Economic Snapshot

By Brett Downer
The Times of SWLA


We’re more likely to have a job than the typical American, thank heavens. We’re more likely to own a home. We have more doctors to choose from — and more hospital beds to climb into — when we’re sick. We have big-dollar economic expansion under way and other prospects peeking in with interest.

We earn thousands of dollars less than the typical American worker, however. We have a tougher time staying in school — whether it’s getting a high school diploma or sticking it out through college. We’re less likely to carry insurance, and when we do, we’re paying more for it.
We’re Southwest Louisiana, and how we stack up with the nation and surrounding regions is outlined in a “Competitive Snapshot” commissioned by the Southwest Louisiana Economic Development Alliance.

The “snapshot” freezes this statistical moment in time for the sake of coordinated economic planning for the future. It was prepared by Market Street Services, an Atlanta-based consulting group which does this work for cities all over the country.

The snapshot tracked data going back four to seven years, sometimes longer, to track Southwest Louisiana trends. In addition, it compared us to three roughly comparable markets — Beaumont, Texas; the Mississippi Gulf Coast; and Mobile, Ala.— and the nation as a whole.

Market Street categorizes the issues by “People, Prosperity, Place.” Its snapshot suggests that Southwest Louisiana grow the workforce, raise wages and educational attainment, diversify the economy, “become an economic garden” for new business, leverage its existing business, expand healthcare access, “improve the environment” and increase civic capacity (more nonprofit groups), among other ideas.

Mac Holladay, the founder and CEO of Market Street, said the snapshot will help the Alliance’s “Southwest Louisiana on the Move!” economic plan.

Jobs
In baseline terms of jobs, the snapshot found that the employment picture here is just about the best anywhere.

Among the three comparison regions and the nation, Southwest Louisiana had the highest level of employment growth from 2001 to 2008. Also, between the fourth quarters of 2004 and 2008, employment growth here was 5.9 percent — far better than the state (1.2 percent) and nation (2.5 percent).

In fact, from 2000-2008, the unemployment rate actually fell here (4.3 percent to 3.9 percent.) While unemployment has gone up in 2009 — to more than 7 percent — the jobless rate is still lower than that of the state, the comparison regions and the nation.

The area’s working population grew 1 percent. That was far below the growth rate nationally (up 8 percent), but still better than the state as whole, which saw a decline.

If the snapshot’s job stats are relatively encouraging, the pay stats present a challenge.

Real per capita income in 2007 was $31,366. That was far below the nation ($38,615), Mississippi Gulf Coast ($36,133) and state ($35,100). Per capita income “is one of the best measurements of a community’s progress in economic development, because it is a key indicator of economic stability and potential buying power.”

Wages in finance, insurance and information services “lag significantly behind national wages,” the snapshot notes.

Quality of Life
The stats on heathcare and insurance represent a mixed doctor’s bag.
Lake Charles has more doctors per person than the state or nation.
Healthcare costs “as a whole” in the region are higher than the state and nation. However, it’s cheaper here to visit the doctor ($75) and dentist ($55) than the national average ($77 and $70, respectively).

The number of hospital beds per capita (619) is far higher than the rates along the Mississippi Gulf Coast (406) and nationally (420). “Since Lake Charles has significantly more hospital beds per capita than the comparison regions, this presents an opportunity to expand capacity in medical research and training,” the snapshot notes.

Also, insurance costs more ($1,536) than the national average ($1,432). The percentage of people without insurance is 22 percent, higher that the state (21 percent) and nation (17 percent).
Education
Education lags.

Too many don’t finish high school. Too many don’t seek college or technical training. Still others enroll in a four-year college, but drop out. Some lose their jobs and need to learn a new skill set.
That’s where community and technical colleges with two-year degrees can some into play.

“I see Sowela and the other technical colleges in the region playing a key role for training -- and re-training — people for the workforce,” said George Swift, the Alliance’s president and CEO. “There are trades and crafts. Petrochemical, with the process technology program. Heath care. Gaming and tourism. Aviation.”

Entrepreneurship
An entrepreneur might find unexplored fields here.

