Our Views: GM layoffs wake-up call
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‘There was really nothing that Shreveport or the state could have done.”
That was Gov. Bobby Jindal, commenting on a decision by General Motors to lay off about 760 workers at its truck factory in Shreveport.
Although politicians rarely are that candid about the realities of the global economy, Jindal probably was right in his assessment of the limited local and state role in GM’s decision.
The car company’s move came after GM announced that its sales had dropped 16 percent for the first half of this year, mostly because of skyrocketing gasoline prices and a poor economy. GM is scaling back operations at other plants beyond Louisiana. This decision seems to be based on international economic conditions rather than Shreveport’s regional economic climate.
The governor said he would go to Detroit to meet with GM officials about possible state incentives to return the Shreveport installation to full employment. Stephen Moret, secretary of the Louisiana Department of Economic Development, said the state could support investment that would help the Shreveport plant convert to the production of more fuel-efficient cars. Under any circumstance, such a conversion would be a very complicated corporate decision.
Those options are worth considering, and the governor is prudent in pursuing them. But the news from GM underscores the degree to which Louisiana’s fortunes are increasingly tied to a global economy. No state official can completely shield residents from the shifts that are bound to occur in such a fluid economy. But such changes can be less painful when a region’s economy is diversified enough to offer meaningful alternatives to those who lose their jobs.
Shreveport Mayor Cedric Glover has been advancing development of his city’s film industry to help diversify the region’s economic base. Communities throughout Louisiana will have to think creatively to expand the range of employment choices for workers. Obviously, Louisiana’s large number of poorly educated residents will continue to present obstacles in such economic development.
Jindal and his economic development team have their work cut out for them, as evidenced by the governor’s recent series of town hall meetings in the north Louisiana communities of Dubach, Farmerville and Mer Rouge — areas where the farm economy is struggling, and too few alternatives exist.
Jindal can play an important role in expanding opportunities in those communities and throughout Louisiana, but the job is going to require leadership at many other levels, and it’s not going to happen overnight.
That was Gov. Bobby Jindal, commenting on a decision by General Motors to lay off about 760 workers at its truck factory in Shreveport.
Although politicians rarely are that candid about the realities of the global economy, Jindal probably was right in his assessment of the limited local and state role in GM’s decision.
The car company’s move came after GM announced that its sales had dropped 16 percent for the first half of this year, mostly because of skyrocketing gasoline prices and a poor economy. GM is scaling back operations at other plants beyond Louisiana. This decision seems to be based on international economic conditions rather than Shreveport’s regional economic climate.
The governor said he would go to Detroit to meet with GM officials about possible state incentives to return the Shreveport installation to full employment. Stephen Moret, secretary of the Louisiana Department of Economic Development, said the state could support investment that would help the Shreveport plant convert to the production of more fuel-efficient cars. Under any circumstance, such a conversion would be a very complicated corporate decision.
Those options are worth considering, and the governor is prudent in pursuing them. But the news from GM underscores the degree to which Louisiana’s fortunes are increasingly tied to a global economy. No state official can completely shield residents from the shifts that are bound to occur in such a fluid economy. But such changes can be less painful when a region’s economy is diversified enough to offer meaningful alternatives to those who lose their jobs.
Shreveport Mayor Cedric Glover has been advancing development of his city’s film industry to help diversify the region’s economic base. Communities throughout Louisiana will have to think creatively to expand the range of employment choices for workers. Obviously, Louisiana’s large number of poorly educated residents will continue to present obstacles in such economic development.
Jindal and his economic development team have their work cut out for them, as evidenced by the governor’s recent series of town hall meetings in the north Louisiana communities of Dubach, Farmerville and Mer Rouge — areas where the farm economy is struggling, and too few alternatives exist.
Jindal can play an important role in expanding opportunities in those communities and throughout Louisiana, but the job is going to require leadership at many other levels, and it’s not going to happen overnight.
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