Calgary Montreal Quebec Toronto Ottawa Edmonton Philadelphia Denver Tampa Calgary Economic Development 2009 Business Survey Report www.legermarketing.com
Agenda 1 2 3 4 5 6 Objectives Methodology Key Findings Detailed Results Impact of the Economic Downturn Economic Outlook Calgary s Most Important Issues Today Importance & Satisfaction of Key Issues Rating Calgary A place for Business & Good Quality of Life Company & Respondent Profile Appendix Contact Information www.legermarketing.com
Objectives The 2008 Calgary Economic Development Business Survey aims to address the following key objectives among Calgary businesses: Determine the perceived impact of the economic downturn Assess the economic outlook for the near future Determine the importance of various factors to economic development Assess the level of importance and satisfaction with economic development efforts and areas for improvement Determine what makes Calgary an appealing place to do business from a business and quality of life perspective CED 2009 Business Survey 3
Methodology A total of 298 individuals from Calgary businesses answered the online Business Survey between June 8 th and August 6 th, 2009 This online method simulates a probability sample which would yield a maximum margin of error of ± 5.7%, 19 times out of 20. In 2008, 400 respondents were surveyed, for a maximum margin of error of 4.9%, 19 times out of 20. In analyzing the data, businesses were segmented by size (number of employees): Small (1-50 employees) Medium (51-500 employees) Large (500+ employees) When determining importance or satisfaction a scale of 1 to 7 was used, where 7 is very important or very satisfied and 1 is not at all important or very dissatisfied. CED 2009 Business Survey 4
Key Findings www.legermarketing.com
Key Findings Impact of the Economic Downturn: A majority of respondents feel that the economic downturn will ultimately have a moderate effect on Calgary s economy. The most frequently mentioned specific impact of the economic downturn is a loss of certain companies/ businesses, mentioned by 9 out of 10 businesses. Other responses mentioned by at least 50% of businesses are more stringent rules and conditions for credit, and a permanent loss of jobs. When businesses were asked about specific effects of the downturn on their own business or company, the most common responses included decreased sales (74%), scaled back expansion plans (71%) and more applicants when they have a job vacancy (71%). Also, almost no businesses report that access to capital is easier (<1%), while a majority report it as harder (55%). Economic Outlook: Respondents have very divided opinions about Calgary s economic outlook for the next 12 months; showing their uncertainty about the future. At least 28% support each of the three possible responses: that Calgary s economy will grow, stay the same, or start to grow. Divided opinions are also seen for the Industry and Company outlooks. CED 2009 Business Survey 6
Key Findings (Continued) Calgary s Most Important Issues Today: While roads / infrastructure remains the top issue facing Calgary, the economic downturn, has made cost of living/ doing business take precedence over affordable housing and lack of skilled labour Monetary concerns dominate the list of issues confronting Calgary businesses. Both revenue and cost issues are mentioned, and the most pressing issue is a lack of funds. Importance and Satisfaction of Key Economic Issues: A high quality of life to attract and retain staff has replaced Access to skilled labour as the most important issue impacting economic development. The top three issues remain the same as in 2008 (high quality of life to attract and retain staff, access to skilled labour and access to quality education, skill development and training). Competitive business taxes has seen an increase in importance from last year. While satisfaction with each of these most important issues has increased from 2008, three other issues still require attention, however, as they fall in to the high importance low satisfaction quadrant: Efficient local road network, housing affordability and competitive business taxes. These three issues are possible threats to Calgary s economic development. CED 2009 Business Survey 7
Key Findings (Continued) Rating Calgary: Calgary s airport connections continue to be one of the city s biggest strengths. Suitable number of flights from the Calgary airport appropriate for conducting business is the highest ranked aspect affecting Calgary s perception as an appealing location for business expansion and investment. Two business aspects receive more strongly disagree responses than strongly agree: Calgary s road and transit infrastructure meets the needs of businesses and there is a low cost of doing business in Calgary. Mean scores for these two are unchanged from 2008; they remain the strongest concerns to Calgary s business appeal. On many business aspects, larger companies are more likely to rate Calgary highly than are smaller companies. As in 2008, the highest rated quality of life aspects are mostly environmental: Large, accessible green spaces, Good air quality (new aspect in 2009), A wide variety of education options and Cleanliness. The lowest ranked quality of life aspects in 2009 are the same as 2008: Easily accessible elderly care, Easily accessible childcare, and Affordable housing. Affordable housing is the lowest ranked aspect, although it s mean score has improved from 2008 (3.2 vs. 2.8). The top drivers of what makes Calgary a good place to do business continue to be the same as in 2008 a strong growing economy from a business perspective and a wide variety of educational options from a quality of life perspective. CED 2009 Business Survey 8
