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Summary of Business Sector Survey


1. Background

1.1 The planning system has an important role and influence on business. It contributes greatly to creating an environment that is conducive for business performance and hence to the success of the nation's economy. The most identifiable role for the planning system is to ensure that there is a wide-ranging supply of sites and premises readily available so as not to hinder the development of the local economy. This is achieved through the Structure Plan and District-wide Local Plans.

1.2 The adopted Lancashire Structure Plan 1991-2006 sets the strategic policy framework by specifying the amount of land to be allocated for business and industrial uses in each district and also it establishes criteria which should be taken into account in identifying the location of sites. Local planning authorities are required to satisfy the strategic planning policy by allocating sufficient business and industrial land in Local Plans. The Joint Structure Plan authorities monitor the provision of land for business and industrial uses to ensure that there is sufficient land available to meet the Structure Plan Area's economic objectives.

2. Survey

2.1 As part of the Review of the Joint Lancashire Structure Plan research has been undertaken to assess the future land and building needs of businesses. The business community was consulted via a postal survey and the results will inform and guide future strategic planning policy relating to the provision of land for business and industrial uses.

2.2 The survey serves two purposes:
It provides local planning authorities and the business community with intelligence about the future intentions of firms;
It provides local planning authorities with information that can be used when preparing development plans to ensure that planning policy is closely aligned to the actual needs of business.

2.3 Survey questionnaires were distributed to a representative sample (based on geography and industrial structure) of 7,166 firms and 1,131 completed responses were returned, equating to an overall response rate of 16%.

2.4 The survey asked questions on current location, business activity, number of employees, type and size of premises and length of time at premises. Respondents were asked to classify a series of options relating to their current business premises, including suitability for business purpose, accessibility by road and by public transport, parking, general surroundings and location.

2.5 Survey respondents were asked to indicate if the business would remain at its current premises, cease operation or whether some form of 'relocation' was expected. Firms that expected to be involved in 'relocation' - either to other premises or by opening additional premises - were posed with a series of follow-on questions on why the business was likely to move, the preferred business location and options if the preference was not available. Respondents were also asked to comment on both new types of business location and also brownfield sites by classifying a series of options.

2.6 All respondents to the survey were asked to assess changing patterns of work and business (identified in the questionnaire as homeworking and e-commerce) on the firm. A follow-on question was aimed at gauging the likely impact of changing work and business patterns, specifically on floorspace and car parking requirements.

3. Summary of Survey Findings

Future Expectations

3.1 The survey has highlighted the intentions and attitudes of businesses indigenous to the Structure Plan Area. It has indicated that most firms expect to remain at their current premises, although a significant minority - 15% - of firms anticipate moving premises in the future. Table 1 details the future expectations of firms by industrial sector.

Table 1 Future Expectations (%)
Future expectation Industrial sector All firms
Production industries(1) Warehousing & distribution, Transport & communications Retail Hotels & catering, Leisure & recreation Finance & business services, Other services
             
Remain unchanged at current premises 54.4 56.0 78.4 78.7 71.8 69.1
Expand size of current premises 23.7 13.0 10.8 15.2 11.5 14.7
Reduce size of current premises 2.9 1.0 0.5 0.0 0.8 1.1
Cease operation 0.4 0.0 0.0 0.0 1.0 0.4
Open additional premises 5.4 6.0 2.7 1.1 4.1 3.8
Move to larger premises 7.5 17.0 5.0 2.2 6.4 6.6
Move to smaller premises 3.3 2.0 0.0 0.0 0.8 1.1
Move to similar size premises 2.5 5.0 2.7 2.8 3.6 3.2
             
Total 100.0 100.0 100.0 100.0 100.0 100.0
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport Equipment, Other manufacturing and Construction.

Changing Patterns of Work and Business

3.2 Most firms do not see changing patterns of work and business affecting their floorspace and parking requirements. The impact is perceived to be highest among Retailers and Finance, Business Services and Other Services firms. Table 2 details the attitudes of firms to changing patterns of work and business by industrial sector.

Table 2 Attitudes to Whether Changing Patterns of Work and Business Will Affect the Company (%)
Industrial sector Yes No Don't know Total
         
Production industries(1) 16.6 74.7 8.7 100.0
Warehousing & distribution, Transport & communications 24.0 61.0 15.0 100.0
Retail 26.6 53.6 19.8 100.0
Hotels & catering, Leisure & recreation 20.8 62.9 16.3 100.0
Finance & business services, Other services 29.2 57.2 13.6 100.0
         
All industries 24.2 61.5 14.3 100.0
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & Electronic, Transport equipment, Other manufacturing and Construction.

Potential Movers

3.3 Potential movers are, relative to the overall survey, likely to be medium-sized firms and involved in Production-based industries and Warehousing & Distribution and Transport & Communications. Table 3 details the characteristics of these potential movers.

Table 3 Characteristics of Potential Movers (%)
Industrial sector Number of employees Potential movers
1-10 11-24 25-49 50-199 200+ Not Stated
               
Production industries(1) 2.4 3.0 3.6 12.6 4.2 1.2 26.9
Warehousing & distribution, Transport & communications 5.4 3.6 1.8 5.4 1.8 0.0 18.0
Retail 6.6 1.2 1.2 3.6 1.2 0.0 13.8
Hotels & catering, Leisure & recreation 2.4 1.2 1.8 0.6 0.6 0.0 6.6
Finance & business services, Other services 13.8 7.2 4.2 6.6 2.4 0.6 34.7
               
All industries 30.5 16.2 12.6 28.7 10.2 1.8 100.0
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport equipment, Other manufacturing and Construction.

Reasons for Moving

3.4 Potential movers identified two main reasons for moving: 'business expansion' and the need for 'more suitable premises'. Table 4 details the reasons for moving by industrial sector.

Table 4 Reasons for Moving (%)
Reason for moving Industrial sector Potential movers
Production industries(1) Warehousing & distribution, Transport & communications Retail Hotels & catering, Leisure & recreation Finance & business services, Other services
             
Expansion in size of business 53.3 50.0 34.8 9.1 39.7 42.5
More suitable premises 17.8 40.0 47.8 54.5 34.5 34.1
Better access to customers 2.2 3.3 4.3 9.1 13.8 7.2
No choice 6.7 0.0 8.7 18.2 5.2 6.0
Better general surroundings 6.7 3.3 0.0 9.1 3.4 4.2
Reduction in size of business 8.9 3.3 0.0 0.0 0.0 3.0
Other 4.4 0.0 4.3 0.0 3.4 3.0
             
Total 100.0 100.0 100.0 100.0 100.0 100.0
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & Electronic, Transport equipment, Other manufacturing and Construction.

Attitudes to Current Premises

3.5 Overall, potential movers were not satisfied with the suitability of their current premises for its business purposes. Potential movers were less satisfied with the parking and general surroundings of their current premises. Overall, the location and accessibility by road of current premises were rated favourably by potential movers. Table 5 details the attitudes to current premises of potential movers.

Table 5 Attitudes of Current Premises (%)
Industrial sector Potential movers
Production industries(1) Warehousing & distribution, Transport & communications Retail Hotels & catering, Leisure & recreation Finance & business services, Other services
             
Suitability for business purpose -2.2 -16.7 +13.0 +18.2 -3.4 -1.8
Accessibility by road +20.0 +33.3 +21.7 +27.3 +44.8 +31.7
Accessibility by public transport -2.2 +3.3 -4.3 -18.2 +34.5 +10.2
Parking -4.4 -3.3 -39.1 +9.1 -13.8 -11.4
General surroundings -13.3 -20.0 -26.1 -18.2 -12.1 -16.2
Location +33.3 +23.3 0.0 +9.1 +13.8 +18.6
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport equipment, Other manufacturing and Construction.
(2) The overall attitude of potential movers to different aspects of their current premises, as measured by those answering "good" minus those answering "poor" as a percentage of potential movers.

Preferred General Locations

3.6 The overwhelming majority of potential movers intend to remain within their existing district. This suggests that the Structure Plan Area has certain advantages for local businesses - i.e. economic, financial, skills, good communication links with relatively easy access to the motorway network. Table 6 details the preferred general locations of potential movers.

Table 6 Potential Movers' Preferred General Location (%)
Current location Move within existing district Move to adjoining district Move to non-adjoining district Move outside of Plan Area Destination not specified Potential movers
             
Blackburn with Darwen 94 6 100
Blackpool 79 4 17 100
Burnley 75 8 17 100
Chorley 100 100
Fylde 100 100
Hyndburn 25 25 25 25 100
Lancaster 81 19 100
Pendle 67 11 11 11 100
Preston 70 4 26 100
Ribble Valley 60 40 100
Rossendale 29 14 57 100
South Ribble 57 21 21 100
West Lancashire 60 20 20 100
Wyre 64 14 21 100
             
Total 72 5 2 1 20 100

Preferred Sites and Premises

3.7 When considering different types of sites and premises, Production Industry firms had a highest preference for a new unit in a greenfield location, closely followed by a new redeveloped unit. All Warehousing & Distribution and Transport & Communications firms and Retailers would most prefer a new redeveloped unit. Hotels & Catering and Leisure & Recreation firms had a highest preference for converted premises outside town centres. Finance, Business Services and Other Services had the highest preferences for town centre locations. Table 7 details attitudes of potential movers to different types of sites and premises by industrial sector.

