hampshire first bank business first survey
DESCRIPTION
Join Fred Kocher, the host of WMUR's "New Hampshire's Business" and President of the New Hampshire High Tech Council as he discusses the outlook for businesses in 2011 with Hampshire First Bank (hampshirefirst.com) executive Jay Dinkel. 111 businesses from 27 classifications answered questions about the state of the local and national economy and other issues impacting business. Learn more! (Webinar originally recorded April 14, 2011).TRANSCRIPT
“Business First” WebinarApril 14, 2011
Fred Kocher, Host “New Hampshire’s Business”President, New Hampshire High Technology Council
Business Profiles
In which industry does your business specialize?
Businesses were as diverse as professional sports, funeral homes, real estate and consulting. Businesses which responded at the highest rate included:
• Real Estate• Contractors/Construction• Law Firms/Legal Practitioners• Property Managers• Advertising/Marketing/PR• Consultants
In all, businesses from 27 broad classifications participated in the survey.
How is your business incorporated?
The top two classifications of business were:
• Limited Liability Corporation – 31%
• “C”Corporation – 24%• “S”Corporation – 21%
How many employees do you currently employ?
The SBA defines businesses in wholesale trade as “small businesses” if they have 100 or fewer employees. Based on this, 89% of the respondents were small businesses, compared to 85% in 2010. Breakdown of businesses is as follows:
• 1-10 employees – 52%• 11-25 – 23%• 26-50 – 11%• 51-100 – 3%• 101-250 – 6%• 250+ – 5%
What was your 2010 revenue?
Nearly 50% of respondents (47%) were from businesses with 2010 revenues less than $1M, similar to 2009.
After businesses with less than $1M, next most widely reported 2010 revenue was $1M-$2M (16%). Last year, the next most widely reported classification was > $10M (19%).
What is your ZIP Code?
Businesses completing the survey were clustered around the five banking centers. Respondents most often came from:
• Manchester – 31% (18% 2010)• Keene – 15% (14% 2010)• Concord – 5% (8% 2010)• Nashua – 8% (6% 2010)• Bedford – 13% (6% 2010)• Portsmouth – 9% (4% 2010)
Business Expansion
Business Expansion in 2011
• 50% “somewhat” or “very” likely to increase their capital expenditures in remainder of 2011
• 24% “very” likely to increase their capital expenditures in the remainder of 2011
Business Expansion in 2012
• 54% “somewhat” or “very” likely to increase their capital expenditures in 2012
• 20% “very” likely to increase their capital expenditures in 2012
• Only 10% of businesses are “very” or “somewhat” likely to decrease capital expenditures in 2012.32% will finance their increased capital
expenditures with loans from community banks (consistent
with 2010)
How hard is it to secure financing?
57% are finding securing financing to be a more involved process
Are you finding your bank is enforcing stricter requirements in the
qualification process? – 56% said “Yes” (63% in 2010)
In spite of this, businesses are not having problems meeting lending
covenants – 59% haven’t struggled with it (64% last year)
Have you been denied access to business credit in the last two years?
73% - No (81% in 2010)
Employee Benefits
Employee Benefits
There have been many legislative changes which may have an impact on businesses’ ability to grow. How do businesses feel about these changes?
Over half (51%) report that changes to the health care coverage requirements will NOT negatively impact their ability to grow their business
Employee Benefits
What are businesses doing to provide benefits for their employees?
68% of businesses responding provide employee health insurance coverage (79% 2010)
42% of businesses responding provide dental, vision or both (49% 2010)
Employee Benefits
What are businesses doing to provide benefits for their employees?
90% of respondents are covered through a group health plan themselves
38% of businesses responding cover over half of their employees
23% of businesses have decreased health insurance coverage benefits in the last two years (declined from 2010 – 28%)
34% of businesses have increased the portion of the health care premium paid by employees in the last two years (declined from 2010 – 38%)
Employee Benefits
What are businesses doing to provide retirement benefits for their employees?
83% of businesses match up to 25% of retirement contributions
(up from 74% - 2010)
9% match retirement contributions 76-100% (down from 16% - 2010)
Economy
Economy
In the last 12 months, I feel the national economy has:
Improved – 40% (38% 2010)Stayed the same – 44% (24%
2010)Worsened – 16% (38% 2010)
Overall – 84% feel it improved/stayed the same compared to 62% in 2010
Economy
In the last 12 months, I feel the regional economy has:
Improved – 50% (36% 2010)Stayed the same – 33% (36%
2010)Worsened – 27% (38% 2010)
Overall – 83% feel it improved/stayed the same compared to 72% in 2010
Economy
In 2011, I expect my business to have:
Reduced sales – 9% (16% in 2010)Sales that remain steady – 39% (42%)Increased sales – 51% (42%)
Nearly 91% expect same or increased sales in 2011.
Economy
In 2011 I feel that the national economy will:
Improve Slightly – 53% (51% in 2010)
79% of respondents feel that the economy will remain steady or improve (75% in 2010)
Business Management
Business Management
In 2010, I found negotiating with my suppliers to be:
- 16% - More Difficult (30% in 2010)
- 69% - The same or easier than in the past (63% in 2010)
As such, 61% of respondents have not been forced to increase their costs to customers in 2011 (64% in 2010).
Business Management
44% have hired a new employee in the last three
months.
Business Management
53% of respondents have reduced overhead in 2011.
64% report labor cost as the largest expense item.Respondents were fairly evenly split on which line item they would reduce, if possible:
The New Hampshire Advantage
78% of respondents “Agree” or “Strongly Agree” New Hampshire is a great place to do business.
Of respondents:52% are not natives of New Hampshire (54% from
New England; 46% from outside of NE)
The New Hampshire Advantage
25% of respondents do business in NH because of the tax structure
What are the top reasons to do business in NH?
Respondents feel that:• Current residency is the #1 reason• The cost of doing business is the #2 reason• Tax structure ranks #3
Environmental and Social Concerns
Environmental Concerns
62% of businesses “agree” or “somewhat agree” it is important for their businesses to be green (68% in 2010)
64% of businesses “agree” or “somewhat agree” it is important for their businesses to use recycled materials (69% in 2010)
79% of businesses make a concerted effort to conserve
Environmental Concerns
Businesses reported a wide range of ways they’ve gone green. Some are simple, some are complex:
•Recycling•Going paperless•Using water coolers instead of bottles•Using renewable resources such as wood•Carpooling•Reusing waste products in other ways
•LEED Certifications•Changing lighting solutions and using CFLs, timers•Encouraging telecommuting•Investing in energy efficiency programs
Social Concerns
75% of businesses participate in philanthropic activities and partnerships
Marketing
Marketing
58% of businesses currently practice “traditional marketing” (81% in 2010)
Where is the decline in “traditional marketing”?• Increased tradeshow expenses• Increased B2B outreach• Increased web presence, including online advertising• Other electronic media• Third party partnerships, including sales reps and channel
partners
As such, 46% increased their overall marketing in 2011 from 2010.
Marketing
60% plan on focusing more time and money on marketing their business in 2011
70% personally belong to a social media site (61% in 2010)
54% of businesses were represented on a social media site in 2010...
and 62% of these same businesses are represented in 2011.
88% have websites for their businesses.
Future Outlook
Overall Takeaways
• The majority of businesses are increasing their capital expenditures in the remainder of 2011, and in 2012.
• 84% of respondents feel the national economy has improved in the last 12 months.
• 83% of respondents feel the regional economy has improved in the last 12 months.
• 91% of businesses expect steady or increased sales in 2011.
• 78% of respondents agree or strongly agree: New Hampshire is a great place to do business.
Thank you for your time!