EXECUTIVE BUSINESS CLIMATE SURVEY REPORT

Transcription

1 EXECUTIVE BUSINESS CLIMATE SURVEY REPORT Third Quarter, 2018 Prepared in partnership with: and The Regional Economic Research Institute Florida Gulf Coast University

2 Project Staff Dr. Christopher Westley, Director John Shannon, Economic Analyst Report Information This report is conducted quarterly by the Horizon Council of Lee County, Florida, and Florida Gulf Coast University s Regional Economic Research Institute. This work would not be possible without considerable cooperation from the Horizon Council s Chairs, the RERI s student researchers, and the Lee County Economic Development Council. The Regional Economic Research Institute studies, analyzes are reports on the regional economy encompassing Collier, Lee, Charlotte, Hendry, and Glades counties. Established in 2005, it serves as a public service and economic development unit of the Lutgert College of Business Dean s Office and strives to connect Southwest Florida to the resources of Florida Gulf Coast University. The Institute s Business Climate Survey group specializes in sampling design and analysis, including program evaluation, policy research, and needs assessment. The Business Climate Survey group involves FGCU students in every stage of survey development, allowing them to develop professional skills and networks that add value to their degrees and, by extension, to their future employers. Regional Economic Research Institute Lutgert College of Business Florida Gulf Coast University FGCU Blvd, S. Fort Myers, FL (239) Photo Credits: Lee County Economic Development, Shutterstock

3 Table of Contents Introduction... 2 Executive Summary... 3 I. Recurring Questions... 5 How are the current Lee County economic conditions compared to a year ago?... 5 What are your expectations for the Lee County economy one year ahead?... 6 What are the current conditions in your industry in Lee County compared to one year ago?... 6 What are your expectations for your own industry in Lee County one year ahead?... 7 What has been your hiring trend over the last year?... 8 What hiring trends do you see for your business over the next year?... 8 Do you plan to increase investment in your business during the next year?... 9 II. Executive Business Climate Index III. Special Topics IV. Comments, Suggestions, and Recommendations V. Company Characteristics What type of business or industry best describes your company? What is the size of your firm? Where is your firm located? What areas comprise your geographic client base? Appendix A. Historical Trends of Recurring Questions Appendix B. Full Comments, Suggestions, and Recommendations

4 Introduction The Lee County Business Climate Survey Report, published in partnership between the Horizon Council and Florida Gulf Coast University, provides primary research to the business community, elected officials, and other concerned citizens in an effort to gauge the state of Lee County s economy over time as well as impressions and concerns about it in the future. Since the beginning of this partnership, the BCS has been comprised of three areas of focus. The first area encompassed in the first seven questions of the survey examines Lee County business executives impressions of economic conditions and trends with respect to hiring and investment. The second area has been the calculation of an Executive Business Climate Index. The EBCI provides a summary number which will allow one to quickly gauge whether the business climate in Lee County is improving or declining. Finally, the third area is comprised of various questions that change from survey to survey. In the past, these Special Topics have focused on areas such as business executives concerns about interest rates and access to capital, firms demand for critical occupations and their ability to find workers within those occupations, the cost of doing business in Lee County, and even concern for employee wellness and wellness programs. The BCS also allows respondents to voice concerns, kudos, and criticisms of Lee County s economic environment. Every effort is made to include these comments in each survey. The Horizon Council FGCU Business Climate Survey is administered, written, and published by the staff and students working with the Regional Economic Research Institute in the Lutgert College of Business. We very much welcome your comments and suggestions regarding the report, including suggestions for Special Topics questions for future editions. This survey would not have been possible without the many busy business owners and executives who took the time to respond to it. I also thank Pamela Johnson, Antranette Forbes, and their colleagues at Lee County Economic Development; Robert Beatty, Dean of Lutgert College of Business at FGCU; Russell Schropp, Chair of the Horizon Council s Business Issues Taskforce; and Michael Quaintance of Keiser University. CareerSource Southwest Florida s James Wall and Peg Elmore continued to provide valuable input and advice. We are grateful for the assistance of the Bonita Springs Area Chamber of Commerce and the Cape Coral Chamber of Commerce in disseminating the survey. Christopher Westley Dr. Christopher Westley Director, Regional Economic Research Institute Lutgert College of Business Florida Gulf Coast University Fort Myers, Florida

