Final Report
White Mountain Region Business Retention & Expansion Survey
Show Low, Pinetop-Lakeside, & Snowflake-Taylor Communities
Conducted Fall 2003 – Spring 2004
Compiled by Mark Engle
Northland Pioneer College SBDC
June 4, 2004
Executive Summary
This survey was conducted in three communities by the local Chambers of Commerce: Pinetop-Lakeside, Snowflake-Taylor, and Show Low. The Small Business Development Center for Northland Pioneer College provided technical assistance by organizing survey dates, training Chamber volunteers in survey methodology, assisting with survey taking, and compiling and arranging for analysis of results.
During March and April of 2004 the raw data was provided to University of Arizona, who did analysis and presented the regional data in a special luncheon on April 30, 2004. A copy of their Powerpoint presentation is included as an attachment to this final report.
This report is an analysis of the entire process of the study, and provides local data for analysis and use by the local communities; through the Chambers and City Government, to improve their understanding of small business attitudes and needs.
The purpose of this BR&E survey was to identify and respond to the needs local businesses and improve the local business climate. The questionnaire was developed by the Chambers and the SBDC to illicit the quantitative and qualitative information that is needed in such surveys. The quantitative date, such items as rating of city services, allows the understanding of business attitudes at an overall level, and can be broken down and analyzed by industry category. The qualitative data is the open-ended questions that attempt to solicit honest feedback relative to a businesses happiness in the community, desire to relocate, etc. A copy of the questionnaire used is included as an attachment to this final report.
Each of the questionnaires was administered on location using face-to-face interviews. Volunteers were local Chamber representatives and volunteers, trained by the SBDC prior to conducting surveys. The training consisted of the methods of asking questions, how to clarify without prejudicing results, and methods to make a business owner more comfortable with the process and open to answering questions freely. Only summary information is included with this report, as individual responses are confidential.
Pinetop-Lakeside
The Pinetop-Lakeside business community was surveyed October 13, 14 & 15, 2003. Using a group of ten surveyors the group divided the business district into regions and walked door to door surveying local businesses. The survey totaled 110 responses; 40 retailers, 2 manufacturers, and 68 service businesses.
The retail businesses surveyed had an average of 3.8 employees, with a high of 23 and a low of 1. They rated their employees highly, with an average of 4.4 (on a scale of 1 to 5) for attitude, 4.5 for productivity, 4.5 for customer service, and an overall rating of 4.3. Eighty-three percent of the retailers surveyed indicated they believe the White Mountains is a positive place to do business.
There were only two manufacturing business surveyed, and they had an average of 5.5 employees. They also rated their employees highly, with an average of 4.5 for attitude, productivity and customer service. 100% of them responded that the White Mountains is a positive place to do business.
The service businesses had an average of 14.4 employees, with a high of 325 and a low of 1. They rated their employees highly, with 4.5 for attitude, 4.4 for productivity, and 4.6 for customer service. Ninety percent of these businesses responded that the White Mountains is a positive place to do business.
The businesses were then asked to rate services in the area, which are shown on the next page.
Questions Comments
10. Snow removal
11. Telecommunication quality
12. Cost of transportation
13. Business friendly regulations
14. Chamber of commerce
15. Workforce training
16. Educational institutions
17. Airport facilities
18. Construction services
Of retail businesses surveyed, 45% reported sales increases in the last year, 23% showed a decrease, 23% showed about the same, and 9% did not respond. For the manufacturers they both reported increases in sales. The services businesses faired less well, with 26% showing increased sales, 53% showing a decline, and 21% with no change.
For retailers surveyed, the average sales to tourists, seasonal visitors or travelers was 41%. This was 0% for manufacturers. The service businesses averaged 50%. Pinetop-Lakeside was the highest in the region in percentage sales to visitors.
Retail businesses surveyed believe 37% of local buyers purchase their products out of the area. This was not applicable for the manufacturers. The service businesses estimated 35% purchase their services off the mountain. This phenomenon is traditionally labeled “retail leakage”. Pinetop-Lakeside reported the highest leakage for the communities in the region.
Of retailers surveyed 35% plan to expand within the next 1-2 years, 13% within the next 3-5, and 51% had no plans to expand. One of the two manufacturing firms planned to expand in the next 3-5 years. For the service firms 31% planned to expand in the next 1-2 years, 10% within 3-5 years, 4% in 5-10 years, and 65% had no plans to expand.
For businesses surveyed, 58% of the retailers lease their location, with 27% of these planning to renew when the lease is up. For service businesses 53% of the businesses lease, with 38% planning to renew. The important consideration in asking this series of questions leads to the determination of whether a business is planning to relocate or close. Only eight respondents of 110 surveyed or 7.2% indicated they would consider relocating from their current location. And in only two instances did we determine that the business was planning to relocate out of the area or close.
