Managers of regional industrial sites expect production, spending and hiring to remain fairly steady through the end of this year, a Greater Baton Rouge Industry Alliance survey indicates.
However, the same survey shows rising optimism as managers anticipate adding capacity in 2024.
The “GBRIA Index,” modeled after the Business Roundtable CEO Economic Index, is at 64, up two points from GBRIA’s last quarterly survey. An index above 50 suggests an expanding economy.
“The slight uptick in the index after the downward trend of several quarters shows anticipation for 2024,” GBRIA says.
Concerns include profit margins, a decrease in product demand, and the cost and quality of labor. Managers were asked during the third quarter about their expectations for the following six months:
- Production: 11% expected an increase, while 75% expected no change and 14% expected a decrease;
- Capital spending: 37% increase, 52% no change, 11% decrease;
- Direct employment: 23% increase, 71% no change, 6% decrease;
- Contract employment: 25% increase, 69% no change, 6% decrease.
Managers from 37 sites, representing half of GRBRIA’s members, responded to the survey.