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AN ASSESSMENT OF THE

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AN ASSESSMENT OF THE Powered By Docstoc
					         LOCATIONAL STRENGTHS

                AND WEAKNESSES



                                 for




                                from




                           347 Girod St.
                       Mandeville, LA 70448
                          (985) 626-9868
                       FAX: (985) 626-9869
                       ebee@taimerica.com
Technology Assessment•Strategic Planning•Organization Design•Site Selection




                          June, 2009
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448        June, 2009




                          TABLE OF CONTENTS


COMPETITIVE BACKGROUND                                                  3

INTRODUCTION                                                            6

QUALITY OF LIFE                                                         8

BUSINESS CLIMATE                                                        13

MARKET ACCESS                                                           18

WORKFORCE AND TRAINING                                                  23

TRANSPORTATION                                                          33

UTILITIES                                                               39

REAL ESTATE                                                             44

TECHNOLOGY RESOURCES AND STARTUP SUPPORT                                49

NATURAL RESOURCES                                                       55

SUMMARY                                                                 61

APPENDIX                                                                62




Locational Strengths and Weaknesses for Acadiana Economic Development                2
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




                    COMPETITIVE BACKGROUND
It is helpful to begin a strengths and weakness assessment by looking at previous
growth in the region. Evaluating past growth in population, employment, and
per capita income gives some understanding of the region’s overall competitive
position. Adding an analysis of the growth and development of the region’s
economic base over the last five years gives additional clues about those sectors of
the regional economy that are declining and growing. This analysis is helpful in
targeting industries that have some of the same locational requirements.

Table 1. Population Trend

 Area                       2002             2007    Pct. Chg.
 Acadiana                516,174          538,052          4%
 Baton Rouge             713,356          769,397          8%
 Houma                   195,564          201,020          3%
 Houston               4,979,939        5,597,958         12%
 U.S.                287,726,647      301,290,332          5%



The Acadiana region has grown much slower than Houston and Baton Rouge in
terms of population since 2002 (Table 1). Population growth in Acadiana has
been significantly below the growth rate in employment, suggesting that the
region is experiencing a much tighter labor situation than in 2002. However,
Acadiana’s employment growth is at a par with that of Baton Rouge, is slightly
below that of Houston, but is significantly above that of the nation (Table 2).

Table 2. Total Employment Trend

 Area                         2002           2007    Pct. Chg.
 Acadiana                  273,310        312,584         14%
 Baton Rouge               416,429        474,906         14%
 Houma                     103,742        123,759         19%
 Houston                 2,923,161      3,396,144         16%
 U.S.                  166,633,100    180,943,800          9%



Per capita income has grown rapidly in Acadiana partly because of the faster
growth in jobs than population. However, Houma has been the leader among the
four competitor regions in percentage gains in per capita income (Table 3).



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                June, 2009




Absolute change in per capita income in Houma exceeded Baton Rouge and
Acadiana in 2007 for the first time. Houma is the only one of the communities
that has matched Houston in terms of absolute per capita income growth.

Table 3. Per Capita Income Trend

 Area                      2002            2007    Pct. Chg.    Change ($)
 Acadiana            $   23,709     $    32,991         39%      $  9,282
 Baton Rouge         $   25,973     $    34,236         32%      $  8,263
 Houma               $   24,344     $    35,903         47%     $ 11,559
 Houston             $   34,517     $    46,471         35%     $ 11,954
 U.S.                $   30,838     $    38,615         25%      $  7,777



The economic base in the Acadiana region witnessed some significant changes
since 2001 (Table 4).

Specialty hospital and general merchandise stores have added about 2,500 jobs in
the region since 2001, and the region now has a much larger share of national
employment in these categories than in 2001. The region also witnessed a
diversification of employment in pipeline transportation and added significant
employment in seafood production and arts/sports promotion although the
region did not add any new facilities in those industries.

The region witnessed large losses of employment and a big decline in
competitiveness in six of its traditional industries. Smaller employment losses
with big competitive declines occurred in another seven industries.

These competitive shifts in Acadiana’s traditional economic base are troublesome.
Taimerica believes that the shifts have most likely been precipitated by a lack of
skilled workforce in these industries. Fabricators, shipbuilders, and food
manufacturers would probably have witnessed faster growth rates in Acadiana if
their workforce needs had been met. Some of these general trends are more
understandable in the context of this competitive assessment.




Locational Strengths and Weaknesses for Acadiana Economic Development                        4
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                      June, 2009



Table 4. Acadiana Economic Base Changes Since 2001

                                                 Estab Chg.      Empl Trend       Net Empl.      Competitive
 Industry Sector                                    2001-06      2001-06 (%)           Gain          Shift*
 Big Employment Gains with Big Competitive Gains
 Specialty (except Psychiatric and Substance
                                                           2           2198%             989             17.4
 Abuse) Hospitals
 Other General Merchandise Stores                          6            358%           1653                3.3
 Big Competitive Shifts with Small Employment Gains
 Other Pipeline Transportation                             4            156%              14               2.3
 Seafood Product Prep. and Pkg.                            0            250%              90               3.7
 Other Chemical Product and Prep. Mfg.                    -1             42%              57               1.5
 Promoters of Performing Arts, Sports, and
                                                           0            110%              96               1.6
 Similar Events
 TOTAL GAINS                                                                           2899
 Big Employment Loss with Big Competitive Declines
 Inland Water Transportation                               1            -49%            -408               0.4
 Other Fabricated Metal Product Mfg.                       0            -69%            -531               0.3
 Cut and Sew Apparel Manufacturing                         1            -79%            -485               0.4
 Other Support Services                                   -8            -98%            -814               0.0
 Dairy Product Manufacturing                               0           -100%            -375               0.0
 Veneer, Plywood, & Engr. Wood Prod. Mfg.                  0           -100%            -375               0.0
 Smaller Employment Loss with Big Competitive Declines
 Oil and Gas Extraction                                   -7            -24%            -206               0.6
 Ship and Boat Building                                    3            -37%            -263               0.6
 Other Food Manufacturing                                 -1            -44%            -212               0.5
 Other Textile Product Mills                               0            -54%            -140               0.5
 Petroleum and Coal Products Mfg.                          1            -56%            -230               0.4
 Natural Gas Distribution                                 -2            -64%            -154               0.4
 Other Nonmetallic Mineral Product Mfg.                   -2            -82%            -116               0.2
 Smaller Employment Loss with Moderate Competitive Decline
 Gambling Industries                                       6            -35%            -140               0.6
 Basic Chemical Manufacturing                              1            -40%            -120               0.7
 Cement and Concrete Product Mfg.g                        13            -31%            -130               0.6
  TOTAL LOSSES                                                                          -4699
*LQ (Location Quotient) 2006 divided by LQ 2001. A competitive shift of 2.0 indicates region had grown twice the rate of
the nation since 2001; a shift of 0.6 means the region has 60% of the national employment it had in 2001.
NOTE: Only includes industries that are part of the economic base (those which have a LQ > 1.0)




Locational Strengths and Weaknesses for Acadiana Economic Development                                                              5
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 June, 2009




                               INTRODUCTION
Taimerica has been retained by Acadiana Economic Development (AED, Team
Acadiana) to conduct an assessment of the region from the perspective of a
business investor and employer. The purposes of this assessment are to
understand barriers that might limit the expansion of existing cluster industries
or the growth and formation of new employment opportunities within the region
over the next decade.

The sources of information for this assessment are varied. They include surveys
and interviews with local employers, selected government officials, utilities, real
estate brokers, education representatives, and others. Taimerica also gathered
statistical information and reviewed previous studies and available local data.

Consultants completed on-site interviews with 15 of the region’s largest
employers during April 2009. Companies selected for interview, upon the
recommendation of AED partners, were those with recent hiring experience or
that represented some of the largest employers or key cluster industries within
the region. Interviewees were located in each of the parishes within the region
and represent a geographic as well as statistical sample of opinions in the region.
Interview questions were designed to collect opinion on the business climate and
operating conditions within the region for companies that have a wide latitude in
their geographic locations. Taimerica, in other words, was looking for opinions
that would allow us to identify the types of company functions and industries
that would be most responsive to investment in the region. The interviews were
confidential and our team covered the same topics and questions used in site
selection assignments. Companies completing the interviews had a combined
employment of 5,700.

Our methodology includes a comparison of Acadiana Parishes with other
communities in Louisiana and Texas, specifically Baton Rouge, Houma, and
Houston, that typically compete with the region’s parishes for business
investment. The active economic development professionals in the region were
the source of the competitor list.

All of this input was combined with our past corporate siting/economic
development experience. The information and knowledge gained from these
sources will be incorporated into the target marketing process that is being
undertaken to further the economic development of the region.



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448             June, 2009




The assessment involved all of the issues that business location consultants
typically consider in a siting project. Among these factors are the following:

       Quality of Life
       Business Climate
       Market Access
       Workforce and Training
       Transportation
       Utilities
       Real Estate
       Technology Resources and Startup Support
       Natural Resources

The following is a summary of what Taimerica believes to be the major strengths
(assets) and weaknesses (liabilities and limitations) from an economic
development perspective, based on our long-standing involvement in site
selection and economic development.




Locational Strengths and Weaknesses for Acadiana Economic Development                     7
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           June, 2009




                                  QUALITY OF LIFE

          SIGNIFICANCE
          As companies seek to recruit and retain more professionals and managers,
          the issue of housing cost and availability, community attractiveness,
          cultural-recreational assets, and the general cost of living become
          increasingly important. This location factor generally becomes most
          important in the analysis of final candidate communities for a new facility.
          While cost factors remain important in the location decisions of companies,
          quality of life plays an increasingly critical role. Executives want to live in
          desirable communities, and a good quality of life makes it easier to attract
          and retain the best employees.



Company managers and executives interviewed by Taimerica mentioned that the
quality of life for families in this region is an attraction. The following section lists the
particular aspects of quality of life that investors evaluate in choosing locations.

                                    QUALITY OF LIFE
        Strengths                      Neutrals                          Weaknesses
Recreation & Cultural Amenities   K-12 Education
Health Care                       Public Safety and Crime Rates
Higher Education
Cost of Living and Housing


STRENGTHS

Recreational and Cultural Amenities

Acadiana is home to a unique culture of food, music, and joie de vivre. The
region has numerous restaurants, music venues, festivals, several varieties of
Mardi Gras festivities in Lafayette and the surrounding towns, parks, arts,
theaters, and living history museums. Specific destinations include Avery Island
(home to Tabasco), the Acadian Village, Jean Lafitte National Park Acadian
Cultural Center, Evangeline State Park, Vermilionville, and the Heymann
Performing Arts Center. The internationally renowned artist George Rodrigue is
from Lafayette, and the Rodrigue Art Gallery and his blue dogs are common
features in the area. The University of Louisiana – Lafayette provides sports
entertainment with the Cajundome. Lafayette is the retail hub for Acadiana, with



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




 a mall with more than 120 stores, hundreds of boutiques, and many national
 retailers.



 Health Care

 Lafayette is a regional health care center for Acadiana with high quality health
 care services. Hospitals with referral specialists include the Louisiana State
 University Health Sciences Center (a teaching hospital with 150 beds), the
 Lafayette General Medical Center (301 beds), the largest full-service acute-care
 medical center in Acadiana, and Our Lady of Lourdes Regional Medical Center
 (263 beds). The Oil Center, once home to large and small oil companies and
 independent geologists and geophysicists, could now easily be called the Medical
 Center. Currently all five major medical facilities are in an expansion mode with
 a permitted value of over $200 million dollars.

 Acadiana has a bigger concentration of physicians, on a per capita basis, than the
 competitor communities we analyzed (Table 5), yet health care costs are 10
 percent lower than in the competitor communities, which is an ideal situation.
 Health care costs are the central issue in determining the cost of health insurance
 premiums that employers pay. The index of costs for Acadiana suggests that the
 region has a productivity and cost advantage in employee benefits over the other
 four regions we analyzed.

 Health care was mentioned in employer interviews as a good situation in the
 region.

 Table 5. Comparative Health Care Measures in 2007

                                Physicians    Health
                                per 100,000    Cost
Area                            population    Index
Acadiana Region                    301.9        90
Baton Rouge MSA                    288.8        97
Houma MSA                          147.1       100
Houston MSA                        269.7       105
 Source: Best Places




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   June, 2009




Higher Education

The Acadiana region is home to two institutions of higher learning, the four-year
University of Louisiana at Lafayette (ULL) and Louisiana State University in
Eunice. The South Louisiana Community College is also in the region. ULL, the
second-largest university in the state, has an enrollment of over 17,000 students
and areas of excellence that include Louisiana and Deep South Studies,
Computing and Telecommunications, Cultural and Eco-Tourism, Environmental
Sciences and Biodiversity, Health Informatics, and Cognitive Science. The
university has a major graduate school and awards PhD degrees in eight
departments. Other assets include a 600-acre renewable resources laboratory, a
48-acre primate research center, and the University Research Park housing a
NASA Regional Application Center, a division of the National Oceanic and
Atmospheric Administration, the National Wetlands Research Center, the
Lafayette Economic Development Authority, and the Louisiana Immersive
Technologies Enterprise (LITE).



Cost of Living and Housing

Cost of living has become an important issue in facility location. Companies
needing to recruit nationally, especially companies located on the East or West
Coasts of the U.S., often lose good job candidates because of differentials in cost
of living. For this reason, companies now look closely at the cost of living as one
factor in facility location.

Housing is the single largest component in cost of living. The cost of housing in
Acadiana is higher than in the competitor communities, yet below the average for
the U.S. (Table 6). The overall cost of living is lower than in the competitor
communities and 17 percent below the U.S. average. The food and utilities
component of the cost of living index are much lower in Acadiana than in the
balance of Louisiana communities and somewhat lower than in Houston. We rate
cost of living and housing as strengths for Acadiana. Families moving to the
region from the rest of the U.S. would see the cost of living as an attraction in the
region. In addition, homes have maintained their value despite declines
elsewhere in the nation, as illustrated in Table 6. Home values in November, 2008
in Acadiana were 98.8% of the value they had at the time of the peak in the
national average home values.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                         June, 2009



 Table 6. Comparative Cost of Living and Housing in 2007

                                                                               Median         Nov. 2008
                                Cost of    Food          Utilities   Trans.     Home       Relative to Peak
Area                            Living     Index          Index      Index    Price ($)*     in Nat. Avg.
Acadiana Region                   83         92             87        100      130,675           98.8
Baton Rouge MSA                   89        104            123        105      172,537           111.1
Houma MSA                         86        104            114        103        n/a              n/a
Houston MSA                       86         94             95        104      154,800           105.2
U.S.                             100        100            100        100        n/a             100.0
 Source: Best Places
 Notes: The Median Home Price is as of November, 2008.
        The Indexes are as of October, 2007.




 NEUTRALS

 K-12 Education

 The quality of local education is one of the most important quality-of-life factors
 evaluated in the business location process. Companies know that strong school
 systems make it easier to recruit and attract key management employees. They
 also contribute to improving the skills base of the local workforce. Corporate site
 selectors pay particular attention to the comments of local employers when
 evaluating the quality of public education. Acadiana public schools rank above
 the Baton Rouge and Houma schools with respect to ACT and LEAP scores and
 are comparable to Houston schools.

 Graduation rates in the region are above those in Baton Rouge and Houma but
 below U.S. and Houston rates (Table 7). The graduation rate shown for Acadiana
 is a weighted average across the seven parish region, but rates vary from school
 to school, from as low as 46 percent to as high as 89 percent. ACT scores of
 college bound students are good for Louisiana but below the average for the U.S.
 Acadiana schools do well on the LEAP test in match and communications,
 suggesting that students are better prepared on average for the workforce or
 higher education than their counterparts in Baton Rouge and Houma.

 These data represent students in the public school system. Acadiana is also home
 to significant educational resources provided by the Catholic Diocese, and
 generally site selectors won’t have ready access to these data.




Locational Strengths and Weaknesses for Acadiana Economic Development                                                11
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                           June, 2009



 Table 7. Comparative Education Measures in 2006-2007

                                                                                               LEAP/TAKS*
                                                   No.         Pct.      Grad.                   8th      8th
                                      H. S.    College     College        Rate    Comp.       Grade    Grade
Area                                Grads       Bound       Bound        (%)**      ACT        Math   Comm.
Acadiana Region                      4,986       1,994        40.0        65.2     20.4           65       59
Baton Rouge MSA                      5,477       2,125        38.8        60.6     19.5           57       55
Houma MSA                            1,927         701        36.4        59.5     19.8           54       48
Houston MSA                         54,433          n/a         n/a       76.8     20.1           64       86
U.S.                                   n/a         n/a          n/a       71.0     20.9          n/a      n/a
 Sources: National Center of Education Statistics, Louisiana Dept. of Education, Houston ISD
 *Percent of students Passing (Texas TAKS) or meeting Basic and Above standards (Louisiana’s LEAP).
 **Graduation rates in are for Lafayette Parish, West Baton Rouge Parish, and Terrebonne Parish.




 We rate K-12 education as a neutral in Acadiana. Schools in Acadiana are
 comparable to those in oil centers like Houston but could be a serious issue for
 families relocating from areas such as Colorado, California, the East Coast of the
 U.S., Europe, or Asia.



 Public Safety and Crime Rates

 Acadiana exhibits violent crime rates comparable to their competitors and
 property crime rates somewhat higher than their competitors (Table 8). We rate
 crime rates as a neutral overall.

 Table 8. Comparative Crime Rates in 2007
           (per 1,000 population)

                                                Violent           Property
 Area                                           Crime              Crime
 Acadiana Region                                 11.3               62.3
 Baton Rouge MSA                                 11.4               59.7
 Houma MSA                                       10.4               49.7
 Houston MSA                                     11.3               56.8
 Source: FBI Uniform Crime Reporting Program, 2007




Locational Strengths and Weaknesses for Acadiana Economic Development                                                  12
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           June, 2009




                              BUSINESS CLIMATE

         SIGNIFICANCE
         Business climate is one of the most important factors in business location
         decisions. As the differential in costs for labor and traditional inputs
         becomes smaller around the country, intangible factors, such as whether
         business sees local government as helpful, indifferent, or hostile, becomes
         even more important as a factor in location decisions. How business is
         treated on a day-by-day basis is the essence of business climate.




Business climate has become more important than ever in business location
decisions, and the strengths, weaknesses, and neutral factors in business climate
are summarized here.

                                BUSINESS CLIMATE
        Strengths                    Neutrals                         Weaknesses
Lack of Unions                 Local & State Taxes              Lack of Community Visions and
                                                                   Plans
Labor-Management Relations     Local Regulations & Permitting   Community Health
Worker’s Comp Costs and        Tax Incentives
   Enforcement
Government Cooperation with
   Business




STRENGTHS

Lack of Unions

Business investors tend to avoid regions with a high concentration of unions,
particularly if the region has a history of work stoppages. Acadiana has fewer
unions than most Gulf Coast communities. Employers we interviewed had not
experienced any work stoppages or organization attempts.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    June, 2009




Labor-Management Relations

Employers we interviewed enjoyed good relationships with their workers and felt
that labor-management relations were good to very good. Problems with labor-
management relations have not surfaced in the 200+ existing industry visits made
using the Synchronist survey since 2005.



Worker’s Comp Costs and Enforcement

Most issues with worker’s compensation are a function of state regulation and
statute. Companies we interviewed did not mention any issues with worker’s
compensation costs or enforcement. The situation in Acadiana is better than we
have found in other regions where we conducted similar projects.



Government Cooperation with Business

Companies we interviewed felt that governments in Acadiana were business
friendly yet they did not always understand the needs of business in the region.



NEUTRALS

Local and State Taxes

States and communities tax assets, inventories, sales, net income, and purchases
of supplies, power, and consumables (other than raw materials) in different ways,
making it difficult to accurately gauge tax bills in different jurisdictions. Business
tax policies vary greatly between communities, and state taxes and incentives
increasingly determine the winners in the ultimate round of location studies. Tax
rates, particularly on buildings, equipment, and inventories, can be the most
critical location factor in warehousing and distribution activities, but they have
limited impact on office sector targets. In short, tax rates are an important issue in
business climate that should be reviewed prior to targeting. The tax rates shown
assume that companies are not receiving any tax incentives (Table 9).




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                            June, 2009



 Table 9. Comparative Tax Rates

                                                                                      Effect.
                              Parish Seat           State                             Prop.
                               Sales Tax           Personal        State Corp.      Tax Rate
Area                       (state + local, %)   Income Tax (%)   Income Tax (%)   ($/$100 FMV)
Acadiana Region                   8.00                6.0              8.0             1.03
Baton Rouge MSA                   9.00                6.0              8.0             1.02
Houma MSA                         8.50                6.0              8.0             1.37
Houston MSA                       8.25                 0               5.0             2.39
U.S.                              6.00               5.02              n/a             n/a
 Source: Various Sources




 Sales taxes are lower in Acadiana than in the other competitor communities.
 Property taxes are comparable to rates in Baton Rouge and significantly below
 rates in Houma or Houston. State income taxes are equal to those in other
 Louisiana communities but significantly above those in Texas. Our overall
 assessment is that tax rates in Acadiana are a neutral, neither a locational
 advantage nor disadvantage.

 Local Regulations and Permitting

 Business and industry have many locational alternatives when deciding where to
 make their investment. Time is money. If a community places impediments to
 the development process, those investment dollars will be placed elsewhere. In
 addition, the community will gain a reputation as a difficult place to do business,
 further impeding other business opportunities. Most of the regulatory issues that
 affect business are at the state level. Businesses we surveyed and interviewed did
 not identify any specific problems with local regulations and permitting for
 utilities or zoning.

 Tax Incentives

 Various incentives are available at the Federal, state, and local level. These
 include Louisiana's Quality Jobs Program, which provides up to a six percent
 cash rebate of new eligible payroll, and the Enterprise Zone program, in which
 qualifying businesses are eligible for a one-time tax credit for $2,500. Other
 benefits include the Freeport Law, which permits most manufacturers to bring
 raw materials into the state without having to pay a tax on them until after they
 have been placed in the manufacturing process, and the Industry Assistance
 Program, which provides a preferential tax exemption to existing Louisiana
 manufacturers and suppliers. Additional tax exemptions could include the



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




corporation franchise tax, state sales and use taxes on goods necessary for
production, state sales and use taxes on machinery and equipment, or the
corporation income tax. Local incentives include the Industrial Property Tax
Exemption, which permits new and expanding manufacturing operations or
expansions to be exempt from local property taxes on new construction or
additions to existing buildings, or the purchase of permanently fixed equipment
and machinery.

Louisiana grants more generous property tax incentives than Texas communities.
While the need to have incentives approved by the Board of Commerce and
Industry in Louisiana is more cumbersome than the process in states like
Oklahoma that make them automatic under statute, Louisiana’s system is more
competitive than Texas’ in length and percentage of exemptions granted. The
Quality Jobs program in Louisiana has not been duplicated in Texas, but Texas
communities typically can provide cash incentives to companies from the 4(a)
and 4(b) sales tax programs to compete with Quality Jobs. The Comptroller of the
Currency in Texas reports than the sales tax corporations granted $105 million of
direct cash incentives to companies in 2006 and an additional $90 million in 2007.

Taimerica rates tax incentives as a competitive neutral in Acadiana.



WEAKNESSES

Lack of Community Visions and Plans

Communities that lack planning and zoning frequently suffer from traffic
congestion and shortages of basic utility services required to operate plants.
Communities that ignore the need to plan for new growth often find that quality
of life declines with growth and companies want to avoid being blamed for the
traffic and land use battles that occur when they locate in unplanned jurisdictions.
Without a legally adopted master land use plan in a community, companies face
litigation and delay from neighbors who may try to block their plans for building
facilities. Lack of zoning and planning can serve as “knock-out” factors in
location decisions.

Major corporations worldwide devote significant resources to long-range
planning. Executives evaluating communities for facilities also see up-to-date
community planning as a critical element in a progressive community.



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 June, 2009




Communities that lack long-range plans tend to under-invest in infrastructure
and therefore create congestion or operational issues for business mangers. Long-
range planning and zoning are now considered essential elements in desirable
communities.

The lack of community visions and plans was sometimes mentioned in our
interviews as an issue for business expansion. Issues with transportation and
infrastructure were mentioned frequently in Synchronist surveys conducted
between 2005 and 2008 and these issues reflect a lack of community planning. We
rate this issue as a weakness overall in Acadiana although the level of planning is
better in some parishes than in others.

Community Health

The health of the workforce in a region is an important factor in the productivity
of the regional workforce as well as in determining the cost of health insurance
coverage for workers. The health picture in Acadiana is not as favorable as in
Houma or Houston but is comparable to Baton Rouge. Parishes in Acadiana are
typically in the bottom half of U.S. metros in terms of life expectancy
improvement in the last 15 years (Table 10).

Table 10. Health Indices in Acadiana and Competitor Communities

                                                                     Index
                                                                    (1=best,
ACADIANA                                                           4=worst*)
 Acadia                                                                3
 Evangeline                                                            3
 Iberia                                                                3
 Lafayette                                                             4
 St. Landry                                                            1
 St. Martin                                                            2
BATON ROUGE
 Ascension                                                               3
 East Baton Rouge                                                        3
 Livingston                                                              4
 West Baton Rouge                                                        3
HOUMA
 LaFourche                                                               1
 Terrebonne                                                              2
HOUSTON
 Harris                                                                  1
*Parishes rated 4 typically have a declining or static life expectancy
** Based on increases in life expectancy over 15 years




Locational Strengths and Weaknesses for Acadiana Economic Development                        17
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                            June, 2009




                               MARKET ACCESS

        SIGNIFICANCE
        Logistics costs are an important component of operating costs in plants that
        produce consumer products and bulky industrial materials such as plastic
        pipe and sheet. The majority of new manufacturing operations are located
        in the geographic center of their markets because of logistics considerations,
        and site consultants normally pinpoint the region of operations before
        looking at specific sites and cities. Manufacturing market access is
        measured with transportation cost models that estimate logistics costs for
        national, regional, and multi-state territories.         These models are
        supplemented with comments and observations of area businesses.

        Market access also is important to the tourism industry, regional retailers
        and other consumer service companies, since access to customers is the
        primary consideration in the success of consumer-oriented business.




Market access is cited by site consultants as being more important than ever, and
the strengths and weaknesses identified by Taimerica related to business location
are summarized here. A general overview of the situation follows.

                                   MARKET ACCESS
        Strengths                     Neutrals                          Weaknesses
Access to Global Markets                                          National Market Access
                                                                  Distribution Center Location




STRENGTH

Access to Global Markets

Acadiana is located near the Port of Lake Charles, a deepwater port for export of
agricultural and bulk products. Manufacturers in Acadiana also have access to
global container shipping services at New Orleans and Houston. The shallow
draft ports in the region offer companies an outlet for ocean shipping of heavy lift



Locational Strengths and Weaknesses for Acadiana Economic Development                                   18
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   June, 2009




and oversize cargoes to Gulf of Mexico locations, Mexico, and South America via
ocean barge. Access to global markets via water routes is a competitive
advantage of Acadiana. The region also has access to global markets through air
freight services. Stuller Settings in Lafayette is such a large volume air cargo
shipper that it has opened up daily international service to global destinations for
other manufacturing companies in Acadiana.



WEAKNESSES

National Market Access

Distribution-sensitive companies with a single distribution or production center
evaluate freight costs carefully. Acadiana, because of its location, has higher
distribution costs to national markets than Chicago, Atlanta or Memphis (Map 1).
The cost differential is about 30 percent when compared to Cincinnati, Ohio, the
nation’s lowest cost distribution site. Some assembly industries, such as truck
and autos, also look carefully at logistics costs in their site evaluations. Acadiana
is not in a favorable position for recruiting these types of industries.




