River Region. A Fact Book of the. Including the Parishes of St. Charles, St. James, St. John the Baptist, and the Port of South Louisiana.
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1 A Fact Book of the River Region Including the Parishes of St. Charles, St. James, St. John the Baptist, and the Port of South Louisiana ST. JOHN ST. CHARLES ST. JAMES March 2008 River Region Economic Development Initiative (RREDI)
2 The River Region is home to a significant base of established businesses, and is one of North America s largest concentrations of heavy manufacturers, a reflection of its strategic location and competitive market access that it enjoys. These are export industries that are critical to the area s growth and vitality now and in the future: they provide a solid foundation for business retention, attraction, internal expansion as well as the formation of new business start-ups. Private industry has continued to invest billions of dollars as they expand operations to meet market demand. Marathon Oil Company recently announced a $3.2 billion expansion to increase their refining capacity from 180,000 barrels of oil per day to 425,000. Valero Energy Corp. announced a $1.4 billion expansion, increasing its refining capacity to 380,000 barrels per day. Entergy, the region s electrical service provider, also announced a $1.5 billion expansion of its local generating facility. One key reason specified repeatedly by such global companies is the productive and committed workforce. New industries have also found the River Region to be advantageous. The Renewable Energy Group started construction in June 2007 on a plant located at International Matex Tank Terminals (IMTT) where it will produce and store 60 million gallons of vegetable-based biodiesel a year. The company is the market leader in the production and sales of biodiesel and this will be its only plant in the U.S. that is located outside of the Midwest. A representative list of the companies and the industries in which they are located is illustrated in Table IV-1. TABLE IV-1 SECTOR Transportation Oil & Gas Chemicals Agriculture Steel/Pipe Fabrication Rubber & Plastics Food Manufacturing/Distribution Financial Services Business Services Clothing Distribution COMPANIES Port of South Louisiana, IC Rail Marine Terminal, St. John Parish General Aviation Airport Valero Energy, Shell, Motiva, Marathon OxyChem, NALCO, Shell, Monsanto, Dow, Mosaic ADM Growmark, Cargill, Zen-Noh Grain, Bunge Bayou Steel, Louisiana Pipe & Steel DuPont, DuPont Elastomers, Dow Chemical, Pinnacle Polymers Baumer Foods, NATCO Food Services Regions Bank, First American Bank & Trust, Whitney National Bank, Chase Bank, Capital One, First National Bank USA Allfax.com, Digimation.com Randa Accessories River Region Economic Development Initiative (RREDI)
3 TABLE IV-2: TOP PRIVATE EMPLOYERS OF THE RIVER REGION COMPANY PRODUCT/SERVICE LOCATION # EMPLOYEES WEBSITE Dow St. Charles Chemicals & Plastics Taft, St. Charles 1,112 dow.com Motiva Oil Refinery Norco, St. Charles 716 motivaenterprises.com Monsanto Chemical Mfg. Luling, St. Charles 688 monsanto.com Valero St. Charles Oil Refinery New Sarpy, St. Charles 590 valero.com DuPont Elastomers Rubber Synthetics LaPlace, St. John 575 dupont.com Entergy/Waterford 3 Electricity Provider Killona, St. Charles 563 entergy.com Shell Chemical Petrochemical Mfg. Norco, St. Charles 555 