elliot lake retailer survey results - fall 2013

8/22/2019 Elliot Lake Retailer Survey Results - Fall 2013

1/12

ELLIOT LAKE RETAIL SURVEY

FALL 2013


2/12

ELLIOT LAKE RETAIL SURVEY

A thriving local retail sector not only provides economic benefit to a community, it also greatly

improves the quality of life for local residents. Retailers in Elliot Lake have faced a number of

challenges in recent years and the purpose of this report is to help identify and address some of

these challenges.

In order to produce this report a survey was created to gather information from local retailers

in Elliot Lake in order to identify general business and human resource issues such as the hiring

and training of employees and succession planning. Ultimately the data presented will allow for

the development of strategies and training programs that will benefit local employers.

This research project was sponsored by the Elliot Lake Centre for Development, ELNOS, the

Algoma Workforce Investment Committee (AWiC) and the Blind River Development

Corporation (a similar study was conducted with retailers in Blind River).


3/12

TOP EMPLOYERS IN ELLIOT LAKE BY INDUSTRY

Elliot Lake Employers can basically be divided into 2 categories:

1. Public Sector employerssuch as Health Care, Social Services and Schools

2.

Service Sector employerssuch as Retail Stores, Restaurants, Hotels and Repair Shops(employers such as garages fall under the Other Services sector).

The following table shows the top employers in Elliot Lake by Industry/Sector. The 10 sectors

listed represent 85% of jobs in the community, while the other 15% is made up of jobs in other

industries such as real estate, utilities, finance and insurance (none of these individual

industries represent more than 3% of the jobs in the community).

Clearly Retailers are an extremely important part of the economy in Elliot Lake as they are

second only to Health Care & Social Services as an employer. The retail sector accounts for 14%

of the jobs in the community. If you combine all of the service related sectors togetherstores,restaurants, hotels and other servicesthey provide a third of all the jobs in Elliot Lake.

Notably absent from the list of industries with any significant employment in Elliot Lake is

Manufacturing. Obviously Manufacturing is not a major employer in the city, but by

comparison, it is the 3rd

largest employer in the district of Algoma as a whole.

Source: 2011 National Household Survey


4/12

GROWTH/DECLINE BY INDUSTRY2006 TO 2011

Between the census years, Retailers had the most

significant drop in employment of any sector in

Elliot Lake. Employment was down 18% from 2006

to 2011. This could be the result of downsizing of

staff and closures of stores.

It should also be noted that this data is from 2011

and does not take into account the mall collapse in

2012. One would expect that the employment

numbers in the Retail sector would be even lower

taking into account the stores affected by the

collapse. (Conversely jobs in Construction grew

between census years and conceivably also grew

even more to date as a result of the activity

surround the collapse).

EMPLOYERS BY SIZE AND INDUSTRY IN ELLIOT LAKE

Small business plays a big role in terms of employment. As shown in the previous section, the

Retail Sector is the second largest employer as a whole in Elliot Lake and most of the employers

in the sector are small businesses with less than 10 employees. The following table shows the

Number of Employers by Size for all Sectors. Looking at Retailers, 80% have less than 10

employees and 63% have less than 4 employees. (Small businesses play a big role across all of

the sectors85% of all employers in Elliot Lake have less than 10 employees).

Industry Total 0 1 - 4 5 - 9 10 -1 9 20-49 50-99 100-199 200-499 500 +

Total 426 151 146 63 37 22 4 2 1 0

11 Agriculture 7 0 3 3 0 1 0 0 0 0

21 Mining 3 0 2 0 1 0 0 0 0 0

22 Utilities 1 0 0 0 1 0 0 0 0 0

23 Construction 46 18 18 7 3 0 0 0 0 0

31-33 Manufacturing 11 4 2 0 3 2 0 0 0 0

41 Wholesale Trade 13 5 3 4 1 0 0 0 0 0

44-45 Retail Trade 70 13 31 12 10 3 1 0 0 0

48-49 Transportation/Warehousing 18 14 2 0 1 0 0 1 0 0

51 Information and Culture 6 2 0 3 1 0 0 0 0 0

52 Finance and Insurance 17 7 1 2 1 6 0 0 0 0

53 Real Estate 50 32 11 4 1 1 1 0 0 0

54 Professional, scientific and technical services 29 15 9 5 0 0 0 0 0 055 Management of companies and enterprises 8 5 2 1 0 0 0 0 0 0

56 Administrative Support 16 5 7 2 2 0 0 0 0 0

61 Educational services 2 1 0 1 0 0 0 0 0 0

62 Health Care and Social Assistance 37 7 16 2 3 6 2 0 1 0

71 Arts, Entertainment and Recreation 11 4 2 3 2 0 0 0 0 0

72 Accommodations and Food 23 3 7 6 4 3 0 0 0 0

81 Other Services 56 15 30 8 3 0 0 0 0 0

91 Public Administration 1 0 0 0 0 0 0 1 0 0

Source: June 2013 Canadian Busines s Pattern Data


5/12

AGING POPULATION/AGING WORKFORCE

Elliot Lakes population decreased slightly between 2006 and 2011 by 1.7 percent, falling to

11,348 in 2011 from 11,549 in 2006.

