Reported legal business conducted with Canadian clients located in Clinton County increased 41% between 1994 and 1996. Sector business conducted with Public border-related agencies increased by a factor of 100 from 1994 to 1996. However a 52% decline in the legal business conducted with international border businesses from 1994 to 1996 was also reported.

In 1994, the surveyed law firms reported a total of 88 incorporations, representing 65% of all incorporations within Clinton County registered with the NYS Department of State Division of Corporations in that year. The 39 new Canadian-owned businesses incorporated in 1994 represented 29% of total incorporations registered that year. In 1996, a total of 133 incorporations within in Clinton County were registered with the state. The incorporations reported by surveyed firms represent 58% of this total. The 20 new Canadian-owned businesses incorporated by the surveyed firms represent 15% of total incorporations registered in 1996.

The significant increase in Canadian-owned businesses identified by the Chamber in Clinton County may reflect the sum of those firms incorporated in 1994, 1995 and 1996. However, the above figures would appear to indicate a decrease in the number of and share of all new business related to new Canadian-owned businesses incorporated annually in Clinton County from 1994 to 1996. The absence of data on new Canadian-owned businesses incorporated in 1995 limits the illustration of a clear trend.

Methodological Note:

Overall response rate did improve for this replication study. Whereas 11 of 40 surveyed law firms (28%) responded in 1994, 18 out of 53 firms (34%) responded in 1996. Only 7 of the 11 law firms that responded to the 1994 original study participated in the 1996 survey. A direct comparison of 1994 and 1996 sector data is not possible, however, the total business conducted in 1994 by the 4 one-time respondent law firms only equals 4% of the total legal sector business conducted in 1996 with Canadian and border-related interests. A comparison of the total business conducted by the 7 law firms that responded in 1994 and 1996 is possible. These 7 firms report a 20% increase in business conducted with Canadian and border-related interests from 1994 to 1996.

The data on number of total incorporations, incorporations of COBs and transfers of Canadian ownership also cannot be strictly compared between 1994 and 1996 data for the sector as a whole. However, in the case of the 7 law firms that responded in both years, total incorporations decreased from 57 in 1994 to 51 in 1996. Thirty-nine percent of the 1996 reported incorporations by these 7 firms were for new Canadian-owned businesses compared to 61% of their 1994 incorporations.

There appears to be significant economic activity in this sector, however, repeated participation by a core group of respondents will be necessary to create a useful indicator.

Recommendation for Replication:

The Chamber should obtain prior agreement to participate in the next replication study from those specific legal firms which responded to this study. The Chamber should revise and update the list of legal firms operating within Clinton County. With each replication of this study, the intent should be to track the responses of firms which have responded previously, thus compiling comparable trend data, while continually expanding the base of total respondents.