The final question, “how can the City or Chamber of Commerce better serve your business” elicited various responses, some of which include:
Common threads present in a number of surveys, looking at the qualitative aspect of this last question, could be summarized as follows:
Snowflake-Taylor
The Snowflake-Taylor business community was surveyed October 21, 22 & 23, 2003. Using a group of approx. eight surveyors the group divided the business district into regions and walked door to door surveying local businesses. The survey totaled 60 responses; 19 retailers, 7 manufacturers, and 34 service businesses.
The retail businesses surveyed had an average of 7.8 employees, with a high of 47 and a low of 1. They rated their employees highly, with an average of 4.6 (on a scale of 1 to 5) for attitude, 4.1 for productivity, 4.3 for customer service, and an overall rating of 4.3. Ninety-five percent of the retailers surveyed indicated they believe the White Mountains is a positive place to do business.
There were seven manufacturing business surveyed, and they had an average of 30.5 employees. They also rated their employees highly, with an average of 4.3 for attitude, productivity and customer service. 100% of them responded that the White Mountains is a positive place to do business.
The service businesses had an average of 5.9 employees, with a high of 50 and a low of 1. They rated their employees highly, with 4.5 for attitude, 4.2 for productivity, and 4.4 for customer service. Ninety-one percent of these businesses responded that the White Mountains is a positive place to do business.
The businesses were then asked to rate services in the area, which are shown on the next page.
Questions Comments
10. Snow removal
11. Telecommunication quality
12. Cost of transportation
13. Business friendly regulations
14. Chamber of commerce Highest rating in region
15. Workforce training “ “ “ “
16. Educational institutions
17. Airport facilities
18. Construction services
Of retail businesses surveyed, 42% reported sales increases in the last year, 26% showed a decrease, 21% showed about the same, and 9% did not respond. For the manufacturers 57% reported increases in sales, 29% decreases, and 14% the same level. The services businesses faired the best, with 65% showing increased sales, 18% showing a decline, 9% the same, and 9% with no change. This was notably better than the other communities in the region in services, which may be attributable to Snowflake-Taylor being less tourism businesses overall.
For retailers surveyed, the average sales to tourists, seasonal visitors or travelers was 18%. This was 0% for manufacturers. The service businesses averaged 20%. Compared with the other communities in the region this was significantly lower. This is attributable to the lower number of tourism businesses in Snowflake-Taylor.
Retail businesses surveyed believe 29% of local buyers purchase their products out of the area. For manufacturers this measure was not applicable to 4 of the 7 surveyed. The service businesses estimated 18% purchase their services off the mountain. This phenomenon is traditionally labeled “retail leakage”. The leakage figure for Snowflake-Taylor was much lower than the other communities in the region, which may be an indicator of a propensity to shop local, when possible.
Of retailers surveyed 53% plan to expand within the next 1-2 years, 5% within the next 3-5, and 42% had no plans to expand. For the manufacturing firms 29% planned an expansion in 1-2 years, 14% planned to expand in the next 3-5 years, and 57% had no plans to expand. For the service firms 38% planned to expand in the next 1-2 years, 9% within 3-5 years, 3% in 5-10 years, and 50% had no plans to expand. This was an area that Snowflake-Taylor showed greater intentions to expand than the rest of the communities in the region. This is possibly due to the local economy being less tourism dependent, and from optimism from local growth, past and planned for the future.
For businesses surveyed, 53% of the retailers lease their location, with 47% of these planning to renew when the lease is up. For manufacturers 100% owned their facilities. For service businesses 32% of the businesses lease, with 21% planning to renew. The important consideration in asking this series of questions leads to the determination of whether a business is planning to relocate or close. Only five respondents of 60 surveyed or 8.3% indicated they would consider relocating from their current location. In no instances did we determine that a business was definite in planning to relocate out of the area or close. Compared with other communities surveyed in the region, more businesses own their locations in Snowflake-Taylor.
The final question, “how can the City or Chamber of Commerce better serve your business” elicited various responses, some of which include:
Common threads present in a number of surveys, looking at the qualitative aspect of this last question, could be summarized as follows:
Show Low
The Show Low business community was surveyed January 27, 28 & 29, 2004. Using a group of twenty surveyors the group divided the business district into regions and walked door to door surveying local businesses. The survey totaled 125 responses; 58 retailers, 3 manufacturers, and 64 service businesses.
The retail businesses surveyed had an average of 15.1 employees, with a high of 450 and a low of 1. They rated their employees highly, with an average of 4.4 (on a scale of 1 to 5) for attitude, 4.3 for productivity, 4.5 for customer service, and an overall rating of 4.4. Eighty-six percent of the retailers surveyed indicated they believe the White Mountains is a positive place to do business.
There were only three manufacturing business surveyed, and they had an average of 2 employees. They also rated their employees highly, with an average of 5 for attitude, productivity and customer service. 100% of them responded that the White Mountains is a positive place to do business.
The service businesses had an average of 14.6 employees, with a high of 492 and a low of 1. They rated their employees highly, with 4.5 for attitude, 4.5 for productivity, and 4.6 for customer service. Ninety-two percent of these businesses responded that the White Mountains is a positive place to do business.