shellchemicals.com Marathon Petroleum Gas Petroleum Garyville, St. John 554 mapllc.com Nalco Chemical Chemical Preparations Garyville, St. John Motiva Enterprises Oil Refinery Gramercy, St. James 550 motivaenterprises.com Gramercy Alumina Aluminum Gramercy, St. James Bayou Steel Corp. Recycled Structural Steel LaPlace, St. John 400 bayousteel.com Imperial Sugars Sugar Refining Gramercy, St. James 365 savfoods.com Mosaic (Faustina & Uncle Sam) Ammonia Gramercy, St. James 245 mosaicco.com/ Pepsi Americas Bottling & Distribution Reserve, St. John 225 pepsiamericas.com Occidental Chemical Chemical Mfg. Gramercy, St. James 134 oxychem.com Zen-Noh Grain Grain Products Convent, St. James Cargill Grain Mill Products Reserve, St. John 111 cargill.com River Region Economic Development Initiative (RREDI)
4 Worker Productivity and Quality Employers interviewed during the strategic planning process expressed satisfaction with their workforce, stating it was highly productive and qualified. They also indicated absenteeism was not a problem and that workers had a strong work ethic, influenced by both the history and heritage of many families in the area. Table IV-3, utilizing the 2002 Economic Census data for U.S. Metro Areas, compares the average value added per worker in manufacturing industries for the River Region to the averages of other southern metro areas. At annual productivity rates of $357 per production man-hour and $774,270 per production worker, the River Region exceeds the average manufacturing worker productivity rates for all metro areas by more than three times. River Region Economic Development Initiative (RREDI)
5 TABLE IV - 3: PRODUCTIVITY OF MANUFACTURING WORKFORCE # MFG. PRODUCTION WORKERS PRODUCTION MAN-HOURS (000 S) VALUE ADDED ($000) VALUE ADDED PER PRODUCTION WORKER VALUE ADDED PER PRODUCTION MAN-HOUR River Region, LA. # 6,301 13,649 $ 4,878,674 $774,270 $ Baton Rouge, LA. 17,510 36,290 $ 8,139,908 $464,872 $ Lake Charles, LA. 6,351 13,918 $ 2,919,274 $459,656 $ New Orleans MSA ## 25,056 48,952 $ 7,533,070 $300,649 $ Houston, TX. 129, ,958 $34,224,201 $264,762 $ Jacksonville, FL. 22,260 45,288 $ 4,661,002 $209,389 $ Memphis, TN. 32,864 64,921 $ 6,667,525 $202,882 $ Dallas, TX. 185, ,678 $37,699,867 $203,398 $ Atlanta, GA. 153, ,970 $29,031,267 $189,288 $ Mobile, AL. 16,324 33,306 $ 2,871,349 $175,897 $ Corpus Christi, TX. 8,650 18,335 $ 1,539,835 $178,016 $ Miami-Fort Lauderdale, FL. 66, ,927 $10,496,895 $158,537 $ Tampa, FL. 45,874 91,562 $ 7,429,135 $161,947 $ Birmingham, AL. 35,418 70,825 $ 4,641,897 $130,298 $ Averages 53, ,684 $11,621,921 $216,710 $ # Parishes of St. Charles, St. John, and St. James ## Metropolitan Statistical Area as previously defined includes parishes of Orleans, Jefferson, St. Bernard, Plaquemines, St. Charles, St. John, St. James, and St. Tammany Source: U.S. Department of Commerce, Bureau of the Census, Economic Census, 2002 River Region Economic Development Initiative (RREDI)
