COLUMBIA BASIN BUSINESS RETENTION AND EXPANSION PROJECT R EPORT ON F ERNIE & AREA S PRING 2016 The Fernie Chamber of Commerce is a membership driven organization focused on being a vibrant organization recognized for its valuable contribution to the community. The City of Fernie Official Community Plan supports the surveying of local businesses to understand the needs of business. This project was undertaken with financial support from the City of Fernie. The Fernie and area Retention and Expansion project is focused on identifying the needs of our existing businesses. The project was undertaken with financial support from the Columbia Basin Trust. The Columbia Basin Rural Development Institute, at Selkirk College, is a regional research centre that supports informed decision-making through the provision of information, applied research and related outreach and extension support. Visit www.cbrdi.ca for more information. EXECUTIVE SUMMARY This report describes findings from a Business Retention and Expansion (BRE) survey conducted at 75 businesses in Fernie and area, or about 1 in 6 companies. BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. KEY RESEARCH FINDINGS Select survey results are summarized below. Survey Module Company Information Local Workforce Sales Facilities and Equipment Government Services Finding The highest number of respondents’ businesses are classified as ‘Retail and Wholesale Trade’ and ‘Accommodation and Food Service’ under the North American Industry Classification system. However, it is important to note that the BRE deliberately focused on these sectors sector for this study. The quality of the product and the workforce were the most frequently cited reasons given for success in Fernie and area. Most companies surveyed have been in business for between 5 and 9 years. Over half of the companies are ‘growing’. Respondents reported a total of 1,072 employees. The majority of employees are full-time. Sales/Marketing and Business Management were most commonly listed as key areas for training or professional development. The most critical considerations for employees is the cost of living and housing. Businesses indicated the market for their product/service is mostly either increasing or stable. 71% of businesses report that the majority of their sales are to customers within the community or region. The most frequent reason for purchasing products or services outside of the area is that the product is not available locally. 62% of businesses lease the facility in which they operate, and 65% would prefer to own their facility. Just under half of businesses plan to expand within 3 years, with the vast majority indicating that expansion will occur within the community. Top recorded barriers to expansion are the lack of skilled staff and the lack of suitable premises. Top rated government services include access to the US border, access to highway/roads, and telecommunications. The lowest ratings include availability of buildings for lease or purchase, availability of appropriately zoned land, availability of rail transport facilities, and access to airport facilities. Improvements to the land use/zoning regulations and the recycling and waste management systems are the government services most in need of improvement. The Calgary International Airport is the most used airport by local businesses, followed by the Canadian Rockies International Airport (Cranbrook). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses ii Business Climate Assessment and Plans The overall business climate was rated as good by most businesses, and the majority of businesses believe that the business climate will improve over the next five years. Business climate factors that received the highest ratings include the chamber of commerce, the cultural and recreational amenities, and tourism services. Tourism, educational services, and construction were the most commonly cited as sectors, businesses, or industries that could be attracted to the region. The business competitiveness factors that are most important to respondents include availability of telecommunications infrastructure and services, and improvement of customer service. The overall health of their company was rated as good by 52% of businesses and excellent by 33% of businesses. None of the businesses surveyed indicated that they were at high risk of closing and just 2% indicated they are at high risk of downsizing. NEXT STEPS AND POTENTIAL ACTIONS The results of this survey can be used to inform short- and long-term planning. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate: Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,072 employees. The majority (51%) of employees are full-time, followed by 27% part-time employees. The size of the workforce appears stable and healthy, with 53% of businesses indicating that the number of employees at their business has stayed the same, and 38% indicating that the number has increased. Expected employment trends are also stable with the majority of businesses expecting the number of casual, part time, and full time employees to stay the same. The majority of businesses (88%) recruit locally. 38% of businesses indicate that they currently face recruitment challenges, 55% anticipate future difficulties, and 63% of businesses stated they believe there are strategies that could be undertaken to address employee recruitment. Additionally, 50% of respondents noted that the lack of skilled staff was posing a barrier to expansion plans. Respondents most commonly rely on advertising when recruiting, followed by word of mouth, the use of recruiting firms, raised wages, job fairs, the internet, and the Canada Job Bank. Actions that could prove helpful include: improved job advertising, assistance with the temporary foreign worker program, and supporting affordable housing. The hospitality and food/beverage service industries featured in areas of future recruitment challenges, as did the area of administrative/clerical. Targeted actions that focus on the employment that supports the tourism sector could be considered. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living, housing, and childcare. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses iii Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 8% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 38% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low rate of employed youth considered essential, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting businesses with local schools and post-secondary institutions. Business Growth & Expansion 60% of businesses in the region report being in a growth cycle and 36% are maturing, and the majority of businesses are anticipating low to moderate sales growth over the next year, with 43% expecting moderate sales growth between 1 – 9% and 34% expecting 10-24% sales growth. The vast majority of businesses (71%) indicate that the majority of their sales are to local markets, indicating there may be an opportunity to expand into surrounding markets. 49% indicate that they are planning to expand within the next three years. Less than half (46%) of those businesses planning to expand feel their existing site is adequate, and 85% indicated that expansion would occur within the community. Businesses also report that employment rates are stable, and that they anticipate continued stability over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on local business conditions. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, identifying and securing new sites if appropriate, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include the lack of skilled staff, the lack of suitable premises and financing. It is worth noting that few (31%) businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in sized and independent. The customer base for businesses appears to be diverse, with 44% of businesses indicating that just 1 - 9% of their sales are generated by their top three customers. Tailoring supports and services to small/medium sized, independent businesses that are focused on the service and tourism sectors will benefit businesses in Fernie and area. Services and supports should consider that 89% of functions provided by a business are ‘services’. Actions to support and encourage small and medium sized businesses could include specific Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses iv training targeted to the needs of small businesses, such as providing shared services such as payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include exploring existing supports available from the provincial Small Business BC organisation, Tourism BC, or CBT’s Basin Business Advisors Program. Supply Sourcing and Procurement The data indicates that 44% of supplies come from within the local region. The most common response (78%) for the reason why supplies are sourced outside of the local area is that they are not available locally. The ability to source local supplies of meats, dairy, fruits, vegetables, and grains were the most frequently cited by respondents. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 52% of businesses do have a training budget and 48% indicated that training typically occurs locally. 50% of respondents indicated that the lack of skilled staff was a barrier to their expansion plans. 56% of businesses were aware of new trends, technologies and industry changes that will require new skills. Areas identified for training include sales/marketing skills, business management, customer service, and food safe/first aid/safety. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 12% of respondents indicated that they have a formal succession plan and just over half (51%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among local businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector The community of Fernie is already invested in the tourism sector with a relatively high percentage (42%) of businesses engaged in tourism related industries (20% in the ‘Retail and Wholesale Trade sector and 13% in the ‘Accommodation and Food Services’ sector, and 9% in the ‘Arts, Entertainment and Recreation’ sector). An overwhelming 93% of respondents indicated that tourism was the economic driver with the greatest growth potential. Respondents also noted that Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses v increasing the number of tourism related businesses, educational services, and construction related businesses would benefit the region. Actions to increase and support the tourism industry could include the continued collaboration between government and local tourism agencies such as Destination British Columbia, Tourism Fernie, the Fernie Chamber of Commerce, and local businesses. With most businesses expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. Government Services A recurring theme was the lack of buildings and land available for lease or purchase, with 42% of respondents indicating that the lack of suitable premises was a barrier to expansion, and 17% suggesting that changes to the land/use and zoning would improve the government services available. With 49% of businesses planning expansions over the next three years, and 54% of those indicating that their site is currently not adequate to support those plans, there is an opportunity for the local government to work with local businesses to understand existing and future business needs and assess land use planning at a micro level. Issues around the lack of available land may be addressed through communication strategies between the local government, local businesses, and the community. Opportunities may exist locally for changes to land use designations and zoning that could serve both the greater community and local businesses. Collaboration and dialogue with targeted businesses could produce valuable results and innovative solutions. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses vi TABLE OF CONTENTS Executive Summary ............................................................................................................................. ii Key Research Findings ..................................................................................................................... ii Next Steps and Potential Actions ................................................................................................... iii List of Figures .................................................................................................................................... viii Project Overview ................................................................................................................................. 1 The BRE Concept ............................................................................................................................. 1 Project Objectives............................................................................................................................ 1 Research Considerations ..................................................................................................................... 2 The BRE Survey ................................................................................................................................ 2 The Data Set .................................................................................................................................... 2 Data Collection ................................................................................................................................ 2 Data Input, Analysis and Reporting ................................................................................................. 3 Research Findings ................................................................................................................................ 4 Company Information ..................................................................................................................... 4 Local Workforce............................................................................................................................. 12 Sales ............................................................................................................................................... 23 Facilities and Equipment ............................................................................................................... 28 Government Services .................................................................................................................... 36 Business Climate ............................................................................................................................ 41 Assessment and Plans ................................................................................................................... 54 Recommendations............................................................................................................................. 57 Next Steps...................................................................................................................................... 57 Potential Action Areas ................................................................................................................... 58 Appendix A: Data Tables.................................................................................................................... 62 Company Information ................................................................................................................... 62 Local Workforce............................................................................................................................. 72 Sales ............................................................................................................................................... 91 Facilities and Equipment ............................................................................................................. 102 Government Services .................................................................................................................. 117 Business Climate .......................................................................................................................... 121 Assessment and Plans ................................................................................................................. 137 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses vii LIST OF FIGURES Figure 1: Industry classification ........................................................................................................... 4 Figure 2: Facility function(s) ................................................................................................................ 5 Figure 3: Location of primary competitors .......................................................................................... 5 Figure 4: Key words and respondents' discussions of the factors that make them successful in this region................................................................................................................................................... 6 Figure 5: Choosing Fernie .................................................................................................................... 7 Figure 6: Other Locations .................................................................................................................... 7 Figure 7: Location of Other Locations ................................................................................................. 8 Figure 8: Location of headquarters ..................................................................................................... 8 Figure 9: Life cycle stage...................................................................................................................... 9 Figure 10: Length of time in business .................................................................................................. 9 Figure 11: Type of business ............................................................................................................... 10 Figure 12: Ownership and management changes in last 5 years ...................................................... 10 Figure 13: Anticipated timeline for ownership change ..................................................................... 10 Figure 14: Anticipated exit strategy .................................................................................................. 11 Figure 15: Existence of formal succession plan ................................................................................. 11 Figure 16: Existence of current business plan ................................................................................... 11 Figure 17: Total number of employees ............................................................................................. 12 Figure 18: Nature of employment ..................................................................................................... 12 Figure 19: Historical Employment trend ........................................................................................... 