April 2008 | Small Business News
Small Business Views
By Sam Slom, President and Executive Director of Small Business Hawaii
Taxes! Taxes! Taxes! This is the month you find out your burden to the government. It’s not pretty.
Question on many lips: will the embattled Hawaii Superferry ever sail Hawaiian waters again? It has been in dry dock for nearly two months because of weather, tug and dry dock facility damage and has now been not sailing more than it has actually been on water. Anti-ferry Hawaiian activists claim bachi.
Nordstrom’s 210,000 square foot super store Ala Moana March 7 opening was nothing short of an Oscar winning event. Every news story for days concentrated on the large department store’s every square inch of space. And 17 additional new stores opened as well. Ala Moana Shopping Center now contains more than 2 million square feet of retail space with 290 tenants.
SBH member Pacific LightNet, Inc., born and raised in Hawaii, with 95 employees, was sold to SK Telecom Holdings LP for an undisclosed price. Pat Bustamante is Pacific LightNet president.
Congratulations to Ms. Jamie Story who in late March assumed control of the Grassroot Institute of Hawaii, Inc. A former Miss Texas and policy analyst with the Texas Public Policy Institute, Story specializes in educational issues. She succeeds Richard Rowland, co-founder of GRIH (with Malia Zimmerman) who will continue as a consultant to the Hawaii think tank.
Hawaii’s number of manufacturing jobs, already the smallest in the nation (ranked 50th), continues to decline according to Manufacturers News Inc. During 2007 Hawaii lost 15 more manufacturers and 440 jobs.
More bad manufacturing news: the 50 year old Weyerhaeuser paper box plant near Iwilei announced it was closing in mid-March.
Even fast-food icons, like Pizza Hut and Taco Bell, have closed several locations on Oahu as the economic decline continues.
Sales of the new Hawaii state quarter, however, are through the roof.
After announcing a 4th quarter 2007 operating loss of more than $44 million, and problems with sub prime mortgage loans and the acquisition of City Bank several years ago, high profile banker and CPB CEO Clint Arnoldus announced he will retire at the end of this year. CPB will pay him a retirement settlement of $5 million.
Gas prices seem to increase daily.
Varsity Theatre was set for demolition late last month. Aloha Airlines filed for Chapter 11 bankruptcy March 20, two years after exiting the first filing. They blame GO! Airline.
Waialae Bowl closed in February despite some local investor interest in saving the bowling alley.
The Aussies now own Hawaiian Waters Adventure Park which opened on Oahu in 1999. Village Roadshow Ltd. paid $27 million for the water park and plan expansion.
The State Senate, under the direction of Sen. Donna Kim has been investigating a Hydrogen Management Fund Contract issued then rescinded last year (2007) for $8.7 million. Director of DBEDT Ted Liu has been on the hot seat for the manner in which the contract was awarded and later ruled invalid by the State Procurement Office. Liu admitted his mistake and took action; Senate Democrats want more.
The confirmation of interim State Planning Director, Abbey Seth Mayer, is down to the wire in the Senate. Mayer, appointed by the Governor, had a hearing on Oahu and on Molokai, hotbed of anti-development fervor. Previously, this position was not required to have Senate advice and consent but that has changed. The vote should be held soon.
The Legislature adjourns May 1. Then attention turns to approving a Constitutional Convention for next year. Oh, and elections will be held this year too. Senator Paul Whalen of Kona already announced he will not run for re-election. Ed Case for Congress?
HMSA reported a loss of $22.6 million in 2007 on revenues of $1.65 billion. HMSA’s medical premiums along with Kaiser, HMAA, UHA and Summerlin, continue to escalate.
Also rising at record rates, Matson Navigation’s fuel surcharges meaning more costs to isle businesses and consumers. Horizon and other shippers followed suit.
Join us Thursday, April 24 (7 – 8:30 am) at Alan Wong’s Pineapple Room in Macy’s Ala Moana for our monthly SBH Sunrise featuring former SBH Director Jed Gaines of Read Aloud America.
On April 25 the US SBA honors its business persons of the year at the Hyatt.
Reserve Friday May 9 for a special SBH/SBH Educational Foundation Awards Banquet at Waialae. Awardees, entertainment, success stories, silent auction and more.
Check our SBH website at www.smallbusinesshawaii.com for the most updated employer alerts and schedule.
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