1. SPecIAL PrOMOTIOnAL SecTIOn
The
Inner cITy
10
A NNIV
TH
ER SARY
100
A decAde of discovery
In 1998, the Initiative for a Competitive Inner City and Inc. magazine joined to
create the first annual ranking of the fastest-growing inner city businesses in
the nation. The point: to prove that America’s inner cities have robust economic
activity and ample opportunities for business growth. This year’s list again makes
the case by honoring 100 extraordinary companies. But it also marks the 10th
anniversary, an opportunity to take stock of what has been accomplished—and
what lessons learned—since the project was launched. The pages that follow
include an interview with ICIC founder and Harvard Business School professor
Michael Porter, as well as this year’s list, cumulative stats about the Inner City
100’s first decade, and a profile of this year’s fastest-growing company.
2. SPecIAL PrOMOTIOnAL SecTIOn
A bOLd PreMISe, PrOven
Harvard Business school professor and icic founder Michael Porter looks back over the inner
City 100’s first 10 years and finds that it surpassed even his own great expectations
The Inner City 100 grew How does the Inner City
out of ICIC’s unique 100 fit into your strategy?
approach to revitalizing It was about changing per-
economically distressed ceptions. People listen po-
inner city communities. litely when you say that
Explain how that businesses can prosper in in-
approach differs from ner cities, but they become
previous efforts. believers when they see hun-
Before ICIC was founded, in dreds of companies that have
1994, inner cities were viewed succeeded spectacularly.
as devoid of economic op-
portunity. Solutions at the time Has it worked?
were based on subsidy and Yes, in more ways than we
social programs. Our ap- anticipated. We knew the In-
proach was to focus on how ner City 100 would validate
to create a viable economy our premise, but we didn’t
using competitive principles. anticipate the motivational
We readily acknowledged impact it would have. Politi-
that inner cities had many cal leaders, business lead-
problems, but we asked busi- ers, academics, and the
nesses and policymakers to media drew inspiration from
look beyond stereotypes and “People listen politely when you the success of these com-
see the inherent competitive
advantages. We showed that say businesses can prosper in panies, and in so doing are
creating jobs and bringing
companies could thrive in in- inner cities. They believe when they economic opportunities to
ner cities pursuing economic
self-interest. This was a dra-
see 100 that did it spectacularly.” inner city residents. This is a
demonstration of the way
matic shift in thinking. our economic system is sup-
posed to work, so everyone wants to participate.
So dramatic that many were skeptical.
How did you make your case? The Inner City 100 has also generated a rich supply of
Our research demonstrated that virtually all inner cities have data. What useful insights have you found there?
four basic competitive advantages for business. The most The Inner City 100 companies over the past 10 years have
obvious is location: Inner cities, in almost all cases, are lo- many traits in common. They are innovative. They have
cated near transportation nodes and the central business discovered market niches where they have advantages.
district, and offer efficient logistics and reasonably priced Inner City 100 companies are particularly innovative and
real estate. The second advantage is the untapped con- progressive in work force recruitment and retention prac-
sumer market: Inner cities are densely populated, so that tices; for example, 97 percent of Inner City 100 compa-
even with lower incomes there is large unmet purchasing nies offer health care benefits to their employees. We
power. Most residents have to travel out of their neighbor- wanted to learn more, including how to replicate that
hoods to buy even basic necessities. A third advantage is progress on a broader scale. So in 2003, we collaborated
the large available labor pool within walking distance of a with Jobs for the Future to create workforceadvantage.
Stuart ramSon/aP
potential business location. Fourth, inner city economies can org, a website that identifies and documents the most
support regional business clusters, such as commercial ser- innovative practices for enhancing employment opportu-
vices, construction, tourism, health care, and others. nities for entry-level and low-skill workers in America’s in-
10 th a n n i v e r s a r y o f t h e i c i c
3. ner cities. We also found that inner city companies
have a common problem: growing to scale. Many
businesses reach the point where further growth re-
The LisT
Together, the companies on this year’s Inner city
quires a fundamental shift in their operating model. 100 list brought in $2.7 billion in revenue
If they are going to grow, they need a more sophis-
ticated management structure, and sometimes eq- key:
uity investment partners. So we created Inner City G revenue GrOw Th 2002–2006
Capital Connections in partnership with Banc of r 2006 revenue
America Capital Access Funds; it’s a national pro- e FuLL-TIMe eMPLOyeeS In 2006
gram that brings together inner city CEOs and inves-
1
tors in a forum that supports the exchange of
information and deals. # cMr construction & roofing
Indianapolis
www.cmrconstruction.com
G 3,590% r $28,468,776 e 95
That raises a question about the current envi-
ronment. The economic downturn we’re facing The bAckSTOry: Nearly every business says it’s committed
comes with a credit crunch. How have inner city to delivering value and acting with integrity. Far fewer have
turned these mantras into an effective growth strategy.