5 Executive Summary The Executive Business Climate Survey provides a view of the local economy that is based on responses from senior executives from a range of industries across the county. An invitation to complete the internet survey was sent to 637 executives and business owners in Lee County. Four reminders were sent during the survey period. In addition, a link to the survey was provided to the Bonita Springs Area Chamber of Commerce and Cape Coral Chamber of Commerce to solicit more responses. Ninety-seven executives completed the survey from July 16, 2018, through August 1, This survey provides a key economic indicator for Lee County, the Executive Business Climate Index. This index value is computed each quarter and released to the public as a way to provide an established economic indicator on the state of the local economy. The index is computed using the two questions concerning the current and future economic conditions and a third question concerning the expected industry economic conditions. The index is an average of the responses, with substantially better equal to 100, moderately better equal to 75, same equal to 50, moderately worse equal to 25 and substantially worse equal to zero. The index value can range from 0 to 100. The present survey s index of 68 reflects no change from the second quarter 2018 index. This follows the previous quarter s five-point decline, which represented the second largest quarter-to-quarter drop the index has experienced since the survey s inception in Results from the recurring questions include: 61 percent of executives stated the current economic conditions have improved over last year, while 34 percent stated they were the same; 68 percent of the executives expect the economy to improve over the next year, and 26 percent stated the economy would stay the same; 63 percent of the executives stated the current economic conditions for their industry have improved over last year, while 29 percent stated economic conditions remained approximately the same; 65 percent of executives expect economic conditions for their industry to improve over the next year, and 31 percent expect conditions to stay the same; 50 percent of executives reported increased employment over the last year, while 3 percent reported reduced employment; 55 percent of executives expect to increase employment at their companies during the next year, while 46 percent of executives plan to remain at the same level; 69 percent of companies expect to increase investment next year while 1 percent expect to reduce investment levels. The current survey s Special Topics section focuses on business owners' and executives' opinions regarding the effects of Hurricane Irma and emergency preparedness. Findings from the Special Topics section include: 92 percent of responding executives said that their business was prepared for Hurricane Irma, while 8 percent said their firm was not prepared; 92 percent of executives indicated that their firm is either fully recovered or almost fully recovered from the hurricane; 54 percent of business executives stated that their firm lost income due to Hurricane Irma, while 16 percent said their firm gained income; 55 percent of executives were impressed with the local authorities response to Hurricane Irma, while 7 percent were unimpressed; 57 percent of executives were impressed with the private sector s response to Hurricane Irma, while 3 percent were unimpressed; 3

6 53 percent of responding executives were impressed by the nonprofit sector s response to Hurricane Irma, while 1 percent was not impressed; 51 percent of business executives are more confident in the region s ability to respond to future natural disasters, while 8 percent are less confident; 56 percent of executives found their firm s own disaster plan to be the most helpful resource in preparing for Hurricane Irma and its aftermath, while 23 percent credited the local media as being the most helpful resource; 69 percent of respondents do not believe Hurricane will have a lasting adverse effect on the region s economy, while 18 percent believe that it will have a lasting adverse effect. 82 percent of executives said their business currently has an explicit disaster preparedness plan, while 18 percent do not have a plan. 4

7 I. Recurring Questions Each quarter, the Horizon Council FGCU Business Climate Survey polls Lee County s business leaders about the state of the economy in Lee County. These seven questions are designed to provide a snapshot of short-term trends and perceptions regarding the state of the local economy, employment, and capital investment. Asking the same recurring questions allows for a side-by-side comparison of the economy during each quarter. The results from these questions for the third quarter of 2018 can be found in Figures 1 through 7 below. How are the current Lee County economic conditions compared to a year ago? Figure 1 reports that 61 percent of surveyed executives indicated that economic conditions in Lee County were moderately or substantially better compared to a year ago. While this represented little to no change when compared to the previous quarter and previous year (60 percent and 60 percent, respectively), it is worth noting that the proportion of respondents who indicated substantially better has greatly increased (18 percent). Moreover, 34 percent of responding executives said current Lee County economic conditions were about the same compared to a year ago, and 5 percent of executives said that economic conditions in Lee County were worse when compared to last year % 11% 5% Substantially better Figure 1: Current Economic Conditions How are the current Lee County economic conditions compared to one year ago? 55% 49% 43% Moderately better These results indicate that local business owners and executives remain pleased with the direction of the local economy over the past year. Complete response counts can be found in Table 1. Table 1: Current Economic Conditions 34% 33% 33% Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially better 17 18% 11 11% 5 5% Moderately better 41 43% 48 49% 55 55% Same 33 34% 32 33% 33 33% Moderately worse 5 5% 4 4% 7 7% Substantially worse 0 2 2% 0 Total Same 5% 7% 4% 2% Moderately worse 2018 Q Q Q3 Substantially worse 5

