Warrington & Co. Warrington Business Survey 2016 May 2016
Mickledore Ltd. North West England Office Unit 2 Chapel House Barn Pillmoss Lane Lower Whitley Cheshire WA4 4DW Email: contact@regionaldevelopment.co.uk Web: www.regionaldevelopment.co.uk
Contents Section Page 1 Executive Summary 5-6 2 Background and Methodology 8 3 Key Findings Recruitment 10-14 Apprenticeships 15-16 Property Requirements 17-21 Business Support 22 Loans 23 Exporting 24 The European Union 25 Business Hospitality 26-27 4 Sample Profile 28-29 3
Executive Summary
Executive Summary The Warrington Business Survey 2016 was conducted between March and April 2016 and used an online methodology. Introduction and Methodology The aim of Warrington Business Survey 2016 is to help decision makers better assist businesses currently located within Warrington as well as in the aim of attracting inward investment and new jobs. Warrington & Co. with support from sponsors HSBC and Warrington Wolves, commissioned Mickledore, an economic development consultancy based locally, to undertake an online survey of businesses in the Warrington area. The survey was conducted online. The sample was generated from an Experian sample of all businesses in their database known to be located in Warrington. This provided 3,161 businesses (1,801 of which had named emails). In addition to the Experian sample, all businesses known to the business engagement team at Warrington & Co were included in the sample. This gave a total sample of c3418. All companies were emailed a unique link to the survey and the fieldwork period ran from 1st March to 26th April 2016. The achieved sample was 199, a response rate of c6%. The final data is unweighted. Summary of Findings Recruitment Of those surveyed, twice as many companies said their workforce had increased over the past year than said it had reduced. The cited growth of workforces is small mostly an increase of between 1 and 5 employees. Four in ten companies surveyed have plans to recruit over the coming months. Six in ten companies surveyed say they have experienced difficulties recruiting due to a lack of people with the right work experience. The Warrington restaurants, arts and culture offer is not overall thought to have an effect on ability to recruit. Apprenticeships 60% of companies surveyed in Warrington have not used an apprentice. Satisfaction with apprenticeships is positive. Cited problems amongst those not happy are around either the apprentice him/her self or with the training provider. Property Requirements A quarter of companies surveyed have plans to relocate within the next 5 years. The main reason for considering a site relocation is more likely to be related to suitability problems with the current property, rather than because of size constraints. Amongst the minority who are looking for a bigger property, requirements are mostly for space of up to 1,000 sq.. ft. A quarter of companies who are looking to move are considering a move away from Warrington for a variety of reasons. 5
Executive Summary (cont.) The findings of the business survey point to an economically active and growing business base in Warrington. Summary of Findings (cont.) Business Support The main sources of business support are the traditional, well known trusted brands the bank and the accountant. The majority of companies surveyed are not currently looking for a loan in order to grow their business. Awareness and usage of the Cheshire & Warrington Growth Hub is encouraging given its relatively recent inception. Exporting Most companies surveyed do not export. Those that do tend to export all over the world, rather than just in the EU. Business Hospitality Only a minority of companies surveyed are definite in the view that there are not enough conference facilities in Warrington. A quarter of companies surveyed think that Warrington needs more hotel accommodation to serve the business trade. This is thought to be most necessary in Warrington Central. Key Messages The survey findings point to an economically active, stable and growing business base in Warrington with twice as many companies looking to expand in the coming years than contract. Key Messages (cont.) There are issues around recruiting people with the necessary skills and qualifications. Property requirements amongst the minority who are looking to move are around suitability rather than size constraints. There are individual reasons for individual companies. Awareness and usage of the Cheshire & Warrington Growth Hub although low is encouraging given its recent inception. More work will need to be done in the future to build brand awareness of this. Most companies do not export. Whilst the majority of companies in Warrington provide goods or services not relevant for export, there is always the opportunity to build awareness of exporting opportunities amongst those eligible. Key Actions The survey has identified several business needs. Some of these are across the board and others are specific to individual companies (particularly around property requirements). For these companies, Warrington & Co. has been provided with detailed feedback, where companies have given permission. More generic business needs that have been identified include around: Addressing skills shortage issues Improving proportion accessing apprenticeships and ensuring the quality of provision is high across the board Building brand awareness of support services such as the Cheshire & Warrington Growth Hub. 6
Introduction
