Alaska Native Corporations: big boost to Alaska economy.

• Author: Harrington, Susan
• Position: FROM THE EDITOR

Alaska Native Corporations formed under the Alaska Native Claims Settlement Act (ANCSA) contribute a vast amount and diverse array of economic stability to the state's $50 billion-plus GDP. The majority of this is accomplished by the twelve regional corporations, of which we've provided an overview and a directory as part of this month's annual Alaska Native Business special section.

Aggregated reported 2015 gross revenue for the twelve regional corporations is $8.5 billion, down about $100 million from 2014. Companies reported 119,223 shareholders and 45,489 worldwide employees, with 14,563 in Alaska. Those numbers are expected to grow in 2016 with expanded operations and acquisitions of more subsidiaries.

Last year's Alaska Business Monthly Top 49ers, featured in October, included twenty ANSCA corporations, which included eight village corporations in addition to the twelve regional corporations. Overall 2014 gross revenues for these companies topped $11 billion-74 percent of all Top 49ers gross revenue. Tune in next month for what we promise will be another amazing display of dominance by Alaska Native Corporations in the Top 49ers.

The success of Alaska Native companies is due in part to a host of multi-faceted factors including exceptional leadership, evolving business models, shareholder-focused missions, and continuous diversification. ANCSA Regional Association reported in its latest economic impact report that 2014 net profits for the twelve regional corporations "amounted to nearly $305 million, up 98 percent from $154 million the previous year."

The Association also noted that all ANCSA regional and village corporations (except the 13th Regional Corporation) are based in Alaska along with most administrative and management functions. "This means that all profits are returned to the Alaska economy ... the net result being that Alaska Native Corporations effectively import profits to Alaska ... reversing Alaska's historical economic model."

Native businesses are featured prominently this month and not just in the special section Alaska Native people and companies are found in every sector of the Alaska economy and throughout the September issue of Alaska Business Monthly. The team at Alaska Business Monthly...