The Southwest Louisiana (SWLA) region is poised to undergo a prolonged period of economic growth with $68 billion in announced capital projects, which are expected to bring over 18,000 permanent jobs to the area. According to Michael Songy, CEO of CSRS Inc., this economic growth has the potential to enhance overall prosperity and quality of life throughout the region. However, unprecedented impacts to the various systems within the community can be expected. These impacts are the focus of the newly released “Southwest Louisiana Regional Impact Study,” and Songy discussed its findings at the Center for Planning Excellence’s Louisiana Smart Growth Summit in Baton Rouge.
Lessons learned
To get an idea of where SWLA is headed, Songy said it is important to examine how other communities in the U.S., like those in North Dakota, have been affected by industrialization and population growth. Schools in the Williston, North Dakota, area have seen a decrease in funding due to economic growth related to the oil boom. The funding has decreased because fewer students qualify for free or reduced-priced meals. Also, roads in the Bakken region of North Dakota are in disrepair due to transporting oil equipment. The repair of infrastructure is a great need in the region in order for oil production to grow. According to Songy, the region is still three to four years away from moving traffic efficiently.
“Fueled by the massive oil boom, North Dakota’s economic output has more than doubled in just 11 years,” Songy said. “The state is expected to have oil production until 2090. The region also expects to retain a population of 200,000, peaking in 2022. To help plan for this boom, a six county region in North Dakota organized strategic plans to address the immediate demands of the economy, while also planning for the next 15 years.”
Results of the SWLA study
The “Southwest Louisiana Regional Impact Study,” conducted by CSRS and sponsored by Sasol, is based on $68 billion in capital expenditures of expansion projects by 19 companies. The most immediate impact felt from these projects will be a surge in demand for trained employees. Projections suggest over 13,000 jobs will need to be filled by people migrating to SWLA. Songy said this figure does not include the journeyman craft laborers, which represent over 8,000 additional jobs.
Other highlights of the “Southwest Louisiana Regional Impact Study” include:
- Employment is expected to grow 4.7 percent annually between 2014-2019. For the period from 2001-2012, the region added very few jobs and experienced little to no growth. A 4.7-percent growth rate would place SWLA among the national leaders for employment and population growth.
- 22,000 new residents are expected by 2019. To put this into perspective, the city of Lake Charles has 70,000 residents.
- Over 14,000 temporary units will be needed, peaking in 2016.
- There will be a demand for approximately 8,000 permanent housing units.
- It is expected approximately 5,900 new K-12 students will enter area school systems by 2019, with over 5,100 of those students attending in Calcasieu Parish. That figure represents an increase of about 15 percent in overall district attendance.
- Freight output could double by 2021.
- Traffic congestion could increase by an additional 45 percent. According to the report, the delays associated with congestion are a major concern to first responders.
“Economic literature illustrates natural resource wealth is not a guarantee for economic success,” Songy said. “For the state and the region to capitalize on its current assets in the long term, appropriate economic strategies need to be implemented.”
It is also noted significant changes to the announced projects or the announcement of new projects will likely change the forecasts contained in the report. Initial analysis indicates approximately 85 percent of regional changes in population, jobs, school attendance and revenue will occur in Calcasieu Parish.
Songy said it wouldn’t have been feasible for CSRS to provide a list of community projects needed in the area, whether it’s transportation, housing, etc., because of the lack of increase in tax revenues.
“All our recommendations are based around consolidation, efficiency, regional planning and working together,” Songy explained. “Government and public officials in Southwest Louisiana must maximize their efficiency before considering new revenue streams.”
For more information, visit www.gogroupswla.com or call (225) 769-0546.
