Appendix VBusiness Interview Results

One hundred and four businesses located in Hancock, Penobscot, Piscataquis, and Waldo counties were asked a series of questions to better understand their perception of opportunities and perceived barriers within their industry and the region where they do business. The results of these interviews are provided below (note that all interviewees did not respond to all questions).

I. Organizational and Interviewee Background/General

When was the company founded?

Before 19008%

1900-19509%

1950-198027%1980-2010

42%

2010-Present14%

Companies Founded by Era

Why did you start your company? Why here? Why Maine?

Companies

Advantageous Location 23

Founder lived locally 19

Spinoff from other companies 10

Family Business 6

Outside Assistance 2

Suitable Workforce 1

© 2016 Eastern Maine Development Corporation.  All Rights Reserved

About how many people work for your company?

0 to 10 Workers24%

11 to 20 Workers24%

21 to 20 Workers9%

31 to 50 Workers11%

51 to 100 Workers15%

101 to 300 Workers7%

300+ Workers9%

Employees Per Company

What does your organization do?

Companies % of Total

Agriculture/Food Industry 14 19

Boat-Building 5 7

Bioscience/Healthcare 11 15

Construction 4 6

Forestry/Wood Products 6 8

Hospitality/Tourism 17 24

Manufacturing 4 6

Transportation/Logistics 11 15

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II. Locational Aspects and Regional Assets

From a business standpoint, what is advantageous about our region?

Companies % of Total

Proximity to Higher Education 2 3

Scenic Beauty/Location 34 48

Cost of Doing Business Here 4 6

The Maine Lifestyle 8 11

Emerging Growth in Maine 7 10

High-Quality Workforce 11 16

Regulatory Climate 4 6

From a business standpoint, what is disadvantageous about our region?

Companies % of Total

Energy Costs 11 14

Deficient Digital Infrastructure 4 5

Remote Location 18 22

Harmful Regulatory Climate 9 11

Low Population of Customers & Workers 23 28

Poor Roads and Transportation Infrastructure 13 16

Lack of Collaboration between Businesses 3 4

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What two things would you like to change regarding the business climate?

Streamline Regulation and Lower TaxesIncrease Critical Mass of Employees/Customers

Year-Round TourismImprove Attitude towards Business

Improve Access to Cheap CapitalLower Energy CostsIncrease Federal AidHigh-Speed Internet

The WeatherAffordable HousingBroader Marketing

Rail

0 5 10 15 20 25 30

What should we change about our business climate?

What opportunities exist for economic development in the region?

Urban/Downtown RevitalizationEliminate Regulations

BiotechnologyMarket the State

East/West HighwayPublic/Private Partnership to Assist Start-Ups

Education/Workforce DevelopmentManufacturing

Service IndustryTourism

Wood CompositesTransportationInfrastructure

Emerging/Computer Technology

0 1 2 3 4 5 6

Emerging Opportunities for Economic Development in our Region

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III. Value Chain: Markets, Competitors, and Suppliers

What is your growth strategy and how do you think it compares to the industry? Does this reflect the growth potential of the primary industries you operate in?

Diversification—6 mentions

Budgeting for Growth—1 mention

Networking—3 mentions

Collaboration—1 mention

Quality/Identify Consumer Demand—18 mentions

Marketing—11 mentions

Innovation—1 mention

None—10 mentions

Diversification12% Budgeting for Growth

2%

Networking6%

Collaboration2%

Quality/Iden-tify Consumer

Demand35%

Marketing22%

Innovation2%

None20%

Growth Strategies

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Where is your primary customer located?

Location of Customers # Responses % of TotalMaine 40 62%Tourism/Global 13 20%U.S., Outside Maine & New England 8 12%New England, Outside Maine 3 5%Federal Government 1 1%Canada 0 0

What challenges arise because of your location?

Unsatis

factor

y Lab

or Pool

Poor T

ranspo

ration I

nfrast

ructure

Weathe

r and

Related

Costs

Small

Mark

et Siz

e

Energy

costs

Less Dev

elope

d0

4

8

12

16

Location-Related Challenges

6

How do your suppliers deliver their goods?

Truck80%

Mail13%

Boat3%

Air3%

Rail1%

How do you transport your goods to market?

7

# CompaniesTruck 57Mail 9Boat 2Air 2Rail 1

Not Applicable50%

Trucks37%

Boat6%

Air3%

Rail1%

Mail1%

Electronically1%

How do you transport your goods to market?

IV. Labor Market and Workforce

Where do you find your employees?