13 Figure 20: Employment trend over last 3 years ................................................................................ 13 Figure 21: Employment trend over next 3 years ............................................................................... 14 Figure 22: Age of the majority of essential employees ..................................................................... 14 Figure 23: Wages in relation to other businesses in the region ........................................................ 15 Figure 24: Trend in unfilled positions ................................................................................................ 15 Figure 25: Location of workforce recruitment .................................................................................. 15 Figure 26: Recruitment and retention challenges ............................................................................. 16 Figure 27: Key words and responses in respondents' discussion of retention efforts ..................... 16 Figure 28: Recruitment Activities ...................................................................................................... 17 Figure 29: Current recruitment areas................................................................................................ 17 Figure 30: Future areas where recruitment may be challenging ...................................................... 18 Figure 31: Strategies to overcome employee recruitment challenges ............................................. 18 Figure 32: Skill level of majority of workforce ................................................................................... 18 Figure 33: Training Budget ................................................................................................................ 19 Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills ...................................................................... 19 Figure 35: Training or professional development needs................................................................... 20 Figure 36: Areas for new Training in next five years ......................................................................... 21 Figure 37: Preferred modes of training ............................................................................................. 21 Figure 38: Usual training locations .................................................................................................... 22 Figure 39: Critical considerations for employees .............................................................................. 22 Figure 40: Annual sales ...................................................................................................................... 23 Figure 41: Status of market for product/service ............................................................................... 23 Figure 42: Market Share in Comparison to Competitors .................................................................. 24 Figure 43: Projected sales growth in the next year ........................................................................... 24 Figure 44: Historic sales trend ........................................................................................................... 25 Figure 45: Export sales....................................................................................................................... 25 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses viii Figure 46: Sales generated by top three customers ......................................................................... 26 Figure 47: Geographic source of majority of sales ............................................................................ 26 Figure 48: International trade status................................................................................................. 26 Figure 49: Engagement with government procurement processes .................................................. 27 Figure 50: Geographic source of majority of supplies ....................................................................... 27 Figure 51: Reason for out-of-area purchasing................................................................................... 28 Figure 52: Size of facility .................................................................................................................... 28 Figure 53: Condition of facility .......................................................................................................... 29 Figure 54: Condition of equipment ................................................................................................... 29 Figure 55: Ownership status of facility .............................................................................................. 29 Figure 56: Length of time remaining on lease ................................................................................... 30 Figure 57: Ownership preference...................................................................................................... 30 Figure 58: Historical Investment in facility (past 18 months)............................................................ 31 Figure 59: Room for expansion ......................................................................................................... 31 Figure 60: Plans to expand within three years .................................................................................. 31 Figure 61: Adequacy of current site to support expansion ............................................................... 32 Figure 62: Expansion to occur in community .................................................................................... 32 Figure 63: Estimated expansion investment ..................................................................................... 32 Figure 64: Component of expansion budget for equipment and technology ................................... 33 Figure 65: Component of expansion budget for real estate ............................................................. 33 Figure 66: Size of facility expansion .................................................................................................. 33 Figure 67: Recent facility upgrades ................................................................................................... 34 Figure 68: Planning facility upgrades................................................................................................. 34 Figure 69: Barriers to upgrading ........................................................................................................ 34 Figure 70: Barriers to expansion........................................................................................................ 35 Figure 71: Organizations approached for expansion assistance ....................................................... 35 Figure 72: Considering energy efficiency in expansion plans ............................................................ 36 Figure 73: Awareness of BC Hydro Power Smart .............................................................................. 36 Figure 74: Rating of government services ......................................................................................... 38 Figure 75: Key words and responses in respondents' suggestions for improvements to government services .............................................................................................................................................. 40 Figure 76: Airport service used.......................................................................................................... 40 Figure 77: New services at local airport ............................................................................................ 41 Figure 78: Rating of local business climate ....................................................................................... 41 Figure 79: Rating of business climate factors .................................................................................... 42 Figure 80: Business climate today vs. 5 years ago............................................................................. 43 Figure 81: Business climate 5 years from today ................................................................................ 44 Figure 82: Community’s strengths as a place to do business............................................................ 44 Figure 83: Community's weaknesses as a place to do business ........................................................ 45 Figure 84: Barriers to growth in the community ............................................................................... 46 Figure 85: Level of service from business support providers ............................................................ 47 Figure 86: Potential Suppliers............................................................................................................ 48 Figure 87: Sectors, businesses or industries that could be attracted to region ................................ 48 Figure 88: Importance of business competitiveness factors ............................................................. 50 Figure 89: Performance on key productivity drivers ......................................................................... 52 Figure 90: Economic drivers with greatest growth potential ............................................................ 53 Figure 91: Impact of Proximity to Alberta ......................................................................................... 54 Figure 92: Facility’s overall health ..................................................................................................... 54 Figure 93: Overall health of parent company ................................................................................... 54 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses ix Figure 94: Local management's attitude toward community ........................................................... 55 Figure 95: Parent company's attitude toward local community ....................................................... 55 Figure 96: Risk of facility closing........................................................................................................ 55 Figure 97: Risk of facility downsizing ................................................................................................. 56 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses x PROJECT OVERVIEW This report describes findings from a Business Retention and Expansion (BRE) survey1 conducted within the Fernie and area during the Winter/Spring 2016. The project was led by the Fernie Chamber of Commerce with support from the City of Fernie and the Columbia Basin Trust. Interviews were completed by a local research consultancy firm and BRE Lead (Chamber Executive Director). A BRE Advisory Committee, including a Chamber Board Member, a City Administration representative, and community business leaders helped guide the process. The Columbia Basin Rural Development Institute (RDI) provided training, data analysis, and report writing support. THE BRE CONCEPT BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about the concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Ultimately, communities will have greater success in attracting new businesses if existing businesses are content with local economic conditions and community support. Business development and job creation are key factors in fostering healthy and vibrant communities— depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of new jobs come from existing businesses. PROJECT OBJECTIVES Objectives specific to the Fernie and area BRE project were as follows: 1. Identify the needs, concerns, and opportunities of existing local businesses in order that, where appropriate, local action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s local businesses with respect to expansion, relocation, and /or retention, as well as following-up where assistance can be provided; 3. Demonstrate the Chamber’s supportive role to commerce in Fernie and build relationships with the entire business community; and 4. Encourage the business community’s active involvement in economic development. 1 Short and Long BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/appliedresearch/business-retention-expansion/ Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 1 RESEARCH CONSIDERATIONS THE BRE SURVEY The RDI has a licence agreement with the Economic Development Association of BC for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data presented in this report were collected as part of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the BC Business Counts program across the province of BC. Survey data can therefore be analyzed at a community, sub-regional, regional and provincial level. The base survey, consisting of 94 questions, includes modules for company information, the local workforce, sales, facilities and equipment, and future plans for growth or succession. Based on feedback from a BRE regional advisory group, thirteen region-specific questions were appended to the base BRE survey. The Labour Market specific questions were added to the base survey in order to identify and address labour market supply and demand, uncover some emerging labour market trends, as well as determine barriers to labour retention within Fernie and area. THE DATA SET The City of Fernie and surrounding area, including businesses in the Hosmer area made up the geographic scope of the study area. A complete list of business licenses in Fernie was collected from the City of Fernie. Businesses were sorted into the North American Industry Classification System (NAICS) categories to ensure equal representation of each sector. There was an emphasis on tourism and retail sectors. The survey was advertised in local news publications, through social media channels, and the Chamber of Commerce newsletter and events to invite businesses to participate. Businesses were contacted by phone and by email to solicit participation. In total, 75 businesses took part in a one-on-one interview with the research consultant. Responses were entered into a confidential database. Due to time constraints of the interviewee, 3 of the 75 businesses did not participate in the thirteen additional questions developed specifically for the region. DATA COLLECTION Interviews were arranged by phone and by email. Businesses were invited to participate through advertisements in local publications, call for participants at Chamber events, and invitation in Chamber newsletters. Securing participation took 45-60 minutes per business. Face-to-face interviews took between 45 to 90 minutes to complete. Data entry took 30-45 minutes per survey. Interviews were completed by three individuals. Capasiti Consulting principals Cindy Pearson (25) and Steve Thomson (19), and Chamber Executive Director Patty Vadnais (31). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 2 DATA INPUT, ANALYSIS AND REPORTING A Chamber of Commerce employee was responsible for entering all data into the system. All interviewers and data entry clerk signed confidentiality agreements. Completed surveys were stored in a locked filing cabinet in the office of the Chamber Executive Director. Quantitative data was analysed using descriptive statistics and qualitative data was analysed using the grounded theory method of generating key coding themes. Based on the results of data analysis activities, an initial draft was generated by the RDI and then reviewed with the Chamber of Commerce Executive Director. Findings and related recommendations were assembled into this report by RDI researchers. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 3 RESEARCH FINDINGS2 COMPANY INFORMATION Type of Product/Service Offered Businesses interviewed represent a diverse cross-section of industries, with an emphasis in the tourism and service sectors. Most common are Retail and Wholesale Trade (20% or 15 respondents), Accommodation and Food Services (13% or 10 respondents), and Construction (11% or 8 respondents). Figure 1: Industry classification Other Services 7% Accommodation and Food Services 13% Arts, Entertainment and Recreation 9% Health Care and Social Assistance 5% Educational Services 5% Administrative Support, Waste Management… 3% Professional, Scientific and Technical Services 9% Real Estate and Rental and Leasing 3% Finance and Insurance 3% Information and Cultural Industries 4% Retail and Wholesale Trade 20% Manufacturing 5% Construction 11% Mining, quarrying, and oil and gas extraction 1% Agriculture, forestry, fishing and hunting 1% 0% 5% 10% 15% 20% 25% Note: 75 respondents Facility Function The vast majority of respondents (89% or 65 respondents) indicated that their facility provides services. Other primary functions include ‘headquarters’ (21% or 15 respondents) and ‘manufacturing’ (14% or 10 respondents). Fewer respondents indicated that their facility serves an engineering/research and development function, distribution or warehousing function. 2 Some questions allow multiple responses, which can result in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 4 Figure 2: Facility function(s) Services 89% Headquarters 21% Manufacturing 14% Warehousing 7% Distribution 7% Engineering/RD 5% 0% 20% 40% 60% 80% 100% Note: 73 respondents Competition The vast majority of competition (80 % or 53 responses) reported was coming from within the regional area3. Figure 3: Location of primary competitors In Region In Canada In Province Outside Canada 80% 20% 6% 3% 0% 20% 40% 60% 80% 100% Note: 66 respondents 3 Multiple competitors were listed by respondents resulting in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 5 Factors for Success Figure 4: Key words and respondents' discussions of the factors that make them successful in this region When asked what factors made their company successful in this region, the highest number of respondents cited the quality product (16% or 12 businesses), workforce (12% or 9 businesses), and demand for products/services (12% or 9 businesses) was also discussed frequently. “Resort ski hill brings tourists to town.” “Longevity, staff, product and service consistency, focus on local customers needs.” “Support from other small businesses drives the business.” “Professional services in a timely manner. Relationships are important to the success of the business.” “Local, employees live in Fernie and are community minded.” “Good product. Have niche services that aren't easily replicated.” Choosing Fernie Respondents most frequently cited the lifestyle (29% or 21 respondents) followed by a business opportunity (22% or 16 respondents). Other factors include the purchase of an existing business (11% or 8 respondents) and those who were born and raised and stayed. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 6 Figure 5: Choosing Fernie Lifestyle 29% Business opportunity 22% Bought an existing business 11% Born and raised here 11% Location 8% Close to family 7% Already living here 7% Connections to the community 5% Hobby turned into a business 1% Experience in the business 1% Established business 1% Business expansion 1% 0% 5% 10% 15% 20% 25% 30% 35% Note: 73 respondents Other Locations Figure 6: Other Locations 24% of respondents (18 respondents) indicated that their company has other locations. Yes 24% Note: 74 respondents No 76% 76% of those other locations (13 respondents) are in other areas of the province, 71% (12 respondents) are in other parts of Canada. