Business Retention and Expansion Strategy 2023
Approximately 212 business operators completed the online survey, which launched in June and closed in October 2023. With an estimated 1,000 businesses in Prince Edward County, and approximately 902 licensed short-term accommodations, this response rate derives an aggregate credibility interval range of 5.49% to 5.87%, an important indicator of a robust and statistically reliable data set. 19 businesses across all sectors participated in the "Business Walk," which took place in October 2024.
Key findings include:
Affordability is a major barrier to expansion, across sectors. Land prices are high, rents are high, staffing costs are high, goods and materials costs are high. While almost half of businesses expect to remain the same, only 37% of businesses surveyed reported plans to expand. 14% are expected to close, sell, downsize or relocate. Results show economic development efforts will likely need to focus on retention in the near term.
Staffing remains a persistent and limiting challenge for most businesses, whether farms, restaurants, salons or shops. Many who feel ready for expansion have had to pause due to a lack of appropriate, available or reliable staffing. Limited public transportation is a related challenge, with 15% of respondents saying this is a disadvantage to operating in PEC. The municipality is aiming to improve this by utilizing provincial funding to recruit a Transit Coordinator to explore new route configurations, regional connections and micro funding for innovative solutions appropriate to our rural context.
Available space. While there are some commercial vacancies, several businesses noted that they've been unable to find a suitable and affordable spot for expansion or relocation. Only 18% of all respondents say there is adequate commercial or industrial space. Those numbers drop to 15% of professional services respondents, 10% of retail respondents and only 4.2% of manufacturing respondents, which includes wineries, breweries, cideries and distilleries. Significant ownership churn at the height of the real estate boom in 2021 means commercial rents and land costs remain stubbornly high. The lack of “employment lands,” or space zoned for a range of activities, including industrial, commercial, institutional, and office use, was also noted. In 2024, Planning and Economic Development staff plan to collaborate to explore and identify potential locations for new employment lands.
Attitude. There is a perception that the municipality is not business friendly, with survey respondents noting a high level of frustration with ‘red tape.’ There is a perceived lack of support for businesses at the Council level, with only a third of all respondents saying they receive strong support from municipal Council. This drops to a quarter of all agriculture and professional services respondents, and to 14% for allied health respondents. Meanwhile, only 15% of all respondents rated development and/or building permit processes as "excellent" or "good" and less than a quarter said they were satisfied with service received from municipal Planning, Engineering, Zoning and Building Permits. RED funding will be used in 2024 to develop communication tools to help clarify Planning processes and better prepare operators for the costs and provincially-mandated timelines involved with rezoning, variances and other land use activities. The ongoing Zoning Bylaw Review also presents opportunities to streamline processes by updating zones to include ‘as of right’ permitted uses where appropriate. More discussion is needed within specific sectors to further explore pain points and challenges and devise suitable solutions.
Role Clarity. Visit The County and StayPEC were identified in 2022 as Destination Marketing & Management Organizations, each receiving a portion of Municipal Accommodation Tax revenues. However, their role and vision in promoting The County as a tourism destination is not well understood by operators. This may be a symptom of the transition, a call for greater communication and consultation or the result of the lag in promotional activities that occurred as Visit The County recruited staff and set up governance structures. Frustrations may also have been heightened by a decrease in visitor numbers in 2023. Staff can fine-tune and clarify agreements with each organization to encourage transparency and communication, and to ensure plans align with industry needs and the recommended Economic Action Plan.
Strong Partnerships. Less than 10% of respondents rated the County Workforce Partnership and Small Business Counselling as "excellent" or "good," which may be a result of a lack of awareness of these supports. Childcare was rated as excellent or good by a dismal 4.3% of respondents, a reflection of lack of access and long wait lists for licenced, local childcare. Settlement and newcomer services received the lowest results, with only 3.9% of respondents rating them as "excellent" or "good." For the most part, these services are based in Belleville and may be difficult for operators to access. While support between and amongst business owners was identified as positive, satisfaction levels with business improvement groups are relatively low. As the economy contracts, business owners will increasingly need to work together to ensure their voices are heard. Should it be permitted by the funder, RED funding will be used in 2024 to help strengthen business and community groups so they can be strong and equal partners in shaping a changing economy.
Logistics. Poor internet and telecommunications, waterworks constraints and limited public transit for commuters were also identified as barriers to running a business in PEC. Water and wastewater services were rated as "excellent" or "good" by 40% of respondents, but those figures drop dramatically in the agricultural sector (12%) and the manufacturing sector (19%.) Rogers is currently laying fiber optic cable throughout Prince Edward County, as part of a federal pledge to expand access, speed and reliability of broadband throughout rural and remote regions in Canada. Innovative infrastructure financing has been developed in The County to shore up the necessary funds to replace aging waterworks infrastructure and expand service. As noted above, a Transit Coordinator will focus on transit improvements.
Workforce. 43% of respondents said their staffing levels have remained the same compared to 2019. 26% said they had increased, while 8% said they had decreased. Too few applicants, applicants with little experience or training, and unmet salary expectations were cited as barriers to finding staff. To address workforce challenges, the Prince Edward Learning Centre, with funding from Thrive PEC, are developing a “Community Benefits Agreement” framework to encourage skill development and apprenticeship opportunities for tradespeople in new housing developments. An emphasis on shoring up trades and construction staff is strategic, as building houses may help create more and more affordable housing options for needed staff in other sectors. Only 7.2% of all respondents said they were satisfied with County Transit as a means of commuting for either themselves or their staff. Recruitment of a Transit Coordinator is currently under way. A microgranting program has been recommended to fund innovative solutions for rural commuter connections.
Future Plans. Fundamentally, a cultural change is needed within the municipality, including at the leadership level. A shift from reliance on regulation and enforcement to a place of partnership and incentivization should be encouraged. A spirit of welcome and helpfulness should be fostered, while appreciation and respect should be communicated. In 2024, a “Community Improvement Plan,” a strategic Planning tool of programs, grants and incentives, will be explored by Economic Development staff to create more opportunities to reduce costs, streamline processes and better support on-farm diversified uses and heritage preservation.
Staff are now undertaking work on an Action Plan focused on: creating a business-friendly municipal environment, development of a Community Improvement Plan focusing on agri-tourism and on-farm diversified uses; and economic diversification.
Download and read the full report from the "Documents" section on the right.
For questions or concerns, please contact Karen Palmer, Economic Development Officer, at kpalmer@pecounty.on.ca.
