Richmond Business Development Report 2013

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Richmond usinessevelopment Program

2 13 eport

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Richmond u iness Development Report 2013

Connect wit the City of Richmond s Economic Development Office.Phone: 604 247 4923Email: [email protected]: www.businessinrichmond.ca

_ @RichmondEDOJ IRichmondEconomicDevelopment

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Introduction to the City of RichmondBusiness Deve lopment ProgramThe City of Richmond is committed to providing a high levelof service to our business community. In 2013 the EconomicDevelopment Office launched a business development initiativewhich serves to: Provide a dedicated point of contact for business clients to

access City programs, services and information. Facilitate municipal permits and processes related to businessdevelopment. Identify solutions to concerns faced by the business

ommunity. Identify new opportunities for business development inRichmond. Measure and monitor local business and sector performance

and ga ther business intelligence for areas of potentialimprovement to the Richmond business environment.

Proactively engage the Richmond business community to buildlasting relationships and partnerships.

Promote Richmond as a destination for business andinvestment, and a talented workforce .The basis for the Richmond Business Development Program is asurvey whi h asks questions on companies operations, markets,workforce, future plans and prospects, as well as constraints togrowth.Data is used in overall policy and program development, as wellas to identify opportunities to provide support to businesseseither undertaking expansion plans or which are at risk of leavingthe ommunity.This report provides a summary of the outcomes from the 2013program and an analysis of trends, opportunities and concernsfaced by the Richmond business community. The results willprovide a basis for economic development initiatives andprograms throughout 2014.The final page of the Richmond Business Development Reportlists City services available to support existing and prospectivebusinesses in our community.

City of Richmond

MERICAN CITIESOF THE FUTURE 2013 14est usiness Friendlinessmall CityTop Ten

RICHMONDBRITISH COLUMBIA

MERICAN CITIESOF THE FUTURE 2013 14mall CityTop TenRICHMONDBRITISH COLUMBIA

OF THE FUTURE 2013 14Best FDI Strategymall CityTop Ten

RICHMONDBRITISH COLUMBIA

AwardsRichmond ranked in thetop 1 by fDi Magazine inthree categories, including3 rd overall among small citiesin the Americas.

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Richmond Business Development Report 2013

2 13 Business DevelopmentProgram ProfileCompanies ContactedThe companies selected for participation inthe Richmond Business Development Program( Program ) are locally established economic driversspanning the sectors representative of Richmond'seconomy. In 2013, companies were contactedas part of the Program .Participating CompaniesOf the businesses contacted in 2013, 8completed the survey. The majority of responsescame from the information technology, greenindustries, manufacturing, agriculture foodprocessing, transportation & logistics, and aerospace& aviation sectors . 76% of the businesses werecompany headquarters with the remainderrepresenting regional head offices, satellite officesor other types of facilities.

Profile of Companies ContactedNumber of businesses contacted in 2013: 111Average size of facility: 51,938 square feetAverage number of employees: 123

Profile of ParticipantsNumber of businesses who participatedin 2013: 8Response Rate : 43Average size of facility: 72,855 square feetAverage number of employees: 195Average revenue reported: 81,218,216

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Companies Contacted by Sector6

6

14

Surveys Taken by Sector

erospace & viation griculture& Food Processing Green Industries Information Technology

ife Sciences Manufacturing Other ProfessionalServices Retai l Tourism Transportation& Logistics

erospace & viation griculture& Food Processing Construction Green Industries Information Techno logy

ife Sciences Manufacturing Professional Services Retail Transportation& Logistics

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What usinesses SaidThe following pages highlight trends, opportunitiesand concerns faced by the Richmond businesscommunity, as reported through the surveyscompleted in 2013.Workforce TrendsOf the businesses surveyed, 18 reported a decreasein workforce over the past two years, while 14reported no change. The majority, at 65 , reportedan increase in number of employees over the pasttwo years.At 78 , a large share of the businesses surveyedpredicted an increase in their workforce over thenext two years; only 8 expected to cut back on thenumber of employees . 2 of respondents did notanswer questions related to workforce trends.Employee Concerns31 companies representing 4,275 employees citedcommute and transportation to be their employees'top concern. Businesses reported the followingchallenges to their ability to recruit suitable talent,ranked in order of importance:1. Commute/Transportation

