BATON ROUGE, LA – April 22, 2020: The Greater Baton Rouge Industry Alliance, Inc. (GBRIA)’s survey of its members shows a drastic decrease in its expected capital expenditures and contract employment in the next six months. The survey is a forward looking index similar to an index the CEO’s of The Business Roundtable report. Plant managers of 30 sites, or 50 percent of GBRIA members, weighed in on what they believe the next six months hold for their plants. The current GBRIA index result is 22, a significant decrease from previous quarters’ results.
Facilities significantly reduced their workforce to limit contact among employees on site as a precaution to Covid-19. In addition, the decreasing oil prices negatively impacts production and demand of GBRIA members.
|2020 Second Quarter Forecast|
|How do you expect your plant’s production to change in the next 6 months?||10%||53%||37%||23|
|How do you expect your company’s capital expenditures to change at your plant in the next 6 months?||13%||33%||53%||10|
|How do you expect your plant’s COMPANY employment to change in the next 6 months?||13%||73%||13%||50|
|How do you expect your company’s CONTRACT employment to change in the next 6 months?||10%||47%||43%||17|
|2nd Quarter 2020 GBRIA Economic Index||22|
The Index value is calculated as a diffusion index centered on 50 and ranges from negative 50 to positive 150. Values over 50 predict an expanding economy and values below 50, a contracting economy.
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