HomeMy WebLinkAbout2013-04-16; City Council; 21187; 2013 Carlsbad Business Survey ReportCITY OF CARLSBAD - AGENDA BILL
AB# 21.187 2013 CARLSBAD BUSINESS SURVEY
REPORT MTG. 4/16/13
2013 CARLSBAD BUSINESS SURVEY
REPORT
DEPT. CED
DEPT.DIRECTOR
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
Receive and file a report on the 2013 Carlsbad Business Survey report.
ITEM EXPLANATION: ^ ' ^.
The city's Economic Development division, in collaboration with BW Research Partnership,
conducted the first business survey of Carlsbad businesses in December 2012 and January
2013 The survey sought to measure Carlsbad's business climate, determine bamers to growth
and provide baseline information for future business climate surveys. The report also profiles
Carlsbad's wealth creating industry clusters.
Over 200 respondents answered the survey, either online or by telephone. BW Research
Partnership supplemented the survey instrument with outside research on industry clusters and
business profiles as well as leadership interviews with executives in the life sciences industry.
The results ofthe survey show an improving economy, a need for strong communication with
the business community, areas for potential improvement, and demonstrate community support
for an institute of higher education in Carlsbad.
FISCAL IMPACT:
Receiving and filing the report does not have a fiscal impact.
ENVIRONMENTAL IMPACT: . „
Pursuant to Public Resources Code section 21065, this action does not constitute a project
within the meaning of CEQA in that it has no potential to cause either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment, and therefore does not require environmental review.
EXHIBITS:
1. 2013 Carlsbad Business Survey
DEPARTMENT CONTACT: Kathy Dodson, 760-602-2744, kathv.dodson@carlsbadca.qov
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City 0 Carlsbad Business
Survey Report
February 2013
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Business Survey Report
City of Carlsbad
TABLE OF CONTENTS
Table of Contents
List of Figures
List of Tables
Executive Summary 1
Overall Indicators for the Business Community 5
Carlsbad as a Place to Do Business 5
Perception ofthe Business Climate 7
Confidence in City Government to Impact the Business Climate 9
Hiring Expectations over the Next Year 12
Economic Development Information from the City and Satisfaction 14
Importance of Industry Clusters 16
Action Sports Manufacturing 19
Life Sciences 20
Cleantech 21
Entertainment and Hospitality 22
Information and Communications Technologies (ICT) 23
Opportunity and Assessment in Carlsbad's Business Community 24
Appendix A: Secondary Data on Universe of Carlsbad Businesses and
Sun/ey Data Not Previously Presented A-1
Universe of Carlsbad Businesses A-1
Additional Survey Data A-3
Appendix B: Survey Methodology B-1
Secondary Research ^ B-1
Primary Research B-5
Appendix C: Survey Toplines (n=223) C-1
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LIST OF FIGURES
Figure 1: Rating for the City of Carlsbad as a Place to Do Business 5
Figure 2: Perception of Business Climate in Carlsbad 7
Figure 3: Confidence in City Government to Impact Business Climate 10
Figure 4: Hiring Expectations for the Next 12 Months 12
Figure 5: Hiring Expectations forthe Next 12 Months by Business Size 12
Figure 6: Received Economic Development Information or Updates
from Carlsbad and Satisfaction with Information Received 14
Figure 7: City of Carlsbad Industry Clusters by Employment,
Location Quotient (LQ) and Growth 19
Figure 8: Main Reasons Company Located in Carlsbad 24
Figure 9: Value of a University or Institution of Higher Education
Located in the City of Carlsbad 25
Figure 10: Satisfaction with Attributes of Carlsbad's Business Climate 27
Figure 11: Location of Customers and Suppliers & Vendors 28
Figure 12: Secondary Data - City of Carlsbad Size of Businesses A-1
Figure 13: Secondary Data - California Size of Businesses A-1
Figure 14: Secondary Data - Industry Breakdown by Number of Businesses A-2
Figure 15: Number of Carlsbad Locations A-3
Figure 16: Number One Thing City of Carlsbad Could Do to Improve
Business Climate A-4
Figure 17: Number of Years Located in Carlsbad A-5
Figure 18: Number of Employees at Carlsbad Location(s) A-6
Figure 19: Primary Focus of Business A-7
Figure 20: Change in Employment over the Past Three Years A-8
Figure 21: Expectations for Physical Space in Carlsbad over the
Next 12 to 24 Months A-9
LIST OF TABLES
Table 1: Overview of Project Methodology B-1
Table 2: NAICS Codes Used to Define Industry Clusters B-2
[bw^ RESEARCH
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EXECUTIVE SUMMARY
The City of Carlsbad's Economic Development Department commissioned BW
Research Partnership, Inc. (BW Research) to develop a profile of local businesses and
assess the business climate within the city. As part of the research over two hundred
businesses with at least one location in Carlsbad completed a survey.
BW Research offers the following key findings from the 2013 research of Carlsbad
Businesses:
IVIost businesses indicated Carlsbad was an excellent or good place to do
business.
• Just under nine out of ten (87%) Carlsbad businesses surveyed indicated the city
was an excellent (39%) or good (48%) place to do business. At the other end of
the spectrum, only three percent of responding businesses indicated that
Carlsbad was either a poor (2%) or very poor (1%) place to do business.
Businesses were more likely to be optimistic about the future
• Just over one third (35%) of responding businesses indicated the business
climate in Carlsbad was getting better and only six percent indicated it was
getting worse.
Three out of four Carlsbad businesses were confident city government's
decisions to improve the business climate.
• Seventy-five percent of Carlsbad business respondents indicated they were
either very (25%) or somewhat (50%) confident in city government to make
decisions to positively affect the local business climate.
Quality of life and proximity to vendors are the greatest areas of satisfaction;
regulatory climate and transportation systems are areas of greatest
dissatisfaction.
• The three issues tested with the highest levels of satisfaction included; quality of
life (96% satisfaction), access to relevant vendors and suppliers (82%
satisfaction), and access to clients and customers (81% satisfaction).
• The three issues tested with the highest levels of dissatisfaction included;
regulatory climate (19% dissatisfaction), local roads and transportation systems
(11% dissatisfaction), and ability to find qualified entry to mid-level employees
(10% dissatisfaction).
Condusions and Recommendations
Importance of Communication
• Overall just under forty percent (37%) of respondents indicated they had received
economic development information from Carlsbad. The businesses that received
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economic development information from the City of Carlsbad were almost twice
as likely to indicate the business climate was getting better (48% vs. 27%)
compared to those businesses that did not receive economic development
information from the City or were not sure if they had received it.
• Businesses that received economic development information from the City of
Carlsbad, were also more likely to indicate confidence in City government to
make decisions that positively impact the business climate (81% vs. 71%)
compared to those businesses that did not receive economic development
information from the City or were not sure if they had received it.
These results indicate that the economic development information coming for the City is
having a positive impact upon businesses' economic outlook. The City should consider
strategies to increase its communication efforts to local businesses and continue to
differentiate itself from those Carlsbad business organizations that are focused on
providing information for their members or for specific industries.
Educational Opportunities
Results of the survey show that approximately two-thirds of businesses in the City would
value a university or institution of higher education within the City boundaries. Overall,
businesses saw this new university offering business, marketing and/or entrepreneurship
courses or relatively technical courses that would support industry research and high-
skilled vocational training in renewable energy, ICT (Information and Communications
Technologies) and other applied sciences including engineering and health sciences.
Respondents from the executive interviews also discussed the importance of local
middle and high school science and mathematics programs. Given the support of the
business community for the university or institution of higher education, the City should
continue to move forward with these plans while also recognizing the importance of
connectivity with the science and mathematics curricula at the local high schools.
Regulatory Climate
Of the business climate issues we typically include in employer surveys, regulatory
climate is most often the item that respondents are dissatisfied with. The 19 percent of
respondents that indicated dissatisfaction with the regulatory climate were asked as a
follow up, if there was a specific issue of concern and how they suggested responding to
it. These are some of the paraphrased responses;
• Allow more business signage in and around business locations
• Make it easier and more streamlined to get permits
• Advocate on behalf state and national legislators that represent Carlsbad
business interests
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Transportation
The 11 percent of respondents that indicated dissatisfaction with the local roads were
asked as a follow up, if there was a specific issue of concern and how they suggested
responding to it. These are some of the paraphrased responses;
• Not enough public transit options for Carlsbad employees
• Need more bus routes from the Coaster
• Reduce traffic congestion, increase traffic flow and improve traffic light timing
Entry and mid-level employees
The 10 percent of respondents that indicated dissatisfaction with their ability to find
qualified entry to mid-level employees were asked as a follow up, if there was a specific
issue of concern and how they suggested responding to it. These are some of the
paraphrased responses;
• More moderate income housing
• Cost of living is high
• Finding qualified applicants means having people commute from longer
distances
Strengths of Carlsbad business community
The City boasts a concentration of export-oriented, innovation driven businesses in key
industry clusters including Action Sports, ICT (Information and Communications
Technologies), CleanTech and Life Sciences. The employers in these four Carlsbad
industry clusters, tend to be larger businesses with wages well above the local and
regional average. These businesses not only provide high wages they generate a
considerable multiplier effect on local employment and tax revenue. Recent research by
economist Enrico Moretti^ reveals that for every job in an innovation based export-
oriented business, like the four industry clusters in Carlsbad, approximately five
additional jobs are created. Any strategies that increase local employment in these high-
paying industry clusters is likely to have a significant multiplier effect on businesses
throughout the Carlsbad economy.
Background and Methodology Overview
For this study, BW Research conducted an evaluation of businesses within the City of
Carlsbad based on information from SANDAG's recent industry cluster research,
InfoUSA, EMSI, and California's Employment Development Department. The study also
included a stratified telephone and online survey, which was completed by 223 Carlsbad
businesses.
^ Research is taken from the New Geography of Jobs, by Enrico Moretti 2012.
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The survey research included an oversample of employers from Carlsbad's five industry
clusters, which include;
1. Action Sports Manufacturing cluster includes firms that are engaged in the
design and production of golf club, surfboard, diving, and other recreational
goods as well as the apparel and accessories that is closely tied to these
products.
