Region Q2 2021 by Renaissance Publishing

REGION Q2 2021

GNOINC.ORG

Contents

THE OFFICIAL PUBLICATION OF GREATER NEW ORLEANS, INC. Q2 2021/VOLUME 2/NUMBER 2

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 Balfer Art Director Ali Sullivan Account Executive Meggie Schmidt

6 Letter from the President Prospering as one region

8 About Greater New Orleans, Inc. 10 By the Numbers 12 Rooted in Greater New Orleans

Local companies conduct business on a global scale

16 Businesses Built to Last

22 IMTT Doubles Down

MeetA fixture in the bulk liquid storage industry for 80 years

Chief Executive Officer Todd Matherne

24 Success Behind the Scenes

For professional service experts in the region, prosperity is a team effort

26 In Conversation with Economic Development Leaders

1100 Poydras St., Suite 3475 New Orleans, LA 70163 (504) 527-6900 gnoinc.org

Three regional business development experts discuss the state of their respective parishes

How contractors in GNO create efficient workspaces

29 Photo Gallery

20 The Business of Bites

31 Newsflash Palmisano

Greater New Orleans is a rapidly growing hub for food manufacturing

Production Designers Rosa Balaguer Meghan Rooney

32 Newsflash Breeze Airways

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

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Contact Meggie Schmidt at (504) 830-7220 or email Meggie@myneworleans.com Copyright 2021 Region, GNO, Inc., and Renaissance Publishing, LLC. No part of this publication may be reproduced without consent of the publisher.

REGION Q2 2021

LETTER FROM THE PRESIDENT

elcome to REGION, the official magazine of Greater New Orleans, Inc. Here at GNO, Inc., our Business Development efforts fall in three areas: • Attraction of new businesses to Greater New Orleans • Support for existing businesses in Greater New Orleans • Support for entrepreneurship

This issue focuses on #2, support for the growth of existing GNO business, or “Business Retention and Expansion (BRE).” Why is BRE important? Because existing businesses in Greater New Orleans have the deepest connections, the greatest loyalty, and the highest economic development ROI of all prospects. Existing business want to succeed here, and are simply looking for support to do so. Unfortunately, it can be easy to take indigenous businesses for granted, but here at GNO, Inc., we never do so – we love and respect the “home team!” With this context in mind, this issue of REGION will profile: • Local companies doing global business • The booming commercial construction industry • The fast-growing, “on-theme” food manufacturing industry • An introduction to GNO’s professional services sector • A conversation with our regional economic development organizations on their approach to BRE • News on Breeze Airways and Palmisano’s expansion A heartfelt thanks to all of our GNO companies – we appreciate y’all being the foundation and future of our economy!

MICHAEL HECHT GNO, Inc. President & CEO

IN A RUSH? WE KNOW: we’ve got a lot to say. Skim through the big concepts by looking out for our GNO Highlights.

REGION Q2 2021

ABOUT GREATER NEW ORLEANS, INC.

RELATIONSHIPS. RELEVANCE. RESULTS.

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.

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

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MEDIA

PUBLIC

PROSPECTS

TANGIPAHOA WASHINGTON

BY THE NUMBERS

Greater New Orleans BY THE NUMBERS Q2 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

$53,456

Metro Average Annual Wages SOURCE: U.S. BUREAU OF LABOR STATISTICS, Q42020

SOURCE: U.S. CENSUS BUREAU, 2020

SECTOR OVERVIEW: ADVANCED MANUFACTURING JOBS

17,123 ECONOMY

AVERAGE SALARY

45,868

652,288

SOURCE: BUREAU OF LABOR STATISTICS,

SOURCE: U.S. BUREAU OF LABOR STATISTICS,

NOT SEASONALLY ADJUSTED, Q4 2020

NOT SEASONALLY ADJUSTED 3/21

Private Establishments

Civilian Labor Force

7.5%

Regional Unemployment

53,149

6.0%

SOURCE: EMSI MAY 2021 DATA

SOURCE: BUREAU OF LABOR STATISTICS, NOT SEASON-

Unique Job Postings

National Unemployment ALLY ADJUSTED, 3/21

REGION Q2 2021

$75,412 GDP

$3.2B SOURCE: EMSI

FAST FACTS: TRANSPORTATION & TRADE

TRADE

$31B

Value of Exports from the New Orleans Metro Area

ANNOUNCEMENTS RECENT ANNOUNCEMENTS Breeze Airways Startup Airline announces New Orleans Airport will serves as a hub TCG Process Technology company announces New Orleans as their headquarters location International-Matex Tank Terminals Bulk-liquids handling and storage company, will retain and expand its headquarters in New Orleans, resulting in a $1.3 million capital investment and 42 new direct jobs ElementUS A joint venture of DADA and Enervoxa, will make an $800 million capital investment to extract rare earth elements in St. James Parish

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: 98.9 U.S. Average: 100 SOURCE: EMSI

REAL ESTATE OFFICE Local Vacancy: 8.7% National Vacancy: 12.3% Local Rent: $19.11/ft2 National Rent: $34.20/ft2

U.S. EXPORTS BY METROPOLITAN AREA, 2020

Local Inventory: 52.6M ft2 TRAFFIC

INDUSTRIAL Local Vacancy: 3.9% National Vacancy: 5.3%

Hours each year spent per person in traffic congestion

Local Rent: $7.60/ft2 National Rent: $9.20/ft2

That’s 20 hours less than the national average

Local Inventory: 81.4M ft2

SOURCE: INRIX TRAFFIC SCORE CARD, 2019

SOURCE: COSTAR

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

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HEADQUARTERED IN GNO

Rooted in Greater New Orleans Local companies conduct business on a global scale BY SUZANNE PFEFFERLE TAFUR

or Otis Tucker, Jr., a fourth-generation New Orleanian, the Crescent City is as much a part of his identity as it is his home. But that’s not the only reason he felt this region was the best place to launch and grow his company, Trucking Innovation. Tucker launched Trucking Innovation in 2013 as a trucking logistics and transportation firm, but it evolved to provide government contracting services all over Southeast Louisiana and east Texas. They pay 20 “w-2 employees and a host of 1099 independent contractors” for their work, Tucker says.

