Louisiana's industrial investment momentum: Opportunities & challenges

Speaker A: Welcome to BIC Magazine's Inside Industry Podcast, the program where business and industry connect to share topics and ideas that move the world's energy. BIC Magazine's Inside Industry Podcast is brought to you by the BIC Alliance. BIC alliance and its sister companies, BIC Magazine, BIC Recruiting, and IVS Investment Banking help industrial businesses grow through marketing and sales, hiring the right people, and merger and acquisition services. Visit bicaliance.com for more information.

Speaker B: Hello, everyone. I'm Jeremy Osterberger with BIC alliance and BIC Magazine. Today we're joined by David Cresson, President and CEO of the Louisiana Chemistry association and the Louisiana Chemistry Industrial Alliance. We're discussing some of the most important issues facing Louisiana's industrial sector. Louisiana continues to attract significant investment across the chemical and manufacturing industries, with more than 60 billion in committed projects currently in the pipeline. At, uh, the same time, the industry is navigating a number of challenges and opportunities, including workforce development, evolving regulations, carbon management initiatives, and growing expectations from the communities where these facilities operate. David and his team are at the center of those conversations, advocating for policies that support economic growth while helping ensure Louisiana remains one of the most competitive manufacturing regions in the world. David, thanks so much for joining us. Great to see you.

Speaker C: It's an honor to have you here. Absolutely. Thank you to BIC for being here with us.

Speaker B: Uh, the new, the new facility is unbelievable, man. Thank you for having us. And congrats to the whole team. You got some amazing people here, David, and, uh, true power players. So thank you for having BIC magazine here.

Speaker C: Well, we're pleased to have you here. Welcome to our new office and, uh, thanks to BIC for all you do.

Speaker B: Well, thank you, sir. Well, David, let's get into it. And I'm going to start with kind of the big picture. We mentioned it just a second ago. Louisiana has more than 60 billion in committed industrial projects right now. What is LCA and really LCIA doing to protect that investment in this region?

Speaker C: Well, I think if the governor or our Secretary of LED were here, they would tell you that number is more like 100 billion these days. So, uh, but LCA works every day. We're looking right here at the Louisiana Capitol behind the camera. We're, uh, there every day, uh, working with legislators, lawmakers, policymakers across the state to try to make sure that rules, uh, they make, uh, they are considering how those rules will impact that investment, impact industry across the state. Industry that's been here for years or industry that is coming. Uh, and so that's what LCA does. Uh, we've got a team of folks that are at that capital every day, um, working on good bills and bad bills to make sure that the impact to industry is felt. Because if we don't have certainty in the way that we make our rules here in Louisiana, uh, that's a red light for companies that might be thinking of coming here. So, uh, we try to bring some certainty to the rulemaking. Uh, we have a great team of folks that are doing that and, uh, so far so good. Under this new administration, we've got a lot of business coming to the state and LCA is proud to be a part of that.

Speaker B: So David, thank you for that opening. I mean, one issue that we wanted to cover is carbon management. Let's get into that. I mean carbon capture and storage has become a major policy battleground in Louisiana. Um, where does the industry stand right now in carbon capture and carbon management?

Speaker C: Well, our industry needs, uh, access to that technology. Uh, it is a safe, scalable technology that's being used in other places around the world. It is a technology that markets around the world are requiring in order to buy American products. Uh, when, uh, our markets in Asia, Europe and other places look to buy American products, one of the questions they're asking, uh, is are these products made in a carbon friendly way? Uh, and so regardless of what your politics are on carbon and climate change, the fact that the market is requiring this, and so we need to make sure that our companies here in Louisiana, in order to stay competitive, have access to that technology. It is a very complex issue at the state capitol. Uh, right now we were able to avoid any real pitfalls this past, uh, session. We've got uh, support, uh, from our governor, we've got support from all of our different, uh, his cabinet leaders when it comes to that particular technology. Uh, but people would like to have their questions answered and we understand that local communities, uh, need more information about this. So LCA and our team is out around the state trying to provide that information. The companies that would like access to this technology are also around the state trying to provide access to that information and show people that this is safe. It's been done for years. Uh, there's nothing to be, uh, worried about. The hysteria that's out there is really unfounded. Uh, and we're going to keep working to make sure that people understand that.

Speaker B: Thank you, Dave. You know, beyond policy and investment in public trust remains a critical component to this long term success here. I mean the Kim industry has a perception problem with the public in some Communities, and we've been battling that for a long time. How does LCA continue to address that?

Speaker C: Well, we're going to get out in those communities and make sure that we build those relationships with those communities. Our companies, uh, are the leaders of their communities, and people that live there know that. But, uh, but on a broader scale, we do have perception issues, and we know that, uh, of course there's the, the unfounded and, and incorrect perception that Louisiana is Cancer Alley and that the industrial corridor along the river is what's called Cancer Alley. But that is false. It's been disproven many times. But LCA has gone a step beyond that. Instead of just trying to fight the narrative with, uh, conjecture, we have put the facts together and we've created what's called LouisianaHealthFacts.com, uh, which is a compilation of health facts from a number of different very, uh, you know, very reliable sources that show that actually health outcomes in Louisiana's industrial corridor are better than they are outside of our corridor. Cancer is lower inside the corridor as opposed to outside the corridor. Cancer mortality is lower inside that corridor. Uh, and there's lots of reasons for that. One, people that live and work there have good jobs with good health insurance and access to healthcare and early screening and so on and so forth. Um, but there's also, it helps to, uh, defend against the narrative that we are, um, we're out there polluting, or we're out there polluting the water. Uh, and so, uh, health. Health outcomes in those parishes are actually better than they are outside those parishes. And we're out there trying to tell that story to the state of Louisiana.

