[ad_1]
The income figures reflect a year in which tourists returned, real estate prices rose and people went shopping again.
The 39th edition of the Top 250 list offers a welcome picture of a recovering economy. This annual survey tracks changes in the fortunes of individual companies and specific sectors, as well as the overall business climate in Hawaii.
every year, Hawaii Business Magazine It asks hundreds of companies and nonprofits to share their gross income figures from the previous year. Most of the information we collect is self-reported and some is obtained from public sources. Locally based companies report all their gross income; Companies located elsewhere report only their Hawaii income.
Every sector was higher in 2021, which is good news after a difficult 2020. Not only that, but a few companies in our database are closed and a few emails are undelivered.
Eugene Tian, chief state economist at the Department of Business, Economic Development and Tourism, said there was no published government data on business closures last year. But in a survey completed in March 2021, 55 percent of local businesses said they were fully open, while 45 percent said they had cut their hours or were temporarily closed.
Only 1.8% — about 600 companies — planned to close permanently, Tian said. Of these, 81.8% were businesses with 10 employees or fewer, and 27.3% were in tourism-related industries such as retail and restaurants.
In another sign of strength, many more companies participated Hawaii Business Magazine This year’s top 250 survey. Last year, some companies didn’t complete the Top 250 survey — perhaps because they didn’t want to report their weak 2020 numbers.
Another good sign: No. 250 on this year’s list reported $3.7 million in gross revenue. The 250th company on the 2021 list reported $1.3 million.
Tourism brings huge profits.
Hawaii’s visitor industry is back strong in 2021, with plenty of people to prove it. According to UHERO data, About 6.8 million people arrived by air in 2021, more than 2.7 million in 2020, but less than 10.4 million people in 2019.
More tourists means more spending, which is up 152% year-over-year in 2021, to nearly $13 billion, DBEDT said. The first half of 2022 will show more visitors and spending this year.
The return of tourists has brought good results for the companies that rely on them. Among the top 250, 2021 total revenue of the 13 tourism companies reporting data increased by an average of 124% in 2020.
The group’s total revenue was over $951 million in 2021, up from just $397.5 million in 2020. This is less than the $1.5 billion recorded in 2019, but the gap is closing.
To see the top 250 list instantly, click here to subscribe! The list is available to digital and print subscribers.
Hotel companies and airlines
The largest tourism company on the Top 250 is Kio-Ya, which owns Royal Hawaiian, Sheraton Waikiki, Moana Surfrider and Sheraton Maui Resort & Spa, among others. The company’s total revenue is up nearly 120% from 2020, at $405.3 million, but down from $713.3 million in 2019.
Second-largest Prince Resorts reported total revenue of $195 million in 2021, just below Lion’s $196 million in 2019. and Kawailoa Development LLP, which owns the Grand Hyatt Kauai Resort and Spa and Poipu Bay Golf Course, reported a total of $104.5 million. Revenue in 2021 – down 20% from 2019.
Airlines that have been transporting people to the Aloha State have made similar profits. Hawaiian Airlines In 2021, total revenue increased by 89% in 2020, and Alaska Airlines saw growth of approximately 147%. But both still got 2019 results.
Matson’s best year
While airlines are still returning to pre-pandemic levels, the cruise industry has In 2021, it showed remarkable growth.
Matson, Hawaii’s largest shipping company, expects total revenue to grow nearly 65 percent to $3.925 billion in 2021. In the year In 2020 and 2019, the figures were $2.38 billion and $2.2 billion, respectively. Net profit in 2021 was more than $927 million, up $193 million from last year.
Matt Cox, chairman and CEO of Matt-Sun, said much of that growth came from increased demand for Chinese goods.
“Half of the world’s air cargo was in the bellies of passenger planes. “Half the capacity was lost in literally a week when the outbreak hit,” he says. “So many items, including a lot of personal protective equipment, had to be transported by boat.”
Widespread Chinese roads
Mattson was ready to act. The company Launched in 2006, it operates a weekly trans-Pacific route between the mammoth ports of Xiamen, Ningbo and Shanghai in China and Long Beach, California.
In the year In 2020, Matson quickly opened a second route from China to Long Beach, and in 2021, the company launched a third service from China to Oakland, California. According to earnings reports, Mattson’s container volume from China to the West Coast increased 55.4 percent in 2021 compared to last year.
International shipping is big and competitive, and Mattson is “a very small player in international markets,” Cox says. “We’re not trying to have a global footprint.” But despite the economic uncertainty of the pandemic, the company has realized that consumer demand is rising faster than other exporters, he said.
“We made a very important move and leased every ocean container we could get our hands on and positioned ourselves well,” he explained.
To see the top 250 list instantly, click here to subscribe! The list is available to digital and print subscribers.
Overcrowding at West Coast ports
In addition to leasing containers and ships, Matson owns its own fleet, and its three trans-Pacific lines are faster than its competitors, Cox said. By 2022, the company has its own West Coast terminals, containers and chassis in partnership with shipping companies, thereby bypassing much congestion at the ports.