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“New Orleans supports startups while they grow and emerge,” Tucker says, explaining how the city backs small businesses as they evolve into major companies that, on several occasions, have become known on an international level. Grady Fitzpatrick, the senior vice president of business development at GNO, Inc., believes Greater New Orleans is poised to become an established option for more company headquarters. “We offer lower business costs than more traditional markets,” Fitzpatrick says. “Our real estate offerings for corporate headquarters are also affordable and diverse. Companies have

options in our downtown office corridors, as well as suburban office parks and buildings, all with lease rates way below our competitor markets.” He notes that the region also boasts a talented workforce and 13 higher education institutions that offer customized training for regional employers. “Our talent has also proven to be extremely dedicated and loyal to their employers,” Fitzpatrick. “Employee retention is a key concern for companies looking to expand or enter a new market.” Fitzpatrick says the city is the right fit for companies working to establish a brand identity in the country, while associating themselves with a diverse region. Like Trucking Innovation, Intralox was established in New Orleans. But they’ve been letting the good times roll – quite literally for – 50 years. Intralox offers conveyance solutions to food processors, manufacturers and e-commerce companies. It all began when founder J.M. Lapeyre searched for a way to safely deliver shrimp to the automatic peeler he invented, while eliminating the maintenance and downtime of traditional conveyor belting, and – as a result – invented the first modular plastic conveyor belt. The company now boasts 1,500 international patents, rendering technologies that enhance food safety and power logistics, and solve challenges for customers. Intralox is still based in the Greater New Orleans region, with headquarters in Harahan and Hammond, but the company employs more than 2,500 team members around the world. Its 60,000 customers span over 100 countries. “We are a global company, and we have assembly operations all over the world,” says Karyn Kearney, Intralox’s director of corporate communications and external affairs. Intralox produces and assembles modular belting and accessories in Louisiana, and they ship those products to their assembly facilities in China, the Netherlands, Brazil, Japan, India, Australia, and the United Kingdom.

IDEAL INFRASTRUCTURE

“The transportation infrastructure that Greater New Orleans offers is important,” says Kearney. “The Port of New Orleans is the only container port in the state of Louisiana provides us with the transportation infrastructure to ship our products all over the world.” Fitzpatrick points out that New Orleans sits in the center of the country, with easy access to both east and west coast markets. “The central time zone also plays to our strengths, as companies can easily communicate with both coasts within normal business hours,” Fitzpatrick says. He notes that the new MSY airport, with its abundance of topnotch retail shops and restaurants, provides a first-class experience for visitors and sets the stage for more direct flights to New Orleans. The connectivity creates efficient travel for executives as they move from one place to another, conducting business. Louisiana’s interstates, highways and portals further support the infrastructure, says Tucker, noting that they also provide access to a growing pool of truck drivers. Kearney points out that real estate and the cost of industrial space on the Northshore and the Southshore is also ideal. “That provides us with opportunities to expand our footprint as our business grows. And our business is growing very rapidly,” she says. “Having the ability to expand our business, and the footprint to support that growth, is important.”

Aerial view of the Interstate 10 junction with Highway 90

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MAKING MONEY

Louisiana, and New Orleans in particular, offers tax incentives to entrepreneurs interested in running a business in the state. Tucker was recently awarded a new markets tax credit that allows him access to capital to restructure his debt loans and additional capital. “That allowed me to give raises and invest in capital projects,” he says. “It improves the quality of my personal life as well as the business.” Employee benefits, education and paid training positions for students give a boost to the local workforce. Laitram, the parent company of Intralox, has participated in the Louisiana Quality Jobs Program for more than 10 years. It has been a helpful incentive that provides a wage rebate for net new employees, as well as a sales tax refund on qualifying expansions, says Kearney. She also highlights how Intralox works closely with a network of regional technical colleges and universities on collaborative technical programs, such as the mechatronics program. This two-year program pays students for their work on jobsites, provides employee benefits and serves as a gateway to well-paying careers in the manufacturing industry. Intralox also sources talent from higher education centers. “New Orleans is one of the most attractive metro areas for relocation,” Kearney says. “And we recruit a lot of talent to our headquarters in the New Orleans area. Being in a city that’s attractive to those recruits is very important to our business.”