8 What are your expectations for the Lee County economy one year ahead? Figure 2 tracks business leaders perceptions Figure 2: Future Economic Conditions about economic conditions going into the next What are your expectations for the Lee County economy year. Majority of business executives remain one year ahead? 8 optimistic about economic conditions in the upcoming year, though the proportion of 7 59% 62% 2018 Q3 executives who do not expect improvement in 6 54% 2018 Q2 economic conditions also grew from the previous Q3 quarter. Sixty-eight percent of all surveyed 4 business executives expect economic conditions 3 26% 26% to be moderately or substantially better over the 23% next year. While this represented no change from 2 14% 9% 8% the previous quarter, it was also a two-point 1 5% 7% 4% 2% decline when compared to the previous year. Furthermore, 26 percent of surveyed executives expected the Lee County economy to be about the Substantially better Moderately better Same Moderately worse Substantially worse same next year, while 5 percent of executives believe that the economy in Lee County will get worse 12 months from now. Complete response counts can be found in Table 2. Table 2: Future Economic Conditions Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially better 9 9% 14 14% 8 8% Moderately better 56 59% 52 54% 62 62% Same 25 26% 22 23% 26 26% Moderately worse 5 5% 7 7% 4 4% Substantially worse 0 2 2% 0 Total What are the current conditions in your industry in Lee County compared to one year ago? Figure 3 reports on executives perceptions about their particular industry and is more narrowly focused. The percentage of business executives feeling improved industry conditions over the past year declined, while those indicating industry conditions deteriorated increased slightly. The current survey found that 63 percent of surveyed executives believed current conditions in their industry were better compared to a year ago. While this was a 2-percent decline from the previous quarter, it still represented a 12-percent improvement from the same quarter last year. Furthermore, 29 percent of surveyed executives said that current conditions in their industry were about the same when compared to a year ago, while 8 percent of business executives said % 14% 9% Substantially better Figure 3: Current Industry Conditions What are the current conditions in your industry in Lee County compared to one year ago? 51% 45% 42% Moderately better 29% 3 Same 39% 7% 4% 9% Moderately worse 2018 Q Q Q3 1% 1% 1% Substantially worse 6

9 industry conditions in Lee County were worse when compared to last year. Complete response counts can be found in Table 3. Table 3: Current Industry Conditions Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially better 17 18% 14 14% 9 9% Moderately better 42 45% 49 51% 42 42% Same 27 29% % Moderately worse 7 7% 4 4% 9 9% Substantially worse 1 1% 1 1% 1 1% Total What are your expectations for your own industry in Lee County one year ahead? Figure 4 reports the expectations business executives have for the conditions in their own industry one year from now. Sixty-five percent of surveyed executives expect conditions in their industry to be moderately or substantially better in the next year, a three-point decrease from the second quarter 2018 report. Despite the decline, it still represented a 4-point increase from the third quarter 2017 report, when 61 percent of local business executives expected their industry conditions to be better over the next year. Thirtyone percent of surveyed executives predict that conditions in their industry will be about the same one year from now, while 4 percent of business executives expect conditions in their industry to % 15% 12% Substantially better Figure 4: Future Industry Conditions 52% 53% 49% get worse over the next year. The results suggest a continued declining trend in optimism with regards to expectations in future industry conditions over the next 12 months. Complete response counts can be found in Table 4. Table 4: Future Industry Conditions What are your expectations for your own industry in Lee County one year ahead? Moderately better 31% 33% 28% Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially better 12 13% 15 15% 12 12% Moderately better 49 52% 51 53% 49 49% Same 29 31% 27 28% 33 33% Moderately worse 4 4% 3 3% 6 6% Substantially worse 0 1 1% 0 Total Same 4% 6% 3% 1% Moderately worse 2018 Q Q Q3 Substantially worse 7

10 What has been your hiring trend over the last year? Figure 5 focuses on the hiring trends of the surveyed executives firms. Business executives indicated an improving hiring trend over the past year, with majority of business executives stating they have increased employment. Fifty percent of executives moderately or substantially increased employment over the last year, an 11-point increase from the second quarter 2018 report (when 39 percent of executives reported an increase in employment over the past year). This also represented a 16-percent improvement from the third quarter 2017 survey, when only 34 percent of surveyed executives reported increased employment over the past year. Forty-six percent of executives said their firm had little to no change % 7% 4% Substantially increased employment in employment compared to last year, while 3 percent of surveyed executives said their firm reduced employment over the past year. Complete response counts can be found in Table 5. Table 5: Current Hiring Trend Figure 5: Current Hiring Trend What has been your hiring trend over the last year? Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially increased employment 8 8% 7 7% 4 4% Moderately increased employment 40 42% 31 32% 30 3 Little or no change in employment 44 46% 56 58% 60 6 Moderately reduced employment 3 3% 2 2% 6 6% Substantially reduced employment 0 1 1% 0 Total % 32% 3 Moderately increased employment 46% 58% 6 Little or no change in employment 3% 6% 2% 1% Moderately reduced employment 2018 Q Q Q3 Substantially reduced employment What hiring trends do you see for your business over the next year? Figure 6 depicts hiring trends business executives expect from their firm over the next year. While the proportion of executives who increased employment improved from the previous quarter, optimism for the upcoming year was somewhat subdued. Fifty-five percent of surveyed executives anticipate increasing employment over the next year. While this was a 3-percent decrease from the previous quarter measure of 58 percent, it also represented a 6-percent improvement from the previous year (when 49 percent of executives said they would increase employment). Meanwhile, 46 percent of executives said they expect the same employment level over the next year, while no executives believe their firm will reduce employment over the next 12 months. Complete response counts can be found in Table % 9% 7% Substantially increase employment Figure 6: Future Hiring Trend What hiring trends do you see for your business over the next year? 49% 46% 46% 46% 42% 39% Moderately increase employment Same or flat employment 5% 2% Moderately reduce employment 2018 Q Q Q3 Substantially reduce employment 8