“When we look at the chaos and confusion in the supply chain, we’re looking over our shoulders and head,” says Cox. All said, “2021 was our best year in the company’s 140-year history.
Another boost to Mattson’s earnings is the dramatic increase in global freight rates, which have more than quadrupled since 2019.
“There’s been an explosion in e-commerce and people doing things like home improvement, and consequently spending more on merchandise, which has overwhelmed freight capacity,” Cox explained. “Each ship had more demand than it could carry.” The result was ballooning freight rates.
However, Cox noted that domestic freight rates from the U.S. mainland to Hawaii and Alaska are rising by 3% or 4% a year, along with rising fuel costs.
“We used the Hawaiian launch to expand. But Hawaii will always be our home and our first place of responsibility,” says Cox.
Other local shipping companies have also seen growth. Pasha’s total revenue increased by 18.2% in 2021, while Young Brothers increased by 36.6%.
Construction continues.
In the year In 2020, construction was a stable force in the state’s economy, accounting for 6.2% of GDP. As tourism weakens, projects such as new and remodeled homes, hotel renovations, infrastructure works and military installations continue to be shut down.
Last year, the construction was strong. The 36 construction and development companies on the current top 250 list saw an average increase in total revenue of 11.3% in 2020. The companies’ total revenue will exceed $110 million in 2021, compared to $96 million in 2020.
The average number of full-time workers was flat at 187 in 2021 and 182 in 2020.
The real estate frenzy grows
Bidding wars, cash-only offers and homes selling in an average of nine days: real estate is headed for a recession in 2021.
As a Hawaii Business Magazine From the March 2022 report, sales of single-family homes and condos in 2021 rose 29 percent from their pre-pandemic peak in 2019. In the year Total sales in 2021 were $22.2 billion – up 64 percent from 2019.
The hot market coupled with limited supplies has created a housing crisis for many residents. But for many sellers and real estate professionals, the picture looks very different.
Among the 15 residential and commercial real estate companies on this year’s list, 2021 gross revenue averaged more than $102 million — up from $87 million in 2020 and $96 million in 2019.
Car sales earned 1.1 billion dollars
Across the country, supply chain fraud has made cars and trucks harder and more expensive to find.
This shows high revenue for 14 of the top 250 auto dealers – including top-ranked Servco Pacific, which also has branches in musical instruments and venture/growth capital. The group’s total sales were $5.1 billion in 2021, $4 billion in 2020 and $3.7 billion in 2019.
Jim Falk Automotive Group, the second-largest auto dealership company on the Top 250, reports 2021 gross sales of $411 million. Even the smaller Hilo-Kona Mazda Subaru Hyundai reported gross sales of around $38.8 million. The total sales of the two companies increased by 24% and 11.4% respectively.
To see the top 250 list instantly, click here to subscribe! The list is available to digital and print subscribers.
Punahou doubles its total revenue
Among the 10 schools and universities on the 2022 list, most reported total revenue fairly stable, down from 10% at the UH System to 22% at Hawaii Baptist Academy.
But the Punahou school saw an impressive 104% return, bringing total revenue to $232 million in 2021, compared to $114 million in 2020. Like Kamehameha schools, which jumped 88% in the 2021 edition of this list, school officials said they found an accounting change that affects how they report investments.
More reason is that Punahou has “seen good returns on endowment investments that are used to support school priorities such as financial aid,” the school said in a statement. The total market value of funds issued in 2021 was $361 million — a one-year increase of $36.4 million.
New arrivals to the list
Top 250 welcomes many newcomers from many fields. Companies and organizations listed by gross revenue include:
Honolulu Authority for Rapid Transit, Elite Companies, Corcoran Pacific Properties, Hale Koa Hotel, Westpac Wealth Partners Hawaii, Waikiki Health, Hawaii Baptist Academy, Hawaii Humane Society, Elemental Expert, National Tropical Botanical Garden, Maunalani Nursing and Rehabilitation Center, Century 21 iProperties Hawaii, Malama Solar, Aloha Green Holdings Inc., Lifecycle Engineering, ATN Construction, Alana Investment Group, Boys & Girls Club of Hawaii, Vivia Cares Inc., Integrated Facility Services Hawaii and Kona Beach Property Management.
“I am 100% confident that this vicious cycle we are in will end and supply and demand will return to balance.”
– Matt Cox, Chairman and CEO, Mattson
Rising inflation
In the year While the results for 2021 are encouraging, inflation is quickly rising, casting a shadow over Hawaii’s recovery.
Higher interest rates designed to reduce inflation are slowing the housing market, and as fares rise, visitor numbers may begin to decline again. As essentials like rent, food, and gas become more expensive, spending is likely to fall overall.
Insatiable demand for electronics, furniture and fashion from China for the shipping industry is expected to slow, which could loosen supply chains, but also reduce trade.
Matson’s Matt Cox summed up the prospects for 2022 and beyond nicely: “I’m 100% confident that the bullish cycle we’ve been in will end and supply and demand will come back into balance.
To see the Top 250 list instantly, click here to subscribe! The list is available to digital and print subscribers.
[ad_2]
Source link
