HAMILTON COUNTYBusiness Retention& Expansion Report

2015

2Business Retention Report 2015

HCDC’s Business Retention and Expansion (BR&E) Program strengthens community-business relationships by understanding the issues facing businesses. This information can assist efforts to improve the business conditions in Hamilton County. The BR&E program focuses on companies that are expanding, looking to relocate, or are in a target industry. The BR&E annual survey report serves as a focal point for identifying business needs and coordinating a response with all potential partners including local governments, utilities, and other economic development entities. This county-wide program also links businesses to resources to help them grow.

HOW DOES THE PROGRAM WORK?HCDC coordinates with community officials to arrange on-site visits to targeted companies. Visits are tailored to the businesses’ needs to provide better assistance, gather information, and answer any questions that arise during the meeting. More importantly, after the visits, the businesses know who to contact when assistance is needed in the future.

HCDC also hosts the Hamilton County Business Retention & Expansion Council, which consists of local communities and other economic development entities. The Council holds quarterly meetings, coordinates on-site visits, collects surveys, and develops program guidelines with the goal of increasing contact with local companies.

WHAT COMPANIES ARE TARGETED?• Industry Sectors (Advanced Manufacturing, Aerospace & Aviation, Automotive, BioHealth, Consumer

Products, Energy, Finance & Insurance, Food Sciences & Agriculture, IT, Polymers & Chemicals)• Stage 2 Companies (10 - 99 employees with sales more than $1 M and less than $50 M)• Top Employers (Fastest Growing Companies, Largest Companies, etc.)• Mergers and Acquisitions• Companies involved in major layoffs (WARN Notices)• Companies located in aging facilities or multiple facilities

Overview of Program

3Business Retention Report 2015

Executive Summary

In 2015, 180 businesses representing at least 23,230employees were visited by Council representatives. These businesses, aligned with HCDC’s core strategy for inclusion in the program. This report, highlights results from those companies.

The average total employed from all businesses was 138 employees. Seventy percent (70%) of the companies employ 1 - 100 people. The remaining thirty percent (30%) employ from 105 to 2,800 people. There were several positive signs from 2015. Ninety-nine percent (99%) of companies indicated they were hiring or were stable, while only one percent (1%) said they were reducing staff. From the data collected, ninety-five percent (95%) of companies reported that sales were growing or stable, which left only five percent (5%) indicating declining sales.

The year was not without some challenges to local businesses, and HCDC identified those as well. Thirty-three percent (33%) of companies said they were having problems with recruiting for positions or skills. It should be noted that this was a four percent (4%) reduction when compared to last year. Much like in recent years, businesses in the Advanced Manufacturing and Information Services and Software sectors reported the most issues. This year, 60 companies or thirty-three percent (33%), reported that their facilities are not sufficient for the future. The most problematic issue reported was “not enough space.”

There were only 16 companies that reported having local community issues. Some of those issues included: workforce availability, quality of life, taxes, and utilities. Workforce availability was the highest reported issue. Some additional needs that were identified during retention meetings with companies: road maintenance, financing, power outages, litter, and signage. Staff provides follow-up on all reported local issues or needs and forwards the information to the correct partner.

CONCLUSIONSBusinesses continue to appear to be doing well. Both sales and employment hiring show positive upward trends. However, businesses are still having recruiting issues within key industries, which can slow down growth. A lower percentage of companies in 2015 (33% compared to 46% in 2014) indicated facility issues, but the highest reported issue continues to be “not enough space.”

Report SummarizedIn 4 Key Areas:

4Business Retention Report 2015

Highlights

5Business Retention Report 2015

HIRING, STABLE, OR REDUCING STAFF

33%of the companies reported that they had issues with recruiting employees for positions.

RECRUITING PROBLEMS WITH POSITIONS OR SKILLSETS

From the data collected, only two companies responded that they were reducing staff (1%). The majority of companies reported that they were hiring staff (58%). Forty-one percent (41%) reported employment was stable.

Workforce

Highlight of positions reported: App Developers (java, etc.), Engineers (civil, electrical, and mechanical), and Machinists.

6Business Retention Report 2015

LOCAL COMMUNITY ISSUES

Below is a summary of the immediate needs companies were experiencing this past year. Each company is provided follow-up assistance to address the need stated.

