PG&E hikes spending on Asian-owned businesses and other diverse suppliers
• Spending on Asian businesses at an all-time high
• Outlays for diverse suppliers now 42 percent of company’s procurement budget
• Utility company has one of California’s leading supplier diversity programs
SAN FRANCISCO, California — Utility company Pacific Gas and Electric Co. (PG&E) announced that its total spending on Asian-owned business enterprises reached an all-time high of $335.6 million last year.
This amounts to an increase of $45.7 million or 15.8 percent over 2012.
PG&E also revealed that it spent $2.3 billion with diverse suppliers, a 265.2-million increase over the previous year.
Spending on diverse suppliers accounted for 42.1 percent of the company’s total procurement budget.
“Our focus on supplier diversity has given new opportunities to thousands of businesses, allowing them to grow and hire, strengthening California’s economy,” said PG&E president Chris Johns.
“It also has led to innovative solutions to the challenges we face as a company, enabling us to better serve our customers and deliver safe, reliable and affordable gas and electric service,” he added.
PG&E has developed one of the state’s leading supplier diversity programs, which has resulted in an 11-year trend of consecutive year-over-year growth in diverse spending.
As part of the overall record spend with diverse suppliers, PG&E set new all-time standards in total spend in these enterprise categories:
- Minority business enterprise (MBE): $1.5 billion or 27.4 percent of total spend
- Woman business enterprise (WBE): $686.1 million or 12.5 percent
- Service-disabled veteran business enterprise (DVBE): $125.5 million or 2.3 percent.
A recent study done by the Center for Strategic Economic Research showed PG&E contributed $22.2 billion of economic activity and supported nearly 71,600 jobs in the utility’s service area in 2012. A story on this survey appeared in Currents, PG&E’s electronic newsletter, on Feb. 20.
PG&E also partners with diverse suppliers to help them compete in a constantly changing supply chain through its Technical Assistance Program.
This program includes training in signature initiatives to gain a competitive business advantage (such as Diverse Suppliers Go Green and Diverse Suppliers Are Safe), technical assistance partnerships (Small Business Administration business training) and program and educational scholarships to build capacity (UCLA Management Development for Entrepreneurs Program).
PG&E’s Supplier Diversity Department has launched dozens of events to support diverse businesses. In 2013, PG&E played host to the first “Boots to Business,” a workshop designed to help veteran and service-disabled veteran-owned businesses become successful.
“PG&E is on the forefront of supplier diversity,” said Randolph P. Sinnott of Sinnott, Puebla, Campagne & Curet. Sinnott’s service-disabled veteran-owned law firm started providing PG&E with litigation services in 2011. “With PG&E’s support, we’ve been introduced to other companies in the utility industry and others, for consideration in their supplier diversity programs. PG&E is a true leader in supplier diversity.”
“PG&E’s progressive program to foster great working relationships with qualified diverse suppliers has greatly benefited GTS,” said Katie Clapp, president of Gas Transmission Systems, Inc.
GTS is a woman-owned business, which provides a wide range of engineering and consulting services such as hydrostatic test and replacement services to utilities, gas pipeline owners and operators. “Our growth includes a workforce increase from 40 to 188 employees, resulting in a positive effect on the California economy,” said Clapp.
“PG&E’s support of local California minority-owned businesses like S&S Supplies and Solutions creates a positive ripple effect to the economy of California, California businesses and California residents and employees who work for companies who work for PG&E,” said Tracy Tomkovicz, chief executive officer of S&S Supplies and Solutions, an Asian-American woman-owned tool supplier.
Besides establishing company supplier diversity standards, PG&E’s Supplier Diversity Department received numerous honors in 2013 (partial list):
- For the third consecutive year, PG&E was named “Corporation of the Year” by the Northern California Minority Supplier Development Council for its consistently strong commitment to minority business development.
- HispanicBusiness.com chose PG&E as one of its 2013 Top-25 Leaders in Supplier Diversity.
- The California Black Chamber of Commerce presented PG&E with its Diversity & Procurement Outreach Award for its commitment to contract with diverse businesses.
PG&E’s Supplier Diversity website contains more information about the program. The site also provides details on how to become a certified diverse supplier.
