LA County Businesses Decry Unfriendly Business Climate

Annual survey suggests increasingly pessimistic business outlook
By: BizFed
 
LOS ANGELES - May 30, 2013 - PRLog -- LOS ANGELES – With no clear end in sight to the region’s unfriendly business climate, LA County business owners and executives are less optimistic about the economy this year, but they are working to adapt to long-term stagnation in employment and growth, according to a new survey by the Los Angeles County Business Federation (BizFed).

The latest BizFed annual BizPOLL survey of members finds that only 52% believe business conditions this year will be better than last – down nine points from last year’s poll.  When it comes to hiring new workers, the survey found that just 30% plan to grow their workforce this year – down from 34% who felt that way the same time last year. While, 48% said they plan to invest in durable goods this year, compared to 33% who said that last year, 92% say that it’s too difficult to access capital to make those investments.

The results come as - for the third year in a row - taxes and fees and government regulation top the BizFed survey as members’ highest-priority concerns.  Open-ended comments on the survey included numerous concerns about the slow and confusing bureaucracy businesses – including small “mom and pop” businesses – must navigate to receive permits, pay fees, and ensure compliance with seemingly ever-changing local rules and regulations.

“Businesses in Los Angeles are treading water, and instead of throwing them a lifeline, government officials have continued to weigh them down with taxes, fees, and regulations,” said David Fleming, BizFed Founding Chair.  “Businesses are telling us that very few plan to hire, and very few plan to fire.  Instead, they’re trying to make capital investments to help sustain their revenue without adding new payroll costs.  Add to that their anxiety over how health care reform is going to hit them, and this is no recipe for recovery.”

“Businesses are adapting to long-term stagnation,” said LaDonna DiCamillo, BizFed Chair and chair-elect of the Long Beach Area Chamber of Commerce.  “They’re telling us that they’re trying to squeeze new investments out of existing revenue because it’s still too difficult for them to access new capital.”

Notable among the results is the general perception that LA County is unfriendly to business.  Sixty percent of survey respondents identified the City of Los Angeles as the “least business friendly city” in the region.  However, El Segundo, Long Beach, Burbank, and Glendale were most frequently cited among the "most business friendly."  Despite 76% of businesses surveyed being anchored in LA County, 80% say they have no plans to expand or grow in the county, and 9% actually plan to leave the county.  High taxes and excessive regulations were the most common reasons cited for businesses either not expanding in or planning to leave LA County.

“This survey should be a wakeup call,” said Tracy Rafter, BizFed CEO. “Sacramento and Washington have been touting a series of positive economic indicators, from revenue increases to unemployment moving in the right direction.  But the reality on the ground for thousands of businesses throughout Southern California is very different.”

The BizFed Survey Found:

Top 5 Priority Issues:


No. 1:   Taxes and Fees

No. 2:   Government Regulations/Compliance

No. 3:   Health Care

No. 4:   Education

No. 5:   Legislative Gridlock (State and/or Federal)

Employment and growth are stagnant

30% plan to hire this year, compared to 34% last year

16% plan layoffs this year, the same as 16% last year

48% plan to invest in durable goods this year, compared to 33% last year

But 92% perceive access to capital as still a challenge

Businesses that call LA County "home" are treading water for yet another year

76% are anchored to the region

80% have no plans to expand in LA County

9% are planning to leave LA County

2011, 2012, 2013: “taxes & fees” ranked 1 and “regulations” ranked 2 among concerns:

“Length of time to get permits”

“Bloated bureaucracy/red tape”

“High taxes”

"Health Care" identified as a Top 5 issue, driven by concern/uncertainty over health care reform

BizFed believes this year’s survey results are a clarion call to electeds at all levels to work cooperatively, across party lines, to advance reforms, coupled with responsible fiscal policies and programs that recognize business as a critical cornerstone for the state’s economic recovery.

“After the May election, we have an important opportunity to change course,” said Fleming. “Business is so used to being hammered by taxes, fees, and regulations that it has become the new normal, resulting in stagnation.  It doesn’t have to be this way.”

INTERVIEWS AVAILABLE  

BizFed member organizations across LA County are available for interviews; see attached list of BizFed members. In addition, these BizFed members are available immediately for interviews:

·      David Fleming, BizFed Founding Chair, david.fleming@lw.com, (213) 891-7902

·      Joe Ahn, BizFed Polling Committee Co-Chair, South Bay Association of Chambers Commerce, Joseph.ahn@ngc.com, (310) 812-5312

·      Lisa Bailey, BizFed Polling Committee Co-Chair, Irwindale Chamber of Commerce, lisa@irwindalechamber.org, (626) 960-6606

·      Don St. Clair, BizFed Chair-Elect, Woodbury University, Don.StClair@woodbury.edu, (818) 767-0888

·      Hugo Merida, BizFed International Trade Committee Co-Chair, Los Angeles Metropolitan Hispanic Chamber of Commerce, hmerida@chamberla.org

·      Will Wright, BizFed Land Use Committee Co-Chair, American Institute of Architects – Los Angeles, will@aialosangeles.org, (213) 639-0764

·      Jose Cornejo, BizFed Member, California Public Strategies, jose@capublicstrategies.com, (818) 486-3322

·      John Cruikshank, BizFed Member Harbor Association of Industry & Commerce, jcruikshank@jmc-2.com, (310) 241-6550

·      Tracy Rafter, BizFed CEO, trafter@bizfed.org, (818) 429-0462

Methodology: Online survey conducted March 8 through April 30, 2013 and distributed throughout BizFed membership and, by extension, their member networks. Survey respondents totaled 363, representing a 95% participation rate among BizFed’s 108 member organizations at the time. Respondents represent a cross-section of BizFed members and reflect a balanced representation of LA County businesses based on employment size, industry, and location. Survey developed by Employers Group’s Research Department, the BizFed Polling/Research Committee, and the BizFed Board of Directors. Employers Group is a California-based association of employers.
End
Source:BizFed
Email:***@bizfed.org
Posted By:***@bizfed.org Email Verified
Tags:Business, Economics, Public Policy
Industry:Business, Government
Location:Los Angeles - California - United States
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
BizFed Los Angeles County PRs
Trending News
Most Viewed
Top Daily News



Like PRLog?
9K2K1K
Click to Share