2
REGION Q1 2022
GNOINC.ORG
3
Contents
THE OFFICIAL PUBLICATION OF GREATER NEW ORLEANS, INC. Q1 2022/VOLUME 3/NUMBER 1
Greater New Orleans, Inc. President & CEO Michael Hecht Senior Vice President of Business Development Grady Fitzpatrick Chief of Staff Rachel Shields Vice President of Brand & Marketing Matt Wolfe Research Manager Harrison Crabtree Vice President of Advancement Sara Bradford Renaissance Publishing Editor Topher Danial Art Director Ali Sullivan Account Director Meggie Schmidt Production Manager Rosa Balaguer
6 Letter from the President 8 About Greater New Orleans, Inc. 10 By the Numbers 12 Calling all Creatives
How the region helps creatives transition into successful careers.
18 StartupNOLA
New website convenes the local startup scene.
22 Constitutional Amendment 2
Simplifying Louisiana’s tax code for the benefit of employers and employees.
24 Business Profile
Revelry Labs is helping the region build better business
Production Designer Meghan Rooney Chief Executive Officer Todd Matherne
26 In Conversation
Amanda Coates on the importance of mentoring and giving back.
29 Newsflash
1100 Poydras St., Suite 3475 New Orleans, LA 70163 (504) 527-6900 gnoinc.org
Delta Workforce Grant Program
31 Newsflash
El Guapo Bitters
32 Newsflash Intralox
Region is produced for Greater New Orleans, Inc. by Renaissance Publishing, LLC 110 Veterans Blvd., Suite 123 Metairie, LA 70005 (504) 828-1380 | Fax (504) 828-1385 myneworleans.com | bizneworleans.com
TO ADVERTISE
Contact Meggie Schmidt at (504) 830-7220 or email Meggie@myneworleans.com Copyright 2022 Region, GNO, Inc., and Renaissance Publishing, LLC. No part of this publication may be reproduced without consent of the publisher.
4
REGION Q1 2022
LETTER FROM THE PRESIDENT
W
elcome to 2022! Based on our results from last year, I am confident that our region is not only going to handle the uncertainty and challenges of the coming year, but that we are going to thrive. This issue of REGION focuses on creative professionals and entrepreneurship. These trending economic forces matter in Greater New Orleans, and we have demonstrated competitive advantage. For example, in the Technology and Digital Media sector, our region is not only one of the fastest-growing in America, we are also #4 for number of Women and AfricanAmericans, per capita, in these jobs—demonstrating “inclusive innovation.” And in entrepreneurship, New Orleans has grabbed the attention of the world, with billions of dollars of recent exits of startups including Lucid, SunPro Solar and Levelset. Of this cash generated by these sales, as much as $1B will be reinvested in the Greater New Orleans economy via employee equity and local investors, kickstarting a “fly-wheel” effect, wherein an entire cohort of new investors can now start new companies, fund new investments and support new philanthropy. Perhaps most importantly, coming out of COVID, Greater New Orleans now has an outstanding chance to attract and keep workers—who are more than ever first choosing where to work, and then for whom to work. Post-COVID, “Elephant Hunting”— trying to attract corporate headquarters and large relocations— has been supplemented (if not replaced) by a focus on building “Butterfly Gardens”—environments and amenities that will attract talented workers, who are now flitting between locations. While the declared “death of big cities” is premature, there is little doubt that some significant amount of remote work is here to stay. This presents a great opportunity for second- and third-tier cities that are not big enough to support a headquarters, but could be the perfect place for remote workers to live, work, play—and pay taxes. In the new economic reality, attracting people is how you attract business. There is an infrastructure implication to this, as cities trying to attract remote workers must have the right broadband, co-working space and other business amenities that people have come to expect. There is also a quality-of-life aspect to this, from entertainment to recreation to the basics, like public safety. Finally, there is a narrative element to this: When a worker is freed from the cost and confines of New York or San Francisco, which cities are in their “Places to Move” decision set? In 2022, it is time for our economic butterfly garden to bloom. Thank you for your support,
MICHAEL HECHT GNO, Inc. President & CEO
6
REGION Q1 2022
IN A RUSH? WE KNOW: we’ve got a lot to say. Skim through the big concepts by looking out for our GNO Highlights.
ABOUT GREATER NEW ORLEANS, INC.
RELATIONSHIPS. RELEVANCE. RESULTS.
G
reater New Orleans, Inc. (GNO, Inc.) is the economic development nonprofit for the 10-parish region of southeast Louisiana. GNO, Inc. is built on a simple but broad mission: To create a region with a thriving economy and excellent quality of life for everyone. The key is GNO, Inc.’s two-pronged approach to economic growth: by focusing on business development, the alliance aims to attract, retain and develop businesses that will employ our future workforce, propelling our economy forward and upward. This initiative is coupled with a concurrent nurturing of the business environment: by proposing, promoting and facilitating policies that improve conditions for business operations, GNO, Inc. ensures that businesses and corporate leaders are
positioned for long-lasting success. For GNO, Inc., it is not enough to simply serve the community: we must also be a part of it. Real influence and significant change starts from within, and the alliance’s presence in the community is evident and expanding. Working together with the business community, regional stakeholders and all levels of government allows GNO, Inc. to coordinate, consolidate and catalyze action on key issues and opportunities, effectively maximizing job and wealth creation and creating systemic impact. From workforce development and coastal stabilization to fiscal and criminal justice reform, GNO, Inc. is driven by results. It’s helping to create a robust and growing middle class and, in the process, ensuring our region’s continued prosperity.
