TLH & Associates, LLC and the Hobart Industries Inc. have created an Existing Industry Survey for evaluating the Hobart business environment. The results and recommendations extrapolated from the survey instrument are intended to assist TLH and the Hobart Industries Inc. in developing long-range business retention and expansion planning for the Hobart 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 addressed 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 TLH. 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.
HOBART
BUSINESS & EXPANSION PROGRAM
PARTICIPATING COMPANIES
Chicago Rawhide
Duty Packers
Heatherington Specialties
Highland Supply Corporation
Jumper Custom Saddlery
Polymeric Pipe Technology Corp.
Tools and Troubleshooting Inc.
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· 72% 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:
· 0% within the state
· 100% outside the state
· None residing outside the country
· The majority of respondents listed their type of business as corporation (86%). The remainders are sole proprietorships (14%).
· 57% of the businesses surveyed originated within Hobart. The other origins are:
· 15% within the county
· 28% outside of the state
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Business Established |
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| Less than 1 year | 1 to 3 years | 4 to 5 years | 6 to 10 years | 11-50 years | over 50 years |
| 0% | 0% | 0% | 14% | 72% | 14% |
Businesses were asked to select factors which
explained their company’s location choice: (multiple responses were
possible; total responses displayed)
Clearly, “Community”, “Family/Convenient to Residence” and “Cost” are the most important factors for either choosing or maintaining this location.
| Expansion | 0 | Cost | 3 |
| Purchased Business | 0 | Family/Convenient | 3 |
| Access to Markets | 0 | Access to Suppliers | 0 |
| Taxes | 0 | Labor Availability | 1 |
| Incentives | 1 | Desirable Land/Building | 2 |
| Community | 4 |
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)
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· Most competitors are located elsewhere in the United States. (57%)
· The balance of the competitors were either located in the rest of the state (28%) or outside of the country (14%).
· The six most significant factors likely to have a major impact on profits during the next 5 years are: (Multiple responses are possible)
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· The factor identified as having little or no impact (less than 3%) on profits was “Defense Spending”, “Export Opportunities”, “Domestic Competition”, “Taxes”, and “Raw Material Shortages”.
· 57% of businesses surveyed export their products or services internationally.
· Respondents were asked to describe their expectations of next year’s sales.
· 57% expect their sales to be higher. Average gain predicted is 10%.
· 14% expect their sales to fall. Average fall predicted is 2%.
· 28% expect their sales to remain unchanged.
· 14% of respondents surveyed stated they are currently involved in government contracting or are in a program to bid for government contracts.
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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; 15% use additional transportation i.e. rail, UPS, Federal
Express, RPS, postal service and common carrier.
86% 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:
• Corrugated Boxes
• Leather Maker
• Air Cylinders
• Air Valves
• Steel Vendor
• Aluminum Vendor
• Corrugated Boxes
• Maintenance Supplies
• Industrial Supplies
• Industrial Equipment Repairs
• Respondents were asked what factors were advantageous or discouraging when considering remaining, expanding or relocating in this area:
• 44% of businesses surveyed responded that they were considering expanding in this area within the next two years.
• 28% responded that they were not considering expansion. • 28% 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 – 0
• More Floor Space – 2
• New Product Line/Service – 2
• Expanded Workforce – 2
• New Building on Site – 0
• The majority (86%) of companies stated that they are currently in possession of sufficient property to allow for expansion.
• 33% of respondent’s desire help with their expansion plans. One respondent wants direct assistance, while the remainders are not seeking any assistance with their expansion plans.
• 86% of businesses have no plans to move or relocate their establishment within the next three years, 14% are not sure.
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.
For employment assistance, 43% of all businesses surveyed requested no information and 57% requested information in the following areas. Packets of information covering the appropriate areas have been provided to every business that requested information and assistance.
OSHA
Job Training, Retraining and Upgrading Assistance
Workers Compensation
Environmental Regulation (Solid Waste)
Public Efficiency
Capital
New Location
Marketing
• The five most significant factors impacting employment within the last three years (negatively and positively):
• Sales
• Market Share
• Does Not Apply
• The three least significant factors impacting employment within the last three
years (negatively and positively):
• Defense Dependence
• Renovation
• Competition
• Technology
• Management
• Subcontracting
• The largest increase in employment according to those surveyed will occur in production/construction occupations (8 employees).
