10/12 Industry Report [Fall 2023] by Baton Rouge Business Report

FALL 2023

PLUS: Growing hope for hydrogen Pumping up project profits A setback for wind?

The

REVOLUTION

Not exploring digital twins, generative AI or robotic inspections?

You may risk being left behind.

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CONTENTS

Publisher: Julio Melara EDITORIAL Chief Content Officer: Penny Font Editor: Sam Barnes Contributing Photographers: Cheryl Gerber, Don Kadair, Leroy Tademy ADVERTISING Sales Director: Kelly Lewis Account Executives: Emma Dubuc, Nancy Bombet Ellis, Meredith LaBorde, Ethan Shipp, Matt Wambles Digital Operations Manager: Devyn MacDonald Customer Success Manager: Paul Huval

STUDIO E Director: Taylor Gast Creative Director: Timothy Coles Corporate Media Editor: Lisa Tramontana Content Strategist: Emily Hebert Project Manager: Kendall Denney Account Executive: Judith LaDousa

The

MARKETING Marketing & Events Coordinator: Taylor Falgout Marketing & Events Assistant: Cadon Ardoin Events: Abby Hamilton

REVOLUTION

ADMINISTRATION Business Manager: Tiffany Durocher Business Associate: Kirsten Milano Office Coordinator: Sara Hodge Receptionist: Cathy Varnado Brown

Not exploring digital twins, generative AI or robotic inspections?

ISTOCK

You may risk being left behind.

CLOSING NOTES

In this issue

50 The Boom at a Glance

LAUNCH

Our maps of the projects driving industrial growth.

54 The Toughest Challenge

9 ICYMI 13 Executive Spotlight

How Beth Holland stays ‘hungry and curious’

PPG’s Lyndee Brassieur on managing in times of crisis

COVER STORY

14 The AI Revolution

Not exploring digital twins, generative AI or robotic inspections? You may risk being left behind.

SPECIAL ADVERTISING SECTIONS

41 Leaders of Industry

10/12 Industry Report shines a light on regional companies and organizations that make an impact in their fields and in their communities.

Page 35

NEWS

26 The case for hydrogen

The H2theFuture initiative is working to make Louisiana the epicenter of the hydrogen universe.

32 Cash pinch

Uncertain project economics can put a contractor’s profitability at risk. Here’s how some are navigating it.

35 Variable winds

What does a lackluster lease sale mean for the future of wind energy in the Gulf of Mexico? Send your ideas and company news to editor@1012industryreport.com.

1012industryreport.com

CREATIVE SERVICES Director of Creative Services: Amy Vandiver Art Director: Hoa Vu Senior Graphic Designers: Melinda Gonzalez Galjour, Emily Witt Graphic Designer: Ashlee Digel Design Consultant: Carlin Mumphrey AUDIENCE DEVELOPMENT Audience Development Director and Digital Manager: James Hume Audience Development Coordinator: Ivana Oubre Audience Development Associate: Catherine Albano A PUBLICATION OF MELARA ENTERPRISES, LLC Chairman: Julio Melara Executive Assistant: Brooke Motto Vice President-Sales: Elizabeth McCollister Hebert Chief Content Officer: Penny Font Chief Digital Officer: Erin Pou Chief Operating Officer: Guy Barone Chairman Emeritus: Rolfe H. McCollister Jr. CIRCULATION/REPRINTS/ SUBSCRIPTIONS/ CUSTOMER SERVICE 225-928-1700 email: circulation@businessreport.com Volume 8 - Number 2 © Copyright 2023 by Melara Enterprises, LLC. All rights reserved by LBI. 10/12 Industry Report is published biannually by Louisiana Business Inc. Reproduction without permission is prohibited. Business address: 9029 Jefferson Hwy., Ste. 300, Baton Rouge, LA 70809. Telephone (225) 928-1700. POSTMASTER: Send address changes to 1012 Industry Report, 9029 Jefferson Hwy., Ste. 300, Baton Rouge, LA 70809. 10/12 Industry Report cannot be responsible for the return of unsolicited material—manuscripts or photographs, with or without the inclusion of a stamped, self-addressed return envelope. Information in this publication is gathered from sources considered to be reliable, but the accuracy and completeness of the information cannot be guaranteed. No information expressed here constitutes a solicitation for the purchase or sale of any securities.

10/12 INDUSTRY REPORT • FALL 2023

IN THIS ISSUE

Momentum builds for a radical technological transformation

SAM BARNES

10/12 INDUSTRY REPORT • FALL 2023

WIND POWER’S BIG BLOW Offshore wind proponents say there’s a silver lining to the dismal showing at late August’s inaugural federal offshore wind sale. At the end of the day, one fact remains: An offshore wind lease has now been sold in the Gulf of Mexico. RWE Offshore US Gulf LLC was the winner of the Lake Charles Lease Area, which has the potential to generate some 1.24 gigawatts of offshore wind energy capacity and power nearly 435,400 homes with renewable energy. The “economics” might not be ideal for most other developers, but it’s reasonable to assume that offshore wind in the Gulf will ultimately come to pass, albeit later rather than sooner. There’s an undeniable buildup of local momentum—Louisiana is in negotiations with three companies over leasing areas in state waters for wind power, Nunez Community College is about to launch a wind technician’s curriculum at its Chalmette campus, and GNO Inc. is leading the charge for wind pow-

er to produce hydrogen through its H2theFuture initiative. Read more on page 35. MENTAL HEALTH CRISIS The statistics are startling and perplexing. Men working in construction have one of the highest suicide rates by population—four times higher than the general population and the second-highest rate of all workplace industries at 45 per 100,000. It’s an uncomfortable subject for some, but the drumbeat is growing louder for contractors to address the high number of deaths by suicide in their industry. According to the Construction Industry Alliance for Suicide Prevention, it’s five times more likely that a construction company will lose an employee to suicide than the OSHA “fatal four”: falls, electrocution, “struck by” or “caught in between.” In response, some contractor groups are taking action. Check out what they’re doing, as well as some steps that you can take to address total worker health. We lay out the details on page 9.

ISTOCK

n the early days of the annual Tec-Next Conference at Baton Rouge’s Shaw Center, many of the ideas brought to the stage seemed fanciful, and at times confusing. Terms such as digital twin, generative AI and the Industrial Internet of Things were tossed around, but they seemed more academic than practical in the industrial space. There were some in the audience, though, who took it as a challenge. Since then, some local plant owners have made significant strides in experimenting with—and even implementing—new tech within their facilities. New positions manned by tech experts are designed to ensure that it happens. Case in point: Shell has incorporated the use of “digital twins” in some of its units in Geismar, and ExxonMobil is using VR and digital twins, most recently to train workers remotely for its $500 million polypropylene plant in Baton Rouge. It’s now inevitable that AI and other tech will become an integral part of the industrial landscape. And as the saying goes, “He who hesitates is lost.” Those companies who choose to wait on the sidelines will soon be playing catchup to those trailblazers who embrace the technology, in practical ways, to find efficiencies in their processes. LSU in Baton Rouge saw the writing on the wall, and recently added an emerging technology specialization to its MBA program. Classes teach AI, cybersecurity and other tech subjects. Get a snapshot of the rapidly evolving landscape in our cover story beginning on page 14.

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46 ACRES DEDICATED TO ALL YOUR

STEEL FABRICATION NEEDS.

Deltak Manufacturing’s New Iberia, LA facility is strategically located 15 miles from the Gulf of Mexico with 150,000 sq. ft. combined under roof fabrication facilities and 19 overhead cranes.

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• Building: 120' X 170' • Computerized robotic CNC pipe coping/cutting equipment with up to 48” pipe capacity. • Computerized robotic CNC plate cutting equipment, cuts up to 8” thick plate in sheets up to 10 ’X 40’, 400-amp plasma or oxy-fuel, with 5-axis bevel head.

ROBOTIC BEAM AND STRUCTURAL SHAPES FABRICATION SHOP

• Building: 55’ W x 21’ L x 16’ eave height • 7- axis robotic plasma cutting system cuts material to length, copes, compound miters, bevels, cuts weld access & bolt holes and etches piece marks, heat numbers and layout lines for weldments. • Meets ANSI/AISC 360-05 standard specification on bolt holes for structural steel buildings.

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• Building: 150’ x 300’ x 70’ • Equipped with 8 20-ton overhead cranes at a hook height of 56.5’, and has 75 welding stations. • Overhead crane rails extend 50’ out from each end of the building to allow additional flexibility.

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10/12 INDUSTRY REPORT • FALL 2023

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LAUNCH ICYMI

Confronting the suicide crisis

10 STEPS TO SAVE LIVES

Men working in construction have one of the highest suicide rates by population: four times higher than the general population and the second-highest rate of all workplace industries at 45 per 100,000. The Construction Alliance for Suicide Prevention offers these tips for employers. Cultivate bold leadership. Every company needs internal champions who will lead the effort of mental health promotion and suicide prevention. Improve mental health literacy. Too often, the reluctance to talk about mental health and suicide stems from fear, which stems from ignorance. Providing education and awareness can help reduce fear and replace it with reality. Teach coping skills for life challenges. This ranges from new employee orientation and onboarding to supervisor training to executive coaching to ongoing wellness workshops. Build a caring culture. Many construction companies have already committed to fostering safety at all times, but few have taken mental wellness into account.

t’s an uncomfortable subject for some, but the drumbeat is growing louder for contractors to address a startling high number of deaths by suicide in their industry. According to the Construction Industry Alliance for Suicide Prevention, it’s five times more likely that a construction company will lose an employee to suicide than the OSHA “fatal four”: falls, electrocution, “struck by” or “caught in between.” And in its most recent data, the Centers for Disease Control and Prevention reported that contractors have the highest rates of death by suicide among its workers. In response, some contractor groups are taking action. Through its partnership with the American Foundation for Suicide Prevention, Associated Builders and Contractors provides

1012industryreport.com

ISTOCK

Promote Employee Assistance Programs and other mental health services. EAPs help employers by offering such services as psychological assessment and short-term counseling, managing critical incidents, and conducting “fitness for duty” evaluations.

construction workers and employers with resources such as free suicide prevention training, a Suicide Prevention Lifeline call center, a Crisis Text Line, toolbox talks and speakers who can provide in-person, recorded and online education on suicide awareness and prevention. “It is time to shatter the stigma surrounding mental health issues with the goal of creating a zero-suicide industry,” says Greg Sizemore, ABC vice president of health, safety, environment and workforce development. “Employers can build a resilient workforce by providing access to resources to improve total human health—physical, mental, emotional, social, mental, intellectual, financial, occupational and spiritual wellness.” Many contractors are taking action by broadening their safety initiatives and proactively tackling the problem.

