Military construction surge drives strongest confidence in five years

By Oyaol Ngirairikl 

For the first time in five years, not a single participant in the Guam Business Magazine Top Companies in Micronesia Confidence Survey reported that their company’s bottom line had gotten worse. And we can even go beyond 2022 to say in 2020, more than 60% of survey participants said their bottom line was either somewhat or much worse than the previous year. Sixty percentage points isn’t something to sneeze at. 

But finally, after a turbulent few years with an economy gouged out by the COVID pandemic, marked by weak tourism numbers and soaring inflation, the 2026 survey reflects a striking turnaround, with military construction emerging as the dominant engine of growth across Micronesia’s business community.

Of course, Super Typhoon Sinlaku didn’t help. And we’ll likely see more of the impact of the super typhoon in next year’s survey. You can actually see some of that impact in this year’s list of companies, as not all that participated previously were able to join this year. We wish them the best and hope to see them back again next year. 

The Top Companies of Micronesia is an annual feature of Guam Business Magazine that highlights businesses with annual revenue exceeding $1 million. The feature provides the financial standing of these companies and offers insights into the regional economic landscape in which they operate. A section of their participation activities is an anonymous survey. 

Of this year’s Bank of Guam ASC Trust Top Companies of Micronesia Confidence Survey, participants, 36% reported their bottom line was ‘much better’ compared to a year ago — more than double the 14% who said the same in 2025. Another 27% reported being ‘somewhat better,’ with the remaining 36% saying business was ‘about the same.’

The military factor was again an unmistakable pillar in Guam’s economy based on respondents’ comments. Companies cited military construction opportunities, consistent federal government procurement, new bonding limits opening doors for local contractors, and anticipated growth tied to Department of Defense expansion across the region. For some, the pipeline is already producing results — staff rosters expanded significantly, with nearly 73% of companies reporting staffing increases over the past 12 months, up sharply from 50% in 2025. Notably, zero respondents reported a decrease in staffing, compared to 14% the previous year.

Economic expectations also saw a significant jump. Nearly 82% of survey respondents said their organizational expectations were fulfilled this past year — the highest rate recorded since the survey began tracking this question — compared to 64% in 2025 and just 57% in 2023.

Looking ahead, optimism remains tempered by some caution. While 55% of respondents expect staffing to increase in the coming year, 45% anticipate holding steady — a more measured outlook than the 60-75% staffing growth expectations seen in prior years. On bottom line outlook, 45% expect to be much better a year from now, and 18% somewhat better. One respondent did flag expectations of being somewhat worse, a reminder that not all sectors are riding the same wave.

On opportunities, nearly 73% believe the economy will provide specific openings for their business in the coming year, citing military projects, federal spending, DOD facilities, and new project pipelines as the primary sources. That is up from 64% in 2025, though still below the 79% who expressed optimism in 2023.

The survey question introduced in 2023 — asking how close companies are to their pre-pandemic position — continues to tell the most compelling multi-year story in the data.

In 2023, only 7% of respondents said they had exceeded their pre-pandemic position. By 2024, that figure had climbed to 33%. In 2025, it rose again to 43%. In 2026, more than 54% of respondents said they have exceeded their pre-pandemic position — a remarkable recovery arc for a region that weathered a global pandemic, Typhoon Mawar, weak tourism, inflation, and ongoing labor challenges.

Equally striking: for the first time in the survey’s history, zero percent of respondents said they were one to two years away from recovery. In 2023, that group represented 36% of respondents. Combined with those now at or beyond pre-pandemic levels — 72% in 2026, up from 64% in 2025 — the trajectory of recovery is accelerating.

With all of that said, 18% of respondents still say they are more than two years away, a number that has persisted across four years. These are likely companies in tourism-dependent sectors, which continue to face headwinds from slow visitor arrivals and an airline capacity environment that has not returned to 2019 levels. For them, the military construction boom taking place on Guam and other islands in the region has not yet translated into direct business opportunity.

