Business Retention and Expansion: Report on the Manufacturing Sector March 2018 EXECUTIVE SUMMARY This report describes findings from Business Retention and Expansion (BRE) surveys conducted with businesses in the manufacturing sector within the Columbia Basin-Boundary region between 2012 and 2016. 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. This BRE combines the results of 125 companies, presenting a regional perspective on the manufacturing sector. 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 came from Nelson and Area (20%), followed by Slocan Valley (12%), Revelstoke (10%), and Creston and Area. The quality of the product or service they produce was the most important factor for success. The majority of competition reported was coming from within the regional area. Most companies surveyed have been in business for over 20 years. Over half of the companies are ‘growing’. Respondents reported a total of 4,221 employees. Employees are primarily full-time (93%), with just 4% part-time and 3% temporary. The majority of employers (90%) recruit their workforce locally. Sales and Marketing training was the area most commonly (31%) listed as key areas for training or professional development currently and in five years. The most critical considerations for employees are the cost of living and housing. Businesses indicated the market for their product/service is increasing (60%) or stable (34%). 56% of businesses report that the majority of their sales are to customers within the local area. The most frequent reason (87%) for purchasing products or services outside of the area is that the product is not available locally. 68% of businesses own the facility in which they operate. 68% of businesses plan to expand within 3 years, with the vast majority (89%) indicating that expansion will occur within the community. Top barriers to expansion are financing, lack of suitable premises, and challenges identifying and accessing new markets. Top rated government services include access to highway/roads and access to the US border. Services with the lowest ratings include availability of buildings for lease or purchase, airport facilities, and availability of appropriately zoned land. The West Kootenay Regional Airport and the Kelowna International Airport are the most used airport by local businesses in the manufacturing sector. The overall business climate was rated as good by most businesses, and the majority of businesses believe that the business climate will improve over the next five years. Business climate factors that received the highest ratings include the cultural and recreational amenities, Community Futures, and tourism services. ii Assessment and Plans Tourism related businesses were thought to be the industry that could be attracted to the region that would have the most strategic benefit to the industry, followed by manufacturing and technology businesses. The business competitiveness factors that are most important to respondents include affordable shipping/freight and new market development outside of region The overall health of their company was rated as good by 60% of businesses and excellent by 18% of businesses. The majority of businesses rate their risk of closing or downsizing as low. Next Steps and Potential Action Areas The results of this survey can be used to inform short- and long-term planning at the regional, subregional, or community scale. 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 within the manufacturing sector. Shipping & Receiving A recurring theme was the need to improve shipping and receiving services. 15% of respondents indicated that improving shipping and receiving services would improve the services and infrastructure, and the area of greatest weakness identified by businesses was the cost associated with shipping and receiving. Affordable shipping and freight services were identified by 92% of businesses (77 respondents) as the most important action that could improve business competitiveness. Future work in this area could be undertaken to understand the specific challenges business face in this area and identify potential actions. Workforce – Recruitment & Retention The businesses interviewed reported a total of 4,221 employees. 93% of employees are full-time, followed by 4% part-time employees, and 3% are temporary. The size of the workforce appears stable and healthy, with 44% of businesses indicating that the number of employees at their business has stayed the same. Anticipated employment trends are also stable with the majority of businesses expecting the number of casual, part time and full time employees to stay the same or increase. The majority of businesses (90%) recruit locally. 41% of businesses indicate that they currently face recruitment challenges, 40% anticipate future difficulties, and 23% of businesses stated they did believe there were strategies that could address recruitment. Actions identified by respondents that could prove helpful include: supporting affordable housing and providing training and education. General labourers and profession/technical employees were areas where future and current recruitment efforts are needed. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living and housing. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 10% of essential employees under the age of 25. 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 businesses with local schools and post-secondary institutions. Business Growth & Expansion 55% of businesses in the region report being in a growth cycle and 24% are maturing. Findings indicate a strong and stable manufacturing sector, with optimism for continued growth. iii Businesses also report that employment rates are stable, and that they anticipate continued stability over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on business conditions in the manufacturing sector. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include financing, the lack of suitable premises, and identifying and accessing new markets. Small to Medium Sized and Independent Businesses Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses and an exploration of shared service provision in the areas of payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include promoting existing supports available from Small Business BC and the Basin Business Advisors Program. Supply Sourcing and Procurement There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A regional 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. Training 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, increasing awareness of new trends, technologies and changes to the manufacturing sector, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 17% of respondents indicated that they have a formal succession plan and just over half (52%) have an up-to-date business plan. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small to medium sized, independent businesses in the manufacturing sector. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among businesses, and may include direct outreach to those businesses identified as part of the BRE survey. iv TABLE OF CONTENTS PROJECT OVERVIEW ............................................................................................................................ 1 The BRE Concept ............................................................................................................................. 1 Project Objectives............................................................................................................................ 1 RESEARCH CONSIDERATIONS .............................................................................................................. 2 The BRE Survey ................................................................................................................................ 2 The Data Set .................................................................................................................................... 2 Data Collection ................................................................................................................................ 2 Data Input, Analysis and Reporting ................................................................................................. 2 RESEARCH FINDINGS ........................................................................................................................... 3 Company Information ..................................................................................................................... 3 Local Workforce............................................................................................................................... 9 Sales ............................................................................................................................................... 20 Facilities and Equipment ............................................................................................................... 24 Government Services .................................................................................................................... 32 Business Climate ............................................................................................................................ 36 Assessment and Plans ................................................................................................................... 49 RECOMMENDATIONS ........................................................................................................................ 51 Next Steps...................................................................................................................................... 51 Potential Action Areas ................................................................................................................... 52 APPENDIX A: DATA TABLES................................................................................................................ 55 Company Information ................................................................................................................... 55 Local Workforce............................................................................................................................. 66 Sales ............................................................................................................................................... 86 Facilities and Equipment ............................................................................................................... 99 Government Services .................................................................................................................. 114 Business Climate .......................................................................................................................... 119 Assessment and Plans ..................................................................................................................... 3 APPENDIX B: NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODES...................... 6 v PROJECT OVERVIEW This report describes findings from Business Retention and Expansion (BRE) surveys of 125 businesses from across the Columbia Basin1. These surveys were conducted between 2012 and 2016. The BRE surveys are initiated by local community partners involved in the area of economic development, typically the local Chamber of Commerce plays a pivotal role. In most instances the BRE surveys are undertaken as part of the regular services that the local agencies provide to local businesses. The agencies then work collaboratively to help implement the recommendations identified in the BRE survey. This report was initiated and prepared by Selkirk College’s Applied Research and Innovation Centre as part of the Regional Innovation Chair’s research portfolio. The Columbia Basin Rural Development Institute (RDI) provided training, data analysis, and report writing support to participating BRE communities. 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. A sector based report, such as this report on the manufacturing sector, allows for a regional overview. It can be used to draw attention to issues that are regional in nature and foster collaboration among stakeholders on areas of mutual interest. Project Objectives BRE studies typically focus on four objectives: 1. Identify the needs, concerns, and opportunities of existing businesses in order that, where appropriate, action can be taken to respond to the businesses’ needs or development opportunities; 2. Learn of the future plans of the region’s businesses with respect to expansion, relocation and /or retention and follow-up where assistance can be provided; 3. Demonstrate the region’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. 1 BRE surveys can be downloaded from: http://cbrdi.ca/research-areas/applied-research/businessretention-expansion/ Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 1 As this BRE was commissioned by the Columbia Basin RDI the results will be circulated among local governments, economic development organizations, and manufacturing related organizations within the region. Those communities with an existing BRE will be able to compare their local manufacturing sector with the regional sector as a whole, potentially identifying new ideas and actions. RESEARCH CONSIDERATIONS The BRE Survey The RDI has a licence agreement with the Economic Development Association of BC for BC Business Counts, a program that provides access to an online BRE survey, contact management, and reporting system called ExecutivePulse. Data presented in this report were collected as part of a comprehensive BRE survey that is aligned with surveys conducted by other participants in the BC Business Counts program across the province 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 thirteen Labour Market specific questions were added to the base survey in order to identify and address labour market supply and demand, uncover emerging labour market trends, as well as determine barriers to labour retention. 98 of the 125 manufacturing sector businesses included in this report completed the additional thirteen region-specific questions. The Data Set The companies that participated in the interviews were identified and selected as part of each of their communities’ individual Business Retention and Expansion projects. Selection criteria differs with each community, but typically includes a review of business license information and North American Industry Classification System (NAICS) codes to ensure a representative cross section of the business community. Subsequent to those community based surveys, the companies included in this report were identified as forming part of the manufacturing sector through an analysis of the North American Industry Classification System (NAICS) codes. A list of the NAICS codes used in this report are attached as Appendix B. A total of 125 businesses from the manufacturing sector within 17 communities from across the region were identified for inclusion in this report. Data Collection Researchers within each community are retained by community BRE partners to interview local companies and to enter the data gathered from the interviews into the ExecutivePulse database. On average, the interview process takes approximately 90 minutes to two hours to complete, and the data entry requires an additional hour per interview. The persons interviewed are typically either the owners of the businesses or a senior manager in the company. Data Input, Analysis and Reporting The people carrying out the interviews are typically responsible for entering the data into the ExecutivePulse system. The interviewers ensure that all information is maintained in a confidential Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 2 manner prior to entry into the database. The RDI is responsible for confidentiality of the information after entry into the database. Quantitative data was analysed using descriptive statistics and qualitative data was analysed using the grounded theory method of generating key coding themes. Findings and related recommendations were assembled into this report by Selkirk College researchers. RESEARCH FINDINGS2 Company Information Regions Represented 20% of businesses included in this report are from Nelson and area, 12% from the Slocan Valley, 10% from Revelstoke, and 10% from Creston and area. Figure 1: Regions Represented Sparwood Slocan Valley Rossland Revelstoke Nelson & Area Nakusp Lower Columbia Kootenay Boundary Kimberly Kaslo Grand Forks & Area Golden Fernie & Area Creston & Area Cranbrook Columbia Valley Castlegar 2% 12% 1% 10% 20% 1% 8% 4% 2% 7% 5% 2% 6% 10% 6% 3% 1% 0% 5% 10% 15% 20% 25% Note: 125 respondents Facility Function The vast majority of respondents (89% or 85 respondents) indicated that their facility is used for manufacturing. Other primary functions include ‘headquarters’ (67% or 64 respondents), ‘services’ (63% or 60 respondents), and ‘distribution’ (55% or 52 respondents). Fewer respondents indicated that their facility serves an engineering/research and development function or warehousing function. 