Table 7 Attitude to Alternative Types of Sites and Premises (%)
Type of premises Industrial sector Potential movers
Production industries(1) Warehousing & distribution, Transport & communications Retail Hotels & catering, Leisure & recreation Finance & usiness services, Other services
             
New unit in greenfield location +80.0 +60.0 +39.1 +9.1 -6.9 +35.9
New unit in town centre -44.4 0.0 +30.4 +27.3 +74.1 +19.8
New unit on redeveloped site +77.8 +90.0 +60.9 +36.4 +34.5 +59.9
Converted premises in town centres -48.9 0.0 +13.0 +36.4 +63.8 +13.2
Converted premises outside town centres +62.2 +46.7 +21.7 +63.6 +22.4 +40.1
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport equipment, Other manufacturing and Construction.
(2) The overall attitude of potential movers to different types of premises, as measured by those answering "would consider"/"may consider" minus those answering "would not consider" as a percentage of potential movers.

Intentions If Preferred Types of Sites and Premises Are Not Available

3.8 Most respondents indicated the firm would remain at its existing premises if the preferred type of premises was not available. However, a significant minority - 17.4% - stated that the firm would leave town. Table 8 details the intentions of potential movers if the preferred types of premises were not available.

Table 8 Intentions If Preferred Types of Sites and Premises Are Not Available (%)
Industrial sector Stay at current premises Leave town Cease operation Not stated Potential movers
           
Production industries(1) 77.8 20.0 0.0 2.2 100.0
Warehousing & distribution, Transport & communications 70.0 23.3 3.3 3.3 100.0
Retail 78.3 17.4 4.3 0.0 100.0
Hotels & catering, Leisure & recreation 90.9 9.1 0.0 0.0 100.0
Finance & business services, Other services 81.0 13.8 1.7 3.4 100.0
           
All industries 78.4 17.4 1.8 2.4 100.0
Note (1) Production industries include Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport equipment, Other manufacturing and Construction.

Attitudes to Brownfield Incentives

3.9 The availability of financial incentives was the most persuasive factor that would encourage firms to relocate to a brownfield site. This was reflected across all industrial sectors. Better site access was rated favourably by all industrial sectors as a brownfield incentive, particularly by Production Industry and Warehousing & Distribution and Transport & Communications firms. General environmental improvements was also rated favourably as a brownfield incentive, although less so by Retailers and Finance, Business Services and Other Services firms. Site promotion was generally rated less favourably, except by Hotels & Catering and Leisure & Recreation firms. Restrictions to greenfield development was also rated less important as a brownfield incentive, particularly by Finance, Business Services and Other Services firms. Table 9 details the attitudes of potential movers to brownfield incentives by industrial sector.

Table 9 Attitude to Brownfield Incentives (%)
Brownfield incentive Industrial sector Potential movers
Production industries(1) Warehousing & distribution, Transport & communications Retail Hotels & catering, Leisure & recreation Finance & business services, Other services
             
Availability of financial incentives +88.9 +70.0 +47.8 +63.6 +43.1 +62.3
Site promotion +11.1 +16.7 +30.4 +45.5 +1.7 +13.8
General environmental improvements +53.3 +53.3 +17.4 +45.5 +31.0 +40.1
Better site access +68.9 +60.0 +39.1 +45.5 +34.5 +49.7
Restrictions to greenfield development +35.6 +20.0 +8.7 +27.3 -6.9 +13.8
Note (1) Production industries includes Energy & water supply, Minerals & chemicals, Metals & engineering, Electrical & electronic, Transport equipment, Other manufacturing and Construction.
(2) The overall attitude of potential movers to different types of brownfield incentive, as measured by those answering "agree" minus those answering "disagree" as a percentage of potential movers.

Assistance for Business and Industry

If your firm is likely to move premises in the future and you would like further information and assistance on business relocation, please feel free to contact your local Council's Economic Development section that will be able to provide free and confidential information about available sites and premises and related business matters.