MNP Business Leaders Survey
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1 MNP Business Leaders Survey Cowichan Region 2016 Presented by: Presented by: Date:
2 Agenda Introduction Research Methodology Profile of Survey Participants Results Panel Discussion & Questions Page 2
3 Introduction Modelled after similar surveys conducted by MNP across Canada. Short pulse survey designed to provide an economic snapshot of the local business community and opinions on key local issues. Developed in partnership with the Duncan Cowichan Chamber of Commerce and Community Futures Cowichan. Goal is to generate baseline information so we can work together to improve the local business climate and help local businesses succeed. Page 3
4 Methodology Page 4
5 Methodology The survey was conducted by a third-party market research firm, PRA Inc. under the guidance of MNP, the Duncan Cowichan Chamber of Commerce and Community Future Cowichan. In total, 704 businesses were contacted, 356 were reached and 202 business leaders completed the survey. Respondents included: business owners, CEOs, presidents, executive directors and designated senior corporate officers from businesses across all industry sectors in the Cowichan Region. Telephone interviews were conducted between January 13-26, Page 5
6 Methodology Of the 202 respondents, 167 were Chamber members and 35 were randomly selected from other businesses. 40% of the businesses we spoke to participated in the survey, which is a very high response rate. Results will be posted on the Duncan Cowichan Chamber of Commerce Community Futures Cowichan and MNP Duncan websites. Page 6
7 Profile of Survey Participants Where is your business located? Municipality of North Cowichan 30.1% City of Duncan 44.6% CVRD Areas 21.9% Town of Lake Cowichan 0.5% Town of Ladysmith 1.0% Page 7
8 Profile of Survey Participants How many years has your company been in business? 11 to 25 yrs to 49 yrs 22.8% 4 to 10 yrs 29.7% 50 yrs or more 12.4% 3 yrs or less 13.4% Don't know / no response 1.5% Page 8
9 Respondents by Number of Employees Survey Sample CVRD (BC Stats 2014) 49.5% 57.6% 20.9% 18.5% 11.5% 11.9% 12.5% 6.6% 4.5% 2.5% 2.0% 0.4% 1 to 4 5 to 9 10 to to to plus Page 9
10 Respondents by Industry Survey Sample CVRD (BC Stats 2014) Agriculture, Forestry, Fishing & Hunting 4.0% 7.2% Construction 7.4% 15.2% Health Care & Social Assistance 5.9% 9.9% Accommodation & Food Services 6.5% 13.9% Arts, Entertainment & Recreation 2.0% 7.9% Finance & Insurance 3.0% 5.9% Retail Trade 14.0% 18.8% *Tourism 0.0% 5.9% Page 10
11 Results Page 11
12 Business Performance - Financial Compared to 12 months ago, how would you describe the financial performance of your company today? Better 54.0% Same 32.2% Don't know / no response 2.5% Worse 11.4% Page 12
13 Business Performance - Employment In the past 12 months, has the number of people you employ increased, decreased or remained the same? Remained the same 59.9% Don't know / no response 1.5% Increased 29.2% Decreased 9.4% Page 13
14 Business Performance - Capital In the past 12 months, would you say capital investments into your business have increased, decreased or remained the same? Stayed the same 56.4% Don't know / no response 6.4% Increased 30.7% Decreased 6.4% Page 14
15 Business Challenges - Limitations Is your business limited by: Transportation / shipping costs 39.1% The image of the community 35.1% Provincial government regulation 32.7% Local government approval processes / inspections 32.2% Lack of skilled labour 29.2% Access to capital 28.2% 20.0% 40.0% Page 15
16 Business Challenges - Greatest What is the greatest challenge facing your company in the next 12 months? Skills shortage Managing growth / expansion Maintaining client base / revenue / sales / profits 9.4% 10.4% 12.4% Exchange rate Marketing / branding / promotion Rising operation costs Uncertain economic climate / stability Cash flow 6.9% 6.9% 6.4% 5.9% 5.4% Page 16
17 Business Challenges - Succession Does your company have a succession plan? No 56.9% Yes 36.6% Don't Know / No Response 6.4% Page 17
18 Attitude on Government Performance Would you say the Federal Government has been doing a poor job, only a fair job, a good job or an excellent job in terms of creating a good climate for business? 50.0% 40.0% 30.0% 31.2% 29.2% 20.0% 18.3% 10.0% 11.9% 8.9% 0.0% 0.5% Poor Fair Good Excellent Don't Know / No Response Too Early to Tell Page 18
19 Attitude on Government Performance Would you say the Provincial Government has been doing a poor job, only a fair job, a good job or an excellent job in terms of creating a good climate for business? 50.0% 45.0% 40.0% 30.0% 20.0% 21.8% 23.3% 10.0% 0.0% 7.9% 2.0% Poor Fair Good Excellent Don't Know / No Response Page 19