10
PARISHES OF SOUTHEAST LOUISIANA
JEFFERSON ORLEANS PLAQUEMINES ST. BERNARD ST. CHARLES ST. JAMES
LOUISIANA STATE GOVERNMENT Louisiana Economic Development
FEDERAL GOVERNMENT
ST. JOHN THE BAPTIST ST. TAMMANY
PARISH ECONOMIC DEVELOPMENT ORGANIZATIONS
STAKEHOLDERS
Our Investors Parish Government
Jefferson Orleans
Colleges/ Universities
Plaquemines St. Bernard
Legislators
St. Charles
Business Community
St. James
Nonprofits
St. John the Baptist
Influencers
St. Tammany Tangipahoa Washington
8
REGION Q1 2022
MEDIA
PUBLIC
PROSPECTS
TANGIPAHOA WASHINGTON
BY THE NUMBERS
Greater New Orleans BY THE NUMBERS Q4 2021
An economic snapshot of Greater New Orleans’ 10-parish market EMPLOYMENT & ECONOMY STATISTICS
POPULATION
1,454,796 31% of Louisiana’s population resides in Greater New Orleans
EMPLOYMENT STATISTICS
$49,296
Metro Average Annual Wages SOURCE: U.S. BUREAU OF LABOR STATISTICS, Q1 2021
SECTOR OVERVIEW: TRANSPORTATION & LOGISTICS
SOURCE: U.S. CENSUS BUREAU, 2020
JOBS
26,646 AVERAGE SALARY
ECONOMY
$63,589
46,070
659,217
SOURCE: BUREAU OF LABOR STATISTICS,
SOURCE: U.S. BUREAU OF LABOR STATISTICS,
NOT SEASONALLY ADJUSTED, Q1 2021
NOT SEASONALLY ADJUSTED 8/21
Private Establishments
Civilian Labor Force
GDP
$2.9B SOURCE: EMSI
59,982
6.5%
SOURCE: EMSI OCT 2021 DATA
SOURCE: U.S. BUREAU OF LABOR STATISTICS,
Unique Job Postings
Regional Unemployment NOT SEASONALLY ADJUSTED 8/21
10
REGION Q1 2022
FAST FACTS: TRANSPORTATION & TRADE
TRADE
$17.8B
Value of Exports from the New Orleans Metro Area
ANNOUNCEMENTS RECENT ANNOUNCEMENTS Henley Ion Announces Technology To Protect Against COVID-19 Henley Ion, a New Orleans-based life sciences technology company developing next-generation innovations in medical devices, reports positive testing results of their device designed to provide respiratory protection without the use of conventional filtration. In initial testing with Henley’s first prototype at a high-containment laboratory located at the Tulane National Primate Research Center, the Henley Ion Virus Defender removed >99% of SARS-CoV-2 bioaerosols under rigorous Biosafety Level 3 testing conditions. Additional evaluations are ongoing at the Tulane facility under a cooperative research agreement between Henley Ion and the university.
#7
largest U.S. metro measured by value of exports SOURCE: U.S. CENSUS BUREAU;
COST OF LIVING & REAL ESTATE
OVERALL COST OF LIVING GNO Region: 99.3 U.S. Average: 100 SOURCE: EMSI
REAL ESTATE OFFICE Local Vacancy: 7.6% National Vacancy: 12.3% Local Rent: $19.59/ft2 National Rent: $34.00/ft2
U.S. EXPORTS BY METROPOLITAN AREA, 2021 Q1 & Q2
Local Inventory: 53M ft2 TRAFFIC
INDUSTRIAL Local Vacancy: 3.4% National Vacancy: 4.4%
Hours each year spent per person in traffic congestion
Local Rent: $7.90/ft2 National Rent: $9.60/ft2
That’s 20 hours less than the national average
Local Inventory: 81.4M ft2
SOURCE: INRIX TRAFFIC SCORE CARD, 2019
SOURCE: COSTAR 2021 Q4
79
RANKINGS RECENT RANKINGS Louisiana is #5 in USA for Growth in Digital Entrepreneurs —Amazon New Orleans is ranked #1 for Logistics and FTZ Imports —Business Facilities #1 State for Workforce Development/Talent Attraction (FastStart, 11th consecutive year) —Business Facilities Louisiana Earns “State of the Year” —Southern Business and Development New Orleans Has Youngest Entrepreneurs in USA —LendingTree New Orleans is the #4 Most Entrepreneurial Metro in USA —Cloud Kitchens
GNO, Inc.’s mission is to create a Greater New Orleans with a thriving economy and an excellent quality of life, for everyone. For more information about the market, or help with your business, please contact our Research and Business Development team: Harrison Crabtree Senior Associate, Research and Policy hcrabtree@gnoinc.org • 504.527.6987
Grady Fitzpatrick Senior Vice President of Business Development gfitzpatrick@gnoinc.org • 504.239.3525
*Due to data collection methods, previous GNO By the Numbers are not directly comparable
GNOINC.ORG
11
CREATIVE DIGITAL TRAINING
Calling All Creatives
How the Greater New Orleans region helps those with creative interests transition into actionable and successful careers. BY MISTY MILIOTO
W
hen you think of job opportunities in Greater New Orleans, you might think of booming sectors like tourism, hospitality and even technology—but when it comes to creative opportunities, the region is not typically seen as a hub where creative professionals can find success. Despite that common misconception, local creatives of all talents are fueling numerous regional industries and finding pathways to lucrative careers that lead far beyond Jackson Square.
