ISLAND OUTLOOK

It’s the buildup, stupid
By Frank Whitman, managing editor

As it has frequently of late, the title phrase of this column comes to mind as we look over this issue of Guam Business. The effect of the military buildup on Guam is the underlying theme of almost every story in this magazine. From work force issues to transportation to construction supplies, the expected impact of a $15 billion increase in federal spending on the island during the next decade has everybody’s attention. Even if the buildup was called off tomorrow, (As far as we know, it won’t be — no rumors, please.) it has already had a significant effect as businesses and the government have begun to prepare. Structures have been built or leased; payrolls have been boosted, and equipment has been purchased.
We’ve been reminded that the Guam economy’s other leg tourism, is fully capable of thriving without the military and there are developments in play — the Chinese visa waiver, for example — that may help it do so. But, military personnel and their families patronize Tumon’s hotels, restaurants and night clubs, and their business is solicited and valued.
Employee satisfaction will become increasingly important during the next several years. Companies that have not previously done business on Guam are setting up office on island; longtime Guam-based companies and the federal government have been increasing staff — all for work related to the military buildup. The companies — and the government — are, of course, hoping to retain their best employees and, undoubtedly hoping to attract (are attracting, in some cases) the best from elsewhere.
This issue of Guam Business contains the results of our annual Best Companies to Work For survey. We’d like to salute the 13 companies that stepped forward to permit themselves to be evaluated by their employees. It seems to us that the fact of their participation is indicative of their concern for their employees and their awareness of their value. These companies were confident enough about their employee relations to permit themselves to be scrutinized.
It is often the human resources professionals who play what is becoming an increasingly critical role in employee retention. We’d like to express our gratitude to those who advised and assisted us with the survey — namely, Richard Colfax, senior consultant at Colfax Inc. and Karri Perez, president of EPS Resource Group. Colfax and his company performed the data anlaysis and survey work for us, and Perez assisted in numerous ways. Both are professors at the University of Guam and both are enthusiastic about their field; we know that their students are fortunate to have them.
We also include in this issue, our freight feature. Writer Stephanie Lundberg spoke with local cargo carriers and forwarders, and officials at the island’s seaport and airport. Anyone who drives past the airport into Tiyan can see the new cargo facilities alongside the runway — only the most visible indication of the preparations underway to handle the expected boost in cargo related to the buildup.
In the Economic Outlook department, prestigious Washington lobbyist Juan Carlos Benitez provides his thought-provoking insights into the immigration challenges he sees accompanying the buildup. He also offers solutions. We are fortunate to be able to offer his column to our readers.
Profilee Lyndon Kim did not start his construction supply business in response to the military buildup, he told us that he considers the timing fortuitous and he fully expects to benefit, as will virtually every construction-related business on island.
While Michael Hernandez of South Pacific Petroleum Corp. did not mention the buildup, his is an interesting story and he has become an integral member of the island’s business community in the time he has been on Guam. And the company will undoubtedly sell more as the buildup boosts the economy.