2013 Business, Retention and Expansion Survey Report EXECUTIVE SUMMARY In May 2013, the Wichita Falls Chamber of Commerce and Industry sent out a Business, Retention and Expansion Survey to 18 major manufacturing employers in and around the Wichita Falls, Texas proximity. After receiving 14 surveys, the results reveal the following four points:
Area manufacturers heavily favor the Wichita Falls area for conducting business. Manufacturers strongly suggest that the top three Wichita Falls area assets are schools (K-12), ease of commuting and health services. The C-level corporate decision-makers have a strong favorable opinion regarding their relationship to the Wichita Falls area. Some do not have an opinion either way and some do not have a favorable opinion. The Chamber is focusing on improvement with these entities. Area manufacturers are forecasting growth from 2013 through 2015. Our major manufacturers overall see demand growing which will impact growth revenue, profits with some increase in hiring. Five area manufacturers are considering expansion. Those considering expansion are looking at improved processes, increased floor space, new product lines, purchasing machinery and equipment, and maximizing capacity.
There are three areas of improvement for the Wichita Falls area manufacturers. These areas of concern include: The leadership of major manufacturers seeks long-term strategies to recruit and retain white-collar talent to Wichita Falls. The water shortage is seen as an important concern suggesting the need for long-term solution for current and prospective manufacturers. The major manufacturers suggest a comprehensive long-term strategy of business attraction is important to the economic health of Wichita Falls. While this report gives us insight into the leanings of our major manufacturers, it gives the Chamber a case-by-case evaluation of their individual responses. This gives us an advantage to meet with each employer and discuss concerns requiring individually specific solutions. THANK YOU! The Wichita Falls Chamber of Commerce and Industry thanks each of these major manufacturers for their candid and transparent responses.
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2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
2013 Business, Retention and Expansion Survey Full Report Highlights The Wichita Falls Chamber of Commerce and Industry’s Business, Retention and Expansion Survey requests answers to questions according to the following eight categories: A) B) C) D) E) F) G) H)
Local Environment Your Business Your Markets Employees Business Plans & Decisions You and Business Support Services Your Competitive Advantage Your Corporate Governance
Reporting details to every response could make for a lengthy report and lose the attention of the reader. This report highlights information important to the leadership of our major manufacturers, Chamber Board, Chamber Membership, The City of Wichita Falls and to the public in general. In the spirit of confidentiality and transparency, this report conveys results of the group rather than individual results of each manufacturer. These manufacturers offer important responses; therefore, we wish to respect their confidentiality while assessing the larger picture of overall corporate health and well-being of employers and the broader Wichita Falls area community. The following major manufacturers did complete the 2013 Large Employer Business, Retention and Expansion Survey (alphabetical order): Company Arrow MP Cryovac – Iowa Park Cryovac – Wichita Falls Kalco Machining Magic Aire National Oil Varco Peerless Manufacturing PPG Pratt & Whitney Sharp Iron TRC Recreation Tranter WPT Power Corporation Wichita Clutch
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Type OEM Manufacturer End Producer End Producer OEM Manufacturer End Producer End Producer End Producer End Producer Refurbishment OEM Manufacturer End Producer End Producer End Producer End Producer
Structure Headquarters Subsidiary Division Headquarters Headquarters Division Division Division Subsidiary Headquarters Headquarters Division Headquarters Division
Product Custom Machining Plastic Packaging Flexible Food Packaging Oil, Gas, & Aircraft Parts School, Commercial & Parts HVAC Composite Piping Systems Pressure Vessels & Heat Exchangers Coated, Tint, Clear & Tempered Flat Glass Turbine Components & OEM Coatings Fabricated Needments & Machining Parts Recreation, Safety & Luxury Equipment Heat Transfer Capital Equipment Power Transmission Equipment Clutches, Brakes & Cup-Links
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
INTERPRETING THE DATA Response Scale Most questions seek an opinion response between the numbers 1 through 5. A “1” response represents “being poor.” On the other extreme, a “5” response represents “being excellent.” In other words, when a survey respondent is asked, “What is your overall opinion of this area as a place to conduct business?” the choices for a response are “1 2 3 4 5” 1 being poor and 5 being excellent. We showcase other responses are written or requiring a “yes” or “no” answer. Histograms Histograms, the boxes showing frequency data, highlight specific responses showing wide variances, extreme skewing or community significance. This statistical evaluation also offers variables such as mean and standard deviation if some wish to perform a hypothesis evaluation determining a true reflection the population. Frequency is found on the left side of the histogram and represents how many scores reflect manufacturer’s responses. The top of the histogram shows the relevant question and the bottom is the signifier relative to our spreadsheet. Responses Without Histograms In order to make this report concise, we use histograms for data highlights, but most questions received “favorable” responses. In other words, most responses were skewed to the left meaning that the scoring reflected 3’s, 4’s and 5’s which are interpreted and favorable. Some of these favorable responses are listed below the histogram, unless the responses are written on the survey and did not use the scoring category. Written Reponses Written responses did show some trends though repetition. This report uses a number next to the written response to signify repetition.
