COLUMBIA BASIN BUSINESS RETENTION AND EXPANSION PROJECT R EPORT ON C RESTON & D ISTRICT B USINESSES W INTER /S PRING 2016 The Columbia Basin Rural Development Institute, at Selkirk College, is a regional research centre that supports informed decision-making through the provision of information, applied research and related outreach and extension support. Visit www.cbrdi.ca for more information. The economic well-being of our community is based upon our existing businesses. In recognition of this, positive action is being taken to identify and meet the needs of these businesses. Kootenay Employment Services, the Town of Creston, local RDCK areas and the Columbia Basin Trust are partnering to fund this project. Other partners helping to implement this project include the Creston Valley Chamber of Commerce, Kootenay Lake Chamber of Commerce, Community Futures Central Kootenay, College of the Rockies, and the Rural Development Institute. EXECUTIVE SUMMARY This report describes findings from a Business Retention and Expansion (BRE) survey conducted with 80 businesses within Creston & District (communities between Yahk and Riondel). BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. KEY RESEARCH FINDINGS Select survey results are summarized below. Survey Module Company Information Local Workforce Sales Facilities and Equipment Government Services Finding The highest number of respondents’ businesses are classified as ‘Agriculture, Forestry, Fishing and Hunting’ and ‘Retail and Wholesale Trade’ under the North American Industry Classification (NAICS) system. Regarding those classified as ‘Agriculture, Forestry, Fishing and Hunting’ it is important to note that the BRE stakeholder committee deliberately focused on the agricultural sector for this study and as a result, while the NAICS code is broad, participants were largely agricultural. The community was the most frequently cited reasons given for success in the Creston area. Most companies surveyed have been in business for more than 20 years. Over half of the companies are ‘growing’. Respondents reported a total of 1,711 employees. The majority of employees are temporary. Marketing and Bookkeeping Skills were most commonly listed as key training and Professional Development areas. The most critical considerations for employees is the cost of living and housing. The majority of businesses indicated the market for their product/service is increasing. 74% 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. 44% of businesses indicated that they will need to access financial capital in the next 1 – 3 years. 78% of businesses own the facility in which they operate. Just under 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 identifying new markets. Top rated government services include access to the US border, access to highway/roads, and recycling. The lowest rated government services include access to airport facilities, access to suppliers, and availability of road transport services. Highway infrastructure and high speed internet services are the government services most in need of improvement. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses ii Business Climate Assessment and Plans The Canadian Rockies International Airport (Cranbrook) is the most used airport by local businesses. The overall business climate was rated as fair 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 cultural/recreational amenities and K-12 education. Tourism and Agricultural value added businesses were most commonly cited as sectors, businesses, or industries that could be attracted to the region. The business competitiveness factors that are most important to respondents include improvement of business management, availability of telecommunications infrastructure and services, and workplace health and safety. The overall health of their company was rated as good by 74% of businesses and excellent by 16% of businesses. Fewer than 4% of businesses are at a high risk of closing or and less than 3% at risk of downsizing. NEXT STEPS AND POTENTIAL ACTIONS The results of this survey can be used to inform short- and long-term planning. In addition, a number of businesses would benefit from follow-up support. Research findings suggest that the following action areas have the greatest potential to improve the business climate: Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,711 employees. The majority (41%) of employees are temporary, followed closely by 38% full time employees. The size of the workforce appears stable and healthy, with 53% of businesses indicating that the number of employees at their business has stayed the same, and 27% indicating that the number has increased. Expected employment trends are also stable with the majority of businesses expecting the number of casual, part time, and full time employees to stay the same. Actions that could prove helpful include: support and expand recruitment efforts, assist with coordination of casual/temporary employee recruitment, and education/training on recruitment. Targeted actions to these areas could be considered. Related to recruitment and retention are the identified critical considerations for employees which include the cost of living, housing, childcare, and transportation. Interest was expressed in establishing a farm labour pool with an aim to better link farmers and available labour. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 7% of essential employees under the age of 25. The number of aging farmers is seen as indicative of the need for succession planning, but questions remain surrounding the number of youth available to take over farms. Increasing youth employment may assist in addressing the recruitment challenges that 43% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low youth employment rate, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting local businesses with local schools and post-secondary institutions. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses iii Business Growth & Expansion 57% of businesses in the region report being in a growth cycle and 30% are maturing; however 29% are not anticipating any growth in sales over the next year, with 33% expecting moderate sales growth between 1 – 9%. The vast majority of businesses (74%) indicate that the majority of their sales are to local markets, indicating there may be an opportunity to expand into surrounding markets. 43% indicate that they are planning to expand within the next three years. 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, exploring financing options, 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, identifying and accessing new markets, and a lack of skilled staff. It is worth noting that very few (32%) 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. New opportunities exist, such as a composting or value-added facility utilizing agricultural waste (e.g., cherry culls). Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in size and independent. Tailoring supports and services to small, independent businesses, perhaps with specific actions directed at the agricultural sector will benefit businesses in Creston & District. Natural Resources/Agriculture Focus There are a significant number of businesses in the agricultural, forestry, fishing, and hunting sectors (29% according to the industry classification). However, it is important to note that the BRE stakeholder committee deliberately focused on the agricultural sector only for this study. The importance of the agricultural industry warrants specific and additional review to understand the specific challenges and opportunities this sector faces. An industry based stakeholder meeting could be convened to explore how this sector can specifically be supported. Interest was expressed in the reinstatement of a local agriculture extension office, together with a reinstatement of Canadian Food Inspection Agency and Interior Health’s Environmental Health offices. Supply Sourcing and Procurement The data indicates that 48% of supplies come from within the local region. The most common response (70%) for the reason why supplies are sourced outside of the local area is that they are not available locally. Agricultural suppliers and packaging materials were the most frequently cited areas for potential suppliers to the Creston area. 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. A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. Local businesses do not appear to engage actively with government procurement processes, with only 18% of businesses indicating that they have. Education and awareness of the opportunities Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses iv available through municipal, regional, and provincial procurement processes could be promoted through seminars, profiles in communication material, and promotion on relevant websites. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 58% of businesses have a training budget and 73% indicated that training typically occurs locally. Areas for additional training/skill development include marketing skills, bookkeeping, and food safe. Future areas for training focused on computer and new technology training, as well as marketing, social media, and emerging technologies. 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 19% of respondents indicated that they have a formal succession plan and less than half (45%) have an up-to-date business plan. With 49% of businesses indicating that they have been in business for more than 20 years, succession planning is timely for many. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses. 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. Financing When financing was accessed, the most frequent type was internal (84% of businesses) in the form of personal savings or retained earnings. There is a market for businesses to access financing, with 44% of businesses indicating they will need to access financing in the next 1 – 3 years for purposes of expanding or improving equipment (78%) or making improvements to their land/building (66%). Businesses were most frequently (43%) looking for $100,000 or more in future capital, with 32% indicating they would need $25,000 or less. There does appear to be a market and an appetite for a community model of financing, with opportunities in small loans of $25,000 or less and larger loans of over $100,000. Further exploration and development of a community based financing model or microloan program appears warranted. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses v TABLE OF CONTENTS Executive Summary........................................................................................................ ii Key Research Findings ........................................................................................................... ii Next Steps and Potential Actions .......................................................................................... iii List of Figures ............................................................................................................... vii Project Overview ...........................................................................................................1 The BRE Concept ................................................................................................................... 1 Project Objectives ................................................................................................................. 1 Research Considerations ................................................................................................2 The BRE Survey ..................................................................................................................... 2 The Data Set.......................................................................................................................... 2 Data Collection ...................................................................................................................... 3 Data Input, Analysis and Reporting ........................................................................................ 3 Research Findings ..........................................................................................................4 Company Information ........................................................................................................... 4 Local Workforce .................................................................................................................. 10 Sales ................................................................................................................................... 22 Facilities and Equipment...................................................................................................... 31 Government Services .......................................................................................................... 39 Business Climate ................................................................................................................. 43 Assessment and Plans ......................................................................................................... 57 Recommendations ....................................................................................................... 60 Next Steps........................................................................................................................... 60 Potential Action Areas ......................................................................................................... 61 Appendix A: Data Tables .............................................................................................. 64 Company Information ......................................................................................................... 64 Local Workforce .................................................................................................................. 74 Sales ................................................................................................................................... 94 Facilities and Equipment.................................................................................................... 118 Government Services ........................................................................................................ 132 Business Climate ............................................................................................................... 137 Assessment and Plans ....................................................................................................... 153 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses vi LIST OF FIGURES Figure 1: Industry classification ........................................................................................................... 4 Figure 2: Facility function(s) ................................................................................................................ 5 Figure 3: Location of primary competitors .......................................................................................... 5 Figure 4: Key words and responses respondents' discussions of the factors that make them successful in this region....................................................................................................................... 5 Figure 5: Other Locations .................................................................................................................... 6 Figure 6: Location of Other Locations ................................................................................................. 6 Figure 7: Location of headquarters ..................................................................................................... 7 Figure 8: Life cycle stage...................................................................................................................... 7 Figure 9: Length of time in business .................................................................................................... 7 Figure 10: Type of business ................................................................................................................. 8 Figure 11: Ownership and management changes in last 5 years ........................................................ 8 Figure 12: Anticipated timeline for ownership change ....................................................................... 8 Figure 13: Anticipated exit strategy .................................................................................................... 9 Figure 14: Existence of formal succession plan ................................................................................... 9 Figure 15: Existence of current business plan ..................................................................................... 9 Figure 16: Total number of employees ............................................................................................. 10 Figure 17: Nature of employment ..................................................................................................... 10 Figure 18: Historical Employment trend ........................................................................................... 11 Figure 19: Employment trend over last 3 years ................................................................................ 11 Figure 20: Employment trend over next 3 years ............................................................................... 12 Figure 21: Age of the majority of essential employees ..................................................................... 12 Figure 22: Wages in relation to other businesses in the region ........................................................ 13 Figure 23: Trend in unfilled positions ................................................................................................ 13 Figure 24: Location of workforce recruitment .................................................................................. 13 Figure 25: Recruitment and retention challenges ............................................................................. 14 Figure 26: Key words and responses in respondents' discussion of retention efforts ..................... 14 Figure 27: Recruitment Activities ...................................................................................................... 15 Figure 28: Current recruitment areas................................................................................................ 16 Figure 29: Future areas where recruitment may be challenging ...................................................... 16 Figure 30: Strategies to overcome employee recruitment challenges ............................................. 17 Figure 31: Skill level of majority of workforce ................................................................................... 17 Figure 32: Training Budget ................................................................................................................ 17 Figure 33: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills ...................................................................... 18 Figure 34: Training or professional development needs................................................................... 19 Figure 35: Areas for new Training in next five years ......................................................................... 20 Figure 36: Preferred modes of training ............................................................................................. 20 Figure 37: Usual training locations .................................................................................................... 21 Figure 38: Critical considerations for employees .............................................................................. 21 Figure 39: Annual sales ...................................................................................................................... 22 Figure 40: Status of market for product/service ............................................................................... 22 Figure 41: Market Share in Comparison to Competitors .................................................................. 23 Figure 42: Projected sales growth in the next year ........................................................................... 23 Figure 43: Historic sales trend ........................................................................................................... 24 Figure 44: Sales generated by top three customers ......................................................................... 24 Figure 45: Geographic source of majority of sales ............................................................................ 25 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses vii Figure 46: International trade status................................................................................................. 25 Figure 47: Engagement with government procurement processes .................................................. 25 Figure 48: Geographic source of majority of supplies ....................................................................... 26 Figure 49: Reason for out-of-area purchasing................................................................................... 