SWOT - Internal Strengths Weaknesses Page 1 of 5

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1 SWOT - Weaknesses Page 1 of 5 ECONOMIC DIVERSITY The economy is now more diversified amongst industry clusters. The region has several emerging regional "export" industries such as law firms with expertise in the oil and gas industry. ECONOMIC DIVERSITY some dependency on certain "legacy" industries persists (tourism, oil & gas and shipping). Building New Orleans' "export" specializations can have a positive impact on wages and economic diversity. INNOVATION & ENTREPRENEURSHIP The culture of innovation post Katrina has fueled an entrepreneurial renaissance in the region. Compared to Pre Katrina, the rate of entrepreneurship in the New Orleans Metro has increased 129%, and outpaces the national average. We need to understand this surge in entrepreneurship better in order to properly support entrepreneurs and keep the trend increasing. Industry Clusters TOURISM The City of New Orleans is a tourist destination for its food, culture, arts, and convention facilitation. TOURISM The industry has low wages, and seasonal fluctuations in employment. Many jobs in the tourism industry lack of benefits for employees. Most tourist activity occurs in Orleans Parish, but there are opportunities for neighboring parishes to build on this tourist traffic, especially in the field of eco tourism. MEDICAL DISTRICT A large investment in downtown New Orleans in the construction of a new VA hospital and a new state hospital will greatly enhance the quality MEDICAL DISTRICT Funding for the New Orleans of facilities, and expand medical services. Coordinated BioDistrict economic development organization has efforts to build on these new hospitals incorporate ceased. cancer research, BioInnovation, a MediFund to attract talent and specialized research and other initiatives located within the BioMedical District. The mission of the BioMedical District and management of the BioDistrict is currently being explored. This transition could mean that the district's development is better integrated into the City's economic development efforts. Assets PORTS The Mississippi River and the networks of ports facilitates international trade and puts New Orleans region on trade routes NATURAL RESOURCES Proximity to off shore oil shelf and all the drilling and processing activities occurring there. Also the region's commercial fishing industries and tourism take advantage of the regions unique waterways and wildlife. HIGHER EDUCATION The region hosts many institutions of higher education with excellent reputations and national recognition PORTS Increased competition likely as other ports across the country invest to prepare for Panamex; NATURAL RESOURCES While the natural resources provide job and investment opportunities, when not managed properly they contribute to coastal deterioration and make our region vulnerable. The Region is working to increase international trade and can build on exports to expand value added manufacturing on import/export commodities in the region The Energy Boom is coming (described below).ecotourism can be expanded. Resources for Wetlands Restoration could come from the carbon off set exchange markets. Establishing the New Orleans Regional Innovation HIGHER EDUCATION State funding for the region's Alliance (NORIA), a consortium of universities, industry educational institutions has been severely reduced and and economic development organizations will enable some schools are not yet back at pre Katrina enrollment the region to demonstrate scale of research, attract levels. investment, obtain research funding and prepare the workforce. Reputation Partnerships and Tools REPUTATION The region's rich arts and culture and historical nature have developed an international reputation EDOS The network of economic development organizations has expanded with the creation of the New Orleans Business Alliance. Significant alignment among EDOs at local, regional and state level is occurring. INCENTIVES Competitive State Wide Tax incentives have helped the region grow a burgeoning film production and digital arts industry. REPUTATION The region's reputation is tied to perceptions of the City of New Orleans which is known it's "Laissez les bon temps rouler" attitude and for having fun. Changing perceptions and improving the business perception of the New Orleans region is needed. EDOs There are many types of organizations working in economic development and workforce development each with their own approach and programs. Coordination is key to avoid duplication of efforts. Engaging in branding and promotional campaigns can help change the perceptions of the region within the nation and the world. Messaging New Orleans as a "knowledge town" with its collection of universities and as a "great place to live" highlighting our high quality of life will attract investments, businesses and people (the workforce). Regional organizations like GNO Inc. and the RPC work together on initiatives and together with the parish level EDOs. Greater collaboration and coordination can happen between workforce development initiatives and economic development organizations. Evaluating, maintaining and improving incentive packages can enhance the region's competitiveness and continue the diversification of the economy into new industries.

