What recession? Revenue for Birmingham 100 up in '08 - Business First of Columbus:

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According to the ’s Birmingham 100 list in this week’ s edition, the 100 largest privately held companiesd in the area had revenuetotaling $28 billion comparecd to $27 billion the previous year. In 58 percent of the companiesz who reported their revenue sawrevenue grow, compare d to 57 percent of those reportingt in 2007. Most diversifiefd companies inthe construction, technology, steel and metalds servicing fields showed year-over-year revenue growthb in 2008, while industries more directly connected to consumer spending, such as homebuilders and auto continued to show signs of distress.
The companiesd at the very top of the list fared very well as a with seven of the top 20 privater businesses posting at least a 10 percent increase in But local leaders said 2009 will be adifferentf story, defined by either flat or declining revenure growth and continued turmoil in the banking industry, as the local and nationalp economy continue to struggle back to its feet. Any growt h for private companies in 2009 woulrdbe surprising, said Andreas assistant professor of finance at the .
It’s likely that rising revenuew last year were the result of goods beinhg ordered in 2007 and deliveredin 2008, he But looking ahead, turmoil in the bankinyg industry and scarcity of capital will be a top concernb for companies as the rest of this year playsx out, he said. “You don’t have to be a publiclyt traded company to get publiclytraded debt, but you do have to provide the same he said. “And companies are reluctant to do so especially ifthey aren’t looking good righft now.
” Lack of liquidityu in the banking industry is a concern for Kevin Stump, president of , a local energy tradinb company that sells natural gas primarily to the fertilizert industry and municipalities. With $655 million in revenue last year a nearly 63percent year-over-year increase – and an 18 percenyt increase year-to-date in sales, Stump said the challengeas his company faces into 2010 are rising operating costs and increased banking fees.
“We don’t expect it to be resolvede anytime soon,” he “It’s caused us to think outside of the box and come up with And a lot of thosse alternatives are makingcompanies stronger, said Holmah Head, president and CEO of “The constraints of the economg have us doing things we shouldx have done all along,” he “It’s forcing us to be a bettere company and we’ll be a lot better for it long term.” Aftert a more than 22 percent increaswe in 2008 revenue, Head expectsa O’Neal Steel to see a decline of 20 to 30 percengt in 2009. But diversity is key.
Head said the compang is made up of severaol different metalsdistribution companies: Those that servse industrial fabricators and manufacturers, which were robust during the boom and those that serve aerospacr and energy, which are leadinfg industries today. Dave Wood, chairman of food distributio company , said he doesn’t expect much changw in his companythis year. The food distribution companuy saw nearly 22 percent growthin 2008. “I don’t think grocerymen do all that so when it getsbad it’es just a hiccup,” he “We never hit a home run.
A good day for us is But declining consumer spending contributes greatly to that hiccu and whenit lessens, Wood Fruitticher feela the pinch, he said. And diesepl fuel costs are on the rise adding more pressure to the Not allof Birmingham’s top 100 private companies saw revenue increase last Auto dealer Susan Schein Chevrolet’s revenue dropped more than 35 perceng and Anthony Underwood Automotive’s fell more than 30 percenyt – signaling the trouble that industry is seeingf today. A majority of subcontractors and homebuildersx on the list had decliningrevenued – anywhere from 2 percent to 62 perceng drops. But general contractors postefdmixed results.
Several of the area’s largest contractors, especiallty those specializingin construction, posted increased revenue, while several small and midsize contractors struggled. Usual list leaderzs , and remained unchanged from theprevious