26 Figure 50: Types of Financing ............................................................................................................ 27 Figure 51: Types of Lending ............................................................................................................... 27 Figure 52: Types of Capital Financing ................................................................................................ 27 Figure 53: Barriers to Capital Financing............................................................................................. 28 Figure 54: Purpose for Future Financial Capital Needs ..................................................................... 28 Figure 55: Source for Future Financial Capital Needs ....................................................................... 29 Figure 56: Future Capital Needs ........................................................................................................ 29 Figure 57: Community Investment Mechanism ................................................................................ 29 Figure 58: Return on Investment: Social ........................................................................................... 30 Figure 59: Return on Investment: Financial ...................................................................................... 30 Figure 60: Return on Investment: Environmental ............................................................................. 31 Figure 61: Size of facility .................................................................................................................... 31 Figure 62: Condition of facility .......................................................................................................... 32 Figure 63: Condition of equipment ................................................................................................... 32 Figure 64: Ownership status of facility .............................................................................................. 32 Figure 65: Length of time remaining on lease ................................................................................... 33 Figure 66: Ownership preference...................................................................................................... 33 Figure 67: Historical Investment in facility (past 18 months)............................................................ 33 Figure 68: Room for expansion ......................................................................................................... 34 Figure 69: Plans to expand within three years .................................................................................. 34 Figure 70: Adequacy of current site to support expansion ............................................................... 34 Figure 71: Expansion to occur in community .................................................................................... 35 Figure 72: Estimated expansion investment ..................................................................................... 35 Figure 73: Component of expansion budget for equipment and technology ................................... 35 Figure 74: Component of expansion budget for real estate ............................................................. 36 Figure 75: Size of facility expansion .................................................................................................. 36 Figure 76: Recent facility upgrades ................................................................................................... 36 Figure 77: Planning facility upgrades................................................................................................. 37 Figure 78: Barriers to upgrading ........................................................................................................ 37 Figure 79: Barriers to expansion........................................................................................................ 38 Figure 80: Organizations approached for expansion assistance ....................................................... 38 Figure 81: Considering energy efficiency in expansion plans ............................................................ 39 Figure 82: Awareness of BC Hydro Power Smart .............................................................................. 39 Figure 83: Rating of government services ......................................................................................... 40 Figure 84: Key words and responses in respondents' suggestions for improvements to government services .............................................................................................................................................. 42 Figure 85: Airport service used.......................................................................................................... 42 Figure 86: New services at local airport ............................................................................................ 43 Figure 87: Rating of local business climate ....................................................................................... 43 Figure 88: Rating of business climate factors .................................................................................... 44 Figure 89: Business climate today vs. 5 years ago............................................................................. 45 Figure 90: Business climate 5 years from today ................................................................................ 46 Figure 91: Community’s strengths as a place to do business............................................................ 46 Figure 92: Community's weaknesses as a place to do business ........................................................ 47 Figure 93: Barriers to growth in the community ............................................................................... 48 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses viii Figure 94: Level of service from business support providers ............................................................ 50 Figure 95: Potential Suppliers............................................................................................................ 51 Figure 96: Sectors, businesses or industries that could be attracted to region ................................ 52 Figure 97: Importance of business competitiveness factors ............................................................. 53 Figure 98: Performance on key productivity drivers ......................................................................... 55 Figure 99: Economic drivers with greatest growth potential ............................................................ 56 Figure 100: Impact of Proximity to Alberta ....................................................................................... 57 Figure 101: Facility’s overall health ................................................................................................... 57 Figure 102: Overall health of parent company ................................................................................. 58 Figure 103: Local management's attitude toward community ......................................................... 58 Figure 104: Parent company's attitude toward local community ..................................................... 58 Figure 105: Risk of facility closing...................................................................................................... 59 Figure 106: Risk of facility downsizing ............................................................................................... 59 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses ix PROJECT OVERVIEW This report describes findings from a Business Retention and Expansion (BRE) survey1 conducted within the Creston & District area during Winter/Spring 2016. Economic development discussions in 2015 between Creston & District stakeholders indicated a need to complete an in-depth Business Retention and Expansion (BRE) study for the region. Little in-depth or updated business community information was available for guiding future economic development strategies. In a collaborative effort Kootenay Employment Services, the Town of Creston, Regional District of Central Kootenay, and Columbia Basin Trust funded the Community Business Pulse – Creston & District BRE study. Other local stakeholders guiding and helping to implement this initiative are the Creston Valley Chamber of Commerce, Kootenay Lake Chamber of Commerce, Community Futures Central Kootenay, and the College of the Rockies. Before a community can assist existing businesses it must first identify the businesses' needs, concerns, and growth opportunities. Through the Community Business Pulse initiative, a trained researcher visits local businesses and gathers information. This information is compiled into a report which assists the local stakeholders partnering in this project to address identified issues and opportunities for community economic development in Creston & District. 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% of new jobs come from existing businesses. PROJECT OBJECTIVES Objectives specific to the Creston & District’s BRE project were as follows: 1. Identify the needs, concerns, and opportunities of existing local businesses in order that, where appropriate, local action can be taken to respond to the businesses’ needs or development opportunities; 1 Short and Long BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/appliedresearch/business-retention-expansion/ Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 1 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 community’s pro-business attitude and develop an effective means of communication with local businesses; 4. Encourage the business community’s active involvement in economic development. RESEARCH CONSIDERATIONS THE BRE SURVEY The RDI has a licence agreement with the Economic Development Association of British Columbia (BC) for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data presented in this report were collected as part of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the BC Business Counts program across the province of BC. Survey data can therefore be analyzed at a community, sub-regional, regional, and provincial level. The base survey, consisting of 94 questions, includes modules for company information, the local workforce, sales, facilities and equipment, and future plans for growth or succession. Based on feedback from a BRE regional advisory group, thirteen region-specific questions were appended to the base BRE survey. The Labour Market specific questions were added to the base survey in order to identify and address labour market supply and demand, uncover some emerging labour market trends, as well as determine barriers to labour retention within Creston & District. Creston & District stakeholders also appended seven financing specific questions to determine if businesses were planning to access financing for expansion efforts, and how they plan to raise capital. THE DATA SET The Town of Creston, Regional District of the Central Kootenay Areas A, B and C, and Lower Kootenay Band made up the geographic scope of the study area. A master list of Creston & District businesses was compiled by consolidating chamber listings, business licences, Link2Creston listings, and an online search through Google and Yellow Pages. The total business count reached 963 within Creston & District. Creston & District businesses were sorted into 12 sectors taken from the North American Industry Classification System (NAICS): Accommodation, Food & Beverage; Agriculture & Farming; Arts, Entertainment & Recreation; Construction; Forestry & Mining; Health Care & Social Assistance; Manufacturing; Other Services; Professional Services; Real Estate/Rental Leasing; Retail; and Transportation & Warehousing. These businesses were then sorted into their respective geographic areas: Town of Creston, RDCK Areas A, B, C, and Lower Kootenay Band. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 2 The aim was to survey approximately 10% of the businesses within Creston & District, with a focus on the Agriculture & Farming Sector and representation in each of the five geographical boundaries. A survey tool was created for the research consultant to follow, allocating a target number of surveys per sector, based on reflective percentage totals of the master business listing. Businesses were chosen at random from the master business listing, and received an initial phone call from the research consultant or administrative assistant. If there was interest on behalf of the business, a project description and confirmation of survey time and date was sent by email. In total, 80 businesses took part in a one-on-one interview with the research consultant. Responses were entered into a confidential database. DATA COLLECTION Confidential interviews were arranged between the participating businesses and the research consultant. A one-to-one in person survey was conducted either at the business or in a private office at Kootenay Employment Services. Each structured interview took an average of two hours to complete, with an additional hour spent to enter the responses into a secured database. In total 80 interviews were completed with business owners, CEO’s, and executive directors of participating businesses. DATA INPUT, ANALYSIS AND REPORTING BRE project coordinator (Eden Yesh), research consultant (Erika Woker), administrative assistant (Teryl Hemmelgarn), and business follow-up coordinator (Alison Bjorkman) signed confidentiality forms with the RDI prior to embarking on this initiative. Respect of confidentiality during this project is very important and all information collected has been done so in a secure manner. The research consultant has stored business information sheets and accompanying surveys separately, using numerical identifiers. This information was then forwarded in two separate emails to our research assistant, who entered interview responses into the Executive Pulse Database. The information from Executive Pulse was then analysed by staff at the RDI to create the following report. No individual business identifiers are published in this report. Businesses requiring immediate assistance completed a follow-up form with the research coordinator and a consent to release information for the purposes of a follow-up. Project coordinator (Eden Yesh) and local Community Futures representative (Alison Bjorkman) recommended business support agencies, programs and training respective to the businesses’ concerns. The follow-up was completed in person or by phone, with a summary of next steps for the business to act upon. Eight businesses received immediate follow-up assistance from the local Community Futures representative. 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 project lead, Kootenay Employment Services. Findings and related recommendations were assembled into this report by RDI researchers. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 3 RESEARCH FINDINGS2 COMPANY INFORMATION Type of Product/Service Offered Businesses interviewed represent a diverse cross-section of industries. Most common are Agriculture, Forestry, Fishing and Hunting (29% or 23 respondents), Retail and Wholesale Trade (18% or 14 respondents), and Manufacturing (10% or 8 respondents). Figure 1: Industry classification Other Services 3% Accommodation and Food Services 8% Arts, Entertainment and Recreation 6% Health Care and Social Assistance 9% Educational Services 1% Professional, Scientific and Technical Services 5% Real Estate and Rental and Leasing 4% Finance and Insurance 1% Information and Cultural Industries 3% Transportation and Warehousing 1% Retail and Wholesale Trade 18% Manufacturing 10% Construction 4% Agriculture, forestry, fishing and hunting 29% 0% 5% 10% 15% 20% 25% 30% 35% Note: 80 respondents Facility Function The majority of respondents (81% or 65 respondents) indicated that their facility acts as the headquarters. Other primary functions include ‘services’ (70% or 56 respondents) and ‘distribution’ (53% / 42 respondents). Fewer respondents indicated that their facility serves an engineering/research and development function. 2 Some questions allow multiple responses, which can result in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 4 Figure 2: Facility function(s) Headquarters Services Distribution Manufacturing Warehousing Engineering/RD 81% 70% 53% 41% 39% 14% 0% 20% 40% 60% 80% 100% Note: 80 respondents Competition The vast majority of competition (83 % or 64 responses) reported was coming from within the regional area3. Figure 3: Location of primary competitors In Region 83% Outside Canada 30% In Province 8% In Canada 4% 0% 20% 40% 60% 80% 100% Note: 80 respondents Factors for Success Figure 4: Key words and responses respondents' discussions of the factors that make them successful in this region When asked what factors made their company successful in this region, the highest number of respondents cited the supportive community (28% or 22 businesses), with location (21% or 17 businesses), and excellent staff (15% or 12 businesses) also discussed frequently. 3 Multiple competitors were listed by respondents resulting in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 5 “…incredibly supportive community which stems from highly committed team who want to make a difference in the community, strong community development piece.” “…positive "word of mouth" from within community groups.” “…location -- an hour away from any competition.” “...extremely hard working employees and owner/operators.” “…an incredibly beautiful environment.” “…centrally located in Kootenays: opportunities within the East and West Kootenays to market value added products.” Choosing Creston Respondents frequently cited the appeal of the community for raising a family, their long standing ties to the community, the quality of the land, and the overall growing conditions for agricultural related purposes. Other Locations Figure 5: Other Locations Yes 14% 14% of respondents (11 respondents) indicated that their company has other locations. Note: 80 respondents No 86% 82% of those other locations (9 respondents) are in other areas of the province, 45% (5 respondents) are in other parts of Canada. Figure 6: Location of Other Locations In Province Elsewhere in nation Outside Canada 82% 45% 27% 0% 20% 40% 60% 80% 100% Note: 11 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 6 94% (74 businesses) of respondents reported that their headquarters are located in British Columbia, and the remaining 6% (5 businesses) indicated that they are headquartered in other parts of Canada. Figure 7: Location of headquarters 94% Elsewhere in nation 6% 0% 20% 40% 60% 80% 100% Note: 79 respondents Age and Life Cycle Stage Over half of all respondents (57% or 45 respondents) reported that their business is in the ‘growing’ life cycle stage. Another 30% (24 businesses) indicated that their business is in the ‘maturing’ stage. Only 6% (5 businesses) indicated that they are in the ‘emerging’ stages, while an additional 6% (5 businesses) indicated they were declining. Figure 8: Life cycle stage Maturing Growing Emerging Declining 30% 57% 6% 6% 0% 10% 20% 30% 40% 50% 60% Note: 80 respondents Most businesses (39 respondents or 49%) reported that they have been in business for more than 20 years. A significant number reported that they have been in business for 10 - 19 years (11 respondents or 14%), 5 – 9 years (15 respondents or 19%), and 1 – 4 years (14 respondents or 18%). Figure 9: Length of time in business >20 Years 10-19 Years 5-9 Years 1-4 Years <1 Year 49% 14% 19% 18% 1% 0% 10% 20% 30% 40% 50% 60% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 7 Ownership and Management 93% of all companies are privately owned, with just 7% publicly owned. Most respondents (41 respondents or 54%) indicated that their business is classified as a corporation, while 26% (20 respondents) indicated that they are a sole proprietorship. The remainder of businesses are registered as a partnership (11% or 8 respondents), non-profit (7% or 5 respondents), or other type of business (3% or 2 respondents). Figure 10: Type of business Other Corporation Sole proprietorship Partnership Non-profit 3% 54% 26% 11% 7% 0% 10% 20% 30% 40% 50% 60% Note: 80 respondents Figure 11: Ownership and management changes in last 5 years 78% of businesses (61 businesses) have not seen a management or ownership change in the last 5 years, while 22% of businesses (17 businesses) have changed management and/or ownership over that same period of time. Just 4% of businesses (3) are Yes expecting an ownership change in the near future. Of 22% the 17 respondents that have seen changes in management and or ownership, 71% (12 businesses) report that the change had a positive impact. No 78% Note: 80 respondents Succession and Business Plans Of the 3 businesses (4%) that responded and reported a pending ownership change, 1 (33%) expect the change will happen in a year or less, 1 (33%) expect the process to take 2 years, and 33% or 1 business anticipates it taking 3 or more years. Figure 12: Anticipated timeline for ownership change 3 years or more 33% 2 years 33% 1 year or less 33% 0% 5% 10% 15% 20% 25% 30% 35% Note: 3 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 8 33% of respondents (1 respondent) expect that the current owner will exit the business by selling it to another company, while 33% (1 respondent) expect it to be sold/transferred to -family member. 