Industry Economic Outlook Remains Positive as Capital Investment Expectations Rise
The Industry Economic Outlook Index measured 65, an increase from the past two measured quarters and remaining above the expansion threshold of 50 despite a shifting workforce, geopolitical and economic uncertainty. The results suggest a stable regional industrial outlook entering 2027.
The survey was conducted in late September through early October 2026 and received 30 participants from across Ascension, East Baton Rouge, Iberville, St. Charles, St. Landry, St. James, St. John the Baptist, and West Baton Rouge parishes. Most plant managers expect production, employment and capital investment to remain unchanged in the coming quarter.
Additionally, about 40% of respondents expected their company's capital investment to increase, with 0% expecting it to decrease. This was a significant increase from the previous quarter, in which 14% of respondents noted they expected their company's capital investment to increase in the next six months. The steady rise demonstrates a more optimistic outlook for the economic future of the industrial sector.
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Industrial Economic Outlook Survey of Plant Managers |
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4th Quarter 2026 |
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Survey Conducted October 2026 |
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Question |
Increase |
No Change |
Decrease |
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How do you expect your plant's production to change in the next 6 months? |
13% |
77% |
10% |
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How do you expect your company's capital investment at your plant to change in the next 6 months? |
40% |
60% |
0% |
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How do you expect your plant's COMPANY employment to change in the next 6 months? |
13% |
80% |
7% |
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How do you expect your plant's CONTRACT employment to change in the next 6 months? |
17% |
63% |
20% |
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GBRIA Economic Index Value |
65 |
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Plant managers identified several factors that could affect operations and investment decisions in the coming months. The most frequently cited concerns include seasonal demands, skilled trade shortages, and workforce shifting to other areas; housing market issues, tariffs, tax competitiveness, and increasing costs, particularly related to labor.
In contrast, other survey respondents indicated a favorable outlook tied to a need for additional contractors, site growth, new projects, and production increases. Others expect business activity to remain steady as companies navigate changing market conditions and operating costs.
While the economy and workforce continue to change and develop in the Baton Rouge area, most manufacturers predict stability in their field with room for growth due to expansion and changing needs.
About the Survey
The Economic Outlook Survey is conducted quarterly to gauge near-term expectations for production, employment and capital investment among key industrial manufacturing sites in the Greater Baton Rouge and New Orleans region.
The Economic Outlook Index is a forward-looking indicator modeled after The Business Roundtable CEO Economic Outlook Index. The index is calculated as a diffusion index centered on 50 and ranges from -50 to 150. Values above 50 indicate expectations for economic expansion, while values below 50 indicate expectations for economic contraction.
About GBRIA
For more than 55 years, the Greater Baton Rouge Industry Alliance has united industry leaders, contractors, and suppliers to develop solutions to shared challenges.
Through the New Orleans Industry Alliance, we are expanding that collaboration across Southeast Louisiana, now representing over 80 facilities spanning petrochemical, pharmaceutical, storage, and other manufacturing sectors.
Learn more at www.gbria.org or www.noria.la.