1. San Fernando Valley Business Needs Survey The Rose Institute of State and Local Government Claremont McKenna College March 28, 2002

2. About the Survey This survey is intended to gauge business conditions and attitudes in the San Fernando Valley. This survey is intended to gauge business conditions and attitudes in the San Fernando Valley. A representative sample of 586 businesses (taken from a list of 5400 provided by the Economic Alliance of San Fernando Valley) responded to the survey. A representative sample of 586 businesses (taken from a list of 5400 provided by the Economic Alliance of San Fernando Valley) responded to the survey. Most businesses responded to direct telephone interviews, although in rare instances (less than 10%), businesses chose to respond to a written questionnaire. Most businesses responded to direct telephone interviews, although in rare instances (less than 10%), businesses chose to respond to a written questionnaire. Slide 2

3. Average Business Respondent in the San Fernando Valley Founded in the early 1970s Founded in the early 1970s Moved to its current location in the late 1980s Moved to its current location in the late 1980s Corporation involved in either the service or manufacturing sector Corporation involved in either the service or manufacturing sector Leasing an office/commercial facility Leasing an office/commercial facility Headquartered in the San Fernando Valley Headquartered in the San Fernando Valley Sells their products within the San Fernando Valley and Southern California Sells their products within the San Fernando Valley and Southern California Profile of Business Respondents Slide 3

4. Type of Organization An overwhelming majority of businesses identified themselves as corporations Profile of Business Respondents Slide 4

5. Primary Work of Business Most businesses are involved in either the service or manufacturing sector Profile of Business Respondents Slide 5

6. Which of the Following Best Describes Your Facility? 60% of businesses that described their business as being industrial said that their productions lines were not being used to capacity 54% of business were located in single- tenant facilities Profile of Business Respondents Slide 6

7. Business Surveyed (By Area) Proportional to the sample provided by the Economic Alliance of SFV Profile of Business Respondents Slide 7

8. Where Do You Sell Your Products/Services? Profile of Business Respondents Slide 8

9. Personnel Issues 77% of businesses were able to recruit skilled labor locally 77% of businesses were able to recruit skilled labor locally Only 29% of businesses recruited nationally, and 10% recruited internationally Only 29% of businesses recruited nationally, and 10% recruited internationally Generally, businesses did not see the educational system, a lack of affordable housing, or a long commute as major deterrents to attracting workers Generally, businesses did not see the educational system, a lack of affordable housing, or a long commute as major deterrents to attracting workers Of those businesses who were unable to attract skilled local labor, 49% cited a simple lack of the availability of such labor Of those businesses who were unable to attract skilled local labor, 49% cited a simple lack of the availability of such labor Most employees live and work in the San Fernando Valley Most employees live and work in the San Fernando Valley Slide 9

10. Average Number of Employees Who Are Full time, Part time, Temporary or on Lease Now Personnel Issues Slide 10

11. Average Number of Predicted Employees Who Will Be Full Time, Part Time, Temporary, or on Lease Two Years From Now Businesses predict that 73% of their new employees will be skilled 65% will have customized training Personnel Issues Slide 11

12. Deterrents to Attracting Workers Most businesses did not see any of these issues as major deterrents to attracting workers Personnel Issues Slide 12

13. Why Were You Unable to Attract Skilled Labor? (Of those who said they could not find such labor locally) Personnel Issues Slide 13

14. What Do You Use to Recruit Employees? Of the businesses that recruit from colleges and universities, 68% recruit from community colleges, 63% specifically from Cal State Northridge, and 62% from other universities Personnel Issues Slide 14

15. Business Environment Despite demographic changes in the Valley, only 24% of businesses said they wanted more information about such trends Despite demographic changes in the Valley, only 24% of businesses said they wanted more information about such trends Only 7% of businesses were aware of the Valley of the Stars regional marketing program, but the 7% had a very positive image of the program Only 7% of businesses were aware of the Valley of the Stars regional marketing program, but the 7% had a very positive image of the program Awareness of and membership in local agencies is also low Awareness of and membership in local agencies is also low If given the choice again, 74% of businesses would choose the San Fernando Valley as the location for their business If given the choice again, 74% of businesses would choose the San Fernando Valley as the location for their business Slide 15

16. Demographics Only 8% said ethnic change was an important demographic trend for their company Only 8% said ethnic change was an important demographic trend for their company Of the 18% of businesses using demographic data to make business decisions, 58% use it for marketing and sales decisions, and 18% obtain their data from various government agencies Of the 18% of businesses using demographic data to make business decisions, 58% use it for marketing and sales decisions, and 18% obtain their data from various government agencies Business Environment Slide 16

17. Importance of Services or Information From Local Government and Institutions Business Environment Slide 17

18. Familiarity With Local Agencies Of the 73% of businesses who were familiar with their Local Chamber of Commerce, only 26% were members Business Environment Slide 18

19. If You Were Choosing a Location For Your Business, Would You Choose the San Fernando Valley? Business Environment Slide 19

20. Why Would You Choose the San Fernando Valley For Your Business? Business Environment Slide 20

21. Growth Issues Most businesses (54%) are not currently expanding Most businesses (54%) are not currently expanding 61% of businesses are not considering expansion, and 78% are not considering a relocation 61% of businesses are not considering expansion, and 78% are not considering a relocation 55% of businesses said their facility is currently being used to capacity 55% of businesses said their facility is currently being used to capacity Of the businesses who are planning to expand or relocate, 44% cited a lack of space as their reason Of the businesses who are planning to expand or relocate, 44% cited a lack of space as their reason Slide 21

22. Is Your Business Currently Expanding? Growth Issues Slide 22

23. Deterrents to Expansion Most businesses did not see any of these factors as deterrents to expansion Growth Issues Slide 23

24. Significant Investments in Equipment or Capital Improvements 72% of the companies who previously made significant investments, plan to do so again within the next 3 years Growth Issues Slide 24

25. September 11 Effects Growth Issues Slide 25