By BF Editors
From the July / August 2024 Issue
Business Facilities: Please describe the Louisiana business climate and the state’s broad advantages for business.
Susan Bourgeois: We are a global gateway. Louisiana provides businesses across a broad range of sectors with direct access to 38 interior states and worldwide markets through the Mississippi River and the Gulf of Mexico. Our transportation network is among the most interconnected and sophisticated in the world, linking six deep water ports to interstate highways, airports, railroads and a 50,000-mile pipeline network.
Moreover, Louisiana is a pro-business state with a variety of incentives for capital investment, job creation, innovation and research. And we have a multigenerational, committed, diverse, and loyal-to-Louisiana workforce that is second to none.
BF: What items are at the top of your list for Louisiana Department of Economic Development? How is the department continuing to make the state attractive to new and existing companies??
Bourgeois: Louisiana Economic Development is transforming the way the state approaches economic development. We’re taking a more holistic, whole-of-government approach, benchmarking best practices and looking at all our systems with fresh eyes. New legislation empowers government to move at the speed of business, align our strategy, more easily work hand-in-hand with the private sector, and extend our signature hospitality across all sectors of industry. This new model is about solving before selling.
BF: What are Louisiana’s leading industries? What are growth industries in 2024??
Bourgeois: Louisiana has long been and will always be an energy state. The oil and natural gas industry is a leader in economic impact, taxes paid, and people employed. At the same time, we recognize the profound economic benefit of diversifying the energy sector in response to growing demand and global market dynamics. So, while it is fair to say that energy markets are changing, what is not changing is our prioritization of energy investment and support for energy innovation.
As a global gateway, we are a magnet for advanced manufacturing, petrochemical processing, and other companies that drive supply chain shipping and logistics. We cherish and champion these legacy industries, and are committed to helping them lead in the future, as they have in the past.
But there’s also a new story emerging in Louisiana, one of diversification, innovation, and global impact. Bioscience and health care sectors continue to grow. Long a leader in automotive parts production, Louisiana is now an emerging leader in the electric vehicle battery materials supply chain. And we’re very excited to be making waves in the data center, telecommunications, cybersecurity, and aerospace and aviation markets.
BF: What are recent developments that businesses should know about when it comes to the business climate?
Bourgeois: This spring, Japanese chemical company UBE Corporation announced it will invest $500 million to establish the first U.S. manufacturing facility for key electric vehicle (EV) Lithium Ion Battery (LiB) ingredients dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC), just outside New Orleans, in Jefferson Parish.
This $500 million investment reinforces Louisiana’s leadership in the electric vehicle battery components supply chain, and is another win for southeast Louisiana’s manufacturing workforce, which is second to none. It’s a vote of confidence from the global marketplace in Louisiana’s strategic location, rich natural resources and skilled workers.
Since 2021, LED has announced seven major EV battery supply chain-related projects with a combined capital investment of more than $2.3 billion. The six projects announced so far are expected to eventually result in nearly 3,000 new direct and indirect jobs, and more than 4,000 construction jobs. And we have more projects in the pipeline that we hope to announce in the coming months.
BF: When it comes to quality of life in Louisiana, what is a highlight you’d share?
Bourgeois: Everyone knows about our world-class cuisine, tremendous arts scene and diverse culture… our natural beauty, 300-year-old cities, incredible culture, warm hospitality and close-knit communities… They love to visit Sportsman’s Paradise and attend our many strong universities… all of which makes Louisiana a wonderful place to live, work, study, play, and raise a family.
But another important factor—especially today, when inflation is persisting—is cost of living.
Living in Louisiana is less expensive than the national average. If you look at the cost of food, transportation, health services, rent, utilities and taxes, the cost of living is 9% lower. Housing is 17% lower, while utilities are 13% lower. When it comes to necessities such as food and clothing, groceries are approximately 4% lower than in the rest of the country, while clothing costs 4% less.
This, together with a growing and diverse job market, makes our state a great home for working professionals and their families.
