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Monday, May 27, 2024

What a Difference a Year Makes on the Fastest Growing Company Lists

Seven of the top 10 companies on last year’s Fastest Growing Private Companies list were not included on this year’s compendium. In total, 31 companies did not make a repeat appearance. The No. 10 company on last year’s list, Loan Toolbox, did not apply this year after having merged with two other companies to form the Mortgage Success Source. The Loan Toolbox brand and products still exist to provide education and support services for loan officers, said CEO David Fournier. Revenues in 2007 were good but this year has been tough, Fournier said. “Our business is strong but like the rest of the industry we have had to cut back to do that,” Fournier said. Management changes have taken place at in-room entertainment provider NxTV since the Woodland Hills firm placed No. 2 on the list with Russell Reeder replaced as president and COO. Attempts to reach new President Hooman Honary were not successful. Other companies falling off the Top 10 were The Siegel Group, a Studio City commercial real estate firm specializing in rehabbing and flipping distressed properties; Allied Industries, the aerospace and satellite systems manufacturer; NEA Electronics; and financial and accounting consultants DLC Inc.; and engineering contractor Tower General Contractors. The Business Journal used the three-year period from 2005 through 2007 to determine the rankings. That would take in the start of the economic slump as the mortgage industry began to implode slowing down the construction and sales of new homes. So perhaps it should be no surprise that general contactors that had been on the list a year ago were not listed this year, either due to not participating (like Tower), or falling short of making it into the final 50. Other industry categories losing multiple representations were dining and catering, landscaping and manufacturing. The sluggish economy has cut into the bottom line of Industrial Metal Supply, a Sun Valley-based supplier to small and medium-sized manufacturers that ranked No. 35 on last year’s list. Market conditions have caused the price of metal to drop to the point where some scrap metal yards are closing their doors or not buying any metal, said the firm’s Neil Sherman. The retail side of IMS is doing okay while the wholesale business is lagging, Sherman said. “Our industry is in a wait-and-hold type pattern,” he added. Line 6, a manufacturer of digital amplifiers for musicians, was number 48 on last year’s list and their growth from 2005 to 2007 would have landed the company in just about the same spot on this year’s list, but the Business Journal did not receive a survey response by the deadline. President and CEO Mike Muench anticipates 20 percent growth for this year. He attributes the company’s financial performance to having a large share of the under-$500 amplifier market; new units in the over-$500 market; and continued expansion in the recording equipment and computer interface business. While Line 6 digital amplifiers are not classified as a must-have for musicians the variety of sounds they produce allow them to focus more on music making, Muench said. “Most people want to have access to our products because it gives them more creative flexibility than what they are used to,” Muench said.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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