Results from the 2010 Business Leadership Survey LAMBERT, EDWARDS & ASSOCIATES JOHN BAILEY & ASSOCIATES
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1 Results from the 2010 Business Leadership Survey LAMBERT, EDWARDS & ASSOCIATES JOHN BAILEY & ASSOCIATES
2 Demographics 208 online respondents (Detroit Regional Chamber members and conference participants) 40% from Oakland County; 25% from Wayne County; 6% from Macomb County; 22% from outside SE Michigan area 24% from businesses with 11 to 50 employees; 23% from businesses who employ more than 1000 employees 38% were from professional services; Demographic Respondents Outside SE Michigan 22% Oakland 40% Business Climate On a scale of 1 to 5, where 1 is poor and 5 is excellent, 52% gave it a 2 and 35% gave it a 1. (combined 85%). No one gave the region a 5, and only 1 person gave it a 4. Macomb 6% In 2009, the combined response between 1 and 2 was 92%. Fifth straight year that respondents gave the region poor or below average rating. The number does bounce slightly up from last year. 70% stated their opinion of the economy has not changed in the past year. Sample of responses: was the worst year in memory 2010 is starting to get better - Very slow recovery underway in auto sector. - Has gotten worse compared to the rest of U.S. - State Government Gridlock - Feeling more optimistic with the beginnings of the Auto Industry turning around and general overall economy improvement nation wide 80% feel the city of Detroit is moving in a positive direction under Mayor Bing and new leadership; and only 3% said it was going in a negative direction. 73% feel the economy will be stronger five years from now 17% feel it will be the same In 2009, 70% felt the economy will be stronger five years from now. Optimism is rising, 70 percent felt it would be stronger in 2009, 66% answered stronger in 2008 (and 74% in 2007). Samples responses: - New Governor and new leadership - Mayor Bing seems to have the right approach to collaboration to take Detroit forward. Foundations are encouraging economic improvement through collaboration, companies are starting to understand their role in a community not just their executives pockets, and groups like Land Policy Institute are helping to raise awareness about what Michigan needs to do to recover. These things can combine to improve our economy. - Wholesale reforms in state and local governments are needed to right size Michigan to the new economic reality. Until that is done there will be no recovery. - Hopefully there will be better leadership in Lansing, less taxes imposed on businesses and more fiscally conservative choices made. - We re in a big hole and it will take longer than 5 years to get out Wayne 25% 73% feel the economy will be stronger five years from now. 80% feel the city of Detroit is moving in a positive direction under Mayor Bing. Optimism is rising. 1
3 Health Care When asked what their top health care concern was, 38% chose high cost, followed by 20% at impact of the uninsured on our health care system and a culture that fails to promote prevention and wellness programs. In % chose high cost, followed by 24% who chose the impact of the uninsured on our health care system. 52% list the high cost of health care as their top health care concern. Those two options were also the top two concerns in 2008 (45% and 24% respectively.) When asked about their opinion of the new health care bill, 48% said the federal bill made the wrong changes, and 46% said it was a good first step, but more needs to be done. Transportation On a scale of one to five, where one is very low and five is very high, 50% said they felt Michigan s trade relationship with Canada was very important, followed by 23% who ranked it a 4. 72% felts that an upgraded and increased trade capacity is important to securing our trading position with Canada and NAFTA. In a follow up question to those that answered yes to an upgraded and increased trade capacity, the breakdown of options included % wanted a bi-national DRIC project - 17% wanted a second span of the existing Ambassador Bridge - 10% wanted both 48% think the federal health care reform bill makes the wrong changes. 50% feel Michigan s trade relationship with Canada is very important. 2
