U.S. Hispanic-owned companies continue to surge—at least at the top.
This year’s HispanicBusiness 500 list shows growth across all nine sectors. However, major swells were concentrated at the top of the list during the economic recovery, leaving few breaks for smaller companies.
And proving that when you’re on top you tend to stay on top is Brightstar Corp.’s CEO, R. Marcelo Claure, who grew his revenue from $4.6 billion to $5.7 billion and his workforce from 3,300 to 4,114.
Molina Healthcare, another longtime HB 500 celebrity, cracked into the Fortune 500, paving the way for other Hispanic companies. MasTec Inc. jumped a spot to the No. 2 position, while The Related Group repeated its ranking at No. 3. Flexing her female power, Carmen M. Castillo of SDI International Corp. grew her company’s revenue by 276.9 percent, from $260 million to $980 million, and more than doubled her workforce.
But it was another company that impressed with the largest revenue growth. JBAR Enterprises LLC, a construction and professional services and energy solutions business, grew from $21,000 to $4 million, an 18,495.9 percent jump. JBAR and its CEO, Robert Alvarez, are new to the HB 500.
The HB 500 generated a combined $37.8 billion, up 18.6 percent from 2010—a huge jump from the 2009-2010 growth of 5.7 percent. Even more impressive is the fact that in 2009, Hispanic enterprises were down 16.6 percent compared to 2008.
The larger companies are seeing the greatest growth, both in terms of total revenue and percentage of growth. The top 100 companies’ revenue accounted for 83 percent of the total revenue, compared to 79.8 percent in 2010, and showed a 23.4 percent growth overall, compared to just 8.4 percent in 2010.
Employment on the HispanicBusiness 500 also saw a jump—its first increase since 2006—of 12.1 percent, for a total of 128,526 employees. To give some perspective, employment among the HB 500 in 1997 was 87,081.
The largest employment increase was in the energy and retail sectors, with positive jumps of 62.1 percent and 45.4 percent, respectively.
Seven of the nine sectors saw an increase in revenue from 2010 to 2011. Just two years ago, seven of the nine sectors had been in negative figures, according to HispanTelligence, the research arm of HispanicBusiness.
The wholesale sector brought in the most revenue, reaping $9 billion, or 23.9 percent of the list’s revenue, followed by the service sector, which generated $8.7 billion, or 22.9 percent of the list’s revenue.
However, there are just 51 companies in the wholesale sector, while the service sector has 215. Broken out according to average company revenue by sector, energy held the lead at $1.9 billion per company, while wholesale was in second place with $1 billion per company.
Florida took over the reins as the state with the most Hispanic enterprises, at 120, leaving Texas and California in the No. 2 and No. 3 spots. Companies in Florida produced more than $17.1 billion in revenue. Overall, the top 10 states in the HB 500 generated $32.6 billion in 2011.
Seven of the top 10 states showed an increase in overall revenue, with only California, Arizona and New Mexico slipping, according to HispanTelligence. The star of the nation was Florida, where Hispanic enterprises generated $17.1 billion in 2011, compared to $13.1 billion in 2010.
If this growth is an indicator of what’s to come, it will be exciting to see what our 31st HB 500 brings.
UPDATE: MicroTech inadvertently but significantly underreported its income for 2011 at $117 million. The correct figure is $342.2 million, moving the Virginia technology solutions company up to No. 21, and increasing the revenue of the HispanicBusiness 500 to $38.04 billion.