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Gulf Island started on Thompson Road in Houma almost 30 years ago, and throughout the course of time, the company has grown to become a world leader in the fabrication of specialized structures and vessels for the oil, gas and marine industries.
With five divisions under its corporate umbrella – Gulf Island, Gulf Marine Fabricators, Dolphin Services, Gulf Island Marine Fabricators and Dolphins Steel Sales – Gulf Island Fabrication Inc. provides services both small and large to meet the demand of the offshore industry.
Kirk Meche has been with Gulf Island for 18 years, and took over as chief executive officer and president in 2013 when Kerry Chauvin retired from the position, citing health concerns.
Meche said the company has a history of producing offshore jackets and decks, but in 2008, he and Chauvin recognized the need to diversify their services, which led to the creation of Gulf Island Marine Fabricators.
“When the oil and gas industry got slow in 2008, we wanted to diversify our corporation, so we started this new division,” Meche said, noting that he and Chauvin had extensive marine backgrounds.
Serving as the company’s marine division, the creation of the new subsidiary company, Gulf Island Marine Fabricators brought with it the construction of a new dry dock, fabrication shop and office warehouse. With these facilities, it increased the company’s capabilities to construct towboats, barges, tugs and life-, supply and casino boats.
Gulf Island’s willingness to adjust to the demand of the industry is seen through its work to defy the “cyclical market.”
“We pride ourselves on first-of-a-kind concepts,” Meche said. “The oil and gas industry is a very complex and diverse universe and we provide for a very small portion of that. But what we provide is important in stature.”
Perhaps one of the only factors standing in the way of the corporation’s growth in Terrebonne Parish is the limitation presented by the depth of the Houma Navigation Canal. It is an expansion the present CEO has been fighting for 18 years, and Chauvin before him, for almost 40 years in other roles.
Meche said the 15-foot depth of the canal limits the units they can complete to between 10,000 and 12,000 tons, and Gulf Island has lost several projects in recent years because the barges could not navigate the depth of the HNC. He noted a 20- to 25-foot deep canal would be ideal for business growth.
“It’s one of the limiting factors that is holding industry back from coming this way. The industry is getting bigger and bigger and structures are getting deeper and deeper, which means they can’t pass in the waterway,” Meche said. “It’s vital for the continued growth of Terrebonne Parish that we do get this canal deepened. We need deep-water access. If we don’t get that access, some of these oil companies will continue to go overseas and get their products built.”
In 2006, Gulf Island acquired Gulf Marine Fabricators with yards in Aransas Pass, Texas and Ingleside, Texas where jackets, deep-water floating hulls and piles are constructed. Meche said Gulf Marine Fabricators has a 45-foot deep ship channel, which allows the company to provide its customers with the largest fabrication capacity on the Gulf of Mexico.
In October of last year, Gulf Island also invested in more property in Texas when the company moved its corporate headquarters to Houston.
“It’s where our customer base is,” Meche said about the move. “After (hurricanes) Rita and Katrina came through, a lot of these oil companies moved their offices to Houston so, consequently, that’s where our customer base is. In terms of growth within our companies, our presence is needed in Houston.”
Despite the corporate move, the company’s president said there is no plan to move operations out of Terrebonne Parish. He recognized the hard work of the corporation’s longtime employees, many of whom have been with the company for more than 25 years and some of them since its beginnings.
“It’s a testament to the residents of Terrebonne Parish,” Meche said of the low turnover. “I believe in this parish and I want to see the parish continue to grow.”
Knowing their success is dependent on their “loyal” workers, Meche said Gulf Island remains proactive with local technical high schools and community colleges to invest in the workforce’s future.
“This is a dying breed. When you look at fitters and welders, we have a lot of difficulty finding skilled labor to come in,” he said. “The key to continuing our business in Terrebonne Parish is educating our young students as they come up to give them the skills they need in order to step in and help us run these businesses in the future, and then themselves become leaders of Terrebonne Parish.”
Through partnerships with the South Central Industrial Association, Gulf Island is working to better inform younger generations about the many misconceptions people have about working at a fabrication yard. Meche said each company provides fabrication spaces to protect workers from the heat and humidity, as well as provides paid training.
As technology continues to simplify everyday life, Meche said it is no different at any Gulf Island company as there are more labor saving devices and robotics for their workers to engage, which makes the job safer than before.
“We are always looking for labor-saving devices,” he said. “Our motto is we want the guys to go home in the same condition they left, with the exception of having a few more dollars in their pocket.”
And as the company experiences technological growth, Gulf Island continues to follow industry trends and is looking into the construction of structures that will support offshore wind farms along the East Coast.
“We want to be a one-stop shop,” Meche said of meeting market demand.
Since 1997, Gulf Island has prevailed as a publically held company, and on Monday, the company’s stock quote was $19.40 per share.
With the corporation moving closer to its 30-year milestone, Meche credits the success of the business to the company’s employees and his predecessor who brought him to the company.
“(Chauvin) mentored me and told me when I first came on that one day I would be running this company,” Meche said. “It was flattering but intimidating. Through his guidance during the past years, he has made who I am today and I am very grateful.”
Gulf Island’s Fabrication yard in east Houma was expanded in 2008 to include Gulf Island Marine Fabricators, the company’s marine division, which constructs towboats, barges, tugs and lifeboats. Approaching its 30 year anniversary, the Houma-born company expects to expand its services into the offshore wind farms along the East Coast.
