Software Vault: The Gold Collection/Software Vault - The Gold Collection (American Databankers) (1993).ISO/cdr11/neiss.zip/R12

Text File | 1993-06-13 | 8KB | 185 lines

SECTION 5:  INDUSTRIAL & BUSINESS SURVEY

INTRODUCTION

The market survey was conducted as an independent and
objective means of information-gathering from the broadest
range of local business and industries.  The reponses were
compiled and the results compared with other input gained
through our direct interviews and investigation.

The following is a review of our findings through direct
interviews and mail survey.  Our findings through interviews
were supported consistently by the statistical evidence and
written submissions.  Statistical analysis presented on the
attached chart (following page 34) is categorized by:
1) size of employment (groups A, B, C & D)
2) geographic sub-areas (1, 2 & 3)


GENERAL FINDINGS

The information provided in the surveys in most instances
served to confirm the impressions and convictions we gathered
through direct interviews.  Through verbal and written
representations, the following are the strongest recurring
impressions:

1. There was a unanimous and positive response to the
   initiative of City Hall in undertaking this study and there
   was an expressed willingness to participate by virtually
   all businesses.  The business community is tuned into the
   reality of the marketplace and will respond to any
   reasonable opportunity to contribute to the process.

2. There is an overwhelming conviction that the Real Estate
   and Business Taxes in Metropolitan Toronto are out of touch
   with reality and the result will continue to be businesses
   'voting with their feet' whenever possible.  Migration to
   other market locations (whether local or international)
   that have more favourable conditions is a trend that will
   continue.  As general restructuring continues, many costs
   such as rents are being significantly reduced with the result
   that tax packages are consuming a bigger proportional bite of
   the operating budgets.

3. There is a strong sense that local government (City Hall)
   is out of touch with the needs of the marketplace.  This
   was confirmed, in part, by the current lack of direct
   contact with political representatives.  We found
   supporting evidence of this concern at the bureaucratic
   level, as well, through many specific instances of process
   or by-laws that are clearly out of synch with the needs of
   the sectors that are regulated.  Political contact with,
   and representation of, large business and industrial areas
   is clearly important and Council should consider shared
   responsibility for these areas regardless of ward
   boundaries.

A.  RESPONSE

The survey contacted 1,400 industries and businesses of all
sizes by return mail.  We received a 15% return (i.e. 210
submissions) which is considered to be a sound statistical
base.  The returns were spread evenly over the 3 sub-areas and
the representation of large, medium and small size companies
was evenly balanced.

B.  EMPLOYMENT

Employment distribution is skewed heavily to the larger
employers:  the largest employers (Group A) comprised 14% of
responses and represented 71% of jobs.  The two largest groups
(A & B) combined represented 24% of responses and 83% of jobs.
The total response of the survey represented an employment
base of 13,000 jobs or 41% of all employment estimated for the
area.

Aviation Electronics, historically the largest single
employer, has dropped employment by 40% or 1,500 jobs from the
peak in 1988/89.  The largest employment sector now appears to
be hotels, accounting for 4,500 jobs.  We note in Area 3 that
Humber College accounts for 1,200 jobs (36%) of the total.
Other major employers are:

               Automotive Parts
               Pharmaceuticals & Bio-medical
               Warehousing
               Food Products
               Institutions

C.  OWNERSHIP

The vested interest of land ownership is a powerful incentive
in combatting migration from the area and for redevelopment.
As determined by the survey, ownership is much more common in
the larger industries.  The Group A industries, representing
71% of employment also show the highest rate of ownership at
70%.  Conversely, the small businesses tend to lease their
buildings and, therefore, more likely to respond to market
pressures by moving when the opportunity arises.  This option
occurs each time the lease is up for renewal.  We have noted a
strong market trend by all businesses to negotiate shorter
lease terms (often under 3 years) which enhances their ability
to relocate.

New businesses are more likely to lease than to own in today's
markets.  They tend to be of smaller size, requiring buildings
of less than 50,000 s.f. and generally employ fewer than 50
people.  The long-range prognosis for North Etobicoke is to
anticipate a higher representation of smaller businesses,
occupying premises under leases of ever-decreasing duration.

Area 3, the most recently developed, has the lowest ownership
at 26% and is, therefore, more vulnerable to relocations.
Etobicoke will benefit from aggressive marketing programs in
this area which should focus on the fact that it carries such
a high percentage of leases.

D.  RELOCATIONS

A significant number of businesses (20%) stated a specific
intent to relocate outside of the Metropolitan Toronto area
within 1 - 3 years.  In virtually all cases, the motivating
factor is to benefit from lower taxes while serving the same
market.  This evidence underscores the impact of taxes, and
the instability of the marketplace.  General responses
indicated that approximately 60% of all employees live outside
Metropolitan Toronto, predominantly to the North and West.
This relocation scenario has low impact on workers, the vast
majority of whom travel to work by car.  Our conclusion is
that economic conditions override the demographic
considerations which once helped establish the area.

The City requires a political strategy to petition the
Provincial Government for a more balanced distribution of
taxes over the G.T.A. in order to counteract this migration
spiral.

E.  IMPROVEMENT AND EXPANSION

Notwithstanding Item D - Relocations, a significant and
encouraging element of 23% showed a commitment for capital
improvement or expansion in the near future.  The larger
companies showed a stronger inclination to do so than the
smaller ones.  By expansion of this fact, these are industries
which will require a responsive and effective approval route
at City Hall for these activities.  From our interviews, we
know that the approval process often does not respond to the
needs and most especially the time constrains that business
and institutions must work under.  There is a definite need to
patch up the generally held perception in the business
community that City Hall does not respond to their needs.
There is a distinctive ripple effect of the front line impact
of City Hall which is magnified within the business community.

Positive changes in the way that business is done at City Hall
will not only serve the specific users, but will also convert
readily into improved perceptions in the larger community.

F.  OCCUPANCY

Almost half of respondents have been in business in Etobicoke
for more than 10 years, with numerous cases of 20 to 30 year
duration.  Not surprisingly, the larger companies dominate
this group.  We also know from review of recent relocations
and losses that little comfort can be derived from this fact.
Many large operations are moving to the end of 20 to 30 year
life cycles and the attendant losses are inevitable.  The
issue here is to effectively monitor trends, especially with
respect to large tracts of land.  The City must ensure that
planning is anticipating the inevitable re-use of lands with
the appropriate strategic action.

G.  GROWTH & EMPLOYMENT

A significant 32% of businesses showed an expectation of
increased productivity while employing fewer people or while
maintaining current levels of employment.  This statistic
underscores the current pressures on business to be more
effective and competitive.  This issue was a dominant theme in
our direct interviews and one which we expect will continue to
grow.  By most accounts, as recently as 5 years ago, this
notion was neither understood nor practiced.