Population Trends of Elliot Lake

2001 2006 2011

Elliot Lake 11,956 11,549 11,348Statistics Canada. Census Profile. 2006-2011 Census

Elliot Lakes median age is significantlyhigher than the districts and much higher than the

provinces.(Median age is the point where exactly half the population is older and the other

half is younger). As the population ages, so does the workforce. This is an issue as the more

people that move towards retirement; their skills will need to be replaced in the labour force. It

also means that business owners looking to retire will need to plan to either sell their business,

transition it to a family member or close their businesses.

Elliot LakeMedian Age of the population

Median Age

2006 2011

Canada 39.5 40.6

Ontario 39 40.4

Algoma 45 47.2

Elliot Lake 54.8 57.1

Source: Statistics Canada. 2006-2011 Census

When we look at the Population by Age, we can see that most of the loss in population can be

attributed to younger age ranges and those between 40 to 49 years old. Part of this trend is an

out migration of youth from the community.

Change in Total Population by Age - 2006-2011

Source: Statistic Canada, 2006-2011 Census Profiles.

0

200

400

600800

1000

1200

14002011 11,350

2006 11,550
http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/details/page_Flags.cfm?Lang=E&Geo1=CSD&Code1=3557038&Geo2=PR&Code2=35&Data=Count&SearchText=Blind%20River&SearchType=Begins&SearchPR=01&B1=All&Custom=&Flag=http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/details/page_Flags.cfm?Lang=E&Geo1=CSD&Code1=3557038&Geo2=PR&Code2=35&Data=Count&SearchText=Blind%20River&SearchType=Begins&SearchPR=01&B1=All&Custom=&Flag=


6/12

AGING POPULATION/AGING WORKFORCE CONT.

The impact of the aging population can also be seen in the Participation and Employment Rates

for the city. The Participation Rate is the number of people working or actively looking for work

divided by the population 15 years old and above. The Employment Rate is the number of

people employed divided by the population 15 years old and above.

If you compare the 2006 Census Data to the 2011 National Household Survey data, both the

Participation and Employment rates have droppedmeaning that less people in the population

are working. If you compare the Elliot Lake rates to the District of Algoma and the Province as a

whole, you can see that the citys rates are significantly lower by comparison.

To put these numbers into a real world perspective, the employment rate of 31.5% basically

means that only one out of every three people living Elliot Lake is working. This is mostly due to

the overall age of the population which means that there is a higher proportion of retirees in

the community who are not participating in the labour market (this should not be a surprise

since the city has done a good job of promoting itself as a retirement community).

However, the relatively high Unemployment rate also speaks to the challenges some face

finding employment in Elliot Lake, which also contributes to the low Employment rate.

2011 2006 Algoma 2011 Ontario 2011

Population 15 years old and above 9,990 10,200

Participation rate 37.8% 38.2% 56.8% 65.5%

Employment rate 31.5% 33.2% 50.6% 60.1%

Unemployment rate 16.6% 13.1% 11% 8.3


7/12

SUMMARY OF ELLIOT LAKE RETAIL SURVEY RESULTSFALL 2013

Business Profiles

32 Retailers in Elliot Lake completed the Survey Most (81%) have less than 10 employees 60% have less than 4 employees 45% of the businesses surveyed have been operating for over 20 years 32% less than 5 years 88% are locally owned 67% lease their space and 33% own their building

Retail Workforce

67% of the workforce is Female 63% of jobs are full-time, 37% of jobs are part-time

Age of employees

in the Retail Sector

is fairly evenly

distributed (see

chart) but 50% of

Business owners

are over the age of55

Business Outlook

Most businesses cited that their level of service and knowledge of the local market was

their main competitive advantage. Competitive pricing and providing unique products or

services locally were also commonly mentioned as advantages.

The biggest competitive disadvantage cited was the inability of smaller retailers carry as

much inventory and selection as larger stores. Store hours, location and out of town

shopping (either in other communities or online) were also commonly mentioned as

disadvantages.

15-24

15%

25-34

19%

35-44

21%

45-54

32%

55+

13%


8/12

Business Outlook cont.

Comparing 2012 to 2013 sales, 50% of retailers indicated a decrease in sales. 25% indicated

similar sales and 25% had a decrease in sales.

Most businesses (52%) are anticipating staying the same size, while 24% are expecting to grow.

15% are expecting to downsize.

