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Manufacturing

Louisiana Manufacturing Industry

Tailored Solutions Built to Manufacturing Specs

Decades of manufacturing expertise, the nation's lowest taxes for new manufacturing operations 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 best state workforce development program combined with a strong, pro-business climate are attracting industry leaders such as Nucor, Benteler Steel/Tube and Gardner Denver to Louisiana.

At the core of Louisiana's competitive manufacturing advantages is the strength of its business climate. Louisiana now ranks in the Top 10 states in the country for business climate according to several national publications including Area Development, Business Facilities and Site Selection magazines.

Louisiana's Advanced Manufacturing Talent

Manufacturers can benefit from Louisiana's sizeable available workforce. A right-to-work state for more than three decades, more than 450,000 workers in Louisiana are currently employed in occupations relevant to manufacturing according to Economic Modeling Specialists Intl.

Investments in Higher Education Support Workforce

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 17,000 people per year with credentials relevant to the manufacturing industry, according to the National Center for Education Statistics. View 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.

LED FastStart Delivers Customized Workforce Solutions

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.

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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.

Low Taxes and Competitive Business Climate

Louisiana's low-tax environment offers manufacturers significant cost savings. According to a 50-state analysis by the Tax Foundation and KPMG: Location Matters: A Comparative Analysis of State Costs on Business, Louisiana ranks as the lowest tax burden for new capital intensive manufacturing operations in the U.S. and the lowest tax burden for new labor-intensive manufacturing operations. 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.

For this unique study, an appropriate example company was identified for each scenario. Assumptions were made around the number of employees by function, salaries, capital investment, revenue, profit and the amount of property, payroll and sales in the state. This methodology provided an apples-to-apples comparison of corporate tax costs across all 50 states.

Low Utility Rates

A location in Louisiana can reduce company costs because of the state's low industrial electricity rates — from 2012-2014 rates averaged approximately 19 percent below the national average.

Louisiana's industrial natural gas rates are also highly competitive, with the state's rates from 2012-2014 averaging the lowest in the South and approximately 18 percent below the national average.

Customized Incentive Packages

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.

  • For competitive projects that involve substantial new-job creation, major investment and the majority of sales to out-of-state customers, the Competitive Projects Payroll Incentive can provide up to a 15 percent payroll rebate over 10 years. Additionally, a participating company will be eligible for either a 4 percent rebate of state sales and use taxes on capital expenditures or a 1.5 percent project facility expense rebate. See applicable industries >
  • If not eligible for the Competitive Projects Payroll Incentive, manufacturers may still qualify for the Quality Jobs program, which provides a 5 percent or 6 percent cash rebate of annual gross payroll for new, direct jobs for up to 10 years. It could also provide a 4 percent sales/use tax rebate on capital expenditures or a 1.5 percent investment tax credit for qualified expenses.
  • Louisiana offers the Industrial Tax Exemption Program, which provides a 100 percent property tax abatement for an initial five-year term with an option for a five-year renewal on manufacturer's qualifying capital investments.
  • 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.

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For more information on Louisiana’s Manufacturing Industry, click here.

Contact Info Louisiana

Sanchia Kirkpatrick
Chief Representative, United Kingdom

Premier Business Centre
20 Adelaide Street
Belfast, BT28GD
Tel: +44 77 932 229 39
Email: sanchia.kirkpatrick@la.gov

Geert Hovens
Chief Representative, Germany, Austria, Switzerland

Patersstraat 35
5801 AT Venray
The Netherlands
Tel: +31 (478) 50 81 65
Email: geert.hovens@la.gov

C.A.S.E. Call Centre

Ursula Becker

+32 488 331 972

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Mon - Fri: 9:00 - 17:00