12
REGION Q1 2022
For GNO, Inc. and other local economic development engines, the key is establishing opportunities that not only utilize creatives’ existing talents, but which also redefine the ways those skills can be used to advance any business within any industry. “The history of New Orleans is rooted in creativity with our architecture, food, music and art,” says Grady Fitzpatrick, senior vice president of business development at GNO, Inc. “Creatives want to experience our culture, and we want to make
CREATIVE DIGITAL TRAINING
sure it is not just for a visit. We want them to be able to put down roots, build a career and raise a family.” Fitzpatrick says GNO, Inc. frequently receives inquiries about opportunities in the region from creatives who aren’t aware of the multiple professional avenues available to them. He says this has led to a more orchestrated effort to publicize the region’s success stories and to build an economic identity around creative opportunities. With this goal in mind, GNO, Inc. also works closely with the region’s higher education institutions and nonprofit training providers to align their creative curriculum to the needs of local companies. “These talent pipelines then feed our companies and allow us to market ourselves as a creative hub where we have a strong talent base and growing companies,” Fitzpatrick says. “Companies and talent want to cluster together and be around like-minded companies. Creativity is one of our strengths, so we use that as part of the marketing pitch to outside companies to expand into our market.” Achieving this goal, Fitzpatrick says, doesn’t just serve creatives and the businesses that employ them—it also strengthens and builds resiliency within the regional economy. “Diversification becomes essential in a thriving economy,” Fitzpatrick says. “We witnessed this firsthand during COVID-19, when our hospitality sector completely shut down and oil prices dropped. This was a double blow that made it a more difficult recovery. On the flip side, we saw the video game sector explode due to the increase in demand for home entertainment. Louisiana and Greater New Orleans
Creative Digital Development Programs in Greater New Orleans
is positioned as one of the most costeffective locations for entertainment and creative industries. There are tax incentives that allow a business to lower operating costs and focus on growth.” As the need for creative content grows—including entertainment software, film, television and printed media—so too does the demand for professionals who are equipped to produce that content. GNO, Inc. is especially focused on growing the video game industry, as it touches many parts of the creative process from art and design to storytelling and software development. “Gaming is also one of the fastest growing industries in the world and should grow to be worth more than $250 billion by 2025,” Fitzpatrick says. “We have also focused on animation and visual effects. We have some great companies in this space, and we continue to look to attract more of them. The film shoots can be transient, but animation and visual effects are more permanent types of jobs that don’t need to be on location.” One such creative company based in New Orleans is inXile Entertainment. Producer Jeff Pellegrin, who is originally from Houma, earned a master’s of business administration degree from the University of New Orleans, moved away for work and then returned in 2016 to work for inXile. “I was working at Electronic Arts Quality Assurance in Baton Rouge, and I had been looking for a production job for a game studio that has a great reputation for finishing products,” Pellegrin says. “I heard a rumor inXile was coming to New Orleans, and I immediately sought out an opportunity. There weren’t
DIGITAL MEDIA INSTITUTE AT INTERTECH In 2021, this Shreveport-based institute announced its expansion into the Greater New Orleans area. Students at University of New Orleans, Nunez Community College and Northwestern State University will have unprecedented access to DMII’s one-year Animation, Visual Effects And Interactive Content program via online learning, setting them up for careers in film, television, video games and more.
IHUB The Innovation Hub, or iHub, at Southeastern Louisiana University was opened in 2021 in partnership with Louisiana Economic Development. The hub is described as a space for multidisciplinary students to convene and collaborate, and it is outfitted with technology that University President Dr. John L. Crain says can be interchanged according to the needs of a specific student or group.
OPERATION SPARK This local nonprofit introduces youth of all interests and skill sets to the mechanics of software development, effectively creating pathways to prosperity for low-opportunity individuals. Additional programs are focused on training the adult workforce in JavaScript and web development and teaching high school students the core concepts of computer programming.