Detailed Results www.legermarketing.com
Impact of the Economic Downturn www.legermarketing.com
Impact of Economic Downturn on Calgary How large an impact do you feel the current economic downturn will ultimately have on the Calgary economy? [Base: Total respondents n=298] Major, 26% Don't know, 2% Minor, 8% 6 out of 10 (63%) Calgary businesses feel the current economic downturn will have a moderate effect on the Calgary Economy Moderate, 63% CED 2009 Business Survey 11
Impact of Economic Downturn on Calgary (Continued) Why do you think the impact on Calgary s economy will be minor / moderate / major? [Base: Those with an opinion as to the kind of impact the current economic downturn will have on the Calgary economy n=291] Most Common Responses Major Impact Multiple response question (>100%) As the oil and gas industry recovers, so will Calgary / Calgary is heavily dependent on oil and gas industry Major Impact 39% Low value of commodities (oil and natural gas) 22% We need to diversify further from oil and natural gas 17% Lots of lay-offs / High levels of unemployment 14% Don t believe Calgary has seen the worst of the downturn yet the worst is yet to come 12% Note: All other responses were <10% each CED 2009 Business Survey 12
Impact of Economic Downturn on Calgary (Continued) Why do you think the impact on Calgary s economy will be minor / moderate / major? [Base: Those with an opinion as to the kind of impact the current economic downturn will have on the Calgary economy n=291] Most Common Response Moderate Impact Multiple response question (>100%) There will always be a global demand for oil / The demand will resume As the oil and gas industry recovers, so will Calgary / Calgary is heavily dependent on oil and gas industry Moderate Impact 18% 16% Calgary s economy is diversified 12% Mature companies have the capacity to provide stability / We can weather the storm Most Common Response Minor Impact Multiple response question (>100%) There will always be a global demand for oil / The demand will resume Mature companies have the capacity to provide stability / We can weather the storm 12% Minor Impact 25% 25% Calgary s economy is diversified 21% Note: All other responses were <10% each CED 2009 Business Survey 13
Impact of Economic Downturn on Calgary (Continued) And what specifically do you think the economic impacts of the downturn will be? [Base: Those with an opinion as to the kind of impact the current economic downturn will have on the Calgary economy n=291] Most Common Responses Multiple response question (>100%) Loss of certain companies / businesses 90% More stringent rules and conditions for credit 68% Permanent loss of jobs 53% A lower reputation for Calgary as a leading business City 41% A surplus of skilled labour 40% Loss of certain industries 36% Permanently deflated price in the housing market 16% All other responses were <3% The overwhelming majority (90%) feel that the economic downturn will result in loss of certain companies and businesses. Seven in 10 businesses (68%) feel there will be more stringent rules for credit and more than half (53%) say there will be a permanent loss of jobs. CED 2009 Business Survey 14
Impact of Economic Downturn on Industry or Sector Thinking about your own industry or sector, has the economic downturn mostly had a positive impact, negative impact or no impact? [Base: Total respondents n=298] Positive impact, 10% No impact, 10% Can't say / unsure, 4% Negative impact, 76% Three in four (76%) Calgary businesses feel the economic downturn has had a negative impact on their industry or sector. CED 2009 Business Survey 15
Impact of Economic Downturn on Place of Employment Thinking about your own business or place of employment, has the economic downturn mostly had a positive impact, negative impact or no impact? [Base: Total respondents n=298] No impact, 13% Positive impact, 12% Can't say / unsure, 3% Negative impact, 71% Seven in 10 (71%) businesses say the economic downturn has had a negative impact on their business or place of employment. Small and medium sized businesses are the most likely to say the economic downturn has had a negative impact on their business or place of employment (74% and 73% respectively vs. 54% for large companies). CED 2009 Business Survey 16
Impact of Economic Downturn on Place of Employment (Continued) Still thinking of your own business or place of employment, which of the following impacts whether positive or negative has it experienced as a result of the economic downturn? [Base: Total respondents n=298] Change in Sales Change in Input Costs Change in cost of Borrowing Change in access to Capital Change in Expansion Plans Change to your Workforce Situation Increased No Impact Decreased Can t Say 8% 10% 74% 8% Higher No Impact Lower Can t Say 20% 28% 40% 12% Higher No Impact Lower Can t Say 30% 27% 18% 26% Easier No Impact Harder Can t Say 0.4% 25% 55% 19% Increased No Impact Scaled back Can t Say 8% 17% 71% 4% Increased staff, hours or cost No Impact Downsized staff, hours or cost Can t Say 7% 25% 65% 4% Change in the number of applicants when you have a job vacancy Fewer applicants No Impact More applicants Can t Say 3% 10% 71% 16% CED 2009 Business Survey 17