What was your company’s biggest corporate accomplishment in THE PAST YEAR?

Editor’s note: Companies participating in this year’s Top Companies Survey were asked the question above. The following are responses from leading executives.
 

“Our biggest accomplishment has been maintaining stability while continuing to evolve the business. We focused on operational discipline, employee engagement, and improving the ownership experience for our customers, all while positioning ourselves for the transition to electrification in the years ahead.”

Clark Boswell
Vice president & general manager 
AK Guam & Saipan

“It would be great to have the public and private sectors work more harmoniously, alongside each other. The past year was especially challenging for businesses, as our tourist numbers have significantly decreased compared to the pre-pandemic period. It needs the support of both governments: Guam and federal.”

Frank S.N. Shimizu
President/CEO 
Ambros Inc.

“The past year showed me that managing risk well keeps us strong through change, and that progress isn’t about being on time to everything, but about spending the right amount of time on what truly matters — our people, our businesses, and our islands.”

Joaquin P.L.G. Cook
President/CEO
Bank of Guam

“The opening of our West Pacific Regional Headquarters in Tamuning marks a major milestone for Bank of Hawaii. This state-of-the-art facility strengthens our ability to serve Guam and the broader West Pacific region, supports our growing team on island, and reinforces our long-standing commitment to Guam’s community. It reflects both an investment in our people and our confidence in Guam’s future.”

James Polk
President/CEO 
Bank of Hawaiʻi

“This past year marked a major milestone for Black Construction Corp., with more than $1.08B in backlog, logging 19.2 million total manhours worked over the past 7 years without a lost-time incident, demonstrating sustained operational growth, strong partnerships and an exemplary team who continue to show up, navigate the various challenges we face building and operating in the Pacific and deliver successful projects.”

Leonard K. Kaae
President 
Black Construction Corp.

“In 2025, we proudly marked the 50th anniversary of Calvo Enterprises, celebrating five decades of dedicated service and a long-term commitment to the communities of Guam and Micronesia through our diversified insurance, healthcare, real estate, and retail sectors.”

Leonard P. Calvo
President/chairman of the board 
Calvo Enterprises Inc.

“In the past year, our biggest accomplishment has been achieving a steady growth in membership that resulted in a remarkable 9.2% increase in total assets stemming from member-focused initiatives like our push for online and mobile banking enrollments. We also poured resources back into the community through partnerships with local schools for financial literacy workshops for the youth. We hosted first-time homebuyer seminars to assist in making the dream of homeownership a reality. We supported food drives that supported families in need. These efforts reflect our core mission of environmental and community stewardship for all generations.”

Gener F. Deliquina
CEO
Coast360 Federal Credit Union

“As a business that thrives on consistency, our biggest single year success comes from staying steady in a sea of waves.”

Gerard A. Cruz 
President and CEO
Community First Federeal Credit Union

“With nearly 35 years of solid foundation, Core Tech is honored to participate in GPA’s solar renewable energy mission as financier, developer, and contractor — marking our new era of community-focused service amid global energy crisis.”

Ho S. Eun
Chairman
Core Tech International Corp.

“We remain focused on responding with agility, strengthening relationships, and delivering positive outcomes for the customers and communities we serve.”

Edward G. Untalan
EVP, retail banking group/regional manager
First Hawaiian Bank

“Moving our office to Hagatna to combine our engineering and architectural teams into one office.”

Aaron Sutton 
Guam office manager/civil engineer
GHD Inc.

“The GU3 Data Center is on track for completion this year. Once operational, it will further strengthen Guam’s role as a key digital hub in the Pacific, enabling low-latency, high-capacity connectivity between Asia and the United States while supporting next-generation infrastructure and global data flows.”

Roland Certeza
President/CEO
GTA TeleGuam

“In a year that required adaptability and focus, our biggest accomplishment was delivering excellence through collaboration. By working closely with clients, partners and our teams, we achieved shared success while continuing to build the long‑term relationships that are essential to sustaining growth in Guam.”

