COLUMBIA  BASIN  BUSINESS  RETENTION   AND  EXPANSION  PROJECT     R EPORT  ON   N AKUSP   B USINESSES       FALL   2013                     The  Columbia  Basin  Rural  Development  Institute,  at  Selkirk  College,  is  a  regional  centre  of   excellence  in  applied  research  and  information  provision  focused  on  strengthening  rural   communities  in  the  Columbia  Basin-­‐Boundary  Region.  Visit  www.cbrdi.ca  for  more  information.       Nakusp  and  Area  Development  Board  (NADB)  is  an  incorporated  non-­‐profit  society  whose  purpose   is  to  further  the  development  of  the  Nakusp  region  in  the  tourism,  social,  education,  forestry,   heritage/arts/culture  and  economic  sectors.  Visit  www.nadb.ca  for  more  information.         Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       1     EXECUTIVE  SUMMARY   This  report  describes  findings  from  a  94-­‐question  Business  Retention  and  Expansion  (BRE)  survey1   conducted  at  46  businesses  in  the  Nakusp  area  in  between  January  and  May  2013.  BRE  is  an   action-­‐oriented  and  community-­‐based  approach  to  strengthening  relationships  with  business  and   informing  economic  development  efforts.  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   Business  Climate   Assessment  and   Plans   Finding   The  highest  number  of  respondents  businesses  are  classified  as  ‘Retail  and   Wholesale  Trade’  under  the  North  American  Industry  Classification  system   57%  of  companies  have  been  in  business  for  more  than  20  years   10  businesses  plan  to  transfer  ownership  in  the  next  3  years   Respondents  reported  a  total  of  551  employees,  64%  are  full-­‐time   33%  of  businesses  expect  the  size  of  their  full-­‐time  workforce  to  increase  over  the   next  3  years  and  7%  expect  it  to  decrease   Retail/hospitality  and  skilled  trades  were  most  commonly  listed  as  key  training  areas   55%  of  businesses  expect  that  their  sales  will  grow  by  between  1  and  9%  over  the   next  year   60%  of  businesses  make  the  majority  of  their  sales  to  local  customers   58%  of  businesses  source  their  supplies  elsewhere  in  BC  or  Canada   82%  of  businesses  own  the  facility  in  which  they  operate   37%  of  businesses  plan  to  expand  within  3  years  with  a  total  estimated  expansion   budget  of  over  $42  million   Top  rated  government  services  include  access  to  roadways,  access  to  markets,   recycling  and  disposal  to  waste  services   Businesses  indicated  that  ferry  services  and  utilities  are  the  government  services   most  in  need  of  improvement   Business  climate  factors  that  received  the  highest  ratings  include  K-­‐12  education  and   cultural  /  recreational  amenities   Businesses  most  commonly  listed  Nakusp’s  location  as  its  greatest  strength   The  business  competitiveness  factors  that  are  most  important  to  respondents   include  new  market  development  locally  and  workforce  skill  development   89%  of  businesses  said  that  cost  of  living  is  a  critical  issue  for  their  staff   64%  of  businesses  rated  the  overall  health  of  their  company  as  good   87%  of  businesses  are  at  low  risk  of  closing  or  downsizing                                                                                                                             1  The  30  question  short  survey  was  administered  to  some  businesses.   Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       2     NEXT  STEPS  AND  POTENTIAL  ACTIONS   The  results  of  this  survey  can  be  used  by  the  Nakusp  and  Area  Development  Board  to  inform   short-­‐  and  long-­‐term  business  retention  and  expansion  action  planning.  In  addition,  a  number  of   businesses  would  benefit  from  one-­‐on-­‐one  follow-­‐up  support  (i.e.  to  support  expansion,  to   minimize  risk  of  closure,  to  assist  with  succession  planning).   Research  findings  suggest  that  the  following  action  areas  have  the  greatest  potential  to  improve   the  Nakusp  business  climate:   Business  e xpansion:  Businesses  are  planning  significant  investment  in  expansion  over  the  near   term.  Actions  on  this  theme  could  involve  assisting  individual  businesses  with  site  selection,   facilitating  access  to  business  support  programs,  and  /  or  liaising  with  governments  to  ensure   approval  processes  meet  the  needs  of  local  businesses.   Succession  p lanning:  Engagement  with  formal  succession  planning  is  low  in  the  region  and,  given   a  number  of  Nakusp  businesses  report  a  pending  change  in  ownership,  effective  succession   planning  support  could  be  important  to  the  future  of  the  Nakusp  economy.  Actions  on  this  theme   could  involve  offering  succession  planning  workshops  or  more  targeted  one-­‐on-­‐one  support  to   businesses.     Government  s ervices:  Approvals,  regulations  and  taxes  administered  by  various  levels  of   government  were  often  cited  by  respondents  as  factors  that  inhibit  business  activity  in  the  region.   Additional  research  on  this  theme  could  help  further  inform  the  exact  nature  of  businesses’   perceptions  regarding  the  regulatory  barriers  to  their  growth.    Local  government  could  explore  the   effectiveness  of  current  business  approval  processes  and  explore  development  approval  best   practices  in  other  jurisdictions.  Improvements  could  be  implemented  based  on  the  results  of  these   assessments.   Supply  s ourcing,  e xporting  &  g overnment  p rocurement:  Businesses  are  selling  primarily  to  local   customers,  yet  acquiring  supplies  primarily  from  outside  the  region.  Additional  research  on  this   theme  could  help  determine  if  there  are  opportunities  to  address  barriers  that  prevent  businesses   from  buying  locally.      In  addition,  a  relatively  low  number  of  businesses  indicated  they  export  to   external  markets  and  /  or  engage  in  government  procurement.    Workshops  could  be  offered  to   raise  awareness  of  these  opportunities.       Recruitment  a nd  retention  initiatives:  Over  two-­‐thirds  of  businesses  indicated  that  they  have   experienced  challenges  both  recruiting  and  retaining  employees.    Actions  on  this  theme  could   involve  assisting  businesses  and  the  community  tap  into  coordinated  regional  recruitment  and   marketing  initiatives,  focusing  recruitment  efforts  on  identified  groups,  expanding  the  scope  of   recruitment  activities  (i.e.  beyond  local,  beyond  word  of  mouth),  and  undertaking  additional   research  on  the  nature  of  retention  challenges.   Training  o pportunities:   Respondents  acknowledged  the  importance  of  skilled  staff  to  their   business  and  identified  retail/hospitality  and  trades  as  necessary  areas  of  professional   development.  Given  the  limited  time  and  funding  resources  available  to  the  types  of  small   Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       3     businesses  that  characterize  the  Nakusp  economy,  any  actions  on  this  theme  must  consider   business  schedules  and  training  budgets.     Infrastructure:  Businesses  identified  infrastructure  as  the  primary  barrier  to  growth  in  their   community.  Compiling  existing  research,  particularly  in  regards  to  energy  and  transportation   infrastructure,  would  provide  an  opportunity  to  more  clearly  define  the  issues  and  identify   possible  solutions.       Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       4     CONTENTS   Executive  Summary  ................................................................................................................  2   Key  Research  Findings  ....................................................................................................................  2   Next  Steps  and  Potential  Actions  ...................................................................................................  3   Contents  .................................................................................................................................  5   List  of  Figures  .........................................................................................................................  7   Project  Overview  ....................................................................................................................  1   The  BRE  Concept  ............................................................................................................................  1   Project  Objectives  ..........................................................................................................................  1   Research  Considerations  ........................................................................................................  1   The  BRE  Survey  ...............................................................................................................................  1   The  Data  Set  ...................................................................................................................................  2   Data  Collection  ...............................................................................................................................  2   Data  Input,  Analysis  and  Reporting  ................................................................................................  2   Research  Findings  ..................................................................................................................  3   Company  Information  ....................................................................................................................  3   Local  Workforce  .............................................................................................................................  9   Sales  .............................................................................................................................................  17   Facilities  and  Equipment  ..............................................................................................................  22   Government  Services  ...................................................................................................................  27   Business  Climate  ...........................................................................................................................  29   Assessment  and  Plans  ..................................................................................................................  34   Recommendations  ...............................................................................................................  37   Next  Steps  ....................................................................................................................................  37   Potential  Action  Areas  ..................................................................................................................  37           Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       5     Appendix  A:  Data  Tables  ......................................................................................................  40   Company  Information  ..................................................................................................................  40   Local  Workforce  ...........................................................................................................................  45   Sales  .............................................................................................................................................  54   Facilities  and  Equipment  ..............................................................................................................  59   Government  Services  ...................................................................................................................  64   Business  Climate  ...........................................................................................................................  65   Assessment  and  Plans  ..................................................................................................................  70       Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       6     LIST  OF  FIGURES   Figure  1:  NAICS  code  category  ...........................................................................................................  3   Figure  2:  Function  of  facility  ...............................................................................................................  3   Figure  3:  Location  of  competitors  ......................................................................................................  