The Coastal Index: The Problem and Possibility of Our Coast

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The Coastal Index: The Problem and Possibility of Our Coast Dr. George Hobor Dr. Allison Plyer Ben Horwitz

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In 2010, the Deepwater Horizon oil platform blew up and sank 45 miles from Plaquemines Parish, spilling millions of barrels of oil into the Gulf. The spill added to the ongoing deterioration of our coasts, and although it remains a working coast of national economic importance, residents are moving inland. At the same time, the billions of dollars being spent to protect and restore the coast can add to a firm economic foundation established by a long history of working and living with water. A promising “water management” sector is developing that can diversify the economy and bolster Southeast Louisiana’s sustainability for the long term.

Transcript of The Coastal Index: The Problem and Possibility of Our Coast

  • 1. The Coastal Index: The Problem and Possibility of Our Coast The Coastal Index: The Problem and Possibility of Our Coast Dr. George Hobor Dr. Allison Plyer Ben Horwitz

2. " Regional markets are made up of complex, place-based interactions that often result in economic interdependence across proximal metropolitan areas. Our previous research found that the parishes in the super region were highly synergistic and interconnected as evidenced by commuter patterns, industrial specializations, and freight flows." The Baton Rouge, New Orleans, and Houma- Thibodaux "super region (aka Southeast Louisiana) 3. Sources: Louisiana Economic Development, Greater New Orleans Inc., New Orleans Business Alliance, Baton Rouge Area Chamber, and South Louisiana Economic Council. The target industries of each of the major regional economic development organizations in Southeast Louisiana align nicely with the target industries of LED. 4. Location quotients of business services and construction products and services Source: U.S. Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School. 5. The coast of the U.S. contributes 42 percent of national economic output, and 39 percent of U.S. population live in coastal counties. Protecting the U.S. coast will be a central focus of this century. Source: Relative Sea Level (RSL) Variations of the United States 1854-2006. (2009). Derived from 128 National Water Level Observation Network Stations. Source: Department of Commerce (DOC), National Oceanic and Atmospheric Administration (NOAA), National Ocean Service (NOS), Center for Operational Oceanographic Products and Services (CO-OPS). Retrieved April 9, 2014, from http://tidesandcurrents.noaa.gov/publications/Tech_rpt_53.pdf. Historical changes to relative sea level THE PROBLEM 6. Sea level rise is rapidly increasing flood risk to essential economic infrastructure and population centers. Source: Carbonell, A. & Meffert, D.J. (2009). Climate change and the resilience of New Orleans: The adaptation of deltaic urban form. World Bank. Predicted Louisiana land loss with 1.0 to 3.3 feet relative sea level rise by 2100 THE PROBLEM 7. Coastal areas are second only to inner cities in terms of having high ratios of jobs to the number of people who live there. Source: U.S. Census Bureau: Local Employment Dynamics, 2011. THE PROBLEM Coastal areas as job generators, 2011 8. With unemployment rates lower than the national average, Southeast Louisiana is a working coast. Source: Bureau of Labor Statistics Unemployment rate by metro Southeast Louisiana and the United States THE PROBLEM 9. Residents of Southeast Louisiana have begun a gradual retreat from the coastline, and several coastal communities have continually lost population since July 2005. Source: USPS Delivery Statistics; U.S. Census Bureau: 2010 Census; 2008-2012 American Community Survey THE PROBLEM Increases and decreases in households receiving mail, July 2005-January 2014 ZIP codes in coastal parishes 10. Source: Greater New Orleans Urban Water Plan Living with water 11. Water management is the second largest of the economic sectors that regional leadership has targeted for growth and has added more jobs than any other sector since 2010. Source: The Data Centers analysis of data from EMSI. Employment by target sector Southeast Louisiana THE POSSIBILITY 12. Location quotients show Southeast Louisiana has sustained a competitive advantage in water management over time, making it a sector of promise for future development. Location quotients by target sector, 2013 Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 13. The water management sector grew by 7,526 jobs from 2011 to 2013 outperforming overall national trends and sector trends. Shift share analysis of water management, 2011-2013 Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 14. In comparison to other target sectors, only water management and digital media showed a competitive effect. Shift share by target sector, 2011-2013 Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 15. With 75 percent of jobs in occupations offering hourly wages over $15 an hour, water management offers high returns for modest amounts of training. Percent of jobs by wage level, 2013 Southeast Louisiana Percent of jobs in water management by wage level and by training, 2013 Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 16. With average earnings in 2013 of $78,909, water management offered the second highest earnings out of the target sectors, but they were still below the national average of $90,327. Earnings by target sector, 2013 United States and Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 17. The water management sector spends $4.4 billion total with $2.4 billion being spent locally a level of local spending that is overmatched only by the energy and petrochemical sector. In-region and out-of-region spending by target sector, 2012 in billions of dollars, Southeast Louisiana Source: The Data Centers analysis of data from EMSI. THE POSSIBILITY 18. The bulk of the sectors within region spending is for services, such as architectural, and engineering services. Source: The Data Centers analysis of data from EMSI. Top 10 in-region supply chain spending by 4-digit NAICS industry, 2012 Southeast Louisiana THE POSSIBILITY 19. A large share of out-of-region spending is for manufactured goods. Source: The Data Centers analysis of data from EMSI. Top 10 out-of-region supply chain spending by 4-digit NAICS industry, 2012 Southeast Louisiana THE POSSIBILITY 20. CONCLUSION: The Coastal Index The retreat from the coast is real, leading to visible alterations in the composition of coastal communities. The scale of restoration activities planned have the potential to stem land and population loss and build a diverse economy for the region by formalizing the expertise residents have developed into a specialized water management economy. To become a national and even global leader in showing others how to live with water, Southeast Louisiana must build upon its impressive water management foundation. 21. CONCLUSION: The Coastal Index This can be accomplished by building upon the existing strengths in services, such as architecture and engineering services, by ensuring businesses in these industries can acquire talented workers and effectively compete for coastal work. Also, efforts to build up weaknesses, mainly the lack of manufacturers involved in water management, will greatly strengthen the cluster. It is only through further fortifying strengths and attending to weaknesses that the existing cluster will be able to expand to other markets rather than fade over time with the completion of coastal projects.