Jonathan E. Tseu
Regional vice president
Hensel Phelps

“In a year shaped by soft tourism demand, geopolitical uncertainty, and natural disruptions, our greatest accomplishment was sustaining operational excellence through the strength and dedication of our team while reinforcing our role as a trusted partner to our community, government, and global travelers, supporting Guam’s recovery.”

Hiroki Sugie
General manager
Hilton Guam Resort & Spa

“Motivation of our key management team was our company’s biggest corporate accomplishment in the past year. By allowing our managers autonomy and ownership of the tasks at hand, we saw outstanding results, with several divisions achieving their highest profitability on record. With that growth, key employees from within the organization are slated for promotion and we are actively hiring new talent.”

Ramona Lea Jones
CEO
Jones & Guerrero Co. Inc.

“In the past year, we’ve had to overcome unexpected challenges. I’m reminded that our most valuable asset is not our physical facilities, but our people who have adapted and shown resilience to meet the evolving needs of the market.”

Pongsathorn Visutseth
President
Mobil Oil Guam Inc.

“This past year, Pacific International Inc.’s greatest accomplishment was strengthening our corporate governance and formally transitioning operational leadership to our children — an important step in securing the company’s future while preserving its values and direction.”

Jerry and Mercy Kramer
CEO
Pacific International Inc.

“2025 marked a significant accomplishment in PIC's 45 year history on Guam. In the course of three months, PIC completed restoration of the amphitheater and installed a new show entitled “Pirates of the Pacific,” bringing back Guam’s best outdoor dinner theater with a new and exciting show was a noteworthy accomplishment that was only made possible by PIC’s amazing team and the support of PHR Ken Micronesia Inc. for having the vision and faith to reinvest in Guam’s tourism industry.” 

Ben H. Ferguson
General Manager 
Pacific Islands Club Guam

“When I reflect on the past year, our greatest corporate accomplishment isn’t defined by a single award — it’s the collective validation of who we are as a company and the people who make that identity real every day. Being named Guam Contractor of the Year 2025 is a milestone that speaks to our investment to our people and the communities we serve. Earning the ABC Safety Pinnacle Award for the second consecutive year reinforces our unwavering commitment to ensuring our people goes home safe and sound everyday. Being recognized as an ABC Top Performer and achieving ABC Accredited Quality Contractor status further demonstrates that excellence isn’t something we chase — it’s something we practice.”

Keith J. Stewart
President/CEO
Pacific Rim Constructors Inc. and Affiliates

“This past year the PFM team completed their first round of inter-divisional goal setting known as objectives and key results (OKRs), demonstrating the team’s ability to set goals for accountability, while encouraging transparency, collaboration, and the open sharing of ideas.”

Rob P. Salas II
President 
Pacific Federal Management Inc.

“Pay-Less Markets, Inc’s single biggest accomplishment in 2025 is our induction as a Laureate into the Guam Chamber of Commerce Business Hall of Fame, a milestone that coincides with 75 years of serving our local community. This honor reflects our success as a locally owned company and our continued commitment to Guam’s growth and development. It also recognizes our recent significant investments, including the Sinajana store renovation and the acquisition of both the Sinajana and Maite locations as company-owned assets.”

Edward J. B. Calvo
President
PMC Investments Inc.

“Our biggest accomplishment this past year was successfully delivering the Student Success Center at the University of Guam, a project that reflects our commitment to quality construction and meaningful community impact.”

Jong K. Kim
President
Reliable Builders

“SPPC continued to grow its Market Share even with current economic conditions. We have strengthened our team with the addition of several key personnel.”

Robert E. Koeppen Jr.
CEO
South Pacific Petroleum Corp.

“We made strategic acquisitions this year in Guam and Saipan that will position us well for continued success in our core businesses going forward. Stay tuned.”

Jeffrey B. Jones
President/CEO
Triple J Enterprises Inc.