8

Advertising38%

Word-of-Mouth28%

Colleges/Job Fairs14%

Referrals8%

Career Centers and Employment Agencies

6%

Family3%

Other Companies2% Internships

1%

Where do you find your employees?

What is the biggest challenge your firm faces related to workers?

9

Poor W

ork Ethic

Benefi

ts/Com

pensa

tion

Trainin

g/Technic

al Sk

ills Gap

Qualifi

cation

/Experi

ence

High Turn

over

Isolat

ion

Aging W

orkfor

ce

Welfare

Frau

d

Employee

Health

02468

10121416

Workforce-related Challenges

Where are your workers trained? What training, education, and employment requirements exist for your workers?

On the Job—53 companies

We only hire experience workers—7 companies

Colleges/Universities—6 companies

None—4 companies

Vocational Schools—3 companies

Off-Site Programs—1 company

10

On the Job72%

Vocational Schools4%

College8%

None5%

Prior Job Experience9%

Off-Site Programs1%

Where do your workers train?

Do you have partnerships with educational institutions or workforce development programs that train your workers? If so, what organizations or institutions?

No—28 companies

Yes—22 Companies

Entities mentioned: ADT in New Hampshire, EMTC, Husson, UMaine, EMDC Career Center,

Skill Path with Fred Meyer, Coastal Counties Workforce, HCTC, Adult Ed, Job Corps, Beal

College, Pennsylvania Medical School, EMMC, UNE, UConn, University of Arizona, the Maine

Restaurant Association, Coca-Cola, IGA

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Yes44%

No56%

Do you have partnerships with educational institutions or workforce development

programs?

V. Innovative Activities

How important is research and development to your firm’s success?

Very Important—27 companies

Important—19 companies

Somewhat Important—10 companies

Not Important—17 Companies

12

Very Impor-tant37%

Important26%

Somewhat Important14%

Not Impor-tant23%

How important is research and devel-opment to your firm’s success?

How important are connections and networks through industry groups (trade associations), universities, or other organizations?

Although not displayed, the data indicate that the business owners and entrepreneurs

surveyed almost unanimously view these entities as vital partners in the continuation of their

businesses. Going forward, it would be wise to bring these players to the table and leverage

their support into action on both the R&D side of business and fostering collaborative among

firms.

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What resources/assets do you feel would be potentially beneficial to your R&D activities, whether located in the region or outside?

External Financial Support—12 mentions

Entrepreneurship Advisory Infrastructure—7 mentions

Colleges/Education—4 mentions

Networking Opportunities—4 mentions

Unified Marketing—2 mentions

Digital Infrastructure—2 mentions

A boat-building school—1 mention

Property Management Systems—1 mention

East/West Highway—1 mention

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Job Banks—1 mention

Employee Care—1 mention

Shipping port in Bucksport—1 mention

New Technology—1 mention

Quality Truck Drivers—1 mention

Externa

l Fina

ncial

Suppo

rt

Entrep

reneu

rship

Adviso

ry Team

Colleg

es/Edu

cation

Network

ing O

pport

unitie

s

Unified

Mark

eting

Digital

Infra

struc

ture

A boat-

build

ing sc

hool

Propert

y Man

agem

ent S

ystem

s

East/W

est H

ighway

Job B

anks

Employe

e Care

Shippin

g port

in B

ucksp

ort

New Tech

nolog

y

Quality

Truck D

rivers

02468

101214

What resources/assets would benefit your R&D activities?

VI. Networks and Linkages

What partners in your industry and supporting institutions (trade groups, etc.) have you engaged or worked with in the past 12 months?

EMDC, Pine Tree Development Zone, State and Regional Chambers of Commerce, Regional

Tourism Offices, Maine Arts, Maine Association of Nonprofits, Downeast Nonprofits,

Downtown Ellsworth, the Maine Wine Guild, Maine Woods Consortium, Maine Woods

Discovery, Youth Outdoor Network, North Forest Canoe Trail, rafting association, local

snowmobile clubs, Maine state, Katahdin Woods and Water, Maine Winter Sports, MMTA,

MBTA, DNS, International Association of Venue Managers, Maine Market Association,

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Innkeepers Association of Maine, Husson College, Maine Visitors Bureau, the National

Business Aviation Association, Air Craft Owners and Pilots Association, MTI, Maine

Transportation Association, Northeast Logging Association, Banair, the University of Maine,

informal networking, Downtown Business Partnership, City of Bangor’s Arts and

Beautification Committee, Greater Bangor CVB, BRLI, the University of Maine Innovation

Center, the Climate Institute, St. Germain, Truck Loaders Association, ATA, Maine Built

Boats, National Fisheries Institute, EMCC, the National Conference for Caterers, WHCA,

Rotary Club, North Country Associates, Maine Wood Products Association, Maine Forest

Products Council, the University of Pennsylvania, the Maine Health Information Network,

NAWLA, NELMA, AALAS, Scientific Exchange, PCEDC, Foxcroft Academy, Maine State

Florist and Grower’s Association, American Institute for Floral Designers, ACO, PCHC, St.