2. Life Sciences cluster combines two of SANDAG's industry clusters. Biomedical
Devices and Products which includes the research, design, and production of
medical devices and Biotechnology and Phannaceuticals which includes
research and development related to biological technologies as well as the
manufacturing of medicinal and diagnostic substances.
3. Cleantech cluster includes firms that are engaged in renewable energy, energy
efficiency, and energy storage.
4. Entertainment & Hospitality cluster includes hotels, transportation services,
and restaurants, as well as entertainment attractions such as theme parks
(LEGOLAND), golf courses, and country clubs.
5. Information, Communications, & Technologies (ICT) cluster includes
communications, computer and electronics, and software industries.
As a follow-up to the quantitative survey, two qualitative executive interviews were
completed with decision makers from Carlsbad's life sciences cluster to gain a deeper
understanding of how local businesses perceive some of the issues identified in the
quantitative survey results and how they relate specifically to the life sciences industry.
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OVERALL INDICATORS FOR THE BUSINESS COMMUNITY
CARLSBAD AS A PLACE TO DO BUSINESS
Eighty-seven percent of Carlsbad businesses surveyed provided a positive rating for the
City of Carlsbad as a place to do business, with 39 percent rating it as "excellent" and 48
percent "good." Eight percent of businesses provided a neutral rating, three percent a
negative rating, and three percent were not sure or declined to state.
Figure 1: Rating for the Cttv of Carlsbad as a Place to Do Business
Excellent
Good
39.0%
47.5%
Fair 8.1%
Poor 1.8%
Very poor I 0.9%
DK/NA
20% 40% 60% 80%
Firms with two or more Carlsbad locations provided a higher rating for Carlsbad
as a place to do business than firms with one location (97% positive vs. 85%).
Firms who have been in Carlsbad more than 20 years were the most likely to
provide a positive rating (96%) and in particular, an excellent rating (51%).
As one would expect, firms who reported a decline in employment at their
Carlsbad location(s) over the past three years were less likely to provide a
positive rating (77%) than those who grew (91%) or stayed the same (89%).
There was no difference in overall positive ratings by difficulty finding qualified
professional and technically skilled applicants; however, those reporting little to
no difficulty were much more likely to provide an "excellent" rating. There was a
difference in overall ratings by satisfaction with their ability to recruit high-skill
talent and find qualified entry to mid-level employees (with those "very satisfied"
providing much higher "excellent" and overall positive ratings).
Examining the relationship between this metric and others questions, ratings
were most strongly correlated (.43 to .49) with confidence in city government to
make decisions that impact the business climate, satisfaction with the regulatory
climate, satisfaction with information and economic development from the City of
Carlsbad (among those who had received information), and satisfacfion with
organizations to support economic development and entrepreneurship.
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• When asked to rate Carlsbad as a place to do business, firms in the Action
Sports cluster were the most posifive, with all firms rafing Carlsbad as "excellent"
or "good" (n=8, 100%). Life Sciences (n=15, 93%) and Cleantech (n=12, 92%)
also provide above average rafings. Entertainment and Hospitality firms (n=31,
87%) provided a rafing in line with the average across all firms, whereas ICT
firms provided a below average rafing (n=25, 80%). Overall, rafings were
comparable among those in one of the five clusters versus those not in one of
the clusters (88% positive vs. 86%).
Please note for all individual industry cluster survey response analyses throughout this report:
Although the survey sampling plan included a focus on firms in the five industry clusters, the sample
sizes within three ofthe five clusters were less than 25 respondents - which is the minimum for
assuming a normal distribution. As such, caution should be utilized when generalizing the results for
Action Sports (n=8), Cleantech (n=12), and Life Sciences (n=15).
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PERCEPTION OF THE BUSINESS CLIMATE
Thirty-five percent of businesses surveyed perceive the business climate in Carlsbad to
be "getting better" and 52 percent feel it is "staying about the same." Only six percent
view the business climate in the city as "getting worse" and seven percent of
respondents were not sure or declined to provide a response to the quesfion.
Figure 2: Perception of Business Climate in Carlsbad
Getting
worse
6.3%
DK/NA
6.7%
Firms with one Carlsbad location were more likely than those with two or more to
perceive the Carlsbad business climate as "staying about the same" (55% vs.
35%). The plurality of firms with two or more locafions viewed it as "getting
better" (42% vs. 34% among those with one locafion) and were also more than
twice as likely to view it as "getfing worse" (13% vs. 5%).
Firms that had been in Carlsbad for more than 20 years (43%) or five years or
less (39%) were more likely to have a positive outlook ("getting better") as
compared with those that had been in the city for a length in between (29%).
Perceptions of the business climate were correlated with growth over the past
three years as well as their outlook for growth over the next year. Firms that had
increased the number of employees at their Carlsbad location(s) over the past
three years (46% "getting better) as well as those that expected to grow over the
next year (42%) were the most posifive.
Firms that had received economic development informafion or updates from the
City of Carlsbad were more than twice as likely to perceive the business climate
as "getfing better" than those who had not received informafion (48% vs. 23%).
Examining the relafionship between this metric and others survey questions,
ratings were most strongly correlated (.22 to .29) with rafings for the City of
Carlsbad as a place to do business, safisfaction with organizations to support
economic development and entrepreneurship, confidence in city government to
impact the climate, and satisfaction with informafion and economic development
from the City of Carlsbad (among those who had received information).
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Firms in one of the five industry clusters had a more posifive outlook for the City
of Carlsbad business climate than those firms not in one of the five clusters (i.e.,
the percentage indicating it was "getting better"). Firms in the Action Sports
cluster (n=8, 63% "getting better") and Entertainment and Hospitality cluster
(n=31, 42%) were the most posifive.
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CONFIDENCE IN CITY GOVERNMENT TO IMPACT THE BUSINESS CLIMATE
Three out of four businesses surveyed indicated they are confident in Carlsbad city
government to make decisions that positively affect the local business climate, with a
quarter "very confident" and the majority "somewhat confident." Ten percent of
respondents reported they are not confident in Carlsbad city government to posifively
impact the business climate and 15 percent were not sure or declined to state.
Figure 3: Confidence In Citv Government to Impact Business Climate
Very confident
Somewhat confident
24.7%
50.2%
Somewhat unconfident 8.1%
Very unconfident ffl 2.2%
Not sure or DK/NA 14.8%
0% 20% 40% 60% 80%
• Ninety-six percent of firms that had been in Carlsbad more than 20 years
indicated they are confident (and 43% are "very confident") in Carlsbad city
government to make decisions that posifively affect the local business climate.
• Examining the relafionship between this metric and others quesfions throughout
the survey, ratings were most strongly correlated (.43 to .51) with satisfacfion
with organizafions to support economic development and entrepreneurship;
rafings for the City of Carlsbad as a place to do business; safisfacfion with the
regulatory climate, including zoning, permitfing, local regulations and related
issues; and satisfaction with access to relevant vendors and supplies.
• Compared with those not classified into one of the five clusters, firms in one of
the five industry clusters reported a higher level of confidence in Carlsbad city
government to make decisions that positively affect the local business climate
(70% vs. 81%). However, this difference was driven by differences in not sure
and don't know responses among firms not in a cluster. The percentage
"unconfident" was comparable among the two groups.
• Among the five clusters, Acfion Sports (n=8, 100% confident) and Cleantech
(n=12, 92%) reported the highest confidence levels.
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HIRING EXPECTATIONS OVER THE NEXT YEAR
Thirty-five percent of businesses expect to have more workers at their Carlsbad
locafion(s) 12 months from the time ofthe survey, resulfing in an anticipated growth rate
of 4.3 percent which is a marked change from the -2.8 percent reported by respondents
over the past three years. Fifty-eight percent of firms expect to maintain current
employment levels over the next year, three percent expect to have fewer total
employees, and four percent were not sure or declined to state.
Figure 4: Hiring Expectations for the Next 12 Months
Fewer
3.1%
DK/NA
4.5%
Figure 5: Hiring Expectations for the Next 12 Months bv Business Size
80%
60%
40%
20%
0%
• 1 to 5 employees
• 6 to 10 employees
• 11 to 24 employees
m25 to 49 employees
USO or more employees
CO 1
CO
CO 00
i6 55
More Fewer Same number of
employees
Don't know/
Refused
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A higher than average percentage of firms with 50 or more employees in
Carlsbad reported anticipafing "fewer" employees over the next year (9% vs. 3%
average).
Firms with one Carlsbad locafion were nearly three fimes as likely to anficipate
having more employees 12 months from now as compared to firms with two or
more Carlsbad locafions (38% vs. 13%).
Firms with a primary focus on businesses (40% "more") or a combination of
businesses and consumers (37%) were more likely to anticipate adding
employees over the next year than those that focused just on consumers (28%).
Companies that grew over the last three years were the most likely to report that
they expect to continue growing in the next year (52% vs. 35% average).
Firms in the Acfion Sports (n=8, 63%), Cleantech (n=12, 50%), and Life Sciences
(n=15, 40%) clusters each had at least 40 percent of firms reporting that they
expect to add more employees over the next year. In addifion. Life Sciences
(n=15) and Acfion Sports (n=8) each reported growth by at least a quarter of
firms over the past three years. Although there was no difference in 12-month
hiring expectations over the next year among those in one of the clusters versus
those not in a cluster, there was a difference in past growth. Firms within one of
the five clusters were much more likely to have stayed the same over the past
three years as compared to firms not in one of the clusters (59% vs. 48%),
whereas a higher percentage of firms not in a cluster reported growth during the
same fime period (28% vs. 19%).
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ECONOMIC DEVELOPMENT INFORMATION FROM THE CITY AND SATISFACTION
Thirty-seven percent of the businesses surveyed have received economic development
informafion or updates from the City of Carlsbad. Among those, 87 percent were
satisfied (36% "very satisfied") with the information received from the city on their
economic development services and those programs related to supporting Carlsbad's
businesses.
Figure 6: Received Economic Development Information or Updates from Carisbad and Satisfaction
with Information Received
Very satisfied
Somewhat satisfied
Somewhat dissatisfied
Very dissatisfied
DK/NA
36.1%
50.6%
n 3.6%
0.0%
9.6%
0% 20% 40% 60% 80*M
• Much higher than the 37 percent average, the majority of businesses (51 %) that
have been in Carlsbad for more than 20 years reported receiving economic
development information or updates from the City of Carlsbad.
