Harmful and Beneficial Aspects of the Manitoba Economy
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1 NEWS RELEASE Manitoba Business Leaders Index, December 2012 QUALITY OF LIFE, RETURN OF PRO HOCKEY MAIN FACTORS SHAPING THE MANITOBA ADVANTAGE Manitoba Business Leaders Point to Factors That Contribute to Manitoba s Economic Well-Being FOR IMMEDIATE RELEASE For Manitoba business leaders, the return of the National Hockey League s Jets is more than a potent symbol or an exciting diversion it is one of the most beneficial attributes of the provincial economy, according to a new survey of 200 Manitoba business leaders conducted exclusively for the Free Press by Probe Research Inc. Nearly one-half of business executives and owners participating in the Probe Research Manitoba Business Leaders Index indicated that the return of pro hockey to and the province s overall quality of life (48% each) are beneficial economic factors. These two indicators of the province s economic well-being topped a list of 17 attributes, with the performance of the province s agricultural sector (47%), Manitoba Hydro (41%), immigration (37%) and a favourable exchange rate (36%) trailing slightly behind. At the other end of the scale, factors that business leaders were most likely to say are harmful to the provincial economy included the crime rate (50%) and the condition of the province s streets and roads (43%). Provincial tax rates (36%), government transparency (32%), relations with Aboriginal people (26%) and negative perceptions of Manitoba in other parts of Canada (24%) were also factors that businesspeople were more likely to identify as being detrimental rather than beneficial to the provincial economy. 1
2 Pro Hockey, Quality of Life Top List of Provincial Attributes Manitoba business owners and executives were asked to consider 17 different social and economic factors that contribute to the provincial economy using a 1-10 scale where a 1 meant business leaders considered this factor to be very harmful to the Manitoba economy and a 10 meant it was very beneficial to the Manitoba economy. Nearly one-half of business leaders felt that the province s overall quality of life (48%, versus 2% who said it is harmful ) and having the NHL back in (48%, versus 8% harmful ) are important contributors to Manitoba s economic well-being, with the performance of the provincial agricultural sector (47%, versus 3% harmful ) following closely behind. Other factors ranked as generally beneficial by Manitoba executives included Manitoba Hydro (41%, versus harmful ), immigration (37%, versus 10% harmful ), the current exchange rate for the Canadian dollar (36%, versus harmful ) and housing prices (32%, versus harmful ). Three-in-ten business leaders ranked the availability of business networking opportunities (30%, versus 6% harmful ) and the cost of living (30%, versus 10% harmful ) as beneficial factors to the provincial economy. Assessment of Key Economic Factors - Most Beneficial Provincial Attributes - Q.1 I m going to read you a list of items that some people say has an impact on the Manitoba economy. As I read each one, I would like you to tell me whether you consider this harmful or beneficial for the Manitoba economy. This will be using a scale of 1 to 10, where a 1 means that you think this is very harmful for the Manitoba economy, and a 10 means you think this is very beneficial for the Manitoba economy. (n=200) Quality of life 48% 50% 2% Beneficial (8-10) Neutral (4-7)/Unsure NHL Team in 48% 45% 8% Harmful (1-3) Ag sector performance 47% 51% 3% Manitoba Hydro 41% 49% Immigration 37% 10% Current exchange rate 36% Home prices 32% 58% Networking opportunities 30% 65% 6% Base: All Respondents 0% 20% 40% 60% 80% 100% 2
3 Some of the less-positive factors identified by business leaders, meanwhile, included government efforts to promote research and development (21% beneficial, versus 17% harmful ) and how Manitoba is perceived in other parts of Canada (14% beneficial, versus 24% harmful ). Additional factors that business leaders were more likely to perceive as being harmful to Manitoba s economy included government openness/transparency (14% beneficial, versus 32% harmful ), relations between Aboriginal and non-aboriginal Manitobans (13% beneficial versus 26% harmful ), provincial tax rates (13% beneficial versus 36% harmful and the condition of streets, roads and other transportation-related infrastructure (12% beneficial, versus 43% harmful ). Just four percent of those surveyed felt that the current state of downtown is beneficial (compared to 23% who felt that it is a harmful factor), while the province s crime rate stood out as the most detrimental factor affecting the provincial economy (50% harmful, versus just who said it is beneficial ). Assessment of Key Economic Factors - Least Beneficial Provincial Attributes - Q.1 I m going to read you a list of items that some people say has an impact on the Manitoba economy. As I read each one, I would like you to tell me whether you consider this harmful or beneficial for the Manitoba economy. This will be using a scale of 1 to 10, where a 1 means that you think this is very harmful for the Manitoba economy, and a 10 means you think this is very beneficial for the Manitoba economy. (n=200) Gov't promotion of R and D 21% 63% 17% Beneficial (8-10) Neutral (4-7)/Unsure Outside perceptions of MB 14% 63% 24% Harmful (1-3) Gov't openness/transparency 14% 32% Aboriginal/Non-Aboriginal Relations 13% 62% 26% MB tax rates 12% 53% 36% Condition of infrastructure 12% 46% 43% Crime rate 39% 50% State of downtown 4% 73% 23% Base: All Respondents 0% 20% 40% 60% 80% 100% 3
4 The following table highlights some of the key differences between business leaders in and those outside the provincial capital. Most notable is the fact that business leaders in were significantly more likely to see the return of the NHL as a beneficial attribute ( beneficial, versus 38% respectively) and much more likely to see the crime rate (56%, versus 41% respectively), tax rates (42%, versus 28%) and the current state of downtown (28% versus 16%) as harmful to the provincial economy. Their counterparts in the rest of the province, meanwhile, were more likely than city-based businesspeople to point to the overall quality of life (, versus 44% beneficial ), the performance of the agricultural sector (53%, versus 43%) and Manitoba Hydro (48%, versus 37%) as positive attributes. (n=120) (%) Non- (n=80) (%) Overall quality of life Beneficial (8-10) Having an NHL hockey team in Performance of Manitoba s agricultural sector Harmful (1-3) 3 1 Beneficial (8-10) Harmful (1-3) 8 9 Beneficial (8-10) Harmful (1-3) 3 3 Manitoba Hydro Beneficial (8-10) Harmful (1-3) 12 9 Home prices Beneficial (8-10) Harmful (1-3) 13 9 Tax rates Beneficial (8-10) Harmful (1-3) Crime rates Beneficial (8-10) Current state of downtown Harmful (1-3) Beneficial (8-10) 5 3 Harmful (1-3)
5 The Manitoba Business Leaders Index is an annual scientific survey of Manitoba s senior business officials. The survey sample includes a stratified sampling of company CEOs, presidents, business owners and designated corporate senior officers representing 200 small, mid-sized and large commercial establishments (as defined by Statistics Canada and the Manitoba Bureau of Statistics). This sampling includes both publicly traded and private companies from all major sectors of Manitoba industry. Executive interviews with 200 respondents were conducted between October 29 and November 22, With a sample size of 200, one can say these results are accurate within +/- 6.9 percent of what they would be had the entire population of Manitoba business leaders been surveyed. For more information on this survey, please contact: Scott MacKay President, Probe Research Inc. Suite Garry Street,, Manitoba R3C 3P2 Tel.: (204) Cell: (204) Fax: (204) scott@probe-research.com
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