2 SWOT - Weaknesses Page 2 of 5 FREIGHT TRANSPORTATION Links to national transportation network of rail, road & water uniquely positions the region for logistics. FREIGHT TRANSPORTATION Inter modal freight planning and coordination is in its early stages. Coordinated freight planning can enhance the logistics industry and improve congestion. Infrastructure MOVING PEOPLE The region has improved pedestrian and bicycle safety and access with bike lanes extended into and connecting between parishes. MOVING PEOPLE Public transportation options are limited, especially outside of Orleans Parish. Inter parish transit and super regional transit are virtually nonexistent. Though roadway connections are improving, significant expansion is occurring along I12 corridor and more infrastructure is needed there. Congestion is increasing as commuting and settlement patterns shift within the region and "job sprawl" is occurring. MSY airport services consistently presents challenges to attracting new business to the market due to lack of direct flights and lack of international flights. Improving connections and increasing service of public transpiration systems will aid the regions workforce commuting. Encouraging alternative modes of transportation (e.g. bicycle) and employer specific transportation solutions can also improve congestion and address job sprawl. Attracting a direct flight to London from MSY can great increase the economic opportunities for the region by improving connectedness. LAND USE The region offers a variety of settings for economic activity; from large tracts for industrial development, suburban office parks, first ring suburbs, urban and rural main streets, and downtown/central business district, and neighborhood oriented retail. LAND USE Some areas in the region still suffer from high prevalence of blighted and abandoned buildings, some from hurricane Katrina damage, some from long term decline and population loss. Coordinated economic development and transportation planning along the I12 corridor can enhance the regions attractiveness and enable "smart" growth. POPULATION The population of the region continues DISPARITY Racial disparities persist, with education, to increase. Post Katrina recovery attracted many bright health, and employment outcomes for African and energetic people to the region, including many Americans trailing, sometimes significantly, behind the young people, changing some "brain drain" trends of white population. The Latino population is increasing the past and the trend continues as people are attracted throughout the region and are experiencing income to the high quality of life in the region. disparities as well. HOUSING Large investments in resorting and building the regions damaged housing post Katrina, especially in the City of New Orleans, has greatly improved the housing stock and stabilized the housing market during the Global Financial Crisis. HOUSING Insufficient availability of affordable housing is a challenge for many communities in the region and many households in the region are still housing cost burdened (paying more than 30% of their income in housing costs). Programs that improve minority education, access to jobs for minorities and encourage minority entrepreneurship and small business development can improve the economic outlook for minority households. More affordable housing, increasing housing options, and strategically locating housing development close to economic activity will improve the region's quality of life and aid the workforce in commuting and access to commercial services. Demographics POVERTY Urban poverty is declining. The highest percentage of the population in poverty is still in Orleans Parish, though that percentage remains steady, therefore the decline in the number persons living in poverty is likely due to the smaller population size of the City of New Orleans compared to previous decades. INCOME The Average annual wage in the New Orleans metro is increasing. POVERTY Suburban poverty is increasing, 56% of the region's poor now live in parishes of the region outside of the City of Orleans. WAGE RATES The average wage in the New Orleans Metro is declining slightly and lags behind the US average. Low wages also attract some businesses to the region. The coordination in planning and delivery of a variety of social support and human services programs is critical to addressing suburban poverty. The region needs to identify organizations that can do this, work with them to support and encourage more coordination and collaboration. The continued attraction of high skilled, high wage tech and professional industries will improve the average wage, and enabling the low skilled workforce to obtain higher skilled, higher wage jobs in the energy boom will increase take home pay for the region's families. EDUCATIONAL ATTAINMENT The region's population has higher rates of educational attainment than it had pre Katrina. K 12 EDUCATION There is a renaissance in the New Orleans K 12 school system that is unique and is at the cutting edge of education reform nationwide. This increasing trend towards charters schools is also found in other parishes in the region. EDUCATIONAL ATTAINMENT Low rates of adult literacy persist Workforce training and certification programs need to incorporate soft skills as well as basic literacy and numeracy training into their curriculum to help lowskilled individuals gain the full suite of skills they need to achieve and maintain employment. Many K 12 schools engage in STEM education initiatives and provide other exposure to employment opportunities and career paths to students, but many schools need to be educated about the careers available to students and in demand in the region.

