The BE 100s continue to demonstrate elasticity during an economic turnaround that has markedly improved since the Great Recession five years ago but still hasn’t shed its seesaw qualities. In its third and final estimate, the Commerce Department’s Bureau of Economic Analysis reported that U.S. GDP contracted at an annual rate of 2.9% in the first quarter of 2014, a significant decline from the second half of 2013 in which the economy advanced at a 3.4% rate.
Against this backdrop, the nation’s largest companies have, for the most part, proved resilient across sectors. The companies that make up our BE INDUSTRIAL/SERVICE COMPANIES list produced revenues of 21.8 billion in 2013 versus $19.1 billion in 2011–a 14.3% increase–with The Peebles Corp., Adams Communications & Engineering Technology Inc., and Devon Industrial Group as growth leaders. On the strength of domestic and import car sales, the BE AUTO DEALERS grossed $8.0 billion versus $7.2 billion–an impressive $11.4% hike. Even as black-owned advertising agencies combat Madison Avenue giants for business, the BE ADVERTISING AGENCIES collectively posted a solid 7.2% revenue bump, from $287.5 million in 2012 to $308.2 million in 2013.
Financial services companies, however, shift with the economic tide and market forces. For instance, BE BANKS produced a 2% dip in assets–$5.5 billion in 2012 to $5.4 billion in 2013–and a 12.4% plunge in capital–$474 million in 2012 to $415 million in 2013. BE INVESTMENT BANKS saw a precipitous decline in the dollar volume of total issues: Over the past year, taxable securities transactions plummeted 32.1%, from $821 billion in 2012 to $558 billion, while tax-exempt securities deals fell 25%, from $235 billion to $177 billion. Despite the equity market advances — the S&P 500 was up 29.6% in 2013–BE ASSET MANAGERS’ performance was flat, 0.4% growth in assets under management, from $118 billion in 2012 to $118.4 billion. BE PRIVATE EQUITY FIRMS welcomed newcomer RLJ Credit Management L.L.C. to the list, which now comprises 15 companies.
Whether they enjoyed a banner year or suffered from abysmal performance, BE 100s CEOs across industries have learned one invaluable lesson: Scale is king.