Beginning in 2008, Louisiana aggressively repositioned itself as a great state for business investment, quality of life and economic opportunity. Through business incentives, tax competitiveness, ethics reform and workforce development, Louisiana has become synonymous with opportunity. In addition to promoting Louisiana entrepreneurship, the state’s movement to attract and retain new business has caught the attention of companies across the nation looking for business-friendly policies.
The Challenge
Bercen Inc. knew it was time for a change. Efficiency and staffing problems persisted in the company’s hometown of Cranston, R.I. According to Jim Thorpe, Bercen’s president and CEO, the company had trouble attracting a workforce of talented chemists to Rhode Island because of the state’s high cost of living. With the company’s sales on the rise, tripling in recent years to more than $60 million, Bercen needed the ability to expand its workforce.
Based in Rhode Island for almost 50 years, Bercen sought a headquarters site with the ideal combination of a business-friendly environment, available skilled workforce and the infrastructure to export its products. In addition to an existing manufacturing site in Louisiana, Bercen had partners across the nation. One question loomed: Should Bercen locate where the company had planted roots or should it look elsewhere?
The Solution
Louisiana had an answer. Bercen’s manufacturing site in Denham Springs, La., had been in operation since 1978. With the right incentives, business environment and qualified workforce, Louisiana officials knew Bercen could successfully consolidate headquarters and manufacturing in Denham Springs.
The state offered $450,000 for infrastructure and relocation expenses from the Governor’s Rapid Response Fund. In addition, Louisiana Economic Development’s Quality Jobs program would provide a 5 percent to 6 percent cash rebate on annual gross payroll for new direct jobs over 10 years.
The state’s universities also produced a wealth of qualified talent in the area, providing Bercen with a pool of research chemists and engineers from which to draw. Louisiana also offered close proximity to raw materials and access to the firm’s customer base.
Another valuable resource was the Port of New Orleans. With 40 percent of Bercen’s business consisting of exports, the established port infrastructure played a vital role in the company’s success.
The Results
Presented with the opportunity to save $700,000 to $800,000 annually, Bercen made the decision to relocate its headquarters, as well as its research and development and technical service laboratories, to Denham Springs. The relocation included expanding the Denham Springs facility to include 13,000 square feet of office and laboratory space, along with rail spur improvements to serve paper mills better. In addition to relocating, Bercen committed to expand its local manufacturing operations. The entire project represented a $5 million capital investment. Bercen added 18 jobs that would average $90,000 a year, plus benefits.
“Our experience in Louisiana thus far has been a positive one. In addition to offering a business-friendly climate, Louisiana affords us an opportunity to be close to our suppliers and recruit excellent talent from LSU and Southeastern Louisiana University. We look forward to a long-lasting presence in Livingston Parish and Louisiana,” Thorpe said.
Consolidating in Denham Springs positioned Bercen for growth, cost-efficient operations and the delivery of maximum value. Louisiana’s available talent pool can fit the needs of corporations like Bercen, not only in the manufacturing arena, but also in management. The new facility brings together all members of senior management, supply chain managers, customer service and production personnel.
“The key is to keep, expand and grow the companies that are already here,” Gov. Bobby Jindal said. “It is also important that we seek these value-added jobs with higher benefits, these intellectually based jobs that give our families more reason to stay in Louisiana.”
The close proximity of all departments allows for quick and efficient decision making and implementation. The laboratories will be dedicated to analytical testing, product development, wet-end paper making, paper coating and paper property testing.
Demonstrating the quality of companies finding profit in Louisiana, Bercen received grant commendations from an external ISO 9001-2000 auditor on its ability to maintain exceptional customer service and quality during its transition period.
The addition of manufacturing and company leadership jobs through Bercen’s investment in Louisiana represents only a fraction of the business momentum in the state. Recent business development projects won by Louisiana are resulting in significant job growth and billions of dollars in capital investment all across the state. These wins are fueling hundreds of millions of dollars in new sales for Louisiana small businesses and continuing the economic growth of the state. Visit the LED News website area for updates about the new Louisiana.