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 7 Figure 7: Location of Other Locations In Province Elsewhere in nation Outside Canada 76% 71% 29% 0% 20% 40% 60% 80% 100% Note: 17 respondents 88% (66 businesses) of respondents reported that their headquarters are located within British Columbia, 9% (7 businesses) indicated that they are headquartered in other parts of Canada, while 3% (2 businesses) have headquarters outside of Canada. Figure 8: Location of headquarters In Province Elsewhere in nation Outside Canada 88% 9% 3% 0% 20% 40% 60% 80% 100% Note: 75 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 8 Age and Life Cycle Stage Over half of all respondents (60% or 44 respondents) reported that their business is in the ‘growing’ life cycle stage. Another 36% (26 businesses) indicated that their business is in the ‘maturing’ stage. Only 3% (2 businesses) indicated that they are in the ‘emerging’ stages, while just 1% (1 business) indicated they were declining. Figure 9: Life cycle stage Maturing Growing Emerging Declining 36% 60% 3% 1% 0% 10% 20% 30% 40% 50% 60% 70% Note: 73 respondents Most businesses (23 respondents or 31%) reported that they have been in business for between 5 and 9 years. A significant number reported that they have been in business for 10 - 19 years (21 respondents or 28%), over 20 years (15 respondents or 20%), and 1 – 4 years (11 respondents or 15%). Figure 10: Length of time in business >20 Years 20% 10-19 Years 28% 5-9 Years 31% 1-4 Years 15% <1 Year 7% 0% 5% 10% 15% 20% 25% 30% 35% Note: 75 respondents Ownership and Management 94% of all companies are privately owned, with just 6% publicly owned. Most respondents (46 respondents or 61%) indicated that their business is classified as a corporation, while 17% (13 respondents) indicated that they are a sole proprietorship. The remainder of businesses identified as other (8% or 6 respondents), non-profit (7% or 5 respondents), partnership (5% or 4 respondents), or limited liability partnership (1% or 1 respondent). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 9 Figure 11: Type of business Other Corporation Sole proprietorship Non-profit Partnership Limited liability partnership (LLP) 8% 61% 17% 7% 5% 1% 0% 10% 20% 30% 40% 50% 60% 70% Note: 75 respondents Figure 12: Ownership and management changes in last 5 years 84% of businesses (61 businesses) have not seen a management or ownership change in the last 5 years, while 16% of businesses (12 businesses) have changed management and/or ownership over that same period of time. Just 9% of businesses (7) are expecting an ownership change in the near future. Of the 12 respondents that have seen changes in management and or ownership, 80% (8 businesses) report that the change had a positive impact. Yes 16% No 84% Note: 73 respondents Succession and Business Plans Of the 7 businesses (9%) that reported a pending ownership change, 2 (33%) expect the change will happen in a year or less, 2 (33%) expect the process to take 2 years, and 33% or 2 businesses anticipates it taking 3 or more years. Figure 13: Anticipated timeline for ownership change 3 years or more 33% 2 years 33% 1 year or less 33% 0% 5% 10% 15% 20% 25% 30% 35% Note: 6 respondents 29% of respondents (2 respondents) expect that the current owner will exit the business by selling it to a non-family member, while 29% (2 respondents) expect it to be sold/transferred to another company. 14% (1 business) expect it to be sold to a family member. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 10 Figure 14: Anticipated exit strategy Other 29% Sell/transfer to a non-family member 29% Sell to another company 29% Sell/transfer to a family member 14% 0% 5% 10% 15% 20% 25% 30% Note: 7 respondents Figure 15: Existence of formal succession plan Not applica ble, 14% Only 12% (6 respondents) of businesses reported that they have a formal succession plan in place, and just 17% have identified a sucessor for their business. Of those that completed a succession plan, 100% received assistance in its preparation. Yes, 12% No, 73% Note: 49 respondents Figure 16: Existence of current business plan Just over half of all respondents (51% or 32 respondents) indicated that they have a business plan in place. No, 49% Yes, 51% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses Note: 63 respondents 11 LOCAL WORKFORCE Size of Workforce The 75 businesses interviewed reported a total of 1,072 employees. 29% or 22 of the businesses surveyed indicated that they have less than five employees and another 29% or 22 businesses indicated that they have between 5 and 9 employees. Figure 17: Total number of employees 50-99 3% 20-49 23% 10-19 16% 5-9 29% Less than 5 29% 0% 5% 10% 15% 20% 25% 30% 35% Note: 75 respondents 51% (551) of employment positions at surveyed businesses are full-time, while 27% (290) are parttime and 22% (231) are temporary. Figure 18: Nature of employment Temporary Part Time Full Time 22% 27% 51% 0% 10% 20% 30% 40% 50% 60% Note: 75 respondents 53% of respondents (39 businesses) indicated that the number of employees at their business has stayed the same historically. While 38% (28 businesses) indicated that the size of their workforce has increased. 9% (7 businesses) indicated a decrease. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 12 Figure 19: Historical Employment trend4 Increasing 38% Staying the same 53% Declining 9% 0% 10% 20% 30% 40% 50% 60% Note: 75 respondents The last three years has generally seen stability in the size of the workforce, with between 54% and 78% of businesses reporting that the number of employees has stayed the same, and between 18% and 34% reporting that employment over that three year time period has increased. Interestingly the employment trend for full-time, part-time, and casual employment were generally consistent over the previous three years. Figure 20: Employment trend over last 3 years 5% 3% Decreased 14% Casual 78% Stayed the same 62% 54% part time full time 18% Increased 34% 31% 0% 20% 40% 60% 80% 100% Note: #of respondents varies The majority of businesses iterviewed expect the size of their workforce to stay the same over the next 3 years. 4 The question considered a 10 year historical trend. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 13 Figure 21: Employment trend over next 3 years 3% Decreased 8% 4% Stayed the same 50% 0% Part Time Full Time 10% Increased Casual 88% 61% 32% 20% 46% 40% 60% 80% 100% Note: #of respondents varies Workforce Demographics 38% (27 respondents) indicated that the majority of their essential employees are between 35 and 49 years old. 37% (26 respondents) of businesses indicated that their workforce is between 26 and 34, and just 8% (6 businesses) have a workforce under the age of 25. Figure 22: Age of the majority of essential employees 50 or older 17% 35 - 49 38% 26 - 34 37% Less than 25 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 71 respondents Wages When reporting on average wages for skilled or professional workers, the majority of responses indicated they pay between $20 and $29 per hour (42% or 22 businesses) and between $30 and $49 per hour (23% or 12 businesses). The most commonly reported average hourly wage for semiskilled workers (29% or 12 businesses respectively) was between $15 -$19 and $20 - $29 and the most commonly reported average wage for entry-level workers (47% or 18 businesses of respondents) was between $10 and $12. 60% of respondents (38 respondents) reported that their wage scale is similar to other businesses in the region.5 5 Detailed wage data is found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 14 Figure 23: Wages in relation to other businesses in the region Greater than 32% Same as 60% Lower than 8% 0% 10% 20% 30% 40% 50% 60% 70% Note: 63 respondents Recruitment and Retention Of those businesses that responded, 82% (46 respondents) indicated that the number of unfilled positions at their company would remain constant. Figure 24: Trend in unfilled positions Increasing Decreasing Stable 16% 2% 82% 0% 20% 40% 60% 80% 100% Note: 56 respondents The vast majority of respondents (88% or 61 respondents) reported that they primarily recruit employees from local labour markets. 7% (5 respondents) recruit provincially, while 3% (2 respondents) report that they recruit at the national level. International recruitment was only identified by one respondent. Figure 25: Location of workforce recruitment Locally Provincially Nationally Internationally 88% 7% 3% 1% 0% 20% 40% 60% 80% 100% Note: 69 respondents Of 75 respondents, 38% (28 respondents) indicated that they have experienced recruitment challenges and 24% (17 respondents) indicated that they have experienced retention challenges. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 15 Figure 26: Recruitment and retention challenges Recruitment challenges Retention challenges 38% 24% 0% 10% 20% 30% 40% 50% Note: # of respondents varies When asked what efforts their business has undertaken to retain employees, 27 businesses responded. The most frequent response was benefits (41% or 11 respondents), followed by treating employees well (37% or 10 respondents). Bonuses (19% or 5 respondents) and flex time for staff (15% or 4 respondents) were also frequently cited. Figure 27: Key words and responses in respondents' discussion of retention efforts “developed employee package.” “Medical plan, family environment, flexible working conditions.” “Bonus structure, staff parties, provision of food, marketing of services to grow business.” “Offering a living wage for the skill set required.” When asked what efforts businesses have undertaken to recruit employees, efforts that emerged most often were advertising (29% or 6 respondents) and word of mouth (14% or 3 respondents). Respondents also cited using a wide variety of other means, including using recruitment firms, raising wages, job fairs, using the internet and Canada Job Bank. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 16 Figure 28: Recruitment Activities Advertising 29% Word of mouth 14% Recruiting Firms 10% Raised Wages 10% Job Fairs 10% Internet 10% Canada Job Bank 10% Training 5% Benefits 5% 0% 5% 10% 15% 20% 25% 30% Note: 21 respondents Of the 28 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include the hospitality service industry (11% or 3 respondents) and administrative/clerical (11% or 3 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 29: Current recruitment areas Other 78% Hospitality Service 11% Administrative/Clerical 11% Healthcare Professionals 7% Food/Beverage Service 7% Professional/Technical 4% Mechanics 4% Maintenance 4% Construction/Contractors 4% 0% 20% 40% 60% 80% 100% Note: 27 respondents 55% of respondents (39 businesses) anticipate future recruitment difficulties. The most commonly anticipated recruitment areas which may prove challenging include hospitality service (10% or 3 respondents), food/beverage service and administrative/clerical (7% or 2 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 17 respectively). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 30: Future areas where recruitment may be challenging Other 73% Hospitality Service 10% Food/Beverage Service 7% Administrative/Clerical 7% Sales/Service 3% Mechanics 3% Maintenance 3% Healthcare Professionals 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 30 respondents 63% of respondents (31 respondents) indicated that they believed that there were strategies that could be undertaken to address employee recruitment. 28% (5 respondents) believed that better job advertising could be effective, while 22% (4 respondents) suggested help with the foreign worker program and another 11% (2 respondents) suggested supporting affordable housing. Figure 31: Strategies to overcome employee recruitment challenges No 63% Yes 37% 0% 10% 20% 30% 40% 50% 60% 70% Note: 49 respondents Skills and Training The majority of respondents (41%) indicated that over half of their workforce is comprised of skilled or professional workers, 22% indicated that their workforce is mainly semi-skilled workers, and 17% indicated that entry-level workers make up the majority of their workforce. Figure 32: Skill level of majority of workforce Entry-level 17% Semi-skilled 22% Skilled/Professional 41% 0% 10% 20% 30% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 40% 50% 18 Note: # of respondents varies 52% (37 businesses) indicated that there is a training budget to upgrade employee skills. 79% (57 businesses) indicated that their company offers in-house training and 24% (17 businesses) use contracted training. Figure 33: Training Budget 76% No 21% 48% contracted training in-house training 24% Yes training budget 79% 52% 0% 20% 40% 60% 80% 100% Note: # of respondents varies 56% of respondents (40 businesses) indicated that they were aware of trends, technologies, and other significant changes that will be occurring in their industry that will require new skills. Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills No 44% Yes 56% 0% 10% 20% 30% 40% 50% 60% Note: 72 respondents 67% or 48 respondents indicated that there are areas of training or professional development that would be of benefit. Most commonly listed among these areas were sales/marketing skills (20% or 9 businesses), business management (16% or 7 businesses), and customer service (14% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 19 Figure 35: Training or professional development needs Sales/Marketing 20% Business management 16% Customer service 14% Safety/First Aid/Food Safe 11% Social media 9% Technical training 5% Team building 2% Project management 2% Managerial training 2% Leadership training 2% Grant writing 2% General sales course\nDealing with… 2% Emerging technologies 2% Athletic therapy 2% Ambassador training 2% Accounting/Bookeeping 2% 0% 5% 10% 15% 20% 25% Note: 44 respondents When asked what new training might need to be considered in the next five years, the most commonly cited response was in the area of computer skills (33% or 14 businesses), emerging industry practices (17% or 7 businesses), and social media (10% or 4 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 20 Figure 36: Areas for new Training in next five years Computer and technology training 33% Emerging industry practices 17% Social Media 10% Building Certification 7% Emerging Technologies 5% Survival training 2% Sales 2% Safety 2% Robotics 2% Professional development 2% Marketing 2% Internet and online sales. Paypal. Social Media 2% Government regulations 2% Energy conservation 2% Emerging technologies 2% Emerging Nursing Practices 2% Customer service 2% 0% 5% 10% 15% 20% 25% 30% 35% Note: 42 respondents 63% of respondents (40 businesses) stated that they prefer training when it is delivered through a classroom setting, while 53% (34 businesses) preferred an online/webinar format, and 50% had a preferenced for individual coaching (32 businesses). Figure 37: Preferred modes of training Other 13% Classroom 63% Online/ Webinar training 53% Individual coaching 50% 0% 10% 20% 30% 40% 50% 60% 70% Note: 64 respondents 48% of respondents (31 businesses) typically seek training opportunities that are offered locally, and 31% (20 businesses) travel to other areas in the province for their training or within the region Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 21 (30% or 19 businesses). Fewer training opportunities are sought elsewhere in the country or in the United States. Figure 38: Usual training locations Local British Columbia Regional Rest of Canada United States 48% 31% 30% 23% 11% 0% 10% 20% 30% 40% 50% 60% Note: 64 respondents Unions 2 businesses (3%) surveyed reported that they have union status. Employees The most frequently cited critical issues for employees are the cost of living (92% or 65 businesses) and housing (77% or 55 businesses). Child Care (51% or 36 businesses) and Transportation (30% or 21 businesses) issues were also cited. For a list of factors included in the “other” category charted below, refer to Appendix A. Figure 39: Critical considerations for employees Other Cost of living Housing Child care Transportation 28% 92% 77% 51% 30% 0% 20% 40% 60% 80% 100% Note: 71 respondents 92% of businesses (66 businesses) interviewed reported that over 75% of their employees live within the community, 7% (1 business) indicated that 75% of the employees live elsewhere in the region, and 33% (2 businesses) indicated that over 50% of their workforce lives outside of the region. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 22 SALES Market Size and Share The highest number of respondents (12 businesses or 33%) reported annual sales between $1 million and $4.9 million. The second highest number of respondents (9 businesses or 25%) reported annual sales of between $100,000 and $499,000. Figure 40: Annual sales $19.9 million to 10 million $9.9 million to 5 million $4.9 million to 1 million $999,999 to $500,000 499,999 to $100,000 $99,999 to $50,000 $49,999 to $25,000 Under $25,000 3% 3% 33% 19% 25% 8% 3% 6% 0% 5% 10% 15% 20% 25% 30% 35% Note: 36 respondents6 Half of businesses interviewed (50% or 37 businesses) indicated that the size of the market for their product or service is stable. Another 47% (35 businesses), reported that the market is increasing. Figure 41: Status of market for product/service Increasing Decreasing Stable 47% 3% 50% 0% 10% 20% 30% 40% 50% 60% Note: 74 respondents 48% (29 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is increasing, while 42% (25 businesses) indicated that it is stable. A small number of respondents (10% or 6 businesses) indicated that their market share is decreasing. 6 Note: question was optional for respondents. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 23 Figure 42: Market Share in Comparison to Competitors Increasing Decreasing Stable 48% 10% 42% 0% 10% 20% 30% 40% 50% 60% Note: 60 respondents Growth 43% of respondents (29 businesses) expect to see low growth in sales in the realm of 1 – 9%. Moderate growth in sales of 10-24% over the next year is projected by 34% of respondents (23 businesses). A combined 7% (total of 5 businesses) expect strong sales growth of over 25%. 13% (9 businesses) of respondents expect their sales to remain stagnant, while a further 1% (1 business) expect sales to decline. Figure 43: Projected sales growth in the next year Over 100% 1% 25 - 49% 6% 10 - 24% 34% 1 - 9% 43% 0% 13% Declining 1% 0% 10% 20% 30% 40% 50% Note: 67 respondents The majority of responses (53% or 38 businesses) indicated that sales at their business have increased over time, 32% (23 businesses) indicated that sales have remained relatively stable, and 11% (8 businesses) reported that sales have declined. 