Business Retention and Expansion Program
Business Retention and Expansion Program
Results
Economic Development Foundation of
Table of Contents I. Executive Summary
2
II. Personal Interview Survey Form
3
III. Online Survey Form
7
IV. Respondent Overview
16
V. Business Climate
19
VI. Workforce
22
VII. Opportunity For Business Growth
25
VIII. Utilities
28
1
Executive Summary In late 2006, the Economic Development Foundation of Brenham decided to undertake a Business Retention and Expansion Program (BREP) as part of its 2007 goals. With training and initial facilitation from the Lower Colorado River Authority department of Community and Economic Development, EDF formed a BREP committee to identify goals and strategies for the program. The EDF identified the need to better understand local business and industry as a key ingredient in the success of economic development in the community. One goal of the BREP committee was to identify strengths, weaknesses, needs, and opportunities of the business environment of the community. Once the data was collected, the committee would work to provide all available assistance to help the existing businesses expand and prosper. Another goal of the BREP was to promote the process that a solid community with healthy existing business will attract new business. The BREP committee decided to work with a two-pronged approach of personal interviews with major employers and an online survey available to all businesses. The committee participated in the first personal interview in late December 2006 and completed the last personal interview in October 2007, with the online interview form being accessible during the same time frame. The committee identified a list of 36 major employers of which 25 participated in the personal interview. The online survey returned a total of 33 responses, giving the committee a total of 58 businesses that participated. All answers have been kept confidential and the results were compiled and tabulated in aggregate form. The following report is the final analysis of the BREP data collected. The report can be used as a tool in making policy and program decisions regarding local business development. The Economic Development Foundation of Brenham will continue to update information and will continue its goal of promoting the growth of industry and jobs.
2
Personal Interview Survey Form
Economic Development Foundation of 3
MAJOR EMPLOYER: __________________________________________ Person interviewed: ____________________________________________ Date: _______________
1. Provide a brief description of your business.
2. How long have you been in business?
3. Who are your customers?
4. Who are your key competitors?
5. Of the ____ employees you currently have, what percent are… skilled _____ semi-skilled _____ unskilled _____ 6. Do most of your employees live in Brenham or Washington County?
7. What is the trend of your industry? Your company?
4
LOCAL BUSINESS CLIMATE 8. What do you feel are the strong points about doing business in Brenham?
9. What do you feel are the weak points?
10. Could the City do anything to make your business more successful?
11. Does the local workforce inhibit or promote your business success?
12. Are the public schools and other workforce training programs providing local students with sufficient business/workforce training?
13. Are there any local constraints to your business success such as transportation, regulations, infrastructure, utilities, etc?
14. What, if anything, would need to happen for you to expand operations in your community?
5
SUPPLIERS & ECONOMIC DIVERSIFICATION 15. Would it improve your business if any of your key suppliers were located in Brenham? Do you have purchasing clout to encourage those suppliers to locate here?
16. Are there any opportunities for the further processing or use of your products or byproducts? Do any of your waste products have a commercial value?
17. Do you think Brenham needs to diversify its economic base?
18. What sort of new business and industry would you say is needed here in Brenham? How about new commercial/retail businesses?
19. Are there any other comments or observations you’d like to make?
6
Online Survey Form
Economic Development Foundation of 7
Business Retention and Expansion Survey
1. Background Information Thank you for participating in the Business Retention and Expansion Survey. Your responses will be used to determine economic opportunities for growth and help develop future economic action plans. Your responses will be kept CONFIDENTIAL. Please enter the basic infromation for your business.