2 Some questions allow multiple responses, which can result in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 3 Figure 2: Facility function(s)3 Manufacturing 89% Headquarters 67% Services 63% Distribution 55% Warehousing 52% Engineering/RD 44% 0% 20% 40% 60% 80% 100% Note: 95 respondents Competition The majority of competition (52 % or 25 responses) reported was coming from within the regional area4. Figure 3: Location of primary competitors None 2% In Region 52% Outside Canada 29% In Province 21% In Canada 19% 0% 10% 20% 30% 40% 50% 60% Note: 48 respondents Factors for Success When asked what factors made their company successful in this region, the highest number of respondents cited the quality of product/service (19% or 21 businesses), location (9% or 10 businesses), community support (6% or 7 businesses), and customer service (5% or 6 businesses). Excerpts illustrating the factors that make the company successful: Figure 4: Key words and respondents' discussions of the factors that make them successful in this region 3 4 Multiple functions were listed by respondents resulting in more responses than number of respondents. Multiple competitors were listed by respondents resulting in more responses than number of respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 4 “Uniqueness of the business, as well as having a visible process. Customers can view the work being done therefore are more invested in all aspects of the learning process.” “Growing resort community (lots of building)” ”Access to good wood and good internet. Support of the community and good employees.” “Culture in Nelson, local support, remoteness; contributes to self-reliance for culture and entertainment.” “Able to access an international market (market products online).” Choosing the Location Respondents most frequently cited the fact that they already lived in the location prior to locating the business (27% or 13 respondents) followed by the location itself was the reason for operating a business in the area (22% or 11 respondents). Respondents also indicated that the lifestyle offered was the reason for operating a business in a specific location (20% or 10 respondents). Figure 5: Choosing the Location Already living here 27% Location 22% Lifestyle 20% Natural resources 8% Close to family 8% Business opportunity 8% Born and raised here 8% Bought an existing business 6% Market growth 2% Established business 2% Connections to the community 2% Business expansion 2% 0% 5% 10% 15% 20% 25% 30% Note: 49 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 5 Other Locations Figure 6: Other Locations 17% of respondents (18 respondents) indicated that their company has other locations. Yes 17% Note: 104 respondents No 83% 57% of those other locations (4respondents) are in other areas of the province, 71% (5 respondents) are in other parts of Canada, and 29% (2 respondents) are outside of the country. Figure 7: Location of Other Locations Elsewhere in nation In Province Outside Canada 71% 57% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 7 respondents 91% (81 businesses) of respondents reported that their headquarters are located within British Columbia, 6% (5 businesses) indicated that they are headquartered in other parts of Canada, while 3% (3 business) has their headquarters outside of Canada. Figure 8: Location of headquarters In Province 91% Elsewhere in nation 6% Outside Canada 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Note: 89 respondents Age and Life Cycle Stage Half of all respondents (55% or 66 respondents) reported that their business is in the ‘growing’ cycle stage. Another 24% (29 businesses) indicated that their business is in the ‘maturing’ stage. Only 14% (17 businesses) indicated that they are in the ‘emerging’ stages, and 7% (8 businesses) indicated they were declining. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 6 Figure 9: Life cycle stage Maturing 24% Growing 55% Emerging 14% Declining 7% 0% 10% 20% 30% 40% 50% 60% Note: 120 respondents Most businesses (42 respondents or 35%) reported that they have been in business for over 20 years. A significant number reported that they have been in business for 10 - 19 years (32 respondents or 27%), while 17% (20 respondents) indicated they have been in business for between 1 and 4 years, and 16% (19 businesses) have been in business for between 5 and 9 years, and just 6% (7 businesses) have been in business less than 1 year. Figure 10: Length of time facility has operated >20 Years 10-19 Years 5-9 Years 1-4 Years <1 Year 35% 27% 16% 17% 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 120 respondents Ownership and Management 92% (109 respondents) of all companies are privately owned, with just 8% publicly owned. Most respondents (69 respondents or 56%) indicated that their business is classified as a corporation, while 31% (38 respondents) indicated that they are a sole proprietorship. The remainder of businesses identified as limited liability partnership (3% or 4 respondent), partnership (8% or 10 respondents), or other (2% or 2 respondents). Figure 11: Type of business Other Corporation Sole proprietorship Partnership Limited liability partnership (LLP) 2% 56% 31% 8% 3% 0% 10% 20% 30% 40% 50% 60% Note: 123 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 7 Figure 12: Ownership and management changes in last 5 years 76% of businesses (91 businesses) have not seen a management or ownership change in the last 5 years, while 24% of businesses (28 businesses) have changed management and/or ownership over that same period of time. Just 14% of businesses (17 respondents) are expecting an ownership change in the near future. Of the 28 respondents that have seen changes in management and or ownership, 88% (23 businesses) report that the change had a positive impact. Yes 24% No 76% Note: 119 respondents Succession and Business Plans Of the 17 businesses (14%) that responded and reported a pending ownership change, 9 (60%) expect the change will happen in 3 or more years, 3 (20%) expect the process to take 2 years, and 20% or 3 businesses anticipate it will take 1 year or less. Figure 13: Anticipated timeline for ownership change 3 years or more 60% 2 years 20% 1 year or less 20% 0% 10% 20% 30% 40% 50% 60% 70% Note: 15 respondents 41% of respondents (7 respondents) expect that the current owner will exit the business by selling it to a non-family member, while 29% (5 respondents) expect it to be sold/transferred to a family member. 24% (4 businesses) expect it to be sold to another company. Figure 14: Anticipated exit strategy Other 6% Sell/transfer to a non-family member 41% Sell/transfer to a family member 29% Sell to another company 24% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 8 Note: 17 respondents Figure 15: Existence of formal succession plan Not applicable , 6% Only 17% (18 respondents) of businesses reported that they have a formal succession plan in place, and just 22% (24 respondents) have identified a successor for their business. Of those that completed a succession plan, 62% (8 respondents) received assistance in its preparation. Yes, 17% No, 78% Note: 109 respondents Figure 16: Existence of current business plan Just over half of all respondents (52% or 59 respondents) indicated that they have a business plan in place. Note: 113 respondents No, 48% Yes, 52% Local Workforce Size of Workforce The 125 businesses interviewed reported a total of 4,221 employees. 50% or 63 of the businesses surveyed indicated that they have less than five employees. Figure 17: Total number of employees 50-99 20-49 10-19 5-9 Less than 5 3% 13% 14% 14% 50% 0% 10% 20% 30% 40% 50% 60% Note: 125 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 9 93% (3,923) of employment positions at surveyed businesses are full-time, while just 4% (185) are part-time, and 3% (113) are temporary. Figure 18: Nature of employment Temporary Part Time Full Time 3% 4% 93% 0% 20% 40% 60% 80% 100% Note: 125 respondents 44% of respondents (51 businesses) indicated that the number of employees at their business has stayed the same historically, while 33% (38 businesses) indicated that the size of their workforce has increased. 23% (26 businesses) indicated a decrease. Figure 19: Historical Employment trend5 Increasing Staying the same Declining 33% 44% 23% 0% 10% 20% 30% 40% 50% Note: 115 respondents The last three years has generally seen stability in the size of the workforce, with between 54% and 81% of businesses reporting that the number of employees has stayed the same. Between 10% and 36% reporting that employment over that three year time period has increased, while between 10% and 14% indicated there was a decline. Full time employment saw the greatest increase. Figure 20: Employment trend over last 3 years 10% 14% 10% Decreased Stayed the same 54% 65% Casual 81% part time full time 10% Increased 0% 5 20% 20% 36% 40% 60% 80% 100% The question considered a 10 year historical trend. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 10 Note: #of respondents varies The majority of businesses interviewed expect the size of their workforce to stay the same over the next 3 years, with between 50% and 68% of businesses reporting that the number of employees is expected to stay the same, and between 30% and 47% reporting that employment over the next three year time period is expected to increase. Figure 21: Employment trend over next 3 years 1% 4% 4% Decreased Casual 68% Stayed the same 62% Part Time 50% Full Time 30% 34% Increased 47% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: #of respondents varies Workforce Demographics 56% (61 respondents) indicated that the majority of their essential employees are between 35 and 49 years old. 17% (18 respondents) of businesses indicated that their workforce is between 26 and 34,, 17% (19 businesses) are 50 and older, and 10% (11 businesses) have a workforce under the age of 25. Figure 22: Age of the majority of essential employees 50 or older 17% 35 - 49 56% 26 - 34 17% Less than 25 10% 0% 10% 20% 30% 40% 50% 60% Note: 109 respondents Wages When reporting on average wages for skilled or professional workers, the majority of responses indicated they pay between $20 and $29 per hour (42% or 34 businesses) and between $30 and $49.99 per hour (30% or 24 businesses). The most commonly reported average hourly wage for semi-skilled workers (43% or 28 businesses) was between $20 -$29.99. The two most commonly reported average wages for entry-level workers (28% or 16 businesses of respondents) was between $10 and $12.99 (28% or 16 businesses of respondents) and $15 - $19.99 (28% or 16 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 11 businesses of respondents). 53% of respondents (49 respondents) reported that their wage scale is similar to other businesses in the region6. Figure 23: Wages in relation to other businesses in the region Greater than 39% Same as 53% Lower than 9% 0% 10% 20% 30% 40% 50% 60% Note: 93 respondents Recruitment and Retention Of those businesses that responded, 83% (77 respondents) indicated that the number of unfilled positions at their company would remain constant. Figure 24: Trend in unfilled positions Increasing Decreasing Stable 14% 3% 83% 0% 20% 40% 60% 80% 100% Note: 93 respondents The vast majority of respondents (90% or 99 respondents) reported that they primarily recruit employees from local labour markets. 6% (7 respondents) recruit provincially, while 4% (4 respondents) report that they recruit at the national level. Figure 25: Location of workforce recruitment Locally Provincially Nationally 90% 6% 4% 0% 20% 40% 60% 80% 100% Note: 110 respondents 41% (48 respondents) indicated that they have experienced recruitment challenges and 26% (29 respondents) indicated that they have experienced retention challenges. 6 Detailed wage data is found in Appendix A. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 12 Figure 26: Recruitment and retention challenges Recruitment challenges Retention challenges 41% 26% 0% 10% 20% 30% 40% 50% Note: # of respondents varies When asked what efforts their business has undertaken to retain employees, 51 businesses responded. The most frequent response was fair wages (26% or 14 respondents), followed by and benefits (17% or 9 respondents), supporting a positive environment (13% or 7 respondents), and flex time (13% or 7 respondents). Figure 27: Key words in respondents' discussion of retention efforts When asked what efforts businesses have undertaken to recruit employees, efforts that emerged most often were word of mouth (31% or 18 respondents) and advertising (28% or 16 respondents). Respondents also cited a variety of other means, including using recruitment firms and online job boards. Figure 28: Recruitment Activities None Word of mouth Advertising Recruiting Firms Online job boards WorkBC Road side sign Canada Job Bank Training Social media (Facebook/ Linkedin) Offer benefits/bonuses Training opportunities Trade Journals Selling on lifestyle Networking Job Fairs Contact with KES College recruitment 19% 31% 28% 9% 7% 5% 5% 5% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 0% 5% 10% 15% 20% 25% 30% 35% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 13 Note: 58 respondents Of the 47 companies that indicated they were experiencing recruitment challenges, the areas currently being recruited for among surveyed businesses include the general labourer (21% or 10 respondents), professional/technical staff (17% or 8 respondents), and machine operators (17% or 8 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 29: Current recruitment areas Other 60% None 2% General Laborer 21% Professional/Technical 17% Machine Operators 17% Plant Managers / Operators 11% Material/Fabricators 11% Manufacturing/Other 11% Maintenance 11% Machinists 9% Electrical/Electronics 9% Construction/Contractors 9% Administrative/Clerical 9% Professional/Other 6% Mechanics 6% Advanced Manufacturing Workers 6% Sales/Retail 4% CDL Drivers 4% Assembler/Line Workers 4% Sales/Service 2% Graphics Arts/Printing 2% Food/Beverage Service 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 47 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 14 40% of respondents (46 businesses) anticipate future recruitment difficulties. The most commonly anticipated recruitment areas which may prove challenging include professional/technical (16% or 7 respondents) and general/labour (16% or 7 respondents). The responses included in the ‘other’ categories charted below are detailed in Appendix A. Figure 30: Future areas where recruitment may be challenging Other Professional/Technical General Laborer Material/Fabricators Machinists Machine Operators Mechanics Maintenance Electrical/Electronics Manufacturing/Other Advanced Manufacturing Workers Sales/Service Sales/Retail Professional/Other Plant Managers/Operators Food/Beverage Service Construction/Contractors Assembler/Line Workers CDL Drivers 60% 16% 16% 11% 11% 11% 9% 9% 9% 7% 7% 4% 4% 4% 4% 4% 4% 4% 2% 0% 10% 20% 30% 40% 50% 60% 70% Note: 45 respondents Figure 31: Strategies to overcome employee recruitment challenges Yes 23% No 78% 23% of respondents (9 respondents) indicated that they believed there were strategies that could be undertaken to address employee recruitment. 25% (2 respondents) believed that affordable housing would be helpful, while 25% (2 respondents) suggested providing training and education could help. Note: 40 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 15 Skills and Training The majority of respondents (53%) indicated that over half of their workforce is comprised of skilled or professional workers, 15% indicated that their workforce is mainly semi-skilled workers, and 10% indicated that entry-level workers make up the majority of their workforce. Figure 32: Skill level of majority of workforce Entry-level Semi-skilled Skilled/Professional 10% 15% 53% 0% 10% 20% 30% 40% 50% 60% Note: # of respondents varies 43% (49 businesses) indicated that there is a training budget to upgrade employee skills. 89% (42 businesses) indicated that their company offers in-house training, 23% (11 businesses) use contracted training. Figure 33: Training Budget 77% No 11% 57% contracted training in-house training 23% Yes training budget 89% 43% 0% 20% 40% 60% 80% 100% Note: # of respondents varies Figure 34: Awareness of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills Yes 44% No 56% 44% of respondents (50 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. Note: 113 respondents 79% or 92 respondents indicated that there are areas of training or professional development that would be of Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 16 benefit. Most commonly listed among these areas were sales/marketing (31% or 28 businesses), and technical training (16% or 14 businesses). Figure 35: Training or professional development needs Sales/Marketing 31% Technical training 16% Emerging industry practices 11% Safety/First Aid/Food Safe 10% Business Management 9% Managerial training 8% Industrial equipment operations 7% Customer service 7% Social media 6% Computer skills 6% Web site design 4% Accounting/Bookeeping 4% Emerging technologies 2% Word Press 1% Time management 1% Personal growth workshops 1% Office skills 1% Metal fabrication 1% LEAN initiatives 1% Herbalist training 1% Forklift Training 1% Bookkeeping 1% 0% 5% 10% 15% 20% 25% 30% 35% Note: 90 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 17 When asked what new training might need to be considered in the next five years, the most commonly cited response was marketing and social media (15% or 5 businesses) and computer and technology training (12% or 4 businesses). Figure 36: Areas for new Training in next five years None 6% Marketing / Social Media 15% Computer and technology training 12% Emerging industry practices 9% Technology Skills 6% Food Safe 6% Emerging technologies 6% Website design 3% Product training 3% Microbiology 3% LEAN manufacturing 3% Human resources 3% HACPP 3% Cocoa processing 3% Building Certification 3% 0% 2% 4% 6% 8% 10% 12% 14% 16% Note: 33 respondents 61% of respondents (66 businesses) stated that they prefer training when it is delivered through a classroom setting, while 53% (57 businesses) preferred individual coaching, and 40% had a preference for online / webinar training (43 businesses). Figure 37: Preferred modes of training Other Classroom Individual coaching Online/ Webinar training 16% 61% 53% 40% 0% 10% 20% 30% 40% 50% 60% 70% Note: 108 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 18 68% of respondents (69 businesses) typically seek training opportunities that are offered locally, and 34% (34 businesses) travel to other areas in the province for their training or within the region (26% or 26 businesses). Fewer training opportunities are sought elsewhere in the country or in the United States. Figure 38: Usual training locations Local 68% British Columbia 34% Regional 26% Rest of Canada 16% United States 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 101 respondents Unions 7 businesses (6%) surveyed reported that they have union status. Employees The most frequently cited critical issues for employees are the cost of living (70% or 51 businesses) and housing (58% or 42 businesses). Child care (34% or 25 businesses) and transportation (30% or 22 businesses) issues were also cited. For a list of factors included in the “other” category charted below, refer to Appendix A. Figure 39: Critical considerations for employees Other 30% Cost of living 70% Housing 58% Child care 34% Transportation 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 73 respondents 91% of businesses (72 businesses) interviewed reported that over 75% of their employees live within the community, 17% (4 businesses) indicated that 75% of the employees live elsewhere in the region, and 13% (2 business) indicated that over 75% of their workforce lives outside of the region. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 19 Sales Market Size and Share The highest number of respondents (21 businesses or 26%) reported annual sales between $100,000 and $499,999 and $1 million - $4.9 million, respectively. The third highest number of respondents (9 businesses or 11%) reported annual sales of under $25,000. Figure 40: Annual sales $19.9 million to 10 million $9.9 million to 5 million $4.9 million to 1 million $999,999 to $500,000 499,999 to $100,000 $99,999 to $50,000 $49,999 to $25,000 Under $25,000 1% 6% 26% 7% 26% 6% 7% 11% 0% 5% 10% 15% 20% 25% 30% Note: 82 respondents7 The majority of businesses interviewed (60% or 74 businesses) indicated that the size of the market for their product or service is increasing. Another 34% (42 businesses), reported that the market is stable. Figure 41: Status of market for product/service Increasing Decreasing Stable 60% 6% 34% 0% 10% 20% 30% 40% 50% 60% 70% Note: 123 respondents 7 Note: question was optional for respondents. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 20 56% (57 businesses) of respondents indicated that their share of the market for their product in comparison with their competitors is increasing, while 41% (41 businesses) indicated that it is stable. A small number of respondents (3% or 3 businesses) indicated that their market share is decreasing. Figure 42: Market Share in Comparison to Competitors Increasing Decreasing Stable 56% 3% 41% 0% 10% 20% 30% 40% 50% 60% Note: 101 respondents Growth 35% of respondents (38 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 26% of respondents (28 businesses). A combined 25% (total of 27 businesses) expect strong sales growth of over 25%. 14% (15 businesses) of respondents expect their sales to remain stagnant, while a further 1% (1 business) expect sales to decline. Figure 43: Projected sales growth in the next year Over 100% 2% 50 - 99% 7% 25 - 49% 16% 10 - 24% 26% 1 - 9% 35% 0% 14% Declining 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 109 respondents The majority of responses (71% or 84 businesses) indicated that sales at their business have increased over the past five years, 13% (16 businesses) indicated that sales have remained relatively stable, and 8% (10 businesses) reported that sales have declined. 18% or 16 businesses reported that sales at their parent company have historically increased, 11% (10 businesses) reported that they have stayed the same, and 2% (2 business) reported a decline. It is worth noting the high non response/not applicable response to this question. 48% percent of respondents (51 businesses) reported that sales within their industry have been increasing, while 28% (30 businesses) reported that they have stayed the same, and an additional 9% (10 businesses) indicated sales in their industry are declining. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 21 Figure 44: Historic sales trend 15% Not applicable 68% 8% 48% Increasing 18% 71% within the industry At the parent company 28% Staying the same 11% 13% At this business 9% Declining 2% 8% 0% 20% 40% 60% 80% Note: # of respondents varies Export Sales 7% (7 businesses) indicated that their export sales have declined, 13% (13 businesses) indicated that they have been stable, and 29% (30 businesses) reported an increase in sales. Figure 45: Export sales trend Not applicable Increasing Staying the same Declining 52% 29% 13% 7% 0% 10% 20% 30% 40% 50% 60% Note: 104 respondents Source of Sales The customer base among manufacturing related businesses appears to be reliant on a diverse customer base, with the largest percentage of respondents (28% or 7 businesses) indicating that 1 – 9% of their sales are generated by their top three customers. Figure 46: Sales generated by top three customers 76 - 100% 51 - 75% 26 - 50% 10 - 25% 1 - 9% 24% 16% 12% 20% 28% 0% 5% 10% 15% 20% 25% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 30% 22 Note: 25 respondents Respondents most commonly (56%) indicated that over 50% of their sales are to customers within the local community or region. 10% indicated that over 50% of their sales are to the United States and 8% indicated the majority of sales are within the provincial market. Significantly fewer respondents reported that the majority of their sales were to the to international markets (3% or 3 respondents). Additionally, when asked whether they supply products or services to any company in the community, 61% (30 respondents) indicated that they did. Figure 47: Geographic source of majority of sales International United States National Provincial Local 3% 10% 6% 8% 56% 0% 10% 20% 30% 40% 50% 60% Note: # of respondents varies 36 respondents (32%) indicated that they import goods or services from other countries and 44 respondents (39%) indicated that they export goods or services to other countries. Figure 48: International trade status Not applicable 30% None 20% Export 39% Import 32% 0% 10% 20% 30% 40% 50% Note: 114 respondents Procurement Figure 49: Engagement with government procurement processes Yes 19% Only 19% (14 respondents) indicated that they engage in government procurement. Note: 73 respondents No 81% 37% of respondents (31 businesses) interviewed reported that they purchase a majority of their supplies Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 23 from local sources, and 37% (31 businesses) indicated that the majority of their supplies come from provincial businesses. 18% (15 businesses) indicated that national businesses supplied their business. Figure 50: Geographic source of majority of supplies International United States National Provincial Local 11% 7% 18% 37% 37% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: # of respondents varies Purchasing When reflecting on their reasons for purchasing products or services from out-of-area suppliers, the most common response (87% or 54 businesses) indicated that the products they need are not available locally. Figure 51: Reason for out-of-area purchasing Other 6% Product not available here 87% Higher costs locally 26% Quality of available products 6% No applicable to this business 3% Loyalty to current supplier 3% Unaware of local venders 2% No control - head office decision 2% 0% 20% 40% 60% 80% 100% Note: 62 respondents The most commonly referenced products that businesses stated they would like to source from a local supplier include packaging services, (6% or 3 respondents), and meats& dairy/fruits & vegetables / grains (6% or 3 respondents). Facilities and Equipment Size and Condition 34% (36 businesses) of respondents reported that their facility is between 1,000 square feet and 4,999 square feet in size. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 24 Figure 52: Size of facility 20,000 sq ft or more 15% 10,000-19,999 sq ft 13% 5,000-9,999 sq ft 10% 1,000-4,999 sq ft 34% less than 1,000 sq ft 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 105 respondents 44% of respondents (51 businesses) indicated that their facility is in good condition. Another 36% (41 businesses) indicated that it is in excellent condition and 17% (19 businesses) reported that their facility is in fair condition. 3% or 4 businesses reported that their facility is in poor condition. Figure 53: Condition of facility Poor Fair Good Excellent 3% 17% 44% 36% 0% 10% 20% 30% 40% 50% Note: 115 respondents 50% (57 businesses) of respondents indicated that their equipment is in good condition. 34% (38 businesses) indicated that it is in excellent condition and 14% (16 businesses) report their equipment is in fair condition. 2% or 2 businesses reported that their equipment was in poor condition. Figure 54: Condition of equipment Poor 2% Fair 14% Good 50% Excellent 34% 0% 10% 20% 30% 40% 50% 60% Note: 113 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 25 Ownership Figure 55: Ownership status of facility 68% of respondents (80 businesses) own the facility in which they operate and 32% (38 businesses) lease it. Leased, 32% Note: 118 respondents Owned, 68% Of the 38 businesses that lease their facility, and provided a response to the question, 65% have less than 1 year remaining on their lease and another 22% have between three and five years remaining. The majority of respondents that lease their facility (50% or 27 businesses) intend to renew their current lease agreement. Figure 56: Length of time remaining on lease >5 Years 9% 3-5 Years 22% 1-2 Years 4% <1 Year 65% 0% 10% 20% 30% 40% 50% 60% 70% Note: 23 respondents Figure 57: Ownership preference Lease, 17% 83% of respondents (38 businesses) would prefer to own their facility. Own, 83% Note: 46 respondents Investment and Expansion 56% of respondents (57 businesses) indicated that their company’s investment in their facility increased over the past 18 months, while 38% (39 businesses) indicated that the investment stayed the same. Only six businesses (6%) indicated that investment in their facility has decreased over the same time period. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 26 Figure 58: Historical Investment in facility (past 18 months) Increasing 56% Staying the same 38% Declining 6% 0% 10% 20% 30% 40% 50% 60% Note: 102 respondents 67% of respondents (76 businesses) indicated that there was room for expansion at their site, and 26% (30 businesses) indicated that there was not room at their site. Figure 59: Room for expansion Maybe 7% No 26% Yes 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% Note: 114 respondents Figure 60: Plans to expand within three years 68% of respondents (81 businesses) plan to expand within three years,33% (39 businesses) do not. Additionally, 55% (65 businesses) plan to expand in the next 12 – 18 months. No, 33% Yes, 68% Note: 120 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 27 Figure 61: Adequacy of current site to support expansion Of the 81 businesses planning expansion within the next three years, 73% (55 businesses) reported that their current site will be adequate. Notably however, 20 businesses (27%) reported that they will have to look for a new site to meet their planned expansion needs. No, 27% Yes, 73% Note: 75 respondents Figure 62: Expansion to occur in community No 11% The vast majority of respondents (89% or 68 businesses) indicated that expansion will occur within the community. Yes 89% Note: 76 respondents The total investment anticipated for the planned expansion plans ranges substantially. 31% (16 businesses) anticipate investing between $100,000 and $499,999, and an additional 21% (11 businesses) are planning investments less than $25,000. Figure 63: Estimated expansion investment $20 million and over 8% $10-19.9 million 2% $5-$9.9 million 4% $1-$4.9 million 17% $500,000-$999,999 8% $100,000-$499,999 31% $25,000-$99,999 10% Less than $25,000 21% 0% 5% 10% 15% 20% 25% 30% 35% Note: 52 respondents Of the 81 businesses planning expansion, 44% (22 businesses) responded to state that they expect to spend 100% of their expansion budget on equipment and technology, while 36% (18 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 28 businesses) responded to indicate that between 50 – 99% of their expansion budget will be devoted to equipment and technology. Figure 64: Component of expansion budget for equipment and technology 100% 50 to 99% Under 50% 0% 44% 36% 18% 2% 0% 10% 20% 30% 40% 50% Note: 50 respondents 12 respondents (27% of businesses) expect to spend under 50% of their expansion budget on real estate, while another 25% (11 businesses) expect to spend 100 and or 0%, respectively%. Figure 65: Component of expansion budget for real estate 100% 25% 50 to 99% 23% Under 50% 27% 0% 25% 20% 21% 22% 23% 24% 25% 26% 27% 28% Note: 44 respondents 36% (12 respondents) of businesses indicated that expansion plans will be less than 1,000 square feet. 33% (11 respondents) of businesses anticipated an expansion of between 1,000 square feet and 4,999 square feet, while just six respondents (18%) expected an expansion of between 5,000 and 9,999 square feet. Figure 66: Size of facility expansion 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 3% 9% 18% 33% 36% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 33 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 29 Facility Upgrades Figure 67: Recent facility upgrades 73% of businesses (35 businesses) indicated that there had been recent facility upgrades. Of those 35 businesses, 36% (12 businesses) indicated that those upgrades were completed in the last 12 months. No 27% Note: 48 respondents Yes 73% Figure 68: Planning facility upgrades 51% (23 businesses) indicated that they are planning facility upgrades, and 48% (10 businesses) anticipate those upgrades occuring within 12 months, and another 24% (5 businesses) expect them to occur within 3 months. No 49% Yes 51% Note: 21 respondents Respondents planning to upgrade were also asked to identify any barriers to upgrading. The most frequently cited barrier was space (29% or 2 businesses). Figure 69: Barriers to upgrading None 29% Space 29% Taxes 14% Poor access to site 14% Owership 14% 0% 5% 10% 15% 20% 25% 30% Note: 7 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 30 Respondents cited a variety of factors that act as constraints to their expansion. The most common of those were financing (43% or 33 businesses), lack of suitable premises (24% or 18 businesses), and identifying and accessing new markets (24% or 18 businesses). Refer to Appendix A for a list of the ‘other’ responses. Figure 70: Barriers to expansion Finance Lack of suitable premises Identifying and accessing new markets Other (please specify): Lack of skilled staff Transport/freight Problems with DAs Local regulations e.g. zoning Warehousing Broadband access Roads Energy reliability Energy costs 43% 24% 24% 14% 14% 13% 12% 12% 11% 5% 4% 4% 3% 0% 10% 20% 30% 40% 50% Note: 76 respondents 25% of respondents (22 businesses) indicated that they have sought assistance with their expansion efforts from an external organization. Of those businesses, the highest numbers had approached the local council (27% or 6 businesses), BC Hydro (27% or 6 businesses), and Community Futures (23% or 5 businesses). Figure 71: Organizations approached for expansion assistance Other (please specify): 59% Local Council 27% BC Hydro 27% Community Futures 23% Local Economic Development Office 18% BC Ministry responsible for Economic… Chamber of Commerce 9% 5% 0% 10% 20% 30% 40% 50% 60% 70% Note: 22 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 31 Energy Efficiency Figure 72: Considering energy efficiency in expansion plans 60% of those who responded (33 businesses) are considering energy efficiency in their expansion plans. No 40% Yes 60% Note: 55 respondents Figure 73: Awareness of BC Hydro Power Smart No, 35% Yes, 65% 65% of respondents (72 businesses) are familiar with the energy efficiency support available through the BC Hydro Power Smart program. Note: 111 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 business8.      The services that received the highest number of POOR ratings are availability of buildings for lease or purchase (38%), access to airport facilities (36%), and the availability of appropriately zoned land (26%). The services that received the highest number of FAIR ratings were access to suppliers (30%), availability of road transport services (28%), and telecommunications (28%). The services that received the highest number of GOOD ratings were water and sewerage supply (61%), recycling (57%), and inspections and licensing (56%). The services that received the highest number of EXCELLENT ratings were access to highways/roads (27%) and access to US Border (18%). The services that the highest number of respondents felt are NOT APPLICABLE to their business were access to port facilities (73%), availability of rail transport (58%) and the availability of warehousing (36%). 8 Only percentages are reported, as the number of respondents varied widely with each government service, resulting in numbers that are not comparable. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 32 Figure 74: Rating of government services 4% Availability of warehousing 11% 7% 4% 4% 6% 40% 27% 22% 14% 21% Availability of appropriately zoned land 36% 28% 18% 5% Availability of buildings for lease or purchase 22% 9% Availability of road transport services Availability of rail transport 28% 5% 58% 38% 36% 11% 26% 23% % Excellent 9% Access to suppliers 14% 2% % Fair % Poor 11% Access to markets 27% 2% 8% Access to airport facilities 17% 18% Access to US Border 4% 2% Access to Port Facilities 0% 48% 15% 14% 17% 17% 14% % Not Applicable 56% 19% 13% 1% Access to highway/ roads % Good 46% 30% 36% 43% 22% 10% 16% 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 33 12% Water and sewerage supply 61% 9% 10% 9% 13% Telecommunications (internet, cell) 18% 1% 28% 16% Recycling 57% 11% 13% 2% 8% 8% % Fair 56% 5% 12% Development approval process 54% 22% 7% 16% 15% % Poor % Not Applicable 18% 8% Disposal of waste material % Excellent % Good 9% Inspections /licensing 41% 29% 33% 0% 10% 20% 30% 40% 50% 60% 70% Note: # of respondents varies When asked whether there were any suggestions on how to improve any of the services and infrastructure, 73 respondents (65% of respondents) indicated they had suggestions. The highest number of responses (21% or 15 businesses) discussed expansion of the electronic communication services (cell phone, internet, broadband, fiber, etc.), followed by improvements to shipping and receiving (15% or 11 respondents), and improvements to the airport service (14% or 10 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 34 Figure 75: Select responses in respondents' suggestions for improvements to government services “Bring Westjet in to the airport for more reliable and cheaper flights.” “Easier and faster shipping.” “Additional development of industrial land would be positive. “Improved courier services for shipping large items.” “Faster internet and more broadband in semi-rural areas (just outside the city).” Airport Service The West Kootenay Regional Airport (Castlegar) is the most used airport, with 34% of respondents (15 businesses) indicating they use that airport. The Kelowna International Airport was the second most used with 30% (13 businesses). Figure 76: Airport service used None Castlegar Kelowna Cranbrook Spokane Calgary Trail Kalispell Bonners Ferry 11% 34% 30% 23% 16% 14% 5% 2% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Note: 44 respondents Respondents indicated that they would most like to see improved to navigational aids (24% or 8 businesses), better flight reliability (15% or 5 businesses), and more flights (9% or 3 businesses). Figure 77: New services at local airport Improvements to navigational aids Better flight reliability More flights Scheduled flights Shuttle service Passenger service More destinations Freight shipping Food service Development of a local airport 24% 15% 9% 6% 3% 3% 3% 3% 3% 3% 0% 5% 10% 15% 20% 25% 30% Note: 33 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 35 Business Climate Quality of Business Climate The majority of responses rated the overall business climate as good (43% or 52 businesses). Figure 78: Rating of local business climate Poor Fair Good Excellent 12% 39% 43% 6% 0% 10% 20% 30% 40% 50% Note: 120 respondents Respondents rated the quality of a list of specific business climate factors as either poor, fair, good, excellent, or not applicable to their business.      