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Home My WebLink About2010 04 26 Regular 603 Results Of A Business Retention Survey COMMISSION AGENDA Consent ITEM 603 Informational Public Hearing Regular X April 26, 2010 MGR. /DEPT. IS _ Regular Meeting • uthorization REQUEST: Land Design Innovations, Inc. (City consultant) is presenting the results of a Business Retention Survey conducted for approximately one (1) month beginning in early February 2010. SYNOPSIS: As part of their contractual economic development efforts for the City, Land Design Innovations, in concert with City staff, conducted a month -long business retention survey. The survey was initiated in early February 2010 and targeted all businesses within the City of Winter Springs holding a business tax receipt. The purpose of the survey was to identify the issues and challenges facing the businesses in Winter Springs. CONSIDERATIONS: Surveys were mailed to all Winter Springs businesses holding a business tax receipt and the survey was made available on the City's website to provide ease of response to the survey. Surveys were sent to 1,350 local businesses and a total of 117 businesses responded to the survey, representing an 8.7% response rate. The questions asked and the responses received are detailed in the attached Business Survey Results document. There are four (4) major recommendations based on the surveyed participant's responses. These recommendations are detailed on page 11 of the survey results document. FISCAL IMPACT: The cost to mail the surveys to the businesses in Winter Springs was approximately $595. COMMUNICATION EFFORTS: The survey mail -out was introduced at two Oviedo - Winter Springs Chamber of Commerce luncheons. In addition, survey mail -out press releases were sent to the Seminole Chronicle, the Seminole Voice, the Orlando Sentinel, the Orlando Business Journal, and the Sanford Herald. The survey was also posted on the Oviedo - Winter Springs Chamber and the Seminole County Regional Chamber of Commerce websites. RECOMMENDATIONS: Staff recommends that the City Commission receive the information and recommendations contained in the Business Survey Results document and provide any direction they deem appropriate. REGULAR MEETING - APRIL 26, 2010 REGULAR AGENDA ITEM "603" PAGE 2 OF 2 ATTACHMENTS: "A" — Winter Springs Business Survey Results document CITY OF WINTER SPRINGS BUSINESS SURVEY RESULTS April 2010 Prepared By: LANE) DESIGN INNOVATIONS 1770 Fennell Street. Suite 200 Maitland. Florida 32751 Phone: 'f07- 975 -1273 Fax. 'M7475 -127$ www.landbiz.com Table of Contents Executive Summary 1 Analysis 2 -6 Data Summary 7 -10 Recommendations 11 Appendix 12 -13 City of Winter Springs, Economic Development Department Business Retention Survey Result Summary i Executive Summary The purpose of this document is to provide the results of the Business Retention Survey. In early February 2010, the City of Winter Springs and the City of Oviedo released a business retention survey. The surveys were mailed to businesses within their respective municipality that hold an active business tax receipt. The City of Winter Springs made the survey available on their website for ease of access. The web survey allowed the respondent to submit their responses directly to the City online. The survey included several questions pertinent to business operations and potential assistance needed from the City's Economic Development team. A summary of each question is provided in the Data Summary section of this report. The purpose of the Business Retention Survey is to help the City identify challenges and issues affecting local businesses. The survey will assist the City to develop a business retention program. More specific direction for the types of programs and services to assist local business will be generated from the responses to this survey. Surveys were sent to 1,350 local business owners that currently have an active business tax receipt in the City. A total of 117 businesses responded to the survey, equating to an 8.7 percent response rate. Typical mailout survey response rates normally range from 5% to 10 %. The surveyed participants were asked what type of resources or assistance they require to attract new business. Of the 55 survey participants that responded to this question, 21 participants responded that additional low cost community advertising would help attract more business to their location. The next prevailing response was the need to relax the City's sign regulations. 9 of the 55 respondents to this question referenced signage as a need to attract new business. 6 of the 55 respondents indicated that funding would help attract new business to their location. The following top three recommendations were identified from the survey responses: 1) Evaluate the opportunity to establish an incentive program for the relocation or expansion of local businesses; 2) evaluate the potential for relaxing the City's sign regulations; 3) explore a partnership with the Seminole Regional and Oviedo Winter Spring Chambers of Commerce in providing a community publication with low cost advertising options. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 1 Analysis This section of the report includes analysis of the responses to the survey. Not all respondents answered all questions. Response Rate Of the 1,350 surveys sent via mail, 117 surveys were filled out and sent back to the City (either though email or website). The response rate of 8.7% is slightly lower than the 10% response rate goal. Typical mailout survey response rates range from 5% to 10 %. Question 9 Contact Information Each respondent was asked to supply contact information. Question 2: Industry Type The top 5 industries according to the surveyed respondents are Professional Services (Attorney, Doctor, Engineer, etc.), Other, Retail, Finance & Insurance and Hospitality /Personal Services. Respondents that answered other and specified their type of business were predominantly personal services oriented industries. 30 a i xe 25 ` 7 20 aw 15 ✓r 10 5 O O J _ l0 N � w L ld O _ 4. H l0 O a 0 U 0 2 O Source: Winter Springs Business Survey, 2010. SSSS Business Retention Survey Result Summary 2 Question 3: Brief Description of Business Purpose Each respondent provided a description of their company. Question 4: Hoiv many employees do you currently have? The average number of employees from respondent companies is 6.5— approximately 6 to 7 —which includes both full time and part time employees. The range of full time employees for a Winter Springs business that responded to the survey was between 1 and 116 employees and between 1 to 20 part time employees. Of the 117 businesses that responded to the survey, a total of 761 jobs (577 full time and 184 part time) were tallied. Question S: Have you reduced staff or the number of hours employees work as a result of the local economic conditions? Over half (57.26 %) of the respondents answered no to having to reduce staff numbers or employee hours. 42.74% of the respondents replied yes to the question of having to reduce staff due to local economic conditions. Almost sixty percent of the businesses surveyed have not had to reduce staffing, which is good news when compared to other communities in the state and nation. A second part to this question asked the respondent to provide how many people or hours were reduced, if they responded yes to the prior question. On average businesses that had to reduce staff let go approximately an average of 5 people or an average reduction of 37 hours. Local business owners indicated a total of 111 lost positions in the past year. Question 6: Have your revenues decreased in the last four quarters? Participants were asked if they have experienced a decrease in revenue over the last four quarters. 58% of the respondents have experienced a decrease in revenue and 33% have not. Respondents who answered yes to the previous question were asked to provide the percentage of the revenue decrease. Sixty-eight of the 107 respondents that selected yes to this question revealed that their revenues have decreased on average by approximately 31 %. The responses ranged between 8% and 90% decrease of revenue. Question 7: What percentage of your employees live in.... This question asked each business to provide the location of where their employees live. The choices included Winter Springs, Oviedo or Seminole County. Respondents were asked to provide the percentage of employees that live in those City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 3 locations. The following are the averages of percentages of where employees of Winter Springs businesses live. Winter Springs 47.09% Oviedo 11.77% Seminole County 52.32% The respondents indicated that nearly sixty percent of their employees live in either Winter Springs or Oviedo, which indicates that local residents make up a significant amount of the employment base. Question 8: In what ways have the local economic conditions impacted your business operations the most? The majority of the responses focused on the lack of customers and reduced spending (cautious spending). Others responded that sales have tapered and overhead costs have increased (rent, supplies and incidentals). Question 9: Would you like additional information on any of the topics listed below? The survey recipients were asked to indicate which topics or programs they would like to learn about. The top 5 responses are included the table and chart below. Rank Topic Responses Percentage 1. Federal & State Programs 25 21.37% 2. Access to Capital Resources 16 13.68% 3. Demographic / Statistical Information 10 8.55% 3. Job Creation / Retention 10 8.55% 4. Business Counseling 9 7.69% 5. Permitting Assistance 5 4.27% Source: Winter Springs Business Survey, 2010. Two items received the same number of votes. Demographic / Statistical Information and Job Creation / Retention each received 10 selections. Some survey respondents selected multiple topics. Twenty-five of the 36 surveyed respondents that replied to this question selected multiple topics. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 4 30.0)% p n r R wimotw, 25.00% d 20.00% 4- 4V3 '� 41 15 00% K44;0 sue• o 10.00% A sa 5.00 % 0 m m E E o '' N U U C co o ( d n m H u, S u) U m c c Q t - N C C 0 f0 ° ') 'S3 N U O (C O C L A) U 0.) O CD w Source: Winter Springs Business Survey, 2010. Question 10: Have you considered restructuring your operation or methodology of conducting business to attract a different market or increase yor market potential? Sixty -three (54 %) respondents indicated that they have not restructured their business to attract a new market. On the other hand, 43 (37 %) respondents indicated that they have restructured their business to attract a different market. Question 11: What resources or assistance would you require to attract neiv business? This open -ended question allowed the surveyed participants to provide more detail regarding the resources or assistance they require to attract new business. Low cost local advertising was the prevailing theme of assistance requested by the respondents. Of the participants that responded to this question, that the most often -cited need is was for marketing or advertising assistance to help businesses attract new customers and drive sales. Signage restrictions /regulations received the second most responses. Respondents stated that sign regulations should be relaxed or adjusted to help them draw new business. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 5 The third most -cited need identified that additional funding would help attract new business to their location. Additional funding was proposed to be used for marketing, advertising, and facility improvements. Question 12: How do you prefer we contact you with the information requested above? This question asked respondents the best way to provide follow -up information. Contact Type Responses Percentage Email 53 45.30% Mail 19 16.24% Phone 20 17.09% Fax 1 0.85% In Person 1 0.85% No Response 40 34.19% Source: Winter Springs Business Survey, 2010. Note: some respondents checked more than one category. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 6 Data Summary Total Surveys Received - 117 out of 1,350 Surveys 8.7% Response Rate 1. Contact Information (Each respondent was asked to provide contact information) 2. Top 5 Industries Based On Survey Responses TOTAL PERCENT 1. Professional Services (Attorneys, Doctors, Engineers) 28 23.93% 2. Other 23 19.67% 3. Retail 14 11.96% 4. Finance & Insurance 13 11.11% 5. Hospitality / Restaurant / Bar 11 9.40% 5. Personal Services (Barber, Health & Fitness, Salon) 11 9.40% Manufacturing 8 6.83% Wholesale Trade & Distribution 7 5.98% Real Estate 4 3.41% Health & Life Sciences 3 2.56% Research & Development 1 0.85% Aviation 0 0% Corporate Headquarters 0 0% Nursery 0 0% Note: All 117 surveyed participants responded and some selected more than one category. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 7 3. Brief Description of Business Purpose Description of businesses ranged from artwork manufacturing, commercial plumbing contractor, manufacturing of fiexo plates to serve the printing industry, manufacturing of film capacitors and EMI filters, distributor of atmospheric water generators, mobile pet grooming services, extreme board sports (skate and surf) retailer to antique restorations. 4. How many employees do you currently have? Average of 6 employees per business Full Time Average 5.50 - ranges from 1 full -time employee to 116 Part Time Average 2.33 - ranges from 1 part -time employee to 20 5. Have you reduced staff or the number of hours employees work as a result of the local economic conditions? Yes 50 respondents 42.74% No 67 respondents 57.26% All 117 responded If yes, how many people have you lost or how many hours, and in what job titles? Average of 4.67 people Average of 37.22 hours 79 did not respond to this portion of the question 6. Have your revenues decreased in the last four quarters? Yes 68 58.12% No 39 33.33% No Response 10 8.55% If, yes by what percent? Average of 31% decrease 56 did not respond to this portion of the question 7. What percentage of your employees live in Winter Springs? 47.09% Oviedo? 11.77% Seminole County? 52.32% City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 8 8. In what ways have the local economic conditions impacted your business operations the most? The overwhelming response centered on the lack of customers and reduced spending because customers have less disposable income (cautious spending). Others responded that sales have tapered and overhead costs have increased (rent, supplies and incidentals). 9. Would you like additional information on any of the topics listed below? TOTAL PERCENT 1. Federal & State Programs 25 21.37% 2. Access to Capital Resources 16 13.68% 3. Demographic / Statistical Information 10 8.55% 3. Job Creation / Retention 10 8.55% 4. Business Counseling 9 7.69% 5. Permitting Assistance 5 4.27% Expansion / Site Selection 4 3.42% Export Counseling & Assistance 3 2.56% Other (please specify) 3 2.56% Disaster Preparedness / Recovery 2 1.71% Industrial Revenue Bond Programs 2 1.71% Workforce Training 2 1.71% Employee Relocation Assistance 1 0.85% Broadband Infrastructure 1 0.85% 36 Responded; 30.77% 81 Did not respond; 69.23% Note: some respondents checked more than one category. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 9 10. Have you considered restructuring your operation or methodology of conducting business to attract a different market or increase your market potential? Yes 43 36.75% No 63 53.85% No Response 11 9.40% If yes, please explain 11. What resources or assistance would you require to attract new business? Low cost local advertising was the prevailing theme of assistance needed by the respondents. Signage restrictions /regulations also elicited a high rate of response. A close third, the respondents feel that additional funding would help attract new business to their location. 12. How do you prefer we contact you with the information requested above? Email 53 45.30% Mail 19 16.24% Phone 20 17.09% Fax 1 0.85% In Person 1 0.85% No Response 40 34.19% Note: some respondents checked more than one category. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 10 Recommendations The following recommendations are based on the surveyed participants' responses to survey questions 9 and 11. 1. Survey respondents identified that they would like assistance with local, state or federal programs. The recommendations that follow include proposed items that will assist local business owners with obtaining information regarding local, state or federal programs. • Evaluate the opportunity to establish an incentive program for the relocation or expansion of local businesses. • Consider participating with the Agency for Workforce Innovation training programs to assist local businesses with a trained employment base. • Continue to assist local businesses with expansion and availability of local, state and federal programs. • Consider the development of a local preference and /or a local buying program. • Continue to assist local businesses with permitting, design and zoning regulations for possible expansion. 2. The surveyed participants identified visibility and sign regulations as an issue. The following proposed recommendations are intended to help businesses owners overcome the challenge of adequate visibility. • Evaluate the potential for relaxing the City's sign regulations. • Consider developing less restrictive standards for temporary signs and banners. 3. The following recommendation is proposed to address the challenge business owners are having with marketing and advertising. • Explore a partnership with the Seminole Regional and Oviedo Winter Spring Chambers of Commerce in providing a community publication with low cost advertising options. 4. Participants indicated that more business and related community related events would help their business. The following recommendations include potential solutions to generating more city -wide events. • Consider developing a city -wide periodic community events program that brings local venders in contact with market base. • As part of the community events program, consider the establishment of a monthly signature event for the Town Center. City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 11 Appendix Winter Springs Business Retention Survey ti t, CITY OF WINTER SPRINGS BUSINESS SURVEY 1. Please provide us with your contact information. Name and Title: Company: Address: Adress 2: City / Town: State: ZIP: Email Address: Phone Number: Fax Number: 2. Industry ❑ Aviation O Real Estate LJ Health & Life Sciences El Research & Development LJ Corporate Headquarters D Wholesale Trade & Distribution fJ Finance & Insurance J Retail El Hospitality ! Restaurant / Bar Ej Personal Services (Barber, Health & Fitness, Salon) El Manufacturing El Professional Services (Attorneys, Doctors, Engineers) ❑ Nursery Ej Other (please specify) 3. Brief Description of Business Purpose 4. How many employees do you currently have Full-Time? Part-Time? 5. Have you reduced staff or the number of hours employees work as a result of the local economic conditions? ❑ Yes a llo If yes. how many people have you lost or how many hours, and in what job tides? Page 1 of 2 City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 12 6. Have your revenues decreased in the last four quarters? ❑ Yes ❑ Nc It yes, by what percent? 7. What percentage of your employees live in Winter Springs? 9: Oviedo? °b Seminole County? 96 8. In what ways have the local economic conditions impacted your business operations the most? 9. Would you like additional information on any of the topics listed below? ❑ Export Counseling & Assistance ❑ Expansion I Site Selection Business Counseling Job Creation !Retention El Industrial Revenue Bond Programs C Broadband Infrastructure ❑ Workforce Training ❑ Disaster Preparedness / Recovery ❑ Employee Relocation Assistance [J Demographic / Statistical Information E3 Access to Capital Resources ( Permitting Assistance ❑ Federal & State Programs ❑ Other (please specify) 10. Have you considered restructuring your operation or methodology of conducting business to attract a different market or increase your market potential? ❑ Yes ❑ No If yes, please explain. 11. What resources or assistance would you require to attract new business? 12. How do you prefer we contact you with the information requested above? Page 2 of 2 City of Winter Springs, Economic Development Department Business Retention Survey Result Summary 13