Screen for mental health conditions and substance misuse. Just like they screen for blood pressure, cholesterol and body mass index, contractors can also screen for things such as depression, anxiety and alcohol misuse. Train supervisors and others on how to have the difficult conversations. Bystander interventions have increased substantially as people felt capable and charged with the responsibility to intervene. Promote the National Suicide Prevention Lifeline. This tool is one of the most cost effective ways employers can promote safety. Manage behavioral health crises in the workplace. When an employee is experiencing a mental health crisis, there are many things an employer can do to help them get well. Provide effective and compassionate grief and trauma support after a suicide death. While preparing for a worst-case scenario is difficult, it is even more difficult to react in the middle of a crisis for which you didn’t prepare.

10/12 INDUSTRY REPORT • FALL 2023

SPONSORED BY:

LOSFA stands ready to partner with business and industry Here’s how

ou may be familiar with the Louisiana Office of Student Financial Assistance (LOSFA) as the administrator of the state’s scholarship and grant programs, like TOPS. But what you may not be as familiar with are the myriad ways that LOSFA’s services extend beyond TOPS, to the benefit of business and industry. Let’s break it down.

HOW LOSFA AND BUSINESS AND INDUSTRY CAN SERVE LOUISIANA TOGETHER As Louisiana’s expert source of information on financial assistance, LOSFA promotes college access through educational programs, FASFA and college application completion support, integrated business and industry visits, and more. There are a number of ways that business and industry can partner with LOSFA to serve Louisiana’s students and support building the state’s workforce through college access. For example, business and industry can assist in connecting students and families to mentorships and networking through LOSFA’s Student Network Groups by providing speakers 10

10/12 INDUSTRY REPORT • FALL 2023

and content experts in various fields. Existing partnerships have allowed LOSFA to provide opportunities for developing essential skills for job success, job shadowing, internships and even job placement for students. These business and industry partnerships provide critical opportunities for students to connect to pathways for success by exploring and identifying careers and matching them to the program, degree and school that is the best fit for them. LOSFA also provides services to business and industry partners by assisting employees and their children with comprehensive college access and career exploration advising; connections to college access and other wraparound services and resources; FAFSA form and college application completion; identifying resources to pay for postsecondary degrees, certificates and credentials; providing workshops, presentations and special programs on college access, financial literacy, and LOSFA’s scholarship and grant programs; participation in employee browses and informational sessions; and 529 savings account payroll deduction.

NEXT STEPS LOSFA strives to be Louisiana’s first choice for college access. If you’re interested in learning more about establishing a partnership with LOSFA, don’t hesitate to reach out. All you need to do to get started is send an email to losfa.partner@la.gov. If you’re specifically interested in connecting with a LOSFA Comprehensive Advising Officer who can assist you no matter where you may be on your college access journey, reach out to losfa.advising@la.gov. Additionally, LOSFA actively assists students from low-income families and first-generation college attendees in locating and obtaining the resources necessary to pursue and complete a postsecondary education. A comprehensive resource database can be found on LOSFA’s website. LOSFA is a Program of the Louisiana Board of Regents. LOSFA administers the state’s scholarship and grant programs and the state’s Internal Revenue Code Section 529 college savings program. For more information, visit mylosfa.la.gov or call 225.219.1012.

1012industryreport.com

LAUNCH: ICYMI

QUICK READS SEQUESTRATION HUB

Trace Carbon Solutions LLC and Molpus Woodlands Group, on behalf of a client, have signed a servitude agreement providing Trace with exclusive rights to develop and operate the Evergreen Sequestration Hub on approximately 20,000 acres in Calcasieu and Beauregard parishes. Trace will use the site to permanently sequester industrial carbon dioxide in underground geologic formations, while Molpus will continue to manage the aboveground acreage as a sustainably managed working forest. Trace anticipates that the Evergreen Hub will have a total sequestration capacity of over 250 million metric tons of carbon.

BY THE NUMBERS

$3 MILLION

UNDER CONSTRUCTION

There’s a $1.1 billion solar panel manufacturing facility under construction in Iberia Parish. First Solar’s fifth fully vertically integrated factory of its kind in the U.S., is expected to start commercial shipments of photovoltaic solar panels by the first half of 2026. When completed, the Iberia Parish facility is expected to cover over two million square feet, as well as produce more than one dozen solar panels every minute.

DURABLE RESINS

ExxonMobil has plans for a new facility in West Baton Rouge specializing in manufacturing durable resins for use in sustainable construction and renewable energy. The new manufacturing and packaging facility will be located on available land at the existing Port Allen Lubricants Plant, says Stephanie Cargile, ExxonMobil’s Baton Rouge public and government affairs manager. The facility, a potential $100 million investment, will manufacture polyolefin thermoset resins with uses in multiple industries, including wind turbine Issue Date: Spring 2023blades, Ad electric proofvehicle #1 parts, sustainable construction and anti-corrosion Compared to epoxy and polyurethane, the new resin would be 10% to • Please respond bycoatings. e-mail or phone with your approval or minor revisions. • AD WILL RUN and AS IS more unless approval or final are received within hrs 15% lighter resistant to revisions harsh chemicals and24climates.

Amount an LSU professor has been awarded to research and plug the state’s 450 orphan oil wells leaking methane gas. The project, led by petroleum engineering professor Ipsita Gupta, seeks to “find out which wells are leaking and measure their emissions before and after they are plugged. Funding for the project was awarded by the state’s Department of Natural Resources on behalf of the U.S. Department of the Interior. There are currently more than 4,500 orphan oil wells in Louisiana.

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Storage capacity has nearly doubled to accommodate up to 2,000 containers. The successful public/private partnership between the Port of Greater Baton Rouge and SEACOR AMH has produced steady increases in the number of containers handled at the Port’s barge terminal. As a result, a project to create nearly 4 acres of additional paved container storage capacity has been successfully completed. The yard is now capable of handling approximately 2,000 containers including containers measuring 40 feet, versus 20 feet.

10/12 INDUSTRY REPORT • FALL 2023

Meet the Big Red Beast. A 20% efficiency gain in container operations at the Port of Greater Baton Rouge is just one positive outcome of the Port’s new, deep-reach container stacker known as The Big Red Beast. With a telescopic boom for stacking four containers high, shorter loading and unloading times have helped meet the increasing demand for container shipping services between Baton Rouge and New Orleans for area customers. The addition of the custom-made stacker is another component of the Port’s recent expansion of its successful container operations. For more information, contact Greg Johnson at (225) 342-1660. 2425 Ernest Wilson Drive ! P.O. Box 380 ! Port Allen, LA 70767-0380 PH: (225) 342.1660 ! FAX: (225) 342.1666 ! www.portgbr.com

1012industryreport.com

LAUNCH: PEOPLE

Lyndee Brassieur

yndee Brassieur has lived in Lake Charles much of her life. There was no need to leave, because she found her passion right here at home. While earning a degree in chemical engineering from McNeese State University in the late 1990s, Brassieur discovered her love of manufacturing as a student working at PPG during a co-op/ internship program. Over the years, she has gradually risen through the ranks at PPG, taking on a variety of roles from shipping and logistics to environmental air permitting to management positions, even working for a period of time at PPG’s Natrium, West Virginia plant, in the chemicals side of the business. She came back home to work for Westlake Chemical after PPG divested its chemicals division, then, after a brief stint in a continuous improvement role and as vice president of U.S. operations for Waitr—then a tech startup— she returned to doing what she loves most. “My love is in manufacturing, so I began to look for opportunities in that space again,” Brassieur says. “It just so happened that PPG in Lake Charles needed a plant manager at the same time I started looking.” It was challenging return, to be sure, as it was July 2020 and the world was in the midst of the COVID-19 pandemic. “I knew what I was getting into,” Brassieur says. “It was definitely a tough time for the site.” Then later, as she was finishing negotiations for the plant’s next union contract, Hurricane Laura made landfall. It became the most challenging time in her professional career, but, she says, it ultimately brought everyone together as a team. “I like to believe that out of every crisis there’s some sort of silver lining,” she adds. “Hurricane Laura provided a huge opportunity for our team

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to gel because we all had to go into crisis mode. Where COVID forced us to be apart, when the hurricanes happened, we were all together, meeting several times a day, managing customer issues, etcetera.” There were other natural disasters to come, including Hurricane Delta and a record-breaking freeze. Brassieur’s role at PPG continues to expand. Just six months ago, and some 25 years since she discovered her love of manufacturing, she took on a new role as director of global manufacturing for specialty chemicals materials. The Lake Charles plant is still under her “umbrella,” although she has hired her replacement as plant manager. “All of the plant managers report to me and together we manage all the PPG sites across the globe.” Share the most important milestones, or high points, of your career. I’ve been fortunate enough to work in several different positions over the years, and that’s allowed me to grow and become better at what I love to do. Having served in a variety of roles—EHS, continuous improvement, logistics and even across different businesses—has given me a unique perspective. But certainly, having to manage through all the natural disasters in a short period of time as a new leader in a new role is at the top of the list (in terms of career milestones). What are the biggest challenges ahead for industry? Getting the right talent in the right places. There is an ongoing struggle to attract and retain the right talent. In the past, people would make a career out of it and retire here. That’s just not where we are now. We must be strategic about what we offer, about succes-

LEROY TADEMY

PPG’s on managing in times of crisis

sion planning and partnering with schools and others. We need to think about the pipeline of talent progression and development. Another thing that’s top-ofmind for industry is sustainability. PPG just released its science-based targets, and we have some aggressive goals to meet between now and 2030. Things will be changing and adapting, worldwide, in terms of the way we’re using energy and being more efficient in the process … and that’s going to change the way we think. In some cases, we’re talking about significant technology shifts. There are a variety of alternative fuels and technologies. At PPG, how do we prioritize that across all our different sites? How do we get the most bang for our buck? We’re in the early stages where we’re just laying out the possibilities. Ultimately, it’s going to happen. Our customers are going to require it. What are your professional goals for the future? PPG is a huge global

company with many different businesses. That has given me the opportunity to see many different functions and businesses. I’m now in my first global role, and that’s been yet another challenge that has helped me grow. I hope to continue to experience different things and expand my role and value. PPG has 45,000 employees worldwide and that gives you countless opportunities for continuous improvement. What are your passions outside of work? I have three girls and their hobbies and interests tend to be mine. I’m involved with a lot of their sports, and I volunteer as a volleyball and softball coach. I’m also a certified Court Appointed Special Advocate (CASA) and am involved in the Lake Area Industry Alliance. All the sites benefit from LAIA, as it provides a platform for sharing different experiences. We all have the same talent and training issues, for example, and we share those things. It’s just a great forum. 10/12 INDUSTRY REPORT • FALL 2023