GNOINC.ORG
13
CREATIVE DIGITAL TRAINING
many game development opportunities for producers, and I was fortunate that inXile had a window for one.” The company, which produces Xbox games such as “Wasteland 3” (which currently has 2 million players), is known for creating top-notch player experiences. The company received assistance from several local offices to make its operations successful, including GNO, Inc., Louisiana Economic Development and the New Orleans Business Alliance. Local higher education institutions also offer creative programs—such as the Game Development program at the University of New Orleans, Operation
14
REGION Q1 2022
Spark, SoPA at Tulane University and iHub at Southeastern Louisiana University—that help build a skilled workforce. “We have hired several folks who attended those programs, and we have some employees who assist and teach those programs,” Pellegrin says. “However, we get candidates who want to live in New Orleans for the quality of life that it provides. Having creative industries in New Orleans adds to the culture of the city and also brings new job opportunities and a diverse workforce that will greatly benefit the Greater New Orleans region.” For Pellegrin, the move back to New
Orleans to work in the creative sector has proven to be the right choice. “Since I have been with inXile, I was able to marry, buy a house and have two children, and be part of the growing digital media community in the Greater New Orleans region,” he says. “I used to live on the West Coast pursuing my career, and I wouldn’t imagine doing those life milestones while there.” Yet another creative company that has made its home in New Orleans is Kinemagic—a fully immersive virtual reality solution for the heavy industrial industry. The company’s software, dubbed Stratus, allows clients to remove design flaws before
CREATIVE DIGITAL TRAINING
construction begins. “Stratus allows customers to root out those ‘gotchas’ before big dollars are spent in construction,” says Kinemagic’s Founder and CEO, Brian Lozes. “It’s much cheaper to fix a drawing than it is to rip out steel and concrete to install version 2.0.” Lozes, who is originally from River Ridge, started the company in 2017 after working for heavy industrial companies and seeing firsthand the extra money needed to correct design problems during the construction process. He says the reason for the problem mostly relates to a
Creative Digital Development Programs in Greater New Orleans stakeholder’s inability to see a facility at life-sized proportions before it’s built—something a little creative legwork upfront can help to avoid. “We’ve solved that problem with Stratus, which gives our customers the superpower of seeing, walking, collaborating on and testing their future and existing facilities at human proportions using immersive VR technology from anywhere, anytime without travel,” he says. “This capability helps heavy industrial operators eliminate those future cost overruns. And, it offers
SOPA AT TULANE UNIVERSITY The School of Professional Advancement, also known as SoPA, offers specifically tailored courses for working adults to build on their education. Among the school’s creative offerings are a Bachelor’s in Digital Design and Post-Baccalaureate Certificates in Graphic and Interactive Design.
UNIVERSITY OF NEW ORLEANS Students of the Game Development concentration at UNO are trained in core concepts including graphics, physics, game design, artificial intelligence and audio. They also have the opportunity to participate in research with the university’s Narrative Intelligence Lab. In March 2022, UNO will host its second Xbox Game Studios Game Camp.
GNOINC.ORG
15
CREATIVE DIGITAL TRAINING
additional benefits like reduced travelrelated carbon emissions and enhanced training capacity. The entire process, which used to take months to develop for one facility, is fully automated and available within minutes. With just a few clicks, our users can meet on their facility with stakeholders from across the globe to make those critical decisions.” Lozes says that his team has incredible creative professionals who are building software that solves these problems, sometimes by drawing on principles gleaned from unexpected arenas. “They work together to invent solutions, flexing their strength in communal knowledge and problemsolving,” he says. “It starts with having a culture that encourages discussion around fresh ideas. Our software is heavily influenced by gaming, so it’s pretty often that we see some technique or concept that is done well in gaming that would also translate into our
16
REGION Q1 2022
software. The other side of the equation is leaving room to be nimble in the development roadmap.” Lozes chose to start Kinemagic in New Orleans because of its robust local workforce and access to heavy industrial facilities along the river. “We definitely have a ‘seeing firsthand is believing’ sort of technology, so proximity was key to our start,” he says. “Also, I’ve always thought the New Orleans workforce was particularly special. We take a lot of pride in our work. We take commitment to a vision and company seriously. Other cities have reputations for rapid job hopping for incremental gain. Our workforce leans in and deeply vets a company for long-term opportunity over short-term gain. You can build an amazing culture around that.” Lozes also has hired a number of graduates from the University of New Orleans’ gaming program. In fact, his
first-ever hire came straight out of the program. “They develop incredible local talent,” he says. “We hope these programs continue to expand to meet the demand from the growing startup scene here.” Another part of Kinemagic’s success, according to Lozes, has been its participation with locally based Idea Village—a nonprofit organization that supports regional startups. “It connected us with people who have been successful in similar arenas to help us see our blind spots and prepare for scale,” he says. “When you’re looking to scale, funding also comes into question. Idea Village connected us to key funding opportunities as well. This combination multiplies our growth opportunity. I think it’s important for the Greater New Orleans area to secure its future by luring in creative industries, thinkers and funding groups to build a sustainable economy.”
STARTUPNOLA
StartupNOLA
New website serves as a directory for anyone hoping to join local startup scene BY SUZANNE PFEFFERLE TAFUR
D
espite the resources available to entrepreneurs and the recent emergence of venture capital firms, the local startup community was still missing something—a central hub where professionals could access that wealth of information in one easy-to-use location. “If you were someone with a good idea, maybe a UNO student, for example, and said, ‘Hey, I’ve got a startup idea I’ve been thinking about,’ there was really no single point of contact to help you get started,” says Grady Fitzpatrick, the senior vice president of business development for GNO, Inc. “There was a lot of ‘Talk to this person; talk to that person; and a little bit of a relationship type-adventure that you’d have to partake in.” To make the process feel less like a scavenger hunt, GNO, Inc. launched StartupNOLA — a website that serves as a
18
REGION Q1 2022
directory for anyone seeking information on the region’s startup scene. The all-encompassing guide is geared towards entrepreneurs, investors and future employees living in Greater New Orleans, and beyond. A website devoted to the city’s growing startup community proves there is more to New Orleans than simple stereotypes, such as parties on Bourbon Street, says Fitzpatrick. Jon Atkinson, the CEO of The Idea Village, also sees the significance of such a site. “Having a central resource to help founders navigate the local startup community will make our community stronger, by enabling people focused on building innovative companies to more efficiently find each other, and the resources they need to launch and scale,” Atkinson says. “It will also help showcase the depth of the startup movement in New Orleans and serve as a critical front door for those looking
STARTUPNOLA
StartupNOLA’s interactive ecosystem map allows startups to explore their industry’s existing footprint.