21% or 9 businesses reported that sales at their parent company have historically increased, 2% (1 business) reported that they have stayed the same,and 2% (1 business) reported a decline. It is worth noting there was a high non response/not applicable response to this question. Data indicates that the sales trend within respondents’ respective industries has more closely followed the sales trend reported at the location rather than the parent company. 39% of respondents (24 businesses) reported that sales within their industry have been staying the same, while 33% (20 businesses) reported that they have been increasing, and an additional 16% (10 businesses) indicated sales in their industry are declining. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 24 Figure 44: Historic sales trend 11% Not applicable 74% 4% 33% Increasing 21% 53% within the industry at the parent company 39% Staying the same 2% At this business 32% 16% Declining 2% 11% 0% 20% 40% 60% 80% Note: # of respondents varies Export Sales Of the 10 businesses that reported exporting to international markets, 17% (8 businesses) indicated that their export sales have stayed the same, 4% (2 businesses) indicated that they have been stable, and none reported any decline in sales. Figure 45: Export sales Not applicable 79% Increasing 4% Staying the same Declining 17% 0% 0% 20% 40% 60% 80% 100% Note: 47 respondents Source of Sales The customer base among Fernie businesses appears to have a diverse customer base, with the largest percentage of respondents (44% or 20 businesses) indicating that 1 – 9% of their sales are generated by their top three customers. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 25 Figure 46: Sales generated by top three customers 76 - 100% 7% 51 - 75% 4% 26 - 50% 22% 10 - 25% 22% 1 - 9% 44% 0% 10% 20% 30% 40% 50% Note: 45 respondents A majority of respondents (71%) indicated that over 50% of their sales are to customers within the local community or region. 4% indicated that over 50% of their sales are within the province and 12% indicated the majority of sales to a national market. There were no respondents that reported that the majority of their sales to the U.S. or to international markets. Additionally, when asked whether they supply products or services to any company in the community, 68% (50 respondents) indicated that they did. Figure 47: Geographic source of majority of sales International United States National Provincial Local 0% 0% 12% 4% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: # of respondents varies Just 2 respondents (3%) indicated that they import goods or services from other countries and 5 respondents (8%) indicated that they export goods or services to other countries. 92% of respondents did not find the question applied to them, or responded that they had no international trade status. Figure 48: International trade status Not applicable None Export Import 70% 22% 8% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 64 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 26 Procurement Figure 49: Engagement with government procurement processes Yes 22% Only 22% (15 respondents) indicated that they engage in government procurement (i.e., providing products or services to governments and public-sector organizations). No 78% Note: 69 respondents 51% of respondents (22 businesses) interviewed reported that they purchase a majority of their supplies from national sources.44% (19 businesses) indicated that the majority of their supplies come from businesses located within the local area. Figure 50: Geographic source of majority of supplies International United States National Provincial Local 5% 9% 51% 28% 44% 0% 10% 20% 30% 40% 50% 60% Note: # of respondents varies Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the most common response (78% or 43 businesses) indicated that the products they need are not available locally. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 27 Figure 51: Reason for out-of-area purchasing Other 11% Product not available here 78% Higher costs locally 11% Unaware of local venders 9% Quality of available products 9% No control - head office decision 9% Loyalty to current supplier 7% No applicable to this business 4% 0% 20% 40% 60% 80% 100% Note: 55 respondents The most commonly referenced products that businesses stated they would like to source from a local supplier include meats, dairy, fruits, vegetables, and grains. FACILITIES AND EQUIPMENT Size and Condition 47% (31 businesses) of respondents reported that their facility is between 1,000 square feet and 4,999 square feet in size, and another 27% (18 businesses) indicated it was less than 1,000 square feet. Figure 52: Size of facility 20,000 sq ft or more 10,000-19,999 sq ft 5,000-9,999 sq ft 1,000-4,999 sq ft less than 1,000 sq ft 12% 6% 8% 47% 27% 0% 10% 20% 30% 40% 50% Note: 66 respondents 37% of respondents (26 businesses) indicated that their facility is in excellent condition. Another 34% (24 businesses) indicated that it is in good condition and 23% (16 businesses) reported that their facility is in fair condition. 6% (4 businesses) reported that their facility is in poor condition. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 28 Figure 53: Condition of facility Poor 6% Fair 23% Good 34% Excellent 37% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 70 respondents 60% (40 businesses) of respondents indicated that their equipment is in good condition. 31% (21 businesses) indicated that it is in excellent condition, 7% (5 businesses) report their equipment is in fair condition, and just 1% (1 business) is in poor condition. Figure 54: Condition of equipment Poor 1% Fair 7% Good 60% Excellent 31% 0% 10% 20% 30% 40% 50% 60% 70% Note: 67 respondents Ownership Figure 55: Ownership status of facility Owned, 38% 62% of respondents (45 businesses) lease the facility in which they operate and 38% (28 businesses) own it. Note: 73 respondents Leased, 62% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 29 Of the 45 businesses that lease their facility, and provided a response to the question, 39% have less than 1 year remaining on their lease and another 30% have between 1 and 2 years remaining. The majority of respondents that lease their facility (81% or 34 businesses) intend to renew their current lease agreement. Figure 56: Length of time remaining on lease >5 Years 17% 3-5 Years 13% 1-2 Years 30% <1 Year 39% 0% 10% 20% 30% 40% 50% Note: 23 respondents Figure 57: Ownership preference Lease, 35% Own, 65% 65% of respondents (35 businesses) would prefer to own their facility. Note: 54 respondents Investment and Expansion 57% of respondents (30 businesses) indicated that their company’s investment in their facility has stayed the same over the past 18 months, while 38% (20 businesses) indicated that the investment has increased. Only three businesses (6%) indicated that investment in their facility has decreased over the same time period. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 30 Figure 58: Historical Investment in facility (past 18 months) Increasing Staying the same Declining 38% 57% 6% 0% 10% 20% 30% 40% 50% 60% Note: 53 respondents 54% of respondents (38 businesses) indicated that there was not room for expansion at their site, and 37% (26 businesses) indicated that there was room at their site. Figure 59: Room for expansion Maybe 9% No 54% Yes 37% 0% 10% 20% 30% 40% 50% 60% Note: 70 respondents Figure 60: Plans to expand within three years No, 51% Yes, 49% 49% of respondents (35 businesses) plan to expand within three years, however 51% (36 businesses) do not. Additionally, 40% (20 businesses) plan to expand in the next 12 – 18 months. Note: 71 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 31 Figure 61: Adequacy of current site to support expansion Of the 35 businesses planning expansion within the next three years, 46% (12 businesses) reported that their current site will be adequate. Notably however, 14 businesses (54%) reported that they will have to look for a new site to meet their planned expansion needs. Yes, 46% No, 54% Note: 26 respondents The vast majority of respondents (85% or 28 businesses) indicated that expansion will occur within the community. Figure 62: Expansion to occur in community No Yes 15% 85% 0% 20% 40% 60% 80% 100% Note: 33 respondents The total investment anticipated for the planned expansion plans ranges substantially. 32% (6 businesses) anticipate investing less than $25,000, and an additional 26% (5 businesses) are planning larger investments in the range of $100,000 to $499,999, with 21% (4 businesses) planning investments between $1 – $4.9 million. Figure 63: Estimated expansion investment $10-19.9 million 5% $1-$4.9 million 21% $100,000-$499,999 26% $25,000-$99,999 16% Less than $25,000 32% 0% 5% 10% 15% 20% 25% 30% 35% Note: 19 respondents Of the 35 businesses planning expansion, 42% (5 businesses) responded to state that they expect to spend under 50% of their expansion budget on equipment and technology, while 42% (5 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 32 businesses) responded to indicate that 50% - 99% of their expansion budget will be devoted to equipment and technology. Figure 64: Component of expansion budget for equipment and technology 100% 17% 50 to 99% 42% Under 50% 42% 0% 10% 20% 30% 40% 50% Note: 12 respondents 4 respondents (50% of businesses) expect to spend 50 - 99% of their expansion budget on real estate, while another 25% (2 businesses) expect to spend under 50%. Figure 65: Component of expansion budget for real estate 100% 50 to 99% Under 50% 0% 13% 50% 25% 13% 0% 10% 20% 30% 40% 50% 60% Note: 8 respondents 46% (6 respondents) of businesses indicated that expansion plans will be between 1,000 and 4,999 square feet. 31% (4 respondents) of businesses anticipated an expansion of less than 1,000 square feet, while just two respondents (15%) expected an expansion of between 5,000 and 9,999 square feet, and 1 respondent (8%) expects an expansion of 20,000 sq.ft or more. Figure 66: Size of facility expansion 20,000 sq ft or more 8% 5,000-9,999 sq ft 15% 1,000 to 4,999 sq ft 46% Less than 1,000 sq ft 31% 0% 10% 20% 30% 40% 50% Note: 13 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 33 Facility Upgrades Figure 67: Recent facility upgrades No 41% 59% of businesses (41 businesses) indicated that there had been recent facility upgrades. Of those 41 businesses, 33% (13 businesses) indicated that those upgrades were completed in the last 12 months. Yes 59% Note: 70 respondents Figure 68: Planning facility upgrades 34% (23 businesses) indicated that they are planning facility upgrades, and that the majority (48% or 11 businesses) of those planning upgrades will occur in the next 12 months. Yes 34% No 66% Note: 67 respondents Respondents were also asked to identify any barriers to upgrading. The most frequently cited barrier was space (33% or 4 businesses). Other factors cited include ownership, change in ownership, business capacity, and the sale of the building. Figure 69: Barriers to upgrading None Space Ownership Change in ownership Business capacity Building is for sale 25% 33% 17% 8% 8% 8% 0% 5% 10% 15% 20% 25% 30% 35% Note: 12 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 34 Respondents cited a variety of factors that act as constraints to their expansion. The most common of those were lack of skilled staff (50% or 13 businesses), lack of suitable premises (42% or 11 businesses), and finance (31% or 8 businesses). Figure 70: Barriers to expansion Note: 26 respondents Just 31% of respondents (10 businesses) indicated that they have sought assistance with their expansion efforts from an external organization. Of those businesses, the highest numbers had approached the local council (40% or 4 businesses), Community Futures (10% or 1 businesses), and the local Chamber of Commerce (10% or 1 businesses). Figure 71: Organizations approached for expansion assistance Other 70% Local Council 40% Community Futures 10% Chamber of Commerce 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 10 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 35 Energy Efficiency Figure 72: Considering energy efficiency in expansion plans No 40% 60% of those who responded (26 businesses) are considering energy efficiency in their expansion plans. Yes 60% Note: 43 respondents Figure 73: Awareness of BC Hydro Power Smart 63% of respondents (43 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. No, 37% Yes, 63% Note: 68 respondents GOVERNMENT SERVICES Respondents were asked to rate a list of government services as poor, fair, good, or excellent. Respondents also had the option to rate a service as not applicable to their business.     The services that received the highest number of POOR ratings were availability of buildings for lease or purchase (32% or 23 businesses), availability of appropriately zoned land (20% or 13 businesses), availability of rail transport facilities (17% or 13 businesses), and access to airport facilities (17% or 13 businesses). The services that received the highest number of FAIR ratings were access to suppliers (39% or 29 businesses), availability of road transport services (31% or 23 businesses), and access to airport facilities (28% or 21 businesses). The services that received the highest number of GOOD ratings were water and sewerage supply (73% or 53 businesses), access to highway/roads (69% or 52 businesses), and access to US border (66% or 49 businesses). The services that received the highest number of EXCELLENT ratings were access to US border (24% or 18 businesses), access to highway/roads (23% or 17 businesses), and telecommunications (17% or 13 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 36  The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (85% or 61 businesses), availability of rail transport, (79% or 55 businesses) and the availability of warehousing (63% or 44 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 37 Figure 74: Rating of government services Availability of warehousing 0% 16% 7% 14% 11% Availability of road transport services 9% 0% Availability of rail transport 1% 1% 1% 17% Availability of buildings for lease or purchase 1% Availability of appropriately zoned land 3% % Excellent % Good 42% 39% 8% 5% % Fair % Poor 9% 20% 7% 11% 53% 23% 4% 0% 4% % Not Applicable 69% 4% 33% 28% 17% 17% Access to airport facilities Access to Port Facilities 79% 26% 19% 32% 22% 5% Access to markets Access to US Border 49% 31% 32% 12% 20% 33% Access to suppliers Access to highway/ roads 63% 24% 0% 0% 9% 1% 3% 0% 11% 0% 50% 66% 85% 100% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 38 5% Water and sewerage supply 73% 15% 3% 4% 17% Telecommunica tions (internet, cell) 61% 12% 8% 1% 15% Recycling 57% 19% 9% 0% % Good % Fair 8% Inspections /licensing 57% 13% 4% 18% 10% Disposal of waste material % Excellent 14% 14% 11% % Poor % Not Applicable 51% 0% Development approval process 19% 25% 11% 44% 0% 50% 100% Note: # of respondents varies When asked whether there were any suggestions on how to improve any of the services and infrastructure, 56% respondents (31 businesses) indicated they had suggestions. The highest number of responses (17% or 5 businesses) discussed changes to land use/zoning, along with improvements to recycling and waste management (13% or 4 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 39 Figure 75: Key words and responses in respondents' suggestions for improvements to government services “Make recycling program more like Banff.” “Government having the staff do their job (Planning and building inspection seems understaffed).” “Incentives on commercial real estate development.” “City to sort out more building zoning space. Find more inventory of bldgs capable of facilitating retail and practitioner/rehabilitation space. Purchasing a building is prohibitive because of all the upgrades required with ownership change.” Airport Service The Calgary International Airport is the most used airport, with 67% of respondents (37 businesses) indicating they use that airport. The Canadian Rockies International Airport (Cranbrook) was the second most used with 56% (31 businesses). Figure 76: Airport service used None 5% Calgary 67% Cranbrook 56% Kalispell 18% Spokane 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 55 respondents Respondents indicated that they would most like a shuttle service (20% or 7 businesses) and more flights (17% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 40 Figure 77: New services at local airport Shuttle service 20% More flights 17% More destinations 9% More Airlines 9% Food service 9% Lower fares 6% Scheduled flights 3% Parking 3% Local Service 3% Larger aircraft 3% International flights 3% Air shuttle to Vancouver 3% 0% 5% 10% 15% 20% 25% Note: 35 respondents BUSINESS CLIMATE Quality of Business Climate The majority of responses rated the overall business climate as good (59% or 43 businesses). Figure 78: Rating of local business climate Poor Fair Good Excellent 1% 36% 59% 4% 0% 10% 20% 30% 40% 50% 60% 70% Note: 73 respondents Respondents rated the quality of a list of specific business climate factors as either poor, fair, good, excellent, or not applicable to their business.   The factors that received the highest number of POOR ratings included housing (33% or 25 businesses), technical training (20% or 15 businesses), and workforce availability (21% or 16 businesses). The factors that received the highest number of FAIR ratings included workforce availability (41% or 31 businesses), economic development (40% or 30 businesses), housing (37% or 28 businesses), and workforce stability (37% or 28 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 41    The factors that received the highest number of GOOD ratings included K-12 education (53% or 39 businesses, tourism services (52% and 39 businesses), and cultural/recreational amenities (52% or 39 businesses). The factors that received the highest number of EXCELLENT ratings included chamber of commerce (39% or 29 businesses), cultural and recreational amenities (31% or 23 businesses), and tourism services (31% or 23 businesses). The factors that received the highest number of NO OPINION ratings include Community Futures (64% or 43 businesses) and Technical Training (41% or 30 businesses). Figure 79: Rating of business climate factors 3% Local Tax Structure 11% 20% 34% 32% 1% Local Government 44% 36% 10% 10% 11% K-12 education 53% 4% 3% 30% 4% 25% Housing 37% 33% 0% % Excellent 0% Cultural/Recreational Amenities % Good 28% Economic Development 40% 16% 16% % Poor 31% 5% 0% Community Futures 1% 1% 24% 64% 1% Colleges/Universities 8% 24% 41% 25% 39% Chamber of Commerce % No Opinion 52% 12% 9% % Fair 8% 49% 0% 4% 0% 20% 40% 60% 80% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 42 1% Workforce Stability 36% 37% 21% 4% 9% Workforce Quality 4% 43% 35% 8% % Excellent 4% % Good 33% Workforce Availability 41% 17% 4% % Poor 31% Tourism services 1% 4% 1% 0% 10% 20% 30% % No Opinion 52% 12% 22% 16% 20% Technical Training % Fair 41% 40% 50% 60% Note: # of respondents varies 56% of respondents (40 businesses) felt that the business climate is better today than it was 5 years ago. 21% (15 businesses) thought that it is worse, and 14% (10 businesses) believed there was no change in the business climate. The main reasons given from those who believe the business climate is worse is the declining economy (40% or 6 respondents) and declining market (40% or 6 respondents). Figure 80: Business climate today vs. 5 years ago No opinion Worse today No change Better today 10% 21% 14% 56% 0% 10% 20% 30% 40% 50% 60% Note: 72 respondents 61% of respondents (42 businesses) expect that the business climate will be better 5 years from today. 