Quentin Messer's Presentation @ LA NPDT 09-17-2014

LOUISIANA ECONOMIC DEVELOPMENTOpportunityLouisiana.com

ADVANTAGE LOUISIANA“BULLDOG NATION” PRESENTATION

SEPTEMBER 17, 2014

LOUISIANA ECONOMIC DEVELOPMENTOpportunityLouisiana.com 2

2. LOUISIANA ECONOMIC DEVELOPMENT (LED)

1. LOUISIANA IS OPEN FOR BUSINESS

3. LOUISIANA’S EDUCATIONAL TRANSFORMATION

4. LOCATION, LOCATION, LOCATION: LOUISIANA

5. BUY NOW! LOUISIANA IS APPRECIATING


LOUISIANA’S BUSINESS CLIMATE RANKED NO. 1 IN THE NATION BY BUSINESS FACILITIES

No. 1Business Facilities magazine, 2014


LOUISIANA RANKED NO. 1 FOR INCENTIVE PROGRAMS

No. 1Area Development magazine, 2014


LOUISIANA AMONG THE TOP TEN STATES FOR HIGHEST ENTREPRENEURIAL ACTIVITY RATES

TOP TENKauffman Index of Entrepreneurial Activity (2013)


UNLIKE MANY STATES, LOUISIANA HAS ADDED THOUSANDS OF NEW JOBS ABOVE PRE-RECESSION LEVELS

Since January 2008 through May 2014 Louisiana’s private sector job growth ranks 2nd in the South and 5th among all U.S. states

According to March 2014 estimates from the BLS, Louisiana now has more than 2 million people employed, the highest number in the history of the state

Alabama

Florida

North Carolina

Georgia

Virginia

Mississippi

Kentucky

South Carolina

Maryland

Tennessee

West Virginia

Louisiana

(90,700)

(81,300)

(47,800)

(44,100)

(43,000)

(37,800)

(34,700)

(29,900)

(22,200)

-

1,300

61,600

Change in absolute number of private sector jobs (January 2008 to May 2014)


LOUISIANA HAS THE SECOND LOWEST UNEMPLOYMENT RATE IN THE SOUTH

Source: Bureau of Labor Statistics

Percent unemployment (May 2014)

Kentucky

Mississippi

Georgia

Alabama

Arkansas

North Carolina

Tennessee

Florida

West Virginia

Delaware

Maryland

South Carolina

Texas

Virginia

Louisiana

Oklahoma

7.7

7.7

7.2

6.8

6.4

6.4

6.4

6.3

6.3

5.9

5.6

5.3

5.1

5.1

4.9

4.6


LOUISIANA’S GROWING ECONOMY HAS ENDED OVER TWO DECADES OF THE STATE LOSING POPULATION

US Census Bureau - Estimates of the Components of Resident Population Change for the United States, Regions, States, and Puerto Rico:

*2006 excluded because numbers skewed by large out-migration caused by hurricane Katrina

Louisiana average annual net-migration between 1980-2005 and 2007-2013*

13,376

(22,871)

After 25 years of net out-migration, Louisiana has had positive migration for seven (7) straight years

2007-2013

1980-2005


THE CAPITAL INVESTMENT IN LOUISIANA SINCE 2008 HAS BEEN SUBSTANTIALLY BEYOND RECOVERY EFFORTS

Source: LED analysis

2008 2009 2010 2011 2012 2013

2,475 2,570

7,002

18,780

22,299

26,360

Capital expenditure by year in Louisiana ($ millions) 2008-2013

This investment represents a wide range of industries, including petrochemical, software, and aerospace


LOUISIANA’S TOURISM INDUSTRY SET ALL-TIME RECORDS IN 2013 FOR BOTH VISITORS AND TOURIST SPENDING

Source: University of New Orleans Hospitality Research Center, “Louisiana Tourism Forecast: 2014-2017”

Note: Amounts not adjusted for inflation

2008

2009

2010

2011

2012

2013

2014

2015

20

1620

1723

24

25

26

27

28

29

Visitors per year (millions)

2008

2009

2010

2011

2012

2013

2014

2015

20

1620

178

9

10

11

12

Visitor spending per year (billions of dol-lars)

