Business Retention and Expansion: Report on Columbia Valley Businesses PREPARED BY THE COLUMBIA BASIN RURAL DEVELOPMENT INSTITUTE (RDI) FOR THE REGIONAL DISTRICT OF EAST KOOTENAY NOVEMBER 2018 EXECUTIVE SUMMARY This report describes findings from a Business Retention and Expansion (BRE) survey conducted at 69 businesses in the Columbia Valley communities – Village of Radium Hot Springs, District of Invermere, Village of Canal Flats, RDEK Electoral Area F & G; Shuswap Indian Band; and Akisqnuk First Nation. BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Key Research Findings Select survey results are summarized below. Survey Module Company Information Local Workforce Sales Facilities and Equipment Government Services Business Climate Finding The highest number of respondents’ businesses are classified as ‘Accommodation and Food Service’ and ‘Retail and Wholesale Trade’ under the North American Industry Classification system. The workforce and the location were the two most frequently cited reasons given for success in the Columbia Valley. Most companies surveyed have been in business for over 20 years. Over half of the companies are ‘growing’. 69 respondents reported a total of 1,768 employees. The majority of employees are full-time. Training in the areas specific to the business’ respective industry was the most commonly cited need, followed by First Aid and Tourism and Hospitality. The most critical considerations for employees is the cost of living and housing. Businesses indicated the market for their product/service is increasing and that their market share in comparison with competitors is also increasing. 59% of businesses report that the majority of their sales are to customers within the community or region. The most frequent reason for purchasing products or services outside of the area is that the product is not available locally. 42% of businesses lease the facility in which they operate, and 85% would prefer to own their facility. Over half of businesses plan to expand within 3 years, with the vast majority indicating that expansion will occur within the community. Top barriers to expansion are financing and a lack of skilled staff. Top rated government services include access to highway/roads, disposal of waste materials, and water and sewerage supply. The lowest ratings include availability of couriers and other road transport services, access to airport facilities, and the availability of buildings for lease or purchase. Improvements to the recycling and waste management systems and streamlining the development approval process were the most frequently suggested areas for improvement of government services. The Calgary International Airport is the most used airport by local businesses. The overall business climate was rated as good by most businesses, and the majority of businesses believe that the business climate will improve over the next five years. Business climate factors that received the highest ratings include the chamber of commerce, the cultural and recreational amenities, and tourism services. ii Assessment and Plans Tourism and technology related businesses were the most commonly cited sectors, businesses, or industries that could be attracted to the region. The business competitiveness factors that are most important to respondents include improvement of customer service and workplace health and safety. The overall health of their company was rated as good by 58% of businesses and excellent by 32% of businesses. 6% of the businesses surveyed indicated that they were at high risk of closing and just 1% indicated they are at high risk of downsizing. The vast majority (over 90%) indicated that the risks of closure or downsizing were low. Next Steps The results of this survey can be used to inform short- and long-term planning. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate. Potential Action Areas Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,768 employees. The majority (61%) of employees are full-time, followed by 23% temporary, and 16% part-time. The size of the workforce appears to be increasing, with 48% of businesses indicating that the number of employees at their business has been increasing, and 39% indicating that the number has stayed the same. Employment trends are also expected to remain stable or increase, with the majority of businesses expecting the number of casual staff to stay the same, while the number of full time and part time employees is expected to increase. The majority of businesses (87%) recruit locally. 76% of businesses indicate that they currently face recruitment challenges, 70% anticipate future difficulties, and 64% of businesses stated that there were strategies that could address recruitment. Additionally, 15 respondents noted that the lack of skilled staff was posing a barrier to expansion plans. Respondents most commonly rely on social media and other internet sources (33%) to recruit employees, with general advertising (29%) also often used, followed by word of mouth (18%), and employment centres (13%). Actions identified by respondents that could prove helpful include providing access to affordable housing, as well as providing training and educational opportunities. The hospitality and food/beverage service industries featured in areas of future recruitment challenges, as did the area of administrative/clerical and sales/service. Targeted actions that focus on the tourism and food and beverage sectors specifically could be considered. Related to recruitment and retention are a number of identified critical considerations for employees which include housing and the cost of living. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with 17% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 76% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for low youth employment, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), hosting career and employer information fairs, and connecting businesses with local schools and postsecondary institutions. iii Business Growth & Expansion 57% of businesses in the region report being in a growth cycle and 28% are maturing. The majority of businesses are anticipating low to moderate sales growth over the next year, with 39% expecting moderate sales growth between 1 – 9% and 46% expecting 10-24% sales growth. The majority of businesses (59%) indicate that the majority of their sales are to local markets. 68% indicate that they are planning to expand within the next three years, and the majority (80%) indicate that their existing site is adequate. Businesses also report that employment rates are stable, and that they anticipate increases in part time and full time staff over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on local business conditions. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, identifying and securing new sites if appropriate, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include financing, lack of skilled staff, and local regulations. It is worth noting that very few (33%) businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be medium in size (28% have between 5 and 9 employees, 43% are located in a facility that is between 1,000 sq. ft. and 4,999 sq.ft., and 39% have annual sales under between $1 million and $4.9 million) and independent (just 21% have other locations). The customer base for businesses appears to be diverse, with 47% of businesses indicating that just 1 - 9% of their sales are generated by their top three customers. It is interesting to note that the majority of employees are full-time (61%). Tailoring supports and services to small/medium sized, independent businesses that are focused on the service and tourism sectors will benefit businesses in the Columbia Valley. Services and supports should consider that 40% of functions provided by a business are ‘services’. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses, for example providing shared services such as payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include exploring existing supports available from agencies such as the provincial Small Business BC organisation, go2HR, Destination BC, Kootenay Rockies Tourism, CBT’s Basin Business Advisors Program, or the Kootenay and Boundary Farm Advisors program. Supply Sourcing and Procurement The data indicates that 48% of supplies come from within the local region. The most common response (51%) for the reason why supplies are sourced outside of the local area is that they are not available locally. Interestingly, 58% of respondents indicated that they supply services or products to companies in the community. By far the most common suggestion for a new supplier in the area was for a wholesale supplier for the food and beverage sector. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area iv businesses could also be explored. A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Local businesses do not appear to engage actively with government procurement processes, with only 9% of businesses indicating that they have. Education and awareness of the opportunities available through municipal, regional, and provincial procurement processes could be promoted through seminars, profiles in communication material, promotion on relevant websites, and social media channels. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 66% of businesses do have a training budget and 52% indicated that training typically occurs locally. 19% of respondents indicated that the lack of skilled staff was a barrier to their expansion plans. 50% of businesses were aware of new trends, technologies and industry changes that will require new skills. Additionally, 75% identified specific areas for training/professional development, including industry specific training, first aid, tourism/hospitality, management, sales, and food safe. There is a preference for online/webinar (35%) or classroom (34%) style formats. Future initiatives could include supporting networks to help businesses identify shared training needs, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 20% of respondents indicated that they have a formal succession plan and under half (46%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among local businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector The Columbia Valley is already invested in the tourism sector with a relatively high percentage (48%) of businesses engaged in tourism related industries (14% in the ‘Retail and Wholesale Trade sector, 28% in the ‘Accommodation and Food Services’ sector, and 6% in the ‘Arts, Entertainment and Recreation’ sector). The majority of respondents (66%) indicated that tourism was the economic driver with the greatest growth potential. Respondents also noted that increasing the number of tourism related businesses, followed by technology would benefit the region. Actions to increase and continue the support for the tourism industry could include the continued collaboration between government and local tourism agencies such as Destination British Columbia, Chambers of Commerce, and local businesses. With most businesses expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. v Addressing Seasonality The seasonality of the community was identified by 23% of respondents (16 businesses) when asked about weaknesses of the community as a place to do business. Seasonality was also referenced by 8 respondents (12%) as a barrier to growth. A number of businesses referenced the need to expand the tourism season and encourage tourism during the entire year. Action in this area may include reviewing marketing initiatives, engaging with tourism operators to discuss barriers and opportunities to decrease the seasonality challenge, and engage with groups like Kootenay Rockies Tourism and Destination BC to explore options to change this characteristic. vi TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................................... II Key Research Findings ..................................................................................................................... ii Next Steps ....................................................................................................................................... iii PROJECT OVERVIEW ............................................................................................................................ 1 The BRE Concept ............................................................................................................................. 1 Project Objectives ............................................................................................................................ 1 RESEARCH CONSIDERATIONS .............................................................................................................. 2 The BRE Survey ................................................................................................................................ 2 The Data Set .................................................................................................................................... 2 Data Collection ................................................................................................................................ 2 Data Input, Analysis and Reporting ................................................................................................. 2 RESEARCH FINDINGS ........................................................................................................................... 3 Company Information ..................................................................................................................... 3 Local Workforce............................................................................................................................... 8 Sales ............................................................................................................................................... 16 Facilities and Equipment ............................................................................................................... 21 Government Services .................................................................................................................... 27 Business Climate ............................................................................................................................ 30 Assessment and Plans ................................................................................................................... 40 RECOMMENDATIONS ........................................................................................................................ 43 Next Steps ...................................................................................................................................... 43 Potential Action Areas ................................................................................................................... 44 APPENDIX A: DATA TABLES................................................................................................................ 47 Company Information ................................................................................................................... 47 Local Workforce............................................................................................................................. 54 Sales ............................................................................................................................................... 72 Facilities and Equipment ............................................................................................................... 77 Government Services .................................................................................................................... 91 Business Climate ............................................................................................................................ 95 Assessment and Plans ................................................................................................................. 