Background and Methodology The findings from the Warrington Business Survey 2016 will help decision makers better assist businesses currently located within Warrington as well as in the aim of attracting inward investment and new jobs. Background Warrington & Co. are keen to find out what views local businesses hold on issues such as recruitment, business support services, exporting and property requirements. It therefore commissioned Mickledore, an economic development consultancy based locally, to undertake an online survey of businesses in the Warrington area. The objective is that the findings of the survey will help decision makers better assist businesses currently located within Warrington as well as in the aim of attracting inward investment and new jobs to the area. The survey was commissioned by Warrington & Co. with support from key sponsors HSBC and Warrington Wolves. Survey Methodology The survey method was online, hosted by Survey Monkey. A sample of all businesses in Warrington held by Experian (a leading information services company) was purchased. This sample was built through access to the National Business Database and provided 3,161 businesses (1,801 of which had named emails). In addition to the Experian sample, all relevant businesses known to the business engagement team at Warrington & Co. were included in the sample. This gave a total sample of c3,418. All companies were emailed a unique link to the survey and the fieldwork period ran from 1 st March to 26 th April 2016. Survey Methodology (cont.) Several email reminders were sent during the fieldwork period to boost the response rate. In addition the survey was publicised through activities such as social media and the survey offered a prize draw of an IPad in order to incentivise response. The achieved sample was 199, a response rate of c6% (this cannot be calculated exactly as it is unknown how many additional companies were emailed the generic web link). A decision was taken not to weight the final data. This was due to a variety of reasons including a lack of reliable information on the known population profile of businesses, the low response rate and achieved sample size. Sample bases for each question are those answering that question. Due to small sample sizes, there is very limited ability to analyse results at sub group level but this has been highlighted where apparent. A marked up questionnaire showing topline findings, a raw data file in excel and willingness to be re-contacted information has been provided to Warrington & Co. under separate cover. A copy of the final questionnaire can be made available on request. 8
Key Findings
Recruitment Changes to the workforce Around half (52.2%) of the sample said that their workforce had remained the same over the last 12 months. Encouragingly, more than twice as many said that it had increased (33.9%) than decreased (13.9%). Of those surveyed, twice as many companies said their workforce had increased over the past year than said it had reduced. There are no significant differences to report by sector. Larger companies are more likely to say they have increased their workforce (52.2% have) compared with smaller companies (23.8% amongst those with between 1-10 employees). Q Has the size of your workforce at this site increased, decreased or stayed the same over the last 12 months? (Base: All who answered 180) 10
Recruitment Changes to the workforce Of the 61 respondents who said their workforce had increased over the last year, this was most likely to be by between 1-5 employees (75%). Where companies have grown, this growth has mostly been an increase of between 1 and 5 employees. Q By approximately how much has your workforce increased? (Base: All who have increased their workforce and answered 61) % n 1-5 employees 75.4 46 6-10 employees 11.5 7 11-15 employees 0.0 0 16-20 employees 1.6 1 21+ employees 11.5 7 Of the 25 respondents who said their workforce had decreased over the last year, again this was most likely to be by between 1-5 employees (72%). Q By approximately how much has your workforce decreased? (Base: All who have decreased their workforce and answered 25) % n 1-5 employees 72.0 18 6-10 employees 12.0 3 11-15 employees 8.0 2 16-20 employees 4.0 1 21+ employees 4.0 1 11
Recruitment Recruitment plans Four in ten companies surveyed have plans to recruit over the coming months. Nearly four in ten companies surveyed say they have plans to recruit new staff over the next 12 months. The sector most likely to say this is the professional, scientific & technical sector (63.6%). Larger companies are much more likely to say they plan to recruit more staff (65.2% amongst those with over 50 employees) compared with small companies (26.7% amongst those with between 1 and 10 employees). Three quarters (75.4%) of those who are planning to recruit over the next 12 months say it will be an increase of between 1 and 5 employees. Q Do you plan to recruit any new staff in the next 12 months? (Base: All who answered 180) 12
Recruitment Reasons for difficulties in recruiting Six in ten companies surveyed said they have experienced difficulties recruiting due to a lack of people with the right work experience. Six in ten companies (61%) surveyed say that they have experienced difficulty in recruiting staff in that there has been a shortage of people with the right work experience to do the job. Although not statistically significant, those in the professional, scientific and technical sector are more likely to say this, as are those working in finance & insurance, education and manufacturing. Around four in ten say that school leavers/graduates have a poor work ethic (42.7%) and that there is a shortage of people with the necessary qualifications needed for a particular job (40.5%). Q When recruiting staff in the past, have you have come across any of the following problems? (Base: All who answered 131) 13
