Business Oregon News

October 2011

Governor Returns from Successful Asian Trade Mission

Mission Focused on Increasing Opportunities for Oregon Businesses in Japan, Korea and China
Governor John Kitzhaber and I recently returned from a highly successful 12-day business development mission to Japan, Korea and China.

Joining the mission were other state business development and agricultural officials, private business leaders and several elected officials. The trip occurred at the same time as a separate 17-member delegation from the Oregon State Legislature visited China. Our combined presence went a long way toward showing our largest trading partner our serious commitment to expanding and strengthening our economic and cultural ties.

Governor Kitzhaber led the business mission to Asia to promote Oregon products and innovation and to attract new investments to the state. Oregon's exports are one of the bright spots of the state's economy with international trade growing by 19 percent in the last year on nearly $18 billion in foreign sales. China is Oregon's largest trading partner while Japan imports more of the state's agricultural products than any other nation.

"I am committed to doing everything I can to get more Oregonians back to work, boost our per capita income, and make sure that every corner of our state is on a solid path to prosperity," said Governor Kitzhaber. "Accessing international markets is a critical piece of my plan to create jobs in Oregon and help our businesses small and large. With Oregonians still struggling, this is exactly the right time for us to be actively marketing Oregon products and innovation around the world."

During the trip, the Governor met with officials from several large companies already located in Oregon, or considering such opportunities, including Hanjin Shipping and Asiana Cargo in Korea, Sanyo and Toyo Tanso in Japan and Cosco and Nike in China. The Governor also held meetings with leaders such as Korean Prime Minister Kim Hwang-Sik, new U.S. Ambassador to China Gary Locke and the U.S. Ambassador to Japan and China State Councilor Madam Liu Yandong.

International trade impacts every part of the state with nearly 5,000 Oregon companies exporting their goods and services abroad—from large companies like Intel, to wheat farmers in Eastern Oregon, paddle makers in Bend, and motorcycle manufacturers in Ashland.

A good example of how the development of good, working relationships between our state and Asia can pay dividends for Oregonians is the export of fresh Oregon blueberries to Korea. After nearly a decade of negotiations, Oregon agriculture officials finalized the deal on this mission with Korean officials. The recent return of direct international freight service with non-stop, cargo air service between Portland and Korea by Asiana Cargo means Oregon can be the only U.S. state exporting fresh blueberries to Korea beginning next year.

Sales into foreign markets don't just happen on their own. Export deals happen from relationships and trust built over time, through face-to-face conversations, business tours, logistics discussions, etc. Travelling as a group led by the Governor of the state provided access to both private sector and government leaders, and access to those relationships that have been built over a long history of state visits. Business Oregon will continue to leverage the relationships built by these visits and our overseas representatives to help Oregon companies access markets in Asia and elsewhere around the world. And now we have a new tool to do just that. . .

Business Oregon's Work on Display for Interim Legislative Committees

Small Business Owners Testify on Critical Importance of Access to Capital
A quartet of Oregon small business owners testified last month before several interim legislative committees about the importance of Business Oregon finance programs, as well as the export of Oregon products.

Legislative leaders heard about the uptick in business finance assistance occurring at Business Oregon recently, and the implementation plans for a recent $16.5 million federal award from the U.S. Department of Treasury to supplement existing finance programs.

At the Oregon Senate's Interim Committee on General Government, Consumer and Small Business Protection on September 21, Jennifer Thomas and Christin Casperson, the co-owners of Jet Clothing, testified on how their small Northeast Portland firm managed to grow to 10 employees with help from Business Oregon's Entrepreneurial Development Loan Fund (EDLF).

As Thomas wrote afterward on her Jet Blog:

"Nervous as we were to speak, we found that the panel was receptive and interested in our venture. We started Jet because we dreamed of clothing that we loved to wear, we kept doing it because we found that people wanted it too. Two years in we have found a voice that is reaching a wider platform than we thought possible."

In addition to Jet, Anthony and James VanderMeide, the co-owners of Coastal Mountain Spring in McMinnville, testified about how a $20,000 EDLF loan will help the startup hire employees, build a facility for its operations and purchase equipment. The company bottles water from a spring in Yamhill County.

Also on September 21, before the Senate's Interim Committee on Business, Transportation and Economic Development, Chair Sen. Lee Beyer led a discussion of the importance of certified, large-lot industrial sites. Business Oregon Deputy Director Lynn Schoessler and Industrial Lands Specialist Michael Williams spoke to the committee about implementation plans for the recently passed SB 766 and its importance in the state's job creation strategy.

In addition, Deputy Director Schoessler was joined by Business Finance Officer Terry Hegle and Wes Price, of the Business Oregon Business Finance Committee to discuss the availability of capital for Oregon small businesses.

On September 22, the House Interim Committee on Transportation and Economic Development heard expert testimony from a panel of economists about the state's economic outlook. Following that presentation, a panel including Legislative Revenue Officer Paul Warner and Amy Liu from the Brookings Institute, discussed the importance of exports to Oregon's economy.

Leaders from two Oregon companies, SAM Medical and Plasti-Fab, discussed how the assistance from Business Oregon's Global Strategies team had helped them tap global markets to help grow their firms.