33% (1 business) expect to return shares to the co-op for resale. Figure 13: Anticipated exit strategy Other Sell/transfer to a non-family member Sell to another company 33% 33% 33% 0% 5% 10% 15% 20% 25% 30% 35% Note: 3 respondents Not applicable, 3% Yes, 19% Figure 14: Existence of formal succession plan Only 19% (15 respondents) of businesses reported that they have a formal succession plan in place, and just 26% have identified a sucessor for their business. Of those that completed a succession plan, 75% received assistance in its preparation. No, 78% Note: 77 respondents Figure 15: Existence of current business plan Yes, 45% No, 55% Less than half of all respondents (45% or 35 respondents) indicated that they have a business plan in place. Note: 78 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 9 LOCAL WORKFORCE Size of Workforce The 80 businesses interviewed reported a total of 1,711 employees. 36 % or 29 of the businesses surveyed indicated that they have less than five employees and just 6% or 5 of the businesses indicated that they have over 100 employees. Figure 16: Total number of employees Over 100 50-99 20-49 10-19 5-9 Less than 5 6% 6% 14% 9% 29% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 80 respondents 41% (695) of employment positions at surveyed businesses are temporary, while 38% (656) are full-time and 21% (360) are part-time. Figure 17: Nature of employment Temporary Part Time Full Time 41% 21% 38% 0% 10% 20% 30% 40% 50% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 10 53% of respondents (42 businesses) indicated that the number of employees at their business has stayed the same historically. While 27% (21 businesses) indicated that the size of their workforce has increased. 20% (16 businesses) indicated a decrease. Figure 18: Historical Employment trend4 Increasing Staying the same Declining 27% 53% 20% 0% 10% 20% 30% 40% 50% 60% Note: 79 respondents The last three years has generally seen stability in the size of the full-time workforce, with 69% of businesses (52 respondents) reporting that the number of employees has stayed the same, and 23% (17 respondents) reporting that full-time employment over that three year time period has increased. Interestingly the employment trend for full-time, part-time, and casual employment was consistent over the previous three years. Figure 19: Employment trend over last 3 years 8% Decreased 8% 13% 69% 64% 69% Stayed the same 0% 20% part time full time 23% 23% 23% Increased Casual 40% 60% 80% Note: #of respondents varies 4 The question considered a 10 year historical trend. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 11 Trends for full time, part time and casual employment were consistent. 69% of businesses (53 respondents) interviewed expect the size of their full-time workforce will stay the same over the next 3 years, with 65% indicating their casual work force will stay the same. Figure 20: Employment trend over next 3 years 12% Decreased 8% 4% Casual 65% Stayed the same 72% 69% Part Time Full Time 23% 19% 27% Increased 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: #of respondents varies Workforce Demographics 39% (28 respondents) indicated that the majority of their essential employees are over 50 years old. 31% (22 respondents) of businesses indicated that their workforce is between 35 and 49, and just 7% (5 businesses) have a workforce under the age of 25. Figure 21: Age of the majority of essential employees 50 or older 39% 35 - 49 31% 26 - 34 24% Less than 25 7% 0% 10% 20% 30% 40% 50% Note: 72 respondents Wages When reporting on average wages for skilled or professional workers, the majority of responses indicated they pay between $20 and $29 per hour (32% or 16 businesses) and between $15 and $19 per hour (32% or 16 businesses). The most commonly reported average hourly wage for semiskilled workers (31% or 12 businesses) was between $15 and $19 and the most commonly reported average wage for entry-level workers (66% or 25 businesses of respondents) was Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 12 between $10 and $12. 46% of respondents (28 respondents) reported that their wage scale is similar to other businesses in the region5. Figure 22: Wages in relation to other businesses in the region Greater than 39% Same as 46% Lower than 15% 0% 10% 20% 30% 40% 50% Note: 61 respondents Recruitment and Retention Of those businesses that responded, 82% (61 respondents) indicated that the number of unfilled positions at their company would remain constant. Figure 23: Trend in unfilled positions Increasing Decreasing Stable 11% 7% 82% 0% 20% 40% 60% 80% 100% Note: 74 respondents The vast majority of respondents (85% or 63 respondents) reported that they primarily recruit employees from local labour markets. 9% (7 respondents) recruit provincially, while 5% (4 respondents) report that they recruit at the national level. International recruitment was not identified by the respondents. Figure 24: Location of workforce recruitment Locally 85% Provincially 9% Nationally 5% 0% 20% 40% 60% 80% 100% Note: 74 respondents 5 Detailed wage data is found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 13 Of the 80 respondents, 43% (34 respondents) indicated that they have experienced recruitment challenges and 21% (16 respondents) indicated that they have experienced retention challenges. Figure 25: Recruitment and retention challenges Recruitment challenges Retention challenges 43% 21% 0% 10% 20% 30% 40% 50% Note: # of respondents varies When asked what efforts their business has undertaken to retain employees, 49 businesses responded. The most frequent response regarding action taken were competitive wages (24% or 12 respondents) and treating employees well (24% or 12 respondents).Training (12% or 6 respondents) and finding additional work for staff during slow times (12% or 6 respondents) was also frequently cited. Figure 26: Key words and responses in respondents' discussion of retention efforts “Do "make work" projects to keep them employed during slow times.” “Treat them like family.” “Review wages on a regular basis.” “Making an effort to meet their needs (e.g. providing housing, transportation or assisting with child care).” Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 14 When asked what efforts businesses have undertaken to recruit employees, the efforts that emerged most often were word of mouth (20% or 13 respondents), social media (19% or 12 respondents), internet (16% or 10 respondents), and advertising (16% or 10 respondents),. Respondents also cited using a wide variety of other means, including contact with Kootenay Employment Services (KES), contact with the College, and networking. Figure 27: Recruitment Activities Word of mouth 20% Social Media 19% Internet 16% Advertising 16% Contact with KES 9% Reached out to Colleges 3% Networking 3% Building positive relationships 3% Training 2% Summer Works Program 2% Recruiting Firms 2% Raised Wages 2% Job Fairs 2% Flex time 2% Benefits 2% 0% 5% 10% 15% 20% 25% Note: 64 respondents Of the 34 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include agriculture/farming related (24% or 8 respondents), sales/retail, professional/technical, machine operators, and food/beverage service (cited by 9% or 3 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 15 Figure 28: Current recruitment areas Other 94% Agriculture/Farming 24% Sales/Retail 9% Professional/Technical 9% Professional/Other 9% Machine Operators 9% Food/Beverage Service 9% Healthcare Professionals 6% Plant Managers / Operators 3% Marketing 3% Manufacturing/Other 3% 0% 20% 40% 60% 80% 100% Note: 34 respondents 46% of respondents (35 businesses) anticipate future recruitment difficulties. The most commonly anticipated recruitment areas which may prove challenging include agriculture/farming (14% or 5 respondents) and professional/other (11% or 4 respondents). Figure 29: Future areas where recruitment may be challenging Other 94% Agriculture/Farming 14% Professional/Other 11% Sales/Retail 9% Food/Beverage Service 9% Construction/Contractors 6% Professional/Technical 3% Marketing 3% Machine Operators 3% Electrical/Electronics 3% Advanced Manufacturing Workers 3% 0% 20% 40% 60% 80% 100% Note: 35 respondents 37% of respondents (25 respondents) indicated that they believed that there were strategies that could be undertaken to address employee recruitment. 24% (6 respondents) believed that Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 16 advertising could be effective, while 16% (4 respondents) suggested training, and another 16% (4 respondents) suggested subsidizing wages. Figure 30: Strategies to overcome employee recruitment challenges No 58% Yes 42% 0% 10% 20% 30% 40% 50% 60% 70% Note: 67 respondents Skills and Training The majority of respondents (47%) indicated that over half of their workforce is comprised of skilled or professional workers, 14% indicated that their workforce is mainly semi-skilled workers, and 16% indicated that entry-level workers make up the majority of their workforce. Figure 31: Skill level of majority of workforce Entry-level 16% Semi-skilled 14% Skilled/Professional 47% 0% 10% 20% 30% 40% 50% Note: # of respondents varies Figure 32: Training Budget 58% (46 businesses) indicated that there is a training budget to upgrade employee skills. 86% (68 businesses) indicated that their company offers in-house training, and 45% (35 businesses) use contracted training. No 42% Yes 58% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses Note: 79 respondents 17 57% of respondents (45 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 33: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills No 43% Yes 57% 0% 10% 20% 30% 40% 50% 60% Note: 79 respondents 65% or 52 respondents indicated that there are areas of training or professional development that would be of benefit. Most commonly listed among these areas were marketing skills (14% or 7 businesses), bookkeeping (14% or 7 businesses), and food safe (12% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 18 Figure 34: Training or professional development needs Marketing 14% Bookkeeping 14% Food Safe 12% Social media 10% Business Management 10% Worksafe Courses 6% Local Workshops 4% Customer service 4% Workshops relating to the dairy… 2% Workforce Safety 2% Word Press 2% WHMIS 2% Tractor safety 2% Time management 2% Survey specific training 2% Professional Driver Training 2% Irrigation management 2% Horticulture training 2% Home Protection Office insurance… 2% Hair workshops 2% Green energy 2% Franchise Training 2% Forklift Training 2% First Aid 2% FARSHA (Farm & Ranch Safety &… 2% Conflict Resolution 2% Child care 2% Bartending 2% Auto glass training 2% Advertising 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 51 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 19 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 (25% or 18 businesses), marketing/social media (13% or 9 businesses), and emerging technologies (10% or 7 businesses). Figure 35: Areas for new Training in next five years Computer and technology training 25% Marketing/ Social Media 13% Emerging Technologies 10% Food Safe 6% Building Codes 6% Sustainable Farming 1% Property Management 1% Organic farming 1% Land stewardship 1% Incident Investigation 1% HACPP 1% Export Regulations 1% Energy conservation 1% Emerging Nursing Practices 1% Emerging Auto Practices 1% Computer networking 1% Cocoa processing 1% Alcohol processing 1% Agricultural 1% 0% 5% 10% 15% 20% 25% 30% Note: 71 respondents 54% of respondents (42 businesses) stated that they prefer training when it is delivered through individual coaching and/or a classroom setting, while 40% (31 businesses) preferred an online/webinar format. Figure 36: Preferred modes of training Other Individual coaching Classroom Online/ Webinar training 8% 54% 54% 40% 0% 10% 20% 30% 40% 50% 60% Note: 78 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 20 73% of respondents (53 businesses) typically seek training opportunities that are offered locally, and 25% (18 businesses) travel to other areas in the province for their training. Fewer training opportunities are sought elsewhere in the region, country, or in the United States. Figure 37: Usual training locations Local 73% British Columbia 25% Regional 22% Rest of Canada 11% United States 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 73 respondents Unions 11 businesses (14%) reported that they have union status. Employees The most frequently cited critical issues for employees are the cost of living (84% or 61 businesses) and housing (58% or 42 businesses). Child Care (40% or 29 businesses) and transportation (37% or 27 businesses) issues were also cited. For a list of factors included in the “other” category charted below, refer to Appendix A. Figure 38: Critical considerations for employees Other 21% Cost of living 84% Housing 58% Child care 40% Transportation 37% 0% 20% 40% 60% 80% 100% Note: 73 respondents 92% of businesses (72 businesses) interviewed reported that over 75% of their employees live within the community, 8% (1 business) indicated that 75% of the employees live elsewhere in the region and 20% (2 businesses) indicated that their workforce lives outside of the region. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 21 SALES Market Size and Share The highest number of respondents (16 businesses or 29%) reported annual sales between $100,000 and $499,000. The second highest number of respondents (14 businesses or 25%) reported annual sales of between $1 million and $4.9 million. The lowest number (1 business or 2%) reported sales of over $50 million. Figure 39: Annual sales over $50 million $50 million to 20 million $19.9 million to 10 million $9.9 million to 5 million $4.9 million to 1 million $999,999 to $500,000 499,999 to $100,000 $99,999 to $50,000 $49,999 to $25,000 Under $25,000 2% 4% 4% 2% 25% 7% 29% 9% 11% 7% 0% 5% 10% 15% 20% 25% 30% 35% Note: 55 respondents The majority of businesses interviewed (63% or 50 businesses) indicated that the size of the market for their product or service is increasing. Another 26% (21 businesses), reported that the market is stable. Figure 40: Status of market for product/service Increasing Decreasing Stable 63% 11% 26% 0% 10% 20% 30% 40% 50% 60% 70% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 22 55% (37 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is stable, while 34% (23 businesses) indicated that it is increasing. A small number of respondents (10% or 7 businesses) indicated that their market share is decreasing. Figure 41: Market Share in Comparison to Competitors Increasing Decreasing Stable 34% 10% 55% 0% 10% 20% 30% 40% 50% 60% Note: 67 respondents Growth 33% of respondents (24 businesses) expect to see low growth in sales in the realm of 1 – 9%. Moderate growth in sales of 10-24% over the next year is projected by 18% of respondents (13 businesses). A combined 14% (total of 11 businesses) expect strong sales growth of over 25%. 29% (21 businesses) of respondents expect their sales to remain stagnant, while a further 5% (4 businesses) expect sales to decline. Figure 42: Projected sales growth in the next year Over 100% 50 - 99% 25 - 49% 10 - 24% 1 - 9% 0% Declining 4% 5% 5% 18% 33% 29% 5% 0% 5% 10% 15% 20% 25% 30% 35% Note: 73 respondents The majority of responses (64% or 49 businesses) indicated that sales at their business have increased over time, 24% (18 businesses) indicated that sales have remained relatively stable, and 11% (8 businesses) reported that sales have declined. 31% or 5 businesses reported that sales at their parent company have historically increased, 6% (1 business) reported that they have stayed the same, and 6% (1 business) reported a decline. It is worth noting that only 16 respondents answered this question, and of those 56% found the question not applicable. Data indicates that the sales trend within respondents’ respective industries has more closely followed the sales trend reported at the location rather than the parent company. 58% percent of Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 23 respondents (42 businesses) reported that sales within their industry have been increasing while 19% (14 businesses) reported that they have been decreasing, and an additional 19% (14 businesses) indicated sales in their industry are declining. Of the 14 businesses that reported exporting to international markets, 7% (5 businesses) indicated that their export sales have been increasing , 7% (5 businesses) indicated that they have been stable, and 6% (4 businesses) resported export sales are in decline. Figure 43: Historic sales trend 80% 1% Not applicable 56% 3% 7% Increasing 64% 31% 7% Staying the same Sales at parent company Sales within industry 19% 6% 11% 6% 0% Sales at this business 24% 6% Declining Export Sales 58% 19% 20% 40% 60% 80% 100% Note: #of respondents varies Source of Sales The customer base among Creston businesses appears to be fairly reliant on a diverse customer base, with the largest percentage of respondents (31% or 14 businesses) indicating that 10 – 25% of their sales are generated by their top three customers. There does appear to be some reliance on a core customer as indicated by the 9% of respondents (4 businesses) that indicated that between 76 – 100% of their sales are generated by their top three customers. Figure 44: Sales generated by top three customers 76 - 100% 9% 51 - 75% 18% 26 - 50% 13% 10 - 25% 31% 1 - 9% 29% 0% 5% 10% 15% 20% 25% 30% 35% Note: 45 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 24 A majority of respondents (74%) 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 5% indicated the majority of sales to a national market. Fewer respondents indicated that the majority of their sales are to US or international markets (0% and 4% respectively). Additionally, when asked whether they supply products or services to any company in the community, 65% (51 respondents) indicated that they did. Figure 45: Geographic source of majority of sales International United States National Provincial Local 4% 0% 5% 5% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: # of respondents varies 28 respondents (35%) indicated that they import goods or services from other countries and 14 respondent (18%) indicated that they export goods or services to other countries. 55% of respondents did not find the question applied to them, or responded that they had no international trade status. Figure 46: International trade status Not applicable None Import Export 20% 35% 35% 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 79 respondents Yes 18% Procurement Figure 47: Engagement with government procurement processes Only 18% (14 respondents) indicated that they engage in government procurement. No 82% Note: 79 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 25 48% of respondents (29 businesses) interviewed reported that they purchase a majority of their supplies from local sources. 23% (14 businesses) indicated that the majority of their supplies come from businesses located within the province. Figure 48: Geographic source of majority of supplies International United States National Provincial Local 2% 5% 16% 23% 48% 0% 10% 20% 30% 40% 50% Note: # of respondents varies Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the most common response (70% or 48 businesses) indicated that the products they need are not available locally. Figure 49: Reason for out-of-area purchasing Other Product not available here No applicable to this business Higher costs locally Quality of available products head office decision No control Unaware of local venders Loyalty to current supplier 7% 70% 17% 17% 12% 10% 10% 4% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 69 respondents The most commonly referenced products that businesses stated they would like to source from a local supplier include farming supplies, produce, and packaging supplies. Financing Businesses accessed internal funding (84% or 64 businesses) most frequently when capital was required to meet needs. Loans were also frequently accessed with 70% of businesses (53 respondents) indicating that they had accessed this type of financing. Capital financing was accessed by 21% of respondents (16 businesses). The type of internal financing was divided between personal savings (70% or 43 respondents) and retained earnings (70% or 43 respondents). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 26 Figure 50: Types of Financing Internal 84% Lending (Pay back with predetermined interest rate) Capital Financiers (money is given in exchange for shares of ownership) 70% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Note:76 respondents Lending took many forms, with 60% of respondents (32 businesses) indicating that lending came from a line of credit. 60% (32 businesses) also indicated that a bank loan was accessed. 