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State of Louisiana

To foster a vibrant economy and educated populace by becoming the economic and energy leader of the South by 2050.

State of Louisiana logo

State of Louisiana SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

The State of Louisiana SWOT analysis reveals a critical inflection point. Its formidable strengths in energy and logistics provide the economic engine, but this engine is threatened by foundational weaknesses in education, outbound migration, and a high-cost insurance and legal environment. The analysis underscores that Louisiana's path to achieving its vision hinges on leveraging its current window of political alignment to enact sweeping reforms. Seizing opportunities in economic diversification and federal infrastructure funding is not merely an option but a necessity to mitigate the existential threats of interstate competition and climate change. The state must urgently pivot from resource extraction to talent cultivation and business environment optimization to secure a prosperous, resilient future.

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To foster a vibrant economy and educated populace by becoming the economic and energy leader of the South by 2050.

Strengths

  • ENERGY: Global leader in LNG exports and oil refining, driving state GDP.
  • LOGISTICS: #1 in US for total trade volume via Port of South Louisiana.
  • CULTURE: World-renowned brand in tourism, music, and cuisine attracts visitors.
  • EXPORTS: Consistently ranks top 5 in US for exports per capita value.
  • WORKFORCE: Loyal, skilled industrial workforce in petrochemical/manufacturing.

Weaknesses

  • EDUCATION: Ranked 48th nationally in Pre-K-12 education by US News.
  • MIGRATION: Net loss of 19,000 residents in 2023, ongoing brain drain.
  • INSURANCE: Highest average car and home insurance premiums in the nation.
  • HEALTHCARE: Ranks 49th in overall public health outcomes, high poverty.
  • INFRASTRUCTURE: D+ grade from ASCE, needs $15B+ in critical upgrades.

Opportunities

  • DIVERSIFY: Grow non-energy sectors like life sciences, tech, and aerospace.
  • REFORM: New administration has political capital for major tax/tort reform.
  • MANUFACTURING: Capitalize on reshoring trends with low energy costs.
  • CCUS: Potential to become a national hub for carbon capture technology/storage.
  • INFRASTRUCTURE: Leverage federal IIJA funds to upgrade bridges, ports, grid.

Threats

  • COMPETITION: Texas and Florida aggressively recruit businesses and talent.
  • CLIMATE: Increasing hurricane intensity and coastal land loss threaten assets.
  • REGULATION: Federal environmental policies could constrain energy sector growth.
  • LITIGATION: 'Judicial Hellhole' reputation increases costs of doing business.
  • DEPENDENCY: State budget remains highly sensitive to oil/gas price swings.

Key Priorities

  • REFORM: Execute bold tort and tax reform to fix the high-cost environment.
  • TALENT: Stop brain drain by aligning education with high-paying industries.
  • DIVERSIFY: Aggressively recruit in tech, life sciences, and manufacturing.
  • INFRASTRUCTURE: Secure funding and modernize critical ports and transportation.

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State of Louisiana Market

  • Founded: 1812 (Admitted to the Union)
  • Market Share: Ranks 24th in US state GDP, representing ~1% of national GDP.
  • Customer Base: 4.57 million residents, ~200,000 businesses, 50M+ annual tourists.
  • Category:
  • SIC Code: 9199 Administration of General Economic Programs
  • NAICS Code: 921190 Other General Government Support
  • Location: Baton Rouge, Louisiana
  • Zip Code: 70802
    Congressional District: LA-6 BATON ROUGE
  • Employees: 75400
Competitors
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Products & Services
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Distribution Channels

State of Louisiana Product Market Fit Analysis

Updated: October 3, 2025

Louisiana offers an unparalleled strategic advantage for businesses seeking to thrive. It combines the nation's leading energy and logistics infrastructure with a simplified, low-cost operating environment. Anchored by a pro-growth government and a unique cultural backdrop, Louisiana is engineering a resilient and prosperous future, making it the premier destination for long-term investment and talent in the Gulf South.

1

Dramatically lower operating costs and tax burdens.

2

Access to a skilled workforce and global logistics.

