Rebuilding Business Infrastructure in Metro New Orleans Is a Monumental Task
Until three weeks ago, the Crescent City was home to 31,000 businesses employing over half a million people.
Westerly, RI (PRWEB) September 21, 2005
Devonshire Associates Ltd., a leading supplier of econometric and demographic information products, today released exclusive data that reveals the monumental scale of the effort required to help New Orleans businesses overcome the effects of Hurricane Katrina.
Prior to the storm, metropolitan New Orleans - which includes the cities of Kenner and Metarie, as well as the regions just north and east of Lake Ponchartrain – was home to 31,240 businesses that employed 539,295 people. Of those, 5,181 were retail establishments employing 70,625 people. Another 2,510 businesses in the foodservice industry employed 49,996 people. Together, the greater New Orleans retail and foodservice sectors accounted for nearly $17 billion in annual sales. Since most of these establishments can be expected to have operated in one-story ground-floor facilities, widespread structural damage, equipment and inventory loss – with a resulting loss of revenue and employment – is virtually certain.
"Much of the national focus has been on rebuilding public infrastructure – roads and bridges – and private residences," said John Rafferty, president and CEO of Devonshire. "Our data shows that New Orleans was home to an extremely diverse and robust consumer economy that will require additional tens of billions to restore. And, of course, the impact on wages and salaries still can’t be gauged."
Reinforcing the notion of New Orleans as an already poor community, Rafferty noted that while New Orleans is the 40th largest metropolitan area in the country, it ranks 272nd in median household income. The single greatest private employment sector is healthcare and social assistance services (77,529 employees in 3,289 establishments), followed by retail, foodservice and manufacturing (40,912 employees in 924 establishments).
For elaboration or more information about Devonshire, contact Mark Gordon at 401.348.6600. You can also visit the companyÂ’s web site at www. devonline. com. A company backgrounder is attached, along with DevonshireÂ’s MetroBuy Report for the New Orleans-Metarie-Kenner metropolitan area. This information is also available online at http://www. devonline. com/nolabiz. pdf (http://www. devonline. com/nolabiz. pdf).
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