Mary Jo Avila, president of MJ Avila, a Hispanic, women-owned construction company, never imagined what her company would become when she and her husband first started their venture back in 1980. Today, her company employs up to 100 people to complete big projects such as solar energy farms for Pacific Gas and Electric Company (PG&E).
“We were always ideally positioned to perform the kind of work needed at a solar site, but we wouldn’t have thought about expanding into the area if it hadn’t been for our work with PG&E,” said Avila. “Our work with PG&E has helped MJ Avila grow significantly, increasing overall revenue by 20 percent, creating 75 new temporary jobs, and increasing full time employment by 5 percent.”
Like many minority-owned businesses, Avila’s company has benefited from diversity programs of utilities and telecommunication companies in California, though Avila stresses that you still need to do good work to benefit from such programs.
“Like any business, you need to focus on performance, quality, pricing, and building a good reputation – then it’s easier to grow your company,” says Avila. “Companies like PG&E focus a lot on safety, customer service, accounting, IT, marketing, and the environment - so in order to become a supplier we have to have a great understanding of these issues. When you make sure that companies like PG&E can count on you, then business becomes easier and better.”
PG&E recently announced that it achieved an all-time high of $1.61 billion in spending with diverse suppliers in 2011. PG&E’s spending with Hispanic-owned businesses reached an all-time high of $409 million in 2011, an increase of almost 60 percent above 2010.
PG&E says it partners with diverse suppliers to generate innovation and increase competition while contributing to their revenue growth. In addition, the utility has played an important role by providing small businesses with technical assistance training.
“PG&E has raised the bar for sustainable business partnerships with minority-owned business enterprises in California,” said Julian Canete, president and CEO of the California Hispanic Chamber of Commerce. “The company’s track record of inclusion is a true catalyst to the growth and expansion of emerging and diverse firms.”
“By contracting with PG&E since 2006, we have been able to hire 15 employees to work at our warehouse in Oakland plus an additional 5 employees who manage our remote inventory sites for PG&E’s photovoltaic initiative,” said Bob Zamarripa, president and founder of OneSource Distributors, a Hispanic-owned company specializing in electrical materials, electronic components, industrial automation, and manufacturing.
A diverse supplier is defined as 51 percent-owned by a woman, minority or disabled veteran (WMDVBE) who manages and controls the firm’s day-to-day business operations. PG&E works with certified WMDVBE firms that provide services in virtually all areas, including environmental services, remediation, transportation, energy generation, marketing services, construction services, accounting services, human resources and others.
“We really encourage people to go out there and to know if there is an opportunity to be a supplier or subcontractor,” says Joan Kerr, director of supplier diversity and supplier development at PG&E.
Kerr adds that Hispanic businesses have supplied a wide range of resources such as information technology, real estate, and food services.
“To supply to utility companies you have to have certain strengths and more and more Hispanic businesses are in that position now,” says Kerr.
She adds that it is important to have clarity of the core business you are in and to focus on excellence.
“It’s better to come with the attitude of saying, ‘I am really excellent on this. I can help you to grow and provide reliable and safe energy because of my expertise in this area’.”
For more information about the supplier diversity program go to www.pge.com/supplierdiversity/