The busy Port of New Orleans, located just outside of downtown along the Mississippi River

REGION Q2 2021

QUALITY OF LIFE

A thriving culture and quality of life have become key elements in the site selection process for new and expanding companies, says Fitzpatrick. “Employees are eager to live in a region that has a diverse workforce and a plethora of lifestyle options,” he says. “Greater New Orleans will never be considered boring, and that works to our advantage.” Tucker cites the ability to walk, or easily bike, from place to place as a plus to living in New Orleans. “The infrastructure is improving to support that pedestrian traffic,” he notes. “New Orleans is a destination for many,” Tucker says. “So when (prospective employees) come down here and see the culture, they see opportunities. Some consider returning permanently to live and work.” New Orleans-based Intralox employees comprise individuals who are born and bred in the region, as well as talent that the company recruited from elsewhere. “New Orleans appeals to recruits that are interested in joining our company,” Kearney says. “The culture and the history offer them a really interesting place to live and work.” ROUNDING OUT THE REGION

Economic development isn’t a oneway street. Companies that establish their headquarters in Greater New Orleans help the region grow and foster an even stronger business climate. “The jobs at a headquarters operation are usually high-paying and offer a diverse set of job types – accounting, finance, HR, sales and other office

functions,” says Fitzpatrick. “The decision-makers are also located in the headquarters office. They have a commitment to the local market and ensuring their region provides a strong quality of life for their employees.” Fitzpatrick says a company’s philanthropic practices will largely benefit its home city, as they have a “vested interest in their community and will deploy philanthropic funds to key non-profits in the region.” Additionally, philanthropic decisions are easier to make in a company’s headquarter city, as donations don’t have to be run by executives in “an out-of-market office without the local relationships.” Existing headquarters in the Greater New Orleans region have already done a lot to validate the local market and attract new companies, but even still, Fitzpatrick believes a true economic hub will always be on the lookout for ways to expand the region’s appeal to companies establishing or relocating headquarters. One look at GNO, Inc.’s attraction and retention website, Destination GNO, shows a robust infrastructure for many quality-of-life factors executives consider in the decision-making process, including diverse housing and school options and a reliable network of employers. “We have to pay close attention to our quality of life and make sure we have the services and amenities that our citizens expect and deserve,” Fitzpatrick says. “When you compete to retain and attract headquarters, you are competing with almost any market in the country. We have to be diligent in continuing to provide a pro-business environment with an excellent quality of life.”

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DEVELOPMENT

Businesses Built to Last

How contractors in GNO create efficient workspaces BY FRITZ ESKER

very great business needs a great building. Whether it’s an office, a hotel, a restaurant, or a school, it takes a lot of work to turn a business’s needs into a reality. Planning, budgeting, securing materials, subcontracting labor, and the actual physical work of construction are all crucial parts of the process—which is why construction companies across the Greater New Orleans region work hard to create ideal spaces in a timely and cost-efficient manner. So, how do local contractors approach a new project? For starters, construction is an intensely collaborative process. It involves, at minimum, the business owners, the designer and the contractor, so local experts say the best results

REGION Q2 2021

usually happen when all participants are brought on board at the same time, ensuring a unified vision from the start. “Different parties have different perspectives, needs and resources, even among stakeholders of the same company,” says Lauren Gibbs, CEO of Gibbs Construction. For that reason, Gibbs says that once a team has been assembled, the most important step is to learn about a client’s hopes for their project. What are the must-haves? What are they willing to be flexible on, if needed? How can the musthaves be achieved in a way that doesn’t break the bank? “We want to understand what the most important parts of their vision are and incorporate them into the project,” Gibbs says. Bryan Hodnett, VP for Business Development at Donahue

The South Market District Woodward recently completed the 5th phase of this new neighborhood, The Odeon, standing 30 stories tall. Its New Orleans’ first new skyscraper in 30 years! Photo by Neil Alexander

Favret, says it’s important to be both transparent and solution-oriented every step of the way, ensuring there are no unpleasant surprises for the client. Hodnett says he and his team are always willing to show owners the bids they’ve received on various parts of the project as designed. When owners have wishes that go beyond their budget, Hodnett says a contractor shouldn’t just dismiss the idea entirely: instead, they should try to offer an alternative that could achieve the same purpose at a lesser cost. Ken Flower, president of Woodward Design + Build, agrees that a good contractor should always offer options to their clients if the initial plan will cost the owner too much money. He also says they provide as much information as possible about various aspects of the project: price, timeframe, functionality and long-term durability. “If they have an idea, we work tirelessly to try to figure out how to make it happen,” Flower says. Achieving a client’s vision within their budget is the top priority, which is another reason Flower says it’s important to have a complete and unified team before any decisions are made. Late additions to the team, he says, can lead to headaches all around, as the owner may have fallen in love with an architect’s design without realizing it will cost more than they can afford. If the project has to be redesigned to fit the budget, that will cause significant delays and disappointment for the owners. “Redesigning is a waste of a client’s time, resources and money,” Flower says. “We’re not the type of contractor who just sits back and waits.” Nick Moldaner, market leader for Pal-

misano LLC, also advocated for constant communication between all involved parties from the start. “When an architect says XYZ, it may satisfy the owner, but without cost, materials and labor factored in, it’s all in a vacuum,” Moldaner says. When all parties are working together from the start, it is important that the communication is honest, constructive and productive. If that happens, and if you know everyone’s goals from the start, there’s a much lower likelihood of misunderstandings and conflict. In turn, there’s a much higher chance of creating a product that everyone can be proud of. “It’s got to be a project-first mentality,” Moldander says. “Find out everyone’s goals, and leave your ego at the door.” Of course, a contractor’s cost concerns are not limited to building. Flower says it’s important to ask questions the client might not have even considered. For instance, sometimes an owner might not be aware of how much maintenance will cost if mechanical, electrical and plumbing systems are installed a certain way. Some systems might be cheaper to install, but pricier to maintain, while others might cost more upfront, but are more durable and cheaper to maintain long-term. Flower says contractors should always educate clients on how much any part of the building will cost upfront and what the regular maintenance costs will be. Additionally, Gibbs says knowledge of the local market is one area where contractors provide a lot of assistance to clients—and is another reason they should be involved in the process early. A good contractor won’t just know what the costs of labor and materials are: they will know about the availability of labor and materials in the area, too. Building in New Orleans also requires durability. Constructing a building that is built to last in New Orleans is an aspect that local contractors must actively consider throughout design and construction. Gibbs says local contractors are trained to focus on keeping water out of buildings in areas known for hurricanes and severe thunderstorms,