Impact of Economic Downturn on Place of Employment (Continued) Which of these best describe your current workforce situation? [Base: Total respondents n=298] 58% Only 13% of Calgary businesses are currently hiring. 13% 29% Most are maintaining a constant staffing level (58%) and 3 in 10 (29%) are actually reducing staff. Hiring Maintaining a constant staffing level Reducing staff CED 2009 Business Survey 18
Impact of Economic Downturn on Place of Employment (Continued) In the past year, has your business or place of employment taken any of the following actions? [Base: Total respondents n=298] Responses by Company Size Multiple response question (>100%) Total Small Medium Large Not replacing workers who leave 57% 47% 65% 63% Layoffs 41% 35% 59% 26% Wage freezes 38% 36% 50% 30% Eliminating contract workers 33% 22% 41% 51% Workday or hours adjustment 26% 22% 40% 12% Wage or benefit rollbacks 15% 16% 17% 7% None of the above 19% 26% 12% 12% Indicates significant difference 8 in 10 Calgary businesses have made one or more of these adjustments, most commonly not replacing workers who leave. While small companies are the least likely to have taken any of the above actions (26% say they have done none of the above), medium sized companies are the most likely to have carried out layoffs, wage freezes and adjusting workday hours. CED 2009 Business Survey 19
Impact of Economic Downturn on Place of Employment Comparison to 2008 These results are in stark contrast to last year where: 73% of the businesses were experiencing worker or employee shortages. [n=400] 83% expected to hire new employees in the next twelve months. [n=400] 70% were experiencing difficulties hiring staff [n=400]; and 72% were changing the way they operate in order to keep staff (telework, flexible work schedules, additional or attractive benefits) [n=400] The economic downturn has caused businesses to completely change the way they are currently doing business and the way they see themselves doing business in the near future. Rather than being short staffed and looking to hire and retain staff, at least 3 in 5 Calgary businesses have laid off workers or not replaced workers who leave and only 13% are currently hiring. CED 2009 Business Survey
Economic Outlook www.legermarketing.com
Calgary s Economy in the Near Future Do you expect Calgary s economy to slow down even more, stay the same, or start to grow in the next twelve months? [Base: Total respondents n=298] Stay the same, 36% Don't know, 5% Start to grow, 31% Slow down even more, 28% CED 2009 Business Survey 22
Perceived Industry Growth Over the Next Twelve Months Thinking about you own industry or sector, do you expect it to slow down, stay the same, or grow in the next twelve months? [Base: Total respondents n=298] Stay the same, 41% Don't know, 3% Grow, 29% Slow down even more, 27% CED 2009 Business Survey 23
Perceived Company Growth Over the Next Twelve Months Thinking about your own business or place of employment, do you expect it to slow down, stay the same, or grow in the next twelve months? [Base: Total respondents n=298] Stay the same, 40% Don't know, 2% Grow, 32% Slow down even more, 26% CED 2009 Business Survey 24
Calgary s Most Important Issues Today www.legermarketing.com
The Top Issues Facing Calgary Today What do you think are the top three most important issues facing Calgary today? [Base: Total respondents n=298] Roads / Infrastructure 33% 22% Roads / Traffic 11% infrastructure Cost of living / doing business 27% Governm ent management / urban planning 26% Public transit 24% CED 2009 Business Survey 26
The Top Issues Facing Calgary Today, by Size of Business 40% 35% 30% 25% 20% 15% 10% 5% 0% 34% 32% 31% 26% Roads / Infrastructure 32% 30% 27% 26% 26% 23% 23% 23% Cost of living / doing business Total Small Medium Large Government management / urban planning 28% 24% 25% 21% Public transit CED 2009 Business Survey 27
Comparison to Last Year - The Top Issues Facing Calgary in 2009 vs. 2008 Cost of living / doing business 13% 27% Roads / Infrastructure 33% 44% Lack of affordable housing 15% 31% Lack of skilled labour 9% 21% 2008 2009 CED 2009 Business Survey 28
The Top Issues Facing Calgary Today With the economic downturn experienced in the last year, lack of affordable housing (15%) and lack of skilled labour (9%) have become less pressing issues. In 2008, 31% of respondents name lack of affordable housing and 21% of respondents named lack of skilled labour. Instead, the cost of living or of doing business has become a large concern. In 2008, only 13% of respondents listed this concern, but in 2009 that number has grown to 27%. Roads / Infrastructure remains a top issue. 44% of respondents listed it in 2008, and 33% list it in 2009. CED 2009 Business Survey 29
