Business Oregon News

January 2012

Business Oregon Releases 2011 Annual Report

I'm pleased to release Business Oregon's 2011 Annual Report. We've achieved some great things for Oregon businesses and communities in a tough economic climate this past year, and it's making a big difference for Oregon. The report concisely presents our key performance measures, along with brief highlights from the past year, as well as a look ahead. The report is available on our Web site.

Governor Appears at White House, Touts Oregon Manufacturers' Successes

On January 11, Governor John Kitzhaber joined President Barack Obama at the White House to call on companies across the nation to invest in America as part of an "Insourcing American Jobs" forum. The forum focused on the increasing trend of insourcing—where companies are bringing jobs back to the United States and making additional investments here in America.

The Governor was asked to participate in the discussion and share the Oregon story with the President, Vice President, members of the cabinet and other senior administration officials along with representatives from companies that have brought jobs back or decided to make significant investments in the United States. James Curleigh, CEO of KEEN, Inc., and Brian Krzanich, Senior Vice President, General Manager, Manufacturing and Supply Chain of Intel Corporation also attended, relating their experiences manufacturing in Oregon.

In under a decade, Portland-based KEEN has grown from its first trademark sandal with innovative toe protection, to more than 500 shoe styles, becoming a worldwide leader in the footwear and apparel industry. Since 1974, Intel has made capital investments in Oregon totaling approximately $20 billion, most recently with its $3 billion cutting-edge wafer fabrication facility in Hillsboro.

In conjunction with the forum, the White House released a report that details the emerging trend of "insourcing" and how companies are increasingly choosing to invest in the United States.

• For example, real business fixed investment in the U.S. has grown by about 18% since the end of 2009.
• In the past two years, 334,000 manufacturing jobs have been created, while manufacturing production has increased by about 5.7% on an annualized basis since its low in June of 2009, its fastest pace in a decade.
• In addition, continued relative attractiveness to business—as several outside analysts have noted—made the United States more competitive to invest and create jobs by reducing the relative cost of doing business compared to other countries.

Oregon Looks South to Recruit Food Processing Companies

Recruitment Effort to be Cooperative "Team Oregon" Approach
This month, officials from Business Oregon, the Oregon Department of Agriculture and several local economic development partners headed to a major food trade show in the hopes of attracting California food processors northward to the state.

These types of shows are ideal venues for business recruitment. The Winter Fancy Food Show in San Francisco, attracts more than 17,000 visitors, with about 350 California companies alone. In March 2012, the Natural Products Expo West in Anaheim also will attract a large number of potential business targets.

Team Oregon will set up a state of Oregon booth at both shows and representatives will work the events, meeting with companies that attend. The local economic development officials from Oregon will be able to make a personal pitch for their own community, in addition to the whole team representing Oregon.

"We are a rural community with rich and thriving agriculture," says Jody Christensen, director of the McMinnville Economic Development Partnership, who is interested in attending the California shows. "We don't want to pit ourselves against other communities or states, but just want to show companies the benefits of coming to McMinnville. If it makes sound business sense for them to locate here, we happily welcome them."

Other Oregon communities showing interest in recruiting food companies include Forest Grove and SEDCOR (the Strategic Economic Development Corporation) which represents the Mid-Willamette Valley.

"Marion County is Oregon's top ranked agricultural county and we already have some of the best food processors in the state," says SEDCOR's Nick Harville. "There is already a great infrastructure and supply chain for goods and plenty of opportunity for new companies because of the tremendous variety of crops we produce."

Past efforts to recruit California food companies have had significant success. In 2006, Amy's Kitchen expanded its organic frozen food processing operation to include a major facility in the Medford area. Lower electric power costs, lower workers' compensation costs and the diversity of local crops were some of the major factors the company chose Oregon and employed around 250 people.

Now, innovation is driving growth in Oregon's $7.1 billion food industry. State-sponsored research is making food processors more productive while it is expected to help cut energy consumption by 25% in the next 10 years. In 2010, nearly 24,000 Oregonians worked in food manufacturing jobs with an average pay of $34,000 a year. The Oregon Employment Department said food manufacturing payrolls in Oregon totaled more than $800 million annually.

Earlier this year, the leadership of the Oregon Economic Development Association (OEDA)—which is made up of city, county and regional economic development organizations—surveyed their members on what kind of companies and industries they are most interested in recruiting. The survey results prompted OEDA, Business Oregon and ODA to develop a plan to seek out food processors, particularly those from California, through participation in the upcoming trade shows.

Deadline Announced For Arts Grant Applications

The Oregon Arts Commission has announced a February 1 deadline for competitive capacity grants that continue the capacity-building efforts of Sustaining Oregon's Arts, a multi-year program to strengthen arts organizations in Oregon. Available to Oregon arts organizations, the grants will enable groups to build their operating capacity, improve financial sustainability, refine artistic products, diversify audiences and/or strengthen management and board governance.

"The nonprofit arts sector is facing structural changes brought on by technological advances, demographic and funding changes, and shifting consumer and donor behavior. This program will support capacity-building activities that can strengthen an organization and help it better achieve its mission," said Christine D'Arcy, Executive Director of the Arts Commission.