WHAT’S THE MOST REWARDING PART OF THE JOB?

Anne Teague Landis, CEO of Landis Construction: Working together with the project owner, architect, consultants and subcontractors, as well as community stakeholders, to improve outcomes for everyone is so motivating. We see this on projects where values are aligned, and everyone is looking out for each other’s best interests, not just their own.

Ken Flower, President of Woodward Design & Build: I really love trying to figure out projects for clients. I enjoy handing the building over to them and coming back a year later to see how it’s going.

Lauren Gibbs, CEO of Gibbs Construction: Seeing the finished product. Driving down the street and being able to proudly say, ‘We built that.’

Bryan Hodnett, VP of Business Development for Donahue Favret: I truly enjoy whenever an owner has an idea as a sketch on the back of a napkin and we’re able to see it through to the ribbon cutting.

Nick Moldaner, Market Leader for Palmisano: If you’re a people person, this is a great business… The jobs change, but the one thing that’s consistent is being able to get a win for your clients through collaboration and teamwork.

GNOINC.ORG

Top: Ochsner Benson Cancer Center Expansion project in progress. A view of the Mississippi River while crews work in the foreground. Photo by Mike Palumbo. Bottom: Globalstar Headquarters by Greenleaf Lawson Architects and DonahueFavret Contractors, Inc. Photo by GYV Media.

both of which can lead to additional expenses. Effectively meeting the needs of a business, she says, requires both good design and good quality control. “Buildings are long-term investments for the community,” Gibbs says. “We’re always going to advocate for a durable building.” These complexities may seem intimidating, but Greater New Orleans is home to a community of efficient and professional contractors who are ready to help clients navigate the construction process. With their knowledge, skill and expertise, they’re giving businesses all the tools they need to successfully establish and scale their operations for years to come.

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FOOD MANUFACTURING

The Business of Bites Greater New Orleans is a rapidly growing hub for food manufacturing BY SUZANNE PFEFFERLE TAFUR

t’s a fact known around the world: New Orleans boasts exceptional cuisine. But innovators in the food and beverage industry have found other ways to capitalize on that common knowledge, and over the years, breweries, distilleries and food brands have emerged throughout the region. Not only have the owners linked their name to the Big Easy, but they’ve also created their products right here before distributing them nationwide, and they’ve buoyed the local economy in the process. Brass Roots, a New Orleans-based healthy snacks brand, is one recent example.

REGION Q2 2021

Company founder Aaron Gailmor moved to the city in 2015 to be with the native New Orleanian who is now his wife. “I fell in love with the city, and we decided we would stay here and raise a family,” Gailmor says. At the time, he was in the process of developing Brass Roots. Established in 2019, the company creates tasty bites built around the sacha inchi seed—“a healthier, allergen-free version of a peanut.” The name Brass Roots alludes to the company’s grass roots origins, and the lively brass bands that permeate New Orleans culture, Gailmor explains. “I decided at that point to commit to New Orleans as our head-

quarters city. I thought we could build a brand where we not only sold products, but helped the community through our brand,” he says, explaining how the company collaborates with local organizations, like Youth Run NOLA and Covenant house. Gailmor also felt that since so few companies touting nutritious fare existed in the New Orleans area, Brass Roots would stand out as a big fish in a small sea. He was right. Brass Roots—now a team of six employees—began selling products online only in 2020. But today their merchandise is sold in more than 400 stores across the U.S. The company brings in seven figures in annualized sales, says Gailmor. SHARING THE SUCCESS

Gailmor is helping similar businesses flourish through New Orleans Food and Beverage (NOFAB), a network he created after moving to the Deep South from New York City, where “an abundance of industry groups” work together. “I thought, ‘It seems like we should have a food and beverage group that gets everybody together on a periodic basis, and allows us to help each other out by sharing best practices and sharing resources,’” Gailmor says. “If we have some of our members become successful, we’ll help bring our other companies in the New Orleans area along, and help them all succeed.” The growing, 200-member group alerts other members about job openings, available warehouse space and distributor information. During meetings, guest speakers from around the country share success stories and offer advice. But the group’s ultimate goal is to create more jobs in the food and beverage sector — including professional positions, such as marketing consultants and operations specialists. Over the past few years, Gailmor has witnessed contract manufacturers and packaging companies emerge, and he believes NOFAB helped make it happen. “I can’t take full credit,” he says. “But I would say it’s partly a result of our work.”