• Firms that decreased their Carlsbad employment over the past three years (43%)
were more likely to have received informafion than firms that had grown (37%) or
stayed the same (35%).
• Examining the relationship between safisfacfion among those who had received
information and updates from the City of Carlsbad and other survey questions
revealed that ratings were most strongly correlated (.44 to .50) to satisfaction
with access to relevant vendors and suppliers, rafings for the City of Carlsbad as
a place to do business, satisfacfion with local roads and transportation system,
and satisfacfion with the ability to find qualified entry to mid-level employees.
• Overall, there was no difference in the percentage of firms reporting that they
have received economic development information or updates from the City of
Carlsbad among those in one of the five industry clusters versus those not in a
cluster (37% among each group). However, when the five clusters are examined
separately, firms within the Entertainment and Hospitality cluster (n=31, 42%)
were the most likely to reported having received information whereas those in the
Life Sciences cluster (n=15, 27%) were the least likely.
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IMPORTANCE OF INDUSTRY CLUSTERS
Industry clusters represent a comprehensive way of identifying and evaluating related
industries within a given area. The process of idenfifying and examining clusters is
based not only on the goods and services that employers are engaged in, but more
important understanding the economic relafionships that exist between vendors,
suppliers, and customers who are using related products and services. The firms within
an industry cluster typically share common needs for talent, human capital, technology,
and infrastructure.
Most industry clusters are export-oriented driving wealth creation by bringing in
customers and revenue from outside the region rather than being limited to those
customers that just live within the area. The emphasis on export-oriented clusters not
only expands the universe of potenfial customers but also diversifies the economy and
provides greater opportunity for growth and a hedge against regional economic decline
when some ofthe population-serving industries are negatively impacted. Lastly and
potentially most important, the growth in industry clusters will typically have a large
mulfiplier effect, increasing employment and business opportunifies for all types of
businesses within a given community and/or region.
According to the San Diego Associafion of Governments' (SANDAG) December 2012
report: Traded Industry Clusters in the San Diego Region:^
Traded industry clusters are groups of interrelated, export-oriented industries that bring new money
into the region. Industries within an industry cluster have business transactions with one another,
and thus are interdependent. Cluster companies often participate in local industry associations,
fostering collaboration and the exchange of knowledge. Companies within a cluster also compete
with each other for market share, which drives innovation and productivity.
Companies within clusters tend to be among the region's leaders in research and development
funding, patent awards, and other key indicators of innovation. Many ofthe clusters also pay high
wages, although some do not. All clusters are economic drivers for the region because they are
export-oriented.
San Diego's regional traded clusters were first identified as a result ofthe 1998 Regional Economic
Prosperity Strategy (REPS), which was developed to address the recession and economic
restructuring ofthe early 1990s. Originally, the clusters were determined by a committee of local
industry and economics experts. The current method relies both upon committee input and a
methodology based on sound principles and practices that can be replicated for other regions,
minimizing the subjectivity ofthe committee-based approach.
Industry clusters are different from traditional sector employment because the clusters focus on
specialized industries as well as buyer and supplier linkages that are unique to a region's economy.
Viewing the regional economy through the perspective of clusters is important when describing the
fast-paced, international economy of today. Elected officials, planners, and local residents want
information about biotechnology and cleantech, for example. It is not possible to obtain this level of
detail using traditional industry sector reporting.
Industry cluster analysis is a useful tool to look deeply at the structure of the economy and help
determine what direction it will take in the future. As technology and industries change, new cluster
groups may come into existence.
Excerpted from page 1: Traded Industry Clusters in the San Diego Region.. SANDAG, December 2012.
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SANDAG focused on 13 industry clusters in its latest report. Among those, six clusters^
are most relevant to the City of Carlsbad as they either already have a relafively high
concentrafion of employment within Carlsbad or they offer an industry that has the
opportunity to see considerable growth within the next three to ten years. These industry
clusters relevant to the City of Carlsbad, include;
1. Action Sports Manufacturing cluster includes firms that are engaged in the
design and producfion of golf club, surfboard, diving, and other recreafional
goods as well as the apparel and accessories that is closely tied to these
products.
2. Life Sciences cluster combines two of SANDAG's industry clusters, Biomedical
Devices and Products which includes the research, design, and production of
medical devices and Biotechnology and Pharmaceuticals which includes
research and development related to biological technologies as well as the
manufacturing of medicinal and diagnosfic substances.
3. Cleantech cluster includes firms that are engaged in renewable energy, energy
efficiency, and energy storage.
4. Entertainment & Hospitality cluster includes hotels, transportation services,
and restaurants, as well as entertainment attractions such as theme parks
(LEGOLAND), golf courses, and country clubs.
5. Information, Communications, & Technologies (ICT) cluster includes
communicafions, computer and electronics, and software industries.
It should be noted that each ofthe industry cluster definifions are generally consistent
with SANDAG; a few minor revisions and addifions were made after reviewing the
database of employers with the City of Carlsbad.
Carlsbad's five industry clusters represent approximately one in every
seven businesses in Carlsbad while accounting for just over 40 percent of
all jobs in the city. And with the exception of Entertainment and Hospitality,
provide average annual eamings per worker that are just over one-third
higher than the city's average.
The chart on the following page shows the key clusters and their projected growth over
the next three years (2013 to 2016). The size ofthe bubbles indicates relative size
based on employment to other industry clusters in the chart. The Entertainment &
Hospitality cluster is the largest with 11,941 employees in the City of Carlsbad.
The cluster share of local employment compared to its share of national employment is
measured on the vertical axis by its location quofient (LQ). A location quotient of 1.0
indicates equal cluster share of employment between a region and the nafion. The
Acfion Sports Manufacturing cluster has the largest location quofient of 49.58, which
means that it is nearly 50 fimes more concentrated in the City of Carlsbad when
compared to the national average. In fact, each ofthe five industry clusters has a
locafion quofient greater than 1.0.
^ The pages to follow present information on five clusters. Two of SANDAG's clusters - Biomedical Devices
and Products & Biotechnology and Pharmaceuticals - have been combined into Life Sciences.
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City of Carlsbad
Finally, the horizontal axis displays projected growth for the three year fime frame
between 2013 and 2016. Positive growth is expected for four industry clusters
(Cleantech: 13%; Life Sciences: 11%; ICT: 9%; and Entertainment & Hospitality: 7%),
with only Action Sports Manufacturing projected to experience negative growth (-5%).
Figure 7: Citv of Carisbad Industrv Clusters bv Employment Location Quotient (LQ) and Growth^
9.0
O _i
E 5.0
CM
6% 8% 10% 12% 14%
2013-2016 % Change Employment
0(1) Action Sports Manufacturing
0(2) Life Sciences
® (3) Cleantech
0(4) Entertainment & Hospitaiity
0(5) Information & Communications Technologies (ICT)
Source: EMSI Complete Employment 2012.4.
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City of Carlsbad
ACTION SPORTS MANUFACTURING
Acfion Sports Manufacturing, more than any other cluster examined, identifies
Carlsbad's unique business strengths when compared to the nafional economy. This
cluster has seen considerable growth over the last ten years, but is also expected to
decline in employment over the next three years. This cluster has approximately 47 firms
and 2,773 jobs in Carlsbad. The average annual earnings per worker in this cluster is
approximately $91,020.
With a high concentrafion of golf club, surfboard, diving, and other recreafional goods
manufacturing in the region, it is clear that this industry is a highly export-oriented
economic driver. This cluster also is strongly associated with sporting and
recreafional goods wholesalers.
Based on the vast amounts of sunshine, close proximity to the ocean, and the
lifestyle of southern California, the Acfion Sports Manufacturing cluster has been a
steady presence in the region.
Excerpted from page 3: Traded Industry Clusters in the San Diego Region, SANDAG, December 2012.
LIFE SCIENCES
For our purposes, two of SANDAG's clusters - Biomedical Devices and Products &
Biotechnology and Pharmaceuticals - have been combined into Life Sciences for
examination in the City of Carlsbad. These two industry clusters are expected to see
strong employment growth through 2016. The Life Sciences cluster has approximately
131 firms and 7,033 jobs in Carlsbad. The average annual earnings per worker in this
cluster is approximately $128,722.
Biomedical Devices and Products
The Biomedical Devices and Products industry cluster consists primarily of firms
producing surgical, medical, dental, opfical, and ophthalmic devices and products as
well as laboratory applicafions. It also includes firms conducfing research and
development acfivities. Most of the companies in this cluster consist of middle to
smaller sized companies.
Biotechnology and Pharmaceuticals
The Biotech and Pharmaceuticals cluster primarily consists of research and
development industries in fields related to chemical and biological technologies. This
cluster also includes the manufacturing of medicinal and diagnosfic substances. It
generally consists of middle to smaller sized companies as well as world-renowned
research institutes. This Biotech and Pharmaceuficals cluster is currently a major
regional economic driver with strong job growth and funding.
Excerpted from page 5: Traded Industry Clusters in the San Diego Region., SANDAG, December 2012.
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City of Carlsbad
CLEANTECH
Carlsbad's Cleantech businesses are expected to increase employment over ten percent
by 2016 and confinue to grow in importance within the local and regional economy. The
Cleantech cluster in Carlsbad has approximately 90 firms and 4,882 jobs. The average
annual earnings per worker in this cluster is approximately $112,672.
Due to the move toward more renewable energy products and services, this industry
cluster has evolved from the Environmental Technology to the Cleantech industry
cluster. Industries included in this cluster perform processes such as industrial
products and semiconductor manufacturing (for solar panels); research and
development; tesfing; and industrial and instrument manufacturing, as well as design,
environmental, and technical consulfing services. Firms Included in this cluster
specialize in energy efficiency (e.g., battery technologies, solar panels and related
products, fuel efficient automobiles, and testing equipment); clean energy generafion
(e.g., solar engineering, management and consulting services, and
biofuels/biodlesel); and energy storage (e.g., battery technologies, biomass, biofuels,
and smart electricity).
Excerpted from page 6: Traded Industry Clusters in the San Diego Region, SANDAG, December 2012.
ENTERTAINMENT AND HOSPITALITY
Carlsbad's Entertainment and Hospitality cluster provides the largest number of jobs of
the five Carlsbad clusters that were examined. The cluster has approximately 153 firms
and 11,941 jobs in Carlsbad. The average annual earnings per worker in this cluster is
approximately $25,567.
San Diego has an internafional reputation as a tourist and convenfion center
desfinafion. Visitors are not only drawn to the region's great amenifies, natural
resources, and weather but also popular entertainment and attracfions. In previous
reports, Travel and Hospitality and Entertainment and Amusement were reported as
separate clusters. Because of their strong interrelafionship, these clusters have
merged into one Entertainment and Hospitality cluster. Local hotel, transportafion
services, and restaurants, which accommodate the region's visitors, account for the
bulk of the travel and hospitality portion of the cluster, while world famous museums
and zoos serve as major entertainment attracfions. Other entertainment attractions for
the region include recreafional activifies, such as theme parks, golf courses and
country clubs, athlefic events, race tracks, theatres, and numerous artists and
performers. Overall, the Entertainment and Hospitality cluster brings many visitors
and spending from outside the region.
Excerpted from page 6: Traded industry Clusters in the San Diego Region, SANDAG, December 2012.
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City of Carlsbad
INFORMATION AND COMMUNICATIONS TECHNOLOGIES (ICT)
The Informafion and Communicafions Technologies (ICT) represent a valuable employer
in Carlsbad, with strong growth expectations and high wages. The ICT cluster has
approximately 254 firms and 9,203 jobs in Carlsbad. The average annual earnings per
worker in this cluster is approximately $114,561.
The ICT industry cluster includes communications, computer and electronics, and
software industries. These industries, reported separately in previous cluster reports,
have strong interconnecfions resulfing in the emergence ofthe new ICT cluster. Firms
in this cluster specialize in manufacturing radio and television broadcasfing and
wireless communication equipment, audio and video equipment, semiconductors and
associated products, computer and electronic components, and other
communications equipment manufacturing. Likewise, many service-related industries
support this cluster including engineering, custom computer programming, and
software. Many companies in this cluster work on government and defense contracts
as well as private commercial projects. Although this cluster contains many large
globally recognized communicafions companies, it also includes a large number of
smaller companies.
Excerpted from page 8: Traded Industry Clusters in the San Diego Region, SANDAG, December 2012.
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City of Carlsbad
OPPORTUNITY AND ASSESSMENT IN CARLSBAD'S BUSINESS
COMMUNITY
This secfion ofthe research summarizes Carlsbad businesses' responses to quesfions
that evaluated opportunities and a current assessment of specific components of
Carlsbad's business community.
Main Reasons Company Located in Carlsbad
Early in the survey, respondents were asked to provide the main reasons their business
located in Carlsbad. This was an open-ended quesfion, meaning respondents were not
given any potential responses. As shown in the figure below, proximity to customers,
collaborators, and vendors (35%) and having founders living in Carlsbad (34%) were the
top reasons for locating within the City of Carlsbad. The quality of life in Carlsbad was
also indicated by almost one in every six respondents.
Figure 8: Main Reasons Companv Located in Carlsbad
Proximity to customers, collaborators,
and vendors
Founders lived here
Quality of life in Carlsbad
Spun-off another company that was
already here/ bought existing company
Proximity to skilled workers/workforce
Cost of conducting business
Other
16.1%
13.5%
35.0%
33.6%
11.7%
DK/NA 12.1%
0% 20% 40% 60%
Locating in Carlsbad because the founders lived here was more likely among
firms with one Carlsbad locafion and those with one to five employees.
Locafing in Carlsbad due to its proximity to customer, collaborators, and vendors
was more likely among firms with two or more locations and 11 to 99 employees
in Carlsbad.
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Perceived Value ofa University or Institute of Higher Education Located in
Carlsbad
Later in the survey, respondents were asked about the value of a university or institute of
higher learning being located in the City of Carlsbad. Almost two out of three businesses
indicated that would be either "very valuable" or at least "somewhat valuable." Although
their sample size was small in the survey (n=15). Life Sciences firms were the most
likely to report that a university or institution of higher educafion in the City of Carlsbad
would be "very valuable" to their firm (40%).
Figure 9: Value of a Universitv or Institution of Higher Education Located in the Citv of Carisbad
Very valuable
31.8% 1^ DK/NA
5.4%
As a follow-up question, those respondents that indicated a university or institute located
in Carlsbad would be very or somewhat valuable proposifion were asked to indicate
what program or area of research they would like to see at the potential learning
institufion. The top open-ended responses to this question included;
1. MBA, business/markefing or entrepreneurship (30%)
2. Renewable energy - solar, biofuel, etc. (10%)
3. ICT or computer science (9%)
4. Electrical or software engineering (8%)
5. Medical and/or health sciences (8%)
6. Engineering (other 7% - no single category over 2%).
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Satisfaction with Specific Components of the Business Climate
After respondents were asked their overall assessment of the city's business climate,
they were asked about their safisfaction with specific components of the city's business
climate.
Figure 10: Satisfaction with Attributes of Carlsbad's Business Climate^
Quality of life
Access to relevant vendors and
suppliers
Access to clients and customers
72.5% 23.9%
43.6% 38.1% 15.8%
40.4% 40.9% 16.3%
Local roads and transportation
system
Ability to find qualified entry to
mid-level employees
39.7% 1 40.6% • ii%|
30.0% m 46.0% 9%|
Ability to recruit high skill talent
Ability to network or interact with
other high-level decision-makers
in Carlsbad's business community
Organizations to support
economic development and
entrepreneurship
Access to capital
Regulatory climate, including
zoning, permitting, local
regulations, and related issues
27.8% 47.0%
25.8% 1 42.1% 7%
22.2% 43.4%
23.1% 37.9% 28.4% 7%P
21.5% 1 35.5% 21.5% 17.0% s
0% 20% 40% 60% 80% 100%
I Very satisfied d Somewhat satisfied ^Neither ^ Somewhat dissatisfied @ Very dissatisfied
^ Due to higher than average percentages of "Don't know/ no answer" responses for many items, those
responses were filtered out ofthe analysis for this series. The high percentages are likely due to lack of
direct experience with those services (please refer to Appendix C for full breakdown of responses).
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Distnbution of Customers and Suppliers & Vendors
Respondents were asked where their customers were primarily found, as well as their
suppliers and vendors. As the figure below shows, just over half of businesses see their
primary customers as local, but one fifth of respondents indicated that their primary
customers are outside the United States. Please note that respondents were allowed to
indicate more than one primary area for customers or suppliers and vendors so totals
will equal more than 100 percent.
Figure 11: Location of Customers and Suppliers & Vendors
Local - Carlsbad & North County
Regional - within Southern California
Statewide - within California
National - within the United States
International - outside the United States
Do not have suppliers or vendors
Don't know
31.8% I
54.3%
34.5%
38.6% I
33.6%
37.7% I
20.6%
13.0%
0.0%
l 2.7%
0.0% 1 0.9%
• Customers
• Suppliers and Vendors
0% 20% 40% 60% 80%
Neariy two thirds (66%) of medium-sized firms identified their primary customers
as local compared to under half (43%) of small firms making the same claim.
Although a small sample size, Acfion Sports see just over one third (38%) of their
primary customers as being located outside the United States.
Large companies were less likely to identify local suppliers and vendors as their
primary suppliers and vendors when compared to the average (12% vs. 32%).
Eighty percent of Life Sciences firms reported that their primary suppliers and
vendors were nafional compared to just 19 percent of Entertainment and
Hospitality firms.
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APPENDIX A: SECONDARY DATA ON UNIVERSE OF CARLSBAD
BUSINESSES AND SURVEY DATA NOT PREVIOUSLY PRESENTED
UNIVERSE OF CARLSBAD BUSINESSES
The City of Carisbad is home to an esfimated 5,035 businesses® that employ
approximately 86,560 individuals.^
Approximately three out of five businesses within Carisbad are small, with fewer than
five employees. However, compared to California as a whole (18%), Carisbad (20%) has
a relafively large portion of businesses that are either medium-sized (10 to 24
employees) or large (25+ employees). The average size of Carisbad businesses is 17.2
employees compared to 14.8 statewide.
Figure 12: Secondary Data - Citv of Cartsbad Size of Businesses
10 to 24
employees
11.8%
25 or more
employees
8.4%
Figure 13: Secondary Data - California Size of Businesses
10 to 24
employees
10.8%
or more
employees
7.2%
^ Source: InfoUSA.
Source: Economic Modeling Specialists, Inc. (EMSI).
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16.8%
14.5%
Business Survey Report
City of Carisbad
When factoring in both number of establishments and workers,® Professional, Scienfific,
and Technical Services (NAICS 54: 858 businesses, 11,051 workers) and Retail Trade
(NAICS 44-45: 742 businesses, 9,118 workers) are the two industries with the largest
presence in Carisbad. Although Manufacturing has a relatively small number of firms
(198), it is the second largest Carisbad employer with just over 10,000 workers (10,238).
Figure 14: Secondary Data - Industrv Breakdown by Number of Businesses^
Professional, Scientific, and Technical Services
Retail Trade
Other Services (except Public Administration)
Finance and Insurance
Health Care and Social Assistance
Real Estate and Rental and Leasing
Construction
Accommodation and Food Services
Wholesale Trade
Nonclassified Establishments
Administrative and Support and Waste
Management and Remediation Services
Manufacturing
Information
Arts, Entertainment, and Recreation
Educational Services
Transportation and Warehousing
Public Administration
Agriculture, Forestry, Fishing and Hunting
Management of Companies and Enterprises
Utilities
Mining, Quarrying, and Oil and Gas Extraction
40%
Data sources: InfoUSA for number of businesses and EMSI for number of workers.
Industries presented are at the 2-digit NAICS code level.
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ADDITIONAL SURVEY DATA
This secfion presents data collected from survey respondents that were not presented
within the body of the report.
Please refer to Appendix C for a complete breakdown ofthe sun/ey quesfions, including
the demographic profile of respondents (age, gender, city of residence).
Number of Carlsbad Locations
Eighty six percent of firms surveyed have one locafion in Carisbad, for a mean of 1.30
locafions across respondents.
Figure 15: Number of Carisbad Locations
1
One
Carisbad
locafion
86.1%
Two
locations
8.5%
/ Three or
^ more
* locations
^ 5.4%
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Carisbad businesses were asked to idenfify the number one thing that the city could do
to improve the local business climate. This question was open-ended, meaning
respondents were not provided any potenfial responses but were instead allowed to
communicate the first issue that came to mind. As shown by the figure below, no single
issue resonated with at least ten percent of all businesses, aside from the response of
"nothing needs improvement." It should also be noted that respondents were allowed to
give up to two responses, so the total percentages of responses will equal more than
100 percent.
Figure 16: Number One Thing Citv of Carisbad Could Do to Improve Business Climate
9.0% Simplify permits, fees and/or regulations
(time, cost, etc.)
Improve, redevelop the Village
Offer more business
incentives/programs
Improve the quality of the roads and
other infrastructure
Fix the traffic problems
Allow more signage/advertisements
Expand parking
More public transportation
More business events (conventions,
networking, etc.)
Lower taxes
Improve beach access
Build or renovate more
commercial/industrial space
Preserve more open space
improve schools
Other
Nothing needs improvement
DK/NA
40%
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Number of Years Located in Carlsbad
Surveyed firms have been in Carisbad for an average of 13.78 years (median 10.00).
Figure 17: Number of Years Located in Carisbad
2 years or less
More than 2 up to 5 years
More than 5 up to 10 years
More than 10 up to 20 years
More than 20 years
8.1%
22.9%
22.9%
23.8%
22.0%
DK/NA J^O.4%
0% 20% 40% 60%
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Number of Employees at Carlsbad Location(s)
The majority of sun/eyed firms have 10 or fewer employees (51%). The average number
of employees at their Carisbad locafion(s) is 24.99 and the median is 10.00.
Figure 18: Number of Employees at Carisbad Location(s)
1 to 5 employees
6 to 10 employees
11 to 24 employees
29.6%
21.1%
26.0%
25 to 49 employees
50 to 99 employees
100 or more employees
10.3%
40% 60%
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Pnmary Focus of Business
Thirty-nine percent ofthe Carlsbad businesses surveyed are primarily focused on
serving consumers direcfiy while 25 percent are primarily focused on serving other
businesses and 35 percent serve a combination of both businesses and consumers.
Figure 19: Primary Focus of Business
Combination
of both
. 35.0%
DK/NA
1.3%
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Change in Employment over the Past Three Years
Just under a quarter (24%) of surveyed businesses grew over the past three years, 52
percent maintained employment levels at their Carisbad location(s), and 20 percent
shrunk: resulting in a growth rate of -2.8 percent during the fime period.
Figure 20: Change in Employment over the Past Three Years
DK/NA
3.6%
• Firms who had been in Carisbad more than 10 years and up to 20 years were
the most likely to report having declined over the past three years (34% vs. 20%
overall).
• Although their surveyed sample size was small (n=12), 42 percent of firms with
three or more locafions reported grov^rth over the past year compared with 24
percent overall.
• Firms with one to five employees in Carisbad were the most likely to report
having staying the same (68%), those with 25 to 49 employees were the most
likely to report growth (57%), and those with 50 to 99 employees were the most
likely to report declines (33%, small sample size for this sub-group: n=12).
• Other cluster firms (not in one of the five industry clusters) were more likely to
report growth over the last three years (28%) than either Entertainment and
Hospitality (19%) or the High Tech cluster group (which includes employers from
Life Sciences, ICT, Cleantech, & Acfion Sports) (18%).
• Sixty percent of High Tech clusters indicated that they had maintained the same
employment over the last three years compared to 52 percent overall.
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Expectations for Physical Space In Carlsbad over the Next 12 to 24 Months
Most firms (85%) expect to maintain the current amount of physical space they have in
Carisbad. Although the sample size was small (8%, n=18 firms), firms expecfing to
increase their space in Carisbad were most likely to need the addifional space to expand
their current locafion (39%) or for an additional new location (33%). Among those 11
firms, 73 percent intended to look in Central Carisbad, along or near Palomar Airport
Road.
Among the three percent of firms forecasting to decrease the amount of physical space
they have in Carlsbad (small sample size, n=11 firms), 43 percent expect to leave or
close their Carisbad locafion in the next one to two years and 29 percent indicated they
could possibly close. The main reason cited for decreasing their physical space in
Carisbad was that business has declined or they are closing (43%).
Figure 21: Expectations for Physical Space in Carlsbad over the Next 12 to 24 Months
Decrease
3.1%
DK/NA
3.6%
Increase
8.1%
Nearly one in six Entertainment and Hospitality firms (16%) indicated that they
expect to increase their space in Carisbad over the next 12 to 24 months
compared to the average of just under one in ten for all Carisbad business
industries (8%).
Ninety percent of High Tech clusters indicated that they expect to maintain their
current space compared to 84 percent of Other cluster businesses and 81
percent of Entertainment and Hospitality firms.
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APPENDIX B: SURVEY METHODOLOGY
Data compiled for this report were drawn from both primary and secondary data sources.
The table below provides a brief overview of the methodology utilized for the project.
Table 1: Overview of Proiect Methodology
Method Secondary Research of Business Data for City of Carisbad
Survey of Carisbad Businesses
Number of Survey
Participants 223 Firms in Carisbad Completed a Web or Telephone Survey
Survey Field Dates December 5, 2012 - January 3, 2013
Survey Universe 2,076 Firms with at least 5 Employees^° in the City of Carisbad
Survey Margin of
Error
The margin of error for questions answered by all 223 respondents was
+/-6.20% at the 95% level of confidence.
SECONDARY RESEARCH
For this study, industry clusters were defined using the North American Industry
Classificafion System codes. Table 2 displays the complete list of NAICS codes used for
this study.
All secondary data used in this study were compiled from either InfoUSA or the
Economic Modeling Specialists Inc. (EMSI) 2012.4 Complete Employment dataset for
the City of Carisbad. The EMSI Complete Employment dataset includes state and
federal level data sources and include the self-employed (proprietors and partnerships),
agricultural workers, and others not captured by basic payroll data.
EMSI current year esfimates are partial projecfions based on the Quarterly Census of
Employment and Wages (QCEW) and Current Employment Statistics (CES) provided by
the Bureau of Labor Statisfics (BLS). Future year projecfions are based on available
historical data for industries and clustered industries.
^° Only firms with at least five employees as classified by InfoUSA were included in the sample. Some firms
reported fewer than five Carlsbad employees when surveyed.
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Table 2: NAICS Codes Used to Define Industrv Clusters
NAICS
Industry Cluster Code NAICS Description
Action Sports 339920 Sporting and Athletic Goods Mfg.
Manufacturing 423910 Sporting and Recreational Goods and Supplies Merchant Wholesalers
333319 Other Commercial and Service Industry Machinery Mfg.
334413 Semiconductor and Related Device Mfg.
334513 Instruments and Related Products Mfg. for Measuring, Displaying, and
Controlling Industrial Process Var.
541380 Testing Laboratories
541420 Industrial Design Services
Cleantech 541620 Environmental Consulting Services
541690 Other Scientific and Technical Consulting Services
541712 Research and Development in the Physical, Engineering, and Life
Sciences (except Biotech)
333315 Photographic and Photocopying Equipment Mfg.
334514 Totalizing Fluid Meter and Counting Device Mfg.
335314 Relay and Industrial Control Mfg.
114111 Finfish Fishing
487210 Scenic and Sightseeing Transportation, Water
532292 Recreafional Goods Rental
711110 Theater Companies and Dinner Theaters
711211 Sports Teams and Clubs
711212 Racetracks
711510 Independent Artists, Writers, and Performers
712130 Zoos and Botanical Gardens
713110 Amusement and Theme Parks
721110 Hotels (except Casino Hotels) and Motels
722213 Snack and Nonalcoholic Beverage Bars
722330 Mobile Food Services
481111 Scheduled Passenger Air Transportation
481211 Nonscheduled Chartered Passenger Air Transportafion
481212 Nonscheduled Chartered Freight Air Transportafion
Entertainment
and Hospitality
481219
711120
Other Nonscheduled Air Transportafion
Dance Companies Entertainment
and Hospitality 711130 Musical Groups and Artists
711190 Other Performing Arts Companies
711219 Other Spectator Sports
711310 Promoters of Performing Arts, Sports, and Similar Events with Facilities
711320 Promoters of Performing Arts, Sports, and Similar Events without
Facilities
711410 Agents and Managers for Artists, Athletes, Entertainers, and Other 711410 Public Figures
713120 Amusement Arcades
713290 Other Gambling Industries
713910 Golf Courses and Country Clubs
713930 Mannas
713990 All Other Amusement and Recreafion Industries
722110 Full-Service Restaurants
722211 Limited-Service Restaurants
722212 Cafeterias, Grill Buffets, and Buffets
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722310 Food Service Contractors
722320 Caterers
722410 Drinking Places (Alcoholic Beverages)
334119 Other Computer Peripheral Equipment Mfg.
334220 Radio and Television Broadcasting and Wireless Communications 334220 Equipment Mfg.
334290 Other Communications Equipment Mfg.
334310 Audio and Video Equipment Mfg.
334412 Bare Printed Circuit Board Mfg.
334413 Semiconductor and Related Device Mfg.
334417 Electronic Connector M^.
334418 Printed Circuit Assembly (Electronic Assembly) Mfg.
334419 Other Electronic Component Mfg.
334515 Instrument Mfg. for Measuring and Testing Electricity and Electrical
Signals
334611 Software Reproducing
335999 All Other Miscellaneous Electrical Equipment and Component Mfg.
511210 Software Publishers
517210 Wireless Telecommunications Carriers (except Satellite)
517410 Satellite Telecommunications
517911 Telecommunications Resellers
541330 Engineering Services
Information and 541380 Testing Laboratories
Communication 541511 Custom Computer Programming Services
Technologies 541712 Research and Development in the Physical, Engineering, and Life
(ICT) 541712 Sciences (except Biotech)
323121 Tradebinding and Related Work
323122 Prepress Services
334111 Electronic Computer Mfg.
334112 Computer Storage Device Mfg.
334113 Computer Terminal Mfg.
334210 Telephone Apparatus Mfg.
334411 Electron Tube Mfg.
334510 Electromedical and Electrotherapeutic Apparatus Mfg.
334516 Analytical Laboratory Instrument M^.
334517 Irradiation Apparatus Mfg.
334518 Watch, Clock, and Part Mfg.
334519 Other Measuring and Controlling Device Mfg.
334612 Prerecorded Compact Disc (except Software), Tape, and Record
Reproducing
335311 Power, Distribution, and Specialty Transformer Mfg.
512110 Motion Picture and Video Production
512191 Teleproduction and Other Postproduction Services
517110 Wired Telecommunications Carriers
517919 All Other Telecommunications
325120 Industrial Gas Mfg.
333314 Optical Instrument and Lens Mfg.
Life Sciences 339112 Surgical and Medical Instrument Mfg. Life Sciences 339113 Surgical Appliance and Supplies Mfg.
