COLUMBIA BASIN BOUNDARY BUSINESS
RETENTION AND EXPANSION PROJECT
R EPORT ON B OUNDARY R EGION B USINESSES
M ARCH 2013

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

EXECUTIVE SUMMARY
This report describes findings from a 110-question Business Retention and Expansion (BRE) survey
conducted at 58 businesses in the Boundary region in 2012. BRE is an action-oriented and
community-based approach to business and economic development. It promotes job growth by
helping communities to learn about concerns of, as well as opportunities for, local businesses and
to set priorities for projects to address those needs.

KEY RESEARCH FINDINGS
Select survey results are summarized below.
Survey Module
Company Information

Local Workforce

Sales

Facilities and Equipment

Government Services

Business Climate

Assessment and Plans
Issues of Regional
Interest

Finding
The highest number of respondents businesses are classified as ‘Retail
and Wholesale Trade’ under the North American Industry Classification
system
41% of companies have been in business for more than 20 years
Respondents reported a total of 914 employees, 78% of whom are fulltime
40% of businesses expect the size of their full-time workforce to
increase over the next 3 years and 4% expect it to decrease
Skilled trades and retail/hospitality were most commonly listed as key
training areas
Respondents reported a total of over $77 million in annual sales;
however, the highest number of businesses (30%) indicated that their
sales revenue is less than $100,000 per year
31% of businesses expect that their sales will grow by between 10 and
24% over the next year
78% of businesses make the majority of their sales to local customers
70% of businesses own the facility in which they operate
46% of businesses plan to expand within 3 years with a total estimated
expansion budget of over $37 million
Government services that received the lowest ratings include access to
airport facilities and access to suppliers
Businesses indicated that approvals/permits and telecommunications
are the government services most in need of improvement
Business climate factors that received the lowest ratings include the
provincial tax structure and the overall business climate
Businesses most commonly listed the region’s small town culture/sense
of community as its greatest strength
71% of businesses rated the overall health of their company as good
88% of businesses are at low risk of closing or downsizing
The business competitiveness factors that are most important to
respondents include energy costs, workforce skill development and
improvement of customer services
86% of businesses said that cost of living is a critical issue for their staff

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

NEXT STEPS AND POTENTIAL ACTIONS
The results of this survey can be used by economic development organizations in the Boundary
Region to inform short- and long-term business retention and expansion action planning. Many
BRE programs ensure that follow-up actions occur as soon as possible following completion of the
survey stage. This approach builds credibility, a sense of success and momentum to carry out longterm actions.
Research findings suggest that the following action areas have the greatest potential to improve
the Boundary business climate:
Business expansion: Businesses are planning significant investment in expansion over the near
term. Actions on this theme could involve assisting with site selection, connecting businesses to
sources of financing, facilitating access to expansion support programs or liaising with
governments to ensure approval processes meet the needs of local businesses.
Supply sourcing: Businesses are selling primarily to local customers, yet acquiring supplies
primarily from outside the region. Additional research on this theme could help determine if there
are opportunities to address barriers that prevent businesses from buying locally.
Training opportunities: Respondents acknowledged the importance of skilled staff to their
business and identified trades and retail/hospitality as key professional development areas. Given
the limited time and funding resources available to the types of small businesses that characterize
the Boundary economy, any actions on this theme must consider business schedules and training
budgets.
Employee and customer recruitment: The small and aging Boundary population was often
discussed as an inhibitor of economic growth. Further, many businesses indicated that they have
experienced challenges recruiting new employees, especially maintenance workers and
hospitality/service personnel. Actions on this theme could involve assisting businesses and
communities with coordinated recruitment initiatives targeted at other regions.
Succession and business planning: Engagement with formal business and succession planning is
low in the region and, given the aging workforce, could be important to the future of the Boundary
economy. Actions on this theme could involve offering basic courses or more targeted one-on-one
support to businesses. Any opportunities should be aggressively advertised to ensure uptake.
Government services: Approvals, regulations and taxes administered by various levels of
government were often cited by respondents as factors that inhibit business activity in the region.
Additional research on this theme could help further inform the exact nature of businesses’
perceptions regarding the regulatory barriers to their growth.
Wages: Data suggest that wages at many Boundary businesses are somewhat low. Raising wages
could help improve recruitment of workers and retention of youth in the community. A potential
action on this theme involves facilitating access to wage subsidy programs targeted at small
businesses.
Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

CONTENTS
PROJECT OVERVIEW .................................................................................................................. 1
THE BRE CONCEPT ........................................................................................................................ 1
PROJECT OBJECTIVES...................................................................................................................... 1
RESEARCH CONSIDERATIONS .................................................................................................... 1
THE BRE SURVEY .......................................................................................................................... 1
THE DATA SET .............................................................................................................................. 2
DATA COLLECTION......................................................................................................................... 2
DATA INPUT, ANALYSIS AND REPORTING ............................................................................................ 2
RESEARCH FINDINGS ................................................................................................................. 2
COMPANY INFORMATION................................................................................................................ 2
LOCAL WORKFORCE ....................................................................................................................... 8
SALES ....................................................................................................................................... 16
FACILITIES AND EQUIPMENT ........................................................................................................... 21
GOVERNMENT SERVICES ............................................................................................................... 26
BUSINESS CLIMATE ...................................................................................................................... 28
ASSESSMENT AND PLANS .............................................................................................................. 31
ISSUES OF REGIONAL INTEREST ....................................................................................................... 34
RECOMMENDATIONS .............................................................................................................. 36
NEXT STEPS ............................................................................................................................... 36
POTENTIAL ACTION AREAS ............................................................................................................ 37
APPENDIX A: THE BRE SURVEY ................................................................................................ 40
APPENDIX B: DATA TABLES...................................................................................................... 50
COMPANY INFORMATION.............................................................................................................. 50
LOCAL WORKFORCE ..................................................................................................................... 54

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

SALES ....................................................................................................................................... 62
FACILITIES AND EQUIPMENT ........................................................................................................... 67
GOVERNMENT SERVICES ............................................................................................................... 71
BUSINESS CLIMATE FACTORS.......................................................................................................... 73
ASSESSMENT AND PLANS .............................................................................................................. 76
ISSUES OF REGIONAL INTEREST ....................................................................................................... 78