Locational Strengths and Weaknesses for Acadiana Economic Development                          19
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448              June, 2009



Map 1. National Distribution Costs




Source: Taimerica




Distribution Center Location

As the U.S. economy globalizes, distribution centers are growing as a source of
jobs because companies import more of their products and subassemblies, rather
than make them in U.S. plants. Distribution centers typically locate near the
intersection of North-South and East-West interstate highways. The population
within the region they serve is an important location factor for regional
distribution centers, which typically serve a radius of 200 to 250 miles.

The distribution radius for Acadiana is limited by its location near the Gulf of
Mexico and away from major population concentrations on the Gulf Coast (Map
2). While Acadiana can serve a larger population than Baton Rouge or Houma, it
clearly has less potential for regional distribution than Houston (Chart 1).




Locational Strengths and Weaknesses for Acadiana Economic Development                     20
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448        June, 2009



Map 2. Population Within 250 Miles of Lafayette




Source: Taimerica with Census data




Chart 1. Population from Center of Each City


     Lafayette


  Baton Rouge
                                                                     50
                                                                     miles
                                                                     100
        Houma
                                                                     miles
                                                                     150
                                                                     miles
      Houston


                 -      5,000,000 10,000,000 15,000,000 20,000,000
Source: Taimerica




Locational Strengths and Weaknesses for Acadiana Economic Development               21
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                        June, 2009




The population distribution within 250 miles of a community determines the cost
of distribution from that location (Chart 2). In the case of Lafayette, the cost per
customer is higher than for any of the competitor locations. This location factor is
rated as a weakness for Acadiana.

Chart 2.         Distribution Cost Index Within 250 miles of Each City



       Lafayette



   Baton Rouge



         Houma



        Houston


                 0.00       0.50      1.00       1.50       2.00      2.50       3.00       3.50

Note: Customer Cost Index is the average cost of serving customers within 250 miles of each center. The index is based
on the assumption that it costs $1.00 per customer to delivery for each 50 miles of distance from the distribution center.
Source: Taimerica




Locational Strengths and Weaknesses for Acadiana Economic Development                                                               22
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                         June, 2009




                    WORKFORCE AND TRAINING

         SIGNIFICANCE
         The mix of skills in manufacturing and offices has changed as U.S.
         companies become more capital intensive. Much of the unskilled work of
         yesterday is now done offshore, leaving just the skilled work in America’s
         factories and offices. The availability of skilled workers has become a critical
         factor in the location of factories, often exceeding the cost of labor as a
         screening variable. Office operations are attracted to locations with an
         abundance of workers with computer and administrative skills. Low
         turnover and absenteeism also are important factors for office and
         manufacturing operations as most companies operate without a redundancy
         of workers.




Taimerica has identified the following strengths and weaknesses in its assessment
of the regional workforce and training institutions in Acadiana.

                           WORKFORCE AND TRAINING
        Strengths                 Neutrals                               Weaknesses
Worker Productivity and                                           Workforce Training
    Labor Relations
College Educated Workforce                                        Availability of Unskilled
                                                                      Workers
Manufacturing Wages and                                           Static Labor Pool
    Workforce
Manufacturing Skills                                              Educational Attainment
    Availability
Office Sector Wages and                                           Shortage of Skilled
    Labor Supply                                                     Manufacturing Workers




STRENGTHS

Worker Productivity and Labor Relations

Labor productivity and labor/management relations are critical to all site location
projects since labor continues to be the major cost element in most operations.
The labor situation is one of the first things taken into consideration when



Locational Strengths and Weaknesses for Acadiana Economic Development                                23
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   June, 2009




companies and location consultants look at an area. Labor productivity is
analyzed in several ways, including composition of the labor force, absenteeism
and turnover rates, and employer comments. Employers we interviewed
mentioned issues with recruiting unskilled workers, except in St. Landry Parish.
Many employers have resorted to recruiting H-1B or H-2B visa workers from
Mexico or Eastern Europe to fill positions.

Productivity of the Acadiana workforces was judged as good, however. The
stability of the workforce is assessed during AEDC’s Synchronist surveys, which
is an objective measure of turnover. Stability has been rated as 3.88 on a 4 point
scale in the last year versus a rating of 3.08 following Hurricane Katrina. The
slowdown in the oil patch has apparently moderated labor force issues. The
proportion of the applicant pool failing drug screening was generally estimated
as five to ten percent by employers we interviewed versus rates estimated as high
as 40 percent during previous rounds of Synchronist surveys.



College Educated Workforce

The Acadiana region is home to several institutions of higher learning, including
the four-year institutions of the University of Louisiana at Lafayette and
Louisiana State University in Eunice. Employers were happy with graduates they
had recruited for entry level positions. The region has a larger pool of new
graduates in computer and information sciences, engineering, and business, on a
population adjusted basis, than Houston and Houma and is comparable to Baton
Rouge in those fields (Table 15, Codes (rows) 11, 14, and 52).



Manufacturing Wages and Workforce

Labor costs are among the most critical cost factors in an industrial location
decision. Labor is a major cost, typically accounting for 35 percent or more of
operating costs in factories. As a result, labor costs are closely scrutinized in the
site selection process.

In terms of overall costs for manufacturing operations, Houma and Acadiana are
slightly cheaper than Houston but ten percent cheaper than Baton Rouge. The
larger union presence in Baton Rouge affects manufacturing wage rates there
(Table 11).



Locational Strengths and Weaknesses for Acadiana Economic Development                          24
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           June, 2009



Table 11. Comparison of Benchmark Wages in Manufacturing ($/year)

    Code       OCC_TITLE                           Acadiana   Baton Rouge    Houma    Houston
   47-2111     Electricians                          33,240         39,230   49,590    41,400
   49-9041     Industrial mach. mechanics            33,710         46,640   47,140    44,530
   51-4041     Machinists                            36,180         41,300   32,000    33,630
   51-9111     Packaging machine operators           20,120         21,040      n/a    24,110
   53-3032     Truck drivers, heavy                  30,980         32,940   28,400    34,800
   53-7051     Industrial truck operators            25,600         26,920   31,270    26,330
   53-7062     Laborers and material movers          19,980         20,910   20,390    21,140
               Average                               27,762         31,625   31,840    30,757
               Percent of Lowest Cost                 100%           114%     115%      111%
Source: Compiled from BLS databases for May 2007




Manufacturing Skills Availability

Acadiana has a larger pool of industrial skills than Houma but trails Baton Rouge
and Houston in sheer size of the trained talent pool for manufacturing (Table 12).
Manufacturing skills are more concentrated in the Acadiana talent pool than
nationally but are less concentrated than in Houston or Houma. The breadth of
talent (the percentage of national manufacturing occupations in the regional
workforce) is narrower in Acadiana than in Baton Rouge or Houston and the high
skill mix is lower than in Baton Rouge and Houston. These indices suggests that
Acadiana is less favorable for specialized manufacturing needing to recruit large
pools of talent outside of the metalworking trades than Houston but is
competitive with Houma and Baton Rouge.




Locational Strengths and Weaknesses for Acadiana Economic Development                                  25
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                         June, 2009



Table 12. Manufacturing Benchmark Occupations in Acadiana and
Competitor Communities in 2007 with Taimerica Indices

   Code       OCC_TITLE                                        Acadiana   Baton Rouge    Houma    Houston
  47-2111     Electricians                                          700          2,550      440    14,830
  49-9041     Industrial mach. mechanics                          1,200            830      450     8,050
  51-4041     Machinists                                          1,290          1,040      690    14,370
  51-9111     Packaging machine operators                           150            390      n/a     5,060
  53-3032     Truck drivers, heavy                                1,900          3,930    1,200    30,210
  53-7051     Industrial truck operators                            390          1,360      310    11,030
  53-7062     Laborers and and material movers                    3,050          7,720    4,060    41,900

              TOTAL                                               8,680         17,820    7,150     125,450
              Total Workforce                                   143,340        358,940   92,410   2,483,710
              TMC High skills index                               109%           229%      79%        210%
              Taimerica Concentration Index (All
              Manufacturing occupations as% of Labor              105%            81%     149%        116%
              Market)
              Taimerica Manufacturing Breadth Index (% of
              manufacturing occupations in U.S. workforce          35%            52%      28%        91%
              within regional workforce
              Taimerica Manufacturing Cost Index (cost of
              manufacturing labor in region as a percent of       123%           145%     122%        131%
              national average cost for the same skill sets)




Office Sector Wages and Labor Supply

Wages in offices typically account for a larger share of variable costs than in
manufacturing. While many offices locate based on convenience to customers or
markets, a growing share of offices in shared services, claims processing, and
technical assistance are driven by cost considerations. Wages in Acadiana for
benchmark positions assessed in office studies are comparable to those in Baton
Rouge and Houma but below wages in Houston (Table 13).

Table 13. Comparison of Office Benchmark Wages ($/year)

   Code       OCC_TITLE                            Acadiana    Baton Rouge      Houma      Houston
  41-2031     Retail Salespersons                    26,250          21,630     21,060      23,940
  43-3071     Tellers                                20,200          20,370     21,480       24,840
  43-4051     Cust. Service Reps                     25,100          24,740     24,930       29,960
  43-4171     Receptionists and info. clerks         19,510          21,130     21,040       23,410
  43-6014     Secretaries, ex legal, medical         24,060          25,400     23,630       27,380
  43-9041     Ins. claims proc. clerks                  n/a          27,650        n/a       30,830
              Avg ex claims proc. clerks             23,024          22,654     22,428       25,906
              Percent of Lowest Cost                  103%            101%       100%         116%
Source: Compiled from BLS databases for May 2007




Locational Strengths and Weaknesses for Acadiana Economic Development                                                26
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                       June, 2009




The size of the office workforce is smaller in Acadiana than in Baton Rouge and
Houston for the benchmark positions but is comparable in concentration to Baton
Rouge (with its large state government office workforce) and Houston. The
breadth of skills is narrower than in Baton Rouge (which can be important in
shared services projects) but is more moderate in terms of costs, on an apples-to-
apples basis, than Houston and comparable to Baton Rouge and Houma. The
concentration of high skill office jobs in Acadiana is comparable to those in the
competitor regions (Table 14).

Table 14. Office Benchmark Occupations in Acadiana and Competitor
Communities in 2007 with Taimerica Indices

   Code     OCC_TITLE                                       Acadiana    Baton Rouge    Houma    Houston
  41-2031   Retail Salespersons                                4,280          10,990    2,890    77,850
  43-3071   Tellers                                              880           1,850      580     9,130
  43-4051   Cust. Service Reps                                 2,310           6,200      960    49,510
  43-4171   Receptionists and info. clerks                     1,630           2,980      800    20,810
  43-6014   Secretaries, ex legal, medical                     3,120           5,980    1,830    45,280
  43-9041   Ins. claims proc. clerks                              n/a            500      n/a     2,690

            TOTAL                                             12,220          28,500    7,060     205,270
            Total Workforce                                  143,340         358,940   92,410   2,483,710
            TMC High Skills index                               95%             99%      99%         99%
            Taimerica Office Concentration Index (All
            Office occupations as% of U.S. Labor                97%             94%      77%       106%
            Market)
            Taimerica Office Breadth Index (% of office
            occupations in U.S. workforce within regional       76%             90%      65%        99%
            workforce
            Taimerica Office Cost Index (cost of office
            labor in region as a percent of national           129%            124%     121%       155%
            average cost for the same skill sets)




Overall the office workforce is a locational strength in Acadiana.



WEAKNESSES

Workforce Training

The Louisiana Technical College system is responsible for providing trained
workers for Louisiana business and industry while the state’s four year colleges
generate the talent pool to fill management and technical positions. The number
of students graduating with industrial craft skills, maintenance trades, and
metalworking skills is smaller than in Baton Rouge and Houston (Table 15, Codes
(rows) 46-48). On a population weighted basis, the ratios are lower in industrial


Locational Strengths and Weaknesses for Acadiana Economic Development                                              27
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448              June, 2009




crafts than in Baton Rouge and Houma but comparable in the other two
categories.

Employers that were interviewed mentioned frequently that they did not recruit
entry-level workers from the technical college system. These responses came
from employers throughout the region and were not concentrated in any single
college jurisdiction. Several mentioned that they had tried in the past but that
applicants lacked the entry-level skills that they needed or could not pass drug
tests. The same issues have surfaced in AEDC’s Synchronist interviews.




Locational Strengths and Weaknesses for Acadiana Economic Development                     28
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                              June, 2009



Table 15. No. of Graduates by Program of Study in Acadiana and
Competitor Communities in 2007

                                                                        Houma               Houston
                                                   BR MSA                  MSA                  MSA
                            Acadiana                  Post-   Baton       Post-                Post-
                              Region      Acad.        sec.   Rouge        sec.   Houma         sec.    Houston
        Broad               Post-sec.     per 1     Grads,     per 1    Grads,     per 1     Grads,        per 1
        Programs of            Grads,    million        all   million       all   million         all    million
 Code   Study               all levels     pop.      levels     pop.     levels     pop.      levels       pop.
  10    Communications               6     11.2          22     28.6          0       0.0        155        27.7
        Computer and
  11                              175     325.2        271      352.2       13       64.7       1007       179.9
        Info Sciences
  12    Cosmetology, etc          195     362.4        299      388.6       96      477.6       1646       294.0
  13    Education                 309     574.3        808     1050.2      134      666.6       1295       231.3
  14    Engineering               166     308.5        567      736.9        0        0.0        803       143.4
        Technology at
  15    BS and AA                 123     228.6        202      262.5       86      427.8       1282       229.0
        Levels
        Foreign
  16                               13      24.2         78      101.4        1        5.0        179        32.0
        Languages
        Family &
  19                              102     189.6        106      137.8       47      233.8        490        87.5
        Consumer sci.
  22    Law                        20      37.2        363      471.8       11       54.7       1246       222.6
  23    English                    61     113.4        300      389.9       10       49.7        460        82.2
  24    Liberal arts              366     680.2        641      833.1       96      477.6       4146       740.6
  25    Library science             0       0.0         72       93.6        0        0.0         32         5.7
  26    Biology                    72     133.8        508      660.3       36      179.1       1146       204.7
  27    Math & Statistics          20      37.2         95      123.5       10       49.7        332        59.3
        Behavioral
  30                                2       3.7         43       55.9        0        0.0        924       165.1
        sciences
  31    recreation                  0       0.0          0        0.0        0        0.0        313        55.9
  38    Philosophy                  7      13.0         34       44.2        0        0.0         95        17.0
  39    Religion                    0       0.0          0        0.0        0        0.0        307        54.8
  40    Physical sci.              20      37.2        118      153.4        0        0.0        373        66.6
        Physical Science
  41                               21      39.0          0        0.0        0        0.0        345        61.6
        Technology
  42    Psychology                 53      98.5        344      447.1       38      189.0       1280       228.7
  43    Corrections                97     180.3        140      182.0       25      124.4        979       174.9
        Public
  44                                0       0.0        195      253.4        0        0.0        228        40.7
        Administration
  45    Social sciences            62     115.2        497      646.0       36      179.1       1144       204.4
  46    Industrial Crafts          52      96.6        107      139.1       61      303.5        131        23.4
        Elect. & Ind.
  47                              140     260.2        203      263.8       22      109.4       2100       375.1
        Maintenance
        Metalworking
  48                              127     236.0        197      256.0       62      308.4        212        37.9
        Trades
        Aviation &
  49                               55     102.2        214      278.1     1491     7417.2        315        56.3
        Maritime
        Visual & Perf.
  50                               99     184.0        248      322.3       18       89.5        821       146.7
        Arts
        Medicine &
  51                            1435     2667.0       1959     2546.1      644     3203.7     12537      2239.6
        Health Care
  52    Business                  715    1328.9       1371     1781.9      283     1407.8       6927     1237.4
  54    History                    34      63.2        133      172.9        8       39.8        273        48.8
        TOTAL                   4547     8450.9      10135    13172.7     3228    16058.1     43523      7774.8
Source: Compiled by Taimerica from IPEDS database




Locational Strengths and Weaknesses for Acadiana Economic Development                                                     29
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           June, 2009




 Availability of Unskilled Workers

 Employers throughout the U.S. are finding it difficult to recruit unskilled, entry-
 level workers. Most of the supply of such workers is coming from a wave of
 recent immigrants to the U.S. Nearly every one of the 14 employers we
 interviewed mentioned that it was difficult to recruit unskilled workers that
 would show up consistently and punctually for work. The same issue has
 surfaced in AEDC’s Synchronist surveys since 2004, although availability of
 workers was rated 3.26 on a 4 point scale in the last year, versus a rating of 2.51
 following Hurricane Katrina.



 Static Labor Pool

 As the baby boom generation begins to leave the workforce, many communities
 are facing a dwindling workforce. Taimerica calculated the expected change in
 labor force for the competitor regions over the next five years (Table 16). The
 number of retirees is estimated by multiplying the population in the 55 to 64 age
 cohort by the percentage in the labor force. Acadiana has about 61 percent of its
 population in this age range in the workforce, which is lower than in Houston
 (65.9 percent) but much higher than in Houma (52.2 percent) and Baton Rouge
 (55.5 percent). The calculations suggest that pool of workers entering the
 workforce during the next five years just about balances the number that are
 likely to retire. In other words, the labor pool, without significant foreign
 immigration, is likely to be static in Acadiana and the other regions of Louisiana.
 Having a static labor pool is an issue for relocation companies.

 Table 16. Population Entering and Leaving Labor Force, 2006-2007

                            No. of                 Grad.    Entering                    Net
                             H.S.     College       2 yr  labor force Retirees per    impact
                            Grads     Bound       College = (1) – (2)     year       to labor
Area                         (1)        (2)         (3)       +(3)    2007 to 2012     force
Acadiana Region               4,986     1,994       473      3,465       3,010          455
Baton Rouge MSA               5,477     2,125       874      4,226       3,790          436
Houma MSA                     1,927       701       230      1,456        760           696
Houston MSA                  54,433         n/a    8,590      n/a          n/a          n/a
 Source: Various Sources.




Locational Strengths and Weaknesses for Acadiana Economic Development                                  30
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    June, 2009




Educational Attainment

Over 70 percent of the jobs in the United States now require training beyond high
school. Educational attainment of the regional labor force is an important site
selection factor in today’s facility locations, particularly the proportion of workers
with a college education.

The Acadiana region has a smaller proportion of its workforce with a college
degree than either Baton Rouge or Houston. On the other end of the education
distribution, the proportion of workers in Acadiana without a high school
diploma is higher than in Baton Rouge and Houston but slightly below the
proportion in Houma (Chart 3). Educational attainment is a weakness for the
region in recruiting more sophisticated manufacturing, office, and technology
industries.

  Chart 3. Educational Attainment in 2005



      Acadiana
                                                         Bachelor's Degree or
                                                         Higher

   Baton Rouge                                           Associate Degree


                                                         Some College
        Houma
                                                         High School Diploma


      Houston                                            < High School


                 0%       20%   40%   60%   80%   100%

  Source: Census Bureau




Shortage of Skilled Manufacturing Workers

The decline in unskilled and semi-skilled positions in manufacturing has shifted
emphasis to trained craft workers in terms of site selection. All of the employers
we interviewed mentioned that they have great difficulty recruiting skilled
workers. This finding parallels the results of the Synchronist interviews since
2004. Acadiana employers are increasingly relying on H-1 B visa workers to fill


Locational Strengths and Weaknesses for Acadiana Economic Development                           31
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 June, 2009




blue-collar craft positions because the applicant pool in the region is inadequate
to meet their needs. This is one of the reasons that employment growth in
Acadiana has trailed Houston and Baton Rouge over the last decade and why the
concentration of employment in oil field manufacturing and services in Acadiana,
relative to the U.S. economy, has declined over the decade. The skill gaps that
manufacturers list most frequently are welders (especially those with Coast
Guard certifications), machinists, fitters, and electricians. Some of the companies
interviewed for this project mentioned that they had opened facilities outside of
the region in order to find more skilled workers. The acute shortage of skilled
manufacturing workforce is a long-term economic development issue for
Acadiana that will affect its future growth opportunities.




Locational Strengths and Weaknesses for Acadiana Economic Development                        32
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                        June, 2009




                             TRANSPORTATION

         SIGNIFICANCE
         Transportation access is important to economic development for two
         reasons. First, it impacts a company’s ability to ship and receive goods in a
         timely and cost-effective manner. Second, it influences a company’s ability
         to attract and retain employees, since ease of commuting is directly related
         to highway access and air service. Location consultants find that many
         companies desire to be immediately adjacent to an interstate highway or a
         good four-lane highway, and rail access provides industry with low cost
         shipping. Air service is necessary for corporate, client and employee travel.




With the logistics and distribution industries facing higher fuel prices,
transportation networks and location are more important than ever. Taimerica
has done a detailed assessment of strengths and weaknesses in terms of
transportation access.

                                 TRANSPORTATION
        Strengths                    Neutrals                         Weaknesses
Highway Access                 Rail Access                      Commercial Airline Service
Water Transportation
Air Freight Service
Trucking Service




STRENGTHS

Highway Access

Lafayette, the major city in Acadiana, is located at the intersection of I-10 and I-49
in south central Louisiana. The region has good highway access (Map 3).




Locational Strengths and Weaknesses for Acadiana Economic Development                               33
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                June, 2009



Map 3. Acadiana Highway Access




Water Transportation

Globalization has stimulated investment in U.S. locations for heavy industries
such as steel, nonferrous metals, and cement that have been dormant in location
activity since the 1970s. Major ports in the Acadiana area or nearby with a
significant impact include the Port of Greater Baton Rouge, located 50 miles east
of Lafayette at the intersection of the Mississippi River and Intra-coastal
Waterway; the Port of Lake Charles, located 70 miles west; and the Port of Iberia,
located 20 miles to the south. Shallow draft ports in the area include the Port of
West St. Mary located in Franklin, the Port of Vermilion located in Abbeville, and
the Twin Parish Port in Delcambre (Map 4).




Locational Strengths and Weaknesses for Acadiana Economic Development                       34
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009



Map 4. Ports in Acadiana




Source: Ports Association of Louisiana


The region has an excellent port infrastructure that allows the export and import
of bulk materials and all forms of manufactured products at competitive rates.
The port infrastructure of the region is a locational strength for distribution as
well as metal fabrication and shipbuilding.



Air Freight Service

Acadiana has access to several carriers including FedEx and UPS. The high
volume of air freight and courier service generated by Stuller Settings in Lafayette
generates significant advantages for the region in terms of air freight. FedEx and
UPS offer daily freight service into Acadiana with service levels that exceed those
of most communities of its size. Air courier and air freight service in Acadiana is
equal to those in all of the competitor communities except Houston, which has
significant dedicated air cargo carriers serving most of the major air cargo hubs
worldwide.

The Acadiana Regional Airport in New Iberia, with its 8,000 foot runways, can
accommodate any size cargo plan in operation today. This infrastructure offers
regional companies the opportunity to charter and load/unload air cargo flights
without truck connections, whenever needed to serve large volume clients.




Locational Strengths and Weaknesses for Acadiana Economic Development                         35
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




Trucking Service

Lafayette is located at the intersection of I-10 and I-49 and is therefore a central
location for major distribution centers and has access to several trucking carriers,
including FedEx, UPS, SAIA Motor Freight, and Roadway. Employers that were
interviewed mentioned that they get numerous quotes on truck load shipments
and that rates are competitive. Trucking service is rated as a competitive
advantage for the region.



NEUTRAL

Rail Access

The Acadiana region is served by the Burlington Northern and Union Pacific
railroads (Map 5). Local switching in many communities is handled by the
AKDN – Acadiana railway, a short line carrier that connects to the Burlington
Northern in Lafayette and the UP in Eunice and the Louisiana and Delta RR that
interconnects with the BNSF at Lafayette and New Iberia. The short line carriers
are owned by Gennessee & Wyoming, one of the largest short-line railroad
holding companies in the U.S.

Employers we interviewed were satisfied with switching on short lines. UP
service, on the other hand, was rated as very poor by companies that had to rely
on UP service. Industrial sites that are located on a short line track with an
interconnection to the BNSF are in a much better position to serve rail served
industry, in our opinion, than those located on the UP or on a shortline that
interconnects with the UP.




Locational Strengths and Weaknesses for Acadiana Economic Development                         36
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 June, 2009



Map 5. Rail Lines in Acadiana




Source: Louisiana Dept. of Transportation




WEAKNESS

Commercial Airline Service

Commercial air passenger service is available at two airports in Acadiana, the
Lafayette Regional Airport, and the Acadiana Regional Airport in New Iberia.
The Lafayette Regional Airport has three runways, the longest of which is 7,651
feet, and serves the region with daily flights to Houston, Atlanta, Memphis, and
Dallas/Fort Worth on flights operated by American Eagle Airlines, Delta/Atlantic,
Continental Express, and Northwest Airlink. The Acadiana Regional Airport has
two runways, the longest of which is 8,002 feet and serves the region with daily
flights to Atlanta and Houston on Delta/Atlantic and Continental Express. Poorer
soil conditions at the Acadiana Regional Airport limit the aircraft that can fly in
and out of New Iberia.


Locational Strengths and Weaknesses for Acadiana Economic Development                        37
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     June, 2009




The following table compares passenger service levels for the four competitor
communities (Table 17). Acadiana has half of the daily departures and seats of
Baton Rouge and just a fraction of the non-stop destinations and seats of Houston
and Houma (which relies on New Orleans international for its service). Air
service connections are an issue for corporate offices serving national and
international markets.

Table 17. Air Service Indicators in Acadiana and Competitor Communities in
June 2008

                                        Scheduled
                      Non-stop            monthly    Scheduled          No. passengers
Region                   cities         departures        seats                boarded
Acadiana                      4                548       24,557                  19,358
Baton Rouge                   5                908       50,243                  38,222
Houma (MSY)                  36              3,631      435,955                 354,402
Houston                    210              28,200   2,727,1018               2,264,313




Locational Strengths and Weaknesses for Acadiana Economic Development                            38
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




                                     UTILITIES


         SIGNIFICANCE
         For some companies, especially those with a process that uses heat, utility
         rates can be the deciding factor in their ultimate locations. Industrial
         power costs vary significantly from area to area because of differences in
         fuel selection and regulatory policies. The availability of adequate water
         supplies and sewage treatment capacity is particularly important to food
         processing and other water-using industries.




Taimerica has identified strengths and weaknesses in its assessment of utility
costs and availability in the region, which are summarized here.

                                       UTILITIES
        Strengths                      Neutrals                      Weaknesses
Electric Cost and Reliability                                 Wastewater Capacity
Natural Gas Service and Rates                                 Water Capacity
Broadband
    Telecommunications




STRENGTHS

Electric Cost and Reliability

Electricity providers in Acadiana include the municipal Lafayette Utilities System
(LUS), Entergy, and Southwest Louisiana Electric Membership Corporation
(SLEMCO).

Published electric cost data is not available for Houston because the power
market there is deregulated. Taimerica calculated an approximate price for
industrial power of $92.243 per MWH in July 2008 for a project we completed in
Corpus Christi in April. This rate was for a major customer that bought large
volumes of power from transmission companies. Power costs were analyzed in
Louisiana using rates published by the Edison Electric Institute for the same date.
We are unable to calculate rates for Lafayette utilities and SLEMO because fuel


Locational Strengths and Weaknesses for Acadiana Economic Development                         39
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




charges for July 1, 2008 were unavailable online. While this might seem unfair, it
is typical in site selection to do preliminary screening of communities using
online information only and we employ this site selection practice in our
strengths and weaknesses studies to alert community leaders to essential
locational information that might not be available online.