55% (29 businesses) made use of credit cards. Other forms of lending included private loans (21% or 11 respondents) and vendor credit (17% or 9 respondents). Figure 51: Types of Lending Other Line of credit Bank loan Credit cards Private loan Vendor credit 9% 60% 60% 55% 21% 17% 0% 10% 20% 30% 40% 50% 60% 70% Note:53 respondents Capital financing was most commonly accessed from family members (44% or 7 businesses), while small individual investors, other businesses, and friends were other sources (6% or 1 business respectively). ‘Other’ sources can be found in Appendix A. Figure 52: Types of Capital Financing Other Family Small individual investors Other businesses Friends 56% 44% 6% 6% 6% 0% 10% 20% 30% 40% 50% 60% Note:16 respondents The most frequently cited barrier to accessing financial capital was insufficient earnings or collateral to interest external sources (44% or 11 businesses). The exhaustion of local sources and Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 27 the lack of available local lenders was also cited by 16% or 4 businesses respectively. Refer to Appendix A for list of ‘Other’ responses. Figure 53: Barriers to Capital Financing Other 36% Insufficient earnings or collateral to interest external sources (lending or capital financing) 44% Local sources are exhausted 16% Local lenders and capital financiers not available 16% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Note:25 respondents 44% of businesses (32 respondents) indicated that they expect that they will need to access financial capital in the next 1 – 3 years. 78% (25 businesses) anticipate using financing to expand/improve equipment, while 66% (21 businesses) expect to expand/improve their building or land. Figure 54: Purpose for Future Financial Capital Needs Other 3% Expanding/Improving Equipment (technology; machinery; vehicles) 78% Expanding/Improving Land/building 66% Maintaining operational expenses 13% Expanding/Improving Human Resources 6% 0% 20% 40% 60% 80% 100% Note:32 respondents 48% of respondents (16 businesses) have not identified how they will access the desired financial capital in the coming years. Of the 52% (17 respondents) that have, 76% (13 respondents) will use internal sources, 47% (8 respondents) will access lending, and 12% (2 respondents) will access finances through capital financiers. Internal funding will come from two sources: personal savings (54% or 7 businesses) and retained earnings (77% or 10 businesses). Most lending sources will come from banks (66% or 5 businesses), with lines of credit (38% or 3 businesses) also frequently cited. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 28 Figure 55: Source for Future Financial Capital Needs Internal 76% Lending (Pay back with predetermined interest rate) Capital Financiers (money is given in exchange for shares of ownership) 47% 12% 0% 20% 40% 60% 80% 100% Note:17 respondents 43% (23 businesses) of respondents were looking for over $100,000 to meet their future capital needs, while 32% (0r 17 businesses) were looking for $25,000 or less. Figure 56: Future Capital Needs $100K or more $25K or less $25K to $50K $50K to $100K 43% 32% 13% 11% 0% 10% 20% 30% 40% 50% Note:53 respondents Figure 57: Community Investment Mechanism I am not sure, 13% Yes, I would offer equity in my business, 5% 43% of businesses (33 respondents) indicated that if a mechanism existed to enable community investment into local businesses, that they would use that mechanism to access a loan. Yes, I would access a loan, 43% Note:77 respondents No, I would not use this mechanism , 39% When asked to identify the social return on investment (i.e. how do you help people?), the majority of respondents indicated that Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 29 employment was the single biggest social contribution. Figure 58: Return on Investment: Social Employment Training Start a business Share resources. Raise family Organic produce Mentor organic growers Grow food Enhance learning facilities Employ disabled Donate to food bank Boost morale Assist with child learning Advertising A place to live 56% 15% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 0% 10% 20% 30% 40% 50% 60% Note:27 respondents 47% of respondents (8 businesses) indicated that they could offer a 5% return on investment. Figure 59: Return on Investment: Financial 5% 4% 8% 6% 3% 2% 15% 47% 12% 6% 6% 6% 6% 6% 0% 10% 20% 30% 40% 50% Note:17 respondents Environmental benefits of an investment included: following environmental practices (27% or 7 businesses), energy efficiency (23% or 6 respondents), and increase agriculture (12% or 3 respondents). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 30 Figure 60: Return on Investment: Environmental Follow environmental practices Energy efficiency Increase agriculture Water conservation Recycling Maintain land Green energy Waste reduction Sustainable food production Repurpose product line Reduced energy usage Reduce pesticide usage Reduce herbicide usage Improve soil health Grow local produce Gray water recovery 27% 23% 12% 8% 8% 8% 8% 4% 4% 4% 4% 4% 4% 4% 4% 4% 0% 5% 10% 15% 20% 25% 30% Note:26 respondents FACILITIES AND EQUIPMENT Size and Condition 45% (33 businesses) of respondents reported that their facility is between 1,000 square feet and 4,999 square feet in size, and another 18% (13 businesses) indicated it was less than 1,000 square feet. Figure 61: Size of facility 20,000 sq ft or more 10,000-19,999 sq ft 5,000-9,999 sq ft 1,000-4,999 sq ft less than 1,000 sq ft 15% 12% 10% 45% 18% 0% 10% 20% 30% 40% 50% Note: 73 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 31 54% of respondents (43 businesses) indicated that their facility is in good condition. Another 30% (24 businesses) indicated that it is in excellent condition and 16% (13 businesses) reported that their facility is in fair condition. No businesses reported that their facility is in poor condition. Figure 62: Condition of facility Fair Good Excellent 16% 54% 30% 0% 10% 20% 30% 40% 50% 60% Note: 80 respondents 51% (41 businesses) of respondents indicated that their equipment is in good condition. 33% (26 businesses) indicated that it is in excellent condition and 15% (12 businesses) report their equipment is in fair condition. Figure 63: Condition of equipment Poor Fair Good Excellent 1% 15% 51% 33% 0% 10% 20% 30% 40% 50% 60% Note: 80 respondents Ownership Figure 64: Ownership status of facility Leased, 22% 78% of respondents (62 businesses) own the facility in which they operate and 22% (17 businesses) lease it. Owned, 78% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses Note: 79 respondents 32 Of the 17 businesses that lease their facility, and provided a response to the question, 38% have between 1 and 2 years remaining on their lease and another 38% have over 5 years remaining. The majority of respondents that lease their facility (94% or 16 businesses) intend to renew their current lease agreement. Figure 65: Length of time remaining on lease >5 Years 3-5 Years 1-2 Years <1 Year 38% 13% 38% 13% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 17 respondents Figure 66: Ownership preference Lease, 16% 84% of respondents (65 businesses) would prefer to own their facility. Own, 84% Note: 77 respondents Investment and Expansion 47% of respondents (35 businesses) indicated that their company’s investment in their facility has stayed the same over the past 18 months, while 45% (33 businesses), indicated that the investment has increased. Only six businesses (8%) indicated that investment in their facility has decreased over the same time period. Figure 67: Historical Investment in facility (past 18 months) Increasing Staying the same Declining 45% 47% 8% 0% 10% 20% 30% 40% 50% Note: 74 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 33 69% of respondents (55 businesses) indicated that there was room for expansion at their site, and 26% (21 businesses) indicated that there was not room at their site. Figure 68: Room for expansion Maybe No Yes 5% 26% 69% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 80 respondents Figure 69: Plans to expand within three years Yes, 43% No, 58% 43% of respondents (34 businesses) plan to expand within three years,58% (46 businesses) do not. Additionally, 41% (33 businesses) plan to expand in the next 12 – 18 months. Note: 80 respondents Figure 70: Adequacy of current site to support expansion No, 27% Yes, 73% Of the 34 businesses planning expansion within the next three years, 73% (24 businesses) reported that their current site will be adequate. Notably however, 9 businesses (27%) reported that they will have to look for a new site to meet their planned expansion needs. Note: 33 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 34 The vast majority of respondents (94% or 31 businesses) indicated that expansion will occur within the community. Figure 71: Expansion to occur in community No 6% Yes 94% 0% 20% 40% 60% 80% 100% Note: 34 respondents The total investment anticipated for the planned expansion plans ranges substantially. 31% (8 businesses) anticipate investing between $25,000 and $99,999, and an additional 27% (7 businesses) are planning larger investments in the range of $100,000 to $499,999. Figure 72: Estimated expansion investment $1-$4.9 million 12% $500,000-$999,999 19% $100,000-$499,999 27% $25,000-$99,999 31% Less than $25,000 12% 0% 5% 10% 15% 20% 25% 30% 35% Note: 26 respondents Of the 34 businesses planning expansion, 50% (14 businesses) responded to state that they expect to spend under 50% of their expansion budget on equipment and technology, while 29% (8 businesses) responded to indicate that 50% - 90% of their expansion budget will be devoted to equipment and technology. Figure 73: Component of expansion budget for equipment and technology 100% 50 to 99% Under 50% 21% 29% 50% 0% 10% 20% 30% 40% 50% 60% Note: 28 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 35 19 respondents (73% of businesses) expect to spend 50 - 99% of their expansion budget on real estate, while another 12% (3 businesses) expect to spend under 50% and 12% (3 businesses) of respondents will spend 0% of their expansion budget on real estate. Figure 74: Component of expansion budget for real estate 100% 50 to 99% Under 50% 0% 4% 73% 12% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 26 respondents 65% (13 respondents) of businesses indicated that expansion plans will be between 1,000 and 4,999 square feet. 25% (5 respondents) of businesses anticipated an expansion of less than 1,000 square feet, while just two respondents (10%) expected an expansion of between 5,000 and 9,999 square feet. Figure 75: Size of facility expansion 5,000-9,999 sq ft 10% 1,000 to 4,999 sq ft 65% Less than 1,000 sq ft 25% 0% 10% 20% 30% 40% 50% 60% 70% Note: 20 respondents Facility Upgrades Figure 76: Recent facility upgrades No 30% Yes 70% 70% of businesses (56 businesses) indicated that there had been recent facility upgrades. Of those 56 businesses, 20% indicated that those upgrades were completed in the last 3 months, 6 months, and 12 months respectively. Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 36 Figure 77: Planning facility upgrades No 41% 59% (46 businesses) indicated that they are planning facility upgrades, and that the majority (31% or 14 businesses) of those planning upgrades will occur in the next 12 months. Yes 59% Note: 45 respondents Respondents were also asked to identify any barriers to upgrading. The most frequently cited barrier was financial (50% or 4 businesses). Other factors cited include space, marketing, low return on investment. Figure 78: Barriers to upgrading Financing 50% Space 38% Marketing 13% Low return on investment 13% 0% 10% 20% 30% 40% 50% 60% Note: 8 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 37 Respondents cited a variety of factors that act as constraints to their expansion. Most common of those were finance (79% or 26 businesses), identifying and accessing new markets (36% or 12 businesses), and lack of skilled staff (30% or 10 businesses). Figure 79: Barriers to expansion Finance 79% Identifying and accessing new markets 36% Lack of skilled staff 30% Other (please specify): 27% Local regulations e.g. zoning 27% Energy costs 21% Transport/freight 15% Lack of suitable premises 15% Warehousing 9% Energy reliability 9% Broadband access 9% 0% 20% 40% 60% 80% 100% Note: 33 respondents Just 32% of respondents (11 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 (20% or 2 businesses), Community Futures (20% or 2 businesses), and the local Chamber of Commerce (20% or 2 businesses). Figure 80: Organizations approached for expansion assistance Other (please specify): 70% Local Council 20% Community Futures 20% Chamber of Commerce 20% Local Economic Development Office 10% BC Hydro 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 10 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 38 Energy Efficiency Figure 81: Considering energy efficiency in expansion plans 64% of those who responded (35 businesses) are considering energy efficiency in their expansion plans. No, 29% Yes, 71% Note: 55 respondents Figure 82: Awareness of BC Hydro Power Smart No 36% Yes 64% 71% of respondents (57 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. Note: 80 respondents GOVERNMENT SERVICES Respondents were asked to rate a list of government services as poor, fair, good or excellent. Respondents also had the option to rate a service as not applicable to their business.      The services that received the highest number of POOR ratings were access to airport facilities (24% or 19 businesses), access to suppliers (19% or 15 businesses), and availability of road transport services (19% or 15 businesses). The services that received the highest number of FAIR ratings were access to suppliers (33% or 26 businesses), access to airport facilities (29% or 23 businesses), and access to markets (29% or 23 businesses). The services that received the highest number of GOOD ratings were access to highways/roads (63% or 50 businesses), inspections/licensing (62% or 49 businesses) and water and sewerage supply (63% or 50 businesses). The services that received the highest number of EXCELLENT ratings were access to US border (59% or 47 businesses), access to highway/roads (28% or 22 businesses), and recycling (26% or 21 businesses). The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (89% or 70 businesses), availability of rail transport (88% or 68 businesses), and the availability of warehousing (74% or 57 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 39 Figure 83: Rating of government services 1% 16% 3% 6% Availability of warehousing 14% Availability of road transport services 0% Availability of rail transport 0% 0% 1% 10% 43% 25% 19% 88% Availability of buildings for lease or purchase 3% 18% 8% 13% Availability of appropriately zoned land 5% % Good 36% 33% 19% % Fair % Poor 16% 44% 29% 10% 1% Access to markets 28% 9% 1% 0% % Not Applicable 63% 5% 27% 29% 24% 15% Access to airport facilities Access to Port Facilities % Excellent 11% 1% Access to US Border 59% 31% 15% 13% 36% Access to suppliers Access to highway/ roads 74% 1% 0% 3% 59% 38% 0% 1% 3% 8% 0% 89% 50% 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 40 9% Water and sewerage supply 63% 18% 6% 4% 19% Telecommunica tions (internet, cell) 55% 19% 8% 0% 26% 50% Recycling % Excellent 16% 8% 0% % Good % Fair 11% Inspections /licensing 62% 11% 8% 8% 11% Disposal of waste material 15% 9% 15% % Poor % Not Applicable 50% 10% Development approval process 42% 13% 5% 29% 0% 50% 100% Note: # of respondents varies When asked whether there were any suggestions on how to improve any of the services and infrastructure, 56% respondents (44 businesses) indicated they had suggestions. The highest number of responses (11% or 5 businesses) discussed improvements to the highway infrastructure, along with expansion of high speed internet services (9% or 4 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 41 Figure 84: Key words and responses in respondents' suggestions for improvements to government services “any increased competition with respect to telecommunications would help to reduce prices.” “get rid of privitization of highway's maintenance -- very bad service!” “Stronger cell coverage and more affordable internet.” Airport Service The Canadian Rockies International Airport (Cranbrook) is the most used airport, with 82% of respondents (55 businesses) indicating they use that airport. The Spokane International Airport was the second most used with 28% (19 businesses), and the Castlegar Airport being used by 16% of respondents (11 businesses). Figure 85: Airport service used Cranbrook Spokane Castlegar Calgary Trail Creston Vancouver Kelowna Edmonton Bonners Ferry 82% 28% 16% 15% 7% 7% 6% 1% 1% 1% 0% 20% 40% 60% 80% 100% Note: 67 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 42 Respondents indicated that they would most like improvements to scheduled flights (50% or 17 businesses) and flights to Calgary (12% or 4 businesses). Figure 86: New services at local airport Scheduled flights 50% Calgary 12% Local flights to Calgary and Vancouver 9% Freight shipping 9% More Airlines 6% Improvements to navigational aids 6% Cranbrook 6% Pacific Coastal Air flights 3% Medivac 3% Improve traffic control 3% Coffee Shop 3% Airport service to Cranbrook 3% Air shuttle to Vancouver 3% 0% 10% 20% 30% 40% 50% 60% Note: 34 respondents BUSINESS CLIMATE Quality of Business Climate The majority of responses rated the overall business climate as fair (55% or 43 businesses). Figure 87: Rating of local business climate Poor 6% Fair 55% Good 37% Excellent 1% 0% 10% 20% 30% 40% 50% 60% Note: 78 respondents Respondents rated the quality of a list of specific business climate factors as either poor, fair, good, excellent, or not applicable to their business.  The factors that received the highest number of POOR ratings included technical training (34% or 27 businesses), economic development (19% or 15 businesses), local tax structure (15% or 12 businesses), and workforce availability (15% or 12 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 43     The factors that received the highest number of FAIR ratings included economic development (38% or 30 businesses), workforce stability (44% or 35 businesses), and workforce availability (44% or 35 businesses). The factors that received the highest number of GOOD ratings included Chamber of Commerce (63% or 50 businesses) and local government (60% or 48 businesses). The factors that received the highest number of EXCELLENT ratings included cultural/recreational amenities (21% or 17 businesses) and K-12 education (9% or 7 businesses). The factors that received the highest number of NO OPINION ratings include Community Futures (29% or 23 businesses) and Technical Training (22% or 17 businesses). Figure 88: Rating of business climate factors 4% Local Tax Structure 29% 15% 9% 44% 1% Local Government 60% 26% 8% 5% 9% K-12 education 53% 16% 6% 16% 0% Housing 11% 13% % Excellent 1% Economic Development 9% Cultural/Recreational Amenities 6% 3% % Fair % Poor 21% 15% 55% 14% 10% 29% 29% 45% 6% Chamber of Commerce 63% 15% 9% 8% 0% 20% % No Opinion 53% 3% Colleges/Universities % Good 34% 38% 19% 6% 10% 1% Community Futures 48% 28% 40% 60% 80% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 44 4% Workforce Stability 37% 9% 6% 44% 6% Workforce Quality 8% 1% 54% 31% % Excellent 1% 39% Workforce Availability 15% 1% % Good 44% % Fair % Poor 6% Tourism services 4% 11% 0% 22% 23% Technical Training 22% 0% % No Opinion 55% 24% 10% 20% 30% 34% 40% 50% 60% Note: # of respondents varies 51% of respondents (39 businesses) felt that the business climate is better today than it was 5 years ago. 14% (11 businesses) thought that it is worse, and 23% (18 businesses) believed there was no change in the business climate. The main reason given from those who believe the business climate is worse is the declining economy (37% or 4 respondents). Figure 89: Business climate today vs. 5 years ago No opinion 12% Worse today 14% No change 23% Better today 51% 0% 10% 20% 30% 40% 50% 60% Note: 77 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 45 60% of respondents (47 businesses) expect that the business climate will be better 5 years from today. 5% (4 businesses) expect that it will be worse. Figure 90: Business climate 5 years from today No opinion Will be worse No change Will be better 10% 5% 24% 60% 0% 10% 20% 30% 40% 50% 60% 70% Note: 78 respondents Strengths and Weaknesses of Business Climate 85 responses were provided when respondents were asked to list the community’s strengths as a place to do business, the highest number of responses (46% or 35 responses) cited the supportive community as the community’s primary strength. 