Through its signature workforce program, nical Community College. “We said, ‘We GNOu, GNO, Inc. created the Mechatronics want to create this program. We have the Apprenticeship Training Program. The idea employer partners on board.’ They came for this program began about three years back to us and said, ‘We want to work on ago when Elmer Chocolate, which is based this together, as three schools, and leverin Ponchatoula, addressed GNO, Inc. about age all of our assets to create this program.’ its need for a mechatronics technician. And so with that we were able to create the “At first, we had no idea what that meant,” program pretty fast.” says Josh Tatum, who runs GNOu. “We had The two-year program is made possible by to do our research.” a Department of Labor – Delta Regional AuMechatronics is a branch of engineering thority grant. Employer partners also contribthat integrates robotics, electrical engi- ute by paying each apprentice’s tuition and neering, computer science, telecommuni- books, and by providing them with a $10 an cations and mechanical engineering. hour stipend when they are both on the job “If you’ve ever looked inside a factory, and in the classroom. Employers also offer you see all these robots that people say are the participants full-time employee benefits. taking our jobs,” Tatum explained. “Well, The program’s first cohort will graduate there needs to be people that know how to in July. work on those robots. And so you’re really “The Greater New Orleans region has creating an opportunity for people to con- a unique value proposition for attracting tinue their skills and learning, to work and businesses and growing businesses, beoperate these robots.” cause we’re cultivating talent here in the After realizing other food manufacturers region,” says Tatum. were making investments in similar types Through his work with NOFAB, Gailmor of equipment—and that they too would has also noticed new talent emerge. need mechatronic technicians—GNO, Inc. “We are adding jobs, because we’re givbegan looking for training providers. ing people the ability to stay here and keep “We decided that with their operations here,” says this program, there is an opGailmor, underscoring that portunity to work with our companies are still successcommunity colleges, here in fully exporting products Brass Roots founder Aaron Gailmor with the region,” Tatum says, reoutside Louisiana. “We take students from the Roots calling how he reached out income in and keep that inof Music after a lesson on pickling vegetables to Delgado Community Colcome within our state. And as part of the company’s lege, Nunez Community Colwe pay people to work within community work with local youth organizations. lege, and Northshore Techour state from that income.”

MORE TO COME

While helping NOFAB expand, GNO, Inc. has simultaneously fostered a new wave of talent within the regional food and beverage industry.

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COMPANY PROFILE

IMTT Doubles Down A fixture in the bulk liquid storage industry for 80 years, IMTT re-established its commitment to the region with its decision to stay and expand headquarters. BY WILLIAM KALEC

rom humble beginnings as a single storage-tank entity based in Avondale (a tank that remains active to this day), InternationalMatex Tank Terminals (IMTT) has blossomed into an industry force when it comes to storage and handling of bulk liquid projects. “At a really high level, we’re like a self-storage locker where we handle the movement of products,” IMTT Chief Financial Officer Matthew Rosenbloom says.

REGION Q2 2021

“We don’t own any of the products inside. Product is brought in via marine, rail or truckline, and we offload it from whatever vessel it’s on, put it in our tanks, and then take it out of our tanks and export it.” Founded in 1939 by James J. Coleman Sr., IMTT now has 19 total terminals throughout North America. Roughly half of all stored liquid is some form of refined petroleum— gasoline, diesel fuel, jet fuel—while the rest is a combination of chemicals, food-grade products—soybean oil, canola oil, etc.—

and renewable fuels. Today, IMTT is capable of holding 48 million barrels worth of liquid at its 19 terminals spread throughout North America—including four here in Louisiana (the original Avondale site, St. Rose, Geismar and Gretna). In recent years, ownership of IMTT changed hands after the Coleman Family sold the company to Macquarie Infrastructure Corp. From there, MIC acquired Epic Midstream in 2017—a transaction that added 7 more terminals to IMTT. Then, last De-

cember, Riverstone Holdings LLC bought IMTT from MIC for $2.685 billion, according to the press release announcing the deal. In the midst of so much change, so much growth and so much success, the company values at IMTT have always remained the same. “Even though we’ve grown into a large business, we’ve been able to maintain that familial feel to the organization,” Rosenbloom says. “So while it’s obviously changed over the years, that sense of community and family within this business never left.”

IMTT’s terminal IMTT’s dedication for bulk liquid to the Greater New handling in St. Orleans region was Rose, Louisiana put to the test following the Riverstone purchase. Prior to the sale, IMTT’s back-office functions—things like accounting, human resources, IT —were done through a shared-services company that handled those tasks for multiple Midstream holdings. The acquisition meant IMTT would have to not only fill those positions, but also find

space to accommodate an expanding team. Solving that logistical puzzle brought forth a potential counter-solution: Would it be easier to relocate IMTT’s headquarters out of New Orleans? “We looked at a number of factors— some of our customers are in Houston, a lot of our vendors are also there,” Rosenbloom says. “So, it was a consideration.” Ultimately, though, the interpersonal and economic benefits of staying in Greater New Orleans outweighed what other areas might offer. “In the end, it came down to a couple things,” says Rosenbloom. “So much of our business is here in Louisiana—40 percent. Being here allows us to attend to that business with a drive. We can have meetings and be here when customers visit the terminals. That was a big factor. Another factor is the employees we have here in our corporate office are really quality talent, and there was a risk in losing some of that talent if they didn’t want to relocate.” Rosenbloom says that after presenting those factors to the CEO and Board, they made the decision to stay and expand in New Orleans. To meet the growing needs of the 40 to 50 new employees who will be working at IMTT’s headquarters, the company consulted with Christina Donahue, the Senior Property Manager at Hertz Investment, about reorganizing and expanding headquarters at 400 Poydras Tower. In mid-March 2021, Louisiana Gov. John Edwards was on hand in New Orleans when IMTT officially announced the $1.3 million headquarters expansion. Upon project completion, IMTT will occupy the 29th and 30th floors of the building, and will see its total HQ workforce nearly double. Louisiana Economic Development (LED) predicts IMTT’s decision to advance operations in New Orleans will lead to approximately 50 indirect jobs as well. Currently, IMTT employs 220 workers and has an annual payroll of $30 million. “There was a conscious decision to say, ‘Do we want to double down on our ties to New Orleans, or do we want to re-establish elsewhere?’” Rosenbloom says. “The only answer, in the end, was to stay in New Orleans and expand our footprint within our headquarters.”

