Native corporations 'raise the bar of business in Alaska': they operate worldwide, but much of the money returns or stays in Alaska.

• Author: Martin, Michelle

Thirty-four years after they were established, Alaska Native corporations continue to wield a weighty effect on the Alaska economy. Major lines of business include construction, real estate development, oil field services and tourism. There also is an increase in the amount of work regional corporations do for the federal government, both inside Alaska and in the Lower 48. In the 2003 Annual Economic Impact Report, completed by the Association of Alaska Native Claims Settlement Act Regional Corporation Presidents/CEOs, it highlights a survey completed in 2002 by the 13 regional and 30 village corporations showing a combined revenue of $2.4 billion and assets of $2.7 billion; statewide employment of 12,123 individuals; and $6.4 million donated to charitable organizations. Their business endeavors are unique in many ways from traditional corporations, as they not only take into account the economic welfare of their shareholders, but also their social welfare. And while they do business in the Lower 48, they are committed to Alaska, and to bringing money back to Alaska's economy.

OPEN GLOBALLY

Native corporations recognize Alaska as a prime arena for initiating global business operations because of its strategic location and access to world markets. As president and CEO of Anchorage Economic Development Corp., Robert G. Poe assists in worldwide marketing efforts of Native corporations.

"With the traditional Alaska economic model," Poe states, "an (Outside) company comes to Alaska, develops an Alaska resource, and then takes that money home with them." AEDC challenges Native corporations to change that tradition by developing resources outside of Alaska, returning with investments for the community. The corporations have been successful, now characterized by their integration into the national and international business community. By encouraging a diverse economy, Alaska Native corporations improve the economic living conditions of all Alaskans.

SHARING THE WEALTH

Alaska Natives were made shareholders in their respective corporations when they received 100 shares of "life estate stock," a type of stock valid only during the shareholder's lifetime and unable to be sold or borrowed against. "Because the shares are financially different, companies have to get benefits on financial returns now," states Poe. These objectives set the stage for future growth, profitability and other achievements. According to Alaska Business Monthly's "2005 Power List," the sizes of the regional corporations range from Ahtna Inc., with 1,200 shareholders, to Sealaska Corp., with about 17,000 shareholders. Others include: The Aleut Corp., Arctic Slope Regional Corp., Bering Straits Native Corp., Bristol Bay Native Corp., Calista Corp., Chugach Alaska Corp., Cook Inlet Region Inc., Doyon Ltd., Koniag Inc., NANA Regional Corp. Inc., and the 13th Regional Corp. Each corporation boasts many subsidiaries and partners, allowing them increasing corporate visibility and financial revenue.

AHTNA INC.

Ahtna Inc. is headquartered in Glennallen. Established in 1971, they have performed almost $1 billion worth of contracts for major private and government clients. Some of their principal activities include pipeline maintenance, government contracts, inside and outside electrical, fiber-optics installation and real estate management. With revenue of $70 million in 2003, a 7.69 percent increase over FY 2002, Ahtna has the...