Rates for industrial loads are shown in Table 18.

Table 18. Rates per MWH as of July 1, 2008

System/Region                               For 400 MWH load     For 25,000 MWH load
CLECO (Acadiana)                                      $98.44                  $86.03
Entergy Gulf States (Acadiana)                       $102.77                  $90.72
Entergy LA (Houma MSA & Baton Rouge)                 $114.00                 $108.68



The above rates do not include municipal systems or cooperatives, which
typically provide cheaper rates than investor-owned utilities. Our assessment of
rates, although imprecise, is that Acadiana parishes enjoy lower industrial power
costs than found in Baton Rouge, Houston, or Houma.

The reliability of electric service has become critical to process industries and
most manufacturers. Even a short interruption in power can deprogram
microprocessor based controls used in modern manufacturing equipment. The
employers we interviewed mentioned that reliability in the region was good with
the exception of outages due to major hurricanes.

Electric rates are likely to change after the U.S. begins to regulate carbon
emissions. Utilities with a high proportion of generation from coal are likely to
raise rates faster than those with natural gas or nuclear generation. We believe
that Louisiana utilities, which use more natural gas and nuclear fuels, will be
favored when carbon trading begins.



Natural Gas Service and Rates

Natural gas providers in Acadiana include CenterPoint Energy Entex, Atmos
Energy Louisiana, Carencro Gas, and the Cities of Rayne and Scott.

Natural gas is an important input in process industries with large heat or power
requirements. When the U.S. begins to cap or tax carbon emissions, natural gas


Locational Strengths and Weaknesses for Acadiana Economic Development                         40
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




will become a preferred fuel because it has a lower carbon output per unit of heat
or power. Natural gas service will grow in importance in the future as a location
requirement.

Table 19. Industrial Natural Gas Rates in 2007 for Acadiana and Competitor
Communities

                                             Avg. Cost
Provider/region                                ($/MCF)
Centerpoint Energy Entex/Acadiana                 14.85
Atmos/Acadiana, Baton Rouge, Houma                $6.82
Carencro Gas                                        NA
Rayne                                               NA
Scott                                               NA
Centerpoint/Houston                              $11.29


The rate data suggests that natural gas costs in Acadiana are an advantage over
those in Houston and comparable to those in Baton Rouge and Houma for sites
served by Atmos Energy.



Broadband Telecommunications

High-speed, broadband telecommunications capacity is the infrastructure of the
New Economy. Businesses must have this capacity to be competitive and operate
effectively. Providers of fiber optic communication service in Acadiana include
BellSouth, Cox Cable TV, and the Lafayette Utilities System (LUS).

Providers of Competitive Local Exchange Carriers (CLEC) include ANNOX,
American      MetroComm        Corp.,    CapRock     Communications,        Coastal
Communications, Cox Communications, Datacom, Digital Communication
Technology, Eatel, ITC/DeltaComm, KMC Telecommunications, Level (3)
Communications, Stratus, and U.S. Unwired. Companies we interviewed all had
access to broadband service and did not have any service issues to report. While
some of the rural areas of the region lack broadband service, it is widely available
through the region.

The development of the LUS Fiber system will offer businesses in Lafayette a
competitive advantage in terms of broadband technology. The LUS Powered
Network offers broadband service to businesses through 11 wholesalers that offer
different rates and bandwidths matched to the needs of the business. With fiber
to the premises available throughout Lafayette Parishes, businesses will have


Locational Strengths and Weaknesses for Acadiana Economic Development                         41
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    June, 2009




 universal access to 150 MB/Sec transmission speeds which can serve the most
 robust data needs for servers and call centers.



 WEAKNESSES

 Wastewater Capacity

 Wastewater capacity is a critical resource for semiconductor manufacturing, food
 processing, and certain types of chemical plants. Taimerica uses online data on
 wastewater capacity for evaluating a community’s ability to handle a major food
 processing project. Based on the published data in Acadiana, only Lafayette and
 New Iberia have the capacity to handle a new load of one million gallons per day.
 For Lafayette, the ability is uncertain because of the mixture of stormwater and
 wastewater loads (Table 20). Wastewater capacity in Acadiana is rated as a
 weakness for economic development.

 Table 20. Municipal Wastewater Treatment Capacity (mgpd)

                                    Rated       Average Daily     Peak        Surplus
System                             Capacity       Demand         Demand       Capacity
City of Abbeville
City of Crowley
Lafayette Utilities System                                       25-30 incl
                                     18.5           16.5           storm
City of New Iberia (2 plants)         6.0            2.5        30.0 design
                                      2.5            2.5            5.0
City of Opelousas
 Source: Various




 Water Capacity

 Lack of available water and sewer capacity can be immediate “knock out” factors
 for many companies during the site selection process. Water availability and
 sewer capacity is particularly important to such industries as food processing,
 chemical industries, chip manufacturing, electronics. Availability of excess water
 and sewer capacity are also an indicator of a community’s readiness for economic
 development.

 The scarcity of available data on water systems is a serious issue for site selection
 consultants trying to identify communities that could accommodate a large water
 using industry in Acadiana. The only system with the excess capacity to handle a


Locational Strengths and Weaknesses for Acadiana Economic Development                           42
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 June, 2009




 one million gallon per day load is Lafayette, based on the data that we were able
 to collect during this project (Table 21). These kinds of utility data should be
 available online to facilitate industrial site screening by water using industries
 and their site selection consultants.

 Table 21. Larger Municipal Water Systems (mgpd)

                              Rated     Average     Peak      Storage    Surplus
System                       Capacity   Capacity   Demand     Capacity   Capacity
City of Abbeville
City of Crowley                           2.47      3.22
Lafayette Utilities System     46.5       21.0      28.7        4.3
City of New Iberia
City of Opelousas
 Source: Various




Locational Strengths and Weaknesses for Acadiana Economic Development                        43
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           June, 2009




                                 REAL ESTATE


         SIGNIFICANCE
         Constructing and operating a manufacturing plant or office building is a
         major cost factor in most projects. Site selectors evaluate office and
         industrial lease costs and availability when selecting locations for plants
         and offices since the costs can vary substantially from area to area.




Taimerica has identified and assessed the strengths and weaknesses of business
real estate in the region.

                                    REAL ESTATE
        Strengths                     Neutrals                       Weaknesses
Industrial Land Costs          Construction Costs             Supply of Industrial and Office
                                                                  Buildings
Conference and Meeting                                        Industrial and Business Parks
   Facilities
                                                              Office and Flex Space



STRENGTH

Industrial Land Costs

Developed industrial park land in Lafayette such as is found in the LEDA
Industrial Park sells for $40,000 per acre, or $.92 per square foot. This compares
to prices of $5.00 per square foot in Baton Rouge and $2.00 per square foot in
Houston. Developed industrial park land is not available in the Houma MSA.
The price of industrial sites in Acadiana is competitive with those in other
competitor communities.



Conference and Meeting Facilities

Companies need meeting facilities for sales and marketing meetings, strategy
sessions, off-site training, and occasional gatherings of customers or suppliers.
Although such gatherings are too infrequent to warrant on-premise construction,



Locational Strengths and Weaknesses for Acadiana Economic Development                                  44
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     June, 2009




 businesses need convenient access to such facilities. Conference and convention
 facilities also attract visitors from outside the area. The region has a variety of
 hotels and conference centers that meet these needs.



 NEUTRAL

 Construction Costs

 Construction costs in Acadiana are comparable to costs in Baton Rouge, Houma,
 and Houston (Table 22). Construction costs are a neutral in terms of site selection.

 Table 22. Construction Cost Index

Area                                          Index
Acadiana Region                                 81
Baton Rouge MSA                                 82
Houma MSA                                       82
Houston MSA                                     84
U.S.                                           100
 Source: McGraw Hill Sweet’s Construction Costs Manual 2008




 WEAKNESSES

 Supply of Industrial and Office Buildings

 Taimerica’s experience in corporate site selection reveals that 60 to 80 percent of
 office, warehouse, and manufacturing projects search for an existing building. If
 a community lacks available space, shell or turnkey speculative buildings are
 very important to the success of manufacturing, warehouse, and technology
 projects. Nationally, the most common size building sought after is in the 60,000
 to 120,000 sq. ft. range.

 The inventory of vacant industrial buildings is extremely tight (Table 23). Only
 ten buildings in the entire region are available for sale or lease in the 40,000+ size
 range. Most of the inventory of vacant buildings are small footprint metal
 buildings favored by oil service firms that are typically unmarketable for other
 uses. St. Martin Parish has the 1 million square foot industrial building that was
 formerly used by Fruit of the Loom for distribution, half of which is available for
 occupancy.




Locational Strengths and Weaknesses for Acadiana Economic Development                            45
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




 The region has several buildings that are air-conditioned and that could
 accommodate call centers or large offices (Fruit of the Loom at the airport in
 Vermillion Parish for example). Even so, the inventory of office space for
 professional service firms, shared service centers, claims processing centers or
 technical call centers is sparse at best throughout the region (Table 24). The
 inventory in Houma is comparable to that in Acadiana but Baton Rouge and
 Houston have bigger inventories of available industrial and office space for such
 projects.

 Table 23. Vacant Industrial Buildings in Acadiana

                           No. of Buildings by Size (sq. ft.)
                         0 to   40 to     80 to
Area                     40k     80k      120k       >120k       Notes
Acadia                    1        1
Iberia                    5                            2        Jenerette Sugar Mill
Lafayette                40        3        1          1
St. Landry                3
St. Martin                1                            1         Int’l Trade Center
Vermillion                2                            1           Fruit of Loom
Evangeline




 Table 24. Vacant Office Space in Acadiana
 (Number of Buildings by Size in sq. ft)

                        10 to
Area                     40k
Acadia                    1
Iberia                    1
Lafayette                16
St. Landry                0
St. Martin                1
Vermillion                0
Evangeline                0




 Industrial and Business Parks

 Business parks are a critical piece of community infrastructure for technology,
 industrial, or office projects. Since 90 percent of jobs in the next decade will be
 housed in offices, the supply of campus-type business parks is becoming more
 important for economic development than industrial park sites.

 The region has run out of inventory of prepared industrial, technology, and
 business parks. The inventory of developed vacant inventory for non-waterfront
 uses is under 100 acres (Table 25).


Locational Strengths and Weaknesses for Acadiana Economic Development                         46
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                June, 2009



 Table 25. Site Inventory by Parish in Acadiana

                            Size & Vacancy in Acres
Area                Name            Size  Vacant Developed   Notes
Acadia               Port District NA        NA                       Waterfront uses only
                 Ville Platte Ind.
                                                    Yes                    City owned
Evangeline                   Park
Iberia             Port of Iberia 4000      2000    Yes               Waterfront uses only

Lafayette           Interstate IP   47     0       Yes            LEDA owned industrial park
                      Southpark     154   10       Yes            LEDA owned industrial park
                        LEDA IP     90    24       Yes            LEDA owned industrial park
                 Northpark Tech
                                    128   36       Yes            LEDA owned business park
                          Center
                       Duson IP     30    23       Yes               Private owners; rail site
                Adjacent to Wal-
                                    125            No        Package wastewater treatment needed
St. Landry                  Mart
                                                              Owned by ED Authority. No water or
                       West of
                                    422            No        sewer service with access through a 2
                     Opelousas
                                                                           lane road
               SMEDA Industrial
                                    182   0        Yes                   SMEDA owned
St. Martin                 Park
                   Private park     NA    NA       Yes                 I-10 east of Hwy 31
Vermillion               NONE
TOTAL




 Office and Flex Space

 About 90 percent of the new jobs in the U.S. economy will require office space.
 Office space comes in many varieties. Call centers prefer 40,000 to 60,000 square
 foot buildings on one floor with ample parking (six spaces per 1000 square feet).
 Professional offices require small blocks of space in high quality multi-story office
 buildings. Technology companies often prefer “funky” loft space in older
 downtown buildings with convenient parking nearby.

 A growing share of the “industrial” space in the U.S. market is configured as flex
 space, but flex space is still less than 25 percent of the total inventory in most
 markets. The Urban Land Institute defines flex space as one- or two-story
 buildings with clear heights of 12 to 14 feet for office space and 12 to 18 feet in
 warehouse areas that can be converted into two-level space. The office space is
 designed for office cabling. Telecommunications bandwidth is a critical location
 factor in spec space.

 Flex space has limited truck access and has a parking ratio of four to five spaces
 per 1000 square feet of building. The space offers curb appeal thru interesting
 building design, lots of glass on the front facade and the land is located in a
 campus style business park. Campus amenities include water features and



Locational Strengths and Weaknesses for Acadiana Economic Development                                       47
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  June, 2009




intensive landscaping. Flex space is often configured for multi-tenant occupancy.
This kind of space is ideal for light manufacturing, research and development,
information technology, or office and showroom uses. A typical user will
configure the space as 25 percent office and 75 percent warehouse space.

The most recent data available on Class A rents showed a range of approximately
$11.00 to $16.50 per square foot (average $13.77 per square foot) and a vacancy
rate of five percent in Lafayette Parish. The inventory of available office and flex
space is extremely tight in Acadiana. There are just three buildings outside of
Lafayette Parish that could be configured to meet the needs of a call center or
back office. Most of the office space in Lafayette is in multi-story buildings with
limited parking. While these buildings are workable for professional services
they have limited use for major office operations like a call center or fulfillment
center.




Locational Strengths and Weaknesses for Acadiana Economic Development                         48
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                June, 2009




          TECHNOLOGY AND START-UP SUPPORT


         SIGNIFICANCE
         In the New Economy, the generation and application of new technology will
         drive the creation of new businesses and jobs. The higher growth
         communities over the past decade have been those that have the resources
         critical for research and development, such as research labs or technical
         talent.




Taimerica has identified the strengths and weaknesses of technology and start-up
support in the region.

               TECHNOLOGY AND START-UP SUPPORT
        Strengths          Neutrals         Weaknesses
Entrepreneurial Climate        Research and Development
                                  Activity
Technical Talent Pool and
   Training Capacity




STRENGTHS

Entrepreneurial Climate

Entrepreneurship is a critical ingredient in the growth and development of U.S.
communities. The proportion of jobs in young companies is one measure of the
impact that entrepreneurial companies are having on a community (Chart 4).
Acadiana is as dynamic a location, based on the data, as Houston. The roster of
businesses Taimerica interviewed for this assignment is a testament to the
entrepreneurial climate in the region: most of the region’s largest companies were
started by local entrepreneurs who didn’t want to leave Acadiana.




Locational Strengths and Weaknesses for Acadiana Economic Development                       49
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448              June, 2009



Chart 4. Jobs by Age of Business



      Acadiana



   Baton Rouge                                               21 years or more
                                                             16 to 20 years
                                                             11 to 15 years
        Houma
                                                             6 to 10 years
                                                             Under 5 years
       Houston


                 0%     20%    40%     60%   80% 100% 120%

Source: Dun & Bradstreet MarketPlace




Technical Talent Pool and Training Capacity

Jobs in engineering and information technology require advanced skills, pay high
wages, and offer great career prospects. The Information Technology (IT) sector
of the U.S. economy added more than seven million jobs in the last decade, far
more than any other economic activity.         IT companies are attracted to
communities with an abundance of programmers, systems analysts, and
computer engineers. The economic development of the region will increasingly
depend on its ability to augment the supply of locally trained IT workers.
Graduate-level education has also become a critical factor in economic
development. Companies expect entry-level engineers and info tech hires to
pursue graduate training. While Acadiana has a small pool of IT professionals
(Table 19), the region generates a significant pool of computer science and IT
professionals. On a population-weighted basis, the region generates twice the
number of IT graduates as Houston and is comparable to Baton Rouge (Table 15
in Workforce and Training).

Acadiana has a bigger concentration of mechanical and petroleum engineers than
found in the national workforce. The talent pool generated by academic
institutions in the region is also significant. On a population-weighted basis,
Acadiana generates twice as many engineers as Houston and is significantly




Locational Strengths and Weaknesses for Acadiana Economic Development                     50
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                      June, 2009




better than Houma although not as strong as Baton Rouge (Table 15 in Workforce
and Training). Technical talent is a locational advantage in the region.

The breadth of technical talent is not as wide in Acadiana as in Houston or Baton
Rouge but talent cost is significantly less than in Houston, on an occupation by
occupation basis (Tables 26 and 27). The cost and availability of IT and
engineering talent in Acadiana is a locational advantage for all but the largest
projects.

Table 26. Concentration of Technical Occupations in Acadiana

                                                                              Annual median wage      Regional
Occupation (SOC code)                                              Empl.        Acadiana      U.S.    Concen.
Computer and Mathematical Occ. (15-0000)                           1,170           46,410   69,070        0.34
Electrical Engineers (17-2071)                                       130           54,460   79,240        0.82
Mechanical Engineers (17-2141)                                       390           65,670   72,300        1.64
Petroleum Engineers (17-2171)                                        180           96,960 103,960        10.51
All Engineers Except Civil                                           390           50,435   75,770        1.88
Source: Calculated from BLS databases


Table 27. Tech Benchmark Occupations in Acadiana and Competitor
          Communities in 2007 with Taimerica Indices

   Code    OCC_TITLE                                                       Acadiana   Baton Rouge    Houma       Houston
   15-1021 Computer programmers                                                190            720       70         8,540
   15-1031 Computer software engineers                                          90            250      n/a         8,330
   15-1051 Computer systems analysts                                           120            470       40        10,740
   17-0000 Arch. and engineering occupations                                 3,100          7,810      940        77,500
   17-2071 Electrical engineers                                                130            300      n/a         4,370

                 TOTAL                                                        3630          9550       1050      109480
                 Total Workforce                                           143,340       358,940     92,410   2,483,710
                 Concentration (% of Labor Market)                             3%            3%         1%          4%
                 TMC Tech Breadth index (% of national
                                                                              35%           48%        19%         90%
                 positions in regional labor market)
                 TMC Tech Cost Index (Cost as % of national
                                                                              78%           83%        77%        110%
                 average)
NOTE: These occupations represent 4.2% of the national workforce




NEUTRALS

Research and Development Activity

Technology and innovation have been important drivers of national economic
growth for a generation and recent work suggests that technology



Locational Strengths and Weaknesses for Acadiana Economic Development                                                             51
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                               June, 2009




commercialization has been among the dominant drivers of regional economic
growth.

Technology business springs from the intellectual property base and talent pool
of a region. An inventory of technology assets is the platform for understanding
the technology potential of a region. Research conducted by Taimerica in 2003
and published in the Economic Development Quarterly, an international journal,
demonstrated that manufacturing technologies can be classified into nine distinct
categories based on the locational clustering of companies and research
institutions that generate patents within these fields. Acadiana is far above the
U.S. average in the mining field but trails the U.S. metro average in the other
eight categories (Chart 5 and Table 28). Acadiana ranks third in the U.S. in the
mining category on a per capita basis, which even exceeds Dallas, Houston, and
Denver. The Acadiana region, at just 6 percent of the U.S. metro average, trails its
metro counterparts significantly in terms of overall patent production however.
Acadiana has an R&D base, but it is narrower than found in most metro areas in
the U.S. Baton Rouge, by contrast has strength in inorganic chemistry, medicine,
and organic chemistry.

Chart 5. Acadiana Patents as Percent of U.S. by Technology Type 2003-08




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 400%



 300%


                                                                                                                                         Acadiana
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Locational Strengths and Weaknesses for Acadiana Economic Development                                                                                      52
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                       June, 2009



Table 28. Patents by Technology 2003-2008

                                 Acadiana                      Patents                  Patents
                         Rank       per   As %                     per   Second             per     Metro
 Category                 No.     100k*     US    Top Metro       100k   Highest           100k   Average
 Coatings                 369       0.6    4%     Boston         294.6   Chicago          162.5      15.6
 Electronics              429       3.4    1%     Boston         9541    Chicago          2956      426.6
 Fashion/Entertainment    229       6.9   10%     Boston         1055    Chicago           795       70.2
 Footloose                290       3.4    6%     Boston         1199    Chicago           615       58.1
 Inorganic Chemistry      276       5.9    7%     Chicago        1908    Boston            858       89.6
 Mechanical               277       7.6   11%     Chicago         798    Boston            753       70.0
 Medical                  367       5.5    2%     Boston         8052    Philadelphia     3070      264.9
 Mining                      3     24.8   502%    Duncan, OK     1016    Pella, IA          64        4.9
 Organic Chemistry        393       0.4    1%     Boston          996    Philadelphia      755       43.7
 TOTAL                      222    58.5      6%   Boston        23823    Chicago          7541       1044
*Patents per 100,000 population.
Source: Compiled from Taimerica patent database




Historic data demonstrate that the region has paralleled national trends in terms
of generation of patents until 2005. The abrupt drop in patent awards since 2005
could be a statistical fluke but it is troublesome if it turns out to be a long-term
trend (Chart 6). The percentage of patents held by individuals is slightly above
the national average in Acadiana while the percentage held by academic
institutions is slightly below the U.S. average (Table A-1 in the Appendix).




Locational Strengths and Weaknesses for Acadiana Economic Development                                              53
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                            June, 2009



Chart 6. Patent Trends in the U.S. and Acadiana since 1990



              100                                                                                                    180000


              90                                                                                                     160000


              80
                                                                                                                     140000

              70
                                                                                                                     120000

              60
                                                                                                                     100000
  # patents




              50                                                                                                                   USA
                                                                                                                     80000         Acadiana
              40

                                                                                                                     60000
              30

                                                                                                                     40000
              20


              10                                                                                                     20000



               0                                                                                                     0
                    1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



NOTE: Acadiana patents shown on left axis and blue line while US patents are shown as green bars scaled
to right axis


The distribution of patents among the technology classes in Acadiana is similar to
other metro areas in Louisiana but is much lower than in Houston, one of the
nation’s major R&D centers in medicine, chemistry and mining (Table 29).

Table 29. Patents by Technology Type from 2003-2008 per 100,000
Population

                                                     Fashion/En      Footloos                                                 Organi
                            Coatings         Elec.                                 Inorg.     Mech.    Med.     Mining                 TOTAL
 Area                                                          t             e                                                     c
 Acadiana                          0.6         3.4           6.9           3.4        5.9        7.6     5.5         24.8        0.4      58.5
 Baton Rouge                       0.4         4.9           4.3           3.4       19.3        5.5    11.0          1.9       11.4      62.2
 Houma                             0.5         2.5           4.5           5.0        4.5        9.1     0.5         18.6        0.0      45.3
 Houston                           1.8        36.4           9.3         10.5        20.0       11.6    19.9         41.3       14.4     165.2
 Lake Charles                      0.5         1.0           6.7           1.5        2.6        2.6     6.2          2.1        2.1      25.2
 Shreveport                        0.0         2.6           3.1           1.3        2.4        3.9     5.5          0.8        0.0      19.6




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                         NATURAL RESOURCES


         SIGNIFICANCE
         The United States has an abundance of natural resources that are key assets
         for the location of businesses. Timber, minerals, and agricultural resources
         provide a significant share of U.S. manufacturing jobs that are not greatly
         affected by offshore competition.

         The Air Quality Index is based on annual data from the Environmental
         Protection Agency (EPA), which measures the levels of particulates, carbon
         monoxide, sulfur dioxide, and other pollutants, as well as the number of
         ozone alert days in a community. Higher values indicate better quality air.

         The Water Quality Index is also based on data from the EPA, which
         measures pollutants, sediments and toxic discharges, and higher values
         indicate a higher quality watershed. The situation in Acadiana is far better
         than the national average or the average in the competitor communities.




                              NATURAL RESOURCES
        Strengths                  Neutrals                           Weaknesses
Air and Water Quality           Solar Resources                 Wind Resources
Fiber and Biomass Resources




STRENGTHS

Air and Water Quality

Parishes in Acadiana are within attainment for all pollutants regulated by the
EPA. Attainment status is a major advantage for siting of heavy industries in the
chemical and metals sectors.

The Air Quality Index is based on annual data from the Environmental Protection
Agency (EPA), which measures the levels of particulates, carbon monoxide,



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   June, 2009




 sulfur dioxide, and other pollutants, as well as the number of ozone alert days in
 a community (Table 30). Higher values indicate better quality air. Acadiana and
 Houma have the best air quality of the four competitors. Houston and Baton
 Rouge have severe restrictions on plant siting due to non-attainment and the air
 quality overall. The Water Quality Index is a measure of the quality of the area’s
 water supply as rated by the EPA. The EPA has a complex algorithm for
 measuring water quality that includes such variables as pollutants, sediments,
 and toxic discharges. Higher values indicate better quality water. Acadiana’s
 water quality is comparable to Baton Rouge and lower than Houma and Houston.

 Table 30. Environmental Quality Measures in 2007

                                  Air     Water
                                Quality   Quality
Area                            Index     Index
Acadiana Region                   40        10
Baton Rouge MSA                   14        13
Houma MSA                         41        40
Houston MSA                        1        37
U.S.                              48        55
 Source: Best Places




 Fiber and Biomass Resources

 According to the USDA Forest Service, Acadiana has nearly 890,000 acres of land
 in fiber production. This represents 28 percent of the land area in the region.

 The federal government has active research in biomass to energy conversion.
 Experts believe that commercial production of ethanol from cellulosic biomass
 will be viable in the next five to ten years. Although counties in the region are
 outside of the major concentrations of available mass (Map 6), Acadiana parishes
 with sugar cane production will have a resource for the development of this
 industry (Map 7). Almost all of the parishes in the region have biomass volumes
 that are above the average for all U.S. counties. Sugarcane bagasse is likely to
 serve as one of the first raw materials for cellulosic ethanol production because it
 is collected in the sugar-making process and this lowers its cost as a biomass
 feedstock.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                June, 2009



Map 6. Rural Biomass Resource Availability in 2025




Source: University of Tennessee, and Farrell, J. and Morris, D., Energy Reliant States: Homegrown Renewable Power,
The New Rules Project, p. 6.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                     June, 2009



Map 7. Biomass Resources by Source in Acadiana




Note: Size of circle indicates size of resource. Blue color is resource from crop residues, green is manure from animal
husbandry; Forest, Primary, Secondary, and Urban are types of wood waste. WWTF is methane from wastewater
treatment plants; SWG are dedicated energy crops.
Source: Taimerica map from GIS databases maintained by the National Renewable Energy Lab




NEUTRAL

Solar Resources

The amount of solar potential in a region is determined by its latitude and the
amount of cloud cover. Counties in the far west have the highest potential. The
peak figure is 6.6 kilowatt hours per day per square meter of panel. The lowest in
the U.S. is 3.44 kilowatt hours per day per square meter. The average for the U.S.
is 5.13 kwh. Most of Acadiana is at or below the national average in terms of
solar potential (Map 8).




Locational Strengths and Weaknesses for Acadiana Economic Development                                                            58
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                               June, 2009



Map 8. Potential Electricity from Rooftop Solar




Note: Numbers represent average kwh of electricity that can be generated per day per square meter of solar panel.
Source: Taimerica map from GIS databases maintained by the National Renewable Energy Lab




WEAKNESS

Wind Resources

Wind resources in Acadiana are weaker than those in the Western states (Map 9).
None of the wind sites in Acadiana have the potential to generate above 300 watts
per square meter, the cutoff point for commercial wind farms. Offshore wind
sources are a future possibility but the resource potential is not currently well
defined and offshore wind farms are far more capital-intensive than terrestrial
plants. The region should further investigate its offshore wind potential to
determine the likely potential. With the introduction of carbon trading in the
domestic economy (anticipated by Taimerica to begin in 2010 or 2011), the
economics of wind power will improve and future opportunities for wind power
production might obtain commercial feasibility.