1. Name of Business
2. Respondents Name
3. Title
4. Mailing Address Example: 314 South Austin Street Brenham, TX 77833
5. E-mail
6. Parent company/location (if applicable)
7. What is your business structure? g Proprietorship c d e f g Partnership c d e f c Corporation d e f g
Page 1
Business Retention and Expansion Survey 8. Business Summary-overview of products, services
9. Please check your primary industry sector: g Manufacturing c d e f
g Distribution c d e f
g Wholesale/Retail c d e f Trade
g Professional c d e f
g Research c d e f
Services
10. When did your business start?
11. How long have you been in business in Brenham?
2. Labor Please answer the following question in regards to labor and your business.
12. Number of full-time employees: currently (2006) 2000 estimate estimate for 2007 year end
13. What percent of your current workforce is... Highly Skilled Semi-skilled Unskilled
14. Do you require a high school diploma for entry-level workers? j Yes k l m n n No j k l m
15. What skills are needed by high school grads?
Page 2
Business Retention and Expansion Survey 16. What is your annual percentage of employee turnover (turnover rate)?
17. Has your business utilized any local, regional, or state training programs? Please List:
18. What are your current employment needs for training?
3. Business Climate Please answer the following questions in regards to the business climate.
19. Please indicate areas of concern regarding the local business climate. Check all that apply. Current
Past 2 years
Next 2 years
c d e f g
c d e f g
c d e f g
Labor cost
c d e f g
c d e f g
c d e f g
Obtaining permits
c d e f g
c d e f g
c d e f g
Utilities
c d e f g
c d e f g
c d e f g
Building lease cost
c d e f g
c d e f g
c d e f g
Land availability/cost
c d e f g
c d e f g
c d e f g
Regulations
c d e f g
c d e f g
c d e f g
Transportation
c d e f g
c d e f g
c d e f g
Housing for Employees
c d e f g
c d e f g
c d e f g
Availability of qualified workers
20. Of the areas of concern above, please indicate your top 3 areas of concern and why.
Page 3
Business Retention and Expansion Survey 21. What are the strengths of this community as a place of business? What about weaknesses?
22. Do you feel local tax rates are reasonable and corresponding governmental/municipal/educational services represent a good value for the dollar? j Yes k l m n n No j k l m
23. Overall, how would you rate Brenham as a place to do business? n Excellent j k l m n Good j k l m n Fair j k l m j Poor k l m n
24. Have representatives from other states or cities contacted you to try to get you to move your company? j Yes k l m n n No j k l m
25. Do you currently have plans to relocate elsewhere? n Yes j k l m n No j k l m
26. Do you plan to expand your business here within the next five years? ( If no, please skip to question number 29) n Yes j k l m n No j k l m
27. What factors may influence your possible expansion?
Page 4
Business Retention and Expansion Survey 28. Please estimate your additional space needs (acreage, building sq. ft.)
29. Are you familiar with local and state incentive programs? n Yes j k l m n No j k l m
30. Would you like additional information on any of the following programs? g State c d e f
Financial Incentive Programs
g Worker c d e f g Export c d e f
Training & Development Programs Assistance
c SBS d e f g
Loans (fixed rate, low interest, only 10% down)
g Taxt c d e f
exempt Industrial Revenue Bonds ($4 million minimum)
g Business c d e f
Consulting
4. Market Issues Please answer the following questions in regards to your business market.
31. What is your customer base? Please give percentages. other businesses government consumers/end users
32. Geographically, where are your sales? % in Brenham/ Washington County % regional % Texas % out of state % international
33. If your sales come from out of state or internationally, please list the locations.
Page 5
Business Retention and Expansion Survey 34. Where are your competitors primarily? (rank in order) in Brenham/ Washington County regional in Texas other states international
35. If your competitors are in other states and/or international, please list their locations.
5. Internal Operation Issues Please answer the following questions in regards to internal operation issues (other than labor).
36. Where are your suppliers located? c in d e f g
Brenham/ Washington County
c regional d e f g g in c d e f
Texas
g other c d e f
states
g international c d e f
37. If your suppliers are primarily located in other states and/or internationally, please list the major cities/ countries.
38. Are your supply requirements sufficient to possibly recruit suppliers to this area? j Yes k l m n n No j k l m
39. If yes, please indicate needed/desired suppliers
Page 6
Business Retention and Expansion Survey 40. What type of industrial support services are needed in Brenham?
