KENAI PENINSULA BUSINESS ANALYSIS SURVEY

2013

Who Are We?

The Kenai Peninsula Economic Development District, Inc. (KPEDD) was established in 1988. KPEDD is a non-profit organization that does not compete, replace or displace any other organization’s mission or funding. KPEDD works cooperatively with state and city governments, non-profits and for profit businesses to increase the economic viability of the Kenai Peninsula. KPEDD supports a business innovation center where young entrepreneurial companies are cultivated. Through educational programs, and information compiling, KPEDD strives to help businesses make informed short and long range decisions regarding the economic environment surrounding themselves and their community.

Purpose and Methodology

Determine Kenai Peninsula business climate and trends, identify barriers to economic development and business growth and foster future programs to support and create economic development

Third borough-wide business analysis survey October 15, 2013 – February 15, 2014

Online responses Mail-in surveys Chamber newsletters and luncheons – Kenai, Soldotna,

Seward, Homer, Cooper Landing Information will be used in the development of the

Comprehensive Economic Development Strategy (CEDS) issued annually

Respondent Profile

166 respondents 18 communities 13 industries48%

36%

13%

2%

Number of Respondents by Peninsula Region

Central SouthernEastern

Respondents by Industry

Tourism/Hospitality Professional Services

Wholesale/Retail Trade

Real Estate Health Care Non-Profit

Government Utilities Construction/Maintenance

Personal Services Fishing/Seafood Mining/Oil

Other

2014 Economic Expectations for Kenai Peninsula & Alaska

Better

No Change

Worse

0 20 40 60 80 100 120

112

38

16

111

39

16

2014 Economic Expectations

AlaskaKenai Peninsula

2013 Overall Business

64%

17%

19%

Percentage of Businesses that Ex-perienced an Increase or Decrease

in Overall Business in 2013

Increase in BusinessDecrease in BusinessUnchanged

2013 Capital Expenditures

0 10 20 30 40 50 60 70 80 90 100

99

24

43

Number of Businesses that Expe-rienced an Increase or Decrease in Capital Expenditures in 2013

UnchangedDecrease in Cap-ital ExpendituresIncrease in Cap-ital Expendi-tures

2013 Gross Sales

0 10 20 30 40 50 60 70

66

44

41

13

2

Businesses Gross Sales for 2013

Not Applicable

Over $5,000,000

$500,000 to $5,000,000

$100,000 to $500,000

Under $100,000

Business Conducted Outside theKenai Peninsula 2013

0

10

20

30

40

50

60

70

80

90

100

92

45

29

Percentage of Business Conducted Outside the

Kenai Peninsula For 2013

NoneLess than 25%25% or above

Number Full-Time Employees by Industry - 2013

INDUSTRY 1-20 21-50 51-100

Over 100

Self-Employed

Construction/Maintenance 11 0 0 0 0

Fishing/Seafood 7 0 0 0 1

Government 2 1 0 1 0

HealthCare 3 0 0 1 0

Mining/Oil 3 0 0 0 0

Non-Profit 12 1 0 2 0

Other 19 1 1 1 2

Personal Services 2 0 0 0 0

Professional Services 17 0 0 0 1

Real Estate 1 1 0 0 0

Tourism/Hospitality 43 1 0 0 2

Utilities 1 1 0 0 0

Wholesale/Retail Trade 26 0 0 0 1

Number Part-Time Employees by Industry - 2013

INDUSTRY 1-20 21-50 51-100

Over 100

Self-Employed

Construction/Maintenance 10 1 0 0 0

Fishing/Seafood 5 1 0 2 0

Government 3 1 0 0 0

HealthCare 3 0 0 1 0

Mining/Oil 3 0 0 0 0

Non-Profit 12 1 0 2 0

Other 23 0 0 1 0

Personal Services 2 0 0 0 0

Professional Services 18 0 0 0 0

Real Estate 2 0 0 0 0

Tourism/Hospitality 44 0 0 1 1

Utilities 2 0 0 0 0

Wholesale/Retail Trade 25 1 0 0 0

0

2

4

6

8

10

12

21 2

14 6 6

3

1 32

2

6

1

Non-Resident Employee Hires by Industry

Over 11%10% or Less

Non-Resident Hires in 2013

75%

15%

10%

Percentage of Non-Resident Employees Hired

More than 11%10% or lessNone

2014 Employment Expectations

38%

10%

48%

3%2%

Employment Expectations for 2014

Increase in em-ployment between 0% and 10%

Increase in em-ployment over 10%

No change in employment

Decrease in em-ployment between 0% and 10%

Decrease in em-ployment over 10%

Importance of Projects & Industries

Project / Industry Very Important

Important/Somewhat Important

Not Important

Tourism 136 29 1

Commercial Fishing 125 38 3

Workforce Training 123 41 2

Sport Fishing 122 41 3

Natural Gas Pipeline from N. Slope to Cook Inlet

118 40 8

Upgrade Seward & Sterling Highways

107 47 12

Cook Inlet Resource Development 98 55 13

Subsistence Fishing 94 56 16

Mount Spur Geothermal 81 59 26

Pebble Mine 62 32 72

Coal Mining & Export 60 58 48

Areas of Economic Focus

27%

26%19%

12%

11%4%

Areas of Economic Focus Selected by Respondents for the Kenai Peninsula

TansportationNatural Re-sources AvailabilityWorkforce TrainingLand Use PlanningParks and Recreation FacilitiesHousing

Note: Respondents could choose more than one selection.

Opportunities for Growth

23%

11%

7%

7%6%6%

5%

5%

4%

4%

5%

4%

2%2%

2%2%1%1%1%

Greatest Opportunities for Economic Development Selected by Respon-

dentsAlternative Tourism (Year Round, Eco,Off season (winter etc.)Development of Natural Resources (Tidal, Renewable, Wind, Etc.)FishingDecrease/Enforcement of Fed, State, Bourough & City RegulationsIncrease Marine IndustryCoal/Minerals MiningIncrease RecreationEducation (Expand College Campuses, Voca-tional, Support, Etc.)Development of Key PortsInternet Based Business (IT, Software Apps, Advertising, Etc.)Health Care Services (Elderly, Personal Care, Localized)Increase/Support Agriculture

2013 Barriers to Business Growth

National Economy

23%

Cost of Com-mercial/ Lease Rental Prop-

erty19%

Federal Regulations21%

Workers Compen-sation In-surance

19%

Health In-surance

18%

Top 5 Selected Significant Barri-ers to Business Growth

Top Business Service

31%

26%

18%

11%

11%3%

2013 Top Business Service Utilization if Available

Computer, Internet, and/or Technical Assistance

Business Planning Assistance/Education

Market Research Assistance

Business Accounting Assistance/Education

Tax Preparation Assistance/Educa-tion

Procurement As-sistance

Internet Access

67%5%

4%

14%

2%6%

2013 Type of Business Internet Access

DSLCable ModemDedicated ServicesFixed WirelessFiberSatellite

Next Steps & Action Items

Share information around the Kenai Peninsula Cities, Chambers of Commerce, Respondents, on

the Web Assist new businesses establish on the Kenai

Peninsula Work with communities for growth and business

development Shape goals, visions, and objectives for the Kenai

Peninsula Economic District, Inc. Incorporate into 2014 Borough

Comprehensive Economic Development Strategy (CEDS)

2014 Follow Up Survey