Locational Strengths and Weaknesses for Acadiana Economic Development                                                      59
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                        June, 2009



Map 9. Potential Electricity from Wind




Note: Blue bars on map represent locations with the potential to generate 200-300 Watts of electricity per square meter at
a 50 meter elevation. None of these sites exceeds 300 watts per square meter which is considered the minimum
production for a commercial wind farm.
Source: Taimerica map from GIS databases maintained by the National Renewable Energy Lab




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    June, 2009




                                    SUMMARY
The report being prepared by Taimerica to evaluate diversification targets will
take into consideration the locational strengths and weaknesses of Acadiana, and
recommend those businesses and industries most likely to consider a location or
expansion in the region.

Acadiana has significant assets to promote. It has a favorable quality of life, a
strong business climate, and a workforce with significant manufacturing and
office skills. The ability to recruit college-educated workers locally, particularly
in IT, engineering, and business, is also a significant asset. Broadband access, the
entrepreneurial climate in the region, and the region’s fiber and biomass
resources provide opportunities to diversify the economy away from oil and gas
production.

While the region has significant assets for business development, it also has some
liabilities that limit its economic potential. The lack of a defined shared vision for
community economic development and the lack of long-range community plans
are issues with significant implications for business development.                The
geographic location is poor for national distribution as well as for assembly
operations with high freight costs, such as automobiles. The shortage of workers,
particularly in the skilled blue-collar trades, is a significant issue for business
recruitment as well as for business retention. Taimerica believes that some of the
diminishing of competitive advantage in the region since 2002 stems from a lack
of available workers. Commercial air service is a locational issue for office
functions serving a national or international market.

Some of the biggest locational issues in Acadiana can be eliminated by
community leaders. Training institutions can produce more employable workers
whose skills are better matched to employer needs. Water and wastewater
capacities can be augmented. And the region can increase its inventory of
developed industrial and office parks and available buildings. Correcting these
weaknesses will greatly improve the region’s ability to compete for new business
while improving its success with the retention and expansion of its current
employers.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448   June, 2009




                                    APPENDIX




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 Acadiana Patents by Assignee 2000-2008
                                              TOTAL
 Assignee                                    2000-08   2000   2001   2002   2003   2004   2005   2006   2007   2008
 ~Individually Owned Patent                     333      50     55     41     38     36     58      2     26     27
 FRANK'S CASING CREW & RENTAL TOOLS, INC.        30       3      3      5      6      2      4      1      4      2
 BAKER HUGHES INCORPORATED                       15       3      2      2      3      2      1             1      1
 HALLIBURTON ENERGY SERVICES, INC.               13       2      2      4             1      1      1      1      1
 FRANK'S INTERNATIONAL, INC.                     10                     2      2      1             2      1      2
 VARCO I/P, INC.                                 10                     3      2      2      2      1
 WEATHERFORD/LAMB, INC.                           8       1                    1      3      1                    2
 BJ SERVICES CO                                   7                            1             1      1      2      2
 BOTTOM LINE INDUSTRIES, INC.                     5       2      2                                                1
 DEVIN INTERNATIONAL, INC.                        5                                          1      1      2      1
 TUBOSCOPE I/P INC.                               5              3      1      1
 ACCESS OIL TOOLS, INC.                           4                                                 3             1
 DEL CORPORATION                                  4                            1      2      1
 LOUISIANA STATE UNIVERSITY                       4              1                           1      2
 OLS CONSULTING SERVICES, INC.                    4                            2      2
 SCHLUMBERGER TECHNOLOGY CORPORATION              4       1      1      1      1
 TURBO-CHEM INTERNATIONAL, INC.                   4                                          1             2      1
 COASTAL TIMBERS, INC.                            3       2                    1
 INTERNATIONAL PAPER CO.                          3       1      1                                         1
 LOUISIANA STATE UNIVERSITY                       3                                                        1      2
 OSCA, INC.                                       3                     3
 PRIME DIRECTIONAL SYSTEMS, L.L.C.                3       3
 SYNTRON, INC.                                    3       3
 UNIVERSITY OF LOUISIANA AT LAFAYETTE             3                            1             1      1
 ADVANCE PRODUCTS AND SYSTEMS, INC.               2                                   1      1
 BOYD'S BIT SERVICE, INC.                         2                                          1      1
 CORE LABORATORIES, INC.                          2                                                 1      1
 DELMAR SYSTEMS, INC.                             2       1             1
 GEOSENSOR CORP.                                  2       2
 GREAT LAKES CHEMICAL CORPORATION                 2       1      1
 NOBLE DRILLING SERVICES, INC.                    2              1      1
 OFFSHORE ENERGY SERVICES, INC.                   2                            1             1
 QUANTUM DRILLING MOTORS, INC                     2              2
 Samson Rope Technologies                         2                                                 1             1
 STRYKER CORPORATION                              2                            2
 TEXCHEM GROUP INTERNATIONAL, L.L.C.              2       1             1
 TOMAHAWK DOWNHOLE, LLC                           2                            1      1
 TUBOSCOPE VETCO INTERNATIONAL INC.               2       2
 UNION OIL COMPANY OF CALIFORNIA                  2       1      1
 VENTURE CHEMICALS, INC.                          2                            1      1
 VETCO GRAY INC                                   2                                          1      1
 WESTERN ATLAS INTERNATIONAL, INC.                2       2
 ACADIA INDUSTRIES, INC.                          1                     1
 AMBAR, INC.                                      1       1
 BEGNEAUD MANUFACTURING, INC.                     1       1
 Burner Fire Control, Inc.                        1                                                               1
 CAJUN CONSTRUCTORS, INC.                         1                                   1
 CLINE CHILDREN CLASS TRUST                       1       1
 COLUMBIA ENERGY GROUP                            1                     1
 CONOCO, INC.                                     1                     1
 DRILLTEC PATENTS & TECHNOLOGIES CO., INC.        1                            1
 ENSCO INTERNATIONAL, INC.                        1                            1
 F. A. Richard & Associates Inc.                  1                                                        1
 FMC TECHNOLOGIES, INC.                           1                                   1
 Foret Plasma Labs, LLC                           1                                                               1
 Gator Tail, L.L.C.                               1                                                        1
 GINGER SCHOUEST                                  1                     1




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                           June, 2009



 Acadiana Patents by Assignee 2000-2008
                                                            TOTAL
 Assignee                                                  2000-08   2000   2001   2002   2003   2004   2005   2006   2007   2008
 Grand Vent Power, LLC                                          1                                                        1
 GRINDING & SIZING CO., INC.                                    1                                   1
 HERMAN J. SCHELLSTEDE & ASSOCIATES, INC.                       1              1
 IBERIA THREADING, INC.                                         1       1
 INNOVATIVE DRILLING TECHNOLOGIES, LLC                          1                                   1
 IntegrCert, LLC                                                1                                                        1
 INTERTAPE POLYMER GROUP, INC.                                  1       1
 LIPOGENICS, INC.                                               1       1
 NOKIA CORPORATION                                              1                                                               1
 NORTEL NETWORKS LIMITED                                        1              1
 NOVA TECHNOLOGY CORP., INC                                     1                                          1
 OCS TECHNOLOGIES, LLC                                          1                                                        1
 ONCOLOGY AUTOMATION, INC.                                      1                                          1
 ORBIX CORPORATION                                              1                                                        1
 P.E.T. International, Inc.                                     1                                                 1
 PATHFINDER ENERGY SERVICES, INC.                               1                                                        1
 Petrotechnologies, Inc.                                        1                                                        1
 PHOENIX RESOURCE RECOVERY, INC.                                1                                   1
 PRODUCTION MANAGEMENT INDUSTRIES, INC.                         1       1
 RACATAC PRODUCTS, INC.                                         1              1
 Reliagene Technologies Inc.                                    1                                                               1
 SATELLITE ACCESSORIES, LLC                                     1                                   1
 SEA SANITIZER INTERNATION, L.L.C.                              1              1
 SHAW INDUSTRIES                                                1       1
 SMITH INTERNATIONAL INC.                                       1                            1
 SOLOCO, L.L.C.                                                 1              1
 SPECIALTY RENTAL TOOL & SUPPLY CO., INC.                       1                                   1
 SUPERIOR ENERGY SERVICES, L.L.C.                               1                                                 1
 SUPERIOR GRAPHITE CO.                                          1                                                               1
 SUPERIOR SERVICES, LLC                                         1                            1
 TECHNICAL INDUSTRIES, INC.                                     1                                                               1
 THOMAS TOOLS, INC.                                             1       1
 THRU-TUBING TECHNOLOGY, INC.                                   1                     1
 TROJAN RENTAL AND SALES                                        1                                          1
 Venoscope, LLC                                                 1                                                               1
 VENTURA FOODS, LLC                                             1                     1
 VENTURE INNOVATIONS, INC.                                      1                     1
 WEATHERFORD US HOLDING, L.P.                                   1       1
 TOTAL                                                        575     91     80     72     69     61     80     21     50     51
 Patents by Individuals                                       333
 Percent of Acadiana patents by individuals(%)                58%
 Percent by individuals in US (%)                             56%
 Patents by Academic Institutions                              10
 Percent of patents by Academic Institutions in Acadiana       2%
 Percent of patents by Academic Institutions in USA            3%




Locational Strengths and Weaknesses for Acadiana Economic Development                                                                  64
                  TARGET INDUSTRIES


   FOR GROWTH AND DEVELOPMENT




                                     for




                                    from




                               347 Girod Street
                             Mandeville, LA 70448
                               (985) 626-9868
                             FAX: (985) 626-9869
                            ebee@taimerica.com

Technology Assessment • Strategic Planning • Organization Design • Site Selection


                               July, 2009
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                 July, 2009




                          TABLE OF CONTENTS



INTRODUCTION                                                                     3


THE TARGET INDUSTRY IDENTIFICATION PROCESS                                       4


GLOBAL TRENDS SHAPING THE SELECTION OF TARGET
INDUSTRIES                                                                       5


OFFICE SECTOR TARGETS                                                            8


TECHNOLOGY SECTOR TARGETS                                                        9


MANUFACTURING SECTOR TARGETS                                                     11


LONG-TERM TARGETS                                                                16


FINAL RECOMMENDATIONS                                                            22


APPENDIX                                                                         23




Target Industries for Growth and Development for Acadiana Economic Development                2
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           July, 2009




INTRODUCTION
INTRODUCTION
The economic recession that began in 2008 has demonstrated the importance of
economic diversity. While economic development practitioners nationwide focused on
strengthening their existing industry clusters as a means of stimulating job growth in the
last decade, many regions are now interested in diversifying their regional industrial
base. The economic landscape for diversification is changing rapidly for developers:
technology is creating a growing share of the new jobs in the U.S. economy; alternative
energy development is creating new opportunities in manufacturing; the increased cost
of international shipping is pulling manufacturing back to the U.S. from Asia; producer
and consumer services are creating over 94 percent of the new jobs in America; and a
growing number of affluent retirees offers an unparalleled opportunity for nontraditional
economic development. These trends are reinforcing the value of a systematic analysis
of target industry opportunities within a region, built on an up-to-date understanding of
trends and structural changes in the global economy. This report presents Taimerica’s
findings about the target industry opportunities that provide the best opportunities for
economic diversification in Acadiana over the next five years.

A target industry analysis has proven to be an integral component of a successful
economic development marketing program. Recruiting new firms into an area as well as
helping to grow entrepreneurial firms from within are competitive and challenging tasks.
But for every firm looking to relocate, expand, or find a new facility site, there are dozens
or even hundreds of communities pursuing that prospect.

In addition, communities often focus their economic development resources almost
exclusively on business attraction, hoping to lure the big auto plant, or a trendy
technology company. Economic developer organizations must now do more. Besides
retaining existing business, successful communities must grow from within by nurturing
those entrepreneurs likely to be creating new investment and jobs. Today’s start-ups
may turn out to be tomorrow’s large companies.

The decision to focus on a select few target industry groups does not preclude
improvement and possibilities in other economic sectors. Rather, the priority targets
are, or have the potential to become, drivers that take capital from outside the region
and initiate activity that produces income and value for the Acadiana region.

                “Destiny is no matter of chance. It is a matter of choice.”
                                 William Jennings Bryan




Target Industries for Growth and Development for Acadiana Economic Development                          3
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                          July, 2009




THE TARGET INDUSTRY IDENTIFICATION
PROCESS
The majority of target opportunities are identified by first looking at industry growth
patterns in the national economy. These patterns, or industry trends, tend to drive the
attraction and expansion opportunities at the regional and local level. Taimerica uses a
sophisticated multi-step process to determine the national growth industries. Our
system, called the Target Industry Identification Process (TIP), is basically an elimination
process, eliminating those industries that do not meet the criteria for the marketing
effort. Given the large number of industry sectors that exist, it is a much more efficient
process to initially eliminate those that are unlikely prospects until the list has become
whittled down to more likely candidates.

The focus of a target industry analysis is on those sectors of the economy that generate
jobs and investment, rather than on those responsive to growth, such as retail and
customer service operations. Therefore, the general industry categories for Acadiana
are:

    ∙   Manufacturing, with a particular emphasis on industries with skill requirements
        that match those in the Acadiana workforce
    ∙   Administrative offices
    ∙   Technology industries

The following steps were taken to identify the national growth targets most appropriate
for the region’s targeted marketing effort:

    1. Ranked nearly 800 four-digit NAICS industries according to rate of change in
       employment and number of establishments using the time period from 2003 to
       2007 (from both our D&B and Bureau of Labor Statistics databases).
    2. Eliminated those industries that have been declining or static in the nation and in
       the three-state region (Louisiana, Arkansas, Texas) since 2003.
    3. Narrowed the list of possibilities down to 24 industries for detailed analysis.
    4. Eliminated industries that lacked sales and export growth in 2008 or that
       experienced employment declines or plant closures in 2007.

A statistical overview of the target industries recommended by Taimerica is in Table A-1
and in the industry profiles in the Appendix. This mix of targets includes industries from
the office, technology and manufacturing sectors. The final list of targets was prepared
by eliminating those industries that, in the consultant’s judgment, were unlikely
candidates for Acadiana based on other location factors. In some cases, the
recommendations are based on a reversal in economic trends that are not yet apparent
in readily available industry statistics. Some of the industries on the list, for instance,
witnessed a decline in U.S. employment because of offshore competition from China


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earlier in the decade but are now returning to the U.S. because of increases in ocean
freight costs, rising costs of production offshore, and a fall in the relative value of the
U.S. dollar. This trend, entitled “reverse offshoring” by the business press, is discussed
further in the trends section. A second trend shaping the target list for Acadiana is the
rapid development of alternative fuels in the U.S., which is not yet established as a
statistical trend. The alternative fuels industry has stimulated the demand for
specialized industrial equipment used in the production of alternative fuels and the
alternative energy industry. This is also discussed further in the trends section. A textual
discussion of each of the target industries follows this section.

The best target opportunities in a particular region occur in industries that need the
specialized assets in the community. The following is a list of those assets for which
Acadiana has significant competitive advantages:

    ∙   Industrial engineering skills
    ∙   Production and manufacturing skills
    ∙   Competitive manufacturing wages
    ∙   Strong work ethic and productivity
    ∙   Occupational training programs and facilities
    ∙   Rail service
    ∙   Water transportation
    ∙   Power reliability and costs
    ∙   Broadband telecommunications capacity
    ∙   Industrial land prices

The final target industries favor regions, such as Acadiana, that have a relatively strong
position in these location factors.



GLOBAL TRENDS SHAPING THE SELECTION OF
TARGET INDUSTRIES
The global recession that began in mid-2008 has curtailed opportunities for industry
recruitment in the next 12 months. Our consulting work in other regions of the U.S.
demonstrates that opportunities are still alive in regions that offer a skilled
manufacturing workforce and vacant space, however. Although the number of
opportunities will remain meager while the global recession continues, a recovery will
generate significant new projects that will gravitate to regions of the U.S. that have the
infrastructure, workforce, and facilities needed to accommodate the industry’s location
requirements. It is possible to predict which of those industries will be attracted to
Acadiana based on economic trends prior to the recession.




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The U.S. economy has witnessed dramatic changes in the last decade from the rapid
globalization of manufacturing. U.S. manufacturing lost nearly three million jobs and
46,000 facilities between 2001 and 2004 before stabilizing in 2005. The rapid increase in
world crude oil prices, along with other macroeconomic trends since 2005, has led to a
reversal of these trends in the last 18 months. These changes, because they are
significant and long-term in nature, are leading to long-term shifts in the location
preference of global companies. The repercussions of three of these location trends, 1)
alternative energy production, 2) export-driven growth, and, 3) “reverse offshoring,” are
so significant to industry targeting that they merit a more detailed discussion.


Reverse Offshoring

The benefits and economics of manufacturing overseas are not as positive today as they
have been in the past. The rising cost of ocean transportation and the time involved is a
key factor driving companies to consider moving their operations closer to U.S.
consumers. Thomasville, for example, announced last year that the company is shifting
some of its manufacturing operations from China back to North Carolina. DESA, a
Kentucky company that makes residential and industrial heaters, moved production back
to Bowling Green from China because the cost of ocean shipping jumped by 15 percent
in 2007-08. Four northern California companies in early 2009 have reshored products
from China to Wright Engineered Plastics in Santa Rosa, California.

Steamship lines and railroads are faced with the same shock from volatility in fuel prices
as U.S. consumers, from $50 to $145/barrel, then down again, over the last three years.
These costs have to be passed on the manufacturing companies sourcing parts or
products in Asia. The trends are long-term and are leading to a reversal of the prior
trend of offshoring to Asia, particularly for bulky products that have a moderate labor
content.

The cost of ocean freight is not the only factor: the cost of doing business in places like
China is also increasing. Wage inflation, port congestion, changing currency valuation,
taxes, and import duties on goods from those locations into the U.S. are also cited as
significant factors. Integrity Manufacturing, one of the fastest growing companies in
Kentucky, has built its strategy on competitively manufacturing products once made in
China. Even a desire to reduce the corporate carbon footprint was cited by IKEA as a
factor in opening a manufacturing facility in Danville, Virginia, its first outside of Europe.


Export-Driven Growth

The Wall Street Journal recently reported on the resurgence of manufacturing in
midwestern factory towns like Manitowoc, Wisconsin fueled by an export boom. The
value of the U.S. dollar has declined by 40 percent relative to the value of the Euro over


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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                          July, 2009



the last five years. Major declines have also occurred relative to the value of the
Japanese Yen and the Chinese Yuan. The result is that U.S.-made products are cheaper
relative to those produced in Europe, Japan, or other parts of Asia. Booms abroad in
infrastructure and mining are creating a jump in the demand for construction and mining
equipment, among other U.S. made industrial products. The result is a resurgence in
U.S. manufacturing production, fueled by about $1 trillion in exports of U.S.
manufactured goods in 2007. Caterpillar and Heinz are among the manufacturers that
saw significant revenue and profit growth on the strength of their international markets.
Most of the target sectors identified for Acadiana have doubled or tripled their volume
of exports since 2004.


Alternative Energy

The tripling of world crude prices to their peak in 2008 is the result of surging demand in
China and India coupled with peak production in Saudi Arabia and declining production
in Africa, Mexico, Venezuela, and other major producing countries. Energy experts,
including experts in the oil and gas companies, now recognize that the global appetite for
energy cannot be met by fossil fuels alone. The production of alternative forms of
energy, such as wind power, ethanol, biodiesel, and solar power, has jumped remarkably
since 2005. Almost 10 percent of the U.S.'s new electric generating capacity since 2005
has been in renewable sources like wind power. Companies are investing billions of
dollars in plants to gasify coal, to produce ethanol from cellulose, and to commercialize
new technologies in renewable fuels. In July 2008 alone, eighteen U.S. facility and
infrastructure projects totaling nearly $13.7 billion were announced, and billion-dollar
announcements have continued despite the downturn in the global economy. These
projects ranged from a $2 billion wind farm to generate 4000 MW of electricity in Texas
and the necessary infrastructure to connect that electricity to the grid, to a Cargill plant
expansion in Illinois to produce a soy-based replacement for polyurethane. Each of
these projects requires pumps, compressors, tanks, pipelines, and process control
instrumentation, among other items. This has stimulated the demand for equipment
traditionally used in the refining and chemical process industries. These same industries
are producing for both domestic and export markets, which makes accessibility to rail
and barge service important in plant siting.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                         July, 2009




OFFICE SECTOR TARGETS
According to the Bureau of Labor Statistics, over 94 percent of national employment
growth over the last decade was in service occupations, which includes office operations.
This trend is expected to continue during the current decade. For that reason we
present the office sector target first, as it is likely to offer the best targeting
opportunities over the next five years.


NAICS 5611 - Office Administrative Services

Back offices consist of administrative units removed from corporate headquarters. The
functional offices within this target may consist of any of the following:

    ∙   Data processing
    ∙   Claims processing
    ∙   Subscription processing
    ∙   Call centers
    ∙   Technology support
    ∙   Customer service
    ∙   Reservations
    ∙   Catalog fulfillment

In general, the back office sector cannot be classified within a single NAICS code because
it cuts across many classifications. Much of the recent activity in back offices has
occurred in NAICS 5611, office administrative services. Back offices generated nearly
22,000 new jobs nationally in 2007 versus an overall decline in manufacturing
employment.

Forecasts suggest that the opportunity to attract office operations will continue in the
future. The back office sector generated around 2,000 new facilities per year over the
last half decade and this trend accelerated slightly in 2007. Office projects are labor
intensive, generating an average employment of 63 persons per location. The Bureau of
Labor Statistics estimates that employment will grow by 2.6 percent per year over the
next decade in office activities, adding 500,000 jobs nationally.

Industry call centers have accounted for a large share of new administrative offices over
the last 15 years. Call center publications estimate that the sector nationally consists of
90 million square feet of office space and employs roughly 900,000 individuals. Although
the industry operated near 100 percent of capacity during the 1990s, economic
conditions between 2000 and 2007 drove work to offshore locations in India, the
Philippines, the Caribbean, and Canada. As manpower costs represent half of operating



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costs, many telemarketing, help desk, and customer service centers have moved to
offshore contract operations where companies can hire college-educated workers at a
fraction of the cost for a high school-educated worker in the U.S. Estimates suggest that
up to 100,000 jobs left the U.S. between 2000 and 2006. Recent announcements of
technical support call centers in U.S. cities, rather than India, suggest that growth in call
center offshoring has slowed considerably if not reversed. (Even the largest Indian
companies have set up call centers in the U.S. to support the needs of high end technical
companies.)

Call centers and administrative offices look for leasable, vacant, air conditioned space
with lots of employee parking. A quality talent pool of office workers at moderate costs
is another location factor, plus broad-band internet access for network operations.
Combined with the region’s office labor force that is sufficiently large and moderately
priced, the Acadiana region has the resources needed to attract administrative offices.
Real estate options in the region are presently limited for administrative offices and
shared service centers, which typically use less space than call centers. Expanded office
space is a critical requirement for Acadiana's competitive position with this target. Until
the office inventory is expanded, this target will offer limited opportunities in the region.



TECHNOLOGY SECTOR TARGETS
NAICS 5191 and 5182 - Data Centers

The proliferation of web-based software applications and cloud computing is creating a
proliferation of new data centers. Cloud computing is a technology that allows multiple
computers to chain together and operate as if they were a massive supercomputer with
unlimited memory and processing power. Major providers of cloud computing, such as
Yahoo, Google, Amazon, and Microsoft, are installing new data centers to support this
growth. Data centers consume huge amounts of electricity and seek out locations with
advantageous power rates. Many of the new facilities are located in the Pacific
Northwest near hydroelectric power dams to reduce costs. Centers also need large
amounts of cooling water at reasonable costs. Facilities are typically built in 35,000 to
50,000 square foot air-conditioned office buildings on large lots that provide a security
buffer. The other infrastructure requirement is access to the fiber network.

Rates on the SLEMCO system are competitive for large electrical loads. Land prices in
Acadiana are also an advantage. Fiber infrastructure of bandwidth sufficient to support a
data center is generally available throughout Acadiana.

Data centers employ large numbers of IT professionals. The size and caliber of college IT
programs is the most important HR issue in the location of data centers. Colleges that




Target Industries for Growth and Development for Acadiana Economic Development                          9
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                      July, 2009



support the NSA’s Certification for Information Assurance certificate are a locational
draw for large data centers (neither ULL nor LSU now offer the NSA certificate).

Acadiana has the assets needed to support new data centers. The economic
development team will have to demonstrate that the region offers sites that are not
likely to become disabled during hurricanes, however. Data center security is a siting
issue that favors Midwestern sites, but Louisiana leaders can demonstrate that all sites
have some exposure to natural disasters.


NAICS 5415 - Computer Systems Design

Custom computer programming has been one of the fastest growth sectors in the
national economy over the last decade. Forecasts suggest that the sector will continue
to grow employment by four percent per year in the current decade, adding 570,000
jobs between now and 2016. Unlike semiconductors, growth in software development is
not concentrated in just a few tech centers. The growth in this industry has been
widespread and this diversity will continue.

The software industry hires professional programmers and analysts. Most of the
employees in this industry hold university degrees, which explains the high average
salary of $87,900 per year, nearly triple the current average salary in the region. The
presence of undergraduate and graduate IT programs at ULL and LSU Eunice are
locational assets for attracting this industry.

The scarcity of office space, especially in the downtown loft buildings favored by
software startups, is a siting issue that Acadiana developers will have to address to
attract this industry.

The long-term viability of the region for software development can be enhanced through
community development and educational improvements. Larger pools of graduate level
degree programs in computer science will enhance Acadiana’s ability to attract and
sustain computer design operations.




Target Industries for Growth and Development for Acadiana Economic Development                    10
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                        July, 2009




MANUFACTURING SECTOR TARGETS
NAICS 3119 – Other Food Manufacturing

The processed food industry has grown rapidly in the last five years through the
introduction of new products such as egg beaters and prepared omelets in sealed
cartons. This industry sector includes the following categories that experienced growth
from 2005 to 2006:
     Snack foods
     All other foods, such as:
           o Egg substitutes
           o Perishable prepared foods
               ∙ 311991 Box lunches (for sale off premises) manufacturing
               ∙ 311991 Egg noodles, fresh, manufacturing
               ∙ 311991 Food, prepared, perishable, packaged for individual resale
               ∙ 311991 Macaroni, fresh, manufacturing
               ∙ 311991 Noodles, fresh, manufacturing
               ∙ 311991 Pasta, fresh, manufacturing
               ∙ 311991 Pizzas, fresh, manufacturing
               ∙ 311991 Prepared meals, perishable, packaged for individual resale
               ∙ 311991 Salads, fresh or refrigerated, manufacturing
               ∙ 311991 Sandwiches, fresh (i.e., assembled and packaged for wholesale
                  market), manufacture
               ∙ 311991 Tofu (i.e., bean curd) (except frozen desserts) manufacturing
               ∙ 311991 Vegetables, cut or peeled, fresh, manufacturing

National forecasts suggest that employment in this NAICS 3119 industry category will
grow by 0.2% per year during the decade. Three hundred new plants have located
nationwide from 2003 to 2007, generating nearly 11,000 new jobs averaging $48,700 in
annual pay. Shipments for 2007 were $74.7 billion, and total exports in 2009 are
forecasted to be $5.9 billion, down five percent from 2008. There is significant variation
between states in terms of average wages. The average wage in Texas is $1,380 per
week but the average in Louisiana and Arkansas is between $700 and $800 per week.
The newer and more automated the process, the higher the wage level.