Projected Projected


NEW ORLEANS-MSY WAS THE FASTEST GROWING U.S. AIRPORT IN 2013

Source: Airline Weekly; Airports Council International

Note: Figures in original rounded to nearest percentage point

Orlando MCO

Atlanta ATL

San Antonio SAT

Fort Lauderdale FLL

Houston IAH

Raleigh-Durham RDU

West Palm Beach PBI

Miami MIA

Dallas DAL

Charlotte CLT

Nashville BNA

Houston HOU

Austin AUS

New Orleans MSY

-1

-1

0

0

0

0

1

3

4

5

5

6

6

7

Percent growth in passengers handled (2012 to 2013)









IN THE WORDS OF THE GRATEFUL DEAD, “LATELY IT OCCURS TO ME: WHAT A LONG, STRANGE TRIP IT'S BEEN”


““

There's no talent drop-off between New Orleans [Louisiana] and New York.

DAVID HAGUE Studio Manager, Gameloft, New Orleans

(2011-2013)


LED WILL PRIMARILY FOCUS ON EIGHT STRATEGIES TO POSITION LOUISIANA FOR A BRIGHTER ECONOMIC FUTURELED WILL PRIMARILY FOCUS ON EIGHT STRATEGIES TO POSITION LOUISIANA FOR A BRIGHTER ECONOMIC FUTURE

Cultivate top regional economic development assets

Focus on business retention and expansion

Develop national-caliber business recruitment capacity

Improve state economic competitiveness

Enhance community competitiveness

Cultivate small business, innovation, and entrepreneurship

Aggressively tell our story

Develop robust workforce solutions


EIGHT REGIONAL ECONOMIC DEVELOPMENT ALLIES AUGMENT LED’S EFFORTS


“ “With a diverse and well-executed economic development strategy, a workforce training program that sets the standard for the nation, and a full menu of innovative incentives, Louisiana is marching forward on a path to prosperity and growth.

JACK ROGERSEditor in Chief, Business Facilities


LED FASTSTART® HAS BEEN RECOGNIZED FOUR CONSECUTIVE YEARS AS NO. 1

“Louisiana’s innovativeworkforce trainingeffort remains the

gold standard for this critical

developmentrequirement.”

Jack Rogers - Editor in ChiefBusiness Facilities magazine


LED HAS DEVELOPED A CUTTING-EDGE STATEWIDE PORTAL TO MATCH HIRING FIRMS WITH EMPLOYEES

Louisiana Job Connection:

https://louisianajobconnection.com/

Advanced algorithm will deliver precise matches based on skills and experience

Employers can filter matches by percentage to quickly identify the strongest candidates or increase the size of the pool

Includes communication tools to correspond with matches either in groups or individually

Flexibility to manually post jobs or scrape them from existing applicant tracking systems

Job seeker features include the ability to populate career experience from LinkedIn and adjust profile privacy settings

Multi-faceted, aggressive marketing campaign will engage both job seekers in Louisiana and high-demand talent outside the state

Provides intuitive job posting functionality and easy-to-use interface

https://louisianajobconnection.com/


A NEW SUITE OF WEBSITES PROVIDES INFORMATION ABOUT REGIONAL AMENITIES TO RELOCATING FAMILIES

Quality of life sites

Provide information to job seekers considering opportunities in Louisiana

Compile and present region-specific information on education, healthcare, neighborhoods, industries, recreation, cultural activities, and other quality of life factors


FACTS FOR THOSE WHO ARE NEW TO LOUISIANA: BOOKMARK WWW.OPPORTUNITYLOUISIANA .COM








LOUISIANA HAS RECENTLY INSTITUTED FUNDAMENTAL EDUCATION REFORMS TO IMPROVE STUDENT OUTCOMES

Source: Louisiana Department of Education

Note: Refers to percentage of students scoring “basic” or above on the Louisiana Educational Assessment Program statewide assessment; proficiency figures in original data source rounded to nearest percentage point

2008 2009 2010 2011 2012 201360

62

64

66

68

70

Percentage of students scoring "basic" or above on statewide proficiency tests

2008 2009 2010 2011 2012 201366

68

70

72

74

High school graduation rate


STUDENTS HAVE ALSO SHOWN SIGNIFICANT IMPROVEMENT ON ADVANCED PLACEMENT EXAMS FOR COLLEGE CREDIT

Source: U.S. Department of Education; Louisiana Department of Education

2012 2013 2014 (official projection)

17,540

23,485

28,000

9,644

15,070

19,000

6,645

10,55312,664

4,1125,144

7,000

Louisiana student performance on the College Board Advanced Placement exams

AP courses taken

AP exams taken

AP test takers

Passing scores

For Louisiana public school students who took Advanced Placement exams in 2013:

There was a 59 percent increase in test takers, a 56 percent increase in the number of exams taken, and a 25 percent increase in passing scores from the previous year – outpacing the national average for all three metrics.

