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San Fernando Valley Business Enhancement Survey. Presented by Douglas H. Svensson, AICP Managing Principal, Applied Development Economics. About the Survey. 9,898 surveys sent. 656 received and tabulated. - PowerPoint PPT Presentation
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San Fernando ValleySan Fernando Valley
Business Business EnhancementEnhancement
SurveySurvey
San Fernando ValleySan Fernando Valley
Business Business EnhancementEnhancement
SurveySurvey
Presented byPresented byDouglas H. Svensson, AICPDouglas H. Svensson, AICP
Managing Principal, Applied Development EconomicsManaging Principal, Applied Development Economics
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
9,898 surveys sent. 656 received and tabulated. 35,500 employees, or about four
percent of the total employment in the San Fernando Valley, represented in the survey.
9,898 surveys sent. 656 received and tabulated. 35,500 employees, or about four
percent of the total employment in the San Fernando Valley, represented in the survey.
About the SurveyAbout the Survey
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Survey Sample and Survey Sample and RespondentsRespondents
6%
10%
4%
17%
9%
39%
2%
12%
2%
0% 25% 50%
Construction
Finance, Insurance, Real Estate
Entertainment Services
Health, Prof., Educ. Services
Other Services
Manufacturing
Transport, Comm., Utilities
Retail Trade
Wholesale Trade
Unknown
Percent of Businesses Responding
0%
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Survey GeographySurvey Geography
14%
1%
12%
68%
4%
0% 20% 40% 60% 80%
Burbank
Calabasas
Glendale
Los Angeles
San Fernando
Location of Businesses Responding
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Size of FirmsSize of Firms
36%
19%
14%
11%
6%
3%
1%
10%
0% 10% 20% 30% 40%
0 to 9
10 to 24
25 to 49
50 to 99
100 to 249
250 to 999
1,000 and Over
Unknown
Size of Businesses Responding(# of full-time employees)
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Years In BusinessYears In Business
1972
1984
1974
1979
1981
1979
1985
1980
1983
1974
1978
1978
Aerospace and heavymanufacturing
Apparel manufacturing
High-tech manufacturing
Other manufacturing
Entertainment services
Health, social, professional,educ. services
Other services
Construction
Finance, insurance, real estate
Transportation, communication
Wholesale trade
Retail trade
Year Founded
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Types of Organizations Types of Organizations RepresentedRepresented
Types of Organizations Responding
Corporation66%
Partnership7%
Other5%
Unknown2%
Sole Proprietor-
ship20%
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Strengths Identified In Strengths Identified In SurveySurvey
1. Growing economic base.
2. Strong indicators of private investment.
3. Good transportation access and visibility.
4. Quality labor force.
1. Growing economic base.
2. Strong indicators of private investment.
3. Good transportation access and visibility.
4. Quality labor force.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
82 percent of the responding firms see their own industry in a growth period or stable.
More of the construction, finance and real estate, and transportation firms tend to see their industry as growing.
Entertainment, manufacturing, and wholesale firms tend to see their industry in a period of stability.
Only 14 percent of firms responding feel that their industry is in a downturn.
82 percent of the responding firms see their own industry in a growth period or stable.
More of the construction, finance and real estate, and transportation firms tend to see their industry as growing.
Entertainment, manufacturing, and wholesale firms tend to see their industry in a period of stability.
Only 14 percent of firms responding feel that their industry is in a downturn.
Strength 1: Growing Strength 1: Growing Economic BaseEconomic Base
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Overall health of the economy. Health of the aerospace industry. Other concerns include advances in
technology, policies regarding trade agreements, population growth, and demographic changes.
Overall health of the economy. Health of the aerospace industry. Other concerns include advances in
technology, policies regarding trade agreements, population growth, and demographic changes.
Strength 1: Significant Strength 1: Significant Growth FactorsGrowth Factors
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Nearly half of the firms expect to hire in the next two years.
Strongest expected growth is with financial and real estate firms, 60 percent of whom plan employment increases.
More than half of manufacturers and wholesalers expect employment growth in the next two years.
In the entertainment industry, about one-third expect employment growth.
Nearly half of the firms expect to hire in the next two years.
