City releases business retention survey: 80% of respondents would locate in Staunton again; workforce shortages top concern

Staunton’s economic development staff told City Council May 22 that a recent business retention survey of 44 local firms shows strong place attachment but persistent workforce and awareness gaps that could limit growth.

The survey findings matter because they give the city targeted evidence about employer needs — workforce skills, communication and awareness of incentives — which staff said they plan to use to shape a strategic plan and proposed changes to the local enterprise zone.

Jessica Blythe, assistant director of economic development, said the survey ran from mid‑February to mid‑April and reached 44 respondents across sectors. Key findings: 80 percent of respondents said they would choose to locate in Staunton again; 79 percent expect steady or increased sales in the coming year; 70 percent report struggles finding qualified workers. Blythe said 66 percent of responding firms were small businesses and 43 percent of respondents are located in the Downtown Beverly Street corridor.

Survey detail that staff highlighted included sector and hiring data: 34 percent of respondents were in offices or professional services, 27 percent in retail, 18 percent in manufacturing and 11 percent in hospitality and food service. On employment outlook, 32 percent plan to increase staffing in the next year, 64 percent expect to maintain current staffing and 4 percent expect to reduce staff.

On hiring challenges, the survey’s average difficulty score was 6.6 on a 10‑point scale; 54 percent rated difficulty 7 or higher. Respondents cited poor attendance and reliability (32 percent), limited technical skills (30 percent), discipline/work ethic (27 percent) and inability to adapt/learn (20 percent). Drug and alcohol issues were cited by 11 percent. Blythe said employers most commonly requested basic customer‑service and communication skills (33 percent), reliability and punctuality (24 percent) and basic technical/computer skills (19 percent).

Blythe also reported on awareness and use of the city’s enterprise zone incentives: 57 percent of respondents said they were familiar with the enterprise zone, but only 9 percent had used incentives; 84 percent expressed interest in learning more. Staff said since February 2016 only two of eight local incentives have been utilized and recommended amending incentives with the Economic Development Authority (EDA) to increase participation.

Public‑service ratings from businesses were included in the survey: fire protection 4.3/5, EMS 4.2, police 3.9, parks and recreation 3.9, while solid‑waste disposal rated 2.7, sewage disposal 2.9 and the local airport 2.4. Respondents cited perceived parking difficulties (32 percent) and higher costs/taxes (27 percent) as barriers.

Blythe said next steps include continued stakeholder engagement, drafting enterprise‑zone amendments for EDA consideration, creating a department strategic plan, improving interagency communication and launching a web hub to centralize resources for business owners. She emphasized follow‑up and accountability: “Actionable” use of the data is a key priority, she said.

No formal city action was taken at the meeting; staff asked council and partners to continue coordinated outreach so future surveys and programs can be aligned.