La. No. 1 with maritime jobs

Finally, Louisiana has earned a ranking worth bragging about.

The state earns top billing in the United States economic impact from the nation’s domestic maritime industry, according to a Pricewaterhouse-Coopers study released this spring.

According to the data, Louisiana also ranks first in the U.S. in maritime jobs per capita. One in every 83 jobs is connected to the state’s domestic maritime industry. That figure is nearly twice of that of any other state.

The Transportation Institute commissioned the study.

The latest report comes on the heels of a 2014 study by the U.S. Maritime Administration that ranked Louisiana third in the nation in commercial and military shipbuilding. That study found that shipbuilding accounts for 29,250 jobs and more than $2.23 billion in annual economic impact for the state.

The PwC study found that Louisiana employs 54,850 in the maritime industry. Collectively, the industry adds more than $11.3 billion annually into the Louisiana economy.

The study took a number of roles into consideration: vessel operators, marine terminals, shipyards and workers who transport cargo within the country.

“Louisiana’s maritime jobs aren’t just important to our state’s economy – they play an incredibly vital role in our national economy,” U.S. Sen. David Vitter said in April when the study results were first released.

The report reinforces local employers’ message that south Louisiana plays a key role in supporting the nation’s booming domestic energy production.

“Louisiana is America’s lifeline to offshore energy,” SEACOR Marine LLC vice president and chief operating officer Robert Clemons said. Clemons also chairs the Offshore Marine Service Association. “More than 25 percent of America’s domestic energy is produced offshore. The oil and gas industry depends on the more than 2,000 specialized vessels in the U.S. fleet to carry out seismic research, drill test wells, lay pipe, transport and install production facilities, and continually supply them with personnel, commodities, fuel and equipment.

“Our industry is proud to play an important role in Louisiana’s thriving and robust domestic maritime industry,” he said.

MaritimeProfessional.com reported in April that the state’s navigable waterway exceeds 2,800 miles – second only to Alaska’s – and moves more than 500 million tons of domestic and foreign cargo annually.

Louisiana is also home base to the Western Hemisphere’s largest container port based on vessel arrivals.

Transportation Institute reported the domestic maritime industry includes approximately 40,000 vessels, supports 478.440 jobs, and has an annual economic impact of $92.5 billion. Nationwide, the industry also generates approximately $29 billion in wages and $10 billion in tax revenues.

“The impact of the maritime industry in Terrebonne and Lafourche parishes is gigantic,” said Terrebonne Parish President Michel Claudet. “We have tons of people who work shifts – two weeks on and one week off – coming into our area. That added impact is huge for our economy, too.”

Although some segments have experienced slowdowns related to the drop in oil prices, Claudet said a number of companies have gone unscathed.

“You see it just by looking at the Chouests and Bollingers and other people who are gigantic players in this area,” he said.

An added advantage the maritime industry has had on the region is the skilled labor force it has drawn to the region, the parish president explained. “The companies in our oil and gas and maritime industries are major taxpayers for Terrebonne and Lafourche. The impact, too, of the qualified workers who call this area home is absolutely major as well.”

At a recent tourism event in Terrebonne, Claudet brought home the point that oil-and-gas and related industries are vital to the region.

“Oil and gas makes our economy tick,” he said. “People talk about our desire to diversify and have other options like tourism that we can depend on to generate month.” If oil and gas goes down, we are not left with a lot of options. Because we have had maritime and oil and gas to rely on, we haven’t had to look beyond that.”

The fluctuating market is a concern, South Central Industrial Association director Jane Arnette said, “but our people are resilient.”

Besides, the current situation doesn’t compare to the 2010 post-BP spill moratorium, the 2005 and 2008 hurricanes or the oil crashes in the 1980s.

“We survived all of those – we’ll survive this,” Arnette said.

But the recent downturn in the market has made businesses re-examine their workforce.

“Across the board, businesses are looking at what they do in a very specific manner,” she said. “They are looking to get the best bang for their buck. That means looking at budgeting, trimming and refining to adapt to what is happening in the market.”

Like most in the industry, Arnette believes prices will go back up and jobs will remain available. “Sometimes I think these things happen to allow businesses to refocus on best practices.”