Downtown Des Moines 2012 Executive Call
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1 Downtown Des Moines 2012 Executive Call Downtown Community Alliance Joe Sorenson, Executive Call Coordinator
2 Downtown Des Moines 2011 Executive Call Report
3 Executive Call Program Since 2000, the Executive Call Program seeks to determine Downtown Des Moines through its strengths, weakness, opportunities and threats. The program also evaluates Downtown s progress on an annual basis. To do so, the Downtown Community Alliance establishes connections with top-level executives and business owners. Each business is asked to schedule an interview with a Downtown Community Alliance staff member. The interview works as a confidential discussion regarding each business, its dynamics, the workforce, technology and the Downtown community and its services. The data is recorded through Synchronist, aggregated and reported through this report. The 2012 Executive Call included 84 Downtown Des Moines businesses. We would like to thank all the businesses that participated in this year s Executive Call Program. The information will be used to gain a better understanding of Downtown and enable educated decision-making. If your business would like to be a part of next year s Executive Call Program, please contact the Downtown Community Alliance at The Downtown Des Moines Executive Call Program is conducted through Synchronist Business Information System, combining CRTS & PRIME forms. For more information about the system or to view the actual forms used, please visit www. Syncrhonist.com. The program is sponsored by MidAmerican Energy.
4 Downtown Des Moines Downtown Des Moines is defined as zip code in the City of Des Moines. Downtown is geographically located in the central part of the state and Polk County, making it ideal for both the State Capitol and County Seat to be housed in Downtown Des Moines. Residential Population 8, % % % % Employees 80,863 Establishments 2,299 Downtown Des Moines 2011 Executive Call Report
5 Business Backgrounds Business Sectors Surveyed Service - Business Restaurants and Bars Retail Outlets Fiance Construction Entertainment Non-Profit Service - Consumer Cultural Accommodations Recreation Undetermined Other Retail - Non Store Health Care Grocery and Drug Businesses were targeted based upon facility location, participation history, and business sector. We target a variety of the business sectors in Downtown Des Moines to gather feedback from business leaders in many different types of organizations. 90% 69% In the last 18 months business leadership in the area has remained stable in the Downtown Community. Ninety percent of the surveyed businesses reported no change in ownership during that time period. Sixty-nine percent of business executives said that the owners of the business are active in day to day operations. Lending evidence to why Downtown has such an active group of business leaders.
6 Business Dynamics 33% of Downtown business s report doing significant amount of business statewide, and 19% are competing in the national market. An overwhelming majority of business executives, 69 percent, reported that sales were on an increasing trend, up from 64 percent from last year s report. While overall sales are increasing, the average value of an individual sale did not score as well. Only 30 percent of executives reported the value of a sale increasing. Even with that, most businesses reported that the average value of a sale remain stable Consistently business executives expressed that their customer retention was a standout strength that has helped sales in the last few years. Many claim that building a strong reputation has helped them weather these difficult economic times. While the local market remains important, 33 percent of surveyed businesses reported to be selling goods and services outside the State of Iowa. Total Sales Percentage of Businesses Increasing 69% Stable 26% Decreasing 0% No Answer 5% Avg. Value of a Percentage of Businesses Sale Increasing 30% Stable 69% Decreasing 0% No Answer 1% Facilities Plans For Facilities Percentages of Businesses Expand 12% Renovate 24% None 69% No Answer 3% When asked if businesses would be renovating or expanding in the next three years, many said their facilities were adequate at the moment. Some businesses had also just recently finished renovating or are recent tenants to their building. As you can see to the left, 35% of businesses have planned facility changes in the next three years. Downtown Des Moines 2011 Executive Call Report
7 Employers Perception Of Downtown Workforce Characteristics Workforce Overall, business executives are pleased with the quality of the work force in the Downtown community. Business sectors such as architecture, construction, and financial services report to have no problems with finding high quality employees. Quality Stability Availability Rating is on a scale from 1 to 7, 7 being high Employers in the retail market do express irregularity of being able to find and keep quality employees in the shops and restaurants around the area. 33% of business executives project that they will increase their work force in the near future in the Downtown Community. As the market continues to strengthen and the Greater Des Moines Area continues to grow, employers are finding more of a need to bring additional employees on staff. 33% of business executives reported that they will be hiring in the near future, and 54% said that their employment needs would remain stable. While not every business will be hiring, the importance of training current employees is a necessity to staying competitive in the market. Employers find the need to keep all their staff up to date in the latest trends in their field and technology. Forty percent of business executives claimed that they provide both on the job training, as well as compensate employees for outside-the-job training. A majority of businesses surveyed provide at least on-the-job training.