All ethnic groups showed increases in each of the above categories.

All ethnic groups have showed gains in passing AP scores over the past five years.

Passing scores in Louisiana have risen by 35 percent since 2011, the largest gain of any state


JUMP START WILL PROVIDE BOTH COLLEGE AND CAREER-TRACK STUDENTS WITH INDUSTRY-VALUED CREDENTIALS

Source: Louisiana Department of Education

Note: Required and elective courses for industry-based certification in italics

Jump Start is Louisiana’s new program for school districts, colleges, and businesses to collaborate in providing career courses and workplace experiences to high school students, allowing them to continue their education after high school, and certifying them for the career fields most likely to lead to high-wage jobs.

Jump Start will be an elective path for students pursuing a university-preparatory diploma, while it will be a required path for students pursuing a Career Diploma.

While in high school, participating students will be provided more time in the school day and school year to achieve industry certificates or college credentials in addition to their high school diplomas.

These credentials will qualify graduates to continue their studies after high school or launch a career upon graduating. Jump Start credentials will be state-approved and valued by Louisiana employers.

Illustrative curriculum for student pursuing industrial electrician certification as part of career diploma

9th grade credits

Algebra I English I Physical Science Agricultural Science I

Career readiness course Keyboarding

10th grade credits

Geometry English II Biology Spanish I

Civics Agricultural Science II Nutrition and Food Art I

11th grade credits

Financial Mathematics English III Spanish II U.S. History

NCCER Core Curriculum Basic Electricity NCCER Introduction to

Craft Skills ACT / WorkKeys

Preparation

12th grade credits

Applied Electric Mathematics

Technical Writing NCCER Electrical I NCCER Electrical II

National Electrical Code I National Electrical Code II Tools, Materials, and

Elementary Circuits Lab Electrical Technology

State credential

Career diploma

Industry certification

NCCER Electrical Level II


“ “Louisiana is far ahead of the curve with a fully integrated program that works in partnership with higher education in a coordinated economic development strategy that targets growth sectors.

JACK ROGERSEditor in Chief, Business Facilities


LOUISIANA HAS ENHANCED ITS SKILLED LABOR FORCE USING INNOVATIVE HIGHER EDUCATION PARTNERSHIPS

$29 million to build the Louisiana Digital Media Center

$14 million over 10 years to triple the number of computer science graduates

$2 million over seven years to expand telecommunications curriculum

$14 million over 10 years to increase number of computer science graduates

$5 million over 10 years to fund academic programs

Digital media

Software and information

Telecommunications



$4.5 million over 10 years to increase number of computer science graduates


$20 million for new training facility and equipment

$22 million for new training facility and equipment

Chemical manufacturing

Steel manufacturing

Company Education partner Industry Details

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=eYH4BL4s8FbO_M&tbnid=hu-zId35P2fWUM:&ved=0CAUQjRw&url=http://itbhawaii.com/about/ge-capital-financing-pg104.htm&ei=uYOvUqOfGcPq2QWUgoGYCQ&bvm=bv.57967247,d.b2I&psig=AFQjCNFdfCL02OKKdUcvxsTdKAnJLvpevA&ust=1387320545503658


















LOUISIANA IS MAKING STRATEGIC INVESTMENTS IN HIGHER EDUCATION TO ADDRESS THE WORKFORCE DEMAND

Source: LED analysis

*LED analysis of projected demand including newly announced projects and potential pipeline

Level of education required Occupation

Targeted expansion (# of new jobs annually)

4-year Engineering 288

Finance and Accounting

265

Computer Science 922

Data Analytics 770

2-year Engineering Technology

551

Construction Crafts 9,692

Welding 2,616

Electrical 1,792

Industrial Production

4,939

The State recently announced higher education systems in Louisiana will see a $141.5 million funding increase (+7%) in the next fiscal year (FY15)

The funding increase includes $40 million dedicated to a new workforce development initiative, an incentive called the Workforce and Innovation for a Stronger Economy Fund – or WISE Fund

The WISE fund, a targeted investment strategy, will incentivize and reward state universities and research institutions for producing graduates in high-demand areas (e.g., engineering, computer science, finance and accounting, skilled labor)

The WISE fund will help Louisiana meet the additional workforce needs


More than 850,000 square feet of new or improved training facilities are slated to be added to community and technical colleges across the state over the next three to five years.