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2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
A) Local Environment What is your overall opinion of this area as a place to conduct business? Overall opinion of this area as a place to conduct business? Normal (1 being poor - 5 being excellent)
9
Mean StDev N
8
3.357 0.6333 14
Frequency
7 6 5 4 3 2 1 0
1
2
3 Q1
4
5
What do you see as some of the main assets of the community as a place to live and own a business? 6 - Schools (K-12) Low Cost of Living 4 – No Traffic/Easy Commute Work Ethic 3 – Health Services Business Friendly Access to Dallas/Fort Worth and Oklahoma City MSU Competitive Wages Family Oriented Low Crime Rate Good place to raise children Dining/Entertainment Population Size Leadership Bike Trails Potential for Growth
What can be done to make the economy stronger and to create more jobs? 4 – Attract More Manufacturing 3 – Long-Term Solutions to Water shortage Maintain a good working relationship with businesses Targeted Economic Development coupled with training the required workforce Discourage food/general based businesses and services Promote Vo-Tech Provide incentives for existing businesses Skilled labor jobs added Tax incentives for companies Logistics Leverage 4
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
What main changes would you like to see made to improve this area? 2 – Improve Water Situation Tax Incentives for local long-term businesses Manufacturing Synergy Strategy from city on how this area adds value to manufacturing by locating here Bigger Thinking Build alliances across what we have i.e. SAFB and D/FW proximity More closely partner with SAFB and MSU Remove Blight Downtown Revitalization Additional tourism similar to Hotter’n Hell More high-end dining options Improved airport service and the pathway to and from the airport Completion of the Business Park Renovation of the old part of town
What is your level of satisfaction with each of the following services and infrastructure? Level of Satisfaction: Airport Facilities Normal (1 being poor - 5 being excellent)
Mean StDev N
5
Frequency
4 3 2 1 0
5
1
2
3 Q5A1
4
5
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
3 1.109 14
Level of Satisfaction: Access to Suppliers Normal (1 being poor - 5 being excellent)
Mean StDev N
10
2.929 0.7300 14
Frequency
8 6 4 2 0
1
2
3 Q5A4
4
5
Level of Satisfaction: Water/Sewage Normal (1 being poor - 5 being excellent)
Mean StDev N
6
2.571 1.399 14
Frequency
5 4 3 2 1 0
0
1
2
3
4
5
Q5A15
There were very favorable opinions for: Highway/Roadway Telephone Markets Internet Road Transport Services Development Approval Process Rail Transport City Inspections Warehousing Recycling Disposal of Waste Material Availability of Appropriately Zoned Land
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2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
In terms of the costs of doing business, how do you rate this community with respect to these factors? Regarding Costs, how do you rate the community: Labor Normal (1 being poor - 5 being excellent)
Mean StDev N
7 6
3.643 0.9288 14
Frequency
5 4 3 2 1 0
1
2
3 Q5C1
4
5
Regarding Costs, how do you rate the community: Raw Materials Normal (1 being poor - 5 being excellent)
Mean StDev N
9 8
Frequency
7 6 5 4 3 2 1 0
1
2
3 Q5C6
4
5
There were very favorable opinions regarding costs for: Transportation Storage Energy Development Approval Rates Land Buildings Leasing Space Construction Telecommunications
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2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
2.714 0.6112 14
B) Your Business A synopsis of the types of manufacturers along with the products they produce is on the first page of the report.