4   Figure  4:  Success  factors  ....................................................................................................................  4   Figure  5:  Key  words  in  respondents’  discussion  of  success  factors   ...................................................  4   Figure  6:  Other  similar  locations  ........................................................................................................  5   Figure  7:  Life  cycle  stage  ....................................................................................................................  5   Figure  8:  Length  of  time  in  business  ...................................................................................................  6   Figure  9:  Type  of  business  ..................................................................................................................  6   Figure  10:  Location  of  headquarters  ..................................................................................................  6   Figure  11:  Ownership  and  management  changes  ..............................................................................  7   Figure  12:  Anticipated  timeline  for  ownership  change  ......................................................................  7   Figure  13:  Anticipated  exit  strategy  ...................................................................................................  8   Figure  14:  Existence  of  formal  succession  plan  ..................................................................................  8   Figure  15:  Existence  of  current  business  plan  ....................................................................................  8   Figure  16:  Total  number  of  employees  ..............................................................................................  9   Figure  17:  Nature  of  employment  ......................................................................................................  9   Figure  18:  Employment  trend  over  last  10  years  .............................................................................  10   Figure  19:  Full-­‐time  employment  trend  over  last  3  years  ................................................................  10   Figure  20:  Full  time  employment  trend  over  next  3  years  ...............................................................  10   Figure  21:  Age  of  the  majority  of  essential  employees  ....................................................................  11   Figure  22:  Wages  in  relation  to  other  businesses  in  the  region  .......................................................  12   Figure  23:  Trend  in  unfilled  positions  ...............................................................................................  12   Figure  24:  Location  of  workforce  recruitment  .................................................................................  12   Figure  25:  Recruitment  and  retention  challenges  ............................................................................  13   Figure  26:  Key  words  in  respondents'  discussion  of  recruitment  activities  .....................................  13   Figure  27:  Key  words  in  respondents'  discussion  of  retention  efforts  .............................................  14   Figure  28:  Current  recruitment  areas  ...............................................................................................  14   Figure  29:  Future  recruitment  areas  ................................................................................................  15   Figure  30:  Skill  level  of  majority  of  workforce  ..................................................................................  15   Figure  31:  Training  or  professional  development  needs  ..................................................................  16   Figure  32:  Preferred  modes  of  training  ............................................................................................  16   Figure  33:  Usual  training  locations  ...................................................................................................  17   Figure  34:  Status  of  labour  relations  ................................................................................................  17   Figure  35:  Annual  sales  ....................................................................................................................  17   Figure  36:  Status  of  market  for  product/service  ..............................................................................  17   Figure  37:  Status  of  market  share  ....................................................................................................  17   Figure  38:  Projected  sales  growth  over  next  year  ............................................................................  18   Figure  39:  Historic  sales  trend  at  facility  ..........................................................................................  18   Figure  40:  Historic  sales  trend  at  parent  company  ..........................................................................  19   Figure  41:  Historic  sales  trend  in  industry  ........................................................................................  19   Figure  42:  Historic  export  sales  trend  ..............................................................................................  19   Figure  43:  Component  of  sales  generated  by  top  3  customers  .......................................................  20   Figure  44:  Geographic  source  of  majority  of  sales  ...........................................................................  20   Figure  45:  International  trade  status  ...............................................................................................  21   Figure  46:  Engagement  with  government  procurement  processes  .................................................  21   Figure  47:  Geographic  source  of  majority  of  supplies  ......................................................................  21   Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       7     Figure  48:  Size  of  facility  ...................................................................................................................  22   Figure  49:  Condition  of  facility  .........................................................................................................  22   Figure  50:  Condition  of  equipment  ..................................................................................................  22   Figure  51:  Number  of  shifts  ..............................................................................................................  23   Figure  52:  Ownership  status  of  facility  .............................................................................................  23   Figure  53:  Length  of  time  remaining  on  lease  ..................................................................................  23   Figure  54:  Investment  in  facility  (past  18  months)  ...........................................................................  24   Figure  55:  Investment  in  equipment  (past  18  months)  ....................................................................  24   Figure  56:  Plans  to  expand  within  three  years  .................................................................................  24   Figure  57:  Adequacy  of  current  site  to  support  expansion  ..............................................................  25   Figure  58:  Estimated  expansion  investment  ....................................................................................  25   Figure  59:  Barriers  to  expansion  of  business  ....................................................................................  25   Figure  60:  Expansion  assistance  sought  ...........................................................................................  26   Figure  61:  Considering  energy  efficiency  in  expansion  plans  ...........................................................  26   Figure  62:  Awareness  of  BC  Hydro  Power  Smart  .............................................................................  26   Figure  63:  Rating  of  government  services  ........................................................................................  27   Figure  64:  Suggested  improvements  to  government  services  .........................................................  28   Figure  65:  Business  climate  factors  ..................................................................................................  29   Figure  66:  Business  climate  today  vs.  5  years  ago  ............................................................................  30   Figure  67:  Business  climate  5  years  from  today  ...............................................................................  30   Figure  68:  Key  words  in  respondents’  discussion  of  the  community’s  strengths  as  a  place  to  do   business  ............................................................................................................................................  32   Figure  69:  Key  words  in  respondents'  discussion  of  the  community’s  weakness  as  a  place  to  do   business  ............................................................................................................................................  33   Figure  71:  Barriers  to  growth  in  the  community’s  economy  ............................................................  33   Figure  72:  Key  words  in  respondents’  discussion  of  customers  to  attract  to  the  area  ....................  34   Figure  73:  Company's  overall  health  ................................................................................................  34   Figure  74:  Overall  health  of  parent  company  ..................................................................................  35   Figure  75:  Local  management's  attitude  toward  community  ..........................................................  35   Figure  76:  Parent  company's  attitude  toward  local  community  ......................................................  35   Figure  77:  Risk  of  facility  closing  .......................................................................................................  36   Figure  78:  Risk  of  facility  downsizing  ................................................................................................  36   Columbia  Basin  Business  Retention  and  Expansion  Project:  Report  on  Nakusp  Businesses       8     PROJECT  OVERVIEW   This  report  describes  findings  from  a  Business  Retention  and  Expansion  (BRE)  survey  conducted  in   the  Nakusp  area  between  January  and  May  2013.  The  Nakusp  and  Area  Development  Board  acted   as  the  community  sponsor  for  the  BRE  project.  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  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  BRE  project  are  as  follows:   1. To  strengthen  the  relationship  between  the  community  and  its  businesses.   2. To  identify  and  provide  follow-­‐up  support  to  businesses  who  are  positioned  to  expand  or   are  at  risk  for  closure.     3. To  develop  data-­‐supported  recommendations  regarding  important  future  focus  areas  for   strengthening  the  area’s  business  climate.         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.  Survey  data  can  therefore  be  analyzed  at  a   community,  sub-­‐regional,  regional  and  provincial  level.     The  base  survey2,  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,  ten  region-­‐specific  questions  were  appended  to  the                                                                                                                           2  Long  and  Short  BRE  Surveys  are  available  at:  http://cbrdi.ca/research-­‐areas/applied-­‐ research/business-­‐retention-­‐expansion/     1       base  BRE  survey.  Researchers  verified  each  business’  North  American  Industry  Classification   System  (NAICS)  code  in  advance  of  the  interview  to  determine  which  sector-­‐specific  add  on  survey   to  include,  if  any.     THE  DATA  SET   To  generate  an  initial  set  of  potential  research  participants,  researchers  reviewed  local  business   license  and  Chamber  of  Commerce  membership  databases.  A  cross-­‐section  of  businesses  was   selected  based  on  size  (small,  medium,  large)  and  type  (according  to  the  NAICS  system).  A  total  of   60  businesses  were  contacted  and  asked  to  participate  in  interviews.    In  total,  46  businesses  were   interviewed  for  this  project  between  January  and  May  2013  (77%  response  rate).    