companies weathered past recessions, and is But then, CMR Construction & Roofing specializes
this one especially dangerous to them? in storm damage restoration, a business in which custom-
Inner City 100 companies are by no means immune ers are unusually vulnerable to empty promises. Indeed, it’s
historically been populated with fly-by-night predators, in
to economic cycles, but early data from this year’s addition to well-intentioned contractors who simply aren’t up
honorees suggests they are not experiencing the to the task of quickly and expertly repairing weather-ravaged
worst pain of the downturn. Most have strong bank- properties. In that context, says Steve Soule, CMR’s 30-year-
old founder and CEO, if you do the job right, customers are
ing relationships and established credit lines with extraordinarily appreciative and loyal.
suppliers. And they’ve historically demonstrated Which helps explain the company’s 35-fold increase in
great flexibility. They downsize quickly and adjust to revenue over the past five years—growth that landed the
downtown Indianapolis-based CMR at the very top
new opportunities. For example, they’ve become ad- of this year’s Inner City 100.
ept at bidding for government contracts, which re-
main a consistent source of work even in a shrinking The STrATeGy: Speaking in late March from downtown Atlanta,
where a tornado and hailstorm had hit just days before,
economy. However, less well-established inner city Soule described his company’s approach. CMR aims to have
companies may be at risk. a local office up and running within 48 hours of a major
storm hitting. The first people on the ground are sales reps
and damage estimators, followed by the “assets”: work crews
Have you tracked the first class of Inner City and equipment, including huge foam machines that can
100 companies? How are they doing? “dry-in” some 40,000 square feet of roofing a day, preventing
Of the original 100 companies on the 1999 list, 99 are further damage before the real repair work is done.
Soule parachutes in his experienced team at first but
still in business. Nine have been acquired, including quickly begins to hire and train locals to do things the CMR
Interlink Group, an IT services firm that was purchased way. Then, instead of packing up the whole operation once
by EMC in 2006, and Shore.net, a $7 million company the storm remediation is done, he leaves behind a local staff
armed with the goodwill that CMR earned after the storm.
that was purchased by Primus for over $40 million Inevitably, a healthy business develops around conventional
soon after the list was announced. The largest com- construction work like room additions. So far, Soule has set
pany on the first list, Belkin Components, has grown up nine branches this way. He has yet to close one.
from $100 million in revenue to more than $1 billion. The MAnAGeMenT APPrOAch: Continuous expansion into new
Interestingly, there are four companies on the 1999 markets dovetails nicely with Soule’s management philoso-
list—E. Morris Communications, Tucker Technology, phy. “We do a lot to empower our employees, and we want
everybody to advance as far as they want. That helps us
Giroux Glass, and Talan Products—that made the attract the right people and hold on to them,” he says. “A
2008 list. Perhaps more important, though, is the company really can treat its people well and be successful
transformation of the inner city neighborhoods in doing it. We’re the proof.”
which these businesses are located. Business own-
ers say they initially located in the inner city because 2. roxbury Technology
Jamaica Plain, mass.