Strongest expected growth is with financial and real estate firms, 60 percent of whom plan employment increases.
More than half of manufacturers and wholesalers expect employment growth in the next two years.
In the entertainment industry, about one-third expect employment growth.
Strength 1: Employment Strength 1: Employment GrowthGrowth
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Two-thirds of the respondents have invested in new facilities and equipment over the past three years.
About 51 percent of the respondents expect to make capital improvements over the next three years.
Two-thirds of the respondents have invested in new facilities and equipment over the past three years.
About 51 percent of the respondents expect to make capital improvements over the next three years.
Strength 2: Business Strength 2: Business InvestmentInvestment
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Centrality and access to transportation.
Visibility. Access to customers. Proximity to owner’s
residence.
Centrality and access to transportation.
Visibility. Access to customers. Proximity to owner’s
residence.
Strength 3: Locational Strength 3: Locational AdvantagesAdvantages
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
About 78 percent of respondents report they can recruit the skilled labor force they need locally.
More than 70 percent of firms indicated that commute time and housing affordability and availability are not issues in attracting workers.
75 percent of employees are reported to live in the area.
About 78 percent of respondents report they can recruit the skilled labor force they need locally.
More than 70 percent of firms indicated that commute time and housing affordability and availability are not issues in attracting workers.
75 percent of employees are reported to live in the area.
Strength 4: Quality Labor Strength 4: Quality Labor ForceForce
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
About 70 percent of responding firms would locate in the San Fernando Valley again if given the choice today. Key issue: Customers, suppliers,
and homes are local. Other issues: Transportation,
infrastructure, and economic opportunities.
About 70 percent of responding firms would locate in the San Fernando Valley again if given the choice today. Key issue: Customers, suppliers,
and homes are local. Other issues: Transportation,
infrastructure, and economic opportunities.
Strengths: Overall Strengths: Overall AssessmentAssessment
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Weaknesses Identified In Weaknesses Identified In SurveySurvey
1. Lack of building space for expansion.
2. Lack of parking.
3. Concerns about quality of life.
4. Low awareness of economic development programs and resources.
1. Lack of building space for expansion.
2. Lack of parking.
3. Concerns about quality of life.
4. Low awareness of economic development programs and resources.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Weaknesses 1 and 2: Lack Weaknesses 1 and 2: Lack of Building Space and of Building Space and
ParkingParking
25%
10%
5%
0% 10% 20% 30%
ReachingCustomers/ Moving
Supplies
Size/ Characteristicsof Space
Parking
Locational Weaknesses Identified by Respondents
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
While perceptions of the valley’s image are generally positive, the region’s suburban character was cited as a limiting factor.
Other quality of life issues include the crime rate and traffic congestion.
The impact of these perceptions is on the interest of entrepreneurs locating their businesses and themselves in the valley.
While perceptions of the valley’s image are generally positive, the region’s suburban character was cited as a limiting factor.
Other quality of life issues include the crime rate and traffic congestion.
The impact of these perceptions is on the interest of entrepreneurs locating their businesses and themselves in the valley.
Weakness 3: Quality of Weakness 3: Quality of LifeLife
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Weakness 4: Awareness of Weakness 4: Awareness of EconomicEconomic
Development OrganizationsDevelopment Organizations19%
41%
16%
22%
8%
15%
16%
23%
21%
8%
16%
Economic Alliance of the SanFernando Valley
United Chambers of Commerce
Valley Industry and CommerceAssoc.
Valley Economic DevelopmentCenter
Valley International TradeAssociation
Conference and Visitors Bureau
Small Manufacturers Assoc. ofCalif.
Southland Regional Association ofRealtors
Small Business DevelopmentCenter
Valley Leadership Institute
Los Angeles County EDC
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
About 30 percent of responding firms would not locate in the San Fernando Valley again if given the choice. Key issues include Taxes. Fees. Permits. Business climate. Other issues include statewide
regulations, workers compensation, and state income taxes.
About 30 percent of responding firms would not locate in the San Fernando Valley again if given the choice. Key issues include Taxes. Fees. Permits. Business climate. Other issues include statewide
regulations, workers compensation, and state income taxes.
