COLUMBIA BASIN BUSINESS RETENTION AND EXPANSION PROJECT R EPORT ON S PARWOOD B USINESSES W INTER 2015 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 Sparwood Business Retention and Expansion project is a community-driven effort undertaken by the District of Sparwood focused on identifying the needs of our existing businesses. The project was undertaken with support from the Sparwood Chamber of Commerce. EXECUTIVE SUMMARY This report describes findings from a Business Retention and Expansion (BRE) survey conducted at 65 businesses in the District of Sparwood between 2013 and 2014. BRE is an action-oriented and community-based approach to business and economic development. It promotes job growth by helping communities to learn about concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. KEY RESEARCH FINDINGS Select survey results are summarized below. Survey Module Company Information Local Workforce Sales Facilities and Equipment Government Services Business Climate Finding The highest number of respondents’ businesses are classified as ‘Retail Trade’, ‘Construction’ and ‘Professional, Scientific and Technical Services’ under the North American Industry Classification system. Market opportunities was the most frequently cited reasons given for businesses to locate in Sparwood. Most companies have been in business for more than 20 years. Nearly half of the companies are ‘growing’. Respondents reported a total of 2140 employees; the population of Sparwood is 3,823. The majority of employees are full-time. First Aid and WHMIS as well as Business Management were most commonly listed as key training areas. 26% of businesses expect that their sales will grow by between 10 and 24% over the next year. 30% of businesses have their sales generated by their top 3 customers. Over half of businesses report that their sales are to customers within the community or region. Businesses would like to source office supplies, light bulbs, and concrete supplies from local suppliers. 48% of businesses own the facility in which they operate. Nearly half of businesses plan to expand within 3 years, with most indicating that expansion will occur within the community. Top barriers to expansion are lack of suitable premises and lack of skilled staff. Top rated government services include access to highways and roads, access to markets and availability of road transport services. The lowest ratings include availability of buildings for lease or purchase, access to airport facilities and availability of appropriately zoned land. Improving access to land for development, improvements to the development approval processes, and improvements to curbside recycling are the government services most in need of improvement The Calgary International Airport is the most used airport by local businesses. The overall business climate was rated as good, and the majority of businesses believe that the business climate will improve over the next five years. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Assessment and Plans Business climate factors that received the highest ratings include local government and the workforce quality. Businesses most commonly listed Sparwood’s proximity to Alberta and the United States, as well as its proximity to mines as its greatest strength as a place to do business. The business competitiveness factors that are most important to respondents include availability of telecommunications, infrastructure and services, improvement of customer service, and workforce skill development. The overall health of their company was rated as excellent by 45% of businesses, and good by 32% of businesses. Only 2% of businesses are at a high risk of closing or 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: Local Workforce With a population of 3,9271, and a total of 2,140 employees reported by businesses surveyed2, there is an indication that there may be a number of employees travelling from outside of Sparwood to work within the District. Actions related to this theme include exploring ways in which those employees can be engaged and or retained within the community. Related, are the critical considerations for employees identified which include housing, cost of living and childcare. Youth Employment The data indicates that employees under the age of 26 are in the minority. Increasing youth involvement in the local workforce could be encouraged through a better understanding of 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 45% of businesses in the region report being in a growth cycle, and 43% indicate that they are planning to expand within the next three years. Close to half of those businesses planning to expand do not feel their existing site is adequate, and that the majority of expansion plans will occur within the community. Assistance could come in the form of navigating local regulations, identifying and securing new sites, and connecting businesses with resources to assist in expansion 1 Source: BC Stats (2013). Population Estimates: Municipalities, Regional Districts and Development Regions 2011 - 2014 2 Note: 2,140 is the total number of employees/jobs in reported by businesses surveyed as part of this Business Retention and Expansion survey. There are businesses in Sparwood that were not surveyed under this project, jobs with those businesses are not reflected in this report. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses projects. Improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. These potential actions and any others, should be designed to address the stated barriers to expansion which include lack of suitable premises and lack of skilled staff. Economic Diversification A lack of diversification was sited most frequently by local businesses as one of Sparwood’s greatest weaknesses and its greatest barrier to growth. Businesses identified manufacturing, restaurants and tourism as the most important sectors to attract, but also indicated that the economic drivers with the highest future growth potential are tourism, construction and forestry. Actions to increase diversification could include working with local businesses to expand their customer base and increasing small business support programs, as well as working with industry in key areas to increase diversification of the local economy. Findings indicate that the majority of supplies come from outside the local region, and only 17% of supplies are sourced locally. The most common response (44%) for the reason why supplies are sourced outside of the local area is that they are not available locally. 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 with government procurement processes, with only 10% 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 A lack of technical training and colleges/universities were cited as factors contributing to a poor business climate. Businesses identified that training was needed in the areas of emerging technologies, skilled trades and health and safety. Improving technical training and workforce skill development is important for business competitiveness. Future initiatives could include supporting networks to help businesses identify shared training needs, and working with 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 both business and the community. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, and a stated preference for individual coaching, one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Government Services A recurring theme was the lack of buildings and land available for lease or purchase. With a large number of businesses planning expansions contingent on finding new space, there is an opportunity for the local government to work with local businesses to understand existing and Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses future business needs and assess land use planning at a micro level. Issues around the perceived lack of available land and servicing costs may be addressed through communication strategies between the local government, local businesses and the community. Opportunities may exist locally for changes to land use designations and zoning that could serve both the greater community and local businesses. Collaboration and dialogue with targeted businesses could produce valuable results and innovative solutions. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 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 ................................................................................................1 The BRE Survey ..................................................................................................................... 1 The Data Set.......................................................................................................................... 2 Data Collection ...................................................................................................................... 2 Data Input, Analysis and Reporting ........................................................................................ 2 Research Findings ..........................................................................................................3 Company Information ........................................................................................................... 3 Local Workforce .................................................................................................................. 10 Sales ................................................................................................................................... 20 Facilities and Equipment...................................................................................................... 25 Government Services .......................................................................................................... 33 Business Climate ................................................................................................................. 38 Assessment and Plans ......................................................................................................... 51 Recommendations ....................................................................................................... 54 Next Steps........................................................................................................................... 54 Potential Action Areas ......................................................................................................... 55 Appendix A: Data Tables .............................................................................................. 59 Company Information ......................................................................................................... 59 Local Workforce .................................................................................................................. 64 Sales ................................................................................................................................... 76 Facilities and Equipment...................................................................................................... 81 Government Services .......................................................................................................... 88 Business Climate ................................................................................................................. 91 Assessment and Plans ....................................................................................................... 103 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses LIST OF FIGURES Figure 1: Industry classification ........................................................................................................... 3 Figure 2: Facility function(s) ................................................................................................................ 4 Figure 3: Location of primary competitors .......................................................................................... 4 Figure 4: Key words and responses respondents' discussions of the factors that make them successful in this region....................................................................................................................... 5 Figure 5: Why did you choose this community to locate your business? ........................................... 6 Figure 6: Other Locations .................................................................................................................... 6 Figure 7: Location of Other Locations ................................................................................................. 6 Figure 8: Location of headquarters ..................................................................................................... 7 Figure 9: Life cycle stage...................................................................................................................... 7 Figure 10: Length of time in business .................................................................................................. 7 Figure 11: Type of business ................................................................................................................. 8 Figure 12: Ownership and management changes in last 5 years ........................................................ 8 Figure 13: Anticipated timeline for ownership change ....................................................................... 9 Figure 14: Anticipated exit strategy .................................................................................................... 9 Figure 15: Existence of formal succession plan ................................................................................... 9 Figure 16: Existence of current business plan ................................................................................... 10 Figure 17: Total number of employees ............................................................................................. 10 Figure 18: Nature of employment ..................................................................................................... 11 Figure 19: Historical Employment trend ........................................................................................... 11 Figure 20: Full-time employment trend over last 3 years ................................................................. 11 Figure 21: Full time employment trend over next 3 years ................................................................ 12 Figure 22: Age of the majority of essential employees ..................................................................... 12 Figure 23: Wages in relation to other businesses in the region ........................................................ 13 Figure 24: Trend in unfilled positions ................................................................................................ 13 Figure 25: Location of workforce recruitment .................................................................................. 13 Figure 26: Recruitment and retention challenges ............................................................................. 14 Figure 27: Key words and responses in respondents' discussion of retention efforts ..................... 14 Figure 28: Recruitment Activities ...................................................................................................... 15 Figure 29: Current recruitment areas................................................................................................ 15 Figure 30: Future areas where recruitment may be challenging ...................................................... 16 Figure 31: Strategies to overcome employee recruitment challenges ............................................. 16 Figure 32: Skill level of majority of workforce ................................................................................... 17 Figure 33: Training Budget ................................................................................................................ 17 Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills ...................................................................... 17 Figure 35: Training or professional development needs................................................................... 