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

LIST OF FIGURES
Figure 1: NAICS code category ............................................................................................................ 3
Figure 2: Function of facility ................................................................................................................ 3
Figure 3: Location of competitors ....................................................................................................... 3
Figure 4: Success factors ..................................................................................................................... 4
Figure 5: Key words in respondents' discussions of the factors that make their company successful
............................................................................................................................................................. 4
Figure 6: Other similar locations ......................................................................................................... 5
Figure 7: Life cycle stage...................................................................................................................... 5
Figure 8: Length of time in business .................................................................................................... 5
Figure 9: Type of company .................................................................................................................. 6
Figure 10: Location of headquarters ................................................................................................... 6
Figure 11: Ownership and management changes ............................................................................... 6
Figure 12: Anticipated timeline for ownership change ....................................................................... 7
Figure 13: Anticipated exit strategy .................................................................................................... 7
Figure 14: Existence of a formal succession plan ................................................................................ 7
Figure 15: Existence of a current business plan .................................................................................. 8
Figure 16: Total number of employees ............................................................................................... 8
Figure 17: Nature of employment ....................................................................................................... 8
Figure 18: Employment trend over last 10 years ................................................................................ 9
Figure 19: Full-time employment trend over last 3 years ................................................................... 9
Figure 20: Full-time employment trend over next 3 years ................................................................. 9
Figure 21: Age of majority of essential employees ........................................................................... 10
Figure 22: Wage in relation to other local businesses ...................................................................... 10
Figure 23: Trend in unfilled positions ................................................................................................ 11
Figure 24: Location of workforce recruitment .................................................................................. 11
Figure 25: Recruitment and retention challenges ............................................................................. 11
Figure 26: Key words in respondents' discussions of recruitment activities .................................... 12
Figure 27: Key words in respondents' discussions of retention activities......................................... 12
Figure 28: Current recruitment areas................................................................................................ 13
Figure 29: Future recruitment areas ................................................................................................. 14
Figure 30: Skill level of majority of workforce ................................................................................... 14
Figure 31: Training or professional development needs................................................................... 15
Figure 32: Preferred modes of training ............................................................................................. 15
Figure 33: Usual training locations. ................................................................................................... 16
Figure 34: Union status...................................................................................................................... 16
Figure 35: Annual sales ...................................................................................................................... 16
Figure 36: Status of market for product or service ........................................................................... 17
Figure 37: Status of market share ..................................................................................................... 17
Figure 38: Projected sales growth over next year ............................................................................. 17
Figure 39: Historic sales trend at facility ........................................................................................... 18
Figure 40: Historic sales trend at parent company ........................................................................... 18
Figure 41: Historic sales trend in industry ......................................................................................... 18
Figure 42: Historic export sales trend ............................................................................................... 19
Figure 43: Component of sales generated by top 3 customers ........................................................ 19
Figure 44: Geographic source of majority of sales ............................................................................ 19
Figure 45: International trade status................................................................................................. 20
Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

Figure 46: Engagement with government procurement processes .................................................. 20
Figure 47: Geographic source of majority of supplies ....................................................................... 20
Figure 48: Size of facility .................................................................................................................... 21
Figure 49: Condition of facility .......................................................................................................... 21
Figure 50: Condition of equipment ................................................................................................... 21
Figure 51: Number of shifts ............................................................................................................... 22
Figure 52: Ownership status of facility .............................................................................................. 22
Figure 53: Length of time remaining on lease ................................................................................... 22
Figure 54: Investment in facility (past 18 months) ............................................................................ 23
Figure 55: Investment in equipment (past 18 months)..................................................................... 23
Figure 56: Plans to expand within 3 years ......................................................................................... 24
Figure 57: Adequacy of current site for expansion ........................................................................... 24
Figure 58: Estimated expansion investment ..................................................................................... 24
Figure 59: Barriers to expansion of business..................................................................................... 25
Figure 60: Expansion assistance sought ............................................................................................ 25
Figure 61: Consideration of energy efficiency in expansion plans .................................................... 26
Figure 62: Awareness of BC Hydro Power Smart .............................................................................. 26
Figure 63: Quality of government services........................................................................................ 27
Figure 64: Suggested improvements to government services .......................................................... 27
Figure 65: Business climate factors ................................................................................................... 28
Figure 66: Business climate today vs. 5 years ago............................................................................. 29
Figure 67: Business climate 5 years from today ................................................................................ 29
Figure 68: Key words in respondents' discussions of the community's strengths as a place to do
business ............................................................................................................................................. 30
Figure 69: Key words in respondents' discussions of the community's weaknesses as a place to do
business ............................................................................................................................................. 30
Figure 70: Barriers to growth of the community's economy ............................................................ 31
Figure 71: Key words in respondents' discussions of customers to attract to the area ................... 31
Figure 72: Overall health of company ............................................................................................... 32
Figure 73: Overall health of parent company ................................................................................... 32
Figure 74: Local management’s attitude toward community ........................................................... 32
Figure 75: Parent company's attitude toward community ............................................................... 33
Figure 76: Risk of facility closing........................................................................................................ 33
Figure 77: Risk of facility downsizing ................................................................................................. 33
Figure 78: Critical issues for employees ............................................................................................ 34
Figure 79: Home of employees ......................................................................................................... 34
Figure 80: Reasons for out-of-area purchasing ................................................................................. 35
Figure 81: Business competitiveness factors .................................................................................... 35
Figure 82: Economic drivers with growth potential .......................................................................... 36

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

PROJECT OVERVIEW
This report describes findings from a Business Retention and Expansion (BRE) survey conducted in
the Boundary region in 2012. The Boundary Country Regional Chamber of Commerce (BCRCC)
acted as the community lead for the Boundary region BRE project. The Columbia Basin Rural
Development Institute (RDI) provided training, data analysis and report writing support.

THE BRE CONCEPT
BRE is an action-oriented and community-based approach to business and economic
development. It promotes job growth by helping communities to learn about concerns of, as well
as opportunities for, local businesses and to set priorities for projects to address those needs.
Ultimately, communities will have greater success in attracting new businesses if existing
businesses are content with local economic conditions and community support. Business
development and job creation are key factors in fostering healthy and vibrant communities—
depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of
new jobs come from existing businesses.

PROJECT OBJECTIVES
Objectives specific to the Boundary region BRE project were as follows:
1. To provide data on key challenges, issues and opportunities faced by businesses in the
Boundary region.
2. To develop data-supported recommendations regarding important future focus areas for
strengthening the area’s business climate.

RESEARCH CONSIDERATIONS
THE BRE SURVEY
The RDI has a licence agreement with the Economic Development Association of BC for BC
Business Counts, a program that provides access to an online BRE survey, contact management,
and reporting system called ExecutivePulse. Data presented in this report were collected as part
of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the
BC Business Counts program across the province. Survey data can therefore be analyzed at a
community, sub-regional, regional and provincial level.
The base 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, ten region-specific questions were appended to the
base BRE survey. A number of sector-specific add-on surveys were also made available, consisting
of approximately 20 questions each. Researchers verified each business’ North American Industry
Classification System (NAICS) code in advance of the interview to determine which sector-specific
add on survey to include, if any. See Appendix A for a copy of the base BRE survey.

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THE DATA SET
To generate an initial set of potential research participants, researchers reviewed local business
license and Chamber of Commerce membership databases. A cross-section of businesses were
selected based on size (small, medium, large) and type (according to the NAICS system). A total of
80 businesses were sent an invitation letter and copy of the BRE survey. Larger businesses
received a follow-up invite by telephone. In total, 58 Boundary region businesses were surveyed
for this project (a 73% response rate). Respondent businesses were located in Grand Forks and
Regional District of Kootenay Boundary (RDKB) Area D (35), Christina Lake (8), Midway (7), RDKB
Area E (6), and Greenwood (2).

DATA COLLECTION
Data were collected by local researchers, including and as directed by the BCRCC Executive
Director, using structured interviews that lasted approximately one hour and twenty minutes. The
process in total took approximately four hours per business, including setting up interviews, the
interview itself, and data input.

DATA INPUT, ANALYSIS AND REPORTING
Data were entered into the ExecutivePulse system by researchers following interviews. To ensure
confidentiality and data security, company-level data were only made accessible to RDI staff and
the lead BCRCC researcher.
Quantitative data were analysed using descriptive statistics and qualitative data were analysed
using the grounded theory method of generating key coding themes. Based on the results of data
analysis activities, an initial set of recommendations was generated by RDI and then reviewed with
BCRCC. Findings and related recommendations were assembled into this report by RDI
researchers.

RESEARCH FINDINGS
COMPANY INFORMATION
Type of Product/Service Offered
Interviewed businesses represented a diverse cross-section of industries. Most common were
retail and wholesale trade (29% of respondents), accommodation and food service (19%) and
manufacturing (16%).