The  short  survey   instrument  was  used  for  the  majority  of  businesses  and  the  long  survey  instrument  was  used  only   for  larger  businesses.   DATA  COLLECTION   Data  were  collected  by  two  volunteer  researchers,  including  and  as  directed  by  the  Local  BRE   Lead,  using  structured  interviews  that  lasted  approximately  one  hour  and  twenty  minutes.    The   process  in  total  took  approximately  four  hours  per  business,  including  setting  up  interviews,  the   interview  itself,  and  data  input.   DATA  INPUT,  ANALYSIS  AND  REPORTING   Data  were  entered  into  the  ExecutivePulse  system  by  researchers  following  interviews.  To  ensure   confidentiality  and  data  security,  company-­‐level  data  were  only  made  accessible  to  RDI  staff  and   the  local  BRE  lead,  all  of  who  had  signed  a  confidentiality  agreement  with  Selkirk  College.       Quantitative  data  were  analysed  using  descriptive  statistics  and  qualitative  data  were  analysed   using  the  grounded  theory  method  of  generating  key  coding  themes.  Based  on  the  results  of  data   analysis  activities,  an  initial  set  of  recommendations  was  generated  by  RDI  and  then  reviewed  with   the  Nakusp  and  Area  Development  Board.    Findings  and  related  recommendations  were   assembled  into  this  report  by  RDI  researchers.       2       RESEARCH  FINDINGS   COMPANY  INFORMATION   Type  o f  P roduct/Service  O ffered   Businesses  interviewed  represented  a  diverse  cross-­‐section  of  industries.  Most  common  were   retail  and  wholesale  trade  (43%  of  businesses)  and  accommodation  and  food  services  (22%).     Figure  1:  NAICS  code  category   other  services   accommodakon  and  food   arts,  entertainment  and   professional,  scienkfic  and   finance/insurance   retail  and  wholesale  trade   manufacturing   construckon   uklikes   agriculture,  forestry,  fishing   4%   22%   0%   9%   2%   43%   2%   7%   0%   11%   0%   10%   20%   30%   40%   50%     Ninety-­‐five  percent  of  respondents  indicated  that  their  facility  fulfils  a  service  function.    In   addition,    21%  indicated  that  their  facility  serves  a  distribution  fuction.    The  remaining   respondents  indicated  that  their  facility  serves  various  other  functions.   Figure  2:  Function  of  facility   Warehousing   12%   Services   95%   Manufacturing   7%   Headquarters   5%   Engineering  /  R&D   9%   21%   Distribukon   0%   20%   40%   60%   80%   100%     Competition     Eighty-­‐three  percent  of  respondents  reported  that  their  competitors  are  primarily  located  within   the  community  or  region.    Fifty-­‐seven  percent  of  employees  indicated  that  their  competitors  are   located  elsewhere  in  BC.   3       Figure  3:  Location  of  competitors   Internakonal   4%   Elsewhere  in  Canada   2%   57%   Elsewhere  in  BC   Local/regional   83%   0%   20%   40%   60%   80%   100%     When  asked  what  factors  make  their  company  successful  in  the  community,  the  highest  number   of  respondents  (67%)  cited  the  quality  of  their  staff  and  customer  service.    Forty-­‐eight  percent   mentioned  their  length  of  time  in  business  and  thirty  percent  said  their  quality  products  and   service  were  a  key  factor  in  their  success.   Figure  4:  Success  factors   other   local  supply   inveskng  in  new  equipment   niche  market  /  market  share   length  of  kme  in  business   customers  /  reputakon   quality  staff  &  customer  service   diversity,  flexibility/hours  of  operakon  &   quality  products  &  service   locakon  /  proximity  to  markets  or   family  friendly  &  safe   20%   4%   0%   11%   48%   33%   67%   4%   30%   28%   0%   0%   10%   20%   30%   40%   50%   60%   70%   80%     Figure  5:  Key  words  in  respondents’  discussion  of  success  factors   “We’re  a  long  time  business.  Excellent  customer   service.  We  know  our  clients  very  well  and  service   them.”     “Customer  service.  Location  and  a  regular  loyal   clientele”   “Location,  service,  well  run  organization.  Many   repeat  visitors.  We  take  care  of  our  guests  well.”       4       Seventeen  percent  of  interviewed  businesses  indicated  that  their  company  has  a  similar  location   elsewhere  in  Canada  and  5%    indicated  that  their  company  has  a  similar  location  in  another   country.   Figure  6:  Other  similar  locations   Elsewhere  in  World   5%   In  Canada   17%   0%   5%   10%   15%   20%     Age  a nd  L ife  C ycle  S tage   Forty-­‐three  percent  of  businesses  indicated  that  they  are  in  the  “maturing”  stage  of  the  business   life  cycle.    Twenty-­‐eight  percent  indicated  that  they  are  in  the  “growing”  stage  of  the  business  life   cycle.   Figure  7:  Life  cycle  stage   Declining   13%   Maturing  (status  quo)   43%   Growing   28%   15%   Emerging   0%   10%   20%   30%   40%   50%     Fifty-­‐seven  percent  of  the  businesses  interviewed  have  been  in  operation  for  more  than  20  years,   while  9%  of  respondent  businesses  are  less  than  one  year  old.   5       Figure  8:  Length  of  time  in  business   57%   More  than  20  years   17%   10-­‐19  years   7%   5-­‐9  years   11%   1-­‐4  years   9%   Less  than  1  year   0%   20%   40%   60%     Ownership  a nd  M anagement   A  majority  of  respondents  (61%)  indicated  that  their  business  is  registered  as  a  corporation  and   26%  indicated  that  they  are  a  sole  proprietorship.    The  remaining  businesses  are  classified  as   either  a  partnership  (9%)  or  other  type  of  company  (4%).   Figure  9:  Type  of  business   Other   4%   Non-­‐Profit   0%   Limited  Liability  Partnership   0%   Corporakon   61%   Partnership   9%   Sole  Proprietorship   26%   0%   10%  20%  30%  40%  50%  60%  70%     The  vast  majority  of  repondents  (98%)  reported  that  their  company  is  headquartered  in  BC.   Figure  10:  Location  of  headquarters   Internakonal   0%   In  Canada   2%   98%   In  Province   0%   20%   40%   60%   80%   100%   120%     6       Seventeen  percent  of  businesses  reported  that  their  company  has  seen  a  recent  ownership   change,  24%  reported  a  recent  management  change,  and  22%  anticipate  a  change  in  ownership  in   the  near  term.    Of  the  businesses  reporting  a  recent  ownership  change,  all  8  said  the  impact  was   positive.    Of  businesses  reporting  a  recent  change  in  management,  9  said  the  change  was  positive   and  2  said  it  was  neutral.   Figure  11:  Ownership  and  management  changes   Pending  ownership  change   22%   Recent  management  change   24%   17%   Recent  ownership  change   0%   5%   10%   15%   20%   25%   30%     Succession  a nd  B usiness  P lans   Of  the  10  businesses  that  expect  to  see  an  ownership  change  in  the  near  future,  9  indicated  the   process  will  take  three  or  more  years  and  1  thinks  it  will  take  one  year  or  less.   Figure  12:  Anticipated  timeline  for  ownership  change   3  yrs  or  more   9   2  yrs   0   1  yr  or  less   1   0   1   2   3   4   5   6   7   8   9   10     Again,  of  the  respondents  that  anticipate  a  near-­‐term  ownership  change,  1  expects  to  exit  the   business  by  selling  it  to  another  company,  6  expect  to  sell  or  transfer  it  to  another  non-­‐family   individual,  and  1  expects  to  transfer  it  to  a  family  member.       7       Figure  13:  Anticipated  exit  strategy   another  company  sale/ transfer   1   6   non-­‐family  sale/transfer   family  sale/transfer   1   0   1   2   3   4   5   6   7     Of  the  46  businesses  interviewed,  1  has  identified  a  successor  and  only  2  have  reported  that  they   have  a  formal  succession  plan  in  place  and  were  assisted  in  the  development  of  their  plans.   Figure  14:  Existence  of  formal  succession  plan   Yes   5%   No   34%   N/A   61%     Engagement  with  business  planning  is  substantially  stronger  than  that  for  formal  succession   planning—98%  of  businesses  indicated  that  they  have  a  current  business  plan.   Figure  15:  Existence  of  current  business  plan   No   2%   Yes   98%     8       LOCAL  WORKFORCE   Size  o f  W orkforce   The  46  businesses  interviewed  reported  a  total  of  551  employees.    Eighty-­‐three  percent  indicated   that  they  have  less  than  10  employees  and  2%  indicated  they  had  between  50  and  99  employees.   Figure  16:  Total  number  of  employees   100+   0%   50-­‐99   2%   20-­‐49   11%   10-­‐19   4%   5-­‐9   11%   less   than  5   72%   0%   20%   40%   60%   80%     Sixty-­‐four  percent  of  positions  at  surveyed  businesses  are  full-­‐time,  20%  are  part-­‐time,  and  16%   are  temporary.   Figure  17:  Nature  of  employment   Temporary   16%   20%   Part-­‐Time   Full-­‐Time   64%   0%   10%   20%   30%   40%   50%   60%   70%     Seventy-­‐four  percent  of  respondents  indicated  that  the  number  of  employees  at  their  facility  is   about  the  same  as  it  was  10  years  ago.    Over  the  same  time  period,  ten  percent  indicated  that   their  workforce  has  increased  in  size  and  seventeen  percent  reported  that  the  workforce  has   decreased  in  size.   9       Figure  18:  Employment  trend  over  last  10  years   10%   Increased   Stayed  the  same   74%   Decreased   17%   0%   20%   40%   60%   80%     Respondents  reported  a  similar  trend  specific  to  full-­‐time  employment  over  the  last  3  years.    Sixty-­‐ five  percent  of  businesses  indicated  that  the  size  of  their  full-­‐time  workforce  has  remained  the   same,  while  15%  and  20%  of  businesses  reported  an  increase  and  decrease,  respectively.     Figure  19:  Full-­‐time  employment  trend  over  last  3  years   Increased   15%   Stayed  the  same   65%   Decreased   20%   0%   10%   20%   30%   40%   50%   60%   70%     Sixty-­‐one  percent  of  respondents  expect  that  the  size  of  their  full-­‐time  work  force  will  stay  the   same  over  the  next  3  years  and  33%  expect  that  it  will  increase.   Figure  20:  Full  time  employment  trend  over  next  3  years   Increasing   33%   Staying  the  same   Decreasing   61%   7%   0%   10%   20%   30%   40%   50%   60%   70%     10       Employees   Fifty-­‐seven  percent  of  respondents  indicate  the  majority  of  their  essential  employees  are  between   35-­‐49  years  of  age,  and  24%  of  respondents  indicate  that  the  majority  of  their  essential  employees   are  over  50.   Figure  21:  Age  of  the  majority  of  essential  employees   50+   24%   35  to  49   57%   25  to  34   17%   Less  than  25   2%   0%   10%   20%   30%   40%   50%   60%       When  asked  which  issues  they  believed  were  critical  to  their  employees,  respondents  cited  various   areas  of  concern.    Businesses  indicated  that  the  cost  of  living  (89%),  housing  (85%),  and  child  care   (78%)  were  particularly  significant.     Figure  76:  Critical  issues  for  employees   Other   63%   Transportakon   37%   Housing   85%   Cost  of  living   89%   78%   Child  care   0%   20%   40%   60%   80%   100%     The  vast  majority  of  employees  at  interviewed  businesses  live  within  the  community  (93%).    One   business  indicated  that  between  25%  and  49%  of  their  employees  live  outside  the  region.   Wages   When  reporting  on  average  wages  for  skilled  or  professional  workers  in  the  area,  the  highest   number  of  respondents  (46%)  indicated  that  they  pay  between  $30  and  $49  per  hour.    For  semi-­‐ skilled  workers,  the  highest  number  of  respondents  (48%)  indicated  that  they  pay  between  $20   and  $24  per  hour.    For  entry  level  workers,  the  highest  number  of  respondents  (55%)  indicated   that  they  pay  between  $10  and  $12  per  hour.    Twenty  percent  of  businesses  think  that  they  pay   more  than  other  businesses  in  the  area  and  80%  think  they  pay  about  the  same.   11       Figure  22:  Wages  in  relation  to  other  businesses  in  the  region   Greater  than   20%   Same   80%   Less  than   0%   0%   20%   40%   60%   80%   100%     Recruitment  a nd  R etention   The  majority  of  respondents  (76%)  reported  that  the  number  of  unfilled  positions  at  their  facility  is   staying  relatively  constant.   Figure  23:  Trend  in  unfilled  positions   Increasing   10%   Staying  the  same   76%   Decreasing   15%   0%   20%   40%   60%   80%     Ninety-­‐five  percent  of  respondents  indicated  that  they  mainly  recruit  locally,  2%  recruit   provincially,  and  2%  recruit  at  a  national  scale.   Figure  24:  Location  of  workforce  recruitment   Internakonal   0%   Nakonal   2%   Provincial   2%   Local   95%   0%   20%   40%   60%   80%   100%   120%     12       Seventy-­‐three  percent  of  respondents  have  experienced  challenges  recruiting  new  employees  and   72%  have  experienced  challenges  retaining  existing  employees.   