COVER STORY

10/12 INDUSTRY REPORT • FALL 2023

1012industryreport.com

The

REVOLUTION Not exploring digital twins, generative AI or robotic inspections? You may risk being left behind. BY SAM BARNES

ISTOCK

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t all began years ago, when industrial owners started digitizing their processes to gain more operational insight into their facilities. Whether they knew it or not, they were laying the groundwork for what would one day give rise to a host of emerging technologies once considered impractical. In the early years of the annual Tec-Next Conference at Baton Rouge’s Shaw Center, ideas such as digital twins, generative AI, robotic inspections and virtual reality-based training were being tossed around, but they seemed more academic than practical in the industrial space. That’s all changed now, and tech experts warn that if industrial owners don’t get on board they’ll risk being left behind. In many ways, the industrial market was late to the game, says Eric Allen, CEO & founder of San Francisco-based Environmental Intellect (Ei). “I graduated in mechanical engineering just as the iPhone launched, and Google Maps would help get me to the refineries,” he adds. “But once I got to the sites, I’d have to leave my phone in the car and use paper maps. “That got me wondering, why wouldn’t a high-risk environment such as a refinery have the best in technology? It was then that I began looking for better ways to serve our customers.” At the time, his then-fledgling company was digitizing CAD drawings for industrial clients. Then, in 2016, Allen’s workload quickly accelerated as his customers began

looking for ways to utilize 3D scans of their facilities. “We began developing a way to view our customer’s existing data in a web browser,” he says. “It became a platform for delivering and using digital information.” Today, many of Allen’s clients are situated along the I-10/I-12 corridor, where he builds tools for industrial facilities between New Orleans and Baton Rouge. Ei employees first identify the problem and determine how far along a customer is in their digitalization journey before proposing a solution. “We’re big on usability,” Allen says. “The technology must be packaged in a way where people can actually use it. We’ve learned you can’t be too ahead of your users. We take more of a targeted approach in solving problems.” The world is changing, he says, and industrial owners need to change, too. “People in maintenance, operations or heavy engineering are saying it’s hard to find people because they don’t want to show up at the plant every day and use old legacy tools,” he adds. “They’d rather go work at Amazon or some other tech company. When a company is behind in technology adoption, it makes it harder to recruit people.” TOOLS OF THE TRADE Today, Allen’s company markets its proprietary digital twin tool, which his customers use for everything from maintenance to capital projects to operations. “Some are using it to commission units after a turnaround,” he says, “while others use it for 10/12 INDUSTRY REPORT • FALL 2023

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COVER STORY

“We have a ton of IIOT and OT knowledge up and down the river from Baton Rouge to New Orleans to leverage. It’s one of the best places in the nation to take advantage of some of this technology.” DON KADAIR

MICHAEL BRAUER, vice president of operations, BBP Sales in Baton Rouge

training so they can understand the unit without going out in the field.” AI is a key component of the tool. For example, one of Allen’s south Louisiana customers has deployed machine learning technology to identify vessels and track greenhouse gas emissions. “We went into some of these facilities and scanned them for a couple of days, then trained the algorithm to find leak points in the model,” he adds. “Something that usually takes months we did it in a couple of weeks in the field.” They’ve also begun to assist some plants with studying the implementation of ChatGPT or generative AI to identify and prioritize potential uses. “Large Language Models (LLMs) can do a good job of mining key infor1012industryreport.com

mation out of a large amount of legacy documents,” Allen says. “There are a lot of opportunities for ChatGPT in that space.” Michael Brauer, vice president of operations at BBP Sales in Baton Rouge, is excited about the potential of emerging tech, especially now that many industrial plants’ data connectivity issues are being resolved. BBP has taken a deep dive into the wireless and IIOT (Industrial Internet of Things) side of the tech world, helping customers connect wireless sensors to their existing systems and providing other end-to-end solutions. “We have a ton of IIOT and OT knowledge up and down the river from Baton Rouge to New Orleans to leverage,” Brauer says. “It’s one of the best places in the

nation to take advantage of some of this technology.” Today, plants have digital transformation teams that seek better insight into their processes, while also reducing the labor hours needed for logistics, predictive maintenance and reliability functions. “In the past, it would’ve cost tens of thousands of dollars to deploy vibration monitoring,” he adds. “Now, they can deploy low-cost OT sensors to provide baseline data to let them know which asset they should monitor. It’s making existing assets and investments smarter and helping people make sense of large amounts of data. “And with data in a central place and standardized in the same way, AI algorithms can help

automate the insights that a company is looking for.” Bauer says some of the new AI technologies, such as ChatGPT, have potential in the industrial space, but warns that owners should be cautious. “I would never put my customer’s data into ChatGPT because a lot of that could get published into a public model. We take security very seriously here,” he says. “Although we do see its value in the automation of repetitive tasks … such as when you have code in one programming language and need to change it over to another project. That’s huge in an industrial environment because programming time is hard to come by.” ChatGPT can also index and provide access to information faster than other search engines. 10/12 INDUSTRY REPORT • FALL 2023

COVER STORY

IT’S GETTING REAL Some of Louisiana’s larger petrochemical complexes have become true trailblazers in the tech arena by going beyond mere beta tests to the full implementation of technology into their processes. Coila LaFleur, enterprise architect at ExxonMobil Baton Rouge, is tasked with finding ways for technology to support various businesses strategies at her facility. Given the size of the Baton Rouge complex, “we’re a great playground for new solutions,” LaFleur says. They’re currently using a pipe inspection robot—developed by a third party—that crawls 18

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autonomously along a length of pipe to perform inspections. Oher ExxonMobil facilities even use robotic dogs to make rounds and take laser scans of the facility. “You can attach so many different things to a robot to enable it to detect gas leaks or go into some other dangerous situation where you don’t want to send a human,” she says. LaFleur says the Baton Rouge complex is currently “on a journey” to implement digital twin technology. “One of the big challenges is how do we take all of our 3D scans, all of those data-driven models, and bring it to a place

where people can get to it?” Their hope is to create a central repository for the 3D data, then develop an industry data standard that will allow them to collaborate and share data with other companies. “Using that same data standard will allow us to do that seamlessly,” she adds. Only then will ExxonMobil be able to move fully into the digital twin world, “where we will have a full-scale model of the facility with real-time data flowing through it. That’s when we’ll be able to see a particular pump, for example, and the current pressure on that pump. We’re not there yet,

but we are on that journey.” ExxonMobil also has AI experts in offices in Houston and Argentina that are researching practical ways to implement LLMs such as ChatGPT. “We’re trying to figure out how to use them to our advantage,” LaFleur says. “And then, of course, there are concerns around cybersecurity, so we’re trying to figure out what’s the best technology to use that will provide more functionality, as well as be secure.” A technology trailblazer in its own right, Shell has made noteworthy advances in the implementation of digital twins. 1012industryreport.com

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David Mustain, Shell’s digitalization and innovation lead in Geismar, says it all began during a Tex-Next Conference a few years ago. “Someone asked, ‘Who will be the first to build a functional digital twin and keep it up to date?’ We took that as a challenge and began making local investments to move in that direction.” Shell’s Geismar plant has now implemented a digital twin and can “walk” through some of its units using virtual reality. “Our project designers, maintenance engineers and support inspectors can all go to one spot to search for a tag, then find the 1012industryreport.com

associated process drawing and specs related to it,” Mustain says. “They can fly to that spot in a 3D model or pull up point cloud information and see a 3D visual of the area. We are still at the early phases, but we are already seeing significant gains in our ability to avoid trips to the field and maximize efficiency of maintenance planning.” Globally, Shell has also had success using remotely controlled ground robotics, and the Geismar site has used a robotic pipe crawler for inspections. AI also has significant potential, Mustain says. The Geismar site is utilizing

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COVER STORY multiple AI models developed by other Shell sites and co-developed with Baker Hughes and Bentley Nevada. Additionally, Shell’s partnership with technology provider C3.ai enables it to deploy enterprise AI solutions at scale. “AI and ChatGPT get a lot of focus these days but there are other subsets of AI, such as machine learning, that have real current potential,” he adds. “Our global team developed a predictive machine learning model to track the performance of equipment. We took that and used it to track performance of control valves and other equipment. “These tools can give us early indications that something is changing. We can then make corrections without disturbing the plant or requiring a shutdown. The model is actually teaching itself what normal looks like. We turn the model on and let it track the equipment over time.” ENVISIONING AN AI FUTURE Equipping both workers and managers to implement and utilize emerging technologies will be the next big challenge for industry, particularly given the speed in which these technologies are evolving. In that respect, Andrew Schwarz, a professor in LSU’s E. J. Ourso College of Business, is ahead of the game. Some five years ago, Schwarz envisioned that AI would become immensely important in the corporate world. That’s when he spearheaded a new “Emerging Technologies” specialization in the school’s Executive MBA program and included a course in AI strategy as part of the curriculum. The coursework also focuses on cloud computing, cybersecurity, policies, programs and governance. In his MBA class, Schwarz focuses less on the technical COILA LAFLEUR, enterprise architect, ExxonMobil Baton Rouge components and more on “making the business case” for AI. He has students complete an applied project where they incorporate AI into their own organizations. They then talk DON KADAIR

“We’re a great playground for new solutions.”

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COVER STORY

THE AI GLOSSARY Artificial Intelligence (AI) Leverages computers and machines to mimic the problem-solving and decision-making capabilities of the human mind.

ChatGPT An artificial intelligence chatbot technology that can process natural human language and generate a response.

Digital Twin A virtual representation of an object or system that spans its lifecycle, is updated from real-time data, and uses simulation, machine learning and reasoning to help decision making.

Emerging Technologies Technologies that are currently developing, or that are expected to be available within the next 5 to 10 years.

