Hawaii Island Business Report 2024
The Ironman Triathlon and Merrie Monarch Festival continue to bring in millions of dollars to Hawai‘i Island, benefitting local businesses and the economy.
Photo: Aaron Yoshino
Aloha and welcome from the Hawai‘i Island Chamber of Commerce
. . .
Photo: courtesy of Miles Yoshioka
As our island community steadily rebounds from the trials brought about by the pandemic, a collaborative effort persists among local businesses, community leaders, social service organizations, educational institutions, and government agencies. Together, we strive to discover both immediate and long-lasting solutions fostering growth and sustainability for present and future generations.
For over 125 years, the Hawai‘i Island Chamber of Commerce has been an integral part of our community, representing more than 325 businesses, non-profit organizations, government agencies, and professionals from East Hawai‘i and beyond. Our mission remains steadfast: to make our island a better place for our families to live and do business.
Hawai‘i Island remains rooted in generations-old values and a small-town lifestyle. Blessed with natural wonders like the active Kilauea and Mauna Loa volcanoes, the renowned astronomy center atop Maunakea, fertile agricultural land, and space ripe for innovative energy technologies, all set against the backdrop of the vast Pacific Ocean, we possess the necessary resources to advance scientific research and exploration. Ultimately, it is our children and their children who stand to benefit from these opportunities, equipped with STEAM (Science, Technology, Engineering, Arts, and Math) education and essential life skills to compete globally.
We have the hearts and minds to make it happen. Our diverse membership mirrors the rich tapestry of our community, comprising individuals from various business sectors and professions who advocate for responsible business practices and economic growth on our island.
Through initiatives like our Young Professionals Program, we nurture the growth of future business leaders. These dynamic young adults engage in networking and professional development opportunities, empowering them to forge invaluable connections within the business realm.
We extend our appreciation to Hawaii Business Magazine for spotlighting our beautiful island once again. We hope you enjoy this Hawai‘i Island Business Report and learn how our community works together to make our island home so special.
– Miles Yoshioka,
Executive Officer,
Hawai‘i Island Chamber of Commerce
Aloha and welcome from the Kona-Kohala Chamber of Commerce
. . .
Photo: courtesy of Wendy Laros
The Kona-Kohala Chamber of Commerce serves the business community on the west side of Hawai‘i Island, a region known for world-class resorts, healthy coral reefs, and spectacular sunsets.
For 2024, our calendar is packed with prestigious events such as the Governor’s Luncheon at the Fairmont Orchid, the Mayor’s Luncheon at The Westin Hapuna Beach Resort, and our annual golf tournament at the Four Seasons Resort Hualālai. In addition, chamber members host monthly gatherings called AfterHours that focus on networking and building relationships. Upcoming hosts include the Waikoloa Beach Marriott Resort & Spa, Hawai‘i Island Community Health Center, Keauhou Shopping Center, and Hawaiian Airlines, partnering with Parker Ranch Center. Our annual Living & Design Home Expo at the Outrigger Kona Resort & Spa and other business expos complete the offerings.
The Kona-Kohala Chamber is committed to growing and advancing our community’s next generation of leaders. We’ve launched a new Young Professionals Program focused on professional development, networking opportunities, and community service. Recently, the group partnered with Hawai‘i Community College – Pālamanui for an Earth Day tree-planting event as a community service project.
As the voice of West Hawai‘i’s business community, the Kona-Kohala Chamber provides leadership and advocacy for a successful business environment in West Hawai‘i. With 470 members, our organization provides a united voice to address key issues on our island and in our state. Our 2024 priorities include housing, water development, astronomy, and homelessness. For example, we strongly support building the Kukuiola Emergency and Assessment Center in Kailua-Kona. The first phase is scheduled to be completed this year. With dedication and diligence, we work to strengthen our local economy, improve business opportunities, and promote the well-being of our community.
Mahalo to Hawaii Business Magazine for this special section on Hawai‘i Island!
– Wendy J. Laros,
President and CEO,
Kona-Kohala Chamber of Commerce
The Ironman Triathlon and Merrie Monarch Festival continue to bring in millions of dollars to Hawai‘i Island, benefitting local businesses and the economy. Businesses are also further promoting agricultural sustainability, expanding shipping capacity, and incorporating AI technology to provide them with more operating efficiency.
In Hilo, the week-long Merrie Monarch Festival injects the economy with millions of dollars.
“During Merrie Monarch Week there is a noticeable increase in visitors, including those from neighboring islands and from around the world, coming to Hilo spending money on airfare, lodging, transportation, and meals,” says Miles Yoshioka, Executive Director, Hawai‘i Chamber of Commerce in Hilo.
This year, the festival was voted the top cultural event in the nation by USA Today readers. Hawaiian Airlines also created a special fly-shuttle deal for neighbor islanders to attend the arts and crafts fair at the festival, and various other popular Hilo locations.
“It’s like a one-day Hilo shopping trip. Events like this really help bolster our economy,” Yoshioka says.
