>> Download the HB500 2007 List
Although it contains but 73 companies out of the HISPANIC BUSINESS 500®, the wholesale sector rules the roost for the top Hispanic-owned companies in the nation.
Featuring companies ranging from top-ranked telecom distributor Brightstar Corp. to Urbieta Oil and Quirch Foods, the sector's revenues of $7.8 billion make up 21 percent of the list's $36.3 billion total revenues posted in 2006. And that slice is growing – revenues in wholesale were up 40.9 percent from the previous year's list, which hosted 68 companies in that sector.
The highest average revenues, as might be expected, can be found in the automotive sector. Despite Detroit's woes, the Hispanic Business 500's auto companies, most of them car sellers, average revenues of $184.7 million apiece.
All told, revenues for the elite list were up 4.2 percent for the year – impressive, but a tad disappointing following three straight years of double-digit gains. And of course, in a dynamic market like the exploding Hispanic one, year-to-year comparisons aren't necessarily apples-to-apples – this year's Hispanic Business 500 has 63 new companies listed, a turnover of almost 13 percent.
Also reflecting that boom, one out of 10 companies on the list was founded this decade.
>> View the Top Companies by Sector Despite the wholesale sector's surge, productivity was down, according to an analysis by our HispanTelligence® unit. Revenue per employee in wholesale was $927,049 in 2006, off by 19 percent. In fact, productivity was down across much of the Hispanic Business 500, with a glaring exception in retail, which was up an impressive 84 percent to $211,327. Some of these changes can be attributed to employment trends – the number of employees in the wholesale sector rose from 4,861 to the current 8,424, while in retail it dropped from 16,731 to 8,065. Overall employment among companies returning our survey was up 13 percent from the year before, rising to 147,465. The service sector and its 80,874 workers represent more than half that tally. While wholesale was on a tear, a look at the numbers shows that 2006 was not the best year for construction – a trend that the current subprime mortgage meltdown may push into next year. Revenues in the construction sector were down 20 percent from a year earlier, although that $6.9 billion still makes up a hefty 19 percent of the directory's total [and three construction firms are among the list's Top 10]. This decline comes even though the Hispanic Business 500 now has 90 construction firms listed, up from 87, and follows a very positive 2005 when revenues were up 30 percent.
But broad-brush numbers don't tell the whole story. JASCO Construction of Miami, for example, saw its revenues jump 223 percent, while Associated Construction Services of Whittier, California was up 196 percent. In fact, those two companies topped every other company on the list for percent revenue growth. They also represent another salient fact about the Hispanic Business 500 – Florida and California remain the epicenters of Hispanic entrepreneurial activity. One out of four companies on the list are from Florida, and one out of five in California. This marks the third consecutive year that Florida has had more Hispanic Business 500 companies than the much more populous California, which had topped the list every year previously except for 1989. As the Hispanic population in the United States spreads out more evenly throughout the United States, Hispanic-owned businesses are following the same suit. Among the top 10 states on this year's list – based on the number of companies, not revenues – Florida, Texas (No. 3), and Georgia (No. 10) were the only states that saw an increase in their respective number of businesses represented, up four, three, and one. The other seven states – California, New Mexico, Virginia, Illinois, New Jersey, New York, and Michigan – either stayed the same or saw small declines. However, the total revenues in six of the 10 states rose from the year before. The top 10 states represent 82.6 percent of the total revenues of the Hispanic Business 500 this year, a tad off last year's 82.9 percent.
METHODOLOGY Hispanic Business research staff gathered data for the 25th anniversary listing of the 500 largest Hispanic-owned companies in the United States from a company profile form returned by the companies themselves. Companies included in the 500 must show at least 51 percent ownership by Hispanic U.S. citizens, and must maintain headquarters in one of the 50 states or Washington, D.C. Principals must be U.S. citizens. Companies must submit revenue figures based on line 1(c) of their corporate/partnership tax return. The revenue figure must be submitted on a signed form verified by the CEO, CFO, or a CPA representing the company. Nonprofit organizations, advertising and public relations agencies, and companies based in Puerto Rico are not eligible. While Hispanic Business makes every attempt to locate and include the largest Hispanic-owned companies in the country, we cannot list companies that do not submit the required information by our deadline. To ensure that your company is considered for future Hispanic Business directories, please send your name, company name, mailing address, phone number, fax number, and e-mail address to our Research Department via fax at (805) 964-6139 or via e-mail at firstname.lastname@example.org. Indicate that you would like to have a Company Profile form sent to you. Profile forms are also available on our Web site.
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