San Fernando Valley Business Enhancement Survey

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


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%


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


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)


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


an Fernando Valley

Types of Organizations Types of Organizations RepresentedRepresented

Types of Organizations Responding

Corporation66%

Partnership7%

Other5%

Unknown2%

Sole Proprietor-

ship20%


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.


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


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


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


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


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


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


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


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.


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


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


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


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


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.


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%


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


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.


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


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


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


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.


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%


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.


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.


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.


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.


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.

San Fernando Valley Business Enhancement Survey

Documents

Transcript of San Fernando Valley Business Enhancement Survey