1. LED Secretary Don Pierson
Louisiana’s Chemical Industry: Legacy Industry Positioned for Future Success
LED Secretary Don Pierson
LCA/LCIA Annual Meeting
Thursday, October 27, 2016

2. Impact of the chemical industry in Louisiana
In Louisiana, the chemical industry supports…
153 chemical plants
150,000+ direct and indirect jobs (about 8% of the total State economy)
Louisiana Ranks…
1st in the nation for the portion of its economy comprised by the chemical
manufacturing industry
These companies and employees generate…
$670 million in state and local taxes each year
The chemical industry drives Louisiana’s economy

3. Addressing the Misunderstandings
Louisiana’s Budget
Industrial Tax Exemption Program (ITEP)
The core mission of the program remains the same
Governance
Accountability
Business Taxes
Used to fill the budget gap
Temporary in nature
Need for tax reform
Government Spending

4. LED’s Support of the chemical industry
LED FastStart
Engaged 26 chemical processing projects
Totaling over 3,700 new jobs, over 5,000 retained jobs, and almost $20B in capital investment
13 projects yet to engage
Totaling over 2,300 new jobs, over 3,100 retained jobs, and over $20B in capital investment
Working with education, training and corporate partners
Business Expansion and Retention Group
87 visits to chemical manufacturers this year
5 project wins, bringing LED’s total to 8 for the year
10 chemical industry projects in the pipeline, bringing LED’s total to 19 for the year.
Small Business Services
Stronger small businesses benefit the chemical industry
Louisiana Business Connection
Flood recovery

5. Louisiana’s Competitiveness
Louisiana still has one of the nation’s strongest business climates.
According to KPMG, Louisiana’s business costs are 7.5% lower than the national average
Louisiana has the third-lowest industrial natural gas rates in the South
Louisiana has the second-lowest industrial electricity rates in the South

6. No.1 for # of projects per capita No. 1 workforce training program
Louisiana continues to rank highly in national assessments of state business climates
No.1 for # of projects per capita
No. 1 workforce training program
No. 2 best business incentive programs
No. 4 best state business climate
Top 5 state for doing business
Southern Business & Development magazine, July 2016
Business Facilities magazine, July 2016
Area Development magazine, September 2016
Site Selection magazine, November 2015
Area Development magazine, September 2016 (highest ranking to date)
Source: LED analysis; various rankings publications

7. Louisiana’s incentive toolkit also remains one of the most competitive in the nation.
QUALITY JOBS
2nd most competitive in the South
5th most competitive in the U.S.
RESEARCH AND DEVELOPMENT
2nd most competitive in the South
5th most competitive in the U.S.
ENTERPRISE ZONE
Continues to create development in underserved regions of our State
ITEP
Even if ITEP was reduced by 30%, the effective tax burden for manufacturers in Louisiana would still remain extremely competitive

8. Future Prospects for the chemical manufacturing industry in Louisiana and the u.s. look positive
4%+
annual growth rate anticipated for U.S. chemistry production,
5,436
direct jobs expected to be created in Louisiana’s chemical manufacturing industry over the next decade (the 2nd highest projected increase of any state in the U.S.)
30,000+
direct and indirect jobs expected to be created in Louisiana, related to the chemical manufacturing industry, over the next decade
Source: American Chemistry Council; EMSI; Louisiana Chemical Association

9. Louisiana’s advantages
Mississippi River
Over 70 Certified Sites
Great Workforce
Quality of Life
Abundant Natural Resources
Energy
27 Ports
6 Class One Railroads

10. CXL
Louisiana is a top contender for a Modular Chemical Process Intensification Institute, which would be housed on LSU’s campus.
It would develop technologies to improve:
Chemical manufacturing processes
The development of petrochemicals, pulp and paper manufacturing
Pharmaceutical production  
This institute would transform Louisiana’s economy, workforce and chemical industry.

11. Instrumental Partnerships between LED, Higher education, and industry
LSU-University of Houston partnership, supported by the State of Louisiana
Industry partners:
90 partner companies in total
Satellite campus partners:
Louisiana higher education partners:
Main campus:
Other academic partners: