Local firms among top 500 owned by minorities

Morgan, Analytical, SpecPro all make diversity list

Some local government contracting companies are ranked among the top 500 minority-owned businesses in both the nation and the state.

Huntsville-based Morgan Research Co., Analytical Services Inc. and SpecPro Inc. all appear in this year's Div500 list from DiversityBusiness.com. The companies also made the cut as three of Alabama's top five largest multicultural-owned businesses for 2004.

"They are a growing force in the U.S. economy, and a force to be reckoned with," said Kenton Clarke, CEO of Computer Consulting Associates International, the company that built DiversityBusiness.com.

Diversity business is a growing trend as larger corporations recognize the economic value of partnering with multicultural suppliers, Clarke said. More than $1.4 trillion in sales are currently contributed to the U.S. economy by minority-owned companies, according to DiversityBusiness.com. The Div500 is an annual compilation of the largest of these suppliers. The list was established to help recognize "the economic power of multicultural businesses" in sectors such as technology, manufacturing and professional services.

"Being included in the list is a way of putting diversity into perspective from our little corner of the world. It's a part of who we are," said Sharon Morgan, CEO of Morgan Research. The 8(a) certified, woman-owned firm provides systems engineering, software systems, training and IT solutions primarily to government customers. Its annual sales of more than $25 million put the company at No. 190 on the national Div500 list for 2004. Morgan Research also eclipsed other Huntsville companies to take the No. 2 spot on the state list (behind Birmingham-based Ram Tool and Supply Co.).

Analytical Services Inc., also woman-owned, followed at No. 3 for the state and No. 205 nationally, with annual sales exceeding $23 million. SpecPro Inc. gained the No. 4 position in Alabama and ranked at No. 221 for the nation with annual sales of nearly $22 million.

"I believe the Div500 is beneficial in helping to illuminate the level of financial contribution we, and other diversity-owned companies make to the local and state economies," said Sharon Yalowitz, chief financial officer of SpecPro Inc.

An 8(a) Native-Alaskan government contractor, SpecPro was one of only two Native American owned companies from Huntsville to make the state list. The company was further recognized as the 18th largest in the "Top 100 Native American Owned" list. It currently has more than 320 employees in locations across the United States. A subsidiary of an Alaska-Native corporation, Bristol Bay Native Corporation in Anchorage, one-third of the company's profits go back to pay dividends to Alaska-Native shareholders. The corporate administrative headquarters for SpecPro is in Huntsville.

"It does take time to communicate to government agencies and industry the benefits of doing business with native-owned firms," said Yalowitz. For instance, she said, the prime contractors who subcontract to a native-owned company also benefit from the Department of Defense Indian Incentive Plan. They get five percent of the amount the subcontractor invoices back as an incentive to subcontract with Native American-owned firms.

"Having this benefit does make our diversity ownership part of our growth strategy, but we do not depend on it," Yalowitz said. "Because it is based on government legislation, it is always subject to change."

Other companies such as Morgan Research agree that recognition as a diversity-owned business may provide a "foot in the door," but it's not a guarantee for success. Morgan said it has given her company more opportunity to present information about their capabilities, but the ownership status hasn't secured more contracting opportunities on that factor alone. That's fine, she said, because it shows the company is doing a good job competing for contracts that are not earmarked.

"Regardless, diversity is still important and should not be forgotten about," Morgan said. "It should not be overlooked and this list helps achieve that goal."

Other Huntsville-based companies making the national Div500 2004 list include were Infinity Technology at No. 324, and InfoPro Corp. at No. 327.