50% of retailers cited having an unchanged outlook about doing business in Elliot Lake, while

31% had a more negative outlook and 19% had a more positive outlook.

Reasons for the negative outlook ranged from the declining population, down turn in the

local economy, less overall foot traffic and out of town shopping.

On the positive side, comments included the fact that some retailers were doing better

than they expect and that the new mall will hopefully attract new shoppers.

When asked about barriers to business expansion the most cited reasons were:

Distance to Markets Lack of proactive new business recruitment (Lack of industry needed to attract young

families to the city.)

Availability of space for rent or lease Cost of rent/lease Out of town shopping Aging population Availability and cost of labour

Hiring

23% of businesses are looking for new employees. Occupations in demand are cashiers and sales-associates. Most of these positions are entry level and part-time.

Finding Employees

43% of business expressed that their source of new employees comes from thesecondary school system followed industry training sources at 23%.

70% of business indicated fair to poor availability of workers in the area for theirbusiness needs.

The most cited method of finding new employees is Word of Mouth (35%) followed byService Canada (21%) and Employment Services (19%) Job Boards.


9/12

Top three challenges in recruiting new employees

1. Unable to recruit workers with necessary skills2. Expectation of higher wages3. Not interested in relocating to north

&

General Labour supply shortage

Important factors in developing the local workforce in general

1. Retaining/upgrading current workforce2. Attracting qualified workers*3. Preparing students at a younger age*Most businesses believe that qualified workers are not willing to relocate to Elliot Lake.

Skills required for new employees

The skills required by the retailers surveyed varied by the type of products or services a store

offers (eg. hair stylists, auto technicians etc.). However, one common theme that was

repeatedly mentioned was the need for employability skills such as communication skills,

customer service skills and strong essential skills - especially numeracy.

Training Needs of Elliot Lake Businesses

93% of businesses offer some form of basic training upon hiring. 79% offer continuous trainingmostly on an as needed basis. 74% are willing to pay for employees time during training.

General Business Skills Training Needs

1. Customer Service Skills2. Sales & Marketing3. Leadership Training

Succession Planning

Most retailers in Elliot Lake do not have a succession plan for either employees or employers.

86% of business did not have a plan for employees and 87% did not have a succession plan for

themselves as business owners. Those with a succession plan are either planning on selling the

business (to competitors or employees) or closing down.


10/12

CONCLUSIONS

Business Training Needs

Customer Service Training

Elliot Lake retailers identified an immediate need for customer service training. Recognizing the

limitations of employers to pay for time spent training would mean such training would have tobe limited to certain time periods or made flexible for employers. A task force approach with

business representation to select and guide the execution of identified training requirements

would be recommended.

Succession Planning

The aging population and workforce in Elliot Lake create a risk that some small businesses may

close once the owner is in a position to retire. Information and some basic training about

Succession Planning could help mitigate some of these risks by providing opportunities for

businesses to be passed on to family members or employees or sold to new owners.

Ensure Ongoing Local Training Opportunities

Regardless of topic, businesses and agencies in Elliot Lake should continue to advocate for and

develop business training and awareness activities on an ongoing basis. Topics could focus on

both business development (eg. financial planning, advertising, loyalty programs) and human

resource development (eg. skills development programs, succession planning).

Workforce Training Needs

Employability Skills Training

Employability Skills are the critical skills that an individual needs to be successful in any job.

They include communication (reading and writing), problem solving, positive attitudes and

behaviours, adaptability, working with others, and science, technology and mathematics skills.

Employers in this survey recognized that a general lack of these skills among applicants made it

difficult to find new employees in some cases. Offering some training or raising awareness of

this skills could help individuals find jobs with local businesses.

Continue to Develop Local Training ResourcesSimilar to the need for ongoing training opportunities for business, the community as a whole

needs to explore opportunities to promote and expand training and skills development

resources locally - including post-secondary, remote access and adult education facilities and

services.


11/12

Supporting Retailers in Elliot Lake

It goes without saying that the most important thing that the community can do for retailers in

Elliot Lake is to support them in any way possible. For the community at large, this means

buying the products and using the services of local businesses as much as possible.

Besides the training priorities discussed previously, government and agency offices in Elliot Lakeshould continue to support local business in the following ways:

Providing updated research materials and baseline data to identify trends, opportunitiesfor business expansion, new services, and quantify consumer demand.

Conducting regular business needs identification surveys through site visits to identifyand discuss solutions to business issues and concerns.

Assist businesses in the identification and quantification of consumer needs, andways/means of addressing or adapting to consumer needs.

Assist local businesses in developing or refresh business plans that identify directions forgrowth and sustainability.

The Elliot Lake Chamber of Commerce, Elliot Lake Centre for Development, ELNOs and AWiC

are committed to work together in order to provide continuing support to the retailers of Elliot

Lake.


12/12

elliot lake retailer survey results - fall 2013

Documents