111 vii PROJECT OVERVIEW This report describes findings from a Business Retention and Expansion (BRE) survey1 conducted within the Columbia Valley area during the summer of 2018. The project was led by the Columbia Valley Community Economic Development Office (CVCEDO), with support from BC Rural Dividend. A local consultant (through the Columbia Valley Chamber of Commerce) and the BRE Lead (Community Economic Development Officer with the Regional District of the East Kootenay) completed interviews. The Columbia Valley Community Economic Development Advisory Committee (CVCEDAC) helped guide the process. The Columbia Basin Rural Development Institute (RDI) provided training, data analysis and report writing support. The BRE Concept BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about the concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Ultimately, communities will have greater success in attracting new businesses if existing businesses are content with local economic conditions and community support. Business development and job creation are key factors in fostering healthy and vibrant communities— depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of new jobs come from existing businesses. Project Objectives This report describes findings from a Business Retention and Expansion (BRE) survey2 conducted in the Columbia Valley communities—Village of Radium Hot Springs, District of Invermere, Village of Canal Flats, RDEK Electoral Area F & G, Shuswap Indian Band, and Akisqnuk First Nation and area— during August and September 2018. Objectives specific to the Columbia Valley BRE project were as follows: 1. Identify the needs, concerns, and opportunities of existing local businesses so that, where appropriate, local action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s local businesses with respect to expansion, relocation and /or retention and follow-up where assistance can be provided; 3. Demonstrate the supportive role of the Columbia Valley Community Economic Development Office and the Chamber of Commerce in the Columbia Valley, and build relationships with the entire business community; 4. Encourage the business community’s active involvement in economic development. 1 Short and Long BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/appliedresearch/business-retention-expansion/ Business Retention and Expansion: Report on Columbia Valley Businesses 1 RESEARCH CONSIDERATIONS The BRE Survey The RDI has a licence agreement with the Economic Development Association of BC for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data presented in this report was collected as part of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the BC Business Counts program across the province of BC. Survey data can therefore be analyzed at a community, sub-regional, regional and provincial level. The base survey, consisting of 94 questions, includes modules for company information, the local workforce, sales, facilities and equipment, and future plans for growth or succession. Based on feedback from a BRE regional advisory group, thirteen region-specific questions were appended to the base BRE survey. The Labour Market specific questions were added to the base survey in order to identify and address labour market supply and demand, uncover some emerging labour market trends, and determine barriers to labour retention within the Columbia Valley area. The Data Set A list of prospective BRE interviewees was developed over a number of months. From that long list, the CVCEDO and Chamber of Commerce rationalized the list further. The final filter was performed by the targeted businesses themselves, if they did not want to participate, or could not find a window of time during the study period to schedule an interview. Rather than trying to find an equal proportion of types and sizes of businesses, or trying to create a random sample, the CVCEDO’s initial targeted list started with key businesses that were perceived to be growing or undergoing some changing condition. Businesses were sorted into the North American Industry Classification System (NAICS) categories. Great effort was made to cover businesses of all sizes throughout the Columbia Valley. Data Collection In August 2018, the Columbia Valley Community Economic Development Office sent out email invitations to the targeted businesses. Follow up telephone calls, personal visits, and subsequent emails were undertaken to arrange an interview time with each business. Interviews were conducted in private, with the business owner, or site manager, and the interviewer. Some interviews were completed in less than 1 hour, but most took about 2 hours. Ryan Watmough, CVCEDO, and Tess Bekkering, BRE Interviewer with the CVCC, entered the data from each of their interviews into the ExecutivePulse system, helping to maintain confidentiality and data security. Data entry required an average of 30 minutes. Interview forms were safely stored both before and after entering the data to further protect confidentiality and data security. Data Input, Analysis and Reporting Quantitative data was analysed using descriptive statistics and qualitative data was analysed using the grounded theory method of generating key coding themes. Based on the results of data analysis activities, an initial draft was generated by the RDI and then reviewed with the CVCEDO. Findings and related recommendations were assembled into this report by RDI researchers. Business Retention and Expansion: Report on Columbia Valley Businesses 2 RESEARCH FINDINGS Note that some questions allow multiple responses, which can result in the number of responses being higher than the number of respondents. Company Information Type of Product/Service Offered Interviewed businesses represent a diverse cross-section of industries, with an emphasis in the tourism and service sectors. Most common are Accommodation and Food Services (28% or 19 respondents), Retail and Wholesale Trade (14% or 10 respondents). Manufacturing (12% or 8 respondents) and Construction (10% or 7 respondents) were also well represented. Note that businesses in the Health Care and Social Assistance and Educational Services sectors were not included, primarily due to the lack of such businesses in the Columbia Valley. Figure 1: Industry classification. Note: 69 respondents Other Services 6% Accommodation and Food Services 28% Arts, Entertainment and Recreation 6% Health Care and Social Assistance 0% Educational Services 0% Administrative Support, Waste Management and Remediation 7% Professional, Scientific and Technical Services 4% Real Estate and Rental and Leasing 6% Finance and Insurance 3% Information and Cultural Industries 1% Retail and Wholesale Trade 14% Manufacturing 12% Construction 10% Mining, quarrying, and oil and gas extraction 1% Agriculture, forestry, fishing and hunting 1% 0% 5% 10% 15% 20% 25% Facility Function Businesses most commonly (40% or 61 respondents) indicated that their facility provides services. Other functions include ‘headquarters’ (19% or 28 respondents) and ‘distribution’ (15% or 23 respondents). Fewer respondents indicated that their facility serves an engineering/research and development function, manufacturing or warehousing function. Figure 2: Facility function(s). Note: 69 respondents Services 40% Headquarters 19% Manufacturing 11% Warehousing 10% Distribution 15% Engineering/RD 5% 0% 5% 10% 15% 20% 25% Business Retention and Expansion: Report on Columbia Valley Businesses 30% 35% 40% 45% 3 30% Competition The majority of respondents (63% or 52 respondents) reported that their competition was coming from within the regional area3. Figure 3: Location of primary competitors. Note: 64 respondents In Region In Canada In Province Outside Canada 63% 17% 16% 5% 0% 10% 20% 30% 40% 50% 60% 70% Factors for Success When asked what factors made their company successful in this region, the highest number of respondents cited the workforce (22% or 25 businesses), the location (19% or 22 businesses), and the quality of the product or service (11% or 13 businesses). Figure 4: Key words in respondents' discussions of the factors that make them successful in this region “We believe in employees and their success, so we invest in their personal development.” “Word of mouth & Good and loyal team!” “Location, natural capital (scenery, hot springs); proximity to Calgary; friendly staff.” “Great staff and low to no turnover.” “Attention to detail; quality of local ingredients” “First class, local staff.” “Tourism to the Valley - Location on throughway / highway.” 3 Multiple competitors were listed by respondents resulting in more responses than number of respondents. Business Retention and Expansion: Report on Columbia Valley Businesses 4 Choosing the Columbia Valley Respondents most frequently cited the location (30% or 27 respondents) followed by a business opportunity (22% or 20 respondents) in their reasons for choosing the Columbia Valley to site their business. Other factors include the purchase of an existing business (19% or 17 respondents), the lifestyle (10% or 9 respondents) and those who were born and raised and stayed, or were already living in the area. Figure 5: Reasons for choosing the Columbia Valley. Note: 69 respondents Lifestyle 10% Business opportunity 22% Bought an existing business 19% Born and raised here 6% Location 30% Close to family 2% Already living here 7% Experience in the business 2% Established business 1% Business expansion 1% 0% 5% 10% 15% 20% 25% 30% 35% Other Locations Figure 6: Other Locations. Note: 69 respondents 20% of respondents (14 respondents) indicated that their company has other locations. Yes 20% No 80% 60% of those other locations (12 respondents) are in other areas of the province, 30% (6 respondents) are in other parts of Canada. Figure 7: Location of Other Locations. Note: 14 respondents In Province 60% Elsewhere in Canada 30% Outside Canada 10% 0% 10% 20% 30% 40% Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 70% 5 92% of respondents (47 businesses) reported that their headquarters are located within British Columbia, 8% (4 businesses) indicated that they are headquartered in other parts of Canada, and none of the businesses surveyed had a headquarters outside of the country. Figure 8: Location of headquarters. Note: 51 respondents In Province 92% Elsewhere in Canada 8% Outside Canada 0% 0% 20% 40% 60% 80% 100% Age and Life Cycle Stage Over half of all respondents (57% or 39 respondents) reported that their business is in the ‘growing’ life cycle stage. Another 28% (19 businesses) indicated that their business is in the ‘maturing’ stage. Only 10% (7 businesses) indicated that they are in the ‘emerging’ stages, while 6% (4 businesses) indicated they were declining. Figure 9: Life cycle stage. Note: 69 respondents 28% Maturing 57% Growing 10% Emerging 6% Declining 0% 10% 20% 30% 40% 50% 60% The largest number of businesses (27 respondents or 39%) reported that they have been in business for over 20 years. A significant number reported that they have been in business for 10 19 years (21 respondents or 30%). Figure 10: Length of time in business. Note: 69 respondents >20 Years 10-19 Years 5-9 Years 1-4 Years <1 Year 39% 30% 14% 13% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Ownership and Management 96% of all companies surveyed are privately owned, with just 4% publicly owned. Most respondents (55 respondents or 80%) indicated that their business is classified as a corporation, while 9% (6 respondents) indicated that they are a sole proprietorship. The remainder of businesses identified as a partnership (4% or 3 respondents), non-profit (3% or 2 respondents), limited liability partnership (3% or 2 respondents), and other (1% or 1 respondent). Business Retention and Expansion: Report on Columbia Valley Businesses 6 Figure 11: Type of business. Note: 69 respondents 1% Corporation 80% 9% Non-profit 3% 4% 3% Limited liability partnership (LLP) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Figure 12: Ownership and management changes in last 5 years. Note: 69 respondents 71% of businesses (49 businesses) have not seen a management or ownership change in the last 5 years, while 29% of businesses (20 businesses) have changed management and/or ownership over that same period of time. Just 16% of businesses (11 respondents) are expecting an ownership change in the near future. Of the 20 respondents that have seen changes in management and or ownership, 74% (14 businesses) report that the change had a positive impact. Yes 29% No 71% Succession and Business Plans Of the 11 businesses (16%) that responded and reported a pending ownership change, 4 (44%) expect the change will happen in three or more years, 3 (33%) expect the process to take 1 year or less, and 22% or 2 businesses anticipates it taking 2 years. Figure 13: Anticipated timeline for ownership change. Note: 9 respondents 3 years or more 44% 2 years 22% 1 year or less 33% 0% 10% 20% 30% 40% 50% 63% of respondents (5 respondents) expect that the current owner will exit the business by selling it to a non-family member, while 25% (2 respondents) expect it to be sold/transferred to a family member. 13% (1 business) expect it to be sold to another company. Figure 14: Anticipated exit strategy. Note: 8 respondents Sell/transfer to a non-family member Sell/transfer to a family member Sell to another company Other 63% 25% 13% 0% 0% 10% 20% 30% Business Retention and Expansion: Report on Columbia Valley Businesses 40% 50% 60% 70% 7 Figure 15: Existence of formal succession plan. Note: 69 respondents Only 20% (14 respondents) of businesses reported that they have a formal succession plan in place, and just 29% (20 businesses) have identified a sucessor for their business. Of those that completed a succession plan, 79% received assistance in its preparation. Yes, 20% No, 80% Figure 16: Existence of current business plan. Note: 69 respondents Just under half of respondents (46% or 32 respondents) indicated that they have a business plan in place. Yes, 46% No, 54% Local Workforce Size of Workforce The 69 businesses interviewed reported a total of 1,768 employees. 28% or 19 of the businesses surveyed indicated that they have between 5 and 9 employees, and 26% or 18 businesses indicated that they have between 10 and 19 employees. Figure 17: Total number of employees. Note: 69 respondents Greater than 100 50-99 20-49 10-19 5-9 Less than 5 4% 4% 23% 26% 28% 14% 0% 5% 10% 15% 20% 25% 30% 61% (1085) of employment positions at surveyed businesses are full-time, while 16% (279) are part time, and 23% (404) are temporary. Business Retention and Expansion: Report on Columbia Valley Businesses 8 Figure 18: Nature of employment. Note: 69 respondents Temporary Part Time Full Time 23% 16% 61% 0% 10% 20% 30% 40% 50% 60% 70% 48% of respondents (32 businesses) indicated that the number of employees at their business has been increasing. While 39% (28 businesses) indicated that the size of their workforce has stayed the same. 12% (8 businesses) indicated a decrease. Figure 19: Historical employment trend4. Note: 69 respondents Increasing 48% Staying the same 39% Declining 12% 0% 10% 20% 30% 40% 50% 60% The last three years have generally seen stability in the size of the workforce, with between 40% and 63% of businesses reporting that the number of employees has stayed the same, and between 25% and 40% reporting that employment over that three year time period has increased. Interestingly, the employment trend for full-time staff saw a 20% decrease over the previous three years. Figure 20: Employment trend over last 3 years. Note: #of respondents varies Decreased 13% 3% 20% Stayed the same 63% 62% 40% 25% Increased 0% 10% 20% Casual 30% part time 34% 40% 40% 50% 60% 70% full time The majority of businesses interviewed expect the size of their casual workforce to stay the same over the next 3 years (88% or 11 respondents), while the number of full time staff is expected to increase (64% of respondents or 44 respondents). The expectation for part time staff is that the numbers will either stay the same (45% or 27 respondents) or increase (50% or 30 respondents). 4 The question considered a 10 year historical trend. Business Retention and Expansion: Report on Columbia Valley Businesses 9 Figure 21: Employment trend over next 3 years. Note: #of respondents varies 3% 5% 3% Decreased Stayed the same 33% 10% Increased 0% 10% 88% 45% 50% 20% 30% Casual 40% 50% Part Time 64% 60% 70% 80% 90% 100% Full Time Workforce Demographics 46% (32 respondents) indicated that the majority of their essential employees are between 35 and 49 years old. 19% (13 respondents) of businesses indicated that the majority of their workforce is between 26 and 34 years old. Figure 22: Age of the majority of essential employees. Note: 69 respondents 50 or older 17% 35 - 49 46% 26 - 34 19% Less than 25 17% 0% 10% 20% 30% 40% 50% Wages When reporting on average wages for skilled or professional workers, the majority of responses indicated they pay between $20 and $29 per hour (42% or 22 businesses) and between $30 and $49 per hour (35% or 18 businesses). The most commonly reported average hourly wage for semiskilled workers (50% or 25 businesses) was between $15 -$19, and the most commonly reported average wage for entry-level workers nearly matched at $13 - $14.99 (37% or 17 businesses) or between $15 and $19.99 (39% or 18 businesses). 