Cautious optimism sums up the mood of Brainerd Lakes Chamber members as the new year unfolds.
The 2010 Brainerd Lakes Chamber Fall Policy Survey revealed that 70 percent of respondents enjoyed business performance in 2010 that equaled or surpassed their performance in 2009. Less than a quarter of respondents, or 24 percent, said business was worse in 2010 when compared to 2009.
Four out of every five respondents – or 81 percent – said they expected net revenue in 2010 to be at least the same, or even improved, over 2009.
The significant changes businesses have made to reduce their operating expenses contributed to these more positive projections. Business owners and managers are carrying this optimistic outlook forward. About three-fifths of respondents – or 59 percent – said they are more optimistic, while 31 percent are unsure and 10 percent are less optimistic, about the 2011 Brainerd Lakes Area economy.
“When asked about their outlook on the future, many respondents indicated a concern for how government policy decisions will impact their businesses,” said Lisa Paxton, Brainerd Lakes Chamber CEO. “They also said the need to focus on these challenges presented by government involvement has taken away from their ability to focus on operating and rebuilding their businesses.”
Respondents, as part of the survey, expressed a clear message to state legislators – cut government spending and redesign services, which are measures business owners and managers have implemented in recent years. In response to the question what does Minnesota need to do to balance the state budget, 78 percent of respondents said cut government spending, 76 percent said redesign government services and 26 percent said raise taxes. Respondents were allowed to select all that apply. As a result, respondents were allowed to select raising taxes in cooperation with cutting government spending and/or redesigning services.
The cost of employee health insurance continues to be a concern. The majority of respondents, 65 percent, said it is a problem, of which nearly 40 percent said it is a severe problem. Only 50 percent of respondents said they offer employer subsidized health insurance for employees.
Even with the high unemployment in the Brainerd Lakes Area, 69 percent of respondents said finding/hiring qualified, trained workers is a problem while 65 percent said finding/hiring reliable workers is a problem. Respondents, who could rate the problem from slight to severe, said these are mostly slight problems.
Nearly all respondents find value in the advocacy work of the Brainerd Lakes Chamber, on behalf of their business interests, at the local and state government levels. For instance, 77 percent of respondents said it is very valuable and 19 percent said it is somewhat valuable when Chamber representatives are at the table representing business interests when local government is making decisions that affect area businesses
The survey was e-mailed to 890 of the primary representatives – owners and managers --- of Brainerd Lakes Chamber members. Completed surveys were received, in November and December, from 162 people – a response rate of about 18 percent – representing a wide cross-section of Chamber business members. The response rate represents a 95 percent confidence level, plus or minus 4.2 percent.
Brainerd needs to complete the 2.5 year process to finalize the preferred design for College Drive by next Monday in order to access federal funding. The Brainerd City Council will host a public hearing about the expansion on Monday, December 6 from 5-6:30 p.m. at Brainerd City Hall. The Chamber is considering a position about the expansion and is seeking member comments. Click here for background information and the Chamber’s proposed position. Chamber members are invited to forward comments to Lisa Paxton, Chamber CEO, at lpaxton@explorebrainerdlakes.com by 5 p.m. Friday, December 3.
Brainerd Lakes Chamber Gathers Business Feedback on Economic Outlook - Summary of Member Survey from Area Businesses -- April 2010
Full Report: Executive Summary, Survey Results, All Responses
Increased optimism, expectations of maximized resources, and high Chamber rating were key findings of the 2010 annual member survey of the Brainerd Lakes Chamber. As a non-profit organization that is governed by a volunteer Board of Directors, and managed by professional staff, the Chamber values the results of this annual survey as direction for programs, services, and goals.
“Especially in these challenging times, businesses want to ensure they are receiving value for their investments, and the Chamber focuses on delivering a high return and communicating that return to its members,” said Lisa Paxton, Brainerd Lakes Chamber CEO.
The Economic Outlook Improving – Or We’re Getting Used To The New Normal
The member responses about the outlook for their businesses and the local economy is more positive than 2009 with only 14.5% projecting 2010 to be worse than 2009, compared to 45.8% of the responses comparing 2009 to 2008.
Responses about the outlook for their business in 2010 found that 27.8% thought 2010 would be more challenging than 2009 compared to 45.2% reporting it would be more challenging in 2009 compared to 2008.
Of the respondents, 41.4% thought 2010 will be better than 2009.