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Figure 1: NAICS code category

Eighty-five percent of respondents indicated that their facility fulfills a service function and 33%
indicated that their facility serves as company headquarters. The remaining respondents indicated
that their facility serves various other functions.
Figure 2: Function of facility

Competition
Seventy-nine percent of respondents reported that their competitors are primarily located within
the community or region and 24% indicated that their competitors are located elsewhere in BC.
Figure 3: Location of competitors

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When asked what factors make their company successful in the community, the highest number
(41%) cited the quality of their staff/customer service. Twenty-eight percent said the quality of
their products is a key factor in determining their success.
Figure 4: Success factors

Figure 5: Key words in respondents' discussions of the factors that make them successful

Forteen percent of interviewed businesses indicated that their company has a similar location
elsewhere in Canada and 12% indicated that their company has a similar location in another
country.

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Figure 6: Other similar locations

Age and Life Cycle Stage
Over half of businesses (55%) indicated that they are in the ‘growing’ life cycle stage and 38%
indicated that they are in the ‘maturing’ life cycle stage.
Figure 7: Life cycle stage

Forty-one percent of respondent businesses have been in business for more than 20 years and 3%
are less than one year old.
Figure 8: Length of time in business

Ownership and Management
Most respondents (62%) indicated that their business is registered as a corporation and 22%
indicated that they are a sole proprietorship. The remaining businesses are classified as a

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partnership (10%), limited liability partnership (2%), non-profit (2%) or other type of company
(2%).
Figure 9: Type of company

The vast majority of respondents (95%) reported that their company is headquartered in BC.
Figure 10: Location of headquarters

Twenty-six percent of businesses reported that their company has seen a recent ownership
change, 17% reported a recent management change and 14% anticipate an ownership change in
the near term. Of the businesses reporting a recent ownership change, 12 said the impact was
positive and 2 said it was neutral. Of the businesses reporting a recent management change, 8 said
the impact was positive and 1 said it was neutral.
Figure 11: Ownership and management changes

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Succession and Business Plans
Of the businesses that expect to see an ownership change in the near future, 3 think the process
will take 3 years or more, 2 think it will take 2 years and 2 think it will take 1 year or less.
Figure 12: Anticipated timeline for ownership change

Again, of the respondents that anticipate a near-term ownership change, 2 expect to exit the
business by selling it to another company, 3 expect to sell or transfer it to another non-family
individual and 3 expect to sell or transfer it to a family member.
Figure 13: Anticipated exit strategy

Twenty-two percent of respondents indicated that they have identified a successor but only 12%
reported that they have a formal succession plan in place.
Figure 14: Existence of a formal succession plan

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Engagement with business planning is stronger than that for formal succession planning—50% of
businesses indicated that they have a current business plan.
Figure 15: Existence of a current business plan

LOCAL WORKFORCE
Size of Workforce
The 58 businesses interviewed reported a total of 914 employees. Sixty-five percent indicated that
they have less than 10 employees and 3% indicated that they have more than 100 employees.
Figure 16: Total number of employees

Over three quarters (78%) of positions at surveyed businesses are full-time, 18% are part time and
3% are temporary.
Figure 17: Nature of employment

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Sixty-two percent of respondents indicated that the number of employees at their facility is about
the same as it was 10 years ago. Thirty-one percent reported that their workforce has increased in
size over the same time period.
Figure 18: Employment trend over last 10 years

Respondents reported a similar trend specific to full-time employment over the last 3 years. Fiftyseven percent of businesses indicated that the size of their full-time workforce has stayed the
same and 34% indicated that it has increased in size.
Figure 19: Full-time employment trend over last 3 years

Fifty-six percent of respondents expect that the size of their full-time workforce will stay the same
over the next 3 years and 40% expect that it will increase.
Figure 20: Full-time employment trend over next 3 years

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Workforce Deomographics
The average age of workers in the Boundary region appears to be high, with 38% of respondents
indicating that the majority of their essential employees are between 35 and 49 years of age, and
29% of respondents indicated that the majority of their essential employees are over 50.
Figure 21: Age of majority of essential employees

Wages
When reporting on average wages for skilled or professional workers in the area, the highest
number of respondents (50%) indicated that they pay under $20 per hour. For semi-skilled
workers, the highest number of respondents (53%) indicated that they pay between $10 and $14
per hour. For entry-level workers, the highest number of respondents (69%) indicated that they
pay between $10 and $12 per hour. Forty-five percent of businesses think they pay more than
other businesses in the area and 42% think they pay about the same.
Figure 22: Wage in relation to other local businesses

Recruitment and Retention
The vast majority of respondents (98%) reported that the number of unfilled positions at their
facility is staying relatively constant.

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Figure 23: Trend in unfilled positions

Eighty-nine percent of respondents indicated that they mainly recruit locally, 9% recruit
provincially and 2% recruit at a national scale.
Figure 24: Location of workforce recruitment

Thirty-eight percent of respondents have experienced challenges recruiting new employees and
14% have experienced challenges retaining existing employees.
Figure 25: Recruitment and retention challenges

When asked what efforts their business has undertaken to recruit new employees, the highest
number said that they formally advertise in papers, on the web or on job boards. Some also said
that they rely on word of mouth advertising.

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Figure 26: Key words in respondents' discussions of recruitment activities

When asked what efforts their business has undertaken to retain existing employees, the highest
number (7) stated that they have focused on offering competitive wages. Others reported that
they have offered benefits packages (5), allowed flexibility in workers’ schedules (4), offered
employee training opportunities (4) and/or developed a culture of respect in the workplace (3).
Figure 27: Key words in respondents' discussions of retention activities

The most important current recruitment areas among surveyed businesses include maintenance
workers (6 respondents) and hospitality/service workers (5).

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Figure 28: Current recruitment areas

Anticipated furture recruitment areas are similar to current recruitment areas. Five businesses
expect recruitment challenges with maintenance personnel and 4 expect challenges with
hospitality/service workers.

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Figure 29: Future recruitment areas

Skills and Training
Over half of respondents (53%) indicated that the majority of their workforce is comprised of
skilled or professional workers, 26% indicated that they primarily employ semi-skilled workers and
19% indicated that their workforce is primarily comprised of entry-level employees.
Figure 30: Skill level of majority of workforce

Only 28% of respondents indicated that their company has a training budget; however, 62%
reported that there are areas of training or professional development that would be of benefit to

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their employees. Most commonly listed among these areas were specialized trades training (27%
of respondents) and retail and hospitality training (18%).
Figure 31: Training or professional development needs

Thirty-nine percent of businesses interviewed prefer that their training be delivered through an inperson classroom or seminar-style format, 30% prefer individual coaching and 28% prefer online
training/webinars.
Figure 32: Preferred modes of training

The highest number of respondents (36%) stated that they usually undertake training in other
areas of of BC and 31% indicated that they primarily attend local training opportunities.

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Figure 33: Usual training locations.

Unions
Two interviewed businesses reported union status.
Figure 34: Union status

SALES
Market Size and Share
Interviewed businesses reported a total of over $77 million in annual sales; however, the highest
number of respondents (30%) indicated that their sales are less than $100,000 per year. Six
percent of respondents reported annual sales of over $5 million.
Figure 35: Annual sales

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Almost half of respondents (48%) reported that the market for their product or service is
increasing, 43% indicated that it is stable and 9% indicated that is decreasing.
Figure 36: Status of market for product or service

A similar trend was reported for respondents’ share of the market for their product or service.
Forty-eight percent indicated that it is increasing and 46% indicated that it is stable.
Figure 37: Status of market share

Growth
Most surveyed businesses project low to moderate growth in sales over the coming year. Thirtyone percent expect to see growth of between 10 and 24%. Only 2% expect sales to decline.
Figure 38: Projected sales growth over next year

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The majority of respondents (59%) indicated that their sales have increased historically, 33%
reported that sales have stayed stable and 9% indicated that sales have declined over time.
Figure 39: Historic sales trend at facility

For businesses that have a parent company, the historic sales trend is slightly more positive. Of the
11 respondents for this question, 64% indicated that their parent company’s sales have increased
over time and 36% indicated that sales have remained stable.
Figure 40: Historic sales trend at parent company

The historic sales trend for respondents’ repective industries is less positive. Thirty percent of
businesses indicated that sales have increased, 32% indicated they have been stable and 11%
indicated they have been declining.
Figure 41: Historic sales trend in industry

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Of the businesses that export to international markets, over half (53%) reported that their sales
have been increasing over time, 33% reported that they have been stable and 13% reported that
they have been declining.
Figure 42: Historic export sales trend

Source of Sales
Data indicate that Boundary businesses have a relatively diverse customer base, with 51% of
respondents indicating that less than 10% of their sales are generated by their top 3 customers.
Figure 43: Component of sales generated by top 3 customers

Boundary businesses also appear to be relatively dependent on local markets. Seventy-four
percent of respondents indicated that the majority of their sales are to local customers.
Figure 44: Geographic source of majority of sales

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Sixteen percent of interviewed businesses export products or services and 11% import. Eighty-two
percent of respondents do not engage in international trade.
Figure 45: International trade status

Procurement
Eighty-four percent of respondents indicated that they do not engage in government procurement
processes.
Figure 46: Engagement with government procurement processes

Forty-three percent of businesses interviewed reported that they acquire 50% or more of their
supplies from local sources and 45% indicated that they source the majority of their supplies from
elsewhere in BC.
Figure 47: Geographic source of majority of supplies

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FACILITIES AND EQUIPMENT
Size and Condition
The highest number of respondents (33%) have facilities that are between 1,000 and 4,999 square
feet in size. Twelve percent of respondents (likely home businesses) reported that they do not
have a facility.
Figure 48: Size of facility

Eight-five percent of businesses indicated that their facility is in good or excellent condition.
Notably, no respondents indicated that their facility is in poor condition.
Figure 49: Condition of facility

Similarly, 87% of businesses indicated that their equipment is in good or excellent condition.
Figure 50: Condition of equipment

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Shifts
Most businesses (72%) operate one shift per day. Twenty-one percent operate 2 shifts and 8%
operate 24 hours per day.
Figure 51: Number of shifts

Ownership
Seventy percent of respondents own their facility and 30% lease it.
Figure 52: Ownership status of facility

Of the businesses that lease their facility, an equal number (36% each) have less than one year and
between 3 and 5 years remaining on their lease agreement. Eight-eight percent of respondents
plan to renew the lease for their current facility.
Figure 53: Length of time remaining on lease

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Investment and Expansion
Forty-seven percent of respondents reported that investment in their facility has increased over
the last 18 months and 44% reported that it has stayed the same.
Figure 54: Investment in facility (past 18 months)

Investment in equipment seems to be higher among Boundary businesses. Sixty-one percent of
respondents indicated that investment in their business’ equipment has increased over the last 18
months and only 4% indicated that it has declined.
Figure 55: Investment in equipment (past 18 months)

Just under half of interviewed businesses (46%) plan to expand within 3 years. Of those
businesses, a strong majority (88%) plan to expand within the Boundary region and 83% expect
the expansion process to take between 1 and 3 years.

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Figure 56: Plans to expand within 3 years

Of the businesses planning a near-term expansion, 78% reported that their current site will be
adequate. Five businesses (22%) indicated that they will need to find a new site to support their
expansion needs.
Figure 57: Adequacy of current site for expansion

In total, the Boundary businesses interviewed plan to invest more than $37 million in expansion
over the next three years. That being said, the highest number of businesses (44%) plan to spend
less than $25,000.
Figure 58: Estimated expansion investment

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Respondents cited a variety of factors as barriers to their expansion. Most common were financing
(38%), a lack of skilled staff (24%), identifying/accessing new markets (19%) and local
regulations/zoning (19%).
Figure 59: Barriers to expansion of business

Five businesses have sought assistance with their expansion plans. Of those respondents, 1 has
approach Community Futures, 1 has approached BC Hydro, 1 has approached the Business
Development Bank of Canada and 2 have approached their local government.
Figure 60: Expansion assistance sought

Energy Efficiency
Over half of respondents (52%) are considering energy efficiency in their expansion plans.

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Figure 61: Consideration of energy efficiency in expansion plans

Sixty-seven percent of businesses are aware of the energy efficiency resources made available
through the BC Hydro Power Smart program.
Figure 62: Awareness of BC Hydro Power Smart

GOVERNMENT SERVICES
Respondents were asked to rate a list of government services as excellent, good, average, fair or
poor. Respondents also had the option of indicating that a service is not applicable to their
business. The services that received the highest number of excellent or good ratings include access
to highways/roadways (90%), water and sewerage supply (69%) and recycling (69%). Services that
received the highest number of fair or poor ratings include access to airport facilities (39%) and
access to suppliers (33%). Services that the most respondents thought are not applicable to their
business include availability of rail transport services (79%) and availability of buildings (62%).

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Figure 63: Quality of government services

When asked to provide suggestions on how to improve government services, the highest number
of respondents (40%) indicated that approvals and permits should be a focus area. Twenty percent
also indicated that telecommunications services need improvement.
Figure 64: Suggested improvements to government services

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BUSINESS CLIMATE
Quality of Business Climate
Respondents rated a list of business climate factors as excellent, good, fair or poor. Factors that
received the highest number of excellent or good ratings include workforce quality (60%) and
workforce stability (59%). Factors that received the highest number of fair or poor ratings include
the provincial tax structure (72%) and the overall business climate (67%).
Figure 65: Business climate factors

Over half of respondents (53%) felt that the Boundary business climate is worse today than it was
5 years ago. Twenty one percent thought it is better.

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Figure 66: Business climate today vs. 5 years ago

The majority of respondents (53%) are optimistic that the business climate will better in 5 years.
Seven percent thougt it will be worse.
Figure 67: Business climate 5 years from today

Strengths and Weaknesses of Business Climate
When asked to list the community’s strengths as a place to do business, the highest number of
respondents (45%) cited the small-town culture or sense of community. Many respondents (16%)
also felt that the community is supportive of local businesses. For a full list of response themes,
see Appendix B.

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Figure 68: Key words in respondents' discussions of the community's strengths as a place to do business

When asked to list the community’s weaknesses as a place to do business, the highest number of
repsondents (36%) spoke of the size of the community/population. Many other respondents (13%
each) cited the aging population or a lack of employment opportunities.
Figure 69: Key words in respondents' discussions of the community's weaknesses as a place to do business

When discussing key barriers to growing the community’s economy, the highest number of
respondents (26%) cited a negative attitude toward change or growth among the local population.
Twenty-four percent of businesses also discussed problems with government approvals or zoning.

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Figure 70: Barriers to growth of the community's economy

Eighteen percent of respondents felt it is important to attract certain suppliers and 54% of
respondents felt it is important to attract certain customers to the region. The customers that
respondents commonly listed as important include tourists/amenity migrants (8 respondents),
businesses from elsewhere (6), seniors (4), young people (4) and agriculture/wineries (3).
Figure 71: Key words in respondents' discussions of customers to attract to the area

ASSESSMENT AND PLANS
Overall Health
Seventy-one percent of respondents indicated the overall health of their company is good, 15%
indicated it is excellent and 15% indicated it is fair.

