New Orleans Insurance

Last fall, Business Week SmallBiz profiled the recovery of three companies in New Orleans in the wake of Hurricane Katrina (see BusinessWeek.com, Winter, 2005, “The Fixer-Upper Fixes Up”, “Cooking Up New Business “and” prepared for all - Fast “). One year after the devastating storm, we still have with the three companies. Their stories reflect the reality, with sorrow, disappointment, and opportunities of life in the Big Easy these days.

For both companies, Tuff Rentals and Peter A. Mayer advertising, “Katrina” has contributed to rapid growth. Ralph Kastner, president of Tuff equipment, there was a spike in the economy and society lifts backhoes boom and demand have been hot for use in Aufräum. He said in the first half of 2006, the company booked $ 3.3 million in distribution-above what sent to all cases in 2005. And Mark Mayer, president of the ad and PR company Peter A. Mayer advertising, said a businessman, he is also strong, thanks in part to new companies by customers directly in the field of reconstruction. Mayer figures of turnover this year is approximately $ 75 million, against $ 68 million before Katrina. “This new category of clients in connection with the recovery of the hurricane,” said Mayer.

Of course, the two companies have few results of the storm. Tuff Durable equipment over $ 3 million for equipment and buildings damaged, most of whom were covered by insurance. Mr. Kastner of ordering new equipment and more and more willing to rent was like opening a new business. And he said he had told his insurance rates may now jump from 60 cents per $ 100 of equipment for 1 dollar. And while Mr. Kastner, it has opened offices in downtown New Orleans-its offices are located near Slidell, on the basis of greater elevation, it is insurance would be very difficult to obtain, s’ he did. “I told [the insurers] will not once mentioned, if you find there,” said Kastner.
TALENT drain.

His sub-Mayer has been a lot of relocating its employees to a second office in Baton Rouge, and up to a certain area rental Monroe, La, where one of the largest customers of the company. This meant, Mayer had to pay for temporary accommodation for a number of employees, for how long, only four months. But society of New Orleans to new office was able to walk on Thanksgiving. And he said, time has spent a lot of people sharing accommodation in houses built of society to rent camaraderie. Some parties had houses and even questioned the other in the sports competition.

But a major challenge remains: finding employees as the company grows. In particular, Mr. Mayer, it is difficult to find good Flash developers, individuals, can do Web Design. “We always suffer a thin talent pool [in this area] in New Orleans,” Mayer said. “But now, with a quantity of disorder and people are wondering if they return, it is increasingly difficult. ”

But those challenges pale in comparison to what was Loretta Harrison. Harrison, owner of Loretta’s Authentic Pralines, fought, if we review at the end of the year and find their way back from “Katrina”, remains difficult. Harrison requested a credit of the Small Business Administration not long after the hurricane and that it provided in July. She received the first tranche of $ 10000 $ 200000 loans. She got some interruption of operation of insurance, but it lasted approximately two months.
“I rest.”

Still, Harrison drift a Come Back. It opens its business in the Farmer’s Market in the French Quarter for a short period after the hurricane, but shut it down temporarily because of slow business. Now, a project to renovate the site, they are not there to return to about 18 months. Continue they continue to operate from their warehouse in the Faubourg Marigny section of New Orleans. For a short period, it serves breakfast and lunch for all people with the rubble. But now that other establishments have reopened, she’s Cut, that Friday afternoon, the concentration of the remaining time in connection with their pastries and confectionery.

For the moment, Harrison depends. She says, while the turnover of more than $ 450000 in the previous year “Katrina” during the year since the storm itself about $ 75000 revenue. Admittedly, there are some glimmers of hope. His three son available to help. And a New York businessman, came each year in New Orleans Jazz & Heritage Festival has strengthened their help. He persuaded his employer, a business publication, to use for their products, there are gift baskets to partners. So far, the company has purchased 100 of these baskets of about $ 55 each.

Pending Harrison is not always return to their homeland. She said it until December, “hell or high water. Your commitment to the city is resilient.” I have many other [city], “she says. “But there is something about this place. I stay.