Generative AI A type of artificial intelligence technology that can produce various types of content, including text, imagery, audio and synthetic data.

Local Industries Make a Significant Impact on Southwest Louisiana Local industries have a significant economic impact in Southwest Louisiana. Over $2 billion in annual earnings in SWLA are a result of 10,000 industrial jobs for direct employees and contractors, then another 17,000 associated jobs in the region thanks to industries. Local industries provide generous donations to education and non-profit organizations, and they are 17 of the top 20 property tax payers in Calcasieu Parish. Lake Area Industry Alliance is the umbrella organization between its 24 industrial members and our local community, government officials, educators, business leaders and nonprofit organizations. LAIA will continue to be a conduit of communication to enhance industrial advancements along with partnerships within the community.

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Industrial Internet of Things An ecosystem of devices, sensors, applications and associated networking equipment that work together to collect, monitor and analyze data from industrial operations.

Large Language Models (LLMs) Deep learning algorithms that can recognize, summarize, translate, predict and generate content using very large datasets.

Machine Learning A branch of artificial intelligence and computer science that focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy.

Robotics A branch of engineering and computer science that involves the conception, design, manufacture and operation of robots.

Virtual Reality A computer-generated environment with scenes and objects that appear to be real, making the user feel they are immersed in their surroundings.

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COVER STORY about how they would go through a transformation to achieve their objectives. Most of those in his class are executive MBA students and online executives, many coming from the petrochemical space. “The class requires them to understand the tech and the organizational challenges associated with it,” he adds. “It’s more about building resiliency in your organization. There’s a misconception that AI will automate processes and therefore be used to cut jobs. But if you’re using tech to cut jobs, you will be disappointed. You’re merely repurposing your workers to higher level positions. It’s making your workforce more competitive by allowing them to focus on the insights that matter.” Nevertheless, determining what objectives can be accomplished with AI is not an easy task for industrial owners. “You have to figure out if you’re using AI to grow your business, smooth your processes or if there’s some other underlying driver,” he adds. “You must start with the business case first. Once you start to unpack that, you start to identify sources of data and figure out where the data will need to come from to meet those objectives. That’s the beginning of adopting AI. The mechanisms and model-

“Someone asked, ‘Who will be the first to build a functional digital twin and keep it up to date?’ We took that as a challenge and began making local investments to move in that direction.” DON KADAIR

DAVID MUSTAIN, digitalization and innovation lead, Shell Geismar

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COVER STORY ing are a whole different category of decisions.” Schwarz predicts that AI will ultimately be integrated into all organizations, and that manufacturing and the industrial market will be revolutionized in the process. “But you don’t have to go all in,” he adds. “You can start small and learn, then expand based upon what’s good for your organization. The more you get into it, the more you’ll realize its potential.” OVERCOMING RESISTANCE New technologies are great but mean nothing if companies can’t get “buy in” from those using them, says ExxonMobil’s LaFleur. “If your users don’t understand the benefits of the new technology, then you’re not going to get any value out of it,” she says. “Adoption is something that we heavily focus on at ExxonMobil, and I think we’re doing a good job at that.” ExxonMobil assigns a change management advisor to every IT-related initiative, who in turn

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works closely with the end users to ensure that the change is fully implemented. In the process, they seek to show them how the technology will make their lives more productive, as well as generate value for the company. Additionally, they support workers through the transition process by providing the training or tools that they’ll need. Equally critical, they incorporate the new technology into the onboarding process for new hires. “If you don’t get people ready to change the way they work, then the technology won’t be integrated into their daily processes,” LaFleur says. “We have multiple examples of good solutions that were developed, but we didn’t target the change in the right way, so they never got used.” Shell’s Mustain says there are other obstacles to overcome, including a sometimes-steep technical learning curve and a certain amount of financial risk should the technology be deployed too soon or unnecessarily.

“There’s a misconception that AI will automate processes and therefore be used to cut jobs. But if you’re using tech to cut jobs, you will be disappointed. You’re merely repurposing your workers to higher level positions.” ANDREW SCHWARZ, professor, LSU E. J. Ourso College of Business

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DON KADAIR

COVER STORY “Is it more important to be the first to apply the technology or more important to guarantee long term success? Then there’s a change management side of it … are we willing to change our behaviors and trust the technology?” Henry Hays, co-founder of DisruptREADY in Baton Rouge, agrees that implementing technology for the sake of technology can be counterproductive. “But companies shouldn’t sit on the sidelines either,” Hays says. “We always tell people that AI won’t take your job; someone who knows how to use AI will take your job. People with a positive mindset on this change will probably win.” DisruptREADY is a strategic advisory firm that helps executive teams keep up with the rapidly evolving world of technology. “New technologies will come at you fast so you need to have the ability—under roof—to assess and figure out what to do with it, as well as help decide if you should start using it,” he adds.

“If you spin it the right way, the young folks will come looking for you as opposed to other businesses. The time is now to step into this. Kodak should’ve been Instagram today, but they decided to keep selling camera film. And Blockbuster waited on the sidelines as its industry evolved and now they’re no longer in business. They did not see the warning signs.” ExxonMobil’s LaFleur is excited about a future where new technologies will transform the industrial workspace. However, some owners are failing to realize its full potential. “We’re underutilizing things such as AI and robotics,” she adds. “I talk with my industry counterparts a lot about that. These technologies are going to change the way people work in a good way. Humans will be able to do what they do best, and these new technologies will handle all the mundane, repetitive and dangerous tasks. That’s what gets me up in the morning.”

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FUEL OF THE FUTURE: H2theFuture’s eight participating community colleges are collaborating to identify needs and objectives for a hydrogen future in Louisiana.

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NEWS: SUSTAINABILITY

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The case for hydrogen The H2theFuture initiative is working to make Louisiana the epicenter of the hydrogen universe. BY SAM BARNES

n hopes of building a oneof-its-kind clean hydrogen energy cluster in south Louisiana, the multipronged H2theFuture initiative is gradually taking shape. Ultimately, all 25 of the universities, economic development agencies and workforce groups coordinating the $75 million effort hope to make Louisiana the epicenter of the hydrogen universe. H2theFuture was the brainchild of GNO Inc., which pursued and was ultimately awarded a U.S. Economic Development Administration grant as part of its “Build Back Better” challenge in 2022. The $50 million grant was matched with $25 million from the state of Louisiana. Lacy McManus, executive director of the newly created GNO Inc. entity Future Energy, says all five of H2theFuture’s work streams are making measurable progress, including: •A research component under the direction of UNO, LSU, ULL and Nichols State University •A collaborative space at UNO’s Louisiana Wind Energy Hub, managed by Nexus Louisiana •A business development component managed by GNO Inc. and the Baton Rouge Area Chamber •A workforce component managed by the Louisiana Community & Technical College System •A pilot project to construct the nation’s first e-methanol fueling barge at the Port of South Louisiana McManus joined the team in January to supervise the initia-

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tive, along with other efforts in the energy transition space. She is particularly excited about the potential of wind power to create green hydrogen as industrial feedstock. In theory, water from the Gulf of Mexico would be extracted and desalinated, then separated into hydrogen and pure oxygen by an electrolyzer powered by an offshore wind turbine. The hydrogen would then be liquefied and piped to shore for use in the production of ammonia or in other processes. Nevertheless, new technologies mean little if they aren’t marketable. “We can have all these ambitious goals, but if they don’t align with the balance sheets of our private sector industry partners, they’re not going to fly,” she adds. “It must be an ideal marriage between all the parties for it to truly work. “That’s what H2theFuture is all about: Getting us to that point of equilibrium between those driving objectives.” To facilitate the process, GNO Inc. recently hired an “innovation consultant” to assess research opportunities in higher education, as well as to gauge the potential of commercializing those outcomes.

CONNECTING THE DOTS A primary goal of H2theFuture is connecting research opportunities with potential investors. As such, the Baton Rouge Area Chamber is spearheading the business development component of H2theFuture by leading a coalition of economic development groups in connecting industry with new technology platforms.

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NEWS: SUSTAINABILITY

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“We can have all these ambitious goals, but if they don’t align with the balance sheets of our private sector industry partners, they’re not going to fly.” LACY MCMANUS, executive director, GNO Inc.’s Future Energy

The first such program was held in early October at Dillard University in New Orleans. From those 50 companies, OHUB will select five finalists to receive from $50,000 to $100,000 in seed money, with the winners announced during New Orleans Entrepreneur Week March 11-16, 2024. For them to be successful, however, more money will be needed. “OHUB is doing the early work,” Sampson says. “We really want venture capitalists in the region to help with the rest. That’s why I think the partnership with GNO is so critical to our program. They’ll help with making these introductions to other companies or organizations.” CHERYL GERBER

Over the last six months, BRAC has met with other regional economic development agencies from New Orleans to Lake Charles to develop goals and objectives. Each organization designated a point person to participate in the discussions. “Our first objective has been to take inventory of the companies and workforce that we have here,” says Russell Richardson, BRAC’s senior vice president of business development. “As a multiregional team, we need to use those assets to grow the opportunities in the South Louisiana energy space.” Britt Bowker, BRAC’s director of recruitment, sees the initiative as an opportunity to attract more state investment in the process. “We have a readily available workforce and have training programs in place that can ensure that their skills are transferable,” she adds. “We are creating a narrative to show what Louisiana is capable of doing.” At the end of the day, BRAC’s overarching objective is to help companies achieve their individual goals to decarbonize, while also creating new jobs and investments. “Our role is to link industry together with these platforms and help them map out their strategies for achieving net zero,” says Adam Knapp, BRAC’s president and CEO. “It also positions us as a global leader for jobs in this industry.” Of course, investment means little if Louisiana workers can’t do the work. As such, H2theFuture’s eight participating community colleges are collaborating to identify needs and objectives for a hydrogen future in Louisiana. Some results are already coming to fruition—River Parishes Community College in Gonzales is seeking to update its process technology curriculum to address a new hydrogen future, and Nunez Community College in Chalmette plans to add a wind turbine technician curriculum in Q1 2024.

Enabling budding entrepreneurs is another important piece of the puzzle, says Rodney Sampson, chairman and CEO of Opportunity Hub and a Tulane University alumnus. His Atlantabased group has expanded its accelerator operations to New Orleans through H2theFuture, focusing on start-ups and entrepreneurs in the energy space. OHUB builds technology startup ecosystems from the ground up. “Depending on the city, market or region, we execute a place making and programming approach at the request of our respected partners,” Sampson says.