Weaknesses: Overall Weaknesses: Overall AssessmentAssessment
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Opportunities Identified Opportunities Identified In SurveyIn Survey
1. Employment growth and workforce training.
2. Expansion and relocation.
3. Business information and services network.
1. Employment growth and workforce training.
2. Expansion and relocation.
3. Business information and services network.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Opportunity 1: Training Opportunity 1: Training NeedsNeeds
Expected Skill and Training Requirements for New Jobs
Skilled38%
Unskilled21%
Specialized Training
14%
Technical Training
9%
College Graduate
18%
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Opportunity 1: Sources UsedOpportunity 1: Sources UsedTo Hire EmployeesTo Hire Employees
16%
63%
17%
15%
12%
13%
15%
10%
0% 20% 40% 60% 80%
Internet Classified
Print Classified
Recruiting Agencies
Private Employment Agencies
Public Employment Agencies
CSU Northridge
Community Colleges
Other Universities
Sources From Which New Employees Are Typically Hired
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Most expansions and relocations are for larger spaces, accommodating new products, or moving specific activities.
Other reasons for expansions or relocations include reduced costs, and changing labor force.
Most expansions and relocations are for larger spaces, accommodating new products, or moving specific activities.
Other reasons for expansions or relocations include reduced costs, and changing labor force.
Opportunity 2: Expansion Opportunity 2: Expansion and Relocationand Relocation
Nearly 40 percent of respondents plan expansion or relocation.
Nearly 40 percent of respondents plan expansion or relocation.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Opportunity 2: Expansion Opportunity 2: Expansion and Relocation in the San and Relocation in the San
Fernando ValleyFernando Valley
80%
12%
5%
0% 25% 50% 75% 100%
Stay In San Fernando Valley
Move Elsewhere In SouthernCalif.
Move Out of California
Anticipated Location For FutureExpansion/ Relocation
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
1.6
1.7
2.2
2.5
2.6
2.6
2.9
3.0
3.2
3.3
1 2 3 4 5
Utilities
Public Safety
City Services
Capital Availability
Planning Process
Business Assistance Support
Workforce Training
Site Location Assistance
Exporting
Importing
Services or Information From Local Governments and Institutions That Would Be Important
Opportunity 3: Information Opportunity 3: Information Needs From Local Needs From Local Governments and Governments and
InstitutionsInstitutionsScale1=not at all2=somewhat important3=important4=very important5=critical
Importantto
critical
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Opportunity 3: Requests for Opportunity 3: Requests for Information From Economic Information From Economic Development OrganizationsDevelopment Organizations
27%
17%
16%
17%
14%
11%
16%
7%
19%
7%
18%
Economic Alliance
United Chambers of Commerce
Valley Industry and CommerceAssoc.
Valley Economic DevelopmentCenter
Valley International TradeAssociation
Conference and Visitors Bureau
Small Manufacturers Assoc. ofCalif.
Southland Regional Association ofRealtors
Small Business DevelopmentCenter
Valley Leadership Institute
Los Angeles County EDC
Respondents Requesting Information from a Specific Agency
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threats Identified In Threats Identified In SurveySurvey
1. Economic downturn.
2. Traffic congestion.
3. Housing costs.
4. Lack of skilled workers.
5. Building space demands.
1. Economic downturn.
2. Traffic congestion.
3. Housing costs.
4. Lack of skilled workers.
5. Building space demands.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threat 1: Economic Threat 1: Economic DownturnDownturn The first threat is that 14 percent of
the firms see their industry in a downturn. Manufacturers lead this perception with 21 percent, followed by entertainment at 15 percent and financial, insurance, real estate firms at 11 percent.
Manufacturers with this view includedAerospace and heavy manufacturing: 28%Apparel: 33%Hi-tech: 21%Other manufacturing: 11%
The first threat is that 14 percent of the firms see their industry in a downturn. Manufacturers lead this perception with 21 percent, followed by entertainment at 15 percent and financial, insurance, real estate firms at 11 percent.
Manufacturers with this view includedAerospace and heavy manufacturing: 28%Apparel: 33%Hi-tech: 21%Other manufacturing: 11%
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threat 2: Traffic Threat 2: Traffic CongestionCongestion
28 percent see the commute as an adverse factor in recruiting employees. Only 20 percent of small firms said this, but 40 to 50 percent of firms ranging in size from 50 employees up to 1,000 said this is a problem.
