Louisiana Launches Source Louisiana Initiative for Local Businesses

Baton Rouge — On September 16, Governor Jeff Landry announced a new initiative aimed at enhancing local business opportunities in Louisiana amid a significant surge in investments exceeding $60 billion. The initiative, dubbed Source Louisiana, seeks to ensure that these investments benefit local firms through a newly created database that connects companies investing in the state with local businesses for contracting and hiring.

The Louisiana Economic Development (LED) department maintains the Source Louisiana database, allowing any business to register via the LED website. LED Secretary Susan Bourgeois highlighted that this comprehensive list of local firms available for hire did not previously exist, emphasizing the initiative’s potential to link local businesses to the larger contracting opportunities associated with incoming investments.

Governor Landry stressed the importance of ensuring that companies benefiting from state tax incentives utilize local businesses in their operations. While the initiative does not impose a formal mandate, it aims to promote accountability and facilitate reporting on partnerships with local businesses. Bourgeois noted that further details on the metrics for accountability are still under development.

In support of the initiative, Landry signed an executive order directing department heads to simplify the permitting process for large projects, including the Meta data center in Richland Parish and Hyundai’s steel mill in Ascension Parish. Landry received positive feedback from tech leader Mark Zuckerberg regarding the efficiency of Louisiana’s permitting processes, reflecting the state’s efforts to attract major investments.

Investment Landscape and Economic Impact

Louisiana’s recent investment wave includes significant projects like the Meta data center and Hyundai’s planned steel mill. In addition, the Baton Rouge chemical facility is set to produce ultra-pure isopropyl alcohol by 2027, catering to the growing semiconductor industry. ExxonMobil plans to manufacture isopropyl alcohol at 99.999% purity, which is notably more refined than the standard 99.9% used in hand sanitizers. This strategic upgrade emphasizes ExxonMobil’s commitment to meeting the demands of the tech sector.

Local Economic Growth Indicators

Recent statistics illustrate a robust economic outlook for Baton Rouge. The city has been previously recognized as one of the top 20 cities for economic strength by the Brookings Institution and is ranked among the top 10 U.S. cities for launching entrepreneurial ventures, as noted by CNN. Furthermore, U.S. News & World Report identified Baton Rouge as the seventh fastest-growing city in the nation.

The opening of Amazon’s $200 million fulfillment center, BTR1, last year on the site of the former Cortana Mall has been a catalyst for significant economic activity in the region. Since its launch, 40 new business licenses have been filed within a one-mile radius and 197 licenses within two miles. New businesses surrounding the Amazon center have seen their combined sales double from approximately $32.8 million in 2022 to over $67.8 million in 2024. This surge in activity is reflected in the rise of sales tax collections in the area, which increased from $657,000 in 2022 to $1.36 million in 2024, marking a remarkable 107% growth.

The ripple effect of the Amazon BTR1 facility is notable, contributing around $70 million in revenue in 2024 from businesses that have sprung up within a two-mile radius. The fulfillment center has also generated over 1,000 jobs, positioning it as a cornerstone of the local community, where many employees have established ties to Baton Rouge.

Future Initiatives

As part of the promotional effort for the Source Louisiana initiative, the LED team will conduct a multi-day tour throughout the state to engage businesses of all sizes. The Landry administration is poised to capitalize on the current investment climate while ensuring that local companies play a vital role in the economic growth of Louisiana.