Based on the wastewater data collected in the Strengths-Weakness report, New Iberia
and Lafayette have the wastewater capacity to service the food industry. We are
uncertain of whether the balance of the major cities in the region have the capacity to
compete for this industry because of a lack of published data on their water and
wastewater capacities.




Target Industries for Growth and Development for Acadiana Economic Development                      11
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                            July, 2009




NAICS 3312 – Steel Product Manufacturing (Purchased Steel)

This industry consists of establishments primarily engaged in manufacturing iron and
steel tube and pipe, drawing steel wire, and rolling or drawing shapes from purchased
iron or steel. Approximately 1,060 establishments operated in this industry nationwide
between 2003 and 2007. Industry-wide employment in 2007 totaled nearly 61,000
workers who received an average annual pay of approximately $54,000 per year.
Employment in this industry defied the trend exhibited by most of manufacturing by
growing slightly (.02%) since 2003. This industry shipped $20.4 billion of product in 2007,
and expects to export $342 million in 2009 (annualized).

The steel products industry is attracting unprecedented amounts of investment capital
from Asia and Europe. Most of the leading investors in this sector, such as the Shenzen
Steel Company which announced a $1 billion pipe project in Corpus Christi in 2008, are
headquartered outside the U.S.

Companies in this industry require a large number of welders and fitters and other
machine tool trades. The lack of surplus availability of trained workers with these skills
in Acadiana is the most significant barrier to the future location of this industry in the
region. Rail and waterway sites are important siting requirements for companies in this
industry.


NAICS 3324 – Boiler, Tank and Shipping Container
Manufacturing

Metal tanks, boilers and similar containers are an important part of the chemical
processing infrastructure. The industry is growing with growth in oil and gas production
and refining capacity, as well as the construction of alternative energy plants. With the
current shortage of capacity in U.S. refining, this industry is a good target for future
growth for Acadiana.

This industry shipped more than $31 billion of product in 2007. Exports in 2009,
although declining slightly since their peak in 2008, are still expected to be slightly above
2007 at $2.8 billion. Employment growth since has averaged about six percent per year,
which is above the average for all manufacturing, despite a decline in the number of
establishments. These jobs pay an average weekly wage of $1,016.

Among the region’s advantages for this industry is the presence of a large chemical
processing industry. The Gulf Coast Industrial Market, which runs from Mobile to Corpus
Christi, is one of the world’s largest markets for this type of fabrication, and operations in
Acadiana can ship finished vessels by barge to refining and chemical construction sites.




Target Industries for Growth and Development for Acadiana Economic Development                          12
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                            July, 2009



The production of synfuels, discussed in the alternative energy section, will stimulate the
tank and heavy fabrication industry. Synfuels rely on a branch of chemistry called the
Fischer Tropsch process. This process was developed in Germany during World War II to
replace fuel refined from crude oil. The Fischer Tropsch process uses massive pressure
vessels for gasification and liquefaction. Typical vessel sizes are 90 to 100 feet in
diameter and 250 feet tall. Just a few fabrication yards in the world have the ability to
fabricate these vessels, which are akin to ships in terms of their size and complexity of
fabrication. Sites on the Intracoastal Waterway or with water access to the Gulf of
Mexico have the logistics advantage of allowing barge transportation of sections to their
erection sites. This type of fabrication also will create a demand for docks that can
accommodate heavy lift project cargoes. All of these factors favor Acadiana for vessel
design and fabrication.

Companies in this industry require a large number of welders and fitters and other
machine tool trades. The availability of trained workers with these skills in Acadiana is
the most significant barrier to the future location of this industry in the region.


NAICS 3329 – Other Fabricated Metal Product Manufacturing

Oil prices that are still relatively high and recent increases in the rig count are continuing
to drive an expansion in hydrocarbon exploration and production equipment. New gas
technologies, such as drilling in shale formations, is driving the need for production rigs,
pipelines, valves, compressors, and a host of specialized manufacturing products. Sales
of valves have been brisk over the last five years and were continuing to grow in 2008.
Shipments in this industry were approximately $60.5 billion in 2007, and employment in
this industry grew by 2.4% between 2003 and 2007. These jobs pay an average wage of
$970 weekly. Annualized exports for 2009 in this industry are expected to reach $17
billion.

Because of a severe shortage of skilled blue collar workers in the major oil companies,
investors are evaluating plant sites farther removed from Houston and Tulsa. The
workforce skills and training facilities in Acadiana are assets of interest to investors in
this industry. Companies in this industry require a large number of welders and fitters
and machine tool trades. The availability of trained workers with these skills in Acadiana
is the most significant barrier to the future location of this industry in the region.




Target Industries for Growth and Development for Acadiana Economic Development                          13
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                            July, 2009




NAICS 3331 - Agriculture, Construction, and Mining Equipment
Manufacturing

A new focus on various agricultural sources of biomass for biofuels have driven recent
growth in agricultural equipment. Total shipments in this industry now exceed $85
billion per year. Industry exports have more than doubled since 2004, and are expected
to exceed $35 billion in 2009. This growth has in turn created a need for new plants and
added to employees. During 2007 the industry added 17 new production plants and
grew it’s payrolls by about 10,000 jobs. The average wage for these jobs is $1,165 per
week.

Acadiana’s port and rail facilities are important location assets for the industry. The
industry has similar skill requirements to industries already present in the region but the
shortage of trained welders, fitters, and machine tool trades is a significant issue for the
future development of these industries in the region.


NAICS 3336 - Turbine and Power Transmission Equipment
Manufacturing

A rapid growth in sales in this industry is being driven by the construction of alternative
energy facilities. After years of declining sales and shrinking workforce, the sector is
growing once again, with shipments in 2007 of $43.4 billion. Although the sector
reduced the number of facilities, employment grew by approximately 1,700 workers
nationally. Export sales, in addition to alternative fuels, are also driving the resurgence in
this industry, and export sales in this sector are forecast to exceed $20 billion in 2009.

The average wage in this industry is $1,225 per week, almost double the prevailing wage
in Acadiana. The high prevailing wage is an indicator of the breadth and depth of skilled
blue collar skills prevailing in this industry.

Acadiana's rail and waterway infrastructure are competitive advantages for the
development of this industry, as are the training programs at area technical colleges and
the large mechanical engineering talent pool at ULL. The industry has similar skill
requirements to industries already present in the region but the shortage of trained
welders, fitters, and machine tool trades is a significant issue for the future development
of these industries in the region.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                          July, 2009




NAICS 3339 - Other General Purpose Machinery Manufacturing

Products from this $5 billion industry are used in the chemical industry, steel mills, blast
furnaces, energy-related extraction industries, pipelines and well-drilling, and general
construction. The principal markets for this industry are companies and industries that
are well represented in the Gulf Coast industrial market. Despite slow and often cyclical
business, several of the industry's top producers have managed to turn a healthy profit,
especially on newer technology and aftermarket parts. Some of the newer innovations
going into the mid-2000s in this industry were solar-powered compressors, quieter and
oil-less models, and high-efficiency designs. Portable air compressors, which have
wheels and can be taken from site to site, have also proven one of the industry's fastest-
growing lines, up to 90 percent of which were sold to equipment rental services.

In 2007, over 6,700 establishments had a workforce of nearly 275,000 that received
$54,871 in pay annually on average. Employment has grown nationwide by more than
four percent since 2003, and grew by more than 2,800 in 2007 despite a decrease in the
number of establishments.

Historically, this industry has used a high proportion of skilled trades, about 30 percent
of all production workers. Metal working craftsmen and machinists have been about
three times more common in this industry than in manufacturing as a whole, while
laborers were half as common.


NAICS 3345 - Navigational, Measuring, and Control Instruments
Manufacturing

This industry includes firms that manufacture a wide variety of instrumentation, from
lasers to ophthalmic instruments to global positioning devices to sonar fish finders to
medical instruments. Although the outlook varies to some degree for the various types
of instruments, it remains relatively stable overall for this industry. The industry niche
that best matches the locational assets of Acadiana is control instruments, particularly
for the chemical processing and refining industries. Approximately 7,300 establishments
employed nearly 442,000 workers in 2007. The number of establishments has grown
slightly since 2003 and this growth is likely to continue with new influx of capital
investment in the energy, chemical and refining industries. Employees in this industry
are well-paid with an average annual pay of $81,291. This industry shipped nearly $131
billion of product in 2007 and is expected to export approximately $36.6 billion in 2009.

The key skill set in this industry is electronic assembly. Many of the technicians
employed by instrument companies have associate degrees in electronics. The skill sets
in the industry are changing. In general, instrumentation companies are hiring more




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           July, 2009



engineers than in the past, particularly computer software engineers. Engineers are
about a fourth of the workforce for the industry.



LONG-TERM TARGETS
NAICS 325193 - ALTERNATIVE FUELS

The following alternative fuels targets are opportunities for the region in the next three
to five years. Some, such as cellulosic ethanol, are still in the research and development
stage but are nearing commercial production. The large amount of crop residue and
bagasse in Acadiana is a resource for development of alternative fuels and for biorefinery
products (chemical and plastic feedstocks made from organic materials rather than
petroleum or coal). The following is our analysis of the opportunities for development of
these industries in the Acadiana region beyond 2012.


Cellulosic Ethanol

The Department of Energy (DOE) has identified 18 cellulosic ethanol plants around the
U.S. that are producing commercial grades at current prices. These plants have
comparative advantages in energy or feedstock costs that make them commercially
viable today. The cost of producing ethanol from cellulose has dropped by 60 percent
since 2001 (see Figure 1). New enzymes and processing technologies led to the
enhanced economics. The DOE target price of $1.31 per gallon looks likely between
2012 and 2015 based on current research in conversion technologies and enzymes.

Cellulosic ethanol is likely to emerge as a mainstream commercial industry owing to
worldwide research on the subject, coupled with the expectation of permanently higher
oil prices. Venture capital is already flowing into the industry as California and East Coast
venture firms recognize the tremendous opportunities stemming from this industry. A
venture-backed, pilot-scale plant was just announced in Jennings, Louisiana by
Massachusetts-based Celunol Corporation.

Brazil is working diligently on lowering the costs of ethanol from sugar cane bagasse
because of their immense inventory. The latest estimate by the USDA suggests that crop
residues (including bagasse) can contribute 933 million tons of biomass per year for
cellulosic ethanol and biorefining. The National Renewable Energy Lab has set a target of
2012 for demonstration of commercial viability. This goal is based on lowering the cost
of ethanol derived from cellulose to $1.31 per gallon. NREL has set a production goal of
36 billion gallons per year, which is about five times the current production of corn
ethanol. There are two primary conversion paths for conversion of cellulose into fuel
and chemical feedstock (see Figure 2). Recent breakthroughts in research have lowered



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the cost of enzymes used in fermentation (one of the biggest production costs) by 95
percent.

Natural gas is an important input in process industries with large heat or power
requirements. When the U.S. begins to cap or tax carbon emissions, natural gas will
become a preferred fuel because it has a lower carbon output per unit of heat or power.
Natural gas service will grow in importance in the future as a location requirement for
ethanol plants and this will favor Acadiana, as well as the rest of Louisiana.

Figure 1. Cost of Ethanol Production 2000-2020




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                         July, 2009



Figure 2. Conversion Routes




Cellulosic ethanol plants that rely on fermentation technologies (the likely conversion
path for most cellulosic ethanol) require large water and wastewater capacities for
processing. The locations within Acadiana that can accommodate these future plants are
currently constrained by utility capacity. Expansion of utility capacity must be combined
with large acreage sites having rail and highway access to compete in the biomass
ethanol industry.

The region has an immediate play in this field, however, if it can capture federal research
dollars for demonstration projects and pilot plants. These plants would need to be
connected with university research but would not need the large footprint sites and
large utility capacities of commercial scale plants.


Biorefineries

Cellulose from crop residue can be converted into syngas (a mixture of carbon monoxide
and hydrogen) that can be synthesized into gasoline, fertilizer, and petrochemical
feedstocks used in plastics production (polyethylene, polypropylene, and acrylonitrile).
These feedstocks now are captured as byproducts of oil refining. Biorefineries are plants



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     July, 2009



designed to produce fuel and petrochemical feedstocks from organic materials (see
Figures 3 and 4). Technologies are available today that allow biorefineries to operate,
but the industry lacks the efficiencies to compete with refining byproducts. The U.S.
Department of Energy, through programs at the National Renewable Energy Lab, have
research and development programs underway to solve some of the efficiency problems
with biorefining (many are parallel to the problems in cellulosic ethanol production).
Biorefineries will become commercial when the costs of gas cleanup and conditioning
drops below current costs (see Figure 5). Research underway at NREL and in the private
sector are expected to drop the total costs of production by about 35 percent by 2012-
2015. Biorefining should be commercially viable when production costs drop to that
level.

Biorefining will have similar site location requirements to cellulosic ethanol plants.
Companies will look for large acreage tracts with good highway and rail access. As raw
material assembly cost is a major issue, biorefineries need to be located in areas with
significant potential for crop residues (see Figure 6).

Figure 3. Biorefinery Inputs and Outputs




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448            July, 2009



Figure 4. Biorefinery Processes




Figure 5. Biorefinery Cost Analysis




Target Industries for Growth and Development for Acadiana Economic Development          20
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448            July, 2009




Figure 6. Biomass Resources




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           July, 2009




FINAL RECOMMENDATIONS
A recap of the target industries recommended by Taimerica is in Table A-1 in the
Appendix. This mix of targets includes industries from the office, technology and
manufacturing sectors. These opportunities capitalize on global trends and resources
readily available in the Acadiana Region, and would diversify Acadiana’s economy. As
their prevailing wages are significantly higher than the average for Acadiana, all of these
industries offer wages that would boost per capita incomes in the region.

Many of these target industries require access to rail served sites (see Table A-2 in the
Appendix). The portfolio of rail served sites with municipal utilities should be expanded
to effectively market to these targets. Other targets (NAICS 3331, 3336, and 3345) have
a high requirement for air freight service, which is a locational advantage for Acadiana
communities.

The limited supply of trained welders, fitters, and machine tool trades is a barrier to the
attraction of the equipment manufacturing companies (NAICS 3312, 3324, 3329, 3331,
and 3336). Economic development leaders should evaluate this issue in more detail and
determine which training programs and incentives they can tailor to meet the training
needs of companies in these targets.

Taimerica will use these siting requirements in its evaluation of potential sites in the next
phase of this project. The target list outlined in this report offers an opportunity to
diversify the economy of the region while raising per capita incomes of its residents. The
AEDC now has to tackle the hard work of crafting a marketing and site development
strategy that enhances its competitive position for these target industries.




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APPENDIX




Target Industries for Growth and Development for Acadiana Economic Development          23
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                                 July, 2009




    Table A-1. Final Target Screening Matrix
                                                                                  2004-2009     2007                   Three-                 Avg.
                                                           2007   2009 Exports       Export    No. of         2007   state (LA,     Local   Weekly
                                                      Shipments   (Annualized,      Growth       New          New     AR, TX)       Pres-    Wage
   Name                                      NAICS         ($B)         in $B)          (%)    Plants        Empl.   Presence       ence        ($)
   Office Admin. Services                     5611           NA            NA            NA     2,150       21,687       X            X      1,404
                                              5182,
   Data Centers                                             NA              NA          NA     1,820        16,568       X             X      1,503
                                              5191
   Computer Systems Design                    5415          NA              NA          NA     6,222        64,616       X             X      1,690
   Other Food Mfg.                            3119         74.7             5.9          46       83         2,749       X             X        937
   Steel Prod. Mfg. (Purch. Steel)            3312         20.4             0.3         -21        2           324       X                    1,039
   Boiler and Tank Mfg.                       3324         31.2             2.8          75      -25         1,538       X             X      1,016
   Other Fab. Metal Prod. Mfg.                3329         69.5            17.0          33      -22         1,694       X             X        970
   Ag., Constr., Mining Machinery Mfg.        3331         85.6            35.9          65       17        10,030       X             X      1,165
   Engine, Turbine, Power Transmission
                                              3336         43.4            20.7         32           -9      1,714       X                    1,225
   Equip. Mfg.
   Gen Purpose Machinery Mfg.                 3339         86.1            28.6         20         -119      2,812       X             X      1,055
   Nav., Meas., Elec., Control Instr. Mfg.    3345        130.8            36.6         18           16      2,873       X                    1,563
   Med. Equip. and Supplies Mfg.              3391         75.7            23.9         59          -82        122       X             X      1,100



    Table A-2. Transportation Requirements for Acadiana Manufacturing Targets
                                                            Rail%                Water%                        Air%               Rail        Air
   Name                                      NAICS      Inputs    Output      Inputs   Output             Inputs    Output        Sites     Freight
   Other Food Mfg.                            3119        15%       16%          2%       1%                 3%        0%           X
   Steel Prod. Mfg. (Purch. Steel)            3312        24%        1%          3%       2%                 2%        2%           X
   Boiler and Tank Mfg.                       3324        23%        1%          2%       0%                   0       4%           X
   Other Fab. Metal Prod. Mfg.                3329        18%        1%          2%       0%                   0       4%           X
   Ag., Constr., Mining Machinery Mfg.        3331        11%        0%          2%       0%                   0      10%                     X
   Engine, Turbine, Power Transmission
                                              3336        7%          3%          0%          0%              0        14%                    X
   Equip. Mfg.
   Gen Purpose Machinery Mfg.                 3339        6%          0%          0%          0%              0         6%
   Nav., Meas., Elec., Control Instr. Mfg.    3345        4%          0%          0%          0%              0        26%                    X
   Alternative Energy (Basic organic
                                                NA       37%         38%          3%          0%            5%          8%         X
   chemicals)
   All Manufacturing                                     18%          4%          1%          1%            4%          9%




Target Industries for Growth and Development for Acadiana Economic Development                                                                               24
target industry:
  administrative office Services
  overview                                                                           inDuStry characteriSticS
  •	   Back office and call center categories include naicS #5611.                   •	   average wage ($/year in 2007)   $73,001
                                                                                     •	   typical plant employment (#) 10
                                                                                     •	   establishments under 5 years old 13,266

                                                                                     hiStoric Growth rateS (2003-2007)
  location FactorS                                                                   •	   employment (%/yr)        + 7%
  critical                                important                                  •	   new Facilities (#/yr)    +2,150
  •	 access to clerical & professional    •	 payroll based incentives
      workers at moderate wages           •	 college students & single
  •	 Broadband telecomm                      mothers wanting stable office
                                             work
  inDuStry SupplierS
  •	   none
                                                                     JoBS in new FacilitieS from 2002-2006
                                                                                              Financial Services
  cuStomerS                                                                                   Source: D&B
  •	   hotels
  •	   insurance companies
  •	   credit card companies
  •	   Banks and Financial institutions
  •	   manufacturers of consumer
       goods and services

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Quality & cost of clerical labor
     pool
  •	 labor productivity

  ...and challenges
  •	 available office space
target industry:
  Data centers
  overview                                                                         inDuStry characteriSticS
  •	   Data processing, hosting, and other infomation services include             •	   average wage ($/year in 2007)   $78,150
       naicS #5182 and #5191.                                                      •	   typical plant employment (#) 17
                                                                                   •	   establishments under 5 years old 6,542

                                                                                   hiStoric Growth rateS (2003-2007)
  location FactorS                                                                 •	   employment (%/yr)        + 5%
  critical                               important                                 •	   new Facilities (#/yr)    +1,820
  •	 electrical rates                    •	 payroll- and investment-based
  •	 Broadband telecomm access              incentives
                                         •	 it workforce
                                         •	 nSa certificate for information
  inDuStry SupplierS                        assurance
  •	   none
                                                                   JoBS in new FacilitieS from 2003-2008
                                                                                            Financial Services
  cuStomerS                                                                                 Source: D&B
  •	   all types of business and
       government

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 electrical rates
  •	 telecomm infrastructure

  ...and challenges
  •	 hurricane risk
  •	 available office space
Target industry:
  Computer Systems Design
  overview                                                                     inDuSTry ChArACTeriSTiCS
  •	   Computer systems design and related services include nAiCS              •	    Average wage ($/year in 2007)   $87,903
       #5415.                                                                  •	    Typical plant employment (#) 8
                                                                               •	    establishments under 5 years old 24,886

                                                                               hiSToriC GrowTh rATeS (2003-2007)
  loCATion FACTorS                                                             •	    employment (%/yr)       + 6%
  Critical                              important                              •	    new Facilities (#/yr)   +6,222
  •	 pool of iT talent                  •	 payroll based incentives
  •	 Broadband telecomm                 •	 Air service


  inDuSTry SupplierS
  •	   none
                                                                 JoBS in new        from 2004-2009
                                                                                    Financial Services
  CuSTomerS                                                                         Source: D&B
  •	   All types of business and
       government

  reASonS To TArGeT
  Acadiana’s Strengths...
  •	 pool of ull and lSu iT
     graduates
  •	 Source of local companies in
     software

  ...and Challenges
  •	 Available office space
target industry:
  other Food Mfg.
  overview                                                                            inDuStry characteriSticS
  •	   all other food manufacturing includes flavorings, seasonings,                  •	   average wage ($/year in 2007)        $48,738
       dressings, and spices and is comprised of naicS #3119.                         •	   typical plant employment (#)         47
                                                                                      •	   labor as % of Shipped value          9%

                                                                                      hiStoric Growth rateS (2003-2007)
  location FactorS                                                                    •	   employment (%/yr)              +2%
  critical                               important                                    •	   new Facilities (#/yr)          +83
  •	 interested agriculture growers      •	 Skilled maintenance workforce
  •	 water and wastewater                •	 incentives
      capacities

  inDuStry SupplierS
  •	   paperboard boxes
  •	   agricultural growers
                                                                       JoBS in new FacilitieS        from 2003-2008
                                                                                                     Financial Services
  cuStoMerS                                                                                          Source: D&B

  •	   Supermarket chains
  •	   Food wholesalers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 logistics infrastructure
  •	 proximity to customers

  ...and challenges
  •	 water and wastewater
       capacities
target industry:
  Steel Product (Purchased Steel) Mfg.
  overview                                                                         inDuStry characteriSticS
  •	   Steel product manufacturing from purchased steel includes                   •	   average wage ($/year in 2007)     $54,021
       naicS #3312.                                                                •	   typical plant employment (#)      58
                                                                                   •	   labor as % of Shipped value       10%

                                                                                   hiStoric Growth rateS (2003-2007)
  location FactorS                                                                 •	   employment (%/yr)          + 1%
  critical                              important                                  •	   new Facilities (#/yr)      +2
  •	 Supply of trained metal-working    •	 rail-served sites
      skills


  inDuStry SuPPlierS
  •	   Steel wholesalers
                                                                   JoBS in new FacilitieS     from 2003-2008
                                                                                              Financial Services
  cuStoMerS                                                                                   Source: D&B
  •	   export sales
  •	   Domestic dealers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Mid-continent location
  •	 Skilled metalworking trades

  ...and challenges
  •	 rail-served sites
target industry:
  Boiler, tank, Shipping container Mfg.
  overview                                                                           inDuStry characteriSticS
  •	   Boiler, tank, and shipping container manufacturing includes                   •	   average wage ($/year in 2007)    $52,811
       naicS #3324.                                                                  •	   typical plant employment (#)     50
                                                                                     •	   labor as % of Shipped value      14%

                                                                                     hiStoric Growth rateS (2003-2007)
  location FactorS                                                                   •	   employment (%/yr)          +2%
  critical                               important                                   •	   new Facilities (#/yr)      -25
  •	 proximity to industrial customers   •	 incentives
  •	 rail service
  •	 Metalworking trades

  inDuStry SupplierS
  •	   Steel wholesalers
                                                                     JoBS in new FacilitieS     from 2002-2006
  cuStoMerS                                                                                     Financial Services
                                                                                                Source: D&B
  •	   refineries
  •	   other chemical companies

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 customers in the Gulf coast
     industrial market
  •	 water transportation

  ...and challenges
  •	 rail-served sites
  •	 pool of skilled metalworking
       trades
target industry:
  other Fabricated Metal Product Mfg.
  overview                                                                       inDuStry characteriSticS
  •	   other fabricated metal product manufacturing includes naicS               •	   average wage ($/year in 2007)   $50,431
       #3329.                                                                    •	   typical plant employment (#)    44
                                                                                 •	   labor as % of Shipped value     18%

                                                                                 hiStoric Growth rateS (2003-2007)
  location FactorS                                                               •	   employment (%/yr)        +1%
  critical                                important                              •	   new Facilities (#/yr)    -22
  •	 access to industrial customers       •	 incentives
  •	 Skilled metalworkers


  inDuStry SuPPlierS
  •	   Parts fabricators and importers
                                                                 JoBS in new FacilitieS from 2003-2008
                                                                                          Financial Services
  cuStoMerS                                                                               Source: D&B
  •	   industrial equipment wholesalers
  •	   oil and gas production
       companies
  •	   chemical manufacturers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Proximity to industrial customers
  •	 workforce skills and training
     facilities

  ...and challenges
  •	 Pool of skilled metalworking
       trades
target industry:
  agriculture, construction, Mining Machinery Mfg.
  overview                                                                       inDuStry characteriSticS
  •	   agriculture, construction, and mining machinery manufacturing             •	   average wage ($/year in 2007)     $60,583
       includes naicS #3331.                                                     •	   typical plant employment (#)      65
                                                                                 •	   labor as % of Shipped value       11%

                                                                                 hiStoric Growth rateS (2003-2007)
  location FactorS                                                               •	   employment (%/yr)          + 5%
  critical                              important                                •	   new Facilities (#/yr)      +17
  •	 Supply of trained metal-working    •	 incentives
      skills
  •	 pool of mechanical engineers

  inDuStry SupplierS
  •	   Steel wholesalers
                                                                 JoBS in new FacilitieS     from 2003-2008
                                                                                            Financial Services
  cuStoMerS                                                                                 Source: D&B
  •	   export sales
  •	   Domestic dealers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Mid-continent location
  •	 Skilled metalworking trades

  ...and challenges
  •	 available buildings
  •	 pool of skilled metalworking
       trades
target industry:
  turbine and Power transmission equipment Mfg.
  overview                                                                       inDuStry characteriSticS
  •	   engine, turbine, and power transmission equipment                         •	   average wage ($/year in 2007)     $63,697
       manufacturing includes naicS #3336.                                       •	   typical plant employment (#)      93
                                                                                 •	   labor as % of Shipped value       12%

                                                                                 hiStoric Growth rateS (2003-2007)
  location FactorS                                                               •	   employment (%/yr)          + 2%
  critical                             important                                 •	   new Facilities (#/yr)      -9
  •	 Supply of trained metal-working   •	 rail-served sites
      skills                           •	 training programs
  •	 Pool of mechanical engineers      •	 vacant industrial buildings

  inDuStry SuPPlierS
  •	   casting, forging and die-
       cutting companies                                         JoBS in new FacilitieS     from 2003-2008
                                                                                            Financial Services
                                                                                            Source: D&B
  cuStoMerS
  •	   export sales
  •	   Domestic dealers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Mid-continent location
  •	 Skilled metalworking trades
  •	 Pool of mechanical engineers

  ...and challenges
  •	 available buildings
  •	 availability of metalworking
       trades
target industry:
  other General Purpose Machinery Mfg.
  overview                                                                     inDuStry characteriSticS
  •	   other general purpose machinery manufacturing includes naicS            •	   average wage ($/year in 2007)    $54,871
       #3339.                                                                  •	   typical plant employment (#)     41
                                                                               •	   labor as % of Shipped value      17%

                                                                               hiStoric Growth rateS (2003-2007)
  location FactorS                                                             •	   employment (%/yr)        +1%
  critical                               important                             •	   new Facilities (#/yr)    - 119
  •	 access to industrial customers      •	 incentives
  •	 Skilled metalworkers
  •	 Pool of mechanical engineers

  inDuStry SuPPlierS
  •	   Parts fabricators and importers
                                                               JoBS in new FacilitieS from 2002-2006
                                                                                        Financial Services
  cuStoMerS                                                                             Source: D&B
  •	   industrialequipmentwholesalers
  •	   other manufacturers

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Proximity to industrial
     customers of the Gulf coast
  •	 workforce skills

  ...and challenges
  •	 vacant buildings
target industry:
  navigational, Measuring, control instr. Mfg.
  overview                                                                       inDuStry characteriSticS
  •	   navigational, measuring, and control instrument manufacturing             •	   average wage ($/year in 2007)   $81,291
       includes naicS #3345.                                                     •	   typical plant employment (#)    60
                                                                                 •	   labor as % of Shipped value     22%

                                                                                 hiStoric Growth rateS (2003-2007)
  location FactorS                                                               •	   employment (%/yr)        +0%
  critical                               important                               •	   new Facilities (#/yr)    - 82
  •	 engineering and electronics         •	 incentives
      workforce
  •	 proximity to industrial customers

  inDuStry SupplierS
  •	   parts importers
  •	   Machine shops and industrial                              JoBS in new FacilitieS from 2002-2006
                                                                                          Financial Services
       support                                                                            Source: D&B


  cuStoMerS
  •	   process industries

  reaSonS to tarGet
  acadiana’s Strengths...
  •	 Quality & cost of engineering
     workforce
  •	 labor productivity

  ...and challenges
  •	 Small base of established
       instrument companies
   MARKETING STRATEGY AND PLAN




                                     for




                                    from




                               347 Girod Street
                             Mandeville, LA 70448
                               (985) 626-9868
                             FAX: (985) 626-9869
                            ebee@taimerica.com

Technology Assessment • Strategic Planning • Organization Design • Site Selection


                         September, 2009
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448       September, 2009




TABLE OF CONTENTS


INTRODUCTION                                                            3


RECOMMENDATION TO IMPLEMENT TARGET
MARKETING STRATEGIES                                                    3


MARKETING BUDGET AND STAFFING
REQUIREMENTS                                                            9


CONCLUSIONS                                                             9




Marketing Strategy and Plan for Acadiana Economic Development Council                    2
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009




INTRODUCTION
This plan provides Taimerica’s analysis of the marketing tactics that are most likely to
generate results for the target industries recommended for Acadiana Economic
Development Council (AEDC). As you will see from the budget outline, the organization
is unlikely to have the resources needed to effectively market to each of the target
industries over the next five years. Information is therefore presented that will assist
stakeholders in assigning priorities to the target campaigns. The suitability of individual
targets varies among the parishes in Acadiana. For the AEDC to have a sustainable
organization, it needs to develop a target marketing campaign that provides value to
each of its member parishes. Identifying the ultimate target industries is a policy
decision that is best left to stakeholders. Taimerica will assist stakeholders to reach a
consensus on the ultimate target industries in the upcoming plan workshop.


