INTRODUCTION
TLH & Associates, LLC and the Major County Economic Development Authority have created a Existing Industry Survey for evaluating the Major County business environment. The results and recommendations extrapolated from the survey instrument are intended to assist TLH and the Major County Economic Development Authority in developing long-range business retention and expansion planning for the Major County business community.
TLH modified an existing survey, visited each business personally, compiled the data, produced the statistical analysis and printed the final report.
Although the report identifies and summarizes the responses of the selected business establishments, it also identifies many issues reflective of the community and the local business environment. While the study is a highly beneficial Economic Development tool for targeting local business expansion efforts, it also identifies “red flag” issues of firms who are experiencing problems and require information and/or assistance.
These “red flag” issues are being addresses by TLH, Career Tech and the Oklahoma Department of Commerce. The requested information needed by these businesses was secured at the Oklahoma Department of Commerce and delivered by the Major County Economic Development Authority. Training questions have been handled by Career Tech, marketing questions have been referred to the Oklahoma Department of Commerce and financing assistance has been provided by TLH.
Major County Business Retention and Expansion Program
Participating Companies
Allied Custom Gypsum
Bramco
Classy Wood Products, Etc.
Fairview Fellowship Home
GRK Enterprises
Grothe Steel
KC Montgomery Photographics
Mabar Inc.
Martens Machine Shop
Martens Manufacturing
Mobile Products, Inc.
Progressive Windows
Red Cedar Creations
Safety Kleen
United States Gypsum Co.
GENERAL BUSINESS INFORMATION
· 67% of all survey respondents reported that their current business location was their headquarters.
· Those responding that this business location was not their headquarters listed their company’s headquarters as follows:
· 40% within the state
· 60% outside the state
· None residing outside the country
· The majority of respondents listed their type of business as corporation (73%). The remainders are sole proprietorships (27%).
· 80% of the businesses surveyed originated within Major County. The other origins are:
· 33% within the county
· 67% within the state
Business Established
· Businesses were asked to select factors which explained their company’s location choice: (multiple responses were possible; total responses displayed)
· Clearly, “Community” and “Family/Convenient to Residence” are the most important factors for either choosing or maintaining this location.
· The six most significant areas or factors which businesses plan to focus on within the next 5 years in order to remain competitive are: (Multiple responses were possible)
· New Market Development - 53%
· Add/Change Product Line – 40%
· New Product R & D – 27%
· Expansion in Workforce – 27%
· Workforce Skill Development – 14%
· Quality Assurance – 14%
MARKETS
· Most competitors are located elsewhere in the United States. (53%)
· The balance of the competitors were either located locally (7%) or regionally within the State (40%).
· The six most significant factors likely to have a major impact on profits during the next 5 years are: (Multiple responses are possible)
· Energy Costs – 53%
· Raw Material Costs – 40%
· Workers Compensation Rates – 33%
· Health Care Costs – 33%
· Labor Force Skills – 33%
· Taxes – 27%
· The factor identified as having little or no impact (less than 3%) on profits was “Defense Spending”.
· 33% of businesses surveyed export their products or services internationally.
· Respondents were asked to describe their expectations of next year’s sales.
· 67% expect their sales to be higher. Average gain predicted is 20%.
· 20% expect their sales to fall. Average fall predicted is 12%.
· 13% expect their sales to remain unchanged.
· 53% of respondents surveyed stated they are currently involved in government contracting or are in a program to bid for government contracts.
Historical Sales
PURCHASES: PRODUCTS, SUPPLIES AND SERVICES
Location of Respondents’ Primary Purchase or Service Requirements
Reasons Respondents Purchase Products Outside the Community
Primary Sources of Energy for Business
· 100% of the businesses surveyed use trucking as a means of transport for their supplies and service requirements; 13% use additional transportation i.e. rail, UPS, Federal Express, RPS, postal service and common carrier.
· 100% of all businesses would be interested in buying products locally if they were available.
· Respondents listed the following type of businesses they would like to see locate in their area:
· Lumber Wholesaler
· Welding Supplies
· Hydraulics
· Tool Boxes
· Steel Wholesaler
· Hose Company
· Pallets
· Bearings
· Vinyl Extruder
· Glass Company
· Re-Agents
· Cement Kiln
· Manufactured Housing
EXPANSION/RETENTION AND ASSISTANCE
· Respondents were asked what factors were advantageous or discouraging when considering remaining, expanding or relocating in this area:
· 67% of businesses surveyed responded that they were considering expanding in this area within the next two years.
· 27% responded that they were not considering expansion.
· 7% were not sure of their expansion plans.
· Those that responded that they may expand locally within two years described the type of expansion as follows:
· Additional Location – 2
· More Floor Space – 6
· New Product Line/Service – 6
· Expanded Workforce – 7
· New Building on Site – 7
· The majority (86%) of companies stated that they are currently in possession of sufficient property to allow for expansion.