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Figure 72: Overall health of company

Of the businesses with a parent company, the majority (68%) reported that the health of their
parent company is good.
Figure 73: Overall health of parent company

Attitude toward Community
Fifty-three percent of respondents reported that their local management’s attitude toward the
community is good. Another 28% reported that it is excellent.
Figure 74: Local management’s attitude toward community

Among parent companies, the attitude is more positive. Of 17 relevant respondents, 59% reported
that their parent company’s attitude toward the community is excellent and 41% reported that it
is good.

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Figure 75: Parent company's attitude toward community

Risk of Closing or Downsizing
Eighty-eight percent of businesses interviewed indicated that the risk of their facility closing over
the next one to three years is low.
Figure 76: Risk of facility closing

Similarly, 88% of respondents indicated that the risk of their facility downsizing over the next one
to three years is low.
Figure 77: Risk of facility downsizing

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ISSUES OF REGIONAL INTEREST
Employees
A strong majority of respondents (86%) indicated that cost of living is a critical issue for their
employees. Many other businesses also cited transportation, housing and child care (41% each).
Figure 78: Critical issues for employees

The vast majority of employees at interviewed businesses live within the community. A small
number of respondents (4%) indicated that a portion of their workforce lives elsewhere in the
region.
Figure 79: Home of employees

Purchasing
When reflecting on their reasons for purchasing supplies from out-of-area businesses, the highest
number of respondents (83%) stated that the products they need are not available in the region.
Several others (21%) also indicated that products tend to cost more from local suppliers.

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Figure 80: Reasons for out-of-area purchasing

Business Competitiveness
From a list of business competitiveness factors, those that received the highest number of
somewhat important or very important ratings include workforce skill development (96%), energy
costs (96%) and improvement of customer services (96%). Those that received the highest number
of not very important or not important at all ratings include new market development outside of
the region (33%) and reliable air transportation (26%). The factors that most businesses thought
are not applicable to their business include access to exporting and international markets (59%)
and reliable air transportation (48%).
Figure 81: Business competitiveness factors

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Economic Drivers
Respondents were asked to choose, from a list of economic drivers, those that they think have the
most growth potential over the next 5 to 10 years. Factors that received the highest number of
votes include tourism (70%), forestry (48%) and agriculture (30%). Notably, no respondents
thought that the finance sector has high potential for growth over the near term.
Figure 82: Economic drivers with growth potential

RECOMMENDATIONS
NEXT STEPS
The results of this survey can be used by economic development organizations in the Boundary
Region to inform short- and long-term business retention and expansion action planning. Many
BRE programs ensure that follow-up actions occur as soon as possible following completion of the
survey stage. This approach builds credibility, a sense of success and momentum to carry out longterm actions.
Successful BRE programs pick an initial set of short-term actions that:
 can be completed in 6 months or less;
 are highly visible to businesses and the community as a whole; and
 have the potential for considerable impact with minimal input (i.e., the “low hanging
fruit”).

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Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans
and policies. Patience and a commitment to success over the long-term are critical in determining
the success of these initiatives. For this reason, BRE should be thought of, and implemented as, a
process as opposed to a one-time project.
BRE results can form the backbone of a community’s economic development strategy and, in
some cases, they are integrated into Official Community Plans (OCPs). Some communities form
committees or action groups around the themes or action areas identified in the BRE report to
ensure success in implementation.
The following steps could further support links to planning and action:
1. Prepare a follow-up report compiling current research findings alongside other relevant
regional economic development research to identify common themes and further develop
recommended actions.
2. Host a business stakeholder forum to present findings and prioritize actions. Ensure
participation by businesses outside of Grand Forks by hosting forums in the rural areas, if
needed.
3. Host a facilitated action planning session with economic development stakeholders and
industry representatives.
4. Based on results from the forums and planning session, finalize priority actions, develop
related action plans, update existing economic development plans and develop
relationships with a broader network of support providers (at regional, provincial and
national scales) to support implementation.
5. Establish a monitoring program to assess the impact of implementation efforts.

POTENTIAL ACTION AREAS
Business expansion
Boundary businesses are planning significant investment in expansion over the near term, about
half of which will be spent on real estate and half of which will be spent on equipment/
technology. Since many businesses indicated that adequate financing is inhibiting their expansion,
this trend could strengthen if access to financing were improved in the region. Actions on this
theme may involve assisting in the location of potential expansion sites, connecting businesses
with potential sources of financing, educating businesses of the types of expansion support
available from external organizations or working with governments to ensure their approval
processes meet the needs of local businesses (see ‘Government services’, below).
Supply sourcing
Less than half of respondents purchase the majority of their supplies from local suppliers, yet
almost three quarters sell primarily to local customers. Combined, these two findings indicate that
businesses’ purchasing policies may be shrinking the Boundary economy by sending sales revenue
out of the region. Though most respondents indicated that their reason for out-of-area
purchasing is related to the availability of necessary supplies in the region, additional research on

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37

this theme could help determine if there are in fact opportunities to address some of the barriers
to businesses buying locally.
Training opportunities
A lack of skilled staff was commonly cited as a barrier to expansion of businesses and the vast
majority of respondents said that workforce skill development is important to the competitiveness
of their business. Professional development areas most often listed by businesses include skilled
trades and retail/hospitality. Uptake on training opportunities can be low in the region due to the
limited time and financial resources available to the types of businesses that characterize
Boundary Country (generally few employees with limited sales and no funds dedicated to
training). Therefore, any actions on this theme must consider business schedules and training
budgets. Educational and training institutions in the region could be approached as potential
collaborators in meeting businesses’ training needs.
Employee and customer recruitment
The small and aging Boundary population was often discussed as an inhibitor of economic growth.
Further, about a third of businesses indicated that they have experienced challenges recruiting
new employees, especially maintenance workers and hospitality/service personnel. Currently,
respondents primarily recruit locally; therefore, actions on this theme could involve assisting
businesses with recruiting further afield, either individually or as a business community.
Recruitment initiatives could focus on young families and amenity migrants (two key ‘customers to
attract’ as identified by respondents) and could promote the factors that respondents identified as
strengths of the region (e.g., sense of community, support for local businesses).
Succession and business planning
Business and succession planning are critical to the health and longevity of businesses, yet only
12% of respondents indicated that they have a formal succession plan and half do not have an upto-date business plan. Since the Boundary workforce is aging, business succession could have a
significant impact on the regional economy over the near- to medium-term. Open, instructive
training sessions have the potential to provide a base level of support to a large number of
businesses; however, given the importance of individual circumstances in business and succession
planning, a more targeted, one-on-one assistance program could result in greater overall benefit
by providing a higher level of support to ‘at-risk’ businesses. These opportunities should be
aggressively advertised to ensure uptake among local businesses.
Government services
Approvals, regulations and taxes administered by various levels of government were often cited by
respondents as factors that inhibit business activity in the region. Additional research on this
theme could help further inform the exact nature of businesses’ perceptions regarding the
regulatory barriers to their growth. Sharing the results of this research with governing bodies
could help them understand how they can better support business activities in the Boundary
region.

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Wages
Data suggests that wages at many Boundary businesses are somewhat low, with the average
reported skilled or professional wage being $22.48/hour and the average semi-skilled wage being
$15.48/hour. Raising wages could help improve recruitment of workers and retention of youth in
the community. A potential action on this theme involves facilitating access to wage subsidy
programs targeted at small businesses.