Recruitment Effect of Warrington restaurants, arts and culture offer on recruitment Only a very small minority (5.1%) say that the restaurants, arts and culture offer in Warrington has had a negative impact on their ability to recruit employees for the vast majority it has had no effect (65.1%). The Warrington restaurants, arts and culture offer is not overall thought to have an effect on ability to recruit. Q Thinking about the restaurants, arts and culture offer in Warrington, has this ever had any effect on your ability to recruit employees? (Base: All who answered 175) 14
Apprenticeships Use of Apprenticeships 60% of companies in Warrington have not employed an apprentice. Four in ten (41%) companies who responded to the survey have recruited an apprentice in the past. Those more likely to have done so are larger companies (61.9% amongst those with over 50 employees vs 21.8% amongst those with 1-10 employees). At a sector level those in the manufacturing and wholesale sectors are most likely to say they have recruited an apprentice in the past (66.7% and 80.0% respectively). Of those that have recruited an apprentice, broadly half (46%) of these were with a Warrington based apprenticeship provider, with slightly less (44%) being provided outside of Warrington. Q Have you ever recruited an apprentice? (Base: All who answered 173) 15
Apprenticeships Satisfaction with apprenticeships Overall, the majority (62.5%) of those who have had an apprentice have been satisfied with the quality of it. Satisfaction is broadly similar regardless of whether the apprenticeship provider is based in Warrington (60.6%) or elsewhere (58.1%). Satisfaction levels with apprenticeships are positive. Cited problems amongst those not happy are around either the apprentice him/her self or with the training provider. Q How satisfied or dissatisfied have you been with the quality of apprenticeship provision? (Base: All who answered 72) The minority (12) of respondents who said they were dissatisfied with the quality of the apprenticeship scheme were asked why they were dissatisfied. The verbatim responses to this question are listed below and relate to dissatisfaction with both the apprentices themselves and the training provider. Person was not committed to the job. Didn t turn up for work and the apprenticeship failed. Tutors were not consistent. Poor applications and difficult to find someone. Lack of quality people running it. It is very very poor. General lack of management oversight at the college. Poor organisational skills in the management of placements and the quality of support in place for apprentices has been poor. Not able to provide many suitable candidates. Training pretty useless. They were constantly late and stole from us so very disappointed. 16
Property Requirements Likelihood of moving from current site A quarter of companies surveyed have plans to relocate within the next 5 years. The majority (59.5%) of companies surveyed say that it is unlikely that they will relocate from their current site within the next 5 years. Over a quarter (27.7%) do think it is likely they will move. Looking at likelihood to move, there are no statistically significant differences by sector. Larger firms (with over 50 employees) are less likely to say they are considering a move (9.6% - 2 respondents are) than smaller companies (29.7% amongst those with 1-10 employees). Q How likely is it that you will relocate from your current site in the next 5 years? (Base: All who answered 173) 17
Property Requirements Reasons for considering site relocation Of the 49 companies who said that they were considering a site relocation in the next 5 years, three in ten (31.3%) stated that this is related to size. The majority however (68.8%) say that their current site is not suitable for other reasons. The main reason for considering a site relocation is more likely to be related to suitability problems with the current property, rather than because of size constraints. Such reasons vary greatly depending on many factors. Some of the most common reasons cited are that their current site is too expensive (relating to business rates or rents), too dated, not fit for purpose, traffic congestion and local car parking issues. A list of verbatim reasons cited is given below. Am likely to move house Not large enough It is rented, and I wish to invest in an owned property New town centre Too expensive - business rates and rent Due to be redeveloped in town centre I work from home office and would like to move to a more permanent office, if the projects I work on deliver the desired returns. Not enough work available to us on this site Too expensive Not earning much here End of lease Too hidden from passing trade No natural light, unsuitable work environment Business rates are far too expensive Poor access Lease runs out It s a former agricultural building which would need significant sums spending on it to bring it to a good bring it to a good standard The buildings are tired and don't portray a modern image of company. We will need workshops We want to buy a unit rather than rent. Lack of footfall in Lymm Not enough incoming power supply Crime, vandalism Being rebuilt The traffic gridlock in Warrington is causing clients to go to competitors where they can access their offices more easily Developments in town Alternative options in Germany Car parking in the town centre, traffic wardens who plague us, and time spent getting into and out of the town Ageing building Warrington is not suitable not the site 18