There is some variation by city. About 40 percent of Glendale firms cited the commute as a problem, but only 22 percent of firms in Burbank. The other cities were all at or below the average of 28 percent.
28 percent see the commute as an adverse factor in recruiting employees. Only 20 percent of small firms said this, but 40 to 50 percent of firms ranging in size from 50 employees up to 1,000 said this is a problem.
There is some variation by city. About 40 percent of Glendale firms cited the commute as a problem, but only 22 percent of firms in Burbank. The other cities were all at or below the average of 28 percent.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threat 3: Housing CostsThreat 3: Housing Costs 21 percent of respondents see the
lack of affordable housing as a deterrent.
This was true for 16 percent of small firms but 30 to 40 percent of firms between 100 and 1,000 employees.
There was much less variation by location for this question than for the commute issue. The responses ranged from 25 percent in Glendale who said housing issues affected their recruiting to 19 percent in Burbank.
21 percent of respondents see the lack of affordable housing as a deterrent.
This was true for 16 percent of small firms but 30 to 40 percent of firms between 100 and 1,000 employees.
There was much less variation by location for this question than for the commute issue. The responses ranged from 25 percent in Glendale who said housing issues affected their recruiting to 19 percent in Burbank.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threat 4: Lack of Skilled Threat 4: Lack of Skilled WorkersWorkers
22 percent find of respondents find themselves unable to recruit skilled workers locally.
The industries that said this most often were apparel, construction and business services.
High-tech and aerospace industries were at 23 percent and 25 percent, respectively.
Only 11 percent of other manufacturing firms see the lack of skilled workers as a threat.
22 percent find of respondents find themselves unable to recruit skilled workers locally.
The industries that said this most often were apparel, construction and business services.
High-tech and aerospace industries were at 23 percent and 25 percent, respectively.
Only 11 percent of other manufacturing firms see the lack of skilled workers as a threat.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
Threat 5: Building Space Threat 5: Building Space DemandsDemands Half of the firms are leasing their space,
which equals one-third of the total sample, will have their leases expire in 2002. For many, this is a key time to move if they are going to.
Overall, nearly one-quarter of firms who said their facility or production lines are currently at capacity would not relocate in SFV.
There was an overwhelming desire for more space from the respondents. The lack of space or the inability to expand their present facilities was the most often cited barrier to expansion.
Lack of parking ranked second and was also frequently cited among the overall disadvantages of the valley.
Half of the firms are leasing their space, which equals one-third of the total sample, will have their leases expire in 2002. For many, this is a key time to move if they are going to.
Overall, nearly one-quarter of firms who said their facility or production lines are currently at capacity would not relocate in SFV.
There was an overwhelming desire for more space from the respondents. The lack of space or the inability to expand their present facilities was the most often cited barrier to expansion.
Lack of parking ranked second and was also frequently cited among the overall disadvantages of the valley.
S Business Enhancement SurveyPreliminary Results
an Fernando Valley
ConclusionsConclusionsThe San Fernando Valley is in a period of significant opportunity for economic development. Many firms plan to grow, although some have concerns about their ability to find the space they need, and many are unaware of the resources available to them that can help their business expand.
City and regional business retention and expansion services need to move forward.
Expect continued demand for more building space, and services such as permit processing, zoning, and use adjustments.
Businesses are also interested in utility services and financing to support expansion plans.
Employment and training agencies can help businesses find qualified workers, provided that outreach efforts are made.
The San Fernando Valley economy is very healthy and needs room to grow.
The San Fernando Valley is in a period of significant opportunity for economic development. Many firms plan to grow, although some have concerns about their ability to find the space they need, and many are unaware of the resources available to them that can help their business expand.
City and regional business retention and expansion services need to move forward.
Expect continued demand for more building space, and services such as permit processing, zoning, and use adjustments.
Businesses are also interested in utility services and financing to support expansion plans.
Employment and training agencies can help businesses find qualified workers, provided that outreach efforts are made.
The San Fernando Valley economy is very healthy and needs room to grow.