Photo: Aaron Yoshino
On the other side of the island, the Ironman Triathlon also continues to be a major contributor to the local economy. Taking place off-season, in October, it also brings in millions of dollars.
“It’s good for the infrastructure that supports the visitor industry because so many people come to the island for this event,” says Wendy Laros, President and CEO, Kona-Kohala Chamber of Commerce.
HPM Building Supply
For more than 100 years, HPM Building Supply has served Hawai‘i’s building needs. A humble lumber mill on Hawai‘i Island persevered through World War II and two tsunamis to grow into a statewide building resource, with 19 locations across Hawai‘i Island, Kaua‘i, Lāna’i, Maui, O‘ahu and Washington. HPM provides lumber, building materials, manufactured products, steel framing, kitchen and bath products and design services, home plans, planning services and more. We continue to innovate and expand our product selection and services to help Hawai‘i build and live better.
As a locally rooted business with a rich heritage spanning generations, we remain committed to our founding values of Heart, Character and Growth, and are dedicated to serving our customers and supporting one another. HPM was one of Hawai‘i’s first businesses to establish an employee profit-sharing plan in 1959 and, in 1977, became one of the first companies in the state to be employee-owned. Today, HPM is 100% employee-owned by more than 570 owner-employees who share in our company’s success.
Our team is passionate about their work and dedicated to HPM’s mission to enhance homes, improve lives and transform communities.
www.hpmhawaii.com
hilo@hpmhawaii.com
(808) 935-0875
Labor
Most businesses on Hawai‘i Island, as elsewhere, are still struggling to fill jobs, however.
“The labor shortage is affecting businesses across the state, and is the dominant issue our members bring up,” says Yoshioka.“Restaurants and retailers seem to be hit the hardest.”
Although there are numerous contributing causes for the labor shortage, affordable housing is still a big factor, Yoshioka says. Cost of childcare is another. Hilo has also seen more micro-business start-ups, many that operate from home with online businesses, where people are able to set their own hours.
“People are getting creative,” Yoshioka says. On the Kona side, the labor shortage is also the number one issue for businesses, partly due to the high cost of housing.
“Associated infrastructure issues such as water development on the drier side of the island are a priority for the Chamber,” Laros says.
HPM Building Supply President and COO Adam Bauer concurs.
“Any improvements to the infrastructure helps improve the overall market. Whether it is getting goods easier or allowing growth for affordable housing, it’s good for the economy,” he says.
HPM retains about 570 employees statewide. Its business model offers employees shares in the company, making it 100% employee-owned.
Photo: Aaron Yoshino
“We find that setup very powerful. When employees have a sense of ownership within the company, everyone seems to be working in the same direction,” says Bauer.
The company still provides signing bonus incentives for certain positions that are harder to fill, especially in Kona.
With a background in construction, Bauer says, “The demand for affordable housing is particularly strong. And as we look into the future, we feel the construction industry is going to be very strong.”
With about 870 employees statewide, staffing at KTA Superstores hasn’t completely recovered from pre-pandemic levels, but it has gotten better, says Toby Taniguchi, President and Chief Executive Officer.
“Looking ahead, we want to stay engaged in the community, stay sustainable, build resilience, and provide careers for our associates, while being a locally owned family business,” he says.
As a leading agricultural force in the state, Hawaii Foodservice Alliance, based in Kea‘au, provides distribution of local agricultural and manufacturing programs through their extensive statewide platform. The company keeps its recruiting strategy simple, says Chad Buck, Owner, CEO.
“We keep our existing staff happy and growing both personally and professionally. To this end, we have robust staff development programs offering a wide range of courses, with all staff members able to attend on company time. We are thankful that over 90% of our new hires are referred by existing staff members.”
Matson
A proud American shipping company with Hawai‘i roots dating back 140 years, Matson introduced containerization in the Pacific – an innovation that revolutionized the industry and became the worldwide standard – as well as the first automobile-carrying ship in the Pacific.
Matson was also among the first containership operators to recognize an obligation to protect the environment and set another industry standard decades ago with its Zero Solid Waste Discharge policy. The company has set goals of reducing fleet greenhouse gas emissions by 40% by 2030 and achieving net-zero total Scope 1 GHG emissions by 2050.
Matson provides industry-leading on-time delivery of essential goods to the economies of Hawai‘i, Alaska, Guam, Micronesia, and South Pacific islands and premium, expedited service from China to the U.S. West Coast. A key supply chain partner, its dependable U.S.-built, -owned and -operated ships and assets can be relied upon to continually replenish customer inventories.
In recent years, Matson has committed $2 billion in new ships and terminal improvements to support its Hawai‘i service.
Matson contributes volunteer support and more than $3 million in cash and inkind services to hundreds of non-profits annually. Since the pandemic, the company has committed $10 million in cargo services to Hawaii Foodbank.
Supply Chain
Hawai‘i Island businesses agree that after the pandemic, supply chain issues have mostly returned to normal levels.