31 companies with 4,275 employees)2. Cost of Living(29 companies with 3,938 employees)3. Child Care Availability

12 companies with 2,722 employees)4. Housing Availability

9 companies with 1,437 employees)

City of Richmond

Workforce Change Next Two Years1

No Response Decrease Increase Stay the same

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Richmond Bus iness Development Report 2013

Expansion Plans88 of the businesses surveyed indicated theyplanned to expand their operation in the next twoyears; 10 did not plan to expand and 2 did notreply. The accompanying chart demonstrates themost common forms of expansion with the top oneslisted below.1. Hire Employees 31)2. Add Products or Services (27)3 . Invest in Equipment & Technology 25)4. Lease more Space 14)90 of businesses with plans to expand in thenext two years anticipated facing constraints whenexecuting these plans . Lack of skilled workers,lack and/or affordability of space & facilities, andfinancing were listed as the top constraints.

usiness LocationOf the businesses who participated in the 2013Program, 35 were considering a location changein the next two years because their facilities weretoo small, too large, or otherwise unsuitable. Mostof these 15 businesses) were searching for a newfacility elsewhere in Richmond, with 7 companiesalso exploring other options in Metro Vancouver. 5companies did not specify which community(ies) theywere considering for a new location.

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15

Expansion Plans - Next Two Years

of Businesses

Constraints to Expansion

6

8

18of Businesses

Add products or services Hire employeess Invest in equ ipment& technology Lease more space Renovate current spaceto generate efficiencies Other

Financing Lack andlor affordabilityof space & facilities Lack of skilled workers Local Regulationsie. permitting zoning etc.

Not Applicable Other TIming

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Sales Mark sOf the businesses surveyed, 70 reported anincrease in sales over the past two years; 10 , adecrease and 20 , no change.The businesses surveyed currently sell most of theirproducts and services to markets in BC, Canada andthe US, for a combined total of 58 . In the next twoyears , respondents anticipate the most significantnew export opportunities to be for markets in LatinAmerica and Europe. Sales in established marketsin Be, Canada and the US are predicted to remainstrong, representing 61 . Only 4 of businessespredicted a growth in local sales over the next twoyears .Richmond companies expect to continue utilizingtheir advantageous position a long the Asia PacificGateway to sell their products and services tomarkets in Asia. Businesses reported that Asianmarkets (notably China and India) represent 16 oftheir sales now and expect they will represent 21of new export opportunities in the next two years .

Cur rent a kets

7

of usinesses

Growth y Market

8of Businesses

City of Richmond

Canada h ina

u rope India Latin America Local (within 800mile radius) Other United States

Canada China

Europe India Latin America Local (within 800mile radius) Other United States

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Richmond Business Development Report 2013

orporate Social ResponsibilityBusinesses' top plans for futuresustainability initiatives remain consistentwith current measures taken. Energyuse reduction, green sourcing andsupply chains, packaging reduction andwaste reduction are the top measurestaken by businesses to become moreenvironmentally sustainable. Alternativetransportation for employees and greenbuildings are areas attracting increasedattention and potential future investmentby Richmond companies.Charities, community volunteerism,competitive wages and sponsorship werethe top socially responsible measurestaken by businesses surveyed. In thenext two years, the same measures werelisted as priorities, with more businessesplanning to increase their corporate socialresponsibility reporting.In 2013 the City of Richmond partneredwith 26 companies to deliver communityevents and programs such as theChildren's Arts Festival, Earth Day YouthSummit, U-ROC Youth Awards, HockeyDay, Ships to Shore and the MaritimeFestival. The business ommunitycollectively contributed nearly 350,000towards these initiatives.

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Sustainability Plans - Next Two Yea rsAlternativetransportationfor employeesEnergy usereduction

Green buildingsreener sourcingand supply chainNot Applicable

OtherPackagingreduction

Waste reductionWater usereduction

10 15 20 25 30# of Businesses

Social Plans - Next Two YearsCharities

Communityvolunteers

Competitive'0 CorporatenO

Richmond Business Development Report 2013

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