World Travel Guide

City Guide  - New Orleans  - Business
Business

Business Profile: The economy of New Orleans centres around its port, the offshore oil industry and tourism. The Port of New Orleans handles the greatest total cargo tonnage in the United States. The city's traditional trading links with Latin American countries are growing, boosted by investments in new coffee-bean silos and cold-storage facilities for tropical fruits. New Orleans has always benefited from its position between the Mississippi River and the Gulf, which enables domestic products, such as grain, steel and mechanical parts, to be transferred from northern cities by barge to ocean freighter for shipment all over the world. The port and other maritime businesses in the surrounding region bring in more than three billion US Dollars annually. The largest private employer in the city is Litton-Avondale Industries, a shipbuilding and repair company. Tidewater Marine LLC is a leading maritime transportation company, as are Disc International Shipholding and Transoceanic Shipping Company.

During the 1970s, oil was a booming industry in New Orleans, due to the wealth of offshore oil in the Gulf of Mexico. The city prospered with the manufacture and financing of new oil rigs, and oil companies moved their corporate offices into the city's new high-rise buildings. By the end of that decade, energy production (including oil and gas extraction) comprised well over a third of the state's revenues. After the price of oil crashed in 1981, however, the industry took a downturn and New Orleans, like other oil centres in America, suffered sharp economic losses. Recovery has been slow but steady in recent years and Louisiana now handles more than 60% of the country's offshore oil production. The city of New Orleans serves as the administrative centre for this industry. Shell is the leading oil and gas exploration and production companies, which also include Chevron USA, Texaco and Exxon Mobil. Shell Chemicals is also the leading petrochemicals manufacturer in the area.

The third key industry in New Orleans is tourism, which brings in two billion US Dollars a year - one-quarter of that figure from Mardi Gras alone. New Orleans is also one of the top cities in the country for conventions, with over one million square feet of convention space and upwards of 25,000 hotel rooms. The service industries, such as hotels and restaurants, provide many jobs. JCC Holding Co (Harrah's Casino) tops the entertainment industry, followed by Jazzland Theme Park and the Treasure Chest Casino.

Other industries that contribute to the economy of New Orleans include petrochemical, aerospace, canning and food processing, fishing, timber, sulphur and salt. Lockheed Martin Michoud Space Systems, manufacturer of the external fuel tank for the space shuttle, is one of the city's largest employers. Folger Coffee Company, Domino Sugar Corporation and Colonial Sugar Refinery are among the largest and most familiar names in food processing.

New Orleans is also home to Tulane University, a national research university with associated hospital, clinic and allied health services, which is the city's second largest employer.

However, on the whole, wages in Louisiana are lower than in most other US states. According to some estimates, a quarter of the city's population lives below the poverty level, in contrast to the prosperous white-collar and waterfront businesses. The official unemployment rate is 5.1%, which is already high compared to the national average of 4.2%, but probably does not tell the whole story.

Business Etiquette: In general, people in New Orleans cultivate a relaxed, informal atmosphere in keeping with the climate and easy-going lifestyle. Most people still wear business suits, particularly in traditional sectors, such as banking and law, or else 'business casual' (without jacket). In New Orleans, as across America, many companies have instituted a casual dress day, usually Friday, where employees can wear jeans or other casual attire to work. With the city's warm climate, this is an especially popular trend. After hours, only a few top restaurants and hotels require men to wear a jacket and tie, but casual-smart is more often de rigueur.

Socialising with clients is important as well as networking with industry professionals. Industry and career-specific professional organisations provide networking avenues and many companies host 'business after hours' events to encourage meeting like-minded businesspeople.

In New Orleans, with its superb cuisine, business is often done over a meal. And restaurants here do not rush their customers! Hosts generally do not invite clients home unless they know them well. Business associates tend to exchange business cards at an appropriate moment, usually towards the end of a meeting. Gifts are not necessary, although small items, such as pens with the company logo are sometimes appropriate.

Business hours are typically 0900-1700 Monday to Friday. Lunch is generally taken between 1200 and 1300, or 1230 and 1330. Where alcohol is concerned, it is best to err on the conservative side until the host's preferences are known. Many Americans stick to soft drinks at lunchtime, especially in the hot, drowsy days of summer. By and large, people are health-conscious and smoking or heavy drinking may be frowned upon in a business environment.



Copyright © 2001 Columbus Publishing
    
GENERAL
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BUSINESS
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ENTERTAINMENT
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