Capacity building can occur in every aspect of an organization, including programs, operations, technology, finance, marketing, audiences and leadership. Some examples of capacity-building activities are: developing a strategic or cultural participation plan, purchasing donor-management software, undertaking board development, engaging an executive coach or participating in financial management training.

Applicants for Capacity Grants should be prior participants in Sustaining Oregon's Arts programming, including participation or presenting at the annual Arts Summit, Leadership Exchanges and webinars. Additionally, applicants must have received competitive grant support from the Oregon Arts Commission during the past two fiscal years.

Applicants must have a high willingness and ability to engage in capacity building, and a strong commitment of artistic, board and managerial leaders to participate.

Capacity Grants will range from $5,000 to $30,000. Completed applications must be submitted through the commission's online grant system no later than 5 p.m. Wednesday, Feb. 1.

Additional information is available in advance of the deadline. Contact Shannon Planchon, Assistant Director, at 503-229-6062 or Brian Wagner, Community Arts Coordinator, at 503-986-0083 with questions.

Columbia PhytoTechnology sets up shop in The Dalles

Columbia PhytoTechnology has announced plans to move and expand its production facilities in The Dalles in early 2012. Columbia PhytoTechnology specializes in powder production, particularly of fruits and vegetables, for the food, beverage, nutritional, nutraceutical and pharmaceutical industries.

"It is important for our economic growth to assist companies like Columbia PhytoTechnology in their expansion efforts to create quality jobs in The Dalles," said Rep. John Huffman (R-The Dalles), who joined us at the handover of a $50,000 forgivable loan recently. "I appreciate the coordinated efforts and teamwork of all those involved—from the city, port, state and company—to make this expansion project happen."

The company dehydrates fruits and vegetables into specialized products using its patented Radiant Zone Drying (RZD) technology, which it considers far superior to standard freeze-dried products. The process better preserves the high nutritional value of vitamins and nutrients in the food.

Business Oregon partnered with the company to help finance the move with a $50,000 forgivable loan from the Governor's Strategic Reserve Fund. The company plans to add more than a dozen jobs as a result of the expansion at its new Oregon facility. Columbia PhytoTechnology has grown from eight employees in 2008 to nearly two dozen in 2011.

We are very pleased with Columbia PhytoTechnology's plans for growth in Oregon. The addition of increased production and more than a dozen new employees in 2012 will mean benefits for the community and the state. This successful effort would not have been possible without the energetic work of our partners—the Port of The Dalles, the Oregon Employment Department, Columbia Gorge Community College and the City of The Dalles.

Check Out Business Oregon's New Finance Widget

Business Oregon's Web site features a new tool to help Oregon business owners determine which finance programs may be available to assist them. The Finance Widget was made available in late 2011 on our Web site as well as on our mobile site. Check it out and find out which Business Oregon programs may be able to help meet your company's financing needs.

Hats Off to the OMWESB Team at Business Oregon

Kudos to Business Oregon's Office of Minority, Women and Emerging Small Business (OMWESB) on their highly successful year. OMWESB administers the Disadvantaged Business Enterprise (DBE), Minority Business Enterprise (MBE), Women Business Enterprise (WBE) and Emerging Small Business (ESB) certification programs. These programs are designed to promote economic opportunities for small businesses.

As the sole certification authority in Oregon, OMWESB provides a "one-stop" certification process for Oregon disadvantaged, minority- and woman-owned and emerging small businesses. Certification opens the door to targeted government contracting opportunities.

Below are some statistics showing off their work in 2011:

• 3,172—current grand total of active certified firms
  • 500 total DBE firms
  • 703 total MBE firms
  • 1,195 total WBE firms
  • 2,233 total ESB firms
• 872—new applications received
• 747—new certifications
• 823—certification review applications received
• 724—certification reviews completed

Upcoming Events

Oregon Brownfields Conference Coming to Portland in June

Awards Will Go to Best Brownfield Cleanup Projects
The 2012 Oregon Brownfields Conference will be held June 13 and 14 at the DoubleTree by Hilton in Portland. The annual conference, sponsored by Business Oregon, the Oregon Department of Environmental Quality, the Northwest Environmental Business Council and the Center for Creative Land Recycling, provides an exceptional learning and networking opportunity for those working to make contaminated properties economically viable for reuse.

The Oregon Brownfields Conference is designed to target the educational needs of brownfields practitioners—from long-time brownfields professionals to those just entering into the process of transforming contaminated sites into productive properties. The 2012 theme "Getting to Development" reflects the hands-on, practical nature of this year's event. Work sessions will dig deep into issues associated with building on brownfields, as well as provide a forum for discussion of sustainability in the current economic and real estate climate of record-breaking property foreclosure and bankruptcy rates.

Nominations of projects or individuals for recognition at the Oregon Brownfields Awards Program Luncheon ceremony are being accepted through April 15, 2012. The nomination form is available online.

Registration for the conference opens in February 2012. Scholarships to cover registration and lodging are available for attendees traveling more than 75 miles to attend the conference. For more information, please contact Karen Homolac at 503-986-0191.

In addition, if you would you like to be a sponsor for this event, you can register online contact Sue Moir at the Northwest Environmental Business Council, at 800-985-6322, if you wish to discuss a custom sponsorship opportunity that is not listed.

Other Events

• Economic Recovery Review Council Meeting Jan 24
• Oregon InC Meeting Jan 24

Find a complete listing of events on our Events Calendar