The demise of manufacturing in the United States has been so thoroughly chronicled that it’s easy to miss the fact that the U.S. is still the world’s largest manufacturer. Shifting world economic patterns and the fact that the U.S. is twice as efficient as the next ten largest manufacturing nations have resulted in the phenomenon known as “reshoring”—the return of manufacturing operations that once went abroad in search of lower costs.
Some of the decline in U.S. manufacturing tracks the demise of farming before it—manufacturing became far more efficient, requiring fewer workers to achieve greater levels of output. In a speech to the Central Louisiana Economic Development Alliance (CLEDA) in September, Mississippi Manufacturers Association President Jay Moon noted that U.S. manufacturing output has risen dramatically and consistently since 1947, while manufacturing employment has done just the opposite. With reshoring, manufacturing employment is once again growing, both nationally and locally.
In addition to Central Louisiana’s historic strength in agriculture, agri-business, forestry- and timber- related industries, and the service sector, the region has long had a good base of manufacturers.
In Natchitoches, International Paper’s The Red River Containerboard mill is one of the 16 that is located in the U.S. The products produced at the Red River Containerboard mill have global reach, but the economic impact to the surrounding community and the state of Louisiana is direct and it is significant. In addition to its over 400 dedicated employees, the mill also fully supports over 125 jobs in the local fiber procurement, trucking and rail businesses to handle the transport of raw materials into the facility and to ship paper globally. Factoring in wages, state and local taxes along with supplier impact, the Red River Containerboard mill has at least a $157 million dollar direct impact on the local economy.
So, what does it take for Central Louisiana to win big in the rejuvenated manufacturing sector? The somewhat oversimplified answer is “people and places.” We must have educated, skilled, reliable and motivated workers. And we must have industrial sites that are attractive to the industrial and site-selection communities.
No region is capable of sustained economic growth beyond the capacity of its people to perform. The education and skills of our workforce represent our biggest potential and our biggest constraint. We must improve our levels of educational achievement in every sector of our workforce.
Another crucially important education and training factor for Central Louisiana is the upgrade of its community and technical college resources. In 2012, the Louisiana Legislature authorized the conversion of Central Louisiana’s technical college to a full “Technical Community College”. This designation brings greater responsibility and greater resources. Legislation in the upcoming session will be proposed to fund the construction of a major new campus in the Alexandria-Pineville area. A fully-operational community college is perhaps the single most important factor in Central Louisiana’s mid-to-long term prosperity.
Finally, the business community must work closely with other higher education resources in the region to make sure that the course offerings meet the potential needs of the region. The biggest players in this space in the region are LSUA, Northwestern State University and Louisiana College. CLEDA, the Central Louisiana Chamber of Commerce and others will be closely focused on how these institutions (particularly the public schools) meet these needs.
CLEDA also devotes significant time and energy to the creation and development of good industrial sites throughout the region. In Rapides Parish, this means working closely with partners like England Air Park, the Port of Alexandria, the various municipalities and private sector partners. National and international site selectors become more demanding each year. Sites that are designated as “certified” by accepted experts and agencies are now at the top of the list for most site selectors. CLEDA is committed to expanding the number of certified sites in the region in order to become more attractive to the industrial community.
Activity in Avoyelles is also starting to pick-up and they are positioning themselves with the development of the Avoyelles Parish Port at Simmesport and Bunkie’s new Industrial Park. The 148-acre Industrial Park was added to the SmartSites program by CLECO and McCallum Sweeny Consulting, one of the leading site selection agencies in the nation. The site is located near I-49 and Acadiana Rail, both of which will be key to attracting to a potential manufacturer.
The Central Louisiana Economic Development Alliance has supported many of these expansions, through their direct efforts and many indirect initiatives. They have worked directly with each company and municipality to develop a comprehensive plan for overcoming barriers and final implementation. To ultimately succeed, the team will consist of many state, parish and city governments, and other economic development organizations, as well as our K-12 school districts, Central Louisiana Technical Community College campuses, LSUA, Northwestern State University and the Louisiana Workforce Commission.
CLEDA conducts active programs for manufacturing support, workforce development, entrepreneurial development and innovation. CLEDA recently helped to form the Central Louisiana Manufacturing Managers Council, which will strengthen the capacity of the manufacturing sector to become even more competitive, now and in the future. Another important CLEDA initiative that supports manufacturing in the region is the Business Acceleration System, which now provides monthly coaching and consulting services for some 50 emerging businesses throughout the 10 parishes.
CLEDA is a nonprofit organization and is designated as the “regional development organization” for Central Louisiana by Louisiana Economic Development. For more information, see www.centrallouisiana.org.