Economic Impact Study Provides Evidence Port Fourchon is Critical To the Nation’s Economy
(GALLIANO, LA, –At a press conference held today, an economic impact study entitled “Economic Impacts of Port Fourchon on the National and Regional Economies” was officially released to media and a crowd of about 80 local and state leaders.
Completed by Dr. Loren Scott with Loren C. Scott and Associates, the study provides evidence of the critical importance of Port Fourchon to our regional and national economies.
Dr. Scott said, “We engaged in this report to find out the dollars and cents and what exactly Port Fourchon means to this country.”
According to the study, if Port Fourchon had a 3 week loss of service for any reason, it would equate to a national economic impact of $9.9 billion in sales loss, $2.9 billion in household earnings loss, and over 77,000 jobs loss nationally. These figures are based on $66 barrel of oil.
Ted Falgout, Port Director said, ” We have long felt that the impact of this corridor to our region and nation was huge, and now we have well documented evidence that even our own estimates were understated. Port Fourchon’s significance is growing every day.”
Don Pierson, Assistant Secretary of Louisiana Economic Development said, “This is a very significant event today. This report is a valuable tool to build the economy, assets and investments in this state. We can use this to show the Department of Homeland Security, Department of Commerce and other organizations that Port Fourchon is a major asset.”
Port Fourchon’s regional (Houma Metropolitan Statistical Area) economic impact includes $1.5 billion in business sales and $350 million in household earnings. According to Dr. Scott, due to the sensitive company information being asked for such as annual earnings, number of employees, payroll data, etc., not all businesses wanted to report the data.
“I would estimate that the regional figures we found are approximately 33% higher because of this. We were however able to get a majority of the larger businesses to cooperate,” said Dr. Scott.
Lafourche Parish President Charlotte Randolph said, “People don’t always realize the impact until we put it into monetary values. This report will answer questions about the cost and benefit analysis of our parish, and we will be able to use it as leverage to get funding we need.”
“After September 11th, homeland security came in to protect the port from terrorists, but we are being attacked daily by natural forces. The federal government should spend any money necessary to protect these areas,” Michel Claudet, Terrebonne Parish President.
The study was funded by a Tier II Matching Grant Award from the Louisiana Department of Economic Development, which funds goals and objectives based on the marketing and promotion of business and industrial development in Louisiana. The South Louisiana Economic Council was also instrumental in the production of the grant application.
To receive a copy of the complete report, please contact Paula Schouest, Public Relations Coordinator at (985) 632-6701.