6. Utilities Please answer the following questions in regards to utilities.
41. Does your business have special requirements for utility services? g Electric c d e f
Service
g Water c d e f c Wastewater d e f g g Telephone c d e f g Natural c d e f
Gas
g Internet/Connectivity c d e f
42. If your business has special requirements, please explain the details to those requirements.
43. Do you foresee any change in your operations that would require utility upgrades or modification?
44. Have there been instances when your operations have been impacted significantly impacted by utility problems?
45. Utilities represent about what percent of your cost structure? Electric Natural Gas Water/ Wastewater Telephone
Page 7
Business Retention and Expansion Survey 46. The cost of utilities is to your opperation? (check one below) j Critical k l m n
j Significant k l m n
j Somewhat k l m n
important
j Insignificant k l m n
47. In a deregulated electric market, where business can choose elecric suppliers, what factors would be most important to you? Please put in order, with 1 being the most important. Bottom Line Cost Day-to-Day Reliability Rate Flexibility Long-term Security of Supply Quick Repair & Maintenance
48. Please complete the following table rating current utility performance. Telecommunications/Internet
Electric
Water/Wastewater
Natural Gas
Telephone
Cost Reliability Capacity Quality
7. Thank You Thank you for participating in the Business Retention and Expansion Survey. Your answers will be used to evaluate the business climate in Brenham and Washington County. Your answers will be kept confidential. If you have any questions or comments about the survey, please contact the Economic Development Foundation of Brenham at: 314 South Austin Street Brenham, TX 77833 979-836-8927 [email protected]
Page 8
Respondent Overview
Economic Development Foundation of 16
Respondent Overview In this section you will find a brief snapshot of the businesses that participated in the Business Retention and Expansion Program. It also gives a snapshot of two economic indicators that establish that Brenham has a strong local economy. The Economic Development Foundation had a good distribution of respondents in the different industry sections, with manufacturing being the largest. One data set that indicates an “innate” business incubator climate is the “How long have you been in business” data range. It shows that 23 respondents have been in business for longer than 25 years, 26 respondents have been in business for longer than one year, but less than 25 years, with 3 respondents being start-ups. Of the respondents, 88% stated that their companies are in a growth mode. That indicates a strong local economy, plus 84% of the corresponding industries are in a growth mode.
Primary Industry Sector of Respondents
33% 38% Manufacturing Distribution Wholesale/Retail Trade Professional Services
4% 25%
17
Respondent Overview How long have you been in business?
Frequency of Response
14 12 10 8 6 4 2 0
Less than 1 year
1 to 5 years 5 to 10 years
10 to 25 years
25 to 50 years
50 to 100 years
100+ years
What is the trend of your company?
12%
88%
Companies that are in growth mode
Companies that are stagnant or declining
What is the trend of your industry?
16%
84%
Industry is growing Industry is stagnant or declining
18
Business Climate
Economic Development Foundation of 19
Business Climate When analyzing the business climate of the 58 respondents in the community, the Economic Development Foundation found an interesting paradox. The workforce was identified as both a dominant strength and weakness. While the work quality and ethic is the dominant strength, labor shortage was the dominant weakness. In fact, when asked what the city could do to make the business more successful, the strongest response was to help increase and promote the workforce. Respondents felt that the city is a positive influence, but that the city government should work to lower taxes, lower utility rates, and be more business friendly. While the respondents felt that there were key points that the city could improve upon, many felt that these same points were not constraining business. Strong points about doing business in Brenham 14
10 8 6 4 2 0
Work Quality/Ethic
Location
Small town character
Quality of Life
Growth
Low Crime
Business friendly
Weak points about doing business in Brenham 25
Frequency of Response
Frequency of Response
12
20 15 10 5 0
Labor Shortage
City government
Cost of housing (lack of low cost housing)
High taxes
20
Wages are low
Shipping (no late or weekend pick up)
Electricity Brownouts (Bluebonnet electric)
Growing too fast/lack planning
Business Climate What could the city do to make your business more successful? 6
Frequency of Response
5 4 3 2 1 0
Work to City is a positive increase/promote influence and doing workforce a great job
Lower taxes
Lower utility rates (sewer and gas)
Work to be more business friendly
Wages are not in proper ratio with housing costs
Are there any local constraints to your business, such as transportation, regulations, infrastructure, utilities, etc.? 12
Frequency of Response
10 8 6 4 2 0 None
City Utilities
Bluebonnet Electric (power outages are numerous, "brown outs")
21
Shipping (Major carriers (Fed-Ex & UPS do not have night and weekend pick up)
No Public transportation
Workforce
Economic Development Foundation of 22
Workforce While analyzing the data for the entire survey, no data set became more dominant than that of the local workforce. The local workforce has proven essential in the past expansions and current growth plans of the 58 responding companies. A majority of the workforce is in a position considered “skilled” by the employer. Most employers felt that the workforce promotes their growth, but it has recently begun to hinder growth due to a lack of hirable workforce. According to most business owners, the lack of a hirable workforce is due to the low unemployment rate and generational differences in the youth. For this reason, most businesses felt that public schools and other training resources are not providing sufficient business and workforce training. When asked what skills are needed by high school graduates, the top response was “Work Ethic”. Of your current employees, how many are: skilled, semi-skilled, and unskilled?