20 Attitude on Government Performance Would you say the Local Government has been doing a poor job, only a fair job, a good job or an excellent job in terms of creating a good climate for business? 50.0% 40.0% 30.0% 33.7% 31.7% 20.0% 21.8% 10.0% 4.5% 8.4% 0.0% Poor Fair Good Excellent Don't Know / No Response Page 20
21 Business Climate Competitiveness How much do you agree that the Cowichan Region s business climate is competitive with other regions on Vancouver Island? 33.2% 26.7% 14.9% 5.9% 9.9% 9.4% 1 - Strongly disagree Strongly agree Don't know / no response Page 21
22 Local Government Feedback What is the one thing you would tell the local government they should do to improve the business climate here in the Cowichan Region? (Top 5) Reduce red tape / easier to deal with (more permits / better zoning / planning department) 15.3% Increase or diversify marketing / promotion of Duncan / Cowichan (attract tourists / customers) 11.4% Improve management / policies / services (incl. spending / costs) 10.9% Encourage new investments / industries / business developments 9.9% Nothing / continue as they are 8.4% Page 22
23 Local Government Feedback From a business perspective, do you generally support or oppose the idea of amalgamating the City of Duncan and the Municipality of North Cowichan? Support 72.3% Oppose 10.9% Don't Know / No Response 8.9% Indifferent / Don't Care 7.9% Page 23
24 Economic Successes What are three of the best economic successes or initiatives that have occurred in the Cowichan Region? (Top Responses) Local agriculture, food and culinary sector 10.9% Wine industry development and wine tours 8.4% Cowichan Regional Visitor Centre 8.4% Local parks and trail development 7.9% Roads / Infrastructure 5.4% Sunfest Music Festival 5.4% Vancouver Island University Campus 5.0% Page 24
25 Economic Development Priorities From a business perspective, what would you advise should be the top priorities for economic development in the Cowichan Region? (Top 6) Market the Cowichan Region as a tourism destination 28.2% Improve local infrastructure and/or business services Build / expand tourism infrastructure (hotels / attractions / natural beauty) Improve community services and livability (housing / education / seniors / amenities) Attract businesses to relocate to the Cowichan Region / create employment 16.8% 13.9% 11.4% 9.9% Support the growth of existing businesses / promote local businesses 8.4% Page 25
26 Business Outlook - Finance Thinking about 12 months from now, financially do you expect your company to be performing better, about the same, or worse? Better 62.4% Same 32.2% Don't know / no response 3.0% Worse 2.5% Page 26
27 Business Outlook - Employment Thinking about 12 months from now, do you expect the number of people employed by your business to increase, decrease or remain the same? Remain the same 54.5% Don't know / no response 1.5% Increase 41.1% Decrease 3.0% Page 27
28 Business Outlook - Capital In the next 3 years, would you expect your capital investment into your business to increase, decrease or remain the same? Decrease 5.4% Stay the same 41.6% Increase 48.5% Don't know / no response 4.5% Page 28
29 Business Outlook - Capital Why do you expect capital investments to increase, decrease or stay the same in the next three years? Business growth / expansion 16.6% No need / set up at this point 13.0% No plans to change / no serious expenditure required Optimism - product / services will be in demand / growth approach 8.3% 8.3% Purchase new machinery / equipment / vehicles Necessary repairs / upkeep / upgrades / renovations 6.2% 6.2% Page 29
30 Summary Cowichan business community is cautiously optimistic 62% optimistic of business growth in 2016 Local business climate is competitive with other Island regions, but still room to improve Feedback to local government: cut the red tape Key business challenges for 2016 Skills shortage Transportation / shipping costs Managing business growth and expansion 57% of respondents do not have a succession plan 35% of respondents say the image of the community is limiting business growth Page 30
31 Meet the Panel Cathy Robertson, General Manager, Community Futures Cowichan Randy Bertsch, President, Islands Savings Janet Docherty, Owner, Merridale Ciderworks Scott McKay, General Manager, Pro Mac Manufacturing Ltd. Page 31
32 Page 32
33 MNP Business Leaders Survey For a full copy of today s presentation: Page 33
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