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COMPREHENSIVE
ECONOMIC DEVELOPMENT STRATEGY
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COMPREHENSIVE
ECONOMIC DEVELOPMENT STRATEGY
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State of the Regional Economy ~ Trends and Forces Vision 2020, a State-developed document that defines cluster strategies for economic development in Louisiana for the next twenty years, describes “seeding” in nine cluster areas. These areas are Advanced Materials; Durable Goods/Manufacturing; Energy, Oil and Gas; Agriculture, Forest and Food Products and Technology; Entertainment Industry; Information Technology; Life Sciences/Biotechnology/Biomedical/Medical and Health Care; Logistics and Transportation; and Petrochemical / Environmental Technology. Additionally, the Louisiana Department of Economic Development has defined other areas of emphasis crucial to economic development, including Business Retention and Assistance, Small and Emerging Business Development, and Technology Innovation and Modernization. The CEDS process in Northwest Louisiana uses four advisory committees, each of which works on a different topic or set of topics. Each advisory committee is asked to determine Strengths, Weaknesses, Opportunities, and Threats based on the data and on their own experiences. The lists of each advisory committee are presented below. Pre-kindergarten through grade 12 provides the basics for technical and professional training for Northwest Louisiana’s population. Career exploration begins in the eighth grade. Louisiana State University in Shreveport, Southern University in Shreveport, Bossier Parish Community College, Centenary College, Northwestern State University, Grambling, and Louisiana Tech University are available for education and training. Louisiana Technical College (Vo Tech) campuses are located throughout Northwest Louisiana in Shreveport, Minden, Homer, Coushatta, Natchitoches, Many, Mansfield, and Ruston, to provide education and training through sixty-two full-time training programs. They offer upgrading and retraining of existing employees during off hours also. The district has a well-organized Workforce Investment Act program which pays for training at technical colleges and universities, and pays employers to train newly hired workers. There are also private institutions involved. LSU Medical School and the NSU School of Nursing provide medical-related training. Technical colleges also offer medical-related training. The Louisiana Tech Micro-Manufacturing Center operates from the Louisiana Tech campus in Ruston. The Center also has a Micro-Manufacturing facility at the Shreve Park Industrial Campus in Shreveport. The tech-prep program encourages a structured program from the eleventh grade through technical schools and/or colleges. The Northwest Louisiana Mio-Med Foundation offers education and training in research applications and technology transfer. This is a unique training ground for these fields. Business, Industry, Employment, Trade Development and Finance There is an extensive and trainable labor force. A substantial portion of this labor force is available and eager for work. A balance exists between labor and management. This enables employers to provide wages that are fair to both the employer and the employee. New expanding industries are able to take advantage of several state tax incentive programs with respect to purchase of new equipment and inventory. All Northwest Louisiana parishes have State-established Enterprise Zones. Federally recognized Renewal Communities have been designated in eight rural Northwest Louisiana parishes. Parishes that fall entirely within Renewal Communities are Bienville, Claiborne, and Red River. Portions of the Parishes of DeSoto, Lincoln, Natchitoches, Sabine, and Webster, are also within Renewal Communities. Several parishes have low millage rates for property taxes. Currently, land costs are relatively low. There are many distressed properties that have potential for great investment. Large tracts are available, particularly in rural areas. There are several federal, municipal and state programs available which will provide low interest loan funds for new or expanding businesses and industries which create new jobs. Northwest Louisiana’s urban areas have a large number of persons available in the labor force with production line manufacturing skills. The area offers advantages for establishment of distribution centers in Northwest Louisiana. This area is served by water transportation, south-bound and east-west interstate highways and railroads, a regional airport, a foreign trade zone, a customs port of entry and an intermodal freight facility. Northwest Louisiana has a more diversified economy than any other area of the state. There is a diversified manufacturing base in Northwest Louisiana. There is at least one local economic or industrial development group organized in each Northwest Louisiana parish. Industrial parks have been established all over Northwest Louisiana. Parishes and municipalities are eager to attract new industries to these parks. The area’s large banks provide a banking capacity sufficient to support growth. The existence of the Biomedical Research Center in Shreveport should attract other companies into the area. Customized industry training is available at nominal cost to the employer. The region’s business incubators are providing for entrepreneurial and small business growth. LSU Ag Center Cooperative Extension Service has a program to promote work ethic. Barksdale Air Force Base, in Bossier City, contributes enormously to the local economy. Utilities, Public Facilities and Transportation The Red River is navigable from the Mississippi River through the Parishes of Bossier and Caddo. The region is traversed east and west across its northern parishes by Interstate Highway 20. It is traversed in a north