18 Figure 36: Areas for new Training in next five years ......................................................................... 18 Figure 37: Preferred modes of training ............................................................................................. 19 Figure 38: Usual training locations .................................................................................................... 19 Figure 39: Critical considerations for employees .............................................................................. 20 Figure 40: Annual sales ...................................................................................................................... 20 Figure 41: Status of market for product/service ............................................................................... 21 Figure 42: Market Share in Comparison to Competitors .................................................................. 21 Figure 43: Projected sales growth in the next year ........................................................................... 21 Figure 44: Historic sales trend at this location .................................................................................. 22 Figure 45: Historic sales trend at parent company ........................................................................... 22 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Figure 46: Historic sales trend within the industry ........................................................................... 22 Figure 47: Historical export sales trend............................................................................................. 23 Figure 48: Sales generated by top 3 customers ................................................................................ 23 Figure 49: Geographic source of majority of sales ............................................................................ 24 Figure 50: International trade status................................................................................................. 24 Figure 51: Engagement with government procurement processes .................................................. 24 Figure 52: Geographic source of majority of supplies....................................................................... 25 Figure 53: Reason for out-of-area purchasing................................................................................... 25 Figure 54: Size of facility .................................................................................................................... 26 Figure 55: Condition of facility .......................................................................................................... 26 Figure 56: Condition of equipment ................................................................................................... 26 Figure 57: Ownership status of facility .............................................................................................. 27 Figure 58: Length of time remaining on lease ................................................................................... 27 Figure 59: Historical Investment in facility (past 18 months)............................................................ 28 Figure 60: Room for expansion ......................................................................................................... 28 Figure 61: Plans to expand within three years .................................................................................. 28 Figure 62: Adequacy of current site to support expansion ............................................................... 29 Figure 63: Expansion to occur in community .................................................................................... 29 Figure 64: Estimated expansion investment ..................................................................................... 30 Figure 65: Component of expansion budget for equipment and technology ................................... 30 Figure 66: Component of expansion budget for real estate ............................................................. 30 Figure 67: Size of facility expansion .................................................................................................. 31 Figure 68: Recent facility upgrades ................................................................................................... 31 Figure 69: Planning facility upgrades................................................................................................. 31 Figure 70: Barriers to expansion........................................................................................................ 32 Figure 71: Organizations approached for expansion assistance ....................................................... 32 Figure 72: Considering energy efficiency in expansion plans ............................................................ 33 Figure 73: Awareness of BC Hydro Power Smart .............................................................................. 33 Figure 74: Rating of government services ......................................................................................... 35 Figure 75: Key words and responses in respondents' suggestions for improvements to government services .............................................................................................................................................. 37 Figure 76: Airport service used.......................................................................................................... 37 Figure 77: New services at local airport (Canadian Rockies International Airport) .......................... 38 Figure 78: Rating of local business climate ....................................................................................... 38 Figure 79: Rating of business climate factors .................................................................................... 39 Figure 80: Business climate today vs. 5 years ago............................................................................. 41 Figure 81: Business climate 5 years from today ................................................................................ 41 Figure 82: Community’s strengths as a place to do business............................................................ 42 Figure 83: Community's weaknesses as a place to do business ........................................................ 43 Figure 84: Barriers to growth in the community ............................................................................... 44 Figure 85: Level of service from business support providers ............................................................ 45 Figure 86: Potential Suppliers............................................................................................................ 46 Figure 87: Supply to local companies ................................................................................................ 47 Figure 88: Sectors, businesses or industries that could be attracted to region ................................ 47 Figure 89: Importance of business competitiveness factors............................................................. 48 Figure 90: Performance on key productivity drivers ......................................................................... 49 Figure 91: Economic drivers with greatest growth potential ............................................................ 50 Figure 92: Impact of Proximity to Alberta ......................................................................................... 51 Figure 93: Facility’s overall health ..................................................................................................... 51 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Figure 94: Overall health of parent company ................................................................................... 52 Figure 95: Local management's attitude toward community ........................................................... 52 Figure 96: Parent company's attitude toward local community ....................................................... 52 Figure 97: Risk of facility closing........................................................................................................ 53 Figure 98: Risk of facility downsizing ................................................................................................. 53 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses PROJECT OVERVIEW This report describes findings from a Business Retention and Expansion (BRE) survey3 conducted in the District of Sparwood during 2013/2014. The Business Development Liaison at The District of Sparwood acted as the community lead for the 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 the concerns of, as well as opportunities for, local businesses and to set priorities for projects to address those needs. Ultimately, communities will have greater success in attracting new businesses if existing businesses are content with local economic conditions and community support. Business development and job creation are key factors in fostering healthy and vibrant communities— depending on the characteristics of a community’s economy, anywhere from 40 to 90 per cent of new jobs come from existing businesses. PROJECT OBJECTIVES Objectives specific to the Sparwood BRE project were as follows: 1. Identify the needs, concerns, and opportunities of existing local businesses in order that, where appropriate, local action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s local businesses with respect to expansion, relocation and /or retention 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 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 3 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 Sparwood Businesses 1 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 DATA SET To generate an initial set of potential research participants, local business license databases and the Chamber of Commerce membership list was utilised. Invitations to participate were extended to all businesses via personal letters sent out from the District of Sparwood Business Development Liaison. Following this communication follow up calls were made to arrange interviews. In addition to face to face interviews, the option to participate via an online survey was offered. Businesses were surveyed in two different ways: individual face-to-face interviews and an online survey. 18 respondents chose the online survey, while 47 respondents were individually interviewed. In total 65 respondents participated in the BRE survey. The number of respondents to each question varies depending on whether they participated in the online survey, or the structured individual survey, as some questions were omitted from the online survey. In addition, the number of respondents can vary based on responses to dependent questions. DATA COLLECTION The Business Development Liaison staff was solely responsible for the entire survey process. This included arranging and undertaking the structured interviews which took between 1 to 1.5 hours, plus data entry. In total the process took approximately 3 hours per interview. DATA INPUT, ANALYSIS AND REPORTING Data was entered into the ExecutivePulse system by the Business Development Liaison staff immediately following the interviews. To ensure confidentiality and data security, company-level data was only made accessible to RDI staff and the Business Development Liaison staff. Quantitative data were analysed using descriptive statistics and qualitative data were analysed using the grounded theory method of generating key coding themes. Based on the results of data analysis activities, an initial set of recommendations was generated by RDI and then reviewed with the Business Development Liaison staff. Findings and related recommendations were assembled into this report by RDI researchers. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 2 RESEARCH FINDINGS COMPANY INFORMATION Type of Product/Service Offered Businesses interviewed represent a diverse cross-section of industries. Most common are Construction (14% or 9 respondents), Professional, Scientific and Technical Services (14% or 9 respondents), and Retail Trade (14% or 9 respondents). Figure 1: Industry classification Construction 14% Professional, Scientific and Technical Services 14% Retail Trade 14% Other Services 12% Accommodation and Food Services 6% Real Estate and Rental and Leasing 6% Wholesale Trade 5% Manufacturing 5% Transportation and Warehousing 5% Health Care and Social Assistance 5% Finance and Insurance 5% Information and Cultural Industries 3% Mining, quarrying, and oil and gas extraction 3% Educational Services 2% Arts, Entertainment and Recreation 2% Agriculture, forestry, fishing and hunting 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 65 respondents Facility Function The majority of respondents (47% or 35 respondents) indicated that their facility provides services. Other primary functions include distribution (22% or 16 respondents) and warehousing (12% / 9 respondents). Fewer respondents indicated that their facility serves as company headquarters, engineering/R&D or for manufacturing purposes. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 3 Figure 2: Facility function(s) Services 47% Distribution 22% Warehousing 12% Engineering/RD 8% Headquarters 8% Manufacturing 3% 0% 10% 20% 30% 40% 50% Note: 47 respondents Competition The vast majority of competition (75 % or 55 responses) reported was coming from the local or regional area4. Figure 3: Location of primary competitors Local / regional Alberta Elsewhere in BC International National 75% 11% 7% 5% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 47 respondents 4 Multiple competitors were listed by respondents resulting in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 4 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 (21 % or 11 businesses) cited Location. Service (19% or 10 businesses), strong community (12% or 6 businesses), and limited competition (10% or 5 businesses) were also discussed frequently. “Give 100%, open and honest and provide a good service.” “Ability to service the mines well.” “Businesses are interdependent in this community. Work closely with other companies and work with the mine. Family-based business, has gained trust from the community and grown with the community.” “Location. Reasonable tax base and the ability to service a variety of regional locations from one site.” Choosing Sparwood The market opportunities (34% or 17 respondents) and the proximity to mines (22% or 11 respondents) were the most frequently cited reasons given for businesses to locate in Sparwood. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 5 Figure 5: Why did you choose this community to locate your business? Market opportunity Proximity to mines No response Community Location Sparwood is home Growing industry Availability of land Hobby turned into a business 34% 22% 20% 6% 6% 4% 4% 2% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Other Locations 55% of respondents (26 respondents) indicated that their company has other locations. Figure 6: Other Locations Yes 55% No 28% No Response 17% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents 52% of those other locations (22 respondents) are in other areas of the province, 31% (13 respondents) are in other parts of Canada and 17% (7 respondents) indicated that their company has another location outside of Canada. 