• Find a new building or need additional space

• Training grants and workforce assistance

• Road maintenance• Tax incentives and financing• Recruiting issues (hiring talent, etc.)• Business coaching assistance

• Road access issues• Litter near or on property• Signage• Access to capital• Power outages• MSD surcharge program• Environmental resources• Fence approval process

IMMEDIATE NEEDS REPORTED

Workforce Availabilitywas the most frequently reported community issue.

Sixteen companies reported local issues. Staff provides follow-up on all reported local issues and forwards the information to the correct partner.

Local issues:

6

3

3

3

1

1

2

2

Local Issues & Immediate Needs

7Business Retention Report 2015

FACILITY ADEQUATE FOR FUTURE OPERATIONS

LOCAL EXPANSION PLANS IN THE NEAR FUTURE

60companies

Or 33% reported that their facilities are not adequate for future operations. Companies responding “no” are offered assistance to either expand on site or find an alternative location. The leading issue reported was “Not Enough Space.”

Reported issues with facility:

Business Outlook

8Business Retention Report 2015

ARE SALES: GROWING, STABLE, OR DECLINING

COMPANIES BY INDUSTRY SECTORS

Advanced Manufacturing (38%) and IT (21%) were the highest represented sectors. HCDC and partners also meet with businesses outside of these sectors. Examples include: Professional Services, Manufacturing, Construction, Transportation, and Health Care & Social Assistance.

STATUS OF FACILITY: OWNED OR LEASED

One indicator of commitment to the area is the degree to which companies own versus rent business space. A majority of

companies in the BR&E program own their facility.

39%of companies lease

61%own their business space

A majority of company sales were growing (62%). The high percentage of sales growth is a positive indicator for Hamilton County companies.

Business Demographics

9Business Retention Report 2015

COMPANIES3DVision Technologies Corp.4th Floor Creative84.51ºA Salon Named Desire*AB&J Machining & FabricationAbel Fabrication & Precision ProductsAble Tool CompanyAdvanced Testing Laboratory, Inc.Aero Propulsion Support, Inc.Affordable Language ServicesAgriumAIM MRO HOLDINGS, INC.Airtech, LLCAllied Construction IndustriesAmerican Financial GroupAmetek, Inc.Angilos Commissary*A-One Cleaners*Aprecia PharmaceuticalsAPTech Group, Inc.Assist Financial Group, LLCAtlas Dowel & Wood ProductsAxiom ConsultingBanking Branch and Trust (BB&T)Beast CarbonBeckman MachineBi-OkotoBistro Grace*Black Plastic Records*Black Rabbit Salon*Bloomfield/Schon + PartnersBlue Chip Tool CompanyBlue Ocean FacilitiesBSI EngineeringBusiness BackerCadre Computer ResourcesCafe de Sales*Callibrity Solutions, LLCChester Labs, Inc.Cincinnati Bulk Terminals, LLCCincinnati Crane & HoistCincinnati Test Systems, Inc.Cincinnati, Inc.CINCO Credit UnionClovernook Center for the Blind & Visually ImpairedCME Sewer RepairCohesion Corporation

Combined Containerboard, Inc.Consolidated Metal ProductsConvergys Corporation HQCooper ElectricCorbus, LLCCox Media Group Ohio, Inc.Creekside Creations, Inc.CTI Clinical Trial and Consulting ServicesCustom Cast Marble WorksDiversified Opthalmics, Inc.DJ Ango Western Taco*DocustarDowntekdunnhumby Ltd.DuracellDynamic IndustriesEBTH. Inc.EllanetEndevisEnerfab, Inc.Every Child SucceedsF+W MediaFab FermentsFares J Radel Funeral HomesFiberge*Fifty West Brewery/Brew PubFirst CareFirst Financial Bank, National As-sociationFirst StarFood Specialties Co.Forward Technologies, Inc.Frederick SteelFresh Sausage SpecialistsFrost Engineering, Inc.General Assembly, Inc.General Tool CompanyGKN Aerospace Cincinnati, Inc.Gold Medal Products Co.Gold Star Chili, Inc.Gus Holthaus Signs, Inc.H.B. Fuller Co.HabeggerHappy Chicks Bakery*Heavenly Feet Salon*Hero Gym*Hi-Bred Vintage*HodesH*

