The Greater Baton Rouge Industry Alliance’s newly released Q3 economic outlook survey shows that the association’s members expect capital spending, hiring and production to increase, though some are concerned that the region’s skilled craft workforce may not be strong enough to support continued growth.
GBRIA comprises more than 66 industrial facilities in and around the Baton Rouge and New Orleans metros. The new survey saw plant managers from 39 sites—or 65% of the association’s members—weigh in on what they anticipate the next six months will look like for their operations.
The GBRIA index, a measure of member confidence, currently sits at 84—a 14-point increase from the association’s Q2 survey results. An index above 50 suggests an expanding economy and general optimism about the short-term future.
As for the aforementioned workforce troubles, respondents are mostly concerned about the competitiveness in the industrial labor market and about how upcoming turnaround projects will impact capital expenditures and worker headcounts.
Among the survey’s notable findings:
Forty percent of respondents expect production to increase over the course of the next six months. Fifty percent expect no change, and 10% expect production to decrease.
Forty percent of respondents expect capital expenditures to increase over the course of the next six months. Sixty percent expect no change, and no respondents expect capital expenditures to decrease.
Thirty-two percent of respondents expect company employment to increase over the course of the next six months. Sixty-eight percent expect no change, and no respondents expect company employment to decrease.
Thirty-two percent of respondents expect contract employment to increase over the course of the next six months. Sixty-three percent expect no change, and 1% expect contract employment to decrease.
