Businesses respond on 2013 performance and confidence in the economy moving forward
By Jackie Hanson
The past year of business proved to be positive for the majority of companies included in the Top Companies list this year.
Out of the 30 companies on the list, all of which grossed more than $1 million in revenues in the last fiscal or calendar year, only seven reported lower revenues than last year, the highest decreases being 26% and 10%, the other five of the seven reporting decreased revenues of 6% or less.
Two companies maintained nearly the same revenues as last year, while 21 of the 30 companies reported increased gross revenues, seven of those reporting more than 10% growth. Among the top seven for growth, four are involved in engineering, contracting and/or construction. Also seeing increases this year were those companies involved in government contracting, real estate, the automotive industry, wholesale and hotels.
All petroleum companies on the list this year reported decreases in the neighborhood of 3% to 5%. The region’s banks, for the most part, stayed even, experiencing either slight increases or slight decreases. Telecommunications companies all fared anywhere from marginally to substantially better than last year.
Regardless of how business went in the past year, 88% of businesses that responded to our annual confidence survey on the economy said their economic expectations for the year were fulfilled, and the same number expressed optimism that 2015 would bring revenue growth, 62% of which predict 3% to 5% revenue growth; 23% predict 8% to 10% revenue growth; and 15% expect 20% to 25% revenue growth.
Along with the growth expected, half of the survey respondents said they expect to hire staff in 2015. Of those, 57% expect to increase their workforce by 1% to 5%, and 43% expect to increase their workforce by 10% to 15%. One company expected to decrease its staff by 15%; another expected to decrease its staff by 2%.
Nearly 78% of respondents to the survey said they believed the economy would provide specific opportunities for their businesses in 2015. The reasons provided for their optimism included the potential for more government-funded projects, confidence in the military buildup, tourism growth and timely payment of tax refunds. Some expressed concern about any continual increases in minimum wage and that those increases would harm the outlook for businesses in 2015.
A number of companies declined to participate in the list of Top Companies, though some did respond to the anonymous economic confidence survey. The main reason given for not participating was being a privately held company and not wishing to share revenue numbers.
United Continental Holdings Inc. last participated in the list in 2012, ranking number one with $571.50 million in revenues for Micronesia in 2011 and $3.97 billion in gross revenues for the Asia-Pacific region. For 2012, the airline reported $6.04 billion in revenues for the Asia-Pacific region from all points of sale including Micronesia. This year the airline reported its revenues for just the Pacific region, which were $5.79 billion.
United’s 2012 Annual Report states a $391 million, or 8.6%, increase in passenger revenues in the Pacific region from 2011. In its 2013 Annual Report, the airline posts a $212 million, or a 4.3%, decrease in passenger revenues from 2012. The report states that the revenues were “impacted by factors including additional competitive capacity in China and the Japanese yen weakening against the U.S. dollar, resulting in lower Pacific yields[…]”.
For employment, United reported having “over 1,000” employees in Micronesia in both 2011 and 2012. United employment numbers are expected to decrease, which may remove the company from the position of Guam’s largest private employer. Black Construction Corp. reported a workforce of 1,376 this year, followed by Calvo Enterprises Inc. with 1,207.
The List hopes to officially welcome United back to the Top Companies in Micronesia list in future years.
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