to enter or specialize. To build on the incredible momentum of 2021 for startups in New Orleans, we need better tools to increase local talent velocity, help investors find deals, and help the next generation to launch and thrive in the Greater New Orleans region.” In March of 2021, Fitzpatrick and his team began the process of bringing StartupNOLA to life. They collaborated with Trumpet Advertising, which is based in New Orleans, and designed a “slick, brochure-type site” aimed at potential startup founders, investors and employees. The founder may be a local university student on the brink of graduating, or a professional with a clever concept they would like to explore and build upon, Fitzpatrick explains. Meanwhile, investors are the individuals who believe the concept will take off and benefit all involved. Addressing potential investors from coast to coast is important, says Fitzpatrick, because although the local investment community may understand the region’s market, outside investors are likely less familiar with it. “This will be an opportunity for them to learn about some of the up-and-coming companies and resources, and learn the
success stories,” Fitzpatrick says. “They can feel comfortable researching this market and potentially investing in this market.” The third group, future employees, are people who want to work for a startup. Perhaps they have experience helping a nascent company scale —whether by serving as a chief technology officer, working in sales or focusing on project management. “There are a lot of folks interested in being a part of startups,” Fitzpatrick says. “We want to let them explore the market and understand not only what specific jobs there are, but what are some of those growing companies that might need their knowledge and expertise.” The website is streamlined to avoid information overload, says Fitzpatrick. The relevant information, which depends on the person, is easy to find. “When you go to the site, it will lead you down the pathway of, ‘I want to invest in New Orleans; I want to start a company; or I want to work for a startup,” he says. “Those are the entry points into the site.” StartupNOLA.com features an “ecosystem map,” which
GNOINC.ORG
19
STARTUPNOLA
Fitzpatrick describes as the backbone of the website—or “the Yellow Pages for entrepreneurship in New Orleans and the New Orleans region,” if you will. Site visitors can click the ecosystem map to search for consultants, co-working spaces, support services, government agencies and software developers, among other professionals and places who play roles in the startup scene. The information on the map is applicable to founders, investors and workers. The “work for a startup” section connects to workNOLA.com, which lists available jobs, and highlights a variety of local industries—from tech and manufacturing to health and life sciences. GNO, Inc. will consistently update the website with exciting business announcements, such as a company selling for a billion dollars, and other types of news-you-can-use. A staff member, whose contact information will appear the website, will serve as a “concierge and the connector within the ecosystem,” says Fitzpatrick. The concierge will offer that founder, investor or worker an opportunity to understand the market on a deeper level and will also save them time. At the end of the day, Fitzpatrick hopes StartupNOLA makes it easier for people who are not plugged into the startup community to learn about the resources available to them, do the initial research and create connections, rather than rely on several meetings. “Obviously, the relationships and the meetings are still going to happen, but this website can help streamline some of that,” Fitzpatrick says. During the COVID-19 pandemic, Fitzpatrick and his team recognized the importance of the startup ecosystem, possibly more than they ever had. Those businesses are responsi-
20
REGION Q1 2022
ble for growing the local economy, but the acquisitions that have happened during that timeframe also play a big role, he explains. “We’re hoping that the money that’s flown into the economy from these acquisitions will really jumpstart the ecosystem even more,” Fitzpatrick says. “This site will be a nice complement to a lot of the activity that’s happening.” Rob Lalka, the executive director of the Albert Lepage Center for Entrepreneurship and Innovation at Tulane University, acknowledges that New Orleans’ startup ecosystem remains far behind the leading hotspots like Silicon Valley, Boston and New York. Emerging entrepreneurial cities like Raleigh, Durham, Miami and Nashville have also outpaced the city, he says —but he adds that there is good reason to be optimistic. “I would never bet against New Orleans,” says Lalka. “Why am I hopeful? Well, follow the facts. We have gone beyond the overly idealistic cheer-
leading and the glossy, self-satisfied marketing efforts of the past. From Lucid to Levelset to Sunpro Solar, we’ve seen billions of dollars in exits by homegrown, venture-backed companies in the past year alone. We’re experiencing significant increases in venture capital coming to our region last year, too, according to data gathered by the Lepage Center for the GNO Startup Report.” When taking these positive trends into account, StartupNOLA will become more than just a website, says Lalka. “We are hoping it can serve as a one-stop-shop with information for entrepreneurs thinking about relocating here, top talent hoping to work for one of our growing companies, and investors hoping to become part of these ventures’ future success,” he says. “It’s a great time for innovators throughout the Greater New Orleans region, and StartupNOLA is a wonderful new resource that can help us all make the most of this moment.”