11 Table 6: Future Hiring Trend Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially increase employment 8 9% 9 9% 7 7% Moderately increase employment 43 46% 48 49% 42 42% Same or flat employment 43 46% 38 39% 46 46% Moderately reduce employment 0 2 2% 5 5% Substantially reduce employment Total Do you plan to increase investment in your business during the next year? Finally, Figure 7 focuses on capital investment. Sixty-nine percent of surveyed executives expect to moderately or substantially increase investment over the next year, a six-point improvement from the second quarter 2018 report, which reported that 63 percent of surveyed executives expect to increase investment over the 12-month period. It also represented a 15-percent increase from the third quarter report from 2017, when 54 percent of surveyed executives expected to increase investment over the next year. Twenty-nine percent of executives believe that their firm will keep investment the same over the next year, while 1 percent of executives predict that their firm will reduce investment over the next 12 months. Complete response counts can be found in Table 7. 7% 1 7% Substantially increase investment Table 7: Future Investment Trend Figure 7: Future Investment Trend Do you plan to increase investment in your business during the next year? 62% 53% 2018 Q3 47% 43% 2018 Q2 35% 2017 Q3 29% Moderately increase investment Keep investment the same or flat 3% 1% 1% 1% Moderately reduce investment Response 2018 Q Q Q3 Count Percentage Count Percentage Count Percentage Substantially increase investment 7 7% % Moderately increase investment 59 62% 51 53% 47 47% Keep investment the same or flat 28 29% 34 35% 43 43% Moderately reduce investment 0 1 1% 3 3% Substantially Reduce investment 1 1% 1 1% 0 Total Substantially Reduce investment 9

12 II. Executive Business Climate Index One of the key features of this survey is the calculation of an Executive Business Climate Index. This index value measures the current business climate in Lee County and is released quarterly to provide an economic indicator allowing one to gauge whether the business climate in Lee County is improving or declining. The EBCI is computed using the two questions concerning the current and future economic conditions (reported in Tables 1 and 2) a third question concerning the expected industry economic conditions (reported in Table 4). The index is an average of the responses, with substantially better equal to 100, moderately better equal to 75, same equal to 50, moderately worse equal to 25 and substantially worse equal to zero. The index value can range from 0 to Q3 Figure 8: Executive Business Climate Index Q Q Q Q Q Q Q Q3 The index measured at 68 during the third quarter of 2018, representing no change from the previous quarter. While the index did not change, it still represented a one-point improvement when compared to the same quarter last year, when the index registered at 67. While the current economic conditions component increased two points from the second quarter of 2018, these gains were offset by an equal two-point decline in future industry conditions. The future economic conditions component did not change during this time period. Complete results can be found in Table 8. Quarter Table 8: Executive Business Climate Index Current Economic Conditions Component Future Economic Conditions Future Industry Conditions Executive Business Climate Index 2016 Q Q Q Q Q Q Q Q Q

13 III. Special Topics Each Executive Business Climate Survey contains a set of questions not asked on a recurring basis. These special topic questions highlight areas of importance to the economic development of our region with the intention of accessing the business community s input and feedback to development officials, industry agents, and government officials. The present survey includes questions regarding business owners' and executives' opinions regarding the effects of Hurricane Irma, as well as about concerns regarding emergency preparedness in general. Results from these questions are reported in figures 9 through 18. My business was for Hurricane Irma. Figure 9 asks business executives whether or not their firm was prepared for Hurricane Irma when she made landfall in September Majority of business executives in Lee County indicated that their business was prepared for the hurricane. Ninety-two percent of all business executives said their business was prepared for Hurricane Irma, while 8 percent said their business was not prepared for the hurricane. Complete response counts can be found in Table 9. Figure 9: Hurricane Irma Preparedness My business was for Hurricane Irma. 8% 92% prepared not prepared Table 9: Hurricane Irma Preparedness Response Count Percentage prepared 87 92% not prepared 8 8% Total