22% Skilled
48%
Semi-Skilled
Unskilled
30%
Does the local workforce inhibit of promote your growth?
Frequency of Response
12 10 8 6 4 2 0 Promotes
Inhibits
23
Both (Promotes-great workforce; Inhibits-lack of workforce)
Workforce
Are the public schools and other workforce training programs providing local students with sufficient business/workforce training?
33%
67%
Yes
No
What skills are needed by high school grads?
Frequency of Response
7 6 5 4 3 2 1 0
Work Ethics
Customer service skills
Communication
24
Basic math
Computer skills
Workforce training
Opportunity For Business Growth
Economic Development Foundation of 25
Opportunity For Business Growth We found that, of the 58 respondents, the opportunities of growth are directly affected by the influx of business, real estate market, and workforce. While it would improve most businesses to have a key supplier located in the community, the majority felt that they do not have the purchasing clout to encourage a relocation of the supplier. When surveyed about what new business was needed in the community, the responses followed the trend of most communities with restaurants and retail topping the list.
Frequency of Response
What, if anything, would need to happen for you to expand operations in the community? 6 5 4 3 2 1 0
More business
More space
Willing to grow, but workforce availability is hindering growth
Currrently growing/expanding
Increase business friendly environment
Would it improve your business if any of your key suppliers were located in Brenham?
38%
62%
Yes
No
26
Opportunity For Business Growth Do you have the purchasing clout to encourage those suppliers to locate here?
33%
67%
The environment is not conducive/do not have purchasing clout
Yes
27
Retirement community
Affordable Housing ($80,000$150,000)
Nothing
Academy
Target
Retail clothing/shoes
Retail
12 10 8 6 4 2 0 Restaurants
Frequency of Response
What sort of new business and industry would you say is needed in Brenham?
Utilities
Economic Development Foundation of 28
Utilities The data used for the utilities section is only the data received from the 33 respondents of the online version of the survey. The overall rating regarding utilities in the community was “excellent” to “good.” The cost of all of the utilities tended to receive the most negative responses. Wastewater cost was the only data set that received a small percentage response of “poor,” with the largest response of Telephone cost being “fair.” Overall, the physical infrastructure of the community is rated as a positive.