53% of respondents (32 respondents) reported that their wage scale is greater than other businesses in the region.5 Figure 23: Wages in relation to other businesses in the region. Note: 60 respondents Greater than 53% Same as 42% Lower than 5% 0% 5 10% 20% 30% 40% 50% 60% Detailed wage data is found in Appendix A. Business Retention and Expansion: Report on Columbia Valley Businesses 10 Recruitment and Retention Of those businesses that responded, 63% (40 respondents) indicated that the number of unfilled positions at their company would remain constant in the near term. Figure 24: Trend in unfilled positions. Note: 64 respondents Increasing 33% Decreasing 5% Stable 63% 0% 10% 20% 30% 40% 50% 60% 70% The vast majority of respondents (87% or 60 respondents) reported that they primarily recruit employees from local labour markets. 7% (5 respondents) recruit at a national level, while 4% (3 respondents) report that they recruit at the provincial level. International recruitment was only identified by one respondent. Figure 25: Location of workforce recruitment. Note: 69 respondents Locally 87% Provincially 4% Nationally 7% Internationally 1% 0% 20% 40% 60% 80% 100% Of the 69 respondents, 76% (52 respondents) indicated that they have experienced recruitment challenges and 32% (22 respondents) indicated that they have experienced retention challenges. Figure 26: Recruitment and retention challenges. Note: # of respondents varies Recruitment challenges 76% Retention challenges 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% When asked what efforts their business has undertaken to retain employees, the most frequent response was competitive wages (31% or 37 respondents), followed by benefits (15% or 18 respondents). Flexible scheduling (12% or 14 respondents) and training for staff (10% or 12 respondents) were also frequently cited. Business Retention and Expansion: Report on Columbia Valley Businesses 11 Figure 27: Key words and responses in respondents' discussion of retention efforts “staff parties to boost morale!” “provide housing to new staff” “increased availability of benefits” “offer bonuses and raises” “flexible working schedule” When asked what efforts businesses have undertaken to recruit employees, efforts that emerged most often were the use of social media and other internet resources (33% or 40 respondents) and advertising (29% or 35 respondents). Respondents also use a wide variety of other means, including word of mouth, employment centres, recruitment firms, job fairs, and offering benefits. Figure 28: Recruitment Activities. Note: 62 respondents Advertising Word of mouth Recruiting Firms Job Fairs Social Media / Internet Employment Centre Benefits 29% 18% 2% 3% 33% 13% 2% 0% 5% 10% 15% 20% 25% 30% 35% Of the 52 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include food and beverage service (22% or 17 respondents) and hospitality service (16% or 13 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Business Retention and Expansion: Report on Columbia Valley Businesses 12 Figure 29: Current recruitment areas. Note: 52 respondents Other 23% Hospitality Service 16% Administrative/Clerical 6% Healthcare Professionals 1% Food/Beverage Service 22% Professional/Technical 8% Mechanics 8% Maintenance 5% Construction/Contractors 11% 0% 5% 10% 15% 20% 25% 70% of respondents (48 businesses) anticipate future recruitment difficulties over the next 3 to 5 years. The most commonly anticipated recruitment areas which may prove challenging include food and beverage service (26% or 18 respondents) and hospitality service (24% or 16 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 30: Future areas where recruitment may be challenging. Note: 48 respondents Other 18% Hospitality Service 24% Food/Beverage Service 26% Administrative/Clerical 9% Sales/Service 10% Mechanics 7% Maintenance 4% Healthcare Professionals 1% 0% 5% 10% 15% 20% 25% 30% 64% of respondents (44 respondents) indicated that they believed that there were strategies that could be undertaken to address employee recruitment. 43% (20 respondents) believed that providing access to housing was important, while 13% (6 respondents) suggested that training and education opportunities were necessary, and another 13% (6 respondents) indicated that transportation was an area that could support recruitment efforts. Figure 31: Strategies to overcome employee recruitment challenges. Note: 69 respondents No 36% Yes 64% 0% 10% 20% 30% 40% Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 70% 13 Skills and Training 46% (31 respondents) indicated that over half of their workforce is comprised of skilled or professional workers, 32% (19 respondents) indicated that their workforce is mainly semi-skilled workers and 29% (16 respondents) indicated that entry-level workers make up the majority of their workforce. Figure 32: Skill level of majority of workforce. Note: # of respondents varies Entry-level Semi-skilled Skilled/Professional 29% 32% 46% 0% 10% 20% 30% 40% 50% 64% (44 businesses) indicated that there is a training budget to upgrade employee skills. 96% (66 businesses) indicated that their company offers in-house training and 42% (29 businesses) use contracted training. Figure 33: Training Budget. Note: # of respondents varies 58% No 4% 36% 42% Yes 96% 64% 0% 20% 40% 60% contracted training in-house training 80% 100% 120% training budget 50% of respondents (34 businesses) indicated that they were aware of trends, technologies, and other significant changes that will be occurring in their industry that will require new skills. Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills. Note: 68 respondents No 50% Yes 50% 0% 10% 20% 30% 40% 50% 60% 75% or 52 respondents indicated that there are areas of training or professional development that would benefit their business. Most commonly listed among these areas was training specific to their industry (22% or 21 respondents), followed by first aid (8% or 8 respondents) and tourism and hospitality (7% or 7 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 14 Figure 35: Training or professional development needs. Note: 52 respondents industry specific training First Aid Tourism / Hospitality Sales Food Safe Management Accounting Customer Service Leadership Software Social Media Mental Health Communications 22% 8% 7% 6% 6% 6% 5% 4% 4% 3% 3% 2% 1% 0% 5% 10% 15% 20% 25% When asked what new training might need to be considered in the next five years, the most commonly cited responses were in the areas of computer skills (19% or 10 businesses), construction industry related skills and knowledge (13% or 7 businesses) and social media (11% or 6 businesses). Figure 36: Areas for new Training in next five years. Note: 53 respondents Computer and technology training Construction Industry related skills and knowledge Social Media Social Media Internet and online sales Sales & Marketing Government regulations Customer service Accounting Culinary training Customer Service New Building Technologies Leadership Project Management Import / Export Training Beer and Wine production Electric Vehicle Driver and Equipment Operator Training Business Management Human Resources Hospitality Facilities Maintenance 19% 13% 11% 11% 9% 8% 4% 4% 4% 4% 4% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 35% of respondents (39 businesses) stated that they prefer training when it is delivered through a an online or webinar format, while 34% (38 businesses) preferred classroom training, and 24% had a preferenced for individual coaching (27 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 15 Figure 37: Preferred modes of training. Note: 67 respondents Online/ Webinar training 35% Classroom 34% Individual coaching 24% Other 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 52% of respondents (45 businesses) typically seek training opportunities that are offered locally, and 20% (17 businesses) travel to other areas in the province for their training or throughout the rest of the country (15% or 13 businesses). Fewer training opportunities are sought elsewhere in the region or in the United States. Figure 38: Usual training locations. Note: 65 respondents Local British Columbia Rest of Canada Regional United States 52% 20% 15% 9% 5% 0% 10% 20% 30% 40% 50% 60% Unions 3 businesses (4%) surveyed reported that they have union status. Employees The most frequently cited critical issues for employees are housing (90% or 60 businesses) and the cost of living (78% or 52 businesses). Child care (55% or 37 businesses) and transportation (38% or 38 businesses) issues were also common. For a list of factors included in the “other” category charted below, refer to Appendix A. Figure 39: Critical considerations for employees. Note: 67 respondents Housing Cost of living Transportation Child care Other 90% 78% 57% 55% 7% 0% 20% 40% 60% 80% 100% Sales Market Size and Share The highest number of respondents (14 businesses or 39%) reported annual sales between $1 million and $4.9 million. The second highest number of respondents (7 businesses or 19%) reported annual sales of between $100,000 and $499,000. Business Retention and Expansion: Report on Columbia Valley Businesses 16 Figure 40: Annual sales. Note: 36 respondents over $20m $10m - $19.9m $5m - $9.9m $1m - $4.9m $500k - $999,999 $100k - $499,999 $50k - $99,999 $25k - $49,999 Under $25k 8% 8% 6% 39% 14% 19% 3% 3% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% The majority of businesses interviewed (71% or 49 businesses) indicated that the size of the market for their product or service is increasing. Another 26% (18 businesses), reported that the market is stable. Figure 41: Status of market for product/service. Note: 69 respondents Increasing Stable Decreasing 71% 26% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 58% (37 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is increasing, while 39% (25 businesses) indicated that it is stable. A small number of respondents (3% or 2 businesses) indicated that their market share is decreasing. Figure 42: Market Share in Comparison to Competitors. Note: 64 respondents Increasing 58% Stable 39% Decreasing 3% 0% 10% 20% 30% 40% 50% 60% 70% Growth 46% of respondents (31 businesses) expect to see moderate growth in sales over the next year in the realm of 10 – 24%. Lower growth in sales of 1-9% is projected by 39% of respondents (26 businesses). A combined 6% (total of 4 businesses) expect strong sales growth of over 25%. 6% (4 businesses) of respondents expect their sales to remain stagnant, while a further 3% (2 businesses) expect sales to decline. Business Retention and Expansion: Report on Columbia Valley Businesses 17 Figure 43: Projected sales growth in the next year. Note: 67 respondents Over 100% 25 - 49% 10 - 24% 1 - 9% 0% Declining 3% 3% 46% 39% 6% 3% 0% 10% 20% 30% 40% 50% The majority of responses (74% or 48 businesses) indicated that sales at their business have increased over time, 18% (12 businesses) indicated that sales have remained relatively stable and 5% (3 businesses) reported that sales have declined. 41% or 25 businesses reported that sales at their parent company have historically increased, 13% (8 businesses) reported that they have stayed the same, and none reported a decline. It is worth noting the high non response rate/not applicable response to this question. 68% percent of respondents (42 businesses) reported that sales within their industry have been increasing, while 21% (13 businesses) reported that sales have stayed the same, and an additional 11% (7 businesses) indicated sales in their industry are declining. Figure 44: Historic sales trend. Note: # of respondents varies 0% Not applicable 46% 3% Increasing 68% 41% Staying the same 13% Declining 0% 0% 74% 21% 18% 11% 5% 10% 20% within the industry 30% 40% at the parent company 50% 60% 70% 80% At this business Export Sales Of the 5 businesses that reported exporting to international markets, 4% (3 businesses) indicated that their export sales have increased. Note that 93% of respondents (63 businesses) found the question to be not applicable. Business Retention and Expansion: Report on Columbia Valley Businesses 18 Figure 45: Export sales trend. Note: 68 respondents Not applicable Increasing Staying the same Declining 93% 4% 1% 1% 0% 20% 40% 60% 80% 100% Source of Sales The customer base among Columbia Valley businesses appears to be fairly reliant on a diverse customer base, with the largest percentage of respondents (47% or 21 businesses) indicating that 1 – 9% of their sales are generated by their top three customers. Figure 46: Sales generated by top three customers. Note: 45 respondents 76 - 100% 51 - 75% 26 - 50% 10 - 25% 1 - 9% 4% 11% 7% 31% 47% 0% 10% 20% 30% 40% 50% A majority of respondents (59%) indicated that over 50% of their sales are to customers within the local community or region. 5% indicated that over 50% of their sales are within the province and 50% indicated the majority of their sales are to a national market. No respondents reported that the majority of their sales are to the U.S. or to international markets. Additionally, when asked whether they supply products or services to any company in the community, 58% (40 respondents) indicated that they did. Figure 47: Geographic source of majority of sales. Note: # of respondents varies International United States National Provincial Local 0% 0% 50% 5% 59% 0% 10% 20% 30% 40% 50% 60% 70% Just 3 respondents (4%) indicated that they import goods or services from other countries. 91% of respondents did not find the question applied to them, or do not engage in international trade. Figure 48: International trade status. Note: 69 respondents Not applicable None Export Import 67% 25% 4% 4% 0% 10% 20% 30% 40% Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 70% 19 Procurement Figure 49: Engagement with government procurement processes. Note: 69 respondents Yes 9% Only 9% of businesses (6 respondents) indicated that they engage in government procurement. No 91% 48% (28 businesses) indicated that the majority of their supplies come from businesses located within the local area. 42% of respondents (24 businesses) reported that they purchase a majority of their supplies from national sources. Figure 50: Geographic source of majority of supplies. Note: # of respondents varies International United States National Provincial Local 9% 4% 42% 23% 48% 0% 10% 20% 30% 40% 50% 60% Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the highest number of businesses (51% or 55 respondents) indicated that the products they need are not available locally. Figure 51: Reason for out-of-area purchasing. Note: 65 respondents Product not available here Higher costs locally Quality of available products No control - head office decision No applicable to this business Other Loyalty to current supplier Unaware of local vendors 51% 33% 7% 4% 3% 2% 1% 0% 0% 10% 20% 30% Business Retention and Expansion: Report on Columbia Valley Businesses 40% 50% 60% 20 Facilities and Equipment Size and Condition 43% of respondents (30 businesses) reported that their facility is between 1,000 square feet and 4,999 square feet in size, and another 26% (18 businesses) indicated it was 20,000 square feet or greater. Figure 52: Size of facility. Note: 69 respondents 20,000 sq ft or more 10,000-19,999 sq ft 5,000-9,999 sq ft 1,000-4,999 sq ft less than 1,000 sq ft 26% 7% 14% 43% 9% 0% 10% 20% 30% 40% 50% 23% of respondents (16 businesses) indicated that their facility is in excellent condition. Another 57% (39 businesses) indicated that it is in good condition and 13% (9 businesses) reported that their facility is in fair condition. 7% (5 businesses) reported that their facility is in poor condition. Figure 53: Condition of facility. Note: 69 respondents Poor Fair Good Excellent 7% 13% 57% 23% 0% 10% 20% 30% 40% 50% 60% 54% of respondents (36 businesses) indicated that their equipment is in good condition. 