Advanced Manufacturing Solutions Start Here
Decades of manufacturing expertise, the nation’s best state workforce development program, and highly competitive incentives are putting Louisiana at the epicenter of the U.S. manufacturing renaissance. Strategic investments in site identification, robust GIS-mapping technology and the nation’s lowest taxes for new manufacturing operations combined with a strong, pro-business climate are attracting industry leaders such as Nucor, Benteler Steel/Tube and Gardner Denver to Louisiana.
A Workforce Manufactured for Success
Manufacturers can benefit from Louisiana’s sizeable available workforce. A right-to-work state for more than three decades, more than 430,000 workers in Louisiana are currently employed in occupations relevant to manufacturing according to Economic Modeling Specialists Inc.
New investors in the state can be sure of Louisiana’s continued workforce growth, because the state is making strategic investments in higher education to meet the future needs of industry. The majority of the state’s research universities have institutes, programs of study and/or centers specializing in manufacturing focus areas. In all, Louisiana graduates more than 22,000 people per year with credentials relevant to the manufacturing industry, according to the National Center for Education Statistics.
In addition, Louisiana investments in community and technical schools are ensuring the production of highly skilled workers statewide. From 2007 to 2012, the state invested more than $250 million in new and modernized training facilities and in 2013 authorized an additional $250 million in workforce-related projects. Enrollment at these institutions is also up, surging 72 percent from 2007 to 2012, according to the U.S. Department of Education.
In conjunction with private sector projects, Louisiana is willing to make additional education and training-related investments to support a company’s goals. For example, the state is currently building specialized training centers at Bossier Parish Community College for Benteler Steel/Tube and for Sasol at Southwest Louisiana Community and Technical College. These advanced technology centers house the latest technology and are staffed with LED FastStart® team members to accommodate all phases of recruitment, assessment and training activities. Once company-specific recruitment and training services ramp down, facilities such as this one will be available to other students as part of the Louisiana Community and Technical College System. This results in a net benefit for the company and the community.
Workforce Development Customized for Manufacturing
LED FastStart creates customized workforce recruitment, screening and training solutions for new or expanding companies — at no cost to eligible companies.
With only one goal, client satisfaction, LED FastStart pairs its world-class team with a company’s subject matter experts to learn the company’s unique processes and culture. After determining the competencies that match the cultural and technical abilities that will help define the most successful employee, the LED FastStart team employs traditional and innovative methods to recruit qualified talent that matches the company’s specific requirements.
Based on a company’s immediate and long-term workforce needs, the LED FastStart team will craft unique programs that ensure high-quality, flexible workers are prepared on day one and beyond. Technical, team-based and soft-skills training programs are sequenced and delivered to engage new employees. LED FastStart helps improve learning curves, and increases a company’s productivity, resulting in a faster start and a better bottom line. Post-employment classes are strategically developed and sequenced to orient new team members into a company’s organization. LED FastStart’s world-class training adds value to every level of a company.
LED FastStart team members have developed and managed hundreds of customized workforce training programs for a wide variety of companies across multiple industry sectors, including Fortune 500 companies. In particular, the team has managed hundreds of workforce programs in multiple states for leading companies like Gardner Denver Thomas, Lockheed Martin, Nucor, Northrop Grumman, Crest Industries and Union Tank Car.
“The value that [LED FastStart] brought was [an] ability to hit the marketplace with a successful operation, a successful product and meet the delivery dates that we promised. It’s huge. It’s putting us in a position in the marketplace to be the No. 1 spiral mill producer in North America.”
Bold Business Incentives for Advanced Manufacturing Companies
As the U.S. experiences an industrial rebirth, Louisiana’s highly competitive incentives are offering both new and existing manufacturers in the state significant advantages.
Manufacturers may qualify for the Quality Jobs program, which provides up to a 6 percent cash rebate of annual gross payroll for new, direct jobs for up to 10 years. It could also provide a state sales/use rebate on capital expenditures or a 1.5 percent project facility expense rebate for qualified expenses.
Louisiana offers the Industrial Tax Exemption Program, which provides property tax abatement for up to ten years on a manufacturer’s new investment and annual capitalized addition.
Louisiana’s Research and Development Tax Credit provides up to a 40 percent tax credit on qualified research expenditures incurred in Louisiana – with no cap and no minimum requirement.
“Louisiana is a state that wants to help business succeed.”
Low Tax Rates & Competitive Business Climate for Manufacturers
At the core of Louisiana’s competitive manufacturing advantages is the strength of its business climate. Louisiana now ranks in the Top 10 states for business climate in the U.S., according to Area Development, Development Counsellors International and Site Selection.
Low Tax Rates
Louisiana’s low-tax environment offers manufacturers significant cost savings. According to a 50-state analysis by the Tax Foundation and KPMG: Location Matters: The State Tax Costs of Doing Business, Louisiana ranks as the lowest tax burden for new facilities, relocations, and facility expansions for both capital-intensive and labor-intensive manufacturing operations in the U.S. The total effective tax rate (based on all state and local taxes including income tax, franchise tax, sales tax and property tax) is less than one percent.
Low Utility Rates
A location in Louisiana can reduce company costs because of the state’s low industrial electricity rates — 2017 rates averaged approximately 22 percent below the national average.
Louisiana’s industrial natural gas rates are also highly competitive, with the state’s 2017 rates averaging the lowest in the South and approximately 10 percent below the national average.
Expedited Permitting Reduces Start-up Time
Louisiana understands that a company’s ability to ramp up quickly and efficiently is a significant factor in their location decision. To assist businesses with getting up and running sooner, the state has created an expedited environmental permit-processing program, which enables Louisiana to issue permits more quickly and efficiently than just about any other state in the country.
“We found the expedited permitting process to be a valuable option in our efforts to obtain a permit in Louisiana. The process was thorough, efficient and very timely.”
The Perfect Place to Build Your Business
Louisiana’s location is one of its most valuable advantages. The state’s superior transportation infrastructure enables companies to have access to nearby major markets such as Dallas, Houston and Atlanta, while benefiting from Louisiana’s lower cost structure for wages, taxes and cost of living.
Louisiana is well situated for both inbound and outbound logistics. The state is home to:
Six interstate highways
Six Class 1 railroads
Six deepwater ports
Seven primary airports
When it comes time to find the best location for your operation, Louisiana has an extensive selection of development-ready sites searchable in its Site Selection Center. The LED Certified Sites program further qualifies industrial sites based on zoning restrictions, title work, environmental studies, soil analysis and surveys.
Of particular interest to many manufacturers is NASA’s Michoud Assembly Facility in New Orleans. Now a multitenant facility for high-tech industries including advanced manufacturing, the main facility has:
43 acres under one roof
An extensive overhead crane network
A deepwater port with access to highway and rail
400,000 square feet of available manufacturing space