American DBE Magazine Power Player: Blackstar Diversified Enterprises Powers Ahead

Blackstar Diversified Enterprises Powers Ahead

Hugh Blackwell saw the writing on the wall. The writing said maximizing his potential and controlling his destiny would require creating his own company. By this time he had built a solid career in the electrical distribution industry working for major corporations and come to realize his vision surpassed the internal politics and bureaucracy of a large organization, and his next step required the autonomy of striking out on his own.

Blackwell launched Blackstar Diversified Enterprises, LLC (BDE) in 2016 committed to creating his own entrepreneurial story and following in the footsteps of his father and stepfather, who were business owners as well. The company name is derived from Marcus Garvey, a historical figure famous for incorporating the Black Star Line in 1919 with the commitment to building economic empowerment and self-determination for people of African descent. BDE is a minority-owned, small business-certified electrical distribution and traffic

control systems integrator that conducts business in Maryland, Washington, D.C. (and the surrounding metro area), Virginia, Louisiana, Texas and Mississippi. The company provides sales and services for the electrical distribution and traffic safety and control industries. Blackwell founded the company in the Metropolitan Washington D.C. area but moved its headquarters to the New Orleans, Louisiana area in 2018. BDE operates a manufacturing facility in New Orleans where the company fabricates, assembles, and prepares the equipment for its clients.

Blackstar Diversified vice president of sales Chad Risher and Principal Officer Hugh Blackwell take a selfie on a job site. (Photo courtesy of Blackstar Diversified Enterprises)

Powering Up

Blackwell launched BDE after transitioning from another small company. His former employer was in the process of moving out of the highly competitive electrical distribution supply industry sector. This move allowed Blackwell to maintain some of his existing clients without the concern of a non-compete agreement. Although these relationships gave BDE the start it needed, Blackwell also knew this business segment was not the most profitable in the industry. “It was the low-hanging fruit, and it is low-hanging for a reason. It’s difficult, entails working with difficult customers and requires a significant amount of engineering, project management and customer care,” Blackwell said.

However, the initial clients allowed BDE to survive the early years in business and begin to expand its customer base to build a stable operation, positioned to grow in the future. Blackwell knew that growing the business would depend on finding innovative ways to meet customer needs to distinguish the company from other competitors. In this effort, he drew inspiration from two other black innovators in the electrical area – Lewis Latimer and Granville T. Woods. Latimer’s many inventions included an improved process for manufacturing carbon filaments for light bulbs, and Woods’ inventions included creating the Synchronous Multiplex Railway Telegraph which allowed communications between train stations from moving trains. “When I think of these two black history figures I remember a quote that said inventions come from a long line of innovation, and I keep that in mind as we look at ways of serving our customers,” Blackwell said.

V.P. Chad Risher (left) and Principal Officer Hugh Blackwell stand in front of a 14,000 sq. ft. warehouse purchased by the company in 2020. (Photo courtesy of Blackstar Diversified Enterprises)

Growth and Expansion

BDE continues to expand its list of industrial and government clients and continues to look for new markets that align with the company’s capabilities. This innovative approach paid off when Operations Manager Chad Risher attended a conference sponsored by the American Traffic Safety Services Association (ATTSA) and learned about opportunities to supply traffic controls and safety equipment on transportation projects. Blackwell and his team followed up on this opportunity and subsequently won its first contracts to supply traffic signaling and safety equipment to clients like the Virginia Department of Transportation for the Hampton Roads Bridge-Tunnel Project; and the Louisiana Department of Transportation and Development.

BDE gained exposure to the Hampton Roads Connector Partners project team while supplying twelve skidded electrical transformers to a major subcontractor on the project. After delivering the transformers with excellent timeliness and quality, the company received another opportunity to bid on supplying traffic barriers to help divert and manage traffic during the project’s construction.

Hampton Roads Connector Partners DBE Program Manager Malcolm Kates praised BDE for their performance on the project and said, “BDE has been reliable, resourceful, and professional on the project. They have been great to work with.” Blackwell strives to make sure all BDE customers have the same experience with the company. “Professionalism is one thing we can completely control. We may not be the biggest or have the best systems, but we can be professional, be on time, be responsive to our customers’ needs, and fix problems when they arise,” Blackwell said.

Much of the company’s growth comes from building strong relationships with its customers and carving out a niche that distinguishes BDE from competitors. Blackwell believes this approach is extremely important in Louisiana due to the market’s smaller size compared to the Metro D.C. area. “We’ve had to spend time getting to know people here in Louisiana. That is important here, but once you get to know people, it’s a pretty clear path to success, as long as you work hard and bring your hard hat and lunch pail to work every day,” Blackwell said. This approach is working as BDE has grown its customer base to include working on major projects for Greater New Orleans, Inc., Sewerage and Water Board of New Orleans, New Orleans DPW, Jefferson Parish DPW, and several other local and state government agencies.

Blackstar Diversified Enterprises Principal Officer Hugh Blackwell

Creating a Thriving Enterprise

As BDE continues to build its reputation and experience with major clients, the company is increasing its ability to add value by growing its project integration and project management services. These services expand the company’s innovative expertise in finding new solutions to complex issues in the electric distribution and traffic controls and safety industries. It also allows the company to provide a one-stop shop for its client’s needs, which is more important as the company grows with its customer base to projects across the country and around the world.

Blackwell sees greater potential for the company to expand into the renewable energy market on wind-related projects, and into the hydrogen fuel industry. He also sees an opportunity to expand BDE’s current products and services to clients in different industries. “For instance, we can look at a product that Back River Wastewater Treatment Plant uses in its operation and utilize this knowledge to provide equipment for a similar application at a naval base in Norfolk, Virginia,” Blackwell said.

Blackwell attributes his business success to the values his mother instilled in him during his youth. He remembers his early days of mowing grass for his neighbors and his mother never allowing him to give anything less than his best effort. He said, “I get my work ethic from her. I was taught to stand by my work and to never cut corners. Now, sometimes this can be burdensome, but it’s me. That’s how I want to be remembered by those that I work alongside.”

A Blackstar employee services electrical equipment on a client job site. (Photo courtesy of Blackstar Diversified Enterprises)