The factors that received the highest number of POOR ratings included technical training (39% or 44 businesses), housing (28% or 33 businesses), and colleges/universities (24% or 28 businesses). The factors that received the highest number of FAIR ratings included economic development (40% or 46 businesses), workforce availability (33% or 39 businesses), and local tax structure (32% or 37 businesses). The factors that received the highest number of GOOD ratings included K-12 education (53% and 62 businesses), tourism services (48% or 24 businesses), cultural/recreational amenities (44% or 52 businesses), and workforce quality (44% or 51 businesses) . The factors that received the highest number of EXCELLENT ratings included cultural and recreational amenities (31% or 37 businesses), community futures (19% or 9 businesses), and tourism services (14% or 7 businesses). The factors that received the highest number of NO OPINION ratings include Business Improvement Associations (BIA) (68% or 17 businesses) and Community Futures (38% or 18 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 36 Figure 79: Rating of business climate factors 5% Local Government 29% 16% 12% 38% 10% 12% 11% 14% K-12 education 53% 4% Housing 24% 28% 8% 3% Economic Development 10% 35% 26% 22% 40% % Excellent 31% Cultural/Recreational Amenities 5% 3% % Fair % Poor 19% Community Futures 40% 4% 0% 19% 24% 16% 8% Chamber of Commerce BIA % No Opinion 38% 5% Colleges/Universities % Good 44% 18% 15% 15% 4% 16% 4% 8% 35% 35% 27% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 37 5% 26% Workforce Stability 39% 27% 4% 11% Workforce Quality 39% 42% 5% 4% 7% Workforce Availability 32% 33% 24% 4% % Good % Fair 18% Tourism services 51% 17% 12% 2% 3% 16% 3% 29% 29% 20% Local Tax Structure 35% 23% 20% 0% 10% 20% % Poor % No Opinion 22% Technical Training % Excellent 30% 40% 50% 60% Note: # of respondents varies 43% of respondents (51 businesses) felt that the business climate is better today than it was 5 years ago. 29% (34 businesses) thought that it is worse, and 18% (21 businesses) believed there was no change in the business climate. The main reasons given from those who believe the business climate is worse is the recession (38% or 12 respondents) and declining economy (22% or 7 respondents). Figure 80: Business climate today vs. 5 years ago No opinion Worse today No change Better today 10% 29% 18% 43% 0% 10% 20% 30% 40% 50% Note: 118 respondents 66% of respondents (77 businesses) expect that the business climate will be better 5 years from today. 5% (6 businesses) expect that it will be worse. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 38 Figure 81: Business climate 5 years from today No opinion 7% Will be worse 5% No change 22% Will be better 66% 0% 10% 20% 30% 40% 50% 60% 70% Note: 117 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 39 Strengths and Weaknesses of Business Climate 115 responses were provided when respondents were asked to list the community’s strengths as a place to do business; the highest number of responses (19% or 22 responses) cited the lifestyle as the community’s primary strength. 16% (18 businesses) indicated the supportive community and 16% (18 businesses) indicated the location. Figure 82: Community’s strengths as a place to do business Lifestyle 19% Supportive community 16% Location 16% Tourism 9% Great place to live 5% Recreational opportunities 4% Workforce 3% Stable economy 3% Outdoor activities 3% Environment 3% Customer loyalty 3% Affordable 3% Word of mouth 2% Skilled workforce 2% Natural beauty 2% Friendliness 2% Community commitment to local… 2% Social network 1% Shop local awareness 1% Quality of life 1% Proximity to airport 1% Progressive 1% Low crime 1% Low competition 1% Large industrial base 1% Canadian regulations 1% Affluent residents 1% Above average household incomes 1% 0% 5% 10% 15% 20% 25% Note: 115 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 40 Respondents were asked to list the community’s weaknesses as a place to do business. The highest number of responses (18% or 20 respondents) were received for the costs associated with shipping and receiving. Geographic isolation was cited by 14% of respondents (16 businesses) and the population (size, growth, aging) was cited by 10% (11 respondents) of businesses. Figure 83: Community's weaknesses as a place to do business Shipping and Receiving costs 18% Geographic isolation 14% Population (size/growth/aging) 10% Location 9% High cost of living 9% Development Constraints… 6% Poor road conditions 4% Economic climate 4% Low population 3% Internet access 3% Tax structure 2% Resistance to change 2% Poor customer service 2% Available space 2% Underground economy 1% Transportation costs 1% Transient population 1% Suitable staff 1% Seasonality 1% Risk aversion 1% Lack of water 1% Lack of support for local businesses 1% Lack of skilled workforce 1% Lack of local services 1% High business taxes 1% Cyclical nature of markets 1% Aging infrastructure 1% Access to skilled labour 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Note: 114 respondents Business Growth 82% of respondents (97 businesses) indicated that there are barriers to growth. The highest number of respondents (19% or 18 businesses respectively) stated that geographic isolation was Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 41 the biggest barrier to growing the community’s economy. Other commonly cited barriers include population (size/growth/age) (11% or 13 businesses) and development approval process (11% or 13 businesses). Figure 84: Barriers to growth in the community Geographic isolation 19% Population (size / growth / age) 13% Developmental approval process 13% Skilled labour 7% Resistance to change 6% Cost of doing business 5% Low economic diversification 4% Availability of land 4% Infrastructure supporting local economy 3% Affordable housing 3% Tax structure 2% Shipping costs 2% Negative attitude 2% Low population 2% Low income levels 2% Lack of a anchor industry 2% Geographic constraints 2% Cost of living 2% Access to resources 2% Zoning 1% Poor road conditions 1% Lack of planning 1% Internet access 1% Fear of major employer closing 1% Economic seasonality 1% Competition 1% Airport service 1% Access to markets 1% Access to capital 1% ALR Restrictions 1% 0% 5% 10% 15% 20% Note: 97 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 42 Respondents were asked about the level of support they received from various business support providers. The Chamber of Commerce received the highest poor response (21% or 7 businesses), but was also cited as providing an excellent level of service by 18% of respondents (6 businesses) and a good level of service by 24% of respondents (8 businesses). Community Futures was cited as providing excellent by 22% of respondents (7 businesses). The Continuing Education and Workforce Training services were rated as Fair by 16% of respondents (5 businesses) and Good by 28% of respondents (9 businesses). Respondents found Community Futures (6% or 2 businesses) as most commonly unable to assist. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 43 Figure 85: Level of service from business support providers Scientific Research and Experimental Development Tax Incentive Program National Research Council Industrial Research Assistance Invest Kootenay Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) 3% 13% 0% 10% 0% 7% 10% 0% 0% 0% 87% 6% 16% 10% 3% 0% 65% 3% 10% 6% 3% 3% 0% 16% 3% 0% % Excellent % Good 74% 28% % Poor % Unable to assist % Not Applicable 22% 19% 47% 0% 13% 3% 0% 0% 84% Chamber of Commerce 18% 24% 12% 21% 3% 24% Basin Business Advisors 3% 0% 0% 3% 0% % Fair 53% 3% 3% 6% Community Futures College Industry Liaison Officer 83% 0% 10% 0% 0% 3% Economic Development Organization / Commission Continuing Education and Workforce Training 74% 13% 20% 81% 40% 60% 80% 100% Note: # of respondents varies 27% of respondents (29 businesses) indicated that there are suppliers that could locate in the region that do not currently serve the area. Manufacuturing suppliers were most commonly cited by 12% of respondents (3 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 44 Figure 86: Potential Suppliers Manufacturers 12% Retail stores 8% Forestry Suppliers 8% Distributors 8% Building supplies 8% Skilled labour 4% Packaging materials 4% Meats & Dairy / Fruits and Vegetables / Grains 4% Industrial parts 4% Farmers 4% Design Services 4% Agricultural suppliers 4% 0% 2% 4% 6% 8% 10% 12% 14% Note: 25 respondents When asked what business, sector, or industry could be attracted to most strategically benefit the industry, the most common response was tourism (24% or 19 respondents), manufacturing (11% or 9 businesses), and technology businesses (6% and 5 businesses). Figure 87: Sectors, businesses or industries that could be attracted to region Tourism Manufacturing Technology businesses Shipping companies Retail Stores Food businesses Mining and exploration Information Technology Grocery stores Forestry Agriculture Mountain biking Hospitality Green Businesses Educational services Bridal industry Airport services Agriculture value-added industries 24% 11% 6% 4% 4% 4% 3% 3% 3% 3% 3% 1% 1% 1% 1% 1% 1% 1% 0% 5% 10% 15% 20% 25% Note: 80 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 45 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 affordable shipping/freight (92% or 77 businesses) and new market development outside of region (88% or 74 businesses). Figure 88: Importance of business competitiveness factors Workplace health and safety Workforce skill development 1% 4% 33% 41% 27% 39% 42% 19% Water/sewer availability Strategic alliances (joining with other businesses to… 69% 27% 4% 26% 49% 25% Reliable air transportation Energy costs 82% 14% Water/sewer costs New product research and development New market development outside of region New market development locally Improving worker productivity Improvement of customer services Improvement business management Expansion of workforce employees Exchange rate for Canadian dollar 84% 15% 80% 19% 1% 88% 11% 1% 2% 80% 18% 14% 7% Access to exporting and international markets 85% % Not important at all or not very important 11% 5% 2% 82% 16% 68% 18% 14% 67% 31% 2% 8% 18% % Not applicable 67% 30% 4% Availability of 23% telecommunications… 4% Affordable 8% shipping/freight 0% Add or change in business, 25% products or services 4% Accessing capital 79% % Somewhat important, very important 37% 74% 92% 71% 55% 47% 35% 0% 20% 40% 60% 80% 100% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 46 When asked to rate their business’ performance on a list of productivity drivers, the drivers that received the highest number of:     EXCELLENT ratings include organising work (structures and processes) (37% or 27 businesses)and leadership and management capacity (35% or 26 businesses); GOOD ratings include productive workplace culture (56% or 42 businesses), leadership and management capacity (51% or 38 businesses), and organising work (structures and processes) (47% or 34 businesses); FAIR ratings include measuring impact of productivity efforts/investments (29% or 21 businesses); POOR ratings include measuring impact of productivity efforts / investments (10% or 7 businesses). Figure 89: Performance on key productivity drivers 35% Productive workplace culture Organizing work (structures & processes) 3% 1% 37% 47% 12% 21% Networking and collaboration with other businesses 44% 21% 8% 5% % Excellent 21% Measuring impact of productivity efforts/ investments Leadership and management capacity 56% 7% 1% 1% 10% 4% 13% 30% Investing in people and skills 1% 5% Innovation & the use of technology 18% 51% % Not Applicable 45% 33% 40% 24% 1% 1% 0% % Fair % Poor 35% 1% 0% % Good 36% 29% 20% 40% 60% Note: # of respondents varies Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 47 Economic Drivers Respondents believe that the economic drivers with the highest growth potential over the next 5 to 10 years include tourism (80% or 64 businesses), manufacturing (34% or 27 businesses), and technology-based businesses (29% or 23 businesses). For a list of drivers identified as “other”, refer to Appendix A. Figure 90: Economic drivers with greatest growth potential Other 26% Tourism 80% Manufacturing 34% Technology-based businesses 29% Forestry 29% Relocation of people from urban… 25% culture and creative businesses 23% Arts 23% Green or environmental businesses 19% Agriculture 14% Health & wellness 10% Education 10% Construction 10% Other niche service businesses (e.g.… 8% 0% 20% 40% 60% 80% 100% Note: 80 respondents Proximity to Alberta 16 respondents (46%) reported that they were impacted by their proximity to Alberta. The general positive impact of the customer base coming from Alberta was the most significantly noted by 44% of respondents (7 businesses). Figure 91: Impact of Proximity to Alberta Positive - Alberta customers 44% Positive - Alberta tourists 13% Positive - Alberta suppliers 13% Negative - Workforce migration to Alberta 13% Negative - Loss of sales to Alberta 13% Negative - Alberta competition 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Note: 16 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 48 Assessment and Plans Overall Health The majority of businesses surveyed reported that their facility is in overall good health (60% or 70 businesses), 18% (21 businesses) reported that their facility’s health is excellent, and 18% (21 business) reported that it is fair. 4% (5 businesses) of respondents indicated that their company is in poor health. Figure 92: Facility’s overall health Poor 4% Fair 18% Good 60% Excellent 18% 0% 10% 20% 30% 40% 50% 60% 70% Note: 117 respondents Most businesses with a parent company indicated that the health of that parent company is good (13% or 13 businesses). Figure 93: Overall health of parent company Not applicable Fair Good Excellent 81% 1% 13% 5% 0% 20% 40% 60% 80% 100% Note: 98 respondents Attitude toward Community 45% of respondents (51 businesses), respectively, indicated that their local management’s attitude toward the community is either excellent or good. Figure 94: Local management's attitude toward community Poor Fair Good Excellent 2% 9% 45% 45% 0% 10% 20% 30% 40% 50% Note: 114 respondents Respondents indicated that their parent company’s attitude toward the local community is most commonly good (10% or 10 businesses) or excellent (6% or 6 businesses). Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 49 Figure 95: Parent company's attitude toward local community Not applicable Poor Fair Good Excellent 81% 1% 1% 10% 6% 0% 20% 40% 60% 80% 100% Note: 96 respondents Risk of Closing or Downsizing Data indicates that the risk of manufacturing related businesses closing is low. Just 3% (3 businesses) of the respondents reported that they are at a high risk of closing in the next 1-3 years, and just 9% (11 businesses) indicated they were at a moderate risk. Figure 96: Risk of facility closing Low 88% Moderate 9% High 3% 0% 20% 40% 60% 80% 100% Note: 119 respondents Similarly, the data indicates that the risk of downsizing is low, with just 5% (6 businesses) indicating that the risk is high. Figure 97: Risk of facility downsizing Low 81% Moderate 14% High 5% 0% 20% 40% 60% 80% 100% Note: 117 respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 50 RECOMMENDATIONS Next Steps The results of this survey can be used to inform short- and long-term business retention and expansion action planning at the regional, sub-regional, or community scale. Additionally, the regional overview of the manufacturing sector that this report provides may encourage or support future collaboration amongst stakeholder groups. Many Business Retention and Expansion (BRE) programs attempt to ensure that follow-up actions occur as soon as possible following completion of the survey stage. This approach builds credibility, a sense of success and momentum to carry out long-term actions. Successful BRE programs pick an initial set of short-term actions that:  can be completed in 6 months or less;  are highly visible to businesses and the community as a whole; and  have the potential for considerable impact with minimal input (i.e., the “low hanging fruit”). As this study was commissioned by the Columbia Basin RDI, the immediate follow-up steps will be the distribution of the report to all potentially interested organizations with an offer to discuss further how this report may help them. 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. Some communities/stakeholder groups 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 be taken by stakeholders in the manufacturing sector to 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. Build 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 tools 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 Businesses in the Manufacturing Sector 51 Potential Action Areas Shipping & Receiving A recurring theme was the need to improve shipping and receiving services. 15% of respondents indicated that improving shipping and receiving services would improve the services and infrastructure, and the area of greatest weakness identified by businesses were the cost associated with shipping and receiving. Affordable shipping and freight services were identified by 92% of businesses (77 respondents) as the most important action that could improve business competitiveness. Future work in this area could be undertaken to understand the specific challenges business face in this area, and identify potential actions. Workforce – Recruitment & Retention The businesses interviewed reported a total of 4,221 employees. 93% of employees are full-time, followed by 4% part-time employees, and 3% are temporary. The size of the workforce appears stable and healthy, with 44% of businesses indicating that the number of employees at their business has stayed the same. Anticipated employment trends are also stable with the majority of businesses expecting the number of casual, part time and full time employees to stay the same or increase. The majority of businesses (90%) recruit locally. 