5 Figure 7: Location of Other Locations In Province Elsewhere in nation Outside Canada 52% 31% 17% 0% 10% 20% 30% 40% 50% 60% Note: 26 respondents 5 Responses reflect that respondents can have other locations in more than one other location. Therefore total number of other locations exceeds number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 6 28% (13 businesses) of respondents reported that their headquarters are located in British Columbia, 26% (12 businesses) indicated that they are headquartered elsewhere in Canada and 6% (3 businesses) indicated that their headquarters are located in another country. Figure 8: Location of headquarters No Response In Province Elsewhere in nation Outside Canada 40% 28% 26% 6% 0% 10% 20% 30% 40% 50% Note: 47 respondents Age and Life Cycle Stage Nearly half of respondents (45% or 21 respondents) reported that their business is in the ‘growing’ life cycle stage. Another 36% (17 businesses) indicated that their business is in the ‘maturing’ stage. Only 2% (1 business) indicated that they are in the ‘emerging’ stages, and no businesses indicated that they were declining. Figure 9: Life cycle stage No Response Growing Maturing Emerging Declining 17% 45% 36% 2% 0 0 0.1 0.2 0.3 0.4 0.5 Note: 47 respondents Most businesses (28 respondents or 43%) reported that they have been in business for more than 20 years. A significant number have reported that they have been in business for 1 – 4 years (15 respondents or 23%) and 5 – 9 years (12 respondents or 18%). Figure 10: Length of time in business more than 20 years 10-19 years 5-9 years 1-4 years less than 1 year 43% 8% 18% 23% 8% 0% 10% 20% 30% 40% 50% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 7 Ownership and Management Most respondents (42 respondents or 65%) indicated that their business is classified as a corporation, while 18% (12 respondents) indicated that they are a sole proprietorship. The remainder of businesses are registered as a partnership (3 respondents), non-profit (2 respondents), other type of business (2 respondents), or limited liability partnership (1 respondent). Figure 11: Type of business Corporation Sole Proprietorship Partnership No Response Other Non-Profit Limited Liability Partnership 65% 18% 5% 5% 3% 3% 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents 49% of businesses (23 businesses) have not seen a management or ownership change in the last 5 years, while 34% of businesses (16 businesses) have changed management and/or ownership over that same period of time. Six businesses (9%) are expecting an ownership change in the near future. Of the 16 respondents that have seen changes in management and or ownership, 56% (9 businesses) report that change has had a positive impact. Figure 12: Ownership and management changes in last 5 years No Yes No Response 49% 34% 17% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents Succession and Business Plans Of the six businesses that responded and reported a pending ownership change, 2 expect the change will happen in a year or less and 2 expect the process to take 3 years or more. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 8 Figure 13: Anticipated timeline for ownership change 1 year or less 33% No Response 33% 3 years or more 33% 0% 5% 10% 15% 20% 25% 30% 35% Note: 6 respondents 33% of respondents (2 respondents) expect that the current owner will exit the business by selling it to another company, while only 17% (1 respondent) expect it to be sold/transferred to either a family member of non-family member. Figure 14: Anticipated exit strategy No Response 33% Sell to another company 33% Sell/transfer to a non-family member 17% Sell/transfer to a family member 17% 0% 5% 10% 15% 20% 25% 30% 35% Note: 6 respondents Figure 15: Existence of formal succession plan Not applicable 43% Yes 28% Only 28% (18 respondents) of respondents reported that they have a formal succession plan in place. No 29% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 9 Figure 16: Existence of current business plan No Response 11% Nearly half of all respondents (32 respondents) indicated that they have a business plan in place. Yes 49% No 40% Note: 65 respondents LOCAL WORKFORCE Size of Workforce The 65 businesses interviewed reported a total of 2,140 employees6. 45 % or 29 of the businesses surveyed indicated that they have less than five employees and just 3% or 2 of the businesses indicated that they have over 100 employees. Figure 17: Total number of employees Less than 5 5-9 10-19 20-49 50-99 Over 100 45% 0% 31% 14% 8% 3% 0% 10% 20% 30% 40% 50% Note: 65 respondents 80% (1,712) of employment positions at surveyed businesses are full-time, while only 8% (169) are part-time and 12% (259) are temporary. 6 The employee count for one employer was averaged between two disparate numbers given. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 10 Figure 18: Nature of employment Full Time 80% Temporary 12% Part Time 8% 0% 20% 40% 60% 80% 100% Note: 65 respondents 37% of respondents (24 businesses) indicated that the number of employees at their business has stayed the same historically. While 29% (19 businesses) indicated that the size of their workforce has increased. Only 6% (4 businesses) indicated a decrease. Figure 19: Historical Employment trend 7 Stayed the Same 37% No Response 29% Increased 28% Decreased 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 65 respondents The last three years has seen increased and stable growth in the size of the full-time workforce, with 36% of businesses (17 respondents) reporting an increase in the number of employees, and 32% (15 respondents) reporting that full-time employment over that three year time period has remained constant. Figure 20: Full-time employment trend over last 3 years Increased 36% Stayed the same 32% No Response 28% Decreased 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents 7 The question considered a 10 year historical trend. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 11 40% of businesses (19 respondents) interviewed expect the size of their full-time workforce will increase over the next 3 years, while 13% (6 respondents) expect it to stay the same. No businesses indicated they expected a decrease over the next 3 years. Figure 21: Full time employment trend over next 3 years No Response 47% Will Increase 40% Stay the Same 13% 0% 10% 20% 30% 40% 50% Note: 47 respondents Workforce Demographics Of the responses received, 36% (17 responses) indicated that the majority of their essential employees are between 35 and 49 years old. There were no reported essential employees less than 25 years of age. Figure 22: Age of the majority of essential employees No Response under 25 26 - 34 35 - 49 50 or older 26% 0% 23% 36% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Wages When reporting on average wages for skilled or professional workers, the majority of responses (35% or 23 businesses) indicated they pay between $30 and $49 per hour. The most commonly reported average wage for semi-skilled workers (25% or 16 businesses) was under between $20 and $29 and the most commonly reported average wage for entry-level workers (11% or 7 businesses of respondents) was $20 to $29. 28% of respondents (13 respondents) reported that their wage scale is similar to other businesses in the region.8 8 Detailed wage data is found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 12 Figure 23: Wages in relation to other businesses in the region No Response 38% Same 28% Greater than 17% Less than 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Recruitment and Retention Of those businesses that responded, 23% (11 respondents) indicated that the number of unfilled positions at their company would remain constant. Figure 24: Trend in unfilled positions No Response Staying the Same Decreasing Increasing 55% 23% 11% 11% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents The majority of respondents (65% or 42 respondents) reported that they primarily recruit employees from local labour markets. 8% (5 respondents) recruit nationally, while 6% (4 respondents) report that they recruit provincially. It is worth noting that no businesses reported international recruitment. Figure 25: Location of workforce recruitment Local 65% No Response 22% National 8% Provincial 6% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents Of the 65 respondents, 49% (32 respondents) indicated that they have experienced recruitment challenges and 26% (17 respondents) indicated that they have experienced retention challenges. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 13 Figure 26: Recruitment and retention challenges Recruitment challenges 49% Retention challenges 26% 0% 10% 20% 30% 40% 50% 60% Note: 65 respondents When asked what efforts their business has undertaken to retain employees, 44 businesses responded. The most frequent response was to provide flextime (13% or 6 respondents). Bonuses (9% or 4 respondents) and training opportunities (7% or 3 respondents) were other strategies employed. Other factors cited by businesses include offering benefits (4% or 2 respondents), pensions (4% or 2 respondents), health and wellness opportunities (2% or 1 respondent) and profit sharing (2% or 1 respondent). Figure 27: Key words and responses in respondents' discussion of retention efforts “Offer good flexibility and also make sure to treat staff well in all aspects of employment.” “Involve staff in new business process so that they can select work that they enjoy doing.” In their discussions of the reasons for their retention challenges, respondents most often cited competition from Teck, as well as competition from other employers where wages are higher. When asked what efforts businesses have undertaken to recruit employees, efforts that emerged most often were advertisements (14% or 7 respondents), online job boards (8% or 4 respondents) and local newspapers (6% or 3 respondents). Respondents also cited using word of mouth, recruitment agencies, training, referrals and job fairs. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 14 Figure 28: Recruitment Activities No Response Advertising Online Job Board Newspaper Word of Mouth Recruitment Agency Referrals Training Job Fairs 59% 14% 8% 6% 4% 4% 2% 2% 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 44 respondents Of the 27 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include mechanics (13% or 6 respondents), electrical (10% or 5 respondents), sales/service, sales/retail, and administrative/clerical personnel were all cited by 6% or 3 respondents as current areas of recruitment. The responses included in the ‘other’ and ‘professional other’ categories charted below are detailed in Appendix A. Figure 29: Current recruitment areas Other 31% Mechanics 13% Electrical/Electronics 10% Sales/Service 6% Administrative/Clerical 6% Sales/Retail 6% General Laborer 4% Professional/Technical 4% Machinists 4% Professional/Other 2% Machine Operators 2% Food/Beverage Service 2% Material/Fabricators 2% Construction/Contractors 2% CDL Drivers 2% Hospitality Service 2% 0% 5% 10% 15% 20% 25% 30% 35% Note: 27 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 15 52% of respondents (34 businesses out of 65 respondents) anticipate future recruitment difficulties. The most commonly anticipated recruitment areas which may prove challenging include mechanics (13% or 7 respondents), sales/retail and electrical/electronics (7% or 4 respondents) and machinists and professional/technical (5% or 3 respondents). Figure 30: Future areas where recruitment may be challenging Other 34% Mechanics 13% Sales/Retail 7% Electrical/Electronics 7% Professional/Technical 5% Machinists 5% Material/Fabricators 4% Professional/Other 4% General Laborer 4% Sales/Service 4% CDL Drivers 4% Maintenance 2% Food/Beverage Service 2% Hospitality Service 2% Construction/Contractors 2% Machine Operators 2% Administrative/Clerical 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 28 respondents 25% of respondents (16 respondents) indicated that they believed that there were strategies that could be undertaken to address employee recruitment, however, few suggestions were available on what could be done to overcome employee recruitment issues. Only two suggestions were offered: provide a better community for families and encourage spouses to engage in the service sector. Figure 31: Strategies to overcome employee recruitment challenges No Response 49% No 26% Yes 25% 0% 10% 20% 30% 40% 50% 60% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 16 Skills and Training The majority of respondents (63%) indicated that over half of their workforce is comprised of skilled or professional workers, 27% indicated that their workforce is mainly semi-skilled workers and 9% indicated that entry-level workers make up the majority of their workforce. Figure 32: Skill level of majority of workforce Entry-Level 9% Semi-Skilled 27% Skilled / Professional 63% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents 52% (34 businesses) indicated that there is a training budget to upgrade employee skills. 68% (32 businesses) indicated that their company offers in-house training and 49% (23 businesses) use contracted training. Figure 33: Training Budget Yes 52% No 34% No Response 14% 0% 10% 20% 30% 40% 50% 60% Note: 65 respondents 32% of respondents (15 businesses) indicated that they were aware of trends, technologies, and other significant changes that will be occurring in their industry that will require new skills. Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills No 43% Yes 32% No Response 26% 0% 10% 20% 30% 40% 50% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 17 49% or 23 respondents indicated that there are areas of training or professional development that would benefit their employees. Most commonly listed among these areas were First Aid and WHMIS training (38% or 6 businesses) and business/management training (31% or 5 businesses). All other areas were tied with only one business (equivalent of 6%) listing these areas of training need. Figure 35: Training or professional development needs First Aid and WHMIS 38% Business Management 31% Warehouse Training 6% Sales 6% Heavy Equipment Training 6% Heavy Duty Mechanic Apprenticeships 6% Welding Apprenticeships 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents When asked what new training might need to be considered in the next five years, the most commonly cited response was in the area of technological advances (10% or 7 businesses). Other areas where training will be needed include skilled trades (7% or 5 businesses) and health and safety (6% or 4 businesses). Figure 36: Areas for new Training in next five years No Response 64% Technology advances 10% Skilled Trades 7% Health and safety 6% Water management 3% Robotics 3% Civil engineering 1% Electronics 1% Computer skills 1% Communication skills 1% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 18 29% of respondents (22 businesses) stated that they prefer training when it is delivered through an individual coaching format, while 27% (20 businesses) preferred online or a webinar style format, 21% or 16 businesses expressed a preference for classroom style training. Figure 37: Preferred modes of training Individual coaching 29% Online/ Webinar training 27% Classroom 21% No Response 19% Other 4% 0% 5% 10% 15% 20% 25% 30% 35% Note: 47 respondents 26% of respondents (15 businesses) typically seek training opportunities that are offered locally, and 16% (9 businesses) travel to other areas in the region for their training. Fewer training opportunities are sought elsewhere in the province, country or in the United States. Figure 38: Usual training locations No Response 42% Local 26% Regional 16% Rest of Canada 7% British Columbia 5% United States 4% 0% 10% 20% 30% 40% 50% Note: 47 respondents Unions Seven businesses (15%) reported that they have union status. Employees The most frequently cited critical issues for employees is housing (29% or 35 businesses) and cost of living (27% or 32 businesses). Child Care (17% or 20 businesses) and Transportation (8% or 10 businesses) issues were also cited. For a list of factors included in the “other” category charted below, see Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 19 Figure 39: Critical considerations for employees Housing 29% Cost of living 27% Child care 17% Other 13% Transportation 8% No Response 7% 0% 5% 10% 15% 20% 25% 30% 35% Note: 63 respondents 46% of businesses (29 businesses) interviewed reported that over 75% of their employees live within the community, 8% (5 businesses) indicated that 75% of the employees live elsewhere in the region and 2% (1 business) indicated that they live outside of the region. SALES Market Size and Share The highest number of respondents (14 businesses or 22%) reported annual sales between $1 million and $4.99 million. The second highest number of respondents (12 businesses or 18%) reported annual sales over $5 million. The lowest number (2 businesses or 3%) reported sales of between $500,000 - $999,999. 