PROFESSIONAL SERVICES

Success Behind the Scenes

For professional service experts in the region, prosperity is a team effort

BY FRITZ ESKER

ou might have heard the term “It takes a village to raise a child,” and as it turns out, the same is true of running a business. Ensuring the smooth and efficient operations of any enterprise is never a one-person show: instead, it takes several teams of dedicated individuals working behind the scenes to provide the professional services every business needs to thrive. In Greater New Orleans, experts from industries ranging from law and consulting to banking and accounting all convene to help new and expanding companies secure the best possible outcomes for the local economy. When an aspiring entrepreneur gets a great idea for a new business, one of the first hurdles to clear is securing funding.

REGION Q2 2021

This is where local banks step up. Alden McDonald, president and CEO of Liberty Bank, says the first thing they do is to match entrepreneurs with a loan officer to discuss both immediate and long-term needs. Loaning the money necessary to start a business is important, but it’s not the only way banks help corporate leaders. “A banker is a free business consultant,” McDonald says. “It’s a way entrepreneurs can have an independent review of their business plan and get an honest answer about it.” The bank wouldn’t make money if it didn’t lend money, but they also want the loans to be repaid. As a result, they will do everything they can to honestly evaluate an entrepreneur’s plan and offer any suggestions to improve it.

We try to work collaboratively with clients to avoid any unintentional mistakes. Our work gives investors and others confidence...”

McDonald adds that budding entrepreneurs should consult a local business center or a CPA for assistance in creating a business plan if they are uncertain how to do it. “You don’t have to have a perfect plan, but you do need to have a plan in place to discuss (with your banker),” McDonald says. “The most common mistake people make is to come in unprepared to discuss their proposal.” If it’s an existing business seeking additional funds for expansion, they should also bring in the past three years of financial statements. Keeping financial statements is important for any business, but because SEC and the Financial Accounting Standards Board regulations are subject to change, it can be hard for a layperson to keep up with up-to-date rules and practices. McDonald says he saw many companies miss out on recent PPP loans because they didn’t have the necessary financial records. Luckily, banks aren’t the only source of financial knowledge and guidance for the entrepreneurial community in Greater New Orleans. Here, they can consult with experts from various industries to transform their approach to business. Ernst & Young is a global professional services organization that specializes in assurance, tax and advisory services, and maintains a strong presence in the region. Brian Rotolo, Louisiana Managing Partner at EY, says it’s his job to help businesses navigate potential pitfalls and to act as a North Star for clients. “Common mistakes generally relate to new accounting pronouncements,” Rotolo says. “We try to work collaboratively with clients to avoid any unintentional mistakes. Our work gives investors and others confidence that the financial info a company provides is fairly stated.” From startups to mid-size and Fortune 500 companies, EY also provides guidance through everyday challenges and helps businesses realize new ideas and advancements. Their services include evaluating different locations for business expansion, helping clients understand various aspects of relocation, and strategizing on creative solutions to any general issues the company might be facing. Because technology plays a large role in business efficiency, E&Y has even helped clients develop

innovative technologies like smartphone apps. And what behind-the-scenes team would be complete without experienced legal counsel? Local attorneys play a key role in setting up businesses for success, offering a detailed understanding of regulations and compliance requirements that will govern how a business operates, but which entrepreneurs might not always be aware of. “The regulations and requirements are not the fun stuff, so to speak,” says Christopher Kane, a partner at Adams & Reese. While needs can vary depending on the specific business, Kane says one example of how he helps clients is with franchising, which is not only expensive but requires adherence to a number of

...all these moving parts – legal, financial, strategy, consulting and more – are equally important to a business’s longevity.”

compliance standards. Lawyers can also help clients understand incentives offered by parishes or states to open a new business. Kane says his process for discussing these or any other issues with clients is to keep their goals as the central focus, then to form a plan that will make those goals possible. “We start off by asking what the barriers are to this being successful,” Kane says. “What are the regulations—state, federal, and municipal? How can we work within those regulations? How can we work to get them changed?” Kane says that all too often, his firm is brought in after common mistakes have already been made. Not only can this result in legal problems, but can also result in missed opportunities that would have helped an entrepreneur achieve their corporate vision. “With a good lawyer, problems can be avoided on the front end and money can be saved on the back end,” Kane says. That philosophy applies across the board, as all these moving parts—legal, financial, strategy, consulting and more—are equally important to a business’s longevity. It’s a good thing that no entrepreneur has to do it alone. It certainly takes a village—or in this case, it takes a region.