Utilities represent about what percent of your cost structure?* Percentage
80 60 40 20 0
Electric
Natural Gas
Water/ Wastewater
Telephone
Rate Current Utility Performance: Telecommunications/Internet* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Electricity* Quality Excellent
Capacity
Good Fair
Reliability
Poor
Cost 0%
20%
* Data is from online survey only
40%
60%
29
80%
100%
Utilities Rate Current Utility Performance: Water/Wastewater* Quality Excellent
Capacity
Good Fair
Reliability
Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Natural Gas* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Telephone* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
* Data is from online survey only
40%
60%
30
80%
100%
Results
Economic Development Foundation of
Table of Contents I. Executive Summary
2
II. Personal Interview Survey Form
3
III. Online Survey Form
7
IV. Respondent Overview
16
V. Business Climate
19
VI. Workforce
22
VII. Opportunity For Business Growth
25
VIII. Utilities
28
1
Executive Summary In late 2006, the Economic Development Foundation of Brenham decided to undertake a Business Retention and Expansion Program (BREP) as part of its 2007 goals. With training and initial facilitation from the Lower Colorado River Authority department of Community and Economic Development, EDF formed a BREP committee to identify goals and strategies for the program. The EDF identified the need to better understand local business and industry as a key ingredient in the success of economic development in the community. One goal of the BREP committee was to identify strengths, weaknesses, needs, and opportunities of the business environment of the community. Once the data was collected, the committee would work to provide all available assistance to help the existing businesses expand and prosper. Another goal of the BREP was to promote the process that a solid community with healthy existing business will attract new business. The BREP committee decided to work with a two-pronged approach of personal interviews with major employers and an online survey available to all businesses. The committee participated in the first personal interview in late December 2006 and completed the last personal interview in October 2007, with the online interview form being accessible during the same time frame. The committee identified a list of 36 major employers of which 25 participated in the personal interview. The online survey returned a total of 33 responses, giving the committee a total of 58 businesses that participated. All answers have been kept confidential and the results were compiled and tabulated in aggregate form. The following report is the final analysis of the BREP data collected. The report can be used as a tool in making policy and program decisions regarding local business development. The Economic Development Foundation of Brenham will continue to update information and will continue its goal of promoting the growth of industry and jobs.
2
Personal Interview Survey Form
Economic Development Foundation of 3
MAJOR EMPLOYER: __________________________________________ Person interviewed: ____________________________________________ Date: _______________
1. Provide a brief description of your business.
2. How long have you been in business?
3. Who are your customers?
4. Who are your key competitors?
5. Of the ____ employees you currently have, what percent are… skilled _____ semi-skilled _____ unskilled _____ 6. Do most of your employees live in Brenham or Washington County?
7. What is the trend of your industry? Your company?
4
LOCAL BUSINESS CLIMATE 8. What do you feel are the strong points about doing business in Brenham?
9. What do you feel are the weak points?
10. Could the City do anything to make your business more successful?
11. Does the local workforce inhibit or promote your business success?
12. Are the public schools and other workforce training programs providing local students with sufficient business/workforce training?
13. Are there any local constraints to your business success such as transportation, regulations, infrastructure, utilities, etc?
14. What, if anything, would need to happen for you to expand operations in your community?
5
SUPPLIERS & ECONOMIC DIVERSIFICATION 15. Would it improve your business if any of your key suppliers were located in Brenham? Do you have purchasing clout to encourage those suppliers to locate here?
16. Are there any opportunities for the further processing or use of your products or byproducts? Do any of your waste products have a commercial value?
17. Do you think Brenham needs to diversify its economic base?
18. What sort of new business and industry would you say is needed here in Brenham? How about new commercial/retail businesses?
19. Are there any other comments or observations you’d like to make?
6
Online Survey Form
Economic Development Foundation of 7
Business Retention and Expansion Survey
1. Background Information Thank you for participating in the Business Retention and Expansion Survey. Your responses will be used to determine economic opportunities for growth and help develop future economic action plans. Your responses will be kept CONFIDENTIAL. Please enter the basic infromation for your business.
1. Name of Business
2. Respondents Name
3. Title
4. Mailing Address Example: 314 South Austin Street Brenham, TX 77833
5. E-mail
6. Parent company/location (if applicable)
7. What is your business structure? g Proprietorship c d e f g Partnership c d e f c Corporation d e f g
Page 1
Business Retention and Expansion Survey 8. Business Summary-overview of products, services
9. Please check your primary industry sector: g Manufacturing c d e f
g Distribution c d e f
g Wholesale/Retail c d e f Trade
g Professional c d e f
g Research c d e f
Services
10. When did your business start?
11. How long have you been in business in Brenham?
2. Labor Please answer the following question in regards to labor and your business.
12. Number of full-time employees: currently (2006) 2000 estimate estimate for 2007 year end
13. What percent of your current workforce is... Highly Skilled Semi-skilled Unskilled
14. Do you require a high school diploma for entry-level workers? j Yes k l m n n No j k l m
15. What skills are needed by high school grads?
Page 2
Business Retention and Expansion Survey 16. What is your annual percentage of employee turnover (turnover rate)?