3 SWOT - Weaknesses Page 3 of 5 GOVERNANCE Post Katrina improvements to governance and transparency have been enacted such as the instatement of an City of New Orleans Inspector General and reduction from 7 down to one assessor for the City of New Orleans. State level reforms toward greater transparency have also significantly improved the business climate state wide. CIVIC ENGAGEMENT Post Katrina the populace has been mobilized in the recovery and in planning the recovery of their communities. A proliferation of nonprofit organizations, advocacy groups, civic and neighborhood associations has increased the communities involvement in activities traditionally in Civil Society the public realm. CRIME Actual violent crime rates are declining in Orleans Parish. (get more from GNO Inc.) Continued work on policy initiatives by GNO Inc. and the local chambers and business councils can continue the trend of improved governance and transparency in the region making the region more attractive to businesses. Civic organizations, advocates and non profit organizations are new potential partners to achieve economic development and workforce development outcomes. Programs that address youth "disconnected" from CRIME The perception that crime is prevalent raises school and employment and other high quality youth significant safety concerns for prospective residents and development programs can reduce juvenile delinquency businesses. This is most true for Orleans Parish, but the and increase the economic productivity of young people perception of the City effects perceptions of the region. when they become adults. JUSTICE The State of Louisiana continues to have a very high rate of incarceration. Challenges with juvenile and criminal justice system efficiencies and capacity persist. In addition, the population with a criminal record is increasing and they are finding it persistently more difficult to find employment post prison. Workforce development programs that develop the skills of incarcerated individuals while still in prison and with ex offenders when they re enter society can prevent recidivism and improve the workforce. In addition, working with employers to reduce policies that establish barriers to employment post prison can reduce recidivism.

4 SWOT - Workforce Development Page 4 of 5 SWOT FOCUS ON WORKFORCE DEVELOPMENT Strength WIBS A regional collaborative model for coordinating local programs and operations is in place and continues to develop. EDO & WORKFOCE COLLABORATION the Louisiana Economic Development (LED), Louisiana Workforce Commission (LWC), the State's Technical & Community Colleges, and the local WIBS are coordinating to prepare the workforce for the energy boom jobs Weakness SYSTEMS Education and training systems are often disconnected leaving workforce development initiatives isolated and difficult to navigate for unemployed persons. SKILLS GAP There is a significant segment of the regional population that that lacks the skills and basic education to qualify for many of the available jobs. LOW WAGES New Orleans wages have fallen so far behind the US during the 1980s and1990s, the region is still playing catch up. As knowledge based industries began to grow in New Orleans, the metro enjoyed a 14% wage increase compared to just 2% in the US, yet in 2011, the New Orleans metro average wage was 6% lower than the US average. Opportunity ENERGY BOOM Expansion and construction of new industrial facilities to service the energy sector will create thousands of jobs accessible to low skilled workforce after obtaining trainings and certifications BABY BOOMER RETIRMENT SKILL DRAIN As the Baby Boom generation retires, their skills will be lost and their positions will become open. The local workforce needs to be trained and groomed to take over those high skill and leadership positions. RE EMPLOYING FISHERMAN Specific analysis on re employment opportunities for commercial fisherman is advancing in the region especially into the eco tourism and coastal restoration industries. MEDICAL DISTRICT with two new hospitals opening in downtown New Orleans, a number of healthcare related positions will be available and other jobs will be create by ancillary services to the hospitals. SKILLED CONSTRUCTION WORKFORCE Employment in heavy construction and engineering has doubled since 2004 due to post Katrina rebuilding activity and could represent the foundation for new economic transformations in the region. These industries require a highly skilled labor force, which if retained and developed, will be an asset for existing employers, a draw for outside investment, and a potential source of local innovation. OPPORTUNITY YOUTH Programs that address youth "disconnected" from school and employment and other high quality youth development programs can reduce juvenile delinquency and increase the economic productivity of young people when they become adults, by creating job connections and providing supports to youth for employment. EX OFFENDER TRAINING AND SUPPORTS Workforce development programs that develop the skills of incarcerated individuals while still in prison and with ex offenders when they re enter society can prevent recidivism and improve the workforce. In addition, working with employers to reduce policies that establish barriers to employment post prison can reduce recidivism and improve economic opportunity. EXPERIENTIAL EDUCATION Creating opportunities for students to connect with employers and explore career paths can improve graduation rates in programs like STEM, enhance the quality of the workforce by making students more employable, and supply the region's businesses with skilled labor. SOFT SKILLS, LITERACY AND NUMARCY Workforce training and certification programs need to incorporate soft skills as well as basic literacy and numeracy training into their curriculum to help low skilled individuals gain the full suite of skills they need to achieve and maintain employment. K 12 OUTREACH Many K 12 schools engage in STEM education initiatives and provide other exposure to employment opportunities and career paths to students, but many schools need to be educated about the careers available to students and in demand in the region. EMPLOYER SPECIFIC TRANSPORTATION With the region's existing job sprawl expected to continue and even expand geographically with the energy boom, transportation to work may be an issue for many low skilled workers. Employer based ride share or other congestion alleviation and alternative transportation initiatives could improve access to employment. Threat IMPORTING WORKERS If the region cannot prepare and train the local workforce to take the jobs in the energy boom, or those positions vacated by retiring baby boomers, companies will either not locate in the state or will import workers with the right experience from other places and locals will not share in the benefits of the increased economic activity.