Upgrades to physical infrastructure

From 2007 to 2012, Louisiana devoted more than $250 million to new and modernized training facilities at community and technical colleges around the state.

A quarter of a billion dollars already invested

In 2013, the Legislature authorized an additional $250 million for the workforce-related projects at community and technical colleges in Louisiana.

The largest component of this second round of investments is “Facilities with a Purpose,” a large-scale plan to build, expand, and modernize 25 workforce training facilities at 14 campuses around the state.

Significant new investments projected for the near future

LOUISIANA IS INVESTING HUNDREDS OF MILLIONS OF DOLLARS IN TECHNICAL AND COMMUNITY COLLEGES








JOB AVAILABILITY AND DESIRABILITY OF A PLACE ARE MUTUALLY REINFORCING REGIONAL OBJECTIVES

Notion of place / quality of life perception

Jobs


WE ARE TRANSLATING DESIRABILITY FOR VISITING INTO DESIRABILITY FOR PERMANENT BUSINESS RELOCATION


DESIRABILITY OF PLACE = “BUZZ”; ENABLES A LOCALE TO BREAK INTO MORE PROJECT CONSIDERATION SETS


Jobs

Louisiana is unique in that she has numerous assets that naturally make the state a desirable place to live. However, we need to continue to be intentional as business, civic, educational, and policy decisionmakers to maximize our state’s “livability” potential


HIGH-QUALITY JOBS AUGMENT THE NOTION OF PLACE; TRANSFORMS LOUISIANA INTO A POPULATION MAGNET


Jobs

New jobs spur development of cultural and residential amenities, resulting in a stronger notion of place


LOUISIANA RATED THE HAPPIEST STATE IN THE UNITED STATES

No. 1Harvard and Vancouver School of Economics, 2014


LOUISIANA IS HOME TO THE FIVE HAPPIEST CITIES IN THE COUNTRY

TOP 5Harvard and Vancouver School of Economics, 2014








LOUISIANA HAS IDENTIFIED SECTORS WITH THE GREATEST ECONOMIC GROWTH POTENTIAL

SPECIALTY HEALTHCARE• New investment in two research hospitals for

New Orleans will reach over $2 billion• Pennington Biomedical Research Center is world

renowned for obesity/diabetes research and treatment• Tulane University is highly ranked in tropical

medicine research

OIL & GAS• Leader in production of crude oil and natural gas• Major onshore resource plays premier access

to Gulf of Mexico • Distribution channels through Mississippi River,

Gulf of Mexico, six class one railroads and thousands of miles of pipeline

DIGITAL MEDIA & SOFTWARE DEVELOPMENT• 35% cash refund on development, no project limit• New Orleans is the No.1 brain magnet in U.S.

according to Forbes• Thriving ecosystem of startups and incubators

WATER MANAGEMENT• Water-related spending in tens of billions over

next 30 years• Global “laboratory” for deltaic and climate

change science• Creating “Water Institute”• Inherent science and engineering disciplines

are transferable

NEXT GENERATION AUTO• Well positioned within the Southern

Automotive Corridor with large inventory of sites and existing facilities

• Experienced manufacturing workforce • Readily available transportation infrastructure

including ports, rail, international airport and trucking

RENEWABLES & ENERGY EFFICIENCY• Aggressive incentives for clean technology

and software development• Robust refinery and agricultural infrastructure• Diverse feedstock and transportation alternatives• The lowest state-and-local tax burdens

for new firms


Technology companies in Louisiana have ready access to an existing skilled workforce that includes about 19,000 skilled software developers and more than 100,000 qualified professionals with appropriate skills

A best in class workforce recruiting and training program provides customized services for software development companies

The state is investing directly into computer science and engineering departments to increase program graduation rates

The state is home to the strongest, most comprehensive incentive for software development in the nation

LOUISIANA IS COMMITTED TO LEADING TECHNOLOGY AND SOFTWARE DEVELOPMENT


The state is home to 122 firms and 41 percent of all U.S. firm headquarters with capabilities related to Gulf Coast restoration and water resource management