· 40% of respondent’s desire help with their expansion plans. Four respondents want direct assistance, while the remainders are seeking information only.
· 86% of businesses have no plans to move or relocate their establishment within the next three years. 13% plan to relocate within three years.
· Of those that plan to relocate within the next three years, the most significant factor/reason given was “Inadequacy of Building”.
· All those planning to relocate within the next three years plan to relocate within the community.
Opinion of Assistance from Various Agencies
SBA – Small Business Administration
SBDC – Small Business Development Center
JTPA – Job Training Partnership Act
SSPD – Sub-State Planning District (Council of Governments)
ODEQ – Oklahoma Department of Environmental Quality
ODOC – Oklahoma Department of Commerce
OESC – Oklahoma Employment Security Commission
· The majority of businesses surveyed either had no contact or no opinion of the above listed organizations.
EMPLOYMENT
· The five most significant factors impacting employment within the last three years (negatively and positively):
· Sales (Highest)
· Market Share
· New Markets
· New Product
· Does Not Apply
· The three least significant factors impacting employment within the last three years (negatively and positively):
· Defense Dependence
· Renovation
· Competition
· The largest increase in employment according to those surveyed will occur in production/construction occupations (142 employees).
· 33% of employers responded that they have trouble recruiting and retaining employees. 20% responded that their main difficulty was with recruitment, while 7% stated their only trouble was with retention. 40% stated they have neither a problem with recruitment or retention.
· Most businesses (80%) have not had to go outside the State or the U.S. to recruit employees due to a lack of qualified labor pool.
· Those businesses that have gone outside the state or U.S. were seeking specific technical skills.
· 67% of respondents have hired temporary employees.
Employee Skill Deficiencies for Employers with Difficulty Recruiting and/or Retaining
· Businesses responded to their participation level in educational/training programs available in the following areas:
· Direct assistance was requested on Vocational Classroom Training, and that information was provided to CareerTech for assistance. 20% of respondents asked for direct assistance.
· 40% of respondents currently administer no training programs.
· 67% of businesses indicated that they anticipate additional training needs.
· Respondents indicating future training needs listed the following types of training necessary:
· Industry Product Updates
· OSHA Safety Training, Equipment and Electrical
· Mining
· First Aid
· New Technology
· Advanced Graphic Arts
· Training programs businesses would like to see offered within the community that are not currently available:
· Real World Training
· Good Work Ethics
· Truck Driving
· Truck Maintenance
· Hazardous Materials Training
· Safety Programs
· LPN and RN Training
· Skills Training
· Hydraulics
LOCAL ISSUES
· Respondents rated services and facilities within the community relating to their adequacy for current business needs:
· 47% of respondents who felt that one or more of the community services were inadequate have not contacted the community about the problem.
· 33% of respondents that have contacted the community about a problem felt officials made an effort to solve the problem.
· Problems Solved (Number of Cases)
Yes – 0
No – 1
Pending – 6
· 53% of businesses have sewer service.
· 100% of respondents on community sewer service are satisfied with the level/quality of service they are currently receiving.
· Of businesses not on community sewer service, 3 would support a sewer project.
· The majority of respondents (86%) are not experiencing any parking problems that would affect employees or customers.
· 93% of those surveyed do not think that existing major street problems could impact their business.
· The majority (80%) of experiences with the Planning Board or the Board of Appeals were marked as “Not Applicable.” 20% marked their experience as “Good” or “Excellent”.
· 93% of businesses believe current zoning laws, as they apply to their locations, do not need to be revised.
· 86% of businesses also feel that zoning laws regarding signage do not need to be revised.
· Remarks on how the City and Chamber could better service community businesses are as follows:
· Provide job listings on the Chamber website, Jobnet.
· Fix electrical problems, brownouts and power outages.
· Need new electrical equipment.
· Fix and upgrade the looks of the town.
· Excellent Service from Mark Stubsten, gets results.
· Help with more commerce.
· Better Electrical Service from the City, equipment and employees, address electrical problems promptly.
· Good City Services
· Keep Infrastructure up
· Chamber needs to view big picture to support business and needs State help.
· Provide opportunities for assistance such as grants, loans and financial assistance.
· The State needs to recognize that we are here.
· The Chamber is not retail and not local.
· The City needs to be pro-business with timely decisions and actions.
Respondents were given the opportunity to ask any general questions, or make any statements they wished concerning Fairview and Major County, or comments concerning the community in general. These comments are reflective of individual opinions only.
· Schools need to focus on studies, not sports.
· Fairview set in ways, does not want to change.
· Work to retain industry.
· Recruit new industry.
· Need more industry.
· Pleased with Mark Stubsten and the Major County Commissioners.
· The Major County group is good.
· This is an excellent place to live.
Municipal Government/Education Agencies Performance
(In number of responses)
Community Rated from a Business Point of View