17. Has your business utilized any local, regional, or state training programs? Please List:
18. What are your current employment needs for training?
3. Business Climate Please answer the following questions in regards to the business climate.
19. Please indicate areas of concern regarding the local business climate. Check all that apply. Current
Past 2 years
Next 2 years
c d e f g
c d e f g
c d e f g
Labor cost
c d e f g
c d e f g
c d e f g
Obtaining permits
c d e f g
c d e f g
c d e f g
Utilities
c d e f g
c d e f g
c d e f g
Building lease cost
c d e f g
c d e f g
c d e f g
Land availability/cost
c d e f g
c d e f g
c d e f g
Regulations
c d e f g
c d e f g
c d e f g
Transportation
c d e f g
c d e f g
c d e f g
Housing for Employees
c d e f g
c d e f g
c d e f g
Availability of qualified workers
20. Of the areas of concern above, please indicate your top 3 areas of concern and why.
Page 3
Business Retention and Expansion Survey 21. What are the strengths of this community as a place of business? What about weaknesses?
22. Do you feel local tax rates are reasonable and corresponding governmental/municipal/educational services represent a good value for the dollar? j Yes k l m n n No j k l m
23. Overall, how would you rate Brenham as a place to do business? n Excellent j k l m n Good j k l m n Fair j k l m j Poor k l m n
24. Have representatives from other states or cities contacted you to try to get you to move your company? j Yes k l m n n No j k l m
25. Do you currently have plans to relocate elsewhere? n Yes j k l m n No j k l m
26. Do you plan to expand your business here within the next five years? ( If no, please skip to question number 29) n Yes j k l m n No j k l m
27. What factors may influence your possible expansion?
Page 4
Business Retention and Expansion Survey 28. Please estimate your additional space needs (acreage, building sq. ft.)
29. Are you familiar with local and state incentive programs? n Yes j k l m n No j k l m
30. Would you like additional information on any of the following programs? g State c d e f
Financial Incentive Programs
g Worker c d e f g Export c d e f
Training & Development Programs Assistance
c SBS d e f g
Loans (fixed rate, low interest, only 10% down)
g Taxt c d e f
exempt Industrial Revenue Bonds ($4 million minimum)
g Business c d e f
Consulting
4. Market Issues Please answer the following questions in regards to your business market.
31. What is your customer base? Please give percentages. other businesses government consumers/end users
32. Geographically, where are your sales? % in Brenham/ Washington County % regional % Texas % out of state % international
33. If your sales come from out of state or internationally, please list the locations.
Page 5
Business Retention and Expansion Survey 34. Where are your competitors primarily? (rank in order) in Brenham/ Washington County regional in Texas other states international
35. If your competitors are in other states and/or international, please list their locations.
5. Internal Operation Issues Please answer the following questions in regards to internal operation issues (other than labor).
36. Where are your suppliers located? c in d e f g
Brenham/ Washington County
c regional d e f g g in c d e f
Texas
g other c d e f
states
g international c d e f
37. If your suppliers are primarily located in other states and/or internationally, please list the major cities/ countries.
38. Are your supply requirements sufficient to possibly recruit suppliers to this area? j Yes k l m n n No j k l m
39. If yes, please indicate needed/desired suppliers
Page 6
Business Retention and Expansion Survey 40. What type of industrial support services are needed in Brenham?
