Industry at Louisiana’s Port Fourchon accounted for over $2.8 billion in sales revenue and over $650 million in household earnings in 2013 in the state of Louisiana, said Dr. Loren Scott, president of Loren C. Scott & Associates, Inc., as he briefed the Greater Lafourche Port Commission at its November 7 board meeting.
GLPC commissioned the study, “The Economic Impact of Port Fourchon: An Update,” by Loren Scott & Associates earlier this year to provide an update to a previous study released in 2008 that documents the economic impacts of business at Port Fourchon.
Located in Lafourche Parish, Port Fourchon is home to companies providing service to an estimated 90% of oil and gas activity in the U.S. Gulf of Mexico, and also is host port for the Louisiana Offshore Oil Port, the largest U.S.’s largest oil-import hub.
Key findings in the new study included the total number of jobs directly related to Port Fourchon in the state of Louisiana – 10,804 – is greater than the total employment in 30 other parishes in the state, and for every one job created in Port Fourchon, another 5.2 jobs are created elsewhere in the state’s economy to support it.
“Having conducted over 200 economic impact studies, our research team can affirm that this is an unusually high multiplier effect,” the study states. The study also found that one in every thirteen jobs in Lafourche and Terrebonne parishes is directly related to the existence of Port Fourchon.
The updated study confirmed that business at Port Fourchon has been booming since the mid-2000s, showing significant increases in all categories quantified in the 2008 economic impact study. The port’s growth clearly impacts the state of Louisiana, showing increases in business sales revenue, household earnings, and wages statewide:
- Business sales revenue increased 87% from $1.5 billion in 2008 to $2.8 billion in 2014;
- Household earnings increased 88% from $350 million in 2008 to $657.5 million in 2014; and
- Average annual wage per worker also increased 32% from $43,016 in 2008 to $56,963 in 2014.
“What is most encouraging to see is that out of all that our tenants are investing and earning through their work at Port Fourchon, about 80% of it stays right here in our community, providing billions in revenue, household earnings and local taxes to the residents of Lafourche and Terrebonne,” said GLPC Executive Director Chett Chiasson.
Dr. Scott also aimed to quantify the impacts of Port Fourchon to the nation, projecting over $11.2 billion in business sales, over $3.1 billion in household earnings, and over 65,000 jobs lost if the port was out of service for a three-week period.
“We have seen the port grow physically in recent years, adding over 50% more acreage through our Northern Expansion, and this study shows how much our tenants have done with that new space to continue to grow our community’s economy and help us fulfill our mission,” Port Commission Board President Perry Gisclair said.
The full report can be found at: The Economic Impact of Port Fourchon, An Update (pdf opens in new tab)