Photo (left to right): Madison Brewing Company, Bennington Pizza House and Bringing You Vermont in downtown Bennington, Vermont (photo by Lorianna Weathers)
Vermont Business Magazine The purpose of the State of the Commerce Survey distributed on July 15th 2019 by the Bennington Regional Chamber of Commerce to its membership was to hear from local businesses about how they were doing in the current economy, their needs and trends small businesses see emerging.
“This yearly survey gives us a snapshot of the general mood as it relates to the regional economy,” reports Matt Harrington, executive director of the chamber. “Many participants are small business owners who drive this economy forward. The purpose of this survey is to highlight the data and facts around southwestern economy. This survey always reminds me of a Jim Collins quote, author of Good To Great: We have to deal with the brutal facts and yet still have unwavering faith we will succeed in the end. This survey makes us look at where we are as a community, deal with some brutal small business and economic facts, while always making sure that we have unwavering faith that Southwestern Vermont will succeed in the long run if we work at it.”
Demographics
Sixty one percent of respondents identified as Bennington businesses, 19% from Manchester, 5% from North Bennington, 5% from Arlington, 5% from Dorset, 5% from Sunderland, and under 3% in areas like Danby, Londonderry, Pawlet, Peru, Pownal, Rupert, Rutland, Sandgate, Shaftsbury, Weston, Winhall, and Woodford. Other geographic responses came from New York and Massachusetts where the chamber also has membership.
“Although small in percentage, it was encouraging this year over last year that we see more representation from each of the communities this chamber influences including many of the hamlet communities of Peru, Rupert, Sandgate and others.” Harrington remarked.
Harrington continued specifically about the survey process, “This survey has two approaches. We have our macro data, which looks at how members filled out the each question collectively. This is great trending data for us to look at the overall feeling of our business membership. Equally, we have comment data. We can find great insight and ideas in this data too.”
State of the Commerce 2019 results:
- What type of customer does your business most rely on: 88% of those responding rely on business to consumer (B2C), while other 18% rely on business to business (B2B)
- What type of geographic customer does your business most rely on (they could pick all that applied):
- 84% indicated that they relied on local customers
- 53% indicated that they relied on customers in neighboring states
- 48% indicated that they relied on customers in other Vermont towns
- 33% indicated that they relied on customers throughout the Northeast
- 25% indicated that they relied on customers throughout the nation
- 12% indicated that they relied on global customers
- With a special note that businesses are being impacted by the relationship between the US and Canada
Current Business Climate
- On a letter grade scale of A to F, how do you feel your business or organization is doing in terms of current financial health:
- 70% rated their current financial health as A or B (great to good financial health) in 2019, as compared 63% in 2018
- 27% rated current financial health as C (having ups and downs), as compared to 24% in 2018
- 3% reported that they are in trouble or a D letter grade, as compared to 8% in 2018
- Last year 2 respondents noted that closure was imminent and 0 this year did.
- What is impacting your business success most directly:
- #1 Workforce issues (hiring, staffing, housing, childcare) – 40%
- #2 General business climate in the area – 37%
- #3 Demographic challenges in the region – 33%
- #4 Locating customers – 23%
- #5 Thin margins that impact profitability – 22%
- Do you feel that your business or organization is doing financially better than it was 3 years ago in 2016:
- 64% said ‘yes’ as compared to the 2018 survey where 63% said ‘yes.’
- Some relevant comments include:
- “In 2019 with the help of the chamber and others we changed our advertising focus and have seen positive results”
- “Internet, word of mouth, positive reviews have been responsible for increased business”
- “A rise in AirBnB seems to be taking a toll on our business”
- Do you feel that in general The Shires of Vermont (Southwestern Vermont) is a good place to have a business/organization:
- 84% indicated that it’s a good place to have a business as compared to 81% in 2018
- Some relevant comments include:
- Theme: Not enough qualified labor
- Theme: The business cannot find local customers because of the economic base
- Theme: excitement about new development projects
- “Amazing beautiful landscape”
- “Walkable daily life”
- “Access to State and Local Officials”
- “Business is hard because its rural”
- “State taxes, regulations and insurances in combination with expensive, limited workforce makes business challenging. Vermont seems to be business unfriendly.”
- What resources or entities do you use to support your business:
- 75% of respondents indicated the use of the Chamber to support their business.
- Other top resources include
- Local town government (32%)
- Better Bennington Corporation (27%)
- Other councils, committees and organizations (25%)
- In terms of marketing, where do you put most of your effort/finances:
- Respondents are using a mixture of marketing tools to communicate their business value including:
- #1 Social media at 22% in 2019 (31% in 2018)
- #2 Referrals/word of mouth/walk ins at 16% (19% in 2018)
- #3 Digital marketing (which was new this year) and print marketing at 14%
- When you are needing financial support for your business, where do you turn first:
- 42% indicate a local bank or credit union
- 12% indicate grants
- 8% family and friends
- 8% private investors
- Does your business do any online business?
- 52% indicated no, 48% indicated yes
- This is compared to our 2018 survey with 59% indicating yes and 41% indicating no
Future Forecast
- In the next three years, do you feel that in general Southwestern Vermont will be a better or worse place to have a business/organization:
- 81% in 2019 anticipate it will be better as compared to 79% in 2018’s survey.
- Similar to 2018, respondents often cited the Bennington downtown redevelopment of the Putnam Block as crucial to the future.
- Those that expressed concern about the next 3 years cite:
- The loss of Southern Vermont College
- Nationwide recession
- Lack of employees
- Lack of disposable income
- High property taxes
- Increased health care
- Not attracting young families
- Chronic substance abuse
- Technological illiteracy
- Dependence on State economic development
- Decrease in “mom and pop” businesses.
- What are your top 3 challenges as a business or organization:
- 50% of respondents identified Finding qualified employees as their #1 challenge as compared to 48% in 2018
- 38% of respondents identified Marketing/Awareness as their #2 challenge as compared to 46% in 2018 indicating that businesses may becoming more aware of the need for good marketing.
- 35% of respondents identified Healthcare costs as their #3 challenge as compared to 30% in 2018
- Taxes continue to be high at 31%, policy and legislation at 28%
- What additional services do you think would help your business or organization:
- #1 Better destination marketing of the area and region
- #2 Improved cellular service
- #3 Improved internet and Wi-Fi capability
- #4 Improved transportation options
- #5 More training opportunities
“One of the final questions we asked on the survey was ‘over the course of the next year, what are you most looking forward to,’” added Harrington. “The comments are clearly around improvement projects like parks downtown, The Putnam Project was huge, recreation center expansion, Manchester Depot Street, Arlington Area Renewal Project, dog parks, Ninja Bike Path, Prospect Mountain, new festivals, SVC property future, and the River Walk. Running a small business can be hard and it's reflected in the results and sometimes rural economies can be unforgiving. I do believe, however, that there is a growing excitement around new projects, expansions and collaborations happening across the county!”
Source: Bennington Regional Chamber of Commerce 8.28.2019