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APPENDIX A: THE BRE SURVEY

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48

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APPENDIX B: DATA TABLES
COMPANY INFORMATION
Industry Classification
agriculture, forestry, fishing and mining

5

9%

utilities

1

2%

construction

2

3%

manufacturing

9

16%

retail and wholesale trade

17

29%

finance/insurance

2

3%

professional, scientific and technical services

2

3%

arts, entertainment and recreation

2

3%

accommodation and food service

11

19%

other services

7

12%

Total

58

100%

Location of Competitors
Local/regional

46

79%

Elsewhere in BC

14

24%

Elsewhere in Canada

6

10%

International

8

14%

Unique Respondents

74

Success Factors
family friendly & safe

1

2%

location / proximity to markets or amenities

9

16%

quality products & service

16

28%

diversity, flexibility/hours of operation & prices

10

17%

quality staff & customer service

24

41%

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customers / reputation

5

9%

length of time in business

9

16%

niche market / market share

7

12%

investing in new equipment

1

2%

local supply

4

7%

other

4

7%

Unique respondents

58

Life Cycle Stage
Emerging

3

5%

Growing

32

55%

Maturing (status
quo)

22

38%

Declining

1

2%

Total

58

100%

Ownership Status
Public

2

3%

Private

56

97%

Total

58

100%

Type of Company
Sole Proprietorship

13

22%

Partnership

6

10%

Corporation

36

62%

Limited Liability Partnership

1

2%

Non-Profit

1

2%

Other

1

2%

Total

58

100%

Location of Headquarters
In Province

55

95%

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In Canada

1

2%

International

2

3%

Total

58

100%

Length of Time in Business
Less than 1 year

2

3%

1-4 years

9

16%

5-9 years

8

14%

10-19 years

15

26%

More than 20 years

24

41%

Total

58

100%

Function of Facility
Distribution

11

20%

Engineering / R&D

6

11%

Headquarters

18

33%

Manufacturing

10

18%

Services

47

85%

Warehousing

7

13%

Unique respondents

99

Other Similar Locations
In Canada

8

14%

Elsewhere in World

7

12%

Ownership and Management Changes
Recent ownership change

15

26%

Recent management change

10

17%

Pending ownership change

8

14%

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Exit Strategy
family sale/transfer

3

non-family sale/transfer

3

another company sale/transfer

2

close business

0

other

0

Respondent Age (Estimated)
over 65

2

5%

60-65 yrs

9

23%

54-59 yrs

6

15%

50-54 yrs

6

15%

45-49 yrs

4

10%

44 yrs & under

12

31%

Total

39

100%

Successor Identified
Yes

9

22%

No

32

78%

Total

41

100%

Formal Succession Plan
Yes

5

13%

No

27

68%

N/A

8

20%

Total

40

100%

Current Business Plan
Yes

23

50%

No

23

50%

Total

46

100%

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LOCAL WORKFORCE
Number of Full-Time Employees
Less than 5

37

64%

5-9

7

12%

10-19

6

10%

20-49

4

7%

50-99

2

3%

100+

2

3%

Total

58

100%

Number of Part-Time Employees
None

17

29%

Less than 10

37

64%

More than 10

4

7%

Total

58

100%

Number of Temporary Employees
None

51

88%

Less than 10

6

10%

More than 10

1

2%

Total

58

100%

Number of Total Employees
Less than 5

24

41%

5 to 9

14

24%

10 to 19

8

14%

20 to 49

8

14%

50 to 99

2

3%

100+

2

3%

Total

58

100%

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Employment Trend Over Last 10 Years
Decreased

4

7%

Stayed the same

36

62%

Increased

18

31%

Total

58

100%

Full-Time Employment Trend Over Last 3 Years
Decreased

5

9%

Stayed the same

33

57%

Increased

20

34%

Total

58

100%

Part-Time Employment Trend Over Last 3 Years
Decreased

3

5%

Stayed the same

41

71%

Increased

14

24%

Total

58

100%

Temporary Employment Trend Over Last 3 Years
Decreased

0

0%

Stayed the same

53

93%

Increased

4

7%

Total

57

100%

Full-Time Employment Trend Over Next 3 Years
Decreasing

2

4%

Staying the same

32

56%

Increasing

23

40%

Total

57

100%

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Part-Time Employment Trend Over Next 3 Years
Decreasing

2

4%

Staying the same

36

63%

Increasing

19

33%

Total

57

100%

Temporary Employment Trend Over Next 3 Years
Decreasing

1

2%

Staying the same

51

93%

Increasing

3

5%

Total

55

100%

Trend in Unfilled Positions
Decreasing

0

0%

Staying the same

56

98%

Increasing

1

2%

Total

57

100%

Training Budget
Yes

16

28%

No

42

72%

Total

58

100%

Location of Workforce Recruitment
Local

50

89%

Provincial

5

9%

National

1

2%

International

0

0%

Total

56

100%

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Skilled/Professional Employees as % of Workforce
Less than 25%

17

29%

25-49%

10

17%

50-74%

9

16%

75-100%

22

38%

Total

58

100%

Semi-Skilled Employees as % of Workforce
Less than 25%

32

55%

25-49%

11

19%

50-74%

10

17%

75-100%

5

9%

Total

58

100%

Entry-Level Employees as % of Workforce
Less than 25%

43

74%

25-49%

4

7%

50-74%

6

10%

75-100%

5

9%

Total

58

100%

Average Wage of Skilled/Professional Employees
Under $20

11

50%

$20-$29

8

36%

$30-$49

3

14%

$50+

0

0%

Total

22

100%

Average Wage of Semi-Skilled Employees
$10-$14

10

53%

$15-$19

4

21%

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$20-$24

1

5%

$25 or more

4

21%

Total

19

100%

Average Wage of Entry Level Employees
$10 to $12

9

69%

$13 to $15

1

8%

$15 to $20

1

8%

$20 to $25

2

15%

Total

13

100%

Wages in Relation to Other Businesses in the Region
Less than

7

13%

Same

23

42%

Greater than

25

45%

Total

55

100%

Age of Majority of Essential Employees
Less than 25

10

18%

25 to 34

9

16%

35 to 49

21

38%

50+

16

29%

Total

56

100%

Retention Challenge
Yes

8

14%

No

49

86%

Total

57

100%

Recruitment Challenge
Yes

22

38%

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No

36

62%

Total

58

100%

Current Recruitment Areas
admin/clerical

0

advanced mfg workers

1

agriculture / farming

1

assembler/line workers

0

CDL drivers/ Class 1 Drivers

0

construction/contractors

2

electrical/electronics

3

food/beverage service

2

general labourer

3

graphic arts/printing

0

healthcare professionals

1

hospitality service

5

machine operators

1

machinists

2

maintenance

6

manufacturing other

1

marketing

1

material/fabricators

2

mechanics

0

plant managers/operators

0

professional/info tech/programming

0

professional other

1

professional technical

3

sales/retail

3

sales/service

1

engineers

0

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hair dressers / salon stylists