Figure  25:  Recruitment  and  retention  challenges   Recrtuitment  Challenges   Retenkon  Challenges   73%   72%   71%   71%   72%   72%   73%   73%   74%     When  asked  what  efforts  their  business  has  undertaken  to  recruit  new  employees,  51%  said  they   rely  on  on  word  of  mouth  advertising,  21%  rely  on  newspaper  advertisements,  and  21%  use  formal   advertising.   Figure  26:  Key  words  in  respondents'  discussion  of  recruitment  activities  “Really  hard  to  find  good  workers  in  the   community.    Owners  are  the  main  full  time   employees.”   “Entry  level  staff  are  always  local  students   that  are  still  in  school.  Once  they  graduate   they  leave  the  area.  So  in  particular  the   casual/seasonal  staff  “change  regularly.     Full  time  staff  not  at  all  very  stable.  Owner   operators  represent  the  most  Full  time.”       “Perception  for  young  mechanics  is  they   make  more  money  in  the  Oil  Patch.  Cannot   get  mechanics  even  though  there  are  jobs   available.    Often  secondary  employment   for  spouse  is  not  available.”   When  asked  what  efforts  have  been  undertaken  by  the  business  to  retain  existing  employees,   respondents  reported  offering  competitive  wages  (5),  providing  employee  training  opportunities   (5),  and  offering  benefits  packages  (4).    Nineteen  respondents  reported  using  “Other”  methods  to   retain  employees.       13       Figure  27:  Key  words  in  respondents'  discussion  of  retention  efforts “Not  a  big  pool  of  local  qualified  workers.     Our  existing  employees  are  great  and  have   worked  for  us  for  a  very  long  time.    New   employees  are  hard  as  there  is  no  loyalty   to  the  business  and  no  real  work  ethic.     Often  do  not  show  up  when  required.  Hard   to  find  dedicated  workers.    The  ones  we   have  we  do  our  best  to  keep  happy  so  they   will  stay.”   “Great  wages  and  benefits.  Great  place  to   work.  Have  been  very  successful  in   recruiting  and  keeping  good  employees.”       The  most  important  current  recruitment  areas  among  surveyed  businesses  include  food  and   beverage  service,  machine  operators,  sales  and  retail,  and  other  areas  not  listed  in  this  survey.   Figure  28:  Current  recruitment  areas   maintenance   hospitality  service   sales/retail   professional  technical   general  labourer   electrical/electronics   material/fabricators   machinists   food/beverage  service   construckon/contractors   other   hair  dressers  /  salon  stylists   sales/service   professional  other   markekng   manufacturing  other   machine  operators   healthcare  professionals   agriculture  /  farming   advanced  mfg  workers   3   4   5   2   3   3   2   2   8   5   22   0   8   5   0   0   8   0   0   0   0   5   10   15   20   25         14       Anticipated  future  recruitment  areas  are  fairly  similar  to  current  recruitment  areas.    Six  businesses   expect  recruitment  challenges  with  food  and  beverage  service  and  5  expect  challenges  with  sales   and  retail.    Seventeen  respondents  expect  recruitment  challenges  in  some  “Other”  recruitment   area.   Figure  29:  Future  recruitment  areas   maintenance   hospitality  service   other   sales/service   sales/retail   material/fabricators   manufacturing  other   machinists   food/beverage  service   electrical/electronics   construckon/contractors   hair  dressers  /  salon  stylists   professional  technical   professional  other   markekng   healthcare  professionals   general  labourer   CDL  drivers/  Class  1  Drivers   agriculture  /  farming   2   1   17   4   5   1   0   2   6   0   3   0   4   3   0   1   3   0   0   0   5   10   15   20     Skills  a nd  T raining   Eighty-­‐four  percent  of  respondents  indicated  that  the  majority  of  their  workforce  is  comprised  of   skilled  or  professional  workers,  54%  indicated  that  they  primarily  employ  semi-­‐skilled  workers  and   10%  indicated  that  their  workforce  is  primarily  composed  of  entry-­‐level  employees.   Figure  30:  Skill  level  of  majority  of  workforce   Entry-­‐Level   10%   Semi-­‐Skilled   54%   Skilled  /  Professional   84%   0%   20%   40%   60%   80%   100%     15       While  59%  of  respondents  indicated  that  their  company  has  a  training  budget,  72%  reported  that   there  are  areas  of  training  or  professional  development  that  would  be  of  benefit  to  their   employees.  Commonly  listed  among  these  areas  were  retail  and  hospitality  (30%),   business/management  (21%),  trades  (18%),  and  “other”  training  needs3.       Figure  31:  Training  or  professional  development  needs   Trades   18%   Retail  &  Hospitality   30%   Administrakve  /  Computer   Skills   12%   First  Aid  /  WHMIS  /  Food  Safe   15%   Equipment  Operators   15%   0%   Technology  Skills   21%   Business  /  Management   36%   Other   0%   5%   10%  15%  20%  25%  30%  35%  40%     Forty-­‐eight  percent  of  businesses  interviewed  prefer  that  their  training  be  delivered  through   individual  coaching,  37%  prefer  in-­‐person  classroom  or  seminar-­‐style  training,  and  16%  prefer   online  training  or  webinars.   Figure  32:  Preferred  modes  of  training   Trade  Shows/Conferences   0%   Apprenkceship   0%   Online  Webinar/Training   16%   Individual  Coaching   48%   37%   Classroom/Seminar   0%   10%   20%   30%   40%   50%                                                                                                                             3  The  majority  of  qualitative  comments  coded  as  ‘other’  included  specific  areas  or  skilled  such  as   Hygienists,  marketing,  fallers,  door  &  window  installation,  improved  work  ethic,    health  &  wellness.   16       The  highest  number  of  respondents  (59%)  reported  that  they  primarily  attend  local  training   opportunities.    Twenty-­‐nine  percent  undertake  training  within  the  region  and  12%  attend  training   in  other  areas  of  BC.   Figure  33:  Usual  training  locations   United  States   0%   Nakonal   0%   Provincial   12%   Regional   29%   Local   59%   0%   10%   20%   30%   40%   50%   60%   70%     SALES   Market  S ize  a nd  S hare   Forty-­‐three  percent  of  respondents  reported  that  the  market  for  their  product  or  service  is   increasing,  33%  indicated  that  it  was  stable,  and  24%  said  it  was  decreasing.   Figure  34:  Status  of  market  for  product/service   Increasing   43%   Stable   “We  have  had  a  significant  growth  in   the  last  year  and  will  continue  to  do   so.    We  continue  to  see  growth  from   our  local  market  as  our  product  has   improved  substantially.”   33%   Decreasing   24%   0%   10%   20%   30%   40%   50%         Half  of  survey  respondents  reported  that  the  market  share  for  their  product  or  service  is  stable,   while  41%  indicated  that  it  was  increasing.  While  the  majority  of  respondents  indicate  the  status   of  the  market  for  their  product  and  /  or  service  is  stable  or  increasing  (76%),  some  qualitative   comments  also  detail  the  impact  on  sales  of  ferry  delays,  mine  closures,  and  the  closure  of  the   Music  Fest.         17         Figure  35:  Status  of  market  share   “Ferry  delays  (lots  of  them  in  summer)  long  line  ups   affect  the  number  of  people  coming  through  the   community.    Due  to  downturn  in  economy,  closure  of   Roca  mines  and  the  closure  of  Music  Fest  we  have  had   less  tourists  through  the  area  the  last  2  years.  Seems  to   be  a  lot  driving  through  the  community  but  not   staying.”   41%   Increasing   Stable   50%   Decreasing   “We’ve  seen  a  drop  in  sales  as  the  tourists  have  not   been  coming  to  our  community  as  much.  Music  Fest   closure  impacted  the  June  to  Sept  peak  period  a  lot.     Usually  the  Peak  periods  cover  the  costs  for  the  year.     9%   0%   20%   40%   60%       Has  been  a  real  challenge  the  last  few  years.”     Growth   Most  surveyed  businesses  project  low  to  moderate  growth  in  sales  over  the  coming  year.    Fifty-­‐ five  percent  of  expect  to  see  growth  of  between  1  and  9%.  Only  5%  expect  sales  to  decline.   Figure  36:  Projected  sales  growth  over  next  year   100%+   50-­‐99%   25-­‐49%   10-­‐24%   1-­‐9%   0%   declining   0%   5%   2%   19%   55%   14%   5%   0%   10%   20%   30%   40%   50%   60%     Forty  percent  of  respondents  indicated  that  their  sales  have  increased  historically,  33%  reported   that  sales  have  stayed  stable,  and  27%  indicated  that  sales  have  declined  over  time.   Figure  37:  Historic  sales  trend  at  facility   Increased   40%   Stayed  the  same   33%   Declined   27%   0%   10%   20%   30%   40%   50%     18       For  the  8  businesses  that  have  a  parent  company,  38%  indicated  that  their  parent  company’s  sales   have  increased,  50%  reported  their  sales  have  remained  stable,  and  13%  indicated  a  decrease  in   sales  over  time.   Figure  38:  Historic  sales  trend  at  parent  company   Increasing   38%   Staying  the  Same   50%   13%   Declining   0%   10%   20%   30%   40%   50%   60%     The  historic  sales  trend  for  respondents’  respective  industries  is  less  positive.    Thirty-­‐percent  of   businesses  indicated  that  sales  have  increased,  26%  indicated  that  they  have  been  stable  and  35%   indicated  that  they  have  been  in  decline.   Figure  39:  Historic  sales  trend  in  industry   Increased   28%   Stayed  the  same   26%   35%   Declined   0%   10%   20%   30%   40%     Of  the  21  businesses  that  engage  in  export  activities4,  43%  reported  that  their  export  sales  have   been  increasing  over  time,  29%  reported  that  they  have  been  stable,  and  29%  reported  that  they   have  been  declining.    It  is  interesting  to  note  that  only  2  companies  reported  to  having   international  export  trade  status.   Figure  40:  Historic  export  sales  trend   Increasing   43%   Staying  the  Same   29%   Declining   29%   0%   10%   20%                                                                                                                           30%   40%   50%     4  A  number  of  hospitality  businesses  responded  to  the  Historic  Export  Sales  Trend  Question,  explaining   the  high  number  of  respondents  for  this  question  compared  to  data  indicating  only  2  businesses  have   international  trade  status   19         Source  o f  S ales   Data  indicate  that  Nakusp  businesses  have  a  diverse  customer  base,  with  78%  of  respondents   indicating  that  less  than  10%  of  their  sales  are  generated  by  their  top  three  customers.   Figure  41:  Component  of  sales  generated  by  top  3  customers   76-­‐100%   8%   51-­‐75%   0%   26-­‐50%   8%   10-­‐25%   5%   1-­‐9%   78%   0%   20%   40%   60%   80%   100%     Nakusp  businesses  also  appear  to  be  relatively  dependent  on  local  markets.    60%  of  repsondents   indicate  that  the  majority  of  their  sales  are  to  local  customers.   Figure  42:  Geographic  source  of  majority  of  sales   Internakonal   2%   US   5%   Nakonal   5%   Provincial   28%   Local   60%   0%   10%   20%   30%   40%   50%   60%   70%     Purchasing   Nakusp  businesses  source  the  majority  of  their  supplies  provincially  (58%),  locally  (55%),  or   nationally  (16%).   Figure  42:  Geographic  source  of  majority  of  suppliers   Internakonal   2%   US   2%   Nakonal   16%   42%   Provincial   Local/Regional   37%   0%   10%   20%   30%   40%   50%     20       When  reflecting  on  their  reasons  for  purchasing  supplies  from  out-­‐of-­‐area  businesses,  the  highest   number  of  respondents  (66%)  stated  that  the  products  they  needed  are  not  available  in  the   region.    Several  others  (16%)  cited  the  quality  of  products  available  locally  as  a  reason  for  out-­‐of-­‐ area  purchasing.   Figure  43:  Reason  for  out-­‐of-­‐area  purchasing   Other   Relakonship  with  current   Unaware  of  local  vendors   No  control/Head  office   Higher  costs  locally   Quality  of  product   Product  not  available   5%   0%   0%   8%   11%   16%   66%   0%   20%   40%   60%   80%     Procurement   Ninety-­‐one  percent  indicated  that  they  do  not  engage  in  government  procurement  processes.   Figure  44:  Engagement  with  government  procurement  processes   Yes,   9%   No,   91%     Forty-­‐two  percent  of  businesses  interviewed  reported  that  they  acquire  50%  or  more  of  their   supplies  from  sources  from  elsewhere  in  BC.    