Hiring Outpacing Layoffs
Respondents will hire over 700 full-time employees in 2010 and anticipate reducing employees by 75. (Two respondents in the hospitality industry represented 400 of those full-time employees.)
Concerned About New Regulations
Businesses are uncertain about how recent state and federal legislation will affect their business operations. A wide range of responses were listed from increasing OSHA inspections to MPCA requirements, taxes, outdoor events, new lead based paint legislation, banking industry rules, and more. It appears that every industry has been – or will be – affected in some way.
Operational Costs Affecting Businesses
The increased cost of doing business was on the minds of respondents. Their responses ranged from the highest weighted scores of employee health insurance, to fuel or energy costs, increased labor costs, and to a lesser extent the cost of general liability insurance as the greatest concerns. Other items were clearly not of concern to the respondents at this time.
Members Expect The Chamber To Be At The Table And To Encourage Efficiencies
The phrase, “if you’re not at the table, you could be eaten”, comes to mind, and members want the chamber to be at the table representing business interests when local and state government are making decisions that affect them. They also want the chamber to encourage government cooperation to improve efficiencies and reduce costs, as well as keep them informed of local and state issues that could affect their business.
Recent issues the Chamber took positions on include the Highway 371 through-town option in Pequot Lakes and post Labor-Day school start. Each month staff attend local city council meetings and many other local, regional, and state meetings to be the voice of business.
Marketing The Area Of Greatest Value
The members want the Chamber to promote the area in a variety of ways. They want the chamber to promote tourism business – with support of events and a broader tourism marketing campaign. Residential relocation was ranked high, as was promoting the area as a great place to do business. As budgets are limited, the Chamber is challenged to create and sustain marketing initiatives and looks to our partners in the community to work together to continue to achieve success.
Social Media Use Limited
Members aren’t widely using social media to promote their business, but there was interest in learning more about how to use the tools to promote their business, network with other businesses, make sales using social media, and use the tools effectively.
The Chamber has been offering a monthly class/webinar on different social media topics including Facebook, Twitter, LinkedIn etc..
The Chamber is able to fill the marketing void and knowledge for most small businesses by daily using Facebook, Twitter, YouTube, LinkedIn, GPS navigation, iPhone application, and other tools to promote our members and to empower them with knowledge to do it themselves if they choose.
Chamber Rating
The members were asked to use a different rating tool to measure how readily they would recommend the Chamber to a friend or colleague. In the past, chamber surveys asked for a performance rating of excellent to poor. The purpose of the new rating was to quantify the value of the chamber and learn what needed to improve in order to receive the highest rating of 10.
The rating average, on a scale from 1 to 10 (with 10 being highest) was 8.42, with 50.6% of the respondents rating a 10, that they would be extremely likely to recommend the Chamber to a friend or colleague.
The annual Member Survey was emailed to 1,056 of the primary representatives - owners and/or managers – and active volunteers of Brainerd Lakes Chamber business members in March, of those 40% responded (442). This survey represents the greatest percentage of response to any Chamber survey to-date, and a 99% confidence level, +/- 5%. These results will be shared with state and federal legislators, cities, counties, school districts, Central Lakes College, other chambers in the area, MN Chamber, chamber members – and the community over the next month.
MN Legislature Small Business Survey - Nov 2009
A recent member survey, prompted by a request from Representative Ward to distribute a survey from the small business caucus, prompted the most vehement and interesting responses in 15 years at the chamber. The business community is willing to share their experience with operational improvements to help government change how they operate in these challenging times.
You’ll see by the results of question 3, that decreasing revenue has prompted business to make significant changes in how they operate and they are expecting government to do the same. This challenging economic time is an opportunity for government to learn from businesses and identify opportunities that focus on needs vs. wants and promote a “lean” operating system that focuses on efficiency and avoids unnecessary, burdensome regulation and associated fees.
These results are being shared with state and federal legislators, cities, counties, school districts, Central Lakes College, other chambers in the area, MN Chamber, chamber members – and the community over the next month.
Post Labor Day School Start
For years the tourism industry has successfully opposed starting K-12 school before Labor Day because of the affect on summer vacations and workforce – and the resulting economic impact. Labor Day falls later in September the next two years and there is an effort in the MN House to repeal the Labor Day school start provision (HF194) or modify it for the next two years (HF195). The Chambers Board of Directors opposes an earlier starting date and passed a resolution voicing continued support for a post-Labor Day school starting date. Contact State Representatives John Ward, Larry Howes, or Al Doty to voice your support for maintaining the post-Labor Day starting date.