RECOMMENDATION TO IMPLEMENT TARGET
MARKETING STRATEGIES
Effective target industry campaigns involve more than selecting the appropriate media
and message to reach prospect companies. Effective campaigns begin by redesigning the
web and print approach that the EDO uses with target companies. For that reason, this
plan begins with an outline of these essential steps.



IMPLEMENTATION TASKS TO COMPLETE BEFORE
LAUNCHING THE TARGET MARKETING CAMPAIGN
AEDC should augment its market-research resources for target industry
intelligence.

AEDC staff should compile and maintain resource information for each target industry.
This effort would include maintaining a database of associations for each target and
developing systematic intelligence on industry trends. This can be accomplished by
monitoring trade publications or purchasing industry data and reports from private
sources, such as Hoover’s, Economy.com, or relevant trade associations. This can be a
cooperative effort with other economic development organizations in the region such as
SMEDA, CLECO, and Entergy. The relevant trade associations are:
    • National Association of Call Centers,
    • Information Technology Association of America,
    • Food Institute,
    • World Steel Association,


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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009



    •   Steel Tank Institute,
    •   Association of Equipment Manufacturers, and
    •   International Association for Measuring and Control.

Web site information and details on each trade association are shown in the Marketing
Resources table at the end of this document.


AEDC should redesign its website to provide specific content for its target
industries

AEDC should revise its web site to reflect the new strategic agenda of the region. This
involves creating an economic development-focused site to facilitate the access of
relevant information on an as-needed basis by outside prospects as well as by internal
customers (new demographics meeting the IEDC Data Guidelines for “making the project
short list”, news, maps, local and state incentives, ‘contact us’, building and sites, small
business development with links to state and county offices, business resource links,
links to regional allies, strategic action plan, etc.) Keep the site updated with news and
information, on-line forms, etc. so visitors will want to or need to return.

AEDC should develop and use a new promotional theme and logo for its targeted
marketing campaign. These should highlight the unique assets of the region for business
and industry, and should be used consistently throughout the promotional materials,
letters, web site, business cards, etc.

AEDC should develop web site content that addresses the advantages of the region for
the final target industries. Examples of regional companies in this field should be
covered. Media should include PDF versions of brochures and streaming video
presentations.

AEDC should develop marketing materials and a web site to use for direct mail
campaigns, trade shows, and personal visits that features individual pages showing the
advantages of operating in Acadiana for each of the final target industries.


AEDC should revise its print materials to incorporate the locational
concerns of the target industries.

AEDC should create target industry fact sheets featuring data and information about the
industry to convey why Acadiana is an advantage for a specific type of business
operation. The strengths and weaknesses report can serve as a template for the
information that should be included in each of the final industry fact sheets. AEDC
should also update its general-purpose brochures including demographics, photos of



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     September, 2009



buildings and sites, transportation access, and other assets of the county to reflect
location requirements of companies in the targeted industries.


AEDC should collaborate with other economic development groups to
promote the community and region to the target industries

AEDC should continue a systematic approach to networking with such agencies as: LED,
SMEDA CLECO, industrial and commercial real estate brokers, site location consultants,
and others as appropriate.


AEDC should launch a program to generate favorable publicity among
national media as well as within Acadiana

AEDC should organize a media task force to develop stories and to gain national and
regional press coverage about the region. The media task force can host business writers
on familiarization (“FAM”) trips to the area to write feature stories about flagship
businesses in the region

AEDC should set up speaking engagements at local meetings of various civic
organizations to educate people about the nature of the local economic development
and marketing program and its progress and results.

AEDC should publish a quarterly electronic newsletter reporting on local economic
development activity, and prepare monthly reports of economic indicators for public
release. Send to selected prospects, local firms, local community leaders, and state and
other economic development allies.

AEDC should collaborate with the Chambers of Commerce, economic development
authorities, and LED to develop and implement a site consultants tour of the three-
county region that highlights its locational assets.



CHECKLISTS FOR ASSIGNING PRIORITIES TO THE TARGET
INDUSTRIES
AEDC stakeholders should assign priorities to the target list based on several factors:
   1) Their attractiveness to the member parishes;
   2) The number of potential projects; and
   3) The cost of marketing to the particular target industry.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                           September, 2009



The cost of a targeted marketing campaign typically varies with the number of
companies in an industry. The following tables provide information for stakeholders to
review in assigning priorities. Tables 1, 2, and 3 give a rank ordering of the target
industries by number of new projects (a measure of the number of potential
opportunities), average size facility (attractiveness to the member communities), and by
the number of companies in the target industry (relative size of target for budgeting
purposes)

Table 1. Target Industries by Number of Potential Projects
                                                              New Loc.
                                                                2003-      Jobs/    Estab. In
 Name                                               NAICS        2007     Project       2007
 Office Admin. Services                              5611        8599          10     40,893
                                                    5182,
 Data Centers                                                    7294         32    396,057
                                                     5191
 Other Food Mfg.(Specialty Food)                     3119         335         47       3444
 Boiler and Tank Mfg.                                3324          94         85         782
 Ag., Constr., Mining Machinery Mfg.                 3331          68        590       3,543
 Nav., Meas., Elec., Control Instr. Mfg.             3345          67        132       7,344
 Steel Prod. Mfg. (Purch. Steel)                     3312          10         17       1061
 Engine, Turbine, Power Transmission Equip. Mfg.     3336          -35        92       1,085
 Gen Purpose Machinery Mfg.                          3339         -475        82       6,717
 Other Fab. Metal Prod. Mfg.                         3329         -819        60       7,344




Table 2. Target Industries by Average Facility Size

                                                               New Loc.    Jobs/    Estab. In
                               Name                   NAICS    2003-07    Project       2007
 Nav., Meas., Elec., Control Instr. Mfg.               3345          67       132      7,344
 Engine, Turbine, Power Transmission Equip. Mfg.       3336         -35        92      1,085
 Boiler and Tank Mfg.                                  3324          94        85        782
 Gen Purpose Machinery Mfg.                            3339        -475        82      6,717
 Other Fab. Metal Prod. Mfg.                           3329        -819        60      7,344
 Other Food Mfg.(Specialty Food)                       3119         335        47      3444
 Steel Prod. Mfg. (Purch. Steel)                       3312          10        17      1061
 Office Admin. Services                                5611        8599        10     40,893




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                          September, 2009




Table 3. Target Industries by Industry Size

                                                             New Loc.     Jobs/    Estab. In
                             Name                    NAICS   2003-07     Project       2007
 Office Admin. Services                               5611       8599        10     40,893
 Nav., Meas., Elec., Control Instr. Mfg.              3345         67       132       7,344
 Other Fab. Metal Prod. Mfg.                          3329       -819        60       7,344
 Gen Purpose Machinery Mfg.                           3339       -475        82       6,717
 Ag., Constr., Mining Machinery Mfg.                  3331         68       590       3,543
 Other Food Mfg.(Specialty Food)                      3119        335        47       3444
 Engine, Turbine, Power Transmission Equip. Mfg.      3336        -35        92       1,085
 Steel Prod. Mfg. (Purch. Steel)                      3312         10        17       1061
 Boiler and Tank Mfg.                                 3324         94        85         782




EFFECTIVE MARKETING TACTICS FOR THE TARGET
INDUSTRIES
Taimerica analyzed industry characteristics and marketing resources to identify those
tactics and media that are most likely to stimulate meaningful contact with companies
needing plant sites.

Trade associations and trade shows are typically the most effective methods of reaching
prospect companies in the manufacturing sector. Direct mail campaigns and call trips to
metro areas with major concentrations of target companies can also be effective
marketing tactics, but it has become increasingly difficult to obtain the attention of
corporate decision-makers with these approaches. Based on our personal experience,
trade publications are usually the most expensive and least effective method of
generating contacts in manufacturing, but they are the most effective means of building
a regional brand within the target industry.

In the office administrative services target, effective trade publications are not available.
Several trade publications are available in the data center and software industry,
although the costs are high because of high circulation figures. CIO magazine, for
instance, is widely read among top executives in the IT sector but the cost of a full page
black and white ad is $27,000 for a single insertion. CIO offers the option of online
advertising which typically is lower in cost but which might not reach the same number
of contacts.

Based on the Taimerica analysis, a series of marketing tactics are recommended for AEDC
that should provide the most cost effective marketing to the recommended target
industries.



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009




AEDC should participate in some office, IT, and manufacturing trade shows

AEDC should attend appropriate trade shows in selected target industries to learn more
about the marketing opportunities within that industry and to develop prospect leads.
Focus on setting up meetings with prospects at the trade show prior to attending rather
than trying to "collar" people at the show. Continue to work with LED as appropriate.
Develop a plan to follow-up with contacts made. Details on the specific trade shows are
shown in the Marketing Resources Table at the end of this plan. AEDC should decide
which of the shows justify the expense of exhibition.


AEDC should organize call trips to metro areas with major concentrations
of target industries

AEDC should schedule call trips to metropolitan New York, New Jersey, Chicago,
Houston, Omaha, and Atlanta for back office/call center and IT, focusing particularly on
site consultants in these sectors, if stakeholders choose this as one of the final target
industries.

AEDC should arrange call trips over a 24-month cycle to the metro areas with the most
target companies. The list of these cities typically would include some of these regions:
New York, Los Angeles, Chicago, Detroit, Houston, Tulsa, New York/Philadelphia.

AEDC should, based on inquiries and on the geographic concentrations of the growth
firms in the target industries, schedule a series of prospect development missions. These
missions can be coordinated with industry activities such as regional trade shows.


AEDC should launch appropriate e-mail and call campaigns in some of the
target industries

AEDC should identify growth firms in the final target industries, considering firms as
small as 20 employees (250 or more for back office/call centers from the list furnished by
Taimerica). Target industries that are best suited for direct mail include data centers,
specialty food, all of the metal products (includes tanks, steel products, other fabricated
metals), all of the machinery targets and specialty foods.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009




MARKETING BUDGET AND STAFFING REQUIREMENTS
A “straw-man” budget is shown in Table 4. The budget is not precisely defined but is
meant to give stakeholders a rough idea of the relative cost of the different marketing
tactics. The actual budget for the marketing campaign will depend on the target
industries selected. The budget does not include hiring any additional staff at AEDC.
Most of the immediate activities can be accomplished by engaging advertising agencies
and marketing consultants familiar with web site and print materials. The call trips, trade
shows, and other marketing activities listed in Table 5 should be doable with one or two
staff people working in marketing activities. The market research activities should be
doable with a single full-time research person.


CONCLUSIONS
This report gives AEDC stakeholders some data for setting marketing and budget
priorities. The ultimate marketing plan will reflect stakeholder views about the value of
the individual target industries and the size of the target marketing budget that AEDC
can raise. The results of the upcoming marketing workshop should give stakeholders a
clear consensus of the appropriate tactics and targets to incorporate into the
organization’s strategic plan.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  September, 2009




Table 4. Estimated Marketing Budget
                                                                          Estimated
 Activity                                                                  Expenses
 Market Research
 Maintain industry lists and databases (associations and subscriptions)       $2,000
 Website Redesign
 Revise to reflect new strategy (lump-sum)                                    $5,000
 Develop new promotional theme (lump-sum)                                     $2,000
 Develop marketing pdfs (desktop publishing- 5 @ $1000)                       $5,000
 Revise Print Materials
 Produce target industry fact sheets (desktop- 5 @$500)                       $2,500
 Produce/ update general purpose brochure                                     $6,000
 Produce marketing flyers for sites and buildings (4 @ $750)                  $3,000
 Collaboration with Other ED Organizations
 Networking with allies                                                            -
 National Publicity
 Organize media task force                                                         -
 Local speaking engagements                                                        -
 Electronic newsletters (contracted vendor annual fee)                        $5,000
 Site consultants regional tours ($5000 share of regional cost)               $5,000
 Industry Trade Shows (representative examples)
  -Int'l Expo for Power Transmission (annually- registration + travel)        $2,000
  -ASME Turbo Expo (annually- registration + travel)                          $2,000
  -Wind Power (annually- booth + travel)                                      $5,000
 Call Trips
 Admin. Offices call trips
    -New York                                                                 $5,000
    -Omaha                                                                    $2,000
    -Chicago                                                                  $3,500
    -Atlanta                                                                  $1,000
  Manufacturing call trips
    -New York                                                                 $5,000
    -Los Angeles                                                              $5,000
    -Chicago                                                                  $5,000
    -Detroit                                                                  $2,500
    -Houston                                                                  $2,500
    -Tulsa                                                                    $2,000
    -Philadelphia                                                             $2,000
  Prospect development missions                                              $10,000
 Email and Call Campaigns
  Target company email and call lists                                         $7,500

 First Year Materials/ Web Costs                                             $25,500
 Costs/ target industry (trade show + 2 call trips + email campaign)         $16,500




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                                         September, 2009


    Table 5. Marketing Resources for Acadiana Target Industries
                                  New Loc.
                                    2003- Jobs/ Estab.
   Name                   NAICS      2007 Project In 2007 Trade Association                               Trade Show                           Trade Publication
                                                          Nat. Assn. of Call Centers                      2010 Outsourcing World Summit
                                                                                                                                               In Queue
   Office Admin.                                          http://www.nationalcallcenters.org/news.html    Lake Buena Vista, FL
                          5611       8599      10 40,893                                                                                       http://www.nationalcallcente
   Services                                               Intl. Assn. of Outsourcing Pros                 http://www.outsourcingprofession
                                                                                                                                               rs.org/pubs/in_queue.html
                                                          http://www.outsourcingprofessional.org/         al.org/content/23/154/1099/
                                                   396,05                                                                                      CIO www.cio.com, 140,000
   Data Centers and       5182,
                                     7294      32       7 Information Technology Association of America   ITEC regional shows                  circulation, online, print ads
   Computer Systems       5191,
                                    25103       8 170,72 www.itaa.org                                     www.goitec.com                       www.infoworld.com online
   Design                 5415
                                                        4                                                                                      rates
                                                                                                                                               Specialty Food News
   Other Food Mfg                                                                                         Summer and Winter Fancy Food         www.specialtyfood.com
                          3119        335       47    3444 Food Institute www.foodinstitute.com
   (Specialty Food)                                                                                       Shows www.specialtyfood.com          Food Institute Daily, online
                                                                                                                                               ads $900
                                                                                                          Worldsteel-43 Annual Conf. 2009
   Steel Prod. Mfg.
                          3312          10      17    1061 World Steel Association                        http://www.worldsteel.org/?actio
   (Purch. Steel)
                                                                                                          n=eventsdetail&latest=1&id=85
                                                                                                          Fall Pressure Vessel Conf.
                                                                                                          http://www.steeltank.com/Educat      Tank Talk
   Boiler and Tank                                         Steel Tank Institute/SPFA                      ionEvents/CalendarofSeminarsCert     http://list.steeltank.com
                          3324          94      85     782
   Mfg.                                                    www.steeltank.com                              ificationCourses/tabid/106/ctl/Det   Industrial Product News
                                                                                                          ail/mid/501/EventID/56/Default.as    www.ipnews.com
                                                                                                          px
                                                                                                          Worldsteel-43 Annual Conf. 2009
   Other Fab. Metal
                          3329        -819     -95   60,947 World Steel Association                       http://www.worldsteel.org/?actio
   Prod. Mfg.
                                                                                                          n=eventsdetail&latest=1&id=85
   Ag., Constr., Mining                                       Assoc. of Equipment Manufacturers           ASME Turbo Expo 2009
                          3331          68     590    3,543                                                                                    None
   Mach. Mfg.                                                 www.aem.org                                 www.asmeconference.org
   Engine, Turbine,
                                                              Assoc. of Equipment Manufacturers
   Power Transmission     3336         -35      93    1,085                                                                                    None
                                                              www.aem.org
   Equip. Mfg.
   Gen Purpose                                              Assoc. of Equipment Manufacturers
                          3339        -475      82    6,717
   Machinery Mfg.                                           www.aem.org
   Nav., Meas., Elec.,                                      Int’l. Society for Measuring and Control                                           In Tech
                          3345          67     132    7,344                                               Electronic Distribution Show
   Control Instr. Mfg.                                      www.isa.org                                                                        www.isa.org




Marketing Strategy and Plan for Acadiana Economic Development Council                                                                                                           11
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                        September, 2009



    Table 5. Marketing Resources for Acadiana Target Industries (con’t)
                                     New Jobs
                                      Loc.   /
                      Long-Term     2003- Proj   Estab. In
   NAICS              Target         2007 ect        2007    Trade Association             Trade Show                    Trade Publication
                                                                                           Biofuels Conferences
                                                             National Biodiesel Board      http://www.biofuelsconferen
                                                             http://www.biodiesel.org/     ces.com/                      Biodiesel Magazine
                      Alternative                                                                                        http://www.biodieselmagazine.c
   325193                            151    21        241
                      Energy                                 Renewable Fuels Association   National Ethanol Conference   om/
                                                             http://www.ethanolrfa.org/    http://www.nationalethanolc
                                                                                           onference.com/




Marketing Strategy and Plan for Acadiana Economic Development Council                                                                                     12
                     SITE EVALUATION




                                     for




                                    from




                               347 Girod Street
                             Mandeville, LA 70448
                               (985) 626-9868
                             FAX: (985) 626-9869
                            ebee@taimerica.com

Technology Assessment • Strategic Planning • Organization Design • Site Selection


                         September, 2009
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448        September, 2009




TABLE OF CONTENTS



INTRODUCTION                                                            3


FACTORS THAT DRIVE SITE SELECTION
DECISIONS                                                               3


THE LED SITE SCREENING CRITERIA                                         4


THE SITE CERTIFICATION PROGRAM
RECOMMENDED TO LED                                                      6


SITES IN ACADIANA REVIEWED FOR
CERTIFICATION                                                           7


THE SITE EVALUATION MATRIX                                              8


PARISH BY PARISH EVALUATION OF
SUBMITTED SITES                                                         12


CONCLUSIONS                                                             23




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     September, 2009




INTRODUCTION
Selecting a location for a company is one of the most critical choices made by business
owners and site consultants. Companies search for locations that offer cost savings, a
skilled workforce, a strategic location with good transportation accessibility, a favorable
business climate, a desirable quality of life, and other competitive advantages.

The competition among cities, regions, and countries of the world to attract and retain
businesses, jobs, and investment is intense. Companies interested in new facilities or
expansions are no longer limited by local or national geography. Rather, due to
sophisticated telecommunications systems and growing worldwide connectivity, they
can choose from a wide range of global locations that have in place competitive
marketing strategies, incentives, and programs that promote and facilitate investment.


FACTORS THAT DRIVE SITE SELECTION DECISIONS
An examination of any site’s assets and an assessment of its strengths, weaknesses, and
overall suitability for industrial uses requires a benchmark for comparison. In our
experience working with clients on site selection issues, the benchmark is not an abstract
ideal; rather it is based on definite preferences that reflect the requirements of the
proposed project. Site selection is not an academic exercise with unlimited time and
budgets. Rather, it is driven by a number of practical needs and the strategies that flow
from these. Typical overarching drivers are:

Time - Site decisions nearly always occur in a “fast track” environment, and projects are
usually manned by corporate staff that are overworked and often lack previous site
selection experience to draw from.

Risk – Decision-makers are risk averse. The perception of risk is not limited to a few
specific factors; it is pervasive and cuts across many factors (labor force, schedule,
nonrecurring and recurring costs, environmental, operating climate, etc.). With little
time to adequately assess risk, most decision-makers will elect to avoid “apparently
risky” sites if there are available alternatives.

Resources - Site selectors within a company must compete with other demands for
limited corporate manpower and financial support. The resources available to conduct
site selection studies are limited and sometimes inadequate to the task.

These factors cause the site selection process to be driven by practical concerns. It is less
about finding the perfect site than it is about finding a site that works for the project. It
is a compromise. Little time will be spent examining a candidate site or community in



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                      September, 2009



detail unless it first passes muster on very basic site selection criteria. This means the so-
called “site selection” program is, in reality, a search for fatal flaws. Once such a flaw is
identified, the community/site is excluded from further consideration. Site “selection”
only occurs in the final stages of the program, when a short list of suitable candidates is
being evaluated.


THE LED SITE SCREENING CRITERIA
Taimerica developed recommendations for site certification screening criteria for
Louisiana Economic Development in June 2008. Draft guidelines for site review and
certification were presented by Brian Chapman of LED to the economic development
community at the LIDEA Real Estate Development Course on June 30, 2009. This review
of Acadiana sites is based on the LED checklist, supplemented where appropriate by our
original recommendations, which were based on the Oregon Site Certification program.

The Industrial Site Certification program administered by the Oregon Economic and
Community Development Department certifies three types of sites: Manufacturing,
Office, and Distribution. Based on our review, Taimerica believes this program is Best
Practice for several reasons:

    -   Ten regulatory departments in the state are involved in advance review and in
        the permitting process, and must sign off in separate letters on each site prior to
        certification;
    -   Definite delivery dates are required for all utilities and infrastructure (180 days
        from site purchase);
    -   Site visitation, site review, and certification by an independent third-party
        consultant adds credibility;
    -   Certification itself via letter from the Governor’s office confers authority;
    -   Adequate and effective promotion gives added exposure to certified sites;
    -   Notebook of all site data, maps, schematics with a compilation of sign-off letters
        and certification documents, assures site consultants and prospects of the
        diligence of the site preparation.

This assertion is supported by the following three facts, each of which is a direct result of
this program:

    -   A larger inventory of prepared sites is available in Oregon;
    -   Communities continue to add sites for certification beyond the initial launch;
    -   Site consultants can identify specific successful projects that were a direct result
        of the shortened development-to-construction time for certified sites.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  September, 2009



The Louisiana Certification program includes nine screening criteria, shown below, which
are a subset of those we recommended in June 2008:
    1. 10 acres or more of the site above the 100-year flood plain;
    2. A set price per acre for the site that is quoted in writing;
    3. Legal instrument demonstrating control of the property (fee simple ownership by
        EDO or option with private landowner);
    4. Industrial use permitted by zoning ordinance;
    5. A minimum of 50,000 gallons/day of potable water can be available to site
        boundaries within 180 days of purchase by a prospect company;
    6. A minimum of 50,000 gallons/day of sanitary sewer capacity can be available to
        site within 180 days of purchase by a prospect company;
    7. Documentation that three-phase electrical power is available to the site;
    8. Documentation that a Phase I Environmental Audit has been completed on the
        site;
    9. Documentation that the highway providing access to the site is capable of
        supporting 83,400 lbs. gross weight trucks.

Requirements #5, #6, and #9 need further definition. A series of documents need to be
developed to demonstrate to a site consultant that the water and sewer volume cited in
#5 and #6 can be delivered to the site within 180 days. We have outlined these steps in
our screening matrix for cases where municipal capacity is not available adjacent to the
site currently. For criteria #9, we would assume that the gross weight criteria covers the
entire transportation route from interstate highway to property and not just the highway
at the site. Bridge limits could in fact reduce the truck-carrying capacity of a highway
serving the site and should be included as a screening criteria.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                      September, 2009




THE SITE CERTIFICATION PROGRAM RECOMMENDED
TO LED
The site certification process that Taimerica recommended for LED is as follows:
applicants will complete the LED Site Certification Cover Sheet and Checklist and provide
the data and the documentation requested. This information, from site owners, local
and state government sources and other agencies, will form a complete picture of the
site’s readiness for a business or industrial prospect. After LED receives the application
package, an independent site consultant will review all site applications quarterly to
certify that sites meet siting timetables, thereby ensuring high and consistent standards
of site quality, and compliance with all criteria as detailed in the Checklist (see Figure 1).
Our conversations with LED suggest that most of the flow chart will be enacted when the
program is announced.

Figure 1. Site Certification Process Flow Chart

          Owner




     Local Government
                                Applicant           LED           Certified Site
                                or EDO
      State Government



                                             Site Consultant
         Studies
         and
         Other




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                September, 2009




SITES IN ACADIANA REVIEWED FOR CERTIFICATION
Taimerica examined 11 sites submitted by the EDOs in each of six parishes in the region
for the suitability for state certification (see Map 1). We evaluated each of the nine
screening criteria released by LED on June 30 th, 2009. Where the LED screening criteria
lacked specificity, we outlined the documentation that would likely be required by an
outside consultant to demonstrate that critical infrastructure could be delivered to the
site within 180 days.

