5.0. 6.0. 7.0. 8.0. EDSR 09-13-1999

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ITEM 7 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY II MEMORANDUM TO: Economic Development Authority FROM: Marc Nevinski, Assistant Director of Economic Development DATE: September 13, 1999 SUBJECT: Business Retention & Expansion Survey Issue The business retention and expansion survey conducted this summer has been completed and a final report of the survey is attached to this memo. Staff will summarize the report and answer questions at the EDA meeting. Overview In June of this year staff began the process of interviewing Elk River's industrial business owners and mangers to learn about their experiences in this strong economy with a tight labor market. Additionally, input into Elk River's business development policies and each company's future business plans was sought. Some of the more interesting facts of the survey are summarized below. • Twenty six of approximately thirty businesses were interviewed over a three month period. • Average hourly wage paid by Elk River industrial firms: $11.54 • Average number of employees at Elk River industrial firms: 40 • Primary Elk River asset: Proximity to metro • Overall, Elk River's industrial businesses are in a slow and steady growth mode, with about one-third planning to expand in the next five years. • Nearly all have been affected in some way by the tight labor market,but several have found innovative ways of mitigating their problems. • Unskilled workers are the most difficult group to recruit and train. • Business owners were generally in favor of increased industrial development but encouraged the city to foster growth among its existing firms. Attachments 1999 Business Retention and Expansion Report • 13065 Orono Parkway • P. O.Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment