Consumer demand has been exceptional in generating revenue and beneficial business this year, and companies on the San Diego Business Journal’s List of Largest Area Private Companies predict Santa has more goodies in store for next year.
With a few resolutions on their agendas, these businesses are preparing to start the New Year off in full swing.
The List of Largest Area Private Companies features 75 private companies ranked by revenue for fiscal 1999.
The new year may ring in under a theme of self-indulgence for the baby boomers, said Robert Hallam, CEO of Dimension One Spas, No. 40 on the List.
Consumer spending is high among the 45- to 55-year-old age group, who are purchasing spas for stress relief, and Hallam doesn’t foresee the numbers going anywhere but up as the nation grows more health conscious.
– Expectations For Revenues Run High
Dimension One Spas experienced a 40 percent increase in annual sales above last year, and revenues are expected to hit around $43 million by the end of the year.
“Health and relaxation is important for older people, but the spa products also appeal to soccer moms, people with children leaving the home, and married couples,” he said.
Consumers are finding that a spa is one investment that can’t go wrong. “I’ve never seen two people argue in a spa,” he said.
Hallam said sitting in a spa offers relief from aches and pains and helps bring on physical and mental relaxation.
“It’s great to get in a hot tub, kick back and relax and allow the blood to flow to places it normally wouldn’t,” he said.
Hallam also said the industry has penetrated successfully into the European market over the last 10 years, particularly in the Scandinavian countries and recently, Australia and New Zealand.
“We’re just growing so fast,” Hallam said, in reference to their hiring of more employees and their expansion into a space next to their current location in Vista about a year ago.
– Taking A Break Before The Rush
Since spring is its key sales time, the company is taking the next few months to regroup, restock and take a breather from the busy year.
“We’re going to slow down, take a breath and make sure that we’re doing it right,” he said.
“Our goal for next year is trying to make the product of greater quality, efficiency and with more consistency,” Hallam said. “Consistency breeds quality.”
Consistency is also on TLC Staffing’s New Year’s resolution list. The staffing agency, No. 65 on the List, must make sure that the Ergonomics Program Standard is consistent throughout the company and implemented by Jan. 16.
Issued by the Occupational Safety and Health Administration, the program is set to reduce the number of work-related musculoskeletal disorders caused by exposure to risk factors such as contact stress and awkward postures in the workplace.
“This is going to be a challenge for our staff,” said COO Kay Christian.
– Working On The Concepts
The company, which increased its staff by 10-15 percent this year, is coming up with ideas and financial means to make sure the program standard is carried out.
Finding qualified people to place at different businesses also has become a New Year’s challenge.
“There has been a marked decrease in candidate availability on all levels, from finding enough people to fill the jobs to finding qualified people who can do the job,” Christian said.
Christian said they are always looking for new people and will continue to use referrals as their number one source for placement.
With Christmas falling on a Monday this year, many companies are going to be closed a little longer, but Christian said that as far as business goes the holiday season looks fine for them.
– Firm Celebrates Salary Increases
One accomplishment TLC Staffing is celebrating this year is the gradual increase in salaries for temporary and permanent placement. TLC Staffing temps are paid $9 an hour or higher.
“These are nice increases that have been way overdue for San Diego and based on the cost of living here, I think they still are,” Christian said. “But we’re closing the gap.”
Working to close the widening gap of not enough travel agents is on the New Year’s agenda for Balboa Travel, No. 74 on the List.
But the travel agency says that consumer demand in travel, particularly on the corporate side, continues to increase and will throughout the new year. Its total sales through October are 26.2 percent ahead of last year’s sales with total sales at the close of the year projected at over $100 million.
“Travel demand has exceeded the supply of travel agents and it’s been a hassle to find people, so we’ve started our own program and hope to hire as many (graduates) as we can,” said Jan Schultz, president and COO. The program, which began in July, provides eight students with seven free intense weeks of agency training and upon graduation the possibility of being hired at Balboa Travel.
The second class will graduate at the end of this month.
– Financial Services Always In Demand
Enhancing the quality of life financially will always be a factor for the baby boomers, said Jim Putnam, managing director of national sales for LPL Financial Services, No. 2 on the List.
With someone turning the age of 50 every seven seconds, seeking financial assistance and investment advice from advisers on retirement has become more popular than ever, he said.
“There has never been a better time to be in the investment business or advice business,” he said.
By the end of this year, LPL will have invested over $15 billion on behalf of clients into mutual funds, equity and insurance, with revenues for fiscal 2000 to exceed $800 million.
The independent brokerage firm plans to hire more people, expand its office 100,000 square feet into a newly added lot and focus on improving and upgrading its Internet and service capabilities.
As San Diego continues to grow, Putnam only sees consumer spending and investment on the rise because more people will gain from the boom and move up financially.
“The country is more affluent than a decade ago, there are more high-net-worth people today than a few years ago and people are realizing and know the power of investing over time,” he said.
