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CREATING OUR (ECONOMIC) FUTURE: HIGHER EDUCATION AND ECONOMIC DEVELOPMENT
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CREATING OUR (ECONOMIC) FUTURE: HIGHER EDUCATION AND ECONOMIC DEVELOPMENT

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Presentation at April 16, 2013 meeting of the LSU Transition Advisory Team.

Presentation at April 16, 2013 meeting of the LSU Transition Advisory Team.

Published in: Business, Technology

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  • 1. CREATING OUR (ECONOMIC) FUTURE:HIGHER EDUCATION AND ECONOMIC DEVELOPMENT LSU Transition Advisory Team April 16, 2013
  • 2. FOR DECADES, LA’S ECONOMY HAD UNDERPERFORMED THESOUTH AND THE U.S…. Total nonfarm, annual employment (100=1980) 175 Rest of South 160 United States 145 130 Louisiana 115 100 85 1980 1985 1990 1995 2000 2007 1
  • 3. SEVERAL OF LA’S PRIMARY INDUSTRY SECTORS HAVE BEEN LOSING JOBS FOR MANY YEARS U.S. annual employment Louisiana annual employment Chemical Manufacturing Agriculture / Farming Paper Manufacturing30.0 1050.0 47 3200 13 660.0 44 3100 1000.0 1228.0 600.0 41 3000 950.0 1126.0 540.0 38 2900 900.0 10 35 280024.0 480.0 850.0 9 32 270022.0 420.0 800.0 8 29 260020.0 750.0 26 2500 7 360.0 2
  • 4. SINCE 2008, LOUISIANA’S EMPLOYMENT LEVELS HAVEOUTPERFORMED BOTH THE SOUTH AND NATIONTotal non-farm, seasonally-adjusted employment (100 = January 2008) 107 LA entered the …experienced smaller …and exited faster recession late… job losses… than other states Louisiana 100 South United States 93 JFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASONDJF 2008 2009 2010 2011 2012 2013
  • 5. MOODY’S EXPECTS LA’S INDUSTRY MIX TO LEAD OUR STATE TO UNDERPERFORM IN JOB CREATION OVER THE NEXT 20 YEARSEmployment (millions)2.8 LA at Aspiration rate (GA, NC, TX)2.72.6 LA at Peer rate (South) Gap of2.5 525,000 Gap of jobs vs.2.4 400,000 jobs Aspiration vs. Peer LA at US rate2.32.2 Current LA forecast2.1 LA projected to gain 290,0002.0 new jobs 0 2010 2015 2020 2025 2030 4
  • 6. LED’S NO. 1 GOAL:POSITIONING LA. TO ADD ~40,000 NEW JOBS PER YEAR 5
  • 7. WHAT WOULD 40,000 NEW JOBS PER YEAR MEAN TO LOUISIANA? Growing tax revenues Population in-migration Small business growth Economic opportunity 6
  • 8. HOW DO WEPOSITION LOUISIANA TO GROW FASTER THAN THE SOUTH AND U.S. ON A REGULAR BASIS? 7
  • 9. WE HAVE AGGRESSIVELY PURSUED EIGHT INTEGRATEDECONOMIC DEVELOPMENT STRATEGIES Improve state economic Enhance community competitiveness competitiveness Cultivate top Develop regional Focus on business national- economic retention and caliber development expansion business assets recruitment capacity Cultivate small Develop robust Aggressively business, innovatio workforce tell our story n and solutions entrepreneurship 8
  • 10. WE HAVE AGGRESSIVELY PURSUED EIGHT INTEGRATEDECONOMIC DEVELOPMENT STRATEGIES Improve state economic Enhance community competitiveness competitiveness Cultivate top Develop regional Focus on business national- economic retention and caliber development expansion business assets recruitment capacity Cultivate small Develop robust Aggressively business, innovatio workforce tell our story n and solutions entrepreneurship 9
  • 11. WE HAVE AGGRESSIVELY PURSUED EIGHT INTEGRATEDECONOMIC DEVELOPMENT STRATEGIES Improve state economic Enhance community competitiveness competitiveness Cultivate top Develop regional Focus on business national- economic retention and caliber development expansion business assets recruitment capacity Cultivate small Develop robust Aggressively business, innovatio workforce tell our story n and solutions entrepreneurship 10
  • 12. LED FASTSTART, OUR CUSTOMIZED WORKFORCE INITIATIVE, WAS RANKED NO. 1 IN THE U.S. IN 2010, 2011, AND 2012Workforce Training Leaders “Louisiana’s FastStart continues to be the gold standard for workforce training programs, which increasingly are an essential element in successful economic development projects,” Jack Rogers - Editor in Chief Business Facilities Magazine August 2012 11
  • 13. Probably the most notablestatewide workforce-development initiative comesfrom Louisiana. Its FastStartprogramme, launched in2008, helps companiesrecruit and train workers. 12
  • 14. LOUISIANA’S BUSINESS CLIMATE RANKINGS HAVEIMPROVED SUBSTANTIALLY SINCE 2008 Ranking 2008 Today Pollina 40 16 Chief Executive 48 13 Forbes 49 34 Area Development Unranked 6 Business Facilities Unranked 5 Site Selection Unranked 7 13