Property Requirements Reasons for considering site relocation Of the 15 survey respondents who said that they are considering a move because of size issues, this is overwhelmingly due to their current site being deemed too small (80%). Only 3 respondents say they are considering a move because their current site is too big. Amongst the minority who are looking for a bigger property, requirements are more likely to be for space of up to 1,000 sq. ft. Most of those looking to move are looking for office space or a combination of office space and other facilities and are looking for property up to 2,500 sq. ft. Q If you are looking for extra space, approximately what size are you looking for? (Base: All who answered 12) Q What kind of extra space do you need? (Base: All who answered 12) Those looking for alternative accommodation come from a variety of sectors (listed below). Where respondents have given their permission, details of these companies have been provided to the local authority under separate cover. Accommodation & food services Business administration & support services Education Information & communication (2) Manufacturing (2) Professional, scientific & technical (2) Property (2) 19
Property Requirements Likelihood of relocating out of Warrington A quarter of companies who are looking to move are considering a move away from Warrington for a variety of reasons. This equates to 11 businesses. Those that indicated a likelihood to move were asked if this would be within Warrington or outside of it. Of those that responded, around half (46.7%) said they would be looking to move within Warrington. A quarter (11 respondents) said that they are likely to consider a move out of Warrington. Those that said they are likely to consider a move outside of Warrington were asked why. A copy of verbatim comments given is provided on the following page. Reasons cited vary and include such factors as wanting to be nearer clients, Warrington traffic congestion, business rates and rents being too high in Warrington. There are no trends by sector or size of company. Q Do you think you will relocate within Warrington or outside of it? (Base: All who said they were likely to move and answered 45) 20
Property Requirements Reasons for considering relocating out of Warrington A list of verbatim comments given for reasons why considering a move out of Warrington is provided below. There are many different reasons why companies may be looking to relocate outside of Warrington. To link in with other services that we provide We are expanding business with Sellafield and the nuclear community and they prefer local based suppliers so we will probably take a Cumbria post code Clients do not like coming to the office because of the perpetual congestion from the M62 and M56 Motorways into Warrington. In fact they are preferring to go to competitors because their offices are more easily accessed than the centre of Warrington is. Because I am moving house and as the business owner I want an office close to where I live Business rates and rents are too high in Warrington Daresbury has better office facilities on shorter leases and well priced. Had to rent two business units to get enough power supply to run the machine tools within the company and this is now almost at capacity. The cost to the company is extreme having to pay two Rents/Rates and utility bills. We cannot employ local school leavers unless they have their own transport for apprentices post as the traveling time to and from appropriate apprentice courses is too long. Transfer of business to German warehouse Warrington transport system is hopeless and will not attract businesses until something positive is done. Also Warrington do not look locally for business support, where I believe Manchester does. 21
Business Support Usage and awareness of business support sources The main sources of business support are the traditional, well known trusted brands the bank and the accountant. It is clear that companies turn to trusted brands in terms of accessing business support 73.9% use their accountant and 72% their bank. The gov.uk website is also a well used source of support 49% say they have used this. Combined, four in ten (42.1%) have used Warrington Borough Council or Warrington & Co. business support services. A quarter of respondents (24.8%) are aware of the Cheshire & Warrington Growth Hub and one in ten (9.6%) have used it this is encouraging given the relatively short time it has been in operation. Awareness is comparatively higher amongst manufacturing companies this is likely to be a result of awareness being raised through business engagement activity in this sector. Q Which of the following sources of business support are you aware of/used? (Base: All who answered 161 aware, 157 used) 22
Loans Loans The majority of companies surveyed are not currently looking for a loan in order to grow their business. The majority of companies (73.7%) surveyed are not currently considering trying to access loans in order to grow their business. Roundly one in five (18%) are. There are no trends at sector level. Those companies with between 11 and 49 employees are the most likely to say they are looking for loans 30.4% are, compared with either smaller companies (13.4% amongst those with 10 or fewer employees) or larger companies (10% amongst those with over 50 employees). A list of companies looking to access loans and agreeing to have their details passed on to Warrington & Co. and survey sponsors has been provided under separate cover. Q Is your business currently thinking about trying to access any loans in order to grow your business? (Base: All who answered 167) 23