Only  1%  of  respondents  indicated  that  they  purchase   a  majority  of  supplies  from  local  sources.   Figure  45:  Geographic  source  of  majority  of  supplies   Internakonal   2%   US   2%   Nakonal   16%   42%   Provincial   Local/Regional   1%   0%   10%   20%   30%   40%   50%       21       FACILITIES  AND  EQUIPMENT   Size  a nd  C ondition   The  highest  number  of  respondents  (56%)  have  facilities  that  are  between  1,000  and  4,999  square   feet  in  their  size.    Twenty-­‐six  percent  of  respondents  reported  a  facility  of  less  than  1,000  square   feet.   Figure  46:  Size  of  facility   20,000  sq  t  or  more   10,000  to  19,999  sq  t   5000  to  9999  sq  t   1000  to  4999  sq  t   less  than  1000  sq  t   0   10%   3%   5%   56%   26%   0%   0%   10%   20%   30%   40%   50%   60%       Seventy-­‐four  percent  of  businesses  indicated  that  their  facility  is  in  good  or  excellent  condition.     Notably,  no  respondents  indicated  that  their  facility  is  in  poor  condition.   Figure  47:  Condition  of  facility   Excellent   16%   58%   Good     Fair   Poor   27%   0%   0%   20%   40%   60%   80%     Similarly,  82%  of  businesses  indicated  that  their  equipment  is  in  good  or  excellent  condition.   Figure  48:  Condition  of  equipment   Excellent   13%   69%   Good     Fair   16%   2%   Poor   0%   20%   40%   60%   80%       22       Shifts   Most  businesses  (68%)  operate  one  shift  per  day.  Twenty-­‐six  percent  operate  two  shifts  and  6%   operate  24  hours  per  day.   Figure  49:  Number  of  shifts   24  Hours   6%   Two  Shits   26%   One  Shit   68%   0%   20%   40%   60%   80%     Ownership   Eighty-­‐two  percent  of  respondents  own  their  facility  and  18%  lease  it.   Figure  50:  Ownership  status  of  facility   Leased   18%   Owned   82%     Of  businesses  leasing  their  facility,  63%  have  one  to  two  years  remaining  on  their  lease  agreement.     Seventy-­‐eight  percent  of  respondents  plan  to  renew  the  lease  for  their  current  facility.   Figure  51:  Length  of  time  remaining  on  lease   More  than  5  Years   0%   3-­‐5  Years   25%   1-­‐2  Years   63%   less  than  1  Year   13%   0%   20%   40%   60%   80%     23       Investment  a nd  E xpansion   Sixty-­‐three  percent  of  respondents  reported  that  investment  in  their  facility  has  remained  stable   over  the  last  18  months  and  28%  reported  that  it  has  increased.   Figure  52:  Investment  in  facility  (past  18  months)   Increased   28%   Stayed  the  same   63%   Decreased   9%   0%   20%   40%   60%   80%     Similarly,  62%  of  respondents’  investment  in  equipment  have  remained  stable  over  the  last  18   months,  while  33%  indicated  that  it  has  increased.    Only  4%  indicated  that  it  has  declined.   Figure  53:  Investment  in  equipment  (past  18  months)   Increasing   33%   Staying  the  Same   62%   Decreasing   4%   0%   20%   40%   60%   80%     Of  the  businesses  interviewed,  37%  report  plans  to  expand  within  3  years.    Of  those  businesses,   the  majority  (94%)  plan  to  expand  within  the  Nakusp  area.    In  terms  of  timeframe  for  expansion,   46%  expect  the  process  to  take  between  1  and  3  years,  31%  plan  to  expand  within  1  year,  and  23%   believe  they  will  take  more  than  3  years  to  expand.   Figure  54:  Plans  to  expand  within  three  years   No   63%   Yes   37%     24       Of  the  businesses  planning  a  near  term  expansion,  76%  reported  that  their  current  site  will  be   adequate.    Four  businesses  (24%)  indicated  that  they  will  need  to  find  a  new  site  to  support  their   expansion  needs.   Figure  55:  Adequacy  of  current  site  to  support  expansion   No   24%   Yes   76%     Respondents  cited  a  variety  of  factors  as  barriers  to  their  expansion.    Most  common  were  local   regulations/zoning  (20%),  a  lack  of  skilled  staff  (18%),  energy  costs  (12%),  transport/freight  (10%),   and  roads  (10%).   “Would not know where to move location as no industrial lots available. No motivation by area leadership to develop this area, even though there is a good demand.” Figure  56:  Barriers  to  expansion  of  business   Transport/Freight   Real  Estate  Costs   Warehousing   Roads   Local  Regulakons  (Zoning)   Lack  of  Skilled  Staff   Financing   Energy  Costs   Problems  with  Development   Lack  of  Suitable  Premises   Idenkfying  /  Accessing  New   Energy  Reliability   Broadband  Access   “We  would  like  to  expand  as  we  have   the  demand  for  it.  However,  we  need   the  skilled  labor  and  the  will  from   local  govt  to  cut  red  tape  and   regulations  in  order  to  proceed.”   10%   0%   1%   10%   20%   18%   “Would  expand.  By  laws  and  OCP  does   not  allow.  No  flexibility  what  so  ever.  “     4%   12%   1%   5%   6%   7%   6%   0%   5%   10%   15%   20%   25%     “Energy  costs  are  through  the  roof.   Have  done  everything  we  can  to  be   efficient.  There  is  no  competition  so   we  are  at  the  mercy  of  Hydro.    Really   hard  to  earn  enough  to  do  required   repairs  and  maintenance  of  building.   No  need  to  expand.”   Ten  businesses  have  sought  assistance  with  their  expansion  plans.    Of  those  respondents,  7  have   approached  their  local  government,  3  have  approached  the  BC  Ministry  responsible  for  Economic   Development,  2  have  approached  BC  Hydro,  1  has  approached  Community  Futures,  and  3  have   approached  other  groups  or  organizations.    See  Appendix  B  for  further  details.   25       Figure  57:  Expansion  assistance  sought   No   57%   Yes   43%     Energy  E fficiency   A  majority  of  respondents  (83%)  are  considering  energy  efficiency  in  their  expansion  plans.   Figure  58:  Considering  energy  efficiency  in  expansion  plans   No   17%   Yes   83%     Eighty-­‐two  percent  of  businesses  are  aware  of  the  energy  efficiency  resources  made  available   through  the  BC  Hydro  Power  Smart  program.   Figure  59:  Awareness  of  BC  Hydro  Power  Smart   No   18%   Yes   82%         26       GOVERNMENT  SERVICES   Respondents  were  asked  to  rate  a  list  of  government  services  as  excellent,  good,  average,  fair  or   poor.    Respondents  also  had  the  option  of  indicating  that  a  service  is  not  applicable  to  their   business.    The  services  that  received  the  highest  number  of  excellent  or  good  ratings  include   access  to  highways/roadways  (69%),  access  to  markets  (65%),  recycling  (48%),  and  disposal  of   waste  material  (48%).    Services  that  received  the  highest  number  of  fair  or  poor  ratings  include   availability  of  road  transport  services  (87%),  development  approval  processes  (78%),  and   telecommunications  (76%).    Services  that  the  most  respondents  thought  are  not  applicable  to   their  business  include  availability  of  rail  transport  services  (98%),  access  to  airport  facilities  (61%),   and  availability  of  warehousing  (57%).   Figure  60:  Rating  of  government  services   Water  and  sewerage   supply   Availability  of   appropriately  zoned  land   Availability  of  buidings   Telecommunicakons   Development  approval   process   18%   7%   37%   9%   37%   24%   13%   15%   2%   Availability  of  rail   transport   0%   2%   Access  to  highways/ roadways   Access  to  airport  facilikes   Good  or   Excellent   48%   41%   57%   “An  industrial  Park  is  very  m uch   needed  and  would  provide  the  much   needed  space  for  expansion  and   growth  of  our  business  along  with   that  of  others  in  the  community.“   N/A   87%   0%   30%   4%   0%   2%   Poor  or   Fair   98%   13%   0%   “Municipality  must  be  more   proactive  in  assisting  businesses.     Must  be  cooperative  and  look  for   solutions  rather  than  putting  up   barriers.    Need  to  have  someone   dedicated  to  Economic   Development.”   54%   48%   37%   30%   22%   Availability  of   warehousing   Access  to  markets   76%   78%   33%   Disposal  of  waste  material   Access  to  suppliers   54%   13%   Recycling   “Ferry  System  needs  to  be  much   more  efficient  in  Peak  tourist  season,   this  is  where  we  actually  make  our   living.    Would  make  the  delivery  of   goods  m uch  cheaper.”   57%   0%   9%   Inspeckons  (e.g.,   licensing)   Availability  of  road   transport  services   38%   44%   35%   31%   37%   65%   “Cellular  phone  coverage  is  needed   throughout  the  district.  Not  available   in  a  lot  of  areas.  This  also  affects  the   Internet  availability  and  broadband   components  as  well”.   65%   69%   61%   0%   20%   40%   60%   80%  100%     27       When  asked  to  provide  suggestions  on  how  to  improve  government  services,  the  highest  number   of  respondents  (86%)  indicated  that  ferry  services  should  be  a  focus  area.    Thirty-­‐eight  percent   also  indicated  that  utilities  services  needed  improvement.   Figure  61:  Suggested  improvements  to  government  services   Freight  and  Couriers   11%   Airports   5%   Recycling  and  Waste   Management   2%   Water  and  Sewer   0%   Telecommunicakons   Taxes   Approvals  and  Permits   “Must  ensure  that  the  Ferry  service  stays  stable.   Getting  goods  to  and  from  markets  critical  for  our   business.”     14%   Power  Outages  always  seem  to  happen  at  the  most   Inconvenient  time  and  have  been  lasting  for  longer   periods.  We  pay  a  big  amount  to  Hydro  for  our  power,   we  need  better  systems.”   5%   14%   Ferry  Services   Road  Quality   “Need  to  make  it  easier  for  folks  to  get  here  both  for   tourism  and  if  they  are  wanting  to  start  a  business.     The  Ferry  system  must  be  maintained  and  improved  if   we  are  wanting  more  people  to  move  to  the  area.  The   delays  and  waits  are  negative  to  potential  buyers  who   would  like  to  relocate  to  our  area.”       36%   Uklikes   86%   “Cellular  phone  coverage  is  needed  throughout  the   district.  Not  available  in  a  lot  of  areas.  This  also   affects  the  Internet  availability  and  broadband   components  as  well.”   7%   0%   20%   40%   60%   80%  100%                             28       BUSINESS  CLIMATE     Respondents  rated  a  list  of  business  climate  factors  as  excellent,  good,  fair  or  poor.    Factors  that   received  the  highest  number  of  excellent  or  good  ratings  include  K-­‐12  education  (59%)  and   cultural/recreational  amenities  (48%).    Factors  that  received  the  highest  number  of  fair  or  poor   ratings  include  economic  development  (98%)  and  local  government  (96%).   Quality  o f  B usiness  C limate     Figure  62:  Business  climate  factors   Workforce  Quality   4%   Workforce  Stability   4%   13%   Local  Government   0%   4%   Cultural  /   Recreakonal   Housing   K-­‐12  Educakon   83%   96%   0%   52%   48%   0%   11%   7%   89%   35%   59%   Workforce   Availability   2%   7%   91%   Overall  Business   Climate   0%   9%   91%   22%   20%   Workers   Compensakon  Rates   Local  Tax  Structure   4%   7%   Economic   Development   0%   2%   Provincial  Tax   Structure   7%   13%   Technical  Training   Colleges  /   Universikes   “Community  is  not  overly   welcoming  to  new  ideas.  Does  not   promote  entrepreneurial  ventures.   In  fact  often  m akes  the  process   hard  and  inefficient  with  no  real   desire  to  help  or  offer  alternate   solutions.  We  have  to  do  a   business  plan,  community  should   do  one  as  well.    Needs  someone   who's  dedicated  job  is  economic   development.       57%   39%   7%   9%   0%   No   Opinion   Fair  or   Poor   “Was  a  challenge  to  understand  all   the  rules  and  regulations  needed   to  open  store  front.    Everyone   "busy"    did  not  get  assistance  with   all  the  paper  work.  Often  calls  not   returned  had  to  make  many  phone   calls  to  get  attention.    Was  told  it   was  up  to  m e  to  figure  it  out.   Would  be  helpful  to  have  someone   who  would  assist  and  care  about   new  businesses.”   Excellent   or  Good   59%   89%   98%   80%   37%   57%   “Lack  of”  skilled  workers  to  pull   from  for  jobs,  no  training   availability  for  those  who  are   trainable.”   89%   0%  20%  40%  60%  80%  100%         29       Over  half  of  respondents  (59%)  felt  that  the  Nakusp  business  climate  is  worse  today  than  it  was  5   years  ago.  Twenty-­‐two  percent  thought  it  was  better.   Figure  63:  Business  climate  today  vs.  5  years  ago   No  opinion   9%   Worse  today   59%   No  change   11%   22%   Bever  today   0%   10%   20%   30%   40%   50%   60%   70%     The  majority  of  respondents  (53%)  are  optimistic  that  the  business  climate  will  be  better  in  5   years.    