5 SWOT External Opportunities Threats SWOT INFLUENCES ON THE REGION External Opportunities External Threats Opportunities that present themselves from outside the community; chances or occasions for regional improvement or progress WETLANDS RESTORATION As carbon emissions controls take effect in other parts of the nation and throughout the world, carbon absorption through wetlands restoration could place the New Orleans regional economy into the offsets market. External influences on or vulnerabilities of the region's economy; chances or occasioins for negative impacts on the region or regional decline SEA LEVEL RISE / LAND LOSS As sea levels rise around the globe and the natural wetlands that use to protect the Gulf Coast are eroding, the region is increasingly vulnerable to land loss. Sinking also threatens to increase already high risk of severe flooding and presents significant challenges for urban water management Page 5 of 5 FEDERAL POLICY MAIN STREET FAIRNESS ACT The region has a rich tradition of long standing local businesses, restaurants and cultural institutions. The Market Place Fairness Act may level the playing field for local retailers by requiring internet sales collect tax which would provide a boost to the region's small businesses, but could also create a complex administrative burden for the state and local governments collecting the sales tax. EXPORTABLE EXPERTISE The region has extensive experience in disaster response and recovery that can be put to use in other communities that experience a natural or manmade disaster. PERCEPTION & RECOGNITION National publications have featured New Orleans as a "boomtown". The 10th anniversary of Hurricane Katrina will be an opportunity to show and tell the world how the region has recovered and strengthened. Also, the 300th anniversary of the City will present a similar stage for communicating about the region. ENERGY BOOM The low cost of natural gas is increasing demand for Liquid Natural Gas (LNG)and demand for gas remains high increasing demand for refining and processing facilities for oil and LNG in addition the extraction process already occurring in the region. There are multiple large investments announced and planned in the region for the energy sector which present an opportunity for the local workforce. COMBINING ENERGY WITH TECHNOLOGY With the region's sizeable energy sector and the region's growing technology and innovation industry, there's an opportunity to combine the two functions to leverage the natural resources based economic boom ensure long lasting economic specialization. FEDERAL POLICY FLOOD INSURANCE & WETLANDS Changes to federal policies such as the National Flood Insurance Program (NFIP) to exponential increase flood insurance costs will devastate the regions homeowners and businesses. The Army Corp of Engineers implementing the Charleston Method establishing higher standards of Wetlands loss mitigation requirements greatly increase the cost of developing some portions of the region hampering growth. WEATHER RISK The region continues to be at risk of hurricanes. The high cost of insurance to protect against hurricanes increases the cost of doing business in the region. As does the risk of business interruption (and the cost of business interruption insurance) PERCEPTION The external perceptions of New Orleans as being a place with high crime and entrenched corruption negatively impacts the appeal of the region to outside businesses and employees who might locate in the region. FLUCUATIONS IN THE PRICE OF OIL AND LNG The region is rich in both oil and liquefied natural gas. The low cost of LNG is creating a boom in region with the expansion of LNG facilities. While the pricing of LNG is expected to remain low for decades, should the price of LNG rise or the cost of oil fall some existing dynamics in the region would be influenced. ECOLOGICAL VULNERABILITY as the oil spill in 2010 demonstrated, disruptions in the ecological health of the Gulf of Mexico and all of the region's water ways severely and directly impacts the region's economy. Continued drilling means continued risk of another ecological disaster. REPURPOSE OF FEDERAL FACILITIES The closure of programs at DECLINING FEDERAL EXPENDITURES The region has several federal NASA reduced activates at the Michoud Facility and the Navy facilities still functioning in the region, mainly military bases and closed the Avondale Shipyard. These assets are now more available installations. Additional or further cuts to these programs may to private sector activity and can be repurposed or redeployed effect local assets and employers. within the region's economy RETIRMENT DESTINATION The aging "Baby Boom" generation is retiring and will be looking for warm places to retire and/or have a second home. New Orleans, with it's great quality of life and unique culture are an ideal recipient for those looking to relocate. BRAIN GAIN Region is seeing a "brain gain" with lots of young professionals coming to the market. BRAIN DRAIN Before Katrina, the region experienced "brain drain" with many young people leaving the region for other places with more opportunities. Some of this leaking still occurs. The region must continue to improve its education systems and address crime in order to retain these people as they start having families OIL SPILL FUNDS The reparations from the 2010 Deep water Horizon oil spill and the RESTORE Act will bring funds to the region to repair damaged waters, communities and habitats. Strategic use of these resources could greatly benefit the region. RECOVERY RESOURCES UTILIZED Most of the resources available to the region for recovery have been utilized leaving very few federal funds and insufficient local funds for ongoing needs.