Brainerd Lakes Chamber, Resolution of Support School Year Calendar
Itroduction: A change in current law regarding the start date or length of the school year is not necessary to make progressive change in Minnesota's educational outcomes.
Increased learning outcomesn are compatible with Minnesota's tradition of summer. There are many reforms proposed for K-12 education; all day-every day kindergarten, longer school days, increasing the number of education days per year, and many more. Reforms that compliment students, families and the many businesses that depend on the school calendar can be accomplished.
Whereas, Minnesota claims one of the highest levels of K-12 learning in the country;
Whereas, increasing classroom time does not have to compete with Minnesota's tourism industry;
Whereas, learning benefits and outcomes are important to the tourism industry;
Whereas, school calendars can have an impact on both family vacation options and seasonal employment;
Therefore, the Brainerd Lakes Chamber supports:
Quality education as a high priority for the state;
A school calendar that addresses the best learning outcomes available while preserving Minnesota's heritage of summer, including preserving a post Labor Day School start; and
Investigating other tools to increase learning outcomes before changing the start date or increasing the number of educational days in the school year.
Approved on February 19, 2009
By unanimous vote of the Brainerd Lakes Chamber Board of Directors
Chambers Statewide Collaborate on Legislative Issues
Balancing the state budget by restructuring the delivery of government services and cutting spending
leads the Chamber’s agenda. The Chamber’s recent member survey reinforced support for this policy
position. The Brainerd Lakes Chamber will work to advance the statewide business community’s priorities
as part of the Minnesota Chamber Federation, 24 Chambers across Minnesota that have agreed
to focus on five shared legislative priorities.
Rounding out the 2009 business top priorities are:
State Budget Priority: Balance the state budget without a general fund tax increase.
Workforce Priority: Ensure that businesses have an adequate supply of skilled workers to compete
in today's global economy by advancing reforms in the K-12 public education system.
Transportation Efficiency Priority: Ensure that taxpayers receive the greatest value for every dollar
spent on the state's infrastructure system.
Climate Change Priority: Climate change legislation should be addressed on the national – and
international – levels. State lawmakers should not pass any state or regional cap-and-trade policy
due to the negative economic impact on businesses and families, and the extremely high probability
that a state-specific program will not solve or even reduce the problem.
Nuclear Power Priority: Change the existing state law so nuclear power is an option for generation
of additional and necessary base-load power.
Federal legislation that impacts business, provided by the US Chamber:
EFCA/Card Check – The bill remains in limbo as proponents wait for votes to materialize. Several supporters who voted in favor in 2007 have expressed reservations putting 60 votes in the Senate out of their reach - for now. A compromise continues to be rumored but no bill or amendment has been offered and certainly no proposal to revise a fatally flawed bill is acceptable to the Chamber.
Health Care Overhaul – The business community shares the goals of Congress and the Administration to reduce costs, improve quality, expand access and is committed to finding solutions. However, the devil is in the details and some of the proposals being circulated could threaten struggling businesses with increased costs, taxes, fees, mandates, regulatory burdens, and cost-shifts from government programs. The Senate is hoping for a vote later this year but Committee consideration has been slowed because of lack of consensus on several issues...>learn more
Energy/Climate Change Legislation – Congress is poised to address climate change through a major piece of legislation called the American Clean Energy and Security Act (ACES) with a Cap-and-Trade plan as its centerpiece to cut emissions of carbon dioxide (CO2). The U.S. Chamber hopes to strike a balance of workable environmental solutions that preserve jobs and economic growth. States in the Midwest have much at stake – agricultural interests are hoping for relief and states that rely on coal for electricity could see increased costs as emission targets are imposed.
Highway Bill/Transportation Investments - On September 30, 2009 the nation’s core surface transportation programs (SAFETEA-LU) will expire. Congress must reform the federal programs to ensure dollars are maximized in the nation’s best interest while emphasizing performance management and accountability. Unfortunately, much like many of our state and local communities around the country, we find the federal surface transportation programs in a dire budgetary situation. In June 2009 the Obama Administration forecast that that the Highway Trust Fund (HTF) will become insolvent before the end of fiscal year 2009, necessitating either a general fund transfer or program cuts. The U.S. Chamber is hosting a Transportation Fly-in, July 14/15 to Washington, DC for chambers of commerce and the business community to learn and share their interests on this important issue.