Exporting Prevalence of exporting Over two-thirds (69.9%) of businesses surveyed do not currently export their goods and services. Around three in ten do 19.9% to the EU and beyond; 7.2% to the EU only and 3% to places other than the EU only. Most companies surveyed do not export. Those that do tend to export all over the world, rather than just in the EU. As would be expected, exporting is more common amongst certain industries and by company size. Larger firms are more likely to export (30% do amongst those with over 50 employees compared to 16.7% of those with 10 or fewer employees) as are those in manufacturing (57.9%), professional, scientific and technical (52.4%), motor trades (42.9%) and information & communication (50%). The vast majority (94%) of those who do not currently export have no plans to do so. Seven respondents in total are thinking about exporting in the future and where permission has been given, details of these companies has been provided to Warrington & Co. under separate cover. Q Does your business currently export any of its goods or services? (Base: All who answered 166) 24
The European Union Views on the effect of EU membership on growth and sustainability of business Companies were asked their views about what effect membership of the EU has had on the growth and sustainability of their business. More were positive than negative. A quarter (26.2%) believe that membership of the EU has had a positive effect and a further 5.5% believe it could have had a positive effect but that they have not taken advantage. A minority (9.8%) say that membership of the EU has had a negative impact on the growth and sustainability of their business. Three in ten (31.1%) say it has had no effect with the rest unable to answer one way or another. There are no discernible differences by industry sector or size. Q From the point of view of your business, which of the following statements do you agree with? (Base: All who answered 164) 25
Business Hospitality Conference Facilities Just over four in ten (44.2%) think that there are enough conference facilities in Warrington. Thirteen percent think that there are not, whilst a significant proportion (42.4%) feel unable to give an opinion one way or another. Only a minority of companies surveyed are definite in the view that there are not enough conference facilities in Warrington. There are no differences in results when looking at company size. 13.5% of those with between 1 and 10 employees think that there are not enough conference facilities; 10.5% amongst those with over 50 employees. Likewise, there are no patterns visible by sector. Q Do you think there are sufficient conference facilities in Warrington? (Base: All who answered 165) 26
Business Hospitality Hotel needs A significant proportion of companies who responded to this question did not feel able to give an opinion. A quarter (26.1%) think that Warrington does need additional hotels to serve business trade; slightly more (29.7%) disagree. A quarter of companies surveyed think that Warrington needs more hotel accommodation to serve the business trade. This is thought to be most necessary in Warrington Central. Whilst not statistically significant, amongst the sectors more likely to say that more hotels are needed are the manufacturing and professional, scientific and technical sectors (31.6% and 38.1% respectively). Larger companies, who are more likely to be attracting visitors/colleagues in need of hotel accommodation, are more likely to state that additional hotels are needed 47.4% of those with over 50 employees say this compared to 25% amongst those with between 1 and 10 employees. Of those that think additional hotels are needed, the greatest need is perceived to be in Warrington Central. As would be expected, there is a correlation on where a company says there is a hotel needed and the company location. For example, of those companies based in Warrington Central, all those who say a new hotel is needed think it should be in the town centre. Likewise, those based in Warrington South think this area is where an additional hotel is needed. Q Do you think that Warrington needs additional hotels to service business trade? (Base: All who answered 165) Q If yes, whereabouts in Warrington do you think an extra hotel is needed? (Base: All who answered 43) 27
Sample Profile Sector and Size The sample is dominated by small companies (employees of 5 or less); this reflects the size of businesses across Warrington. As would be expected, the largest cohort in the sample is small companies with between 1 and 5 employees. Q Which of the following best describes the principal activity of your business? (Base: All who answered 199) Q How many employees are there at this site? (Base: All who answered 194) 28
Sample Profile Length of time in Warrington and Turnover Over half of the sample (55.1%) have been based in Warrington for at least 10 years. Only a very small minority (less than 2%) are newcomers. Most businesses surveyed have been based in Warrington over a large number of years. A quarter of businesses surveyed have a turnover under the VAT threshold. One in ten companies surveyed have an annual turnover of over 10m. This is likely to be a reflection of the higher response rate amongst larger businesses known to the Business Engagement Team at Warrington & Co. Q How long has your business been based in Warrington? (Base: All who answered 187) Q What is the annual turnover of your company at this site? (Base: All who answered 175) 29
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