14% (11 businesses) indicated the location and 11% (8 businesses) indicated the climate. Figure 91: Community’s strengths as a place to do business Supportive community 46% Location 14% Climate 11% Workforce 7% Proximity to US 7% Agriculture 5% Tourism 4% Lifestyle 4% Recreational opportunities 3% Loyal Customers 3% Diversity of products 3% Networking 1% Low crime 1% Great pride 1% Good restaurants 1% Diverse economy 1% 0% 10% 20% 30% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 40% 50% 46 Note: 76 respondents Respondents were asked to list the community’s weaknesses as a place to do business. The highest number of responses (19% or 15 respondents) was received for the proximity to the US and its’ isolated location respectively. The low population were cited by 17% of respondents (13 businesses), while the resistance to change and lack of suppliers were both cited by 5% of respondents (4 businesses). Figure 92: Community's weaknesses as a place to do business Proximity to US Isolated location Low population Resistance to change Lack of suppliers Underground economy Transportation costs Aging population Poor customer service Lack of amenities Inaccessible government services Vacant commercial buildings Training Too dependent on tourism Tax structure Small market Skilled labour Poor internet service Low average income Laid back attitude Lack of water Lack of growth High commercial rent Decline in tourism Customer service Agriculture market saturation Affordable housing 19% 19% 17% 5% 5% 4% 4% 4% 3% 3% 3% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% Note: 78 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 47 Business Growth 81% of respondents (65 businesses) indicated that there are barriers to growth. The highest number of respondents (20% or 13 businesses) stated that the low population is an important barrier to growing the community’s economy. Other commonly cited barriers include isolated location (17% or 11 businesses) and resistance to change (9% or 6 businesses). Figure 93: Barriers to growth in the community Low population Isolated location Resistance to change Land availability Economic seasonality Skilled labour Aging population Access to markets ALR Restrictions Small market Lack of planning Economy Transportation Tax structure Low income levels Limited services Lack water Lack of jobs Internet access Affordable housing 20% 17% 9% 6% 6% 5% 5% 5% 5% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 0% 5% 10% 15% 20% 25% Note: 65 respondents The following excerpts illustrate the barriers cited: “need a more "mixed age" population.” “not much to do in winter time.” “remote/rural location far from major centres.” “chipping away of basic services that the community has to fight for to retain.” Respondents were asked about the level of support they received from various business support providers. The Chamber of Commerce received the highest Poor response (5% or 4 businesses) and one of the highest Excellent responses (11% or 8 businesses), as well as high responses for Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 48 Good (46% or 35 businesses) and Fair (17% or 13 businesses). Community Futures was cited as providing an excellent level of service by 14% of respondents (10 businesses). Respondents found the Community Futures (4% or 3 businesses) and Chamber of Commerce (3% or 2 businesses) most commonly unable to assist. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 49 Figure 94: Level of service from business support providers Scientific Research and Experimental Development Tax Incentive Program Kootenay Aboriginal Business Advocates Society Invest Kootenay Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 0% 1% 1% 0% 0% 97% 0% 6% 3% 0% 0% 91% 0% 5% 3% 2% 2% 89% 0% 6% 4% 3% 0% 87% 4% Economic Development Organization / Commission 14% 6% 3% 0% % Excellent % Good 72% 7% Continuing Education and Workforce Training 1% 1% College Industry Liaison Officer % Poor 55% 12% % Unable to assist 24% 14% 8% 1% 4% Community Futures % Not Applicable 33% 40% 1% 4% 1% 1% 0% 91% 11% Chamber of Commerce 5% 3% 17% 0% 46% 18% 9% 12% 6% 1% 1% Basin Business Advisors % Fair 71% 20% 40% 60% 80% 100% 120% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 50 % Excellent 0% 1% 1% 0% 0% Scientific Research and Experimental Development Tax Incentive Program % Good % Fair 97% 0% 20% 40% 60% 80%100%120% % Poor % Unable to assist Note: # of respondents varies 29% of respondents (23 businesses) indicated that there are suppliers that could locate in the region. Agricultural suppliers was most commonly cited by 50% of respondents (8 businesses), with packaging materials being mentioned by 13% (2 businesses). Figure 95: Potential Suppliers Agricultural suppliers 50% Packaging materials 13% Technology companies 6% Manufacturers 6% Local food hub 6% Greenhouse 6% Distribution center 6% 0% 10% 20% 30% 40% 50% 60% Note: 16 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 51 When asked what business, sector or industry could be attracted to most strategically benefit the industry, the most common response was tourism (31% or 19 respondents) and agricultural valueadded businesses (24% or 15 businesses Figure 96: Sectors, businesses or industries that could be attracted to region Tourism Agriculture value-added industries Health and Wellness Construction Senior Services Forestry Food Distributors Technology businesses Retail Stores Organic farmers Micro brewery Large greenhouse Community kitchen Childcare services Beed and dairy industry Automotive Art gallery 31% 24% 6% 6% 5% 5% 5% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 0% 5% 10% 15% 20% 25% 30% 35% Note: 62 respondents Business Competitiveness and Productivity Businesses were asked to consider the importance of various factors for ensuring business competitiveness over the next five years. Those factors that received the highest number of somewhat important or very important ratings include improvement of business management (96% or 76 businesses), availability of telecommunications infrastructure and services (95% or 76 businesses), and workplace health and safety (94% or 73 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 52 Figure 97: Importance of business competitiveness factors Workplace health and safety 6% 0% Workforce skill development 9% 3% 94% 89% 75% Water/sewer costs 18% 8% Water/sewer availability 10% 5% Strategic alliances (joining with other businesses to… 21% 10% Reliable air transportation 30% 55% 15% New product research and development 85% 69% 81% 10% 9% New market development outside of region 18% 13% New market development locally 14% 8% Improving worker productivity 13% 8% Improvement of customer services 69% 78% 80% % Somewhat important, very important 81% % Not important at all or not very important 9% 10% Improvement business management 96% 3% 1% Expansion of workforce employees 27% 11% Exchange rate for Canadian dollar 62% 91% 8% 1% Energy costs 89% 10% 1% Availability of 5% telecommunications… 0% 95% Affordable shipping/freight 14% 4% Add or change in business, products or… 6% 16% Accessing capital Access to exporting and international markets 8% % Not applicable 28% 83% 78% 64% 34% 28% 39% 0% 20% 40% 60% 80%100%120% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 53 When asked to rate their business’ performance on a list of productivity drivers, the drivers that received the highest number of:     EXCELLENT ratings include investing in people and skills (20% or 15 businesses) and leadership and management capacity (19% or 14 businesses); GOOD ratings include productive workplace culture (59% or 44 businesses), organizing work (structure and process) (57% or 39 businesses), and leadership and management capacity (57% or 42 businesses); FAIR ratings include innovation and the use of technology (36% or 26 businesses); POOR ratings include measuring impact of productivity efforts/investments (12% or 7 businesses). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 54 Figure 98: Performance on key productivity drivers 15% 59% Productive workplace culture 17% 8% 1% 15% 57% Organizing work (structures & processes) 22% 4% 1% 16% Networking and collaboration with other businesses 52% 21% 8% 4% % Excellent 13% Measuring impact of productivity efforts/ investments % Good 35% 33% % Fair 12% 7% % Poor % Not Applicable 19% 57% Leadership and management capacity 19% 4% 1% 20% Investing in people and skills 50% 24% 5% 0% 13% 40% 36% Innovation & the use of technology 10% 1% 0% 20% 40% 60% 80% Note:# of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 55 Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (66% or 53 businesses), agriculture (59% or 47 businesses), relocation of people from urban centres (26% or 21 businesses), and other niche service businesses (26% or 21 businesses). For a list of drivers identified as “other”, refer to Appendix A. Figure 99: Economic drivers with greatest growth potential Other 28% Tourism 66% Agriculture 59% Relocation of people from urban centres 26% Other niche service businesses (e.g.… 26% Health & wellness 23% Forestry 23% culture and creative businesses 20% Green or environmental businesses 20% Arts 20% Construction 13% Manufacturing 10% Technology-based businesses 8% Education 4% Government 3% 0% 10% 20% 30% 40% 50% 60% 70% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 56 Proximity to Alberta 44 respondents (55%) reported that they were impacted by their proximity to Alberta. The positive impact of Alberta customers was the most significantly noted by 52% of respondents (23 businesses), while 25% (11 businesses) indicated a similar positive impact of tourism from Alberta. Figure 100: Impact of Proximity to Alberta Positive - Alberta customers 52% Positive - Alberta tourists 25% Negative - Workforce migration to Alberta 9% Negative - Alberta has lower taxes 7% Positive - Workforce migration from Alberta 2% Positive - Alberta suppliers 2% Negative - Loss of sales to Alberta 2% 0% 10% 20% 30% 40% 50% 60% Note: 44 respondents ASSESSMENT AND PLANS Overall Health The majority of businesses surveyed reported that their facility is in overall good health (74% or 59 businesses), 16% (13 businesses) reported that their facility’s health is excellent, and 9% (7 business) reported that it is fair. 1% (1 business) of respondent indicated that their company is in poor health. Figure 101: Facility’s overall health Poor Fair Good Excellent 1% 9% 74% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 57 Most businesses with a parent company indicated that the health of that parent company is good (37% or 7 businesses). Figure 102: Overall health of parent company Not applicable Poor Good Excellent 32% 5% 37% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 19 respondents Attitude toward Community 58% of respondents (46 businesses) indicated that their local management’s attitude toward the community is good and 39% (31 businesses) indicated that it is excellent. Figure 103: Local management's attitude toward community Poor Fair Good Excellent 1% 1% 58% 39% 0% 10% 20% 30% 40% 50% 60% 70% Note: 79 respondents Respondents indicated that their parent company’s attitude toward the local community is either excellent (23% or 6 businesses) or good (27% or 7 businesses). Figure 104: Parent company's attitude toward local community Not applicable 50% Good 27% Excellent 23% 0% 10% 20% 30% 40% 50% 60% Note: 26 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 58 Risk of Closing or Downsizing Data indicates that the risk of businesses closing or downsizing is low. 4% (3 businesses) of respondents reported that they are at a high risk of closing or downsizing in the next 1-3 years. Figure 105: Risk of facility closing Low 86% Moderate 10% High 4% 0% 20% 40% 60% 80% 100% Note: 80 respondents Similarly, the data indicates that the risk of downsizing is low, with only 3% (2 businesses) indicating that risk is high. Figure 106: Risk of facility downsizing Low Moderate High 88% 9% 3% 0% 20% 40% 60% 80% 100% Note: 78 respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 59 RECOMMENDATIONS NEXT STEPS The results of this survey can be used by economic development organizations in the Town of Creston & District to inform short- and long-term business retention and expansion action planning. Many BRE programs ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success, and momentum to carry out long-term actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. BRE results can form the backbone of a community’s economic development strategy and, in some cases they are integrated into the community’s Official Community Plan (OCP). Some communities form committees or action groups around the themes or action areas identified in the BRE report to ensure success in implementation. The following steps could further and support links to planning and action: 1. Continually communicate (through press, presentations, electronic media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Establish a task force or committee to continue building on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include follow-up discussions with individual businesses (particularly to address green-flags). Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues, and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans, and develop relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring program to assess the impact of implementation efforts. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 60 POTENTIAL ACTION AREAS Workforce – Recruitment & Retention The businesses interviewed reported a total of 1,711 employees. The majority (41%) of employees are temporary, followed closely by 38% full time employees. The size of the workforce appears stable and healthy, with 53% of businesses indicating that the number of employees at their business has stayed the same, and 27% indicating that the number has increased. Expected employment trends are also stable with the majority of businesses expecting the number of casual, part time, and full time employees to stay the same. Actions that could prove helpful include: support and expand recruitment efforts, assist with coordination of casual/temporary employee recruitment, and education/training on recruitment. Targeted actions to these areas could be considered. Related to recruitment and retention are the identified critical considerations for employees which include the cost of living, housing, childcare, and transportation. Interest was expressed in establishing a farm labour pool with an aim to better link farmers and available labour. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 7% of essential employees under the age of 25. The number of aging farmers is seen as indicative of the need for succession planning, but questions remain surrounding the number of youth available to take over farms. Increasing youth employment may assist in addressing the recruitment challenges that 43% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low youth employment rate, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting local businesses with local schools and post-secondary institutions. Business Growth & Expansion 57% of businesses in the region report being in a growth cycle and 30% are maturing; however 29% are not anticipating any growth in sales over the next year, with 33% expecting moderate sales growth between 1 – 9%. The vast majority of businesses (74%) indicate that the majority of their sales are to local markets, indicating there may be an opportunity to expand into surrounding markets. 43% indicate that they are planning to expand within the next three years. 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, exploring financing options, 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, identifying and accessing new markets, and a lack of skilled staff. It is worth noting that very few (32%) 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. New opportunities exist, such as a composting or value-added facility utilizing agricultural waste (e.g., cherry culls). Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 61 Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in size and independent. Tailoring supports and services to small, independent businesses, perhaps with specific actions directed at the agricultural sector will benefit businesses in Creston & District. Natural Resources/Agriculture Focus There are a significant number of businesses in the agricultural, forestry, fishing, and hunting sectors (29% according to the industry classification). However, it is important to note that the BRE stakeholder committee deliberately focused on the agricultural sector only for this study. The importance of the agricultural industry warrants specific and additional review to understand the specific challenges and opportunities this sector faces. An industry based stakeholder meeting could be convened to explore how this sector can specifically be supported. Interest was expressed in the reinstatement of a local agriculture extension office, together with a reinstatement of Canadian Food Inspection Agency and Interior Health’s Environmental Health offices. Supply Sourcing and Procurement The data indicates that 48% of supplies come from within the local region. The most common response (70%) for the reason why supplies are sourced outside of the local area is that they are not available locally. Agricultural suppliers and packaging materials were the most frequently cited areas for potential suppliers to the Creston area. 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. A stakeholder round table discussion could be a way to begin the conversation to increase supply options locally. Local businesses do not appear to engage actively with government procurement processes, with only 18% 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, and promotion on relevant websites. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 58% of businesses have a training budget and 73% indicated that training typically occurs locally. Areas for additional training/skill development include marketing skills, bookkeeping, and food safe. Future areas for training focused on computer and new technology training, as well as marketing, social media, and emerging technologies. 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 19% of respondents indicated that they have a formal succession plan and less than half (45%) have an up-to-date business plan. With 49% of businesses indicating that they have been in Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 62 business for more than 20 years, succession planning is timely for many. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small, independent businesses. 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. Financing When financing was accessed, the most frequent type was internal (84% of businesses) in the form of personal savings or retained earnings. There is a market for businesses to access financing, with 44% of businesses indicating they will need to access financing in the next 1 – 3 years for purposes of expanding or improving equipment (78%) or making improvements to their land/building (66%). Businesses were most frequently (43%) looking for $100,000 or more in future capital, with 32% indicating they would need $25,000 or less. There does appear to be a market and an appetite for a community model of financing, with opportunities in small loans of $25,000 or less and larger loans of over $100,000. Further exploration and development of a community based financing model or microloan program appears warranted. Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 63 APPENDIX A: DATA TABLES COMPANY INFORMATION Figure 1: Industry Classification NAICS Percent of Question Respondents Count Agriculture, forestry, fishing and hunting Construction Manufacturing Retail and Wholesale Trade 11 23 29% 23 31-33 41-45 3 8 14 4% 10% 18% Transportation and Warehousing 48-49 1 1% Information and Cultural Industries 51 2 3% Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific and Technical Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services Total 52 53 1 3 1% 4% 54 4 5% 61 62 71 72 81 1 7 5 6 1% 9% 6% 8% Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 2: Functions located at this facility Engineering/RD Warehousing Manufacturing Distribution Services Headquarters Total 2 80 3% 100% Count Percent of Question Respondents 11 14% 31 33 42 56 65 238 39% 41% 53% 70% 81% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 64 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 3: Who are your competitors?: Where are your competitors located? In Canada In Province Outside Canada In Region Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 4: What are the factors that make your company successful here? Customer Service Demand for product Food safety programs Good customer base Good marketing agent Low cost of overhead Niche market Proximity to US border Strong volunteer base Workforce Pricing Demographics Excellent market Tourism Customer loyalty Diversity of products Quality product Good farm land Hard work 80 80 0 100% Count 3 6 23 64 96 Percent of Question Respondents 4% 8% 30% 83% 80 77 3 96% Count Percent of Question Respondents 1 1 1 1 1 1 1 1 1 1 2 3 3 4 5 6 6 8 9 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 2.50% 3.75% 3.75% 5.00% 6.25% 7.50% 7.50% 10.00% 11.25% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 65 Reputation Excellent staff Location Supportive community Total 10 12 17 22 117 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 5: Does this company have another location elsewhere? Count Yes No Total Percent of Question Respondents 11 69 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 6: Does this company have another location elsewhere?: If Yes, where? Count Outside Canada Elsewhere in nation In Province 12.50% 15.00% 21.25% 27.50% 14% 86% Percent of Question Respondents Total 3 5 9 82% 17 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 80 11 0 11 Figure 7: Location of company's headquarters Count Percent of Question Respondents 5 74 6% 94% Elsewhere in nation In Province 27% 45% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 66 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 7b: Location of company's headquarters: Province AB QC ON BC Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 7c: Location of company's headquarters: Nation 79 80 79 1 99% Count 1 1 3 74 79 1.27% 1.27% 3.80% 93.67% 80 79 1 99% Count Canada Total 7 7 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 7 73 9% Figure 7d: Corporate headquarters location, if different than local location Fort McLeod Alberta, Edmonton Alberta, Lethbridge Alberta , Calgary Alberta, Okotoks Alberta Nelson BC , Castlegar BC , Salmo BC , Slocan Valley BC, Percent of Question Respondents Percent of Question Respondents 100.00% Count Percent of Question Respondents 1 25.00% 1 25.00% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 67 Vancouver BC, Edmonton AB, London ON, Toronto ON, Montreal PQ, Halifax NS, St. John's NL Wynndel BC Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 8: Life cycle stage of firm's primary product/service 1 25.00% 1 4 25.00% 80 4 76 5% Count Declining Emerging Growing Maturing Total 5 5 45 24 79 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 79 1 99% Figure 9: How long has this facility operated Count <1 Year 1-4 Years 5-9 Years 10-19 Years >20 Years Total 1 14 15 11 39 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 10: What is this company's ownership status? Count Percent of Question Respondents 6% 6% 57% 30% Percent of Question Respondents 1% 18% 19% 14% 49% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 68 Publicly owned Privately owned Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 10b: What is this company's legal status? Non-profit Partnership Sole proprietorship Corporation Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: 5 69 74 7% 93% 80 74 6 92% Count 5 8 20 41 2 76 Percent of Question Respondents 7% 11% 26% 54% 3% 80 76 4 95% Count Percent of Question Respondents Co-operative 1 1% Franchise Total 1 2 1% Figure 10c: What is this company's legal status?: If Other, please specify Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: 80 2 0 Parent Question Respondents: 76 Response Rate: 2 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 69 Figure 11: Has the local facility changed owners or managers in the past 5 years? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 11b: If Yes, describe the local impact of the change Count 17 61 78 80 78 2 98% Count Neutral Positive Total 5 12 17 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 80 17 0 17 78 100% Percent of Question Respondents 22% 78% Percent of Question Respondents 29% 71% Count Percent of Question Respondents Yes 3 4% No Total 75 78 96% Figure 11c: Is an ownership change pending for this facility? Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 12: If Yes what is the anticipated time frame 80 78 2 98% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 70 1 year or less 2 years 3 years or more Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 1 1 1 3 33% 33% 33% 80 3 0 3 78 100% Count Percent of Question Respondents Sell to another company Sell/transfer to a non-family member Other 1 33% 1 33% 1 33% Total 3 Figure 13: If Yes, how do you intend to exit the business? Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 13b: If Yes, how do you intend to exit the business?: If other, please explain Members can transfer their shares back into the co-op for resale to existing members. Total 80 3 0 3 78 100% Count Percent of Question Respondents 1 33.33% 1 Survey Participants: Question Respondents: 80 1 No Response Count: 0 Parent Question 'Other' Respondents: 1 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 71 Parent Question Respondents: Response Rate: Figure 14: Is there a formal succession plan? Yes No Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 14b: Have you identified a successor to your business? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 14c: If Yes, have you been assisted in preparation of a succession plan? 3 100% Count 15 60 2 77 Percent of Question Respondents 19% 78% 3% 80 77 3 96% Count 20 58 78 Percent of Question Respondents 26% 74% 80 78 2 98% Count Yes No Total 9 3 12 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 80 12 3 15 77 80% Percent of Question Respondents 75% 25% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 72 Figure 14d: If Yes, by whom Count Percent of Question Respondents Other Total 4 100.00% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 14e: If Yes, by whom: If other, please explain Accountant, Banker, Business Partner Accountant, Personal Financial Planner, and Spouse BBA program Notary Total 4 80 4 5 9 12 44% Count Percent of Question Respondents 1 25.00% 1 25.00% 1 1 4 25.00% 25.00% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: 80 7 0 Parent Question Respondents: 4 Response Rate: Figure 15: Does this firm have a current written business plan? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 4 44% Count 35 43 78 80 78 2 98% Percent of Question Respondents 45% 55% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 73 LOCAL WORKFORCE Figure 16: Total number of employees at this facility*: Total employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Total employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 17: Nature of Employment Full Time Part Time Temporary Total Survey Participants: Question Respondents: Figure 17b: Total number of employees at this facility*: Full-time employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Total full-time employees: Survey Participants: Question Respondents: No Response Count: Count 29 23 7 11 5 5 80 Percent of Question Respondents 36% 29% 9% 14% 6% 6% 1711 80 80 0 100% Count 656 360 695 1711 80 80 Count 57 10 5 4 3 1 80 656 80 80 0 Percent of Question Respondents 38% 21% 41% Percent of Question Respondents 71.25% 12.50% 6.25% 5.00% 3.75% 1.25% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 74 Response Rate: Figure 17c: Total number of employees at this facility*: Part-time employees Less than 5 5-9 10-19 20-49 50-99 Total Total part-time employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 17d: Total number of employees at this facility*: Temporary employees Less than 5 5-9 10-19 20-49 50-99 100% Count Percent of Question Respondents 65 6 3 4 2 80 81.25% 7.50% 3.75% 5.00% 2.50% 360 80 80 0 100% Count Percent of Question Respondents 59 9 2 5 3 3.75% Over 100 2 2.50% Total 80 Figure 18: Historical employment trend Declining Staying the same Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 16 42 21 79 80 79 1 99% 73.75% 11.25% 2.50% 6.25% Percent of Question Respondents 20% 53% 27% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 75 Figure 19: How did the number of staff change, if at all, in the last 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 19b: 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 19c: 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 20: How do you expect the number of staff to change, if at all over the next 3 years?: Fulltime Increased Count 17 52 6 75 80 75 5 94% Count 16 44 9 69 80 69 11 86% Count 15 44 5 64 80 64 16 80% Count 21 Percent of Question Respondents 23% 69% 8% Percent of Question Respondents 23% 64% 13% Percent of Question Respondents 23% 69% 8% Percent of Question Respondents 27% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 76 Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20b: 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 20c: 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 21: Describe the majority of essential personnel at this location Less than 25 26 - 34 35 - 49 50 or older Total Survey Participants: 53 3 77 80 77 3 96% Count 69% 4% Percent of Question Respondents 14 52 6 72 80 72 8 90% Count 19.44% 72.22% 8.33% Percent of Question Respondents 15 42 8 12.31% 65 80 65 15 81% Count 5 17 22 28 72 80 23.08% 64.62% Percent of Question Respondents 7% 24% 31% 39% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 77 Question Respondents: No Response Count: Response Rate: Figure 22: 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 22b: Average hourly wage: Skilled/Professional Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $100 or more Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22c: Average hourly wage: Semi-skilled Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 Total Survey Participants: 72 8 90% Count 9 28 24 61 80 61 19 76% Count 1 3 5 16 16 8 1 50 Percent of Question Respondents 15% 46% 39% Percent of Question Respondents 2.00% 6.00% 10.00% 32.00% 32.00% 16.00% 2.00% 80 50 30 62% Count 1 9 6 12 11 39 Percent of Question Respondents 2.56% 23.08% 15.38% 30.77% 28.21% 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 78 Question Respondents: No Response Count: Response Rate: Figure 22d: Average hourly wage: Entry-level Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23: Is the number of unfilled positions Stable Decreasing Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24: Where does the company attract the majority of its workers from? Nationally Provincially Locally Total Survey Participants: Question Respondents: No Response Count: Response Rate: 39 41 49% Count 1 25 2 9 1 38 Percent of Question Respondents 2.63% 65.79% 5.26% 23.68% 2.63% 80 38 42 48% Count 61 5 8 74 Percent of Question Respondents 82% 7% 11% 80 74 6 92% Count 4 7 63 74 Percent of Question Respondents 5% 9% 85% 80 74 6 92% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 79 Figure 25: Recruitment and retention challenges Retention challenges Recruitment challenges Figure 25b: Is employee retention a problem? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 25c: 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 26: If applicable, please describe any challenges and / or efforts you have undertaken to retain employees. Count 16 34 Count 16 60 76 80 76 4 95% Count 34 45 79 80 79 1 99% Count Percent 21% 43% Percent of Question Respondents 21% 79% Percent of Question Respondents 43.04% 56.96% Percent of Question Respondents Child Care 1 2.04% Do exit interviews Assist with employee needs Flex Time Bonuses Housing Benefits Find additional work for slow times Training 1 2.04% 2 4.08% 2 3 4 5 4.08% 6.12% 8.16% 10.20% 6 12.24% 6 12.24% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 80 Competitive wages Treating employees well 12 12 Total 54 Survey Participants: Question Respondents: 80 49 No Response Count: 31 Response Rate: 61% Figure 27: If applicable, please describe any recruitment activities or strategies you have undertaken to attract employees. Benefits Flex time Job Fairs Raised Wages Recruiting Firms Summer Works Program Training Building positive relationships Networking Reached out to Colleges Contact with KES Advertising Internet Social Media Word of mouth Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 28: Is the company experiencing recruitment problems with any employee positions or skills?: If Yes, in which category(s)? Count 24.49% 24.49% Percent of Question Respondents 1 1 1 1 1 1 1 2% 2% 2% 2% 2% 2% 2% 2 3% 2 3% 2 3% 6 10 10 12 13 64 80 64 16 80% 9% 16% 16% 19% 20% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 81 Manufacturing/Other 1 3% Marketing 1 3% 1 3% 2 3 3 3 3 3 8 32 60 80 34 0 6% 9% 9% 9% 9% 9% 24% 94% Plant Managers / Operators Healthcare Professionals Food/Beverage Service Machine Operators Professional/Other Professional/Technical Sales/Retail Agriculture/Farming Other Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 28b: Is the company experiencing recruitment problems with any employee positions or skills?: Other (specify job roles/titles) Auto parts sales persons Building materials salesperson Employment counsellor 34 79 100% Count Percent of Question Respondents 1 2.94% 1 2.94% 1 2.94% Equipment operators 1 2.94% Experienced lab technician 1 2.94% Field Survey Technicians 1 2.94% Field hand Financial Kitchen staff Livestock farmhand Lumber grading Marketing 1 1 1 1 1 1 2.94% 2.94% 2.94% 2.94% 2.94% 2.94% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 82 Nursing Office Manager Recreation 1 1 1 2.94% 2.94% 2.94% Semi-Skilled/Entry Level 1 2.94% Skilled Stylists Sorters for packing house Yarder Agriculture workers Chefs 1 1 1 2 2 2.94% 2.94% 2.94% 5.88% 5.88% Semi-Skilled 2 5.88% Skilled/Professional Entry Level Total 3 4 32 8.82% 11.76% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 80 31 1 Figure 29: Do you anticipate future recruiting difficulties i.e. 3-5 year? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 29b: Do you anticipate future recruiting difficulties i.e. 3-5 year?: If Yes, in what area(s)? Advanced Manufacturing Workers 32 34 97% Count 35 41 76 80 76 4 95% Count 1 Percent of Question Respondents 46.05% 53.95% Percent of Question Respondents 3% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 83 Electrical/Electronics 1 3% Machine Operators Marketing Professional/Technical Construction/Contractors Food/Beverage Service Sales/Retail Professional/Other Agriculture/Farming 1 1 1 2 3 3 4 5 3% 3% 3% 6% 9% 9% 11% 14% Other 33 94% Total 55 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 80 35 0 Figure 29c: Do you anticipate future recruiting difficulties i.e. 3-5 year? : Other (specify job roles/titles) Agriculture workers Asparagus pickers Auto glass technician Chokerman Cider maker Customer service Entry-level farm Equipment operator Ground crop (vegetables) work Installers Lumber graders Marketing Real Estate Salespersons Repair & Maintenance Skilled construction workers 35 76 100% Count Percent of Question Respondents 1 1 1 1 1 1 1 1 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 2.86% 1 2.86% 1 1 1 1 1 2.86% 2.86% 2.86% 2.86% 2.86% 1 2.86% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 84 Skilled partsmen 1 2.86% Sorters 1 2.86% Travel Consultant 1 2.86% Yarder Entry Level Unskilled Semi-Skilled Skilled/Professional Skilled Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 1 2 2 3 3 9 38 80 31 2 2.86% 5.71% 5.71% 8.57% 8.57% 25.71% Figure 30: Is there anything we can do to help overcome issues with employee recruitment? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 30b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, please explain Open more nursing care aid programs Recognize flooring installers as a trade Summer Works Program 33 35 94% Count 25 42 67 Percent of Question Respondents 37% 63% 80 67 13 84% Count Percent of Question Respondents 1 4.00% 1 4.00% 1 4.00% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 85 Teach vegetarian cooking 1 4.00% 1 4.00% 1 4.00% Temporary Foreign Worker Work with local college Develop a farm labour pool Subsidize wages Training Effective Advertising Total 3 12.00% 4 4 6 23 16.00% 16.00% 24.00% Survey Participants: 80 Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 25 0 Response Rate: 100% Figure 31: Skill Level of Majority of Workforce Skilled/Professional Semi-skilled Entry-level Total Figure 31b: Percent of workforce: Skilled/Professional less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: 25 67 Count 36 11 12 59 Count 13 15 22 27 77 Percent of Question Respondents 47% 14% 16% Percent of Question Respondents 16.88% 19.48% 28.57% 35.06% 80 77 3 96% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 86 Figure 31c: 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 31d: 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 32: Does the company provide a training budget in order to upgrade employee's skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32b: Does the company offer in-house training? Yes No Count 18 14 19 2 53 Percent of Question Respondents 33.96% 26.42% 35.85% 3.77% 80 53 27 66% Count 22 9 6 7 44 Percent of Question Respondents 50.00% 20.45% 13.64% 15.91% 80 44 36 55% Count 46 33 79 Percent of Question Respondents 58% 42% 80 79 1 99% Count 68 11 Percent of Question Respondents 86.08% 13.92% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 87 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32c: Does the company use Contracted Training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33: 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 34: Are there any areas of training or professional development that would be of benefit to you or your employees? Yes No Total Survey Participants: 79 80 79 1 99% Count 35 43 78 Percent of Question Respondents 44.87% 55.13% 80 78 2 98% Count 45 34 79 Percent of Question Respondents 57% 43% 80 79 1 99% Count 52 28 80 Percent of Question Respondents 65.00% 35.00% 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 88 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?: If Yes, what are they? 80 0 100% Count Percent of Question Respondents Advertising 1 2% Auto glass training Bartending Child care Conflict Resolution FARSHA (Farm & Ranch Safety & Health Association) First Aid Forklift Training Franchise Training Green energy Hair workshops Home Protection Office insurance training Horticulture training Irrigation management Professional Driver Training 1 1 1 1 2% 2% 2% 2% 1 2% 1 1 1 1 1 2% 2% 2% 2% 2% 1 2% 1 1 2% 2% 1 2% Survey specific training 1 2% Time management 1 2% Tractor safety WHMIS Word Press 1 1 1 2% 2% 2% Workforce Safety 1 2% 1 2% 2 2 4% 4% Workshops relating to the dairy industry Customer service Local Workshops Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 89 Worksafe Courses 3 6% Business Management Social media Food Safe Bookkeeping 5 5 6 7 10% 10% 12% 14% Marketing 7 14% Total 59 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 80 51 1 Figure 36: What modes of education/training work best for you? Online/ Webinar training Classroom Individual coaching Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 36: What modes of education/training work best for you?: Other Name Group training Specialty training for nurses In-house / Hands on / Workshop Total 52 80 98% Count 31 42 42 6 121 Percent of Question Respondents 40% 54% 54% 8% 80 78 2 98% Count Percent of Question Respondents 1 1.28% 1 1.28% 3 3.85% 5 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 90 Survey Participants: 80 Question Respondents: 5 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 1 Figure 37: 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: 6 78 83% Count 2 8 16 18 53 97 Count Yes No Not applicable Total 11 65 2 78 Figure 38: Please indicate which issues you believe are critical to your employees? Transportation 3% 11% 22% 25% 73% 80 73 7 91% Union status Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents Percent of Question Respondents 14.10% 83.33% 2.56% 80 78 2 98% Count 27 Percent of Question Respondents 37% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 91 Child care Housing Cost of living Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 38b: Please indicate which issues you believe are critical to your employees?: If Other, please list any other issues Camp facility for transient workers Education Growth opportunities Housing 29 42 61 15 174 40% 58% 84% 21% 80 73 7 91% Count Percent of Question Respondents 1 1.37% 1 1 1 1.37% 1.37% 1.37% Internet 1 1.37% Job awareness Networking for spouses. Seasonal work. Social and recreational opportunities 1 1 1 1.37% 1.37% 1.37% 1 1.37% Spouse transfers 1 1.37% Telecommunications Seasonal work Wages Health Care Total 1 2 2 4 19 1.37% 2.74% 2.74% 5.48% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: 80 14 1 15 73 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 92 Response Rate: In general terms, what percent of your workforce lives in the: Community (%) 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: :In general terms, what percent of your workforce lives in the: Region (%) includes entire Columbia Basin-Boundary region 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Outside of region (%) 0-24% 25-49% 50-74% 75-100% Total Survey Participants: 93% Count 2 1 3 72 78 Percent of Question Respondents 2.56% 1.28% 3.85% 92.31% 80 78 2 98% Count 9 1 1 1 12 Percent of Question Respondents 75.00% 8.33% 8.33% 8.33% 80 12 68 15% Count 5 2 1 2 10 Percent of Question Respondents 50.00% 20.00% 10.00% 20.00% 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 93 Question Respondents: No Response Count: Response Rate: 10 70 12% 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 $50 million to 20 million over $50 million Total 4 6 5 16 4 14 1 7% 11% 9% 29% 7% 25% 2% 2 4% 2 1 55 4% 2% Survey Participants: Question Respondents: No Response Count: Response Rate: 80 55 25 69% Figure 39: Annual sales at this facility (optional) Figure 40: Is the market for your product Count Stable Decreasing Increasing Total 21 9 50 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Percent of Question Respondents 26% 11% 63% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 94 Figure 41: Is the market share (compared to your competitors) of your company's products Count Stable Decreasing Increasing Total 37 7 23 67 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 67 13 84% Figure 42: What is the projected sales growth in the next year at this business? Count Percent of Question Respondents 