6 Worker Availability Employers of the region attract their workers from a wide ranging geographic area in Southeast Louisiana, as indicated by the data presented in Table IV-4. The 2000 Census reported approximately 62% of the region s workforce is drawn from its three parishes with the remainder from surrounding parishes. Workers residing in adjacent parishes of Jefferson (12.5%), Tangipahoa (4.1%), Ascension (4.0%), and Lafourche (3.6%) represent the parishes with the largest numbers of workers commuting to employment in the River Region. TABLE IV-4: REGIONAL LABOR MARKET OF THE RIVER REGION NUMBER OF WORKERS COMMUTING TO: WORKERS COMMUTING FROM ST. CHARLES ST. JAMES ST. JOHN RIVER REGION St. Charles Parish 9, ,285 St. James Parish 642 3, ,486 St. John Parish 2, ,393 10,310 Sub-Total, River Region 12,573 4,693 8,815 26,081 Jefferson Parish 4, ,253 Tangipahoa Parish ,716 Ascension Parish 224 1, ,686 Orleans Parish 1, ,514 Lafourche Parish ,497 East Baton Rouge Parish St. Tammany Parish Livingston Parish St. Bernard Parish Terrebonne Parish Sub-Total, Other Regional Parishes 8,382 2,877 3,020 14,279 Sub-Total, River Region & Other Regional Parishes 20,955 7,570 11,835 40,360 Other Louisiana Parishes & States ,579 Total, All Parishes & Counties 21,588 8,044 12,307 41,939 River Region Economic Development Initiative (RREDI)
7 PERCENT DISTRIBUTION OF WORKERS BY PARISH OF RESIDENCE WORKERS COMMUTING TO: WORKERS COMMUTING FROM ST. CHARLES ST. JAMES ST. JOHN RIVER REGION St. Charles Parish 44.6% 1.3% 4.6% 24.5% St. James Parish 3.0% 49.5% 7.0% 13.1% St. John Parish 10.7% 7.5% 60.1% 24.6% Sub-Total, River Region 58.2% 58.3% 71.6% 62.2% Jefferson Parish 18.8% 2.8% 7.9% 12.5% Tangipahoa Parish 4.2% 1.3% 5.7% 4.1% Ascension Parish 1.0% 14.4% 2.5% 4.0% Orleans Parish 4.9% 0.7% 3.2% 3.6% Lafourche Parish 4.5% 5.2% 0.8% 3.6% East Baton Rouge Parish 1.0% 6.8% 1.1% 2.1% St. Tammany Parish 2.2% 0.4% 1.2% 1.5% Livingston Parish 0.6% 3.4% 1.3% 1.4% St. Bernard Parish 1.0% 0.1% 0.3% 0.6% Terrebonne Parish 0.5% 0.7% 0.5% 0.5% Sub-Total, Other Regional Parishes 38.8% 35.8% 24.5% 34.0% Sub-Total, River Region & Other Regional Parishes 97.1% 35.1% 54.8% 96.2% Other Louisiana Parishes & States 2.9% 5.9% 3.8% 3.8% Total, All Parishes & Counties 100.0% 100.0% 100.0% 100.0% Source: Inter-parish commuting data from Census 2000, U.S. Department of Commerce, Bureau of the Census River Region Economic Development Initiative (RREDI)
8 TABLE IV-5: 2006 EMPLOYMENT BY INDUSTRY SECTOR OF THE RIVER REGION INDUSTRY SECTOR % EMPLOYMENT Manufacturing 23.3% Construction 10.8% Retail Trade 10.0% Administrative & Waste 9.3% Health Care 7.9% Transportation & Warehousing 7.7% Wholesale Trade 6.4% Accommodation & Food 6.0% Public Administration 4.2% Professional & Technical 2.8% Utilities 2.4% Finance & Insurance 1.7% Real Estate 1.5% Other Services 1.5% Arts & Entertainment 1.2% Mining 1.0% Information 0.9% Management of Companies 0.7% Agriculture & Forestry 0.6% Educational Services Source: Louisiana Department of Labor 2006, Employers Subject to Employment Security Law River Region Economic Development Initiative (RREDI)
9 Skill Level The employment base in the region has a significant concentration of skilled workers in engineering as well as those employed in support operations (i.e., processors, electricians, industrial machinery mechanics, machinists, machine operators, industrial truck and tractor drivers, and freight and material handlers). The region also has a large concentration of persons employed in business and financial services, and the administrative and clerical occupations that support them (see Table IV-6). TABLE IV-6: CRITICAL OCCUPATIONS IN THE RIVER REGION LABOR MARKET IN 2006 # JOBS IN RIVER OCC. CODE OCCUPATION REGION LABOR MARKET AVG. WAGE ($/HR.) CONCENTRATION (% OF U.S. AVG.) Computer & Mathematical Occupations 6,610 $ % Computer Programers 1,130 $ % Computer Software Engineers, Applications Computer Support Specialists Computer Systems Analysts 530 $ % 1,380 $ % N/A $29.96 N/A Civil Engineers 1,120 $ % Electrical Engineers 750 $ % Retail Salespersons 14,950 $ Office & Administrative Support Occupations 82,520 $ % Tellers 2,610 $ % Customer Service Reps 6,040 $ % Receptionists & Information Clerks 4,250 $ % River Region Economic Development Initiative (RREDI)
