2014 Business Outlook Survey Results
Business Changes from 2012 to 2013 Increase
No Change
Decrease
Sales Revenue
69.7%
11.6%
18.7%
Prices Received for Products/Services
60.9%
31.4%
7.7%
Prices Paid for Raw Materials
61.9%
35.5%
2.6%
Operating Costs as a % of Revenue
68.2%
16.9%
14.9%
Employee Compensation
76.6%
20.9%
2.5%
Capital Expenditures
51.3%
40.4%
8.3%
Profitability
65.0%
17.5%
17.5%
Number of Employees
44.3%
48.1%
7.6%
Factors Positively Affecting 2013 Performance 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Domestic Sales Increase
A Strong State Economy
Lower Operating Costs
Technology Changes
Percent Ranking in Top 5
Political Stability
Less Federal International Less Domestic Government Sales International Competition Regulations Increase Competition
Percent Ranking in Top 3
Percent Ranking #1
Top 5 Factors Negatively Affecting Performance Rank
2012
2013
1
Higher Operating Costs
Staffing Issues
2
Domestic Sales Shortfall
Domestic Competition
3
Domestic Competition
Higher Operating Costs
4
Other
Domestic Sales Shortfall
5
Staffing Issues
Other
Expectations of 2014 Performance National Economy
Regional Economy No Change 23%
No Change 33% Better 44%
Worse 3% Better 74%
Worse 23%
Expectations of 2014 Performance Your Business No Change 24%
Worse 7%
Better 69%
Factors Expected to Adversely Impact Business in Next 12 Months (average rank in parentheses) 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Difficulty in Increasing Attracting and Competition Retaining (3.61) Qualified Employees (2.78)
Difficuty Providing Health Insurance for Employees (4.09)
Percent Ranking in Top 5
Challenges in Increasing Increasing Raw Increasing Government Material and Transportation Acquiring Regulation Input Costs and Fuel Costs Financing (4.23) (4.46) (4.56) (5.68)
Percent Ranking in Top 3
Percent Ranking #1
Other (5.27)
Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13
Percent
Historical Unemployment Rate (source: ND Job Service)
12
10
8
6 Fargo ND-MN MSA
4 North Dakota
U.S.
2
0
Difficulty in Hiring Qualified Workers (average rank in parentheses) 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Experienced Experienced Experienced Workers with Workers with Workers with Tech School College High School Degree (2.34) Degree (2.51) Degree (3.68) Percent Ranking in Top 5
Recent College Experienced Recent High Recent Graduates Workers with School Technical Graduates School (3.53) Graduate Graduates Degree (3.72) (5.60) (3.71) Percent Ranking in Top 3
Percent Ranking #1
Recent Graduate School Graduates (4.43)
Presentation slides available at: FMWFChamber.com starionfinancial.com ndsu.edu/mgmt_mrkt Special thanks to NDSU Department of Management and Marketing for assistance with survey collection and analysis
Appendix Breakdown of Respondents
Appendix
Type of Business Health Care
7%
Technology
6%
13%
Manufacturing
5%
Finance, Insurance, Real Estate
13%
Wholesale Trade
4%
Other
9%
Agriculture
2%
Nonprofit
9%
Transportation/ Warehousing
1%
Leisure/Hospitality
8%
Construction
8%
Business/Professional Services
15%
Retail Trade
Appendix
Business Segments Number of Employees 100-499 12%
500+ 2%
1-4 20%
20-99 30%
5-19 36%
Appendix
Business Segments Target Market Nationwide 10%
International 2%
Midwest 6%
Fargo-MoorheadWest Fargo 43%
Minnesota/ North Dakota 39%