“We focus on the innovation of new company start-ups, as well as the development of workforce at the local level. The goal is to build a strong community, or ecosystem, around the innovation.” OHUB sponsors monthly events that bring together new energy or climate tech entrepreneurs, as well as potential investors. “We also offer a four-month program where we provide detailed training to 50 companies looking to take their ideas to market,” Sampson says. “The goal is to help founders get their products built out, to fine-tune their pitch in order to raise capital or to get customers.”

A RESEARCH HOTBED Louisiana’s universities are currently positioning themselves as hubs of decarbonization research, whether in hydrogen, CCUS or renewable fuels. Some of that had been made possible through H2theFuture funding, while other initiatives are pursuing other funding sources. LSU’s Cain Department of Chemical Engineering recently received $3 million from the EDA grant to research carbon utilization, as opposed to sequestration. A major aspect of its research will 10/12 INDUSTRY REPORT • FALL 2023

NEWS: SUSTAINABILITY

WHO WILL DESIGN THE E-METHANOL REFUELING BARGE AT THE PORT OF SOUTH LOUISIANA?

“(The refueling barge) will be the first in the nation and second in the world.” DON KADAIR

PAUL MATTHEWS, CEO, Port of South Louisiana

A PILOT PROJECT to be funded by H2theFuture—a nearly $7 million e-methanol refueling barge at the Port of South Louisiana—will soon move forward. In September, the port selected Elliott Bay Design Group in New Orleans to design the barge. Port CEO Paul Matthews says designs are projected to be completed by March 2024. About $3.4 million in U.S. Economic Development Administration money will help fund the construction, with the state putting up the remaining $3.4 million match. E-methanol is produced by combining green hydrogen and capture carbon dioxide. The process has the potential to mitigate carbon emissions when used as a fuel. “(The refueling barge) will be the first in the nation and second in the world,” Matthews says. “The market is showing there’s a continued demand for alternative fuel sources as companies try to reduce or eliminate their carbon footprint. When you have this fuel with zero net carbon emissions, it attracts more ships and more activity in the river.” The barge will be fleeted within the Port of South Louisiana’s jurisdiction and will provide fuel to tugboats and other vessels. Says Matthews: “A landside facility will transfer fuel from a storage facility onto the barge.” The fuel source remains unknown. “It could come from existing industry source,” he says, “but that will be determined as we go through the process.”

“Land and expand” is a perfectly suitable phrase for Five-S Group. With its largest project award in company history, executive team growth, and ten-year business anniversary being achieved this year, a new path is set to take shape for Five-S in 2024. Its first Prime Federal contract award, exclusive stone quarry, and multiple awards and recognitions obtained this year are just the beginning phases of the success plan that Five-S will execute. FSGRP.COM

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focus on electrolysis in the ethane-to-ethylene conversion process, whereby two electrodes separate a compound into its more basic components. And while not directly related to H2theFuture, an LSU-led statewide team of universities, community and technical colleges, agencies and industry— dubbed the Engine for Louisiana Innovation and Transition of Energy (ELITE)—in June was named one of five finalists for a $160 million National Science Foundation grant to support energy transition and decarbonization through technology and talent development across Louisiana’s industrial corridor. Additionally, Louisiana, Arkansas and Oklahoma formed a regional partnership in 2022— the HALO Hydrogen Hub—to compete for $7 billion in Infrastructure Investment and Jobs

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“It’s an all-handson deck kind of an approach to making sure that the right workforce is produced.” RAMESH KOLLURU, vice president of research, innovation and economic development, University of Louisiana at Lafayette

Act funding through the U.S. Department of Energy. Should they receive the funding, the three-state group plans to employ publicprivate partnerships to develop an extensive hydrogen network that will ultimately be integrated into a national network. Through the HALO initiative, the University of Louisiana at Lafayette would lead an effort to create economic benefits for disadvantaged communities. Dr.

Ramesh Kolluru, vice president of research, innovation and economic development at UL Lafayette, says HALO intends to conscientiously attract and build an ecosystem of producers and consumers. “HALO is focused on the buildout of that ecosystem across these three states, but we want to do it right,” Kolluru says. “The effort will focus on making sure that wherever projects are implemented, that their benefits are felt

by those communities that might have been negatively impacted in the past.” Through HALO, a network of universities, community colleges, and trade- and community-based organizations across all three states would collaboratively develop innovations to fuel the next generation of hydrogen economies and technologies, while also developing a workforce within impacted communities. “It’s an all-hands-on deck kind of an approach to making sure that the right workforce is produced, one that looks like the communities where these projects are located,” Kolluru says. He says much of the funding would go to the communities where these projects are implemented. “Once we’re awarded, the focus of the world will be on this tri-state region of Arkansas, Louisiana and Oklahoma. That will attract significant additional investment. That’s our hope; that’s our strategy.”

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NEWS: MANAGEMENT

Cash pinch Uncertain project economics can put a contractor’s profitability at risk. Here’s how some are navigating it.

n industrial contractor’s ability to maintain a healthy profit margin can be tenuous, at best, in an age of fluctuating material prices, rising wages and escalating interest rates. Material prices continued to rise in the latest monthly data available at press time, increasing by 1.5% in August, according to the Bureau of Labor Statistics’ Producer Price Index. That continues a trend that shows no sign of stopping. “Anyone who thought that excess inflation would simply go away later this year has been rudely awakened,” ABC Chief Economist Anirban Basu noted in a press release. “Price growth continues to be problematic. While energy prices will grab headlines, items like concrete and switchgear have also exhibited inflationary tendencies.” Escalating interest rates are bringing their own challenges, particularly for contractors that depend heavily on loans to fund their projects. For many, the Federal Reserve’s aggressive rate hikes have led to organizational changes and an increased focus on cash management. The rising interest rates pose a specific threat to a contractor’s profitability, since their performance is profoundly affected by the management of cash flow. No matter the business environment, though, laying the groundwork for a profitable project begins during contract negotiations, says Jay Montalbano, managing partner of accounting and consulting firm Hannis T. Bourgeois in Baton Rouge. One thing’s for certain: Given the wildly fluctuating material prices of the last couple of years, contractors should ensure that their contracts don’t lock in prices for more than 90 days.

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Fortunately, “contractors have a bit of an edge right now,” Montalbano says, because of the current construction boom and ongoing labor shortages. “They’re in a better position to negotiate. In one instance, a plant owner went to the contractor and asked what it would take to keep their people on site. They’re recognizing that they need to pay more.” Owners are also negotiating for increased benefits, such as insurance and time off, particularly with those “nested” industrial contractors who have had a presence in the plant for years.

INTEREST RATES AND CASH FLOW Managing cash flow is another critical piece of the profitability puzzle, but it can be a tricky proposition in today’s high interest rate environment. That’s because many contractors need credit to finance working capital. It was a different scenario just two years ago. “You almost didn’t need cash flow management because interest rates were so low,” Montalbano says. “Now, rates are creeping up and cash flow management is huge because that interest expense will kill you.” That, in turn, can negatively impact a contractor’s ability to price projects competitively. The situation is prompting many contractors to re-examine their contracts. “Those contractors that are heavy into ‘cost-plus’ contracts (whereby they are reimbursed for expenses plus a pre-determined profit), experience more of a cash flow drain,” he adds. “They are billing the customer monthly and the plant might pay 60 days later, so they’re floating two to three months’ worth of payroll at any given time. That’s difficult from a cash flow perspective.” On the other hand, contractors

“In markets where we’re growing our operation, we’re consuming more cash and therefore cash flow becomes more important.”

DON KADAIR

BY SAM BARNES

DANE BAILEY, CFO, Performance Contractors

that predominately enter into lump sum (fixed price) contracts have the ability to “front-load” billings. “Lump sum contracts have risks, but you have more flexibility,” Montalbano says. “You can bill by milestones, by percentage of completion or put clauses in the contracts to allow for upfront mobilization or material purchases. It allows the contractors to be cash heavy at the front end of the contracts.” For Performance Contractors in Baton Rouge, the importance of cash flow depends upon the situation. “In markets where we’re growing our operation, we’re consuming more cash and therefore cash flow becomes more important,” says Performance CFO Dane Bailey. “And if it’s going to be an aggressively scheduled project, we push a little harder on the payment terms … even if we must make concessions in other parts of the contract.” That has led to some rather

innovative approaches to generating cash flow. One area of recent success for Performance? Getting a cash advance from the owner before a project begins. The idea originated when the contractor needed a “cash positive” situation to execute a project. “We partner with a surety to bond the advance, thereby giving the owner a level of comfort that their advance payment is not at risk,” Bailey says. “In the process, it gives us the working capital to go out and staff those aggressively scheduled projects.”

THE COST OF CHANGE ORDERS For industrial contractors, money can be made or lost based upon how well they manage change orders. Mismanaged change orders—a failure to recognize or communicate when a change in scope has occurred—can lead to disputes with project owners and increased project costs. Contractors should therefore ensure that they are not over1012industryreport.com

NEWS: MANAGEMENT exposed to unapproved scopes of work. That’s a difficult proposition at the jobsite, as supervisors executing a fast-paced project might be tempted to delay documenting changes to avoid slowing the project. “It can be a challenge, but we preach to our folks that they should have a disciplined and established procedure at the front end of the project,” Bailey says. “As part of the project Jay Montalbano, managing kickoff with the owner, we partner, Hannis T. Bourgeois lay out the expectations around change management, including the process for getting changes approved prior more transparency and visibility to the execution of the work. into the status of change orders and change order requests. “That “There’s a temptation someway, there’s visibility at a higher times to get the job done and let level into the pending change the dust settle at the end,” he adds. orders on a particular project,” he “It’s about fighting against that says. urge to make sure we’re taking The company has also made a care of our business along the significant push to remove “inforway.” mation silos” in the organization To facilitate the process, Perto facilitate the cross sharing of formance uses tools that provide

DON KADAIR

“Contractors have a bit of an edge right now. They’re in a better position to negotiate.”

data. “We’re making sure that we’re getting the data that’s being collected out in the field in a format where we can report on it, meet about it and monitor it on a weekly basis,” he adds.

