Majority of local firms satisfied with business climate

A recent survey aimed at Sackville's business community has revealed that a majority of local firms rate the town's business climate as 'good' to 'excellent,' with a large percentage also saying they are satisfied with local government and community services.
The bad news, however, is that signs are starting to emerge that the opinion of the business community is on a downward trend.
"So there are signs of growing concern," said David Campbell of Shift Central, the consultant company that drew up the 45-page Business Retention and Expansion survey and analyzed the results.
The survey revealed that the 54 per cent of local firms rate the business climate as good to excellent, with only eight per cent rating it as poor. However, results also pointed to the fact that, out of the 43 firms who say their outlook of the business community has changed, 36 of them said it has gotten worse.
The top recommendations for improving the business climate were to attract industry to the town and improve marketing.
Approximately 78 per cent of firms think a new business or industrial park is also a good idea, while 76 per cent would also like to see daily transportation provided to and from Moncton. The survey also revealed there is significant support for an industrial park expansion.
Most firms said they are satisfied or very satisfied with local government and community services, with fire protection, the university, snow removal and cultural facilities topping the list. They are not so satisfied, however, with garbage removal, street repair, the planning/zoning process, and policing services. There was also concern raised over the cost of housing and the availability of options for older citizens.
The top five positive business factors cited in the survey were quality of life, telecom infrastructure, availability of utilities, support from local residents and access to customers. The top five negative factors were the cost of leasing space, municipal taxes, availability of zoned land, land costs, and the local permit process.
Campbell explained that a business retention and expansion (BR&E) program is a tool used to support local businesses and help them grow in a regional community.
He said statistics indicate that most new employment results from the expansion of existing businesses.
"In fact, studies have found that, over time, 60 to 80 per cent of all new jobs in a community are created through existing firms, and not through attracting new businesses to the region," said Campbell. "So your local business base is very important to your community's health."
More than 130 organizations filled out the survey, which was conducted by local volunteers last summer, representing over 90 per cent of the total employment in the town.
"So it's a fairly comprehensive study," said Campbell.
While 49 per cent of the firms within the town were found to be in the retail and tourism-related sectors, the health and education segments employed the larger percentage.
Sixty-eight per cent of firms have been in business for at least 10 years in Sackville, while 30 per cent of those have been in business for at least 25 years.
"So this indicates a highly stable business environment," he said.
At the same time, he noted, only two out of five businesses have a formal succession plan, posing a considerable challenge for the local economy as they move forward.
Nearly 40 per cent of the town's organizations are planning to expand in the next three years, with 14 per cent of them expecting to physically expand their operations. Fifty-seven firms are planning to expand their employment over the next three years for a total of 156 new jobs.
Campbell said this survey - which gives local government and economic development organizations a baseline review of the attitudes of the local business community, growth potential, the barriers to growth and other critical information - is only the beginning of the BRE process.
He said that BRE programs are successful when town officials use the information from the survey to make changes where necessary.
Serge Doucet of Enterprise South East agreed.
"The survey is just the start of this process. Now we'll start on our followup plan," he said.
For a more in-depth look at the results of the BRE survey, a public meeting is being held on Monday, Jan. 28 at 7 p.m. at the Tantramar Veterans Memorial Civic Centre.