Howard Roark, LLCHumbert’s Meats*InfintechInfoTrustIntegrity Express LogisticsInTrust GroupIpsosIschemia Careitelligence, Inc.John Morrell Co.Joseph Clark Art Gallery*Jostin Construction, Inc.JTM Provisions Company, Inc.Kaiser Foods, Inc.Kao Brands CompanyKordenbrock Tool & Die Co., Inc.Krieg Offset PrintingKrimmer’s Italianette Pizza*KZF, Inc.Lange Precision, Inc.LaTerzaLiftra USA, Inc.LSI Industries, Inc.MADTREE Brewing CompanyMariner’s Landing MarinaManagement Performance Inter-nationalMane, Inc.Marde Couture*Mardi Gras on Madison*Mark Sweeney Buick GMC, Inc.MarketVision ResearchMaverick CorporationMedicountMeese Distributor’sMeierjohan Building GroupMelt*Messer Construction Co.Metalworking GroupMeyer Tool, Inc.MSCENextStep Networking, Inc.Nolte Precise ManufacturingNorth College Hill Bakery*Northside Grange Pet & Urban Farm Supply*Norwood Hardware & Supply Co.O Pie O*Object by Modology*

Participation

10Business Retention Report 2015

Participation

COMPANIESOhio Gastroenterology and Liver InstituteOhio National Financial ServicesP&C Metal PolishingPallet 23*Path Forward ITPatheon Pharmaceuticals, Inc.Paycor, Inc.Perfection GroupPerformance AbrasivesPerkins Restaurant*Peter Cremer North AmericaPicnic & Pantry*Pixels and DotsPolks Petals*PowerNet Global CommunicationsProKidsPromotion Execution PartnersPsychpros, Inc.RAM NationwideRed Balloon Cafe + Play*RelaDyneRichards Industries, Inc.Ridge Jewelers*RILCO Industrial Controls, Inc.RiversideRookwood PotteryRottinghaus Gallery*Roundtower Technologies

Ruth’s Parkside Café*Saks Fifth Avenue*Salvage Sisters Restoration and Interior Design, LLC*Sampson Light Industry, LLCSamuel Adams Brewery Com-pany, LtdSchaeferSFA Architects, Inc.SLK America, Inc.Smart IT Staffing, Inc.Springdale Ice Cream & BeverageSpun Bicycles*Standard TextileStandex Electronics/div. of Stan-dex Intl. Corp.Star Car Wash*Steinkamp Outfitting Company*Stelter & Brinck, Inc.Steve Heck’s Complete Lawn Care*Sun Chemical CorporationSunnyside Child Development CenterSurgical Appliance IndustriesSuzie Wong’s*Tap N Screw BreweryTechsoft Systems, Inc.Tema Systems

Teva PharmaceuticalsThe Bonbonerie*The E.W. Scripps Co.The Growler House*The NorthsiderThe WM. Lang & Sons Co.Tiffany & Co.*Tiny NeedleTrans AshTrattoria Roma*Triumph Energy Corp.Truepoint Wealth CounselTruStaff, Inc.TuesdayMag.comTurner Construction Co.Uncaged BirdUPS - SharonvilleUS Digital PartnersVantiv, Inc.VEGA Americas, Inc.Viox ServicesVXI Global Solutions, LLCW&G International, LLCWolf GroupWorld Pac PaperWornick CompanyWyoming Fine Arts CenterXtekZenith Logistics, Inc.

*Company not included in survey results because of being retail-based or falling outside of target strategy.

11Business Retention Report 2015

Participation

MEETINGS WERE CONDUCTED IN THESE COMMUNITIESBlue AshCheviotCincinnatiColerain TownshipColumbia TownshipEvendaleForest Park

HarrisonHarrison TownshipLocklandMariemontMontgomeryNorth BendNorth College Hill

ReadingSharonvilleSpringdaleSycamore TownshipSymmes TownshipWoodlawnWyoming

Thanks to all the communities for your participation and to REDI Cincinnati for contributing business retention information! A special thank you to Duke Energy and Hamilton County for helping to support the program.