OTHER TIPS It seems simple, perhaps, but efficiently managing the billing and collections process through-

out the entire cash cycle can have a huge impact on cash flow and profitability. “When you get busy you do have those issues,” Bailey says. “You have to stay on top of the billing and stay on top of purchase orders from clients so that there are no nasty surprises. Then make sure that collections is a regular part of the site discussions and weekly updates, and keep that in front of the owner to make sure that they’re aware of where every invoice is in the payment cycle.” Hannis T. Bourgeois’ Montalbano says value engineering input can also provide a significant boost to project profitability. In that case, the contractor finds ways to introduce cost effective alternatives before a project begins. “The owner can benefit from that when it’s a Time & Materials contract (which sets prices for materials and an hourly rate),” he adds. “And if we’re talking about a significant amount of savings, that’s going to change the output. The owner can then share the savings.”

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SCAN TO CH ECK OUT OU R WORK

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NEWS: ENERGY IN THE WIND: Lackluster bidding in an August lease auction for offshore wind in the Gulf of Mexico underscored several problems facing the industry as a whole, as companies struggle with soaring costs, rising interest rates and permitting delays.

Variable winds

BY SAM BARNES

n late August, it became starkly apparent that the economics for offshore wind in the Gulf of Mexico aren’t quite where they need to be. The Bureau of Ocean Energy Management’s first lease auction ended with just one of three available tracts sold. German company RWE Renewables purchased the tract off the coast of Lake Charles for $5.6 million, while two other tracts near Galveston received no bidders at all. The lackluster bidding underscored several problems facing the offshore wind industry as a whole, as companies struggle with soaring costs, rising interest rates and permitting delays. That’s been enough to prompt some companies to tap the brakes

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on entering the market. Eric Danos, owner and CEO of Danos Ventures, a subsidiary of oil and gas service company Danos located in Gray, Louisiana, says the dismal showing is indicative of the challenges the industry faces. That’s why he’s backing off the pursuit of wind energy for now as he waits for the industry to mature. “The costs have gone up significantly and, fundamentally, the Gulf of Mexico hasn’t been an ideal market for wind energy,” Danos says. “We don’t need to be an early adopter. There’s too much risk in the market and the fundamentals still need to be worked out. We are taking a ‘wait and see’ approach.” It comes down to dollars and cents, Danos says. “That’s why a lot

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What does a lackluster lease sale mean for the future of wind energy in the Gulf of Mexico?

of the contracts on the East Coast are being renegotiated,” he adds. “They are happy to have wind energy, but they want it at the same or lower cost than carbon field energy. That’s the dilemma now.” Danos says his company will instead double down on oil and gas. “We see some tremendous opportunities to grow our services portfolio in traditional oil and gas,” Danos says. “We will continue to do that as long as the market creates those opportunities for us. There will ultimately be a transition to renewable energy, but I think it’s still a way out for us.” Undeterred, Jim Kendall, regional director of BOEM’s Gulf of Mexico Regional Office in New Orleans, says while there are certain economic and technolog-

ical hurdles to clear—lower wind speeds and the threat of hurricanes, to name a few—those could be offset by other benefits, such as lower operation and maintenance costs. “The Gulf is well-positioned to transition to a renewable energy future,” Kendall says. “The region’s existing energy infrastructure, workforce and businesses expertise in offshore operations can immediately benefit offshore wind development. “The transition to renewable energy is already occurring in the Gulf, and the conventional energy sector is already playing a key role,” he adds, pointing to the fabrication of steel jacket foundations for the Block Island Wind Farm by Gulf Island Fabrication, 10/12 INDUSTRY REPORT • FALL 2023

and Dominion Energy’s development of an offshore wind turbine installation vessel in Brownsville, Texas.

LOOKING STATESIDE While it’s obvious that the market dynamics are less than ideal, proponents say the offshore wind space just needs time to mature. Harry Vorhoff, Louisiana’s deputy director of coastal activities, points to the growing potential for wind power in Louisiana’s state waters (extending three miles offshore). Vorhoff, who also chairs the state’s Climate Initiatives Task Force, says the Department of Natural Resources is in talks with two offshore wind developers: Diamond Offshore Wind, a subsidiary of Mitsubishi Corpora36

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“We don’t need to be an early adopter. There’s too much risk in the market and the fundamentals still need to be worked out.” ERIC DANOS, CEO, Danos Ventures

tion, for a project off the coast of Jefferson and Lafourche parishes; and Kontiki Winds, owned by Norwegian developer Havram, for a project offshore Cameron and Vermillion parishes. Ultimately, Louisiana aims to install 5 GW of offshore wind by 2035. “They’re taking a page from the Carbon Capture playbook by directly negotiating operating agreements,” he adds. “The next step will be to firm up what the standard contract terms look like.

We’re still in the early stages of that.” Proponents also point out that there are certain incentives specific to Louisiana. There’s the potential, at least, for wind power to produce hydrogen for the state’s expansive industrial market. In that scenario, water from the Gulf of Mexico would be extracted and desalinated, then separated into hydrogen and pure oxygen by an electrolyzer powered by an offshore wind turbine. The hydrogen

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NEWS: ENERGY

would then be liquefied and piped to shore for use in the production of ammonia or in some other process. It’s mostly theoretical at the point; however, as the research continues on the practicality of the approach. Should it happen, though, Vorhoff says it could result in a perfect marriage between Louisiana’s industrial and wind power markets. “Louisiana is one of the highest per capita users of hydrogen in the U.S., mainly because we have petrochemical facilities and refineries that currently use hydrogen,” he adds. It would also serve the dual purpose of reducing carbon in the atmosphere. “Most hydrogen is extracted from natural gas, 1012industryreport.com

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10/12 INDUSTRY REPORT • FALL 2023

NEWS: NEWS: TECHNOLOGY ENERGY

COURTESY BUREAU OF OCEAN ENERGY MANAGEMENT

“The Gulf is well-positioned to transition to a renewable energy future.” JIM KENDALL, regional director, Bureau of Ocean Energy Management Gulf of Mexico Regional Office in New Orleans

FEW DISAGREE THAT the skillsets already possessed by Louisiana’s oil and gas workforce are easily transferrable to offshore wind. There are also supporting facilities, such as those at Port Fourchon, that are ideally situated with abundant available space for new manufacturing facilities. Public-private partnerships are also cropping up to support the growing market. RWE Renewables, winner of the recent offshore sale, has collaborated with GNO Inc. and the GNOwind Alliance to build a program that helps existing Louisiana oil and gas companies participate in the growing national supply chain for offshore wind. And recognizing the need for a new workforce pipeline, Nunez Community College in Chalmette partnered with Energy Innovation of Norway late last year to create curriculum for training wind tur-

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GEARING UP: Nunez Community College in Chalmette partnered with Energy Innovation of Norway late last year to create curriculum for training wind turbine technicians.

bine technicians. Tina Tinney, chancellor of the college, saw an opportunity during a June 2022 tour of the Block Island Wind Farm, sponsored by GNO Inc. “It opened our eyes to the opportunities around wind energy, renewable energy, and the offshore wind industry in Louisiana,” Tinney says. “We returned to explore where we would fit into that space.” They initiated a roundtable discussion with parish and economic development officials, as well as educational representatives, to determine what would make St. Bernard Parish more attractive to potential offshore developers. Workforce development was at the top of the list. “In Louisiana, we already know how to work offshore,” Tinney says. “It is a matter of giving workers the technical competencies.”

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READY, SET: LOUISIANA BEGINS BUILDING A WIND ENERGY WORKFORCE

thereby releasing carbon into the atmosphere,” Vorhoff says. “As companies look to reduce their greenhouse gas footprint and meet their emission reduction goals, there’s interest in purchasing this low- or no-carbon hydrogen. Some experts have shared that this is the best pathway to market.” Vorhoff acknowledges that the economics of offshore wind could be better, but “the biggest obstacles to this becoming a reality are technical, and they’re being worked out by engineers,” he adds. “We have a lower average wind speed compared to other coasts. We also have hurricanes, so they must be resilient to them. That is the problem statement that has been most discussed with the subject matter experts.” Louisiana also doesn’t have a clean power purchase requirement in place, as do East and West Coast states. “We don’t have a renewable portfolio standard,”

Nunez subsequently created a wind turbine technician program, where students can also receive Global Wind Organization (GWO) certifications. To turn it into reality, Nunez partnered with Energy Innovation to develop a curriculum and training center for the construction and maintenance of offshore wind turbines. “They are providing the GWO components of our curriculum, and we provide the wind turbine technician components,” Tinney says. “We married the two to develop an academic pathway.” The State Board of Regents approved the curriculum in June, which opened the door for students to receive federal financial aid. It will also be available as a dual enrollment course for high

school students. “We’re hoping to begin training in the fourth quarter, but realistically it might be first quarter 2024,” she adds. Tinney hopes to develop a critical workforce pipeline for the offshore wind market. “We want to make sure that it’s the people in our state who are trained and have those opportunities to get those high paying jobs,” she adds. “We want to be strategic and help employees in that niche. “While a lot of industry partners have developed their own training programs, they are incurring a large amount of debt to acquire all the training, equipment, supplies, personnel and certifications. We should be delivering that as a public service.”

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NEWS: ENERGY

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TRANSITION UNDERWAY: Gulf Island Fabrication’s creation of steel jacket foundations for the Block Island Wind Farm is an oft-cited example of how the transition to renewable energy is already occurring in the Gulf of Mexico.

DON KADAIR

he adds, “requiring that the state produce a certain amount of electricity from renewables or wind by a certain date.” And while state water leases have certain advantages over offshore federal leases, such as lower transportation and transmission costs, federal waters offer more acreage and offer the space for larger wind farms. It’s going to take time, no matter what happens, Vorhoff says. Even if an agreement is reached with a potential developer later this year, it could take years before a wind farm is operating in state waters. “Each developer will need to collect wind and environmental data for months to years, then make a design to submit it for permitting,” he adds. “It’s a multiyear process before you start construction. The construction itself isn’t protracted, but they must get all the information to design and lay out the wind, then go through permitting to minimize economic and environmental impacts.”

