Companies see bright spots peeking through a slowly recovering economy

By Oyaol Ngirairikl

In spite of concerns about still-recovering regional economies, a majority of companies participating in the 2024 Bank of Guam ASC Trust Top Companies of Micronesia Confidence Survey say they are fulfilling their expectations. They also anticipate more opportunities for growth in 2025.

The Top Companies of Micronesia is an annual feature of Guam Business Magazine that highlights businesses with an annual revenue exceeding $1 million. The list provides the financial standing of the companies and offers insights into the regional economic landscape in which they operate.

Another aspect of the feature is the survey that asks businesses how their company fared in the past year. Based on their experiences over the past year, Guam Business Magazine also asks business leaders what lessons were learned in the previous year.

Several respondents noted the bright spot of U.S. military construction. Readers will see in the list how local companies that have military contracts have risen in rank.

In this year’s survey, more than 73% of respondents said economic expectations were fulfilled this past year and more than 60% anticipate more opportunities to come next year.

Respondents noted that “tourism will continue to recover.” Additionally, opportunities are anticipated in logistics, infrastructure and construction projects. One respondent shares that their outlook is based on continued “federal spending on broadband and Department of Defense facilities.”

The survey indicates a continued trend of optimism and growth — while slower than most wanted — over the past few years. Of course, it didn’t help that after the COVID shutdown, the price of doing business went up with inflation, and then, at least for those in Guam, a typhoon left many businesses without water, power and even communication — some for several months.

Nonetheless, some businesses in the region reported growth with 53% of survey respondents saying they saw an improvement in their bottom line compared to the previous year.

This year, 40% of respondents said business levels were maintained. In comparison, the 2023 survey showed 78% reported improvements.

According to survey respondents, the slow recovery in tourism impacted growth.

Responding to seven survey questions, participants addressed the improvement of their company’s position, with 40% stating their companies are doing “much better,” and 30.33% reporting a “somewhat better” financial status. This marks a trend in slight improvements that started a few years ago:

2021: 50% of respondents noted improvements
2022: 74.9%
2023: 78.5%

An interesting point of comparison is in 2023, 21.43% of respondents said their companies bottom line was worse than the previous year. In 2024, none of the respondents reported worse performance, instead saying business levels were maintained.

Another survey question with responses worth noting was the staffing numbers, with 60% showing increases and 33% saying staffing numbers remained the same. That’s comparable to 2023 responses, which showed 57% of respondents had an increase and 35.7% stayed the same. A majority of respondents reported they are anticipating increasing staffing levels, a couple by as much as 10%. That would be good news for Guam’s economy overall, assuming the labor is available.

In 2023, GBM introduced a new question which also indicated buffered expectations. In the 2024 survey, 39% of respondents either exceeded or expected to exceed pre-pandemic positions. That’s a decrease from the 50% in 2023 but respondents noted very similar concerns about U.S. interest rates and the cost of doing business.

A little over 50% of respondents said they are one year or more from achieving their post-pandemic levels.

What have you and your company learned by doing business during the past year?

Editor’s note: Companies participating in this year’s Top Companies Survey were asked the question above. The following are responses from leading executives.

Eun

“Life is full of challenges, but when we focus together, we can overcome them.”

Ho S. Eun
Chairman
Core Tech International Corp.

Visutseth

“Mobil continues to adapt in a rapidly changing and challenging business environment. Our team remains steadfast in providing fuels and products to meet the evolving needs of locals and the business community in Micronesia.”

Pongsathorn Visutseth
President
Mobil Oil Guam Inc.

Heller

“The Amentum team is dedicated to scaling engineering solutions and enhancing global agility, ensuring exceptional and unmatched support for customers’ missions worldwide, culminating in a triumphant 2023 and laying the foundation for sustainable growth in the years to come.”

John Heller
CEO
DZSP 21

Kaae

“The Black Group of Companies continues its success as an industry leader in 2024 attributable to the dedicated and hardworking personnel that make up the Black Family.”

Leonard K. Kaae
Senior vice president and general manager
Black Construction Corp.

Calvo

“As a locally owned company, we will continue to refresh and develop new strategic initiatives that will ensure our sustainability and growth through periods of economic instability, competition, natural disasters, and epidemics. Looking at the COVID Pandemic and Typhoon Mawar through our rear window, we feel we have learned how to endure and thrive through a period of dynamic local and global transition.”

Edward J. B. Calvo
President
PMC Investments Inc.

