One Year Later, Hurricanes' After-Effects Spur Louisiana's Emerging Industries

One Year Later, Hurricanes' After-Effects Spur Louisiana's Emerging Industries

Economic development moving Louisiana forward

BATON ROUGE, La., Aug. 22 /PRNewswire/ -- Louisiana's economy and business community are moving forward -- recovering and growing -- one year after Hurricanes Katrina and Rita disrupted commerce and sent thousands of businesses into chaos. Among the advance guard -- Louisiana's emerging film, advanced manufacturing, construction technology and life/information sciences industries.

"Over the past year, I charged Louisiana Economic Development with helping businesses adjust and adapt to the new economic environment, and simultaneously, to continue cultivating investment in our state," said Governor Kathleen Babineaux Blanco. "Whether you are an existing business or considering Louisiana for the first time, now is the time and Louisiana is the place to invest."

To date, more than 60,000 businesses have returned to operation across South Louisiana. To help businesses do so in the wake of the hurricanes, Louisiana Economic Development and its local, state and federal partners, mobilized

-- a temporary worksite employee housing program;
-- a bridge loan program that provided $40 million in gap funding
-- procurement and contracting workshops in impacted communities, attended
by more than 850;
-- established a network of six business counseling centers that have
assisted more than 3,750 users with business plans, resources and
technical expertise;
-- Six Gulf Opportunity Zone workshops, attended by more than 400 people
to help South Louisiana businesses better understand the newly enacted
federal incentives;
-- a Factory Building Systems Symposium, attended by nearly 300 people and
more than 70 exhibitors, to spur the new construction economy.

"Louisiana's economy has to move forward -- the situation demands it," said Louisiana Economic Development (LED) Secretary Michael J. Olivier. "And economic development has to be a catalyst for that. We all have to adapt, and we all have to look for new opportunities. Some of those will come from the challenges of our new environment and some will come from the outside investment we attract into the state."

The hurricanes have not blunted interest. LED's current roster of more than 70 working projects totals more than $6 billion in potential new investment and estimated 20,000 new jobs. Since August 2005, the agency has announced 26 projects worth a total of $6 billion and an estimated 5,500 direct jobs. Projects around the state include Synfuel Inc., a $5 billion new coal gasification plant in Ascension Parish; Marathon Oil's $2.2 billion Garyville plant expansion; and NuComm International, a $3.5 million customer contact center in Lafayette.

More than $1 billion in new projects have been announced in the Katrina impact area, including 84 Lumber Company's $9 million new components factory in Hammond; the $715 million Hyatt Regency downtown revitalization project and $200 million Trump Tower luxury residences in New Orleans; ABSI/Emmedue's new $6 million building systems factory in Jefferson Parish; and Dow Chemical's $65 million plant expansion in St. John the Baptist Parish.

As Louisiana native Walter Isaacson, president and CEO of the Aspen Institute, and Louisiana Recovery Authority co-chairman, has remarked, "For anyone with ambition and civic spirit, there is no better place to be, nor better time to be there, than New Orleans now. And on the plane ride back from one of his trips there, President Bush said that if he were young and looking to make his mark or some money, he would move to New Orleans." Companies in Louisiana's emerging industries are also taking advantage of the unexpected opportunity that has been heralded by business and political leaders around the nation.

Film industry growing -- no days lost to storms

After evacuating from New Orleans, the Louisiana Institute of Film & Technology opened quarters in Shreveport, LA. The northwest region of the state proved so full of options for production projects that the state's film industry now has two permanent hubs -- New Orleans and Shreveport. In fact, the geographic diversity of resources and locations across Louisiana ensured that current projects lost zero production days as a result of Katrina and Rita. Since the hurricanes hit, 19 projects have completed across Louisiana. One feature film is currently in production and two new large studio features will begin production in Louisiana soon.

Advanced Manufacturing -- Future assured at Louisiana facility

Although damaged by Hurricane Katrina, NASA's Michoud Assembly Facility has since delivered two external tanks for the space shuttle program, including those used in the most recent shuttle mission and has nearly a dozen more scheduled. In addition, NASA announced this spring that Michoud Assembly Facility would be the site for construction of the next generation of manned flight vehicles. This announcement ensured large-scale NASA manufacturing will take place at the New Orleans location for at least a decade more, and require 1,000 - 2,000 employees through 2020.

Center for Construction Technology -- Devastation breeds opportunity

With more than 200,000 homes destroyed, Louisiana is a prime location for construction technology. After exhibiting at LED's Factory Building Systems Symposium in June, an Italian construction system company recently announced a $6 million investment in the state by opening a factory in the New Orleans metro area. The company's rapid concrete construction system, known as M2 Emmedue(R), has been used in more than 40 countries, including many storm- prone areas. Louisiana businesses are poised to be on the forefront of building technologies, many seeking new opportunities sparked by the Symposium.

Retaining the high tech brain trust

Part of the transformation in Louisiana's economy is a renewed sense of commitment to the state, including among the business community. Network Foundation Technologies (NFT) owners Dr. Mike O'Neal and Marcus Morton have purposefully staked a claim in North Louisiana. According to Morton, the state's progressive incentives and the quality of graphic engineering graduates from state universities make Louisiana the perfect environment for advancing a high tech infrastructure equivalent to Silicon Valley. NFT execs expect the company to reach annual sales of $100 million over the next two years.

Legacy industries also thriving -- oil & gas continue to prosper

Louisiana's most well-known economic drivers -- the petroleum industry and the state's six deepwater ports -- continue to move forward. Ship calls at the Port of New Orleans have returned to their original rates, and cargo levels have reached more than 80 percent of their pre-Katrina levels. Steel volume moving through New Orleans -- the largest steel entry point in the nation - has even increased over last year. Nine Liquefied Natural Gas (LNG) facilities are either in operation, under construction or proposed in Louisiana.

"South Louisiana's business environment is undergoing a transformation, while North and Central Louisiana continue to thrive. Our mission as we pass the one-year anniversaries of Katrina and Rita is to continue to cultivate investment in every region of Louisiana, especially in these emerging industries. New businesses moving here or existing business expanding will move Louisiana forward," said Olivier.

The mission of Louisiana Economic Development is to provide excellence in leadership, policy and programs to create a business climate enabling public- private linkages, which result in capital investment, a diversified economic base and quality job opportunities for all Louisiana citizens. For more information, visit LouisianaForward.com

Source: Louisiana Economic Development

CONTACT: Lana Sonnier, Press Secretary, Louisiana Department of Economic
Development, +1-225-342-5406 Office, lana.sonnier@la.gov; or Amy B. Ferguson,
+1-504-891-9343 Office, +1-504-343-7536 Cell, amyferg@bellsouth.net

Web site: http://www.louisianaforward.com/

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