37% (24 businesses) of respondents did not share annual sales information. Figure 40: Annual sales Confidential/ no response 37% Under $100,000 12% $100,000 to $499,999 8% $500,000 to $999,999 3% $1million to $4.99 million 22% over $5 million 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 65 respondents The majority of businesses interviewed (45% or 29 businesses) indicated that the size of the market for their product or service is stable. Another 40% (26 businesses), reported that the market is increasing. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 20 Figure 41: Status of market for product/service Stable Increasing Decreasing No Response 45% 40% 11% 5% 0% 10% 20% 30% 40% 50% Note: 65 respondents 36% (17 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is increasing, while 32% (15 businesses) indicated that it is stable. A small number of respondents (9% or 4 businesses) indicated that their market share is decreasing. Figure 42: Market Share in Comparison to Competitors Increasing Stable Decreasing No Response 36% 32% 9% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Growth 23% of respondents (11 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 23% of respondents (11 businesses). 9% of respondents (4 businesses) expect strong growth in the next year. 9% (4 businesses) of respondents expect their sales to remain stagnant, while a further 2% (1 business) expects sales to decline. Figure 43: Projected sales growth in the next year 0% 1-9% 10-24% 25-49% 50% - 99% 100% or more Declining Confidential/ no response 9% 23% 26% 6% 0% 9% 2% 26% 0% 5% 10% 15% 20% 25% 30% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 21 The majority of responses (32% or 21 businesses) indicated that sales at their business have increased over time, 14% (9 businesses) indicated that sales have remained relatively stable and 8% (5 businesses) reported that sales have declined. Figure 44: Historic sales trend at this location No Response Increasing Staying the same Decreasing 46% 32% 14% 8% 0% 10% 20% 30% 40% 50% Note: 65 respondents Data indicates that the sales trend at parent companies is different from sales trends at this location. 25% or 16 businesses reported that sales at their parent company have historically increased and only 3% (2 businesses) reported that they have stayed the same, while 2% or 1 business reported a decline. It is worth noting that 71% of surveyed participants did not respond to this question. Figure 45: Historic sales trend at parent company Not Applicable/No response Increasing Staying the same Declining 71% 25% 3% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 65 respondents Data indicates that the sales trend within respondents’ respective industries has followed the sales trend reported for parent company’s. 25% percent of respodents (16 businesses) reported that sales within their industry have been increasing while 6% (4 businesses) reported that they have been decreasing. Figure 46: Historic sales trend within the industry Not Applicable/No response 65% Increasing 25% Staying the same 5% Declining 6% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 22 Anecdotal information provided indicates that sales for companies related to the coal mine are closely linked to the coal market and to mine activities. Of the four businesses that reported exporting to international markets, 4% (2 businesses) indicated that their export sales have been increasing and 2% (1 business respectively) indicated that they have been stable or are in decline. Figure 47: Historical export sales trend Not Applicable/No response Increasing Staying the same Declining 91% 4% 2% 2% 0% 20% 40% 60% 80% 100% Note: 47 respondents Source of Sales The customer base among Sparwood businesses appears to be fairly reliant on a core customer base, with the largest percentage of respondents (30% or 19 businesses) indicating that 76% 100% of their sales are generated by their top 3 customers. There does appear to be some diversity as indicated by the 19% of respondents (12 businesses) that indicated that less than 10% of their sales are generated by their top 3 customers. Figure 48: Sales generated by top 3 customers 76 - 100% 51 - 75% 26 - 50% 10 - 25% 1 - 9% No Response 30% 6% 6% 10% 19% 29% 0% 5% 10% 15% 20% 25% 30% 35% Note: 63 respondents A majority of respondents (62%) indicated that over 50% of their sales are to customers within the community or region. 13% indicated that over 50% of their sales are within the province. Fewer respondents (5%, 2%, 2%) indicated that the majority of their sales are to national, US or international markets, respectively. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 23 Figure 49: Geographic source of majority of sales Local International Provincial National United States 62% 2% 13% 5% 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 47 respondents Six respondents (13%) indicated that they import goods or services from other countries and 1 respondent (2%) indicated that they export goods or services to other countries. 85% of respondents did not respond to the question, or stated they did not engage in international trade. Figure 50: International trade status None/ not applicable Import Export 85% 13% 2% 0% 20% 40% 60% 80% 100% Note: 47 respondents Procurement Figure 51: Engagement with government procurement processes Yes 10% No 22% Of the 18 responses provided, only 10% indicated that they do engage in government procurement. No Response 68% Note: 63 respondents 17% of respondents (6 businesses) interviewed reported that they purchase a majority of their supplies from local sources. 34% (19 businesses) indicated that the majority of their supplies come from businesses located within the province. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 24 Figure 52: Geographic source of majority of supplies Local National Provincial United States International 17% 23% 34% 9% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the most common response (44% or 21 businesses) indicated that the products they need are not available locally. Figure 53: Reason for out-of-area purchasing No Response Other Product not available here Higher costs locally No applicable to this business No control, head office decision 33% 6% 44% 6% 6% 4% 0% 10% 20% 30% 40% 50% Note: 44 respondents Products that businesses stated they would like to source from a local supplier include office supplies, light bulbs, and concrete supplies. FACILITIES AND EQUIPMENT Size and Condition 34% (22 businesses) of respondents reported that their facility is between 1,000 and 4,999 square feet in size, and another 23% (15 businesses) indicated it was less than 1,000 square feet. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 25 Figure 54: Size of facility No Response Less than 1,000 sq ft 1,000 to 4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more 22% 23% 34% 12% 5% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 65 respondents 34% of respondents (16 businesses) indicated that their facility is in good condition. Another 21% (10 businesses) indicated that it is in excellent condition and 19% (9 businesses) reported that their facility is in fair condition. Only 6% (3 businesses) reported that their facility was in poor condition. Figure 55: Condition of facility Excellent Good Fair Poor No Response 21% 34% 19% 6% 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents 26% (12 businesses) of respondents indicated that their equipment is in excellent condition. 30% (14 businesses) indicated that it is in good condition and 11% (5 businesses) report their equipment is in fair condition. Figure 56: Condition of equipment Excellent Good Fair Poor No Response 26% 30% 11% 4% 30% 0% 5% 10% 15% 20% 25% 30% 35% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 26 Ownership Figure 57: Ownership status of facility No Response 14% 48% of respondents (31 businesses) own the facility in which they operate and 38% (25 businesses) lease it. Owned 48% Leased 38% Note: 65 respondents Of the 25 businesses that lease their facility, 24% have less than a year remaining on their lease and 16% have between 3 and 5 years remaining. The majority of respondents that lease their facility (64% or 16 businesses) intend to renew their current lease agreement. Figure 58: Length of time remaining on lease No Response Less than 1 yr 1-2 Years 3-5 yrs More than 5 yrs 52% 24% 4% 16% 4% 0% 10% 20% 30% 40% 50% 60% Note: 25 respondents Investment and Expansion 21% of respondents (10 businesses) indicated that their company’s investment in their facility has increased over the past 18 months, while just 9% or four businesses, indicated that the investment has stayed the same. Only one business (2%) indicated that investment in their facility has decreased over the same time period. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 27 Figure 59: Historical Investment in facility (past 18 months) No Response 68% Increasing 21% Staying the same 9% Declining 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 47 respondents An equal number of respondents (25% or 16 businesses) indicated that there was room for expansion at their site, and that there was not room at their site. Figure 60: Room for expansion No Response 46% No 25% Yes 25% Maybe 5% 0% 10% 20% 30% 40% 50% Note: 65 respondents Figure 61: Plans to expand within three years No Response 26% Yes 43% 43% of respondents (28 businesses) plan to expand within three years, 31% (20 businesses) do not. No 31% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Note: 65 respondents 28 Figure 62: Adequacy of current site to support expansion Of the 28 businesses planning expansion, 46% (13 businesses) reported that their current site will be adequate. Notably however, 12 businesses (43%) reported that they will have to look for a new site to meet their planned expansion needs. No Response 11% Adequate 46% Inadequate 43% Note: 28 respondents Most respondents (46% or 13 businesses) indicated that expansion will occur within the community. Figure 63: Expansion to occur in community No Response Yes No 43% 46% 11% 0% 10% 20% 30% 40% 50% Note: 28 respondents In total, 4 of the 28 businesses identified the approximate amounts they plan to spend on expansion related investments. A substantial investment is planned for 1 business, with a $20 million investment planned, while 2 are planning investments in the range of $1 – $4.9 million, and finally 1 other business reported that it plans a relatively modest investment of between $100,000 and $499,999. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 29 Figure 64: Estimated expansion investment No Response $20 million and over $5 - 19.9 million $1-$4.9 million $500,000 - $999,999 $100,000-$499,999 $0 - $99,000 86% 4% 0% 7% 0% 4% 0% 0% 20% 40% 60% 80% 100% Note: 28 respondents Of the 28 businesses planning expansion, two (7%) responded to state that they expect to spend 30 – 39% of their expansion budget on equipment and technology, while 1 (4%) responded to indicate their entire expansion budget will be devoted to equipment and technology. Figure 65: Component of expansion budget for equipment and technology No Response 0 - 29% 89% 0% 30 to 39% 40 - 99% 7% 0% 100% 4% 0% 20% 40% 60% 80% 100% Note: 28 respondents Of the 28 businesses planning investment in real estate, 1 respondent expects to spend between 10% and 19% of their expansion budget on real estate, while another business expects to spend between 70 – 79% and one business indicate it anticipates spending 100% on real estate. Figure 66: Component of expansion budget for real estate No Response 0-10% 10 - 19% 20 - 69% 70 to 79% 80 - 99% 100% 89% 0% 4% 0% 4% 0% 4% 0% 20% 40% 60% 80% 100% Note: 28 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 30 Of the 28 possible respondents, 3 responses were provided. 1 respondent (4%) indicated that they expect the size of their facility expansion will be 20,000 square feet or greater. While 2 reported (7%) their expansion would be between 5,000 and 9,999 square feet. Figure 67: Size of facility expansion No Response 89% 5,000-9,999 sq ft 7% 20,000 sq ft or more 4% 0% 20% 40% 60% 80% 100% Note: 28 respondents Facility Upgrades 47% of businesses (22 businesses) indicated that there had been recent facility upgrades. Of those 22 businesses, 23% indicated that those upgrades were completed in the last 12 months. Figure 68: Recent facility upgrades Yes 47% No 17% No Response 36% 0% 10% 20% 30% 40% 50% Note: 47 respondents 26% (12 businesses) indicated that they are planning facility upgrades, and that the marjority (33% or 4 businesses) of those planning upgrades will occur in the next 12 months. Respondents were also asked to identify any barrier to upgrading, only 1 respondent provided a response to indicate that they are waiting for a new facility. Figure 69: Planning facility upgrades Yes 26% No 38% No Response 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 31 Respondents cited a variety of factors that act as barriers to their expansion. Most common of those were lack of suitable premises (19% or 12 businesses), and a lack of skilled staff (12% or 5 businesses). Other responses are listed in Appendix A. Figure 70: Barriers to expansion Other 29% Lack of suitable premises 19% No Response 17% Lack of skilled staff 12% Finance 7% Local regulations (zoning) 7% Problems with Development Approvals 5% Identifying and accessing new markets 5% 0% 5% 10% 15% 20% 25% 30% 35% Note: 28 respondents 25% of respondents (5 of 20 businesses) indicated that they have sought assistance with their expansion efforts from an external organization. Of those businesses, the highest number (14% or 4 businesses) had approached the local economic development office, 7% (2 businesses) had approached the local Chamber of Commerce, and 7% (2 businesses) had approached the local Council. Figure 71: Organizations approached for expansion assistance No Response 54% Local Economic Development Office 14% Other 11% Chamber of Commerce 7% Local Council 7% BC Hydro 4% BC Ministry responsible for Economic… 4% 0% 10% 20% 30% 40% 50% 60% Note: 20 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 32 Energy Efficiency Figure 72: Considering energy efficiency in expansion plans 30% of those who responded (13 businesses) are considering energy efficiency in their expansion plans. No 7% Yes 30% No Response 64% Note: 44 respondents Figure 73: Awareness of BC Hydro Power Smart No 15% No Response 32% 53% of respondents (25 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. Yes 53% Note: 47 respondents GOVERNMENT SERVICES Respondents were asked to rate a list of government services as poor, fair, good or excellent. Respondents also had the option to rate a service as not applicable to their business.  The services that received the highest number of POOR ratings were availability of buildings for lease or purchase (48% or 31 businesses), access to airport facilities (29% or 19 businesses), and availability of appropriately zoned land (26% or 17 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 33     The services that received the highest number of FAIR ratings were access to airport facilities (31% or 20 businesses), disposal of waste material (22% or 14 businesses), and access to suppliers (22% or 14 businesses). The services that received the highest number of GOOD ratings were telecommunications (55% or 36 businesses), access to the US border (51% or 33 businesses) and access to highways/roadways (49% or 32 businesses). The services that received the highest number of EXCELLENT ratings were access to highways/roads (32% or 21 businesses), access to markets (28% or 18 businesses) and availability of road transport services (26% or 17 businesses). The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (77% or 50 businesses), availability of rail transport (71% or 46 businesses) and the developmental approval process (51% or 33 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 34 Figure 74: Rating of government services Availability of warehousing Availability of road transport services 8% 18% 12% 14% 48% 26% 37% 11% 6% 20% 3% Availability of rail transport 17% 2% 8% 0% Availability of buildings for lease or purchase 71% 11% 15% 48% 26% 0% 17% 15% 26% Availability of appropriately zoned land 6% Access to suppliers Access to markets 22% 11% 17% 42% Access to Port Facilities % Poor % Not Applicable 11% 6% 15% 9% 0% 9% 49% 23% 31% 29% 15% 20% Access to US Border % Fair 28% 40% 2% Access to airport facilities % Good 45% 32% Access to highway/ roads % Excellent 8% 3% 18% 2% 9% 5% 8% 51% 77% 0% 20% 40% 60% 80% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 35 14% Water and sewerage supply 40% 11% 9% 26% 6% Telecommunications (internet, cell) 55% 17% 11% 11% 15% Recycling 40% 17% 14% 14% % Good % Fair 11% Inspections /licensing 6% 38% 14% 22% 8% 5% % Not Applicable 34% 26% 8% Development approval process % Poor 31% 11% Disposal of waste material % Excellent 23% 14% 51% 0% 10% 20% 30% 40% 50% 60% Note: 65 respondents When asked whether there were any suggestions on how to improve any of the services and infrastructure, 55% respondents (26 businesses) indicated they had suggestions. The highest number of responses (36% or 9 businesses) discussed improvements to make commercial and industrial land available for development. Improvements to the development approval process were also referenced by 20% (5 businesses) of respondents. Improvements to curbside recycling opportunities was referenced by 16% of respondents (4 businesses). The following excerpts illustrate the sentiment towards increasing development opportunities in Sparwood: “The district needs to accumulate more land and make it more accessible to set up a business.” “Dire need to develop more industrial land for development.” “Additional development of industrial land would be positive.” Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 36 “Increase awareness on the various developments and services available for businesses.” Figure 75: Key words and responses in respondents' suggestions for improvements to government services “Need a community liaison officer to communicate with local businesses.” “We work alongside the District to try and get land moving, there are some real challenges to progress with the main one being the simple economics.” “There should be a curbside recycling program.” “There should be more promotion of commercial buildings that are available.” Airport Service The Calgary International Airport is the most used airport, with 36% of respondents (25 businesses) indicating they use that airport. The Canadian Rockies International Airport (Cranbrook) was second most used with 29% (20 businesses), and the Glacier Park International Airport being used by 16% of respondents (11 businesses). Figure 76: Airport service used Calgary 36% Cranbrook 29% Glacier Park International Airport 16% No Response 19% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 47 respondents Respondents indicated that they would most like to see a wider choice of airlines and destinations (15% or 7 businesses), with 2 % of respondents (1 business) each indicating a desire for larger planes, more commuter flights to Vancouver and Kelowna, and car rental services. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 37 Figure 77: New services at local airport (Canadian Rockies International Airport) Wider choice of airlines/destinations Car rental services More commuter flights to Vancouver… Larger planes No Response 15% 2% 2% 2% 78% 0% 20% 40% 60% 80% 100% Note: 47 respondents BUSINESS CLIMATE Quality of Business Climate The majority of responses rated the overall business climate as good (45% or 29 businesses). Figure 78: Rating of local business climate No Response Excellent Good Fair Poor 8% 6% 45% 31% 11% 0% 10% 20% 30% 40% 50% Note: 65 respondents 65 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 (40% / 26 businesses) and colleges/universities (32% or 21 businesses). The factors that received the highest number of FAIR ratings included housing (42% or 27 businesses) and the workforce availability (34% or 22 businesses). The factors that received the highest number of GOOD ratings included workforce stability (40% or 26 businesses) and economic development (40% or 26 businesses) The factors that received the highest number of EXCELLENT ratings included local government (20% or 13 businesses) and workforce quality (17% or 11 businesses). The factors that received the highest number of NO OPINION ratings include the Business Improvement Association (BIA) (83% or 54 businesses, and Community Futures (51% or 33 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 38 Figure 79: Rating of business climate factors 20% 32% 25% Local Government 9% 14% 6% 29% 23% 14% 28% K-12 education 3% 28% Housing 42% 15% 12% 6% 40% Economic Development 23% 18% 12% % Excellent 14% % Good 35% Cultural/Recreational Amenities 17% 22% 12% % Fair % Poor % No Opinion 6% 20% 11% 12% Community Futures 51% 2% 22% 23% 32% 22% Colleges/Universities 9% 28% 20% 12% 31% Chamber of Commerce 2% 5% 6% 5% BIA 83% 0% 20% 40% 60% 80% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 39 11% 40% Workforce Stability 18% 18% 12% 17% 37% Workforce Quality 18% 14% 14% 3% 22% Workforce Availability 34% % Excellent 26% 15% % Good % Fair 12% 23% 23% Tourism services % Poor % No Opinion 17% 25% 2% 18% Technical Training 25% 40% 15% 11% 38% Local Tax Structure 23% 8% 20% 0% 10% 20% 30% 40% 50% Note: 65 respondents 35% of respondents (23 businesses) felt that the business climate is better today than it was 5 years ago. 11% (7 businesses) thought that it is worse, and 34% (22 businesses) believed there was no change in the business climate. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 40 Figure 80: Business climate today vs. 5 years ago Better today 35% No change 34% No opinion 20% Worse today 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 65 respondents 63% of respondents (41 businesses) expect that the business climate will be better 5 years from today. 3% (2 businesses) expect that it will be worse. Figure 81: Business climate 5 years from today Will be better No change No opinion Will be worse 63% 20% 14% 3% 0% 10% 20% 30% 40% 50% 60% 70% Note: 65 respondents Strengths and Weaknesses of Business Climate 51 responses were provided when 65 respondents were asked to list the community’s strengths as a place to do business, the highest number of responses (27% or 14 responses) cited the area’s proximity to Alberta and the United States as the community’s strength. 18% (9 businesses) indicated the proximity to mines, and 16 % (8 businesses) indicated the above average household income were factors in the community’s strength as a place to do business. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 41 Figure 82: Community’s strengths as a place to do business Close to Alberta and USA 27% Proximity to mines 18% Above average household income 16% Loyalty 6% Supportive municipality 6% Lack of competition 4% Infrastructure 4% Business friendly 4% Local customer base 4% Low property taxes 2% Golf course 2% Diversified community 2% Stable jobs 2% Low cost of living 2% Utilities 2% 0% 5% 10% 15% 20% 25% 30% Note: 65 respondents 64 responses were provided when respondents were asked to list the community’s weaknesses as a place to do business, the highest number of responses (14% or 9 respondents) was received for the lack of diversification and the lack of support for small businesses. High costs and the isolated location accounted for 13% of responses (8 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 42 Figure 83: Community's weaknesses as a place to do business Lack of diversification 14% Lack of support for small businesses 14% High costs 13% Isolated location 13% Transient population 11% Competition from Alberta and USA 6% Available office space 6% Healthcare 6% Resistance to change 5% Infrastructure 5% Affordable housing 3% Competition from the mining industry 2% No community space 2% High business tax 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 65 respondents Business Growth 72% of respondents (34 businesses) indicated that there are barriers to growth. The highest number of respondents (15% or 6 businesses) stated that lack of diversity is an important barrier to growing the community’s economy. Other commonly cited barriers include land constraints and resistance to change (13% or 5 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 43 Figure 84: Barriers to growth in the community Lack of diversity 15% Land constraints 13% Resistance to change 13% Small population 10% Shortages of services 10% Transient population 8% Availability of local supplies 8% Infrastructure 5% Competition from Alberta and USA 5% Affordable retail locations 5% Lack of promotion 5% Business oriented facilities 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 47 respondents The following excerpts illustrate the barriers cited: “Tourism is somewhat hampered by coal mining. Community is too focused on the mine.” “Land constraints, lack of parking. New development areas near the highway mean traffic may not come.” “Not enough supplies are readily available. Simple things like glue sticks, material, thread but also lots of other things are not easy to get locally.” “The mine means that currently there is no diversity which is needed.” Respondents were asked about the level of support they received from various business support providers. The Chamber of Commerce received the highest Poor response (8% or 5 businesses), as well as the highest Excellent response (10% or 6 businesses), high responses were also received for Good (27% or 17 businesses) and Fair (19% or 12 businesses). Respondents found the Basin Business Advisors (19% or 12 businesses), Innovation Councils (19% or 12 businesses), Invest Kootenay (21% or 13 businesses) and the Kootenay Aboriginal Business Advocates Society (21% or 13 businesses) most commonly unable to assist. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 44 Figure 85: Level of service from business support providers Kootenay Aboriginal Business Advocates Society Invest Kootenay Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies… Economic Development Organization / Commission Continuing Education and Workforce Training 0% 5% 2% 3% 0% 2% 2% 3% College Industry Liaison Officer 70% 21% 2% 3% 2% 3% 19% 2% 11% 5% 3% 14% 73% 71% 65% % Excellent % Good 2% 11% 8% 3% 14% 5% Community Futures 21% % Fair % Poor 62% % Unable to assist 17% 3% 5% 14% % No response 56% 0% 2% 0% 0% 10% 89% 10% Chamber of Commerce Basin Business Advisors 8% 5% 2% 5% 2% 3% 27% 19% 32% 19% 70% 0% 20% 40% 60% 80% 100% Note: 63 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 45 0% 2% 0% 0% 11% Scientific Research and Experimental Development Tax Incentive Program % Excellent 87% % Good % Fair 0% 2% 0% 0% 10% National Research Council Industrial Research Assistance % Poor % Unable to assist % No response 89% 0% 20% 40% 60% 80% 100% Note: 63 respondents 32% of respondents indicated that there are suppliers that could locate in the region. Mining supply companies was most commonly cited by 13% of respondents (6 businesses), with grocery stores being mentioned by 6% (3 businesses). Figure 86: Potential Suppliers No Response 71% Mining supply companies 13% Grocery stores 6% Electrical suppliers 4% Hotel chains 2% Retail stores 2% Forestry supply companies 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 47 respondents 66% of respondents (31 businesses) indicated that they do supply products or services to companies located in the community or region. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 46 Figure 87: Supply to local companies No Response 32% Yes 66% No 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 47 respondents 71% of respondents indicated that there are sectors, businesses or industries that could be attracted to the region. Manufacturing, Restaurants and Tourism were the most frequently cited (24% or 13 respondents) businesses/sectors identified as important to attract. Retail Stores was referenced by 13% of respondents (7 businesses). Figure 88: Sectors, businesses or industries that could be attracted to region Manufacturing 24% Tourism 24% Restaurants 24% Retail Stores 13% Hotels 6% Housing 6% Education 2% Recycling 2% 0% 5% 10% 15% 20% 25% 30% Note: 65 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 availability of telecommunications infrastructure and services (82% or 36 businesses), improvement of customer service (80% or 35 businesses) and workforce skill development (76% or 34 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 47 Figure 89: Importance of business competitiveness factors Workplace health and safety 18% 16% Workforce skill development 9% 14% 66% 77% 45% 34% 20% Water/sewer costs Water/sewer availability 32% 18% Strategic alliances (joining with other… 27% 20% Reliable air transportation 18% 20% New market development outside… 18% New market development locally 20% 16% Improving worker productivity 16% 16% Improvement of customer services 2% 25% 14% Exchange rate for Canadian dollar 25% 23% Energy costs 27% 18% 68% % Not important at all or not very important % Not applicable 52% 55% 82% 59% 64% 18% 18% 27% 25% % Somewhat important, very important 61% 7% 11% 14% 27% Add or change in business, products or… 68% 18% Expansion of workforce employees Affordable shipping/freight 64% 80% 11% 20% Availability of telecommunications… 61% 45% 36% Improvement business management Access to exporting and international… 52% 27% 43% 30% New product research and development Accessing capital 50% 48% 25% 32% 43% 0% 20% 40% 60% 80%100% Note: 44 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 48 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, leadership and management capacity, and productive workplace culture (23% or 10 businesses); GOOD ratings include organizing work (structures and process (39% or 17 organizing work (structures and processes) (27% or 17 businesses) and productive workplace culture (36% or 16 businesses); FAIR ratings include measuring impact of productivity efforts/investments and networking and collaboration with other businesses (14% or 6 businesses) POOR ratings include innovation and the use of technology (5% or 2 businesses). Figure 90: Performance on key productivity drivers 23% Productive workplace culture 36% 2% 0% 39% 14% Organizing work (structures & processes) 39% 9% 0% 39% 16% Networking and collaboration with other businesses Measuring impact of productivity efforts/ investments 27% 14% 2% 41% 14% 0% % Fair 43% 23% Leadership and management capacity Investing in people and skills 2% 2% 0% 9% % Not Applicable 34% 23% 27% 41% 5% 0% % Poor 39% 18% Innovation & the use of technology % Good 30% 14% % Excellent 11% 27% 39% 10% 20% 30% 40% 50% Note: 44 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 49 Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (22% or 34 businesses), construction (20% or 31 businesses), and forestry (12% or 19 businesses). For a list of drivers identified as “Other”, refer to Appendix A. Figure 91: Economic drivers with greatest growth potential Other 23% Tourism 22% Construction 20% Forestry 12% Relocation of people from urban… 7% Manufacturing 4% Green or environmental businesses 3% Health & wellness 2% culture and creative businesses 1% Government 1% Other niche service businesses (e.g.… 1% Finance 1% Education 1% Technology-based businesses 1% Arts 1% 0% 5% 10% 15% 20% 25% Note: 63 respondents Proximity to Alberta 19 respondents (43%) reported that they were impacted by their proximity to Alberta. Competition was an impact for 24% respondents (5 businesses), while 19% (4 businesses) indicated impacts were positive and included better shopping. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 50 Figure 92: Impact of Proximity to Alberta Competition 24% Better shopping 19% Positive impact 19% Access to skilled trades 10% Lower cost supplies 10% Negative impact 10% Access to Equipment 5% Transport regulations 5% 0% 5% 10% 15% 20% 25% 30% Note: 19 respondents ASSESSMENT AND PLANS Overall Health The majority of businesses surveyed reported that their facility is in overall good health (45% or 21 businesses), 32% (15 businesses) reported that their company’s health is excellent and 2% (1 business) reported that it is fair. It is worth noting that no respondents indicated that their company is in poor health. Figure 93: Facility’s overall health Excellent 32% Good 45% Fair 2% Not applicable 21% 0% 10% 20% 30% 40% 50% Note: 47 respondents Most businesses with a parent company indicated that the health of that parent company is either excellent (26% or 12 businesses) or good (13% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 51 Figure 94: Overall health of parent company Excellent Good Fair Poor Not applicable 26% 13% 2% 2% 57% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents Attitude toward Community 51% of respondents (24 businesses) indicated that their local management’s attitude toward the community is excellent and 23% (11 businesses) indicated that it is good. Figure 95: Local management's attitude toward community Excellent 51% Good 23% Poor 2% Not applicable 23% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents The highest number of respondents (21% or 10 businesses) indicated that their parent company’s attitude toward the local community is excellent. Figure 96: Parent company's attitude toward local community Excellent 21% Good 17% Poor 4% Not applicable 57% 0% 10% 20% 30% 40% 50% 60% Note: 47 respondents Risk of Closing or Downsizing Data indicates that the risk of Sparwood businesses closing or downsizing is low. Only 2% (1 business) of respondents reported that they are at a high risk of closing or downsizing in the next 1-3 years. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 52 Figure 97: Risk of facility closing Low 83% Moderate 15% High 2% 0% 20% 40% 60% 80% 100% Note: 65 respondents Similarly, the data indicates that the risk of downsizing is low, with only 2% (1 businesses) indicating that risk is high. Figure 98: Risk of facility downsizing Low 87% Moderate 11% High 2% 0% 20% 40% 60% 80% 100% Note: 65 respondents Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 53 RECOMMENDATIONS NEXT STEPS The results of this survey can be used by economic development organizations in the District of Sparwood to inform short- and long-term business retention and expansion action planning. Many BRE programs ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success and momentum to carry out longterm actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). Many BRE actions also lead to long-term programs (e.g., a ‘Buy Local’ program), or ongoing plans and policies. Patience and a commitment over the long-term are critical in determining the success of these initiatives. For this reason, BRE should be thought of, and implemented as, an ongoing process as opposed to a one-time project. BRE results can form the backbone of a community’s economic development strategy and, in some cases they are integrated into 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 and support links to planning and action: 1. Continually communicate (through press, presentations, electronic media, etc.) with the business community regarding actions and be clear that the actions are tied to the BRE process. 2. Establish a task force or committee to continue building on the momentum of the BRE report and ensure actions and next steps are taken and kept on track. Include follow-up discussions with individual businesses (particularly to address red and green-flags). Consider using the “Business Walk” survey as a tool to connect with businesses annually. 3. Host a business stakeholder forum to present findings, discuss common issues and potential solutions. 4. Host a facilitated action planning session with economic development stakeholders and industry representatives. 5. Based on results from the forums and action planning session, finalize priority actions, develop related action plans, update existing economic development plans and develop relationships with a broader network of support providers (at regional, provincial and national scales) to support implementation. 6. Establish a monitoring program to assess the impact of implementation efforts. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 54 POTENTIAL ACTION AREAS Local Workforce The District of Sparwood has a population of 3,9279, and the businesses interviewed report a total of 2,140 employees10. The vast majority (80%) of employees are full-time. The employment rate reported for the Rockies region by BC Stats is 65%11, and the information provided as part of this survey indicates a minimum rate of 54%. Given that the employee numbers do not reflect the total number of employees, there may be an indication that a number of employees are travelling from outside of Sparwood to work within the District. Actions related to this theme include exploring ways in which those employees can be engaged with the community. Related, are the critical considerations for employees identified which include housing, cost of living and childcare. There may be actions available at the local level to address these areas of concern and also engage employees who currently reside out of town. Additional research may be warranted to understand how many employees live outside of Sparwood and what opportunities may exist to increase residency within the District if warranted. Youth Employment Findings indicate that employees under the age of 26 are in the minority. Increasing youth involvement in the local workforce could be encouraged. 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. This may assist in addressing the recruitment challenges that 49% of businesses report having. Business Growth & Expansion 45% of businesses in the region report being a growth cycle, and 43% indicate that they are planning to expand within the next three years. Close to half of those businesses planning to expand do not feel their existing site is adequate, yet the majority of expansion plans are expected to occur within the community. Businesses also report that employment rates are stable, and that they anticipate an increase to the amount of full-time employment. This data coupled with the general positive business climate and the optimism for the future provides a positive report on local business growth. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Assistance could come in the form of assistance with navigating local regulations, identifying and securing new sites, and connecting businesses with resources to assist in expansion projects. It is worth noting that very few businesses sought assistance with 9 Source: BC Stats (2013). Population Estimates: Municipalities, Regional Districts and Development Regions 2011 - 2014 10 Note: 2,140 is not the total number of employees/jobs in Sparwood, but the number of employees reported by businesses surveyed as part of this research. The actual number of employees is likely greater. 11 Source: BC Stats (2015). Socio-Economic Profile – College Region 5 - Rockies. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 55 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. These potential actions and any others, should be designed to address the stated barriers to expansion which include lack of suitable premises and lack of skilled staff. The lack of appropriately zoned land in Sparwood was also a finding in the Employment Lands Final Report (2014) prepared by the RDI, that found that there are indeed very few vacant commercial and industrial parcels available. Economic Diversification A lack of diversification was cited most frequently by local businesses as one of Sparwood’s greatest weaknesses and its greatest barrier to growth, this is evidenced by the fact that the largest percentage of respondents indicated that between 76 – 100% of their sales are generated by their top three customers. This theme is echoed in the work that Sparwood is undertaking as part of its Official Community Plan update and recent Revitalization Tax Incentive Program. Businesses identified manufacturing, restaurants and tourism as the most important sectors to attract, but also indicated that the economic drivers with the highest future growth potential are tourism, construction and forestry. Specific reference to attracting a grocery store was also made. Diversifying the economy will increase the resilience of the District in the face of any future changes in the mining sector. Actions to increase the diversification could include working with local businesses to expand their customer base and increase small business support programs from groups such as Community Futures East Kootenay. Working with other municipalities and the Regional District on an Economic Strategy may also be considered. Continued collaboration between government and local businesses towards a diversified economy will be key to achieving results in this area. With most businesses indicating an overall good business climate, there is much positive support to build on the work already occurring in this area. Supply Sourcing and Procurement The data indicates that the majority of supplies come from outside the local region, and only 17% of supplies are sourced locally. The most common response (44%) for the reason why supplies are sourced outside of the local area is that they are not available locally. There is an opportunity to engage in discussion with 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. A potential related impact could be the diversification of the local economy. Local businesses to do not appear to engage with government procurement processes, with only 10% of businesses indicated that they have. A significant number of non-responses (68%) suggest there may be a lack of awareness of the opportunities available through government procurement. 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. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 56 Training A lack of technical training and colleges/universities were cited as factors contributing towards a poor business climate. Businesses identified a need for training in the areas of emerging technologies, skilled trades and health and safety. Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that the majority of businesses do have a training budget, and that they have a preference for individual coaching sessions (29%), online webinars (27%), or classroom (21%) style formats. Future initiatives could include supporting networks to help businesses identify shared training needs, and working with 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 28% of respondents indicated that they have a formal succession plan and just under half have an up-to-date business plan. Furthermore, business and management training was among the top cited areas of training needs. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, and a stated preference for individual coaching, one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future 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. Government Services There is a prevalent perception among respondents that there is a lack of buildings and land available for lease or purchase. With a large number of businesses planning expansions contingent on finding new space, there is an opportunity for the local government to work with local businesses to understand existing and future business needs and assess land use planning at a micro level. Improved communication and marketing of District-owned lands could help address this issue of a perceived lack of available land. Currently there is approximately 60 acres of industrial land available for development within the District of Sparwood. However, the absence of a land development industry—excepting that which the municipality has brought to the market—has kept these lands from being made available. There is also a lack of available serviced land and high demand for existing buildings within the community. This has changed slightly since the economic downturn and the reduced price of coal during late 2014 and early 2015 with a number of business closures. Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 57 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 58 APPENDIX A: DATA TABLES COMPANY INFORMATION Figure 1: Industry Classification Agriculture, forestry, fishing and hunting Arts, Entertainment and Recreation Educational Services Mining, quarrying, and oil and gas extraction Information and Cultural Industries Finance and Insurance Health Care and Social Assistance Transportation and Warehousing Manufacturing Wholesale Trade Real Estate and Rental and Leasing Accommodation and Food Services Other Services Retail Trade Professional, Scientific and Technical Services Construction Total Survey Respondents: 65 Figure 2: Facility function(s) Manufacturing Headquarters Engineering/RD Warehousing Distribution Services Total Survey Respondents: 47 Figure 3: Location of primary competitors National NAICS Code Count Percent 11 1 2% 71 61 1 1 2% 2% 21 2 3% 51 52 62 48-49 31-33 41 53 72 81 44-45 2 3 3 3 3 3 4 4 8 9 3% 5% 5% 5% 5% 5% 6% 6% 12% 14% 54 9 14% 23 9 65 14% 100% Count 2 6 6 9 16 35 74 Percent 3% 8% 8% 12% 22% 47% 100% Count Percent 1 1% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 59 International Elsewhere in BC Alberta Local / regional Total Survey Respondents: 47 Figure 4: Factors that make them successful in this region (key words) Dependability Innovation Unique Products Reliability Unique Service Experience Business Relationships Workforce Expertise High Quality Products Limited Competition Strong Community Service Location Total Survey Respondents: 47 Figure 5: Why did you choose this community to locate your business? Hobby turned into a business Availability of land Growing industry Sparwood is home Location Community No response Proximity to mines Market opportunity Total Survey Respondents: 47 4 5 8 55 73 5% 7% 11% 75% 100% Count Percent 1 1 1 1 2 2 2 3 3 4 5 6 10 11 52 2% 2% 2% 2% 4% 4% 4% 6% 6% 8% 10% 12% 19% 21% 100% Count Percent 1 1 2 2 3 3 10 11 17 50 2% 2% 4% 4% 6% 6% 20% 22% 34% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 60 Figure 6: Other location (Yes/No) No Response No Yes Total Survey Respondents: 47.0 Count 8 13 26 47 Percent 17% 28% 55% 100% Count Percent 7 13 22 42 17% 31% 52% 100% Figure 8: Location of headquarters Outside Canada Elsewhere in nation In Province No Response Total Survey Respondents: 47 Count 3 12 13 19 47 Percent 6% 26% 28% 40% 100% Figure 9: Life cycle stage Declining Emerging Maturing Growing No Response Total Survey Respondents: 47 Count 0 1 17 21 8 47 Percent 0 2% 36% 45% 17% 100% Figure 10: Length of time in business 10-19 years less than 1 year 5-9 years 1-4 years more than 20 years Total Count 5 5 12 15 28 65 Percent 8% 8% 18% 23% 43% 100% Figure 7: Does this company have another location elsewhere?: If Yes, where? Outside Canada Elsewhere in nation In Province Total Respondents with another location: 26 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 61 Survey Respondents: 65 Figure 11: Type of business Limited Liability Partnership Non-Profit Other No Response Partnership Sole Proprietorship Corporation Total Survey Respondents: 65 Figure 12: Ownership and management changes in last 5 years No Response Yes No Total Survey Respondents: 47 Count 1 2 2 3 3 12 42 65 Percent 2% 3% 3% 5% 5% 18% 65% 100% Count Percent 8 16 23 47 17% 34% 49% 100% Figure 12b: Impact of Ownership or Count Management Change No Response 1 Neutral 6 Positive 9 Total 16 Respondents that had an ownership change: 16 Figure 12c: Pending ownership change Yes No Response No Total Survey Respondents: 65 Figure 13: Anticipated timeline for ownership change 3 years or more Percent 6% 38% 56% 100% Count Percent 6 9 50 65 9% 14% 77% 100% Count Percent 2 33% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 62 No Response 1 year or less Total Those anticipating ownership change: 6.0 2 2 6 33% 33% 100% Figure 14: Anticipated exit strategy Sell/transfer to a family member Count 1 Percent 17% Sell/transfer to a non-family member 1 17% Sell to another company No Response Total Those anticipating ownership change: 6.0 2 2 6 33% 33% 100% Figure 15b: Successor Identified Count No 1 Yes 2 No Response 3 Total 6 Those anticipating ownership change: 6.0 Percent 17% 33% 50% 100% Figure 15: Is there a formal succession plan? Yes No Not applicable Total Count Percent 18 19 28 65 28% 29% 43% 100% Figure 15b: If Yes, have you been assisted in preparation of a succession plan? Count Percent No 3 17% Yes 4 22% No Response 11 61% Total 18 100% Survey Respondents answering Yes to "Is there a formal succession plan?" : 18 Figure 15c: If Yes, by whom Count Percent No Response 1 25% Accountant 1 25% Lawyer 2 50% Total 4 100% Survey