The Top Issues Facing Calgary Today and Their Impact on Economic Development The top issues facing Calgary today present a challenge as they may negatively affect: Growth / development (19%) Calgary s attractiveness to people / businesses (18%) Traffic congestion / transit accessibility (16%), and The quality of life (13%) A higher proportion of small and of medium size companies are concerned about the impact on growth and development Small (21%) Medium (21%) Vs. Large (7%) CED 2009 Business Survey 30
Top Issues Confronting Calgary Businesses Right now, what are the top three issues confronting your business? [Base: Total respondents n=298] Lack of funding / Access to funds 17% Loss of revenue / Decrease in sales 16% Cost of operations / doing business 13% Monetary concerns dominate the list of issues confronting Calgary businesses. Both revenue and cost issues are mentioned, and the most pressing issue is a lack of funds. CED 2009 Business Survey 31
Importance and Satisfaction of Key Issues www.legermarketing.com
The Most Important Issues Impacting Economic Development in Calgary How important are each of the following issues that pertain to economic development in Calgary? [Base: Total respondents n=298] Very Important (6 or 7 on a 7-point scale) Economic Development Issues in Calgary 2009 2008 2007 A high quality of life to attract and retain staff ** 80% 82% ** Access to skilled labour 79% 86% 88% Access to quality education, skill development and training 78% 81% 70% Competitive business taxes 73% 67% 63% Housing affordability 71% 74% 75% Transportation infrastructure: efficient local road network Adequate supply and access to cost effective utilities (i.e. power & water) 70% 74% 84% 69% 65% 61% Indicates significant difference **Note that A high quality of life to attract and retain staff was a new issue added in the 2008 survey. CED 2009 Business Survey 33
The Most Important Issues Impacting Economic Development in Calgary -Top 5- How important are each of the following issues that pertain to economic development in Calgary? [Base: Total respondents n=298] Very Important (6 or 7 on a 7-point scale) Economic Development Issues in Calgary 2009 2008 2007 A high quality of life to attract and retain staff ** 80% 82% ** Access to skilled labour 79% 86% 88% Access to quality education, skill development and training 78% 81% 70% Competitive business taxes 73% 67% 63% Housing affordability 71% 74% 75% Fewer individuals see Access to skilled labour as an important issue Indicates significant difference **Note that A high quality of life to attract and retain staff was a new issue added in the 2008 survey. CED 2009 Business Survey
The Most Important Issues Impacting Economic Development in Calgary (Continued) In 2009, a high quality of life to attract and retain staff has replaced access to skilled labour as the most important issue impacting economic development in Calgary. Access to skilled labour dropped out of the top priority spot for the first time, after a decrease of 7% from 2008. Nonetheless, the top three issues impacting economic development remain the same as in 2008 and 2007, and are all related to labour issues: high quality of life to attract and retain staff (80%), access to skilled labour (79%) and access to quality education, skill development and training (78%). CED 2009 Business Survey 35
The Most Important Issues Impacting Economic Development in Calgary (Continued) While these labour issues are the top issues within each business size category, they are most important to large companies. Very Important (6 or 7 on a 7-point scale) Economic Development Issues in Calgary Small Medium Large A high quality of life to attract and retain staff 76% 78% 95% Access to skilled labour 73% 83% 88% Access to quality education, skill development and training 74% 80% 93% CED 2009 Business Survey 36
Other Important Economic Development Issues The following were still seen as important, but lower priority issues. Public transportation has decreased in importance over the last year. How important are each of the following issues that pertain to economic development in Calgary? [Base: Total respondents n=298] Very Important (6 or 7 on a 7-point scale) Economic Development Issues in Calgary 2009 2008 2007 Air access (incoming and outgoing) 66% 63% 66% Access to debt financing or credit 64% ** ** An environment of innovation and research** 64% 66% ** Acess to venture capital 64% ** ** Transportation infrastructure: public transit system 64% 78% 84% Availability of suitable office space 58% ** ** Minimizing environmental impact** 56% 62% ** Indicates significant difference ** Note that Minimizing environmental impact and An environment of innovation and research were new items added to the 2008 survey. Access to venture capital, Access to debt financing or credit and Availability of suitable office space were new items added to the 2009 survey. CED 2009 Business Survey 37
Satisfaction With The Most Important Economic Development Issues in Calgary How satisfied are you that each of the following economic development activities and issues are being provided and / or addressed as they pertain to Calgary? [Base: Total Respondents n=298] Economic Development Mean Satisfaction Score Importance Rank Very Satisfied (6,7) Very Dissatisfied (1,2) Issues in Calgary 5.2 3 47% 3% Access to quality education, skill development and training 5.0 1 40% 5% A high quality of life to attract and retain staff 4.6 7 24% 8% Adequate supply and access to cost effective utilities (i.e. power & water) 4.5 2 20% 7% Access to skilled labour 4.2 4 17% 12% Competitive business taxes 3.9 6 20% 23% Transportation infrastructure: efficient local road network 3.7 5 10% 23% CED 2009 Business Survey 38