Thirteen  percent  thought  it  will  be  worse.   Figure  64:  Business  climate  5  years  from  today   4%   No  opinion   Will  be  worse   13%   No  change   29%   Will  be  bever   53%   0%   10%   20%   30%   40%   50%   60%     Business  C ompetitiveness  a nd  P roductivity   From  a  list  of  business  competitiveness  factors,  those  that  received  the  highest  number  of   somewhat  important  or  very  important  ratings  include  new  market  development  locally  (93%)  and   workforce  skill  development  (91%).    Those  that  received  the  highest  number  of  not  very  important   or  not  important  at  all  ratings  include  availability  of  telecommunications  infrastructure  and   services  (31%)  and  water/sewer  availability  (28%).    The  factors  that  most  businesses  thought  are   not  applicable  to  their  business  include  access  to  exporting  and  international  markets  (78%)  and   accessing  capital  (64%).   30       Figure  65:  Business  competitiveness  factors   62%   Business  Management   Accessing  Capital   Canadian  Dollar  Exchange  Rate   Availbility  of  Telecommunicakons   Improvement  of  Customer   Affordable  Shipping/Freight   Reliable  Air  Transportakon   Water/Sewer  Costs   Water/Sewer  Availability   Energy  Costs   Workforce  Skill  Development   Workplace  Health  and  Safety   Expansion  of  Workforce   Worker  Produckvity   Strategic  Alliances   Add  or  Change  in  Business,   Access  to  Exporkng  and   New  Market  Development   New  Market  Development  Locally   New  Product  R&D   27%   40%   69%   84%   78%   9%   64%   30%   80%   91%   64%   56%   62%   84%   64%   Somewhat   important  or   very   important   Not  important   at  all  or  not   very   important   11%   40%   93%   84%   0%   50%   100%     Economic  D rivers   Respondents  were  asked  to  choose,  from  a  list  of  economic  drivers,  those  that  they  think  have  the   most  growth  potential  over  the  next  5  to  10  years.       Figure  66:  Economic  drivers  with  greatest  growth  potential   Other   Agriculture   Other  Niche  Service  Businesses   Construckon   Finance   Green  /  Environmental  Businesses   Government   Relocakon  of  People  from  Urban   Health  &  Wellness   Arts,  Culture  &  Creakve  Businesses   Technology-­‐based  businesses   Tourism   Educakon   Manufacturing   Forestry   0%   2%   2%   0%   0%   0%   0%   17%   7%   2%   11%   26%   0%   2%   15%   0%   5%   10%   15%   20%   25%   30%     31       Factors  that  received  the  highest  number  of  votes  include  tourism  (26%),  relocation  of  people   from  urban  centres  (17%),  and  forestry  (15%).    Notably,  no  respondents  thought  that  the   construction,  finance,  green/environmental  businesses,  government,  or  education  sector  have   high  potential  for  growth  over  the  near  term.   Strengths  a nd  W eaknesses  o f  B usiness  C limate   When  asked  to  list  the  community’s  strengths  as  a  place  to  do  business,  the  highest  number  of   respondents  (89%)  cited  location.    Also  commonly  mentioned  were  lifestyle  (43%)  and   culture/sense  of  community  (22%).    For  a  full  list  of  response  themes,  see  Appendix  B.   Figure  67:  Key  words  in  respondents’  discussion  of  the  community’s  strengths  as  a  place  to  do  business “Location.  We  have  wonderful  natural  beauty  and   views.    The  life  style  is  very  laid  back.    Can  still   basically  leave  your  car  unlocked.    A  good   community,  the  people  are  great.”   “Personal  touch,  businesses  really  try  to  know  your   name  and  needs.    Cooperation  from  the  businesses   is  excellent.    I’m  actually  surprised  at  the   availability  of  supplies  etc..”       “People  want  to  live  here.  Access  to  excellent  fibre   supply.  great  outdoor  facilities  and  indoor  sports   facilities  for  a  small  community.    NO  RUSH  HOUR.     Wonderful  location  to  raise  a  family.”       When  asked  to  list  the  community’s  weaknesses  as  a  place  to  do  business,  the  highest  number  of   respondents  (38%)  spoke  of  government/approvals.    Other  commonly  cited  weaknesses  include   the  size  of  the  community/population  (29%),  infrastructure  (24%),  and  attitudes  toward  change   and  growth  in  the  community  (20%).   32       Figure  68:  Key  words  in  respondents'  discussion  of  the  community’s  weakness  as  a  place  to  do  business “Lack  of  good  jobs.    Current  businesses  often  overlooked   when  folks  are  looking  for  goods  and  services.”    “  Often  business  owners  have  to  work  other  jobs  to  keep   their  businesses  a  float.    Very  hard  to  actually  make  a   reasonable  living.  Dual  incomes  needed.”   “Not  enough  people  to  drive  the  economy.  Village   leadership  not  focusing  on  development.    Not  seen  as  their   job.    Who's  job  is  it?”     “Very  dependent  on  one  major  industry-­‐  logging.    A  new   business  owner  must  be  made  aware  that  they  need  to   prepare  for  the  slow  winter  months  Jan/Feb/Mar  as  there   are  so  few  people  locally  need  to  really  plan  financing  etc.   through  the  Peak  times  to  make  sure  bills  are  paid  in  the   slow  time.”   When  asked  to  discuss  key  barriers  to  growing  the  community’s  economy,  the  highest  number  of   respondents  (73%)  cited  problems  with  infrastructure.    Thirty  percent  of  businesses  also   mentioned  the  population/market  size.   Figure  69:  Barriers  to  growth  in  the  community’s  economy   Other   18%   Housing   2%   Locakon   2%   Government/zoning   25%   Infrastructure   73%   Demographics   11%   Populakon/market  size   30%   Exiskng  industry/economy   27%   Awtude  towards  change/ 9%   0%   20%   40%   60%   80%     Twenty-­‐two  percent  of  respondents  felt  it  is  important  to  attract  certain  suppliers  and  83%  of   respondents  felt  it  is  important  to  attract  certain  customers  to  the  region.    The  customers  that   respondents  commonly  listed  include  tourists/amenity  migrants  (19  respondents),  businesses   from  elsewhere  (8),  young  people  (2),  seniors  (1),  and  agriculture/wineries  (1).   33       Figure  70:  Key  words  in  respondents’  discussion  of  customers  to  attract  to  the  area “Albertans  that  want  to  retire  here.    They  are   the  ones  who  are  actually  using  our  services   the  most.”   “Actively  pursue  tour  operators  who  would  in   turn  bring  more  tourism  through  the  area.”   “Relocation  of  people  who  want  a  more   relaxed  community.”   “Young  families  that  can  earn  income  through   technology.”     ASSESSMENT  AND  PLANS   Overall  H ealth   Sixty-­‐four  percent  of  respondents  indicated  that  the  overall  health  of  their  company  is  good,  18%   indicated  it  is  excellent,  16%  indicated  it  is  fair,  and  2%  indicated  it  is  poor.   Figure  71:  Company's  overall  health   Excellent   18%   Good   64%   Fair   16%   Poor   2%   0%   20%   40%   60%   80%     Of  the  10  businesses  with  a  parent  company,  the  majority  (54%)  reported  that  the  health  of  their   parent  company  is  good.   34       Figure  72:  Overall  health  of  parent  company   Excellent   38%   Good   54%   8%   Fair   Poor   0%   0%   20%   40%   60%     Attitude  toward  C ommunity   Seventy-­‐four  percent  of  respondents  reported  that  their  local  management’s  attitude  toward  the   community  is  excellent.    Another  17%  reported  that  it  is  good.   Figure  73:  Local  management's  attitude  toward  community   Excellent   74%   Good   17%   Fair   9%   Poor   0%   Not  applicable   0%   0%   20%   40%   60%   80%     Of  the  10  relevant  respondents  with  parent  companies,  80%  indicated  that  their  parent  company’s   attitude  toward  the  community  is  excellent  and  17%  reported  that  it  is  good.   Figure  74:  Parent  company's  attitude  toward  local  community   Excellent   80%   Good   20%   Fair   0%   Poor   0%   0%   20%   40%   60%   80%   100%         35       Risk  o f  C losing  o r  D ownsizing   Eighty-­‐seven  percent  of  businesses  interviewed  reported  that  the  risk  of  their  facility  closing  over   the  next  one  to  three  years  is  low.   Figure  75:  Risk  of  facility  closing   High   4%   Moderate   9%   Low   87%   0%   20%   40%   60%   80%   100%     Similarly,  a  significant  majority  of  respondents  (78%)  indicated  that  the  risk  of  their  facility   downsizing  over  the  next  one  to  three  years  is  low.   Figure  76:  Risk  of  facility  downsizing   High   7%   Moderate   16%   Low   78%   0%     20%   40%   60%   80%   100%       36       RECOMMENDATIONS   NEXT  STEPS   The  results  of  this  survey  can  be  used  by  economic  development  organizations  in  the  Nakusp  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,  a   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  Official  Community  Plans  (OCPs).    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  support  links  to  planning  and  action:   1. Prepare  a  follow-­‐up  report  compiling  current  research  findings  alongside  other  relevant   regional  economic  development  research  to  identify  common  themes  and  further  develop   recommended  actions.   2. Host  a  business  stakeholder  forum  to  present  findings  and  prioritize  actions.     3. Host  a  facilitated  action  planning  session  with  economic  development  stakeholders  and   industry  representatives.   4. Based  on  results  from  the  forums  and  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.   5. Establish  a  monitoring  program  to  assess  the  impact  of  implementation  efforts.   POTENTIAL  ACTION  AREAS   Business  E xpansion   Nakusp  businesses  are  planning  significant  investment  in  expansion  over  the  near  term,  with   substantial  spending  focused  on  real  estate  and  equipment/  technology.  Since  many  businesses   indicated  that  they  will  need  a  new  site  to  meet  their  expansion  needs  or  identified  a  lack  of   37       suitable  premises  as  a  barrier  to  expansion,  this  trend  could  strengthen  if  businesses  were  assisted   in  gaining  access  to  appropriate  sites  for  expansion.    As  such,  actions  on  this  theme  may  involve   assisting  in  the  identification  of  potential  expansion  sites  and  educating  businesses  of  the  types  of   expansion  support  available  from  external  organizations.    In  addition,  as  local  government  “red   tape”  and  inefficient  approval  processes  were  often  cited  as  a  barrier  to  economic  development,   efforts  to  improve  the  collaboration  between  businesses  and  local  government  should  be   undertaken,  as  to  ensure  approval  processes  meet  the  needs  of  local  businesses  (see   ‘Government  S ervices’,  below).   Succession  P lanning   Business  and  succession  planning  are  critical  to  the  health  and  longevity  of  businesses,  yet  only  5%   of  respondents  indicated  that  they  have  a  formal  succession  plan  in  place.  Since  a  significant   number  of  businesses  reported  a  pending  change  in  ownership,  the  need  for  assistance  in   succession  planning  is  particularly  pressing.    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  more  targeted,  one-­‐on-­‐one   assistance  program  could  result  in  greater  overall  benefit  by  providing  a  higher  level  of  support  to   ‘at-­‐risk’  businesses.  These  opportunities  should  be  aggressively  advertised  to  ensure  uptake   among  local  businesses.   Government  S ervices   Approvals,  regulations  and  taxes  administered  by  various  levels  of  government  were  often  cited  by   respondents  as  factors  that  inhibit  business  activity  in  the  region.  Additional  research  on  this   theme  could  help  further  inform  the  exact  nature  of  businesses’  perceptions  regarding  the   regulatory  barriers  to  their  growth.  Sharing  the  results  of  this  research  with  governing  bodies   could  help  them  understand  how  they  can  better  support  business  activities  in  Nakusp.   Supply  S ourcing   While  only  1%  of  respondents  indicated  they  purchase  the  majority  of  their  supplies  from  local  or   regional  suppliers,  a  majority  sell  primarily  to  local  customers.  Combined,  these  two  findings   indicate  that  businesses’  purchasing  policies  may  have  significant  impact  on  the  Nakusp  economy.     Though  most  respondents  indicated  that  their  reason  for  out-­‐of-­‐area  purchasing  is  the  availability   of  necessary  supplies,  additional  research  on  this  theme  could  help  determine  if  there  are  in  fact   opportunities  to  address  some  of  the  barriers  to  buying  locally.   