The economy has impacted the company’s growth over the past few years, resulting in a decline of 17 percent to $126.3 million in 2011 from $151.3 million in 2010.
“The Great Recession hasn’t been good from a business-to-business or a business-to-consumer standpoint for the last several years, and both of our business units have been negatively impacted, Herzog said.“The market-space in general has become increasingly competitive; one factor is the price-comparison and other tools that are available to buyers, both B2B and B2C.”
Herzog remains cautious about the future, commenting that serious global economic and geopolitical challenges remain.
“As for our business in particular, the quantity and immediate availability of information to consumers about a brand … as well as the ability to immediately communicate socially with peers about that information, is definitely creating a paradigm shift, especially in the B2B space,” Herzog said.“The ability of consumers to shop anytime, anywhere using mobile devices is also an interesting, if nascent trend, the impact of which, for us, remains to be seen.”
After decades in the technology industry, Robert and Grace Pedigo, founded No. 4 ranked Southland Technology Inc. in San Diego. Southland reported the largest percentage increase in local revenue of 106 percent from 2010 to 2011. Local revenues grew from $21.9 million in 2010 to $45.2 million in 2011. The company is a certified minority-owned business that focuses on the convergence of voice, video and data on the IT backbone, in addition to products and services and end-to-end technology solutions, according to the company’s website.
“We had several customers needing technology refreshing in 2010 to 2011, said Grace Pedigo, COO/CFO. “They called on us because of our track record.”
In spite of the growth, Pedigo notes that the industry is not without its challenges. She cites employee costs to maintain certifications and to stay up-to-date with the latest trends as the most difficult.