Satisfaction With The Most Important Economic Development Issues in Calgary How satisfied are you that each of the following economic development activities and issues are being provided and / or addressed as they pertain to Calgary? [Base: Total Respondents n=298] Very Satisfied (6 or 7 on a 7-point scale) Economic Development Issues in Calgary 2009 2008 Difference A high quality of life to attract and retain staff 40% 28% 12% Access to skilled labour 20% 9% 11% Access to quality education, skill development and training 47% 36% 11% Competitive business taxes 17% 17% 0% Housing affordability 10% 8% 2% Transportation infrastructure: efficient local road network Adequate supply and access to cost effective utilities (i.e. power & water) 20% 15% 5% 24% 21% 3% Indicates significant difference CED 2009 Business Survey 39
Satisfaction and Dissatisfaction with the Most Important Issues Satisfaction with access to quality education, skill development and training and quality of life to attract and retain staff appear to be strong in 2009, as they were in 2008. However, the percentage of those who are Very Satisfied (6,7) with both access to quality education, skill development and training and quality of life to attract and retain staff has increased from 2008. Access to skilled labour is still considered one of the most important issues to economic development, and in 2009 the satisfaction ratings have increased. In 2008, only 9% of respondents were Very Satisfied with this issue; this has grown to 20% in 2009. Other issues show small increases in Very Satisfied percentages from 2008. Of the most important issues, only two show a higher percentage of those Very Dissatisfied than those Very Satisfied: housing Affordability (net -14%) and efficient local road network (net -3%). CED 2009 Business Survey 40
Importance Versus Satisfaction (Issues and Activities) Low Importance High Satisfaction High Importance High Satisfaction Low Importance Low Satisfaction High Importance Low Satisfaction CED 2009 Business Survey 41
- Satisfaction + Importance Versus Satisfaction (Issues and Activities) Availability of Suitable Industrial Space 5.5 Air Access5.3 5.1 4.9 Access to 4.1 debt financing or credit Efficient 3.9 public transit system 3.7 Access to quality training/education Environment 4.7 Access of innovation to skilled and research 4.5 labour Access to 5.2 5.4 5.6 5.8 6 6.2 6.4 venture 4.3 capital Streamlined processes for building permits/approvals Availability of Suitable Office Space Minimizing environmental impact Supply and Access to Cost-Effective Utilities Efficient road network High quality of life Competitive Business Taxes Housing Affordability 3.5 - Importance + CED 2009 Business Survey 42
Importance Versus Satisfaction (High Importance High Satisfaction) The intercepts on the table on the previous slide represent the overall mean scores for the importance variables and satisfaction variables. The following are items clearly into the high importance - high satisfaction zone: Access to quality training/education (importance 6.2 vs. satisfaction 5.2) High quality of life to attract and retain staff (importance 6.2 vs. satisfaction 5.0) Access to skilled labour (importance 6.2 vs. satisfaction 4.5) Supply and access to cost-effective utilities (importance 5.9 vs. satisfaction 4.6) CED 2009 Business Survey 43
Importance Versus Satisfaction (Needs Improvement) Items in the high importance - low satisfaction zone are priorities pertaining to Calgary s economic development that businesses are generally unsatisfied with. Efficient local road network (importance 5.9 vs. satisfaction 3.9) Housing affordability (importance 5.8 vs. satisfaction 3.7 ) Competitive business taxes (importance 6.0 vs. satisfaction 4.2) CED 2009 Business Survey 44
Rating Calgary A place for Business & Good Quality of Life www.legermarketing.com
Calgary as a Location for Business Expansion and Investment Most aspects mentioned in the survey received a mean score of above 4 meaning that in general, businesses perceive Calgary as an appealing location for business expansion and investment. Aspects Suitable number of flights from the Calgary airport appropriate for conducting business Easy access to post-secondary education and to providers of professional development programs Strong communications / technology infrastructure Appeals to organizations as a good place to do business Strongly Agree (6 or 7) Strongly disagree (1 or 2) Mean Score 2009 Mean Score 2008 58% 3% 5.5 5.4 46% 5% 5.1 4.8 38% 4% 5.1 5.0 36% 6% 4.9 5.1 Strong / growing economy 30% 7% 4.7 5.8 Skilled labour force that can support business expansion 29% 9% 4.6 4.7 International awareness 26% 11% 4.4 - High degree of consumer confidence 24% 6% 4.5 5.1 Competitive tax rates 23% 15% 4.3 - Note: The wording of some response options changed slightly from 2008 to 2009. Meanings remain consistent. Indicates significant difference CED 2009 Business Survey 46
Calgary as a Location for Business Expansion and Investment (Continued) While Calgary s airport connections continue to be one of the city s biggest strengths, due to the economic downturn over the past year, Calgary is not as highly regarded as a growing economy (4.7 vs. 5.8 in 2008) or for having a high degree of consumer confidence (4.5 vs. 5.1 in 2008). Aspects Strongly Agree (6 or 7) Strongly disagree (1 or 2) Mean Score 2009 Mean Score 2008 Diverse economy 19% 16% 4.1 3.7 Wide amount of access to venture capital 16% 12% 4.2 - Wide availability of cost effective utilities 14% 11% 4.2 - Calgary s road and transit infrastructure meets the needs of business 13% 28% 3.7 3.7 There is a low cost of doing business in Calgary 7% 36% 3.2 3.1 As was seen in 2008, Calgary s road and transit infrastructure and high cost of doing business continue to be seen as deterrents for business expansion and / or investment. Note: The wording of some response options changed slightly from 2008 to 2009. Meanings remain consistent. CED 2009 Business Survey 47
Calgary as a Location for Business Expansion and Investment (Continued) In general, large companies are more likely than small companies to view Calgary as a good location for business expansion and investment. Specific aspects rated higher by large companies include: Calgary s road and transit infrastructure meets the needs of business (4.1 vs. 3.5) Calgary has a strong/growing economy suitable for business expansion and investment (4.9 vs. 4.5) As a whole, Calgary appeals to organizations as a good place to do business (5.4 vs. 4.7) Calgary has competitive tax rates (4.6 vs. 3.9) There is a wide amount of access to venture capital/financing in Calgary (4.6 vs. 3.8) Large companies are also the most likely to believe Calgary has a high degree of consumer confidence (5.0 vs. medium: 4.5 and small: 4.4). CED 2009 Business Survey 48
Quality of Life In terms of overall quality of life, Calgary is most highly regarded for its large, accessible green spaces, good air quality, wide variety of educational options and cleanliness. Services Strongly Agree (6 or 7) Strongly disagree (1 or 2) 2009 Mean Score 2008 Mean Score Large, accessible green spaces 52% 3% 5.4 5.1 Good air quality 50% 5% 5.3 -- A wide variety of educational options 48% 4% 5.2 5.0 Cleanliness 47% 4% 5.1 5.0 Abundance of recreation and leisure options 39% 6% 5.0 4.8 Quality urban amenities and services 35% 7% 4.8 4.8 Safety and security 32% 11% 4.6 4.7 Dynamic cultural and arts scene 22% 15% 4.2 4.1 CED 2009 Business Survey 49
Quality of Life (Continued) While quality of life attributes rank out in relatively the same order as they did in 2008, Calgary as a diverse and multicultural city appears to rate lower this year than last (3.7 vs. 4.8). Easily accessible elder and child care and affordable housing continue to receive the lowest ratings. Services Strongly Agree (6 or 7) Strongly disagree (1 or 2) 2009 Mean Score 2008 Mean Score Accessible health care 16% 24% 3.8 3.7 A diverse and multicultural city 12% 25% 3.7 4.8 Vibrant inner city 9% 29% 3.5 3.4 High quality public transit system 8% 28% 3.4 3.5 Appealing architecture 8% 32% 3.3 3.6 Easily accessible elderly care 5% 20% 3.3 3.1 Easily accessible childcare 6% 21% 3.3 3.0 Affordable housing 5% 32% 3.2 2.8 Indicates significant difference CED 2009 Business Survey 50
Quality of Life (Continued) In general, medium sized business are more likely to view Calgary as having a good quality of life. Specific aspects rated higher by medium than small sized companies include: I feel safe and secure in Calgary (4.8 vs. 4.4) Calgary is known for its diversity and multiculturalism (3.9 vs. 3.4) Calgary has easily accessible and available childcare (3.7 vs. 3.1) On the other hand, medium sized businesses rate Calgary the lowest for having a dynamic cultural and arts scene (3.9 vs. large: 4.6 and small: 4.4). Large companies rate Calgary the highest in terms of offering a wide variety of educational options (5.7 vs. medium: 5.0 and small: 5.2) and are also more likely than small businesses to believe Calgary has a good amount of available recreation and leisure options (5.4 vs. 4.9). CED 2009 Business Survey 51
The Scanner Analysis Businesses rated Calgary 5.1 (out of 7) as an appealing location for business expansion and investment. This is lower compared to the 2008 rating of 5.9. Similar to last year, a regression analysis was conducted to determine what makes Calgary an appealing place to do business. The regression model produced five significant drivers. The results show that what makes people perceive Calgary as a good place to do business is its strong growing economy, easy access to post secondary and professional development courses, high degree of consumer confidence, international awareness about the city as well as wide availability of cost-effective utilities. Skilled labor force and diverse economy were drivers in 2008 but with an economic downturn, these factors were replaced by easy access to post secondary and professional development courses and wide availability of cost-effective utilities. The other factors were same as 2008. Further, a separate regression was run, this time testing the quality of life factors and their relation to the same dependent variable - perception of Calgary as a place to do business. Among these, wide variety of education options, quality urban amenities and services, clean city and housing affordability appear to be the drivers in terms of quality of life. As businesses are looking to retain and attract a skilled labour force, quality of life aspects are considered highly important. The drivers missing this year (compared to 2008) are vibrant inner city and diverse and multicultural city. Quality urban amenities and services appears as a new driver this year. CED 2009 Business Survey 52
The Scanner Analysis In 2009, the top drivers (strong growing economy and wide variety of educational options) are the same as 2008. Not surprisingly, given the weakened economy, economic concerns are somewhat higher drivers. A strong, growing economy is again the highest driver of Calgary s appeal as a good place to do business, and has an even higher driver magnitude than last year (.282 vs..255). Similarly, a high degree of consumer confidence is again the third highest driver, with a higher driver magnitude in 2009 than in 2008 (.135 vs..128). Also, easy access to post-secondary education/training is a new driver this year, and ranks a strong second in magnitude at.219. In 2008, two drivers stood out as major concerns that could jeopardize Calgary s image: a skilled labour force (business factor) and affordable housing (quality of life factor). Both issues have become smaller threats in 2009: a skilled labour force is no longer among the top 5 business issues driving Calgary s appeal; and affordable housing is now the 4 th highest magnitude quality of life factor, after ranking as the 2 nd highest in 2008. As well, the business community s mean satisfaction with the issue of affordable housing has climbed from 2.8 to 3.2. The regression results are graphically displayed on the next two slides. CED 2009 Business Survey 53
The Overall Scanner The following table graphically displays the regression results. Ranking of the attributes is determined by the Beta scores produced by the regression model. The higher the Beta, the higher the magnitude of the driver. Appeals as a good place to do business (R Square.692) Strong growing economy (.282) Businesses have easy access to post-secondary education and providers of professional development programs (.219) High degree of consumer confidence (. 135) The R square shows the degree to which predictors are related to the dependent variable. Business factors Great deal of international awareness about Calgary (.120) Wide availability of cost effective utilities (.116) CED 2009 Business Survey 54
The Overall Scanner The following table graphically displays the regression results. Ranking of the attributes is determined by the Beta scores produced by the regression model. The higher the Beta, the higher the magnitude of the driver. Appeals as a good place to do business (R Square.493) Wide variety of educational options (.29 1) Quality urban amenities and services (.279) Note that the R square shows the degree to which predictors are related to the dependent variable. Clean city (.222) Quality of life factors Affordable housing (.187) CED 2009 Business Survey 55
Company & Respondent Profile www.legermarketing.com
Business Conducted Outside of Alberta Where do you currently conduct business? [Base: Businesses not planning to expand operations outside of Alberta in the next 12 months (n=287)] 72% of respondents indicate that they currently conduct business outside of Alberta. This is a slight decrease from 75% in 2008. 13% of those who do not currently conduct business outside of Alberta are planning to do so in the next 12 months. Outside of North America, the most popular places for companies to currently be conducting business are Europe (29%) and Asia (24%). Other places mentioned include Central or South America (20%), Middle East (18%) and Africa (14%). Canada 85% Within North America 52% Europe Asia Central or South America Middle East Africa 29% 24% 20% 18% 14% Oceania Other 3% 2% CED 2009 Business Survey 57
Company Size How many people work for your company in the Calgary office (s)? [n=298] Over 500 Employees, 14% Don't know / Refuse, 10% 1-50 Employees, 49% 51-500 Employees, 26% CED 2009 Business Survey 58
Company size (Continued) How many people, including yourself, work for your company in the Calgary office(s)? [n=298] 1-10 employees 25% 11-50 employees 25% 51-100 employees 8% 101-500 employees 18% Over 500 employees 14% Don t know/no response 10% CED 2009 Business Survey 59
Industry What industry or sector would you say your company falls under? [n=298] Energy and Energy Services 14% Business or Advisory Services 11% Government / Public Sector 11% Manufacturing 9% Real Estate Development / Construction 9% Information and Communication Technology 6% Financial Services 6% Education 5% Tourism / Hospitality / Restaurant 5% Other 5% Transportation and Logistics 3% Film or Television 3% Culture and Arts 3% Refuse 3% Retail 2% Community-based Organization 1% Agriculture 1% Not-for-profit 1% CED 2009 Business Survey 60
Main Role What is your current main role within your company? (multiple responses allowed) [n=298] Company President 15% Manager (General or Regional) 13% Business Owner 12% Vice President 10% Business Development / Sales 9% Other 9% Marketing / PR 6% Human Resources 6% Refuse 5% Project Manager 4% Corporate Strategic Planning 3% Research/ Business Intelligence 3% Finance and Accounting 2% Government Relations 1% Facility Operations & Management 1% Business Investment Planning 1% CED 2009 Business Survey 61