Adrian Polliack of SAM Medical told the committee how the Wilsonville company, founded on the Oregon Coast 25 years ago, has been able to make Inc. Magazine's list of the fastest growing private companies for the last four years. The company, which makes orthopedic splints and wound care devices designed for use by the U.S. military, medical responders, outdoor enthusiasts and NASA, received two OTPP grants from Business Oregon which helped it attend two international trade shows and led to more than $25,000 in additional sales.

Plasti-Fab Director of International Markets Ron Schneberger told the committee how Business Oregon helped him connect with the U.S. Export-Import Bank for export credit insurance necessary to land orders with foreign customers worth more than $175,000. In addition, a Business Oregon Global Trade specialist helped the company find new distributors for its products in Southeast Asia and Japan. The company, which manufactures corrosion resistant equipment for water and wastewater treatment and control, has seen its export sales rise from $100,000 in 2007 to an estimated $1.5 million this year. These companies illustrate how the majority of Business Oregon's assistance flows to Oregon's small business owners. While high-profile recruitments often get the media attention, our business finance experts spend most of their time assisting small businesses.

You Can Now Follow Business Oregon on Facebook

That's right, Business Oregon now has a Facebook page and we want you to follow our work to create and retain jobs for Oregonians.

Beaverton Brownfield Cleanup to Turn Former Gas Station into Park Land

Business Oregon Brownfields Grant Funds Cleanup of Contaminated Site
Brownfields restoration work will transform a former gas station lot into almost an acre of green space at Eichler Park in Beaverton. The transformation comes through a successful partnership between the Tualatin Hills Park and Recreation District, Business Oregon, Metro and the Oregon Department of Environmental Quality.

After the earlier demolition of a Texaco fuel center on the northeast corner of the park, officials at the Tualatin Hills Park and Recreation District saw an opportunity to expand the park. Officials were aware of environmental issues on the property but were not sure of the extent and exact nature of the contamination. They knew that changing the soiled ground to a playground would require major steps—and funding—before families could enjoy the space safely. The project included an assessment of the site's contamination, a restoration plan, a plan for the purchase of the land and the eventual cleanup of the property.

Funds from Metro's Brownfields Recycling Program, provided through grants from the U.S. Environmental Protection Agency, helped pay for the assessment of the site, which had petroleum-contaminated soils. The survey of the land, along with a slew of samples, showed the assessment team that nearly a third of the soil, including some groundwater, tested unsafe for public use. In addition, an abandoned, and neglected, oil storage tank was found below ground.

Business Oregon then contributed approximately $126,000 of its Oregon Coalition Brownfields Cleanup fund, along with a $25,000 contribution from the Parks District, to cover the project's estimated total cost of $151,526.

Once a contractor is selected to perform the cleanup, the work of replacing several hundred cubic feet of contaminated soil could take as little as two weeks. The cleanup is scheduled to be completed by December.

Eichler Park currently features a playground, community garden and a BMX track. Soil testing will be performed after the cleanup to ensure the land is safe for public use. Park officials are considering different options for use of the site and will engage the public for ideas.

Newport Hosts the Oregon Economic Development Association Conference

Business Oregon staff joined more than 100 economic development professionals from across the state last month at the Hallmark Resort in Newport for the 2011 Annual OEDA Conference. This is a very valuable conference for economic development in Oregon, that provides education on new strategies, sharing of best practices and allowing for collaboration and coordination on upcoming projects.

The two day conference featured speakers and presenters from all over the state from diverse professions and industries on topics such as marketing commercial properties, industry cluster development, workforce training and even opportunities for TV and Film. Scott Nelson, the Governor's jobs and economy policy advisor was the keynote speaker at the Awards Luncheon where he discussed economic development priorities for 2012, the Economic Gardening Task Force and the Regional Solutions Centers established across the state.

I'm also very proud to share that Bruce Laird, National Business Recruitment Officer for Business Oregon, was honored at the luncheon as the Economic Development Leader of the Year. Bruce helped develop the state's first clean technology strategy around the solar industry, and has worked with solar manufacturers, site selectors and real estate firms to help land key solar manufacturers in Oregon. Bruce's work has brought global firms such as SolarWorld, Sanyo, MEMC, SoloPower, and others to Oregon, creating millions in investments, hundreds of jobs and helping to revitalize our state's economy. Congratulations, Bruce!

Upcoming Events

Oregon Connections Telecommunications Conference Oct. 27-28

The conference draws attendees from all regions of the state to share ideas, experiences and knowledge about telecommunications. The 2011 conference will explore the importance and value of broadband telecommunications adoption and utilization for business, government, education, healthcare, public safety, communities and individuals. The conference will be held in Hood River at the Hood River Inn. Registration is $75 per person. Visit the conference Web site for conference details and registration.

"Business & the Environment" Conference and Trade Show—Portland Nov. 8-9

Presented by Northwest Environmental Business Council, the Oregon Department of Environmental Quality and U.S. EPA–Region 10, this is the conference for today's environmental and operations managers. While regulatory compliance is the cornerstone of environmental management, other operational elements such as energy efficiency, waste minimization and product stewardship not only benefit the environment but also directly contribute to reducing costs, improving profitability and enhancing competitiveness. Full information is available at the conference Web site.

Other Events

• IFA Board Meeting Oct 14
• Broadband Advisory Council Meeting Oct 26
• Small Business Advisory Council Meeting Oct 27

Find a complete listing of events on our Events Calendar