28% (19 businesses) indicated that it is in excellent condition and 16% (11 businesses) report their equipment is in fair condition, with just 1% (1 business) in poor condition. Figure 54: Condition of equipment. Note: 67 respondents Poor Fair Good Excellent 1% 16% 54% 28% 0% 10% 20% 30% 40% Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 21 Ownership Figure 55: Ownership status of facility. Note: 69 respondents 42% of respondents (29 businesses) lease the facility in which they operate and 58% (40 businesses) own it. Leased, 42% Owned, 58% Of the 29 businesses that lease their facility, and provided a response to the question, 60% (6 businesses) have less than 1 year remaining on their lease and another 40% (4 businesses) have between 3 and 5 years remaining. The majority of respondents that lease their facility (83% or 25 businesses) intend to renew their current lease agreement. Figure 56: Length of time remaining on lease. Note: 10 respondents >5 Years 3-5 Years 1-2 Years <1 Year 0% 40% 0% 60% 0% 10% 20% 30% 40% 50% 60% 70% Figure 57: Ownership preference. Note: 65 respondents Lease, 15% 85% of respondents (55 businesses) would prefer to own their facility. Own, 85% Investment and Expansion 66% of respondents (44 businesses) indicated that their company’s investment in their facility has increased over the past 18 months, while 30% (20 businesses), indicated that the investment has stayed the same. Only three businesses (4%) indicated that investment in their facility has decreased over the same time period. Business Retention and Expansion: Report on Columbia Valley Businesses 22 Figure 58: Historical Investment in facility (past 18 months). Note: 67 respondents Increasing Staying the same Declining 66% 30% 4% 0% 10% 20% 30% 40% 50% 60% 70% 61% of respondents (42 businesses) indicated that there was room for expansion at their site, and 33% (23 businesses) indicated that there was not room at their site. Figure 59: Room for expansion. Note: 69 respondents Maybe No Yes 6% 33% 61% 0% 10% 20% 30% 40% 50% 60% 70% Figure 60: Plans to expand within three years. Note: 69 respondents 68% of respondents (47 businesses) plan to expand within three years, 32% (22 businesses) do not. No, 32% Yes, 68% Figure 61: Adequacy of current site to support expansion. Note: 46 respondents Of the 47 businesses planning expansion within the next three years, 80% (37 businesses) reported that their current site will be adequate. Notably however, 9 businesses (20%) reported that they will have to look for a new site to meet their planned expansion needs. No, 20% Yes, 80% The vast majority of the 47 businesses planning to expand (98% or 46 businesses) indicated that expansion will occur within the community. Business Retention and Expansion: Report on Columbia Valley Businesses 23 Figure 62: Expansion to occur in community. Note: 47 respondents No Yes 2% 98% 0% 20% 40% 60% 80% 100% 120% The total investment anticipated for the planned expansion plans ranges substantially. 23% (7 businesses) anticipate investing between $25,000 and $99,999, an additional 23% (7 businesses) are planning slightly larger investments in the range of $100,000 to $499,999, while an additional 23% (7 businesses) are planning investments between $1 – $4.9 million. Figure 63: Estimated expansion investment. Note: 31 respondents $10-19.9 million 10% $5 - 9.9 million 6% $1-$4.9 million 23% $500,000 - $999,999 16% $100,000-$499,999 23% $25,000-$99,999 23% Less than $25,000 0% 0% 5% 10% 15% 20% 25% Of the 47 businesses planning expansion, 28% (8 businesses) stated that they expect to spend under 50% of their expansion budget on equipment and technology, while 38% (11 businesses) indicated that 50% - 99% of their expansion budget will be devoted to equipment and technology. An additional 34% (10 businesses) will devote 100% of their expansion budget to equipment and technology upgrades. Figure 64: Component of expansion budget for equipment and technology. Note: 29 respondents 100% 50 to 99% Under 50% 34% 38% 28% 0% 5% 10% 15% 20% 25% 30% 35% 40% 12 respondents (46% of businesses) expect to spend under 50% of their expansion budget on real estate, while another 38% (10 businesses) expect to spend 50 – 99%. Figure 65: Component of expansion budget for real estate. Note: 26 respondents 100% 50 to 99% Under 50% 15% 38% 46% 0% 10% 20% 30% Business Retention and Expansion: Report on Columbia Valley Businesses 40% 50% 24 46% (11 respondents) of businesses indicated their facility will expand by less than 1,000 square feet. 17% (4 respondents) of businesses anticipated an expansion of between 1,000 and 4,999 square feet, while an additional 17% (4 businesses) expected an expansion of 20,000 sq.ft or more. Figure 66: Size of facility expansion. Note: 24 respondents 20,000 sq ft or more 10,000 - 19,999 sq ft 5,000-9,999 sq ft 1,000 to 4,999 sq ft Less than 1,000 sq ft 17% 8% 13% 17% 46% 0% 10% 20% 30% 40% 50% Facility Upgrades Figure 67: Recent facility upgrades. Note: 69 respondents 72% of businesses (50 businesses) indicated that there had been recent facility upgrades. Of those 50 businesses, 38% (18 businesses) indicated that those upgrades were completed in the last 3 months. No 28% Yes 72% Figure 68: Planning facility upgrades. Note: 69 respondents 74% (51 businesses) indicated that they are planning facility upgrades, and that the majority (35% or 15 businesses) of those planning upgrades will occur in the next 3 months. No 26% Yes 74% Respondents were also asked to identify any barriers to upgrading. The most frequently cited response was that upgrades were not necessary (58% or 7 businesses). Other factors cited include lack of control (33% or 4 businesses) and financing (8% or 1 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 25 Figure 69: Barriers to upgrading. Note: 12 respondents Landlord is responsible for upgrades 33% No upgrades are necessary 58% Financing 8% 0% 10% 20% 30% 40% 50% 60% 70% Respondents cited a variety of factors that act as constraints to their expansion. Most common of those were financing (22% or 17 businesses), lack of skilled staff (19% or 15 businesses), and local regulations (17% or 13 businesses). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 70: Barriers to expansion. Note: 45 respondents Finance 22% Lack of skilled staff 19% Other 18% Local regulations e.g. zoning 17% Lack of suitable premises 14% Identifying and accessing new markets 3% Energy costs 3% Warehousing 3% Broadband access 3% Problems with Development Approvals 0% 0% 5% 10% 15% 20% 25% Just 33% of businesses planning an expansion (17 businesses) indicated that they have sought assistance with their expansion efforts from an external organization. Of those businesses, the highest numbers had approached the local council (15% or 4 businesses) or the local economic development office (15% or 4 businesses). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 71: Organizations approached for expansion assistance. Note: 17 respondents Other Local Council Community Futures Chamber of Commerce Local Economic Development Office BC Ministry responsible for Economic Development 46% 15% 12% 8% 15% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Business Retention and Expansion: Report on Columbia Valley Businesses 26 Energy Efficiency Figure 72: Considering energy efficiency in expansion plans. Note: 67 respondents No 43% Yes 57% 57% of respondents (38 businesses) are considering energy efficiency in their expansion plans. Figure 73: Awareness of BC Hydro Power Smart. Note: 69 respondents No, 61% Yes, 39% 39% of respondents (27 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. Government Services Respondents were asked to rate a list of government services as poor, fair, good or excellent. Respondents also had the option to rate a service as not applicable to their business.      The services that received the highest number of POOR ratings were availability of couriers and other road transport services (39% or 27 businesses), access to airport facilities (33% or 23 businesses), and availability of buildings for lease or purchase (32% or 22 businesses). The services that received the highest number of FAIR ratings were access to suppliers (41% or 28 businesses), access to airport facilities (30% or 21 businesses), and availability of couriers and other road transport services (26% or 18 businesses). The services that received the highest number of GOOD ratings were water and sewerage supply (61% or 42 businesses), access to highway/roads (52% or 36 businesses) and access to markets (52% or 34 businesses). The services that received the highest number of EXCELLENT ratings were access to highway/roads (22% or 15 businesses), disposal of waste material (16% or 11 businesses), and water and sewerage supply (13% or 9 businesses). The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (94% or 65 businesses), availability of rail transport (93% or 63 businesses) and the availability of warehousing (65% or 45 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 27 Figure 74: Rating of government services. Note: # of respondents varies 1% Availability of warehousing 4% 16% 12% 65% 3% 32% 26% 39% Availability of couriers & other road transport services 0% 1% 1% 0% 4% Availability of rail transport 93% 1% 16% 16% Availability of buildings for lease or purchase 4% 32% 35% 26% 17% 23% 29% Availability of appropriately zoned land 3% 28% Access to suppliers 29% 0% 41% 11% Access to markets 52% 24% 6% 8% 22% Access to highway/ roads 3% 0% 7% Access to airport facilities 16% 13% 9% Access to US Border 6% 4% 0% % Good 30% 33% 37% 44% 1% 1% 0% 3% Access to Port Facilities % Excellent 52% 23% 94% 20% % Fair Business Retention and Expansion: Report on Columbia Valley Businesses 40% % Poor 60% 80% 100% % Not Applicable 28 13% Water and sewerage supply 4% 61% 12% 10% 12% Telecommunications (internet, cell) 23% 25% 3% 9% Recycling 22% 4% 38% 38% 28% 7% Inspections /licensing 46% 19% 12% 16% 16% Disposal of waste material 9% 19% 7% 1% Development approval process % Excellent 22% 13% 0% % Good 49% 10% 26% 20% % Fair 30% % Poor 37% 40% 50% 60% 70% % Not Applicable When asked whether there were any suggestions on how to improve any of the services and infrastructure, 78% of respondents (54 businesses) indicated they had suggestions. The highest number of respondents (19% or 15 businesses) discussed improvements to the recycling, composting and waste management systems, along with improvements to streamline the development approval process (12% or 9 businesses). Figure 75: Key words and responses in respondents' suggestions for improvements to government services “Windermere businesses struggle with highway access and exits.” “Zoning changes in favour of industry and commercial use is a necessity in order to not only grow my business, but also grow the local economy.” “Better recycling process for building.” Business Retention and Expansion: Report on Columbia Valley Businesses 29 Airport Service The Calgary International Airport is the most used airport, with 74% of respondents (48 businesses) indicating they use that airport. The Canadian Rockies International Airport (Cranbrook) was the second most used with 55% (36 businesses). Figure 76: Airport service used. Note: 65 respondents None Kelowna Calgary Cranbrook Kalispell Spokane 5% 2% 74% 55% 0% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Respondents indicated that they would like more flights (43% or 9 businesses) and a shuttle service (38% or 8 businesses) at the local airport. Figure 77: New services at local airport. Note: 21 respondents Shuttle service Vehicle Rentals More flights More destinations 38% 10% 43% 10% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Business Climate Quality of Business Climate The majority of responses rated the overall business climate as good (44% or 30 businesses). Figure 78: Rating of local business climate. Note: 68 respondents Poor Fair Good Excellent 9% 40% 44% 7% 0% 10% 20% 30% 40% 50% Respondents rated the quality of a list of specific business climate factors as either poor, fair, good, excellent or not applicable to their business.   The factors that received the highest number of POOR ratings included housing (67% or 46 businesses), workforce availability (46% or 32 businesses), and local government (32% or 21 businesses). The factors that received the highest number of FAIR ratings included workforce quality (35% or 24 businesses), economic development (32% or 22 businesses), and cultural/recreational amenities (32% or 22 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 30    The factors that received the highest number of GOOD ratings included K-12 education (62% or 41 businesses), tourism services (49% and 33 businesses), and cultural/recreational amenities and workforce stability (42% or 29 businesses each). The factors that received the highest number of EXCELLENT ratings included chamber of commerce (19% or 13 businesses), tourism services (18% or 12 businesses), and cultural and recreational amenities (12% or 8 businesses). The factors that received the highest number of NO OPINION ratings include Community Futures (67% or 43 businesses), Colleges/Universities (39% or 25 businesses), and Technical Training (35% or 23 businesses). Figure 79: Rating of business climate factors. Note: # of respondents varies 3% Local Tax Structure 34% 35% 16% 12% 2% Local Government 26% 9% 8% 8% 5% K-12 education 0% 62% 18% 9% Housing 32% 32% 25% 67% 0% 7% Economic Development 12% 25% 32% 25% 12% Cultural/Recreational Amenities 1% 8% Community Futures 16% 3% 6% 67% 3% Colleges/Universities 7% 0% % Excellent 23% 25% 9% Chamber of Commerce 10% % Good 42% 32% 13% 39% 19% 22% 16% 20% % Fair 36% 30% 40% % Poor Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 70% 80% % No Opinion 31 6% Workforce Stability 22% 1% 10% Workforce Quality 36% 35% 19% 0% 3% 20% Workforce Availability 42% 29% 29% 46% 1% Tourism services 6% 18% 18% 49% 10% 0% 12% Technical Training 26% 26% 35% 0% 10% 20% 30% 40% 50% % Excellent % Good % Fair % Poor % No Opinion 60% 56% of respondents (40 businesses) felt that the business climate is better today than it was 5 years ago. 11% (7 businesses) thought that it is worse, and 24% (16 businesses) believed there was no change in the business climate. Figure 80: Business climate today vs. 5 years ago. Note: 66 respondents No opinion Worse today No change Better today 9% 11% 24% 56% 0% 10% 20% 30% 40% 50% 60% 61% of respondents (42 businesses) expect that the business climate will be better 5 years from today. 6% (4 businesses) expect that it will be worse. Figure 81: Business climate 5 years from today. Note: 69 respondents No opinion 10% Will be worse 6% No change 23% Will be better 61% 0% 10% 20% 30% 40% 50% 60% 70% Strengths and Weaknesses of Business Climate When respondents were asked to list the community’s strengths as a place to do business, the highest number of responses (29% or 20 responses) cited the natural attractions, 28% (19 Business Retention and Expansion: Report on Columbia Valley Businesses 32 businesses) indicated that the location was an important factor and 23% (16 businesses) indicated that tourism contributed. Figure 82: Community’s strengths as a place to do business. Note: 68 respondents Natural attractions 29% Location 28% Tourism 23% Recreational opportunities 19% Supportive community 14% Social network 9% Stable economy 7% Lifestyle 6% Affluent residents 4% Friendliness 3% Customer loyalty 3% Word of mouth 1% 0% 5% 10% 15% 20% 25% 30% 35% Respondents were asked to list the community’s weaknesses as a place to do business. The highest number of responses (23% or 16 respondents) related to the seasonality of the community. The lack of workforce and workforce stability was cited by 20% (14 businesses), as was affordable housing (19% or 13 businesses). Figure 83: Community's weaknesses as a place to do business. Note: 68 respondents Seasonality Lack of workforce & workforce stability Affordable Housing Lack of amenities/Services Lack of Leadership, Vision, & Collaboration Lack of support for local businesses Small Population High cost of living Geographic isolation Lack of suppliers Lack of Transportation Development Constraints (Zoning/Bureaucracy/Permits) Wildfires Poor customer service 23% 20% 19% 13% 12% 12% 12% 9% 9% 9% 7% 7% 6% 1% 0% 5% 10% 15% 20% 25% Business Growth 84% of respondents (58 businesses) indicated that there are barriers to growth. The highest number of respondents (20% or 14 businesses) stated that affordable housing is an important barrier to growing the community’s economy. Other commonly cited barriers include workforce availability (19% or 13 businesses), attitudinal barriers (13% or 9 businesses), and the seasonality of communities (12% or 8 businesses). Business Retention and Expansion: Report on Columbia Valley Businesses 33 Figure 84: Barriers to growth in the community. Note: 58 respondents Affordable housing Available workforce Attitudinal barriers Seasonality Developmental approval process Availability of land Lack of Support for Business Low population Cost of doing business Geographic isolation Marketing / Promotion Lack of Vision and/or Plan Transportation 20% 19% 13% 12% 9% 9% 7% 6% 6% 4% 4% 4% 4% 0% 5% 10% 15% 20% 25% The following excerpts illustrate the barriers discussed: “Too seasonal nature of doing business in the valley!” “Housing shortage, labour shortage.” “Housing is a barrier to stable growth.” “The current mindset of the municipality holds the community back from growth.” Respondents were asked about the level of support they received from various business support providers. The Chamber of Commerce was cited as providing an excellent level of service by 31% of respondents (20 businesses) and a good level of service by 28% of respondents (18 businesses). While the Economic Development Organisation/Commission received the highest Poor response (11% or 7 businesses), it was also rated as excellent and/or good by 35% (22 businesses) of respondents. Business Retention and Expansion: Report on Columbia Valley Businesses 34 Figure 85: Level of service from business support providers. Note: # of respondents varies 2% 5% 0% 2% 0% Scientific Research and Experimental Development Tax Incentive Program 92% 0% 0% 0% 0% 0% National Research Council Industrial Research Assistance 100% 0% 0% 2% 0% 0% Kootenay Aboriginal Business Advocates Society 98% 8% 3% 3% 5% 0% Invest Kootenay 80% 0% 2% 0% 2% 0% Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 97% 14% 21% 11% 11% Economic Development Organization / Commission 0% 43% 9% Continuing Education and Workforce Training 41% 16% 2% 3% 30% 10% 13% 3% 5% 0% Community Futures Chamber of Commerce 3% 2% 0% % Good % Fair 13% 31% 28% 23% 10% 2% 0% 7% 2% Basin Business Advisors % Excellent 69% % Poor Business Retention and Expansion: Report on Columbia Valley Businesses 20% 79% 40% 60% % Unable to assist 80% 100% 120% % Not Applicable 35 64% of respondents (44 businesses) indicated that there are suppliers that could locate in the region. Wholesale suppliers for food and restaurants was the most common recommendation (28% or 11 businesses). Figure 86: Potential Suppliers. Note: 40 respondents Wholesale Supplier for food/restaurants Coffee Roaster Technology companies small-scale furniture manufacturers Freight Companies Office supplies Car wash Utility Service Firms Cleaning Supplies Tire Supplier Pet food / grooming Industrial supply Appliance sales and repairs. Heavy equipment maintenance Storage Facilities Distribution and Warehouse Lifestyle Clothing Architectural Services Office Supplies Parts Supplier 28% 8% 5% 5% 3% 5% 3% 3% 3% 3% 3% 3% 5% 3% 3% 3% 3% 3% 5% 3% 0% 5% 10% 15% 20% 25% 30% When asked what business, sector or industry could be attracted to most strategically benefit the industry, the most common response was tourism (21% or 13 respondents) followed by technology (19% or 12 businesses). Figure 87: Sectors, businesses or industries that could be attracted to region. Note: 62 respondents Applicance Sales and Repairs Wood pellet manufacturing plant Light / Heavy industries Manufacturing Distribution & warehouse facility Small engine repair Trucking Food Packaging & Labelling Health and Wellness Construction Wholesale Food and Beverage Suppliers Fire Fighters Car Wash Transportation Recreation Technology Landscaping Tourism Related 3% 2% 2% 3% 2% 2% 2% 2% 3% 3% 2% 2% 2% 2% 3% 19% 3% 21% 0% 5% Business Retention and Expansion: Report on Columbia Valley Businesses 10% 15% 20% 25% 36 Business Competitiveness and Productivity Businesses were asked to consider the importance of various factors for ensuring business competitiveness over the next five years. The factors that received the highest number of very important ratings include improvement of customer service (81% or 54 businesses) and workplace health and safety (77% or 51 businesses). Figure 88: Importance of business competitiveness factors. Note: # of respondents varies Workplace health and safety Workforce skill development 3% 3% 5% 0% 0% Water/sewer costs Water/sewer availability Strategic alliances (joining with other businesses to provide products/services) New market development outside of region New market development locally 37% 33% 9% 7% 13% 54% 19% 13% 4% 9% 34% 6% 6% 4% 49% 12% 18% 24% 21% 25% 34% 3% 3% 4% 7% 4% 27% 52% 70% 27% 2% 0% 2% Improvement of customer services 0% 0% 3% 0% 1% 55% 36% 39% 13% 6% 10% 4% Improving worker productivity Improvement business management 64% 28% 7% Reliable air transportation New product research and development 77% 12% 81% 16% 7% 31% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % very important % Somewhat important % Not important at all % Not applicable Business Retention and Expansion: Report on Columbia Valley Businesses % not very important 37 Expansion of workforce employees 3% 0% 36% Exchange rate for Canadian dollar 12% 9% 1% Energy costs 3% 1% Availability of telecommunications infrastructure and services 3% 1% 42% 58% 30% 7% 75% 21% 3% 0% 1% Affordable shipping/freight 66% 22% 7% 36% Add or change in business, products or services 8% 2% Accessing capital 3% 4% Access to exporting and international markets 7% 0% 50% 38% 9% 10% 42% 12% 37% 12% 13% 43% 19% 31% 28% 20% % very important % Somewhat important % Not important at all % Not applicable 30% 40% 50% 60% 70% 80% % not very important When asked to rate their business’ performance on a list of productivity drivers, the drivers that received the highest number of:     EXCELLENT ratings include productive workplace culture (36% or 24 businesses) and leadership and management capacity (34% or 23 businesses); GOOD ratings include investing in people and skills (67% or 45 businesses), productive workplace culture (63% or 42 businesses), and organizing work (structures and processes) (63% or 42 businesses); FAIR ratings include innovation and the use of technology (27% or 18 businesses); POOR ratings include measuring impact of productivity efforts/investments and networking and collaboration with other businesses (11% or 7 businesses, respectively). Business Retention and Expansion: Report on Columbia Valley Businesses 38 Figure 89: Performance on key productivity drivers. Note: # of respondents varies 36% Productive workplace culture 63% 1% 0% 0% 22% Organizing work (structures & processes) 63% 12% 3% 0% 12% Networking and collaboration with other businesses 10% 3% 52% 22% 12% Measuring impact of productivity efforts/ investments 5% 11% 55% 18% 34% Leadership and management capacity 58% 7% 0% 0% 22% Investing in people and skills 67% 9% 1% 0% 16% Innovation & the use of technology 1% 3% 0% % Excellent % Good 10% % Fair 52% 27% 20% 30% % Poor 40% 50% 60% 70% 80% % Not Applicable Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (66% or 42 businesses), technology-based businesses (44% or 28 businesses), and relocation of people from urban centres (41% or 26 businesses). For a list of drivers identified as “other”, refer to Appendix A. Business Retention and Expansion: Report on Columbia Valley Businesses 39 Figure 90: Economic drivers with greatest growth potential. Note: 64 respondents Tourism 66% Technology-based businesses 44% Relocation of people from urban centres 41% Construction 28% Green or environmental businesses 22% Health & wellness 19% Other 17% Forestry 17% Manufacturing 17% culture and creative businesses 14% Arts 14% Other niche service businesses (e.g. services to seniors) 13% Education 11% Agriculture 11% Government 3% Finance 0% 0% 10% 20% 30% 40% 50% 60% 70% Proximity to Alberta 64 respondents (95%) reported that they were influenced by their proximity to Alberta. The positive impact of Alberta tourists was noted by 60% of respondents (34 businesses), while an additional 30% (17 businesses) indicated a similar positive impact of customers from Alberta. Figure 91: Impact of Proximity to Alberta. Note: 61 respondents Positive - Alberta tourists Positive - Alberta customers Postive Ripple effect Negative - lack of sales due to PST 60% 30% 5% 5% 0% 10% 20% 30% 40% 50% 60% 70% Assessment and Plans Overall Health The majority of businesses surveyed reported that their company is in overall good health (58% or 40 businesses), 32% (22 businesses) reported that their company’s health is in excellent condition and 10% (7 business) reported that it is fair. No businesses indicated that their company is in poor health. Figure 92: Company’s overall health. Note: 69 respondents Poor Fair Good Excellent 0% 10% 58% 32% 0% 10% 20% 30% 40% Business Retention and Expansion: Report on Columbia Valley Businesses 50% 60% 70% 40 Most businesses with a parent company indicated that the health of that parent company is excellent (24% or 16 businesses). Figure 93: Overall health of parent company. Note: 68 respondents Not applicable 50% Fair 4% Good 22% Excellent 24% 0% 10% 20% 30% 40% 50% 60% Attitude toward Community 49% of respondents (34 businesses) indicated that their local management’s attitude toward the community is excellent and 46% (32 businesses) indicated that it is good. Figure 94: Local management's attitude toward community. Note: 69 respondents Fair 4% Good 46% Excellent 49% 0% 10% 20% 30% 40% 50% 60% Respondents indicated that their parent company’s attitude toward the local community is either excellent (25% or 17 businesses) or good (25% or 17 businesses). Figure 95: Parent company's attitude toward local community. Note: 69 respondents Not applicable 51% Good 25% Excellent 25% 0% 10% 20% 30% 40% 50% 60% Risk of Closing or Downsizing Data indicates that the risk of businesses in the Columbia Valley closing is generally low, with 90% (61 businesses) citing a low risk. Figure 96: Risk of facility closing. Note: 68 respondents Low 90% Moderate 4% High 6% 0% 20% 40% 60% Business Retention and Expansion: Report on Columbia Valley Businesses 80% 100% 41 Similarly, the data indicates that the risk of downsizing is low, with just 1% (1 business) indicating that the risk is high. Figure 97: Risk of facility downsizing. Note: 68 respondents Low Moderate High 93% 6% 1% 0% 20% 40% 60% Business Retention and Expansion: Report on Columbia Valley Businesses 80% 100% 42 RECOMMENDATIONS Next Steps The results of this survey can be used by economic development organizations in the Columbia Valley 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 longterm actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. BRE results can form the backbone of a community’s economic development strategy and, in some cases they are integrated into the community’s Official Community Plan (OCP). Some communities form committees or action groups around the themes or action areas identified in the BRE report to ensure success in implementation. The following steps could further support links to planning and action: 1. Continually communicate (through press, presentations, web/social media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Establish a task force or committee to continue building on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include follow-up discussions with individual businesses (particularly to address red and green-flags). Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans and develop relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring program to assess the impact of implementation efforts. Business Retention and Expansion: Report on Columbia Valley Businesses 43 Potential Action Areas Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,768 employees. The majority (61%) of employees are full-time, followed by 23% temporary, and 16% part-time. The size of the workforce appears to be increasing, with 48% of businesses indicating that the number of employees at their business has been increasing, and 39% indicating that the number has stayed the same. Employment trends are also expected to remain stable or increase, with the majority of businesses expecting the number of casual staff to stay the same, while the number of full time and part time employees is expected to increase. The majority of businesses (87%) recruit locally. 76% of businesses indicate that they currently face recruitment challenges, 70% anticipate future difficulties, and 64% of businesses stated that there were strategies that could address recruitment. Additionally, 15 respondents noted that the lack of skilled staff was posing a barrier to expansion plans. Respondents most commonly rely on social media and other internet sources (33%) to recruit employees, with general advertising (29%) also often used, followed by word of mouth (18%), and employment centres (13%). Actions identified by respondents that could prove helpful include providing access to affordable housing, as well as providing training and educational opportunities. The hospitality and food/beverage service industries featured in areas of future recruitment challenges, as did the area of administrative/clerical and sales/service. Targeted actions that focus on the tourism and food and beverage sectors specifically could be considered. Related to recruitment and retention are a number of identified critical considerations for employees which include housing and the cost of living. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with 17% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 76% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for low youth employment, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), hosting career and employer information fairs, and connecting businesses with local schools and postsecondary institutions. Business Growth & Expansion 57% of businesses in the region report being in a growth cycle and 28% are maturing. The majority of businesses are anticipating low to moderate sales growth over the next year, with 39% expecting moderate sales growth between 1 – 9% and 46% expecting 10-24% sales growth. The majority of businesses (59%) indicate that the majority of their sales are to local markets. 68% indicate that they are planning to expand within the next three years, and the majority (80%) indicate that their existing site is adequate. Businesses also report that employment rates are stable, and that they anticipate increases in part time and full time staff over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on local business conditions. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, identifying and securing new sites if appropriate, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to Business Retention and Expansion: Report on Columbia Valley Businesses 44 expansion which include financing, lack of skilled staff, and local regulations. It is worth noting that very few (33%) businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be medium in size (28% have between 5 and 9 employees, 43% are located in a facility that is between 1,000 sq. ft. and 4,999 sq.ft., and 39% have annual sales under between $1 million and $4.9 million) and independent (just 21% have other locations). The customer base for businesses appears to be diverse, with 47% of businesses indicating that just 1 - 9% of their sales are generated by their top three customers. It is interesting to note that the majority of employees are full-time (61%). Tailoring supports and services to small/medium sized, independent businesses that are focused on the service and tourism sectors will benefit businesses in the Columbia Valley. Services and supports should consider that 40% of functions provided by a business are ‘services’. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses, for example providing shared services such as payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include exploring existing supports available from agencies such as the provincial Small Business BC organisation, go2HR, Destination BC, Kootenay Rockies Tourism, CBT’s Basin Business Advisors Program, or the Kootenay and Boundary Farm Advisors program. Supply Sourcing and Procurement The data indicates that 48% of supplies come from within the local region. The most common response (51%) for the reason why supplies are sourced outside of the local area is that they are not available locally. Interestingly, 58% of respondents indicated that they supply services or products to companies in the community. By far the most common suggestion for a new supplier in the area was for a wholesale supplier for the food and beverage sector. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. A potential related impact could be the diversification of the local economy. Local businesses do not appear to engage actively with government procurement processes, with only 9% of businesses indicating that they have. Education and awareness of the opportunities available through municipal, regional, and provincial procurement processes could be promoted through seminars, profiles in communication material, promotion on relevant websites, and social media channels. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 66% of businesses do have a training budget and 52% indicated that training typically occurs locally. 19% of respondents indicated that the lack of skilled staff was a barrier to their expansion plans. 