Map 1. Acadiana Site Location Map




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                     September, 2009




THE SITE EVALUATION MATRIX
The site screening factors have been organized into eight categories (see the three-page
Site Evaluation Matrix at the end of this section). All of the factors for each site are
organized into one of three classifications, shown on the top row of each page: In Place;
Needed for Certification; or Not Available. For some factors, such as site control, the
EDO might have several options for certification, such as ownership or the option to
purchase. One option might be marked Not Available while the other is marked Needed
for Certification.

For those items marked as Needed for Certification, the paperwork documenting the
status has not yet been developed or was not available for review by Taimerica. Without
proper documentation, the site will not be certifiable. In cases of utilities, a series of
documents are required to demonstrate that all of the elements are in place to meet the
180-day timetable for delivery of services. If all of the steps in the category are not
marked as In Place, it is unlikely that the site can be certified. The checklist of items
under each of the utility categories is intended to serve as a checklist of items that are
needed prior to submitting the certification application to LED.

Knock-out factors for certification will be discussed in the next section. An item marked
Not Available is not necessarily a knock-out factor for certification if another option
within the category is deliverable within 180 days.

The only sites in Acadiana that appear ready for certification “as-is” are the Northpark
site in Lafayette Parish and the Breaux Bridge site in St. Martin Parish. Seven additional
sites look certifiable under the LED draft guidelines. Only the Airport site in Acadia Parish
and the Hwy 167 site in Vermillion Parish appear to have fatal flaws for certification. For
the Airport site, the lack of municipal water and sewer service and highway load limits
will eliminate it from certification. The Hwy 167 site in Vermillion does not have access
to 50,000 gallons per day of wastewater treatment capacity. This is a definite knock-out
factor. Unless the private owner is willing to provide sewer service and has all of the
requisite permits in place, this site is unlikely to meet minimum certification standards.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                                                         September, 2009




                                                                   Acadiana EDC Site Evaluation Matrix
                                              In Place                Needed for Certification                      Not Available
                                                             Acadia                Iberia              Lafayette           St. Landry         St. Martin         Vermillion

                                                                                           Off                                     W        Breaux
                                                         Airport    Duson     Airport    Airport   Northpark Broussard Wal-Mart Opelousas   Bridge   Off US 90     Hwy 167
        C     Property is EDO owned and for sale
        o     or lease?
        n     EDO has an option to purchase
        t     Letter from owner lists price and
        r     sale terms
        o     Price is set in writing in signed letter
        l     by owner
       P      No zoning ordinance in place
       e      Site is now zoned for industry
                Zoning good for heavy industry
       r
              Other Local/parish permits needed
       m
              for development?
       i
       t       Local/parish permits obtainable
              within 180 days of purchase?
       s
       F      Flood plain elevation set by FEMA?
       l      At least 10 acres of site above 100
       o      year flood plain?
       o      Portions of site can be raised above
       d      flood elevation?
       L
       i      Structures now on site?
       m      Easements and right of ways on site
       i      identified on plat?
       t      Restrictive covenants on use?
       s      Liens or other encumbrances?




Site Evaluation for Acadiana Economic Development                                                                                                                                          9
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                                                       September, 2009




                                                                 Acadiana EDC Site Evaluation Matrix
                                            In Place                Needed for Certification                      Not Available
                                                           Acadia                Iberia              Lafayette           St. Landry         St. Martin         Vermillion

                                                                                         Off                                     W        Breaux
                                                       Airport    Duson     Airport    Airport   Northpark Broussard Wal-Mart Opelousas   Bridge   Off US 90     Hwy 167
       C      Public service currently available at
       W      site?
       o
       a       Provider has issued letter offering
       n
       t      capacity (50,000 gpd)
       t
       e      Public service can be extended
       r
       r      within 180 days?
       o
                End of closest line identified on
       l      map?
       S
       e      Permits for all ROWs in hand?
               Provider has issued letter offering
       r
              capacity (50,000 gpd)
       v
              Design/engineering is
       i      complete(plans in hand)?
       c      Financing plan is complete and in
       e      writing?
              Public service currently available at
       S      site?
       e       Provider has issued letter offering
       w      capacity (50,000 gpd)
       e      Public service can be extended
       r      within 180 days?
                End of closest line identified on
        S     map?
        e     Permits for all ROWs in hand?
               Provider has issued letter offering
        r
              capacity (50,000 gpd)
        v
              Design/engineering is
        i     complete(plans in hand)?
        c     Financing plan is complete and in
        e     writing?




Site Evaluation for Acadiana Economic Development                                                                                                                                       10
Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                                                                                                        September, 2009




                                                                  Acadiana EDC Site Evaluation Matrix
                                             In Place                Needed for Certification                      Not Available
                                                            Acadia                Iberia              Lafayette           St. Landry         St. Martin         Vermillion

                                                                                          Off                                     W        Breaux
                                                        Airport    Duson     Airport    Airport   Northpark Broussard Wal-Mart Opelousas   Bridge   Off US 90     Hwy 167
       C      Location of nearest substation
       o      identified on map?
       P
       n      3-phase service now available at
       o
       t      site?
       w
       r
       e      Provider has issued letter commiting
       o
       r      to 3-phase service within 180 days?
       l      Phase I Environmental Audit is
              complete?
       O
              Site accessible via state or federal
       t
              highway?
       h      Highway owner at site has issued
       e      letter indicating road will support
       r      83,400 lb gross weight?


              In Place
              Needed for certification
              Not available




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009




PARISH BY PARISH EVALUATION OF SUBMITTED SITES
The following is a recap of the ratings site by site for each of the Team Acadiana Parishes.

Acadia Parish

Two sites were evaluated in Acadia Parish: 1). An airport site owned by the Police Jury;
and an Interchange site on I-10 at Duson.

Airport Site
The Acadia Parish Police Jury owns 610 acres (+/-) south of US 90 about two miles
southeast of Esterwood (see Map 2). The site is rural and is surrounded by active farms.
It is ten miles from the nearest I-10 interchange and lies over one mile from US 90.
Trucks have to cross a pontoon bridge to access the site, which is a knock-out factor for
manufacturers needing truck access. The site is remote from municipal utilities, which is
another knock-out factor in terms of its use as an industrial site. We believe that the
cost to extend utilities to the site make it a higher cost option to develop than parcels
that are closer to municipal utilities.

Map 2. Airport Site in Acadia Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009




Duson Site
About 40 acres of land is available north of I-10 at the LA 95 interchange of I-10 (see Map
3). The site is adjacent to a casino and convenience station and is owned by a private
owner. It has direct access to I-10. The site is certifiable if municipal water and sewer
service can be provided within 180 days. The owner must also provide a set option price
to the EDO in order to meet the LED screening criteria.

Map 3. Duson Site in Acadia Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009




Iberia Parish

Two sites were evaluated in Iberia Parish on or adjacent to the Acadiana Regional Airport
(see Map 4). The Acadiana Regional Airport has some unique locational assets, such as
8,000 foot runways and a seaplane landing runway, which suggest that aerospace-
related uses are most appropriate for the airport-owned properties.

Map 4. Airport Sites in Iberia Parish




On-Airport Site
The Airport Authority owns approximately 200 acres of land west of the main runway
that has been reserved for industrial development in the FAA-approved master plan.
The airport owns the right-of-way for extending utility services to the site. Site access to
US 90 (which will become I-49 in the future) is via LA 3013, which would need to be



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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009



upgraded to accommodate 83,000 lb gross loads. The site should be certifiable if utility
extensions and highway issues are addressed. The airport authority is outside the
domain of the Parish zoning code so it can unilaterally allow industrial uses, subject to
FAA height and smoke requirements.

Off-Airport Site
The IDF has identified a site adjacent to US 90 that is for-sale by a farmer. The site is
visible from US 90. A small water line (3”) fronts LA 3212, which forms the northwestern
boundary of the site. The site is ideal for a corporate business park because of its
adjacency to US 90. The IDF can obtain certification for this site if better highway access
to US 90 and a plan is developed for providing water and sewer service to the site. The
site will need to be rezoned for industry under the Parish’s new ordinance.




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009




Lafayette Parish

Northpark
LEDA owns approximately 30 acres of undeveloped property south of its successful
Northpark business park south of Mouton Road (see Map 5). Some of the property lies
within the flood zone and cannot be developed. The remaining 20 acres are adjacent to
the LEDA park, which has full utility services in place. The utility lines are across the
street from the undeveloped site and could be extended to the property limits without
right-of-way permits. The site is properly zoned for industrial uses. This site is ready for
certification subject to documentation on the availability of utility capacities and prices
and demonstration that a Phase I Environmental Audit has been completed.

Map 5. Northpark Site in Lafayette Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  September, 2009




Broussard
A private landowner in Lafayette Parish has a 118 acre rail served site for sale on US 90
near Broussard (see Map 6). The site has been examined by an engineer who confirms
that it lies above the 100 year flood plain. The site has 0.75 miles of frontage on the
railroad mainline which is an important asset, especially for alternative energy projects.
Highway access for heavy trucks is available via US 90. The site lacks municipal water
and sewer service currently. The site should be certifiable once the owner can
demonstrate that adequate water and wastewater capacity is available to meet
certification minimums, and that a price has been set in writing with LEDA having an
option to purchase at that price.

Map 6. Broussard Site in Lafayette Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                September, 2009




St. Landry Parish

Two sites were evaluated in St. Landry Parish that are owned by the Economic and
Industrial Development District.

Wal-Mart Property
The District owns 115 acres adjacent to the Wal-Mart distribution center on LA 744 (see
Map 7). The Wal-Mart operation has District-owned water and sewer utilities that are
operated by the City of Opelousas. The site should be certifiable once the District can
demonstrate that adequate water and sewer capacity is available to meet certification
minimums. The site is within a half-mile of the I-49 interchange, which makes it a prime
location for distribution and manufacturing operations.

Map 7. Wal-Mart Site in St. Landry Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                      September, 2009




W. Opelousas Property
The District owns 422 acres off of LA 3043 West of Opelousas and about one mile west of
the Opelousas airport (see Map 8). The site is on an active rail line. Municipal water is
available at the site through a 3” line, which is unlikely to provide the volume needed for
certification or for providing fire protection pressures. The site lacks municipal sewer
service and the nearest sewer line appears to be at least three miles from the site.
Another disadvantage of the property is its distance from the interstate highway. Truck
traffic would have to travel over five miles to the nearest interchange and trucks must
pass through downtown over a narrow two-lane road to reach the site. Highway 3043 is
not likely to meet the gross load limits of a certified site. The site’s advantage is its
frontage on the railroad. If this site is going to become certified, the District will need to
have plans developed to improve road access and to deliver industrial water and sewer
service within 180 days.

Map 8. W. Opelousas Site in St. Landry Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009




St. Martin Parish

Two sites were evaluated in St. Martin Parish for their ability to achieve state
certification.

Breaux Bridge
The Police Jury in St. Martin Parish has developed a business park adjacent to I-10 at
Breaux Bridge (see Map 9). The property has all utilities and streets in place. It is within
.35 miles of the interchange. Although most of the sites are too small to serve large
manufacturing plants, the property has seven sites of three to four acres that could
accommodate smaller industrial or manufacturing operations. The site has excellent
visibility on I-10 and could serve as a good office building location. This site is readily
certifiable provided that the owner sets a firm price in writing and gives the EDO an
option to purchase at that price.

Map 9. Breaux Bridge Site in St. Martin Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                    September, 2009




Off U.S. 90 Site
A private owner is developing a 160 acre industrial park on the St. Martin-Iberia Parish
line (see Map 10). A subdivision plat has been filed to divide the property into a series of
small commercial lots that are designed to match the needs of oil service firms. The
property is due east of a successful SLEMCO industrial park. The site is about 0.5 miles
east of US 90, which will become I-49 in the future. Direct access is available in a
northbound direction from US 90 but trucks on the southbound side of US 90 must travel
about three miles south to the nearest traffic signal, where they can make a u-turn to
return to the property.

Map 10. US 90 Site in St. Martin Parish




The site is unlikely to achieve certification unless the owner can demonstrate that they
will provide water and sewer capacities needed by industrial customers. The lot sizes
and street layouts, as subdivided, are too small to allow clients with a five- to ten-acre
need to assemble a site with the proper site depth. While this property will serve oil


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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                   September, 2009



service companies, it is unlikely to be effectively marketed, as platted, to industrial
customers.


Vermillion Parish

One site was evaluated in Vermillion Parish, located on US 167 approximately 3.5 miles
North of Abbeville (see Map 11). The site is about 32 acres and has been subdivided into
a series of one-acre lots. The property has streets and municipal water but lacks sewer
service. The small lot sizes limit the properties’ marketability for industrial clients who
typically want to buy five- to ten-acre parcels or more. The property is owned by a
private developer. Without an engineering and financing plan to provide sewer capacity,
the site is unlikely to be certifiable under the LED program.

Map 11. US 167 Site in Vermilion Parish




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Taimerica Management Company | 347 Girod Street | Mandeville LA 70448                  September, 2009




CONCLUSIONS
This site review suggests that Acadiana has limited industrial and business sites that are
ready for immediate occupancy for expanding or new businesses to the region. Only two
of the six parishes can currently meet the LED certification requirement of having a site
ready within 180 days of purchase. Other sites are potentially available to meet the
needs of target industries for Acadiana but local EDOs will have to undertake engineering
and planning studies to get these site ready for certification. The lack of public
wastewater capacity is a pervasive issue for site certification, since a site owner must
demonstrate in writing the ability to provide 50,000 gallons per day of capacity within
180 days of site purchase. Our strengths and weaknesses assessment suggests that
many of the public systems in the region lack this level of available capacity.

While site development is not a core function of the AEDC, it is nevertheless important
to the group’s success. It is an organizational issue that should be discussed in the
upcoming stakeholder’s workshop.




Site Evaluation for Acadiana Economic Development                                                  23
              REGIONAL MARKETING

                    STRATEGIC PLAN



                                  for




                                 from




                              347 Girod St.
                          Mandeville, LA 70448
                             (985) 626-9868
                           FAX: (985) 626-9869
                          ebee@taimerica.com
Technology Assessment•Strategic Planning•Organization Design•Site Selection



                             May, 2010
Regional Marketing Strategic Plan for Acadiana Economic Development                      May, 2010




                           TABLE OF CONTENTS




INTRODUCTION                                                                        3


THE MISSION FOR AEDC                                                                4


BUSINESS RETENTION AND EXPANSION                                                    5


MARKETING AND PROMOTION                                                             7


WORKFORCE RECRUITMENT                                                               12


ORGANIZATIONAL ISSUES                                                               14


BUDGET AND STAFFING                                                                 15


CONCLUSIONS                                                                         19


APPENDIX                                                                            20




Taimerica Management Company | P. O. Box 977 | Mandeville LA 70470 | 985.626.9868               2
Regional Marketing Strategic Plan for Acadiana Economic Development                                 May, 2010




INTRODUCTION
INTRODUCTION
A solid economic development marketing initiative by Acadiana Economic Development
(AEDC) would be a major step toward diversifying and sustaining Acadiana’s economy.
Diversification would benefit both the region and the state as a whole by attracting and
retaining companies in high-growth industries. Such companies would serve as economic
drivers regionally and statewide. The more varied and vibrant business environment they
would create would also make the region a more desirable place to attract an expanded
talent pool.

A sustainable and diversified economy doesn’t occur by chance. The region must have what
business needs to succeed and grow. However, the region must also actively market itself as
a business location if it is to achieve these desired results. Competition for businesses
nationwide and globally is fierce. Localities, regions, and states are aggressively marketing
themselves to businesses in order to increase business vitality and grow their economies. No
matter how desirable Acadiana might be as a business location, it cannot attract businesses
unless it mounts an effective marketing campaign.

Marketing to business is complex. It can often be difficult to determine what the most
effective tactics and strategies are. However, there are many lessons to be learned from
research and experience on how to reach out, follow up, and measure success. Focusing on
developing a well conceived plan with reasonable goals and outcomes, allocating appropriate
resources, and establishing a management structure are elements that will lead to success,
assuming that the product—the location being promoted—is solid, as Acadiana certainly is.

AEDC is a complex organization. Under its Tier I grant with LED, it has a contractual obligation
to perform 90 business retention visits during 2010 and the number could be increased or
decreased in the future. The number of industry visits in 2010 will require almost 100 percent
of a full-time AEDC staffer. Visits made by the Acadiana Executive Director or by local EDOs
can count against this number but AEDC is ultimately responsible to LED for 90 visits in the
Acadiana parishes. Staff time by AEDC can be reduced below 100% by teaming with local
EDOs but our recommendation as E.D. consultants is to have a Memorandum of
Understanding executed with each of the partner EDOs and with the Regional Director that
identifies the specific number of industry calls that each organization will complete. The Tier I
contract also specifies other activities that AEDC must complete during the contract. These
activities supersede other marketing functions or duties that the board set for the
organization because this contract encompasses nearly all of the organization’s budget.

The board of AEDC recognizes that the budget requires the organization to focus its
marketing and promotion activities on just a few of the targets identified in the target
industry study. By extension, this limits the marketing and promotion activities that the
organization will launch. Based on priorities set by the board and stakeholders in the



Taimerica Management Company | P. O. Box 977 | Mandeville LA 70470 | 985.626.9868                          3
Regional Marketing Strategic Plan for Acadiana Economic Development                                 May, 2010



September 16, workshop, the priority targets industries are: Administrative offices; Data
centers; and Navigation and Control Instruments. The operational plan presented in this
document assumes that AEDC will limit its marketing and promotion activities to just these
three industries.

Louisiana Economic Development has launched a state targeting study based on the Blue
Ocean concept. Blue Ocean is intended to identify long-range targets for Louisiana. The
targets identified in this study are for immediate marketing and promotion. The AEDC board
might want to revise its list of target industries once the Blue Ocean study is completed.


THE MISSION FOR AEDC
The following mission for AEDC was crafted from input collected at a board and
stakeholder workshop on September 16, 2009:

    The Acadiana Economic Development Council (AEDC) is a collaborative initiative
    of seven parishes in the Acadiana region. AEDC’s mission as a regional economic
    development and marketing organization is to promote the Acadiana region for
    new and expanded business investment and to help ensure the growth of its
    skilled workforce. In addition, AEDC coordinates prospect and site consultant
    visits to the region, provides technical assistance to its local economic
    development partners as needed, and provides additional research capacity for
    effective marketing to the targeted industries. Finally, AEDC is the lead
    organization in Acadiana for the Business Retention and Expansion program,
    which includes business visitations.

This mission revises the current mission statement that AEDC is operating under. It
encompasses the activities that the organization must accomplish under its Tier I grant with
LED while adding activities and functions that the board and stakeholders felt were critical to
the sustainability of AEDC over time.

A series of four goals were developed subsequent to the board/stakeholder workshop and a
review of current programs with the AEDC staff on September 17. While the board’s
preference was to focus AEDC in marketing and regional promotion activities, the
organization is also bound to perform a defined set of activities, such as business visits, under
its Tier I contract with Louisiana Economic Development. The following four goals represent a
summation of both board directed and contract directed activities.




Taimerica Management Company | P. O. Box 977 | Mandeville LA 70470 | 985.626.9868                          4
Regional Marketing Strategic Plan for Acadiana Economic Development                         May, 2010




BUSINESS RETENTION AND EXPANSION (BR&E)

Goal #1:
The existing businesses and industries in Acadiana are visited
regularly, and local business climate issues impacting these firms
are resolved expeditiously.
The following set of action steps are needed to fulfill Goal #1:

   1.1.    AEDC continuously maintains a comprehensive list of all business and
           industries in the region.
   1.2.    AEDC will continue to use LED’s Synchronist license to compile information on
           the business retention and expansion situation in Acadiana. Synchronist data
           will be analyzed quarterly to identify important issues of concern to regional
           employers.
   1.3.    AEDC will be the primary agency handling the Acadiana Business Retention
           program, making the number of annual visits required by the LED contract.
   1.4.    AEDC will either hire a full-time Business Retention Coordinator or execute a
           Memorandum of Understanding with each of its local EDO partners that
           insures that the number of annual visits required in the LED contract is
           completed.
   1.5.    AEDC shall develop and collect specific measurable performance outcomes
           from all businesses receiving assistance, which should include at a minimum:
           a. Names of businesses assisted;
           b. Number of jobs saved and corresponding wage rates;
           c. Summary of strategies used to assist and the outcomes for each strategy;
           d. Measured increases in productivity; and
           e. If applicable, verified higher post-training wages of participating
                employees.
   1.6.    AEDC will develop a data base of business needs and challenges, based on
           input from its Synchronist surveys, matched to specific available assistance.
           AEDC will develop specific actionable items to address the needs and
           challenges of each business and will coordinate a community engagement
           process of addressing all indicated needs and challenges.
   1.7.    AEDC should identify and promote business retention incentives to regional
           firms.
   1.8.    AEDC, when applicable, will identify those economic driver businesses that
           are managed by an out-of-state headquarters. In these cases an ongoing
           visitation schedule will be developed so that the site manager and AEDC and
           its appropriate local partners can visit the company headquarters on a
           periodic basis to determine the needs and challenges of senior management



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          as it pertains to their Acadiana operations. AEDC will develop and host
          quarterly business roundtable discussions to facilitate this process.
  1.9.    AEDC, working with its partners, facilitates connections between local
          employers and available business resources.
  1.10.   AEDC, working with local Chambers of Commerce and its partners, conducts
          an annual regional business appreciation award program.
  1.11.   AEDC, working with LED, will develop and host a semi-annual Regional
          Industry Roundtable for key leaders from targeted regional industry clusters
          where they can discuss common problems and opportunities.
  1.12.   AEDC, working with local colleges, will survey business owners to gauge the
          value of developing a web-based “discussion center” for manufacturers to
          exchange information on current concerns/issues.
  1.13.   AEDC will partner with the LA Workforce Commission and ASHRAM as
          appropriate to conduct an annual wage and/or benefit survey for the local
          manufacturing, office and technology communities.
  1.14.   AEDC will make a concerted effort to build a network of business contacts and
          leads from existing businesses to serve as marketing possibilities.

OUTCOME: In the next five years, none of the existing economic
base companies in Acadiana on the AEDC call list will relocate to
other regions of the US.
MARKETING AND PROMOTION

Goal #2:
The marketing and promotional efforts of the AEDC have
resulted in attracting new and diverse business investment and
the creation of higher wage employment. This diversity builds on
the mix of existing manufacturing operations, and expands the
outreach to business and professional firms and office
operations.
The following set of action steps are needed to fulfill Goal #2. The actions have been
grouped under a series of four marketing objectives: Regional Brand Development and
Image Promotion; Targeted Marketing; Web and Print Materials; Business Intelligence
and Capacity Building.

2.1 Regional Brand Development and Image Promotion

   2.1.1. AEDC will identify, using modified Synchronist interviews and a web based
          survey, the image of the community as held by local residents and businesses.
          This task could be aided with the assistance of a national consultant such as
          Development Counsellors International (DCI).
   2.1.2. AEDC will identify, with the assistance of a consultant such ad DCI, the
          perception of the community’s image as held by prospective investors.
   2.1.3. AEDC, working with its partners, will develop and agree on a brand theme for
          the region and will hire a public relations agency to “refine” this brand and
          any associated graphics and logos. This brand might focus around the “Cajun”
          theme. Branding a community helps a target audience understand what the
          region represents. Effective marketing begins with a clever brand identity that
          considers the “needs” of a target audience. By establishing a strong brand
          that differentiates Acadiana from competing areas, the region increases it
          ability to retain and attract businesses, create better jobs, and continue to
          grow its quality of life attributes. A brand identity is a word in the mind of the
          target audience that links to particular emotions and expectations to the
          community.
   2.1.4. AEDC will build awareness of Acadiana’s new brand both inside and outside
          the region by developing sales presentations that incorporate the new brand
          and marketing message and that “sell” Acadiana to targeted regions and
          target industries. The actual media campaign and message should be
          developed with an outside consultant such as those mentioned in 2.1.2 and
          2.1.3. AEDC cannot expect to achieve a nationally recognized brand name like
        Coca-Cola or Lexus but can be successful building a niche brand in strategic
        regions and among executives in targeted industries. The marketing and
        promotion plan should incorporate the niche strategy for branding.
2.1.5. This branding may also lead to the developing of an appropriate logo. The
        identity, brand, and logo should highlight the unique assets of the region for
        business and industry, and should be used consistently throughout the
        promotional materials, letters, web site, business cards, etc.
2.1.6. AEDC will engage a top-notch public relations firm such as DCI to generate
        positive publicity about Acadiana outside the region. This could include
        targeting such publications as Money Magazine, The Wall Street Journal,
        trade journals relevant to the target industries, and other industry and
        business publications.
2.1.7. Consideration should be given to advertising in 1 or 2 industry publications
        once there is a commitment from the editor that they will publish a one-page
        story on Acadiana. The list of appropriate publications is listed in the
        Marketing Plan developed for this project.
2.1.8. Working with a local marketing firm, AEDC should strengthen its relationship
        with local media. An excellent way to develop a closer relationship is to have
        a staff person assigned to attend meetings of the public relations and media
        association in Lafayette. These contacts are typically the source of leads for
        success stories on local businesses to use in national marketing and public
        relations activities.
2.1.9. AEDC will take the necessary steps to create a new and more positive image
        for the region that will include:
        a. Soliciting testimonials and utilizing local companies in regional marketing
            and recruitment efforts.
        b. Reviewing, updating, and improving as necessary the promotional
            materials that highlight the key locational advantages of Acadiana,
            particularly with respect to transportation, technology resources, quality
            of life, skilled labor supply, etc. Most of the needed data is current
            because it was gathered for this project. Staff might periodically hire
            development consultants to update this information.
        c. Working closely with the State and regional agencies to develop stories
            and to gain national and regional press coverage about the region.
        d. Working closely with the State and regional agencies to host business
            writers on familiarization (“FAM”) trips to the area to write feature stories
            about economic-related activities in the region.
        e. Making presentations about the community’s brand and image to local
            government officials and community groups, and appear on local cable
            and in the newspaper.
2.1.10. AEDC should sponsor an annual forecast event in Lafayette that discusses
        Acadiana’s economic future. Invite supporting economic development
        organizations, elected officials, and local business leaders.
   2.1.11. AEDC should attend, sponsor, and/or speak at three to five industry
           association meetings and conferences a year within Acadiana.