Appendix www.legermarketing.com
Importance of Key Issues Importance Not Important Very Important Don't know 1 2 3 4 5 6 7 Streamlined processes for building permits and approvals 5% 3% 3% 10% 16% 22% 34% 7% Access to skilled labour 2% -- 1% 3% 14% 25% 54% 1% Access to venture capital 3% 2% 4% 8% 15% 28% 36% 4% Access to debt financing or credit 4% 2% 3% 7% 16% 26% 38% 4% Minimizing environmental impact 3% 2% 4% 11% 23% 25% 31% 1% Competitive business taxes -- 1% 2% 8% 14% 28% 45% 2% Adequate supply and access to cost effective utilities (i.e. power & water) -- 1% 2% 9% 17% 33% 36% 2% Efficient local road network 2% 1% 2% 8% 15% 32% 39% 1% Efficient public transit system 1% 1% 3% 9% 22% 20% 44% -- Air access (incoming and outgoing) 1% 2% 1% 8% 20% 35% 31% 2% Access to quality education, skill development and training -- -- -- 5% 15% 31% 48% -- Availability of suitable industrial space 1% 2% 4% 11% 30% 35% 14% 2% Availability of suitable office space 2% 1% 4% 8% 26% 39% 20% -- A high quality of life to attract and retain staff -- 1% 1% 4% 14% 34% 46% -- Housing affordability -- 1% 1% 6% 20% 31% 41% 1% An environment of innovation and research -- 1% 2% 8% 24% 28% 37% 1% CED 2009 Business Survey
Satisfaction with Key Issues Satisfaction Very Dissatisfied Very Satisfied Don't know 1 2 3 4 5 6 7 Streamlined processes for building permits and approvals 7% 11% 12% 19% 14% 7% 2% 28% Access to skilled labour 1% 5% 11% 25% 33% 16% 5% 4% Access to venture capital 3% 8% 9% 22% 21% 11% 3% 23% Access to debt financing or credit 4% 9% 9% 25% 19% 13% 4% 17% Minimizing environmental impact 6% 6% 20% 20% 25% 11% 5% 8% Competitive business taxes 6% 6% 12% 23% 25% 12% 5% 10% Adequate supply and access to cost effective utilities (i.e. power & water) 2% 6% 10% 23% 24% 17% 7% 10% Efficient local road network 11% 12% 16% 18% 20% 16% 4% 2% Efficient public transit system 10% 12% 18% 19% 24% 9% 4% 3% Air access (incoming and outgoing) -- 2% 4% 11% 25% 38% 15% 5% Access to quality education, skill development and training 1% 1% 5% 16% 29% 36% 11% 1% Availability of suitable industrial space 1% 2% 3% 15% 33% 21% 5% 19% Availability of suitable office space 2% 3% 6% 15% 27% 30% 9% 8% A high quality of life to attract and retain staff 1% 4% 8% 15% 30% 31% 9% 2% Housing affordability 8% 15% 17% 28% 21% 8% 2% 1% An environment of innovation and research 2% 6% 10% 26% 24% 22% 6% 5% CED 2009 Business Survey
Calgary as a Location for Business Expansion Agreement There are a suitable number of flights from the Calgary airport appropriate for conducting business Calgary's road and transit infrastructure meets the needs of business Calgary has a strong/growing economy suitable for business expansion and investment Strongly Disagree Strongly Agree 1 2 3 4 5 6 7 Don't know 1% 2% 4% 10% 21% 36% 22% 4% 12% 16% 19% 19% 20% 8% 6% 1% 2% 5% 8% 27% 27% 24% 6% 1% Calgary has competitive tax rates 6% 9% 12% 22% 21% 17% 5% 8% There is a low cost of doing business in Calgary 14% 22% 22% 18% 13% 6% 1% 3% There is a high degree of consumer confidence in Calgary 2% 4% 16% 24% 28% 20% 5% 2% Calgary has a skilled labour force that can support business expansion 3% 5% 12% 22% 27% 22% 8% 1% There is a wide availability of cost-effective utilities in Calgary 4% 7% 14% 26% 23% 12% 3% 12% Calgary has a strong communications/ technology infrastructure suitable for business There is a wide amount of access to venture capital/ financing in Calgary Calgary has a diverse economy appropriate for business expansion and investment Calgary businesses have easy access to post-secondary education and to providers of professional development programs As a whole, Calgary appeals to organizations as a good place to do business 1% 3% 6% 14% 32% 27% 11% 6% 3% 10% 10% 17% 19% 13% 3% 25% 6% 10% 17% 20% 26% 13% 5% 2% 1% 4% 7% 14% 27% 33% 12% 1% 1% 5% 6% 17% 33% 29% 7% 2% There is a great deal of international awareness about Calgary 4% 7% 16% 19% 23% 20% 7% 4% CED 2009 Business Survey
Quality of Life in Calgary Agreement Strongly Disagree Strongly Agree Don't know 1 2 3 4 5 6 7 Calgary is a clean city 2% 3% 8% 12% 28% 35% 12% -- I feel safe and secure in Calgary 4% 8% 10% 19% 28% 25% 7% -- Calgary has quality urban amenities and services 2% 5% 8% 21% 29% 27% 9% 1% Calgary has large, accessible green spaces -- 3% 5% 12% 27% 34% 18% 1% Calgary has good air quality 2% 2% 3% 14% 28% 36% 14% -- Health care is accessible in Calgary 10% 14% 19% 21% 19% 12% 5% 1% Housing is affordable in Calgary 13% 19% 25% 25% 13% 5% 1% -- Calgary has a dynamic cultural and arts scene 7% 8% 15% 23% 24% 14% 8% 2% Calgary has a vibrant inner city 10% 19% 16% 25% 20% 7% 2% 2% Calgary is known for its diversity and multiculturalism 8% 16% 21% 25% 16% 9% 3% 2% Calgary has a high quality public transportation system 14% 14% 21% 23% 19% 6% 2% 1% Calgary's architecture appeals to a lot of people 14% 17% 23% 20% 13% 7% 1% 4% There are an abundance of recreation and leisure options in Calgary 2% 4% 9% 18% 27% 26% 13% 1% There are a wide variety of educational options in Calgary 1% 3% 9% 12% 26% 35% 14% 1% Calgary has easily accessible and available childcare 9% 12% 13% 13% 10% 4% 1% 37% Calgary has easily accessible and available elder care 9% 11% 14% 14% 9% 4% 1% 36% CED 2009 Business Survey