GNO Inc President and CEO Michael Hecht returned today for his weekly segment with Newell to discuss the state of business and industry in the metro area as Phase Two of reopening finally arrives.
“Louisiana has been in Phase Two for a week already, and New Orleans starts this Saturday. It feels like it's been a long and arduous journey to this point, but I think folks are starting to feel some relief,” Newell began. “It feels like we turned a corner and have a little momentum!”“That’s what I feel too!” Hecht said. “There are two trends here that are encouraging, moving in opposite directions. Our infection numbers continue to be steadily moving down across the region, that’s looking good. And on the business and commerce side, the numbers are starting to trend up. You can kind of see it, you can kind of feel it. It’s not just financial relief, it’s psychological as well. Three months seemed to be the limit for people, and even just getting back partially to normalcy in business and social life feels good. We obviously have a long way to go, but looking at the stock market and the national unemployment numbers, it feels like real momentum.”“Obviously, 50% capacity doesn’t get small businesses where they need to be, but it’s a step in the right direction,” Newell said. “As we look at the jobs report that came out the other day - and people are still trying to figure out what that means - I’ve decided to adopt the ‘Michael Hecht approach’ and look for the silver lining. You’d just as soon start with a good report as a bad one, right?”“Optimism and despair can both be self-fulfilling, right?” Hecht laughed. “I know which one I’m going to choose. With Phase Two and the 50%, the reality for restaurants and retailers is that the six-foot rule is really the lowest common denominator. That’s the determining factor. I think most places can put as many people as they can at six feet apart and they’ll still be nowhere near 50% of the Fire Marshal’s capacity. As long as social distancing is the bottom line, that’s going to determine how many people can use an establishment. The good news is that we’re seeing restaurants and gyms getting creative, going outside and doing takeout and so forth. When I talk to friends who own small businesses, the general sense is that those that are being innovative and getting doors open and generate some cash, they’ve generally been able to do it. Ingenuity and persistence are winning the day.”“I’m hearing the same things,” Newell agreed. “Folks are saying they can’t sit around and wallow in their own self-pity, they’ve got to get aggressive and go get it. And they’re seeing the benefits of that approach.”“There’s a long history of that approach here!” Hecht agreed. “I would take you back to World War II and Andrew Higgins and the Higgins boat. He was making pirogues and turned that into the landing craft at Normandy. According to General Eisenhower, he saved the free world. And in so doing, he took Higgins Industries from like 75 people to 20,000 people and it became a massive, massive company and had the first integrated work floor in New Orleans history. That kind of ingenuity is built into us. Whether it's the Cajun Navy, or our hospitals responding, the companies that changed their models to manufacture hand sanitizer and PPE - when we see a crisis, it’s in our muscle memory to not just respond, but also figure out to make a difference and seek opportunities in it. It’s just how we’re wired here in South Louisiana!”