Recruitment  Initiatives     Over  two  thirds  of  the  businesses  interviewed  reported  that  they  have  experienced  challenges   recruiting  new  employees,  particularly  machine  operators  and  sales/service  personnel.      In   addition,  a  similar  number  of  respondents  indicated  challenges  retaining  their  employees.    As   such,  actions  on  this  theme  could  involve  assisting  businesses  with  recruiting  further  afield  (as   respondents  primarily  recruit  locally),  focusing  recruitment  efforts  on  tourists/amenity  migrants   and  businesses  from  other  areas  (two  key  ‘customers  to  attract’  as  identified  by  respondents),  and   promoting  the  factors  that  respondents  identified  as  strengths  of  doing  business  in  Nakusp  (e.g.,   location,  lifestyle,  culture/sense  of  community).    In  terms  of  retaining  employees,  as  responses   38       discussing  this  issue  were  extremely  varied,  additional  research  on  this  theme  may  provide  greater   insight  into  businesses’  retention  challenges.   Training  O pportunities   A  lack  of  skilled  staff  was  commonly  cited  as  a  barrier  to  expansion  of  businesses  and  the  vast   majority  of  respondents  identified  workforce  skill  development  as  important  to  the   competitiveness  of  their  business.    The  professional  development  “areas  for  improvement”  most   often  listed  by  businesses  include  retail  and  hospitality,  business/management,  and  trades.  Uptake   on  training  opportunities  can  be  low  in  the  region  due  to  the  limited  time  and  financial  resources   available  to  the  types  of  businesses  that  characterize  the  Nakusp  area  (generally,  few  employees   and  often,  no  funds  dedicated  to  training).  Therefore,  any  actions  on  this  theme  must  consider   business  schedules  and  training  budgets.  Educational  and  training  institutions  in  the  region  could   be  approached  as  potential  collaborators  in  meeting  businesses’  training  needs.     Infrastructure   Throughout  the  survey,  Nakusp  businesses  highlighted  infrastructure  as  a  particular  area  of   concern.    Energy  and  transportation  infrastructure  were  commonly  mentioned  as  the  most   significant  barriers  to  growth  in  the  community.    In  addition,  regular  power  outages  and  limited   ferry  services  have  had  serious  implications  on  the  Nakusp  business  community.    While  immediate   actions  for  this  theme  are  unclear,  additional  research  could  help  further  inform  the  exact  nature   of  businesses’  perception  regarding  infrastructure  and  help  determine  if  there  opportunities  to   address  this  barrier  to  growth.               39       APPENDIX  A:  DATA  TABLES   COMPANY  INFORMATION     Industry  Classification   agriculture,  forestry,  fishing  and  mining   5   11%   utilities   0   0%   construction   3   7%   manufacturing   1   2%   retail  and  wholesale  trade   20   43%   finance/insurance   1   2%   professional,  scientific  and  technical  services   4   9%   arts,  entertainment  and  recreation   0   0%   accommodation  and  food  service   10   22%   other  services   2   4%   Total   46   100%     Location  of  Competitors   Local/regional   38   83%   Elsewhere  in  BC   26   57%   Elsewhere  in  Canada   1   2%   International   2   4%   Unique  Respondents   67               40       Success  Factors   family  friendly  &  safe   0   0%   location  /  proximity  to  markets  or  amenities   13   28%   quality  products  &  service   14   30%   diversity,  flexibility/hours  of  operation  &  prices   2   quality  staff  &  customer  service   31   67%   customers  /  reputation   15   33%   length  of  time  in  business   22   48%   niche  market  /  market  share   5   11%   investing  in  new  equipment   0   0%   local  supply   2   4%   other   9   20%   Unique  respondents   46       4%     Life  Cycle  Stage   Emerging   7   15%   Growing   13   28%   Maturing  (status   quo)   20   43%   Declining   6   13%   Total   46   100%     Ownership  Status   Private   44   98%   Public   1   2%   Total   45   100%   41         Type  of  Company   Sole  Proprietorship   12   26%   Partnership   4   9%   Corporation   28   61%   Limited  Liability  Partnership   0   0%   Non-­‐Profit   0   0%   Other   2   4%   Total   46   100%     Location  of  Headquarters   In  Province   45   98%   In  Canada   1   2%   International   0   0%   Total   46   100%     Length  of  Time  in  Business   Less  than  1  year   4   9%   1-­‐4  years   5   11%   5-­‐9  years   3   7%   10-­‐19  years   8   17%   More  than  20  years   26   57%   Total   46   100%         42       Function  of  Facility           Distribution   9   21%   Engineering  /  R&D   4   9%   Headquarters   2   5%   Manufacturing   3   7%   Services   41   95%   Warehousing   5   12%   Unique  respondents   64         Other  Similar  Locations   In  Canada   8   17%   Elsewhere  in  World   2   5%     Ownership  and  Management  Changes   Recent  ownership  change   8   17%   Recent  management  change   11   24%   Pending  ownership  change   10   22%     Exit  Strategy   family  sale/transfer   1   non-­‐family  sale/transfer   6   another  company   sale/transfer   1   close  business   1   other   2     43       Respondent  Age  (Estimated)   over  65   2   5%   60-­‐65  yrs   2   5%   54-­‐59  yrs   4   9%   50-­‐54  yrs   12   27%   45-­‐49  yrs   14   32%   44  yrs  &  under   10   23%   Total   44   100%     Successor  Identified   Yes   1   2%   No   41   98%   Total   42   100%     Formal  Succession   Plan   Yes   2   5%   No   14   34%   N/A   25   61%   Total   41   100%     Current  Business  Plan   Yes   45   98%   No   1   2%   Total   46   100%       44       LOCAL  WORKFORCE     Number  of  Full-­‐Time  Employees   Less  than  5   33   72%   5-­‐9   5   11%   10-­‐19   2   4%   20-­‐49   5   11%   50-­‐99   1   2%   100+   0   0%   Total   46   100%     Number  of  Part-­‐Time  Employees   None   19   41%   1-­‐10   25   54%   More  than  10   2   4%   Total   46   100%     Number  of  Temporary  Employees   None   32   70%   13   28%   More  than  10   1   2%   Total   46   100%   1-­‐10     Number  of  Total  Employees   Less  than  5   21   46%   5  to  9   15   33%   10  to  19   3   7%   20  to  49   5   11%   50  to  99   1   2%   100+   1   2%   Total   46   100%   45         Employment  Trend  Over  Last  10  Years   Decreased   7   17%   Stayed  the  same   31   74%   Increased   4   10%   Total   42   100%     Full-­‐Time  Employment  Trend  Over  Last  3  Years   Decreased   9   20%   Stayed  the  same   30   65%   Increased   7   15%   Total   46   100%     Part-­‐Time  Employment  Trend  Over  Last  3  Years   Decreased   10   26%   Stayed  the  same   23   59%   Increased   6   15%   Total   39   100%     Temporary  Employment  Trend  Over  Last  3  Years   Decreased   9   33%   Stayed  the  same   14   52%   Increased   4   15%   Total   27   100%     Full-­‐Time  Employment  Trend  Over  Next  3  Years   Decreasing   3   7%   Staying  the  same   28   61%   Increasing   15   33%   Total   46   100%       46       Part-­‐Time  Employment  Trend  Over   Next  3  Years   Decreasing   5   13%   Staying  the  same   22   58%   Increasing   11   29%   Total   38   100%     Temporary  Employment  Trend  Over   Next  3  Years   Decreasing   5   18%   Staying  the  same   21   75%   Increasing   2   7%   Total   28   100%     Trend  in  Unfilled  Positions   Decreasing   6   15%   Staying  the  same   31   76%   Increasing   4   10%   Total   41   100%     Training  Budget   Yes     No     Total       26   59%   18   41%   44   100%     Location  of  Workforce  Recruitment   Local   42   95%   Provincial   1   2%   National   1   2%   International   0   0%   Total   44   100%       47       Skilled/Professional  Employees  as  %  of   Workforce   Less  than  25%   2   6%   25-­‐49%   3   10%   50-­‐74%   6   19%   75-­‐100%   20   65%   Total   31   100%     Semi-­‐Skilled  Employees  as  %  of   Workforce   Less  than  25%   5   19%   25-­‐49%   7   27%   50-­‐74%   3   12%   75-­‐100%   11   42%   Total   26   100%     Entry-­‐Level  Employees  as  %  of   Workforce   Less  than  25%   17   81%   25-­‐49%   2   10%   50-­‐74%   2   10%   75-­‐100%   0   0%   Total   21   100%     Average  Wage  of  Skilled/Professional   Employee   Under  $20   2   8%   $20-­‐$29   8   33%   $30-­‐$49   11   46%   $50+   3   13%   Total   24   100%             48       Average  Wage  of  Semi-­‐Skilled   Employees   $10-­‐$14   2   9%   $15-­‐$19   3   13%   $20-­‐$24   11   48%   $25  or  more   7   30%   Total   23   100%     Average  Wage  of  Entry  Level  Employee   $10  to  $12   12   55%   $13  to  $15   4   18%   $16  to  $20   5   23%   $21  to  $25   1   5%   Total   22   100%     Wages  in  Relation  to  Other   Businesses  in  the  Region   Less  than   0   0%   Same   36   80%   Greater  than   9   20%   Total   45   100%     Age  of  Majority  of  Essential   Employees   Less  than  25   1   2%   25  to  34   8   17%   35  to  49   26   57%   50+   11   24%   Total   46   100%             49       Critical  Issues  for  Employees   Child  care   36   78%   Cost  of  living   41   89%   Housing   39   85%   Transportation   17   37%   Other   29   63%   Unique  Respondents   46         Location  of  Employees       Elsewhere  in   Region   In  Community   Outside  of   Region   0-­‐24%   0%   67%   0%   25-­‐49%   0%   33%   100%   50-­‐74%   7%   0%   0%   75-­‐100%   93%   0%   0%   Total   100%   100%   100%     Retention  Challenge   Yes   33   72%   No   13   28%   Total   46   100%     Recruitment  Challenge   Yes   33   73%   No   12   27%   Total   45   100%                 50       Current  Recruitment  Areas   admin/clerical   1   advanced  mfg  workers   0   agriculture  /  farming   0   assembler/line  workers   0   CDL  drivers/  Class  1  Drivers   0   construction/contractors   5   electrical/electronics   3   food/beverage  service   8   general  labourer   3   graphic  arts/printing   0   healthcare  professionals   0   hospitality  service   4   machine  operators   8   machinists   2   maintenance   3   manufacturing  other   0   marketing   0   material/fabricators   2   mechanics   4   plant  managers/operators   0   professional/info  tech/programming   0   professional  other   5   professional  technical   2   sales/retail   5   sales/service   8   engineers   0   hair  dressers  /  salon  stylists   0   other   22   Total   85   51         Future  Recruitment  Areas   admin/clerical   1   advanced  mfg  workers   0   agriculture  /  farming   0   assembler/line  workers   0   CDL  drivers/  Class  1  Drivers   0   construction/contractors   3   electrical/electronics   0   food/beverage  service   6   general  labourer   3   graphic  arts/printing   0   healthcare  professionals   1   hospitality  service   1   machine  operators   5   machinists   2   maintenance   2   manufacturing  other   0   marketing   0   material/fabricators   1   mechanics   4   plant  managers/operators   0   prof/info  tech/programming   1   professional  other   3   professional  technical   4   sales/retail   5   sales/service   4   engineers   0   hair  dressers  /  salon  stylists   0   other   17   Total   63   52         Union  Status   Yes   3   5%   No   55   95%   Total   58   100%     Professional  Development  Needs   Administrative  /  Computer   4   12%   Skills   Technology  Skills   0   0%   Trades   6   18%   Equipment  Operators   5   15%   Retail  &  Hospitality   10   30%   First  Aid  /  WHMIS  /  Food   Safe   5   15%   Business  /  Management   7   21%   Other   12   36%   Total   49   148%     Usual  Training  Location   Local   29   59%   Regional   14   29%   Provincial   6   12%   National   0   0%   United  States   0   0%   Total   49   1     Preferred  Training  Mechanisms   Classroom/Seminar   23   37%   Individual  Coaching   30   48%   Online  Webinar/Training   10   16%   Apprenticeship   0   0%   Trade  Shows/Conferences   0   0%   Total   63   100%   53       SALES     Annual  Sales   under  $100,000   0   0%   $100,000  to  $499,999   0   0%   $500,000  to  $999,999   0   0%   $1,000,000  to  $4,999,999   0   0%   over  $5,000,000   1   100%   Total   1   100%     Status  of  Market  for   Product/Service   Decreasing   11   24%   Stable   15   33%   Increasing   20   43%   Total   46   100%     Status  of  Market  Share   Decreasing   4   9%   Stable   23   50%   Increasing   19   41%   Total   46   100%     Projected  Sales  Growth  Over  Next   Year   declining   2   5%   0%   6   14%   1-­‐9%   23   55%   10-­‐24%   8   19%   25-­‐49%   1   2%   50-­‐99%   2   5%   100%+   0   0%   Total   42   100%       54       Historical  Sales  Trend:  This   Location   Declined   12   27%   Stayed  the  same   15   33%   Increased   18   40%   Total   45   100%     Historical  Sales  Trend:  Parent   Company   Not  Applicable   31   79%   