Richard Copeland, CEO of Minneapolis-based Thor Construction Inc. (No. 53 on the BE Industrial/Service companies list with $63 million in revenues) doesn’t wince at such pressures either, seeking strategic alliances with other multicultural outfits. “For America to truly maintain its status as a great financial powerhouse, it needs to embrace the changing demographics,†says Copeland, who projects a whopping $150 million in revenues for 2012 because of new partnerships and existing contracts. “Right now we have great relationships and the strongest backlog we’ve ever had. We are poised in our brand recognition in a lot of major urban cores.â€
Auto Dealers: Shifting Gears
Pent-up consumer demand placed U.S. new car sales in overdrive, increasing from 10.4 million units in 2009 to 12.7 million in 2011. The National Auto Dealers Association forecasts that sales will increase to 13.9 million new cars and light trucks in 2012–though that’s still a long ride from 16 million to 17 million units sold each year from 2000 to 2007.
The new environment has revved up dealerships, however. “Salespersons in the dealerships are being more aggressive in capturing consumers,†says Damon Lester, president of National Association of Minority Automobile Dealers. “Consumer credit has loosened up since 2009 and consumers have an easier time of getting car loans.†Lester also points out that dealers are being creative in assisting consumers with their vehicle purchases, to wrap up and finalize their deals. In fact, the nation’s 60 largest auto dealers realized a 6% lift in revenues, from $5.6 billion in 2010 to almost $6 billion in 2011.
As the domestic auto market expanded 10% in 2011, Chrysler dealers saw models zoom off the lot. Most engaged in austerity measures as restored consumer confidence, consistent advertising messages, an improved economy, and appealing new models helped to dramatically improve year-over-year sales numbers. For instance, new-vehicle sales increased more than 50% for James Davis, CEO of Houston’s Gulfgate Dodge Chrysler Jeep (No. 24 on the BE Auto Dealers list with $62.3 million in revenues). And sales jumped 33% for Damian Mills, CEO of Smithfield, North Carolina-based Mills Automotive Group (No. 6 on the be auto dealers list with $200.6 million in revenues).
Some African American Ford dealers sweated through not having enough products to meet consumer demand. “Inventory was tight. No one anticipated the market being as strong as it was,†says A. V. Fleming, executive director for Ford Motor Minority Dealers Association. In fact, Ford had scaled down manufacturing so as to not oversupply dealers.
Then last year’s earthquake and tsunami in Japan disrupted the competition. “Having those Asian imports not able to produce gave Ford an opportunity to pick up some conquest sales. At times there were fewer cars out there than black dealers wanted, but once they got them, they were able to move them.â€
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