  • 15. IDENTIFY AND CULTIVATE NEW GROWTH SECTORS 14
  • 16. WE UTILIZED A STRUCTURED PROCESS TO GENERATE ANDPRIORITIZE POTENTIAL GROWTH SECTORS Prioritization & Most attractive Idea generation portfolio shaping growth options Explore Other prioritization metrics Louisiana Potential for job growth strengths Fit with strengths List of Time horizon top growth options with ideas for Review industry capturing characteristics + growth trends 15
  • 17. LED IDENTIFIED SIX TARGET AREAS WITH GREATPOTENTIAL FOR JOB CREATION AND ECONOMIC GROWTH Digital media & Life sciences enterprise software Clean technology Water management Advanced manufacturing Next generation oil & gas 16
  • 18. THESE TARGETS COULD ADD 225,000 - 400,000 EXTRA JOBS OVER THE NEXT 20 YEARS LA job growth 2009-29 (thousands)Opportunity Direct Total▪ Next generation digital media/software development ecosystem ▪ 11-23 ▪ 25-55▪ Water management: The Netherlands of the US ▪ 10-20 ▪ 20-45▪ Specialty research hospital and medical district: Treating the nation ▪ 10-20 ▪ 20-40▪ Ultra-deep water: Under the sea ▪ 10-15 ▪ 40-55▪ Unconventional gas: Not everything’s bigger in TX ▪ 10-15 ▪ 40-55▪ Auto: Supplying the future driving experience ▪ 5-15 ▪ 10-35▪ Energy efficiency: Green building, green living, green manufacturing ▪ 5-10 ▪ 10-20▪ Renewable energy: Power and fuel for the future ▪ 8-12 ▪ 20-30▪ Enhanced Oil Recovery techniques: Scraping the bottom of the barrel ▪ 5-7 ▪ 20-25▪ Nuclear power: Parts and modular production ▪ 3-5 ▪ 10-20▪ Obesity/diabetes research and treatment ▪ 1-2 ▪ 2-4▪ Manufacturing pharmaceuticals ▪ 1-2 ▪ 5-10Total ~80 - 145 ~225 - 400 17
  • 19. PURSUING THESE TARGETS CAN HELP US ACHIEVE OUR TARGET GROWTHRATE WHILE GENERATING NEW POPULATION AND TAX REVENUESTotal jobs added, 2009-29 (thousands)Baseline forecast 290LA at rate of 690SouthLA at Aspiration 815 815rate 18
  • 20. PURSUING THESE TARGETS CAN HELP US ACHIEVE OUR TARGET GROWTHRATE WHILE GENERATING NEW POPULATION AND TAX REVENUESTotal jobs added, 2009-29 (thousands)Baseline forecast Growth 290 225-400 515-690 Sectors+ Growth Sec.LA at rate of 690 Additional economicSouth impact over 20 yearsLA at Aspiration 815 815rate ▪ ~$18-24 billion in new State and local tax revenue ▪ ~515-920K in new population 19
  • 21. PURSUING THESE TARGETS CAN HELP US ACHIEVE OUR TARGET GROWTHRATE WHILE GENERATING NEW POPULATION AND TAX REVENUESTotal jobs added, 2009-29 (thousands)Baseline forecast Other 290 225-400 125-300 ~815 efforts+ all other effortsLA at rate of 690SouthLA at Aspiration 815rate 20
  • 22. KEY ROLES OF HIGHER EDUCATION IN THE ECONOMICDEVELOPMENT OF LOUISIANA NOT COMPREHENSIVE• Intellectual Talent Development• Intellectual Talent Retention and Attraction• Workforce Development• Scientific, Technical, and Medical R&D• Technology Transfer• Teacher Training/Development• Research on Issues of State Importance• Business Development Assistance• Brand Building of State 21
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  • 30. PARTNERSHIPS WITH HIGHER EDUCATION HAVE BEEN CRITICAL TORECENT WINS AND ARE MODELS FOR FUTURE COLLABORATIONSCompany High Ed Partner InitiativeCenturyLink Louisiana Tech ~$2 million over seven years to expand telecommunications technology curriculumElectronic Arts LSU ~$29 million to build the Louisiana Digital Media Center (~2/3 academic space, ~1/3 EA)GE Capital UNO, possibly $5 million over 10 years for enhanced software others development-focused academic programsBenteler Bossier Parish CC $22 million for a new training facility and equipment focused on manufacturing technologySasol Sowela $20 million for a new training facility and equipment focused on industrial technologyConAgra LSU Ag Center Several significant research contributions that helped secure the projectIBM LSU, others TBD $14 million over 10 years to increase the number of computer science graduates 29
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  • 33. WHAT DO THESE COMPANIES HAVE IN COMMON? NOT COMPREHENSIVE •Amazon.com •HP •Dell •IBM •Gameloft •Intel •Google •Microsoft •EA •Samsung •GE Capital •Texas Instruments 32
  • 34. THE ULTIMATE FRONTIER FORECONOMIC DEVELOPMENT INLOUISIANA WILL BE REALIZEDTHROUGH THE DEVELOPMENT OF HIGHER EDUCATION 33

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