339114 Dental Equipment and Supplies Mfg.
339115 Ophthalmic Goods Mfg.
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541380 Tesfing Laboratories
541712 Research and Development in the Physical, Engineering, and Life
Sciences (except Biotech)
811219 Other Electronic and Precision Equipment Repair and Maintenance
339116 Dental Laboratories
112990 All Other Animal Production
325413 In-Vitro Diagnosfic Substance Mfg.
325414 Biological Product (except Diagnosfic) Mfg.
541380 Testing Laboratories
541711 Research and Development in Biotechnology
541712 Research and Development in the Physical, Engineering, and Life
Sciences (except Biotech)
325411 Medicinal and Botanical Mfg.
325412 Pharmaceufical Preparation Mfg.
All Other All Others by NAICS
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PRIMARY RESEARCH
A telephone and web survey of 223 Carisbad employers was conducted as part of this
study.
Survey Design
Through an iterative process, BW Research worked closely with the City of Carisbad's
Economic Development Department to develop a survey instrument that met all the
research objectives ofthe study. In developing the survey instrument, BW Research
ufilized techniques to overcome known biases in survey research and minimize potential
sources of measurement error within the survey.
Sampling Method
A database of 2,076 Carlsbad firms was purchased from InfoUSA. That inifial database
was then supplemented with firms and contact informafion provided by the City of
Carisbad and finally reviewed and refined to ensure it incorporated Carisbad employers,
stratified by size and industry. The sampling plan was based on a stratified universe of
businesses based on size and industry, with an oversample of businesses within one of
the five industry clusters within the city.
Dafa Collection
Prior to beginning data collection, BW Research conducted interviewer training and also
pre-tested the sun/ey instrument to ensure that all words and quesfions were easily
understood by the respondents. Telephone interviews were generally conducted from
9:00am to 4:30pm Monday through Friday. The data collecfion period was December 5,
2012 through January 3, 2013.
A web version of the sun/ey was also developed and businesses with an email address
within the city were sent an online invitation. Carlsbad businesses that were called over
the telephone and indicated a preference to complete the survey online, were also sent
an online invitafion to the survey. Carlsbad employers in one of the five industry clusters
were also mailed a letter, making them aware ofthe survey and given an online URL to
complete the survey on the web, before being called.
A Note about Margin of Error and Analysis of Sub-Groups
The overall margin of error for the survey, at the 95 percent level of confidence, is
+/- 6.20 percent for questions answered by ali 223 respondents. It is important to note
that questions asked of smaller groups of respondents (such as questions that were only
asked to firms based off their previous responses) as well as results presented
separately for industry clusters will have a margin of error greater than +/- 6.20 percent,
with the exact margin of error dependent on the number of respondents in each sub-
group
RESEARCH
PARTNERSHIP B-5
^0
Business Survey Report
City of Carlsbad
APPENDIX C: SURVEY TOPLINES {n=223)
[24 employees or less]
Hello, my name is ___
name]?
[25 employees or more]
Hello, my name is
May I please speak to a manager or owner at [firm
, May I please speak to a manager or a decision maker
who is involved in strategic planning or human resources at [firm name]?
I am calling on behalf of BW Research, an independent research organization working on
behalf of the City of Carlsbad. [IF LETTER SENT] I'm following up on a letter sent from
Kathy Dodson, the Economic Development Manager for the City of Carlsbad asking you to
participate in a brief sun/ey.
The survey will take approximately 10 minutes of your time and will help the City of
Carisbad to better serve those businesses located within Carisbad.
(If needed): This sun/ey has been commissioned by the City of Carisbad, which is
committed to supporting the businesses in the City.
(If needed): The survey is being conducted by BW Research, an independent research
organization, and should take approximately ten minutes of your time.
(If needed): Your individual responses will not be published; only aggregate information
will be used in the reporting of the survey results.
PLEASE NOTE TRADITIONAL ROUNDING RULES APPLIED
NOT ALL PERCENTAGES WILL EQUAL EXACTLY 100%
bw' RESEARCH
PARTNERSHIP C-1
HI
Business Survey Report
City of Carisbad
SCREENER Are you involved or leading the strategic planning, hiring or location
A decisions at your firm 7
100% Yes
0% No
0% Not Sure
SCREENER How many locations does your company or organization have in the City
B of Carisbad? (IF YES) How many locafions?
Total Locations Mean Median
289 1.30 1.00
Breakdown:
86% 1 location
9% 2 locations
5% 3 or more locafions
bw] RESEARCH
PARTNERSHIP C-2
Business Survey Report
City of Carisbad
How many years have you had a business location in Carlsbad?
# of years Ql
[IF UNABLE TO DETERMINE EXACT NUMBER OF YEARS PICK INTERVAL
BELOW]
Ttie mean and median are calculated from the 213 respondents that provided a specific
number of years. Inten/als were provided forthe 10 respondents that were not able to
provide a specific number of years and thereby, the percent breakdown is among all 223
respondents.
Mean Median
13.78 10.00
Breakdown:
8% 2 years or less
23% More than 2 up to 5 years
23% More than 5 up to 10 years
24% More than 10 up to 20 years
22% More than 20 years
0.4% Don't know/ Refused
[bw] RESEARCH
PARTNERSHIP C-3
^3
Business Survey Report
City of Carisbad
What were the main reasons your company located in Carisbad? [CHECK
Q2 ALL THAT APPLY] (Mulfiple Responses Permitted - Percentages May Sum to
More than 100%)
35% Proximity to customers, collaborators, and vendors
34% Founders lived here
16% Quality of life in Carisbad
13% Spun-off another company that was already here/ bought exisfing company
6% Proximity to skilled workers/workforce
4% Cost of conducting business
12% Other (Specify) (no single category is over 2%)
12% Don't know/ Refused
Q3
I'd like to ask a few general questions about your employees at your Carisbad
location(s). If your firm has locations outside Carisbad, please do not include
Including all full-time and part-time employees, how many permanent and
temporary employees work at your Carisbad location(s)? (Do not accept 0 as
a response)
Total Emolovees Mean Median
5422 24.99 10.00
Breakdown:
30% 1 to 5 employees
21% 6 to 10 employees
26% 11 to 24 employees
10% 25 to 49 employees
5% 50 to 99 employees
5% 100 or more employees
3% Don't know/ Refused
[bw] RESEARCH
PARTNERSHIP C-4
Business Survey Report
City of Carisbad
If you currently have [TAKE Q3 #] full-time and part-time permanent and
temporary employees at your location(s), how many more or how may
fewer employees do you expect to have at your Carlsbad location(s) 12
months from now?
Q4
Breakdown:
35% More
3% Fewer
58% Same number of employees
4% Don't know/ Refused
Expected Employment in 12 months
(Calculated by only examining businesses with both current and projected data)
Current 12 months
n
Mean
Median
Total Employees
Change
210
22.84
10.00
4,796
210
23.81
10.50
5001
205
% Growth 4.3%
[If amount differs by 10% or more in either direction, ask: ]
Just to confirm, you currently have employees and you expect to have
(more/less) employees, for a total of employees 12 months from now.
[bw] RESEARCH
PARTNERSHIP C-5
45
Business Survey Report
City of Carisbad
Over the last three years, has your company grown, declined or stayed about
Q5 the same, In terms of employment at your Carlsbad location(s). If it has grown
or declined, by about how many people?
Breakdown:
24% Grown
52% Stayed the same
20% Declined
4% Don't know/ Refused
Growth in Employment over the last 3 years
(Calculated by only examining businesses with both current and past data)
3 vears aao Current
n 206 206
Mean 24.74 24.04
Median ''0 00 10.00
Total Employees ^097 4953
Change -144
% Growth -2.8%
Next, I would like to ask about business space and/or business locations.
Q6 In the next 12 to 24 months, do you expect to increase, maintain or
decrease your physical space in Carlsbad?
8% Increase our space in Carlsbad
85% Maintain our current space in Carisbad
3% Decrease our space in Carisbad
4% Don't know/ Refused
[IF Q6="lncrease our space in Carlsbad" ASK Q7 OTHERWISE SKIP]
bw' RESEARCH
PARTNERSHIP C-6
Business Survey Report
City of Carisbad
Do you expect to expand at your current location, look for a bigger
Q7 location to replace your current one, or look for an additional location?
llllililll^HJllllH
Percentages among the 18 respondents that said they expect to increase their physical
space in Carlsbad (Small sample size - caution generalizing the results)
39% Expand current location
33% Find an addifional location and keep your current location
28% Replace current location with a larger location
0% Not sure
0% Don't know/ Refused
[IF Q7=" Replace current location with a larger location" or "Find an additional location
and keep your current location" OR 3 ASK Q8 OTHERWISE SKIP]
In which ofthe following areas will you be looking for additional space?
