Lab Report 6.30.17

Laborde Products Newsletter 6/30/2017 Volume 2, Edition 2

Industrial Department President’s Message

EIR, what is that? •••

Maybe you have seen Stephen Cacioppo Taking Mitsubishi to #1 in the Inland Marine Market
tinkering around with some engines and
equipment that have these funny looking Laborde Products is the largest Mitsubishi Marine Distributor in North America
yellow connectors and wires hooked to and has been the nucleus of Mitsubishi’s success in this market. For many years,
them. If so, I’m sure you thought….”What we have operated under the radar of our competition and steadily gained market
the heck is he doing and why is he pressure share in the commercial marine markets. While we are pleased with the success
washing the driveway?” we have had to date, we have set a new goal for our Mitsubishi Marine business.
We have committed to make Mitsubishi the #1 Engine for new vessel
For the industrial side of our business, we construction in the Inland Marine Market by 2025.
are fully into the EPA’s latest and most
stringent emissions class, Tier 4 Final. With We have always been in a minority position in the market and the expectation to
Tier 4 Final, particulate matter (PM) and dethrone CAT and Cummins to achieve the leading position is not something
Nitrogen Oxide (NOx) have been reduced that will come easily. These are huge domestic companies with strong ties to the
by as much as 90% over Tier 3. As you can marine industry that long surpass our existence in the market. We will have to
imagine, the engine manufacturers had a wage unconventional warfare against these formidable opponents to achieve our
difficult time getting the numbers down to goal.
an acceptable level.
Continued…. We will not compete on price or brand recognition. These brands are strong and
well known and CAT and Cummins have the financial strength to drop pricing
well below our pricing threshold. We must attack our competition where they
cannot compete. The value that we will deliver to our customer is through the
simplicity of our mechanical engines and packages and the personalized support
we provide to our customers throughout the lifecycle of our engines. We will
give our customers the best engine operating experience in the market.

The only way we can provide this level of value and personal service to our
customers is through a great Team. The Laborde Products Team and the systems
we utilize to support our customers are the critical components that will define
our success in the future. Every engine sale will establish a partnership with our
operators, where we exist as one, working together to ensure our engines are
consistently delivering power and performance to their vessels for the life of the
engine. Every person on the Laborde Products Team has the opportunity to
impact our customers experience with our company and influence our position
in the market.

Together we can, and will, take Mitsubishi to the #1 position in the market by
providing our customers with an operating experience our competition cannot
delivery. We will make Laborde Products the premier engine provider in the
market by creating an experience unrivaled by the competition.

Depending on the engine and the On the L-series test, probes and It’s an involved but necessary
engine manufacturer’s sensors are applied to a test practice. To date, we’ve
requirements, many of the Tier 4 engine which is installed into the performed over 20 EIRs just for
Final engines we sell require an customer’s application. The Yanmar alone, more than most
“Application Review”. Yanmar’s equipment is run in a manner Yanmar Engine Centers. It’s a big
name for this testing process is that is as close to a “real world” commitment, a large investment
called and EIR (Engine situation as possible. A Data in hardware and software and
Installation Review). Logger captures heat levels from takes lots of man hours. In order
the exhaust, air intake and oil for us to continue to be a major
We cannot simply sell an L pan, as well as vibration and player in the engine business, we
engine to anyone in need of one, loaded/unloaded rpm readings. must adapt and change with the
only to those that have approved The data is downloaded from the times. This means constant
EIRs on file. Although there is Data Logger and emailed to
some flexibility with which Yanmar for review. In most cases training, evolution and a
engines require an EIR from there’s a general approval, but in commitment to staying ahead of
Yanmar, there are NO exceptions a few instances we’ve had issues the curve and latest technologies.
with the L-series. with heat, or the engine being It’s a commitment that is already
overloaded. This can result in an paying off with our valued
overall failure, or simply an customers.
adjustment to meet the criteria.
Once Yanmar America is
satisfied with the results, they
send the data to Yanmar Japan
for final approval. We eventually
get paperwork back that must be
signed by our engineering team,
the Industrial Manager and
ultimately the customer.

Parts Department

Parts Department Spotlight
In a continuing series of profiles on Laborde Parts Team members, this issue the spotlight is on Dave
Nurdin. Dave has been a member of the Laborde parts team for 16 years. He came here from working in
the automotive field and that experience has served him well in his role as a member of our parts team.

Dave has worn a lot of different hats over the years in his role with the parts team. From unloading trucks,
shipping orders, covering the phones and even acting as a service advisor from time to time, Dave has
demonstrated a willingness to help regardless of the task required.

Because of Dave’s technical/mechanical background, he was tasked early on with keeping track of our
Reman program. This involves creating work orders for remanufactured parts, pulling the required
parts/components and sending them to the appropriate party. This is regardless if we are doing a
particular reman part in house or shipping components to a third party. Dave is also responsible for
keeping track of our cores. Finally, Dave is a member of our parts “On-Call” rotation and has
demonstrated that he is more than capable of handling parts requests from customers and our service
team 24 hours a day. Continued….

Dave has been a resident of the north shore for 18 years. He grew up and had lived in Metairie prior to
that. Dave had worked at Firestone in Metairie for 20 years prior to joining the Laborde team. He has been
married to his wife Stacie for 23 years. He is father to 3 girls, Nicole 34, Rachel 26 and Paige 21 years old.
Dave has been a valuable and key member of our parts team for a long time. We are fortunate to have him
wearing the big “L” !

Administration

5 Benefits of Social Media

To some entrepreneurs, social media marketing is the “next big thing,” a temporary yet powerful fad that must be
taken advantage of while it’s still in the spotlight. To others, it’s a buzzword with no practical advantages and a
steep, complicated learning curve. According to Hubspot, 92% of marketers in 2014 claimed that social media
marketing was important for their business, with 80% indicating their efforts increased traffic to their websites.

1. Increased Brand Recognition recent customers, and old currently rank for. Every social
- Every opportunity you have to customers, and you’ll be able to media profile you add is another
syndicate your content and interact with all of them. Every path leading back to your site,
increase your company’s post, image, video, or comment and every piece of content you
visibility is valuable. Your social you share is a chance for syndicate on those profiles is
media networks are just new someone to react, and every another
channels for your brand’s voice reaction could lead to a site visit. opportunity
and content. This is important for a new
because it simultaneously makes 3. Higher conversion rates - visitor. The
you easier and more accessible Social media marketing results in more you
higher conversion rates in a few post, the
for new distinct ways. Perhaps the most more traffic
customers, significant is its humanization you
and makes element; Social media is a place generate.
you more where brands can act like people
familiar and do, and this is important because 5. Improved Customer Insights
recognizable people like doing business with - Social media also gives you an
for existing other people; Not with opportunity to gain valuable
customers. companies. information about what your
customers are interested in and
2. More Opportunities to 4. Increased Inbound Traffic - how they behave, via social
Convert - Every post you make Without social media, your listening. You should like/follow
on a social media platform is an inbound traffic is limited to others pages and listen to their
opportunity for customers to people already familiar with postings.
convert. When you build a your brand and individuals
following, you’ll simultaneously searching for keywords you
have access to new customers,

Laborde Products actively posts features on both Facebook and LinkedIn and encourages all employees to both like
and share these posts to help increase our company visibility and potentially to draw new customers to us.

Marine Department

People Like When We Barge In

A report commissioned by the U.S. National
Waterways Foundation indicates that inland
river barge transportation has improved its fuel
efficiency for cargo transport compared to road
or rail.
The study shows that barges can move a ton of
cargo 647 miles with a single gallon of fuel, an
increase from an earlier estimate of 616 miles. In
contrast, trains can move the same ton of cargo
477 miles per gallon, and trucks can move the
same ton of cargo 145 miles per gallon. The
improvement for barge transport was due in
part to the continual upgrading of the fleet and
the high utilization rates that were achieved in
the latter part of the study period.

The 2017 study addresses cargo capacity, congestion, emissions, energy efficiency, safety impacts and infrastructure
impacts. It compares the cargo capacity of trucks, trains and inland river barges. One common 15-barge river tow
has the same capacity as 1,050 trucks and 216 rail cars pulled by six locomotives.
To fully appreciate the carrying capacity of a barge, the study notes that a loaded, covered hopper barge transporting
wheat carries enough product to make almost 2.5 million loaves of bread. A loaded tank barge transporting gasoline
carries enough product to satisfy the current annual gasoline demand of approximately 2,500 people. Continued….

P.A.C.T.

•••

The P.A.C.T. recipient for the first quarter of 2016 was Kyle Bordelon. Kyle was nominated by several other Laborde
employees as displaying the attributes outlined below. Kyle has been an employee of Laborde Products for 3.5 years.
Any employee can nominate a person for the P.A.C.T. Award. Nomination forms and P.A.C.T. Award Guidelines are
available from Dan Murphy.

Positive Attitude: The Laborde Products team is committed to attacking every situation with optimism and enthusiasm.
A positive attitude produces positive results!

All In: The Laborde Products team is totally committed to the success of our company, fellow team members, and
ourselves. Any action that helps the team succeed will be enthusiastically embraced regardless of title, task or time.

Commitment to Excellence: The Laborde Products Team is committed to achieving excellence in everything we do and
delivering an exceptional experience that exceeds expectations.

Trust: The Laborde Products Team is committed to operating at the highest level of honesty and integrity. We continually
build trust by doing what we say we will do.

The report estimated that the amount of cargo currently transported on major
rivers is equivalent to more than 49 million truck trips annually. After
adjusting for differences in cargo quantity moved by each mode, for each one
member of the public injured in a barge accident, 80.44 are injured in rail
accidents and 824 are injured in truck accidents. For fatalities, there are 79
trucking deaths and 21.9 rail deaths for one barge-related death.

