1. Fargo-Moorhead-West Fargo Business Conditions Survey 2016 MANAGEMENT AND MARKETING

2. Historical Unemployment Rate (source: ND Job Service)

3. Type of Business (160 Firms)

4. Changes in Sales from 2014 to 2015 – By Type of Business * The Diffusion Index is the percentage of respondents reporting an increase minus the percentage reporting a decrease. A positive index indicates expanding activity, while a negative index indicates declining economic conditions. **Caution should be used in interpretation, as some business types have very small sample sizes.

5. Changes in Profit from 2014 to 2015 – By Type of Business * The Diffusion Index is the percentage of respondents reporting an increase minus the percentage reporting a decrease. A positive index indicates expanding activity, while a negative index indicates declining economic conditions. **Caution should be used in interpretation, as some business types have very small sample sizes.

6. Top 5 Factors Positively Affecting Performance Rank2012201320142015 1A Strong State Economy Domestic Sales Increase A Strong State Economy Domestic Sales Increase 2 A Strong State Economy Domestic Sales Increase A Strong State Economy 3Lower Operating Costs Technology Changes Lower Operating Costs 4Technology Changes Lower Operating Costs Technology Changes 5Political Stability Less Domestic Competition

7. Top 5 Factors Negatively Affecting Performance Rank2012201320142015 1Higher Operating Costs Staffing IssuesHigher Operating Costs Domestic Sales Shortfall 2 Domestic Competition Staffing Issues 3Domestic Competition Higher Operating Costs Staffing IssuesDomestic Competition 4OtherDomestic Sales Shortfall Higher Operating Costs 5Staffing IssuesOtherFederal Government Regulations

8. Expectations -National Economy in Comparison to Previous Year

9. Expectations – Regional Economy in Comparison to Previous Year

10. Expectations – Your Business in Comparison to Previous Year

11. Factors Expected to Adversely Impact Business in Next 12 Months

12. Top 5 Factors Expected to Adversely Impact Business Rank2013201420152016 1Difficulty Attracting/Retaining Qualified Employees 2Increasing Government Regulation Increasing Competition 3 Difficulty Providing Health Insurance for Employees Increasing Government Regulation 4Difficulty Providing Health Insurance for Employees Increasing Government Regulation Increasing Raw Material/Input Costs Difficulty Providing Health Insurance for Employees 5Increasing Raw Material/Input Costs Increasing Government Regulation Increasing Raw Material/Input Costs

13. Difficulty Attracting and Hiring Qualified Workers

14. Percent of Businesses Having Difficulty Attracting and Hiring Qualified Workers – By Business Type 2015

15. Difficulty in Hiring Qualified Workers

16. Is Fargo-Moorhead-West Fargo Infrastructure Adequate for Future Expansion?

17. If FM-WF Infrastructure is Not Adequate, What Improvements are Needed?

18. Has the Drop in Oil Prices Impacted Your Business? Both Positive and Negative Impacts e.g. decreased travel and input costs, decreased activity in oilfields

19. Presentation slides available at: FMWFchamber.com starionfinancial.com NDSU.edu Special thanks to NDSU Department of Management and Marketing for assistance with survey collection and analysis. MANAGEMENT AND MARKETING