14 Now that it is 10 months after Hurricane Irma, my business has. Figure 10 asks how the recovery process has been since Hurricane Irma. Majority of business executives indicated that they are either fully or almost fully recovered from the hurricane, while a small proportion are still a long way from reaching their goal. Seventy-four percent of business executives said that their firm is fully recovered from the hurricane that hit Lee County 10 months ago, while 18 percent said their firm is almost fully recovered. Furthermore, 6 percent of executives said their firm has recovered, but are far from being fully recovered. Two percent of business executives said their firm has not recovered at all. Complete response counts can be found in Table % Figure 10: Hurricane Irma Recovery Now that it is 10 months after Hurricane Irma, my business has. 2% 6% 18% not recovered recovered but still far from being fully recovered almost fully recovered fully recovered Table 10: Hurricane Irma Recovery Response Count Percentage not recovered 2 2% recovered but still far from being fully recovered 6 6% almost fully recovered 17 18% fully recovered 70 74% Total Overall, my business income due to Hurricane Irma. Figure 11 asks business executives if their business gained or lost income due to Hurricane Irma. Most executives indicated that their firm lost income due to the hurricane, while a small portion said their firm gained income. Fifty-four percent of responding business executives said their firm lost income due to Hurricane Irma, while 16 percent of respondents said their firm gained income. Thirty percent of executives said their firm neither lost nor gained income due to the hurricane. Complete response counts can be found in Table % Figure 11: Income Lost Overall, my business income due to Hurricane Irma. 54% lost gained neither lost nor gained 12

15 Table 11: Income Lost Response Count Percentage lost 51 54% gained 15 16% neither lost nor gained 28 3 Total Overall, I was by the local authorities response to Hurricane Irma. Figure 12 asks business executives about their impression with the local authorities response to Hurricane Irma. Fifty-five percent of executives said that they were impressed with the response of local authorities to Hurricane Irma, while 7 percent were unimpressed by the response. Thirty-eight percent were not left with an impression at all, indicating that they were neither impressed nor unimpressed with the response of local authorities. Complete response counts can be found in Table % Figure 12: Local Authority Response Overall, I was by the local authorities' response to Hurricane Irma. 7% 55% impressed not impressed or unimpressed unimpressed Table 12: Local Authority Response Response Count Percentage impressed 52 55% not impressed or unimpressed 36 38% unimpressed 6 6% Total

16 Overall, I was by the private sector s response to Hurricane Irma. Figure 13 asks business executives about their impression with the private sector s response to Hurricane Irma. Fifty-seven percent of executives said that they were impressed with the response of the private sector to Hurricane Irma, while 3 percent were unimpressed by the response. Forty percent were neither impressed nor unimpressed with the response of the private sector. Complete response counts can be found in Table Figure 13: Private Sector Response Overall, I was by the private sector's response to Hurricane Irma. 3% 57% impressed not impressed or unimpressed unimpressed Table 13: Private Sector Response Response Count Percentage impressed 53 57% not impressed or unimpressed 37 4 unimpressed 3 3% Total Overall, I was by the nonprofit sector s response to Hurricane Irma. Figure 14 asks business executives about their impression with the nonprofit sector s response to Hurricane Irma. Fifty-three percent of executives said that they were impressed with the response of the nonprofit sector to Hurricane Irma, while 1 percent was unimpressed by the response. Fortysix percent were neither impressed nor unimpressed with the response of the nonprofit sector. Complete response counts can be found in Table % Figure 14: Nonprofit Sector Response Overall, I was by the nonprofit sector's response to Hurricane Irma. 1% 53% impressed not impressed or unimpressed unimpressed 14

17 Table 14: Nonprofit Sector Response Response Count Percentage impressed 49 53% not impressed or unimpressed 42 46% unimpressed 1 1% Total After Hurricane Irma, I feel about our region's ability to respond to future natural disasters. Figure 15 asks business executives about their confidence in the region s ability to respond to future natural disasters in the wake of Hurricane Irma. A little more than half of all business executives expressed that they were more confident in the region s ability to respond to future natural disasters (51 percent), while 8 percent of respondents were less confident. Fortyone percent said they were neither more nor less confident in the region s ability to respond to future natural disasters. Complete response counts can be found in Table % Figure 15: Post-Irma Confidence After Hurricane Irma, I feel about our region's ability to respond to future natural disasters. 8% 51% more confident not more or less confident less confident Table 15: Post-Irma Confidence Response Count Percentage more confident 48 51% not more or less confident 39 41% less confident 8 8% Total