CONSTITUTIONAL AMENDMENT 2
Constitutional Amendment 2
Simplifying Louisiana’s tax code for the benefit of employers and employees. BY WILLIAM KALEC
L 22
ouisiana State Constitutional Amendment 2, a measure approved in November, stands to make the New Orleans metropolitan area—and as a result, all of Louisiana—a more attractive destination for businesses to relocate or expand and for out-of-state workers to pur-
REGION Q1 2022
sue new opportunities in the region. Authored by State Sen. R. L. Bret Allain II,the green-lit amendment eliminates the federal tax deduction and reduces the individual income tax rates across brackets, with a top rate of 4.25%. “One of the issues that Louisiana has that very few states
CONSTITUTIONAL AMENDMENT 2
have is that they allow a deduction for federal taxes paid, which lessens your state tax liability,” says Janelle Cammenga, Policy Analyst with the Tax Foundation in Washington D.C. “In theory, that’s a nice thing to do for taxpayers, but in practicality, it turns the state tax code into an inverse mirror of the federal tax code. “Therefore, anything that the federal government wants to favor—for instance, the Child Tax Credit—those incentives will penalize people on the state level,” Cammenga continues. “And then, because of those fluctuations from taxpayer to taxpayer, it makes state revenue really volatile and hard to plan for, since state taxes are tied so closely with the federal government’s tax actions.” In the past five years, Louisiana has consistently ranked in the Bottom 10 in the Tax Foundation’s State Business Tax Climate Index — an objective tool that factors in several variables in determining the simplicity and user-friendly nature of tax codes. Cammenga says the passing of Constitutional Amendment No. 2 will go a long way in bumping Louisiana up those rankings. “It’s Income Tax, it’s Franchise Tax,
it’s Inventory Tax—there’s a whole list of types of taxes that are complicated and very different from what you’ll find in other states,” says Ileana Ledet, Senior VP of Policy at GNO, Inc. “From an economic development standpoint, we don’t want it to be more challenging to run a business, operate a business, or just work (in Louisiana).” So what does this “simple” tax change mean for citizens of Louisiana across various income brackets? Upon the passing of Constitutional Amendment No. 2, the Tax Foundation outlined scenarios for various types of earners. From a macro perspective, the new tax code slightly lessens the tax liability for roughly 90 percent of income earners. For instance, a worker making between $49,000 and $80,000 annually who files single and doesn’t have children will see his or her state income tax dip by 17 percent (roughly $240 in savings on the low end and $470 on the high end). A married couple with two children with a combined household income of $100,000 will see very little change in their state tax liability (savings of less than $20 annually). The same is true for low income, single filers, who will see savings of less than $20 annually.
“When you considered that 6 percent, and you just looked at that 6 percent without considering the federal deductions, on the surface it made working and doing business in Louisiana look more expensive than it actually was,” Ledet says. “What this amendment does is provide a more honest representation of what our income taxes are. “It’s more straight-forward,” Ledet continues. “And with so many workers being more mobile, and with remote workdays becoming mainstream in the past two years because of COVID, people are paying more attention to things like state income tax. ‘How far will my paycheck go here compared to there? ‘From a competitive standpoint, seeing that lower rate makes working in Louisiana more attractive.” These new tax reforms also offer relief for existing Louisiana businesses by lessening the Corporation Franchise Tax (which is levied on a company’s net worth, not revenue) and Corporate Income Tax Rates. Instead of the current system’s five-tiered Corporate Income Tax Rates, the system outlined in Constitutional Amendment 2 reduces it to three tiers, the highest being 7.5 percent, slightly less than that 8 percent applied to corporations with $200,000 or more in taxable income. “In Louisiana, this kind of change has been a really long time coming,” Cammenga says. “There have been conversations for years and years about tax reform, and I think it finally sunk in to the state legislators that, ‘Hey, this is an issue that hurts making our state a competitive destination for businesses and workers, and it’s time to do something about it.’”
REVELRY LABS
Software and Startups Revelry Labs is helping the region build better business BY DYLAN HAWKINS
O
ver the past ten years, companies like Accruent and DXC Technology have demonstrated that existing tech companies can successfully expand and scale their operations in Greater New Orleans, but the recent big-dollar exits of local startups like Lucid and Levelset prove that the region is also a powerful incubator for homegrown innovation. Revelry Labs is one such native tech company that’s seeing explosive growth and expanding its reach and services—as well as
24
REGION Q1 2022
offering other companies the resources they need to transform big ideas into powerful operations. Founded in 2012, Revelry is a digital development firm specializing in design, engineering and technical business support. Revelry’s mission is to help businesses refine (or even redefine) their processes with thoughtful platform technology that allows them to achieve their maximum potential. The award-winning technology and innovation studio boasts a staff of nearly 50 engineers, designers and product experts, and they’ve built an inventory of programs
dubbed the Innovation Stack that allows quick and immediate customization for client-specific software. And it all started with CEO and founder Gerard Ramos believing in the region’s potential to become the next great tech hub. Ramos says that when he chose to launch his company in New Orleans, many of his investor peers were skeptical of the decision to move into South Louisiana rather than a major market like Los Angeles, New York or Austin. Ramos, who had left New Orleans in 2005 after Hurricane Katrina, was excited
REVELRY LABS to return to his hometown and was willing to take his chances in the growing startup landscape. Those chances, he says, ultimately yielded tremendous benefits both for Revelry and the wider business community. “In the beginning, we were hired guns bringing software engineering expertise to clients,” Ramos says. “Eventually, we expanded into full-stack delivery with product and design services. Nine years later, we’ve played a significant role in filling both talent and capital gaps in our region. From 2013 to 2016, we experienced significant growth, 1,156%, landing at #375 on the Inc. 5000 list of fastest-growing companies in the US. We’ve since more than doubled.” For Revelry, contributing to a robust business marketplace isn’t just about the success of their own software engineering services. Another major facet is the Startup Studio, a one-stop shop that assists budding ventures at every stage of business development, from transforming an idea into a sustainable business model to organizing finances and seamlessly entering a company’s chosen market. “We focus on problems rather than ideas,” says Ramos of the studio, which uses a rigorous feasibility analysis so that the best, most viable opportunities emerge, having been significantly de-risked. To date, Revelry has already built custom software for more than 100 new companies.
