When job figures were released earlier this summer for Lafayette Parish, the numbers were good. The 192,000-plus total jobs was the second-highest amount, dating back at least 10 years.
That number could continue to climb while the unemployment rate remains lower than most areas, said Jerry Prejean, Acadiana market president for First Horizon Bank. Prejean was chair last year of One Acadiana, the chamber of commerce for Lafayette and the leading economic development organization for the nine-parish Acadiana region.
“I think Lafayette is certainly handling itself well,” Prejean said. “I think things are going to get even better once you start seeing some of these bigger projects like First Solar come online. People are going to work in Iberia Parish but live and play in Lafayette Parish. Where we’re seeing lift is in a lot of manufacturing.”
In this week’s edition of Talking Business, Prejean talks more about the manufacturing sector’s growing presence in the region, the fluctuations in the real estate market and how he was raised by parents who never attended high school.
This interview was edited for clarity.
Manufacturing has been a hot area, but health care is still solid. Tell me a little more about the job activity.
Manufacturing is clicking on all cylinders. Health care is a huge employer for this area, and we’ve got the oil field that’s doing well again. It’s very cyclical, but all the timing is right, and I think that’s driving the unemployment numbers down.
What kind of industries are you seeing a lot of commercial loan activity of late?
We’re blessed to have construction be a big part of our success with equipment and financing. Not only manufacturing equipment but also plant expansion. We’re also proud of some of the work we’ve done with nonprofits like the University (of Louisiana at Lafayette) and the football stadium that’s been a big plus. But really health care, manufacturing and construction have been some of the big successes that we’ve seen.
What are you seeing in the real estate market? Is the consumer demand for newly built homes still strong despite higher interest rates?
People got accustomed to sub-3% interest rates on mortgage loans for a very long time. Even at a 6.5% or 7% interest rate, it’s still an attractive rate, but folks have really started to pull back. There’s still some demand for new construction. Refinancing is zero, basically, because no one wants to give up a 2.5% rate and jump into a 7.5% rate. I’m seeing a little bit more of looking at home equity lines of credit to do some basic improvements on houses.
The average sale price of a home in Lafayette Parish continues to climb like other areas around the country. It’s getting closer to $300,000. How much of a concern is that for you?
I’m concerned that when you factor in the cost of homeowner’s insurance on top of that. The whole insurance crisis is really a concern, and it’s especially if you’re south of I-10. Those are factored into your qualifying guidelines, and I just worry that single-income households may be priced out of the market. That’s maybe why you’re seeing a bunch of apartment complexes starting to pop up and rental subdivisions come into the market.
What are you seeing with consumer loans and other personal loans?
If you look at low unemployment rates and households having some really disposable income, that converts to personal loans, maybe loan consolidations and automobile loans. We’re seeing some activity on that front here in Lafayette. If you look at the stats from the auto dealerships, things seem to be going well. The other thing we look at is general delinquencies. Are people paying their bills? We’re not seeing any real issues on that front. It tells me that people are not overextending themselves yet.
You’re kind of known for your family history with parents who had limited education and were shaped by the Great Depression. What was life like for you growing up?
My dad had no formal education up until he went to World War II. My mom had an eighth grade education and grew up in the Tolson Road/Verot School Road area. She was fortunate there was an African American school there, but beyond eighth grade, it was the family’s responsibility to get their kids to Paul Breaux Elementary. The parish school system did not provide transportation for all the kids. But this allowed them to focus on education as a cornerstone for their kids. I’ve got two older brothers who are physicians. It really set a precedent of how important education was and how it has the ability to change the trajectory of a family.
Put on your One Acadiana cap for just a moment. What’s holding the region back? What are some of the obstacles out there?
We have the ability to get the attention of a lot of site selection folks that come in here. They love the culture and the food. I just think we need more businesses. We’ve had a lot of companies locally made that have recently sold to the next generation or to private equity. So a lot of the control of those businesses may be being managed out-of-market. I just think we need to replenish our stock of local businesses that are really wanting to provide jobs and opportunities for our local talent. I really do believe as we get some of these bigger projects up and running we’ll start seeing the fruits of our labor.