Baton Rouge’s more than $16 billion in industrial construction projects expected

downtown baton rouge birds eye view

Ascension Corporate Rentals customers have been from industrial construction over the past two years. Though new projects have slowed recently, several major projects are expected to begin within 30 minutes of our Donaldsonville locations.

ACR to Shell Geismar Map

Baton Rouge’s surge in petrochemical plant construction and expansion, large projects like the 800-job IBM services center and Water Campus, and the area’s access to the Mississippi River, are fueling a local economic boom.

Next year, Baton Rouge, for the first time in the area’s history, is expected to exceed 400,000 overall jobs, according to economists Loren Scott and James Richardson.

Louisiana’s Economic Outlook pegs Baton Rouge as the second fastest growing area in Louisiana through 2016, adding 19,600 new jobs, or 2.4 percent growth, a reflection of the $16 billion in new industrial announcements.

“The very strong recent, and projected, performance for the Baton Rouge MSA can be heavily traced to the boom in the area’s chemical industry. As we pointed out back in the assumptions section, natural gas prices have fallen sharply in the U.S. but have actually risen in Europe,” the report reads. “Chemical firms are prodigious users of natural gas. The price advantage in the U.S. has been translated into a price advantage for our chemicals over those produced in Europe. Consequently, U.S. firms are cutting into Europe’s share of the world chemical market.”

Billions of dollars in new industrial project announcements for Baton Rouge’s 9-parish region, $6.6 billion of which are already underway, will push the demand for construction workers from 17,500 in August 2013 to 28,000 in February 2015, data show.

Most of these industrial construction workers are not native to our area and are customers for furnished rentals, corporate rentals, and extended stay housing.  We have also seen a boom in hotel building in our area.  However, Customers report that hotel stays longer than a couple of weeks are not comfortable.  Extended jobs require extended stay, home like accommodations.  Safe comfortable home like housing is the business of Ascension Corporate Rentals.

Ascension Corporate Rentals
Ascension Corporate Rentals

Scott and Richardson have tabulated $14.6 billion in announced industrial expansions alone in the Baton Rouge area. About $5.5 billion of that is already underway or near completion and $9.1 billion awaiting financing, permitting or other preliminary work before beginning construction.

The economists, however, did not account for the 10 percent of projects that could potentially come to the area.

The Baton Rouge area’s surge in the petrochemical industry has played the most prominent role in boosting the local economy. The area has the largest concentration of chemical industry activity in the state. Home to the nation’s third, and the world’s twelfth largest refinery–ExxonMobil–East Baton Rouge, Ascension and Iberville Parishes had a combined total of 9,540 chemical workers in 2012.yuhang-methanol

When the petrochemical industry expands, so does industrial construction. The Louisiana Economic Outlook said industrial construction jobs are also a reflection of “turnarounds” at the plants–when plants are shut down completely for scheduled maintenance. The economic outlook says in June 2014, the Baton Rouge area had an unusually high 12.8 percent of its workforce in the construction sector. That was the second-highest percentage in the state, behind Lake Charles, which had 14 percent.
Statewide, Louisiana’s continued growth in the oil and gas industry has driven more than $100 billion in industrial projects that are either under construction, completed or slated to start soon, prompting record job growth. Ascension Corporate Rentals remains in the perfect position to supply
safe, quite, comfortable housing for those workers coming form far away to help build our economy.

In a near repeat of last year’s economic projections, Louisiana, for the first time in state history, is expected to surpass 2 million overall jobs in 2015.


Baton Rouge’s more than $16 billion in industrial construction projects expected 

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