• 43% of employers responded that they have trouble recruiting and retaining employees. 14% responded that their main difficulty was with recruitment, while 0% stated their only trouble was with retention. 43% stated they have neither a problem with recruitment or retention.
• Most businesses (86%) 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.
• 100% 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.
• 28% of respondents currently administer no training programs.
• 43% of businesses indicated that they anticipate additional training needs.
EMPLOYMENT
• Respondents indicating future training needs listed the following types of training necessary:
• OSHA Safety Training, Equipment and Electrical
• English Training for foreign speaking employees
• Job Etiquette
• Hazardous Material Training
• Training programs businesses would like to see offered within the community that are not currently available:
• Industrial Maintenance
• Engineering
• Hydraulics
• Pneumatics
• Electrical Controls
• Leather craft
• Hazardous Materials Training
• Safety Programs
• Respondents rated services and facilities within the community relating to their adequacy for current business needs:
• 43% of respondents who felt that one or more of the community services were inadequate have not contacted the community about the problem.
• 100% 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 – 1
No – 0
Pending – 3
• 86% 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, one would not support a sewer project.
• The majority of respondents (100%) are not experiencing any parking problems that would affect employees or customers.
• 100% of those surveyed do not think that existing major street problems could impact their business.
• The majority (71%) of experiences with the Planning Board or the Board of Appeals were marked as “Not Applicable.” 29% marked their experience as “Excellent”.
• 100% of businesses believe current zoning laws, as they apply to their locations, do not need to be revised.
• 100% 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:
• Develop a good working relationship with businesses
• Work to control the drug and alcohol problem in the area
• Try to lure new working people (younger generation & technical) to the area
• Provide joint advertising for the community
• Fix and upgrade the looks of the town
• Create Goodwill
• Bring more customers into the area
• Take interest in my business
Respondents were given the opportunity to ask any general questions, or make any statements they wished concerning Hobart, or comments concerning the community in general. These comments are reflective of individual opinions only.
• Recruit new industry
• Develop a theme (perhaps “1901”, then be open on Saturday and have a reason for people to come to town on a Saturday and Saturday Evening)
• This is an excellent place to live.
Municipal
Government/Education Agencies Performance
(In number of responses)
Community Rated from a Business Point of View
CONCLUSIONS AND RECOMMENDED ACTIONS
The primary goal of the Hobart Industries Incorporated Existing Industry Survey (EIS) is to identify local business needs and link appropriate resources to meet those needs. Listed below are inclusive issues, which should be addressed in order for Hobart to become more proactive in its approach to meeting the economic development needs of the business community. Hobart EIS issues will be listed along with an action plan statement, which will address the appropriate resources and work plan for business retention and expansion concerns identified by the businesses included in the survey.
As indicated on page 6 of the Hobart EIS Final Report, New Market Development was identified by 57% of the respondents as a significant area in which their businesses plan to focus their efforts over the next 5 years. This topic follows along with a subsequent section on recommendations concerning adding/changing product lines and new product development. However, the following recommendations should serve as a starting point for developing assistance aimed at addressing these concerns.
Compile a list of trade shows, which correlate
to the businesses expressing a desire to expand. This information should
be cataloged and made available to the business community. Dates and
locations of the trade shows should be published in the local Hobart
Industries newsletter for upcoming events. Additionally, membership in
industry associations can be advantageous in fostering networking
opportunities and industry specific training for developing new markets.
Assistance in compiling a list of appropriate
trade shows and identifying the best possible shows to attend can be
coordinated through the Oklahoma Department of Commerce.
Develop an Industrial Roundtable. The
purpose of the Roundtable is to encourage more discussion and share
information about market development. Roundtables can be divided by
industry sector to ensure that the market development needs of specific
business sectors will be addressed.
Any discussion of new market development should
include elements relating to a broad range of product marketing for the
business. Currently, a myriad of opportunities to expand markets exists
using the Internet. This medium can provide exposure to both domestic
and international markets whether through the development of a web page
designed by a private consultant, or through a community effort and linked to
the community’s web page.