4 State Taxes and Budget Spending 50% do not support Gov. Granholm s proposal to expand the state s sales tax to services, in exchange for lowering the sales tax from 6% to 5.5%; 32% support the tax plan. Sample of respondent s explanations: - Increased taxes do not work - State MUST have a solid fiscal basis; service activities will grow more rapidly than other products. - We need to reduce spending - not increase taxes. - We must learn to make due with what reduced revenue the state has. Until those reforms happen no additional tax should be supported. - Prove it will work. MBT has proven to be a disaster under this administration. When given three priorities for a way to solve the state budget deficit, 84% felt enacting cost-saving structural reform to make government more lean and efficient should be the first priority. 61% felt cutting additional programs supported by state government should be the second priority. 71% feel passing new taxes for government spending should be the last priortiy. 84% feel the a lean and efficient government structure should be the first priority. 71% felt passing new taxes to support existing government levels and growth of future government spending should be the last priority. When asked about the general election, who were the top three candidates? Andy Dillion 13% Mike Bouchard 28% Gubernatorial Candidates 66% felt House Speaker Andy Dillon would secure the Democratic nomination for governor; 30% felt Lansing Mayor Virg Benero would secure the nomination. 37% felt Congressman Pete Hoekstra would secure the Republican nomination for governor; followed by 30% for Oakland County Sheriff Mike Bouchard; 18% for businessman Rick Synder; 13% for Attorney General Mike Cox; and 1% for Sen. Tom George. When asked about the general election in November, and asked to choose from all candidates, Oakland County Sherriff Mike Bouchard led slightly with 28%, Congressman Pete Hoekstra with 27% and Speaker Andy Dillon with 13%. Pete Hoekstra 27% 3
5 Budget Priorities K-12 education and investments in job creation and growth topped the list of state programs business leaders were asked to prioritize. The complete results, in order of priority, was as follows: - K-12 Education - Job Creation/Growth - Higher Education - Health Care - Transportation - Natural Resources/Environment - Tourism - Corrections In terms of rebuilding the state economy, how important do you find crossstate business collaborations? - Very important 54% - Somewhat important 32% - Somewhat unimportant 6% - Not important 1% - Not sure/don t know 7% What do you consider is the number one priority for turning Michigan s economy around? - Increasing job creation 42% - Reducing existing taxes on Michigan s businesses 31% - Reducing unemployment 11% - Education reforms and funding 10% - Invest in workforce development and training 5% - Increasing state taxes to provide a better safety net for social services 1% In regards to education, do you support mayoral control over the Detroit Public Schools or should control remain with the Detroit Public Schools emergency financial manager? - Mayoral Control 29% - Emergency Financial Manager 61% - Other 10% Some responses: Citizens of Detroit should have a vote State Superintendant Flanagan Neither, I don t believe that emergency financial manager is doing an adequate job (anyone with his unbridled power could do the same thing). I am not confident the mayor can manage the city and therefore believe it to be unwise to advocate mayoral control over DPS. I am also concerned this question isn t being asked about all of Michigan s struggling school districts. Control by the Governor There should be a collaboration between the two Somewhat Unimportant 6% Not Important 1% Not Sure 7% Somewhat Important 32% Very Important 32% Reduce Unemployment 11% Education Reforms 10% How important do you find cross-state business collaborations? What is the number one priority for turning Michigan s economy around? Reduce Business Tax 31% Invest in Workforce 5% Increase State Tax 1% Increase Job Creation 42% 4
6 Who should be making academic decisions for Detroit Public Schools? 60% 50% 51% 40% 30% 20% 10% 0% Emergency Financial Manager 20% School Board 15% Other 14% Mayor Budget Priorities cont. Who should be making academic decisions for Detroit Public Schools? - Mayor 14% - Emergency Financial Manager - 51% - School board 20% - Other 15% Some responses: Not sure that Mr Bobb has the credentials to lead the academic side. Certainly not the school board. That s already been proven. What are the requirements for the role of an academic leader? Does anyone even know? I would say that they have to have the autonomy and control of Bobb yet the strong proven academic leadership ability. I trust Bing to have that person fall under his leadership. Anyone other than the school board Michigan State School Board Emergency financial manager under the authority of the Mayor A council of education advisers appointed by the Mayor. Automotive 8% What sector do you think will see the largest growth in the next 25 years? Tourism 2% Agriculture 2% Alternative Energy 35% Which of the following sectors do you think will see the largest growth in the next 25 years? - Alternative Energy 35% - Transportation, logistics & supply chain management 7% - Defense/homeland security 10% - Life sciences/bio technology 36% - Automotive/Advanced Manufacturing 8% - Tourism 2% - Agriculture 2% Life Science 36% Defense 10% Transportation 7% 5
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