6. Utilities Please answer the following questions in regards to utilities.
41. Does your business have special requirements for utility services? g Electric c d e f
Service
g Water c d e f c Wastewater d e f g g Telephone c d e f g Natural c d e f
Gas
g Internet/Connectivity c d e f
42. If your business has special requirements, please explain the details to those requirements.
43. Do you foresee any change in your operations that would require utility upgrades or modification?
44. Have there been instances when your operations have been impacted significantly impacted by utility problems?
45. Utilities represent about what percent of your cost structure? Electric Natural Gas Water/ Wastewater Telephone
Page 7
Business Retention and Expansion Survey 46. The cost of utilities is to your opperation? (check one below) j Critical k l m n
j Significant k l m n
j Somewhat k l m n
important
j Insignificant k l m n
47. In a deregulated electric market, where business can choose elecric suppliers, what factors would be most important to you? Please put in order, with 1 being the most important. Bottom Line Cost Day-to-Day Reliability Rate Flexibility Long-term Security of Supply Quick Repair & Maintenance
48. Please complete the following table rating current utility performance. Telecommunications/Internet
Electric
Water/Wastewater
Natural Gas
Telephone
Cost Reliability Capacity Quality
7. Thank You Thank you for participating in the Business Retention and Expansion Survey. Your answers will be used to evaluate the business climate in Brenham and Washington County. Your answers will be kept confidential. If you have any questions or comments about the survey, please contact the Economic Development Foundation of Brenham at: 314 South Austin Street Brenham, TX 77833 979-836-8927 [email protected]
Page 8
Respondent Overview
Economic Development Foundation of 16
Respondent Overview In this section you will find a brief snapshot of the businesses that participated in the Business Retention and Expansion Program. It also gives a snapshot of two economic indicators that establish that Brenham has a strong local economy. The Economic Development Foundation had a good distribution of respondents in the different industry sections, with manufacturing being the largest. One data set that indicates an “innate” business incubator climate is the “How long have you been in business” data range. It shows that 23 respondents have been in business for longer than 25 years, 26 respondents have been in business for longer than one year, but less than 25 years, with 3 respondents being start-ups. Of the respondents, 88% stated that their companies are in a growth mode. That indicates a strong local economy, plus 84% of the corresponding industries are in a growth mode.
Primary Industry Sector of Respondents
33% 38% Manufacturing Distribution Wholesale/Retail Trade Professional Services
4% 25%
17
Respondent Overview How long have you been in business?
Frequency of Response
14 12 10 8 6 4 2 0
Less than 1 year
1 to 5 years 5 to 10 years
10 to 25 years
25 to 50 years
50 to 100 years
100+ years
What is the trend of your company?
12%
88%
Companies that are in growth mode
Companies that are stagnant or declining
What is the trend of your industry?
16%
84%
Industry is growing Industry is stagnant or declining
18
Business Climate
Economic Development Foundation of 19
Business Climate When analyzing the business climate of the 58 respondents in the community, the Economic Development Foundation found an interesting paradox. The workforce was identified as both a dominant strength and weakness. While the work quality and ethic is the dominant strength, labor shortage was the dominant weakness. In fact, when asked what the city could do to make the business more successful, the strongest response was to help increase and promote the workforce. Respondents felt that the city is a positive influence, but that the city government should work to lower taxes, lower utility rates, and be more business friendly. While the respondents felt that there were key points that the city could improve upon, many felt that these same points were not constraining business. Strong points about doing business in Brenham 14
10 8 6 4 2 0
Work Quality/Ethic
Location
Small town character
Quality of Life
Growth
Low Crime
Business friendly
Weak points about doing business in Brenham 25
Frequency of Response
Frequency of Response
12
20 15 10 5 0
Labor Shortage
City government
Cost of housing (lack of low cost housing)
High taxes
20
Wages are low
Shipping (no late or weekend pick up)
Electricity Brownouts (Bluebonnet electric)
Growing too fast/lack planning
Business Climate What could the city do to make your business more successful? 6
Frequency of Response
5 4 3 2 1 0
Work to City is a positive increase/promote influence and doing workforce a great job
Lower taxes
Lower utility rates (sewer and gas)
Work to be more business friendly
Wages are not in proper ratio with housing costs
Are there any local constraints to your business, such as transportation, regulations, infrastructure, utilities, etc.? 12
Frequency of Response
10 8 6 4 2 0 None
City Utilities
Bluebonnet Electric (power outages are numerous, "brown outs")
21
Shipping (Major carriers (Fed-Ex & UPS do not have night and weekend pick up)
No Public transportation
Workforce
Economic Development Foundation of 22
Workforce While analyzing the data for the entire survey, no data set became more dominant than that of the local workforce. The local workforce has proven essential in the past expansions and current growth plans of the 58 responding companies. A majority of the workforce is in a position considered “skilled” by the employer. Most employers felt that the workforce promotes their growth, but it has recently begun to hinder growth due to a lack of hirable workforce. According to most business owners, the lack of a hirable workforce is due to the low unemployment rate and generational differences in the youth. For this reason, most businesses felt that public schools and other training resources are not providing sufficient business and workforce training. When asked what skills are needed by high school graduates, the top response was “Work Ethic”. Of your current employees, how many are: skilled, semi-skilled, and unskilled?