New market development assistance for manufacturing concerns within the Hobart business community should be coordinated through the Manufacturing Extension Partnership (MEPs) Broker/Agents working through the Oklahoma Alliance for Manufacturing Excellence (OAME). This organization’s primary mission is to work with manufacturers in a variety of areas, including market expansion and technical assistance. More information and contact assistance is available through the OAME web site at www.okalliance.com. This site contains links to OAME manufacturing partners, service providers, sponsors, broker agents and industry specialists. The Alliance Broker Agents can provide assistance in developing and researching new markets for manufacturers.
Contact:
Dr. Roy Peters
President and CEO of
OAME
525 South Main, Suite 210
Tulsa, OK 74103
Phone: 918-592-0722
Fax: 918-592-1417
E-mail:
[email protected]
Add/Change Product Line and Quality Assurance
Manufacturing firms wishing to explore opportunities to add new product lines through the use of technology transfer should contact the University of Oklahoma Center for Business and Economic Development (CBED). The OU University Center is an affiliate of the Mid-continent Technology Transfer Center (MCTTC) located within the Technology and Economic Development Division of the Texas Engineering Extension Service at Texas A&M University. Technology Transfer is an excellent way of introducing new and Complimentary products to a manufacturer’s existing line without the overhead associated with research and development activities. MCTTC is a NASA Regional Technology Transfer Center (RTTC) which disseminates NASA and Federal Laboratory technology opportunities and assists firms with applications to license their products. The MCTTC web address is www.mcttc.com.
The Oklahoma Technology Commercialization Center (WWW.OTCC.ORG) works with Oklahoma companies, inventors, researchers and entrepreneurs to turn technological innovations into exceptional business opportunities for Oklahoma. They provide statewide access to the specialized business development services that are required to take new technologies from concept to market. They also work closely with technology development, technology transfer and economic development professionals in both the public and private sectors to expand the technology base in Oklahoma.
Services provided through the Center include:
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Technology assessments and technical
concept analysis
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Engineering, testing and prototype
development
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Market research and analysis
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Economic feasibility studies
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Development of strategic marketing
plans
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Development of strategic business
plans
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Access to early stage risk capital
Contact: Mel James
Director of Commercial Development
840 Research Parkway, Suite 250
Oklahoma City, OK 73104
1-800-377-OTCC
E-mail:
[email protected]
Expansion / Retention and Assistance
Contact: Kevin Intemann
Western Technology Center
1000 S. Bailey Street
Hobart, OK 73651
580-726-8400 Ext. 225
Fax: 580-726-8470
E-mail:
[email protected]
Opinion of Assistance From Various Agencies
Other than the local Career-Tech and the Hobart Chamber of Commerce, the majority of businesses surveyed indicated that they had no opinion of the public service providers or organizations listed in the survey (SBA, SBDC, JTPA, SSPD, ODEQ, ODOC, OESC, etc.). The following steps are recommended to develop a marketing and informational program to increase contact with local service providers to interface with the business community.
· Utilize the Hobart Industries Incorporated to sponsor an informational session for local businesses, which will introduce them to public sector service providers and their programs. The meeting would originate through the identified local leadership groups, who would identify the appropriate service providers to present programmatic information to local businesses. Following identification of the survey respondents who indicated “no opinion” or “poor” rating to this survey question, a determination should be made of the businesses that would be amenable to a meeting of this type. The sessions should encourage discussion and share information about topics set by the businesses themselves. Discussions should lead to specific action items to improve the operating environment for these businesses. Participants for the session should consist of business leaders, as well as representatives from educational organizations and public sector service providers. The local leadership should schedule the forum, which will highlight public sector service providers, on a panel format, for presentations to private sector business owners and selected staff members. Each organization should speak for 15 minutes and provide appropriate handout/marketing materials.
Business Retention and Expansion Follow-up
44% of the businesses responding to the survey plan to expand locally within the next two years. It will be extremely important for the Hobart Industries Incorporated to facilitate the climate for these planned expansions and maintain a proactive approach to development. Recommendations include the following:
· One-on-one meeting with each business who has identified an expansion effort.
· Provide information packets, which detail specific programs/agencies who can assist with the expansion/retention plans.
· Follow up with businesses on a timely and regular basis.
· Involve local and state agencies in developing expansion/retention plans.