10% (7 businesses) expect that it will be worse. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 43 Figure 81: Business climate 5 years from today No opinion 6% Will be worse 10% No change 23% Will be better 61% 0% 10% 20% 30% 40% 50% 60% 70% Note: 69 respondents Strengths and Weaknesses of Business Climate 86 responses were provided when respondents were asked to list the community’s strengths as a place to do business, the highest number of responses (39% or 29 responses) cited the supportive community as the community’s primary strength. 16% (12 businesses) indicated the tourism and 16% (12 businesses) indicated the lifestyle. Figure 82: Community’s strengths as a place to do business Supportive community Tourism Lifestyle Recreational opportunities Location Diversified economy Natural attractions Friendliness Customer service Customer loyalty Affluent residents Word of mouth Vibrant downtown Stable economy Social network Outdoor activities Natural beauty Industry diversity Great place to live 39% 16% 16% 5% 5% 5% 4% 4% 4% 3% 3% 1% 1% 1% 1% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Note: 74 respondents Respondents were asked to list the community’s weaknesses as a place to do business. The highest number of responses (14% or 10 respondents) was received for the seasonality of the Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 44 community. The low population was cited by 10% of respondents (7 businesses) as was the dependency on one major industry. Figure 83: Community's weaknesses as a place to do business Seasonality Low population Dependent on one major industry High cost of living Lack of skilled workforce Geographic isolation Resistance to change Lack of amenities Cost of doing business Inaccessible government services Available space Planning and development process Lack of support for local businesses Transient population Too dependent on tourism Small market Shipping and Receiving costs Population (size/growth/aging) Poor customer service Lack of suppliers High business taxes Development Constraints… Cross border shopping (US/Alberta) 0% 14% 10% 10% 8% 7% 7% 5% 5% 5% 4% 4% 3% 3% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2% 4% 6% 8% 10% 12% 14% 16% Note: 73 respondents Business Growth 79% of respondents (58 businesses) indicated that there are barriers to growth. The highest number of respondents (16% or 9 businesses) stated that the geographic constraint is an important barrier to growing the community’s economy. Other commonly cited barriers include the low population (12% or 7 businesses), low economic diversification (10% or 6 businesses), and the development approval process (10% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 45 Figure 84: Barriers to growth in the community Geographic constraints 16% Low population 12% Low economic diversification 10% Developmental approval process 10% Skilled labour 7% Cost of doing business 7% Small market 5% Seasonality 5% Competition 5% Availability of land 5% Transportation 3% Resistance to change 3% Cost of living 3% Shipping costs 2% Population (size / growth / age) 2% Affordable housing 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Note: 58 respondents The following excerpts illustrate the barriers cited: “Population - limited number of year-round habitants.” “Space, land availability, suitable land.” “Cost of real estate, lack of affordable housing, reliance on Alberta money.” Respondents were asked about the level of support they received from various business support providers. The Economic Development Organisation/Commission the highest Poor response (8% or 4 businesses). The Chamber of Commerce was cited as providing an excellent level of service by 45% of respondents (31 businesses) and a good level of service by 39% of respondents (27 businesses). Respondents found the Community Futures (2% or 1 business) and Continuing Education and Workforce Training (2% or 1 businesses) as most commonly unable to assist. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 46 Figure 85: Level of service from business support providers Scientific Research and Experimental Development Tax Incentive Program National Research Council Industrial Research Assistance Kootenay Aboriginal Business Advocates Society Invest Kootenay 0% 2% 0% 0% 0% 98% 0% 4% 2% 2% 0% 93% 0% 8% 2% 0% 0% 0% 13% 0% 0% 0% Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 5% 8% 2% 2% 0% Economic Development Organization / Commission 2% 4% 4% 8% 0% 5% 9% 2% 2% Continuing Education and Workforce Training 3% 2% 2% Community Futures Chamber of Commerce Basin Business Advisors 90% % Excellent % Good 84% % Fair % Poor % Unable to assist 83% % Not Applicable 29% 53% 13% 15% 9% 3% 0% 4% 11% 8% 3% 2% 0% 0% 87% 66% 45% 39% 76% 20% 40% 60% 80% 100% 120% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 47 32% of respondents (23 businesses) indicated that there are suppliers that could locate in the region. Retail stores, Coffee equipment/services, and building supplies was most commonly cited by 14% of respondents (2 businesses). Figure 86: Potential Suppliers Retail stores 14% Coffee equipment /services 14% Building supplies 14% Technology companies 7% Office supplies 7% Meats & Dairy / Fruits and Vegetables / Grains 7% Local artisans 7% Design Services 7% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 14 respondents When asked what business, sector, or industry could be attracted to most strategically benefit the industry, the most common response was tourism (17% or 8 respondents), educational services (11% or 5 businesses), and construction (11% or 5 businesses). Figure 87: Sectors, businesses or industries that could be attracted to region Tourism Educational services Construction Transportation Retail Stores Creative businesses Conference Centre Technology businesses Recreational services Manufacturing Senior Services Information Technology Health and Wellness Food businesses 17% 11% 11% 6% 6% 6% 6% 4% 4% 4% 2% 2% 2% 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 48 Business Competitiveness and Productivity Businesses were asked to consider the importance of various factors for ensuring business competitiveness over the next five years. Those factors that received the highest number of somewhat important or very important ratings include availability of telecommunications infrastructure and services (99% or 70 businesses) and improvement of customer service (93% or 67 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 49 Figure 88: Importance of business competitiveness factors Workplace health and safety 14% 4% Workforce skill development 6% 4% Water/sewer costs 0% Reliable air transportation 31% 17% 85% 52% 15% 6% 1% New market development locally 15% 4% Improving worker productivity 8% 4% Improvement of customer services 7% 0% Improvement business management 7% 1% Expansion of workforce employees 6% Energy costs 68% 15% New market development outside of region Exchange rate for Canadian dollar 61% 31% 20% 13% Strategic alliances (joining with other businesses to… New product research and development 90% 8% Water/sewer availability 82% 23% 79% 76% 81% 88% % Somewhat important, very important 93% % Not important at all or not very important 91% 22% 72% 85% 11% 4% 18% 7% 75% Availability of 1% telecommunications… 0% 99% Affordable shipping/freight 11% 6% Add or change in business, products or services 12% 1% Accessing capital Access to exporting and international markets 3% % Not applicable 83% 87% 21% 76% 32% 30% 38% 0% 20% 40% 60% 80%100%120% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 50 When asked to rate their business’ performance on a list of productivity drivers, the drivers that received the highest number of:     EXCELLENT ratings include productive workplace culture (41% or 29 businesses) and organising work (structures and processes) (26% or 18 businesses); GOOD ratings include networking and collaboration with other businesses (62% or 44 businesses), leadership and management (61% or 43 businesses), and organising work (structures and processes) (57% or 40 businesses); FAIR ratings measuring impact of productivity efforts/investments (26% or 18 businesses); POOR ratings include measuring impact of productivity efforts/investments (13% or 9 businesses). Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 51 Figure 89: Performance on key productivity drivers Productive workplace culture 41% 51% 6% 0% 3% 26% Organizing work (structures & processes) 57% 16% 0% 1% 13% Networking and collaboration with other businesses 62% 17% 4% 4% % Excellent 6% Measuring impact of productivity efforts/ investments % Good 43% 26% % Fair 13% 12% % Poor % Not Applicable 24% 61% Leadership and management capacity 11% 1% 3% 25% 55% Investing in people and skills 15% 3% 1% 23% 51% Innovation & the use of technology 20% 4% 3% 0% 20% 40% 60% 80% Note:# of respondents varies Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (93% or 64 businesses), relocation of people from urban centres (28% or 19 businesses), culture and creative businesses (23% or 16 businesses), construction businesses (23% or 16 businesses), and arts (23% or 16 businesses). For a list of drivers identified as “other”, refer to Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 52 Figure 90: Economic drivers with greatest growth potential Other 62% Tourism 93% Relocation of people from urban centres 28% culture and creative businesses 23% Construction 23% Arts 23% Health & wellness 20% Technology-based businesses 19% Forestry 19% Other niche service businesses (e.g. services to seniors) 12% Green or environmental businesses 10% Education 10% Agriculture 4% Manufacturing 3% Government 3% Finance 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Note: 69 respondents Proximity to Alberta 57 respondents (86%) reported that they were impacted by their proximity to Alberta. The positive impact of Alberta tourists was the most significantly noted by 38% of respondents (21 businesses), while 31% (17 businesses) indicated a similar positive impact of customers from Alberta. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 53 Figure 91: Impact of Proximity to Alberta Positive - Alberta tourists 38% Positive - Alberta customers 31% Negative - Loss of sales to Alberta 18% Negative - Alberta competition 11% 0% 10% 20% 30% 40% 50% Note: 55 respondents ASSESSMENT AND PLANS Overall Health The majority of businesses surveyed reported that their facility is in overall good health (52% or 25 businesses), 33% (16 businesses) reported that their facility’s health is excellent, and 13% (6 business) reported that it is fair. 2% (1 business) of respondents indicated that their company is in poor health. Figure 92: Facility’s overall health Poor Fair Good Excellent 2% 13% 52% 33% 0% 10% 20% 30% 40% 50% 60% Note: 48 respondents Most businesses with a parent company indicated that the health of that parent company is excellent (17% or 7 businesses). Figure 93: Overall health of parent company Not applicable 80% Good 2% Excellent 17% 0% 20% 40% 60% 80% 100% Note: 41 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 54 Attitude toward Community 61% of respondents (28 businesses) indicated that their local management’s attitude toward the community is excellent and 33% (15 businesses) indicated that it is good. Figure 94: Local management's attitude toward community Fair Good Excellent 7% 33% 61% 0% 10% 20% 30% 40% 50% 60% 70% Note: 46 respondents Respondents indicated that their parent company’s attitude toward the local community is either excellent (12% or 5 businesses) or good (7% or 3 businesses). Figure 95: Parent company's attitude toward local community Not applicable Good Excellent 81% 7% 12% 0% 20% 40% 60% 80% 100% Note: 42 respondents Risk of Closing or Downsizing Data indicates that the risk of Fernie businesses closing is low. None of the respondents reported that they are at a high risk of closing in the next 1-3 years, and just 12% (6 businesses) indicated they were at a moderate risk. Figure 96: Risk of facility closing Low 88% Moderate 12% 0% 20% 40% 60% 80% 100% Note: 50 respondents Similarly, the data indicates that the risk of downsizing is low, with just 2% (1 business) indicating that the risk is high. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 55 Figure 97: Risk of facility downsizing Low Moderate High 85% 13% 2% 0% 20% 40% 60% 80% 100% Note: 48 respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 56 RECOMMENDATIONS NEXT STEPS The results of this survey can be used by economic development organizations in the City of Fernie and area to inform short- and long-term business retention and expansion action planning. Many BRE programs ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success, and momentum to carry out long-term actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. BRE results can form the backbone of a community’s economic development strategy and, in some cases they are integrated into the community’s Official Community Plan (OCP). Some communities form committees or action groups around the themes or action areas identified in the BRE report to ensure success in implementation. The following steps could further and support links to planning and action: 1. Continually communicate (through press, presentations, electronic media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Establish a task force or committee to continue building on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include follow-up discussions with individual businesses, particularly to address red and green-flags. Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues, and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans and develop relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring program to assess the impact of implementation efforts. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 57 POTENTIAL ACTION AREAS The results of this survey can be used to inform short- and long-term planning. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate: Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,072 employees. The majority (51%) of employees are full-time, followed by 27% part-time employees. The size of the workforce appears stable and healthy, with 53% of businesses indicating that the number of employees at their business has stayed the same, and 38% indicating that the number has increased. Expected employment trends are also stable with the majority of businesses expecting the number of casual, part time, and full time employees to stay the same. The majority of businesses (88%) recruit locally. 38% of businesses indicate that they currently face recruitment challenges, 55% anticipate future difficulties, and 63% of businesses stated they believe there are strategies that could be undertaken to address employee recruitment. Additionally, 50% of respondents noted that the lack of skilled staff was posing a barrier to expansion plans. Respondents most commonly rely on advertising when recruiting, followed by word of mouth, the use of recruiting firms, raised wages, job fairs, the internet, and the Canada Job Bank. Actions that could prove helpful include: improved job advertising, assistance with the temporary foreign worker program, and supporting affordable housing. The hospitality and food/beverage service industries featured in areas of future recruitment challenges, as did the area of administrative/clerical. Targeted actions that focus on the employment that supports the tourism sector could be considered. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living, housing, and childcare. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 8% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 38% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low rate of employed youth considered essential, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting businesses with local schools and post-secondary institutions. Business Growth & Expansion 60% of businesses in the region report being in a growth cycle and 36% are maturing, and the majority of businesses are anticipating low to moderate sales growth over the next year, with 43% expecting moderate sales growth between 1 – 9% and 34% expecting 10-24% sales growth. The vast majority of businesses (71%) indicate that the majority of their sales are to local markets, indicating there may be an opportunity to expand into surrounding markets. 49% indicate that Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 58 they are planning to expand within the next three years. Less than half (46%) of those businesses planning to expand feel their existing site is adequate, and 85% indicated that expansion would occur within the community. Businesses also report that employment rates are stable, and that they anticipate continued stability over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on local business conditions. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, identifying and securing new sites if appropriate, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include the lack of skilled staff, the lack of suitable premises and financing. It is worth noting that few (31%) businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in sized and independent. The customer base for businesses appears to be diverse, with 44% of businesses indicating that just 1 - 9% of their sales are generated by their top three customers. Tailoring supports and services to small/medium sized, independent businesses that are focused on the service and tourism sectors will benefit businesses in Fernie and area. Services and supports should consider that 89% of functions provided by a business are ‘services’. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses, such as providing shared services such as payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include exploring existing supports available from the provincial Small Business BC organisation, Tourism BC, or CBT’s Basin Business Advisors Program. Supply Sourcing and Procurement The data indicates that 44% of supplies come from within the local region. The most common response (78%) for the reason why supplies are sourced outside of the local area is that they are not available locally. The ability to source local supplies of meats, dairy, fruits, vegetables, and grains were the most frequently cited by respondents. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 59 A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 52% of businesses do have a training budget and 48% indicated that training typically occurs locally. 50% of respondents indicated that the lack of skilled staff was a barrier to their expansion plans. 56% of businesses were aware of new trends, technologies and industry changes that will require new skills. Areas identified for training include sales/marketing skills, business management, customer service, and food safe/first aid/safety. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 12% of respondents indicated that they have a formal succession plan and just over half (51%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among local businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector The community of Fernie is already invested in the tourism sector with a relatively high percentage (42%) of businesses engaged in tourism related industries (20% in the ‘Retail and Wholesale Trade sector and 13% in the ‘Accommodation and Food Services’ sector, and 9% in the ‘Arts, Entertainment and Recreation’ sector). An overwhelming 93% of respondents indicated that tourism was the economic driver with the greatest growth potential. Respondents also noted that increasing the number of tourism related businesses, educational services, and construction related businesses would benefit the region. Actions to increase and support the tourism industry could include the continued collaboration between government and local tourism agencies such as Destination British Columbia, Tourism Fernie, the Fernie Chamber of Commerce, and local businesses. With most businesses expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. Government Services A recurring theme was the lack of buildings and land available for lease or purchase, with 42% of respondents indicating that the lack of suitable premises was a barrier to expansion, and 17% suggesting that changes to the land/use and zoning would improve the government services available. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 60 With 49% of businesses planning expansions over the next three years, and 54% of those indicating that their site is currently not adequate to support those plans, there is an opportunity for the local government to work with local businesses to understand existing and future business needs and assess land use planning at a micro level. Issues around the lack of available land may be addressed through communication strategies between the local government, local businesses, and the community. Opportunities may exist locally for changes to land use designations and zoning that could serve both the greater community and local businesses. Collaboration and dialogue with targeted businesses could produce valuable results and innovative solutions. Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 61 APPENDIX A: DATA TABLES COMPANY INFORMATION Figure 1: Industry Classification Agriculture, forestry, fishing and hunting Mining, quarrying, and oil and gas extraction Construction Manufacturing NAICS Percent of Question Respondents Count 11 1 1% 21 1 1% 23 31-33 8 4 11% 5% Retail and Wholesale Trade 41-45 15 20% Information and Cultural Industries 51 3 4% Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific and Technical Services Administrative Support, Waste Management and Remediation Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services Total 52 53 2 2 3% 3% 54 7 9% 56 2 3% 61 62 71 72 81 4 4 7 5% 5% 9% Survey Participants: Question Respondents: No Response Count: Response Rate: 75 75 0 100% Figure 2: Functions located at this facility Engineering/RD Distribution Warehousing Manufacturing 10 5 13% 7% 100% 75 Count Percent of Question Respondents 4 5% 5 5 10 7% 7% 14% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 62 Headquarters Services Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 3: Who are your competitors?: Where are your competitors located? Outside Canada In Province In Canada In Region Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 4: What are the factors that make your company successful here? Competitive pricing Diversified product / services Experience Lifestyle Natural resources Networking Persistence Pricing Niche market Reputation Established business Hard work Niche product Community support Word of mouth Branding 15 65 104 21% 89% 75 73 2 97% Count 2 4 13 53 72 Percent of Question Respondents 3% 6% 20% 80% 75 66 9 88% Count Percent of Question Respondents 1 1 1 1 1 1 1 1 2 2 3 3 3 4 4 5 1% 1% 1% 1% 1% 1% 1% 1% 3% 3% 4% 4% 4% 5% 5% 7% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 63 Customer Service Tourism Location Demand for products and services Workforce Quality product / service Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 5: Why did you choose this community to locate your business? Business expansion Established business Experience in the business Hobby turned into a business Connections to the community Already living here Close to family Location Born and raised here Bought an existing business Business opportunity Lifestyle Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 6: Does this company have another location elsewhere? Yes No Total 5 5 7 9 9 12 81 7% 7% 10% 12% 12% 16% 75 73 2 97% Count 1 1 1 1 4 5 5 6 8 8 16 21 77 Percent of Question Respondents 1% 1% 1% 1% 5% 7% 7% 8% 11% 11% 22% 29% 75 73 2 97% Count 18 56 74 Percent of Question Respondents 24% 76% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 64 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 7: Does this company have another location elsewhere?: If Yes, where? Outside Canada Elsewhere in nation In Province Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Response Rate: Figure 8: Location of company's headquarters Outside Canada Elsewhere in nation In Province Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 8b: Location of company's headquarters: Province WA ON AB BC Total 75 74 1 99% Count Percent of Question Respondents 5 12 13 76% 30 29% 71% 75 17 1 18 94% Count 2 7 66 75 Percent of Question Respondents 3% 9% 88% 75 75 0 100% Count 1 2 5 66 74 Percent of Question Respondents 1.35% 2.70% 6.76% 89.19% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 65 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 8c: Location of company's headquarters: Nation United Kingdom United States Canada Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 9: Life cycle stage of firm's primary product/service 75 74 1 99% Count 1 1.37% 1 1.37% 71 97.26% 73 75 73 2 97% Count Declining Emerging Growing Maturing Total 1 2 44 26 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 73 2 97% Figure 10: How long has this facility operated <1 Year 1-4 Years 5-9 Years 10-19 Years >20 Years Total Percent of Question Respondents Count 5 11 23 21 15 75 Percent of Question Respondents 1% 3% 60% 36% Percent of Question Respondents 7% 15% 31% 28% 20% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 66 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 11: What is this company's ownership status? Publicly owned Privately owned Total Survey Participants: Question Respondents: No Response Count: Response Rate: 75 75 0 100% Count 4 68 72 Percent of Question Respondents 6% 94% 75 72 3 96% Figure 11b: What is this company's legal status? Count Limited liability partnership (LLP) Partnership Non-profit Sole proprietorship Corporation Other Total 1 4 5 13 46 6 75 Percent of Question Respondents 1% 5% 7% 17% 61% 8% Survey Participants: Question Respondents: No Response Count: Response Rate: 75 75 0 100% Figure 11c: What is this company's legal status?: If Other, please specify Count Percent of Question Respondents Co-operative 1 1.33% Partnership/Corporation Total 5 6 6.67% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 67 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: 75 6 0 Parent Question Respondents: 75 6 Response Rate: 100% Figure 12: Has the local facility changed owners or managers in the past 5 years? Count Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 12b: If Yes, describe the local impact of the change 12 61 73 Percent of Question Respondents 16% 84% 75 73 2 97% Count Percent of Question Respondents Neutral Positive Total 2 8 10 20.00% 80.00% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 75 10 2 12 73 83% Figure 12c: Is an ownership change pending for this facility? Count Percent of Question Respondents Yes 7 9.46% No Total 67 74 90.54% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 68 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 13: If Yes what is the anticipated time frame 75 74 1 99% Count 1 year or less 2 years 3 years or more Total 2 2 2 6 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 75 6 1 7 74 86% Percent of Question Respondents 33% 33% 33% Count Percent of Question Respondents Sell/transfer to a family member Sell to another company Sell/transfer to a non-family member 1 2 14% 29% 2 29% Other 2 29% Total 7 Figure 14: If Yes, how do you intend to exit the business? Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 14b: If Yes, how do you intend to exit the business?: If other, please explain 75 7 0 7 74 100% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 69 Change in partnership Merger Total 1 14.29% 1 14.29% 2 Survey Participants: 75 Question Respondents: 2 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 0 Figure 15: Is there a formal succession plan? Yes No Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 15b: Have you identified a successor to your business? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 15c: If Yes, have you been assisted in preparation of a succession plan? Yes 2 7 100% Count 6 36 7 49 Percent of Question Respondents 12% 73% 14% 75 49 26 65% Count 9 44 53 Percent of Question Respondents 16.98% 83.02% 75 53 22 71% Count Percent of Question Respondents 4 100.00% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 70 Total 4 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 75 4 2 6 49 67% Figure 15d: If Yes, by whom Count Personal financial planner Accountant Other Total 1 2 1 4 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 75 5 0 4 Figure 15e: If Yes, by whom: If other, please explain Count In house School Board Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 16: Does this firm have a current written business plan? Yes No Total 1 1 2 Percent of Question Respondents 20.00% 40.00% 20.00% Percent of Question Respondents 20.00% 20.00% 75 2 0 2 5 100% Count 32 31 63 Percent of Question Respondents 51% 49% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 71 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 63 12 84% LOCAL WORKFORCE Figure 17: Total number of employees at this facility*: Total employees Less than 5 5-9 10-19 20-49 50-99 Total Count 22 22 12 17 2 75 Total employees: 1072 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 75 0 100% Figure 18: Nature of Employment Full Time Part Time Temporary Total Survey Participants: Question Respondents: Response Rate: Figure 18b: Total number of employees at this facility*: Full-time employees Less than 5 5-9 10-19 20-49 Count 551 290 231 1072 Percent of Question Respondents 29% 29% 16% 23% 3% Percent of Question Respondents 51% 27% 22% 75 75 100.00% Count 37 17 15 6 Percent of Question Respondents 49.33% 22.67% 20.00% 8.00% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 72 Total 75 Total full-time employees: 551 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 18c: Total number of employees at this facility*: Part-time employees Less than 5 5-9 10-19 20-49 Total Total part-time employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 18d: Total number of employees at this facility*: Temporary employees Less than 5 5-9 10-19 20-49 50-99 75 75 0 100% Count Percent of Question Respondents 52 13 8 2 75 69.33% 17.33% 10.67% 2.67% 290 75 75 0 100% Count Percent of Question Respondents 66 4 1 2 2 2.67% Total 75 Total temporary employees: 231 Survey Participants: Question Respondents: No Response Count: 75 75 0 88.00% 5.33% 1.33% 2.67% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 73 Response Rate: Figure 19: Historical employment trend Declining Staying the same Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20: How did the number of staff change, if at all, in the last 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20b: How did the number of staff change, if at all, in the last 3 years?: Part-time Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20c: How did the number of staff change, if 100% Count 7 39 28 74 Percent of Question Respondents 9% 53% 38% 75 74 1 99% Count 22 38 10 70 Percent of Question Respondents 31% 54% 14% 75 70 5 93% Count 21 38 2 61 Percent of Question Respondents 34% 62% 3% 75 61 14 81% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 74 at all, in the last 3 years?: Casual Increased Stayed the same Decreased Total 7 31 2 40 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 40 35 53% Figure 21: How do you expect the number of staff to change, if at all over the next 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21b: How do you expect the number of staff to change, if at all over the next 3 years?: Part-time Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21c: How do you expect the number of staff to change, if at all Count 34 37 3 74 18% 78% 5% Percent of Question Respondents 46% 50% 4% 75 74 1 99% Count 21 40 5 66 Percent of Question Respondents 32% 61% 8% 75 66 9 88% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 75 over the next 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22: Describe the majority of essential personnel at this location Less than 25 26 - 34 35 - 49 50 or older Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23: Describe the wage scale here compared to all other firms locally Lower than Same as Greater than Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23b: Average hourly wage: Skilled/Professional $10-$12.99 $13-$14.99 4 35 1 3% 40 10% 88% 75 40 35 53% Count 6 26 27 12 71 Percent of Question Respondents 8% 37% 38% 17% 75 71 4 95% Count 5 38 20 63 Percent of Question Respondents 8% 60% 32% 75 63 12 84% Count 1 3 Percent of Question Respondents 1.92% 5.77% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 76 $15-$19.99 $20-$29.99 $30-49.99 $50-$99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23c: Average hourly wage: Semi-skilled $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23d: Average hourly wage: Entry-level $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24: Is the number of unfilled positions Stable 7 22 12 2 5 52 13.46% 42.31% 23.08% 3.85% 9.62% 75 52 23 69% Count 5 9 12 12 1 3 42 Percent of Question Respondents 11.90% 21.43% 28.57% 28.57% 2.38% 7.14% 75 42 33 56% Count 18 7 8 4 1 38 Percent of Question Respondents 47.37% 18.42% 21.05% 10.53% 2.63% 75 38 37 51% Count 46 Percent of Question Respondents 82% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 77 Decreasing Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 25: Where does the company attract the majority of its workers from? Internationally Nationally Provincially Locally Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 26: Recruitment and retention challenges Retention challenges Recruitment challenges Figure 26b: Is employee retention a problem? Yes No Total 1 9 56 2% 16% 75 56 19 75% Count Percent of Question Respondents 1 2 5 61 69 1% 3% 7% 88% 75 69 6 92% Count 17 28 Count 17 54 71 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 71 4 95% Figure 26c: Is the company experiencing recruitment problems with any employee positions or skills? Count Percent 24% 38% Percent of Question Respondents 24% 76% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 78 Yes No Total 28 45 73 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 27: If applicable, please describe any challenges and / or efforts you have undertaken to retain employees. 38% 62% 75 73 2 97% Count Percent of Question Respondents Housing 2 7.41% Training Treating employees well Support a positive environment Flex Time Bonuses Fair wages 2 2 7.41% 7.41% 3 11.11% 4 5 10 14.81% 18.52% 37.04% Benefits 11 40.74% None Total 1 40 3.70% Survey Participants: 72 Question Respondents: No Response Count: 27 45 Response Rate: 38% Figure 28: If applicable, please describe any recruitment activities or strategies you have undertaken to attract employees. Benefits Training Canada Job Bank Internet Count 1 1 2 2 Percent of Question Respondents 5% 5% 10% 10% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 79 Job Fairs Raised Wages Recruiting Firms Word of mouth Advertising 2 2 2 3 6 Total 21 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 29: Is the company experiencing recruitment problems with any employee positions or skills?: If Yes, in which category(s)? Construction/Contractors 10% 10% 10% 14% 29% 72 21 51 29% Count Percent of Question Respondents 1 4% Maintenance 1 4% Mechanics Professional/Technical Food/Beverage Service Healthcare Professionals Administrative/Clerical Hospitality Service Other Total 1 1 2 2 3 3 21 35 4% 4% 7% 7% 11% 11% 78% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 75 27 1 Figure 29b: Is the company experiencing recruitment problems with any employee 28 73 96% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 80 positions or skills?: Other (specify job roles/titles) Chefs/Bakers Electricians Engineers 1 1 1 4% 4% 4% Installers 1 4% Kitchen staff 1 4% Physicians 1 4% Plumbers Sales Skilled/Professional Social Media Stylists Managers Marketing Semi-Skilled/Entry Level Total 1 1 1 1 1 2 2 8 23 4% 4% 4% 4% 4% 7% 7% 30% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: 75 22 0 Response Rate: 100% Figure 30: Do you anticipate future recruiting difficulties i.e. 3-5 year? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 21 27 Count 32 39 71 Percent of Question Respondents 45.07% 54.93% 75 71 4 95% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 81 Figure 30b: Do you anticipate future recruiting difficulties i.e. 3-5 year?: If Yes, in what area(s)? Healthcare Professionals Count Percent of Question Respondents 1 3% Maintenance 1 3% Mechanics Sales/Service Administrative/Clerical Food/Beverage Service Hospitality Service Other Total 1 1 2 2 3 22 33 3% 3% 7% 7% 10% 73% Survey Participants: 75 Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 30 2 Figure 30c: Do you anticipate future recruiting difficulties i.e. 3-5 year? : Other (specify job roles/titles) Electricians Engineers Equipment operators General laborer Installers Lawers Marketing Plumbers Truck drivers Editorial staff Managers Teachers Semi-Skilled/Entry Level Total 32 71 94% Count 1 1 1 1 1 1 1 1 1 2 2 2 6 21 Percent of Question Respondents 3.33% 3.33% 3.33% 3.33% 3.33% 3.33% 3.33% 3.33% 3.33% 6.67% 6.67% 6.67% 20.00% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 82 Survey Participants: 75 Question Respondents: 22 No Response Count: 0 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 31: Is there anything we can do to help overcome issues with employee recruitment? Yes No Total 22 30 100% Count 18 31 49 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 31b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, please explain Employee Sharing Promote the area Provide training and education Support affordable housing 37% 63% 75 49 26 65% Count Help with foreign worker program Better job advertising Total Survey Participants: Question Respondents: Percent of Question Respondents Percent of Question Respondents 1 1 5.56% 5.56% 1 5.56% 2 11.11% 4 22.22% 5 27.78% 14 75 18 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 83 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 32: Skill Level of Majority of Workforce Skilled/Professional Semi-skilled Entry-level Total Figure 32b: Percent of workforce: Skilled/Professional less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32c: Percent of workforce: Semi-skilled less than 25% 25 to 49% 50 to 74% 75 to 100% Total 0 18 49 100% Count 26 14 11 51 Count 15 15 14 20 64 Percent of Question Respondents 41% 22% 17% Percent of Question Respondents 23.44% 23.44% 21.88% 31.25% 75 64 11 85% Count 10 17 10 8 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 45 30 60% Figure 32d: Percent of workforce: Entry-level Count Percent of Question Respondents 22.22% 37.78% 22.22% 17.78% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 84 less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33: Does the company provide a training budget in order to upgrade employee's skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33b: Does the company offer in-house training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33c: Does the company use Contracted Training? Yes No Total Survey Participants: 14 12 7 6 39 35.90% 30.77% 17.95% 15.38% 75 39 36 52% Count 37 34 71 Percent of Question Respondents 52% 48% 75 71 4 95% Count 57 15 72 Percent of Question Respondents 79% 21% 75 72 3 96% Count 17 54 71 Percent of Question Respondents 24% 76% 75 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 85 Question Respondents: No Response Count: Response Rate: Figure 34: Are you aware of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 35: Are there any areas of training or professional development that would be of benefit to you or your employees? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 71 4 95% Count 40 32 72 Percent of Question Respondents 56% 44% 75 72 3 96% Count 48 24 72 Percent of Question Respondents 66.67% 33.33% 75 72 3 96% Figure 36: Are there any areas of training or professional development that would be of benefit to you or your employees?: If Yes, what are they? Count Accounting/Bookeeping 1 2% Ambassador training Athletic therapy 1 1 2% 2% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 86 Emerging technologies General sales course\nDealing with public Grant writing Leadership training Managerial training Project management Team building Technical training 1 2% 1 2% 1 1 1 1 1 2 2% 2% 2% 2% 2% 5% Social media 4 9% 5 11% 6 7 14% 16% Sales/Marketing 9 20% Total 43 Safety/First Aid/Food Safe Customer service Business management Survey Participants: Question Respondents: 75 44 No Response Count: 4 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 37: What modes of education/training work best for you? Individual coaching Online/ Webinar training Classroom Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: 48 72 92% Count 32 34 40 8 114 Percent of Question Respondents 50% 53% 63% 13% 75 64 11 85% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 87 Figure 37b: What modes of education/training work best for you?: Other Name Peer to Peer Trade shows / Conferences In-house / Hands on / Workshop Total Count 1 1.56% 1 1.56% 6 9.38% 8 Survey Participants: 75 Question Respondents: 8 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 0 Figure 38: When your staff attend training/certification, where do they usually access the training? United States Rest of Canada Regional British Columbia Local Total Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 8 64 100% Count 7 15 19 20 31 92 Percent of Question Respondents 11% 23% 30% 31% 48% 75 64 11 85% Union status Count Yes No Not applicable Total 2 59 13 74 Percent of Question Respondents 2.70% 79.73% 17.57% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 88 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 39: Please indicate which issues you believe are critical to your employees? Transportation Child care Housing Cost of living Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 39b: Please indicate which issues you believe are critical to your employees?: If Other, please list any other issues Benefits Education Flextime Healthcare 75 74 1 99% Count 21 36 55 65 20 197 Percent of Question Respondents 30% 51% 77% 92% 28% 72 71 1 99% Count Percent of Question Respondents 1 1 1 1 1.41% 1.41% 1.41% 1.41% Housing 1 1.41% Wages Total 4 9 5.63% Survey Participants: 72 Question Respondents: 20 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 0 20 71 100% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 89 In general terms, what percent of your workforce lives in the: Community (%) 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: :In general terms, what percent of your workforce lives in the: Region (%) includes entire Columbia Basin-Boundary region 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Outside of region (%) 0-24% 25-49% 50-74% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 1 2 3 66 72 Percent of Question Respondents 1.39% 2.78% 4.17% 91.67% 72 72 0 100% Count 10 2 1 1 14 Percent of Question Respondents 71.43% 14.29% 7.14% 7.14% 72 14 58 19% Count 2 2 2 6 Percent of Question Respondents 33.33% 33.33% 33.33% 72 6 66 8% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 90 SALES Count Percent of Question Respondents Under $25,000 $49,999 to $25,000 $99,999 to $50,000 499,999 to $100,000 $999,999 to $500,000 $4.9 million to 1 million $9.9 million to 5 million $19.9 million to 10 million Total 2 1 3 9 7 12 1 6% 3% 8% 25% 19% 33% 3% 1 3% Survey Participants: Question Respondents: No Response Count: Response Rate: 75 36 39 48% Figure 40: Annual sales at this facility (optional) Figure 41: Is the market for your product 36 Count Stable Decreasing Increasing Total 37 2 35 74 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 74 1 99% Percent of Question Respondents 50% 3% 47% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 91 Figure 42: Is the market share (compared to your competitors) of your company's products Count Stable Decreasing Increasing Total 25 6 29 60 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 60 15 80% Figure 43: What is the projected sales growth in the next year at this business? Count Declining 0% 1 - 9% 10 - 24% 25 - 49% Over 100% Total 1 9 29 23 4 1 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 67 8 89% Figure 44: Historical sales trend: At this business (past five years) Count Declining Staying the same Increasing Not applicable Total 8 23 38 3 72 Percent of Question Respondents 42% 10% 48% Percent of Question Respondents 1% 13% 43% 34% 6% 1% Percent of Question Respondents 11% 32% 53% 4% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 92 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 44b: Historical sales trend: At the parent company Declining Staying the same Increasing Not applicable Total 75 72 3 96% Count 1 1 9 31 74% 42 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 42 33 56% Figure 44c:: Historical sales trend: Within the industry Count Declining Staying the same Increasing Not applicable Total 10 24 20 7 61 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 61 14 81% Figure 44d: Historical export sales trend Declining Staying the same Percent of Question Respondents 2% 2% 21% Percent of Question Respondents 16% 39% 33% 11% Count Percent of Question Respondents 0 8 0% 17% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 93 Increasing Not applicable Total 2 37 47 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 47 28 63% Figure 45: Percent of total sales generated by top 3 customers Count 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total 20 10 10 2 3 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 72 45 27 62% Figure 46: Source of Majority of Sales 4% 79% Percent of Question Respondents 44% 22% 22% 4% 7% Percent of Question Respondents Count Local Provincial National United States International Total 48 3 8 0 0 59 Figure 46b: Please identify the source of your sales by percentage: International Count Percent of Question Respondents 3 25.00% 1-9% 71% 4% 12% 0% 0% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 94 10-19% 20-29% 30-39% 40-49% Total 4 2 2 1 12 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 12 63 16% Figure 46c: Please identify the source of your sales by percentage: United States Count 10-19% 20-29% Total 5 2 7 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 7 68 9% Figure 46d: Please identify the source of your sales by percentage: National Count 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% Total 2 4 5 6 2 4 4 3 1 31 Survey Participants: Question Respondents: No Response Count: 75 31 44 33.33% 16.67% 16.67% 8.33% Percent of Question Respondents 71.43% 28.57% Percent of Question Respondents 6.45% 12.90% 16.13% 19.35% 6.45% 12.90% 12.90% 9.68% 3.23% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 95 Response Rate: Figure 46e: Please identify the source of your sales by percentage: Provincial 41% Count 1-9% 10-19% 20-29% 30-39% 40-49% 60-69% 100% Total 5 3 5 3 1 2 1 20 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 20 55 27% Figure 46f: Please identify the source of your sales by percentage: Local / Regional Count 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 2 3 2 4 2 7 2 6 3 5 32 68 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 68 7 91% Percent of Question Respondents 25.00% 15.00% 25.00% 15.00% 5.00% 10.00% 5.00% Percent of Question Respondents 2.94% 4.41% 2.94% 5.88% 2.94% 10.29% 2.94% 8.82% 4.41% 7.35% 47.06% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 96 Figure 47: International trade status Count Percent of Question Respondents Import Export None Not applicable Total 2 5 14 45 66 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 64 11 85% Figure 48: Do you engage in government procurement? Count Percent of Question Respondents Yes 15 22% No Total 54 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 72 69 3 96% Figure 49: Source of Majority of Supplies Local Provincial National United States International Total Count 19 12 22 4 2 59 3% 8% 22% 70% 78% Percent of Question Respondents 44% 28% 51% 9% 5% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 97 Figure 49b: Please identify the source of your supplies by percentage: Local / Regional Count 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 3 7 7 2 2 3 1 3 1 3 11 43 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 43 32 57% Figure 49c: Please identify the source of your supplies by percentage: Provincial Count 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 2 1 4 2 1 2 2 4 3 1 2 24 Survey Participants: Question Respondents: 75 24 Percent of Question Respondents 6.98% 16.28% 16.28% 4.65% 4.65% 6.98% 2.33% 6.98% 2.33% 6.98% 25.58% Percent of Question Respondents 8.33% 4.17% 16.67% 8.33% 4.17% 8.33% 8.33% 16.67% 12.50% 4.17% 8.33% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 98 No Response Count: Response Rate: Figure 49d: Please identify the source of your supplies by percentage: National 51 32% Count 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 4 3 8 2 2 4 1 4 2 8 6 44 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 44 31 59% Figure 49e: Please identify the source of your supplies by percentage: United States Count 1-9% 10-19% 20-29% 30-39% 50-59% 60-69% 70-79% 90-99% 100% Total 2 4 1 2 2 1 1 1 1 15 Survey Participants: 75 Percent of Question Respondents 9.09% 6.82% 18.18% 4.55% 4.55% 9.09% 2.27% 9.09% 4.55% 18.18% 13.64% Percent of Question Respondents 13.33% 26.67% 6.67% 13.33% 13.33% 6.67% 6.67% 6.67% 6.67% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 99 Question Respondents: No Response Count: Response Rate: 15 60 20% Figure 49f: Please identify the source of your supplies by percentage: International Count 1-9% 10-19% 20-29% 30-39% 80-89% 100% Total 3 1 1 1 1 1 8 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 8 67 11% Do you supply your products or services to any company in the community or region? Count Yes No Total 50 23 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 73 2 97% What products or services, if any, are you purchasing from outside the area for which you would like to have a local supplier? Computers / Software Construction supplies Hair salon supplies Percent of Question Respondents 37.50% 12.50% 12.50% 12.50% 12.50% 12.50% Percent of Question Respondents 68% 32% Count Percent of Question Respondents 1 1 1 3.85% 3.85% 3.85% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 100 Professional services Shipping Services Technology Services Chemicals Graphic design services Laundry services Office supplies Meats & Dairy / Fruits and Vegetables / Grains Total 17 Survey Participants: Question Respondents: No Response Count: Response Rate: 72 26 46 36% Figure 50: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area? No applicable to this business Loyalty to current supplier No control - head office decision Quality of available products Unaware of local venders Higher costs locally Product not available here Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: 1 1 1 2 2 2 2 3.85% 3.85% 3.85% 7.69% 7.69% 7.69% 7.69% 3 11.54% Count Percent of Question Respondents 2 4% 4 7% 5 9% 5 9% 5 9% 6 11% 43 78% 6 76 11% 72 55 17 76% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 101 Figure 50b: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area?: If Other, specify Cost Count Percent of Question Respondents 1 1.82% Franchise restrictions 1 1.82% Not available here 1 1.82% Supply shortage 3 5.45% Total 6 Survey Participants: 72 Question Respondents: 6 No Response Count: 0 Parent Question 'Other' Respondents: 6 Parent Question Respondents: 55 Response Rate: 100% FACILITIES AND EQUIPMENT Figure 51: What is the square footage of your current facility?: Square feet Count Percent of Question Respondents less than 1,000 sq ft 1,000-4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more 18 31 5 4 8 27% 47% 8% 6% 12% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 102 Total 66 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 52:Condition of facility 66 9 88% Count Excellent Good Fair Poor Total 26 24 16 4 70 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 53: Condition of equipment Percent of Question Respondents 37% 34% 23% 6% 70 5 93% Count Excellent Good Fair Poor Total 21 40 5 1 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Percent of Question Respondents 31% 60% 7% 1% 67 8 89% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 103 Figure 54: Status of facility Count Owned Leased Total 28 45 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 55: Status of facility: If Leased, what is the length of term remaining 2 97% Count 9 7 3 4 23 Survey Participants: Question Respondents: 75 No Response Count: 22 Figure 55b: Are you planning on renewing current lease? Yes No Total 38% 62% 73 <1 Year 1-2 Years 3-5 Years >5 Years Total Parent Question 'Leased' Respondents: Parent Question Respondents: Percent of Question Respondents Percent of Question Respondents 39% 30% 13% 17% 23 45 73 Count 34 8 42 Percent of Question Respondents 80.95% 19.05% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 104 Survey Participants: Question Respondents: 75 No Response Count: 3 Parent Question 'Leased' Respondents: 45 Parent Question Respondents: 73 Response Rate: 93% Figure 56: Do you have a preference of lease vs own? 42 Count Lease Own Total 19 35 54 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 57: Historical investment trends: Over past 18 months in the facility Percent of Question Respondents 35% 65% 54 21 72% Count Declining Staying the same Increasing Total 3 30 20 53 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Percent of Question Respondents 6% 57% 38% 53 22 71% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 105 Figure 58: Is there room for expansion at this site? Count Yes No Maybe Total 26 38 6 70 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 59: Does the company plan to expand in the next three years? 37% 54% 9% 70 5 93% Count Yes No Total 35 36 71 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 59b: Are there any local expansion plans in the next 12 18 months? Percent of Question Respondents Percent of Question Respondents 49% 51% 71 4 95% Count Yes No Total 20 30 50 Survey Participants: Question Respondents: No Response Count: 75 Percent of Question Respondents 40.00% 60.00% 50 25 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 106 Response Rate: Figure 60: Does the company plan to expand in the next three years?: Is your current site adequate for the proposed expansion? Yes No Total 67% Count 12 14 26 Survey Participants: Question Respondents: 75 No Response Count: 9 Parent Question 'Yes' Respondents: Parent Question Respondents: Figure 61: Does the company plan to expand in the next three years?: Will it be in this community? Yes No Total 46% 54% 26 35 71 Count 28 5 33 Survey Participants: Question Respondents: 75 No Response Count: 2 Parent Question 'Yes' Respondents: Parent Question Respondents: Percent of Question Respondents Percent of Question Respondents 85% 15% 33 35 71 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 107 Figure 62: Does the company plan to expand in the next three years?: Estimated total investment Less than $25,000 $25,000-$99,999 $100,000-$499,999 $1-$4.9 million $10-19.9 million Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 63: Does the company plan to expand in the next three years?: Approximate percentage equipment/technology Under 50% 50 to 99% 100% Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Count 6 3 5 4 1 19 Percent of Question Respondents 32% 16% 26% 21% 5% 75 19 16 35 71 54% Percent of Count Question Respondents 5 5 2 12 42% 42% 17% 75 12 23 35 71 34% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 108 Figure 64: Does the company plan to expand in the next three years?: Approximate percentage real estate 0% Under 50% 50 to 99% 100% Total Count 1 2 4 1 8 Survey Participants: Question Respondents: 75 No Response Count: 27 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 65: Does the company plan to expand in the next three years?: Estimated facility size increase (square feet) Less than 1,000 sq ft 1,000 to 4,999 sq ft 5,000-9,999 sq ft 20,000 sq ft or more Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents 13% 25% 50% 13% 8 35 71 23% Count 4 6 2 1 13 Percent of Question Respondents 31% 46% 15% 8% 75 13 22 35 71 37% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 109 Figure 66: Have there been any recent facility upgrades? Count Yes No Total 41 29 70 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 66b: Have there been any recent facility upgrades? If Yes, when?: Month scale 5 93% Count 2 6 13 6 9 4 40 Survey Participants: Question Respondents: 75 No Response Count: 1 Figure 67: Planning any upgrades to the facility? 59% 41% 70 3 6 12 18 24 36 Total Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents Percent of Question Respondents 5.00% 15.00% 32.50% 15.00% 22.50% 10.00% 40 41 70 98% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 110 Yes No Total 23 44 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 67b: Planning any upgrades to the facility? If Yes, when?: Month scale 67 8 89% Count 3 6 12 24 36 Total 3 6 11 1 2 23 Survey Participants: Question Respondents: 75 No Response Count: 0 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 68: If No, are there any barriers to upgrading you wish to identify? 