Economic census could help regional business

Area experts contend the federal economic census should not be ignored. The U.S. Census Bureau will begin mailing forms to more than 4 million business owners across the nation beginning in October, as part of an economic survey it conducts every five years. Although some recipients might consider the collection of data of little value, others contend the results help local merchants, industrialists and communities.

“It is huge, not just for economic development, but for everything,” South Louisiana Economic Council CEO Vic Lafont said. “A lot of the formulas for funding infrastructure, housing or anything like that are based on economic census numbers.”

According to information provided by the Census Bureau, the economic census is a measure of American business and economic activity. It profiles more than 1,000 industries and 15,000 products in every state.

“The economic census provides comprehensive details about the United States economy,” the Census Bureau said in an informational document. Data is confidential but overall offers a geographic profile of business activity in various regions and cities.

Lafont said information gathered by the economic census plays into how Congress appropriates funds for infrastructure and offers statistical information businesses use when considering operational locations and marketing campaigns.

“”The better atmosphere we can create [by participating] the better that is for business,” Lafont said. “I’m talking about good roads to get in and out [and] access to shipments. Access to your business is as important globally as it is locally.”

Nicholls State University economics and finance professor John Lajaunie said the benefit of an economic census depends on what the reader of that report tries to get out of it.

“Basically, it tells you what your current industry profile looks like,.” Lajaunie said. “The problem is it is usually lagged so much by the time data comes out.”

The Nicholls professor said the time required to collect data, compile it, analyze it, organize it, fact-check it and ultimately report it can force many national reports to be available as much as two to five years following the time period that was targeted. He added, however, that lag time does not render the data useless.

“It doesn’t tell you about current conditions, but it does give you a look at trends,” Lajaunie said. “Anything that provides information for you to make decisions is good. If you participate you get a better picture of what the industry base is [and] you get a better picture of the employment base.”

“It also helps you define who you are,” Lafont said. “We are the Bayou Region. Anybody in the four parishes [Terrebonne, Lafourche, St. Mary and Assumption] can claim that home. If you are talking statistics and where businesses might want to locate you are going to look at what amenities [and resources are available in a given region]. What are the amenities that are going to attract me? That’s what the numbers look at.”

Lajaunie said economic census numbers offer a tool for comparative analysis. “I can build a model with it and say, ‘If X, Y and Z happens, this follows. It is useful. It is just dated.”

Lajaunie and Lafont agreed that the significant benefit of this report is it offers individual businesses a picture of their market, customer base, hiring pool exposed opportunities. It also provides a look into other areas where those business owners might consider expansion.

The 2012 economic census can be completed by hard copy or online. Businesses with more than one location will be able to download software with a spreadsheet to facilitate responses.

On this survey the Census Bureau is looking for the physical locations of businesses, the nature of the business, employment numbers, payroll and revenue by service and product.

U.S. Code Section 224, coupled with the Sentencing Reform Act of 1984, means failure to complete the economic census report could result in fines of up to $5,000. Documenting false information could carry a fine of up to $10,000.

Economic census reports must be filed by Feb. 12, 2013.