Ottawa Chamber of Commerce Ottawa Business Confidence Index Q Released March 2014
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1 Ottawa Chamber of Commerce Ottawa Business Confidence Index Q Released March 2014
2 Five Key Findings To Take Away Overall, 62% of Chamber members who responded to the survey stated that their business has always been in Ottawa. The strongest of the reasons to set up shop in Ottawa was that respondents felt Ottawa is where business opportunities existed Taxes, licensing\permitting issues, and lack of skilled workers were seen as the top three barriers to doing business in Ottawa In all, 42% stated that the development of Lansdowne Park will have a positive impact on their business, 49% said it had no impact, and 6% expect a negative impact Overall, 59% of respondents felt the construction and development of the LRT will have a positive impact on their business, 25% no impact, and 11% negative impact When asked which level of government was most effective at helping the economy in Ottawa, the City of Ottawa was seen as the most effective, ahead of the Provincial and Federal governments 2
3 Doing Business in Ottawa 3
4 Ottawa: Attracting and Retaining Businesses What attracted your business to Ottawa? What keeps your business in Ottawa? Business has always been in Ottawa 62% My family is here 46% Where business opportunity existed 35% I opened here and have not had a reason to move 43% Close to family 24% Business in Ottawa is good 36% Proximity to customer base 17% I run a branched location in Ottawa 20% Resources (ie, access to a skilled workforce) 9% Other 11% Other 8% Im a Federal Government supplier 8% Transportation (ie, availability of Ottawa-based public transit) 2% Overall, a majority (62%) of Chamber members who responded to the survey stated that their business has always been in Ottawa. However, of the strongest reason to set up shop in Ottawa was that respondents felt this is where business opportunities existed. Further, in terms of staying in Ottawa, 43% of respondents reported having no reason to move their business, and 36% reported that business in Ottawa is good. These findings should be seen as encouraging for the business community in Ottawa, as business owners small and large express feelings of opportunity and comfortable markets. 4
5 Most Important Issues for Ottawa Businesses Please rank the top five most important issues for Ottawa business over the coming five years Economic development New business attraction Skilled workforce Access to capital Transportation Taxes Tourism\visitor attraction City Hall's fiscal management Business permitting/planning Environment Municipal by-laws Development changes Use of land zoned for commercial/industrial develompent 68% 48% 37% 26% 25% 23% 20% 17% 10% 10% 7% 6% 6% % Ranked in top 3 When business were asked to pick what they felt would be the most important issues for Ottawa businesses in the coming five years, economic development and attracting new businesses were the top choices. However, the issue of a skilled workforce and attracting good staff was ranked in the top three by 37% of respondents. 5
6 Barriers to doing business in Ottawa Over half of respondents indicated there are barriers to doing business in Ottawa. Although taxes were seen as the number one barrier, licencing and permitting issues and access to a skilled workforce were tied for second most significant barrier. Issues with finding skilled employees returns as a common theme, with respondents already pointing to difficulties with finding good people being a significant barrier in the coming five years. Business taxes 22% Business licensing/permitting issues (ie, costs, delays) 20% 56% 56% Indicate barriers to doing business in Ottawa 44% Access to skilled workforce Other Transportation (ie, availability of Ottawa-based public transit) Growth restrictions Municipal by-laws 20% 20% 17% 16% 14% Yes No Development charges Use of land zoned for commercial/industrial development 14% Respondents were asked to select any of the above that apply 8% 6
7 Ottawa Business Attitudes 7
8 Impact of Lansdowne Development Based on what you know and have heard, what sort of impact will the construction and development of Lansdowne Park have on your business? 42% 6% 49% Positive Negative No impact 8
9 Impact of Light Rail Development Based on what you know and have heard, what sort of impact will the construction and development of Ottawa s Light Rail Transit System including the transit tunnel have on your business? 59% 11% 25% Positive Negative No impact 9
10 Dashboard Business Confidence 69% Compared to six months ago, has your confidence in the economy In the next six months, do you plan to Keep employee levels the same 56% 12% 19% Recruit new employees 41% 39% 39% 22% In the last six months, has your sales and/or growth level Reduce employee numbers Although most businesses in Ottawa were neutral about the economy in Q4 2013, compared to six months prior to that, many are optimistic about the future. 42% of businesses expect their market sector to improve, and 41% plan to hire new employees. 3% 42% 7% 51% Over the next six months, do you expect the market for your business sector to be Only 22% of respondents experienced sales or growth decline over the past six months, and just 3% planned to reduce the number of employees within the next six months. In the coming reports, these and other indicators will be combined into a Business Confidence Index; a regular release examining the aggregate feelings of businesses in the Ottawa area. 10
11 Government Support for Helping Business in Ottawa 50% Effective 33% Effective 30% Effective How effective do you think each of the following groups have been at helping the economy in Ottawa? The Ottawa Municipal Government 5% 45% 36% 14% The Ontario Provincial Government 2% 28% 47% 23% The Federal Government 8% 25% 43% 24% Extremely effective Fairly effective Not that effective Not at all effective 11
12 Methodology and Sample Composition All members of the Ottawa Chamber of Commerce with valid addresses were invited to participate in the online survey hosted by Abacus Data. In total, representatives of 107 Ottawa businesses completed the survey from October 20 to December 10, About Abacus Data Abacus Data is one of North America s leading public opinion and marketing research firms bringing together the latest technology and industry expertise to help organizations effectively understand and connect with those they serve. Having conducted research for some of North America s leading corporations and advocacy groups, we deliver global research capacities with the attention to detail and focus of a boutique firm. For more information about the Ottawa Business Confidence Index please contact: EXPERTISE Our team has extensive knowledge about public opinion research, public affairs, municipal and provincial politics and communications research. EXPERIENCE Our team has combined market research experience of over 40 years helping to solve marketing, communications, and public affairs problems for our clients. INNOVATION Our team is always learning new ways to gain the best insights for our clients. Our clients will attest to how we have encouraged them to use new methodologies which resulted in better insights. David Coletto, CEO Abacus Data david@abacusdata.ca Kenny Leon Senior Manager Communications ext.130 kenny.leon@ottawachamber.ca COMMITMENT As a boutique, full-service market research firm, our success is driven by the strong relationships we have with out clients. Our size means we are more dynamic and innovative than large firms. ENERGY Our team is passionate about research and our clients. We work hard and get things done no matter the effort required. Evenings, weekends, early mornings... we do it to get things right. 12
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