san fernando valley business needs survey the rose institute of state and local government claremont...

San Fernando Valley San Fernando Valley Business Needs SurveyBusiness Needs Survey

The Rose Institute of State and Local GovernmentThe Rose Institute of State and Local Government

Claremont McKenna CollegeClaremont McKenna College

March 28, 2002March 28, 2002

About the SurveyAbout the Survey

This survey is intended to gauge business This survey is intended to gauge business conditions and attitudes in the San Fernando conditions and attitudes in the San Fernando Valley.Valley.

A representative sample of 586 businesses A representative sample of 586 businesses (taken from a list of 5400 provided by the (taken from a list of 5400 provided by the Economic Alliance of San Fernando Valley) Economic Alliance of San Fernando Valley) responded to the survey.responded to the survey.

Most businesses responded to direct telephone Most businesses responded to direct telephone interviews, although in rare instances (less than interviews, although in rare instances (less than 10%), businesses chose to respond to a written 10%), businesses chose to respond to a written questionnaire.questionnaire.

Slide 2

Average Business Respondent in the Average Business Respondent in the San Fernando ValleySan Fernando Valley

• Founded in the early 1970sFounded in the early 1970s• Moved to its current location in the late Moved to its current location in the late

1980s1980s• Corporation involved in either the service Corporation involved in either the service

or manufacturing sectoror manufacturing sector• Leasing an office/commercial facilityLeasing an office/commercial facility• Headquartered in the San Fernando ValleyHeadquartered in the San Fernando Valley• Sells their products within the San Fernando Sells their products within the San Fernando

Valley and Southern CaliforniaValley and Southern California

Profile of Business RespondentsProfile of Business Respondents Slide 3

75%

10%

6%

5%

2%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Corporation

Sole Proprietor

LLC

Partnership

Division

Subsidiary

Franchise

Don't Know

Type of OrganizationType of Organization

•An overwhelming majority of businesses identified themselves as corporations


Primary Work of BusinessPrimary Work of Business

1%

1%

2%

4%

5%

5%

9%

14%

33%

35%

0% 5% 10% 15% 20% 25% 30% 35%

Other

International Trade

Transportation

Construction

Finance, Insurance, Real Estate

Retail

Entertainment

Wholesale Distribution

Manufacturing

Services

•Most businesses are involved in either the service or manufacturing sector


Which of the Following Best Describes Which of the Following Best Describes Your Facility?Your Facility?

54%

39%

6%

1%

0% 10% 20% 30% 40% 50% 60%

Office/Commercial

Industrial

Flex space

Don't know

• 60% of businesses that described their business as being industrial said that their productions lines were not being used to capacity

•54% of business were located in single-tenant facilities


Business Surveyed (By Area)Business Surveyed (By Area)

11%

2%

12%

4%

70%

0% 10% 20% 30% 40% 50% 60% 70%

Burbank

Calabasas

Glendale

San Fernando

Los Angeles

•Proportional to the sample provided by the Economic Alliance of SFV


Where Do You Sell Your Where Do You Sell Your Products/Services?Products/Services?

81%

78%

78%

74%

58%

57%

32%

28%

24%

21%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80%

San Fernando Valley

Ventura/LA County

Southern Cal.

City

Nationally

Northern Cal.

Europe

Asia

Mexico

Latin America

Other


Personnel IssuesPersonnel Issues

77% of businesses were able to recruit skilled labor 77% of businesses were able to recruit skilled labor locallylocally

Only 29% of businesses recruited nationally, and Only 29% of businesses recruited nationally, and 10% recruited internationally10% recruited internationally

Generally, businesses did not see the educational Generally, businesses did not see the educational system, a lack of affordable housing, or a long system, a lack of affordable housing, or a long commute as major deterrents to attracting workerscommute as major deterrents to attracting workers

Of those businesses who were unable to attract Of those businesses who were unable to attract skilled local labor, 49% cited a simple lack of the skilled local labor, 49% cited a simple lack of the availability of such laboravailability of such labor

Most employees live and work in the San Fernando Most employees live and work in the San Fernando ValleyValley

Slide 9

Average Number of Employees Who Are Full Average Number of Employees Who Are Full time, Part time, Temporary or on Lease Nowtime, Part time, Temporary or on Lease Now

34

9

18

40

5

10

15

20

25

30

35

40

Full Part Temp. On Lease

Personnel IssuesPersonnel Issues Slide 10

Average Number of Predicted Employees Who Will Average Number of Predicted Employees Who Will Be Full Time, Part Time, Temporary, or on Lease Be Full Time, Part Time, Temporary, or on Lease

Two Years From NowTwo Years From Now

38

1215

50

5

10

15

20

25

30

35

40

Full Part Temp. On Lease

•Businesses predict that 73% of their new employees will be skilled

•65% will have customized training


Deterrents to Attracting WorkersDeterrents to Attracting Workers

32%

29%

19%

0%

5%

10%

15%

20%

25%

30%

35%

A Long Commute Lack ofAffordable

Housing

Education System

•Most businesses did not see any of these issues as major deterrents to attracting workers


Why Were You Unable to Attract Skilled Labor?Why Were You Unable to Attract Skilled Labor?(Of those who said they could not find such labor locally)(Of those who said they could not find such labor locally)

16%

15%

5%

5%

9%

6%

49%

0% 10% 20% 30% 40% 50%

Lack of skilled workers

Nature of business

Commute/location

Job seeker apathy

Economic reasons

Other

Don't know/no response


What Do You Use to Recruit Employees?What Do You Use to Recruit Employees?

