LNG), petrochemicals, aerospace, automotive, agribusiness, advanced manufacturing, software/IT, and water management.

One of the state’s strongest and most traditional industries is oil and gas. The $20 billion Cheniere LNG facility at Sabine Pass, the largest LNG complex in the U.S., is expanding. Four liquefaction units are fully operational, with a fifth unit nearing completion. Production units are coming online at Sasol’s $12.9 billion chemical complex near Lake Charles, which includes an ethane cracker and six downstream chemical plants. And Venture Global has also proposed three multibillion-dollar LNG projects along Louisiana’s Gulf Coast.

Manufacturing continues to play a key role in Louisiana’s economic growth. Louisiana ranks first in a U.S. Census Bureau-based federal study of manufacturing productivity. Foreign direct investment, or FDI, accounts for a significant share of manufacturing investment. Louisiana has attracted more than $100 billion in FDI over the past decade and is ranked first in the country for FDI per capita from 2013 to 2018. The state has added more than 2,500 manufacturing jobs in the past year alone. Despite this success, finding qualified workers with tech skills continues to be a major challenge for manufacturers.

To meet these needs, Louisiana has launched a number of initiatives that target workforce development. For example, the $22 million Center for Advanced Manufacturing and Engineering Technology at Bossier Parish Community College was built to support workforce development needs for regional manufacturers. And to support Boeing, NASA, and the Michoud Assembly Facility in New Orleans, Nunez Community College in St. Bernard Parish established its aerospace manufacturing technology curriculum. The Nunez program is designed specifically to meet Boeing’s needs in rocket construction for NASA’s next missions to the moon and Mars.

Chemicals is another traditional sector that is driving the GDP forward. Linde recently announced plans to construct a $250 million world-class hydrogen plant in St. James Parish. Hydrogen is necessary to produce transportation fuels that meet current environmental standards, as well as certain intermediate and specialty chemicals. Shintech Louisiana, a subsidiary of Japan’s largest chemical company, will invest $1.49 billion to develop a new chlor-alkali and vinyl chloride monomer production facility and expand an existing polyvinyl chloride manufacturing facility at Plaquemine. And Lotte Chemical, a South Korean company, has invested heavily in Louisiana, including its $3.1 billion Lake Charles complex that includes a new $1.1 billion monoethylene glycol plant and the company’s U.S. headquarters. “Among Korean petrochemical companies, Lotte Chemical is the first to locate a project in the United States,” states Jinkoo Hwang, president and CEO of Lotte Chemical USA. “We are very excited to be part of the industrial growth in the region.”

Investment Surges in Louisiana

Enabled by workforce initiatives, traditional and advanced technology companies are making investments in Louisiana.
  1. Cheniere LNG facility

    Sabine Pass, LA

    The $20 billion Cheniere LNG facility at Sabine Pass, the largest LNG complex in the U.S., is expanding. Four liquefaction units are fully operational, with a fifth unit nearing completion.

  2. Sasol

    Lake Charles, LA

    Production units are coming online at Sasol’s $12.9 billion chemical complex near Lake Charles, which includes an ethane cracker and six downstream chemical plants.

  3. Venture Global

    Cameron Parish, LA

    Venture Global has proposed three multibillion-dollar LNG projects along Louisiana’s Gulf Coast.

  4. Bossier Parish Community College

    Bossier Parish, LA

    The $22 million Center for Advanced Manufacturing and Engineering Technology at Bossier Parish Community College was built to support workforce development needs for regional manufacturers.

  5. Michoud Assembly Facility

    New Orleans, LA

    To support Boeing, NASA, and the Michoud Assembly Facility in New Orleans, Nunez Community College in St. Bernard Parish established its aerospace manufacturing technology curriculum.

  6. Shintech Louisiana

    Plaquemine, LA

    Shintech Louisiana, a subsidiary of Japan’s largest chemical company, will invest $1.49 billion to develop a new chlor-alkali and vinyl chloride monomer production facility and expand an existing polyvinyl chloride manufacturing facility at Plaquemine.

  7. Lotte Chemical

    Lake Charles, LA

    Lotte Chemical, a South Korean company, has invested heavily in Louisiana, including its $3.1 billion Lake Charles complex that includes a new $1.1 billion monoethylene glycol plant and the company’s U.S. headquarters.

  8. GE Digital

    New Orleans, LA

    GE Digital, in collaboration with FastStart and the University of New Orleans, launched the Software Engineering Apprenticeship Program that supervises and mentors apprentices.

  9. ExxonMobil

    Baton Rouge, LA

    In Baton Rouge, ExxonMobil teamed up with FastStart to create virtual reality (VR) training modules for a large-scale polypropylene project. Baton Rouge Community College will support the VR training lab.

  10. DXC Technology’s Digital Transformation Center

    New Orleans, LA

    Located in the central business district of New Orleans, DXC Technology’s Digital Transformation Center is expected to create 2,000 new jobs over five years. A $25 million statewide higher-education initiative will help FastStart develop a talent pipeline for these higher-tech jobs.

Growth Through Collaboration
The state of Louisiana has a reputation for working creatively with economic development groups and business leaders to develop productive partnerships that strengthen the economy, especially regarding workforce development. For example, GE Digital, in collaboration with FastStart and the University of New Orleans, launched the Software Engineering Apprenticeship Program that supervises and mentors apprentices. In Baton Rouge, ExxonMobil teamed up with FastStart to create virtual reality (VR) training modules for a large-scale polypropylene project. Baton Rouge Community College will support the VR training lab, where students can be trained in process technology and industry-related scenarios.

FastStart is also providing substantial project management and coordination support for DXC Technology’s Digital Transformation Center in the largest technology-focused economic development project to date in New Orleans. Located in the central business district of New Orleans, the center is expected to create 2,000 new jobs over five years. A $25 million statewide higher-education initiative will help FastStart develop a talent pipeline of qualified workers for the higher-tech jobs that DXC will create.

Economic development in Louisiana has remained strong in both traditional and high-tech/advanced technology sectors. “Employment is near a record-high and Louisiana has enjoyed 16 consecutive months of private-sector job growth,” says LED Secretary Don Pierson. “The growth we’re seeing in our highly skilled workforce, coupled with the state’s many logistical advantages and competitive incentive programs, continues to make Louisiana an ideal business location for both new and expanding corporations. Success is very evident today in Louisiana, from small businesses to major industries and leading global companies.”

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