The snapshot counted just 14,500 self-employed people, though “Beaumont had nearly 22,400, the (Mississippi) Gulf Coast had nearly 26,000 and Mobile had just over 27,800.”
Also, small-business loans, patents and research trail all other areas.
Swift sees opportunities.
Plant employees might realize helpful processes or products — then go get patents or form their own businesses. The “cultural economy” has potential for the musicians, artists, cooks and others who season the only-in-Louisiana gumbo of food, arts and entertainment. Also, “more companies are outsourcing things,” Swift said. “They need support services, consulting and technical services.”

Toward this end, the Southwest Louisiana Entrepreneurial and Economic Development Center is being formed. The Alliance is joining with the city, parish and state to build and operate a business incubator near the McNeese campus. The SEED Center, as McNeese President Bob Hebert named it, will house the Alliance offices, the university’s Small Business Development Center and the tools and resources needed to cultivate new business ventures.

Best Face Forward
The area has its challenges, economic and otherwise, when you’re showcasing the area to suitors.
Swift skipped the statistics when asked to name the first ones that came to mind. Instead, he pointed out the window.

“Litter, and the appearance of the I-10 corridor,” he said. He turned his chair toward his third-floor office window, which affords a view of the half-century-old Calcasieu River Bridge. “You have an I-10 bridge that is not attractive, wide, or safe-looking.”

“It’s not aesthetically pleasing,” he said. “There are no travel plazas that they can easily see...I-210 looks good, but most people take I-10.”

Nevertheless, he said, there’s a good face being put forward when people arrive by other means.
“The new airport is a major improvement for people’s first impression,” he said. The $28 million Lake Charles Regional Airport terminal is a rare welcome legacy of Hurricane Rita. Also, over at Chennault, “Million Air is a great-looking facility for people who arrive that way.” He also cited area casinos and golf courses as powerful imagemakers for the area.

What’s most attractive to outside prospects, Swift said, is an emerging fresh image of the state.
“There’s a new overall attitude and acceptance of the region by new companies and new people,” he said.

The Alliance helps that idea along through advertising and marketing that touts the petrochemical industry, gaming, health care and school achievement. “We can tell a good story,” Swift said. “We get past the perception of Louisiana. Ethics laws and marketing ... move away from the perception of political corruption and the things we don’t do anymore.”

Prospects
To get potential new businesses interested, “we have a database of available buildings and sites and demographics on the area. We contact developers and site consultants. We field RFPs (requests for proposals) usually through the state,” Swift said.

“Say someone wants a hundred acres, with rail (service), and along the interstate. We can be the link between government — on a local, parish or state level — and whatever a potential client might want. We’re kind of the liaison between these entities.”

“We’re also marketing the area in publications and online,” he said.

“We’re behind the scenes, working. We try to identify opportunities.”

And even with the wait-and-see national economic prospects, “people are looking here,” Swift insisted.

“Yes, people are still looking, and that’s a good sign. But they want to see that there’s an upswing in the national economy. There are about eight good prospects right now” — he declined to name them — “so we feel really good about the region.”

He added: “I don’t want to make light of a single person who has lost their job. But I talk to civic clubs all the time, and I tell them I can’t think of another place where I would rather be than Southwest Louisiana.”

FACTBOX:
It's All Part of a Plan
The “competitive snapshot” done by Atlanta consulting group Market Street Services is part of a four-part effort this year by the Southwest Louisiana Economic Development Alliance.

The first step was an analysis of the Beauregard Regional Airport and industrial park effort. The acreage at the site has some rail service, but needs water and sewer lines.

“It has tremendous potential long-term,” Alliance CEO George Swift said of efforts to get the facility designated as a Louisiana Megasite. “And maybe short-term.”

The second step was the competitive snapshot. It was funded by the Alliance, L’auberge du Lac Casino Resort and Louisiana Economic Development.

Next will be a Target Business Review to find targets and opportunities for economic diversification. For example, existing businesses in the petrochemical or agriculture sectors might spark related prospects for new businesses. That review will take place in mid-October.

The final phase will be an Implementation Action Plan with a timeline and benchmarks. “They will look at our five-year plan, Southwest Louisiana on the Move, to see what needs to be re-prioritized,” Swift said.

The Alliance’s plan began a year and a half ago — before the 2008 hurricane season and the national downtown — so changes are expected. Workforce development and new business recruiting, for example, have been high priorities, and will remain so. However, an emerging factor is business retention — developing opportunities from the businesses already here.
The Alliance will have a game plan “by the end of the year,” Swift said.