the site offered competitive advantages that out- www.roxburytechnology.com
weighed negatives such as crime and a rundown ap- G 2,860% r $11,396,493 e 38
remanufactures and sells laser printer cartridges and imaging supplies
pearance. But the majority of the 2008 Inner City 100
honorees say their neighborhoods have changed for 3. yerba buena engineering & construction
San Francisco
the better. New businesses are opening and new G 2,750% r $14,899,330 e 31
residential units are being built in places once thought Provides civil engineering services for public works projects, including roads,
unsafe and beyond hope. highways, bridges, parks, and pipelines
4. SPecIAL PrOMOTIOnAL SecTIOn
key: G revenue GrOw Th 2002–2006 r 2006 revenue e FuLL-TIMe eMPLOyeeS In 2006
4. AdminServer and custom software for large 23. visionIT 33. Long wave
Chester, Pa. companies Detroit oklahoma City
www.adminserver.com www.visionitinc.com www.longwaveinc.com
G 1,918% r $24,383,141 e 104 14. Tucker Technology G 555% r $22,646,447 e 500 G 429% r $11,223,671 e 60
Develops software that helps insur- oakland, Calif. matches technology specialists with offers engineering services, specializ-
ance companies administer policies www.tuckertech.com employers ing in military communications
G 792% r $14,004,409 e 210
5. One Stop environmental Provides telecommunications and elec- 24. numi Organic Tea 34. cellular Specialties
Birmingham, ala. trical services, specializing in high-volt- oakland, Calif. manchester, n.H.
www.onestopenv.com age electrical installation www.numitea.com www.cellularspecialties.com
G 1,706% r $4,865,896 e 40 G 536% r $8,877,527 e 35 G 424% r $21,040,376 e 77
Provides environmental services,
15. watermark environmental Sells organic and fair-trade-certified Designs and builds wireless systems
including waste disposal, remediation, Lowell, mass. teas to hotels, restaurants, and inside buildings by combining voice,
emergency response, and site www.watermarkenv.com grocery stores data, and other technologies
assessment G 784% r $5,862,483 e 18
Provides environmental and civil engi- 25. cynergy data 35. ellicott dredge enterprises
6. SLr contracting & Services neering, construction management, and College Point, n.Y. Baltimore
company maintenance services www.cynergydata.com www.dredge.com
Buffalo G 536% r $59,723,386 e 150 G 423% r $28,243,593 e 115
www.slrcontracting.com 16. university Instructors Handles credit card processing Builds and designs all key compo-
G 1,416% r $13,450,504 e 22 richmond, Va. and electronic payment services for nents of dredging systems
Provides construction services, con- www.universityinstructors.com merchants
struction management, and design- G 770% r $5,792,848 e 45 36. white construction
build work Provides supplemental educational 26. Straub collaborative Detroit
services to students in kindergarten Portland, ore. www.whitecon.com
7. cenergy corporation through high school www.straubphoto.com G 393% r $43,304,257 e 30
Houston G 522% r $2,536,858 e 25 Provides preconstruction, general
www.cenergycorp.com 17. Jive Software Provides photography, post-production, contracting, construction manage-
G 1,414% r $47,628,824 e 28 Portland, ore. and design services for ad agencies ment, and design services
Provides consulting and other services www.jivesoftware.com
to the petroleum industry G 643% r $5,764,431 e 33 27. kauffman and Associates 37. raining rose
Develops software that enables employ- Spokane, Wash. Cedar rapids, Iowa
8. IT Ascent ees and customers to collaborate online www.kauffmaninc.com www.rainingrose.com
San Francisco G 480% r $5,569,485 e 32 G 360% r $4,822,977 e 37
www.itascent.com 18. Melissa Joy Manning Provides management and marketing manufactures and sells all-natural
G 1,386% r $37,749,150 e 295 oakland, Calif. consulting to promote american body products, including lip balms and
Provides strategic consulting in tech- www.mjmmetal.com Indian interests soaps
nology selection, program architecture, G 640% r $1,484,024 e 10
and systems integration Designs, manufactures, and sells jew- 28. Gunther douglas 38. Pacific Outdoor Living
elry made from gold, silver, semipre- Denver Sun Valley, Calif.
9. Firstcomp Insurance cious and precious stones, and other www.guntherdouglas.com www.pacificpavingstone.com
omaha natural materials
G 479% r $8,556,538 e 65 G 333% r $16,539,068 e 125
www.firstcomp.com Provides information technology con- Installs interlocking pavingstone patios
G 1,190% r $211,045,543 e 531 19. Futurenet Group sulting and placement services and driveways in Southern California
offers workers’ compensation insur- Detroit
www.futurenetgroup.com
ance for small and midsize businesses 29. Team Sports Planet 39. Park Inc.
G 631% r $2,561,676 e 30 Philadelphia Charlotte, n.C.