The rate of spills of more than 1,000 gallons are very low for barges, at 2.12
gallons per-million-ton-miles, rail at 5.95 and trucks at 6.04. Additionally,
inland waterways transport generates far fewer emissions of hydrocarbons,
carbon monoxide and nitrous oxide than rail or truck per-million-ton-miles.
On this basis, barges emit 15.6 tons of C02, while railroads emit 21.2 tons of C02 (30 percent more than barge
transportation). Trucks generate 154.2 tons or 10 times more emissions than barges per ton-mile of cargo moved.

Houston

From the Ultra-Deepwater
The project began with a call that came into our Houston
office from Transocean’s Rig Manager with Steyr engine
trouble on their rescue boat from the Discoverer India.
After diagnosing the problem and going over the options,
the rig manager chose to upgrade the systems on the boat
and replace the MO series engine with a new SE236E40
engine.

The boat was delivered to the Houston location and a
technician was immediately assigned to take on the task of Houston’s first in shop rescue boat Steyr
upgrade. Transocean was pushing for a timely turnaround, as they are unable to operate without these
critical pieces of equipment. They have to rent replacement boats to meet regulations, so every day in our
shop is less money for this major global organization.

Once we had the parts and pieces in hand we were able to get the MO236 engine out of the boat and the

new SE236 back in with the upgraded panel, fuel lines, vibration isolators and adapter plate in a matter of

days without any modification to the structure of the boat; which

Birthdays was an initial concern.
We got the boat back to the customer in a reasonable timeframe,

• • • at a reasonable cost, leaving them happy and we learned some

April – Kenneth Hall, James tricks along the way which make us stronger as a service team
Luke, Ned Richardson moving forward. This job enhanced our relationship with a
major global organization and we look forward to more work

May – Timothy Jones, Stephen with them in both the near and extended future. In addition,
Cacioppo, Kim Saragusa Covington Service is also working on another Steyr powered
rescue boat.

June – Randy Saacks, Rafael

Saddy, Dan Murphy, Shawn

Willie, Chris Wright, Robbye

Rapp

Safety

7 Common Workplace Safety Hazards

Service Department

“Working” in the Bahamas

On April 19th, Covington Service Technician Aaron Michel departed New Orleans via Jet Blue Airlines. Destination –
Grand Bahama Shipyards, Freeport, Bahamas. The Carnival Breeze was dry docked for the first time since entering

service in June of 2012 and Laborde Products, Inc. was contracted to perform
annual maintenance and inspection on The Breeze’s Mitsubishi S16R
emergency generator. Aaron was tasked with performing borescope
inspection of the engines cylinders, setting valves, testing injectors, and
providing full preventive maintenance service. The work took four days to
complete and Aaron stayed on the Breeze during his time abroad. While
some of our employees were vacationing on a cruise during the last week of
April, Aaron was ensuring that Breeze’s emergency generator would
perform when called upon. Job well done, Aaron Michel! The strenuous
work left little down time, although Aaron did return a shade darker than
he was prior to leaving… The Breeze
departed the shipyard on April 29th,

2017 in route to Galveston, TX.

Accounting

Did you know that…?

Statistics Statistics Statistics
Mileage Injuries Sales

Laborde service techs drove Laborde Products staff has The largest sale in the 2nd
approximately 28,109 miles gone 442 days without a quarter was $416,232 to
reportable injury. The last
in the 2nd quarter, reportable incident was on Island Shipping.
consuming 1,562 gallons of 04/14/2016, resulting in 7
The smallest sale in the 2nd
gasoline. light duty work days. quarter was $0.54 to
Hydro-quip
Laborde sales people drove “Safety is something that
approximately 16,377 miles happens between your The average sale in the 2nd
ears, not something you quarter was $2,741.22
in the 2nd quarter,
consuming 910 gallons of hold in your hands”

gasoline.

Take 5

Find the Workplace Words

LNLXIASRFJGEQQZ Can you find the first names of our
VLEGMKAQYLLBPGK
LLWJHFFPIEHJWPI new employees? Welcome aboard!
ANUUAFNCKDAUKIV
KOBEZMHAWURIWHR • Alex Hernandez – Houston Service
KWLASAYQUGOENQP • Chad Wilbert - Production
QAPJQHCGIGLEVHL • Harold Mizell - Production
VOGJRAYHGKDBNZH • James Garcia – Houston Parts
QKKSIRNUDPKHBTR • Ned Richardson – Engineering Intern
HYLVTVEEWDYJZPE • Rafael Saddy – Covington Service
ZALYYGDKFRNENKL • Riley Smith - Production
JTAMEAXKCHCALVY • Tyler Huval - Production
SGIVAKARACFMPIT • Zach Stow – Covington Parts
CHADOZUDJTIKFOR • TJ Morello – Covington Service
CXSASEMAJTMJKEK