10 CRITICAL OCCUPATIONS IN THE RIVER REGION LABOR MARKET IN 2006 (CONT D) # JOBS IN RIVER OCC. CODE OCCUPATION REGION LABOR MARKET AVG. WAGE ($/HR.) CONCENTRATION (% OF U.S. AVG.) Secretaries, Except Legal, Medical, & Executive 8,320 $ % Insurance Claims & Policy Processing Clerks 550 $ % Electricians 2,830 $ % Industrial Machinery Mechanics 1,100 $ % Machinists 980 $ % Packing & Filling Machine Operators & Tenders 620 $ % Truck Drivers, Heavy & Tractor-Trailer 4,680 $ % Industrial Truck & Tractor Operations 1,690 $ % Laborers & Freight, Stock, & Material Movers, Hand 10,680 $ % Source: Bureau of Labor Statistics Wages Average hourly wages in the River Region (New Orleans MSA) are competitive to those in Gulfport-Biloxi, MS., Houston, TX., Lake Charles, LA., and Mobile, AL as can be seen in Tables IV-7, IV-8, and IV-9. River Region Economic Development Initiative (RREDI)
11 TABLE IV-7: AVERAGE MANUFACTURING HOURLY WAGE IN 2006 ($ PER HR. / % OF RIVER REGION) NEW ORLEANS- RIVER GULFPORT- LAKE OCCUPATION REGION BILOXI HOUSTON CHARLES MOBILE Electricians $20.73 $ % $ % $ % $ % Industrial Machinery Mechanics $19.89 $ % $ % $ % $ % Machinists $17.67 $ % $ % $ % $ % Packing & Filling Machine Operators & Tenders $10.43 $ % $ % $ % $ % Truck Drivers, Heavy & Tractor-Trailer $15.66 $ % $ % $15.73 $ % Industrial Truck & Tractor Operators $12.46 $ % $ % $ % $ % Laborers/Freight, Stock, & Material Movers, Hand $10.37 $ % $ % $ % $ % Source: Bureau of Labor Statistics River Region Economic Development Initiative (RREDI)
12 TABLE IV-8: AVERAGE TECHNICAL HOURLY WAGE IN 2006 ($ PER HR. / % OF RIVER REGION) NEW ORLEANS- GULFPORT- LAKE OCCUPATION RIVER REGION BILOXI HOUSTON CHARLES MOBILE Computer Programmers $28.21 $ % $ % $ % $ % Computer Software Engineers, Appl. $33.54 $ % $ % N/A N/A $ % Computer Systems Analysts $29.96 $ % $ % $ % $ % Civil Engineers $34.56 $ % $ % $ % $ % Electrical Engineers $39.16 $ % $ % N/A N/A $ % TABLE IV-9: AVERAGE OFFICE HOURLY WAGE IN 2006 ($ PER HR. / % OF RIVER REGION) NEW ORLEANS- GULFPORT- LAKE OCCUPATION RIVER REGION BILOXI HOUSTON CHARLES MOBILE Retail Salespersons $11.06 $ % $ % $ % $ % Tellers $9.92 $ % $ % $ % $ % Customer Service Reps $13.15 $ % $ % $ % $ % Receptionists & Information Clerks $9.84 $ % $ % $ % $ % Secretaries, Except Legal, Medical, & Executive $12.12 $ % $ % $ % $ % Insurance Claims & Policy Processing Clerks $12.81 $ % $ % $ % $ % River Region Economic Development Initiative (RREDI)
13 Right-to-Work State Louisiana is one of 22 Right-to-Work states in the country. According to the National Right-to- Work Legal Defense Foundation, Right-to-Work affirms the right of every American to work for a living without being compelled to belong to a union. There is very little union activity in the River Region and most employers report labor-management relations are very good. River Region Economic Development Initiative (RREDI)
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