34% 66% Percent of Question Respondents 13.04% 26.09% 47.83% 4.35% 8.70% 23 23 67 100% Count Percent of Question Respondents Building is for sale Business capacity 1 1 8% 8% Change in ownership 1 8% Ownership Space 2 4 17% 33% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 111 None 3 Total 12 Survey Participants: Question Respondents: No Response Count: Parent Question 'No' Respondents: Response Rate: Figure 69: What, if any, are the major constraints on your expansion? (Please check all that are applicable) Broadband access Warehousing Energy costs Local regulations e.g. zoning Problems with DAs Identifying and accessing new markets Other (please specify): Finance Lack of suitable premises 25% 75 12 32 44 27% Count Percent of Question Respondents 1 1 2 4% 4% 8% 3 12% 4 15% 6 23% 7 27% 8 31% 11 42% Lack of skilled staff 13 50% Total 56 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 75 26 9 35 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 112 Parent Question Respondents: 71 Response Rate: 74% Figure 69b: What, if any, are the major constraints on your expansion? (Please check all that are applicable): Other (please specify) City must agree to sell the land to the academy Getting travelers to see Fernie as a summer destination Increased competition Lack of buildings Count Percent of Question Respondents 1 12.50% 1 12.50% 1 12.50% 1 12.50% Opportunity 1 12.50% Parking being ready for opportunity conditions of available facilities lease costs ownership time to engage expansion Total 1 12.50% 1 12.50% 1 12.50% 1 12.50% 1 12.50% 10 Survey Participants: 75 Question Respondents: No Response Count: Figure 70: Have you approached anybody in local/provincial/federal government or business development organizations to discuss your expansion plans? 8 0 Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 113 Yes No Total 10 22 32 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 32 43 43% Figure 70b: If Yes, which have you approached? 31.25% 68.75% Count Percent of Question Respondents Chamber of Commerce 1 10% Community Futures 1 10% Local Council 4 40% Other Total 7 13 70% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 75 10 0 10 32 Response Rate: 100% Figure 70c: If Yes, which have you approached?: Other (please specify) Count Percent of Question Respondents 1 10.00% 1 10.00% BBA (Basin Business Advisors) BDC (Business Development Bank of Canada) Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 114 KRIC (Kootenay Rockies Innovation Council) Provincial Government CBT (Columbia Basin Trust) Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 71: Have you factored improvements in energy efficiency in your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 72: Are you aware of BC Hydro Power Smart resources that are available to you? Yes No 1 10.00% 2 20.00% 3 30.00% 8 75 7 0 7 10 100% Count 26 17 43 Percent of Question Respondents 60% 40% 72 43 29 60% Count Percent of Question Respondents 43 25 63% 37% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 115 Total 68 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 68 7 91% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 116 GOVERNMENT SERVICES Figure 73: Government Services Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Access to Port Facilities 61 85% 8 11% 0 0% 2 3% 1 1% 72 Access to US Border 7 9% 0 0% 0 0% 49 66% 18 24% 74 Access to airport facilities 13 17% 13 17% 21 28% 25 33% 3 4% 75 Access to highway/ roads 3 4% 0 0% 3 4% 52 69% 17 23% 75 Access to markets 8 11% 5 7% 15 20% 40 53% 7 9% 75 Access to suppliers 4 5% 6 8% 29 39% 31 42% 4 5% 74 Availability of appropriately zoned land 22 33% 13 20% 8 12% 21 32% 2 3% 66 Availability of buildings for lease or purchase 16 22% 23 32% 14 19% 19 26% 1 1% 73 Availability of rail transport 55 79% 12 17% 1 1% 1 1% 1 1% 70 Availability of road transport services 0 0% 7 9% 23 31% 37 49% 8 11% 75 Availability of warehousing 44 63% 10 14% 5 7% 11 16% 0 0% 70 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 117 Development approval process 32 44% 8 11% 18 25% 14 19% 0 0% 72 Disposal of waste material 8 11% 10 14% 10 14% 37 51% 7 10% 72 Inspections /licensing 13 18% 3 4% 9 13% 41 57% 6 8% 72 Recycling 0 0% 7 9% 14 19% 43 57% 11 15% 75 Telecommunications (internet, cell) 1 1% 6 8% 9 12% 46 61% 13 17% 75 Water and sewerage supply 3 4% 2 3% 11 15% 53 73% 4 5% 73 Survey Participants: 75 75 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 118 Figure 73b: Please rate the following: Other (please specify) Please rate the following: Other (please specify) Count Percent of Question Respondents Freight Service Poor 1 33.33% 1 33.33% Total Survey Participants: 75 Question Respondents: 3 No Response Count: 72 Response Rate: 4% Figure 74: Do you have any suggestions on how to improve any of the services and infrastructure listed above? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 74b: Do you have any suggestions on how to improve any of the services and infrastructure listed above?: If Yes, how? Enforce bylaws Expand electronic communication services (Cell phone/ Internet/ Broadband/Fiber) Expanded choice/ distribution of national newspapers Percent of Question Respondents Count 31 24 55 56.36% 43.64% 75 55 20 73% Percent of Question Respondents Count 1 3.33% 1 3.33% 1 3.33% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 119 Improve highway and road quality and service Increase Water Services Increase public transportation 1 3.33% 1 1 3.33% 3.33% Postal service 1 3.33% Snow removal Water quality 1 1 3.33% 3.33% Improve Airport service 2 6.67% Improve shipping and receiving Streamline development approval processes Improve recycling and waste management Land zoning 3 10.00% 3 10.00% 4 13.33% 5 16.67% Total 26 Survey Participants: 75 Question Respondents: 30 No Response Count: 1 Parent Question 'Yes' Respondents: Parent Question Respondents: 31 55 Response Rate: 97% Figure 75: Which airport services do you use? Count Spokane Kalispell Cranbrook Calgary None Total Survey Participants: Question Respondents: No Response Count: Response Rate: 1 10 31 37 3 82 Percent of Question Respondents 2% 18% 56% 67% 5% 75 55 20 73% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 120 Figure 76: Which airport services do you use?: What services would you like to see at the local airport? (where appropriate) Air shuttle to Vancouver International flights Larger aircraft Local Service Parking Scheduled flights Lower fares Food service More Airlines More destinations More flights Shuttle service Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count Percent of Question Respondents 1 1 1 1 1 1 2 3 3 3 6 7 20% 30 3% 3% 3% 3% 3% 3% 6% 9% 9% 9% 17% 75 35 40 47% BUSINESS CLIMATE Figure 77: Please rate the local business climate Percent of Question Respondents Count Excellent Good Fair Poor Total 3 43 26 1 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 73 2 97% 4% 59% 36% 1% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 121 Figure 78: Business climate ratings No Opinion % No Opinion Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Chamber of Commerce 3 4% 0 0% 6 8% 36 49% 29 39% 74 Colleges/Universities 19 25% 6 8% 18 24% 31 41% 1 1% 75 Community Futures 43 64% 1 1% 1 1% 16 24% 6 9% 67 Cultural/Recreational Amenities 0 0% 4 5% 9 12% 39 52% 23 31% 75 Economic Development 12 16% 12 16% 30 40% 21 28% 0 0% 75 Housing 0 0% 25 33% 28 37% 19 25% 3 4% 75 K-12 education 22 30% 2 3% 3 4% 39 53% 8 11% 74 Local Government 7 10% 7 10% 26 36% 32 44% 1 1% 73 Local Tax Structure 14 20% 8 11% 23 32% 24 34% 2 3% 71 Technical Training 30 41% 15 20% 12 16% 16 22% 1 1% 74 Tourism services 3 4% 1 1% 9 12% 39 52% 23 31% 75 Workforce Availability 3 4% 13 17% 31 41% 25 33% 3 4% 75 Workforce Quality 3 4% 6 8% 26 35% 32 43% 7 9% 74 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 122 Workforce Stability 3 Survey Participants: 75 4% 16 21% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 28 37% 27 123 36% 1 1% 75 Figure 79: Please compare the local business climate today versus 5 years ago Percent of Question Respondents Count Better today No change Worse today No opinion Total 40 10 15 7 72 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 72 3 96% Figure 79b: Please compare the local business climate today versus 5 years ago: If worse today, why? Competition Less tourists Mine closure Declining economy 56% 14% 21% 10% Percent of Question Respondents Count 1 1 1 6 6.67% 6.67% 6.67% 40.00% Declining market 6 40.00% Total 15 Survey Participants: Question Respondents: 75 15 No Response Count: 0 Parent Question 'Worse today' Respondents: Parent Question Respondents: Response Rate: Figure 80: Do you have any forecast for the condition of the local 15 72 100% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 124 business climate 5 years from today? Will be better No change Will be worse No opinion Total 42 16 7 4 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 69 6 92% Figure 81: What are the community's strengths as a place to do business? 61% 23% 10% 6% Percent of Question Respondents Count Great place to live Industry diversity Natural beauty Outdoor activities Social network 1 1 1 1 1 1% 1% 1% 1% 1% Stable economy 1 1% Vibrant downtown Word of mouth Affluent residents Customer loyalty Customer service 1 1 2 2 3 1% 1% 3% 3% 4% Friendliness 3 4% Natural attractions Diversified economy Location Recreational opportunities Lifestyle Tourism Supportive community Total 3 4 4 4% 5% 5% 4 5% 12 12 29 86 16% 16% 39% Survey Participants: Question Respondents: No Response Count: 75 74 1 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 125 Response Rate: 99% Figure 82: What are the community's weaknesses as a place to do business? Count Percent of Question Respondents 1 1% 1 1% 1 1% Lack of suppliers 1 1% Poor customer service Population (size/growth/aging) Shipping and Receiving costs Small market Too dependent on tourism Transient population Lack of support for local businesses Planning and development process Available space Inaccessible government services Cost of doing business 1 1% 1 1% 1 1 1 1 1% 1% 1% 1% 2 3% 2 3% 3 4% 3 4% 4 5% Lack of amenities 4 5% Resistance to change Geographic isolation 4 5 5% 7% Lack of skilled workforce 5 7% High cost of living Dependent on one major industry Low population Seasonality Total 6 8% 7 10% 7 10 72 10% 14% Cross border shopping (US/Alberta) Development Constraints (Zoning/Bureaucracy/Permits) High business taxes Survey Participants: 75 Question Respondents: 73 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 126 No Response Count: 2 Response Rate: 97% Figure 83: Are there any barriers to growth in this community? Percent of Question Respondents Count Yes No Total 58 15 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 73 2 97% Figure 83b: Are there any barriers to growth in this community? : If Yes, what are they? 79.45% 20.55% Percent of Question Respondents Count Affordable housing Population (size / growth / age) 1 2% 1 2% Shipping costs 1 2% Cost of living 2 3% Resistance to change 2 3% Transportation 2 3% Availability of land 3 5% Competition 3 5% Seasonality Small market Cost of doing business Skilled labour Developmental approval process Low economic diversification Low population 3 3 4 4 5% 5% 7% 7% 6 10% 6 10% 7 12% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 127 Geographic constraints Total 9 57 Survey Participants: 75 Question Respondents: 58 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 0 16% 58 73 100% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 128 Not Applicable % Not Applicable Unable to assist Basin Business Advisors Chamber of Commerce Community Futures Continuing Education and Workforce Training Economic Development Organization / Commission Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) Invest Kootenay Kootenay Aboriginal Business Advocates Society National Research Council Industrial Research Assistance Scientific Research and Experimental Development Tax Incentive Program 47 3 41 76% 4% 66% 0 0 1 % Unable to assist 0% 0% 2% 31 53% 1 43 83% 51 Survey Participants: 72 Figure 84: Level of service from business support providers Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respon -dents 1 2 1 2% 3% 2% 2 6 2 3% 9% 3% 5 27 9 8% 39% 15% 7 31 8 11% 45% 13% 62 69 62 2% 1 2% 5 9% 17 29% 3 5% 58 0 0% 4 8% 2 4% 2 4% 1 2% 52 84% 0 0% 1 2% 1 2% 5 8% 3 5% 61 48 87% 0 0% 0 0% 0 0% 7 13% 0 0% 55 47 90% 0 0% 0 0% 1 2% 4 8% 0 0% 52 52 93% 0 0% 1 2% 1 2% 2 4% 0 0% 56 55 98% 0 0% 0 0% 0 0% 1 2% 0 0% 56 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 129 Figure 85: Are there suppliers you think could locate in this region? Percent of Question Respondents Count Yes No Total 23 50 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 73 2 97% Figure 85b: Are there suppliers you think could locate in this region?: If Yes, please list Design Services Local artisans Meats & Dairy / Fruits and Vegetables / Grains Office supplies 31.51% 68.49% Percent of Question Respondents Count 1 1 7% 7% 1 7% 1 7% Technology companies 1 7% Building supplies Coffee equipment /services Retail stores Total 2 14% 2 14% 2 11 14% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 75 14 9 23 73 61% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 130 Figure 86:Tell us which business, sector, or industry to attract that would strategically benefit you or your industry Food businesses Percent of Question Respondents Count 1 2% Health and Wellness 1 2% Information Technology 1 2% Senior Services 1 2% Manufacturing 2 4% Recreational services 2 4% Technology businesses 2 4% Conference Centre 3 6% Creative businesses 3 6% Retail Stores 3 6% Transportation 3 6% Construction 5 11% Educational services 5 11% Tourism 8 17% Total 40 Survey Participants: 75 Question Respondents: 47 No Response Count: Response Rate: 28 63% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 131 Not applicable % Not applicable Not important at all or not very important 27 38% 21 30% 23 32% 71 2 3% 15 21% 54 76% 71 Add or change in business, products or services 1 1% 8 12% 60 87% 69 Affordable shipping/freight 4 6% 8 11% 60 83% 72 Availability of telecommunications infrastructure and services 0 0% 1 1% 70 99% 71 5 7% 13 18% 54 75% 72 3 4% 8 11% 61 85% 72 Expansion of workforce employees 4 6% 16 22% 52 72% 72 Improvement business management 1 1% 5 7% 64 91% 70 Improvement of customer services 0 0% 5 7% 67 93% 72 Improving worker productivity 3 4% 6 8% 63 88% 72 Figure 87: Business competitiveness factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar % Not important at all or not very important Somewhat important, very important % Somewhat important, very important Respondents Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 132 New market development locally 3 4% 11 15% 58 81% 72 New market development outside of region 1 1% 16 23% 53 76% 70 New product research and development 4 6% 11 15% 57 79% 72 Reliable air transportation 12 17% 22 31% 37 52% 71 Strategic alliances (joining with other businesses to provide products/services) 0 0% 11 15% 61 85% 72 9 6 13% 8% 14 22 20% 31% 48 43 68% 61% 71 71 3 4% 4 6% 65 90% 72 Workplace health and safety 3 4% 10 14% 59 82% 72 Survey Participants: 72 Water/sewer availability Water/sewer costs Workforce skill development Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 133 Figure 88: Performance of key productivity drivers Innovation & the use of technology Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent 2 3% 3 4% 14 20% 36 51% 16 23% 71 Investing in people and skills 1 1% 2 3% 11 15% 39 55% 18 25% 71 Leadership and management capacity 2 3% 1 1% 8 11% 43 61% 17 24% 71 Measuring impact of productivity efforts/ investments 8 12% 9 13% 18 26% 30 43% 4 6% 69 Networking and collaboration with other businesses 3 4% 3 4% 12 17% 44 62% 9 13% 71 Organizing work (structures & processes) 1 1% 0 0% 11 16% 40 57% 18 26% 70 Productive workplace culture 2 3% 0 0% 4 6% 36 51% 29 41% 71 Survey Participants: 72 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 134 % Respondents Excellent Figure 89: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3) Forestry Technology-based businesses Health & wellness Arts Construction culture and creative businesses Relocation of people from urban centres Tourism Other Total 13 19% 13 19% 14 16 16 20% 23% 23% 16 23% 19 28% 64 43 93% 62% 245 Survey Participants: 72 Question Respondents: 69 No Response Count: Response Rate: 3 96% Figure 89b: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3): If Other please specify extra employment of benefits Mining Total Percent of Question Respondents Count Percent of Question Respondents Count 1 1.45% 37 38 53.62% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 135 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 90: Is your business impacted by its proximity to the Alberta border? 72 38 5 43 69 88% Percent of Question Respondents Count Yes No Total 57 9 66 Survey Participants: Question Respondents: No Response Count: Response Rate: 72 66 6 92% Figure 90b: Is your business impacted by its proximity to the Alberta border?: If Yes, please explain Negative - Alberta competition 86.36% 13.64% Percent of Question Respondents Count 6 11% Negative - Loss of sales to Alberta 10 18% Positive - Alberta customers 17 31% Positive - Alberta tourists 21 38% Total 54 Survey Participants: 72 Question Respondents: No Response Count: 55 2 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 136 Parent Question 'Yes' Respondents: Parent Question Respondents: 57 66 Response Rate: 96% ASSESSMENT AND PLANS Figure 91: Rate the following: Facility's overall health Count Excellent Good Fair Poor Total 16 25 6 1 48 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 92: Rate the following: Overall health of the parent company Percent of Question Respondents 33% 52% 13% 2% 48 27 64% Count Excellent Good Not applicable Total 7 1 33 41 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Percent of Question Respondents 17% 2% 80% 41 34 55% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 137 Figure 93: Rate the following: Local management's attitude toward the community Count Excellent Good Fair Total 28 15 3 46 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 46 29 61% Figure 94: Rate the following: Parent company's attitude towards the community Count Excellent Good Not applicable Total 5 3 34 42 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Figure 95: Rate the risk: Facility closing in the next 1 - 3 years Percent of Question Respondents 61% 33% 7% Percent of Question Respondents 12% 7% 81% 42 33 56% Count Moderate Low Total 6 44 50 Survey Participants: Question Respondents: No Response Count: 75 Percent of Question Respondents 12% 88% 50 25 Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 138 Response Rate: Figure 96: Rate the risk: Facility downsizing in the next 1 - 3 years 67% Count High Moderate Low Total 1 6 41 48 Survey Participants: Question Respondents: No Response Count: Response Rate: 75 Percent of Question Respondents 2% 13% 85% 48 27 64% Columbia Basin Business Retention and Expansion Project: Report on Fernie and Area Businesses 139