50% of businesses were aware of new trends, Business Retention and Expansion: Report on Columbia Valley Businesses 45 technologies and industry changes that will require new skills. Additionally, 75% identified specific areas for training/professional development, including industry specific training, first aid, tourism/hospitality, management, sales, and food safe. There is a preference for online/webinar (35%) or classroom (34%) style formats. Future initiatives could include supporting networks to help businesses identify shared training needs, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 20% of respondents indicated that they have a formal succession plan and under half (46%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among local businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Continued Support for Tourism Sector The Columbia Valley is already invested in the tourism sector with a relatively high percentage (48%) of businesses engaged in tourism related industries (14% in the ‘Retail and Wholesale Trade sector, 28% in the ‘Accommodation and Food Services’ sector, and 6% in the ‘Arts, Entertainment and Recreation’ sector). The majority of respondents (66%) indicated that tourism was the economic driver with the greatest growth potential. Respondents also noted that increasing the number of tourism related businesses, followed by technology would benefit the region. Actions to increase and continue the support for the tourism industry could include the continued collaboration between government and local tourism agencies such as Destination British Columbia, Chambers of Commerce, and local businesses. With most businesses expressing optimism for an improved business climate over the next five years, there is much positive support and social capital to build on the work already occurring in this area. Addressing Seasonality The seasonality of the community was identified by 23% of respondents (16 businesses) when asked about weaknesses of the community as a place to do business. Seasonality was also referenced by 8 respondents (12%) as a barrier to growth. A number of businesses referenced the need to expand the tourism season and encourage tourism during the entire year. Action in this area may include reviewing marketing initiatives, engaging with tourism operators to discuss barriers and opportunities to decrease the seasonality challenge, and engage with groups like Kootenay Rockies Tourism and Destination BC to explore options to change this characteristic. Business Retention and Expansion: Report on Columbia Valley Businesses 46 APPENDIX A: DATA TABLES Company Information Figure 1: Industry Classification NAICS Agriculture, forestry, fishing and hunting Mining, quarrying, and oil and gas extraction Construction Manufacturing Retail and Wholesale Trade 11 Percent of Question Respondents 1 1% 21 1 1% 23 31-33 41-45 7 8 10 10% 12% 14% Information and Cultural Industries 51 1 1% Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific and Technical Services Administrative Support, Waste Management and Remediation Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services Total 52 53 54 2 4 3 3% 6% 4% 56 5 7% 61 62 71 72 81 0 0 4 19 4 69 0% 0% 6% 28% 6% 100% Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 2: Functions located at this facility Count Percent of Question Respondents 7 23 15 17 28 61 5% 15% 10% 11% 19% 40% Engineering/RD Distribution Warehousing Manufacturing Headquarters Services Business Retention and Expansion: Report on Columbia Valley Businesses Count 47 Total 151 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 3: Who are your competitors? Where are your competitors located? Count Outside Canada In Province In Canada In Region Total Survey Participants: Question Respondents: No Response Count: Response Rate: 4 13 14 52 83 Percent of Question Respondents 5% 16% 17% 63% 69 64 5 93% Figure 4: What are the factors that make your company successful here? Count Percent of Question Respondents Competitive pricing proximity to natural resources Innovation Lack of Competition Location Diversified product / services Experience Lifestyle Natural resources Networking Niche market Reputation Niche product Community support Customer Service Demand for products and services Workforce Quality product / service 2 2 1 9 22 3 2 5 2 2 4 8 4 5 4 2 25 13 2% 2% 1% 8% 19% 3% 2% 4% 2% 2% 3% 7% 3% 4% 3% 2% 22% 11% Business Retention and Expansion: Report on Columbia Valley Businesses 48 Total 115 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 5: Why did you choose this community to locate your business? Count Business expansion Established business Experience in the business Hobby turned into a business Connections to the community Already living here Close to family Location Born and raised here Bought an existing business Business opportunity Lifestyle Total 1 1 2 0 0 6 2 27 5 17 20 9 90 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 6: Does this company have another location elsewhere? Count Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 14 55 69 Percent of Question Respondents 1% 1% 2% 0% 0% 7% 2% 30% 6% 19% 22% 10% Percent of Question Respondents 20% 80% 100% 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 49 Figure 7: Does this company have another location elsewhere? If Yes, where? Count Outside Canada Elsewhere in nation In Province Total 2 6 12 20 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 69 14 55 14 69 Figure 8: Location of company's headquarters Outside Canada Elsewhere in Canada In Province Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 9: Life cycle stage of firm's primary product/service Count 0 4 47 51 Percent of Question Respondents 10% 30% 60% Percent of Question Respondents 0% 8% 92% 69 51 18 74% Count Declining Emerging Growing Maturing Total 4 7 39 19 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses Percent of Question Respondents 6% 10% 57% 28% 50 Figure 10: How long has this facility operated Count <1 Year 1-4 Years 5-9 Years 10-19 Years >20 Years Total 2 9 10 21 27 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 11: What is this company's ownership status? Publicly owned Privately owned Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 3 65 68 3% 13% 14% 30% 39% Percent of Question Respondents 4% 96% 69 68 1 99% Figure 11b: What is this company's legal status? Count Limited liability partnership (LLP) Partnership Non-profit Sole proprietorship Corporation Other Total 2 3 2 6 55 1 69 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents Percent of Question Respondents 3% 4% 3% 9% 80% 1% 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 51 Figure 12: Has the local facility changed owners or managers in the past 5 years? Yes No Total Count 20 49 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 12b: If Yes, describe the local impact of the change Count Neutral Negative Positive Percent of Question Respondents 29% 71% Percent of Question Respondents Total 4 1 14 74% 19 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 69 19 50 20 68 Figure 12c: Is an ownership change pending for this facility? Count Percent of Question Respondents Yes 11 16% No Total 56 67 84% Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 13: If Yes what is the anticipated time frame 21% 5% 69 67 2 97% Count Business Retention and Expansion: Report on Columbia Valley Businesses Percent of Question Respondents 52 1 year or less 2 years 3 years or more Total 3 2 4 9 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 69 9 60 11 67 82% 33% 22% 44% Count Percent of Question Respondents Sell/transfer to a family member Sell to another company Sell/transfer to a non-family member 2 1 25% 13% 5 63% Other 0 0% Total 8 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 69 8 61 11 67 73% Figure 14: If Yes, how do you intend to exit the business? Figure 15: Is there a formal succession plan? Yes No Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 14 55 0 69 Percent of Question Respondents 20% 80% 0% 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 53 Figure 15b: Have you identified a successor to your business? Yes No Total Count 20 49 69 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 29% 71% 69 69 0 100% Figure 15c: If Yes, have you been assisted in preparation of a succession plan? Count Yes No Total 11 3 14 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 69 14 55 20 69 Figure 16: Does this firm have a current written business plan? Count Yes No Total 32 37 69 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 79% 21% Percent of Question Respondents 46% 54% 69 69 0 100% Local Workforce Figure 17: Total number of employees at this facility*: Total employees Less than 5 5-9 Count Percent of Question Respondents 10 19 Business Retention and Expansion: Report on Columbia Valley Businesses 14% 28% 54 10-19 20-49 50-99 Greater than 100 Total Total employees: Survey Participants: Question Respondents: No Response Count: Figure 18: Nature of Employment Full Time Part Time Temporary Total Survey Participants: Question Respondents: Response Rate: Figure 19: Historical employment trend Declining Staying the same Increasing No Response Total Survey Participants: Question Respondents: No Response Count: Figure 20: How did the number of staff change, if at all, in the last 3 years?: Fulltime Increased Stayed the same Decreased Total 18 16 3 3 69 26% 23% 4% 4% 1,768 69 69 0 Count 1085 279 404 1768 Percent of Question Respondents 61% 16% 23% 69 69 100% Count 8 26 32 3 69 Percent of Question Respondents 12% 39% 48% 69 66 3 Count Percent of Question Respondents 26 26 13 65 Business Retention and Expansion: Report on Columbia Valley Businesses 40% 40% 20% 55 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20b: How did the number of staff change, if at all, in the last 3 years?: Part-time Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20c: How did the number of staff change, if at all, in the last 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21: How do you expect the number of staff to change, if at all over the next 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: 69 65 4 94% Count Percent of Question Respondents 26 25 4 55 34% 62% 3% 69 55 14 80% Count Percent of Question Respondents 4 10 2 16 25% 63% 13% 69 16 53 23% Count Percent of Question Respondents 44 23 2 69 64% 33% 3% 69 69 Business Retention and Expansion: Report on Columbia Valley Businesses 56 No Response Count: Response Rate: Figure 21b: How do you expect the number of staff to change, if at all over the next 3 years?: Part-time Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21c: How do you expect the number of staff to change, if at all over the next 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22: Describe the majority of essential personnel at this location Less than 25 26 - 34 35 - 49 50 or older Total Survey Participants: Question Respondents: No Response Count: 0 100% Count Percent of Question Respondents 30 27 3 60 50% 45% 5% 69 60 9 87% Count Percent of Question Respondents 6 11 0 17 10% 88% 3% 69 17 52 25% Count Percent of Question Respondents 12 13 32 12 69 17% 19% 46% 17% 69 69 0 Business Retention and Expansion: Report on Columbia Valley Businesses 57 Response Rate: Figure 23: Describe the wage scale here compared to all other firms locally Lower than Same as Greater than Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23b: Average hourly wage: Skilled/Professional $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $50-$99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23c: Average hourly wage: Semi-skilled $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $100 or more Total Survey Participants: 100% Count Percent of Question Respondents 3 25 32 60 5% 42% 53% 69 60 9 87% Count Percent of Question Respondents 0 0 10 22 18 2 0 52 0% 0% 19% 42% 35% 4% 0% 69 52 17 69% Count 0 6 25 15 4 0 50 Percent of Question Respondents 0% 12% 50% 30% 8% 0% 69 Business Retention and Expansion: Report on Columbia Valley Businesses 58 Question Respondents: No Response Count: Response Rate: Figure 23d: Average hourly wage: Entry-level $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24: Is the number of unfilled positions Stable Decreasing Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 25: Where does the company attract the majority of its workers from? Internationally Nationally Provincially Locally Total Survey Participants: Question Respondents: No Response Count: Response Rate: 50 19 72% Count 4 17 18 6 1 46 Percent of Question Respondents 9% 37% 39% 13% 2% 69 46 23 67% Count 40 3 21 64 Percent of Question Respondents 63% 5% 33% 69 56 5 81% Count Percent of Question Respondents 1 5 3 60 69 1% 7% 4% 87% 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 59 Figure 26: Recruitment and retention challenges Retention challenges Recruitment challenges Figure 26b: Is employee retention a problem? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 26c: Is the company experiencing recruitment problems with any employee positions or skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 27: If applicable, please describe any challenges and / or efforts you have undertaken to retain employees. Count Percent 21 52 Count 22 47 69 32% 76% Percent of Question Respondents 32% 68% 69 69 0 100% Count Percent of Question Respondents 52 16 68 76% 24% 69 68 1 99% Count Percent of Question Respondents Housing 10 8% Training Support a positive environment Flex Time Bonuses Competitive wages Benefits 12 10% 7 6% 14 9 37 18 12% 8% 31% 15% Business Retention and Expansion: Report on Columbia Valley Businesses 60 None 12 Total 119 Survey Participants: 67 Question Respondents: 63 No Response Count: Response Rate: 4 94% Figure 28: If applicable, please describe any recruitment activities or strategies you have undertaken to attract employees. Benefits Employment Centre Social Media / Internet Job Fairs Recruiting Firms Word of mouth Advertising Total Count Percent of Question Respondents 2 16 40 3 2 22 35 120 Survey Participants: 67 Question Respondents: No Response Count: Response Rate: 62 Figure 29: Is the company experiencing recruitment problems with any employee positions or skills? If Yes, in which category(s)? Construction/Contractors 10% 2% 13% 33% 3% 2% 18% 29% 5 93% Count Percent of Question Respondents 9 11% Maintenance 4 5% Mechanics Professional/Technical Food/Beverage Service Healthcare Professionals Administrative/Clerical 6 6 17 1 5 8% 8% 22% 1% 6% Business Retention and Expansion: Report on Columbia Valley Businesses 61 Hospitality Service Other Total 13 18 79 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 69 52 17 Figure 29b: Is the company experiencing recruitment problems with any employee positions or skills? Other (specify job roles/titles) Mainly cooks and kitchen staff Especially cooks and kitchen staff Millwrights have to go to Vancouver (BCIT) or NAIT. Shift boss - Chartered professional accountant 16% 23% 75% Count Percent of Question Respondents 1 8% 1 8% 1 8% 1 8% 1 8% 1 8% 1 8% 1 8% 1 8% 1 8% - Bakery / Pastry chef certified (master) restoration technician skilled landscapers / landscaping foreman kitchen staff especially has proven to be an issue. Technical Installers - qualified guides - part time housekeepers Zipline guides Total 1 8% 1 12 8% Survey Participants: 69 Question Respondents: 12 Business Retention and Expansion: Report on Columbia Valley Businesses 62 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 30: Do you anticipate future recruiting difficulties i.e. 3-5 year? Yes No Total 0 18 52 67% Count 48 21 69 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 30b: Do you anticipate future recruiting difficulties i.e. 3-5 year?: If Yes, in what area(s)? Healthcare Professionals Percent of Question Respondents 70% 30% 69 69 0 100% Count Percent of Question Respondents 1 1% Maintenance 3 4% Mechanics Sales/Service Administrative/Clerical Food/Beverage Service Hospitality Service Other Total 5 7 6 18 16 12 68 7% 10% 9% 26% 24% 18% 1 Survey Participants: 69 Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 48 21 48 69 100% Business Retention and Expansion: Report on Columbia Valley Businesses 63 Figure 30c: Do you anticipate future recruiting difficulties i.e. 3-5 year? : Other (specify job roles/titles) trades men - Coffee Roasting - Packaging - Chartered professional accountant - Bakery / Pastry chef certified (master) restoration technician skilled landscapers / landscaping foreman Technical Installers Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 31: Is there anything we can do to help overcome issues with employee recruitment? Yes No Total Count Percent of Question Respondents 1 14% 1 14% 1 14% 1 14% 1 14% 1 14% 1 7 14% 69 12 5 12 48 100% Count Percent of Question Respondents 44 25 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 31b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, please explain Count 64% 36% Percent of Question Respondents Business Retention and Expansion: Report on Columbia Valley Businesses 64 childcare access and affordability transportation Employee Sharing Promote the area Provide training and education Support affordable housing Help with foreign worker program Better job advertising Total 4 46 Survey Participants: 69 Question Respondents: 43 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 26 Figure 32: Skill Level of Majority of Workforce Skilled/Professional Semi-skilled Entry-level Figure 32b: Percent of workforce: Skilled/Professional less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: 1 2% 6 0 13% 0% 5 11% 6 13% 20 43% 4 9% 9% 44 69 98% Count 31 19 16 Count Percent of Question Respondents 46% 32% 29% Percent of Question Respondents 23 13 14 17 67 34% 19% 21% 25% 69 67 Business Retention and Expansion: Report on Columbia Valley Businesses 65 No Response Count: Response Rate: Figure 32c: Percent of workforce: Semi-skilled less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32d: Percent of workforce: Entry-level