Gulf Island’s growth came with concentrated customers

Gulf Island Fabrication’s revenue rose in 2005, but the same annual filing shows how concentrated its business remained. Three customers accounted for 42 percent of sales, the Houma-based company reported in its 2005 Form 10-K.

Revenue reached $188.5 million, up from $173.9 million in 2004. Management reported that Hurricanes Katrina and Rita interrupted production for an aggregate of approximately three weeks in production days. Displaced employees, disrupted supplies and inadequate depth in the Houma Navigation Canal continued to affect operations through year-end.

The filing also explains that its largest customers could change from year to year. Demand depended partly on their construction budgets and on Gulf Island’s ability to meet delivery schedules.

These are company-wide results from Houma, not a measure of Acadiana household income. Their value is the distinction they reveal: higher annual sales and a broad customer base are different things. A supplier can grow while still relying heavily on a few buyers, and an order book cannot by itself keep a yard working when employees, materials or water access are disrupted.