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PERSONAL PROFILES

In Conversation with Economic Development Leaders In each of the Greater New Orleans region’s 10 parishes are economic development professionals who not only ensure that local businesses have the tools they need to survive, but that they also have the resources and support necessary to thrive. Jerry Bologna, Executive Director of the Jefferson Parish Economic Development Commission, Meaghan McCormack, Executive Director of the St. Bernard Parish Economic Development Foundation, and Stanley Bienemy, Director of Economic Development for St. John the Baptist Parish, spoke with REGION about the state of their respective local economies—and how they make the region stronger as a whole. BY WILL KALEC

Q: How would you describe the state of the local economy in your parish? McCormack: Both the people and economy of St. Bernard Parish have always been incredibly resilient. We saw that tenfold when the pandemic hit and our businesses were able to pivot, stay open or use the downtime productively when the stay-at-home order was first issued. We saw restaurant owners quickly figure out how to offer curbside pickup, our commercial fishing community exploring cold storage and co-packing opportunities, and others use the time to think creatively and plan their next big venture. It’s these everyday heroes—small business owners—that make our parish’s economy so buoyant. Since then, our parish economy remains strong and is getting even more robust as a result of the diversification taking place. Bologna: Our economy is extremely resilient and diverse in terms of industry. That’s one of the reasons why we finished 2020, from a revenue standpoint, above 2019. And I don’t think anyone would have predicted that when stay-at-home orders were issued in March, but I think that speaks to the resilience of our businesses and their ability to adapt to changing requirements. I’d also point to the willingness of our residents in Jefferson Parish to support local businesses.

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Q: How has the local economy adapted to all the challenges brought forth during the past year, and how has your organization helped businesses overcome those challenges? Bologna: Our focus at JEDCO has always been business retention—making sure they have the resources they need to expand and remain stable. When COVID first reared its head in Jefferson, we immediately jumped in to be a source of accurate, timely information for companies when programs were introduced, especially when it pertains to the deployment of capital, whether it be the PPP loans or the EIPL loans. McCormack: In St. Bernard Parish, we’re thankful that the impact of COVID-19 wasn’t as drastic as in many other parishes in the region. Our economy does not rely heavily on tourism, and we didn’t see the drastic declines in hotel stays, restaurant tickets and traffic that many of our regional peers experienced. Throughout COVID-19, SBEDF was able to offer individual consulting for a number of businesses, especially as it relates to accessing PPP Loans, EIDL funding and assistance after the many tropical storms our parish faced. Bienemy: Although the challenges have been many, our organization has worked to connect our small business owners with the resources they need to recover and rebuild. The St.

Jerry Bologna, President & CEO Jefferson Parish Economic Development Commission

Meaghan McCormack, Executive Director St. Bernard Economic Development Foundation

John the Baptist Parish Business Training Center moved all of its programing to a virtual format. We also hosted informational sessions with Louisiana Economic Development (LED), Small Business Association and the Louisiana Procurement Technical Assistance Center. Q: What are some of the services or programs local businesses have benefited from in your parish? Bienemy: The St. John the Baptist Parish Business Training Center offers one-on-one consulting services, the Kauffman FastTrac program, Small and Emerging Business Roundtables and various training classes in partnership with LED. The parish also entered a partnership with the Southern University Law Center Technology and Entrepreneurship Law Clinic to secure printers for our FastTrac graduates. Ensuring that our business owners have the tools they need for success is key to their continued growth. Bologna: When it comes to business retention, certainly tax incentive help comes to mind. We’ll walk business through the necessary steps in obtaining those tax incentives if they’re creating jobs or making large capital investments. We also have a number of resources for businesses to help them with marketing or finding vendors. But I would say one of the more unique tools

Stanley Bienemy, Director of Economic Development for St. John the Baptist Parish

we have at our disposal is that we have an in-house financing arm. We provide everything from SBA funding to Revolving Loans Funds, and we’re able to assist businesses to finance anything from equipment purchases to real estate. And that’s a great tool because the more we can get businesses to invest in their real estate, the more ingrained they are in the community. McCormack: I’ll give you three. Small Business Saturday is the kickoff to an entire week-long celebration in St. Bernard Parish. The event is headlined by a 7-day shopper incentive program called Shop Small Week, steered by SBEDF & the St. Bernard Chamber of Commerce, along with a committee of local business owners and community organizations. Businesses offer daily discounts and prizes to lucky shoppers, driving sales throughout the Parish. Grow St. Bernard offers access to education on current trends and best practices for business operations, as well as one-on-one business consulting from the Louisiana Small Business Development Center. The program targets professionals across the region and features presentations and panel discussions led by esteemed leaders of the business community. Grow St. Bernard is low-cost and affords business owners and professionals the opportunity to build relationships with like-minded, motivated individuals. Startup St. Bernard, presented by the Meraux Foundation and

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PERSONAL PROFILES

CONNECT WITH YOUR LOCAL ECONOMIC DEVELOPMENT OFFICE

Jefferson Parish

Jefferson Parish Economic Development Commission Jerry Bologna, President & CEO jedco.org

Orleans Parish

New Orleans Business Alliance Norman Barnum IV, Interim President & CEO nolaba.org

Plaquemines Parish

Plaquemines Parish Economic Development Keith Espadron, Jr., Director plaqueminesparish.com

St. Bernard Parish

St. Bernard Economic Development Foundation Meaghan McCormack, Executive Director sbedf.org

St. Charles Parish

St. Charles Parish Department of Economic Development and Tourism Corey Faucheux, Director stcharlesparish-la.gov

St. James Parish

St. James Parish Economic Development Office Audrey Temple, Manager stjamesla.com