Declined   1   3%   Stayed  the  same'   4   10%   Increased   3   8%   Total   39   100%     Historical  Sales  Trend:  Industry   Declined   16   39%   Stayed  the  same   12   29%   Increased   13   32%   Total   41   100%     Sales  from  Top  3  Customers   (%)   1-­‐9%   29   78%   10-­‐25%   2   5%   26-­‐50%   3   8%   51-­‐75%   0   0%   76-­‐100%   3   8%   Total   37   100%     Government  Procurement   Yes   5   9%   No   41   91%   Total   46   100%       55       Source  of  Sales:  Local   0%   0   0%   under  50%   13   33%   50  to  99%   15   38%   100%   11   28%   Total   39   100%     Source  of  Sales:  Provincial   0%   0   0%   under  50%   19   61%   50  to  99%   12   39%   100%   0   0%   Total   31   100%     Source  of  Sales:  National   0%   0   0%   under  50%   10   83%   50  to  99%   2   17%   100%   0   0%   Total   12   100%     Source  of  Sales:  United  States   0%   0   0%   under  50%   2   50%   50  to  99%   2   50%   100%   0   0%   Total   4   100%     Source  of  Sales:  International   0%   0   0%   under  50%   2   67%   50  to  99%   1   33%   100%   0   0%   Total   3   100%   56         Source  of  Supplies:  Local  /   Regional   0%   0   0%   under  50%   13   45%   50  to  99%   11   38%   100%   5   17%   Total   29   100%     Source  of  Supplies:  Provincial   0%   0   0%   under  50%   13   42%   50  to  99%   15   48%   100%   3   10%   Total   31   100%     Source  of  Supplies:  National   0%   0   0%   under  50%   15   68%   50  to  99%   4   18%   100%   3   14%   Total   22   100%     Source  of  Supplies:  United   States   0%   0   0%   under  50%   8   89%   50  to  99%   1   11%   100%   0   0%   Total   9   100%     Source  of  Supplies:   International   0%   0   0%   under  50%   4   80%   50  to  99%   1   20%   57       100%   0   0%   Total   5   100%     Reason  for  Out  of  Area  Purchasing   Product  not  available  here   25   66%   Quality  of  product  available  here   6   16%   Higher  costs  locally   4   11%   No  control/Head  office  decision   3   8%   Unaware  of  local  vendors   0   0%   Relationship  with  current  supplier   0   0%   Other   2   5%   Unique  respondents   38         International  Trade  Status   Not   applicable/None   44   96%   Import   0   0%   Export   2   4%   Unique   Respondents   46   100%     Export  Sales  Trend   Not  Applicable   12   36%   Declining   6   18%   Staying  the  Same   6   18%   Increasing   9   27%   Total   33   100%           58       FACILITIES  AND  EQUIPMENT     Size  of  Facility   0   0   0%   less  than  1000  sq  ft   10   26%   1000  to  4999  sq  ft   22   56%   5000  to  9999  sq  ft   2   5%   10,000  to  19,999  sq   ft   1   3%   20,000  sq  ft  or  more   4   10%   Total   39   100%     Ownership  Status   Leased   8   18%   Owned   37   82%   Total   45   100%     Length  of  Time  Remaining  on  Lease   less  than  1  Year   1   13%   1-­‐2  Years   5   63%   3-­‐5  Years   2   25%   More  than  5   Years   0   0%   Total   8   100%     Renewing  Lease   No   2   22%   Yes   7   78%   Total   9   100%     59       Condition  of  Facility   Poor   0   0%   Fair   12   27%   Good     26   58%   Excellent   7   16%   Total   45   100%     Condition  of  Equipment   Poor   1   2%   Fair   7   16%   Good     31   69%   Excellent   6   13%   Total   45   100%     Number  of  Shifts   One  Shift   21   68%   Two  Shifts   8   26%   24  Hours   2   6%   Total   31   100%     Investment  in  Facility  (past  18   months)   Decreased   4   9%   Stayed  the  same   29   63%   Increased   13   28%   Total   46   100%         60       Investment  in  Equipment  (past  18   months)   Decreasing   2   4%   Staying  the  Same   28   62%   Increasing   15   33%   Total   45   100%     Room  for  Expansion   Yes   19   43%   No     23   52%   Maybe   2   5%   Total   44   100%     Awareness  of  Energy  Efficiency   Resources   Yes   36   82%   No   8   18%   Total   44   100%     Expansion  Plans  (Next  3  Years)   Yes   17   37%   No   29   63%   Total   46   100%     Expansion  in  Community   No   1   6%   Yes   16   94%   Total   17   100%       61       Adequacy  of  Current  Site  for   Expansion   No   4   24%   Yes   13   76%   Total   17   100%       Estimated  Expansion  Investment   less  than  $25,000   0   0%   $25,000  to  $99,999   0   0%   $100,000  to  $499,999   2   40%   $500,000  to  $999,999   0   0%   $1,000,000  to  4,999,999   2   40%   $5,000,000  to  $9,999,999   0   0%   $10,000,000  to  $19,999,999   0   0%   More  than  $20,000,000   1   20%   Total   5   100%     Component  on  Expansion   Investment  for  Equipment   0%   0   0%   under  50%   1   50%   50  to  99%   1   50%   100%   0   0%   Total   2   100%     Component  of  Expansion   Investment  for  Real  Estate   0%   0   0%   under  50%   0   0%   50  to  99%   2   100%   100%   0   0%   Total   2   100%     62       Size  of  Facility  Expansion   Less  than  3000  ft2   0   33%   3000  ft2  or  more   2   67%   Total   2   100%     Timeframe  for  Expansion   Less  than  1  Year   4   31%   1-­‐3  years   6   46%   More  than  3  Years   3   23%   Total   13   100%     Barriers  to  Expansion   Broadband  Access   5   6%   Energy  Reliability   6   7%   Identifying  /  Accessing  New  Markets   5   6%   Lack  of  Suitable  Premises   4   5%   Problems  with  Development   Approvals   1   1%   Energy  Costs   10   12%   Financing   3   4%   Lack  of  Skilled  Staff   15   18%   Local  Regulations  (Zoning)   17   20%   Roads   8   10%   Warehousing   1   1%   Real  Estate  Costs   0   0%   Transport/Freight   8   10%   Unique  Respondents   83   100%     Sought  Expansion  Assistance   Yes   10   43%   No   13   57%   Total   23   100%   63         Considering  Energy  Efficiency  in   Expansion  Plans   Yes   20   83%   No   4   17%   Total   24   100%     GOVERNMENT  SERVICES     Government  Services       N/A   Poor   Fair   Average   Good   Excellent   Total   Access  to  airport  facilities   61%   17%   20%   0%   2%   0%   100%   Access  to  highways/roadways   0%   9%   22%   0%   60%   9%   100%   Access  to  markets   0%   7%   28%   0%   54%   11%   100%   Access  to  suppliers   4%   39%   26%   0%   24%   7%   100%   Availability  of  road  transport  services   0%   67%   20%   0%   11%   2%   100%   Availability  of  rail  transport   98%   2%   0%   0%   0%   0%   100%   Availability  of  warehousing   57%   35%   7%   0%   0%   2%   100%   Disposal  of  waste  material   22%   13%   17%   0%   46%   2%   100%   Recycling   15%   13%   24%   0%   46%   2%   100%   Inspections  (e.g.,  licensing)   13%   15%   39%   0%   30%   2%   100%   Development  approval  process   13%   54%   24%   0%   9%   0%   100%   Telecommunications   0%   50%   26%   0%   20%   4%   100%   Availability  of  buildings   37%   43%   11%   0%   9%   0%   100%   Availability  of  appropriately  zoned  land   37%   48%   9%   0%   7%   0%   100%   Water  and  sewerage  supply   18%   7%   38%   0%   36%   2%   100%     Recommended  Improvements  to  Government   Services   Road  Quality   3   7%   Ferry  Services   38   86%   Approvals  and  Permits   6   14%   64       Taxes   2   5%   Telecommunications   6   14%   Water  and  Sewer   0   0%   Recycling  and  Waste   Management   1   2%   2   5%   5   11%   16   36%     Airports     Freight  and  Couriers   Utilities     Unique  Respondents   79       BUSINESS  CLIMATE   Business  Climate  Factors   Excellent  or   Good   Fair  or   Poor   Workforce  Quality   39%   57%   4%   Workforce  Availability   7%   91%   2%   Workforce  Stability   13%   83%   4%   Local  Government   4%   96%   0%   Local  Tax  Structure   7%   89%   4%   Provincial  Tax  Structure   13%   80%   7%   Workers  Compensation  Rates   20%   59%   22%   Economic  Development   2%   98%   0%   Cultural  /  Recreational  Amenities   48%   52%   0%   Housing   11%   89%   0%   K-­‐12  Education   59%   35%   7%   Colleges  /  Universities   0%   9%   89%   Technical  Training   7%   57%   37%   Overall  Business  Climate   9%   91%   0%   Business  Climate  Factors   No   Opinion         65       Business  Competitiveness  Factors   Not   Not   Important   Applicable   at  All       New  Product  Research  and   Development   New  Market  Development   Locally   New  Market  Development   Outside  of  Region   Access  to  Exporting  and   International  Markets   Not  Very   Important   Somewhat   Important   Very   Total   Important   5   1   1   23   15   45   1   0   2   13   29   45   23   1   3   12   6   45   35   2   3   3   2   45   Add  or  Change  in  Business,   Products  or  Services   11   1   4   25   4   45   Strategic  Alliances   1   3   3   26   12   45   12   1   4   19   9   45   11   1   8   16   9   45   Workplace  Health  and  Safety   5   1   10   14   15   45   Workforce  Skill  Development   4   0   0   23   18   45   Energy  Costs   4   1   4   10   26   45   Water/Sewer  Availability   18   5   7   11   2   43   Water/Sewer  Costs   8   3   5   7   22   45   Reliable  Air  Transportation   30   6   5   3   1   45   Affordable  Shipping/Freight   Improvement  of  Customer   Services   Availability  of   Telecommunications   Infrastructure  and  Services   Canadian  Dollar  Exchange  Rate   6   1   3   7   28   45   3   1   3   19   19   45   0   4   10   20   11   45   20   5   2   10   8   45   29   3   1   5   7   45   13   2   1   18   8   42   Worker  Productivity   Improvements   Expansion  of  Workforce   Accessing  Capital   Business  Management   Improvements       Economic  Drivers  with  Growth  Potential   Forestry   7   15%   Manufacturing   1   2%   Education   0   0%   Tourism   12   26%   Technology-­‐based  businesses   5   11%   Arts,  Culture  &  Creative  Businesses   1       2%   66       Health  &  Wellness   3   7%   Relocation  of  People  from  Urban  Centres   8   17%   Government   0   0%   Green  /  Environmental  Businesses   0   0%   Finance   0   0%   Construction   0   0%   Other  Niche  Service  Businesses   1   2%   Agriculture   1   2%   Other   0   0%   Unique  Respondents   46           Community's  Strengths  as  a  Place  to  do  Business   Culture/  sense  of  community   10   22%   Support  for  businesses   2   4%   Workforce   0   0%   Existing  industry   0   0%   Tourism   0   0%   Location   41   89%   Lifestyle   20   43%   Land  availability   2   4%   Weather   0   0%   Other   4   9%   Unique  Responses   79         Community's  Weaknesses  as  a  Place  to  do  Business   Size  of  community/population   13   29%   Age  of  population   1   2%   Employment  opportunities   4   9%   Amenities   3   7%   Attitude  towards  change/growth   9   20%   67       Infrastructure   11   24%   Workforce   3   Government/approvals   17   38%   Location   3   7%   Out  of  area  shopping   4   9%   Choice/cost  of  products   1   2%   Shipping   2   4%   Other   14   31%   Unique  respondents   45       0%     Barriers  to  Growth   Yes   45   98%   No   1   2%   Total   46   100%     Barriers  to  Growth  of  Community   Attitude  towards  change/growth   4   9%   Existing  industry/economy   12   27%   Population/market  size   13   30%   Demographics   5   11%   Infrastructure   32   73%   Government/zoning   11   25%   Location   1   2%   Housing   1   2%   Other   8   18%   Unique  respondents   44         Important  to  Attract  Suppliers   Yes   22   39%   No   35   61%   Total   57   100%   68         Important  to  Attract   Customers   Yes   33   83%   No   7   18%   Total   40   100%     Customers  to  Attract   Seniors   1   2%   19   46%   2   5%   Agriculture  &  Wineries   1   2%   Businesses  from  Elsewhere   8   20%   31   76%     Tourist/Amenity  migrants   Young  people     Total         Business  Climate  Today  vs  5  Years  Ago   Better  today   10   22%   No  change   5   11%   Worse  today   27   59%   No  opinion   4   9%   Total   46   100%   Business  Climate  5  Years  from   Today   Will  be  better   24   53%   No  change   13   29%   Will  be  worse   6   13%   No  opinion   2   4%   Total   45   100%         69       ASSESSMENT  AND  PLANS     Company's  Overall  Health   Poor   1   2%   Fair   7   16%   Good   29   64%   Excellent   8   18%   Total   45   100%     Parent  Company's  Overall  Health   Not  applicable   31   70%   Poor   0   0%   Fair   1   2%   Good   7   16%   Excellent   5   11%   Total   44   100%     Local  Management's  Attitude   Toward  Community   Not  applicable   0   0%   Poor   0   0%   Fair   4   9%   Good   8   17%   Excellent   34   74%   Total   46   100%     Parent  Company's  Attitude  Toward   Community   Not  applicable   33   77%   Poor   0   0%   Fair   0   0%   Good   2   5%   Excellent   8   19%   Total   43   100%         70       Risk  of  Facility  Closing   Low   40   87%   Moderate   4   9%   High   2   4%   Total   46   100%   Risk  of  Facility  Downsizing   Low   35   78%   Moderate   7   16%   High   3   7%   Total   45   100%     Expansion  Plans  (Next  12  Months)   Yes   16   37%   No   27   63%   Total   43   100%     71