Respondents answering Yes to "If Yes, have you been assisted in preparation of a succession Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 63 plan?" : 4 Figure 15d: If Yes, by whom: If other, Count Percent please explain No Response 4 100% Total 4 100% Survey Respondents answering Yes to "Is there a formal succession plan? :4 Figure 16: Existence of current business plan No Response No Yes Total Survey Respondents: 65 Count Percent 7 26 32 65 11% 40% 49% 100% LOCAL WORKFORCE Figure 17: Total number of employees Over 100 50-99 20-49 10-19 5-9 Less than 5 Total Survey Respondents: 65 Total Employees: 2140 Figure 18: Nature of Employment Part Time Temporary Full Time Total Survey Respondents: 65 Figure 18b: Number of Full-Time Employees Over 100 50-99 Count Percent 2 5 9 20 0 29 65 3% 8% 14% 31% 0% 45% 100% Count Percent 169 259 1712 2140 8% 12% 80% 100% Count Percent 2 4 3% 6% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 64 20-49 10-19 Less than 5 Total Survey Respondents: 65 Figure 18c: Number of Part-Time Employees 20-49 0 or no answer 10-19 Less than 5 Total Survey Respondents: 65 Figure 18d: Number of Temporary Employees Over 100 10-19 0 or no answer Less than 5 Total Survey Respondents: 65 Figure 19: Historical Employment trend Decreased Increased No Response Stayed the Same Total Survey Respondents: 65.0 Figure 19b: Projected number of employees in 3 years Over 100 50-99 20-49 10-19 Less than 5 Total Survey Respondents: 47 9 13 37 65 14% 20% 57% 100% Count Percent 2 5 6 52 65 3% 8% 9% 80% 100% Count Percent 1 2 9 53 65 2% 3% 14% 82% 100% Count Percent 4 18 19 24 65 6% 28% 29% 37% 100% Count Percent 3 7 7 15 15 47 6% 15% 15% 32% 32% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 65 Figure 20: Full-time employment trend over last 3 years Decreased No Response Stayed the same Increased Total Survey Respondents: 47.0 Figure 21: Full-time employment trend over next 3 years Stay the Same Will Increase No Response Total Survey Respondents: 47.0 Figure 22: Age of the majority of essential employees 50 or older 35 - 49 26 - 34 under 25 No Response Total Survey Respondents: 47 Figure 23: Wages in relation to other businesses in the region Less than Greater than Same No Response Total Survey Respondents: 47 Figure 23b: Average hourly wage: Skilled / Professional $13-$14 $100 or more Count Percent 2 13 15 17 47 4% 28% 32% 36% 100% Count Percent 6 19 22 47 13% 40% 47% 100% Count Percent 7 17 11 0 12 47 15% 36% 23% 0% 26% 100% Count Percent 8 8 13 18 47 17% 17% 28% 38% 100% Count Percent 1 2 2% 3% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 66 $15-$19 $10-$12 $50-$99 $29-$20 No Response $49-$30 Total Survey Respondents: 65 Figure 23c: Average hourly wage: Semi-skilled $13-$14 $10-$12 $49-$30 $15-$19 $29-$20 No Response Total Survey Respondents: 65 Figure 23d: Average hourly wage: Entry- level $49-$30 $15-$19 $13-$14 $10-$12 $29-$20 No Response Total Survey Respondents: 65 Figure 24: Trend in unfilled positions Increasing Decreasing Staying the Same No Response Total Survey Respondents: 47 Figure 25: Location of workforce recruitment Provincial National 2 2 6 10 19 23 65 3% 3% 9% 15% 29% 35% 100% Count Percent 2 4 6 8 16 29 65 3% 6% 9% 12% 25% 45% 100% Count Percent 1 2 2 6 7 47 65 2% 3% 3% 9% 11% 72% 100% Count Percent 5 5 11 26 47 11% 11% 23% 55% 100% Count Percent 4 5 6% 8% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 67 No Response Local Total Survey Respondents: 65 Figure 26: Recruitment and retention challenges Retention challenges Recruitment challenges Survey Respondents: 65 Figure 26b: Retention Challenges No Response Yes No Total Survey Respondents: 65 Figure 26c: Recruitment Challenges No Response No Yes Total Survey Respondents: 65 Figure 27: Employee Retention Efforts Profit-Sharing Health & Wellness Pensions Benefits Training Bonuses Flextime No Response Total Survey Respondents: 44 Figure 28: Recruitment Activities Job Fairs Training 14 42 65 22% 65% 100% Count Percent 17 32 26% 49% Count Percent 10 17 38 65 15% 26% 58% 100% Count Percent 8 25 32 65 12% 38% 49% 100% Count Percent 1 1 2 2 3 4 6 26 45 2% 2% 4% 4% 7% 9% 13% 58% 100% Count Percent 1 1 2% 2% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 68 Referrals Recruitment Agency Word of Mouth Newspaper Online Job Board Advertising No Response Total Survey Respondents: 44 1 2 2 3 4 7 30 51 2% 4% 4% 6% 8% 14% 59% 100% Figure 29: Responses to Current Recruitment Count Percent Challenge Areas Hospitality Service 1 2% CDL Drivers 1 2% Construction/Contractors 1 2% Material/Fabricators 1 2% Food/Beverage Service 1 2% Machine Operators 1 2% Professional/Other 1 2% Machinists 2 4% Professional/Technical 2 4% General Laborer 2 4% Sales/Retail 3 6% Administrative/Clerical 3 6% Sales/Service 3 6% Electrical/Electronics 5 10% Mechanics 6 13% Other 15 31% Total 48 100% Companies experiencing recruitment challenges: 27 Figure 29b: Responses to Current Recruitment Challenge Areas – “Other” responses Accountants Bakers Hairdressers Home care providers Lawyers Machine Operators Yard Technicians Count Percent 1 1 1 1 1 1 1 6% 6% 6% 6% 6% 6% 6% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 69 Mechanical engineers 1 6% Pharmacists 1 6% Managers 2 12% Skilled Trades 3 18% No Response 3 18% Total 17 100% Companies experiencing "Other" recruitment challenges: 15 Figure 30: Responses to Count Percent Future recruitment challenges Administrative/Clerical 1 2% Machine Operators 1 2% Construction/Contractors 1 2% Hospitality Service 1 2% Food/Beverage Service 1 2% Maintenance 1 2% CDL Drivers 2 4% Sales/Service 2 4% General Laborer 2 4% Professional/Other 2 4% Material/Fabricators 2 4% Machinists 3 5% Professional/Technical 3 5% Electrical/Electronics 4 7% Sales/Retail 4 7% Mechanics 7 13% Other 19 34% Total 56 100% Companies reporting future recruitment challenges: 28 Figure 30b: Future recruitment challenges No Response No Yes Total Survey Respondents: 65 Figure 31: Is there anything we can do to help overcome issues with employee Count Percent 12 19 34 65 18% 29% 52% 100% Count Percent Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 70 recruitment? Yes No No Response Total Survey Respondents: 65 16 17 32 65 25% 26% 49% 100% Figure 31b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, please explain Count Percent provide a better community for families 1 6% encourage spouses to take on service jobs 1 6% no response 14 Total 16 Companies reporting "Yes" to "Is there anything we can do to help overcome issues with employee recruitment": 16 Figure 32: Skill Level of Majority of Workforce (average % of workforce) Skilled / Professional Semi-Skilled Entry-Level Survey Respondents: 65 Figure 32b: Entry-Level Employees as % of Workforce 75 to 100% 25 to 49% 50 to 74% No Response less than 25% Total Survey Respondents: 65 Figure 32c: Semi-Skilled Employees as % of Workforce 75 to 100% No Response 50 to 74% 25 to 49% less than 25% Total 88% 100% Percent 63% 27% 9% Count Percent 1 3 5 11 45 65 2% 5% 8% 17% 69% 100% Count Percent 3 11 12 13 26 65 5% 17% 18% 20% 40% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 71 Survey Respondents: 65 Figure 32d: Skilled / Professional Employees as % of Workforce less than 25% 25 to 49% No Response 50 to 74% 75 to 100% Total Survey Respondents: 65 Figure 33: Training Budget No Response No Yes Total Survey Respondents: 65 Figure 33b: Does the company offer in-house training? No No Response Yes Total Survey Respondents: 47 Figure 33c: Does the company use Contracted Training? No No Response Yes Total Survey Respondents: 47 Count Percent 6 9 11 15 24 65 9% 14% 17% 23% 37% 100% Count 9 22 34 65 Percent 14% 34% 52% 100% Count Percent 2 13 32 47 4% 28% 68% 100% Count Percent 9 15 23 47 19% 32% 49% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 72 Figure 34: Are you aware of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills? No Response Yes No Total Survey Respondents: 47 Figure 35: Training or professional development needs Welding Apprenticeships Heavy Duty Mechanic Apprenticeships Heavy Equipment Training Sales Warehouse Training Business Management First Aid and WHMIS Total Survey Respondents: 47 Figure 35b: Are there areas of training or professional development that would be of benefit to you or your employees? No Response No Yes Total Survey Respondents: 47 Figure 36: What new training might you need to consider in the next five years? Communication skills Computer skills Count Percent 12 15 20 47 26% 32% 43% 100% Count Percent 1 6% 1 6% 1 1 1 5 6 16 6% 6% 6% 31% 38% 100% Count Percent 11 13 23 47 23% 28% 49% 100% Count Percent 1 1 1% 1% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 73 Electronics Civil engineering Robotics Water management Health and safety Skilled Trades Technology advances No Response Total Survey Respondents: 65 Figure 37: Preferred Modes of Training Other No Response Classroom Online/ Webinar training Individual coaching Total Survey Respondents: 47 Figure 38: Usual Training Locations United States British Columbia Rest of Canada Regional Local No Response Total Survey Respondents: 47 Union Status Yes Not applicable No Total Survey Respondents: 47 Figure 39: Critical considerations for employees No Response Transportation 1 1 2 2 4 5 7 43 67 1% 1% 3% 3% 6% 7% 10% 64% 100% Count Percent 3 14 16 20 22 75 4% 19% 21% 27% 29% 100% Count Percent 2 3 4 9 15 24 57 4% 5% 7% 16% 26% 42% 100% Count 7 18 22 47 Percent 15% 38% 47% 100% Count Percent 8 10 7% 8% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 74 Other Child care Cost of living Housing Total Survey Respondents: 63 Figure 39b: Responses to "Other" for Critical Issues for Employees 15 20 32 35 120 13% 17% 27% 29% 100% Count Percent Training Buses for Children Child Care Cost of Living Tax Structure Outdoor activities Healthcare Flextime Local Amenities Affordable Housing Total Survey Respondents "Other": 15 Figure 39c: Location of Employees No Response 25-49% 0-24% 50-74% 75-100% Total Survey Respondents: 63 Figure 39d: Location of Employees 75-100% 25-49% No Response 50-74% 0-24% Total Survey Respondents: 63 1 1 1 1 1 1 2 2 2 2 14 7% 7% 7% 7% 7% 7% 14% 14% 14% 14% 100% Community % Community 9 4 6 15 29 63 14 6 10 24 46 100% Region 5 9 9 11 29 63 % Region 8 14 14 17 46 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 75 Figure 39e: Location of Employees Out of Region 25-49% 75-100% No Response 0-24% Total Survey Respondents: 63 1 1 9 52 63 % Out of Region 2 2 14 83 99% SALES Figure 40: Annual Sales over $5 million Count 12 Percent 18% $1million to $4.99 million 14 22% $500,000 to $999,999 $100,000 to $499,999 Under $100,000 2 5 8 3% 8% 12% Confidential/ no response 24 37% Total Survey Respondents: 65 65 100% Count 3 7 26 29 65 Percent 5% 11% 40% 45% 100% Count Percent 11 4 15 17 47 23% 9% 32% 36% 100% Figure 41: Status of Market No Response Decreasing Increasing Stable Total Survey Respondents: 65 Figure 42: Market Share in Comparison to Competitors No Response Decreasing Stable Increasing Total Survey Respondents: 47 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 76 Figure 43: Projected Sales Growth in Upcoming Year Count Percent Confidential/ no response 12 26% Declining 100% or more 50% - 99% 25-49% 10-24% 1-9% 0% Total Survey Respondents: 47 1 4 0 3 12 11 4 47 2% 9% 0% 6% 26% 23% 9% 100% Count Percent 5 9 21 30 65 8% 14% 32% 46% 100% Count Percent Figure 44: Historical Sales Trend (at this Location) Decreasing Staying the same Increasing No Response Total Survey Respondents: 65 Figure 45: Historical Sales Trend (at the Parent Company) Declining Staying the same Increasing Not Applicable/No response Total Survey Respondents: 65 Figure 46: Historical Sales Trend (within the Industry) Declining Staying the same Increasing Not Applicable/No response Total 1 2 16 2% 3% 25% 46 71% 65 100% Count Percent 4 3 16 6% 5% 25% 42 65% 65 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 77 Survey Respondents: 65 Figure 47: Historical Export Sales Trend Declining Staying the same Increasing Not Applicable/No response Total Survey Respondents: 47 Figure 48: Sales Generated by Top 3 Customers No Response 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total Survey Respondents: 63 Count 1 1 2 2% 2% 4% 43 91% 47 100% Count Figure 49c: Source of Sales (United States) 50-99% Percent 18 12 6 4 4 19 63 Figure 49: Geographic Source of Majority of Sales United States National Provincial International Local Survey Respondents: 47 Figure 49b: Source of Sales (International) 50-99% under 50% 0% or no answer Total Survey Respondents: 47 Percent 29% 19% 10% 6% 6% 30% 100% Percent 2% 5% 13% 2% 62% Count Percent 1 4 42 47 Count 2% 9% 89% 100% Percent 1 2% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 78 under 50% 0% or no answer Total Survey Respondents: 47 Figure 49d: Source of Sales (National) under 50% 0% or no answer Total Survey Respondents: 47 Figure 49e: Source of Sales (Provincial) 100% 50-99% under 50% 0% or no answer Total Survey Respondents: 47 Figure 49f: Source of Sales (Local/Regional) under 50% 0% or no answer 50-99% 100% Total Survey Respondents: 47 Figure 50: International Trade Status Export Import None/ not applicable Total Survey Respondents: 47 Figure 51: Participation in Government Procurement Yes No No Response 6 40 47 Count 13 34 47 Count 1 7 10 29 47 Count 7 10 12 18 47 Count 1 6 40 47 Count 6 14 43 13% 85% 100% Percent 28% 72% 100% Percent 2% 15% 21% 62% 100% Percent 15% 21% 26% 38% 100% Percent 2% 13% 85% 100% Percent 10% 22% 68% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 79 Total Survey Respondents: 63 Figure 52: Source of Majority of Supplies International United States Provincial National Local Survey Respondents: 47 Figure 52b: Source of Supplies (International) under 50% 0% or no answer Total Survey Respondents: 47 Figure 52c: Source of Supplies (United States) 50-99% under 50% 0% or no answer Total Survey Respondents: 47 Figure 52d: Source of Supplies (National) 100% 50-99% 0% or no answer under 50% Total Survey Respondents: 47 Figure 52e: Source of Supplies (Provincial) 100% under 50% 50-99% 0% or no answer Total Survey Respondents: 47 63 100% Percent 0% 9% 34% 23% 17% Count Percent 1 46 47 2% 98% 100% Count Percent 5 6 36 47 11% 13% 77% 100% Count Percent 2 9 17 19 47 4% 19% 36% 40% 100% Count Percent 2 6 17 22 47 4% 13% 36% 47% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 80 Figure 52f: Source of Supplies (Local/Regional) 50-99% under 50% 0% or no answer Total Survey Respondents: 47 Count Percent 6 13 28 47 13% 28% 60% 100% Count Percent 2 4% 3 6% 3 6% Product not available here 21 44% Other No Response Total Survey Respondents: 44 3 16 48 6% 33% 100% Figure 53: Reason for Out of Area Purchasing No control, head office decision No applicable to this business Higher costs locally FACILITIES AND EQUIPMENT Figure 54: Facility Size 20,000 sq ft or more 10,000-19,999 sq ft 5,000-9,999 sq ft 1,000 to 4,999 sq ft Less than 1,000 sq ft No Response Total Survey Respondents: 65 Figure 55: Condition of Facility No Response Poor Fair Good Excellent Total Count 3 3 8 22 15 14 65 Percent 5% 5% 12% 34% 23% 22% 100% Count Percent 9 3 9 16 10 47 19% 6% 19% 34% 21% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 81 Survey Respondents: 47 Figure 56: Condition of Equipment No Response Poor Fair Good Excellent Total Survey Respondents: 47 Figure 57: Ownership Status No Response Leased Owned Total Survey Respondents: 65 Count Percent 14 2 5 14 12 47 30% 4% 11% 30% 26% 100% Count Percent 9 25 31 65 14% 38% 48% 100% Figure 58: Length of Time Remaining on Count Lease More than 5 yrs 1 3-5 yrs 4 1-2 Years 1 Less than 1 yr 6 No Response 13 Total 25 businesses that lease: 25.0 Figure 58b: Planning to Count renew current lease No 4 No Response 5 Yes 16 Total 25 Businesses that lease: 25.0 Figure 59: Historical investment trends: Over past 18 months in the facility Declining Staying the same Percent 4% 16% 4% 24% 52% 100% Percent 16% 20% 64% 100% Count Percent 1 4 2% 9% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 82 Increasing No Response Total Survey Respondents: 47 Figure 60: Is there room for expansion at this site? Maybe Yes No No Response Total Survey Respondents: 65 Figure 61: Expansion Plans (Does the company plan to expand in the next three years?) No Response No Yes Total Survey Respondents: 65 10 32 47 21% 68% 100% Count Percent 