C) Your Markets What percentage of your products/services do you sell? Locally Elsewhere in the Southwest US Elsewhere within the US Overseas Mexico - 5 Asia – 5 Europe – 5 Canada – 3 Brazil – 2 Ecuador
1% 29% 57% 13% Middle East Carribean Africa India Peru Chile
D) Your Employees How many people are employed in your business? Full-Time Employees A nderson-Darling N ormality Test
0
200
400
600
A -S quared P -V alue <
1.74 0.005
M ean S tDev V ariance S kew ness Kurtosis N
173.50 197.47 38994.27 2.34873 5.63430 14
M inimum 1st Q uartile M edian 3rd Q uartile M aximum
800
28.00 67.50 111.50 193.75 750.00
95% C onfidence Interv al for M ean 59.48
287.52
95% C onfidence Interv al for M edian 74.25 9 5 % C onfidence Inter vals
143.16
Mean Median 50
8
100
150
200
187.60
95% C onfidence Interv al for S tDev
250
300
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
318.13
How do you expect the number of staff to change, if at all, over the next two years?
Full-Time Part-Time Temporary
Hiring for the Next Two Years Increase Same Decrease 8 6 2 1 4 0 4 5 0
Are you experiencing difficulty in finding suitable employees for your business? Yes - 10 No – 4 Skilled – 5 Bachelors – 7 Associates – 3 Industry Certified 3 Sales Marketing Unskilled
E) Business Plans and Decisions During the next two years, do yo expect your company to increase, decrease or have not significant change in revenue and profit? Revenue:
Increase – 11 Decrease – 0 No Significant Change – 2
Profit:
Increase – 10 Decrease 0 No Significant Change - 3
How do you expect the demand for your services/products to change over the next two years? Demand:
9
Increase – 9 Decrease – 0 No Significant Change – 3
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
Do you or could you work in a co-operative way with other businesses? 8 – Joint Participation in business management learning activities 3 – Referral of Work 3 – Co-operative Health Plan Purchases
F) You and Business Support Services How would you rate your current business management skills and, in two years, how far would you like to progress those skills (top five in order of importance): 1. 2. 3. 4. 5.
Succession Planning Work/Life Balance Time Management Marketing Business Strategy
Prefer to do these through business breakfast meetings.
G) Your Competitive Advantage “Yes” answers suggest that there is likely to be little or no rivalry among existing industry competitors.
“No” answers indicate that rivalry among competitors is likely to be intense and put limits on the industry’s ability to earn profits. 1. Is your particular industry growing rapidly?
No
79%
2. Can your industry add capacity in small increments?
Yes
100%
3. Do your industry sales tend to be stable rather than cyclical?
No
50%
4. Are fixed costs in your industry a relatively low portion to total costs?
No
71%
5. Are there significant product differences and brand identities among the industry competitors?
Yes
79%
6. Are the competitors in the industry diversified rather than specialized?
No
57%
7. Do customers incur significant switching costs when switching between industry competitors?
No
57%
Overall Industry Intensity Factor: 10
48%
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
H) Your Corporate Governance In your opinion, how does your Chief (CEO, CFO, CIO ect.) level team view your companyâ&#x20AC;&#x2122;s relationship with the City of Wichita Falls? How does your C-level team view your company's relationship to WF? Normal (1 being poor - 5 being excellent)
Mean StDev N
9 8
3.857 0.7703 14
Frequency
7 6 5 4 3 2 1 0
2
3
4
5
Q38
Do you and your Chief level team see Wichita Falls as a Strategic Partner in making your company competitive within your industry? Does C-level team percieve WF as a strategic partner? Normal (1 being poor - 5 being excellent)
7
Mean StDev N
6
Frequency
5 4 3 2 1 0
11
1
2
3 Q39
4
5
2013 Business, Retention and Expansion Survey Report | Wichita Falls, Texas
3.643 0.8419 14