Louisiana has improved to No. 29 in the new Forbes ranking of Best States for Business. The state has seen an increase in 20 spots since 2008. Louisiana is number 6 for business costs and number 15 for economic climate. Although the city is improving for all businesses, the city is particularly poised for success and receptive of new entrants into these particular industries.
Oil & Gas– With the innovation in electric cars and alternative sources of energy, it is counter-intuitive that the oil and gas industries would be experiencing growth. However, Sageworks, a financial information company, when ranking the ten industries with the best sales growth and profitability in 2014 included oil & gas extraction. Oil & gas extraction experienced a 19 percent sales growth rate and resulted in very healthy net margins of more than 16 percent. This data is based upon the private companies financial statements. The reason for growth has been both the increase in exports and the diversification of the type of gas sold. In New Orleans, there are both sufficient sources for these energy sources and sufficient infrastructure to support the export of the product once obtained. As such, continued growth can be expected.
Computer System Design and Security Firms– Sageworks has indicated that nationwide, computer system design firms had sales growth of 15.7 percent. The need for optimized computer systems for a multiplicity of industries which are reliant on technology for their product or service will only continue to grow. In addition, with the plague of data breaches at large and small firms alike, a specific need to make sure that the systems are created or recreated with highest level of security will ensure a continued increase in sales through 2015. In 2014 Forbes identified New Orleans, LA as the No. 3 metropolitan area for IT job growth due in part to a 28% increase in sales growth from 2009 through 2012. New Orleans supports this industry with various incentives including the digital Media and Software Incentive, which provides a 35 percent tax credit on software development labor expenditures and a 25 percent tax credit on production expenditures for 5 years. As such, the cost of running a business here is low leading to better investment in innovation and personnel and greater success. Even if your technology firm does not specifically qualify for that credit, it will find that the credit is bring great potential clients or vendors needed to support your specific firm.
Transportation– Being a port city New Orleans, is poised to be a leader in innovation when it comes to transportation. Delivery is poised to become a large part of many existing businesses’ marketing plans. Burger King and McDonalds have experimented with delivery in certain markets and Starbucks starting the same in the second half of 2015. More specifically to New Orleans, worldwide and global transportation opportunities will be lucrative as customers become more accustomed from purchasing foreign goods due to the success of foreign companies like Alibaba. The status as a foreign trade zone means that tariffs for exports are null or less than in other cities.