Speaker B: Thank you, David. Um, of course, none of these projects move forward without the people needed to build and operate these facilities. Let's get into workforce development. Workforce development is a challenge, really, across the Gulf coast and across the country. You know, what is LCA seen from its contractor and supplier network and kind of two sides here, because you have the LCA and the LCIA side. So I'll let you comment on that workforce development issue.

Speaker C: Well, one thing that, uh, we definitely have in common between our, our facilities and those contractor companies is they all see workforce as a challenge. Workforce is a, is a challenge. And with all the investment coming to the state, it's going to become more and more of a challenge. So the, the real issue is how do we fill all these jobs, uh, with it, if we can, with local Louisiana folks that, uh, can go to work, make a good living, have them trained. You, uh, know and, uh, make sure that the good talent stays here in the state of Louisiana and we're able to attract talent to the state. Uh, every member I've been to, every supplier member I've been to, has mentioned workforce as a challenge that they see coming. And so we worked at the state capitol this year. We helped to pass a number of good workforce, um, related pieces of legislation, uh, whether it comes to making, uh, workforce training more accessible to those that would like to get into the workforce, providing trainers for those folks once they're in school, making it more affordable, uh, making it easier for people to, uh, you know, to actually get to those trainings. And so workforce, major challenge for the state of Louisiana, but one that under this governor and under Secretary, uh, Schaoen at Louisiana, uh, works, we're really tackling as a team, and I think we're seeing some good progress.

Speaker B: That's excellent, David. Thank you for the update. Um, let's talk about the regulatory environment. You know, regulatory change is moving fast right now and really has been for some time. But what are Louisiana chemical operators most focused on in relationship to regulatory affairs?

Speaker C: What they want is certainty. I mean, honestly, they just really want certainty. They can adjust to whatever rules, you know, are out there. There's some rules that they'd rather not have to adjust to if they're overly burdensome. But the fact is, uh, the uncertainty is where challenges come in. There are rules out there that, you know, make it to where our, our member companies have to make significant investments to meet those, to meet those requirements. And if that is going to change over, uh, the period of a year or two, then now all of a sudden, all those dollars that they plan to invest may or may not be necessary. It changes their entire business model. And so it creates issues, uncertainty, and is probably the biggest challenge overall that we need to, you know, need to work around. And sometimes it's avoidable, sometimes it's not. A lot of it changes with federal administrations, with state administrations. But the more certainty we can provide as a state and as a federal government, I think the better for our industry. Uh, and our companies are really good at being nimble and making sure that they're abiding by all those rules.

Speaker B: Thank you, David. Let's wrap up with this question I want to talk about. Louisiana is just such a hub for industry and for. For this, this marketplace in this chemical and petrochemical manufacturing sector and refining. What is the biggest opportunity you see for Louisiana's chemical sector over the next five years? I know it's Hard to have the crystal ball. But you know, what matters and where we're going to see this industry go in the next three to five.

Speaker C: It's a big question. And with all this investment coming to the state, there's one thing that's clear. No matter what sort of project is coming to the state, they will need the products that our members make. For instance, the data centers that are being built here in Louisiana and across the country. Uh, those data centers need miles and miles of cable that are coated by rubber and plastic, which is made by our members. They need coolant to keep the, keep those facilities and their machinery cool. Those coolants are made by our members. Uh, and regardless of what kind of project it is coming to the state of Louisiana or any state, the fact is, is that products that they use to, to create those product, those, those new products are made by our members, the LCA and LCIA members. Uh, obviously the, the, the uh, opportunity that comes along with all this investment, all this building also helps our, our contractors and suppliers and so on. There's just an enormous opportunity right now. Louisiana has driven the ball. We're right at the one yard line. We're about to score the ball. We need to make sure we don't fumble it. I think we're going to score and, and score and keep scoring over and over again. We need that certainty in a regulatory way. We need to make sure that we're all pushing the same direction. We need to overcome the false narratives that are out there, the hysteria that's being driven on purpose by, um, E. NGOS and others that are out there. Uh, but we've got a good team here in the state. We've got incredible members of LCA and LCIA that are all pulling the same direction. I've got a great team here at our office. Uh, and with partners like BIC and others around the uh, around the industrial landscape, I think we can get it done.

Speaker B: David, we know you're busy. We really appreciate your time hanging out with BIC Magazine. There's some other things we got to talk about down the road. Power is on the horizon as well,

Speaker C: so we could spend a long time talking about that one too.

Speaker B: We'll get you back on again, David. We are very grateful for our relationship and thank you for all you do.

Speaker C: Yeah, uh, appreciate you.

Speaker A: Thank you for listening to BIC Magazine's Inside Industry podcast. Log on to bicmagazine.com for industry news and resources. BIC Magazine's Inside Industry Podcast is brought to you by the BIC Alliance. BIC alliance and its sister companies, Bic Magazine, Bic Recruiting and IVS Investment Banking help industrial businesses grow through marketing and sales, hiring the right people and merger and acquisition services. Visit bicalliance.com for more information.