Yap

“Over the past year, our team at Atkins Kroll and Inchcape has shown remarkable resilience and unity, especially during Typhoon Mawar in Guam. Experiencing my first Category 4 typhoon highlighted the unique Inafa’ Maolek spirit. Despite the challenges, our teams demonstrated extraordinary recovery and rebuilding efforts. This underscores the importance of preparedness and a solid business continuity plan, driven by the Inafa’ Maolek spirit. As we celebrate 110 years in business in 2024, I extend my heartfelt thanks to all my colleagues for their dedication and commitment to our values, inspiring a more resilient future for our team and community.”

Kwok Wai “Alex” Yap
President
Atkins Kroll Inc.

Jones

“During the past year, I have become more concerned with the problem of food security. I guess we all realize that long-term food security will be a much larger problem for the younger generation. We are finding that the labor shortage that is taking place in the United States is bringing about this food shortage much faster than in past years. When we order large quantities of food products from our grocery suppliers in the states, we receive less than 80% from the U.S. food sources. Those sources state that worker shortages is the main culprit for the lack of food supply. I think it would serve us all well to support the food shortage by planting fruits and vegetables with available land and resources that we have. Collectively, the business community could make a big difference in the future food shortage. Currently Triple J is supporting this cause by planting eight acres of fruits and vegetables in our Tinian operations. We average harvesting a little over 500 pounds of produce daily which helps supply produce to the communities in Tinian and Saipan. Let’s all think about this important matter.”

Robert H. Jones
Chairman/CEO
Triple J Enterprises Inc.

Cook

“Over the past year, we’ve learned that resilience, community focus, and innovation are key to navigating challenges while empowering us to achieve record-breaking growth and enhancing our services to better serve and support our customers.”

Joaquin P.L.G. Cook
Bank of Guam
President/CEO

Certeza

“The biggest accomplishments this past year: GTA secured up to $200 million in strategic growth investment from Stonepeak, an alternative investment firm for digital infrastructure. The investment bolsters GTA’s fiber network, expands data centers, and enhances Guam’s role as a strategic hub for transpacific subsea cables. GTA launched GTA Fiber, a 100% fiber internet network delivering fast, reliable internet directly to homes and businesses. GTA’s GNC iX Data Center in Guam is a strategic point-of-presence for both PLDT Global and Telstra International, enhancing network performance, reducing latency, and strengthening Guam’s role as a key connectivity hub in the Asia-Pacific. This move supports major submarine cables and boosts the island’s data center industry.”

Roland Certeza
President/CEO
GTA Teleguam

Morris

“Everything we do at FSMPC is aligned to our mandate under the public law(s), national policies and strategies. We align our efforts and resources to meet national priorities, and we will continue to make positive contributions in the communities we serve.”

Jared C. Morris
CEO
Federated States of Micronesia Petroleum Corp., which does business as Vital.

Shimizu

“We and most businesses realize that Guam’s population and tourism numbers have not increased; many believe the numbers have actually decreased, particularly our population numbers. The private sector in most cases has taken steps to account for this unfortunate happening. I am not sure the public sector has: is there a freeze on spending, on hiring, on across the board pay increases (not to be confused with raises based on merit or performance)? It’s a difficult situation we are in; however, unless our government, both the legislature and the administration take corrective action, the private sector will likely bear the load. Hello and Hafa Adai to increases in taxes, fees and charges.”

Frank S.N. Shimizu
President/CEO
Ambros Inc.

Koeppen

“We have learned to accept changes in business culture, broaden our horizons, and be more flexible in day-to-day operations while continuing to grow and move forward.”

Robert E. Koeppen Jr.
CEO
South Pacific Petroleum Corp.

Jones

“We have acquired excellent real estate parcels strategically located directly across from the new Camp Blas gate and next to the entrance of Tiyan Airport Road. Our goal is to respond to the construction, residential housing and warehousing needs in the upcoming years. On the food wholesale side, we continue to push building our leadership position in the snack and beverage categories by emphasizing quality, freshness, availability, and value.”

Ramona L. Jones
CEO
Jones & Guerrero Co. Inc.

Untalan

“After Typhoon Mawar’s impact last year, First Hawaiian Bank has been dedicated in its support for our island community. As we near the fourth quarter of 2024, our commitment to improving our services remains, aiming to secure a stable financial future for our customers in Guam.”

Edward G. Untalan
Executive vice president of Retail Banking Group & regional manager
First Hawaiian Bank

Ferguson

“Balancing the need and desire for product innovation with the sometimes-competing objective to be cost conscious in a still recovering tourism industry.”

