Sales, Employment Soar at Black-Owned Companies : Minorities: Magazine says growth in 1993 far outpaced that at majority-owned counterparts.
Sales and employment at the nation’s biggest black-owned companies surged in 1993, far outpacing the growth rates of their majority-owned counterparts, Black Enterprise magazine reported.
Its ranking of the top companies shows an annual sales gain of 13.9%, down from the 1992 rate of 14.1% but still triple the 4.5% gain achieved by the Fortune 500 industrial companies last year. Total revenue exceeded $10 billion for the first time in the history of the ranking. Moreover, while the biggest mainstream manufacturing and service businesses continued to slash jobs in 1993, the companies in the Black Enterprise ranking showed a 22% increase in employment.
The magazine attributed the improvements to a fitful but unmistakable economic recovery, a spending boom helped by the tonic of lower interest rates, an expensive Japanese yen that made U.S. cars more affordable and black-owned car dealers more profitable, and the underlying tenacity of black entrepreneurs.
“Despite fierce competition and an unforgiving economy, black businesses were able to achieve greater productivity from increasingly scarce resources and yield a record breakthrough of over $10 billion in revenue,” Publisher Earl G. Graves said.
The combined $10.28-billion revenue figure is small in the realm of mainstream corporate America--it’s less than the revenue of Merck & Co., the nation’s biggest drug company and the No. 46 firm on the Fortune 500 list.
But in contrast to the stagnant growth rate of many Fortune 500 companies, the rate of increase among the biggest black-owned companies has been surging. It now is more than 50% above its level at the beginning of the 1990s.
The employment gain also contrasts with staffing cutbacks at majority-owned counterparts, and it marks the biggest annual increase in jobs among the biggest black-owned companies in six years.
“While the leading economic indicators were often contradictory and the unsettling stench of layoffs filled the air, reports that the nation was regaining economic strength had far more credibility in 1993 than they had the year before,” the magazine said. “That credibility was boosted by the BE 100’s return to the business of job creation last year.”
New York-based TLC Beatrice International Holdings Inc. remains in first place in the magazine’s top 100 industrial and service companies, with more than $1.7 billion in revenue. Johnson Publishing Co. of Chicago remained in second place, with revenue of $293.8 million.
In a separate ranking of the top 100 automotive dealers, the No. 1 company remains Trainer Oldsmobile-Cadillac-Pontiac-GMC Truck Inc. of Warner Robins, Ga., with annual sales of $403 million.
Carter Federal Savings Bank in New York is the top financial company, with assets of $301.7 million. North Carolina Mutual Life, the nation’s oldest black-owned insurance firm, is the biggest insurer, with 1993 assets of $217.7 million. Pryor, McClendon, Counts & Co., a Philadelphia investment firm, is the top black investment bank, with $1.65 billion under management.
The list of firms included eighth-ranked Cross Colours, an apparel manufacturer based in Commerce. However, the Black Enterprise list--compiled in 1993--does not reflect changes at Cross Colours. Threads 4 Life, which produced the Cross Colours line of clothing, said it sold its manufacturing operations earlier this year to pay debts.
Black Enterprise reports on the top 100 industrial and service companies, as well as the top 100 auto dealerships in its June issue, on newsstands May 19.
To be eligible, a company must have been fully operational in the prior calendar year and at least 51% black-owned. In addition, it must make or own the product it sells or provide industrial or consumer services.
Top Black-Owned Businesses
How the nation’s top black-owned businesses make their money. Sales by industry, in millions of dollars:
Automobile dealers: $4,123.98 (40.1%) Food and beverage: $2,616.31 (25.5%) Media: $979.80 (9.5%) Technology: $806.28 (7.8%) Manufacturing: $556.01 (5.4%) Construction: $345.51 (3.4%) Health and beauty aids: $258.62 (2.5%) Engineering: $179.12 (1.7%) Other: $415.19 (4.1%)
Source: Black Enterprise
The Top 10
Here are the Top 10 among the 100 biggest black-owned industrial and service companies in the nation, as compiled by Black Enterprise magazine. To qualify, a company must have been fully operational in 1993 and at least 51% black-owned. It must manufacture or own the product it sells or provide industrial or consumer services. Brokerages, real estate firms and companies that provide professional services, such as legal or accounting services, are not eligible. The magazine compiles a separate ranking of auto dealers.
Company-headquarters: 1. TLC Beatrice International Holdings Inc., New York Business: Food processing and distribution ’93 revenue (millions): $1,700.0
Company-headquarters: 2. Johnson Publishing Co., Chicago Business: Publishing, broadcasting, television production, cosmetics, hair care ’93 revenue (millions): 293.8
Company-headquarters: 3. Philadelphia Coca-Cola Bottling Co., Philadelphia Business: Solf drink bottling ’93 revenue (millions): 290.0
Company-headquarters: 4. H.J. Russell & Co., Atlanta Business: Construction and development, communications ’93 revenue (millions): 152.4
Company-headquarters: 5. RMS Technologies Inc., Marlton, N.J. Business: Computer and technical services ’93 revenue (millions): 115.2
Company-headquarters: 6. Anderson-Dubose Co., Solon, Ohio Business: Food distributor ’93 revenue (millions): 115.0
Company-headquarters: 7. Gold Line Refining Ltd., Houston Business: Oil refinery ’93 revenue (millions): 108.1
Company-headquarters: 8. Cross Colours, Commerce Business: Apparel manufacturer ’93 revenue (millions): 97.0
Company-headquarters: 9. Soft Sheen Products Inc., Chicago Business: Hair care products manufacturer ’93 revenue (millions): 96.6
Company-headquarters: 10. Garden State Cable TV, Cherry Hill, N.J. Business: Cable television operator ’93 revenue (millions): 96.0
Note: This list was compiled in 1993 and does not reflect changes at Cross Colours, which sold its manufacturing operations earlier this year to pay a mounting debt.