The majority of responses in the EIS indicate a positive business climate in Hobart. The survey revealed that even with a depressed economy, 44% of respondents have expansion plans within the next two years, and 57% expect next year’s sales figures to be higher. 28% of surveyed businesses expect increased employment over the next three years. The highest increase will be in production/construction with an estimated 8 new employees over the next three years. Conversely, no businesses indicated that they would either be closing, downsizing or relocating. These figures, when coupled with their plans to remain in the Hobart area, indicate a favorably perceived business climate in the community. When queried on community services and facilities, responses from Hobart businesses indicate satisfaction for their current business needs. Furthermore, findings from the Local Issues section indicate an overwhelming endorsement of quality of life factors in the community. The implication of these statistics should prove to be a great recruiting tool in which to bring new and complimentary businesses to Hobart and Kiowa County.
Currently, one Hobart Company is involved in a joint venture with a foreign partner to license or market products internationally.
One of the primary purposes in conducting an EIS is to identify future opportunities for growth/spin-offs in the business sector of the community. In the survey category which queries reasons for business purchases outside the community, the primary response listed (86%) was that products sought by business were not available; however, 86% indicated that they would prefer to buy locally. This clearly indicates that opportunities exist in Hobart for entrepreneurial business start-ups, which address products currently sought but which are not being produced locally. Respondents in the Local Issues section of this report list several ideas. Local assistance in identifying firms or helping expanding firms create/produce products locally could be used as an internal means of business expansion. The concept of growing communities from the inside out offers two obvious advantages. It decreases the community’s dependence on recruitment as their sole means of economic development expansion, and it is in itself a recruiting tool, making the existing business mix more complimentary for companies wishing to relocate. Additionally, the internal generation of new businesses carries the same upside as recruiting, namely increased employment and expansion of the local tax base.
Given the preference of local businesses to purchase products and supplies locally, a working partnership with higher education service providers should be explored to structure and deliver entrepreneurial training for aspiring business owners. The list of business types identified by survey respondents, which appears on page 10 of the EIS, should serve as a starting point for this activity.
One area of concern resulting from the survey was the reluctance of businesses to seek assistance in their planned business expansions, (33%). This indicates companies are either protecting proprietary information or that they are unaware, or unwilling to seek assistance from the public sector. The positive side is that these attitudes could be changed through a concerted effort on the part of the community to work more closely with business and bring in service providers appropriate to the situation. The opinions of the businesses on the various agencies, which could provide assistance, indicate unfamiliarity with the majority of providers. The numbers listed for these agencies under the category of “No Opinion” speaks for itself concerning this issue. The suggestion here is to organize a meeting of service providers sponsored jointly by ODOC and Hobart Industries Incorporated.
One of the major categories queried, concerning labor issues, indicated that local firms find labor availability discouraging in their retention and expansion efforts. 57% responded that they are experiencing difficulty in recruiting and retaining employees. Of that 57%, 25% stated that their primary difficulty was with recruitment, 75% stated that they have problems with recruiting and retaining. The employment section of the EIS also revealed that 28% of businesses responding to the survey indicated that they currently administer no training programs, while 43% stated that they anticipate additional training needs. These results indicate that workforce development issues need to be addressed in the community.
Overall, the most positive statistic in the survey indicates that the vast majority of respondents are not considering relocation. Moreover, 28% expect an increase in their employment over the next three years, with the largest increase predicted in the production/construction occupations with 8 new jobs expected. This figure is positive and directly reflects the health of the local businesses and overall economic stability and growth in the community. These findings should be extremely helpful for local community planning analysis and suggest future infrastructure needs to accommodate growth.
In closing, it should be pointed out that this survey was conducted after the September 11 attacks in New York City and Washington D.C. As such, businesses responses to future projected sales, growth, and expansion do take the present business climate into effect. Beyond that, it is important to remember that each business has its own set of needs to remain competitive a viable in their respective market places. As strategies are devised on the local level to enhance business retention and expansion efforts, care should be taken to acquire an understanding of each unique business and their specific needs regarding growth.
It is always encouraging to review a highly successful EIS such as the one conducted for Hobart. The attitude of the respondents indicates a good degree of satisfaction with the community, not only as a place to do business, but also as a favorable place to live.