41% of businesses indicate that they currently face recruitment challenges, 40% anticipate future difficulties, and 23% of businesses stated they did believe there were strategies that could address recruitment. Respondents most commonly rely on word of mouth and advertising when recruiting, followed by recruiting firms. Actions identified by respondents that could prove helpful include: supporting affordable housing and providing training and education. General labourers and profession/technical employees were areas where future and current recruitment efforts are needed. Related to recruitment and retention, are the critical considerations for employees identified which include the cost of living and housing. Youth Employment Findings indicate that employees under the age of 26 are in the minority, with just 10% of essential employees under the age of 25. Increasing youth employment may assist in addressing the recruitment challenges that 41% of businesses report having. Actions on this theme could involve gaining a better understanding of the reasons for the low youth employment rate, connecting local businesses with youth employment programs (federally, provincially and/or through CBT), and connecting businesses with local schools and post-secondary institutions. Business Growth & Expansion 55% of businesses in the region report being in a growth cycle and 24% are maturing. Respondents expect that the market for their product or service is increasing (60%), or stable (34%), and the majority see their market share increasing (56%) or stable (41%). The majority of businesses are anticipating low to moderate sales growth over the next year, with 35% expecting moderate sales growth between 1 – 9% and 26% expecting 10-24% sales growth. These findings indicate a strong and stable manufacturing sector, with optimism for continued growth. 56% of businesses indicate that the majority of their sales are to local markets. 68% indicate that they are planning to expand within the next three years. Over half (73%) of those businesses planning to expand feel their existing site is adequate, and 89% indicated that expansion would occur within the community. Businesses also report that employment rates are stable, and that they anticipate continued stability over the next three years. This data coupled with the general positive business climate and the optimism for the future provides a positive, stable report on business conditions in the Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 52 manufacturing sector. Actions in this area could include supporting existing businesses as they plan for local expansion/growth. Support could come in the form of assistance with navigating local regulations, assistance with accessing new markets, exploring financing options, assisting with recruitment activities, and connecting businesses with resources to assist in expansion projects. These potential actions and any others should be designed to address the stated barriers to expansion which include financing, the lack of suitable premises, and identifying and accessing new markets. It is worth noting that just one quarter (25%) of businesses sought assistance with expansion efforts from an external organisation. This is an area where improvements could be made to have local resources approach businesses proactively to understand barriers and work collaboratively towards solutions. Small to Medium Sized and Independent Businesses The profile of businesses surveyed indicates that businesses tend to be small to medium in size (50% have fewer than five employees, 61%are located in a facility that is less than 4,999 sq.ft., and 26% have annual sales under $100,000 and $499,999, and 26% have annual sales between $1 million and $4.9 million respectively) and independent (just 17% have other locations, and 18 respondents (19%) indicated that they had a parent company). The customer base for businesses appears to be somewhat diverse, with 28% of businesses indicating that just 1 - 9% of their sales are generated by their top three customers. It is noteworthy that full-time employees make up 93% of the workforce. Tailoring supports and services to small/medium sized, independent businesses will benefit businesses in the manufacturing sector. Services and supports should consider that 89% of functions provided by a business are ‘manufacturing’. Actions to support and encourage small and medium sized businesses could include specific training targeted to the needs of small businesses and an exploration of shared service provision in the areas of payroll, human resources, employee recruitment, bookkeeping, etc. Additional actions could include promoting existing supports available from Small Business BC and the Basin Business Advisors Program. Supply Sourcing and Procurement The data indicates that 37% of supplies come from within the local region. The most common response (87%) for the reason why supplies are sourced outside of the local area is that they are not available locally. The ability to source local packaging services, as well as supplies of meats, dairy, fruits, vegetables and grains were the most frequently desired by respondents. There is an opportunity to engage in discussions with local area businesses to understand what opportunities may exist to increase local supply, and actively engage existing businesses or encourage new businesses to fill that role if feasible. Strengthening the link between local food suppliers/producers and local area businesses could also be explored. A regional 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. Training Improving technical training and workforce skill development is important for business competitiveness. Findings indicate that 43% of businesses do have a training budget and 68% indicated that training typically occurs locally. Just 44% of businesses were aware of new trends, technologies and industry changes that will require new skills, indicating that there is room for education among businesses on the latest trends and technologies specific to the manufacturing Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 53 sector.79% identified specific areas for current training/professional development, and those include sales and marketing and technical training. Respondents also indicated that over the next five years additional training in marketing/social media and computer and technology training would be needed. There is a preference for classroom (61%) or individual coaching (53%) style formats. Future initiatives could include supporting networks to help businesses identify shared training needs, increasing awareness of new trends, technologies and changes to the manufacturing sector, and working with local educational institutions to ensure local skill requirements are considered in programming. Succession and Business Planning Business and succession planning are critical to the health and longevity of businesses, yet only 17% of respondents indicated that they have a formal succession plan and just over half (52%) have an up-to-date business plan. 55% of respondents indicated that their business is in the ‘growing’ phase, with 24% in the ‘maturing’ phase, and 35% of all respondents have been in operation for 20 years and over. Findings suggest that there are opportunities to support the business community by providing succession and business planning assistance, with some tailoring to target small to medium sized, independent businesses in the manufacturing sector. Open, instructive training sessions have the potential to provide a base level of support to a large number of businesses; however, given the importance of individual circumstances in business and succession planning, a one-on-one assistance program could result in greater overall benefit by providing a higher level of support to businesses. Any future business planning support initiatives should be aggressively advertised to ensure uptake among businesses, and may include direct outreach to those businesses identified as part of the BRE survey. Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 54 APPENDIX A: DATA TABLES Company Information NAICS Classification Manufacturing Total Total 31-33 Survey Participants: Question Respondents: 125 125 Figure 1.: Industry Classification by Region Industry Classification by Region Manufacturing 125 125 Percent of Question Respondents Count RDI Region Year Castlegar 2012 1 0.80% Columbia Valley 2012 4 3.20% Cranbrook 2012 2 1.60% 2013 3 2.40% 2014 1 0.80% 2015 1 0.80% 2012 4 3.20% 2016 8 6.40% 2012 4 3.20% 2016 4 3.20% 2012 1 0.80% 2013 2 1.60% 2012 5 4.00% 2014 1 0.80% 2014 1 0.80% 2015 8 6.40% Creston & Area Fernie & Area Golden Grand Forks & Area Kaslo Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 55 Kimberly 2012 1 0.80% 2014 2 1.60% 2012 4 3.20% 2015 1 0.80% 2012 5 4.00% 2014 2 1.60% 2015 3 2.40% Nakusp 2013 1 0.80% Nelson & Area 2012 12 9.60% 2015 13 10.40% 2012 2 1.60% 2015 10 8.00% Rossland 2012 1 0.80% Slocan Valley 2012 5 4.00% 2013 9 7.20% 2014 1 0.80% 2013 2 1.60% 2014 1 0.80% Kootenay Boundary Lower Columbia Revelstoke Sparwood Total 125 Survey Participants: 125 Question Respondents: 125 No Response Count: 0 Response Rate: Figure 2.: Functions located at this facility Engineering/RD Warehousing Distribution Services 100% Count Percent of Question Respondents 42 44% 49 52 60 52% 55% 63% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 56 Headquarters Manufacturing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 3.: Who are your competitors?: Where are your competitors located? In Canada In Province Outside Canada In Region None Total Survey Participants: Question Respondents: No Response Count: Response Rate: 64 85 352 67% 89% 125 95 30 76% Count 9 10 14 25 1 59 Percent of Question Respondents 19% 21% 29% 52% 2% 125 48 77 38% Figure 4.: What are the factors that make your company successful here? Count Percent of Question Respondents Excellent market Good farm land Knowledgable staff Lifestyle Supportive community Tourism Customer loyalty Established business Excellent staff Demand for products and services Word of mouth Competitive pricing Deversified product / services Natural resources Niche product 1 1 1 1 1 1 2 2 2 3 3 4 4 4 4 0.89% 0.89% 0.89% 0.89% 0.89% 0.89% 1.79% 1.79% 1.79% 2.68% 2.68% 3.57% 3.57% 3.57% 3.57% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 57 Experience Hard work Lack of competition Reputation Workforce Customer Service Community support Location Quality product / service Total 5 5 5 5 5 6 7 10 21 103 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 112 13 90% Figure 5.:Why did you choose this community to locate your business? Business expansion Connections to the community Established business Market growth Bought an existing business Born and raised here Business opportunity Close to family Natural resources Lifestyle Location Already living here Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 6.:Does this company have another location elsewhere? Yes Count 1 1 1 1 3 4 4 4 4 10 11 13 57 4.46% 4.46% 4.46% 4.46% 4.46% 5.36% 6.25% 8.93% 18.75% Percent of Question Respondents 2% 2% 2% 2% 6% 8% 8% 8% 8% 20% 22% 27% 125 49 76 39% Count Percent of Question Respondents 18 17% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 58 No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 86 104 125 104 21 83% Figure 7.: Does this company have another location elsewhere?: If Yes, where? Count Outside Canada In Province Elsewhere in nation Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Outside Canada Elsewhere in nation In Province Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 8b: Location of company's headquarters: Province AL QC WA ON Percent of Question Respondents 2 4 5 11 Total Figure 8.: Location of company's headquarters 83% 29% 57% 71% 125 7 11 18 104 39% Count 3 5 81 89 Percent of Question Respondents 3% 6% 91% 125 89 36 71% Count Percent of Question Respondents 1 1 1 2 2.17% 2.17% 2.17% 4.35% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 59 BC Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 8c: Location of company's headquarters: Nation United States Canada Total Survey Participants: Question Respondents: No Response Count: 41 46 89.13% 125 46 79 37% Count Percent of Question Respondents 2 38 40 5.00% 95.00% 125 40 85 Declining 8 Percent of Question Respondents 7% Emerging 17 14% Growing 66 55% Maturing 29 24% Total 120 Survey Participants: 125 Question Respondents: 120 No Response Count: 5 Figure 9.: Life cycle stage of firm's primary product/service Count Response Rate: Figure 10.:How long has this facility operated <1 Year 96% Count 7 Percent of Question Respondents 6% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 60 1-4 Years 20 17% 5-9 Years 19 16% 10-19 Years 32 27% >20 Years 42 35% Total 120 Survey Participants: 125 Question Respondents: 120 No Response Count: 5 Response Rate: Figure 11.: What is this company's ownership status? Publicly owned Privately owned Total Survey Participants: Question Respondents: No Response Count: Response Rate: 96% Count 10 109 119 8% 92% 125 119 6 95% Figure 11b: What is this company's legal status? Count Limited liability partnership (LLP) Partnership Sole proprietorship Corporation Other Total 4 10 38 69 2 123 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents Percent of Question Respondents 3% 8% 31% 56% 2% 125 123 2 98% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 61 Count Percent of Question Respondents Co-operative 1 1% Partnership/Corporation Total 1 2 1% Figure 11c: What is this company's legal status?: If Other, please specify Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: 125 2 0 Parent Question Respondents: 123 2 Response Rate: 100% Figure 12.: Has the local facility changed owners or managers in the past 5 years? Count Yes No Total Survey Participants: Question Respondents: No Response Count: Figure 12b: If Yes, describe the local impact of the change 28 91 119 Percent of Question Respondents 24% 76% 125 119 6 Count Neutral Positive Total 3 23 26 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 26 2 28 119 93% Percent of Question Respondents 11.54% 88.46% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 62 Count Percent of Question Respondents Yes 17 14.29% No Total 102 119 85.71% Figure 12c: Is an ownership change pending for this facility? Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 13.: If Yes what is the anticipated time frame 125 119 6 95% Count 1 year or less 2 years 3 years or more Total 3 3 9 15 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 15 2 17 119 88% Percent of Question Respondents 20% 20% 60% Count Percent of Question Respondents Sell to another company Sell/transfer to a family member Sell/transfer to a non-family member 4 5 24% 29% 7 41% Other 1 6% Total 17 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 125 17 0 17 Figure 14.: If Yes, how do you intend to exit the business? Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 63 Parent Question Respondents: Response Rate: Figure 14b: If Yes, how do you intend to exit the business?: If other, please explain 119 100% Count Don't know Total 1 1 Survey Participants: Question Respondents: 125 1 No Response Count: 0 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 15.:Is there a formal succession plan? Yes No Not applicable 17 100% Count Total Survey Participants: Question Respondents: No Response Count: Response Rate: 125 109 16 87% Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 5.88% 1 18 85 6 109 Figure 15b: Have you identified a successor to your business? Percent of Question Respondents Count 24 85 109 Percent of Question Respondents 17% 78% 6% Percent of Question Respondents 22.02% 77.98% 125 109 16 87% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 64 Figure 15c: If Yes, have you been assisted in preparation of a succession plan? Count Yes No Total 8 5 13 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 13 5 18 109 72% Percent of Question Respondents 61.54% 38.46% Percent of Question Respondents Figure 15d: If Yes, by whom Count Accountant Business partner Other Total 1 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 8 0 8 13 100% Figure 15e: If Yes, by whom: If other, please explain Count Percent of Question Respondents 1 12.50% 1 12.50% 2 2 6 25.00% 25.00% Business partner Canadian Independent Federation of Businesses Accountant In house Total Survey Participants: Question Respondents: No Response Count: 1 3 5 12.50% 12.50% 37.50% 125 6 0 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 65 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 5 8 100% Figure 16.:Does this firm have a current written business plan? Yes No Total Count 59 54 113 Survey Participants: Question Respondents: No Response Count: Response Rate: Percent of Question Respondents 52% 48% 125 113 12 90% Local Workforce Figure 17.: Total number of employees at this facility*: Total employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total Total employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 18.: Nature of Employment Full Time Part Time Temporary Total Count 63 18 17 16 4 7 125 Percent of Question Respondents 50% 14% 14% 13% 3% 6% 4221 125 125 0 100% Count 3923 185 113 4221 Percent of Question Respondents 93% 4% 3% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 66 Survey Participants: Question Respondents: Response Rate: Figure 18b: Total number of employees at this facility*: Full-time employees Less than 5 5-9 10-19 20-49 50-99 Over 100 Total 125 125 100.00% Count 74 14 13 14 3 7 125 Total full-time employees: 3923 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 125 0 100% Figure 18c: Total number of employees at this facility*: Part-time employees Less than 5 5-9 10-19 20-49 Total Count 116 6 2 1 125 Total part-time employees: 185 Survey Participants: 125 Question Respondents: No Response Count: Response Rate: Figure 18d: Total number of employees at this facility*: Temporary employees Percent of Question Respondents 59.20% 11.20% 10.40% 11.20% 2.40% 5.60% Percent of Question Respondents 92.80% 4.80% 1.60% 0.80% 125 0 100% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 67 Less than 5 5-9 10-19 20-49 Total Total temporary employees: Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 19.: Historical employment trend Declining Staying the same Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20.:How did the number of staff change, if at all, in the last 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 20b: How did the number of staff change, if at all, in the last 3 years?: Part-time 120 2 2 1 125 96.00% 1.60% 1.60% 0.80% 113 125 125 0 100% Count 26 51 38 115 Percent of Question Respondents 23% 44% 33% 125 115 10 92% Count 40 61 11 112 Percent of Question Respondents 36% 54% 10% 125 112 13 90% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 68 Increased Stayed the same Decreased Total 20 64 14 98 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 98 27 78% Figure 20c: How did the number of staff change, if at all, in the last 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21.:How do you expect the number of staff to change, if at all over the next 3 years?: Fulltime Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 21b: How do you expect the number of staff to change, if at all over the next 3 years?: Part-time Increased Count 8 68 8 84 20% 65% 14% Percent of Question Respondents 10% 81% 10% 125 84 41 67% Count 51 54 4 109 Percent of Question Respondents 47% 50% 4% 125 109 16 87% Count 34 Percent of Question Respondents 34% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 69 Stayed the same Decreased Total 61 4 99 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 99 26 79% Figure 21c: How do you expect the number of staff to change, if at all over the next 3 years?: Casual Increased Stayed the same Decreased Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 22.: Describe the majority of essential personnel at this location Less than 25 26 - 34 35 - 49 50 or older Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23.: Describe the wage scale here compared to all other firms locally Lower than Same as Greater than Count 62% 4% Percent of Question Respondents 25 56 1 1% 82 30% 68% 125 82 43 66% Count 11 18 61 19 109 Percent of Question Respondents 10% 17% 56% 17% 125 109 16 87% Count 8 49 36 Percent of Question Respondents 9% 53% 39% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 70 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23b: Average hourly wage: Skilled/Professional Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 $50-$99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23c: Average hourly wage: Semi-skilled Under $10 $10-$12.99 $13-$14.99 $15-$19.99 $20-$29.99 $30-49.99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 23d: Average hourly wage: Entry-level Under $10 $10-$12.99 $13-$14.99 93 125 93 32 74% Count 6 5 2 7 34 24 3 81 Percent of Question Respondents 7% 6% 2% 9% 42% 30% 4% 125 81 44 65% Count 3 7 3 20 28 4 65 Percent of Question Respondents 5% 11% 5% 31% 43% 6% 125 65 60 52% Count 5 16 10 Percent of Question Respondents 9% 28% 17% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 71 $15-$19.99 $20-$29.99 Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 24.:Is the number of unfilled positions Stable Decreasing Increasing Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 25.: Where does the company attract the majority of its workers from? Nationally Provincially Locally Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 26.: Recruitment and retention challenges Retention challenges Recruitment challenges Figure 26b: Is employee retention a problem? Yes No 16 11 58 28% 19% 125 58 67 46% Count 77 3 13 93 Percent of Question Respondents 83% 3% 14% 125 93 32 74% Count Percent of Question Respondents 4 7 99 110 4% 6% 90% 125 110 15 88% Count 29 48 Count 29 83 Percent 26% 41% Percent of Question Respondents 25.89% 74.11% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 72 Total 112 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 26c: Is the company experiencing recruitment problems with any employee positions or skills? Yes No Total 125 112 13 90% Count Percent of Question Respondents 48 68 116 Survey Participants: Question Respondents: No Response Count: Response Rate: 41% 59% 125 116 9 93% Figure 27.: If applicable, please describe any challenges and / or efforts you have undertaken to retain employees. Count Cost of living allowance 1 2% Professional development Staff discounts Addressing employees needs Avoid layoffs (find extra work) Housing Training 1 1 2% 2% 2 4% 2 4% 3 3 6% 6% Bonuses 4 8% 4 8% 7 13% 7 13% Support personal growth and skill development Flex Time Support a positive environment Percent of Question Respondents Benefits 9 17% Fair wages 14 26% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 73 None Total 6 64 Survey Participants: Question Respondents: No Response Count: Response Rate: 98 53 45 54% Figure 28.:If applicable, please describe any recruitment activities or strategies you have undertaken to attract employees. College recruitment Contact with KES Job Fairs Networking Selling on lifestyle Trade Journals Training opportunities Offer benefits/bonuses Social media (Facebook/ Linkedin) 11% Count Training Canada Job Bank Road side sign WorkBC Online job boards Recruiting Firms Advertising Word of mouth None Total 3 3 4 5 16 18 11 76 Survey Participants: Question Respondents: No Response Count: Response Rate: College recruitment Contact with KES 98 58 40 59% 1 1 Percent of Question Respondents 1 1 1 1 1 1 1 2 2% 2% 2% 2% 2% 2% 2% 3% 2 3% 2 3% 3 5% 5% 5% 7% 9% 28% 31% 19% 2% 2% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 74 Figure 29.: Is the company experiencing recruitment problems with any employee positions or skills?: If Yes, in which category(s)? Food/Beverage Service Count Percent of Question Respondents 1 2% Graphics Arts/Printing 1 2% Sales/Service Assembler/Line Workers CDL Drivers Sales/Retail Advanced Manufacturing Workers Mechanics Professional/Other Administrative/Clerical Construction/Contractors Electrical/Electronics Machinists Maintenance Manufacturing/Other Material/Fabricators Plant Managers / Operators Machine Operators Professional/Technical General Laborer None Other Total 1 2 2 2 2% 4% 4% 4% 3 6% 3 3 4 4 4 4 5 5 5 6% 6% 9% 9% 9% 9% 11% 11% 11% 5 11% 8 8 10 1 28 109 17% 17% 21% 2% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Figure 29b: Is the company experiencing recruitment problems with any employee 60% 125 47 1 48 116 Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 75 positions or skills?: Other (specify job roles/titles) Bookkeepers Chemists Commercial drivers 1 1 1 2.13% 2.13% 2.13% Computer technologists 1 2.13% Computer-aided design (CAD) technologists 1 2.13% Herbalist 1 2.13% Lumber grading Machine operators Professional designers Managers Engineers Skilled trades Total 1 1 1 2 5 10 26 2.13% 2.13% 2.13% 4.26% 10.64% 21.28% Survey Participants: 125 Question Respondents: 24 No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 30.: Do you anticipate future recruiting difficulties i.e. 3-5 year? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 30b: Do you anticipate future recruiting difficulties i.e. 4 28 47 86% Count 46 69 115 Percent of Question Respondents 40.00% 60.00% 125 115 10 92% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 76 3-5 year?: If Yes, in what area(s)? CDL Drivers 1 2% Assembler/Line Workers 2 4% Construction/Contractors Food/Beverage Service Plant Managers/Operators Professional/Other Sales/Retail Sales/Service Advanced Manufacturing Workers Manufacturing/Other 2 2 4% 4% 2 4% 2 2 2 4% 4% 4% 3 7% 3 7% Electrical/Electronics 4 9% Maintenance Mechanics Machine Operators Machinists Material/Fabricators General Laborer Professional/Technical Other Total 4 4 5 5 5 7 7 27 89 9% 9% 11% 11% 11% 16% 16% 60% Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 45 1 Figure 30c: Do you anticipate future recruiting difficulties i.e. 3-5 year? : Other (specify job roles/titles) Bakers Brewers Butchers General laborer 46 115 98% Count 1 1 1 1 Percent of Question Respondents 2.22% 2.22% 2.22% 2.22% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 77 Lumber graders Managers Computer professionals Engineers Skilled/Professional Total 1 1 3 5 8 22 Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: 125 22 5 Response Rate: 81% Figure 31.: Is there anything we can do to help overcome issues with employee recruitment? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 31b: Is there anything we can do to help overcome issues with employee recruitment?: If Yes, please explain Better job advertising Bring cost of living down HR training for businesses Improve health care and hospital services Job shadowing programs 2.22% 2.22% 6.67% 11.11% 17.78% 27 45 Count 9 31 40 Percent of Question Respondents 23% 78% 125 40 85 32% Count Percent of Question Respondents 1 1 1 12.50% 12.50% 12.50% 1 12.50% 1 12.50% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 78 Provide training and education Support affordable housing Total 9 Survey Participants: Question Respondents: 125 8 No Response Count: 1 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 32.: Skill Level of Majority of Workforce Skilled/Professional Semi-skilled Entry-level Total Figure 32b: Percent of workforce: Skilled/Professional less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32c: Percent of workforce: Semi-skilled less than 25% 25 to 49% 50 to 74% 75 to 100% Total 2 25.00% 2 25.00% 9 40 89% Count 56 16 11 83 Count 14 20 28 43 105 Percent of Question Respondents 53% 15% 10% Percent of Question Respondents 13.33% 19.05% 26.67% 40.95% 125 105 20 84% Count 25 23 19 7 74 Percent of Question Respondents 33.78% 31.08% 25.68% 9.46% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 79 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 32d: Percent of workforce: Entry-level less than 25% 25 to 49% 50 to 74% 75 to 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33.: Does the company provide a training budget in order to upgrade employee's skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 33b: Does the company offer in-house training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: 125 74 51 59% Count 32 17 9 5 63 Percent of Question Respondents 50.79% 26.98% 14.29% 7.94% 125 63 62 50% Count 49 64 113 Percent of Question Respondents 43% 57% 125 113 12 90% Count 42 5 47 Percent of Question Respondents 89% 11% 125 47 78 38% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 80 Figure 33c: Does the company use Contracted Training? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 34.: Are you aware of any anticipated trends, technologies, significant changes that will be occurring in your industry that will require new skills? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 35.:Are there any areas of training or professional development that would be of benefit to you or your employees? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 36.:Are there any areas of training or professional development Count 11 37 48 Percent of Question Respondents 23% 77% 125 48 77 38% Count 50 63 113 Percent of Question Respondents 44% 56% 125 113 12 90% Count 92 25 117 Percent of Question Respondents 78.63% 21.37% 125 117 8 94% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 81 that would be of benefit to you or your employees?: If Yes, what are they? Bookkeeping 1 1% Forklift Training Herbalist training LEAN initiatives Metal fabrication Office skills Personal growth workshops Time management Word Press Emerging technologies Accounting/Bookeeping 1 1 1 1 1 1% 1% 1% 1% 1% 1 1% 1 1 2 4 1% 1% 2% 4% Web site design 4 4% Computer skills Social media Customer service Industrial equipment operations 5 5 6 6% 6% 7% 6 7% Managerial training 7 8% Business Management Safety/First Aid/Food Safe Emerging industry practices 8 9% 9 10% 10 11% Technical training 14 16% Sales/Marketing 28 31% Total 117 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 125 90 2 92 117 98% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 82 Figure 37.: What modes of education/training work best for you? Online/ Webinar training Individual coaching Classroom Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 37b: What modes of education/training work best for you?: Other Name Online/ Webinar training Mentor Trade shows / Conferences In-house / Hands on / Workshop Total Count 43 57 66 17 183 40% 53% 61% 16% 125 108 17 86% Count Percent of Question Respondents 1 2 0.93% 1.85% 6 5.56% 7 6.48% 16 Survey Participants: 125 Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: 16 1 Figure 38.: When your staff attend training/certification, where do they usually access the training? United States Rest of Canada Regional Percent of Question Respondents 17 108 94% Count 15 16 26 Percent of Question Respondents 15% 16% 26% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 83 British Columbia Local Total 34 69 160 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 101 24 81% Union status Count Yes No Not applicable Total 7 89 20 116 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 39.: Please indicate which issues you believe are critical to your employees? Transportation Child care Housing Cost of living Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 39b: Please indicate which issues you believe are critical to your employees?: If Other, please list any other issues Double income opportunities 34% 68% Percent of Question Respondents 6% 77% 17% 125 116 9 93% Count 22 25 42 51 22 162 Percent of Question Respondents 30% 34% 58% 70% 30% 98 73 25 74% Count 1 Percent of Question Respondents 1.37% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 84 Getting enough work hours Lack of amenities Training 1 1.37% 1 1 1.37% 1.37% Work environment 1 1.37% Affordable housing Cost of living Job security Public transit 2 2 2 2 2.74% 2.74% 2.74% 2.74% Seasonality of work 2 2.74% Lifestyle Wages Total 3 5 23 4.11% 6.85% Survey Participants: Question Respondents: No Response Count: 98 24 0 In general terms, what percent of your workforce lives in the: Community (%) 0-24% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Region (%) includes entire Columbia Basin-Boundary region 0-24% 25-49% 75-100% Total Survey Participants: Count 2 5 72 79 Percent of Question Respondents 2.53% 6.33% 91.14% 98 79 19 81% Count 16 3 4 23 Percent of Question Respondents 69.57% 13.04% 17.39% 98 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 85 Question Respondents: No Response Count: Response Rate: In general terms, what percent of your workforce lives in the: Outside of region (%) 0-24% 25-49% 50-74% 75-100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: 23 75 23% Count Percent of Question Respondents 12 1 1 2 16 75.00% 6.25% 6.25% 12.50% 98 16 82 16% Sales Count Percent of Question Respondents Under $25,000 $49,999 to $25,000 $99,999 to $50,000 499,999 to $100,000 $999,999 to $500,000 $4.9 million to 1 million $9.9 million to 5 million $19.9 million to 10 million $50 million to 20 million over $50 million Total 9 6 5 21 6 21 5 11% 7% 6% 26% 7% 26% 6% 1 1% 4 4 82 5% 5% Survey Participants: Question Respondents: No Response Count: Response Rate: 125 82 43 66% Figure 40.: Annual sales at this facility (optional) Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 86 Figure 41.: Is the market for your product Count Stable Decreasing Increasing Total 42 7 74 123 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 123 2 98% Figure 42.: Is the market share (compared to your competitors) of your company's products Count Stable Decreasing Increasing Total 41 3 57 101 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 101 24 81% Figure 43.: What is the projected sales growth in the next year at this business? Declining 0% 1 - 9% 10 - 24% 25 - 49% 50 - 99% Over 100% Total Count 1 15 38 28 17 8 2 109 Percent of Question Respondents 34% 6% 60% Percent of Question Respondents 41% 3% 56% Percent of Question Respondents 1% 14% 35% 26% 16% 7% 2% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 87 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 44.: Historical sales trend: At this business (past five years) 125 109 16 87% Count Declining Staying the same Increasing Not applicable Total 10 16 84 9 119 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 119 6 95% Figure 44b: Historical sales trend: At the parent company Count Declining Staying the same Increasing Not applicable Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 44c:: Historical sales trend: Within the industry Declining Staying the same Percent of Question Respondents 8% 13% 71% 8% Percent of Question Respondents 2 10 16 60 68% 88 2% 11% 18% 125 88 37 70% Count Percent of Question Respondents 10 30 9% 28% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 88 Increasing Not applicable Total 51 16 107 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 107 18 86% Figure 45.: Historical export sales trend Count Declining Staying the same Increasing Not applicable Total 7 13 30 54 104 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 104 21 83% Figure 46.:Percent of total sales generated by top 3 customers Count 1 - 9% 10 - 25% 26 - 50% 51 - 75% 76 - 100% Total 7 5 3 4 6 25 Survey Participants: Question Respondents: No Response Count: Response Rate: 98 25 73 26% 48% 15% Percent of Question Respondents 7% 13% 29% 52% Percent of Question Respondents 28% 20% 12% 16% 24% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 89 Figure 47.: Source of Majority of Sales Percent of Question Respondents Count Local Provincial National United States International Total 56 8 6 10 3 83 Figure 47b: Please identify the source of your sales by percentage: International Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 70-79% 90-99% Total 56% 8% 6% 10% 3% Percent of Question Respondents 17 41.46% 7 17.07% 5 12.20% 2 4.88% 4 9.76% 1 2.44% 2 4.88% 1 2.44% 2 4.88% 41 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 41 84 33% Figure 47c: Please identify the source of your sales by percentage: United States Count Percent of Question Respondents 12 8 5 3 4 24.49% 16.33% 10.20% 6.12% 8.16% 0% 1-9% 10-19% 20-29% 30-39% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 90 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 47d: Please identify the source of your sales by percentage: National 2 5 2 3 2 3 49 125 49 76 39% Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 80-89% 90-99% Total 7 10 20 11 4 7 4 2 2 2 69 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 69 56 55% Figure 47e: Please identify the source of your sales by percentage: Provincial 0% 4.08% 10.20% 4.08% 6.12% 4.08% 6.12% Percent of Question Respondents 10.14% 14.49% 28.99% 15.94% 5.80% 10.14% 5.80% 2.90% 2.90% 2.90% Count Percent of Question Respondents 8 10.26% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 91 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 17 21.79% 21 26.92% 10 12.82% 6 7.69% 3 3.85% 5 6.41% 1 1.28% 3 3.85% 2 2.56% 1 1.28% 1 1.28% 78 Survey Participants: Question Respondents: 125 78 Figure 47f: Please identify the source of your sales by percentage: Local / Regional Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 4 12 10 9 3 3 3 4 6 7 12 27 100 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 100 25 80% Percent of Question Respondents 4.00% 12.00% 10.00% 9.00% 3.00% 3.00% 3.00% 4.00% 6.00% 7.00% 12.00% 27.00% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 92 Figure 48.: International trade status Count Percent of Question Respondents Import Export None Not applicable Total 36 44 23 34 137 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 114 11 91% Figure 49.: Do you engage in government procurement? Count Percent of Question Respondents Yes 14 19% No Total 59 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 98 73 25 74% Figure 50.:Source of Majority of Supplies Local Provincial National United States International Total Count 31 31 15 6 9 92 32% 39% 20% 30% 81% Percent of Question Respondents 37% 37% 18% 7% 11% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 93 Figure 50b: Please identify the source of your supplies by percentage: Local / Regional Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 5 11 18 4 4 6 4 6 2 2 9 12 83 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 83 42 66% Figure 50c: Please identify the source of your supplies by percentage: Provincial 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total Count 8 7 11 9 2 3 6 6 7 6 7 5 77 Percent of Question Respondents 6.02% 13.25% 21.69% 4.82% 4.82% 7.23% 4.82% 7.23% 2.41% 2.41% 10.84% 14.46% Percent of Question Respondents 10.39% 9.09% 14.29% 11.69% 2.60% 3.90% 7.79% 7.79% 9.09% 7.79% 9.09% 6.49% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 94 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 50d: Please identify the source of your supplies by percentage: National 125 77 48 62% Count Percent of Question Respondents 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total 7 10 14 12 3 6 7 2 3 5 3 1 73 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 73 52 58% Figure 50e: Please identify the source of your supplies by percentage: United States Count Percent of Question Respondents 9 12 12 10 2 2 4 1 1 15.79% 21.05% 21.05% 17.54% 3.51% 3.51% 7.02% 1.75% 1.75% 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 9.59% 13.70% 19.18% 16.44% 4.11% 8.22% 9.59% 2.74% 4.11% 6.85% 4.11% 1.37% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 95 80-89% 90-99% Total 2 2 57 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 57 68 46% Figure 50f: Please identify the source of your supplies by percentage: International Count 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-99% 100% Total Survey Participants: Question Respondents: No Response Count: Response Rate: Do you supply your products or services to any company in the community or region? 