The document discusses Louisiana's historical underperformance in economic growth compared to other Southern states and the U.S. It outlines LED's goal of adding 40,000 new jobs per year through pursuing eight integrated economic development strategies, including identifying six target industry sectors that could add 225,000-400,000 jobs over 20 years. The document emphasizes that partnerships with higher education have been critical to recent economic wins and should be models for future collaborations, as the ultimate frontier for Louisiana's economic development will be realized through developing higher education.

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 THE
SOUTH 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 Manufacturing
30.0 1050.0 47 3200 13 660.0
44 3100
1000.0 12
28.0 600.0
41 3000
950.0 11
26.0 540.0
38 2900
900.0 10
35 2800
24.0 480.0
850.0 9
32 2700
22.0 420.0
800.0 8
29 2600
20.0 750.0 26 2500 7 360.0
2

4. SINCE 2008, LOUISIANA’S EMPLOYMENT LEVELS HAVE
OUTPERFORMED BOTH THE SOUTH AND NATION
Total 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 YEARS
Employment (millions)
2.8
LA at Aspiration rate (GA, NC, TX)
2.7
2.6 LA at Peer rate (South)
Gap of
2.5 525,000
Gap of jobs vs.
2.4 400,000 jobs Aspiration
vs. Peer
LA at US rate
2.3
2.2 Current LA forecast
2.1 LA projected
to gain 290,000
2.0 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 WE
POSITION LOUISIANA
TO GROW FASTER
THAN THE SOUTH
AND U.S. ON A
REGULAR BASIS?
7

9. WE HAVE AGGRESSIVELY PURSUED EIGHT INTEGRATED
ECONOMIC 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 INTEGRATED
ECONOMIC 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 INTEGRATED
ECONOMIC 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 2012
Workforce 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 notable
statewide workforce-
development initiative comes
from Louisiana. Its FastStart
programme, launched in
2008, helps companies
recruit and train workers.
12

14. LOUISIANA’S BUSINESS CLIMATE RANKINGS HAVE
IMPROVED 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 AND
PRIORITIZE 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 GREAT
POTENTIAL 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 ▪ 5-10
Total ~80 - 145 ~225 - 400
17

19. PURSUING THESE TARGETS CAN HELP US ACHIEVE OUR TARGET GROWTH
RATE WHILE GENERATING NEW POPULATION AND TAX REVENUES
Total jobs added, 2009-29 (thousands)
Baseline forecast 290
LA at rate of 690
South
LA at Aspiration
815
815
rate
18

20. PURSUING THESE TARGETS CAN HELP US ACHIEVE OUR TARGET GROWTH
RATE WHILE GENERATING NEW POPULATION AND TAX REVENUES
Total jobs added, 2009-29 (thousands)
Baseline forecast Growth
290 225-400 515-690 Sectors
+ Growth Sec.
LA at rate of 690 Additional economic
South impact over 20
years
LA at Aspiration
815
815
rate ▪ ~$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 GROWTH
RATE WHILE GENERATING NEW POPULATION AND TAX REVENUES
Total jobs added, 2009-29 (thousands)
Baseline forecast Other
290 225-400 125-300 ~815 efforts
+ all other efforts
LA at rate of 690
South
LA at Aspiration 815
rate
20

22. KEY ROLES OF HIGHER EDUCATION IN THE ECONOMIC
DEVELOPMENT 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
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24. 23

25. 24

26. 25

27. 26

28. 27

29. 28

30. PARTNERSHIPS WITH HIGHER EDUCATION HAVE BEEN CRITICAL TO
RECENT WINS AND ARE MODELS FOR FUTURE COLLABORATIONS
Company High Ed Partner Initiative
CenturyLink Louisiana Tech ~$2 million over seven years to expand
telecommunications technology curriculum
Electronic 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 programs
Benteler Bossier Parish CC $22 million for a new training facility and
equipment focused on manufacturing technology
Sasol Sowela $20 million for a new training facility and
equipment focused on industrial technology
ConAgra LSU Ag Center Several significant research contributions that
helped secure the project
IBM LSU, others TBD $14 million over 10 years to increase the number
of computer science graduates
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31. 30

32. 31

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
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34. THE ULTIMATE FRONTIER FOR
ECONOMIC DEVELOPMENT IN
LOUISIANA WILL BE REALIZED
THROUGH THE DEVELOPMENT
OF HIGHER EDUCATION
33