Business survey results
Introduction
As noted previously, a total of 100 businesses responded to the survey. As such, the percentages quoted in this section can be taken also as the total number of businesses. Data in this chapter is unweighted.
Awareness of the New Line
The businesses were asked whether they were aware of the scheduled opening of Reston Station before receiving notification of this survey. Over two thirds (68%) of the respondents indicated that they were aware compared to 32% who said that they were not.
Just under half of the respondents (46%) noted that Reston would be the closest station on the East Coast Main Line to their business. Of the 47% who indicated that one of the other stations would continue to be closest, 46% indicated that Berwick-upon-Tweed would continue to be their closest station, with only one respondent noting that Dunbar Station would be their closest. A further 7% of respondents were unsure which station on the East Coast Main Line would be closest to their business.
Business Location
The majority of respondents, 78%, noted that their business had been operating at their current location for more than 10 years. Only 5% of businesses noted that they had been in the area less than 2 years.
The 21 respondents who indicated that they had been in their current location 10 years or less were asked to select a statement to describe their organisation’s situation with respect to its current location. Nine respondents indicated that they had set up a new business at the location indicated and three respondents indicated that this location was opened up as part of a business expansion. The other nine respondents indicated that their business had relocated from elsewhere, with five respondents relocating from elsewhere in the Scottish Borders.
The same 21 respondents were asked whether the announcement regarding the opening of the Reston station had been a factor in their decision to begin operating in the area. Most respondents (90%, n=19) stated ‘No, this was not a factor in locating the business here’, with the other 10% (n=2) stating ‘Yes, this was a fairly minor factor in locating the business here’.
Advantages/Disadvantages to operating in the area
All of the businesses were presented with a series of potential advantages/disadvantages for operating in the area. They were asked to indicate whether they considered their current location offers them a competitive advantage, a competitive disadvantage or neither, relative to their competition. The results of this are shown in Figure 20.
As shown, the element that scored highest in terms of being an advantage in the area was ‘Pleasant Area to Work In’, with 90% of respondents indicating that this was an advantage. ‘Good Road Links to the Site’ and ‘Easy to Park/Deliver’ were also indicated to be advantageous by businesses, with 73% and 77% selecting advantage respectively.
For several of the elements shown, the largest proportion of respondents selected neither advantage nor disadvantage. This included ‘Low Rent’, ‘Lack of Competition in the Local Area’, ‘Proximity to Customer Markets’, ‘Wide Labour Catchment’ and ‘Receive State Incentives/Assistance’.
Being close to suppliers was a disadvantage to operating in the area for 30% of respondents, however, 34% deemed this to be an advantage. Around a quarter (26%), noted that ‘Good Public Transport Links to the Site’ was a disadvantage, and 19% noted that the ‘Wide Labour Market’ was a disadvantage.
Respondents were then asked what the main advantage and disadvantage was of operating in the area. In total, 100 open-ended comments were submitted to this question. These responses have been thematically grouped and the following were identified at the main advantages of operating in the area:
- High quality of life in the area. Nice, affordable place to live with a good work/life balance (31 comments)
- Good accessibility to other towns which increases the customer and supplier base (24 comments)
- Few competitors (17 comments)
- Operating and existing in a small, local community leading to a good reputation (10 comments)
Some of the other advantages mentioned were operating across a large geographical area; new, state-of-the-art sites; and increasing local population being good for local business.
The main disadvantages of operating in the area were also grouped and the following main disadvantages were identified:
- Poor transport links, including a lack of public transport and poor quality of roads (22 comments)
- Limited business opportunities due to rural location (21 comments)
- Difficult to recruit staff / attract and retain people in the area (12 comments)
The other disadvantages mentioned included lack of available equipment; poor digital connections; high fuel costs; fewer people shopping locally; and low population numbers. A further 11 respondents noted that they could not think of any disadvantages.
Respondents were asked whether they had any plans to move from, expand or contract their current site. The majority, (90%), indicated that they had no plans and would be staying the same as at present. Just 6% of respondents noted that they planned to expand operations at their sites, and a further 3% indicated that they planned to relocate. These three respondents were asked where they planned to relocate to. One noted that they were relocating to a bigger premise in the same area, one noted that they were relocating elsewhere in the Scottish Borders, and the final respondent noted that they did not know where they would be relocating to yet.
