Hard work paying off at Hoku Scientific Inc.
By Sean Hao
Advertiser Staff Writer
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At Hoku Scientific Inc., even the boss cleans bathrooms.
Dustin Shindo, CEO of the Kapolei-based maker of fuel cells, said creating a corporate culture dedicated to working harder than the competition — a difficult task given Hawai'i's laid-back lifestyle — is key to his company's success.
That means each of the company's 20 employees pulls bathroom duty at Hoku's new offices.
"The nice thing is we have more and more employees so now it's only three or four times a year," Shindo said during a Hawaii Venture Capital Association luncheon in downtown Honolulu. "The bad thing is we've doubled the number of bathrooms.
"It sets the culture that no one is above any job," Shindo said.
So far, the dedication is paying off.
In July, Hoku Scientific Inc. became the first local company to turn public since 1999.
Hoku's stock climbed 82 percent from it's initial offering price of $6, to $10.90 yesterday on the Nasdaq National Market.
Shindo said Hawai'i companies face challenges not common at their Mainland counterparts, including fewer networks of professionals and suppliers.
"If it were easy, everyone and their mother would do it," he said. "In Hawai'i it's more of a challenge. One way you can offset that is by working harder than everyone else."
Shindo suggested that companies take a contrarian approach. That includes hiring employees others don't want, including those who are older and have more experience.
It also applies to business strategy, Shindo said. For example, five years ago, when the company was founded, there was little interest in fuel-cell-related companies, Shindo said.
Still, Hoku decided to develop the membrane, or engine, that drives fuel cells, at a time when interest was low.
A fuel cell operates like a battery, but does not run down or require recharging. It produces energy in the form of electricity and heat as long as fuel such as hydrogen is supplied.
Hoku's products are geared toward markets such as energy production for homes and autos, and its customers include Sanyo Electric Co., Nissan Motor Co. and the U.S. Navy.
Reach Sean Hao at shao@honoluluadvertiser.com.