3 16 16 30 65 5% 25% 25% 46% 100% Count Percent 17 20 28 65 26% 31% 43% 100% Figure 62: Adequacy of Current Site for Count Percent Expansion No Response 3 11% Inadequate 12 43% Adequate 13 46% Total 28 100% Respondents planning to expand: 28 Figure 63: Does the company plan to expand in the Count Percent next three years?: Will it be in this community? No 3 11% Yes 13 46% No Response 12 43% Total 28 100% Survey Respondents answering Yes to "Does the company plan to expand in the next three years?" : 28 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 83 Figure 64: Estimated Total Investment in Count Percent Expansion $0 - $99,000 0 0% $100,000-$499,999 1 4% $500,000 - $999,999 0 0% $1-$4.9 million 2 7% $5 - 19.9 million 0 0% $20 million and over 1 4% No Response 24 86% Total 28 100% Respondents planning to expand: 28 Figure 65: Expansion Budget for Equipment & Technology Count 100% 1 40 - 99% 0 30 to 39% 2 0 - 29% 0 No Response 25 Total 28 Respondents planning to expand: 28 Percent 4% 0% 7% 0% 89% 100% Figure 66: Expansion Count Percent Budget for Real Estate 100% 1 4% 80 - 99% 0 0% 70 to 79% 1 4% 20 - 69% 0 0% 10 - 19% 1 4% 0-10% 0 0% No Response 25 89% Total 28 100% Respondents planning to expand: 28 Figure 67: Size of Count Percent Facility Expansion 20,000 sq ft or more 1 4% 5,000-9,999 sq ft 2 7% No Response 25 89% Total 28 100% Respondents planning to expand: 28 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 84 Figure 68: Have there been any recent facility upgrades? No Response No Yes Total Survey Respondents: 47 Figure 68b: Have there been any recent facility upgrades? If Yes, when?: Month scale 3 6 36 24 12 No Response Total Survey Respondents: 47 Figure 69: Planning any upgrades to the facility? No Response No Yes Total Survey Respondents: 47 Figure 69b: Planning any upgrades to the facility? If Yes, when?: Month scale Count Percent 17 8 22 47 36% 17% 47% 100% Count Percent 2 2 4 4 7 28 47 4% 4% 9% 9% 15% 60% 100% Count Percent 17 18 12 47 36% 38% 26% 100% Count Percent 3 1 24 1 12 1 6 2 18 2 No Response 5 Total 12 Survey Respondents answering Yes:12 8% 8% 8% 17% 17% 42% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 85 Figure 69c: If No, are there any barriers to upgrading you wish to identify? Count Percent Waiting on new facility 1 6% No Response 17 94% Total 18 100% Survey Respondents answering no : 18 Figure 70: Barriers to Expansion Identifying and accessing new markets Problems with Development Approvals Count Percent 2 5% 2 5% Local regulations 3 (zoning) Finance 3 Lack of skilled staff 5 No Response 7 Lack of suitable 8 premises Other 12 Total 42 Respondents planning to expand: 28 Figure 70b: What, if any, are the major constraints on your expansion? Other (please specify) Finding an appropriate business partner Labour supply Provincial regulations, renovations Overhead costs of expanding Water & Sewer Lack of suitable premises Confidence in the economy 7% 7% 12% 17% 19% 29% 100% Count Percent 1 8% 1 8% 1 8% 1 8% 2 17% 3 25% 3 25% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 86 Total 12 Survey Respondents "Other": 12 100% Figure 71: Expansion Assistance from Support Organization Count Percent BC Ministry responsible for Economic Development 1 4% BC Hydro Local Council Chamber of Commerce Other 1 2 2 3 4% 7% 7% 11% Local Economic Development Office 4 14% No Response Total Respondents planning to expand: 20 15 28 54% 100% Figure 71b: Sought Expansion Assistance Yes No No Response Total Respondents planning to expand: 20 Figure 72: Energy Efficiency Considerations in Expansion Plans No Yes No Response Total Survey Respondents: 44 Figure 73: Awareness of BC Hydro Power Smart No Yes No Response Total Survey Respondents: 47 Count Percent 5 7 8 20 Count Percent 3 13 28 44 7% 30% 64% 100% Count Percent 7 25 15 47 15% 53% 32% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 87 25% 35% 40% 100% GOVERNMENT SERVICES Figure 74: Rating of Government Services Government Services Access to Port Facilities Access to US Border Access to airport facilities Access to highway/ roads Access to markets Access to suppliers Availability of appropriately zoned land Availability of buildings for lease or purchase Availability of rail transport Availability of road transport services Availability of warehousing Development approval process Disposal of waste material Inspections /licensing Recycling Telecommunications (internet, cell) 50 12 10 6 10 11 % Not Applicable 77% 18% 15% 9% 15% 17% 27 42% 17 26% 10 15% 11 17% 0 0% 17 26% 31 48% 10 15% 7 11% 0 0% 46 71% 5 8% 1 2% 11 17% 2 3% 13 20% 4 6% 7 11% 24 37% 17 26% 31 33 17 20 9 48% 51% 26% 31% 14% 9 9 5 4 9 14% 14% 8% 6% 14% 8 3 14 9 11 12% 5% 22% 14% 17% 12 15 22 25 26 18% 23% 34% 38% 40% 5 5 7 7 10 8% 8% 11% 11% 15% 7 11% 7 11% 11 17% 36 55% 4 6% Not Applicable Poor % Poor 5 2 19 0 4 7 8% 3% 29% 0% 6% 11% 3 5 20 6 7 14 5% 8% 31% 9% 11% 22% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Fair % Fair 88 % Good Excellent % Excellent 6 33 15 32 26 29 9% 51% 23% 49% 40% 45% 1 13 1 21 18 4 2% 20% 2% 32% 28% 6% Good Water and sewerage supply 17 26% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 6 9% 7 11% 89 26 40% 9 14% Figure 74b: (Relates to Please rate the following: Access to airport facilities...) Do you have any suggestions on how to improve any of the services and infrastructure listed above? No Response No Yes Total Survey Respondents: 47 Figure 75: Key words and responses in respondents' suggestions for improvements to government services Airport Services Awareness of bylaws Services available for businesses Enforce Building Code Water and sewage services Improve internet services Curbside recycling Community driven development approval process Land for development Total Survey Respondents: 47 Figure 76: Which airport services do you use? No Response Kalispell Cranbrook Calgary Total Survey Respondents: 47 Figure 77: Which airport services do you use? What services would you like to see at the local airport? (where appropriate) Count Percent 5 16 26 47 Count 11% 34% 55% 100% Percent 1 1 1 1 1 2 4 4% 4% 4% 4% 4% 8% 16% 5 20% 9 25 36% 100% Count 13 11 20 25 69 Count Percent 19% 16% 29% 36% 100% Percent Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 90 No Response Larger planes More commuter flights to Vancouver and Kelowna Car rental services Wider choice of airlines/destinations Total Survey Respondents: 47 36 1 78% 2% 1 2% 1 2% 7 15% 46 100% BUSINESS CLIMATE Figure 78: Please rate the local business climate Poor Fair Good Excellent No Response Total Survey Respondents: 65 Count Percent 7 20 29 4 5 65 11% 31% 45% 6% 8% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 91 Figure 79: Rating of Business Climate Factors Business Climate Factors BIA Chamber of Commerce Colleges/Universities Community Futures Cultural/Recreational Amenities Economic Development Housing K-12 education Local Government Local Tax Structure Technical Training Tourism services Workforce Availability Workforce Quality Workforce Stability No Opinion 54 20 14 33 % No Opinion 83% 31% 22% 51% 8 8 8 18 9 13 10 16 10 9 8 Poor % Poor Fair % Fair Good % Good Excellent % Excellent 3 8 21 8 5% 12% 32% 12% 4 13 15 7 6% 20% 23% 11% 3 18 14 13 5% 28% 22% 20% 1 6 1 4 2% 9% 2% 6% 12% 14 22% 11 17% 23 35% 9 14% 12% 12% 28% 14% 20% 15% 25% 15% 14% 12% 12 10 9 6 5 26 11 17 9 12 18% 15% 14% 9% 8% 40% 17% 26% 14% 18% 15 27 15 16 15 16 15 22 12 12 23% 42% 23% 25% 23% 25% 23% 34% 18% 18% 26 18 19 21 25 12 15 14 24 26 40% 28% 29% 32% 38% 18% 23% 22% 37% 40% 4 2 4 13 7 1 8 2 11 7 6% 3% 6% 20% 11% 2% 12% 3% 17% 11% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 92 Figure 80: Business Climate Today vs. 5 Years Ago Worse today No opinion No change Better today Total Survey Respondents: 65 Figure 81: Business Climate 5 Years from Today Will be worse No opinion No change Will be better Total Survey Respondents: 65 Figure 82: Community's Strengths as a Place to do Business Utilities Low cost of living Stable jobs Diversified community Golf course Low property taxes Local customer base Business friendly Infrastructure Lack of competition Supportive municipality Loyalty Above average household income Proximity to mines Close to Alberta and USA Total Survey Respondents: 65 Count Percent 7 13 22 23 65 Count 11% 20% 34% 35% 100% Percent 2 9 13 41 65 Count 3% 14% 20% 63% 100% Percent 1 1 1 1 1 1 2 2 2 2 3 3 2% 2% 2% 2% 2% 2% 4% 4% 4% 4% 6% 6% 8 16% 9 18% 14 27% 51 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 93 Figure 83: Community's Weaknesses as a Place to do Business Count High business tax No community space Competition from the mining industry Affordable housing Infrastructure Resistance to change Healthcare Available office space Competition from Alberta and USA Transient population Isolated location High costs Lack of support for small businesses Lack of diversification Total Survey Respondents: 65 Figure 84:Barriers to Growth in Community No Response No Yes Total Survey Respondents: 47 Figure 84b: Barriers to Growth in Community Business oriented facilities Lack of promotion Affordable retail locations Competition from Alberta and USA Infrastructure Availability of local supplies Percent 1 1 2% 2% 1 2% 2 3 3 4 4 3% 5% 5% 6% 6% 4 6% 7 8 8 11% 13% 13% 9 14% 9 64 14% 100% Count Percent 5 8 34 47 Count 11% 17% 72% 100% Percent 1 3% 2 5% 2 5% 2 5% 2 5% 3 8% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 94 Transient population Shortages of services Small population Resistance to change Land constraints Lack of diversity Total Survey Respondents: 47 3 4 4 5 5 6 39 8% 10% 10% 13% 13% 15% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 95 Figure 85: Level of Service from business support providers No respons e % No respons e Unable to assist % Unable to assist 44 20 70% 32% 12 3 19% 5% 2 5 3% 8% 56 89% 6 10% 0 35 56% 9 14% 39 62% 9 41 65% Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 45 Invest Kootenay Kootenay Aboriginal Business Advocates Society Business Support Providers Basin Business Advisors Chamber of Commerce College Industry Liaison Officer Community Futures Continuing Education and Workforce Training Economic Development Organization / Commission % Fair Good % Good Excellent % Excellent 1 12 2% 19% 3 17 5% 27% 1 6 2% 10% 0% 0 0% 1 2% 0 0% 3 5% 2 3% 11 17% 3 5% 14% 2 3% 5 8% 7 11% 1 2% 9 14% 2 3% 3 5% 7 11% 1 2% 71% 12 19% 2 3% 1 2% 2 3% 1 2% 46 73% 13 21% 2 3% 1 2% 1 2% 0 0% 44 70% 13 21% 2 3% 1 2% 3 5% 0 0% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses Poor % Poor Fair 96 National Research Council Industrial Research Assistance 56 89% 6 10% 0 0% 0 0% 1 2% 0 0% Scientific Research and Experimental Development Tax Incentive Program 55 87% 7 11% 0 0% 0 0% 1 2% 0 0% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 97 Figure 86: Are there suppliers you think could locate in this region? No Yes No Response Total Survey Respondents: 47 Figure 86b: Are there suppliers you think could locate in this region?: If Yes, please list Forestry supply companies Retail stores Hotel chains Electrical suppliers Grocery stores Mining supply companies No Response Total Survey Respondents: 47 Figure 87: Do you supply your products or services to any company in the community or region? No Yes No Response Total Survey Respondents: 47 Figure 88: What sectors, business or industry do you think the community should try to attract? No No Response Count Percent 11 15 21 47 Count 23% 32% 45% 100% Percent 1 2% 1 1 2 3 2% 2% 4% 6% 6 13% 34 48 71% 100% Count Percent 1 31 15 47 Count 2% 66% 32% 100% Percent 1 18 2% 28% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 98 Yes Total Survey Respondents: 65 Figure 88b: What sectors, business or industry do you think the community should try to attract?: If Yes, please list Recycling Education Housing Hotels Retail Stores Restaurants Tourism Manufacturing Total Survey Respondents: 65 46 65 Count 71% 100% Percent 1 1 3 3 7 13 13 13 54 2% 2% 6% 6% 13% 24% 24% 24% 100% Figure 89: Importance of Business Competitiveness Factors Not applicable % Not applicabl e Not important at all or not very important % Not important at all or not very important Somewhat important, very important % Somewhat important, very important 19 43% 14 32% 11 25% 11 25% 12 27% 21 48% Add or change in business, products or services 8 18% 8 18% 28 64% Affordable shipping/freight 12 27% 6 14% 26 59% Availability of telecommunications infrastructure and services 5 11% 3 7% 36 82% 8 18% 12 27% 24 55% 10 23% 11 25% 23 52% Importance of Business Competitiveness Factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 99 Expansion of workforce employees 6 14% 11 25% 27 61% Improvement business management 9 20% 5 11% 30 68% Improvement of customer services 8 18% 1 2% 35 80% Improving worker productivity 7 16% 7 16% 30 68% New market development locally 7 16% 9 20% 28 64% New market development outside of region 8 18% 16 36% 20 45% New product research and development 9 20% 8 18% 27 61% Reliable air transportation 13 30% 19 43% 12 27% Strategic alliances (joining with other businesses to provide products/services) 9 20% 12 27% 23 52% 8 18% 14 32% 22 50% 9 20% 15 34% 20 45% 6 14% 4 9% 34 77% 7 16% 8 18% 29 66% Water/sewer availability Water/sewer costs Workforce skill development Workplace health and safety Survey Respondents: 44 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 100 Figure 90: Performance on Key Productivity Drivers Performance on Key Productivity Drivers Not % Not Applicable Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Innovation & the use of technology 17 39% 2 5% 5 11% 12 27% 8 18% Investing in people and skills 18 41% 0 0% 4 9% 12 27% 10 23% Leadership and management capacity 17 39% 1 2% 1 2% 15 34% 10 23% Measuring impact of productivity efforts/ investments 19 43% 0 0% 6 14% 13 30% 6 14% Networking and collaboration with other businesses 18 41% 1 2% 6 14% 12 27% 7 16% Organizing work (structures & processes) 17 39% 0 0% 4 9% 17 39% 6 14% 17 39% 0 0% 1 2% 16 36% 10 23% Productive workplace culture Survey Respondents: 44 Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 101 Figure 91: Economic Drivers with Greatest Potential for Growth Count Arts Technology-based businesses Education Finance 2 1% 2 1% 2 1 1% 1% 2 1% 1 1% 2 1% 3 2% 4 3% 7 4% 11 7% 19 31 34 37 158 12% 20% 22% 23% 100% Other niche service businesses (e.g. services to seniors) Government culture and creative businesses Health & wellness Green or environmental businesses Manufacturing Relocation of people from urban centres Forestry Construction Tourism Other Total Survey Respondents: 63 Figure 91b: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3): If Other please specify Restaurants Retail No Response Mining Total Survey Respondents: 44 Percent Count Percent 1 1 18 25 45 2% 2% 40% 56% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 102 Figure 92: Impacted by Proximity to Alberta No Response No Yes Total Survey Respondents: 44 Count Percent 11 14 19 44 25% 32% 43% 100% Figure 92b: Impact of Proximity to Alberta Count Percent Comments Transport regulations 1 5% Access to Equipment 1 5% Negative impact 2 10% Lower cost supplies 2 10% Access to skilled trades 2 10% Positive impact 4 19% Better shopping 4 19% Competition 5 24% Total 21 100% Companies impacted by proximity to Alberta: 19 ASSESSMENT AND PLANS Figure 93: Facility's Overall Health Not applicable Fair Good Excellent Total Survey Respondents: 47 Figure 94: Parent Company Health Not applicable Poor Fair Good Excellent Total Survey Respondents: 47 Count Percent 10 1 21 15 47 21% 2% 45% 32% 100% Count Percent 27 1 1 6 12 47 57% 2% 2% 13% 26% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 103 Figure 95: Local Management's Attitude Towards Community Not applicable Poor Good Excellent Total Survey Respondents: 47 Figure 96: Parent Company's Attitude Towards Community Not applicable Poor Good Excellent Total Survey Respondents: 47 Figure 97: Risk of Facility Closing High Moderate Low Total Survey Respondents: 65 Figure 98: Risk of Facility Downsizing High Moderate Low Total Survey Respondents: 65 Count Percent 11 1 11 24 47 23% 2% 23% 51% 100% Count Percent 27 2 8 10 47 57% 4% 17% 21% 100% Count Percent 1 8 44 53 2% 15% 83% 100% Count Percent 1 5 40 46 2% 11% 87% 100% Columbia Basin Business Retention and Expansion Project: Report on Sparwood Businesses 104