1

other

1

Total

41

Future Recruitment Areas
admin/clerical

0

advanced mfg workers

0

agriculture / farming

1

assembler/line workers

0

CDL drivers/ Class 1 Drivers

1

construction/contractors

2

electrical/electronics

2

food/beverage service

2

general labourer

1

graphic arts/printing

0

healthcare professionals

1

hospitality service

4

machine operators

0

machinists

2

maintenance

5

manufacturing other

2

marketing

1

material/fabricators

2

mechanics

0

plant managers/operators

0

prof/info tech/programming

0

professional other

1

professional technical

1

sales/retail

2

sales/service

2

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engineers

0

hair dressers / salon stylists

1

other

2

Total

35

Union Status
Yes

2

3%

No

56

97%

Total

58

100%

Professional Development Needs
Administrative / Computer Skills

7

14%

Technology Skills

5

10%

Trades

14

27%

Equipment Operators

5

10%

Retail & Hospitality

9

18%

First Aid / WHMIS / Food Safe

6

12%

Business / Management

4

8%

Other

1

2%

Total

51

100%

Usual Training Location
Local

22

31%

Regional

16

23%

Provincial

25

36%

National

4

6%

United States

3

4%

Total

70

1

Preferred Training Mechanisms
Classroom/Seminar

32

39%

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Individual Coaching

25

30%

Online Webinar/Training

23

28%

Apprenticeship

1

1%

Trade Shows/Conferences

1

1%

Total

82

100%

under $100,000

14

30%

$100,000 to $499,999

13

28%

$500,000 to $999,999

6

13%

$1,000,000 to $4,999,999

11

23%

over $5,000,000

3

6%

Total

47

100%

SALES
Annual Sales

Status of Market for Product/Service
Decreasing

5

9%

Stable

25

43%

Increasing

28

48%

Total

58

100%

Status of Market Share
Decreasing

3

6%

Stable

25

46%

Increasing

26

48%

Total

54

100%

Projected Sales Growth Over Next Year
declining

1

2%

0%

12

22%

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1-9%

15

28%

10-24%

17

31%

25-49%

4

7%

50-99%

3

6%

100%+

2

4%

Total

54

100%

Historical Sales Trend: This Location
Declined

5

9%

Stayed the same

19

33%

Increased

34

59%

Total

58

100%

Historical Sales Trend: Parent Company
Not Applicable

45

80%

Declined

0

0%

Stayed the same'

4

7%

Increased

7

13%

Total

56

100%

Historical Sales Trend: Industry
Declined

6

11%

Stayed the same

18

32%

Increased

17

30%

Total

41

72%

Sales from Top 3 Customers (%)
1-9%

23

51%

10-25%

10

22%

26-50%

3

7%

51-75%

3

7%

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76-100%

6

13%

Total

45

100%

Government Procurement
yes

9

16%

no

48

84%

Total

57

100%

Source of Sales: Local
0%

8

14%

under 50%

7

12%

50 to 99%

11

19%

100%

32

55%

Total

58

100%

Source of Sales: Provincial
0%

34

59%

under 50%

16

28%

50 to 99%

6

10%

100%

2

3%

Total

58

100%

Source of Sales: National
0%

46

79%

under 50%

10

17%

50 to 99%

2

3%

100%

0

0%

Total

58

100%

Source of Sales: United States
0%

51

88%

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under 50%

6

10%

50 to 99%

1

2%

100%

0

0%

Total

58

100%

Source of Sales: International
0%

53

91%

under 50%

3

5%

50 to 99%

2

3%

100%

0

0%

Total

58

100%

Source of Supplies: Local / Regional
0%

16

28%

under 50%

17

29%

50 to 99%

12

21%

100%

13

22%

Total

58

100%

Source of Supplies: Provincial
0%

24

41%

under 50%

8

14%

50 to 99%

18

31%

100%

8

14%

Total

58

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

65

Source of Supplies: National
0%

43

74%

under 50%

12

21%

50 to 99%

2

3%

100%

1

2%

Total

58

100%

Source of Supplies: United States
0%

45

78%

under 50%

8

14%

50 to 99%

5

9%

100%

0

0%

Total

58

100%

Source of Supplies: International
0%

54

93%

under 50%

2

3%

50 to 99%

1

2%

100%

1

2%

Total

58

100%

International Trade Status
Not applicable/None

47

82%

Import

6

11%

Export

9

16%

Unique Respondents

57

Export Sales Trend
Not Applicable

37

71%

Declining

2

4%

Staying the Same

5

10%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

66

Increasing

8

15%

Total

52

100%

FACILITIES AND EQUIPMENT
Size of Facility
0

7

12%

less than 1000 sq ft

10

17%

1000 to 4999 sq ft

19

33%

5000 to 9999 sq ft

13

22%

10,000 to 19,999 sq ft

3

5%

20,000 sq ft or more

6

10%

Total

58

100%

Ownership Status
Leased

17

30%

Owned

40

70%

Total

57

100%

Length of Time Remaining on Lease
less than 1 Year

5

36%

1-2 Years

3

21%

3-5 Years

5

36%

More than 5 Years

1

7%

Total

14

100%

Renewing Lease
No

2

13%

Yes

14

88%

Total

16

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

67

Condition of Facility
Poor

0

0%

Fair

8

14%

Good

35

61%

Excellent

14

25%

Total

57

100%

Condition of Equipment
Poor

0

0%

Fair

7

13%

Good

34

63%

Excellent

13

24%

Total

54

100%

Number of Shifts
One Shift

38

72%

Two Shifts

11

21%

24 Hours

4

8%

Total

53

100%

Investment in Facility (past 18 months)
Decreased

5

9%

Stayed the same

25

44%

Increased

27

47%

Total

57

100%

Investment in Equipment (past 18 months)
Decreasing

2

4%

Staying the Same

20

35%

Increasing

35

61%

Total

57

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

68

Room for Expansion
Yes

36

64%

No

17

30%

Maybe

3

5%

Total

56

100%

Awareness of Energy Efficiency Resources
Yes

37

67%

No

18

33%

Total

55

100%

Expansion Plans (Next 3 Years)
Yes

26

46%

No

31

54%

Total

57

100%

Expansion in Community
No

3

12%

Yes

22

88%

Total

25

100%

Adequacy of Current Site for Expansion
No

5

22%

Yes

18

78%

Total

23

100%

Estimated Expansion Investment
less than $25,000

7

44%

$25,000 to $99,999

1

6%

$100,000 to $499,999

4

25%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

69

$500,000 to $999,999

1

6%

$1,000,000 to 4,999,999

1

6%

$5,000,000 to $9,999,999

0

0%

$10,000,000 to $19,999,999

1

6%

More than $20,000,000

1

6%

Total

16

100%

Component of Expansion Investment for Equipment
0%

0

0%

under 50%

4

50%

50 to 99%

2

25%

100%

2

25%

Total

8

100%

Component of Expansion Investment for Real Estate
0%

0

0%

under 50%

0

0%

50 to 99%

4

100%

100%

0

0%

Total

4

100%

Size of Facility Expansion
Less than 3000 ft2

1

33%

3000 ft2 or more

2

67%

Total

3

100%

Timeframe for Expansion
Less than 1 Year

4

17%

1-3 years

19

83%

More than 3 Years

0

0%

Total

23

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

70

Barriers to Expansion
Broadband Access

0

0%

Energy Reliability

0

0%

Identifying / Accessing New Markets

4

19%

Lack of Suitable Premises

1

5%

Problems with Development Approvals

1

5%

Energy Costs

1

5%

Financing

8

38%

Lack of Skilled Staff

5

24%

Local Regulations (Zoning)

4

19%

Roads

1

5%

Warehousing

1

5%

Real Estate Costs

1

5%

Unique Respondents

21

Sought Expansion Assistance
Yes

5

19%

No

21

81%

Total

26

100%

Considering Energy Efficiency in Expansion Plans
Yes

12

52%

No

11

48%

Total

23

100%

GOVERNMENT SERVICES
Government Services

Access to airport facilities

N/A

Poor

Fair

Average

Good

Excellent

Total

49%

33%

5%

9%

4%

0%

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

71

Access to highways/roadways

2%

0%

2%

7%

53%

36%

100%

Access to markets

9%

14%

9%

10%

48%

10%

100%

Access to suppliers

5%

5%

28%

17%

41%

3%

100%

Availability of road transport services

14%

9%

14%

14%

47%

3%

100%

Availability of rail transport

79%

12%

3%

2%

3%

0%

100%

Availability of warehousing

57%

10%

7%

5%

17%

3%

100%

Disposal of waste material

16%

2%

9%

12%

55%

7%

100%

Recycling

5%

7%

9%

10%

53%

16%

100%

Inspections (e.g., licensing)