The businesses were then asked to rate services in the area, which are shown on the next page.
Questions Comments
10. Snow removal
11. Telecommunication quality
12. Cost of transportation
13. Business friendly regulations
14. Chamber of commerce
15. Workforce training Lowest rating in region
16. Educational institutions
17. Airport facilities
18. Construction services
Of retail businesses surveyed, 52% reported sales increases in the last year, 24% showed a decrease, 24% showed about the same or did not respond. For the manufacturers they one reported increases in sales, while the other two showed decreases. The services businesses faired better, with 59% showing increased sales, 16% showing a decline, and 25% with no change. This represented the strongest service sector in the region when compared with the other communities.
For retailers surveyed, the average sales to tourists, seasonal visitors or travelers was 30.5%. This was 60% for manufacturers. The service businesses averaged 31%. The results from this showed less tourism spending than Pinetop-Lakeside and more than Snowflake-Taylor.
Retail businesses surveyed believe 23% of local buyers purchase their products out of the area. The manufacturers indicated an average of 30%, and the service businesses estimated 19.4% purchase their services off the mountain. This phenomenon is traditionally labeled “retail leakage”. The leakage figures for Show Low were comparable to Snowflake-Taylor and both were much lower than Pinetop-Lakeside.
Of retailers surveyed 31% plan to expand within the next 1-2 years, 16% within the next 3-5, and 53% had no plans to expand or did not respond. Two of the three manufacturing firms planned to expand in the next 1-2 years. For the service firms 25% planned to expand in the next 1-2 years, 9% within 3-5 years, 2% in 5-10 years, and 64% had no plans to expand.
For businesses surveyed, 55% of the retailers lease their location, with 29% of these planning to renew when the lease is up. For service businesses 45% of the businesses lease, with 34% planning to renew. The important consideration in asking this series of questions leads to the determination of whether a business is planning to relocate or close. Only 14 respondents of 125 surveyed or 11% indicated they would consider relocating from their current location. And in only two instances did we determine that the business was planning to relocate out of the area or close.
The final question, “how can the City or Chamber of Commerce better serve your business” elicited various responses, some of which include:
Common threads present in a number of surveys, looking at the qualitative aspect of this last question, could be summarized as follows:
Click here for copy of University of Arizona Presentation of Survey
(Microsoft PowerPoint file - Hit Enter if asked for password)
Original Survey Document
Business Retention & Expansion Survey
The White Mountain Regional Chambers of Commerce are conducting a Business Retention and Expansion Survey in order to identify the needs and concerns of our local businesses. We appreciate your input regarding conducting business in the White Mountain area.
Business Name ____________________________________________________________________
What type of business do you operate? ____Retail ____Manufacturing ____ Service _____Other________________________
How many employees do you have? _______ Full-time _____Part-time
How do you rate your employees with respect to the following:
Excellent Good Fair Poor Very Poor
Do you feel that the White Mountains is a positive place to conduct business? ___yes ___no
If no, why not?____________________________________________________________
___________________________________________________________________________
How well do the following items meet your business needs?
Excellent Good Fair Poor Very Poor
a. Local Government 5 4 3 2 1
b. Availability of capital 5 4 3 2 1
c. Healthcare/Medical/Dental costs 5 4 3 2 1
d. Hospital services 5 4 3 2 1
e. Affordable housing 5 4 3 2 1
f. Insurance cost (fire, workers comp) 5 4 3 2 1
g. Quality of workforce 5 4 3 2 1
h. Meeting space 5 4 3 2 1
i. Utilities 5 4 3 2 1
j. Snow removal 5 4 3 2 1
k. Telecommunication quality 5 4 3 2 1
l. Cost of transportation 5 4 3 2 1
m. Business friendly regulations 5 4 3 2 1
n. Chamber of Commerce 5 4 3 2 1
o. Workforce training 5 4 3 2 1
p. Educational institutions 5 4 3 2 1
q. Airport facility 5 4 3 2 1
r. Construction services 5 4 3 2 1
In the last fiscal year, were your sales up, down, or the same from the previous year?
____up ____down _____same ____by what estimated percentage?
What percentage of your total business is due to tourists, seasonal visitors, or travelers? Estimate percentage__________________
What percentage of people purchase your type of product or service out of the area or off the mountain?
Estimate percentage______________
Do you plan to expand within the next: ___1-2 years ____3-5 years ____5-10 years
Do you lease your current site? ___yes ___no If yes, when does your lease expire______________
Will you renew your lease upon expiration? ___yes ____no If no, why?_______________________
___________________________________________________________________________________
Is your company considering relocating from the current location? ____yes _____no
If yes, where?_______________________________________________________________________
If yes, why?_________________________________________________________________________
How can the City or Chamber of Commerce better serve your business? _________________________
___________________________________________________________________________________
____________________________________________________________________________