10. Queen Associates Provides consulting, engineering, and www.teamsportsplanet.com www.parkinc.com
Charlotte, n.C. technology services to the environ-
mental and construction industries
G 455% r $1,969,795 e 13 G 331% r $3,109,092 e 20
www.Qai3.com offers sports uniforms and apparel for manages parking lots and garages
G 1,010% r $5,428,624 e 56 teams, leagues, and schools and provides shuttle and valet services
Provides integrated business, engi-
20. American Apparel and traffic control
Los angeles
neering, and technology consulting
www.americanapparel.net
30. Integrated Management Services
services Jackson, miss. 40. Sanco Industries
G 586% r $264,691,000 e 5,800 www.imsengineers.com Fort Wayne, Ind.
11. Smalls electrical construction manufactures and sells apparel for
G 446% r $17,204,516 e 500 www.crystalblue.net
Brooklyn, n.Y. men, women, children, and pets
Designs, builds, and manages infra- G 323% r $6,142,336 e 20
www.smallselectrical.com structure projects such as roads manufactures premium aquatic
G 906% r $11,608,417 e 35 21. new era Publishing and bridges chemicals
Provides electrical contracting, austin
www.newerapublishing.com
including work for new York’s transit 31. wrScompass 41. commonwealth
authorities G 585% r $6,566,614 e 44 Chicago worldwide chauffeured Transportation
Produces limited-edition fine art prints www.wrscompass.com Boston
12. ITS express for interior designers
G 443% r $109,788,125 e 480 www.commonwealthlimo.com
Long Island City, n.Y. Provides transportation, demolition, G 322% r $32,652,576 e 300
www.its-express.com 22. Ascellon corporation and cleaning services on hazardous Provides chauffeured transportation
G 894% r $6,989,330 e 43 Baltimore waste sites for high-end corporate clients
Delivers packages around the world www.ascellon.com
for corporate customers G 578% r $5,637,179 e 45 32. On-Target Supplies & Logistics 42. Planit
Provides information technology con- Dallas Baltimore
13. Pinnacle Technical resources sulting services to government and www.otsl.com www.planitagency.com
Dallas commercial customers
G 432% r $58,553,606 e 175 G 314% r $11,083,538 e 60
www.pinnacle1.com Designs, implements, and manages Provides creative advertising, brand-
G 873% r $40,040,719 e 637 custom logistics systems for major ing, communications, and technology
Provides technical staffing, consulting, corporations and organizations strategy and services
10 th a n n i v e r s a r y o f t h e i c i c
5. 2008 43. Mobilityworks 53. eXcellon Technologies
inner CiTy akron
www.mobilityworks.com
G 303% r $51,794,373 e 200
Fort Wayne, Ind.
www.excellontech.com
G 246% r $5,007,347 e 54
100 By The Sells and services customized vans and
cars for people living with disabilities
Provides sensors and contract manufactur-
ing for military and industrial customers
numBers
44. net health Systems 54. docuvault
Pittsburgh Denver
www.woundexpert.com www.docuvault.com
G 302% r $2,351,803 e 16 G 245% r $8,287,358 e 70
Together, the companies on this year’s Develops disease-management software offers record management, including
that helps hospitals document treatment bar-code tracking, scanning, and
list brought in $2.7 billion in revenue shredding
45. Auction Systems
472%
Auctioneers & Appraisers 55. Abc Towing
Phoenix Seattle
www.auctionandappraise.com www.abc4atow.com
Average five-year growth rate G 298% r $32,350,654 e 43 G 231% r $1,350,013 e 18
Performs appraisals and runs live and Provides towing services for municipal
$27 million
online auctions governments
46. nelco 56. kira
Average 2006 revenue Louisville miami
www.nelco.net www.kira.com
G 281% r $20,567,668 e 73 G 230% r $59,660,047 e 675
173
Average number of
manufactures checkout counters, prod-
uct showcases, and other retail fixtures
47. ArGuS
Builds, manages, and maintains military
housing
57. MdStrum housing Services
full-time employees Boston Indianapolis
www.thinkargus.com www.mdstrum.com
95%
Percent that offer health care
G 269% r $4,132,829 e 12
Provides multicultural marketing and
general advertising services
G 229% r $4,126,922 e 20
Provides consulting and training services
for public and private sector developers
of affordable housing
$15
48. Academic network
Portland, ore. 58. nLM
www.academicnetwork.com Detroit
G 264% r $2,311,504 e 15 www.nlmi.com
Provides one-stop medical and health G 223% r $192,951,690 e 246
communications solutions for pharmaceuti- Handles freight shipments and
cal, food, and health care companies provides an online system for carriers
Average hourly wage to bid on jobs
49. Four hands
59. Plano-coudon
$51,000
austin
www.fourhands.com Baltimore
G 257% r $41,811,274 e 78 www.plano-coudon.com
Average salary of skilled Imports furniture and sells it wholesale G 215% r $23,934,939 e 22
to department stores and other retailers Provides construction management
midlevel employee services for health care, educational,
50. bulbs.com and other midsize projects
$277,390
Average CEO salary
Worcester, mass.
www.bulbs.com
G 255% r $10,850,649 e 45
Sells light bulbs and related items online
60. yourTel America
Kansas City, mo.
www.yourtelamerica.com
to businesses G 214% r $27,878,864 e 110
$35,000
offers cellular, home phone, and pager
51. Amuneal Manufacturing corporation services on a prepaid model
Philadelphia
Median start-up capital www.amuneal.com 61. Select equipment Sales
G 254% r $19,898,165 e 83 Santa ana, Calif.
www.selectalift.com
16%
manufactures shielding components for
space shuttles and fabricates furniture G 204% r $12,632,933 e 45
Distributes forklifts and provides
52. extreme Pizza related parts and services
Average annual employee turnover San Francisco
www.extremepizza.com 62. Oakleaf
15,058
New jobs created in past five years
G 247% r $17,170,398 e 350
makes pizza with unusual toppings and
sells through its own restaurant chain
East Hartford, Conn.
www.oakleafwaste.com
G 198% r $315,091,000 e 315
Creates and implements customized
programs for disposing of trash
6. SPecIAL PrOMOTIOnAL SecTIOn
key: G revenue GrOw Th 2002–2006 r 2006 revenue e FuLL-TIMe eMPLOyeeS In 2006
63. Sun cleaning Systems 73. horizon Staffing Services 82. Tripwire integration systems and develops
milwaukee East Hartford, Conn. Portland, ore. advanced space technologies
www.suncleaningsystems.com www.horizonstaff.com www.tripwire.com
G 187% r $9,586,772 e 184 G 176% r $11,863,753 e 32 G 144% r $41,225,131 e 176 92. The Integral Group
Provides comprehensive cleaning solu- Provides staffing assistance, Develops network security software for atlanta
tions to over 300 companies in including recruitment for both banks, stock exchanges, telephone www.integral-online.com
southeastern Wisconsin temporary and permanent positions companies, and broadband providers G 129% r $70,373,525 e 285
and payroll services Develops residential, commercial,
64. r.w. Garcia company 83. Tech networks of boston and mixed-use real estate projects in
San Jose, Calif. 74. colorlab cosmetics South Boston, mass. urban markets
www.rwgarcia.com rockford, Ill. www.techboston.com
G 186% r $21,423,323 e 80 www.colorlabcosmetics.com G 142% r $2,204,835 e 22 93. wendy’s on Front
manufactures tortilla chips G 172% r $3,460,457 e 25 Provides It services and consulting, memphis
manufactures and sells custom cos- including virtual 24/7 technicians G 129% r $1,145,592 e 28
65. Southern california Iron Supply metics through private-label and its Sells fried chicken through two restau-
Santa ana, Calif. own brands 84. nSI rants in memphis
G 182% r $4,638,766 e 12 St. Louis
Supplies and distributes steel
75. ArS International www.thenationalsystem.com 94. Giroux Glass
Port allen, La. G 139% r $24,624,726 e 178 Los angeles
www.amrad.com www.girouxglass.com
66. TecheAd Provides marketing services to retail-
richmond, Va. G 171% r $8,857,805 e 78 ers and dealers nationwide G 127% r $36,461,423 e 200
www.techead.com Provides radiological site cleanup Designs and installs windows and oth-
G 182% r $4,476,881 e 212 services and lab space for analytical 85. Spex Precision Machine er glass projects for commercial and
Provides It staffing services,
radioactive material study Technologies residential customers
including software solutions and rochester, n.Y.
