State's Top Priority: Develop and Retain Businesses

By Lisa Yates
Editor, Times of SWLA
 


Louisiana Secretary of Economic Development Stephen Moret said the state's top priority is to develop and retain businesses.

Moret delivered the keynote address at the Greater Beauregard Chamber of Commerce's Business and Community Leader's Luncheon, Jan. 16, in DeRidder, talking about economic highlights of 2008, and what's ahead for 2009.

More than 50 businessmen and women were present at the event, held at the Wooten Theatre.

One of the ways Moret suggested making the state better for business is to move up in national rankings.

“We're not where we want to be, but clearly we're headed in the right direction,” he said.

Moret said Louisiana's has perennially been listed at the bottom of many significant national rankings. However, with policy changes implemented by Gov. Bobby Jindal and the Legislature, the state is reversing decades of negative trends.

Moving up in the national rankings

He cited several improved rankings, including:

• La. is ranked fifth, up from 46th, in the country in the Better Government Association’s 2008 Integrity Index, which is the most comprehensive national ranking of state governmental ethics and transparency laws.
• La. is ranked 22 (2008), from not being ranked in the top 25 (2007), in Site Selection magazine's Top State Business Climate Rankings.
• Forbes magazine increased La.'s growth prospects to 17th (in 2008) from 45th (in 2007) among the 50 states.
• La. improved to No. 43 (2008) from No. 47 (2007) in CNBC's rankings of America's Top States for business.
• Industrial Info Resources ranked the state second, behind Texas, for the number of significant industrial projects expected to begin in 2009.

Attracting new jobs and capital investment

In spite of a lingering national recession, Moret told the audience Louisiana is well-positioned to secure new business in the year ahead.

He praised George Swift, SWLA Economic Development Alliance President and CEO, for his help attracting 1,400 new jobs to the state.

“Louisiana is the first state in the country to attract a nuclear fabrication and assembly facility,” Moret said. “The facility in Lake Charles – a joint venture between Westinghouse and The Shaw Group – will generate $100 million in capital investment and create 1,400 new jobs in the region.”

Working with local and regional partners, Moret said the state secured 34 major project wins in 2008, including 24 company expansions and 10 new organizations.

He said included were projects in the state's traditional industries like agriculture, shipbuilding and petrochemicals, as well as projects in newer growth industries like nuclear energy, digital media and alternative energy.

The secretary said several companies decided to move headquarters to Louisiana and others committed to expand in the state, including:

• Albemarle Corporation, a Fortune 1,000 company, moved its corporate headquarters from Richmond, Va.
• Bercen, Inc., a specialty chemicals manufacturer, relocated its corporate headquarters, as well as its research and development and technical service laboratories, from Cranston, R.I.
• The Shaw Group announced plans to keep its Fortune 500 corporate headquarters in the state for at least 15 more years, and to grow its professional, non-craft headcount by 1,500 new jobs – an increase of roughly 75 percent.

Moret added Louisiana's film industry is the largest in the country outside of California and New York. He said, in 2008, the state set a record with more than 80 major film and television project, which represent more than $800 million in production budgets with $500 million spent in state.

Major advances in economic competitiveness

Moret gave an overview of initiatives in 2008, that have improved Louisiana's economic competitiveness.

Besides ethics reform, the state's government launched additional initiatives making Louisiana more attractive for business development, including:

• Eliminating several business taxes, including the sales tax on manufacturing machinery and equipment, the franchise tax on corporate debt and the sales tax on natural gas and business utilities. They also implemented the largest personal income tax cut in state history.
• Passing a comprehensive workforce development reform plan.
• Launching the Louisiana FastStart program, a turnkey workforce solution for relocating and expanding businesses that will provide customized employee recruitment, screening and training services. Jeff Lynn, a top leader in Georgia's No. 1-ranked Quick Start program, was recruited to lead Louisiana's program.
• Establishing a new Business Retention and Expansion (BRE) Group to focus special attention on retaining and growing Louisiana's existing business and industry.

Launching a first-in-the-nation, Web-based suite of community education modules – LouisianaCommunityNetwork.com. The program has already won a major national award.

Moret concluded his presentation with a promise.

“My goal is to deliver the best state agencies in the country,” he said.

Kay Fox, Beauregard Electric Vice President of Marketing and Member Services, praised the secretary's presentation.

“I know working at Beauregard Electric, I was very encouraged to hear Secretary Moret's positive announcements about Louisiana,” she said. “And, I look forward to attracting new businesses to the area.”