St. John the Baptist Parish

SJB Parish Economic Development Stanley Bienemy, Economic Development Director sjbparish.gov

St. Tammany Parish

St. Tammany Corporation Chris Masingill, CEO sttammanycorp.org

Tangipahoa Parish

Tangipahoa Economic Development Foundation Ginger Cangelosi, Executive Director tedf.org

Washington Parish

Washington Parish Economic Development Foundation Ryan Seal, Executive Director wedf.com

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the St. Bernard Economic Development Foundation, is an annual startup business challenge. Entrepreneurs are invited to apply for a chance to pitch their business to a panel of judges in St. Bernard Parish for over $100,000 in prizes. Our pitch competition here in St. Bernard boasts the largest prize package in the region, offers both finalists $5,000 in cash each, and guarantees the winner a host of in-kind services including office space, accounting/bookkeeping, marketing/advertising, website and graphic design services, and even legal services. The prize package is everything you’d need to turn your business idea or start-up into a well-run enterprise! Q: What are some of the reasons why your parish continues to be a desirable location for businesses of all sizes? Bologna: Logistics. Our abilities with water, rail and road are a great advantage for businesses. Additionally, we have a very productive workforce, a business-friendly environment and a cooperative government. We call it the Three-Legged Stool: a cooperative government, an engaged leadership and a strong civic community. Typically, we’re all on the same page, and I don’t think businesses find that everywhere. Bienemy: St. John the Baptist is located less than an hour away from Baton Rouge and New Orleans, which makes both metropolitan areas easily accessible. The parish also has a campus of the River Parishes Community College located in Reserve that is ready to assist with any workforce training needs. My favorite reason is the people. The people of St. John are welcoming and always willing to help their neighbors. Q: What’s the future outlook on the local economy in your area? McCormack: Things are looking up downriver. That’s our tagline at SBEDF, but it’s also the truth. The recent purchase of 1,100 acres of land by the Port of New Orleans for a potential $1.5 billion container terminal development would put our community on the map as an international trade hub. In October, The Ranch Film Studios announced they will expand film production operations in St. Bernard Parish, bringing the partners one step closer to realizing the filmmaking center and cultural arts hub they envisioned when they opened the film studios’ doors in Chalmette in 2014. And so far for the year, our Parish Government has issued 130 new residential construction permits (44 for the month of April alone), which is more than one per day. If that number tells you anything, it should be telling you that our community is so desirable that people are moving here, investing here and building lives here in droves. Bienemy: The future is bright! I believe St. John will grow in spite of all the challenges of COVID-19. We will continue to work hard to build a resilient community.

PHOTO GALLERY

Coastal partners and GNO, Inc. stakeholders attended the premier of the Coastal Video Series, a collection of animated videos developed in partnership with the Joe W. and Dorothy Dorsett Brown Foundation and Louisiana Children’s Museum to teach children the fundamentals of coastal restoration.

GNO, Inc. investors and stakeholders hear about regional public policy priorities and meet lawmakers during the GNO, Inc. Legislative Luncheon.

GNO, Inc. Board Chair Gay Le Breton, Outgoing Board Chair Guy Williams, and GNO, Inc. President & CEO Michael Hecht during the 2021 Annual Luncheon at Loyola University.

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PHOTO GALLERY

Members of the GNO, Inc. staff outside of Gnarly Barley Brewing Company in Tangipahoa parish during a recent familiarization tour. Members of the GNO, Inc. staff tour Intralox’s facility in Tangipahoa parish during a recent familiarization tour.

During the GNO, Inc. NextGen Council Day at the Capital and Legislative Luncheon, members visited with colleagues in Baton Rouge.

GNO, Inc. Program Manager Josh Tatum gives a presentation during a recent joint meeting of the Board of Directors and NextGen Council at the Conference Centre on 11 in the PanAmerican Life Center. GNO, Inc. SVP of Business Development Grady Fitzpatrick presenting at the joint meeting. GNO, Inc. President & CEO Michael Hecht and Fitzpatrick showcase a promotional turntable that was recently mailed to site selectors around the country.

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NEWSFLASH

Local construction firm Palmisano is the latest New Orleans-based company to scale its operations outside the GNO region. In June, the company announced the establishment of a new commercial construction operation in Nashville, Tennessee, a city which Founder and CEO Wesley Palmisano says has strong parallels to New Orleans for its culture of resiliency and collaboration. The Nashville office will be led by Palmisano’s Regional Growth Leader, Craig Floyd, who brings more than 20 years of construction experience. “We look forward to rolling up our sleeves and getting to work,” Floyd says.

Pictured above left to right are Craig Floyd, Regional Growth Leader and Wesley Palmisano, Founder and CEO. Images courtesy of Palmisano Construction.

GNOINC.ORG

NEWSFLASH

Breeze Airways, a new airline established by JetBlue founder David Neeleman, has announced Louis Armstrong New Orleans International Airport as its base of operations. Starting in July, Breeze will offer nonstop routes to 10 cities nationwide, most of which are new destinations for MSY: Charleston, SC; Akron/Canton, OH; Bentonville/Fayetteville, AR; Huntsville, AL; Louisville, KY; Norfolk, VA; Oklahoma, OK; Richmond, VA; Tulsa, OK; and Columbus, OH. With a capital investment of $6.6 million, Breeze Airways is expected to create approximately 260 direct jobs and 877 indirect jobs. Image courtesy of Breeze Airways

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