10/12 INDUSTRY REPORT • FALL 2023

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Louisiana Community and Technical College System a win-win for students and state

ct 151 of the Louisiana Legislature’s first Extraordinary Session of 1998 did something extraordinary indeed for the future of the state’s educational offerings: It facilitated the creation of the Louisiana Community and Technical College System, under which a vast network of local educational institutions would be governed more efficiently and productively. The new system was and still is a win-win for Louisiana’s businesses and its citizens. Now celebrating 25 years of serving local communities in all corners of the state, LCTCS is looking forward to an even brighter future. “Today, we are a comprehensive system that has 12 robust community colleges,” says LCTCS Governmental and Public Affairs Officer Chandler LeBoeuf. “We are able to better serve the students and meet their needs. We’re able to build programs more nimbly and more quickly. We’re able to get individuals into our training programs and out into the workforce, and we’re able to provide business and industry more support that addresses their needs.” The system’s colleges now offer more than 1,000 programs across the state, a dramatic jump from the approximately 140 programs that were in place when LCTCS was formed. Today, LCTCS serves more than 126,000 students on campuses within their own communities, providing convenient access to training that is affordable, flexible and often able to be

completed within a short timeframe. Initiatives such as the MJ Foster Promise Program, a $10.5 million annual state fund, provide financial support for those pursuing certain jobs in growing industry sectors. “We’ve helped our colleges become what we call community centers that offer various adult education programs, pathways to workforce training and technical diplomas as well as associate degrees and transfer opportunities to four-year institutions,” LeBoeuf says. “Over time, we’ve become a mighty system that is providing opportunities for individuals who are in poverty, bringing them to stability, and then they’re able to sustain their families through attaining high-demand credentials and good jobs. Ultimately, they’re contributing back to the economy.” LCTCS works closely with business and industry partners throughout the state, from energy and healthcare to manufacturing and transportation. “That’s a very important part of our mission—making sure that we understand the needs and workforce gaps that these partners have, and having them at the table providing feedback on curricula and what they are looking for when hiring,” LeBoeuf says.

The link between education and industry continues through customizable business and industry training programs. Working closely with companies, LCTCS develops new training programs and programs geared toward upskilling or reskilling current employees. Every step of the process—from program design to implementation to monitoring—can be handled by LCTCS experts, with a goal of satisfying specific performance objectives. “We stand ready to help business and industry partners solve their workforce challenges,” LeBoeuf says. “We look at it as an opportunity to provide them a trained workforce so they can continue their missions of serving their clients and their industries.” For more information about LCTCS, visit lctcs.edu.

S P EC I A L A DV E R T I S I N G S ECT I O N

LEADERS

O F I N D U ST RY 10/12 Industry Report shines a light on regional companies and organizations that make an impact in their fields and in their communities.

CITY OF ST. GABRIEL CORE BOILER AND MECHANICAL SERVICES LEE & ASSOCIATES NORTH AMERICAN HOSE AND FITTINGS PORT OF IBERIA TRIAD ELECTRIC & CONTROLS

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T R I A D E L ECT R I C & C O N T RO LS

TRAINING PROGRAM A BIG SUCCESS FOR TRIAD

any industries have been coping with shortages of highly skilled workers in recent years, making it a challenge to properly staff maintenance operations. At Triad Electric & Controls, company leaders identified this trend affecting their own ranks as well as the industrial facilities where the electrical contractor performs work. Maintenance operations require highly skilled personnel due to the inherent dangers in working in an operating facility. Triad understands the need to provide its clients with competent, trained maintenance technicians that can safely perform their jobs. Without a formal, accredited, advanced electrical maintenance training program available locally, Triad decided to take matters into its own hands. The company formed a maintenance training

subcommittee that included a team of highly experienced Triad supervisors and staff. The subcommittee met weekly for over a year to discuss how to craft a program to provide the necessary training. In partnership with Baton Rouge Community College and with help from industry experts, Triad developed a two-part, six-month accredited training initiative focused on electrical maintenance operations. Now in its second year, the program has proven a huge success. Triad participants have significant prior electrical experience and an interest in maintenance operations. They will become certified electrical maintenance personnel upon completion of both classes. Classes take place after work hours on BRCC’s Baton Rouge

campus, where participants are instructed on typical maintenance functions that include troubleshooting and preventative maintenance of all types of electrical equipment and systems found in an industrial facility. “There isn’t anything out there like it,” says Triad President Brian Bordelon. “We want to target people who are already in the industry and have years of experience but may not have formal training in all the different aspects of electrical work. Our goal is to identify those people and help them better themselves and the facilities where they work.” Offering instruction and certification through a third party is significant, says Business Development Manager Lane Word. “They can bring it anywhere,” Word says. “This is for the

TOP EXECUTIVE: BRIAN BORDELON, PRESIDENT BATON ROUGE, LA 70815 • 225.923.0604 • THENEWTRONGROUP.COM 42

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“There isn’t anything out there like it. There are four-year classes where it’s almost a full-time effort, just like going to college. We want to target people that are already in the industry and have a lot of experience but may not have formal training in all the different aspects of electrical work.” BRIAN BORDELON, TRIAD PRESIDENT betterment of the industry as a whole.” At a time of growing labor shortages, the training initiative could help fill critical gaps. “There’s so much work available in industry, not only here in Louisiana but across the country. Just with electricians, the projection is we’re going to be 6,000 short in Louisiana,” says Human Resources Manager Todd Modicut. “We need more training to supply the right employees and retain them.” “Traditionally, our clients performed their own maintenance. They recruited and developed their own employees until retirement,” adds Training Coordinator Jeremy McMichael. “But recently, with COVID and the retirement of Baby Boomers, it has created a bigger need than they could fill.” Triad Electric & Controls, a Newtron Group 1012industryreport.com

company headquartered in Baton Rouge, is an industry leader in workforce development and recently earned awards from the Greater Baton Rouge Industry Alliance for its efforts. The company employs about 4,500 people across the country, with 1,000 working in the Greater Baton Rouge area. Senior Consultant Glen Redd says it is important to invest in employees and provide them educational opportunities. Triad and its clients are reaping many benefits stemming from the training program. “Having well-trained people for jobs in these facilities gives us an advantage over our competition. And the plants recognize what Triad is doing to better the industry,” he says. “It’s a win-win-win for everyone.”

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C I T Y O F S T. G A B R I E L

BENEFITS OF LOCAL INDUSTRY HAVE GLOBAL REACH

ocated on the banks of the Mississippi River in Iberville Parish, the City of St. Gabriel is a powerhouse of industrial activity. With numerous chemical plants and other facilities, St. Gabriel is the starting point for a wide variety of products that are critical to the everyday lives of people around the globe. “These products purify our drinking water, protect our food crops and help them generate larger yields, refrigerate our food, air condition our homes and cars, import life-improving and lifesaving pharmaceuticals, all types of packaging that can extend the shelf life of products, and plastics that make automobiles both safer and more fuel efficient,” says Mayor

Lionel Johnson Jr. “All this is done in our city, and it improves the quality of life for people here and all over the world.” Johnson is proud of the synergistic relationship that exists between the city and local industry. Much of the city’s tax revenue comes from industry, providing dollars for streets, sidewalks, parks, drainage, sewage, public safety, activities for youth and resources for the elderly. Many St. Gabriel residents and those from the surrounding area are employed at local plants and with contractors working at those facilities. “These are generally high-paying jobs with excellent benefits,” Johnson says. “In addition,

the multiplier impact of each plant job is significant. Local companies rely on business from the plants and their employees, and these local businesses hire more workers to meet that demand.” The mayor says industrial facilities in his city have more than $1 billion in economic impact to Iberville, Ascension and East Baton Rouge parishes. The benefits of industry in St. Gabriel extend beyond economics, however, Johnson says. Plants frequently offer monetary and volunteer support for community initiatives, including educational programs, recreation, elderly services and scholarships. This support is

TOP EXECUTIVE: Lionel Johnson Jr., Mayor 5035 IBERVILLE ST. • ST. GABRIEL, LA 70776 • 225.642.9600 • CITYOFSTGABRIEL.US 44

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“Our city sits strategically on the Mississippi River, the greatest economic transportation artery in the western hemisphere. It gives industry access to markets up and down the Mississippi River corridor and to markets all over the world.” MAYOR LIONEL JOHNSON JR. funneled through East Iberville INC (Industry Neighbor Companies). So what makes St. Gabriel an ideal place for these companies to do business? “Our city sits strategically on the Mississippi River, the greatest economic transportation artery in the western hemisphere,” Johnson says. “It gives industry access to markets up and down the Mississippi River corridor and to markets all over the world.” The city also offers a supportive environment for industry. “My administration has supported industry growth and expansion while holding industry accountable for safe and environmentally responsible operations,” Johnson says. Investment continues to pour into St. Gabriel. Koura is planning a multibillion-dollar 1012industryreport.com

expansion of its fluorochemical complex, and the Nutrien nitrogen and phosphate facility also has a significant expansion in the works. Syngenta, which manufactures active ingredients used for crop protection, is planning a modernization project. A hydrogen liquefaction facility is being built by Plug Power at Olin. Johnson believes all of these developments are good for residents. “We take the approach that investment and modernization of industry is important to our community,” he says. “When industry invests, expands and modernizes, it means that the facilities are installing new and more modern technology, and they become safer and cleaner.”

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N O RT H A M E R I CA N H OS E A N D F I T T I N GS

BUILDING SOLID CUSTOMER RELATIONSHIPS

ince opening its doors in March 2004, North American Hose and Fittings has been a top source in the Baton Rouge area for hose assemblies and various fittings used in construction, equipment, oil and gas, chemical, marine, manufacturing and many other trades. In 2021, A.J. Best and Jerry Valentine were presented with the opportunity to purchase the company. “We recognized this as an opportunity to build upon a foundation that has been established for 17 years locally in the hose and fitting industry,” Best says. “We knew we could grow and expand upon the reputable name, and also bring a new and revitalized energy to the business.” “We pride ourselves in being able to work directly with our customers both in the office and in the field to determine the exact products they need,” Valentine says. “We also understand that every

customer’s needs are different. We want to build a relationship with our customers and provide a more personal experience.” This is something Jerry and A.J. take seriously, going to such lengths as spending two days with a client. “We went over his entire company — how he works, what he needs and making sure he gets the right products from us,” Valentine says. That type of dedication to the customer is a key part of the company culture Valentine and Best have fostered. They have 10 employees, all of whom share a desire to provide a high-quality service, Best says. Another thing that sets North American Hose and Fittings apart is its inventory in and experience with metric hydraulic hose assemblies and adapters. This allows them to provide service to companies using a wider range of equipment

that was manufactured overseas with metric components, Valentine explains. “We’ve been friends since we were freshmen at Denham Springs High School, and we share the same goals and ambitions. As owners, we complement each other very well. We allow ourselves to lean on our strengths individually in business to create a great partnership,” Best says. Although the two share a background in equipment sales, neither worked for the company before they purchased it. “We can contribute our knowledge in service and previous industrial experience to the growth of our company,” Best says. “We’re thankful for the continued support from existing customers and look forward to working with many new customers as we continue to grow.”