55% 10% 34% Percent of Question Respondents Declining 0% 1 - 9% 10 - 24% 25 - 49% 50 - 99% Over 100% Total 4 21 24 13 4 4 3 73 5% 29% 33% 18% 5% 5% 4% Survey Participants: Question Respondents: No Response Count: Response Rate: 80 73 7 91% Figure 43: Historical sales trend: At this business (past five years) Count Percent of Question Respondents Declining Staying the same Increasing Not applicable 8 18 49 1 11% 24% 64% 1% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 95 Total 76 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 76 4 95% Figure 43b: Historical sales trend: At the parent company Count Declining Staying the same Increasing Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 43c:: Historical sales trend: Within the industry Percent of Question Respondents 1 1 5 9 56% 16 6% 6% 31% 80 16 64 20% Count Declining Staying the same Increasing Not applicable Total 14 14 42 2 72 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 72 8 90% Figure 43d: Historical export sales trend Count Percent of Question Respondents 19% 19% 58% 3% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 96 Declining Staying the same Increasing Not applicable Total 4 5 5 57 71 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 71 9 89% Figure 44: Percent of total sales generated by top 3 customers Count 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total 13 14 6 8 4 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 45 35 56% Figure 45: Source of Majority of Sales Local Provincial National United States International Total Count 55 4 4 0 3 66 6% 7% 7% 80% Percent of Question Respondents 29% 31% 13% 18% 9% Percent of Question Respondents 74% 5% 5% 0% 4% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 97 Figure 45b: Please identify the source of your sales by percentage: International Count 0% 1-9% 10-19% 50-59% 70-79% 100% Total 16 4 4 1 2 1 28 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 28 52 35% Figure 45c: Please identify the source of your sales by percentage: United States Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% Total 7 13 5 3 2 1 1 32 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 32 48 40% Figure 45d: Please identify the source of your sales by percentage: National 0% 1-9% Percent of Question Respondents 57.14% 14.29% 14.29% 3.57% 7.14% 3.57% Percent of Question Respondents 21.88% 40.62% 15.62% 9.38% 6.25% 3.12% 3.12% Count Percent of Question Respondents 4 11 10.26% 28.21% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 98 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 10 5 2 2 1 1 1 1 1 39 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 39 41 49% Figure 45e: Please identify the source of your sales by percentage: Provincial Count Total 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 70-79% 90-99% 100% Total 3 9 16 6 4 2 1 2 1 1 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 45 35 56% Figure 45f: Please identify the source of your sales by percentage: Local / Regional 0% 25.64% 12.82% 5.13% 5.13% 2.56% 2.56% 2.56% 2.56% 2.56% Percent of Question Respondents 6.67% 20.00% 35.56% 13.33% 8.89% 4.44% 2.22% 4.44% 2.22% 2.22% Count Percent of Question Respondents 3 4.05% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 99 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 3 3 1 3 1 5 4 6 8 9 28 74 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 74 6 92% Figure 46: International trade status Count Export Import None Not applicable Total 14 28 28 16 86 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 79 1 99% 4.05% 4.05% 1.35% 4.05% 1.35% 6.76% 5.41% 8.11% 10.81% 12.16% 37.84% Percent of Question Respondents 18% 35% 35% 20% Figure 47: Do you engage in government procurement? Count Percent of Question Respondents Yes 14 18% No Total 65 79 82% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 100 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 48: Source of Majority of Supplies 80 79 1 99% Percent of Question Respondents Count Local Provincial National United States International Total 29 14 10 3 1 57 Figure 48b: Please identify the source of your supplies by percentage: Local / Regional Count 0% 1-9% 10-19% 20-29% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 1 5 9 7 3 7 1 1 5 8 14 61 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 61 19 76% 48% 23% 16% 5% 2% Percent of Question Respondents 1.64% 8.20% 14.75% 11.48% 4.92% 11.48% 1.64% 1.64% 8.20% 13.11% 22.95% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 101 Figure 48c: Please identify the source of your supplies by percentage: Provincial Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 2 3 8 10 6 1 8 2 1 2 1 6 50 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 50 30 62% Figure 48d: Please identify the source of your supplies by percentage: National 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total Count 5 6 10 11 7 1 1 1 5 1 1 2 51 Percent of Question Respondents 4.00% 6.00% 16.00% 20.00% 12.00% 2.00% 16.00% 4.00% 2.00% 4.00% 2.00% 12.00% Percent of Question Respondents 9.80% 11.76% 19.61% 21.57% 13.73% 1.96% 1.96% 1.96% 9.80% 1.96% 1.96% 3.92% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 102 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 48e: Please identify the source of your supplies by percentage: United States 80 51 29 64% Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% Total 3 7 14 5 1 5 1 2 1 39 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 39 41 49% Figure 48f: Please identify the source of your supplies by percentage: International Count 0% 1-9% 10-19% 30-39% 50-59% 80-89% Total 19 1 3 1 2 1 27 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 27 53 34% Percent of Question Respondents 7.69% 17.95% 35.90% 12.82% 2.56% 12.82% 2.56% 5.13% 2.56% Percent of Question Respondents 70.37% 3.70% 11.11% 3.70% 7.41% 3.70% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 103 Do you supply your products or services to any company in the community or region? Count Yes No Total 51 28 79 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 79 1 99% What products or services, if any, are you purchasing from outside the area for which you would like to have a local supplier? Bags Bees Bookstore Bottles Cleaning Products Clothing racks Construction supplies Food Local produce Lumber Mining Equipment Plastics Refrigeration Truck Service Technology Support Tractor parts Training Services Art supplies Construction materials Printing services Packaging Supplies and Services Produce Percent of Question Respondents 65% 35% Count Percent of Question Respondents 1 1 1 1 1 1 1 1 1 1 1 1 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 1 2.50% 1 1 1 2 2 2 2.50% 2.50% 2.50% 5.00% 5.00% 5.00% 3 7.50% 5 12.50% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 104 Farming Supplies Total 7 37 Survey Participants: 80 Question Respondents: 40 No Response Count: Response Rate: 40 50% Figure 49: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area? Loyalty to current supplier Unaware of local venders No control head office decision Quality of available products Higher costs locally No applicable to this business Product not available here Other Total 17.50% Count Percent of Question Respondents 3 4% 3 4% 7 7 10% 10% 8 12% 12 17% 12 17% 48 70% 5 105 7% Survey Participants: Question Respondents: No Response Count: Response Rate: 80 69 11 86% Figure 49b: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area?: If Other, specify Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 105 Franchise restrictions 1 1.45% Local vendors already have avenues for their product 1 1.45% Selection (variety) 1 1.45% Unique products 1 1.45% Total 4 Survey Participants: 80 Question Respondents: 4 No Response Count: 1 Parent Question 'Other' Respondents: 5 Parent Question Respondents: 69 Response Rate: 80% Figure 50: What types of financing has your company used in the past to meet your financial capital needs? Count Percent of Question Respondents 16 21.05% 53 69.74% Internal Total 64 133 84.21% Survey Participants: Question Respondents: No Response Count: Response Rate: 78 76 2 97% Capital Financiers (money is given in exchange for shares of ownership) Lending (Pay back with predetermined interest rate) Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 106 Figure 50b: If Internal, please specify Count Personal Savings Retained Earnings Total 43 43 86 Survey Participants: Question Respondents: No Response Count: Parent Question 'Internal' Respondents: 78 61 3 Parent Question Respondents: Response Rate: Figure 51: If Lending, please specify 70.49% 70.49% 64 76 95% Count Vendor credit Private loan Credit cards Bank loan Line of credit Other Total 9 11 29 32 32 5 118 Survey Participants: Question Respondents: No Response Count: Parent Question 'Lending' Respondents: 78 53 0 Parent Question Respondents: Response Rate: Percent of Question Respondents Percent of Question Respondents 16.98% 20.75% 54.72% 60.38% 60.38% 9.43% 53 76 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 107 Figure 51b: What types of financing has your company used in the past to meet your financial capital needs?: If Other, please explain Financial institutions other than banks. Home Hardware Corporate Mortgage Grants Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 52: If Capital Financiers, please specify Friends Other businesses Small individual investors Family Other Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Capital Financiers' Respondents: Parent Question Respondents: Response Rate: Count Percent of Question Respondents 1 1.89% 1 1.89% 1 2 5 1.89% 3.77% 78 5 0 5 53 100% Count Percent of Question Respondents 1 1 6.25% 6.25% 1 6.25% 7 9 19 43.75% 56.25% 78 16 0 16 76 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 108 Figure 52b: What types of financing has your company used in the past to meet your financial capital needs?: If Other, please explain Community Future Self Employment Program Grants Home Hardware Corporate Municipal Finance Authority One investor Parent company Shareholders' group Some donations to purchase equipment. Tax payers' money Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 53: Have you experienced any barriers to accessing financial capital in the past, or that you foresee in the future, that you wish to identify? Local lenders and capital financiers not available Local sources are exhausted Insufficient earnings or collateral to interest external sources (lending or capital financing) Count Percent of Question Respondents 1 6.25% 1 6.25% 1 6.25% 1 6.25% 1 1 1 6.25% 6.25% 6.25% 1 6.25% 1 9 6.25% 78 8 1 9 16 89% Count Percent of Question Respondents 4 16.00% 4 16.00% 11 44.00% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 109 Other Total 9 28 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 25 53 32% Figure 53b: If Other, please explain Count Percent of Question Respondents Don't know big picture for parent company. 1 4.00% East Shore is viewed as a higher risk area due to economic stagnation, poor internet and local core businesses. 1 4.00% In the past process for obtaining financing much simpler and less expensive than it is now. 1 4.00% Lack of interest in loaning money. 1 4.00% Local lending institution wanted a larger down payment 1 4.00% 1 4.00% 1 7 4.00% Not understanding nonprofit sector Too Risky Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 36.00% 78 7 2 9 25 78% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 110 Figure 54: Do you expect to be in need of financial capital in the next 1 to 3 years? Count Percent of Question Respondents Yes No Total 32 41 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 73 5 94% Figure 54b: If Yes, please indicate its purpose Count Percent of Question Respondents Expanding/Improving Human Resources 2 6.25% Maintaining operational expenses 4 12.50% Expanding/Improving Land/building 21 65.62% Expanding/Improving Equipment (technology; machinery; vehicles) 25 78.12% Other Total 1 53 3.12% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 78 32 0 Parent Question Respondents: Response Rate: 43.84% 56.16% 32 73 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 111 Figure 54c: If Other, please explain Expanding/improving product line Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 55: Have you determined how you will access this financial capital? Count Percent of Question Respondents 1 3.12% 1 78 1 0 1 32 100% Count Yes Not at this time Total 17 16 33 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 33 45 42% Figure 55b: If Yes, please check all that apply Capital Financiers (money is given in exchange for shares of ownership) Lending (Pay back with predetermined interest rate) Percent of Question Respondents 51.52% 48.48% Count Percent of Question Respondents 2 11.76% 8 47.06% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 112 Internal Total 13 23 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 78 17 0 Parent Question Respondents: Response Rate: Figure 55c: If Internal, please specify 17 33 100% Count Personal Savings Retained Earnings Total 7 10 17 Survey Participants: Question Respondents: No Response Count: Parent Question 'Internal' Respondents: Parent Question Respondents: Response Rate: 78 13 0 Figure 55d: If Lending, please specify 76.47% Percent of Question Respondents 53.85% 76.92% 13 17 100% Count Credit cards Private loan Line of credit Bank loan Other Total 1 1 3 5 2 12 Survey Participants: Question Respondents: 78 8 Percent of Question Respondents 12.50% 12.50% 37.50% 62.50% 25.00% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 113 No Response Count: Parent Question 'Lending' Respondents: Parent Question Respondents: Response Rate: Figure 55e: What types of financing has your company used in the past to meet your financial capital needs?: If Other, please explain BC Housing, CBT Impact Fund Financial institution Total 0 8 17 100% Count Percent of Question Respondents 1 50.00% 1 2 50.00% Survey Participants: Question Respondents: No Response Count: Response Rate: 78 2 76 3% Figure 55f: If Capital Financiers, please specify Count Percent of Question Respondents Family, Small individual investors, Other businesses, Other 1 50.00% Other Total 1 2 50.00% Survey Participants: Question Respondents: No Response Count: Parent Question ' Capital Financiers' Respondents: 78 2 0 Parent Question Respondents: Response Rate: 2 17 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 114 Figure 55g: What types of financing has your company used in the past to meet your financial capital needs?: If Other, please explain Foundations (E. Kootenay and Creston Foundation), Donations Count Percent of Question Respondents 1 50.00% One financier Total 1 2 50.00% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 78 2 0 Figure 56: If you were to access financial capital, how much capital would you require? 2 2 100% Count $50K to $100K $25K to $50K $25K or less $100K or more Total 6 7 17 23 53 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 53 25 68% Figure 57: If a mechanism existed to enable your community to invest directly into local businesses, would you consider accessing financial capital from it? Count Percent of Question Respondents 11.32% 13.21% 32.08% 43.40% Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 115 Yes, I would offer equity in my business I am not sure No, I would not use this mechanism Yes, I would access a loan Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 58: What return on investment could you offer?: Social (how do you help people) 4 5.19% 10 12.99% 30 38.96% 33 42.86% 77 78 77 1 99% Count Percent of Question Respondents 1 1 1 1 1 1 3.70% 3.70% 3.70% 3.70% 3.70% 3.70% A place to live Advertising Assist with child learning Boost morale Donate to food bank Employ disabled Enhance learning facilities Grow food Mentor organic growers Organic produce Raise family Share resources. Start a business Training Employment Total 1 3.70% 1 1 1 1 1 1 4 15 32 3.70% 3.70% 3.70% 3.70% 3.70% 3.70% 14.81% 55.56% Survey Participants: Question Respondents: No Response Count: Response Rate: 78 27 51 35% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 116 Figure 59: What return on investment could you offer?: Financial (% return) Count 15% 2% 3% 6% 8% 4% 5% Total 1 1 1 1 1 2 8 15 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 17 61 22% Figure 60: What return on investment could you offer?: Environmental (how you help the environment) Count - environmentally friendly operating practices golf course.\nenvironmental stewardship.\n- note re "Financial (% return)" section above: would offer% but exact% not indicated. Gray water recovery Grow local produce Improve soil health Reduce herbicide usage Reduce pesticide usage Reduced energy usage Repurpose product line Sustainable food production Waste reduction Green energy 1 Percent of Question Respondents 5.88% 5.88% 5.88% 5.88% 5.88% 11.76% 47.06% Percent of Question Respondents 3.85% 1 1 1 1 1 1 1 3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 3.85% 1 3.85% 1 2 3.85% 7.69% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 117 Maintain land Recycling Water conservation Increase agriculture Energy efficiency Follow environmental practices Total 2 2 2 3 6 7.69% 7.69% 7.69% 11.54% 23.08% 7 26.92% 34 Survey Participants: Question Respondents: No Response Count: Response Rate: 78 26 52 33% FACILITIES AND EQUIPMENT Figure 61: 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 13 33 7 9 11 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 62:Condition of facility Excellent Good Fair Total Percent of Question Respondents 18% 45% 10% 12% 15% 73 7 91% Count 24 43 13 80 Percent of Question Respondents 30% 54% 16% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 118 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 63: Condition of equipment 80 80 0 100% Count Excellent Good Fair Poor Total 26 41 12 1 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 64: Status of facility 0 100% Count 17 62 79 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 <1 Year 33% 51% 15% 1% 80 Leased Owned Total Figure 65: Status of facility: If Leased, what is the length of term remaining Percent of Question Respondents Percent of Question Respondents 22% 78% 79 1 99% Count Percent of Question Respondents 1 13% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 119 1-2 Years 3-5 Years >5 Years Total 3 1 3 8 Survey Participants: Question Respondents: 80 No Response Count: 9 Parent Question 'Leased' Respondents: Parent Question Respondents: Figure 65b: Are you planning on renewing current lease? 8 17 79 Count Yes No Total 16 1 17 Survey Participants: Question Respondents: 80 No Response Count: 0 Parent Question 'Leased' Respondents: Parent Question Respondents: Percent of Question Respondents 94.12% 5.88% 17 17 79 Response Rate: 100% Figure 66: Do you have a preference of lease vs own? Count Lease Own Total 38% 13% 38% 12 65 77 Percent of Question Respondents 16% 84% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 120 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 67: Historical investment trends: Over past 18 months in the facility 80 77 3 96% Count Declining Staying the same Increasing Total 6 35 33 74 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 68: Is there room for expansion at this site? 6 92% Count 55 21 4 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Yes No 8% 47% 45% 74 Yes No Maybe Total Figure 69: Does the company plan to expand in the next three years? Percent of Question Respondents Percent of Question Respondents 69% 26% 5% 80 0 100% Count Percent of Question Respondents 34 46 43% 58% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 121 Total 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 69b: Are there any local expansion plans in the next 12 18 months? 80 0 100% Count Yes No Total 33 47 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 70: Does the company plan to expand in the next three years?: Is your current site adequate for the proposed expansion? Yes No Total 41.25% 58.75% 80 0 100% Count 24 9 33 Survey Participants: Question Respondents: 80 No Response Count: 1 Parent Question 'Yes' Respondents: Parent Question Respondents: Percent of Question Respondents Percent of Question Respondents 73% 27% 33 34 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 122 Figure 71: Does the company plan to expand in the next three years?: Will it be in this community? Yes No Total Count 31 2 33 Survey Participants: Question Respondents: 80 No Response Count: 1 Parent Question 'Yes' Respondents: Parent Question Respondents: Figure 72: 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 Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents 94% 6% 33 34 80 Count 3 8 7 5 3 26 Percent of Question Respondents 12% 31% 27% 19% 12% 80 26 8 34 80 76% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 123 Figure 73: 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 74: Does the company plan to expand in the next three years?: Approximate percentage real estate 0% Under 50% 50 to 99% 100% Total Percent of Count Question Respondents 14 8 6 28 80 28 6 34 80 82% Count 3 3 19 1 26 Survey Participants: Question Respondents: 80 No Response Count: 8 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 50% 29% 21% Percent of Question Respondents 12% 12% 73% 4% 26 34 80 76% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 124 Figure 75: 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 Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 76: Have there been any recent facility upgrades? Count 5 13 2 20 20 14 34 80 59% Count 56 24 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 3 6 12 25% 65% 10% 80 Yes No Total Figure 76b: Have there been any recent facility upgrades? If Yes, when?: Month scale Percent of Question Respondents Percent of Question Respondents 70% 30% 80 0 100% Count Percent of Question Respondents 11 11 11 20.37% 20.37% 20.37% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 125 18 24 36 Total 7 6 8 54 Survey Participants: Question Respondents: 80 No Response Count: 2 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 77: Planning any upgrades to the facility? 