Tertiary Economic Patterns of Louisiana

Chapter 26

By Leslie Thomas and Amber Brossette

The state of Louisiana has the potential for future growth. Some of the future growth industries in the state include retirement villages, furniture industry, seafood market, medical research, chemical industry, aerospace industry, and tourism. The chapter will cover the future growth industries of Louisiana.

Retirement villages are one of Louisiana’s future growth industries. Compared to other states, Louisiana has a favorable cost of retirement living. Toledo Bend Reservoir and the rest of the western part of the state are prime locations for retirees. South Louisiana has a seven-parish organization known as the Acadiana Municipal Economic Development Alliance, which is attempting to attract retirees to the area. Compared to other Sunbelt states, Louisiana ranks near the bottom in attracting retirees.

Another future growth industry in Louisiana is the furniture industry. Bottomland hardwood acreage is needed for furniture production. In the Southern portion of the United States, Louisiana is the number one source of bottomland hardwood acreage. Currently Louisiana exports 90% of the grade hardwood out of the state.. The hardwood is mainly exported to furniture and flooring markets. The state could take advantage of timber resources and fund the production of specialty papers required for food storage. Seafood processing could then be expanded to serve national markets.

The state of Louisiana has great potential in medical research. New Orleans has the capacity to become a medical Mecca. New Orleans could act as an International Referral Center that draws patients from all over the world. The Lafayette Economic Development Authority is actively seeking medical research industries to the areas Northpark High Technology Center.
Medical Research has the possibility to create additional jobs at businesses such as drug companies, medical device manufacturers, and medical equipment manufacturers. The state’s petrochemical industry could supply disposable hospital and laboratory plastic wares. Louisiana would have a cost advantage due to the presence of raw materials, location in the United States, transportation facilities, environmental permission, and lower capital and labor costs.

The center for Rehabilitation, Science, and Biomedical Engineering opened in 1985. This center is located on the Louisiana Tech campus. The center actively participates in research on cardiopulmonary support systems. The center also participates in materials and micro-devices that solve biomedical problems for individuals with disabilities or other medical needs.

According to the Economic Profile of Louisiana, Louisiana chemical products account for 20% of overall exports. Asian companies receive 20% of the chemical exports. The state continues to expand in chemical and plastic firms. Exxon has begun work on a $190 million addition to the facility in Baton Rouge. Shell Chemical Corporation has plans for two new plants in Geismar, Louisiana. Marathon Oil Company is expected to build a $300 million plant in Garyville that produces plastic used for car parts, carpet, appliances, and furniture.

The Institute for Micro-manufacturing consists of three parts. Louisiana Tech University serves as the focal point of the Institute for Micro-manufacturing. Louisiana Tech University provides the research and development. The second component is located in Baton Rouge. The second component is the X-Ray lithography micro-maching capability at the Center for Advanced Microstructures and Devices. The third component is the Institute for Technology Transfer. The third component is located at Shreveport-Bossier. The location takes advantage of the opportunities for development in technology transfer in the trenchless excavated construction industry. The Institute for Micro-manufacturing has been extremely successful in involving a wide range of industries such as equipment manufactures, material suppliers, and engineering design firms.

The picture is courtesy of the Center for Advanced Microstructures and devises.
This a picture of a cleanroom inside the center.

Aerospace companies in Louisiana are expanding. Lockheed Martin is building commercial rocket components at the NASA assembly facility near New Orleans. South Louisiana will soon become the nations largest producer of a high-grade form of iron. This will occur since a Japanese company has announced plans for a third direct reduced iron plant in St. James Parish. The navy is building an office for Information Technology at the University of New Orleans Technology Park. The office has the potential to become a major high tech center.

Tourism itself is a major growth industry worldwide, and by some accounts is the world’s largest industry. In 1996, Louisiana had over 25 million people visit the state. Louisiana has a unique heritage and is full of cultural diversity, which makes it an ideal location for tourist development. Louisiana provides opportunities for shopping, gambling, historical places, nightlife, and cultural events. Louisiana tourism

The Louisiana Department of Economic Development has named six areas that have the potential for growth in the future. The areas are hazardous waste remediation and control, solid waste management and recycling, outdoor air pollution, environmental consulting services, water and waste management, and medical waste management. Louisiana may take advantage of these areas in the future.

Other Economic Outline

I. Future Growth Industries

A. Retirement Villages

1. West Louisiana and Toledo Bend Reservoir have ideal locations

2. South Louisiana has a seven parish alliance to attract retirees

B. Furniture Industry

1. bottomland hardwood acreage in Louisiana

2. Louisiana currently exports 90% of hardwood out of state

C. Medical Research

1. potential of New Orleans

2. cost advantages for state

3. Lafayette

4. Center for Biomedical Engineering

D. Chemical Companies

1. Exxon

2. Shell

3. Marathon

4. Institute for Micromanufacturing

E. Aerospace and technology

1. Lockheed Martin

2. St. James Parish and iron plants

3. Navy plans

F. Tourism

1. heritage and cultural diversity

2. opportunities and attractions for tourists