“We’re over that for sure,” says Bauer, adding that usual regular disruptions such as wildfires in California, hurricanes on the Gulf Coast, or labor strikes can still affect HPM’s lumber supplies.
Matson also reports no supply chain issues.
“We continue with deliveries to Hawai‘i Island Tuesdays and Fridays, and continue to supplement capacity with Young Brothers service as needed,” says Len Isotoff, Senior Vice President, Pacific, Matson.
Matson has also made a significant investment in new vessels, including three new Aloha Class vessels, and has upgraded barges to accommodate more cargo and any surge in volumes that might come about by increased events and arrivals. They are also working closely with the Hawai‘i State Department of Transportation Harbors Division on the Honolulu Harbor improvements, as well as upcoming improvements to the harbor at Kawaihae.
“It’s all going to add more capacity and help us improve efficiencies, and accommodate future growth in a safe manner,” says Isotoff.
KTA continues to partner with locally produced or sourced producers to ensure stores have a stable supply of items, especially fresh fish, meat, and fruits and vegetables, as opposed to competing with conglomerates such as Amazon and Walmart for national brand items.
“We can’t compete with the big retailers, so we try to offer niche items,” says Taniguchi.
KTA is also beginning to see an uptick in international visitors, and has added a Korean section to the Hilo store.
“That really seems to have taken off,” Taniguchi says.
KTA has also expanded into health and wellness outreach for island communities.
“Our pharmacy team has started to go out to care homes with flu shots. Health and wellness is an important issue, especially for our rural communities,” Taniguchi says.
While supporting local producers through its distribution partners, HFA is continuing to see increased demand for local beef.
“Hawai‘i Island plays a pivotal role in steering our state’s efforts towards a more sustainable future,” says Buck.
KTA Super Stores
KTA Super Stores started in 1916, as a modest 500 square foot grocery and dry goods store, by Koichi & Taniyo Taniguchi. Since then, KTA has grown to a seven store chain, serving the residents of Hawai‘i Island.
When they first opened, the couple had no idea their modest business would someday evolve into a multi-store supermarket chain, employing over 800 associates.
By 1940, a branch store was established in Downtown Hilo. This proved to be a wise decision when the original structure the couple began with was destroyed by the tsunami of 1946. This branch (Downtown) was converted into a supermarket in 1953, and was later followed by the opening of the Kailua-Kona store in 1959 (relocated to its present location in 1975). Just seven years later, the Puainako store was opened, followed by Keauhou in 1984, and the Waimea store (located in Kamuela) in 1989.
In 1990, a sixth location was opened to serve the growing community of Waikoloa Village, and in 2018, KTA Express Kealakekua opened their doors.
For over 108 years, KTA Super Stores has been committed to our founder’s philosophy, which is a commitment to humbly serve the people of our community.
Artificial Intelligence
HPM has begun utilizing artificial intelligence for repetitive tasks and activities that don’t require a lot of human interaction, or making a judgment call, Bauer says.
This year, HPM will roll out AI to implement electronic labels on items instead of the “old school” sticker labels.
“The purpose is not to replace jobs. It will save a lot of time and labor, and allow our employees to focus more attention on mission-centric processes and also elevate the service to our retail customers,” Bauer says.
KTA has also begun to implement AI technology. The company recently installed self-checkout stands in the Hilo location, with a camera inside to scan and identify produce products. KTA is also planning self-checkout stands for the Kona store. The purpose is not to reduce employees, but to supplement available staffing with another option for customers.
“We’re looking at how AI can enhance customer service and streamline operations,” Taniguchi says.
HFA sees continued expansion of their logistic services via ocean, air, and trucking over the coming months and through 2025.
Says Buck, “In the near future, we anticipate AI increasing the speed at which we develop and deploy our tech, and blockchain technology playing a bigger part in the tracking and transparency of time and temperatures with our customer base.”
Hawaii Foodservice Alliance
Since the onset of the pandemic, HFA has focused on enhancing the distribution of local agricultural and manufacturing programs through our extensive statewide platform. Our goal is to empower local farms and food producers in Hawai‘i with the capability to reach markets across all islands, thus providing the economies of scale essential for their financial sustainability.
As the leading agricultural force in the state, Hawai‘i Island plays a pivotal role in steering our state’s efforts towards a more sustainable future. In support of local produce, HFA is grateful to offer statewide distribution for producers such as Hawaii Farming LLC with their “Keiki Cukes” cucumber line, the Hawaii ‘Ulu Cooperative with their lines of IQF ‘ulu, kuala, kalo, and pala‘ai, as well as Island Harvest and their selection of macadamia nut products.
Hawai‘i Island is also the leader in local beef production. HFA continues to see increased demand for local beef through our distribution partnerships with Hamakua Meat Processors, Kuahiwi Ranch, Big Island Beef Producers, and Parker Ranch.
HFA remains dedicated to connecting local agricultural and manufacturing initiatives to every grocer, club, retailer, and institution throughout the state. Our continuous efforts aim to help propel Hawai‘i toward a future that is both food-secure and sustainable.