54 56 80 96% Count Yes No Total 46 32 78 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 77b: Planning any upgrades to the facility? If Yes, when?: Month scale 3 6 12 18 24 36 Total 12.96% 11.11% 14.81% Percent of Question Respondents 59% 41% 78 2 98% Count Percent of Question Respondents 8 17.78% 11 24.44% 14 31.11% 4 8.89% 7 15.56% 1 2.22% 45 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 126 Survey Participants: Question Respondents: 80 No Response Count: 1 Parent Question 'Yes' Respondents: Response Rate: Figure 78: If No, are there any barriers to upgrading you wish to identify? 45 46 98% Count Percent of Question Respondents 1 13% 1 13% Space 3 38% Financing Total 4 9 50% Survey Participants: 80 Question Respondents: 8 No Response Count: 24 Low return on investment Marketing Parent Question 'No' Respondents: Parent Question Respondents: Response Rate: Figure 79: What, if any, are the major constraints on your expansion? (Please check all that are applicable) Broadband access Energy reliability Warehousing Lack of suitable premises Transport/freight 32 78 25% Count Percent of Question Respondents 3 3 3 9% 9% 9% 5 15% 5 15% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 127 Energy costs Local regulations e.g. zoning Other (please specify): Lack of skilled staff Identifying and accessing new markets Finance 7 21% 9 27% 9 27% 10 30% 12 36% 26 79% Total 92 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: 80 Response Rate: Figure 79b: What, if any, are the major constraints on your expansion? (Please check all that are applicable): Other (please specify) Competition 33 1 34 80 97% Count Percent of Question Respondents 1 11.11% 1 11.11% 1 11.11% 1 11.11% Weather 1 11.11% Skilled Workforce Time Constraints Total 2 2 9 22.22% 22.22% Survey Participants: Question Respondents: 80 Funding Government restrictions Refrigeration 9 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 128 No Response Count: Parent Question 'Other (please specify):' Respondents: Parent Question Respondents: Response Rate: Figure 80: Have you approached anybody in local/provincial/federal government or business development organizations to discuss your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 80b: If Yes, which have you approached? BC Hydro 0 9 33 100% Count 11 23 34 Percent of Question Respondents 32.35% 67.65% 80 34 46 42% Count Percent of Question Respondents 1 10% 1 10% 2 20% 2 2 20% 20% 7 70% Local Economic Development Office Chamber of Commerce Community Futures Local Council Other (please specify): Total 15 Survey Participants: 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 129 Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 80c: If Yes, which have you approached?: Other (please specify) 10 1 11 34 91% Count Percent of Question Respondents BBA 1 10.00% BC Housing BC Non-profit Housing Banker CBT and other Foundations Federal Government Federal/Provincial Replant Program 1 10.00% 1 10.00% 1 10.00% 1 10.00% 1 10.00% 1 10.00% 1 10.00% 1 10.00% 2 2 20.00% 20.00% Regional Directors (MP & MLA) Regional District (Area B) CBT Regional District Total 13 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 80 7 0 7 10 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 130 Figure 81: Have you factored improvements in energy efficiency in your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 82: Are you aware of BC Hydro Power Smart resources that are available to you? Count 35 20 55 Percent of Question Respondents 64% 36% 80 55 25 69% Count Yes No Total 57 23 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Percent of Question Respondents 71% 29% 80 0 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 131 GOVERNMENT SERVICES Figure 83: Government Services Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Access to Port Facilities 70 89% 6 8% 2 3% 1 1% 0 0% 79 Access to US Border 2 3% 0 0% 1 1% 30 38% 47 59% 80 Access to airport facilities 12 15% 19 24% 23 29% 21 27% 4 5% 79 Access to highway/ roads 0 0% 1 1% 7 9% 50 63% 22 28% 80 Access to markets 1 1% 8 10% 23 29% 35 44% 13 16% 80 Access to suppliers 1 1% 15 19% 26 33% 29 36% 9 11% 80 Availability of appropriately zoned land 27 36% 10 13% 11 15% 23 31% 4 5% 75 Availability of buildings for lease or purchase 46 59% 10 13% 6 8% 14 18% 2 3% 78 Availability of rail transport 68 88% 8 10% 1 1% 0 0% 0 0% 77 Availability of road transport services 0 0% 15 19% 20 25% 34 43% 11 14% 80 Availability of warehousing 57 74% 5 6% 2 3% 12 16% 1 1% 77 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 132 Development approval process 23 29% 4 5% 10 13% 33 42% 8 10% 78 Disposal of waste material 12 15% 7 9% 12 15% 40 50% 9 11% 80 Inspections /licensing 6 8% 6 8% 9 11% 49 62% 9 11% 79 Recycling 0 0% 6 8% 13 16% 40 50% 21 26% 80 Telecommunications (internet, cell) 0 0% 6 8% 15 19% 44 55% 15 19% 80 Water and sewerage supply 3 4% 5 6% 14 18% 50 63% 7 9% 79 Survey Participants: 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 133 Figure 83b: Please rate the following: Other (please specify) Please rate the following: Other (please specify) Count Percent of Question Respondents BC Ambulance Service Excellent 1 5.00% Banking options Good 1 5.00% CFIA Poor 1 5.00% Conferences & professional development opportunities Poor 1 5.00% Farm Extension Office Poor 1 5.00% Ferry service - Kootenay Lake Good 1 5.00% Gov't Agriculture Extension Office Poor 1 5.00% KES Excellent 1 5.00% Liquor inspections & licensing Poor 1 5.00% Local Post Office Fair 1 5.00% Medical Fair 2 10.00% Port-facilities on BC's west coast Poor 1 5.00% Postal Service Excellent 1 5.00% Provincial and Federal Co-Op Development Services Poor 1 5.00% Recycling of farm plastics Poor 1 5.00% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 134 Regional director for the area Excellent 1 5.00% Traffic routes Poor 1 5.00% YRB Poor 2 10.00% 20 100.00% Total Survey Participants: Question Respondents: No Response Count: Response Rate: 84: Do you have any suggestions on how to improve any of the services and infrastructure listed above? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 84b: Do you have any suggestions on how to improve any of the services and infrastructure listed above?: If Yes, how? Create a cooperative trucking company Develop an industrial park Establish a farm recycling facility 80 20 60 25% Percent of Question Respondents Count 44 34 78 56.41% 43.59% 80 78 2 98% Percent of Question Respondents Count 1 2.27% 1 1 2.27% 2.27% 1 2.27% 1 2.27% 1 2.27% Increase Population 1 2.27% Increased telecommunications competition 1 2.27% Fire station Improve food processing infrastructure Increase Border Crossing Services Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 135 Remove toll on truckers Shipping services Central delivery location Airport service Establish a composting facility Improve Rail Services Move non-farmable land out of the ALR 1 2.27% 1 2.27% 2 2 2 4.55% 4.55% 4.55% 2 4.55% Build a Farm Extension Office 3 6.82% Increase CFIA services Increase Water Services 3 3 6.82% 6.82% More Recycling Services 3 6.82% Shipping services 3 6.82% 4 9.09% 5 11.36% Expand high speed internet services Improve Highway services / infrastructure Total 42 Survey Participants: 80 Question Respondents: 44 No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 0 44 78 100% Figure 85: Which airport services do you use? Bonners Ferry Edmonton Kelowna Vancouver Creston Trail Calgary Castlegar Count 1 1 1 4 5 5 10 11 Percent of Question Respondents 1% 1% 1% 6% 7% 7% 15% 16% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 136 Spokane Cranbrook Total 19 55 112 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 67 13 84% Figure 86: Which airport services do you use?: What services would you like to see at the local airport? (where appropriate) Air shuttle to Vancouver Airport service to Cranbrook Coffee Shop Improve traffic control Medivac Pacific Coastal Air flights Cranbrook Improvements to navigational aids More Airlines Freight shipping Local flights to Calgary and Vancouver Calgary Scheduled flights Total Survey Participants: Question Respondents: No Response Count: Response Rate: 28% 82% Percent of Question Respondents Count 1 1 1 1 1 1 2 2 2 3 2.94% 2.94% 2.94% 2.94% 2.94% 2.94% 5.88% 5.88% 5.88% 8.82% 3 8.82% 4 11.76% 17 50.00% 39 80 34 46 42% BUSINESS CLIMATE Figure 87: Please rate the local business climate Excellent Good Fair Percent of Question Respondents Count 1 29 43 1% 37% 55% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 137 Poor Total 5 78 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 78 2 98% 6% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 138 Figure 88: Business climate ratings Chamber of Commerce Colleges/Universities Community Futures Cultural/Recreational Amenities No Opinion 6 8 23 % No Opinion 8% 10% 29% 2 Economic Development Housing K-12 education Local Government Local Tax Structure Technical Training Tourism services Workforce Availability Workforce Quality Workforce Stability Survey Participants: Poor % Poor 7 11 1 9% 14% 1% 3% 5 7 9% 10 13 4 7 17 9 1 1 5 13% 16% 5% 9% 22% 11% 1% 1% 6% Fair % Fair Good % Good Excellent % Excellent Respondents 12 23 8 15% 29% 10% 50 36 42 63% 45% 53% 5 2 5 6% 3% 6% 80 80 79 6% 12 15% 44 55% 17 21% 80 15 19% 30 38% 27 34% 1 1% 80 9 5 6 12 27 3 12 6 7 11% 6% 8% 15% 34% 4% 15% 8% 9% 22 13 21 23 18 19 35 25 35 28% 16% 26% 29% 23% 24% 44% 31% 44% 38 42 48 35 17 44 31 43 29 48% 53% 60% 44% 22% 55% 39% 54% 37% 0 7 1 3 0 5 1 5 3 0% 9% 1% 4% 0% 6% 1% 6% 4% 79 80 80 80 79 80 80 80 79 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 139 Figure 89: 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 39 18 11 9 77 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 77 3 96% Figure 89b: Please compare the local business climate today versus 5 years ago: If worse today, why? Exchange rate Government cutbacks Increasing Competition Increasing cost of water Loss of large farm feed store Out of town shopping 51% 23% 14% 12% Percent of Question Respondents Count 1 1 1 9.09% 9.09% 9.09% 1 9.09% 1 9.09% 1 9.09% Reduction in tourism 1 9.09% Declining economy Total 4 11 36.36% Survey Participants: Question Respondents: No Response Count: Parent Question 'Worse today' Respondents: Parent Question Respondents: Response Rate: 80 11 0 11 77 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 140 Figure 90: 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 91: What are the community's strengths as a place to do business? Percent of Question Respondents Count 47 19 4 8 78 60% 24% 5% 10% 80 78 2 98% Percent of Question Respondents Count Diverse economy Good restaurants Great pride Low crime Networking 1 1 1 1 1 1% 1% 1% 1% 1% Diversity of products 2 3% Loyal Customers Recreational opportunities Lifestyle Tourism Agriculture 2 3% 2 3% 3 3 4 4% 4% 5% Proximity to US 5 7% Workforce Climate Location 5 8 11 7% 11% 14% Supportive community 35 46% Total 85 Survey Participants: Question Respondents: 80 76 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 141 No Response Count: Response Rate: 4 95% Figure 92: What are the community's weaknesses as a place to do business? Count Percent of Question Respondents Affordable housing Agriculture market saturation Customer service 1 1 1 1% 1% 1% Decline in tourism 1 1% High commercial rent 1 1% Lack of growth 1 1% Lack of water Laid back attitude Low average income Poor internet service 1 1 1 1 1% 1% 1% 1% Skilled labour 1 1% Small market Tax structure Too dependent on tourism Training 1 1 1 1 1% 1% 1% 1% Vacant commercial buildings 1 1% 2 3% 2 3% Poor customer service 2 3% Aging population Transportation costs Underground economy Lack of suppliers Resistance to change Low population 3 3 3 4 4 13 4% 4% 4% 5% 5% 17% Isolated location 15 19% Proximity to US Total 15 82 19% Inaccessible government services Lack of amenities Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 142 Survey Participants: 80 Question Respondents: 78 No Response Count: Response Rate: 2 98% Figure 93: Are there any barriers to growth in this community? Percent of Question Respondents Count Yes No Total 65 15 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 93b: Are there any barriers to growth in this community? : If Yes, what are they? 81.25% 18.75% Percent of Question Respondents Count Affordable housing Internet access 1 1 2% 2% Lack of jobs 1 2% Lack water 1 2% Limited services 1 2% Low income levels 1 2% Tax structure 1 2% Transportation 1 2% Economy Lack of planning Small market 2 2 2 3% 3% 3% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 143 ALR Restrictions Access to markets Aging population Skilled labour Economic seasonality Land availability 3 3 3 3 4 4 5% 5% 5% 5% 6% 6% Resistance to change 6 9% Isolated location 11 17% Low population 13 20% Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 64 80 65 0 65 80 100% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 144 Not Applicable % Not Applicable Unable to assist Basin Business Advisors Chamber of Commerce College Industry Liaison Officer 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 Scientific Research and Experimental Development Tax Incentive Program 48 14 71% 18% 1 2 % Unable to assist 1% 3% 64 91% 0 29 40% 18 Survey Participants: 80 Figure 94: Level of service from business support providers Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respon -dents 1 4 1% 5% 4 13 6% 17% 8 35 12% 46% 6 8 9% 11% 68 76 0% 1 1% 1 1% 3 4% 1 1% 70 3 4% 1 1% 6 8% 24 33% 10 14% 73 24% 1 1% 1 1% 9 12% 41 55% 5 7% 75 50 72% 0 0% 2 3% 4 6% 10 14% 3 4% 69 60 87% 0 0% 2 3% 3 4% 4 6% 0 0% 69 55 89% 1 2% 1 2% 2 3% 3 5% 0 0% 62 63 91% 0 0% 0 0% 2 3% 4 6% 0 0% 69 65 97% 0 0% 0 0% 1 1% 1 1% 0 0% 67 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 145 Figure 95: Are there suppliers you think could locate in this region? Percent of Question Respondents Count Yes No Total 23 56 79 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 79 1 99% Figure 95b: Are there suppliers you think could locate in this region?: If Yes, please list Distribution center Greenhouse Local food hub Manufacturers 29.11% 70.89% Percent of Question Respondents Count 1 1 1 1 6% 6% 6% 6% Technology companies 1 6% Packaging materials Agricultural suppliers Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 2 8 15 80 16 7 13% 50% Figure 96:Tell us which business, sector, or industry to attract that would strategically benefit you or your industry Art gallery 23 79 70% Percent of Question Respondents Count 1 2% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 146 Automotive 1 2% Beef and dairy industry 1 2% Childcare services 1 2% Community kitchen 1 2% Large greenhouse 1 2% Micro brewery 1 2% Organic farmers 1 2% Retail Stores 1 2% Technology businesses 2 3% Food Distributors 3 5% Forestry 3 5% Senior Services 3 5% Construction 4 6% Health and Wellness 4 6% Agriculture value-added industries 15 24% Tourism 19 31% Total 62 Survey Participants: 80 Question Respondents: 62 No Response Count: 18 Response Rate: 78% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 147 Not applicable % Not applicable Not important at all or not very important 31 39% 22 28% 27 34% 80 6 8% 22 28% 50 64% 78 Add or change in business, products or services 13 16% 5 6% 62 78% 80 Affordable shipping/freight 3 4% 11 14% 66 83% 80 Availability of telecommunications infrastructure and services 0 0% 4 5% 76 95% 80 1 1% 8 10% 70 89% 79 1 1% 6 8% 73 91% 80 Expansion of workforce employees 9 11% 21 27% 49 62% 79 Improvement business management 1 1% 2 3% 76 96% 79 Improvement of customer services 8 10% 7 9% 65 81% 80 Improving worker productivity 6 8% 10 13% 64 80% 80 Figure 97: Business competitiveness factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar % Not important at all or not very important Somewhat important, very important % Somewhat important, very important Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 148 New market development locally 6 8% 11 14% 62 78% 79 New market development outside of region 10 13% 14 18% 54 69% 78 New product research and development 7 9% 8 10% 64 81% 79 Reliable air transportation 12 15% 44 55% 24 30% 80 Strategic alliances (joining with other businesses to provide products/services) 8 10% 17 21% 55 69% 80 4 6 5% 8% 8 14 10% 18% 68 60 85% 75% 80 80 2 3% 7 9% 70 89% 79 Workplace health and safety 0 0% 5 6% 73 94% 78 Survey Participants: 80 Water/sewer availability Water/sewer costs Workforce skill development Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 149 Figure 98: Performance of key productivity drivers Innovation & the use of technology Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent 1 1% 7 10% 26 36% 29 40% 9 13% 72 Investing in people and skills 0 0% 4 5% 18 24% 37 50% 15 20% 74 Leadership and management capacity 1 1% 3 4% 14 19% 42 57% 14 19% 74 Measuring impact of productivity efforts/ investments 4 7% 7 12% 20 33% 21 35% 8 13% 60 Networking and collaboration with other businesses 3 4% 6 8% 16 21% 40 52% 12 16% 77 Organizing work (structures & processes) 1 1% 3 4% 15 22% 39 57% 10 15% 68 Productive workplace culture 1 1% 6 8% 13 17% 44 59% 11 15% 75 Survey Participants: 80 Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 150 % Respondents Excellent Figure 99: 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) Government Education Technology-based businesses Manufacturing Construction Percent of Question Respondents Count 2 3 3% 4% 6 8% 8 10 10% 13% 16 20% 16 20% 16 20% 18 23% 18 23% 21 26% 21 26% Agriculture 47 59% Tourism Other Total 53 22 277 66% 28% Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Arts Green or environmental businesses culture and creative businesses Forestry Health & wellness Other niche service businesses (e.g. services to seniors) Relocation of people from urban centres Figure 99b: Please indicate which economic drivers have the greatest potential for growth in the Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 151 region over the next 5 to 10 years. (please pick top 3): If Other please specify Food Total 1 1 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 80 1 21 Figure 100: Is your business impacted by its proximity to the Alberta border? 22 80 5% Percent of Question Respondents Count Yes No Total 44 36 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 80 0 100% Figure 100b: Is your business impacted by its proximity to the Alberta border?: If Yes, please explain Negative - Loss of sales to Alberta 1.25% 55.00% 45.00% Percent of Question Respondents Count 1 2% Positive - Alberta suppliers 1 2% Positive - Workforce migration from Alberta 1 2% Negative - Alberta has lower taxes 3 7% Negative - Workforce migration to Alberta 4 9% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 152 Positive - Alberta tourists Positive - Alberta customers Total 11 25% 23 52% 44 Survey Participants: Question Respondents: 80 44 No Response Count: 0 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 44 80 100% ASSESSMENT AND PLANS Figure 101: Rate the following: Facility's overall health Count Excellent Good Fair Poor Total 13 59 7 1 80 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 102: Rate the following: Overall health of the parent company Excellent Good Poor Percent of Question Respondents 16% 74% 9% 1% 80 0 100% Count Percent of Question Respondents 5 7 1 26% 37% 5% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 153 Not applicable Total 6 19 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Figure 103: Rate the following: Local management's attitude toward the community 19 61 24% Count Excellent Good Fair Poor Total 31 46 1 1 79 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 79 1 99% Figure 104: Rate the following: Parent company's attitude towards the community 32% Count Excellent Good Not applicable Total 6 7 13 26 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Percent of Question Respondents 39% 58% 1% 1% Percent of Question Respondents 23% 27% 50% 26 54 32% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 154 Figure 105: Rate the risk: Facility closing in the next 1 - 3 years High Moderate Low Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 106: Rate the risk: Facility downsizing in the next 1 - 3 years Count 3 8 69 80 80 Percent of Question Respondents 4% 10% 86% 80 0 100% Count High Moderate Low Total 2 7 69 78 Survey Participants: Question Respondents: No Response Count: Response Rate: 80 Percent of Question Respondents 3% 9% 88% 78 2 98% Columbia Basin Business Retention and Expansion Project: Report on Creston & District Businesses 155