66%

33%

32%

30%

24%

10%

0% 10% 20% 30% 40% 50% 60% 70%

Print Classifieds

Internet Classifieds

Colleges &Universities

Private EmploymentAgencies

Public EmploymentAgencies

One Stops/WorkCenters

•Of the businesses that recruit from colleges and universities, 68% recruit from community colleges, 63% specifically from Cal State Northridge, and 62% from other universities


Business EnvironmentBusiness Environment

Despite demographic changes in the Valley, only 24% Despite demographic changes in the Valley, only 24% of businesses said they wanted more information about of businesses said they wanted more information about such trendssuch trends

Only 7% of businesses were aware of the Valley of the Only 7% of businesses were aware of the Valley of the Stars regional marketing program, but the 7% had a Stars regional marketing program, but the 7% had a very positive image of the programvery positive image of the program

Awareness of and membership in local agencies is also Awareness of and membership in local agencies is also lowlow

If given the choice again, 74% of businesses would If given the choice again, 74% of businesses would choose the San Fernando Valley as the location for their choose the San Fernando Valley as the location for their businessbusiness

Slide 15

DemographicsDemographics

Only 8% said ethnic change was an Only 8% said ethnic change was an important demographic trend for their important demographic trend for their companycompany

Of the 18% of businesses using demographic Of the 18% of businesses using demographic data to make business decisions, 58% use it data to make business decisions, 58% use it for marketing and sales decisions, and 18% for marketing and sales decisions, and 18% obtain their data from various government obtain their data from various government agenciesagencies

Business EnvironmentBusiness Environment Slide 16

Importance of Services or Information From Importance of Services or Information From Local Government and InstitutionsLocal Government and Institutions

0 10 20 30 40 50 60 70 80 90 100

City Services

Site Loc. Asst.

Public Safety

Planning Process

Bus. Asst. Support

Workforce training

Im porting

Exporting

Utilities

Capital Availability

Critically Important Very Important Important Somewhat Important Not Important Don't Know


Familiarity With Local AgenciesFamiliarity With Local Agencies

73%

28%

25%

25%

22%

21%

20%

16%

15%

14%

10%

6%

4%

0% 10% 20% 30% 40% 50% 60% 70%

Local Chamber of Commerce

United Chambers of Commerce

Economic Alliance of SFV

LA County Econ Development Corp

Valley Econ Development Ctr

Small Business Development Ctr

SFV Conventions & Visitors Bureau

Southland Regional Assoc. of Realtors

Small Manufacturers Assoc. of CA

One Stop Employment Center

Valley Industry & Commerce Assoc.

Valley International Trade Assoc.

Valley Leadership Institute

•Of the 73% of businesses who were familiar with their Local Chamber of Commerce, only 26% were members


If You Were Choosing a Location For Your Business, If You Were Choosing a Location For Your Business, Would You Choose the San Fernando Valley?Would You Choose the San Fernando Valley?

16%

10%

74%

YesNoDon't Know


Why Would You Choose the Why Would You Choose the San Fernando Valley For Your Business?San Fernando Valley For Your Business?

23%

18%

9%

9%

8%

8%

5%

5%

5%

4%

2%

4%

0% 5% 10% 15% 20% 25%

Central location/Accessibility

Close to home/Live here

Like it/Nice

Customer base

Employee base

Established/Already here/Familiarity

Cost effective/Affordability

Stability/Growth

Hub of industry/business

Demographics

Other

Don’t know/No response


Growth IssuesGrowth Issues

Most businesses (54%) are not currently expandingMost businesses (54%) are not currently expanding 61% of businesses are not considering expansion, 61% of businesses are not considering expansion,

and 78% are not considering a relocationand 78% are not considering a relocation 55% of businesses said their facility is currently 55% of businesses said their facility is currently

being used to capacitybeing used to capacity Of the businesses who are planning to expand or Of the businesses who are planning to expand or

relocate, 44% cited a lack of space as their reasonrelocate, 44% cited a lack of space as their reason

Slide 21

Is Your Business Currently Expanding?Is Your Business Currently Expanding?

55%

43%

2%

YesNoDon't know

Growth IssuesGrowth Issues Slide 22

Deterrents to ExpansionDeterrents to Expansion

36%

35%

31%

26%

25%

23%

21%

18%

12%

8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Facilities Cost

Cost of Capital

Business Taxes

Workforce Quality

Workforce Availability

Environmental Regulations

Land Availability

Cost of Electric Energy

Cost of Natural Gas

Water Supply

• Most businesses did not see any of these factors as deterrents to expansion


Significant Investments in Significant Investments in Equipment or Capital ImprovementsEquipment or Capital Improvements

62%

34%

54%

31%

15%

3%

0% 10% 20% 30% 40% 50% 60%

Yes

No

DK

Within the past 3 years

Within the next 3 years

•72% of the companies who previously made significant investments, plan to do so again within the next 3 years


September 11 EffectsSeptember 11 Effects

46%

31%

29%

27%

18%

12%

11%

5%

3%

5%

18%

0% 10% 20% 30% 40% 50%

Decrease in sales/production

Decrease in spending

Decrease in travel

Layoffs

Increase in security

Expansion

Increase in sales/production

Increase in spending

Increase in travel

No change

Don't know


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