Their portfolio includes Gilded, a developer of ERP software solutions for businesses to integrate digital assets into their finance, HR and accounting functions; Fillogic, which aims to transform the physical retail ecosystem by optimizing labor costs; and ROAM, a tech-enabled RV campground. Additionally, Revelry actively invests capital in early-stage founders through the Venture Partners prong of its business model. In conjunction with the Startup Studio, their seed-stage VC fund assists the
next generation of category disruptors with what Ramos says is one of the most difficult aspects of starting a business while serving as a bridge to established ecosystems like Silicon Valley. “We invest in startup founders before their ideas are obvious. We provide teams with a platform of technology and product development resources so they can bring products to market quickly. We connect those founders to talent and capital to help scale into the next leg of the journey.” And this support isn’t limited to just funding. Through their managed apprenticeship program, Ramos says they aim to “bridge the gap between education, boot camps, and the workforce” by providing new engineers, designers and product managers hands-on experience. Ramos says that when it comes to the local tech industry, the successes of regional companies like Lucid, Levelset and Turbosquid are wins for the entire business community. These history-making advancements are just further evidence that setting up shop in Greater New Orleans is more reward than risk. “Many of these companies were founded by friends of ours, who like us, made a bet on New Orleans,” Ramos says. “There will be many more to come that Revelry will be here to support, invest and build alongside every step of the way. Our mission is to unleash human potential.”
GNOINC.ORG
25
PERSONAL PROFILE
In Conversation with Amanda Coates The Commercial Manager of Imports for the Port of New Orleans shares her professional journey and the importance of being a mentor
Q: Tell us about yourself. How did you get started on your career path? I grew up where most people vacation, in Pensacola, Florida, have been a Louisiana resident for nearly 20 years, and for the last decade have been a resident of St. Bernard Parish, along with supportive husband and teenage daughter. My husband enables me to continue following every dream I have and keeps me grounded in times of need. With my almost 14-year-old daughter, Amaya, life truly has no boring moments. She is a clone of my assertive personality and brings new perspectives daily that both challenge and inspire me. As the Commercial Manager at the Port of New Orleans, my focus is providing supply chain solutions, finding opportunities that translates to new cargo and using my background in logistics to tie the maritime industry together with economic development for the purpose of attracting distribution centers. My career path really started by chance. While beginning my studies in the medical field, I applied for an administrative role at a shipping company to work between classes during the week. At that moment, it was only meant to be a temporary position until finishing school. Unbeknownst to me, stars were aligning for my journey in the transportation and logistics industry with the world’s number one ocean carrier, Mediterranean Shipping Company, or most well-known as MSC. At the time, health science was a breeze and seemed like a fulfilling career path. After a class mandated animal dissection, I quickly realized the lack of true interest or tolerance. More often than not, I reflected on my choices and began to reevaluate. Simultaneously, I worked my
26
REGION Q1 2022
way through several departments that focused on the operational aspects of global trade, transportation and logistics. Over the course of nearly 15 years, I navigated my way through five critical operational departments and one heavily customer focused position, and I eventually landed a role in sales. Three and a half years ago, I eagerly pursued the opportunity to join the commercial team at the Port of New Orleans, which checked all the boxes both personally and professionally. My role at the Port enables me to face new challenges, celebrate both large and small victories, and broaden my horizons in transportation, while deepening roots in my community. Personally, I enjoy being a mentor, making critical connections and networking that accomplish both personal and professional goals.