2.2 Targeted Marketing

   2.2.1. AEDC will revise its web site to reflect the new strategic agenda. Taimerica
          has included a list of web sites to review in the appendix to this report. This
          activity involves creating an economic development-focused site to facilitate
          the access of relevant information on an as-needed basis by outside prospects
          as well as by internal customers (new demographics meeting the IEDC Data
          Guidelines for “making the project short list”, news, maps, local and state
          incentives, ‘contact us’, building and sites, small business development with
          links to state and county offices, business resource links, links to regional
          allies, strategic action plan, etc.). The site should be kept updated with news
          and information, on-line forms, etc. so visitors will want or need to return.
   2.2.2. AEDC should write several press releases to promote its marketing plan and
          the launch of AEDC’s revamped Web site.
   2.2.3. Local businesses such a regional banks and utilities should be asked to include
          links to AEDC’s Web site on the press releases discussed in 2.2.2.
   2.2.4. AEDC will identify a list of firms in the identified clusters for the purpose of
          promoting Acadiana as a location for their facilities. This identification of
          growth firms in the target industries should consider firms as small as 20
          employees (250 or more for back office/call centers).
   2.2.5. AEDC should identify target industry associations and events, one of which
          might be international. AEDC will attend at least two industry trade shows or
          conferences annually, preferably with LED, that are related to the key target
          industries. (Note: the focus on going to these trade shows is to learn more
          about the outreach opportunities to that industry and to develop prospect
          leads. Focus on setting up meetings with prospects at the trade show prior to
          attending rather than trying to "collar" people at the show. Continue to work
          with other allies as appropriate. Develop a plan to follow-up with contacts
          made.)
   2.2.6. AEDC should participate in international trade shows in Europe organized by
          LED that are oriented toward its targeted manufacturing industries.
   2.2.7. AEDC will work with local tourism agencies and lodging to place these
          materials so that they are readily accessible to tourists and visitors. Many
          location decisions have been initiated by a tourism visit to an area.
   2.2.8. AEDC should maintain a “kiosk” or advertising space in the Lafayette Regional
          Airport and promote Acadiana as a business location, and place promotional
          flyers at this advertising space.
   2.2.9. AEDC should develop positive long-term relationships with site consultants
          and corporate decision-makers. This might include the following:
          a. Make periodic visits to site consultants in their offices;
          b. Meet with consultants at roundtables and trade shows;
           c. Have consultants visit Acadiana for special events. Begin by developing a
                comprehensive list of all regional outings and events and determining
                which events to build sales-marketing activities that would have an
                “appeal” to targeted business decision-makers/site location consultants.
                Subsequently, AEDC will work with the tourism promotion agencies in the
                State and region to encourage and support "high profile" local festivals
                (e.g., Festival Internationale) or events to attract business visitors and
                attention to the region, and invite prospects and site consultants who
                have been contacted previously.
   2.2.10. AEDC should organize and implement collaborative economic development
           initiatives including joint marketing collateral and marketing trips. AEDC and
           its partners should make two or three marketing mission trips a year visiting
           key prospects.

2.3 Web and Print Materials

   2.3.1. Working with ULL, AEDC should create informative print or online marketing
          materials showcasing ULL’s research and training programs specific to each
          target industry. AEDC should include these materials in correspondence with
          economic development prospects.
   2.3.2. AEDC should conduct regular educational seminars with area partners on
          targeted industries.
   2.3.3. AEDC will create promotional materials in hard copy to provide as a tailored
          response to inquiries in the targeted industries and in electronic form for
          responding to emails and to place on the web site. This could include the
          creation of target industry fact sheets featuring data and information about
          the industry to convey why Acadiana is an advantage for a specific type of
          business operation. The strengths and weaknesses report can serve as a
          template for the information that should be included in each of the target
          industry fact sheets.
   2.3.4. AEDC should maintain a list of Acadiana sites on LED’s GIS-based Internet
          database. New Internet technologies now allow anyone to access maps
          through a normal web-browser, and this approach is becoming a new
          standard in economic development marketing.
   2.3.5. AEDC will develop collateral materials to be used in marketing the region.
          These materials should be developed as pdf-online files. These should be
          particularly designed to address each target audience.
   2.3.6. AEDC will work with local tourism agencies and lodging to place these
          materials so that they are readily accessible to tourists and visitors. Many
          location decisions have been initiated by a tourism visit to an area.
   2.3.7. AEDC should develop and distribute a fold-up map of Acadiana that highlights
          the main transportation features, the location of major industrial and
          commercial areas, the location of larger industrial sites and parks, and the
          location of major employers. A good example of this type of map is the
          Shreveport metro map issued by the Shreveport Chamber of Commerce.

2.4 Business Intelligence and Capacity Building

   2.4.1. Throughout the United States, prospect companies and site selection
          consultants are increasingly turning to regional EDOs for assembling project
          and site information on particular regions. This has become the norm
          throughout the rest of the United States. Acadiana must begin a transition to
          this new protocol to remain viable as a location for new business. AEDC will
          establish a standard prospect handling protocol within the region. As the
          regional entity for Acadiana’s economic development efforts, AEDC must be
          the central clearinghouse for client/prospect interaction with all economic
          development teams in Acadiana, including responding to Requests for
          Information. This awareness will allow AEDC to facilitate meetings between
          client/prospects and partnering organizations based on identified need or
          opportunity. For example, when in contact with a prospect, AEDC will identify
          the prospect’s needs (e.g., permitting assistance, financial assistance, or
          research) and will then schedule meetings between the prospect and the
          respective organization(s) that can address the needs. Conversely, partnering
          organizations will notify AEDC of their contact with prospects first, allowing
          AEDC to manage information flowing to and from the prospect. This not only
          ensures that all available Acadiana assets are offered to the prospect, but also
          that a single message is conveyed by the region. Other regional organizations
          we have worked with, such as the NE Indiana Partnership, have developed
          written guidelines that been well received by both communities and prospect
          companies. We recommend that you contact them to request a copy of their
          guidelines (www.chooseneindiana.com).
   2.4.2. AEDC should collaborate with Lafayette Entertainment Initiative to promote
          Acadiana for film production.
   2.4.3. Efforts should be made to connect the areas technical colleges and
          universities with AEDC by designating a university liaison. ULL should identify
          an economic development liaison to be the point person for interacting with
          clients, attending marketing missions, and conveying ED efforts and
          accomplishments back to the university. The liaison should be invited to
          attend marketing trips to other regions. Representatives from ULL should be
          invited to participate in meetings with potential prospects when appropriate.
   2.4.4. AEDC staff must develop subject matter expertise in Acadiana’s target
          industries. To more effectively communicate with Acadiana’s target
          industries, AEDC staff must develop expertise in the trends, issues, and
          characteristics that affect each sector. Having staff with detailed knowledge
          of the target industries will increase AEDC’s ability to craft messages that
          address the respective industries’ needs. This might include assigning a
          member of the AEDC staff to track and distribute target industry news, and to
          maintain a print or online file of target industry news.
   2.4.5. AEDC will compile and maintain resource information for each target industry
          sector. This would include maintaining a database of associations for each
          industry sector as well as following industry trends. This can be accomplished
          by monitoring trade publications or purchasing industry data and reports
          from private sources, such as Hoover’s, Economy.com, or relevant trade
          associations. Web site information and details on each trade association are
          shown in the Outreach Resources table in the Marketing Plan.
   2.4.6. AEDC will work with its partners to develop a Knowledge Management and
          communication system for sharing information on business recruitment leads
          and prospects. This can also be used for the BR&E program. An interactive
          and enhance website can provide the portal for this system. This needs to be
          a consistent and structured process, rather than an ad hoc effort. BR&E
          surveys can also be mined for prospect leads.

OUTCOME: At least 35 percent of the new jobs created in the
next five years will be in the focused target industries.


WORKFORCE RECRUITMENT

Goal #3:
Acadiana will attract and retain skilled and professional workers
to provide a foundation for a growing knowledge-based
economy.
The following series of strategic actions will allow AEDC to achieve Goal #3:

   3.1.    AEDC, working with its development allies and key companies in the region,
           should initiate focus groups and interviews aimed at understanding student
           and young professionals’ opinions about living in the region. This market
           research is an important tool in defining the talent recruitment campaign.
           Leaders in this type of effort have been Richmond, VA and Orlando, FL.
   3.2.    AEDC should incorporate the recruitment of skilled workers and professionals
           as part of the branding of Acadiana and subsequent promotional activities.
   3.3.    AEDC should identify through ULL and other data sources skilled workers and
           professionals who are alumni of the university, and target them for a
           promotional campaign to reacquaint them with the advantages of living and
           working in Acadiana.         The promotional campaign should investigate
      advertising in alumni magazines and newsletters, as well as via links to alumni
      association web sites.
3.4. AEDC should identify successful entrepreneurs to consider relocating to
      Acadiana to take advantage of its quality of life, higher education facilities,
      and skilled workers. Internet research tools are available to allow AEDC to
      identify the educational background of entrepreneurs.
3.5. AEDC should develop success stories of skilled workers and professionals who
      have returned or relocated to Acadiana to be used in the marketing
      campaign. The State of Wyoming has had one of the best programs for talent
      recruitment and should be consulted for more information.
3.6   AEDC should consider talent recruitment advertising and the identification of
      talent with regional roots using subscriptions and reports from Monster.com.
      Monster.com has databases with over 80 million resumes from throughout
      the world. They are able to identify individuals that have graduated from
      local high schools and colleges that desire to return to the area. They also can
      profile the skills and experience of these individuals and have tools available
      for establishing email or phone contacts with such workers. We recommend
      that AEDC investigate using Monster.Com as part of its talent recruitment
      effort (DISCLOSURE: Taimerica Management Company has a contractual
      relationship with Monster.Com). We offer this specific recommendation
      because we are unaware of any other company that can provide this kind of
      data and targeted promotion.
3.7. AEDC should create an attractive online relocation packet to be sent to
      potential skilled workers and professionals who might be attracted to
      Acadiana.          A good example of this can be found at
      http://www.desmoinesmetro.com/pdfs/freerelo.pdf, and another example is
      the Greater Des Moines Partnership workforce attraction video
      (http://www.desmoinesmetro.com/about/our-work-platforms/index.asp).
3.8. AEDC should expand recruitment capabilities through an enhanced online job
      brokering system, new social media marketing (e.g., Facebook), and unique
      and innovative messaging.
3.9. AEDC and its allies should create a young professionals’ networking group to
      provide a platform for this demographic to share ideas, learn from one
      another, establish business and client relationships, and advance in their
      careers.
3.10. AEDC and its allies should establish a mentor program and invite retired
      executives to speak and coach young professionals.
3.11. AEDC should incorporate talent recruitment into its public relations program
      (Action #2.1.6) to make young professionals aware of job opportunities in
      Acadiana. News stories about the job opportunities in Houston were
      successful at bringing young people there during the oil boom of the 1980s.
      Similar publicity has helped the State of Wyoming recruit professional
      workers from Michigan during this decade.
OUTCOME: In five years, economic base companies in Acadiana
companies will find qualified applicants to fill 100% of their
vacant skilled and professional jobs.


ORGANIZATIONAL ISSUES

Goal #4:
AEDC is the “clearinghouse” for economic development
initiatives in Acadiana.
The following set of action steps are needed to fulfill Goal #4.

   4.1.    AEDC will maintain a communication network among all the Acadiana
           economic development organizations.
   4.2.    Efforts should be made to ensure that AEDC is linked to the LED’s economic
           development efforts including its Web sites, recruitment events, collateral
           development, and public relations activities.
   4.3.    AEDC should promote the Acadiana economic development Web site as the
           primary source of information to target industries.
   4.4.    AEDC should periodically determine what technical assistance that it could
           provide to its local EDO partners. Examples of such services include industrial
           site identification, certified site evaluation services, or prospect simulation
           visits by E.D. consultants.
   4.5.    AEDC and its partners should secure appropriate funding for implementing
           the plan. This should include a private sector initiative. Our recommendation
           is to develop a fundraising committee that can identify regional banks,
           utilities, major retailers and large employers who need to recruit workers in
           the national labor market. The committee should develop a list of suspect
           companies, put together a sales brochure that outlines the mission and
           development strategy for AEDC. The committee members can then make
           calls on these companies to request that they become members of AEDC. As
           an alternative, AEDC could hire one of the national economic development
           fundraising firms such as NCDS.
   4.6.    AEDC, working with its partners, should establish and agree upon evaluation
           metrics for measuring success. These numbers should be calculated at least
           twice a year to assess whether marketing efforts are effective and the new
           brand identity is better recognized and received at a local, regional, state, and
           national level.
   4.7.    AEDC should work with member groups to develop certified sites throughout
           Acadiana. Services that will expedite the development of certified sites are
           engineering and design studies to estimate infrastructure development costs
           and layouts that meet target industry needs.

OUTCOME: In the next five years, AEDC will have budget
resources and internal business processes that match best
practice regional EDOs.


BUDGET AND STAFFING
The Tier I contract with LED identifies specific activities that AEDC must accomplish, most
of which are supplemental to the priority activities identified by the stakeholders in the
September 16 workshop. As the Tier I grant represents nearly 100 percent of the
organization’s budget, the Tier I activities must be incorporated into an operational plan.
The current budget is just sufficient to accomplish the Tier I objectives.

Table 1 presents the incremental budget required to accomplish the four goals, and
related objectives, identified by stakeholders. The budget encompasses the targeted
marketing activities outlined in the Marketing Plan produced in September 2009 for the
three focus targets. We estimate that a first year incremental budget of $339,000 is
needed to launch the program. The budget in the following years drops to $257,500.

This budget assumes that one additional staff person will be hired to handle the BRE
activities outlined in Goal #1. It is impossible in our view, based on 70 years of E.D.
management experience, to accomplish the BRE visitation/analysis/problem resolution
activities without a dedicated staff person. We have provided a budget estimate for this
staff position based on our recent work with best practice organizations-- all of which
have a dedicated staff for BRE functions. A Memorandum of Understanding with local
EDOs to conduct specific retention visits could reduce the staff time that AEDC must
spend on business retention, but we have not found this practice effective in our
research on best practice EDOs. The funds in the budget assigned for dedicated staff
could be spent on other activities once a MOU is in place and AEDC is certain that it can
fulfill its contract obligations to LED without a dedicated staff for BRE. In the meantime,
however, we believe it is prudent to budget for a dedicated BRE staff person.

A detailed budget for 2010 and for later years is shown in Table 1. Many of the strategic
actions in Goals #1-4 do not require line-item budgets and therefore are not listed in
Table 1. Some of the new activities proposed in the BRE program (Goal #1) require
additional funds. The majority of the new budget resources are dedicated to Marketing
and Promotion (Goal #2). A big part of Goal #2 is to build a regional brand and image.
We have assumed that AEDC will hire a national public relations firm to gauge the
current perception of the region’s image by outside investors (Action #2.1.2) as well as
work with national media to place favorable stories in the trade press, as well as in
general business publications (Action #2.1.6).

A significant amount of the resources in Goals #2-3 are dedicated to web site
enhancements or to prepare new marketing materials. These activities are programmed
for 2010, the first year of the operational plan. These activities require an estimated
$81,500 of budget in the first year of the plan.

The costs of identifying and attracting skilled workers (Goal #3) could expand as this
program unfolds. We have estimated that a modest budget is needed to test a
promotional campaign in a few test markets with a large population of ULL alumni. The
level of print or online promotion could expand beyond these estimates if the test
campaign is deemed successful. A big budget item in Goal #3 is for a relocation section
to the AEDC web site (Action #3.6). This is an important activity that should be launched
as soon as the basic market research is completed. It is the critical path in terms of Goal
#3.

Many of the activities in Goal #4 consist of enhancements to internal business processes
or to enhanced stakeholder services discussed in the board/stakeholder workshop.

Table 1. Estimated Additional Budget
Goal/                                                        Budget Estimate
Task#       Goal #1: BRE                            Year 1   Later Years   Notes
            Business Retention and Expansion
            Promote business retention                                     Pdf brochure
1.8                                             $   1,000
            incentives to regional firms.                                  printed as needed
            Conducts annual regional business                              Lunch and meeting
1.11                                            $   5,000     $    5,000
            appreciation awards.                                           costs
            Host a semi-annual Regional                                    Lunch and meeting
1.12                                            $   2,000     $    2,000
            Industry Roundtable.                                           costs
            Develop a web-based “discussion                                Web programming
1.14                                            $   2,500     $    2,500
            center” for manufacturers.                                     costs
            Conduct an annual wage/benefit                                 Conducted by an
1.15                                            $   5,000     $    5,000
            survey for mfg./tech.                                          HR consulting firm
            GOAL #1 TOTAL                       $ 15,500      $   14,500
Table 1. Estimated Additional Budget – con’t
Goal/                                                             Budget Estimate
Task#     Goal #2: Marketing & Promotion    Year 1                Later Years       Notes
          Regional Branding & Image Promotion
          Identify the image of the community as                                    Hire market research
2.1.1.                                               $   5,000
          held by local residents.                                                  consultant
          Identify the perception of the                                            Hire market research
2.1.2.                                                $ 15,000
          community’s image by investors.                                           consultant
          Develop a brand for the region and hire                                   Local marketing & PR
2.1.3.                                                $ 15,000
          a PR firm to refine.                                                      firm
                                                                                    Local marketing & PR
2.1.5.    Develop an appropriate logo.               $   1,000
                                                                                    firm
          Engage a top-notch public relations                                       National firm @
2.1.6.                                                $ 100,000     $ 100,000
          firm.                                                                     $8k/month
                                                                                    Estimated from CIO
2.1.7.    Advertise in 1-2 industry publications.     $ 20,000      $      20,000
                                                                                    ad rates
          Strengthen its relationship with local                                    Marketing firm
2.1.8.                                               $   6,000      $       6,000
          media.                                                                    contract @ $500/mo
          Host an annual forecast event in                                          Venue/food&
2.1.10.                                              $   5,000      $       5,000
          Lafayette.                                                                beverage costs
          Attend three to five industry                                             Those listed in
2.1.11.                                              $   6,000      $       6,000
          association meetings per year.                                            marketing plan
          Objective Total                            $ 173,000     $ 137,000
          Targeted Marketing
          Revise its web site to reflect the new
2.2.1.                                               $   5,000         $        -
          strategic agenda.                                                         From marketing plan
          Participate in international trade shows                                  Estimate for travel
2.2.6.                                                $ 10,000      $      10,000
          organized by LED.                                                         and lodging
          Maintain ad space in the Lafayette                                        Estimate @
2.2.9.                                               $   6,000      $       6,000
          Regional Airport                                                          $500/month
          Develop positive long-term
2.2.10.                                              $   5,000      $       5,000
          relationships with site consultants.                                      From marketing plan
          Objective Total                            $ 26,000      $       21,000
          Web & Print Materials
          Create marketing materials showcasing
2.3.1.    ULL’s research and training programs       $   6,000         $        -   Lump sum estimate
          for target industries.
          Create hardcopy promotional materials
2.3.3.                                               $   6,000         $        -   Lump sum estimate
          in targeted industries.
          Develop materials to be used in
2.3.6.                                               $   2,500         $        -   Lump sum estimate
          marketing the region online.
2.3.8.    Distribute a map of Acadiana.              $   7,500         $        -   Lump sum estimate
          Objective Total                            $ 22,000      $            -
          Business Intelligence & Capacity Building
          Develop a Knowledge Management &
2.4.6.                                               $   2,500         $        -
          communication system.
          Objective Total                            $ 2,500       $       -
          GOAL #2 TOTAL                              $ 223,500     $ 158,000
Goal/                                                      Budget Estimate
Task#   Goal #3: Workforce Recruitment        Year 1       Later Years       Notes
        Attract & Retain Skilled & Professional Workers
        Identify skilled workers and
        professionals who are ULL and
3.3.                                            $ 5,000     $    5,000
        local alumni, and target them for
        promotional campaign.
        Create an attractive online
3.6.                                            $ 5,000     $            -
        relocation packet.
        GOAL #3 TOTAL                           $ 10,000    $    5,000
        Clearinghouse
        Determine technical assistance
4.4.                                          $   5,000     $    5,000       Contingency fund
        provided to local EDOs.
                                                                             Hire engineering
        Develop certified sites throughout
4.7.                                          $ 10,000      $            -   firm to develop
        Acadiana.
                                                                             costs
        GOAL #4 TOTAL                         $ 15,000      $   5,000
        TOTAL FOR OPERATIONS                  $ 264,000     $ 182,500
        ADDITIONAL STAFFING COSTS
        (Salaries+Benefits@25% + add.         $ 75,000      $   75,000
        overhead @25%)
        TOTAL NEW BUDGET                      $ 339,000     $ 257,500
CONCLUSIONS
The success of this plan depends on two things:

   1) Doing the right things—professionally; and
   2) Having a means of tracking results so that the AEDC can check and adjust its
      tactics as markets change and as its staff gains more familiarity with the
      effectiveness of the various marketing tools geared to each of the target
      industries.

The tracking system that is adopted by AEDC can be as simple as a series of scheduled
meetings where staff recap the effectiveness of each of the marketing activities soon
after they have had time to collect leads and evaluate the opportunities identified by
each of the events or activities. More sophisticated databases can also be developed for
tracking results. Some of the most useful tools consist of Customer Relationship
Management (CRM) software suites, such as Act!. Microsoft also has developed CRM
templates for use in Access databases. Online tools are also available on a subscription
basis such as SalesForce CRM (see www.salesforce.com). Each of these off-the-shelf
software tools has a series of built-in analytical tools that can used to track results. We
recommend that AEDC investigate off-the-shelf CRM software and select a solution that
best fits its needs.

Our recent work with best practices regional EDOs demonstrates the importance of
strategic planning. Organizations that adopt sound goals, identify critical action steps,
and set out effective outcome measures to evaluate their effectiveness, are effective at
diversifying their regional economies. This operational plan, if implemented, will give
AEDC a road map for implementing such a strategy.
APPENDIX

List of Appendices (In Order)

Factors that Influence Closures
Effective BRE Programs
Regional Branding
Examples of Best Practice ED Web Sites
Examples of Fold-Out Maps
Best Practices in Talent Recruitment
Monster.com Case Studies
Article: Attracting the Best and Brightest
Article: Seven Virtues of Effective EDOs
Best Practices Executive Summary
FACTORS THAT INFLUENCE CLOSURES
   • Failure to pay bills, i.e., utilities;
   • Small lay-offs (not tied to seasonal conditions);
   • Increase in Unemployment Insurances filings;
   • Lack of hiring activity/new hires;
   • Changes in leadership (plant manager, human resources or
     owner/ownership);
   • Rumors that originate with current employees;
   • A large number of current employees beginning job search;
   • Lack of capital investment in plant or equipment;
   • Moving equipment out of business;
   • Decreasing involvement in community activities;
   • Expiring union contracts;
   • Contacting lending institutions for operating capital;
   • Natural disasters;
   • Economic issues with larger companies who may have sub-
     contracted with businesses in the region; and
   • Economic changes in specific industries.
EFFECTIVE BRE PROGRAMS
All best practice local EDOs have effective BRE programs in place. Not all regional
organizations have a BRE program, however, as discussed in the Best Practices study
reproduced earlier in this appendix. Two regional organizations with effective BRE
programs are shown below. Characteristics of these programs are: 1). Dedicated staff
for BRE; 2). Written procedures for conducting the visits and follow-up that included
appropriate roles for the local EDOs and the regional EDO; 3). Use of BRE software for
analyzing, sharing and disseminating knowledge gained through the programs; 4).
Effective procedure for solving business problems encountered through visits.

Northeast Indiana Regional Partnership           www.chooseindiana.com
Baton Rouge Area Chamber of Commerce             www.brac.org


REGIONAL BRANDING
The following three organizations have regional branding programs in place that are
widely regarded as examples of the best offered by regional EDOs. Richmond in
particular has been quite effective at branding itself in Western Europe and Asia.
Characteristics of these brands are that they are built on reality and therefore are
believable and credible.

Charlotte Partnership            Charlotte, NC          www.charlotteusa.com
The Greater Richmond Partnership Richmond, VA           www.grpva.com
Hampton Roads Partnership        Norfolk, VA            www.hrp.org


EXAMPLES OF BEST PRACTICE ED WEB SITES
Hagerstown and Washington County EDC, MD         http://www.hagerstownedc.org/
NE Indiana Regional Partnership                  http://www.chooseneindiana.com/
City of Cincinnati                               http://www.choosecincy.com/

These best practice websites have several desirable characteristics in common, in
response to site selectors’ request for “data, ease of navigation, and speedy download
time”:

   •   Site selector resources, including data and site information, are all clearly
       identified and available from the home page
   • Data available is consistent with the topic areas needed by site selectors and
     defined           in          the          IEDC          guidelines          (see
     http://www.iedconline.org/?p=data_standards)
   • Navigation of the website is designed with a central home page and Site selector
     resources specifically aggregated and available together
   • Banners with consistent menus for all pages allow users can navigate easily from
     one page of the website to another with one click
   • Footer menus on the bottom of each page provide an additional option for easily
     navigating
   • Location map on the home page
   • Additional map resources aggregated in a “map room” or map page

In addition, the City of Cincinnati website allows the additional benefit of allowing site
selectors to choose which data items they wish and create a customized data package
online.


EXAMPLES OF FOLD-OUT MAPS
The two best examples of community maps that show business parks and industrial sites
are by the Shreveport and Oklahoma City Chambers of Commerce. These maps are not
available online but can be purchased. Contact the respective chambers for more
information:

               www.shreveportchamber.org
               www.okcchamber.com


BEST PRACTICES IN TALENT RECRUITMENT
Some communities with tight labor supplies, such as in North Dakota and Wyoming, are
trying to attract professional talent. Others such as Reno, NV are interested in attracting
young professionals and having to compete with directly with talent meccas like San
Francisco. No matter which strategy is involved, the tactics are much the same. The
article “Attracting the Best and Brightest” and survey by Iain Watt at DCI gives a good
overview of what the best practice communities are doing with talent recruitment.
More information is available from the websites of the organizations mentioned in this
article:

Edawn                                Reno, NV               www.edawn.org
Wyoming Business Council             Cheyenne, WY           www.wyomingbusiness.org
North Dakota Dept. of Commerce       Fargo, ND              www.commerce.nd.gov.
MONSTER.COM CASE STUDIES
NOTE: Taimerica Management Company has an alliance with Monster.com to
introduce their labor market and talent pool intelligence products into the economic
development marketplace. Any subscription or analysis purchased from Monster.com
by AEDC will have a financial benefit to Taimerica. We are offering this information to
AEDC at its request and because an alternative source of such labor market intelligence
or marketing services does not exist. We want the AEDC board to be aware of the
business relationship between our two companies.

Monster.com is the world’s largest global career company. It matches job seekers with
employers in over 51 countries worldwide. It has databases of more than 80 million
resumes including those of college students, recent and imminent military retirees, and
general job seekers -- most of whom are currently working and therefore don’t show up
in government databases. (Unlike the data produced by the Labor department, the
majority of resumes at Monster.com are of people now employed but wanting to change
jobs.)

The products of most value to AEDC are Monster Realtime Labor Intelligence Research
and Monster Advertising and Outreach. Several case studies that clarify these products
are discussed below:

Case Study #1: Monster Realtime Labor Intelligence Research
Acadiana wants to identify computer programmers and systems analysts with school or
family ties to the region. Using its databases and proprietary search engines, Monster
can identify individuals in its database that graduated from area high schools or colleges
with degrees in computer science as well as those with job titles that are associated with
IT and computer science. It can then identify metro areas with the largest
concentrations of these skills and can actually provide counts to AEDC for marketing and
promotion campaigns. The search can be further refined to only identify individuals that
have expressed an interest or willingness to relocate to Louisiana.

Case Study #2: Monster Advertising and Outreach
Acadiana wants to reach the job candidates identified in Example #1 with an appeal to
consider returning home to work. AEDC can purchase banner and pop-up adds on the
Monster site that only appear when one of the identified individuals accesses the job
boards. These banner ads can be linked to a “Come Home” campaign.

Case Study #3: Fast Web Lead Generation to Graduating Seniors at Regional Colleges
Acadiana wants to contact students graduating from regional universities to urge them
to remain in Acadiana after graduation. AEDC purchases targeted recruitment messages
that pop up when students at regional colleges access Monster’s Fast Web site. Students
are given an option of learning more about opportunities in Acadiana. Monster provides
a list of these qualified leads to AEDC and its partners for more in-depth marketing.

These are three examples of products that can help AEDC in its mission of enhancing the
business climate of Acadiana. Additional information about the Monster.com services
can be obtained by calling Charlotte Batson or Ed Bee.

				
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