less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33: Does the company provide a training budget in order to upgrade employee's skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 2 97% Count 22 18 12 7 59 Percent of Question Respondents 37% 31% 20% 12% 69 59 10 86% Count 29 11 8 8 56 Percent of Question Respondents 52% 20% 14% 14% 69 56 13 81% Count Percent of Question Respondents 44 25 69 64% 36% 69 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 66 Figure 33b: Does the company offer in-house training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33c: Does the company use Contracted Training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 34: Are you aware of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 35: Are there any areas of training or professional development that would be of benefit to you or your employees? Count Percent of Question Respondents 66 3 69 96% 4% 69 69 0 100% Count Percent of Question Respondents 29 40 69 42% 58% 69 69 0 100% Count Percent of Question Respondents 34 34 68 50% 50% 69 68 1 99% Count Percent of Question Respondents Business Retention and Expansion: Report on Columbia Valley Businesses 67 Yes No Total 52 17 69 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 35b: Are there any areas of training or professional development that would be of benefit to you or your employees?: If Yes, what are they? 75% 25% 69 69 0 100% Count Percent of Question Respondents Tourism / Hospitality 7 7% First Aid Management Social Media industry specific training Food Safe Leadership Software Communications Accounting Sales 8 6 3 21 6 4 3 1 5 6 8% 6% 3% 22% 6% 4% 3% 1% 5% 6% Mental Health 2 2% Customer Service Total 4 97 4% Survey Participants: 69 Question Respondents: 52 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 17 Response Rate: 51 68 75% Business Retention and Expansion: Report on Columbia Valley Businesses 68 Figure 36: What new training might you need to consider in the next five years? Facilities Maintenance Hospitality Customer Service Human Resources Business Management Driver and Equipment Operator Training Culinary training Social Media Accounting Electric Vehicle Beer and Wine production Import / Export Training Project Management Customer service Government regulations Internet and online sales Sales & Marketing Social Media Leadership Computer and technology training Count Percent of Question Respondents 1 1 2 1 1 2% 2% 4% 2% 2% 1 2% 2 6 2 1 4% 11% 4% 2% 1 2% 1 1 2 2 5 4 6 1 2% 2% 4% 4% 9% 8% 11% 2% 10 19% Construction Industry related skills and knowledge 7 13% New Building Technologies 1 2% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 37: What modes of education/training work best for you? Individual coaching 59 69 53 16 77% Count Percent of Question Respondents 27 Business Retention and Expansion: Report on Columbia Valley Businesses 24% 69 Online/ Webinar training Classroom Other Total 39 38 8 112 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 67 2 97% Figure 38: When your staff attend training/certification, where do they usually access the training? United States Rest of Canada Regional British Columbia Local Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 5% 15% 9% 20% 52% 69 65 4 94% Count Yes No Not applicable Total 3 64 2 69 Figure 39: Please indicate which issues you believe are critical to your employees? Transportation Child care Percent of Question Respondents 4 13 8 17 45 87 Union status Survey Participants: Question Respondents: No Response Count: Response Rate: 35% 34% 7% Percent of Question Respondents 4% 93% 3% 69 69 0 100% Count Percent of Question Respondents 38 37 Business Retention and Expansion: Report on Columbia Valley Businesses 57% 55% 70 Housing Cost of living Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 39b: Please indicate which issues you believe are critical to your employees?: If Other, please list any other issues Benefits Seasonal Nature of Work Flextime Wages 60 52 5 192 67 67 0 100% Count Percent of Question Respondents 3 1 1 1 Total 6 Survey Participants: Question Respondents: 67 5 No Response Count: 0 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 90% 78% 7% 60.00% 20.00% 20.00% 20.00% 5 67 100% Business Retention and Expansion: Report on Columbia Valley Businesses 71 Sales Count Percent of Question Respondents Under $25,000 $49,999 to $25,000 $99,999 to $50,000 $499,999 to $100,000 $999,999 to $500,000 $4.9 million to 1 million $9.9 million to 5 million $19.9 million to 10 million over $20 million Total 0 1 1 7 5 14 2 0% 3% 3% 19% 14% 39% 6% 3 8% 3 36 8% Survey Participants: Question Respondents: No Response Count: Response Rate: 69 36 33 52% Figure 40: Annual sales at this facility (optional) Figure 41: Is the market for your product Count Stable Decreasing Increasing Total 18 2 49 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 42: Is the market share (compared to your competitors) of your company's products Count Percent of Question Respondents 26% 3% 71% Percent of Question Respondents Business Retention and Expansion: Report on Columbia Valley Businesses 72 Stable Decreasing Increasing Total 25 2 37 64 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 64 5 93% Figure 43: What is the projected sales growth in the next year at this business? Count Declining 0% 1 - 9% 10 - 24% 25 - 49% Over 100% Total 2 4 26 31 2 2 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 67 2 97% Figure 44: Historical sales trend: At this business (past five years) Count Declining Staying the same Increasing Not applicable Total 3 12 48 2 65 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 65 4 94% 39% 3% 58% Percent of Question Respondents 3% 6% 39% 46% 3% 3% Percent of Question Respondents 5% 18% 74% 3% Business Retention and Expansion: Report on Columbia Valley Businesses 73 Figure 44b: Historical sales trend: At the parent company Declining Staying the same Increasing Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 44c: Historical sales trend: Within the industry Count Percent of Question Respondents 0 8 25 28 46% 61 0% 13% 41% 69 61 8 88% Count Declining Staying the same Increasing Not applicable Total 7 13 42 0 62 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 62 7 90% Figure 44d: Historical export sales trend Count Declining Staying the same Increasing Not applicable Total 1 1 3 63 68 Survey Participants: 69 Percent of Question Respondents 11% 21% 68% 0% Percent of Question Respondents 1% 1% 4% 93% Business Retention and Expansion: Report on Columbia Valley Businesses 74 Question Respondents: No Response Count: Response Rate: 68 1 99% Figure 46: Percent of total sales generated by top 3 customers Count 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total 21 14 3 5 2 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 67 45 22 67% Figure 47: Source of Majority of Sales Percent of Question Respondents 47% 31% 7% 11% 4% Percent of Question Respondents Count Local Provincial National United States International Total 38 2 23 0 0 59 Fig 47b. Do you supply your products or services to any company in the community or region? Count Yes No Total 40 29 69 Survey Participants: Question Respondents: 69 69 59% 5% 50% 0% 0% Percent of Question Respondents 58% 42% Business Retention and Expansion: Report on Columbia Valley Businesses 75 No Response Count: Response Rate: 0 100% Figure 48: International trade status Count Import Export None Not applicable Total 3 3 17 46 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 49: Do you engage in government procurement? Count Yes 6 No Total 61 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 67 67 0 100% Figure 50: Source of Majority of Supplies Local Provincial National United States Percent of Question Respondents 4% 4% 25% 67% Percent of Question Respondents 9% 91% Count Percent of Question Respondents 28 12 24 1 48% 23% 42% 4% Business Retention and Expansion: Report on Columbia Valley Businesses 76 International 2 Figure 51: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area? No applicable to this business Loyalty to current supplier No control - head office decision Quality of available products Unaware of local venders Higher costs locally Product not available here Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: 9% Count Percent of Question Respondents 3 3% 1 1% 4 4% 7 7% 0 0% 35 33% 55 51% 2 107 2% 67 65 2 97% Facilities and Equipment Figure 52: What is the square footage of your current facility?: Square feet Count less than 1,000 sq ft 1,000-4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more Total 6 30 10 5 18 69 Survey Participants: 69 Percent of Question Respondents 9% 43% 14% 7% 26% Business Retention and Expansion: Report on Columbia Valley Businesses 77 Question Respondents: No Response Count: Response Rate: Figure 53: Condition of facility 69 0 100% Count Excellent Good Fair Poor Total 16 39 9 5 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 54: Condition of equipment 0 100% Count 19 36 11 1 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Owned 23% 57% 13% 7% 69 Excellent Good Fair Poor Total Figure 55: Status of facility Percent of Question Respondents Percent of Question Respondents 28% 54% 16% 1% 67 2 97% Count Percent of Question Respondents 40 58% Business Retention and Expansion: Report on Columbia Valley Businesses 78 Leased Total 29 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 56: Status of facility: If Leased, what is the length of term remaining 69 0 100% Count <1 Year 1-2 Years 3-5 Years >5 Years Total 6 0 4 0 10 Survey Participants: Question Respondents: 69 No Response Count: 59 Parent Question 'Leased' Respondents: Parent Question Respondents: Figure 56b: Are you planning on renewing current lease? 42% Percent of Question Respondents 60% 0% 40% 0% 10 29 69 Count Yes No Total 25 5 30 Survey Participants: Question Respondents: 69 No Response Count: 39 Percent of Question Respondents 83.33% 16.67% 30 Business Retention and Expansion: Report on Columbia Valley Businesses 79 Parent Question 'Leased' Respondents: 29 Parent Question Respondents: 69 Response Rate: 103% Figure 57: Do you have a preference of lease vs own? Count Lease Own Total 10 55 65 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 58: Historical investment trends: Over past 18 months in the facility 4 94% Count 3 20 44 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Yes No 15% 85% 65 Declining Staying the same Increasing Total Figure 59: Is there room for expansion at this site? Percent of Question Respondents Percent of Question Respondents 4% 30% 66% 67 2 97% Count Percent of Question Respondents 42 23 61% 33% Business Retention and Expansion: Report on Columbia Valley Businesses 80 Maybe Total 4 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 60: Does the company plan to expand in the next three years? 69 0 100% Count Yes No Total 47 22 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 61: Does the company plan to expand in the next three years?: Is your current site adequate for the proposed expansion? Yes No Total Percent of Question Respondents 68% 32% 69 0 100% Count 37 9 46 Survey Participants: Question Respondents: 69 No Response Count: 23 Parent Question 'Yes' Respondents: Parent Question Respondents: 6% Percent of Question Respondents 80% 20% 46 47 69 Business Retention and Expansion: Report on Columbia Valley Businesses 81 Figure 62: Does the company plan to expand in the next three years?: Will it be in this community? Yes No Total Count 46 1 47 Survey Participants: Question Respondents: 69 No Response Count: 22 Parent Question 'Yes' Respondents: Parent Question Respondents: Figure 63: Does the company plan to expand in the next three years?: Estimated total investment Less than $25,000 $25,000-$99,999 $100,000-$499,999 $500,000 - $999,999 $1-$4.9 million $5 - 9.9 million $10-19.9 million Total Percent of Question Respondents 98% 2% 47 47 69 Count 0 7 7 5 7 2 3 31 Survey Participants: Question Respondents: 69 No Response Count: 38 Parent Question 'Yes' Respondents: 47 Percent of Question Respondents 0% 23% 23% 16% 23% 6% 10% 31 Business Retention and Expansion: Report on Columbia Valley Businesses 82 Figure 64: Does the company plan to expand in the next three years?: Approximate percentage equipment/technology Under 50% 50 to 99% 100% Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 65: Does the company plan to expand in the next three years?: Approximate percentage real estate Under 50% 50 to 99% 100% Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Count Question Respondents 8 11 10 29 28% 38% 34% 69 29 40 47 69 62% Count 12 10 4 26 Percent of Question Respondents 46% 38% 15% 69 26 43 47 69 55% Business Retention and Expansion: Report on Columbia Valley Businesses 83 Figure 66: Does the company plan to expand in the next three years?: Estimated facility size increase (square feet) Less than 1,000 sq ft 1,000 to 4,999 sq ft 5,000-9,999 sq ft 10,000 - 19,999 sq ft 20,000 sq ft or more Total Count 11 4 3 2 4 24 Survey Participants: Question Respondents: 69 No Response Count: 45 Parent Question 'Yes' Respondents: 47 Parent Question Respondents: 69 Response Rate: 51% Figure 67: Have there been any recent facility upgrades? 46% 17% 13% 8% 17% 24 Count Yes No Total 50 19 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 67b: Have there been any recent facility upgrades? If Yes, when?: Month scale Percent of Question Respondents Percent of Question Respondents 72% 28% 69 0 100% Count Percent of Question Respondents Business Retention and Expansion: Report on Columbia Valley Businesses 84 3 6 12 18 24 36 Total 18 5 16 1 4 3 47 Survey Participants: Question Respondents: 69 No Response Count: 22 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 68: Planning any upgrades to the facility? 47 50 69 94% Count Yes No Total 51 18 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 Figure 68b: Planning any upgrades to the facility? If Yes, when?: Month scale 3 6 12 24 36 38% 11% 34% 2% 9% 6% Percent of Question Respondents 74% 26% 0 100% Count Percent of Question Respondents 15 6 13 7 2 35% 14% 30% 16% 5% Business Retention and Expansion: Report on Columbia Valley Businesses 85 Total 43 Survey Participants: Question Respondents: 69 No Response Count: 26 43 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 69: If No, are there any barriers to upgrading you wish to identify? 49 67 88% Count Percent of Question Respondents 1 8% 7 58% 4 33% Financing No upgrades are necessary Landlord is responsible for upgrades Total 12 Survey Participants: Question Respondents: 69 No Response Count: 57 Parent Question 'No' Respondents: Parent Question Respondents: Response Rate: Figure 70: What, if any, are the major constraints on your expansion? (Please check all that are applicable) Broadband access Warehousing 12 18 69 67% Count Percent of Question Respondents 2 2 3% 3% Business Retention and Expansion: Report on Columbia Valley Businesses 86 Energy costs Local regulations e.g. zoning Problems with Development Approvals Identifying and accessing new markets Other (please specify): Finance Lack of suitable premises 2 3% 13 17% 0 0% 2 3% 14 18% 17 22% 11 14% Lack of skilled staff 15 19% Total 78 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 70b: What, if any, are the major constraints on your expansion? (Please check all that are applicable): Other (please specify) affordable housing 45 24 74% Count Percent of Question Respondents 1 7% staff accommodation 1 7% having the time lack of space 2 6 14% 43% cost of building 1 7% size of local economy availability of materials Total 1 7% 2 14% 14 Survey Participants: 69 Business Retention and Expansion: Report on Columbia Valley Businesses 87 Question Respondents: No Response Count: Parent Question 'Other (please specify):' Respondents: Parent Question Respondents: Response Rate: Figure 71: Have you approached anybody in local/provincial/federal government or business development organizations to discuss your expansion plans? Yes No Total 14 55 14 69 100% Count 17 34 51 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 71b: If Yes, which have you approached? BC Ministry responsible for Economic Development Local Economic Development Office Chamber of Commerce Community Futures Local Council Other Total Percent of Question Respondents 33% 67% 69 51 18 74% Count Percent of Question Respondents 1 4% 4 15% 2 8% 3 4 12 12% 15% 46% 26 Business Retention and Expansion: Report on Columbia Valley Businesses 88 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 69 17 52 17 Parent Question Respondents: 51 Response Rate: 100% Figure 71c: If Yes, which have you approached?: Other (please specify) Count 1 Parks Canada BDC (Business Development Bank of Canada) Shuswap Indian Band BBA (Basin Business Advisors) Columbia Basin Broadband Corp. RDEK CBT (Columbia Basin Trust) Percent of Question Respondents 8% 2 1 1 1 3 4 Total 13 Survey Participants: Question Respondents: 69 No Response Count: 0 Parent Question 