PERSONAL PROFILE
Q: The Port of New Orleans is a major economic engine in our region. What is a typical day like as Commercial Manager of Imports? There really is no typical day, which is one of the many enjoyable attributes of the Commercial Manager of Imports position. Days can vary from working with a local start-up company trying to import a product, to working with a company like Folgers to optimize their supply chain. In the morning, I might be taking a deep dive into data and analyzing trade flows, and by lunch time, I could be taking an import customer, along with an economic development group, on a port tour to understand what goes on behind the scenes. By the late afternoon, I could be participating in a strategy session for an upcoming customer event, or even sketching out an amateur graphic design to present visual insight into the Port’s capabilities and connections for a LinkedIn post. With the changes the pandemic brought, we are naturally doing less travel and working on innovative ways to engage both existing and potential customers while continuing to grow synergies across the state. It is gratifying to hold such a position that ultimately fulfills many aspects of my personality, collectively with my broad range of talent, while working with a dynamic team of professionals. Q: You maintain involvement with several economic development organizations in your hometown of St. Bernard Parish, as well at GNO, Inc.’s NextGen council. Why is it important for you to be part of these conversations? Economic development is a critical component that drives sustainable growth in our economy and most importantly improves our quality of life. Aligning and maintaining synergies with state, regional and local economic development organizations supports the Port’s mission to drive economic prosperity throughout our entire three-parish jurisdiction, and supports my personal mission to bring
new opportunities that will provide a unique insight to the maritime industry within my own community. Being a part of these organizations, as well as NextGen Council, allows collaboration with local business partners and stakeholders on overcoming challenges, as well as economic opportunities to promote above-average salaried jobs for St. Bernard Parish, the region and the state. Having the unique insight as a St. Bernard resident, as well as a success story in the maritime industry, allows me to be an advocate for both. Connecting businesses across our maritime industry with community members provide a better understanding of the opportunities ahead and the alignment to sustain Louisiana’s logistics industry. Q: What are some of your proudest accomplishments throughout your career? Looking back over the course of my career, the proudest accomplishment is really being a part of positively influencing someone else’s life. By mentoring younger generations to fulfill their own dreams while they intentionally drive passion and perseverance is a true testimony of the “push from the bottom, pull from the top” approach to anyone’s career path. I pay tribute as often as possible to the many mentors that guided me in my career path and had an impact, which ultimately improved the quality of my own life. Today, I am tremendously honored to be one of the many faces representing the Port of New Orleans. In the long run, it was my dream job, and I am so appreciative to be one of the few people in life that actually wake up every day and love what they do. It’s exceptionally fulfilling and makes Mondays a little easier. Q: Have there been any obstacles you look back on as particularly challenging, and how did you overcome them? In the past, an obstacle that was challenging for me was letting go of
perfectionism. With experience, I have learned that there is only a certain level of perfectionism that is healthy and too much can really discourage creativity and progression. Q: What is the best piece of advice you could offer to professionals in the Greater New Orleans region right now? Find your passion and follow it fiercely. If you can’t find it, create it. Be a walking billboard everywhere you go, which means representing the best version of yourself while keeping your vision in mind. Lastly, but most importantly, grow your network where you see yourself ahead. Strategically seek mentors and networks that align with your personal and professional objectives. When you reach the moment in your career where you find complacency, return the favor by being a mentor and advocate for others. Q: Is there any goal or initiative you’re looking forward to in the new year, either personally or professionally? As many others do at the beginning of a new year, I reflect on the year closing and map out the year ahead by setting intentions, creating a vision and working towards those one day at a time. This year is off to an exciting start. I am already seeing 2022 as a year of growth, opportunity and momentum both personally and professionally. Professionally, I look forward to taking every challenge and turning it into an opportunity for success. Personally, I have a renewed sense of enthusiasm, direction and motivation to see what this year has in store as my family and I embark on the beginning of many new chapters ahead. My daughter starts high school at the end of this year, my husband and I both are taking on new responsibilities in our positions, so we are looking forward to smashing our goals, enjoying travel together and making the most of it.
GNOINC.ORG
27
28
REGION Q1 2022
NEWSFLASH
Two New Orleans-based organizations were among 10 projects selected by Delta Regional Authority for funding through the Delta Workforce Grant Program. GNO, Inc. Development Foundation and New Orleans Technical Education Provider each received a $200,000 grant. GNO, Inc. Development Foundation is working in collaboration with the Louisiana Parole Board and Orleans Parish Office of Workforce Development for Project Rebirth, which will support unmet hiring needs while also providing a second chance through a stable career pathway for re-entry talent. Partners will work together to build awareness, action and employer engagement specifically focused on three sectors experiencing talent shortages: construction, healthcare and manufacturing.
GNOINC.ORG
29
30
REGION Q1 2022
NEWSFLASH
In December 2021, Christa Cotton, CEO of El Guapo Bitters, announced that the company secured $1.1 million in seed funding, which will allow for increased production and raised visibility for its portfolio of cocktail products. This milestone comes on the heels of recent news that the company is building America’s first bitters brewery on Gravier Street in New Orleans. The company has doubled its workforce since early 2020 and will be making 12 additional hires in 2022. El Guapo has also partnered with regional farmers to keep money in the local economy, producing products made with Louisiana strawberries, satsumas, pecans, chicory and more.
GNOINC.ORG
31
NEWSFLASH
Gov. John Bel Edwards and Intralox President Edel Blanks announced the company is investing $60 million to expand its Hammond manufacturing facility. The investment will more than double the facility’s current footprint, adding 300,000 square feet to the 130,000 square-foot building. With the expansion, the company will create 425 direct new jobs, increasing average annual payroll by $10 million. The expansion is set to be complete by the end of 2022 and will increase the Hammond facility’s belting output by 50 percent. The jobs created with the expansion will include nontechnical, technical and engineering roles.
32
REGION Q1 2022