Benjamin H. Ferguson
General Manager
Pacific Islands Club

“The deep relationships Bank of Hawaii has cultivated — and continue to nurture — is key to providing ongoing support to customers and businesses in Guam. This close-knit community benefits from Bank of Hawaii’s personal touch from our teammates and will enjoy a modern Bank of Hawaii West Pacific regional headquarters in Tamuning in 2025.”

Peter S. Ho
Chairman and CEO
Bank of Hawaii

Stewart

“This past year we found the need to re-focus on building our team and culture. Safety, quality, teamwork, customer focus, innovation, and performance are the hallmarks of Pacific Rim and our team. We will continue building a Team that is poised and ready to build great projects here in Micronesia and beyond.”

Keith J. Stewart
President & CEO
Pacific Rim Constructors Inc. and affiliates

Kramer

“Put a high value on feedback from staff. We’re confident that there will be an acceleration in economic activity in our region and that preparation for our participation will be rewarded.”

Daniel Kramer
Director
Pacific International Inc.

Sugie

“This past year, we upheld and remain steadfast to our Hilton brand promise, enhanced our offerings, and completed the Premier Tower renovations to stay competitive in the current economic climate. However, currency devaluation in key source markets such as South Korea and Japan continues to challenge Guam’s tourism, broadening the competitive landscape. Despite these shifts, our team has adapted and remains committed to delivering exceptional guest experiences in a rapidly changing market.”

Hiroki Sugie
General manager
Hilton Guam Resort & Spa

Deliquina

“Coast360 recognizes the growing significance of investing in the development of our leadership and team members in order to remain relevant to those we serve – our members and the community.”

Gener F. Deliquina
CEO
Coast360 Federal Credit Union

Alcorn

“This new business environment achieving opportunities or goals takes so much more effort.”

David A. Alcorn
President
GFS Group

Sutton

“The wellbeing of employees is important to a successful business.”

Aaron Sutton
Guam Office Manager
GHD

Day

“Guam and the Western Pacific are going through an unprecedented period of development of data and information infrastructure including submarine fiber optic cable systems, cable landing stations, data centers, and local on-island fiber optic connectivity for island residents, particularly in Guam, CNMI, and Palau. In addition, the U.S. Department of Defense is investing billions of dollars in upgrades and new facilities on Guam and in Micronesia. PDS is leveraging its unique resources and capabilities to participate in these new projects and help shape the future for the new Digital Information Age in the islands.”

John Day
President/COO
Pacific Data Systems

Bonsembiante

“We have discovered that a key element of our success lies in our personnel’s ongoing training and development, ensuring they are continually exposed to new challenges. We are committed to providing opportunities for recent graduates and investing in the growth of emerging talent within the construction industry. By fostering an environment that encourages learning and development, we not only enhance the skills of our team but also contribute to the future of our industry, ensuring that the next generation of professionals is well-prepared to meet the demands of an ever-evolving field.”

Hernan A. Bonsembiante
President
Amorient Engineering

Radonich

“Winning a contract does not mean you can start work, plan for delays.”

Stevyn J. Radonich
President
Guam Marine Services Inc.

Beery

“Typhoon Mawar was a boost in terms of unplanned new work for construction, but it put a real dent in our planned backlog of work’s timing, etc.”

William D. Beery
Vice president
Tutujan Hill Group Ltd.

Iribarren

“Globally the maritime industry is further struggled to keep pace with the demand for highly trained and credentialed mariners, which is why we invest heavily in local talent development—so much so that our company invests heavily in our local workforce training and we have opened a maritime training center on Guam where mariners may take classes to upgrade and maintain their licensees.”

Gary Agustin Iribarren
Director and general manager
Seabridge Inc.

Walls

“We learnt to always be looking to grow our business strategy and rebranded our Green Turtle Haggan with Guam’s Made In Guam seal to create a stronger local Guam brand. This has created business opportunities internationally in Japan, which possibly means the Guam Green Turtle company may ‘go with the flow’ with a new local business partner who will continue to “make coffee better.”

Peter W. Walls
President
Slingstone LLC

Gutierrez

“Over the past year, our company has embraced several key lessons that have significantly contributed to our growth, such as being resourceful, taking more risks, and staying resilient. Together, these lessons have fostered a culture of innovation and agility, positioning us for continued success in a dynamic environment.”

Jenynne Christine G. Gutierrez
President/co-owner
Guam Temps Inc.