3

A pro-business government committed to your success.



Before State

  • Complex, unpredictable tax and regulatory system
  • Declining population and brain drain of talent
  • Underperforming K-12 and higher ed outcomes
  • Crumbling infrastructure & high insurance costs

After State

  • A simple, competitive, and stable business tax
  • Net positive migration of skilled professionals
  • Top 25 state for education and workforce dev
  • Modern, resilient infrastructure and energy grid

Negative Impacts

  • Businesses choosing to invest in other states
  • Shrinking tax base to fund essential services
  • Workforce skills gap for modern industries
  • Vulnerability to extreme weather events grows

Positive Outcomes

  • Diversified economic growth beyond oil and gas
  • Increased household income and quality of life
  • Attraction of high-tech and corporate HQs
  • Lower business/resident costs, increased safety

Key Metrics

Customer Retention Rates - 0.2% annual population decline (2023)
Net Promoter Score (NPS) - ~40% resident approval of state direction
User Growth Rate - -0.8% net migration rate, a key challenge
Customer Feedback/Reviews - Ranked #50 in 'Best States' by US News
Repeat Purchase Rates) - High repeat tourism but challenges in business retention

Requirements

  • Bold, sustained legislative and fiscal reform
  • Public-private partnerships for key projects
  • Significant investment in education and training
  • Streamlined permitting and agency processes

Why State of Louisiana

  • Launch a constitutional convention for tax reform
  • Fund strategic infrastructure projects (new bridge)
  • Overhaul workforce development programs (LED)
  • Implement AI to modernize government services

State of Louisiana Competitive Advantage

  • Leverage energy dominance to fund diversification
  • Utilize port system as a global logistics hub
  • Market unique culture as a talent magnet
  • Become a leader in carbon capture technology

Proof Points

  • Top national ranking in per-capita exports
  • Major LNG export capacity expansion projects
  • Growing software development and film sectors
  • Successful coastal restoration projects
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State of Louisiana Market Positioning

Strategic pillars derived from our vision-focused SWOT analysis

1

ENERGY DOMINANCE

Modernize and lead in both traditional and new energy.

2

TALENT PIPELINE

Align education with high-demand workforce needs.

3

INFRASTRUCTURE MODERNIZATION

Invest in resilient ports, roads, and digital networks.

4

BUSINESS MAGNET

Simplify regulations and taxes to attract investment.

What You Do

  • Provides public services and fosters an environment for economic growth.

Target Market

  • Residents, businesses, and visitors of Louisiana.

Differentiation

  • Unmatched cultural heritage (music, food, festivals).
  • Strategic location with Mississippi River and Gulf of Mexico access.
  • Dominant player in US energy production and refining.

Revenue Streams

  • Sales Tax
  • Income Tax (Corporate & Personal)
  • Severance Tax (Oil & Gas)
  • Federal Funding
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State of Louisiana Operations and Technology

Company Operations
  • Organizational Structure: Executive, Legislative, and Judicial branches with cabinet-level departments.
  • Supply Chain: Manages procurement for state services, infrastructure projects, and education.
  • Tech Patents: Focus on university research commercialization, particularly in energy/health.
  • Website: https://www.louisiana.gov/
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State of Louisiana Competitive Forces

Threat of New Entry

LOW: The 'market' is fixed to 50 states. The barriers to creating a new state are insurmountable, making direct new entry impossible. Competition is from existing players.

Supplier Power

MEDIUM: The federal government is a key 'supplier' of funds and regulations, holding significant power over state policy, especially in environmental and healthcare areas.

Buyer Power

HIGH: Large corporations have significant power, able to demand substantial tax incentives and infrastructure support in exchange for investment, effectively negotiating terms with the state.

Threat of Substitution

HIGH: Businesses and residents can easily 'substitute' by relocating to other states with lower taxes, better schools, or lower insurance costs. Remote work has increased this threat.

Competitive Rivalry

HIGH: Intense rivalry with Texas, Florida, Georgia for corporate relocations and talent. States compete fiercely on tax policy, incentives, and quality of life metrics.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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