Kingston Rules, but Hispanics Dominate Minority List
By CHRIS CZIBORR
For the first time, Hispanic-owned companies dominate the Business Journal’s annual list of the largest minority-owned businesses here.
Hispanic-owned businesses make up 22 of the 45 entries on this year’s list, which is expanded from 40 last year. This year marks the first time Hispanics edged out Asian-owned businesses, which long have dominated our list.
The list includes 18 businesses owned by people who trace their heritage to Asia.
Even so, one Asian-owned business still rules the list: No. 1 Kingston Technology Co., the Fountain Valley computer memory products maker started by Chinese immigrants David Sun and John Tu. With $1.8 billion in 2003 sales, Kingston makes up nearly half of the revenue on the list.
With help from Kingston, the 45 companies grew sales 20% last year to $3.8 billion. Hiring at the companies also grew by 11% to 7,444 OC workers.
The highest-ranking Hispanic business is No. 2 Anaheim-based Northgate Gonzalez Supermarkets. The Hispanic supermarket operator counts an estimated $325 million in yearly sales from 16 stores.
The Gonzalez family quietly has built up its business and held its own against rivals, including Mexico’s Grupo Gigante SA de CV, which has its U.S. base in Santa Ana and opened an Anaheim store last year.
Northgate’s ascendancy is notable, considering the humble beginnings of patriarch Miguel Gonzalez, who left Mexico and started washing dishes at the Biltmore Hotel in downtown Los Angeles in the 1960s. Gonzalez died four years ago, leaving son Miguel Gonzalez Jr. and other relatives to run the business.
In 1980, the family took over a store with Northgate in its name, spawning the first Northgate Gonzalez market in Anaheim. Today the company employs more than 2,300 workers, including an estimated 1,000 in OC.
Much of the revenue gain on the list came by way of Kingston, which did $400 million more in sales last year than in 2002 for a 29% gain. Without Kingston, the 44 other companies posted a 13% rise in sales to $2 billion.
Sales of memory products to computer makers, consumers and for digital cameras and other gadgets drove the gain, said Mike Sager, Kingston’s senior vice president of sales and marketing.
This year, Kingston expects to see sales grow to $2.4 billion, Sager said. The company reduced its OC workforce by 5% in the past year to 911 people after moving some production to China.
With a wide range of sectors represented, the minority-owned businesses list shows trends throughout OC’s economy. The list includes electronics makers, supermarket operators, auto dealerships, service providers and a snacks maker.
The number of Hispanic businesses on the list is up by five from 17 last year. Asian-owned businesses are unchanged at 18.
Five of the businesses are African-American-owned, up one from last year.
No. 8 Brea computer products and services provider Golden Star Technology Inc. was a big gainer. The Asian-owned company grew sales 33% to $80 million,good enough to move it up three notches from last year’s list.
“A lot of the work we focus on is the less glamorous work that other computer firms are shying away from,” said Golden Star marketing manager Henry Ngo. “We’re anticipating 20% growth in revenue this year and 10% to 20% growth in hiring.”
No. 9 Irvine-based HomeLoanCenter.com saw big gains last year amid the mortgage refinancing boom. The company, owned by Anthony Hsieh, grew its workforce 193% to 660 people.
The company said it could add hundreds of more workers, though a slowdown in refinancing and home sales could crimp growth plans.
HomeLoanCenter is new to this year’s list with a Business Journal estimate of $70 million in 2003 revenue.
Along with HomeLoanCenter, other newcomers included: No. 19 Santa Ana-based general contractor Macro-Z-Technology Co., with $27.5 million in sales; No. 22 Irvine-based Express Computer Systems, with $24.7 million in sales; No. 28 Irvine-based Happy Nails and Spa, with an estimated $15 million in sales; and No. 36 Irvine-based Specialized Marketing Services Inc., with an estimated $8 million in sales.
A few companies from last year’s list didn’t make this year’s group.
Last year’s No. 4 Checkmate Staffing Inc. filed for bankruptcy reorganization and was bought. (See story, page 3.) Garden Grove-based Bridge Technology Inc., last year’s No. 7 company, also filed for bankruptcy reorganization and doesn’t appear to be minority-owned anymore.
Last year’s No. 40, Hispanic-owned San Clemente technology products and services company Source Diversified Inc., didn’t bring in enough sales to make the cut.
