Trailblazers leading the state's top business: with combined gross revenues of more than $13.9 billion, these companies lead the state's top businesses.

• Author: Cutler, Debbie
• Position: 2009 Alaska's Top 49ers: TRAILBLAZERS leading the state's top business - Cover story

Everywhere you go there is bad news regarding the nation and state's economy.

While it is doubtful we are in a recession like the rest of the nation, and even the world, we are feeling its effects.

The budget for the Municipality of Anchorage has a shortfall of about $20 million in 2010. Job layoffs, reduced work hours and increased property taxes have or may result.

Plus tourism is in the slumps. Construction is flat. Air cargo traffic down by 10 percent during the first five months of 2009. And oil industry giant BP is facing budget cuts that affect Alaska suppliers and contractors.

The State budget, once flush with wealth, is also facing a shortage this year, according to statistics put out in early 2009. The governor's 2009 fiscal summary shows total revenue for the State for this year at $10.7 billion. Total authorized expenditures are $9.2 billion. Include the PFD expenditures, resource rebate, inflation proofing and additional savings and investments, and that makes the total to spend on budget, including savings and investments, at $13.9 billion, about $3.2 billion more than the State has in revenue resources. Gov. Scan Parnell may have a different vision than this earlier report though.

Add to this that about one-third of all jobs in Alaska are traced to federal spending, which resulted in much economic growth in recent years, but is now also on the decline, and Alaska is vulnerable, according to a report put out by Scott Goldsmith, professor of economics for the Institute of Social and Economic Research at the University of Alaska Anchorage.

LOOKING UP

But not all news is bad. While the state's future looks uncertain at this time, there are many positives. Convention bookings are strong this year and expected to continue to grow in the near future. Oil prices are expected to rise to $93 a barrel in 2012, states the Anchorage Economic Development Corp.'s Three-Year Economic Outlook for 2009-2012. And while after 20 consecutive years of employment growth, employment growth decreased slightly this year, but the job picture will stabilize in the future, the report continued. AEDC also predicts building permits will remain stable and show growth during future years.

There's more good news. Recovery in air cargo landings is expected to improve later this year. Jobs in oil and gas remain high, even though there are layoffs in the support sector. Alaska housing markets are stable. Federal stimulus funds of $1.4 billion have been allocated to construction and government operating programs.

THE STATE'S LEADERS

And then there are the Top 49ers: Trailblazers leading the state's top businesses.

These 49 companies, all Alaskan-owned and -operated, represent leading companies from the construction, finance/insurance/real estate, industrial services, mining, Native organizations, retail trade, tourism, transportation, utilities and wholesale trade sectors.

The Top 49ers employ more than 65,400 workers, of which more than 22,500 were Alaskan. To make the Top 49er listing, a company had to make at least $50.5 million, as was the case with newcomer to the list Alcan Electrical & Engineering, which ranked 49th. The No. 1 ranking company, Arctic Slope Regional Corp., had 2008 gross revenues of $2.3 billion, up nearly 28 percent from last year's $1.8 billion.

Companies on this list had combined total gross revenue of $13.9 billion, up from last year's $11.8 billion.

And of the 49 businesses represented here, 36 (last year it was 38) saw an increase in revenues ranging from about less than 1 percent to more than 271 percent, as was the case with Cape Fox Corp. Thirteen saw a decrease in revenues, most of those less than 10 percent.

"These companies represent a healthy Alaska," said Jim Martin, vice president and general manager. "Most have seen growth during tough times and provide decent wages to thousands upon thousands of workers. These truly are trailblazers, an example for all to follow."

THE ROLE OF NATIVE BUSINESS

An important trend, but not a new one, is the growth of Native corporations in the state. This year, 12 of the 13 regional corporations were included on the listing. In addition, nine other Native organizations made rank.

Native organizations rank first for number of employees, with more than 13,000 Alaskan employees and nearly 55,000 total employees worldwide, both increases from last year. Their total revenues, combined, were about $9.9 billion, up from $7.8 billion last year.

Native organizations bring in 71 percent of the revenue represented by all industries that made the Top 49er listing. They also employ more than 58 percent of all Alaska employees. They provide 83 percent of the jobs provided by all companies on the listing.

Arctic Slope Regional Corp. has topped the listing for 15 consecutive years, this year, as previously stated, with gross 2008 revenues of $2.3 billion. It is the first time any company has topped the $2 billion mark and the first time three companies, all Native, have topped the billion-dollar mark. Bristol Bay Native Corp. ranked second with about $1.3 billion and NANA Development Corp. with $1.2 billion. Other corporations are on their heels: Chugach Alaska Corp. has reported 2008 gross revenues of $952 million, Chenega Corp, $894 million and Lynden $780 million. Definitely companies to watch.

"These companies are the foundation for a healthy economy," Martin said. "This is our 25th year compiling the list, and each year it looks brighter. We have never seen such tremendous wealth by Alaskan-owned corporations. Though many work on a worldwide scale, their operations are in Alaska, bringing dollars into the state, versus the large companies with headquarters elsewhere who provide jobs, but take dollars out of the state into their operations offices. We are very proud of our Alaska companies and expect to see growth continue through the year and into next."

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(1)

Arctic Slope Regional Corp.

PO Box 129

Barrow, AK 99723

Phone: 907-852-8633

Fax: 907-882-5733

Internet: www.asrc.com

Top Executive: Roberta "Bobbi" Quintavell Pres./CEO

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Worldwide Employees: 8,000 Alaska Employees: 3.500 Year Established: 1972 49er Rank Last Year: 1 REVENUE: (Millions $) 2008 2,300.00 2007 1,800.00 2006 1,700.00 2005 1,587.00 2004 1,316.00 Change from 2007 27.78% Main Business: Native Organization

Principal Activities: Energy services, petroleum refining, marketing, engineering, construction, government services, resource development, commercial lending, tourism and communications. ASRC also participates in various partnerships, joint ventures and other business activities.

Subsidiaries: ASRC Energy Services Inc., Petro Star Inc ASRC Federal Holding Co. LLC. ASRC Construction Holding Co., Alaska Growth Capital Bidco Inc Eskimo's Inc., Tundra Tours. All subsidiaries are wholly owned by ASRC. Several subsidiaries have locations in Alaska that are focused on serving local demand for goods and services and on providing capital support for economic development in rural Alaska. Through its subsidiaries, ASRC operates throughout the United States and in several countries overseas.

(2)

Bristol Bay Native Corp.

111 W. 16th Ave., Ste. 400

Anchorage, AK 99501

Phone: 907-278-3602

Fax: 907-276-3924

Internet: www.bbnc.net

Top Executive: Jason Metrokin, Pres./CEO

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Worldwide Employees: 1,700 Alaska Employees: 500 Year Established: 1971 49er Rank Last Year: 2 REVENUE: (Millions $) 2008 1,294.85 2007 1,006.14 2006 762.41 2005 321.07 2004 321.07 Change from 2007 28.69% Main Business: Native Organization

Principal Activities: Diversified holding company; design services, corporate services, environmental/engineering remedial design services, oil-field services, construction management, technical services, IT, engineering support services, card-lock fueling systems and corrosion inspection services.

Subsidiaries: Bristol Environmental and Engineering Services Corp., CCI Inc., SpecPro Inc., Vista International Operations, Petrocard Systems Inc., Bristol Bay Corporate Services and Kakivik Asset Management.

(3)

NANA Development Corp.

1001 E. Benson Blvd.

Anchorage, AK 99508

Phone: 907-2654100

Fax: 907-265-4123

Internet: www.nana.com

Info E-Mail: info@nana.com

Top Executive: Helvi K. Sandvik, Pres.

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Worldwide Employees: 9,300 Alaska Employees: 3,000 Year Established: 1974 49er Rank Last Year: 3 REVENUE: (Millions $) 2008 1,176.50 2007 975.00 2006 822.00 2005 527.00 2004 331.00 Change from 2007 20.56% Main Business: Native Organization

Principal Activities: Oil-field services, mining, hospitality, tourism, contract services, engineering and professional management services.

Subsidiaries: Akima Management Services Inc., Courtyard by Mamott, SpnngHill Suites by Mamott (Anchorage and Fairbanks), Residence Inn by Marriott, Nullagvik Hotel, NANA Management Services LLC. NANA Worley Parsons, DOWL Engineers LLC, Worksafe Inc., NANA Oil Field Services Inc., NANA Lynden Logistics LLC, NANA Major Ddlling LLC, KPSG LLC, Qivliq LLC, Arctic Caribou Inn, Akmaaq LLC, WHPacific and Dowl HKM

Noteworthy Events in 2008: NANA Development Corp. is a wholly owned subsidiary of NANA Regional Corp. Inc. (based in Kotzebue), and more.

(4)

Chugach Alaska Corp.

3800 Centerpoint Dr., Ste 601

Anchorage, AK 99503-4396

Phone: 907-583-8866

Fax: 907-563-8402

Internet: www.chugach-ak.com

Info E-Mail: wphillips@chugach-ak.com

Top Executive: Barney Uhart, Pres./CEO

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Worldwide Employees: 7,000 Alaska Employees: 1,200 Year Established: 1971 49er Rank Last Year: 4 REVENUE: (Millions $) 2008 952.00 2007 900.10 2008 890.00 2005 785.00 2004 700.00 Change from 2007 5.77% Main Business: Native Organization

Principal Activities: Government service contracting, construction, construction management, environmental management services, vocational training, job placement, temporary employment services, hazardous material (oil) spill response services, information...