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
Profile of Business RespondentsProfile of Business Respondents Slide 4
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
Profile of Business RespondentsProfile of Business Respondents Slide 5
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
Profile of Business RespondentsProfile of Business Respondents Slide 6
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
Profile of Business RespondentsProfile of Business Respondents Slide 7
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
Profile of Business RespondentsProfile of Business Respondents Slide 8
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
Personnel IssuesPersonnel Issues Slide 11
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
Personnel IssuesPersonnel Issues Slide 12
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
Personnel IssuesPersonnel Issues Slide 13
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
Personnel IssuesPersonnel Issues Slide 14
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
Business EnvironmentBusiness Environment Slide 17
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
Business EnvironmentBusiness Environment Slide 18
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
Business EnvironmentBusiness Environment Slide 19
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
Business EnvironmentBusiness Environment Slide 20
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
Growth IssuesGrowth Issues Slide 23
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
Growth IssuesGrowth Issues Slide 24
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
Growth IssuesGrowth Issues Slide 25