Rochester Community and Technical College
Business Retention and Expansion Program
Michelle Pyfferoen
michelle.pyfferoen@roch.edu
(507) 285-7210
Rural Community College Initiative Project
Mission – foster economic growth through improved access to higher education and
workforce development opportunities
Project Goals – Short term –
a. Understand local business viewpoints on current and future business
climate
b. Help identify business needs and concerns related to economic
development
c. Maintain or establish a channel of communication between business
and local leaders.
d. Identify resources that may address workforce, business, financing or
other needs.
Long term - Utilize the RCCI planning model to encourage community and regionwide collaboration to addresses issues that require a more strategic solution.
Process for Achieving Short Term Goal
1.
2.
3.
4.
Data collection
Clarification of needs
Resource Identification and provide services
Develop curriculum/programs to address issues resource gaps
1. Data Collection Process
 Identified 4 communities well positioned to engage in regional planning
 Identified industries key to economic vitality of community and region
 City officials administered a business retention and expansion survey face to
face within their respective communities.
Survey participants
23 companies from Harmony, Kasson, Plainview and Stewartville participated
Industry Representation:
40% Manufacturing
17% Service
17% Agri-business
13% Retail
9% Construction
4% Healthcare
Business Size:
65% - 1-50 employees
22% - 50-100 employees
13% - 100 + employees
Data Collection Results
44% of respondents experienced expansion during the previous 3 years
39% of respondents experienced no change during the previous 3 years
17% of respondents experienced contraction during the previous 3 years
70% of respondents expect business expansion over the next 3 years
17% of respondents expect no change in business over the next 3 years
13% of respondents expect no change in business over the next 3 years.
Businesses that Experienced Expansion indicated
 Product demand and employee productivity contributed to expansion
 Business expansion lead to an increase in revenue and the number of
employees
 Expansion lead to an increase in financing and facilities requirements
 90% anticipate future expansion, 10% anticipate no change
Businesses that Experienced No Change indicated
 There were no factors that contributed significantly to the lack of growth,
however, production costs have impacted their business
 Lack of business growth did not impact number of employees or
financing and facility requirements
 Future outlook: 1/3 expect expansion, 1/3 expect no change, 1/3 expect
contraction
Business that Experienced Contraction indicated
 Product demand and economic conditions contributed to contraction
 Contraction led to a reduction in workforce and facility requirements
 100% anticipate future expansion, increasing number of employees and
increased sales in next 3 years.
Factors considered in site location (Scale of 1 – 5)
Factors
Transportation Costs
Energy Costs
Local Taxes
State Taxes
Workman’s Compensation Rates
Employee Healthcare Costs
Availability of Labor
Factor’s Importance
4.5
4.4
4.6
4.5
4.4
4.5
4.7
Community’s Rating
3.7
3.4
3.3
2.7
2.5
2.5
3.5
Areas Which Businesses Requested Additional Information
Other Survey Findings
Several respondents indicated that the city needed to improve
 City services and planning
 Promotion of local businesses contribution to economic vitality
 Support of local consumer spending
2. Clarification of Needs
 Representative from RCTC/SBDC provided follow-up inquiry
 Business provided detailed information regarding current and future
business needs
3. Resource Identification
 Based on specific needs RCTC identified resources and made contact for
the business
o Workforce Center – Job Placement Services
o Small Business Development Center – Cost
Accounting/Management
o Rochester Community and Technical College – Customized
Training Services
4. Develop Curriculum/Programs to address resource gaps
 Workman’s Compensation issues
 Healthcare costs
 State and Local Tax issues
Next Steps
 In the process of communicating survey information back to communities
 Utilizing the RCCI process to increase community understanding of economic
development issues and develop a plan to address local workforce issues.
 Create a regional workforce development plan that encompasses training,
recruitment, diversity, etc.