3.51% 3.51% Percent of Question Respondents 15 34.88% 7 16.28% 3 6.98% 3 6.98% 2 4.65% 1 2.33% 4 9.30% 1 2.33% 2 4.65% 1 2.33% 2 4.65% 2 4.65% 43 125 43 82 34% Count Yes No Total 30 19 49 Survey Participants: Question Respondents: 125 49 Percent of Question Respondents 61% 39% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 96 No Response Count: Response Rate: 76 39% What products or services, if any, are you purchasing from outside the area for which you would like to have a local supplier? Aluminum pipe Arts and crafts Beeswax Chemicals Chocolate Coffee Computers / Software Construction supplies Gardening supplies and equipment Garments for printing Graphic design services Graphite Hops Industrial park services Lumber ink Machine parts & supplies Malted grain Metal working services Office supplies Packaging Supplies and Services Paper Powder Coating Printing services Quartz Soap making materials Tarp wrap Woodworking services Bees Steel Meats & Dairy / Fruits and Vegetables / Grains Packaging services None Total Survey Participants: 98 Question Respondents: 47 Count 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 3 3 4 41 Percent of Question Respondents 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 2.13% 4.26% 4.26% 6.38% 6.38% 8.51% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 97 No Response Count: Response Rate: Figure 51.: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area? No control - head office decision Unaware of local venders Loyalty to current supplier No applicable to this business Quality of available products Higher costs locally Product not available here Other Total Survey Participants: Question Respondents: No Response Count: Response Rate: No control - head office decision Figure 51b: If majority of products/services are being purchased from outside of the area, why are they NOT being purchased from within the area?: If Other, specify Regulations Not available here 51 48% Count Percent of Question Respondents 1 2% 1 2% 2 3% 2 3% 4 6% 16 26% 54 87% 4 84 6% 98 62 36 63% 1 2% Count Percent of Question Respondents 1 1.61% 2 3.23% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 98 Total 3 Survey Participants: 98 Question Respondents: 4 No Response Count: 0 Parent Question 'Other' Respondents: 4 Parent Question Respondents: 62 Facilities and Equipment Figure 52.:What is the square footage of your current facility?: Square feet Count less than 1,000 sq ft 1,000-4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more Total 28 36 11 14 16 105 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 53.: Condition of facility Excellent Good Fair Poor Total Percent of Question Respondents 27% 34% 10% 13% 15% 105 20 84% Count 41 51 19 4 115 Percent of Question Respondents 36% 44% 17% 3% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 99 Survey Participants: Question Respondents: No Response Count: Figure 54.: Condition of equipment 125 115 10 Count Excellent Good Fair Poor Total 38 57 16 2 113 Survey Participants: Question Respondents: No Response Count: 125 Figure 55.: Status of facility 12 Count 38 80 118 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 <1 Year 1-2 Years 3-5 Years >5 Years 34% 50% 14% 2% 113 Leased Owned Total Figure 56.: Status of facility: If Leased, what is the length of term remaining Percent of Question Respondents Percent of Question Respondents 32% 68% 118 7 94% Count Percent of Question Respondents 15 1 5 2 65% 4% 22% 9% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 100 Total 23 Survey Participants: Question Respondents: 125 No Response Count: 15 Parent Question 'Leased' Respondents: Parent Question Respondents: Response Rate: Figure 56b: Are you planning on renewing current lease? 23 38 118 61% Count Yes No Total 27 10 37 Survey Participants: Question Respondents: 125 No Response Count: 0 Parent Question 'Leased' Respondents: 38 Parent Question Respondents: 118 Response Rate: 100% Figure 57.: Do you have a preference of lease vs own? Count Percent of Question Respondents 50.00% 18.52% 54 Lease Own Total 8 38 46 Survey Participants: 125 Percent of Question Respondents 17% 83% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 101 Question Respondents: No Response Count: Response Rate: Figure 58.: Historical investment trends: Over past 18 months in the facility 46 79 37% Count Declining Staying the same Increasing Total 6 39 57 102 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 59.: Is there room for expansion at this site? 23 82% Count 76 30 8 114 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Yes No Total 6% 38% 56% 102 Yes No Maybe Total Figure 60.: Does the company plan to expand in the next three years? Percent of Question Respondents Percent of Question Respondents 67% 26% 7% 114 11 91% Count 81 39 120 Percent of Question Respondents 68% 33% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 102 Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 60b: Are there any local expansion plans in the next 12 18 months? 125 120 5 96% Count Yes No Total 65 53 118 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 61.: Does the company plan to expand in the next three years?: Is your current site adequate for the proposed expansion? Yes No Total 55.08% 44.92% 118 7 94% Count 55 20 75 Survey Participants: Question Respondents: 125 No Response Count: 6 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Percent of Question Respondents Percent of Question Respondents 73% 27% 75 81 120 93% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 103 Figure 62.: Does the company plan to expand in the next three years?: Will it be in this community? Yes No Total Count 68 8 76 Survey Participants: Question Respondents: 125 No Response Count: 5 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 63.: Does the company plan to expand in the next three years?: Estimated total investment Less than $25,000 $25,000-$99,999 $100,000-$499,999 $500,000-$999,999 $1-$4.9 million $5-$9.9 million $10-19.9 million $20 million and over Total Percent of Question Respondents 89% 11% 76 81 120 94% Count Percent of Question Respondents 11 5 16 4 9 2 1 4 8% 52 Survey Participants: Question Respondents: 125 No Response Count: 29 Parent Question 'Yes' Respondents: 81 21% 10% 31% 8% 17% 4% 2% 52 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 104 Parent Question Respondents: 120 Response Rate: 64% Figure 64.: Does the company plan to expand in the next three years?: Approximate percentage equipment/technology 0% Under 50% 50 to 99% 100% Total Count 1 9 18 22 50 Survey Participants: Question Respondents: 125 50 No Response Count: 31 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 65.: Does the company plan to expand in the next three years?: Approximate percentage real estate 0% Under 50% 50 to 99% 100% Total Percent of Question Respondents 2% 18% 36% 44% 81 120 62% Count 11 12 10 11 44 Survey Participants: Question Respondents: 125 No Response Count: 37 Percent of Question Respondents 25% 27% 23% 25% 44 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 105 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 66.: Does the company plan to expand in the next three years?: Estimated facility size increase (square feet) Less than 1,000 sq ft 1,000 to 4,999 sq ft 5,000-9,999 sq ft 10,000-19,999 sq ft 20,000 sq ft or more Total 81 120 54% Count 12 11 6 3 1 33 Survey Participants: Question Respondents: 125 No Response Count: 48 Parent Question 'Yes' Respondents: 81 Parent Question Respondents: 120 Response Rate: 41% Figure 67.: Have there been any recent facility upgrades? Percent of Question Respondents 36% 33% 18% 9% 3% 33 Count Yes No Total 35 13 48 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Percent of Question Respondents 73% 27% 48 77 38% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 106 Figure 67b: Have there been any recent facility upgrades? If Yes, when?: Month scale Count 3 6 12 18 24 36 Total 6 5 12 4 2 4 33 Survey Participants: Question Respondents: 125 No Response Count: 2 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: Figure 68.: Planning any upgrades to the facility? 18% 15% 36% 12% 6% 12% 33 35 48 94% Count Yes No Total 23 22 45 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 68b: Planning any upgrades to the facility? If Yes, when?: Month scale Percent of Question Respondents Percent of Question Respondents 51% 49% 45 80 36% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 107 3 6 12 18 24 Total 5 4 10 1 1 21 Survey Participants: Question Respondents: 125 No Response Count: 2 21 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 3 Figure 69.: If No, are there any barriers to upgrading you wish to identify? 23.81% 19.05% 47.62% 4.76% 4.76% 23 45 91% 5 23.81% Count Percent of Question Respondents Owership Poor access to site 1 1 14% 14% Taxes 1 14% Space None Total 2 2 7 29% 29% Survey Participants: 125 Question Respondents: No Response Count: Parent Question 'No' Respondents: Parent Question Respondents: Response Rate: 7 15 22 45 32% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 108 Figure 70.: What, if any, are the major constraints on your expansion? (Please check all that are applicable) Energy costs Energy reliability Roads Broadband access Warehousing Local regulations e.g. zoning Count Percent of Question Respondents 2 3 3 4 8 3% 4% 4% 5% 11% 9 12% Problems with DAs 9 12% Transport/freight Lack of skilled staff Other (please specify): Identifying and accessing new markets Lack of suitable premises Finance Total 10 11 13% 14% 11 14% 18 24% 18 24% 33 139 43% Survey Participants: Question Respondents: 125 No Response Count: 5 Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 76 81 120 94% Figure 70b: What, if any, are the major constraints on your expansion? (Please check all that are applicable): Other (please specify) Economic uncertainty Count Percent of Question Respondents 1 8% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 109 Problems with development approvals 1 8% Resources Skilled labour supply 1 1 8% 8% Time 1 8% Demand for service / product Lack of Suitable Premises Total 2 3 10 15% 23% Survey Participants: Question Respondents: No Response Count: Parent Question 'Other (please specify):' Respondents: Parent Question Respondents: Response Rate: Figure 71.: Have you approached anybody in local/provincial/federal government or business development organizations to discuss your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 71b: If Yes, which have you approached? Count 22 65 87 125 13 0 13 76 100% Percent of Question Respondents 25.29% 74.71% 125 87 38 70% Count Percent of Question Respondents Chamber of Commerce 1 5% BC Ministry responsible for 2 9% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 110 Economic Development Local Economic Development Office Community Futures BC Hydro Local Council Other (please specify): Total 4 18% 5 6 6 23% 27% 27% 13 59% 37 Survey Participants: Question Respondents: 125 No Response Count: 0 22 Parent Question 'Yes' Respondents: Parent Question Respondents: 22 87 Response Rate: Figure 71c: If Yes, which have you approached?: Other (please specify) 100% Count Percent of Question Respondents 1 4.55% 1 4.55% 1 4.55% 1 4.55% 1 4.55% 1 4.55% 1 4.55% CBT (Columbia Basin Trust) Export Development Corporation Forest Product Innovations KRIC (Kootenay Rockies Innovation Council) Provincial Government RDCK (Regional District of Central Kootenay) Regional Directors (MP & MLA) BBA (Basin Business Advisors) 2 9.09% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 111 BDC (Business Development Bank of Canada) MLA Banks / Credit unions 2 9.09% 2 3 9.09% 13.64% Banks 4 18.18% Total 20 Survey Participants: 125 Question Respondents: 13 No Response Count: 0 Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 72.: Have you factored improvements in energy efficiency in your expansion plans? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 73.: Are you aware of BC Hydro Power Smart resources that are available to you? 13 22 100% Count 33 22 55 Percent of Question Respondents 60% 40% 98 55 43 56% Count Percent of Question Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 112 Yes No Total 72 39 111 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 65% 35% 111 14 89% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 113 Government Services Figure 74.: Government Services Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents Access to Port Facilities 37 73% 8 16% 0 0% 5 10% 1 2% 51 Access to US Border 11 22% 2 4% 7 14% 22 43% 9 18% 51 Access to airport facilities 17 17% 37 36% 17 17% 18 17% 14 14% 103 Access to highway/ roads 2 2% 9 8% 16 15% 51 48% 29 27% 107 Access to markets 1 1% 14 13% 20 19% 59 56% 12 11% 106 Access to suppliers 2 2% 15 14% 31 30% 48 46% 9 9% 105 Availability of appropriately zoned land 19 23% 22 26% 9 11% 30 36% 4 5% 84 Availability of buildings for lease or purchase 18 21% 33 38% 12 14% 19 22% 5 6% 87 Availability of rail transport 43 58% 20 27% 3 4% 3 4% 5 7% 74 Availability of road transport services 5 5% 19 18% 30 28% 43 40% 10 9% 107 Availability of warehousing 30 36% 18 22% 9 11% 23 28% 3 4% 83 Development approval process 27 33% 12 15% 13 16% 24 29% 6 7% 82 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 114 Disposal of waste material 5 5% 11 12% 20 22% 50 54% 7 8% 93 Inspections /licensing 15 18% 7 8% 7 8% 48 56% 8 9% 85 Recycling 2 2% 13 13% 11 11% 55 57% 16 16% 97 Telecommunications (internet, cell) 1 1% 17 18% 27 28% 39 41% 12 13% 96 Water and sewerage supply 8 9% 9 10% 8 9% 56 61% 11 12% 92 Survey Participants: 125 152 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 115 Figure 74b: Please rate the following: Other (please specify) Please rate the following: Other (please specify) Count Percent of Question Respondents Condition of Highway Poor 1 5% Emergency Services Poor 1 5% Ferry Service Poor 1 5% Hospital services Poor 1 5% Liquor control Board Poor 3 16% PST regulations Poor 1 5% Excellent 1 5% Front Counter BC Fair 1 5% Promoting the community (growth) Poor 1 5% Provide information regarding geothermal regulations Poor 1 5% Regional Government Services Good 1 5% SR & ED Tax Incentive Program Poor 1 5% Snow Removal Fair 1 5% 15 79% Postal Service Total Survey Participants: 125 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 116 Question Respondents: 19 No Response Count: 106 Response Rate: 15% Figure 75.: Do you have any suggestions on how to improve any of the services and infrastructure listed above? Yes No Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 75b: Do you have any suggestions on how to improve any of the services and infrastructure listed above?: If Yes, how? Access to suppliers Develop an industrial park Improve Rail Services Percent of Question Respondents Count 73 39 112 65% 35% 125 112 13 90% Percent of Question Respondents Count 1 1 1 1.39% 1.39% 1.39% 1 1.39% 1 1.39% 1 1.39% Increase CFIA services 1 1.39% Increase Water Services Increase public transportation 1 1 1.39% 1.39% Review land use and zoning 1 1.39% Snow removal Streamline development approval processes Address land zoning issues Consider more and proper signage 1 1.39% 1 1.39% 2 2 2.78% 2.78% Improve ferry service Improve food processing infrastructure Increase Border Crossing Services Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 117 Improve Waste Management / Recycling Increase attention to community and business needs Streamline granting of permits 2 2.78% 2 2.78% 2 2.78% 5 6.94% 6 8.33% 6 8.33% 10 13.89% Improve shipping and receiving 11 15.28% Expand electronic communication services (Cell phone/ Internet/ Broadband/Fiber) 15 20.83% Total 75 Survey Participants: 125 Question Respondents: 72 No Response Count: 1 Parent Question 'Yes' Respondents: 73 Parent Question Respondents: 112 Response Rate: 99% Restructure taxes Improve highway and road quality and service Improve recycling and waste management Improve Airport service Figure 76.: Which airport services do you use? Bonners Ferry Kalispell Trail Calgary Spokane Cranbrook Kelowna Count 1 1 2 6 7 10 13 Percent of Question Respondents 2% 2% 5% 14% 16% 23% 30% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 118 Castlegar None Total 15 5 60 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 44 81 35% Figure 77.: Which airport services do you use?: What services would you like to see at the local airport? (where appropriate) Development of a local airport Food service Freight shipping More destinations Passenger service Shuttle service Scheduled flights More flights Better flight reliability Improvements to navigational aids Total Survey Participants: Question Respondents: No Response Count: Response Rate: Count 34% 11% Percent of Question Respondents 1 1 1 1 1 1 2 3 5 8 24 3% 3% 3% 3% 3% 3% 6% 9% 15% 24% 125 33 92 26% Business Climate Figure 78.: Please rate