18 Which of the following organizations were most helpful to your business in preparing for Hurricane Irma and dealing with its aftermath? Figure 16 asks executives about what they believed was the most helpful organization in preparing for Hurricane Irma, as well as dealing with its aftermath. Fifty-six percent of responding executives found their firm s own disaster plan to be the most helpful in dealing with Hurricane Irma, while 26 percent said that the local media was the most helpful organization. County disaster preparedness operations were viewed as most helpful by 7 percent of business executives, privately-run charities were the most helpful to 5 percent of responding executives, and 4 percent of executives found insurance companies to be the most helpful. No executives said federal loan/recovery programs or local chambers of commerce were most helpful in preparing for Hurricane Irma or dealing with its aftermath. Finally, three percent of respondents said another organization not listed was most helpful in preparing for Hurricane Irma. The open-ended responses can be found below: No help from any organizations City of Fort Myers Media, not just local the Weather Channel for preparation. Complete response counts can be found in Table 16. My firm's own disaster plan Local media County disaster preparedness operations Privately-run charities Insurance companies Table 16: Helpful Organizations Response Count Percentage Local media 22 23% County disaster preparedness operations 7 7% Insurance companies 4 4% Local chambers of commerce 0 Privately-run charities 5 5% My firm's own disaster plan 53 56% Federal loan/recovery programs or other assistance from lending institutions 0 Other 3 3% Other Federal loan/recovery programs or other assistance from lending Figure 16: Helpful Organizations Which of the following organizations were most helpful to your business in preparing for Hurricane Irma and dealing with its aftermath? Local chambers of commerce 23% Total % 5% 4% 3% 56%

19 Do you believe Hurricane Irma will have lasting adverse effects on our region's economy? Figure 17 asks executives if they believe Hurricane Irma will have lasting adverse effects on the region s economy. Sixty-nine percent of responding executives said that they did not believe Hurricane Irma would have a lasting adverse effect on the region s economy, while 18 percent believe that the hurricane will have a lasting adverse effect. Thirteen percent of executives said that they are unsure if Hurricane Irma will have a lasting adverse effect. Complete response counts can be found in Table % Figure 17: Adverse Effects Do you believe Hurricane Irma will have lasting adverse effects on our region's economy? 69% 18% Yes No Unsure Table 17: Adverse Effects Response Count Percentage Yes 17 18% No 66 69% Unsure 12 13% Total Does your business currently have an explicit disaster preparedness plan? Figure 18 asks respondents if their business currently has an explicit disaster preparedness plan. Eighty-two percent of executives said their business does currently have a disaster preparedness plan, while 18 percent said that their business does not have one. Complete response counts can be found in Table 18. Figure 18: Disaster Preparedness Plan Does your business currently have an explicit disaster preparedness plan? 18% Yes 82% No Table 18: Disaster Preparedness Plan Response Count Percentage Yes 78 82% No 17 18% Total

20 IV. Comments, Suggestions, and Recommendations At the end of each survey, business executives are given the opportunity to provide any general comments they have about the local economy. Below is a list of the general topics on which the business executives commented. Red algae blooms and water quality Hurricane Irma Affordable housing Infrastructure Local government Qualified candidates Occupational licensing Executive responses to this question are found in Appendix B. 18

21 V. Company Characteristics Each executive provided information about his or her firm, including: Business Type; Number of Employees; Company Location; and Geographic Client Base. The following figures provide an overview of general characteristics of the responding companies. What type of business or industry best describes your company? Figure 19 depicts the type of industry the responding business executives work in. Nineteen percent of surveyed executives worked for a firm in the construction industry, 12 percent of executives worked in the professional, scientific, and technical services field, 12 percent worked in the manufacturing industry, and 10 percent worked in finance and insurance. Five percent each worked in information and real estate sales, while 4 percent of business executives each worked in computer software and design, real estate development, and health care and social assistance. The resorts and arts, entertainment and recreation industries accounted for 3 percent of responding executives, while other services, wholesale trade, agriculture, forestry, fishing and hunting, educational services, retail trade, and utilities each accounted for 2 percent. Management of companies and enterprises, attractions, restaurants, aerospace, and real estate rental and leasing each comprised of 1 percent of all responding executives. No executives worked in the administrative support and waste management or transportation and warehousing industries. Complete response counts can be found in Table 19. Construction Professional, Scientific, & Technical Manufacturing Finance & Insurance Information Real Estate Sales Computer Software, Design, and Real Estate Development Health Care & Social Assistance Accommodation & Food Services - Arts, Entertainment, and Recreation Other Services Wholesale Trade Agriculture, Forestry, Fishing, and Educational Services Retail Trade Utilities Management of Companies and Accommodation & Food Services - Accommodation & Food Services - Aerospace Real Estate Rental and Leasing Administrative & Support & Waste Transportation and Warehousing Figure 19: Business Types 5% 5% 4% 4% 4% 3% 3% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 12% 12% 1 19% 5% 1 15% 2 19

22 Table 19: Business Type Industry Number of Responses Percentage Construction % Professional, Scientific, & Technical Service % Manufacturing % Finance & Insurance % Information 5 5.2% Real Estate Sales 5 5.2% Computer Software, Design, and Technical Services 4 4.1% Real Estate Development 4 4.1% Health Care & Social Assistance 4 4.1% Accommodation & Food Services - Resorts 3 3.1% Arts, Entertainment, and Recreation 3 3.1% Other Services 2 2.1% Wholesale Trade 2 2.1% Agriculture, Forestry, Fishing, and Hunting 2 2.1% Educational Services 2 2.1% Retail Trade 2 2.1% Utilities 2 2.1% Management of Companies and Enterprises 1 1. Accommodation & Food Services - Attractions 1 1. Accommodation & Food Services - Restaurants 1 1. Aerospace 1 1. Real Estate Rental and Leasing 1 1. Administrative & Support & Waste Management Services 0 0. Transportation and Warehousing 0 0. Total What is the size of your firm? Figure 20 shows the distribution in the size of the firms surveyed executives work for. Six percent of surveyed executives work for a firm that employs at least 250 employees, while 16 percent of executives work for a firm that employs between 100 and 249 employees. Eleven percent of executives work in a firm that has between 50 and 99 employees, 19 percent of surveyed executives work in firms that employ 25 to 49 employees, and 16 percent of executives work in firms with 10 to 24 employees. Finally, 31 percent of the surveyed business executives work in a firm that have no more than nine employees. Complete response counts can be found in Table % 11% Figure 20: Number of Employees 6% 31% 19% 16% 1 to 9 employees 10 to 24 employees 25 to 49 employees 50 to 99 employees 100 to 249 employees 250 or more employees 20

23 Table 20: Number of Employees Response Number of Responses Percentage 1 to 9 employees 30 31% 10 to 24 employees 16 16% 25 to 49 employees 18 19% 50 to 99 employees 11 11% 100 to 249 employees 16 16% 250 or more employees 6 6% Total Where is your firm located? Figure 21 shows where firms of surveyed business executives operated. Business executives were allowed to select all locations their firm operated in. Forty-one percent of surveyed executives said their firm was located in the City of Fort Myers, while 37 percent of executives indicated their firm operated in South Fort Myers. Furthermore, 21 percent of firms were located in Cape Coral, 19 percent of firms were located in Bonita Springs, and 12 percent of surveyed executives each said their firm was located in North Fort Myers and Estero. Nine percent of executives each said that their firm was located the Town of Fort Myers Beach, Sanibel/Captiva, and East Fort Myers, while 6 percent of surveyed executives said their firm was located in Lehigh Acres. Complete response counts can be found in Table 21. Figure 21: Company Locations City of Fort Myers South Fort Myers 41% 37% Cape Coral Bonita Springs 21% 19% North Fort Myers Estero 12% 12% Town of Fort Myers Beach Sanibel/Captiva East Fort Myers 9% 9% 9% Lehigh Acres 6% Other Table 21: Company Locations Location Number of Responses Percentage City of Fort Myers 40 41% South Fort Myers 36 37% Cape Coral 20 21% Bonita Springs 18 19% North Fort Myers 12 12% Estero 12 12% Town of Fort Myers Beach 9 9% Sanibel/Captiva 9 9% East Fort Myers 9 9% Lehigh Acres 6 6% Other 0 21

24 What areas comprise your geographic client base? Figure 22 shows the geographic client base for the firms of surveyed business executives. Business executives were allowed to select all geographical areas their firm had a client base. Eighty-five percent of surveyed executives Figure 22: Geographic Client Base Lee County 85% said Lee County was a part of their client base, while 65 percent of executives said Collier County was in their Collier County Charlotte County 65% 59% geographic client base. Furthermore, Charlotte County, Hendry County, and Glades County were a part of the geographical client base for 59 percent, 44 percent, and 37 Hendry County Florida Glades County 44% 43% 37% percent of the firms surveyed business executives worked US Markets 3 for, respectively. The state of Florida was a geographical International Markets 21% client base for 43 percent of the firms of surveyed executives, while the Southeast U.S. region was the Southeast US region 21% geographical client base for 21 percent of surveyed Other executives. All U.S. markets were served by firms of 30 percent of surveyed executives, while international markets were served by the firms of 21 percent of business executives. Complete response counts can be found in Table 22. Table 22: Geographic Client Base Location Number of Responses Percentage Lee County 82 85% Collier County 63 65% Charlotte County 57 59% Hendry County 43 44% Florida 42 43% Glades County 36 37% US Markets 29 3 International Markets 20 21% Southeast US region 20 21% Other 0 22