22% Skilled
48%
Semi-Skilled
Unskilled
30%
Does the local workforce inhibit of promote your growth?
Frequency of Response
12 10 8 6 4 2 0 Promotes
Inhibits
23
Both (Promotes-great workforce; Inhibits-lack of workforce)
Workforce
Are the public schools and other workforce training programs providing local students with sufficient business/workforce training?
33%
67%
Yes
No
What skills are needed by high school grads?
Frequency of Response
7 6 5 4 3 2 1 0
Work Ethics
Customer service skills
Communication
24
Basic math
Computer skills
Workforce training
Opportunity For Business Growth
Economic Development Foundation of 25
Opportunity For Business Growth We found that, of the 58 respondents, the opportunities of growth are directly affected by the influx of business, real estate market, and workforce. While it would improve most businesses to have a key supplier located in the community, the majority felt that they do not have the purchasing clout to encourage a relocation of the supplier. When surveyed about what new business was needed in the community, the responses followed the trend of most communities with restaurants and retail topping the list.
Frequency of Response
What, if anything, would need to happen for you to expand operations in the community? 6 5 4 3 2 1 0
More business
More space
Willing to grow, but workforce availability is hindering growth
Currrently growing/expanding
Increase business friendly environment
Would it improve your business if any of your key suppliers were located in Brenham?
38%
62%
Yes
No
26
Opportunity For Business Growth Do you have the purchasing clout to encourage those suppliers to locate here?
33%
67%
The environment is not conducive/do not have purchasing clout
Yes
27
Retirement community
Affordable Housing ($80,000$150,000)
Nothing
Academy
Target
Retail clothing/shoes
Retail
12 10 8 6 4 2 0 Restaurants
Frequency of Response
What sort of new business and industry would you say is needed in Brenham?
Utilities
Economic Development Foundation of 28
Utilities The data used for the utilities section is only the data received from the 33 respondents of the online version of the survey. The overall rating regarding utilities in the community was “excellent” to “good.” The cost of all of the utilities tended to receive the most negative responses. Wastewater cost was the only data set that received a small percentage response of “poor,” with the largest response of Telephone cost being “fair.” Overall, the physical infrastructure of the community is rated as a positive.
Utilities represent about what percent of your cost structure?* Percentage
80 60 40 20 0
Electric
Natural Gas
Water/ Wastewater
Telephone
Rate Current Utility Performance: Telecommunications/Internet* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Electricity* Quality Excellent
Capacity
Good Fair
Reliability
Poor
Cost 0%
20%
* Data is from online survey only
40%
60%
29
80%
100%
Utilities Rate Current Utility Performance: Water/Wastewater* Quality Excellent
Capacity
Good Fair
Reliability
Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Natural Gas* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
40%
60%
80%
100%
Rate Current Utility Performance: Telephone* Quality Excellent
Capacity
Good
Reliability
Fair Poor
Cost 0%
20%
* Data is from online survey only
40%
60%
30
80%
100%
