Pasadena Chamber of Commerce

Business Survey Results Show Concern, Optimism

In October, the Chamber and the City of Pasadena sent a survey to our local business community. We asked about present conditions, expectations for the upcoming year and long-term profit projections. In partnership with USC’s Marshall School of Business, we sought to determine business operator’s opinions about present conditions, and hoped to gain an understanding of the needs and challenges facing local businesses, and discover what resources could help enable a thriving business environment.

Respondents represented healthcare, food services, advertising, research, architecture and engineering, real estate, design, non-profits, law and other businesses. Half had been in business for at least ten years. Half also employ five or fewer workers. Nearly 90% said Pasadena is their first choice of location, and half of business operators live in the city. More than half cited proximity to customers, local environment and freeway access as reasons for locating their business in Pasadena. Most are pleased with the availability of skilled workers, access to transportation, utilities and levels of service available in Pasadena, though parking concerns were raised.

Between conceiving the survey and sending it out, our economy collapsed. As a result, concerns about the state of our economy dominated the responses to our survey. There were some surprising results, however. While most companies anticipate stagnant profits for 2008-09, few planned layoffs and many anticipated adding employees and expanding in the near future. Most were more confident about local business conditions than the state and regional economies. Healthcare providers anticipate maintaining profitability despite the economic downturn. Creative and design businesses are seeing additional business opportunities and anticipate expanding to meet increased market demands. Architects and engineers are feeling the impacts of the collapsing housing markets and reduced demand for their services. Retailers, on the other hand, are very concerned about current economic conditions as consumer confidence and spending deteriorate. They also rate parking and traffic conditions as a challenge. Similarly, restaurant operators are seeing reduced profits in a challenging economy. They also expressed concerns about parking and traffic, which can impact customers’ ability to access their businesses. They also cite high rents, utility and labor costs and taxes as having significant impacts on their profitability.

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Paul