'Other' Respondents: 12 Parent Question Respondents: 51 Response Rate: 100% 15% 8% 8% 8% 23% 31% 12 Business Retention and Expansion: Report on Columbia Valley Businesses 89 Figure 72: Have you factored improvements in energy efficiency in your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 73: Are you aware of BC Hydro Power Smart resources that are available to you? Count 38 29 67 Percent of Question Respondents 57% 43% 67 67 0 100% Count Yes No Total 27 42 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Percent of Question Respondents 39% 61% 69 0 100% Business Retention and Expansion: Report on Columbia Valley Businesses 90 Government Services Figure 74: Government Services Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Access to Port Facilities 65 94% 2 3% 0 0% 1 1% 1 1% 69 Access to US Border 30 44% 3 4% 4 6% 25 37% 6 9% 68 Access to airport facilities 9 13% 23 33% 21 30% 11 16% 5 7% 69 Access to highway/ roads 0 0% 2 3% 16 23% 36 52% 15 22% 69 Access to markets 5 8% 4 6% 16 24% 34 52% 7 11% 66 Access to suppliers 0 0% 20 29% 28 41% 19 28% 2 3% 69 Availability of appropriately zoned land 20 29% 16 23% 12 17% 18 26% 3 4% 69 Availability of buildings for lease or purchase 24 35% 22 32% 11 16% 11 16% 1 1% 69 Availability of rail transport 63 93% 3 4% 0 0% 1 1% 1 1% 68 Availability of road transport services 0 0% 27 39% 18 26% 22 32% 2 3% 69 Availability of warehousing 45 65% 8 12% 3 4% 11 16% 1 1% 69 Development approval process 25 37% 18 26% 9 13% 15 22% 1 1% 68 Business Retention and Expansion: Report on Columbia Valley Businesses 91 Disposal of waste material 5 7% 13 19% 6 9% 34 49% 11 16% 69 Inspections /licensing 11 16% 8 12% 13 19% 32 46% 5 7% 69 Recycling 3 4% 19 28% 15 22% 26 38% 6 9% 69 Telecommunications (internet, cell) 2 3% 17 25% 16 23% 26 38% 8 12% 69 Water and sewerage supply 3 4% 7 10% 8 12% 42 61% 9 13% 69 Survey Participants: 69 75 Business Retention and Expansion: Report on Columbia Valley Businesses 92 Figure 75: Do you have any suggestions on how to improve any of the services and infrastructure listed above? Yes No Total Percent of Question Respondents Count 54 15 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 78.26% 21.74% 69 69 0 100% Figure 75b: Do you have any suggestions on how to improve any of the services and infrastructure listed above?: If Yes, how? Improve Electrical Service Improve Emergency Response Reduce cost for utilities Provide access to sanitary waste water dumping Improve Bottle Return Facility Improve signage for businesses along the highway Percent of Question Respondents Count 1 1 6 1% 1% 8% 2 3% 1 1% 1 1% Improve courier services 7 9% Increase Government Efficiency Improve Communication and Collaboration among businesses and government 1 1% 1 1% Install / Upgrade Broadband 3 4% 5 6% 1 1% 5 6% 2 3% 2 3% Expand electronic communication services (Cell phone/ Internet/ Broadband/Fiber) provide access to rail service Improve highway and road quality and service Increase / Update Water Services Provide local wholesaler Improve warehousing options Increase public transportation 3 3 4% 4% Business Retention and Expansion: Report on Columbia Valley Businesses 93 Create New Business Welcome Package 1 1% Improve Airport service 1 1% Improve shipping and receiving Streamline development approval processes Improve recycling and waste management 2 3% 9 12% 15 19% Create access to commercial and industrial land 4 5% Total 77 Survey Participants: 69 Question Respondents: 54 No Response Count: 15 Parent Question 'Yes' Respondents: 54 Parent Question Respondents: 69 Response Rate: 100% Figure 76: Which airport services do you use? Count Spokane Kalispell Cranbrook Calgary Kelowna None Total Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 2 0 36 48 1 3 82 3% 0% 55% 74% 2% 5% 69 65 4 94% Business Retention and Expansion: Report on Columbia Valley Businesses 94 Figure 77: Which airport services do you use?: What services would you like to see at the local airport? (where appropriate) More destinations More flights Vehicle Rentals Shuttle service Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count Percent of Question Respondents 2 9 2 8 21 10% 43% 10% 38% 69 21 48 30% Business Climate Figure 78: Please rate the local business climate Percent of Question Respondents Count Excellent Good Fair Poor Total 5 30 27 6 68 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 68 1 99% 7% 44% 40% 9% Business Retention and Expansion: Report on Columbia Valley Businesses 95 Figure 79: Business climate ratings No Opinion % No Opinion Poor % Poor Fair % Fair Good % Good Excellent % Excellent No Respons e Chamber of Commerce 11 16% 5 7% 15 22% 25 36% 13 19% 0 Colleges/Universities 25 39% 6 9% 16 25% 15 23% 2 3% 5 Community Futures 43 67% 4 6% 2 3% 10 16% 5 8% 5 Cultural/Recreational Amenities 1 1% 9 13% 22 32% 29 42% 8 12% 0 Economic Development 8 12% 17 25% 22 32% 17 25% 5 7% 0 Housing 0 0% 46 67% 17 25% 6 9% 0 0% 0 K-12 education 12 18% 3 5% 5 8% 41 62% 5 8% 3 Local Government 6 9% 21 32% 17 26% 21 32% 1 2% 3 Local Tax Structure 8 12% 11 16% 24 35% 23 34% 2 3% 1 Technical Training 23 35% 17 26% 17 26% 8 12% 0 0% 4 Tourism services 7 10% 4 6% 12 18% 33 49% 12 18% 1 Workforce Availability 1 1% 32 46% 20 29% 14 20% 2 3% 0 Workforce Quality 0 0% 13 19% 24 35% 25 36% 7 10% 0 Business Retention and Expansion: Report on Columbia Valley Businesses 96 Respo ndent s 69 64 64 69 69 69 66 66 68 65 68 69 69 Workforce Stability 3 Survey Participants: 69 4% 16 Business Retention and Expansion: Report on Columbia Valley Businesses 21% 28 37% 27 36% 97 1 1% 75 Figure 80: Please compare the local business climate today versus 5 years ago Percent of Question Respondents Count Better today No change Worse today No opinion Total 37 16 7 6 66 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 66 3 96% Figure 81: Do you have any forecast for the condition of the local business climate 5 years from today? Will be better No change Will be worse No opinion Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 82: What are the community's strengths as a place to do business? 56% 24% 11% 9% Percent of Question Respondents Count 42 16 4 7 69 61% 23% 6% 10% 69 69 0 100% Percent of Question Respondents Count Social network Stable economy Word of mouth Affluent residents Customer loyalty 6 5 1 3 2 9% 7% 1% 4% 3% Friendliness 2 3% Natural attractions 20 29% Business Retention and Expansion: Report on Columbia Valley Businesses 98 Location Recreational opportunities Lifestyle Tourism 19 28% 13 19% 4 16 6% 23% Supportive community 10 14% Total 101 Survey Participants: 69 Question Respondents: 68 No Response Count: Response Rate: 1 99% Figure 83: What are the community's weaknesses as a place to do business? Count Percent of Question Respondents 5 7% 6 1 9% 1% Small Population 8 12% Lack of Transportation Lack of support for local businesses Lack of Leadership, Vision, & Collaboration Lack of amenities/Services Affordable Housing Wildfires 5 7% 8 12% 8 12% 9 13 4 13% 19% 6% Geographic isolation 6 9% Development Constraints (Zoning/Bureaucracy/Permits) Lack of suppliers Poor customer service Lack of workforce & workforce stability High cost of living Seasonality Total Survey Participants: Question Respondents: 14 20% 6 16 109 69 69 9% 23% No Response Count: 0 Business Retention and Expansion: Report on Columbia Valley Businesses 99 Response Rate: Figure 84: Are there any barriers to growth in this community? 100% Percent of Question Respondents Count Yes No Total 58 11 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 84b: Are there any barriers to growth in this community? : If Yes, what are they? 84.06% 15.94% Percent of Question Respondents Count Lack of Support for Business Affordable housing 5 7% 14 20% Attitudinal barriers 9 13% Transportation 3 4% Availability of land 6 9% Lack of Vision and/or Plan 3 4% Seasonality 8 12% Marketing / Promotion 3 4% Cost of doing business Available workforce Developmental approval process Low population Geographic isolation Total 4 13 6% 19% 6 9% 4 3 81 6% 4% Survey Participants: Question Respondents: 69 58 Business Retention and Expansion: Report on Columbia Valley Businesses 100 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 11 58 69 100% Business Retention and Expansion: Report on Columbia Valley Businesses 101 Figure 85: Level of service from business support providers Basin Business Advisors Chamber of Commerce Community Futures Continuing Education and Workforce Training Economic Development Organization / Commission Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) Invest Kootenay Kootenay Aboriginal Business Advocates Society National Research Council Industrial Research Assistance Scientific Research and Experimental Development Tax Incentive Program Survey Participants: Not Applicable % Not Applicable Unable to assist 46 15 42 79% 23% 69% 1 1 0 % Unable to assist 2% 2% 0% 19 30% 2 27 43% 58 Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respon -dents 4 2 3 7% 3% 5% 0 8 2 0% 13% 3% 1 18 8 2% 28% 13% 6 20 6 10% 31% 10% 58 64 61 3% 1 2% 10 16% 26 41% 6 9% 64 0 0% 7 11% 7 11% 13 21% 9 14% 63 97% 0 0% 1 2% 0 0% 1 2% 0 0% 60 48 80% 0 0% 3 5% 2 3% 2 3% 5 8% 60 59 98% 0 0% 0 0% 1 2% 0 0% 0 0% 60 60 100% 0 0% 0 0% 0 0% 0 0% 0 0% 60 55 92% 0 0% 1 2% 0 0% 3 5% 1 2% 60 67 Business Retention and Expansion: Report on Columbia Valley Businesses 102 Figure 86: Are there suppliers you think could locate in this region? Percent of Question Respondents Count Yes No Total 44 25 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 86b: Are there suppliers you think could locate in this region?: If Yes, please list Parts Supplier Office Supplies Architectural Services Lifestyle Clothing Distribution and Warehouse Storage Facilities Heavy equipment maintenance Appliance sales and repairs. Industrial supply Pet food / grooming Tire Supplier Cleaning Supplies Utility Service Firms Car wash Office supplies Freight Companies small-scale furniture manufacturers Technology companies Coffee Roaster Wholesale Supplier for food/restaurants Total 64% 36% Percent of Question Respondents Count 1 2 1 1 3% 5% 3% 3% 1 3% 1 3% 1 3% 2 5% 1 1 1 1 1 1 2 1 3% 3% 3% 3% 3% 3% 5% 3% 2 5% 2 5% 3 8% 11 28% 39 Business Retention and Expansion: Report on Columbia Valley Businesses 103 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 69 40 29 44 99% 91% Figure 87:Tell us which business, sector, or industry to attract that would strategically benefit you or your industry Percent of Question Responden ts Count Tourism Related 13 21% Landscaping 2 3% Technology 12 19% Recreation 2 3% Transportation 1 2% Car Wash 1 2% Fire Fighters 1 2% Wholesale Food and Beverage Suppliers 1 2% Construction 2 3% Health and Wellness 2 3% Food Packaging & Labelling 1 2% Trucking 1 2% Small engine repair 1 2% Distribution & warehouse facility 1 2% Manufacturing 2 3% Light / Heavy industries 1 2% Wood pellet manufacturing plant 1 2% Appliance Sales and Repairs Total Survey Participants: 2 3% 47 69 Business Retention and Expansion: Report on Columbia Valley Businesses 104 Question Respondents: No Response Count: Response Rate: 62 7 90% Business Retention and Expansion: Report on Columbia Valley Businesses 105 Not applic able % Not applic able Not import ant at all % Not import ant at all not very import ant % not very import ant 19 28% 21 31% 5 7% 3 4% 2 3% 8 Add or change in business, products or services 1 2% 8 12% Affordable shipping/freight 1 1% 2 Availability of telecommunications infrastructure and services 1 1% 1 Some what import ant % Some what import ant Very import ant % very import ant Respo ndents 9 13% 13 19% 67 12% 25 37% 29 43% 67 0 0 5 8% 28 42% 24 36% 66 1 3% 5 7% 15 22% 44 66% 67 0 0 0% 2 3% 14 21% 50 75% 67 0 1% 2 3% 5 7% 20 30% 39 58% 67 0 1 1% 6 9% 8 12% 28 42% 24 36% 67 0 Expansion of workforce employees 0 0% 2 3% 6 9% 25 38% 33 50% 66 1 Improvement business management 1 1% 0 0% 5 7% 21 31% 40 60% 67 0 Improvement of customer services 2 3% 0 0% 0 0% 11 16% 54 81% 67 0 Improving worker productivity 1 2% 0 0% 1 2% 18 27% 46 70% 66 1 Figure 88: Business competitiveness factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar Business Retention and Expansion: Report on Columbia Valley Businesses 106 No Respo nse New market development locally 3 4% 7 10% 4 6% 18 27% 35 52% 67 0 New market development outside of region 3 4% 5 7% 9 13% 26 39% 24 36% 67 0 New product research and development 3 4% 2 3% 2 3% 23 34% 37 55% 67 0 Reliable air transportation 17 25% 14 21% 16 24% 12 18% 8 12% 67 0 Strategic alliances (joining with other businesses to provide products/services) 3 4% 4 6% 4 6% 23 34% 33 49% 67 0 6 9 9% 13% 3 5 4% 7% 9 6 13% 9% 13 19% 22 33% 36 25 54% 37% 67 67 0 0 0 0% 0 0% 5 7% 19 28% 43 64% 67 0 Workplace health and safety 3 5% 2 3% 2 3% 8 12% 51 77% 66 1 Survey Participants: 67 Water/sewer availability Water/sewer costs Workforce skill development Business Retention and Expansion: Report on Columbia Valley Businesses 107 Figure 89: Performance of key productivity drivers Innovation & the use of technology Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent 2 3% 1 1% 18 27% 35 52% 11 16% 67 Investing in people and skills 0 0% 1 1% 6 9% 45 67% 15 22% 67 Leadership and management capacity 0 0% 0 0% 5 7% 39 58% 23 34% 67 Measuring impact of productivity efforts/ investments 3 5% 7 11% 12 18% 36 55% 8 12% 66 Networking and collaboration with other businesses 2 3% 7 10% 15 22% 35 52% 8 12% 67 Organizing work (structures & processes) 0 0% 2 3% 8 12% 42 63% 15 22% 67 Productive workplace culture 0 0% 0 0% 1 1% 42 63% 24 36% 67 Survey Participants: 67 Business Retention and Expansion: Report on Columbia Valley Businesses 108 % Respondents Excellent Figure 90: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3) Finance Government Manufacturing Agriculture Education Percent of Question Respondents Count 0 2 11 7 7 0% 3% 17% 11% 11% 14 22% 8 13% 11 17% 28 44% Health & wellness 12 19% Arts 9 14% Green or environmental businesses Other niche service businesses (e.g. services to seniors) Forestry Technology-based businesses Construction culture and creative businesses Relocation of people from urban centres Tourism Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: 18 28% 9 14% 26 41% 42 11 215 66% 17% 67 64 3 96% Business Retention and Expansion: Report on Columbia Valley Businesses Figure 90b: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3): If Other please specify Sports tourism (hockey teams, etc) Distribution centre! Education: Private Schools Commercial marijuana grow ups Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 91: Is your business impacted by its proximity to the Alberta border? Percent of Question Respondents Count 1 2 1 1 5 67 5 62 11 67 45% Percent of Question Respondents Count Yes No Total 64 3 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 67 67 0 100% Figure 91b: Is your business impacted by its proximity to the Count 95.52% 4.48% Percent of Question Respondents 110 Business Retention and Expansion: Report on Columbia Valley Businesses Alberta border?: If Yes, please explain Negative - lack of sales due to PST 3 5% Positive Ripple effect 3 5% Positive - Alberta customers 17 30% Positive - Alberta tourists 34 60% Total 57 Survey Participants: 67 Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 61 6 64 67 Response Rate: 95% Assessment and Plans Figure 92: Rate the following: Facility's overall health Count Excellent Good Fair Poor Total 22 40 7 0 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Percent of Question Respondents 32% 58% 10% 0% 69 0 100% 111 Business Retention and Expansion: Report on Columbia Valley Businesses Figure 93: Rate the following: Overall health of the parent company Count Excellent Good Fair Not applicable Total 16 15 3 34 68 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Figure 94: Rate the following: Local management's attitude toward the community 24% 22% 4% 50% 68 1 99% Count Excellent Good Fair Total 34 32 3 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 69 0 100% Figure 95: Rate the following: Parent company's attitude towards the community Count Excellent Good Not applicable Total Percent of Question Respondents 17 17 35 69 Percent of Question Respondents 49% 46% 4% Percent of Question Respondents 25% 25% 51% 112 Business Retention and Expansion: Report on Columbia Valley Businesses Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 96: Rate the risk: Facility closing in the next 1 - 3 years 69 69 0 100% Count High Moderate Low Total 4 3 61 68 Survey Participants: Question Respondents: No Response Count: 69 Figure 97: Rate the risk: Facility downsizing in the next 1 - 3 years Percent of Question Respondents 6% 4% 90% 68 1 Count High Moderate Low Total 1 4 63 68 Survey Participants: Question Respondents: No Response Count: Response Rate: 69 Percent of Question Respondents 1% 6% 93% 68 1 99% 113 Business Retention and Expansion: Report on Columbia Valley Businesses