Employees
Respondents were asked how many people their business currently employed at their present location, broken down into full-time, part-time, temporary/seasonal and in total. Figure 21 presents the breakdown of employees among the survey respondents. As shown, over half of the businesses (57%) indicated that they employed between 1 and 5 full-time employees, while 41% employed between 1 and 5 part-time employees. Around three quarters (73%) indicated that they did not employ temporary/seasonal workers. Only one organisation indicated that they employed over 100 people full-time.
The total number of employees recorded from all respondents, taken from the indicated total number of employees per respondent, was 1,250 and the average number of employees per business was 13.
Respondents were then asked to indicate what the main mode of travel to work was for their employees. As shown in Figure 22, 53% of the respondents indicated that over 75% of their employees travelled to work by car. Five percent of respondents indicated that some of their employees travelled by bus and only one percent of respondents indicated that some of their employees travelled by rail.
Respondents were then asked whether their staff travel in the course of work (e.g., to meetings or to make deliveries), and if so, where their staff travelled to and how often. Overall, 43% of businesses indicated that yes, their staff travel in the course of work, and Figure 23 details the proportions travelling to each of the locations asked about. As shown, the Scottish Borders was the most popular location, with 88% (n=38) of respondents indicating that their staff travel there. This was followed by the North of England (74%, n=32), Edinburgh (47%, n=20) and East Lothian (42%, n=18).
The same group of respondents (n=43) were asked to indicate the frequency of travel of staff to each of the locations. As shown in Figure 24, 32% (n=12) indicated that their staff travel to the Scottish Borders over 20 times a month. Of the respondents who indicated that their staff travel to East Lothian, 56% (n=10) travel more than five times a month. Similarly, 53% (n=17) of those who travel to the North of England do so more than five times a month.
Markets Served and Suppliers
Location of Key Markets
Respondents were asked, in terms of their outputs, which geographical markets they currently serve from their indicated location. To do this, they were asked to give an approximate percentage by area shown below, with their answers summing to 100%. The results of this question are presented in Figure 25 below.
As shown, the majority of business was carried out within the Scottish Borders, with 28% of respondents indicating that over 75% of their business output is there. After the Scottish Borders, the North of the England had the next largest share with 60% of respondents indicating that they have at least 1% of their business output going there. Otherwise, the respondents indicated that their business outputs are fairly well spread across the locations listed, as shown by the percentage of businesses with between 1% and 25% of business outputs in each of the locations.
Overall, 13% (n=13) of the respondents indicated that a proportion of their business output was overseas. Four of these respondents noted that they shipped worldwide and didn’t specify a specific location. The key markets listed by the other nine respondents were America, Germany, Netherlands, Spain, France and Switzerland.
Competitors Location
Respondents were asked where their main competitors were located. Again, they were asked to provide a percentage breakdown of the competitors as per the locations shown in Figure 26.
Similar to the previous question, respondents indicated that their main competitors were largely in either the Scottish Borders or the North of England, with 34% of respondents noting that over 75% of their competition was in the Scottish Borders, and 25% of respondents noting over 75% of their competition was in the North of England.
Suppliers Location
Using the same format as the previous two questions, respondents were asked to indicate the location of their suppliers. As shown in Figure 27, 18% (n=18) of respondents indicated that over 75% of their suppliers are in the North of England. Another 15% (n=15) of respondents noted that over 75% of their suppliers were located elsewhere in the UK.
Recent Business Conditions
Perceptions of Business Conditions
Respondents were asked to indicate their level of satisfaction with current business trading conditions. As shown in Figure 28, the largest proportion of respondents (39%) noted that their satisfaction was very high. A further 30% noted that that current business trading conditions were good. Only 3% indicated that business conditions were very poor.
Respondents were then asked to consider what had influenced business conditions. As shown in Figure 30, 83% (n=83) of respondents noted that COVID-19 had influenced business conditions. Changing market trends was the only other option that more respondents felt had influenced business conditions than had not.