Q8 [ALLOW MULTIPLE RESPONSES] (Multiple Responses Permitted -
Percentages May Sum to More than 100%) (n=11)
Percentages among the 11 respondents that expect to replace their cun-ent location with a
larger location or find an additional location and keep their current location (Small sample
size - caution generalizing the results)
73% Central Carlsbad, along or near Palomar Airport Road
36% Other locations within Carlsbad
9% Solana Beach
9% Palm Springs
9% Phoenix
9% Santa Ana
9% Don't know/ Refused
[IF Q6="Decrease our space in Carisbad" ASK Q9 OTHERWISE SKIP]
[bw] RESEARCH
PARTNERSHIP C-7
41
Business Survey Report
City of Carisbad
Q9 Do you expect to leave or close (any of) your Carlsbad location(s) in the
next 12 to 24 months? (n=7)
Percentages among the 7 respondents that expected to decrease their space in Carlsbad
(Small sample size - caution generalizing the results)
43% Yes
29% Possibly
29% No
0% Don't know/ Refused
[IF Q6="Decrease our space in Carisbad" ASK QIO OTHERWISE SKIP]
What are the primary reasons you expect to decrease your space in
QIO Carisbad? [CHECK ALL THAT APPLY] (Multiple Responses Permitted
Percentages May Sum to More than 100%) (n=7)
Percentages among the 7 respondents that expected to decrease their space in Carlsbad
(Small sample size - caution generalizing the results)
29% Business has declined
14% Customers have moved
14% Relocafion
14% More interested in having a space in Encinitas
14% Closing the business
14% Company has been sold
0% Don't know/ Refused
bw] RESEARCH
PARTNERSHIP C-8
Business Survey Report
City of Carisbad
Now, I would like to ask you about the general business climate in the City of
•lllii^^^MiSililliM
Q11 Overall how would you rate the City of Carisbad as a place to do business?
39% Excellent
48% Good
8% Fair
2% Poor
1% Very poor
3% Don't know/ Refused
In your opinion, what is the number one thing that the City of Carlsbad
Q^2 could do to improve the business climate in the City? (ALLOW UP TO
TWO RESPONSES) (Multiple Responses Permitted • Percentages May
Sum to More than 100%)
10% Nothing needs improvement
9% Simplify permits, fees and/or regulations (time, cost, etc.)
9% Improve, redevelop the Village
7% Offer more business incentives/programs
7% Fix the traffic problems
7% Improve the quality ofthe roads and other infrastructure
6% Allow more signage/advertisements
6% Expand parking
4% More public transportation
3% Preserve more open space
3% Build or renovate more commercial/industrial space
3% Improve beach access
3% Lower taxes
3% More business events (conventions, networking, etc.)
3% Improve schools
12% Other (Specify) (no single category over 2%)
25% Don't know/ Refused
bw] RESEARCH
PARTNERSHIP C-9
Business Survey Report
City of Carisbad
Overall, do you feel the business climate in Carisbad is getting better, getting
worse or staying about the same? 013
35% Getting better
6% Getting worse
52% Staying about the same
7% Don't know/ Refused
Next I would like to ask specifically about local government and the City of
Carisbad
Q14 Overall, how confident are you in the Carisbad city government to make
decisions that positively affect the local business climate?
25% Very confident
50% Somewhat confident
8% Somewhat unconfident
2% Very unconfident
15% Not Sure or Don't know/ Refused
bw' RESEARCH
PARTNERSHIP C-10
50
Business Survey Report
City of Carisbad
Please tell me how satisfied your company is with the following issues and
attributes regarding Carisbad's business climate.
RANDOMIZE
Very
satisfied
Somewhat
satisfied
Neither sat
nor dissat
Somewhat
dissat
Very
dissat DK/NA
A. Access to capital 17% 29% 22% 5% 3% 24%
B. Local roads and
transportation system 39% 40% 8% 10% 1% 2%
C. Quality of life 71% 23% 3% 0% 0.4% 2%
D. Organizations to
support economic
development and
entrepreneurship
19% 37% 20% 6% 3% 15%
E. Access to clients and
customers 37% 37% 15% 2% 0.4% 9%
F. Ability to recruit high
skill talent 25% 42% 15% 7% 1% 11%
G. Ability to find qualified
entry to mid-level
employees
27% 41% 12% 8% 2% 10%
H. Access to relevant
vendors and suppliers 39% 35% 14% 2% 0% 9%
1. Ability to network or
interact with other
high-level decision-
makers in Carisbad's
business community
22% 36% 20% 6% 1% 15%
J. Regulatory climate,
including zoning,
permitting, local
regulations and related
issues
19% 32% 19% 15% 4% 10%
bw] RESEARCH
PARTNERSHIP C-11
31
Business Survey Report
City of Carisbad
Q15 With DK/NA filtered out
RANDOMIZE
Very
satisfied
Somewhat
satisfied
Neither
sat
nor dissat
Somewhat
dissat
Very
dissat
A. Access to capital (n=169) 23% 38% 28% 7% 4%
B. Local roads and
transportation system
(n=219)
40% 41% 8% 11% 1%
C. Quality of life (n=218) 72% 24% 3% 0% 0.5%
D. Organizations to support
economic development and
entrepreneurship (n=189)
22% 43% 24% 7% 4%
E. Access to clients and
customers (n=203) 40% 41% 16% 2% 0.5%
F. Ability to recruit high skill
talent (n=198) 28% 47% 17% 8% 1%
G. Ability to find qualified entry
to mid-level Employees
(n=200)
30% 46% 14% 9% 2%
H. Access to relevant vendors
and suppliers (n=202) 44% 38% 16% 2% 0%
1. Ability to network or interact
with other high-level
decision-makers in 26% 42% 23% 7% 2%
Carisbad's business
community (n=190)
J, Regulatory climate, including
zoning, permitfing, local
regulations and related
issues (n=200)
22% 36% 22% 17% 5%
bw] RESEARCH
PARTNERSHIP C-12
Business Survey Report
City of Carisbad
[For each "Somewhat Dissatisfied" or 'Very Dissatisfied" response in Q15,
Qf 6 ask:] What is your specific issue of concern in this area, and how would you
suggest that it be addressed?
Verbatim responses to be provided
Thinking about the people you hire in Carlsbad, how much difficulty does your
Q17 company have finding qualified professional and technically skilled applicants
who meet the organization's hiring standards?
44% Little to no difficulty
39% Some difficulty
5% Great difficulty
11 % Don't know/ Refused
Would a university or institution of higher education located in the City of
Carisbad be valuable to your firm? Q18
32% Yes, very valuable
34% Yes, somewhat valuable
29% No, not valuable
5% Don't know/ Refused
[ASK Q19 IF Q18="Yes, very valuable" or "Yes. somewhat valuable"
OTHERWISE SKIP]
bw] RESEARCH
PARTNERSHIP C-13
S3
Business Survey Report
City of Carisbad
For a university or institute of higher education located in the City of
Carlsbad, what programs or areas of research and education would you like
Qf 9 to see the potential university focus on? (ALLOW UP TO TWO
RESPONSES) (Multiple Responses Permitted - Percentages May Sum to
More than 100%) (n=147)
Percentages among the 147 respondents that said a university of institution of higher
education located in the City of Carlsbad would be "Very" or "Somewhat" valuable
30% MBA, business/markefing or entrepreneurship
10% Renewable energy (solar, biofuel, etc.)
9% ICT or computer science
8% Electrical engineering/ software engineering
8% Medical/ health sciences
7% Engineering (other) (no single category over 2%)
6% Natural Resources
5% Bio-engineering
5% Biotechnology
5% Civil engineering/ architecture
4% Cloud computing
4% Hospitality
19% Other (Specify) (no single category over 2%)
13% Don't know/ Refused
Q20 Have you or someone at your firm received economic development
information or updates from the City of Carisbad?
37% Yes
44% No
19% Don't know/ Refused
[IF Q20="Yes" ASK Q21 OTHERWISE SKIP]
bw" RESEARCH
PARTNERSHIP C-14
Business Survey Report
City of Carlsbad
Q2f
Overall, how satisfied or dissatisfied was your firm with the information you
have received from the City of Carisbad on their economic development
services and those programs related to supporting Carlsbad's businesses?
(n=83)
Percentages among the 83 respondents that said they have received economic
development infomiation or updates from the City of Carlsbad
36% Very safisfied
51% Somewhat satisfied
4% Somewhat dissatisfied
0% Very dissatisfied
10% Don't know/ Refused
[IF Q20="No" ASK Q22 OTHERWISE SKIP]
Would you like to receive information on economic development and
business sen/ices from the City of Cadsbad? (n=98) Q22
Percentages among the 98 respondents that said they have not received economic
development infomiation or updates from the City of Carlsbad
56% Yes
16% Possibly
27% No
1 % Don't know/ Refused
[IF Q21="Somewhat satisfied," "Somewhat dissatisfied," or "Very dissatisfied" ASK Q23
OTHERWISE SKIP]
bw' RESEARCH
PARTNERSHIP C-15
Business Survey Report
City of Carisbad
Q23 is there any additionai information you would like to receive from the City of
Cadsbad? (n=45)
Percentages among the 45 respondents that said they were "Somewhat satisfied,"
"Somewhat dissatisfied," or "Very dissatisfied" with information they have received from the
City of Carlsbad on economic development and related sen/ices
78% No information needed
13% Yes (Specify) Verbatim responses to be provided
9% Not sure at this time
Q24
Before we finish I would like to ask the key industries, technologies and
customers that drive your business.
Next, I would like to ask if your firm is primarily focused on serving other
businesses, primarily focused on serving consumers directly or a combination
of both businesses and consumers.
25% Primarily on businesses
39% Primarily on consumers direcfiy
35% A combination of both businesses and consumers
1% Don't know
bw' RESEARCH
PARTNERSHIP C-16
Business Survey Report
City of Carisbad
Are your customers primarily local - within Carisbad & North County, regional
• within Southern California, Statewide - within California, national - within the
Q25 Country, or international - outside the Country? [ALLOW MULTIPLE
RESPONSES] (Multiple Responses Permitted - Percentages May Sum to
More than 100%)
54% Local - Carisbad & North County
35% Regional - within Southern California
23% Statewide - within California
34% National - within the United States
21% International - outside the United States
0% Don't know
Are your suppliers and vendors primarily local - within Carisbad & North
County, regional - within Southern California, Statewide - within California,
Q26 national - within the Country, or international - outside the Country? [ALLOW
MULTIPLE RESPONSES] (Multiple Responses Permitted - Percentages May
Sum to More than 100%)
32% Local - Carisbad & North County
39% Regional - within Southern California
16% Statewide - within California
38% National - within the United States
13% International - outside the United States
3% Do not have suppliers or vendors
1% Don't know
bw] RESEARCH
PARTNERSHIP C-17
51
Business Survey Report
City of Carisbad
Q27 Lastly, is there anything you would like to see the City of Carisbad do to
support the businesses that we have not discussed today?
Verbatim responses to be provided
Jo wrap things up, I just have some background
questions for statistical purposes only.
