MNP Business Leader Survey

Presented by:

• Introduction

• Research methodology

• Results

• Questions

Agenda

• Modelled after similar surveys conducted by MNP across Canada

• Short pulse survey was designed to provide an economic snapshot of thelocal business community and opinions on key local issues

• Developed in partnership with the Lethbridge Chamber of Commerce

• Goal is to generate baseline information so we can work together toimprove the local business climate and help local businesses succeed.

Introduction

Methodology

• The survey was conducted by a third party research firm, PRA Inc. underthe guidance of MNP and the Lethbridge Chamber of Commerce.

• The survey sample includes 200 business leaders based off a list ofover 700 Chamber Members.

• Telephone interviews were conducted between November 19th –December 2nd, 2015.

Methodology

• Respondents included: business owners, CEOs, presidents, executivedirectors and designated senior corporate officers from businessesacross all industry sectors in the Lethbridge Region.

• 39% of the businesses PRA spoke to participated in the survey, which isa high response rate.

• Results will be posted on the Lethbridge Chamber of Commerce andMNP Lethbridge websites as well as shared on LinkedIn.

Methodology

Profile of Survey Participants

Respondents by industry

6.5%

6.0%

6.5%

10.0%

5.5%

3.5%

9.5%

5.0%

9.0%

1.5%

4.0%

Agriculture, forestry, fishing and hunting

Construction

Manufacturing

Retail Trade

Finance and insurance

Real estate, rental and leasing

Health care and social assistance

Accommadation and food services

Non-profits / church / charities

Tourism

Atrs, entertainment and recreation

0% 2% 4% 6% 8% 10% 12%

Results

Business Challenges

Has the current global economic situation affected your business?

No48%

Unsure2.5% Yes

49.5%

Business Challenges

How has the global economic situation affected your business?(top responses)

6.1%

10.1%

12.1%

12.1%

12.1%

19.2%

21.2%

Fewer jobs

Beneficial effect

Fewer customers

Increased costs

Less money to spend

Lower sales / reduced revenues

Business slowed / declined

0% 5% 10% 15% 20% 25%

* Respondents could provide more than one answer; totals may sum to more than 100%

Business Performance - Employment

In the past 12 months, has the number of people you employ increased,decreased or remained the same?

Increased26%

Remained thesame56.5%

Decreased17%

Unsure0.5%

Business Performance - Capital

In the past 12 months, would you say capital investments into yourbusiness have increased, decreased or remained the same?

Stayed the Same50.5%

Increased27%

Decreased16%

Unsure6.5%

Business Challenges

Thinking about Lethbridge and the economy in general, what is yourgreatest concern in the coming year? (top answers)

9.0%

10.5% 11.0%12.0%

12.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

The Economy Decreasing employment No Concerns Uncertainty of oil/gasindustry

Concern about Provincialgovernment

Business Challenges

Which is the greatest challenge facing your company for the next 12months? (top answers)

5.0%

5.0%

5.5%

6.0%

9.5%

10.0%

10.0%

11.0%

Increase in minimum wage

Marketing / branding

Consumer spending

Growing the company

Maintaining client base, revenue and sales

Skills shortage

Uncertain economic climate

Hiring and retaining good staff

0% 2% 4% 6% 8% 10% 12%

** Respondents could provide more than one answer; totals may sum to more than 100%

Attitude on Government Performance

Would you say the (Government) has been doing an excellent job, a goodjob, only a fair job, or a poor job in terms of creating a good climate forbusiness?

7.0%

2.5%4.5%

40.0%

17.5%15.5%

33.0%

20.5% 20.0%

8.0%

43.0%

19.5%

35.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Municipal Government Provincial Government Federal Government

Excellent Good Fair Poor Too Early

Business Climate Competitiveness

How much do you agree that Alberta’s business climate is competitivewith other provinces?

2.5%

8.0%

26.0%

36.5%

22.0%

1 - StronglyDisagree

2 3 4 5 - StronglyAgree

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Local Government Feedback

How much do you agree that Lethbridge’s overall image is steadilyimproving?

0.5%

6.0%

27.0%

44.0%

18.5%

1 - StronglyDisagree

2 3 4 5 - StronglyAgree

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Local Government Feedback

In terms of marketing Lethbridge as a good place to do business, how isthe City of Lethbridge doing?

7.0%

27.5%

40.0%

6.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Poor Fair Good Excellent

*Respondents could provide more than one answer; totals may sum to more than 100%

Local Government FeedbackWhat is the one thing you would tell the City of Lethbridge they should doto improve the business climate here in Lethbridge? (top responses)

7.0%

9.5%

14.0%15.0%

22.5%

0%

5%

10%

15%

20%

25%

Improve city managementand policies

Support small, localbusinesses

Tax incentives andbusiness grants

Continue as they are Unsure

*Respondents could provide more than one answer; totals may sum to more than 100%

Economic Successes

What are three of the best economic successes or initiatives that haveoccurred in the Lethbridge area (top answers).

14.0%

16.0%

9.0% 9.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Supporting post-secondary Nothing New businesses Hi-tech initiatives

Business Outlook – Finance

Thinking about 12 months from now, financially do you expect yourcompany to be performing better, about the same, or worse?

Better46.0%

Same 42.0%

Worse9.5%

Unsure2.5%

Lethbridge Chamber of Commerce

Thinking about why you joined the Lethbridge Chamber of Commerce,how well has the Chamber met your expectations?

4.0% 4.5%

28.5%

42.5%

13.5%

1 - Did notmeet

expectations

2 3 - Metexpectations

4 5 - Exceededexpectations

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Lethbridge Chamber of CommerceThe Chamber is involved in a range of areas (e.g. government issues,workforce training, aboriginal opportunities, mentorship and economicdevelopment). How important is it that the Chamber is involved in theseareas?

1.0% 2.0%

12.5%

39.0%

43.5%

1 - Not at allimportant

2 3 4 5 - Veryimportant

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Summary

Business community is cautiously optimistic

• 46% optimistic of business growth in 2016

• Government at Municipal level is doing GOODvs. Provincial level doing POORLY

• Local business climate is competitive withother regions, but room to improve

• 40% of respondents say the image of thecommunity as a place to do business is GOOD

• Business challenges for 2016:

- Hiring and retaining good employees

- Uncertain economic climate

- Skills shortage

- Maintaining business growth and expansion