south direction by Interstate Highway 49. A number of major railroads serve Northwest Louisiana, connecting it to other parts of the country in all directions. Northwest Louisiana is served by a number of national freight lines which are available to businesses operating in this area. Shreveport Regional Airport is served by a number of national air carriers. Portions of Northwest Louisiana have relatively low utility rates compared with those in other parts of the United States. A “Foreign Trade Zone” has been established in Shreveport. The Port of Shreveport/Bossier is a multi-modal facility that can handle cargo by truck, rail, and barge. A new interstate highway (I-69) is being planned which shall pass through Northwest Louisiana on its way from Houston to Indianapolis. It will pass adjacent to the Port of Shreveport/Bossier. There is a tri-state initiative to attempt to accelerate construction of Interstate Highway 49 through Missouri, Arkansas, and Louisiana. Natural Resources, Environment, Agriculture, Tourism/Retirement, and Historic Preservation Northwest Louisiana has an abundance of forests which provide potential for establishment of forest product manufacturers (secondary wood processing) in this area. A great quantity and variety of natural resources are available in Northwest Louisiana. These include crude oil, natural gas, lignite, sand and gravel, iron ore (not for smelting) and forests. Agricultural resources are available which range from farming to stock raising and orchard harvesting. Aquaculture resources are available also. Much locally grown produce is available. Northwest Louisiana has rich soils that are capable of high production. The area has a favorable year-round climate. Lignite is mined in DeSoto and Red River Parishes, and is available in Sabine, Natchitoches, and Bienville Parishes. A number of lakes offer opportunities for development of tourism and could provide a source of water for water systems. There are many festivals and events held throughout Northwest Louisiana at various times of the year. Proper marketing of these festivals provide a potential for tourism. A number of man-made attractions and historical/cultural sites are available for tourists. Northwest Louisiana has abundant natural beauty and wildlife. There are a number of educational, cultural and recreational amenities as well as numerous volunteer opportunities in Northwest Louisiana. These could be a great potential in attracting retired persons into this area. Barksdale Air Force Base, in Bossier Parish, has features attractive to military retirees. Fort Polk is south of Sabine Parish. There is a V.A. Hospital located in Shreveport. Numerous high quality medical complexes exist in the Shreveport-Bossier city area. The cost of living in Northwest Louisiana is lower in comparison to well known retirement centers. Water resources of various types are available for irrigation, industry cooling, transportation, and recreation. Northwest Louisiana is the hub of a public radio network with repeater stations in central Louisiana, east Texas, southern Arkansas, and Lincoln Parish. The Red River navigation project has created potentials for recreation and tourism at the dam sites, within the pools, and the newly created oxbow lakes. Hotels and motels are well developed. Restaurants of a wide variety are available for tourists. The five gaming boats in Shreveport/Bossier offer tourism activities. Riverfront developments in Shreveport and Bossier City attract tourists. Education and Training The cost of higher education is increasing. There are still a few school systems which have not been able to upgrade their public school facilities, and these buildings continue to deteriorate. Joining together of academic and skills training needs increased attention. Marketing is a challenge and needs more funding. Coordination and cooperation among all levels of learning has not been fully defined and implemented. Education is not highly valued. Students who desire to go from training institutions to colleges and universities will find transition to be difficult because, currently, not all coursework is recognized. Business, Industry, Employment, Trade Development, and Finance Exporting raw timber products jeopardizes the timber supply for local manufacturers, and robs local mill workers of jobs. Poor quality of some State and local roads and bridges prevent some areas from being perceived as suitable distribution centers. Banks are reluctant to provide venture capital for start-up businesses and expansion of small businesses. Some property owners have unreasonable expectations of what the property is worth. The cost of doing business in Louisiana is higher than in bordering states due to higher tax rates (for example, franchise tax and full sales tax on equipment and machinery) charged to industries. Worker’s compensation and the cost of unemployment insurance represent a high cost to industry when compared to rates charged in surrounding states. There is a high rate of illiteracy among Northwest Louisiana’s labor force. There is a shortage of technically proficient workers from within the work force. Very few local governments have a full-time, paid economic development staff. Thus, only a few communities are being properly marketed for industrial/business development. Although Louisiana has always been a State with a good work ethic, there has been a recent decline in the work ethic. It is difficult or impossible for a business in this region to obtain liability insurance. Utilities, Public Facilities and Transportation Many State and local roads and bridges are in deteriorated conditions. They cannot support transportation of raw materials nor finished products. Funding for bridge improvement projects is inadequate. Many of Northwest Louisiana’s rural airports have outdated facilities and are no longer adequate to meet the needs of larger