QA I n what year were you born? 19_ _
9% 18 to 29 years old
17% 30 to 39 years old
19% 40 to 49 years old
40% 50 to 64 years old
9% 65 years or older
5% Refused
bw" RESEARCH
PARTNERSHIP C-18
3^
Business Survey Report
City of Carisbad
QS What city do you reside in?
39% Carisbad
14% Oceanside
8% Encinitas
8% Vista
7% San Marcos
7% San Diego
4% Escondido
3% Other city in Orange County, Riverside County, or Los Angeles County
3% Other city in San Diego County
2% Rancho Santa Fe
1% Fallbrook
1% Cardiff
1 % Solana Beach
1% Valley Center
1 % Temecula
0.4% Out of state
1% Don't know/Refused
Lastly, do we have your permission to provide your contact information
QC to the City of Carisbad, so that they may follow up on any issues or
requests brought up during this survey?
66% Yes
33% No
1 % Don't know/ Refused
I would like to verify your contact information.
bw' RESEARCH
PARTNERSHIP C-19
Business Survey Report
City of Carisbad HP**
QL Gender was asked of respondents in the web version of the survey and
recorded by voice in the phone version.
60% Male
40% Female
Survey Type
65% Phone
35% Web
INFORMATION FROM BUSINESS SAMPLE (NOT ASKED)
Industrv Cluster
14% Entertainment & Hospitality
11% ICT
7% Life Sciences
5% Cleantech
4% Action Sports
59% Other
bw' RESEARCH
PARTNERSHIP C-20
City of Carlsbad
City of Carlsbad
Business Research Findings
2013
Research Objectives
Research was focused on:
Establishing a baseline assessment of
Carlsbad’s business community
Quantifying the business climate and other
indicators of perceived economic vitality
Evaluating the role of industry clusters in
Carlsbad
Understanding perceived value of having a
university or institute of higher learning in
Carlsbad
Methodology
1. Developed an economic profile of the City and a
database of Carlsbad businesses (industry and size)
2. Reviewed research on relevant industry clusters for
Carlsbad, including SANDAG’s recent Traded Industry
Clusters Report
3. Telephone and Internet survey of 223 businesses
Fielded: December 5, 2012 – January 3, 2013
Universe: 2,076 Firms with at Least 5 Employees in
the City of Carlsbad
Oversample of employers from Carlsbad’s five industry
clusters
Margin of error +/- 6.20% (95% confidence level) 3
Carlsbad as a Place to do Business
4
A majority of Carlsbad businesses surveyed indicated the
city was an excellent (39%) or good (48%) place to do
business
2.7%
0.9%
1.8%
8.1%
47.5%
39.0%
0%20%40%60%80%
DK/NA
Very poor
Poor
Fair
Good
Excellent
Business Climate
5
Just over one third (35%) of responding businesses
indicated the business climate in Carlsbad was getting better
and only six percent indicated it was getting worse
Getting
better
35.0%
Staying
about the
same
52.0%
Getting
worse
6.3%
DK/NA
6.7%
Improving the Business Climate (Top 5)
6
Nearly 10 percent of Carlsbad businesses said that
simplifying permits, fees and/or regulations (9%), or
improving , redeveloping the Village (9%) was the number
one thing the City could do to improve the business climate
6.7%
6.7%
7.2%
8.5%
9.0%
0%20%40%
Fix the traffic problems
Improve the quality of roads, transit and
related infrastructure
Offer more business programs
Improve, redevelop the Village
Simplify permits, fees and/or regulations
(time, cost, etc.)
Very
confident
24.7%
Somewhat
confident
50.2%
Somewhat
unconfident
8.1%
Very
unconfident
2.2%
Not sure or
DK/NA
14.8%
Confidence in City Government
7
Seventy-five percent of Carlsbad business respondents
indicated they were either very (25%) or somewhat (50%)
confident in city government to make decisions to positively
affect the local business climate
Business Climate Satisfaction (Top 5)
8
30.0%
39.7%
40.4%
43.6%
72.5%
46.0%
40.6%
40.9%
38.1%
23.9%
13.5%
16.3%
15.8%
0%20%40%60%80%100%
Ability to find qualified entry to mid-level
employees
Local roads and transportation system
Access to clients and customers
Access to relevant vendors and suppliers
Quality of life
Very satisfied Somewhat satisfied Neither Somewhat dissatisfied Very dissatisfied
Analysis Excludes Responses of Don’t Know/ No Answer
Business Climate Satisfaction (Bottom 5)
9
21.5%
23.1%
22.2%
25.8%
27.8%
35.5%
37.9%
43.4%
42.1%
47.0%
21.5%
28.4%
23.8%
23.2%
16.7%
17.0%
0%20%40%60%80%100%
Regulatory climate, including zoning,
permitting, local regulations, and
related issues
Access to capital
Organizations to support economic
development and entrepreneurship
Ability to network or interact with other
high-level decision-makers in
Carlsbad's business community
Ability to recruit high skill talent
Very satisfied Somewhat satisfied Neither Somewhat dissatisfied Very dissatisfied
Analysis Excludes Responses of Don’t Know/ No Answer
Industry Clusters
1.Action Sports Manufacturing
2.Life Sciences
3.Cleantech
4.Entertainment & Hospitality
5.Information & Communications
Technologies (ICT) 10
Action Sports Manufacturing
Includes firms that are engaged in
the design and production of golf
club, surfboard, diving, and other
recreational goods as well as the
apparel and accessories that is
closely tied to these products
This cluster has approximately
47 firms and 2,773 jobs in
Carlsbad.
The average annual earnings
per worker in this cluster is
approximately $91,020.
11
Life Sciences
Combines two of SANDAG’s industry
clusters, Biomedical Devices and
Products which includes the R & D and
production of medical devices and
Biotechnology and Pharmaceuticals
which includes R & D related to
biological technologies as well as the
manufacturing of medicinal and
diagnostic substances
This cluster has approximately 131
firms and 7,033 jobs in Carlsbad
The average annual earnings per
worker in this cluster is
approximately $128,722 12
Cleantech
Includes firms that are engaged in
renewable energy, energy
efficiency, and energy storage
This cluster has approximately
90 firms and 4,882 jobs in
Carlsbad
The average annual earnings
per worker in this cluster is
approximately $112,672
13
Information & Communications Technologies
Information & Communications
Technologies (ICT) includes
telecommunications, computer and
electronics, and software industries
This cluster has approximately
254 firms and 9,203 jobs in
Carlsbad
The average annual earnings
per worker in this cluster is
approximately $114,561
14
Entertainment and Hospitality
Includes hotels, transportation
services, and restaurants, as well as
entertainment attractions such as
theme parks (LEGOLAND), golf
courses, and country clubs
This cluster has approximately 153
firms and 11,941 jobs in Carlsbad
The average annual earnings per
worker in this cluster is
approximately $25,567
15
Reasons for Carlsbad Location
16
Proximity to customers, collaborators, and vendors was the
number one reason for locating in Carlsbad (35%)
12.1%
11.7%
3.6%
5.8%
13.5%
16.1%
33.6%
35.0%
0%20%40%60%
DK/NA
Other
Cost of conducting business
Proximity to skilled workers/workforce
Spun-off another company that was already
here/ bought existing company
Quality of life in Carlsbad
Founders lived here
Proximity to customers, collaborators, and
vendors
More
34.5%
Same
number of
employees
57.8%
Fewer
3.1%
DK/NA
4.5%
Hiring Expectations Over Next 12 Months
17
Thirty-five percent of businesses expect to have more
workers at their Carlsbad location(s) 12 months from now,
resulting in an anticipated growth rate of 4.3 percent
Grown
24.2%
Stayed the
same
52.5%
Declined
19.7%
DK/NA
3.6%
Overall Growth Rate = -2.8%
Change in Employment Last 3 years
18
The proportion of businesses that experienced negative growth
over the last three years (20%) is greater than the percentage
of firms that expect to have fewer employees 12 months from
now (3%)
Yes
37.2% No
43.9%
DK/NA
18.8%
Economic Development Information
19
9.6%
0.0%
3.6%
50.6%
36.1%
0%20%40%60%80%
DK/NA
Very dissatisfied
Somewhat dissatisfied
Somewhat satisfied
Very satisfied
Among the thirty-seven percent of businesses that said they
received economic development information from the City,
87 percent were satisfied with the information they received
(36% “very satisfied”)
Number of Years Located in Carlsbad
20
Nearly 46 percent of businesses surveyed have been
located in Carlsbad for 10 years or more
More than 20
years
22.0%
More than 10 up
to 20 years
23.8%
More than 5 up to
10 years
22.9% More than 2 up to
5 years
22.9%
2 years or less
8.1%
DK/NA
0.4% Mean = 13.78 years
Median = 10.00 years
Physical Space Expectations
21
The majority of businesses (85%) expect to maintain their
current space in Carlsbad over the next 12 to 24 months
Increase
8.1%
Maintain our
current space
in Carlsbad
85.2%
Decrease
3.1%
DK/NA
3.6%
Business Size
22
Compared to California as a whole (18%), Carlsbad (20%)
has a relatively large portion of businesses that are either
medium-sized (10 to 24 employees) or large (25+ employees)
1 to 4
employees
59.8%
5 to 9
employees
19.9%
10 to 24
employees
11.8%
25 or more
employees
8.4%
Higher Education in Carlsbad
23
Sixty-six percent of businesses surveyed said that a
university or an institution of higher education located in
Carlsbad would be valuable to their firm
Very
valuable
31.8%
Somewhat
valuable
34.1% Not valuable
28.7%
DK/NA
5.4%
Conclusions
24
1.Communication with economic
development improves the perception
of the local business climate
2. Two in every three Carlsbad businesses
would value a university or institute of
higher learning within the city
3.Traded or export-oriented industry
clusters play a considerable role in
Carlsbad’s economy and have a
substantial impact on overall employment
and wealth creation.
City of Carlsbad
City of Carlsbad
Business Research Findings
2013
Higher Education in Carlsbad
26
Programs or areas of research that businesses would like to
see at a potential university of institution of higher education:
•MBA, business/marketing or entrepreneurship (30%)
•Renewable energy – solar, biofuel, etc. (10%)
•ICT or computer science (9%)
•Electrical or software engineering (8%)
•Medical and/or health sciences (8%)
•Engineering (other 7% - no single category over 2%)