Many universities in Louisiana are playing a key role in finding solutions to water management challenges

The Water Institute of the Gulf functions as an integrated, technology-focused entity to solve difficult water issues

Louisiana is executing the first fully-integrated ecosystem restoration project of its kind

LOUISIANA IS AN IDEAL LOCATION FOR WATER MANAGEMENT COMPANIES


EMSI PROJECTS LOUISIANA TO HAVE THE 16TH FASTEST JOB GROWTH IN THE NATION OVER THE NEXT FIVE YEARS

Source: EMSI (Economicmodeling.com)

West Virginia

Arkansas

Kentucky

Mississippi

Maryland

Tennessee

Alabama

Georgia

Delaware

North Carolina

Louisiana

South Carolina

Virginia

Oklahoma

Florida

Texas

3.6

4.2

4.9

5.2

5.4

5.7

5.8

5.9

6.7

7.0

7.3

7.4

7.5

7.7

7.8

12.4

EMSI job growth percentage and rank among all US states2013-2018

National rank

2

11

12

13

15

16

20

23

29

31

32

34

36

38

41

47


MOODY’S PROJECTS THAT LOUISIANA WILL GROW FASTER THAN THE U.S. AVERAGE OVER THE NEXT FIVE YEARS

Source: Moody’s Analytics; LED analysis

Louisiana’s economic output is projected to grow by 30 percent between 2013 and 2018 – sixth fastest in the country

2013 2014 2015 2016 2017 2018100

105

110

115

120

125

130

Projected gross state product (base year = 100)

Louisiana Southern average

U.S. average


MOODY’S ALSO PROJECTS THAT GROWTH IN LOUISIANA MEDIAN INCOME WILL OUTPACE THE NATIONAL AVERAGE

Source: Moody’s Analytics; LED analysis

2013 2014 2015 2016 2017 2018100

105

110

115

120

125

Projected median household income (base year = 100)

Louisiana

U.S. average

Median income for Louisiana households is projected to rise 22 percent between 2013 and 2018 – fastest among southern states


OFFSHORE OIL PRODUCTION IN THE GULF OF MEXICO IS FORECASTED TO INCREASE 50 PERCENT BY 2025

Source: EIA; IHS

2013 2014 2025

1.25 1.33

2.00

Gulf of Mexico offshore oil production (million barrels/day)

Active oil platformsPipelines

Offshore oil off of the coast of Louisiana

Companies like Shell and Chevron are continuing to make major investments in the Gulf of Mexico


THE HAYNESVILLE SHALE PLAY WILL GAIN MOMENTUM AS THE NATURAL GAS MARKET EXPANDS

Louisiana Department of Natural Resources; LED analysis

Contains 168 trillion cubic feet of natural gas

While activity has slowed dramatically in the shale play over the past couple of years, it is well positioned in the future to regain momentum:

Proximity to LNG export terminals

Abundant natural gas pipeline infrastructure of Louisiana

Need for natural gas feedstock for petrochemical plants located in the region (e.g. Sasol, Methanex)

Haynesville shale play

Shale play boundary

Haynesville shale play


THE TUSCALOOSA MARINE SHALE PLAY IS A PROMISING EMERGING SHALE PLAY

Louisiana Department of Natural Resources; LED analysis

TMS is estimated to contain 7 billion barrels of oil, most of which is light, sweet crude

Apollo Global Management recently announced it will invest up to $400 million in Halcon’s operations in TMS, where they expect to complete up to 12 wells by the end of 2014

Goodrich Petroleum has budgeted $300 million for TMS drilling operations and plans to have five wells operational by the end of the year

Operators appear to be “cracking the code” in the shale play, as recent production results have become more consistent with initial production around 1,000+ barrels/day

Tuscaloosa Marine Shale (TMS)

Shale play boundary

Tuscaloosa Marine shale play


LOUISIANA’S BUSINESS CLIMATE RANKED NO. 1 IN THE NATION BY BUSINESS FACILITIES

No. 1Business Facilities magazine, 2014

LOUISIANA ECONOMIC DEVELOPMENTOpportunityLouisiana.com

CONTACT

OpportunityLouisiana.com

@LEDLouisiana

Quentin L. Messer, Jr.

Assistant Secretary

Louisiana Economic Development

225-342-4851

[email protected]

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