8 Technology Over 90% of business executives reported to have adequate enough technology infrastructure for continued growth. When asked about technology most Downtown businesses felt they were staying with the fast paced movement in modern technology. Fifty-four percent of executives ranked themselves above average in their investment in technology compared to others in their business sector. Some executives did note, especially in the Downtown Core area, that they were limited in the buildings they could operate in. They suggested that when buildings our being renovated, technology infrastructure be a high priority. Buzz On The Street Business executives had an opportunity to express what they thought should be a focus for Downtown, and what can be improved on. Walnut Street Revitalization Local businesses look forward to seeing the vision for Walnut Street become a reality. Many expressed this would be important to increase the vibrancy of the Core of Downtown. Completion of the Principal Riverwalk Executives are pleased how the esthetics of the Riverwalk has made a positive impact to the Downtown of Des Moines. They have also discussed the possibility of supporting a full service hotel in that area. Street Closures - While people generally enjoy the outdoor events hosted Downtown, street closures for these events are perceived as a negative to area businesses. Street level retailers often expressed that closures drive their base customers away. Different ways to communicate and control street closures was common feedback. Downtown Des Moines 2011 Executive Call Report
9 Downtown Des Moines Surveyed business executives took time to express both on what they saw as strengths for doing business Downtown, and weaknesses. Strengths Professional Network Executives realize that the Downtown business community has a high level of connectivity. The opportunity to establish a large network with other professionals is a positive for doing business Downtown. Some smaller businesses also mentioned that they receive a high level of support from the larger corporations in the area. Proximity Particular businesses locate Downtown because of proximity to the Capitol and court houses, legal professionals. On a broader scale, businesses feel that the proximity to business services such as; financial services, printing, marketing, and architecture provide an easement to doing business in Downtown Des Moines. Accessibility Downtown Des Moines central location makes it easy for businesses to be accessible to all parts of the Metro area, as well as the state. Accessibility of Downtown is also important to employers when recruiting potential workers from around the area. Weaknesses Parking - This issue remains a key concern for business leaders in varying sectors. The problem of parking lies in an external perspective and not as much in an internal perspective. Employers find adequate enough parking for their employees. Rather many businesses have difficulty bringing visitors Downtown because the perceived lack of parking and/or the high cost to park. This is particularly true for retail store owners. Vacancy Rate Executives expressed a concern about the perceived rate of vacancy of commercial property, particularly in the Core of Downtown. Some notable larger companies have moved offices, but business executives predict that small business will be the ones to backfill the empty office space. Consumer Services - While business services are plentiful in Downtown, consumer services/products are not viewed as plentiful. Business executive mentioned that adding a grocery store, movie theater, consumer goods outlet, and more retail would be a positive benefit to the area. They also noted that Walnut Street Revitalization could be a great opportunity to address this issue.
10 Community Services Police Protection 5.46 Fire Protection 6.46 Ambulance 6.42 Streetscape Maintenance 5.31 Local Streets 5.45 Highways 5.35 Traffic Control 5.29 Public Transportation 4.95 Airline Passenger Service 5.05 Health Care Services 6.09 Spousal Employment 6.12 Child Care 5.79 Community College/Tech College 6.24 Colleges and Universities 6.11 Housing 5.88 Schools(K-12) 5.56 Property Tax Assessment 3.97 Zoning Changes & Building Permits 4.50 Regulatory Enforcement Sign Regulations 4.98 Community Planning 5.66 Chamber of Commerce 5.46 Economic Development Organization 5.67 Visitors Bureau 5.94 State Workers Service 5.51 Business executives were asked to rank various community services based on quality from 1 to 7, with 4 being average and 7 being high. Overall, executives were generally pleased by the quality of community services in the Downtown Community. Fire/Paramedic services, Community Colleges/Universities, and Health Care Services consistently received very high marks. Area economic development organizations and community planning efforts also received above average ratings from participating business executives. Many executives did express confusion when trying to differentiate the roles of the Downtown Chamber of Commerce, Greater Des Moines Partnership, and the Downtown Community Alliance. Services that were lower in the group were Property Tax Assessment, Zoning Changes/Building Permits, and Public Transportation. Executives did note that the new DART facility and Southwest Airlines opening in Des Moines is a good improvement. They do urge that policy makers do reevaluate Iowa Commercial Property Tax Code in the next legislative session. Utility Services Water 5.79 Sewer 5.68 Solid Waste Removal 5.77 Natural Gas 5.78 Electric 5.70 Telecom 5.64 Cellular Service 5.41 Internet Access 5.44 Internet Speed 5.44 Generally, business executives were pleased with the level of quality of their utilities. While many executives do not have direct control over their utilities, they expressed that both property managers and utility providers were very helpful in solving issues they may have. A few businesses were still concerned with what community leaders planned to do to provide a better environment for business located between MLK Parkway and the River. Flooding is a continued concern for businesses in that area. Downtown Des Moines 2011 Executive Call Report
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12 Downtown Community Alliance 700 Locust Street, Suite 100 Des Moines, IA (p) (f) Glen Lyons President and CEO Research Conduction By: Joe Sorenson Pam Kulik Tim Leach Report Prepared By: Joe Sorenson Tim Leach Director of Economic Development Joe Sorenson 2012 Executive Call Coordinator Downtown Des Moines 2011 Executive Call Report
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