Web applications
76. bankserv www.spex1.com 95. Trivers Associates
San Francisco G 136% r $9,211,442 e 36 St. Louis
www.bankserv.com www.trivers.com
67. A.M.e.’s uniforms manufactures and distributes precision
Fort Lauderdale, Fla. G 168% r $18,928,344 e 91 machined metal parts G 125% r $7,621,737 e 42
www.amesuniforms.com Provides payment solutions for Provides architecture and design ser-
G 181% r $7,267,844 e 24 financial services, retail, and online 86. native environmental vices, specializing in institutional and
businesses Phoenix residential design in urban areas
Sells uniforms to postal workers
www.nativeaz.com
77. bevilacqua research corporation G 136% r $8,702,764 e 100 96. Talon/LPe
68. barcoding Huntsville, ala. amarillo, texas
Baltimore Provides environmental contracting, in-
www.brc2.com dustrial cleaning, asbestos and lead www.talonlpe.com
www.barcoding.com
G 161% r $4,521,932 e 61 paint abatement, and mold remediation G 124% r $13,592,327 e 99
G 180% r $33,447,410 e 76 Provides environmental consulting and
Provides artificial intelligence and knowl-
Supplies automated data collection
and identification and wireless
edge-management systems 87. All copy Products remediation services
technology Denver
78. Talan Products www.allcopyproducts.com 97. wright & dalbin Architects
Cleveland G 135% r $22,007,812 e 128 El Paso
69. AdIr restaurants www.talanproducts.com www.wrightdalbin.com
Los angeles Sells and services copiers, printers,
www.camperowest.com G 156% r $22,756,934 e 60 scanners, fax machines, and other G 122% r $1,800,971 e 10
manufactures precision metal for office products Provides architecture and urban
G 179% r $20,145,000 e 450 design services
custom metal stamping, tube fabrica-
owns u.S. rights to the Pollo Campero
franchise, a family dining restaurant
tion, and fabrications of aluminum 88. Sugar bowl bakery
extrusions San Francisco 98. desert Fleet-Serv
www.sugarbowlbakery.com Phoenix
70. Pro-Liquitech 79. christy webber Landscapes www.desertfleet-serv.com
Louisville G 135% r $40,151,098 e 361
Chicago Produces baked goods, including wed- G 121% r $3,942,853 e 23
www.flavorman.com www.christywebber.com ding cakes, and sells them wholesale Provides mobile on-site service
G 178% r $3,960,292 e 11 G 153% r $12,740,551 e 35 and repair for fleets of diesel trucks
Designs, formulates, and commercial-
izes beverage, food, and nutritional
offers landscape design, construction, 89. Informatix and trailers
and maintenance, chiefly in urban San Francisco
supplement products areas www.informatixinc.com 99. el clasificado
G 132% r $24,104,393 e 150 Los angeles
71. e. Morris communications 80. General Theming contractors www.elclasificado.com
Chicago Provides full-service information tech-
Columbus, ohio nology and business solutions to gov- G 118% r $8,947,837 e 94
www.emorris.com www.theming.net ernment and business organizations Publishes a free weekly
G 176% r $6,963,469 e 43 G 151% r $11,561,608 e 150 classifieds newspaper that
Provides integrated marketing services
to help clients reach african american
Designs, manufactures, and installs 90. hFS consultants serves the Latino market
interior signage and décor for the oakland, Calif.
consumers retail, hospitality, and entertainment www.hfsconsultants.com 100. Montbleau & Associates
industries San Diego
72. central Packaging G 132% r $10,371,943 e 72
Consults with health care facilities on www.montbleau.com
Kansas City, Kan. 81. dancing deer baking company
www.centralpkg.com financial, strategic, and organizational G 118% r $19,899,375 e 85
Boston issues Designs and manufactures arch-
G 176% r $3,444,527 e 10 www.dancingdeer.com itectural woodworking, corporate
Provides full-service sales and G 149% r $7,582,469 e 65
distribution of packaging materials
91. Andrews Space furniture, casework, and large
Provides branded baked goods to Seattle hospitality projects
and equipment high-end food stores, catalog services, www.andrews-space.com
and online retailers
G 129% r $8,436,196 e 40
Provides cost-effective aerospace
10 th a n n i v e r s a r y o f t h e i c i c