aircraft. Portions of Northwest Louisiana, particularly the rural areas, have high utility costs. Not enough emphasis is being placed on transportation infrastructure in Northwest Louisiana. Many Northwest Louisiana towns and small cities are located along major federal highways. Highway transportation through areas of high population and commercial density is inadequate. Several small municipalities and rural areas are served by inadequate water systems and a few areas are not served by any type of water system. Problems with water include poor quality, unreliable sources, and fire protection concerns such as inadequate pressure and a shortage of hydrants. Some rural fire departments do not provide adequate protection to property and life. Their problems stem from those of the water systems mentioned above, as well as a shortage of fire fighting equipment and training. Recreation facilities, especially in smaller municipalities, have deteriorated and re becoming unusable. Some areas have no recreation facilities at all. Many sewage systems are inadequate. Most of the area’s sewage treatment systems were constructed thirty to fifty years ago, and no longer meet treatment standards imposed by environmental regulatory agencies. Collection systems are also very old and tend to have problems with seepage. There are still a few densely populated areas where there is no collection. There are many empty commercial buildings remaining from establishments that have gone out of business. The central business districts of many small municipalities are deteriorating. Rural parishes are finding collection and proper disposal of solid waste to be increasingly difficult and expensive. Multi-parish recycling programs do not cover all areas. Although most areas have adequate capacity for large scale industries, in many areas there is a need to ensure adequacy. Many smaller municipalities have inadequate or deteriorating sidewalks. Natural Resources, Environment, Agriculture, Tourism/Retirement, and Historic Preservation Parts of Northwest Louisiana are losing forest land base to urbanization and agriculture use. In some areas, timberland is harvested and not all of it is replanted and varied, thereby jeopardizing long-term supplies. The area’s natural resources are being removed and sold as raw materials for processing operations in other states. There is very little secondary processing of the area’s natural resources within the district. Louisiana is considered an economic colony of the rest of the nation. The high crime rate in some areas of the district serves as a deterrent to tourism. Regional and local tourism are under budgeted compared to areas in surrounding states. Louisiana highways are not kept clean nor property maintained. There is a need for additional man-made attractions and recreation facilities for tourists in rural areas. The Red River has extremely high chloride content. Defoliants, for weed control, sprayed along some parish and State roads detract from natural beauty. Some electric utility companies use this practice also. Advertisement and media attention for area attractions are inadequate. State and non-interstate Federal highways have no rest stop areas for travelers. Water is being removed from the Sparta Aquifer faster than it is being replenished. It is a source of many water systems in this region. Replanting practices of forests does not reflect natural diversity of hardwoods and evergreens. There are no assisted living facilities in Claiborne Parish (rural areas). Retirement areas will need broad range of medical facilities and capacity. There are not enough attractions for families. Northwest Louisiana has no amusement park. Partners and Resources for Economic Development The primary organization for regional economic development in the ten parishes of Northwest Louisiana is The Coordinating & Development Corporation. CDC works with a number of local partners on both local and regional issues and projects. Of course, the experience and capability of various partners varies with its size and budget. There are a number of individual economic development and industrial development foundations and groups throughout Northwest Louisiana. They cover rural service areas such as those covered by the Caddo Ward II Industrial Corporation, the North Webster Parish Industrial District, and the Sabine Parish Industrial Development Foundation, as well as the urban areas, such as the Foundations for Greater Shreveport and Greater Bossier. Chambers of Commerce also are important partners. There are three ports along the Red River, two of which have port facilities (Port of Shreveport-Bossier and Natchitoches Parish). Louisiana Tech University, Northwestern State University, Grambling State University, and LSU in Shreveport take on various roles in economic development from time to time. There are special purpose districts, such as the Sabine River Authority, that participate in economic development activities as well. The Seventh Planning District Workforce Investment Board (WIB) is composed of representatives from businesses and public agencies from the ten parishes of Northwest Louisiana, and works with CDC to review, monitor, and evaluate the operation of the local Workforce Investment Act Program. Of course, the local and State governments are also active partners. The rural and smaller local governments are less likely to have the resources to devote to development. If there is a local government-employed person responsible for economic development, he/she usually has other responsibilities as well. Most rural governments are more dependent on CDC for assistance. On the other hand, the City of Shreveport has its own economic development staff. Even so, Shreveport has used CDC’s expertise on many occasions to assist with economic development projects and incentives. The Coordinating
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