22%

10%

5%

17%

40%

5%

100%

Development approval process

53%

16%

12%

7%

10%

2%

100%

Telecommunications

5%

12%

12%

10%

50%

10%

100%

Availability of buildings

62%

0%

9%

9%

17%

3%

100%

Availability of appropriately zoned land

56%

9%

4%

9%

21%

2%

100%

Water and sewerage supply

14%

5%

5%

7%

59%

10%

100%

Recommended Improvements to Government Services
Road quality

1

7%

Approvals and permits

6

40%

Taxes

1

7%

Telecommunications

3

20%

Water and sewer

2

13%

Recycling and waste management

2

13%

Airports

1

7%

Freight and couriers

2

13%

Utilities

1

7%

Unique Respondents

19

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

72

BUSINESS CLIMATE FACTORS
Business Climate Factors
Business Climate Factors

Excellent

Good

Fair

Poor

No Opinion

Workforce Quality

10

25

14

4

5

Workforce Availability

4

19

22

9

2

Workforce Stability

3

31

16

4

2

Local Government

6

24

15

6

5

Local Tax Structure

2

13

21

10

9

Provincial Tax Structure

0

7

25

17

7

Workers Compensation Rates

0

15

13

14

14

Economic Development

0

10

15

17

14

Cultural / Recreational Amenities

2

27

21

4

2

Housing

0

27

13

10

6

K-12 Education

3

21

13

6

13

Colleges / Universities

1

2

12

19

22

Technical Training

1

4

11

17

22

Overall Business Climate

0

16

34

5

0

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

73

Community's Strengths as a Place to do Business
Culture/ sense of community

22

45%

Support for businesses

8

16%

Workforce

2

4%

Existing industry

6

12%

Tourism

5

10%

Location

6

12%

Lifestyle

2

4%

Land availability

2

4%

Weather

5

10%

Other

6

12%

Unique Respondents

49

Community's Weaknesses as a Place to do Business
Size of community/population

19

36%

Age of population

7

13%

Employment opportunities

7

13%

Amenities

4

8%

Attitude towards change/growth

5

9%

Infrastructure

2

4%

Workforce

2

4%

Government/approvals

3

6%

Location

5

9%

Out of area shopping

4

8%

Choice/cost of products

6

11%

Shipping

2

4%

Other

7

13%

Unique respondents

53

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

74

Barriers to Growth
Yes

41

73%

No

15

27%

Total

56

100%

Barriers to Growth of Community
Attitude towards change/growth

10

26%

Existing industry/economy

6

16%

Population/market size

5

13%

Demographics

4

11%

Infrastructure

2

5%

Government/zoning

9

24%

Location

3

8%

Housing

2

5%

Other

4

11%

Unique respondents

38

Important to Attract Suppliers
Yes

10

18%

No

47

82%

Total

57

100%

Important to Attract Customers
Yes

29

54%

No

25

46%

Total

54

100%

Customers to Attract
Seniors

4

16%

Tourists/Amenity migrants

8

32%

Young people

4

16%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

75

Agriculture & Wineries

3

12%

Businesses from Elsewhere

6

24%

Total

25

100%

Business Climate Today vs 5 Years Ago
Better today

12

21%

No change

10

18%

Worse today

30

53%

No opinion

5

9%

Total

57

100%

Business Climate 5 Years from Today
Will be better

29

53%

No change

18

33%

Will be worse

4

7%

No opinion

4

7%

Total

55

100%

ASSESSMENT AND PLANS
Company's Overall Health
Poor

0

0%

Fair

8

15%

Good

39

71%

Excellent

8

15%

Total

55

100%

Parent Company's Overall Health
Not applicable

38

67%

Poor

1

2%

Fair

0

0%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

76

Good

13

23%

Excellent

5

9%

Total

57

100%

Local Management's Attitude Toward Community
Not applicable

6

11%

Poor

0

0%

Fair

5

9%

Good

30

53%

Excellent

16

28%

Total

57

100%

Parent Company's Attitude Toward Community
Not applicable

40

70%

Poor

0

0%

Fair

0

0%

Good

7

12%

Excellent

10

18%

Total

57

100%

Risk of Facility Closing
Low

50

88%

Moderate

6

11%

High

1

2%

Total

57

100%

Risk of Facility Downsizing
Low

50

88%

Moderate

5

9%

High

2

4%

Total

57

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

77

Expansion Plans (Next 12 Months)
Yes

19

34%

No

37

66%

Total

56

100%

ISSUES OF REGIONAL INTEREST
Critical Issues for Employees
Child care

9

41%

Cost of living

19

86%

Housing

9

41%

Transportation

9

41%

Other

3

14%

Unique Respondents

22

Home of Employees
In Community

Elsewhere in Region

Outside of Region

0-24%

0%

96%

100%

25-49%

0%

4%

0%

50-74%

4%

0%

0%

75-100%

96%

0%

0%

Total

100%

100%

100%

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

78

Reason for Out of Area Purchasing
Product not available here

20

83%

Quality of product available here

1

4%

Higher costs locally

5

21%

No control/Head office decision

2

8%

Unaware of local vendors

1

4%

Other

2

8%

Unique respondents

24

Business Competitiveness Factors
Not
Important
at All

Not
Applicable
New Product Research and
Development
New Market Development
Locally
New Market Development
Outside of Region
Access to Exporting and
International Markets
Add or Change in Business,
Products or Services

Not Very
Important

Somewhat
Important

Very
Important

Total

2

1

3

7

13

26

4

3

0

10

10

27

6

5

4

7

5

27

16

4

2

2

3

27

5

0

5

11

6

27

Strategic Alliances

6

1

2

17

1

27

Worker Productivity
Improvements

2

0

2

9

14

27

Expansion of Workforce

2

0

6

12

7

27

Workplace Health and Safety

2

0

0

5

20

27

Workforce Skill Development

1

0

0

10

16

27

Energy Costs

1

0

0

10

16

27

Water/Sewer Availability

2

1

3

7

14

27

Water/Sewer Costs

2

0

2

9

14

27

Reliable Air Transportation

13

5

2

4

3

27

Affordable Shipping/Freight

2

2

0

8

15

27

1

0

0

5

21

27

1

1

1

6

17

26

Improvement of Customer
Services
Availability of
Telecommunications
Infrastructure and Services

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

79

Canadian Dollar Exchange
Rate

7

2

1

9

8

27

Accessing Capital

7

2

1

11

4

25

Business Management
Improvements

1

1

1

14

10

27

Economic Drivers with Growth Potential
Forestry

13

48%

Manufacturing

7

26%

Education

2

7%

Tourism

19

70%

Technology-based businesses

6

22%

Arts, Culture & Creative Businesses

6

22%

Health & Wellness

2

7%

Relocation of People from Urban Centres

6

22%

Government

1

4%

Green / Environmental Businesses

7

26%

Finance

0

0%

Construction

3

11%

Other Niche Service Businesses

2

7%

Agriculture

8

30%

Other

0

0%

Unique Respondents

27

Columbia Basin Business Retention and Expansion Project: Report on Boundary Businesses

80