Winner: Silicon Forest Electronics
Frank Nichols, president and chief executive officer
$22.4 million revenue in 2008
The last time the economy slowed down, Vancouver-based Silicon Forest Electronics almost went under. This time around, the electronics manufacturer is seeing double-digit growth.
The company makes electronic products for the aerospace, medical, defense and instrumentation industries.
Revenue in 2008 was $22.4 million, up 18.5 percent from 2007, when Silicon Forest was a first-time BGA finalist.
In 2002, the triple-punch of 9/11, the dot-com bust and bankruptcy of a major client hit the company hard.
"We were upside down by quite a bit and the lawyers said the best thing we could do was to sell (the company) in an asset sale, go out of business and go into another business the next day," said Chief Executive Officer Frank Nichols. "Being a company built on integrity, it didn't feel right. … People had trusted me with their money. They deserved every ounce of effort that could be given to salvage their money."
So company leaders began untangling issues one at a time with suppliers, customers and employees.
"The true measure of confidence was that not one of our employees left the company," Nichols said. "The same people that had the dedication to make us not fail are the same people that have helped us pull off the growth."
The company has grown through careful positioning with customers in growing industries, said Jay Schmidt, marketing and sales manager.
Profits for 2008 were up 34 percent to $804,762 year-over-year, and employee numbers grew nearly 14 percent 123. Plus, the company added an operational building to its facility, and Schmidt projects 2009 revenue of at least $26 million.
Most of Silicon Forest's clients are based in the Northwest, but its sales force stretches to the Midwest and beyond.
"If you're a good company in these economic times, you get a real galvanizing effect," Schmidt said.
– Charity Thompson
Finalist: Papa Murphy's
John Barr, chief executive officer
$585 million total annual sales
1,135 locations in the United States and Canada
When Vancouver-based Papa Murphy's makes a move, it often has impacts not just locally, but nationally.
Since 1995, when Bob Graham and Terry Collins combined Hillsboro-based Papa Aldo's and Petaluma, Calif.-based Murphy's Pizza, Papa Murphy's has grown to operate 1,135 locations in the United States and Canada.
"One of the things that was amazing to me when I first got here is that it's like a cult," said Clarice Turner, president and chief operating officer, who joined the company two years ago. "In stores, I've heard one customer try to convert another (new) customer – they'll tell them it's the best pizza you can buy."
In 2008, Papa Murphy's headquarters had $59.5 million in revenue, and its franchised and corporate take-and-bake pizza shops had sales of $585 million – up 17 percent from 2007.
The company opened 102 stores in 2008 and signed 10 new area development agreements that should yield 100 new stores by 2013.
Papa Murphy's has 683 corporate employees throughout the nation, with 85 in Washington, Turner said.
"We pride ourselves on being one of the first companies (teenagers) might work for in their lifetime," said Turner, whose first job was in fast food. "Sometimes when you're training a 16-year-old, you don't realize you are training them with skills they will have for a long, long time."
Turner said franchisee interest has never been stronger, but it's a challenge these days for them to get financing.
Franchisees are often attracted to the company for its low overhead costs, said Jim Werling, director of franchise sales, in March. Papa Murphy's stores can operate in small spaces with a short staff roster and no ovens, dining tables or public restrooms.
Werling estimated that opening a Papa Murphy's restaurant can cost $150,000 less than a traditional franchised pizzeria.
– Charity Thompson
Finalist: Foster & Assoc.
Dan Foster, owner and president
www.ameripriseadvisors.com/dan.h.foster-cpa
10 percent revenue increase in 2008
Vancouver-based Foster and Assoc. experienced some very tangible growth in 2008. The Ameriprise Platinum Financial Services practice, which was established 1998, acquired a financial services practice, increasing staff and locations, and acquired a new office.
The practice bought a 4,200-square-foot commercial condo in the Redwood Creek development in the fall.
"It's an alternative to paying rent," said Owner and President Dan Foster. "Clients love it, love the layout – it's very professional and we're able to brand our practice a little better. We put our footprint on where we do business."
Foster and Assoc. bought the practice of Peter Toll in West Linn, Ore., adding another location and increasing staff from three to seven.
"I really wasn't shopping for a practice," Foster said. "I've known this business peer for more than a decade. He wanted to retire soon, and wanted to start transitioning out. We had lunch, and at the end of it, I bought his practice."
Toll continues to work from the West Linn office, and Foster said the acquisition wasn't a sale in the strict sense, but a merger with a transition out in a year and a half.
The practice has been busy since the economy started its decline, and Foster plans to expand the practice in Vancouver and West Linn.
"We're in the position to add clients and assets in these tough, tough times because we find that our business model is such that during times of uncertainty, people are seeking out advice and we're growing," he said. "We plan to deliver that quality advice and be able to service all those opportunities as they come our way."
The practice has started focusing on workplace education with large employers, offering them education sessions and meeting with employees on a one-on-one basis.
"We really think the best way to serve a client is well," Foster said.
– Megan Patrick-Vaughn
Finalist: ControlTek Inc.
Owner: The LaFrazia Family; Andy LaFrazia, president
$18 million in gross sales in 2008
Vancouver-based ControlTek was established in 1971 as a small family business, operating out of the Portland home of founder George LaFrazia. He started as an electronics consultant, but realized that for real success, he needed to manufacture a product and sell it.
LaFrazia expanded his service to include design engineering and manufacturing with test capabilities. The company grew out of the home, and in 1993 it moved to Vancouver for the friendlier business environment, according to the company's website.
LaFrazia has since retired, and today, ControlTek is more than 100 full-time employees strong. It offers engineering, prototype support, manufacturing, test development and material management.
While current sales growth is relatively flat, in recent years ControlTek experienced a boom. From 2006 to 2007, sales grew more than 50 percent thanks to positive word-of-mouth and an ability to build full products, rather than just circuit boards, said President Andy LaFrazia.
Since then, the company has reapportioned its existing resources to invest in sales and marketing, seeking out new customers. ControlTek has successfully added some new customers in the original equipment manufacturing arena.
"Our biggest successes are when a company needs technical support, not just manufacturing," LaFrazia said. "There are about 1,000 companies in our line of work, less than 10 percent do design work like we do. And less than 10 percent of the 10 percent do medical design work."
Late 2007 brought a challenge for ControlTeck, when LaFrazia – an Air Force Reserve Civil Engineering officer – was deployed to Iraq and left the company for eight months. But the executive team – Stacey Smith, Sean Neill and Jeff Skinner – stepped up and took on significantly more responsibility in his absence, LaFrazia said.
"We have a lot of great employees – that's what separates us," he said. "We like to integrate with our customers. We think of ourselves as a piece of their company."
– Megan Patrick-Vaughn