Joseph’s Hospital, AmCor, MACSp

VII. Post Interview Comments and/or Observations

Is there anything pertaining to this project that you would like to add that we did not cover?

“Laws in the state such as with service animals. They have to let almost any animal stay in the hotel if the person says they are a service animal. There should be a license for it. She has talked to a lobbyist.”

“Business is not all about money for them. They try to do the right thing but find very difficult and doesn't make sense amount of money they have to spend for compliance, regulation, code enforcement, etc; This also slows the building process. Expected as a business to provide a lot but not appreciated and the cost of doing business is so high. He is still proud of what they have accomplished. His employees are like an extended family.”

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“A lot of people in the region are afraid of their piece of the pie getting smaller. They don't support other businesses and don't seem to realize that the better off each business is will improve the entire area and all businesses. They don't see the big picture. She is constantly trying to promote the state of Maine all over the country. She promotes other activities in Bar Harbor and when she has gone to other businesses in Bar Harbor with her brochure or free tickets she has been told by business owners that they will not promote her business. She thinks they do not understand that the more friendly all of the businesses and people are that are in tourism, the better off all businesses will be. She is all about upgrading the tourist experience and giving them an excellent experience. She calls it the second happiest place on earth as they can't compete with Disney.”

“Your letter seemed doom and gloom and had insular thinking.  Maybe you could talk to areas that have rebounded and rebranded themselves out of state. Travel to other parts of the country (Rochester, NY) and see how those areas have dealt with these problems and how they have reinvented themselves.”

“Connect business with similar interest and pooling resources.”

“Data is data so companies that can wade through would be helpful.”

“More woods related industry.”

“Got to find a balance between social programs and helping businesses. Where to get cheap energy? Need larger customer base. Taxes and electricity are too high for businesses. Over taxing of businesses. Stop putting it all on the shoulders of business. Welfare and Social Security needs to be reduced. Tough working environment for businesses in the state of Maine.”

“Need east west highway; need to help people who are laid off get back to work.”

“Coming from Bucksport, she feels that the mills won't reopen and that we need new industries.”

“Tourism season has shifted where June is not a good month but September and October are much better months. However, this leads to challenges with hiring and schools go back in August/September. There is a tremendous need to bring in foreign workers.”

“The logging industry needs help to stay viable. We need to attract young people to go into logging.”

“This is an interesting business and it's challenging to be one of the first doing it. It's not going to be widespread fast. Starting this business would be challenging anywhere but it would have been easier to start in a less expensive area.”

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“Broadband and Internet...can’t get it at home need to come to town to do business I live 4 miles from my work.”

“Young people are leaving Maine. This makes it hard to hire and hard to innovate as older folks are not as interested in innovation. We need more businesses and jobs in the region so young people won't leave. The cost of living here is so high and the jobs and what people can make in the area is much less than the cost of living.”

“Convince them to get along in Augusta and at Federal level. There are so many mandates that businesses have to respond to. There is nothing positive coming out of Augusta. Legislature has no idea how to run a business or what it is like to run a business.”

“Having run two businesses in Dover-Foxcroft, the town double taxes you and they over estimate commercial property.”

“They are now trying to accommodate drivers now which is something they did not do before. The East Coast is also expensive. There are a lot of tolls, the energy costs are high, diesel fuel is more expensive, and there is a lot of plowing. Pottle's also lost a lot of money when Great Northern Paper went bankrupt. Verso closed but they were still able to pay them unlike Great Northern. Most of their drivers are older which can cause higher medical bills. Insurance companies are now measuring the driver's necks and testing for sleep apnea.”

“Maine should find companies looking to start up in the U.S. Advertise what Maine has to offer and approach companies that have light weight (logistics).”

Are there any other people, firms, or organizations that you can think of that would be a good resource to speak with related to this project?

The Ellsworth American, Tom Sobell, David Vale, Daigle Oil, Pike, Dead River, RH

Foster, The Collins Center for the Arts, Waterfront Concerts, Treeline Truck Service,

Nautel, Puritan.

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