the local business climate Excellent Good Fair Poor Total Survey Participants: Count 7 52 47 14 120 Percent of Question Respondents 6% 43% 39% 12% 125 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 119 Question Respondents: No Response Count: Response Rate: 120 5 96% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 120 Figure 79.: Business climate ratings No % No Opinion Opinion Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respondents BIA 17 68% 2 8% 1 4% 4 16% 1 4% 25 Chamber of Commerce 13 27% 7 15% 7 15% 17 35% 4 8% 48 Colleges/Universities 19 16% 28 24% 22 19% 41 35% 6 5% 116 Community Futures 18 38% 0 0% 2 4% 19 40% 9 19% 48 Cultural/Recreational Amenities 3 3% 6 5% 21 18% 52 44% 37 31% 119 Economic Development 12 10% 25 22% 46 40% 30 26% 3 3% 116 Housing 10 8% 33 28% 29 24% 42 35% 5 4% 119 K-12 education 17 14% 13 11% 14 12% 62 53% 12 10% 118 Local Government 14 12% 19 16% 34 29% 44 38% 6 5% 117 Local Tax Structure 24 21% 23 20% 37 32% 30 26% 3 3% 117 Technical Training 22 19% 44 39% 22 19% 22 19% 4 4% 114 Tourism services 5 10% 4 8% 10 20% 24 48% 7 14% 50 Workforce Availability 10 8% 24 20% 39 33% 39 33% 6 5% 118 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 121 Workforce Quality 8 7% 17 15% 30 26% 51 44% 9 8% 115 Workforce Stability 14 12% 22 19% 34 29% 39 33% 8 7% 117 Survey Participants: 125 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 122 Figure 80.: Please compare the local business climate today versus 5 years ago Percent of Question Respondents Count Better today No change Worse today No opinion Total 51 21 34 12 118 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 118 7 94% Figure 80b: Please compare the local business climate today versus 5 years ago: If worse today, why? Declining market Disposable income is down Legalization of marijuana across the border Less tourists Locals shopping elsewhere More competition 43% 18% 29% 10% Percent of Question Respondents Count 1 3% 1 3% 1 3% 1 3% 1 3% 1 3% 1 3% 1 3% 1 3% Weak Canadian dollar 1 3% Forestry downturn Business failures Population (low/aging/declining) Declining economy Recession 2 3 6% 9% Online shopping Poor Government Relations Strong Canadian dollar 3 9% 7 22% 12 38% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 123 Total 37 Survey Participants: Question Respondents: No Response Count: Parent Question 'Worse today' Respondents: Parent Question Respondents: Response Rate: 125 32 2 Figure 81.: Do you have any forecast for the condition of the local business climate 5 years from today? Will be better No change Will be worse No opinion Total Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 82.: What are the community's strengths as a place to do business? Above average household incomes Affluent residents Canadian regulations Large industrial base Low competition 34 118 94% Percent of Question Respondents Count 77 26 6 8 117 66% 22% 5% 7% 125 117 8 94% Percent of Question Respondents Count 1 1% 1 1 1 1 1% 1% 1% 1% Low crime 1 1% Progressive Proximity to airport Quality of life Shop local awareness Social network 1 1 1 1 1 1% 1% 1% 1% 1% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 124 Community commitment to local businesses Friendliness Natural beauty Skilled workforce 2 2% 2 2 2 2% 2% 2% Word of mouth 2 2% Affordable Customer loyalty Environment Outdoor activities Stable economy Workforce Recreational opportunities Great place to live Tourism Location Supportive community Lifestyle Total 3 4 4 4 4 3% 3% 3% 3% 3% Survey Participants: Question Respondents: No Response Count: Response Rate: 4 3% 5 4% 6 10 18 18 22 123 5% 9% 16% 16% 19% 125 115 10 92% Figure 83.: What are the community's weaknesses as a place to do business? Count Percent of Question Respondents Access to skilled labour Aging infrastructure Cyclical nature of markets 1 1 1 1% 1% 1% High business taxes 1 1% Lack of local services 1 1% Lack of skilled workforce 1 1% 1 1% 1 1 1% 1% Lack of support for local businesses Lack of water Risk aversion Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 125 Seasonality 1 1% Suitable staff 1 1% Transient population Transportation costs Underground economy Available space 1 1 1 2 1% 1% 1% 2% Poor customer service 2 2% Resistance to change Tax structure 2 2 2% 2% Internet access 3 3% Low population 3 Economic climate 4 Poor road conditions 4 Development Constraints 7 (Zoning/Bureaucracy/Permits) High cost of living 10 Location 10 Population 11 10% (size/growth/aging) Geographic isolation 16 14% Shipping and Receiving costs 20 18% Total 110 Survey Participants: 125 Question Respondents: 114 No Response Count: 11 Response Rate: 91% Figure 84.: Are there any barriers to growth in this community? Yes No Total Count 97 21 118 3% 4% 4% 6% 9% 9% Percent of Question Respondents 82% 18% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 126 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 118 7 94% Figure 84b: Are there any barriers to growth in this community? : If Yes, what are they? Percent of Question Respondents Count ALR Restrictions Access to capital 1 1 1% 1% Access to markets 1 1% Airport service 1 1% Competition 1 1% Economic seasonality 1 1% Fear of major employer closing 1 1% Internet access 1 1% Lack of planning Poor road conditions Zoning Access to resources Cost of living Geographic constraints Lack of a anchor industry Low income levels Low population 1 1 1 2 2 2 1% 1% 1% 2% 2% 2% 2 2% 2 2 2% 2% Negative attitude 2 2% Shipping costs 2 2% Tax structure 2 2% Affordable housing Infrastructure supporting local economy Availability of land 3 3% 3 3% 4 4% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 127 Low economic diversification Cost of doing business Resistance to change Skilled labour Developmental approval process Population (size / growth / age) Geographic isolation Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 4 4% 5 6 7 5% 6% 7% 13 13% 13 13% 18 105 19% 125 97 0 97 118 100% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 128 Not Applicable % Not Applicable Unable to assist Basin Business Advisors Chamber of Commerce College Industry Liaison Officer Community Futures Continuing Education and Workforce Training Economic Development Organization / Commission Innovation Councils (Kootenay Association for Science and Technology, Kootenay Rockies Innovation Council) Invest Kootenay National Research Council Industrial Research Assistance Scientific Research and Experimental Development Tax Incentive Program Basin Business Advisors 25 8 81% 24% 1 1 % Unable to assist 3% 3% 26 84% 0 15 47% 17 Survey Participants: 109 Figure 85.: Level of service from business support providers Poor % Poor Fair % Fair Good % Good Excellent % Excellent Respon -dents 0 7 0% 21% 0 4 0% 12% 1 8 3% 24% 4 6 13% 18% 31 34 0% 0 0% 1 3% 4 13% 0 0% 31 2 6% 1 3% 1 3% 6 19% 7 22% 32 53% 0 0% 1 3% 5 16% 9 28% 0 0% 32 23 74% 1 3% 1 3% 2 6% 3 10% 1 3% 31 20 65% 0 0% 1 3% 3 10% 5 16% 2 6% 31 26 87% 1 3% 0 0% 0 0% 3 10% 0 0% 30 25 83% 0 0% 0 0% 0 0% 3 10% 2 7% 30 23 74% 0 0% 3 10% 0 0% 4 13% 1 3% 31 25 98 81% 1 3% 0 0% 0 0% 1 3% 4 13% 31 Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 129 Figure 86.: Are there suppliers you think could locate in this region? Percent of Question Respondents Count Yes No Total 29 79 108 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 108 17 86% Figure 86b: Are there suppliers you think could locate in this region?: If Yes, please list Agricultural suppliers Design Services Farmers Industrial parts Meats & Dairy / Fruits and Vegetables / Grains Packaging materials Skilled labour Building supplies Distributors Forestry Suppliers Retail stores Manufacturers Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: Parent Question Respondents: Response Rate: 26.85% 73.15% Percent of Question Respondents Count 1 1 1 1 4% 4% 4% 4% 1 4% 1 1 2 2 2 2 3 12% 18 4% 4% 8% 8% 8% 8% 125 25 4 29 108 86% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 130 Figure 87.:Tell us which business, sector, or industry to attract that would strategically benefit you or your industry Agriculture value-added industries Percent of Question Respondents Count 1 1% Airport services 1 1% Bridal industry 1 1% Educational services 1 1% Green Businesses 1 1% Hospitality 1 1% Mountain biking 1 1% Agriculture 2 3% Forestry 2 3% Grocery stores 2 3% Information Technology 2 3% Mining and exploration 2 3% Food businesses 3 4% Retail Stores 3 4% Shipping companies 3 4% Technology businesses 5 6% Manufacturing 9 11% Tourism Total 19 24% 59 Survey Participants: 125 Question Respondents: 80 No Response Count: 45 Response Rate: 64% Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 131 Not applicable % Not applicable Not important at all or not very important 15 18% 29 35% 39 47% 83 7 8% 31 37% 46 55% 84 Add or change in business, products or services 3 4% 21 25% 59 71% 83 Affordable shipping/freight 0 0% 7 8% 77 92% 84 Availability of telecommunications infrastructure and services 3 4% 19 23% 62 74% 84 2 2% 26 31% 56 67% 84 12 14% 15 18% 57 68% 84 Expansion of workforce employees 3 4% 25 30% 56 67% 84 Improvement business management 2 2% 13 16% 67 82% 82 Improvement of customer services 4 5% 9 11% 71 85% 84 Improving worker productivity 6 7% 12 14% 66 79% 84 Figure 88.: Business competitiveness factors Access to exporting and international markets Accessing capital Energy costs Exchange rate for Canadian dollar % Not important at all or not very important Somewhat important, very important % Somewhat important, very important Respondents Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 132 New market development locally 2 2% 15 18% 67 80% 84 New market development outside of region 1 1% 9 11% 74 88% 84 New product research and development 1 1% 16 19% 67 80% 84 Reliable air transportation 21 25% 41 49% 22 26% 84 Strategic alliances (joining with other businesses to provide products/services) 3 4% 23 27% 58 69% 84 16 22 19% 27% 35 34 42% 41% 32 27 39% 33% 83 83 3 4% 12 14% 68 82% 83 1 1% 12 15% 69 84% 82 Water/sewer availability Water/sewer costs Workforce skill development Workplace health and safety 98 Survey Participants: Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 133 Figure 89.: Performance of key productivity drivers Innovation & the use of technology Not Applicable % Not Applicable Poor % Poor Fair % Fair Good % Good Excellent 1 1% 1 1% 18 24% 30 40% 25 33% 75 Investing in people and skills 4 5% 1 1% 13 18% 33 45% 22 30% 73 Leadership and management capacity 0 0% 1 1% 10 13% 38 51% 26 35% 75 Measuring impact of productivity efforts/ investments 3 4% 7 10% 21 29% 26 36% 15 21% 72 Networking and collaboration with other businesses 4 5% 6 8% 16 21% 33 44% 16 21% 75 Organizing work (structures & processes) 1 1% 2 3% 9 12% 34 47% 27 37% 73 Productive workplace culture 1 1% 1 1% 5 7% 42 56% 26 35% 75 98 Survey Participants: Columbia Basin Business Retention and Expansion Project: Report on Businesses in the Manufacturing Sector 134 % Respondents Excellent Figure 90.: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please pick top 3) Other niche service businesses (e.g. services to seniors) Construction Education Health & wellness Agriculture Percent of Question Respondents Count 6 8% 8 8 8 11 10% 10% 10% 14% 15 19% Arts culture and creative businesses Relocation of people from urban centres 18 23% 18 23% 20 25% Forestry 23 29% Technology-based businesses 23 29% Manufacturing 27 34% Tourism 64 80% Other Total 21 270 26% Survey Participants: Question Respondents: No Response Count: Response Rate: 98 80 18 82% Green or environmental businesses Figure 90b: Please indicate which economic drivers have the greatest potential for growth in the region over the next 5 to 10 years. (please Count Percent of Question Respondents 1 Business Retention and Expansion: Report on Columbia Valley Businesses pick top 3): If Other please specify Hospitality Retail Social entrepreneurship Transportation Mining Total Survey Participants: Question Respondents: No Response Count: Parent Question 'Other' Respondents: Parent Question Respondents: Response Rate: Figure 91.: Is your business impacted by its proximity to the Alberta border? 1 1 1.25% 1.25% 1 1.25% 1 11 15 1.25% 13.75% 98 16 5 21 80 76% Percent of Question Respondents Count Yes No Total 16 19 35 Survey Participants: Question Respondents: No Response Count: Response Rate: 98 35 63 36% Figure 91b: Is your business impacted by its proximity to the Alberta border?: If Yes, please explain Negative - Alberta competition Negative - Loss of sales to Alberta 46% 54% Percent of Question Respondents Count 1 6% 2 13% 2 Business Retention and Expansion: Report on Columbia Valley Businesses Negative - Workforce migration to Alberta 2 13% Positive - Alberta suppliers 2 13% Positive - Alberta tourists 2 13% Positive - Alberta customers 7 44% Total 16 Survey Participants: Question Respondents: No Response Count: Parent Question 'Yes' Respondents: 98 16 0 16 Parent Question Respondents: 35 Response Rate: 100% Assessment and Plans Figure 92.: Rate the following: Facility's overall health Count Excellent Good Fair Poor Total 21 70 21 5 117 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Percent of Question Respondents 18% 60% 18% 4% 117 8 94% 3 Business Retention and Expansion: Report on Columbia Valley Businesses Figure 93.: Rate the following: Overall health of the parent company Count Excellent Good Fair Not applicable Total 5 13 1 79 98 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 94.: Rate the following: Local management's attitude toward the community 5% 13% 1% 81% 98 27 78% Count Excellent Good Fair Poor Total 51 51 10 2 114 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 114 11 91% Figure 95.: Rate the following: Parent company's attitude towards the community Count Excellent Good Fair Poor Not applicable Total Percent of Question Respondents 6 10 1 1 78 96 Percent of Question Respondents 45% 45% 9% 2% Percent of Question Respondents 6% 10% 1% 1% 81% 4 Business Retention and Expansion: Report on Columbia Valley Businesses Survey Participants: Question Respondents: No Response Count: Response Rate: Figure 96.: Rate the risk: Facility closing in the next 1 - 3 years 125 96 29 77% Count High Moderate Low Total 3 11 105 119 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Figure 97.: Rate the risk: Facility downsizing in the next 1 - 3 years Percent of Question Respondents 3% 9% 88% 119 6 95% Count High Moderate Low Total 6 16 95 117 Survey Participants: Question Respondents: No Response Count: Response Rate: 125 Percent of Question Respondents 5% 14% 81% 117 8 94% 5 Business Retention and Expansion: Report on Columbia Valley Businesses APPENDIX B: NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODES 31-33 - Manufacturing9 This sector comprises establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. These products may be finished, in the sense that they are ready to be used or consumed, or semi-finished, in the sense of becoming a raw material for an establishment to use in further manufacturing. Related activities, such as the assembly of the component parts of manufactured goods; the blending of materials; and the finishing of manufactured products by dyeing, heat-treating, plating and similar operations are also treated as manufacturing activities. Manufacturing establishments are known by a variety of trade designations, such as plants, factories or mills. Manufacturing establishments may own the materials which they transform or they may transform materials owned by other establishments. Manufacturing may take place in factories or in workers' homes, using either machinery or hand tools. Units that completely outsource the transformation process but own the input materials are classified to the manufacturing sector. Units that completely outsource the transformation process but do not own the materials are classified to merchant wholesalers in Sector 41 Wholesale trade. These units are in fact buying the completed goods from the producer with the intention to resell it. These units may design the goods being manufactured, and may have some say in the manufacturing process. Certain activities involving the transformation of goods are classified in other sectors. Some examples are post-harvest activities of agricultural establishments, such as crop drying; logging; the beneficiating of mineral ores; the production of structures by construction establishments; and various activities conducted by retailers, such as meat cutting and the assembly of products such as bicycles and computers. Sales branches or offices (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products are included in Sector 41 Wholesale trade as merchant wholesalers. North American Industry Classification System (NAICS) Canada 2017 Version 2.0 - Classification structure Code 311Food manufacturing Subsector Food manufacturing 9 Stastics Canada. North American Industry Classification System (NAICS) Canada 2017 Version 2.0. Available at: http://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=380372&CVD=380373&CPV=3133&CST=01012017&CLV=1&MLV=5 (Accessed: 27th Feburary 2018). 6 Business Retention and Expansion: Report on Columbia Valley Businesses North American Industry Classification System (NAICS) Canada 2017 Version 2.0 - Classification structure Code Subsector 312Beverage and tobacco product manufacturing Beverage and tobacco product manufacturing 313Textile mills Textile mills 314Textile product mills Textile product mills 315Clothing manufacturing Clothing manufacturing 316Leather and allied product manufacturing Leather and allied product manufacturing 321Wood product manufacturing Wood product manufacturing 322Paper manufacturing Paper manufacturing 323Printing and related support activities Printing and related support activities 324Petroleum and coal product manufacturing Petroleum and coal product manufacturing 325Chemical manufacturing Chemical manufacturing 326Plastics and rubber products manufacturing Plastics and rubber products manufacturing 327Non-metallic mineral product manufacturing Non-metallic mineral product manufacturing 331Primary metal manufacturing Primary metal manufacturing 332Fabricated metal product manufacturing Fabricated metal product manufacturing 333Machinery manufacturing Machinery manufacturing 334Computer and electronic product manufacturing Computer and electronic product manufacturing 335Electrical equipment, appliance and component manufacturing Electrical equipment, appliance and component manufacturing 336Transportation equipment manufacturing Transportation equipment manufacturing 337Furniture and related product manufacturing Furniture and related product manufacturing 339Miscellaneous manufacturing Miscellaneous manufacturing 7 Business Retention and Expansion: Report on Columbia Valley Businesses