With 2017 being his first year as president of the Louisiana Chemical Association (LCA) and the Louisiana Chemical Industry Alliance (LCIA), Greg Bowser's goal is to continue to provide members with information that will enable them to further the growth of the chemical industry. BIC Magazine recently sat down with Bowser to learn more about the information LCA is sharing with its members and the pressing issues facing the state's chemical industry today.
Q: What is the "hottest topic" among LCA's members right now?
A: The hottest topic among LCA members will be any changes made to the tax structure in Louisiana. Before the session began, Gov. John Bel Edwards proposed some tax changes that would be very burdensome to the business community. Fighting to keep Louisiana a very business-friendly state is of the utmost importance to LCA and its members, so any tax changes that would deter a business from making new investments, expanding current businesses or continuing operations in Louisiana is a non-starter for us.
We are also very interested in efforts to improve transportation in the state. LCA has been working diligently with other organizations to find ways to alleviate the traffic situation within the state that hinders employees from getting to and from work as well as delays trucks that carry our products throughout the state.
Q: What do you hope to achieve for LCA during your first year as president?
A: We aim to show the positive impact our members have on Louisiana and on the local communities where they operate through many methods. LCA is looking to expand its ability to reach members and the general public through many multimedia channels, including -- but not exclusive to -- television, radio, internet and social media channels.
Q: What will be the biggest breakthroughs in Louisiana's chemical industry in 1-2 years?
A: One of the biggest breakthroughs in our industry over the next 1-2 years will be how we manage the added demands for natural gas. While technology has allowed for easier and more affordable access to natural gas, we have also seen the uses for natural gas increase. For example, we now have facilities to export large amounts of natural gas to other countries. We are also seeing a move to using more natural gas-powered vehicles.
Finding ways to continue to satisfy the increased demand locally, nationally and internationally for natural gas while continuing to supply it at a competitive cost is very important. Louisiana has seen a renaissance in chemical manufacturing throughout the past decade, thanks in large part to the abundance of affordable natural gas. We will continue to look for new and innovative ways to keep the availability and the price of natural gas in Louisiana favorable for those who rely on it.
Q: What needs to be done to ensure all this investment comes to Louisiana and stays?
A: The state needs to have a fair and stable tax policy. Many of the chemical manufacturers in Louisiana are multinational companies that have a vast array of options when it comes to where they locate their facilities. If Louisiana's tax continues its recent trend of volatility that consistently increases the burden placed on the business community, the companies that can relocate will do so to another location that offers them a warmer business climate with more stability.
Part of the solution to Louisiana's instability will be the continuation of incentive programs that can compete with those in other states that are trying to attack Louisiana's industry investments. Programs such as the Industrial Property Tax Exemption Program (ITEP) and Payment in Lieu of Taxes (PILOT) have given Louisiana a leg up in recent years. Keeping those programs intact will help secure the future of the industry in Louisiana.
Finally, a trained and educated workforce is just as important. With the growth the state has seen in manufacturing, there is a huge demand for a skilled workforce to fill the new jobs coming to the state. As employment rates have plummeted statewide, heavy industrial areas such as Baton Rouge and Lake Charles have actually seen job growth. The majority of those jobs are a result, directly or indirectly, of the chemical manufacturing industry. We can continue that trend by being able to fill those jobs with educated, qualified Louisiana workers.
For more information, visit www.lca.org or call (225) 344-2609.