25 Appendix A. Historical Trends of Recurring Questions Historical trends of the seven recurring questions asked in each Executive Business Climate Survey can be found in this section. How are the current Lee County economic conditions compared to a year ago? Q Q Q Q Q Q Q1 Substantially better Moderately better Same Moderately worse Substantially worse What are your expectations for the Lee County economy one year ahead? Q Q Q Q Q Q Q1 Substantially better Moderately better Same Moderately worse Substantially worse 23

26 10 What are the current conditions in your industry in Lee County compared to one year ago? Q Q Q Q Q Q Q1 Substantially better Moderately better Same Moderately worse Substantially worse 10 What are your expectations for your own industry in Lee County one year ahead? Q Q Q Q Q Q Q1 Substantially better Moderately better Same Moderately worse Substantially worse 24

27 10 What has been your hiring trend over the last year? Q Q Q Q Q Q Q1 Substaintially increased employment Moderately increased employment Little or no change in employment Moderately reduced employment Substaintially reduced employment 10 What hiring trends do you see for your business over the next year? Q Q Q Q Q Q Q1 Substaintially increase employment Moderately increase employment Same or flat employment Moderately reduce employment Substaintially reduce employment 25

28 10 Do you plan to increase investment in your business during the next year? Q Q Q Q Q Q Q1 Substaintially increase investment Moderately increase investment Keep investment the same or flat Moderately reduce investment Substaintially reduce investment 26

29 Appendix B. Full Comments, Suggestions, and Recommendations The following lists include specific responses from the executives for the following question: Please indicate any other comments, suggestions, or recommendations you would like to make regarding the regional economy or your business. Red algae blooms and water quality I m concerned about the algae blooms and red tide affecting tourism here. People are enraged about it and it s starting to affect reservations. Water quality could be the wild card. Concerned about lasting effects of tourism and home sales due to Lake Okeechobee releases and red tide. Red Tide has collapsed the economy. Loss of potential fish for fishing and the commercial fishery will take a long time to recover. How do you estimate the loss of this? The stand-up paddleboard (SUP) industry is gone. The summer is the SUP season. Getting wet and swimming is part of it. Watching from the stand-up point-of-view is the object. What are you going to see now (dead animals, sludge, and dead algae) and you should not fall in the water. It is much like surfing with a paddle. The last race here was the Blueway race and that was iffy because of water quality. We canceled our second scheduled paddleboard race at Lovers Key in 2016 because of the water and we have not been able to have one since. The Blueway was started to stimulate summer business. We were heavily invested in stimulating the SUP industry in SW Florida and now it has collapsed. No one wants to paddle the beaches! This red tide is the worst ever recorded not just in the last ten years. How do we calculate the impact on the economy of the loss of a new and budding market like paddle boarding? Fifty percent of our European visitors have not come because they watch what is going on here. How are you going to keep alive the tourist industry over the next 4-6 years as the estuary dies? How are we going to deal with year round red tide? We need to have an immediate emergency way to collect and confine the Lake Okeechobee blooms to the lake and filter it before it destroys the west coast economy and ecosystems. The environmental issues, Lake Okeechobee runoff is a major problem to the economy here. Lake Okeechobee releases are having an adverse affect on my industry business. Hurricane Irma The local media was excellent during Hurricane Irma. They reported calm and collected without fear or drama. Broadcast media served Southwest Florida well during Hurricane Irma. As to Hurricanes, I feel that we, as a community/region, learn from each experience and are better prepared for the next one. Concerns water quality/environmental issues as well as flood Insurance. Programs/premiums. The hurricane brought a lot of competition to our area as far as restoration contractors. I indicated that my investment in my business will be down next year compared to last year. We lost money from Irma for the month of September but it brought increased business opportunities in the following months. Affordable Housing Cheaper Housing for the workforce. The level of construction starts may be up--however the median selling price prevents middle and upper-level products to be specified and used. This causes our profits to stay flat as we have to sell low-margin products in greater levels than items that are more profitable. We must continue to find ways to provide affordable housing for our workforce. 27

30 Infrastructure Would be great to have off sets with our county to continue to grow our local company and expand. New buildings. Local Government The county government is headed in the wrong direction. The city of Fort Myers is improving and is doing better. Qualified Candidates Finding qualified candidates continues to be a problem, but I feel the influx of new residents will help solve that to some degree. Occupational Licensing Easy business restrictions like occupational license requirement for industrial zones. 28