Nine respondents highlighted ‘other’ factors that had influenced business conditions, including:
- Rise in fuel prices
- The economy / inflation / rising cost of living / less disposable income
- The weather
- The war in Ukraine
- Not being located near attractions
- Rise in staycations
Thereafter, respondents were asked to indicate, from a list provided, what the main factor had been in influencing recent business conditions. Exactly half (50%) of the respondents selected COVID-19. Under 10% of the respondents selected each of the other options, and 13% selected ‘other’. Those that selected other generally repeated the other factors from the previous question, with the addition of product quality and the price of fertiliser.
Staffing
Respondents were asked to indicate how easy, or otherwise, was it for them to recruit suitable staff. As shown in Figure 30, respondents indicated that it was challenging to recruit suitable staff, with 27% (n=27) noting that it was ‘difficult’ and 20% (n=20) noting that it was ‘very difficult’.
Respondents were then asked what had happened to their employee levels over the last three years. Around half (51%, n=51) noted that their employee levels had remained stable over the last three years. Meanwhile, 21% (n=21) and 20% (n=20) of respondents indicated that staff levels had increased slightly and decreased slightly respectively.
Investment
Respondents were asked how the level of investment in their business has changed compared to the previous financial year at their current site. As shown in Figure 31, the majority (60%, n=60) indicated that their level of investment has remained stable. Overall, a higher proportion of respondents noted that their business’s investments increased rather than decreased.
The respondents who indicated that there had been a change in their level of investments were then asked if this change had been influenced in any way by the forthcoming opening of Reston station. Most (95%, n=38) said that the opening of the station had had no influence while the other 5% (n=2) indicated that it had a slight influence.
Turnover
The respondents were asked to state their annual turnover in the last financial year at their current site. While 43% (n=43) of respondents said that they did not know/would rather not say, the business turnover of the remainder was fairly mixed across the options as shown in Figure 32.
Just under two thirds (60%, n=60) of the respondents noted that the current annual turnover had changed compared to two years ago. Of these respondents, 60% (n=36) noted that it had increased and the other 40% (n=24) noted that it had decreased.
Anticipated Impact of Reston Rail Link
The respondents were asked to think about the impact that the opening of Reston station may have on their business in relation to the statements in Figure 33. Generally, respondents disagreed more with the statements than agreed.
The statements that the respondents agreed the most with were:
- The new station at Reston will enable us to expand our local business – 24% (n=25) of respondents either strongly agree or agree with this statement
- When Reston station is open, we will be able to expand our customer base – 31% (n=29) of respondents either strongly agree or agree with this statement
- Reston station will lead to an increase in our turnover – 28% (n=26) of respondents either strongly agree or agree with this statement
The statements that the respondents disagreed most with were:
- Reston station will make it more difficult to retain staff – 86% (n=83) of respondents either disagree or strongly disagree with this statement
- When Reston station opens, we will need to take on more staff – 85% (n=81) of respondents either degree or strongly disagree with this statement
- Having access to Reston station will mean we will increasingly use suppliers from different areas – 82% (n=78) of respondents either degree or strongly disagree with this statement
- We will rely less on local customers when Reston station opens – 81% (n=7) of respondents either degree or strongly disagree with this statement
Further to this, respondents were asked to provide an estimate of the potential impact of the opening of Reston station in terms of:
- Turnover and customer base
- Employment levels at their current site
As shown in Table 21, the majority of respondents indicated that they believe there will be no impact on either turnover/customer base or employment levels. Where respondents felt there would be an impact, it was generally felt this would be positive in nature, although, respondents suggested that there would be more impact on turnover/customer base than employment levels. Overall, 42% (n=42) of respondents believe that there will be some positive impacts of some degree to turnover/customer base compared to 21% (n=21) believing that there will be a positive impact on employment levels.
| Impact | Turnover and customer base (No.) | Turnover and customer base (%) | Employment levels at their current state (No.) | Employment levels at their current state (%) |
|---|---|---|---|---|
| High Positive Impact (>10%) | 3 | 3% | 2 | 2% |
| Medium Positive Impact (6% to 10%) | 17 | 17% | 6 | 6% |
| Low Positive Impact (1% to 5%) | 22 | 22% | 13 | 13% |
| No Impact (0%) | 55 | 55% | 73 | 73% |
| Low Negative Impact (-1% to -5%) | 2 | 2% | 6 | 6% |
| Medium Negative Impact (-6% to -10%) | 1 | 1% | - | - |
| High Negative Impact (<10%) | - | - | - | - |