Top Executives: Jerry Valentine & AJ Best, Co-Owners 6600 AIRLINE HWY. • BATON ROUGE, LA 70805 • 225.383.9213 • NAHOSE.COM 46

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(From left) Jeff Clement, Port of Iberia Manager for Turner Industries, and Craig Romero, Executive Director of the Port of Iberia

PORT OF IBERIA

TAKING THE PORT TO ANOTHER LEVEL

he Port of Iberia has long been an important part of the south Louisiana economy and industrial landscape. But with work underway to deepen its access channel to the Gulf of Mexico, the port is poised to be an even stronger force in the area. Millions of dollars have been secured to dredge the Acadiana Gulf of Mexico Access Channel, or AGMAC, and the first phase of work is happening now. “That is going to take the Port of Iberia to another level,” says Craig Romero, executive director of the port. “The water depth will allow for the larger vessels that are needed to service operations in the Gulf. It will allow us to handle shipments going and coming from offshore.”

INDUSTRY IS TAKING NOTICE The port includes an industrial and manufacturing complex occupied by dozens

of companies, many tied to the oil and gas industry. With the channel being deepened, companies like Louisiana’s Turner Industries, England’s Seadrill and South Africa’s Global Riser are taking notice and signing leases at the port. With oil and gas exploration moving progressively farther into the Gulf of Mexico in recent years, the port—like much of south Louisiana—has had to adapt. “We have been thinking in terms of repurposing the port,” Romero says. “The industry is in deeper and deeper water—a totally different operation. And that’s the kind of thing we’re going after.” Today, the port employs about 2,500 people. Romero is optimistic there will soon be many new job opportunities at the port as it adjusts to changing needs and attracts new companies.

GLOBAL IMPACT The Port of Iberia has a long record of making a national and worldwide impact. Two decades ago, the port landed some fabrication jobs for equipment that would be sent to Alaska. It competed with 150 ports for the work and was a finalist alongside the Port of Seattle. “Stop and think about how close Seattle, Washington is to Alaska. We overcame those logistics,” Romero says. “That really put the Port of Iberia on the map and turned some heads because the delivery was met on time, and the work ethic of the people down here helps a lot.” Besides having access to the dedicated, skilled labor force in south Louisiana, the port has other advantages, including close proximity to ground, rail, air and water transportation.

Top Executive: Craig Romero, Executive Director 4611 S. LEWIS ST • NEW IBERIA, LA 70560 • 337.364.1065 • PORTOFIBERIA.COM

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C O R E BO I L E R A N D M EC H A N I CA L S E RV I C ES

PROFESSIONALISM AND EXCEPTIONAL SERVICE

t plants manufacturing products such as oil and gas, plants generating energy, and wood mills producing paper and other consumer goods, one of the most critical pieces of equipment is a steam boiler, which generates heat and energy. “People don’t see the mechanical side,” says Luis Alvarado, the operations manager for CORE Boiler and Mechanical Services in Prairieville. “There’s a lot of equipment required to operate these facilities.”

SPECIALTY SERVICES CORE specializes in boiler erection, repairs, and maintenance, but it places just as much emphasis on customer service and building relationships with clients, according to Paola Alvarado, the company’s president. In addition to boiler repair, CORE offers services such as piping fabrication and installation, specialty welding services, furnace and process

heater rebuilds and repairs, mechanical work, boiler services ranging from single tube repairs to complete retubing, maintenance and repairs on HRSG units, and much more. “We don’t have a sales team, and we don’t have a large customer base,” Paola says. “The customers we have sustain us through referrals because of the exceptional service and professionalism we provide. They know that when they’re in a bind, we are the people to call. Whether it’s day, night, weekends, or holidays, we’ll have a crew there the same day to get them back online.” Paola, an industrial engineer, founded the company in 2019 alongside her husband, Luis, and Kerry Ponthier, a longtime friend. CORE has experienced rapid growth, with approximately 40 employees, but during busy periods, it can employ up to 120 people to handle emergency service. While many of CORE’s clients are local, the

company also conducts international work, including projects in Panama.

STRONG WORK ETHIC Transparency with customers and handson involvement in projects have been crucial in establishing a successful company from the ground up. “We started from nothing, and fortunately, with our ethics and hard work, we were able to grow the company from zero to $8 million in sales last year,” she says. Paola and Luis met on a job site and are both deeply passionate about their work. Just as relationships have proven to be key to the company’s success, the couple’s relationship has also been an asset in their management roles at CORE. “We understand each other’s strengths and position ourselves to maximize them,” Paola says. “Where we’re weak, that’s where we support each other.”

Top Executives: Paola Alvarado, President; Luis Alvarado, Operations Manager; Kerry Ponthier, District Manager 16079 AIRLINE HWY. • PRAIRIEVILLE, LA 70769 • 225.673.2673 • CORE-BOILER.COM 48

10/12 INDUSTRY REPORT • FALL 2023

1012industryreport.com

SPECIAL ADVERTISING SECTION

L E E & A S S O C I AT E S

BUILDING TRUST, DELIVERING VALUE

van Scroggs, SIOR, CCIM, set himself apart from the crowd early in his real estate career. He earned prestigious industry designations and frequent recognition as a top producer in his firm. He wasn’t looking to make any career moves when John Sharpe, a board member for national real estate firm Lee & Associates, contacted him in 2021. Sharpe wanted Scroggs, an experienced commercial real estate professional in Baton Rouge, to join the company. Not only that, but he had Scroggs in mind to head up a new Lee & Associates location in Baton Rouge. “I had ideas about company ownership, compensation structure, and the corporate culture I would want to be a part of,” Scroggs recalls. “After learning about the company model, I realized it was a perfect fit. Lee & Associates offers a set of services and opportunities that drive the entrepreneurial spirit. The more we talked, the more I wanted to be part of it.” Scroggs took the leap in January 2023 and officially opened the firm’s Baton Rouge office. By May 2023 he added two partners and opened a

Lafayette office. Though Lee & Associates is a new name to the local market, it has a strong reputation across the U.S. and in Canada. Scroggs has enjoyed building a team and continues to add partner level brokers and talented support staff to the company. The Lee brokers bring years of experience in commercial real estate, which includes industrial, warehouse, office, retail, and land. That knowledge is critical to helping clients. “One of the biggest challenges is the tight warehouse market for the Baton Rouge area,” Scroggs says. “It’s hard to find vacant space. A lot of the deals that are getting done are by brokers who have knowledge of space that could become available. We know the tenants that have leases expiring, those that are trying to enter the market, and those who are actively looking to expand. Tracking this data has given us a competitive advantage.” One of the company’s biggest projects is the Rivermark 185 Industrial and Logistics Park, a 96-acre site being developed by Chad Brossett in Geismar, LA. When completed, it will consist of

more than 1 million square feet of Class A, concrete tilt wall distribution and service warehouse space. Lee & Associates, which has 1,500 professionals in 75 offices nationwide, gives every broker the opportunity for ownership in the local office, the benefit of profit sharing, and the support of a strong national brand … unique values that set the company apart from competitors. The firm also encourages brokers to pursue advanced education in their areas of specialty in order to provide the highest level of service. “We give a pretty robust platform of services to our brokers, which allows them to be better equipped to deliver service to the client,” Scroggs says. “Service from the company to the broker translates to service from the broker to the client.” Those relationships are crucial for success. “You’re always working to solve problems for clients, and I love that side of the business,” Scroggs says. “Ultimately, it’s all driven by the people you know, the trust you’re able to build, and the value you’re able to deliver to them. We enjoy that process.”

Top Executive: Evan Scroggs, SIOR, CCIM, Managing Principal 5555 HILTON AVE., SUITE 330 • BATON ROUGE, LA 70808 • 225.427.9240 • LEE-ASSOCIATES.COM 1012industryreport.com

10/12 INDUSTRY REPORT • FALL 2023

CLOSING NOTES: PROJECT MAPS

Project by project ($25M-$250M)

CADDO

Active Louisiana industrial projects announced or proposed, with projected capital investment of $25 million to $250 million. Second line shows projected capital investment and direct new jobs. List is representative, not complete; statuses and costs change frequently. 1 ExxonMobil Refinery upgrades and new technology

$240M | 1,300 jobs retained Location: Baton Rouge Status: Completion in 2023

8 Shell catalyst plant output boost $121.7M | 17 jobs Location: Port Allen Status: FID 2023

2 CF Industries Green Ammonia

9 International Matex Tank Terminals storage tanks, pipelines + dock

3 BP Lightsource Prairie Ronde Solar Farm

10 Cornerstone hydrogen cyanide plant

$198M | 10 jobs Location: Donaldsonville Status: 2023 completion

$170M | 1,300 jobs retained Location: Pointe Coupee Parish Status: Construction begins late 2024

4 Weyerhaeuser lumber mill upgrades $157M | 4 jobs Location: Holden Status: 2024 completion

5 Kinder Morgan Louisiana Pipeline expansion

$151M | 0 jobs Location: Southwest Louisiana Status: December 2023 completion

6 IMTT terminal upgrades $150M | N/A Location: Geismar Status: 2023 completion

7 Delek Refinery

$150M | 30 jobs Location: Krotz Springs Status: 2024 completion

$100M | 8 jobs Location: Geismar Status: 2023 completion

$100M | N/A Location: Jefferson Parish Status: Pending

11 Delta Biofuels renewable fuels from bagasse plant $100M | 126 Location: Jeanerette Status: In progress

12 Acadia Gulf of Mexico Access Channel deepening $96M | N/A Location: Port of Iberia Status: Underway

13 Eastman Taminco expansion $70M | 5 jobs Location: St. Gabriel Status: Underway

14 Placid Refining Headquarters + Port Allen facility modernization

$66M | 20 new jobs; 215 retained jobs Location: Baton Rouge, Port Allen Status: Completion in 2027

15 International Paper Modernization

$52M | Retain 492 jobs Location: Bogalusa Status: N/A

10/12 INDUSTRY REPORT • FALL 2023

BLUE = ADDED SINCE PREVIOUS EDITION 1012industryreport.com