As everyone went thru the recession in 2008 / 2009 we read and experienced a number of industries and places that suffered. One of those was Las Vegas where tourism was down, housing and foreclosures sky rocketed and corporate travel to events and conferences were pulled way back.
Fast forward to early 2011 and Las Vegas shows a great example of the recovery. Little has been heard about any great recovery or bounceback from Las Vegas. But scratch the surface and there is some interesting data that highlights a couple of things about this economy — namely:
- big business is doing just fine, thank you
- it is a jobless recovery
We took 7 Global 5000 firms in Nevada and looked at their history of revenue and employees over the past 5 years including the 2010 results. The companies included in this selection were:
- International Game Technology
- Ameristar Casinos
- Pinnacle Entertainment
- Wynn Resorts
- Boyd Gaming
- Las Vegas Sands
- MGM Mirage
Combined revenue for these companies was $23.5 billion. Higher than it has ever been and almost 20% up over 2009. So, not only have they bounced back but they generated more revenue than they ever have. So, not just working it’s way out of the financial trough — but doing better than ever.
Also, consider that these companies employed approximately 134,000 people last year. Not the highest in record and 6.6% up over 2009.
So, revenues grew 19% and employees less than 7%. Business is good and the jobless recovery continues.
Over a 5-year period from 2006 to 2010, revenue grew at a compound growth rate of 7.5% while employment grew and 1.6% When we do the calculation for revenue per employee and check that growth — it comes in at 5.7% which helps drive profitability.