EDCO NEWS
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November 2008 eCon Update

Two new economic development managers join the regional team
EDCO is pleased to announce over the past week the hiring of two new professionals in the tri-county area. Redmond resident Jon Stark, pictured right, will replace the retiring Bud Prince to head the Redmond Economic Development, Inc. (REDI), while rural Jefferson County resident Wayne Pearson, pictured below left, will be the first manager of a new program for the communities of Madras, Metolius, Culver, Warm Springs and Crooked River Ranch and other unincorporated areas of Jefferson County.

As the VP of Business Development for Express Employment Professionals where he as worked the past nine years, Stark has developed a solid understanding of workforce needs of area employers.   He also has considerable community experience, serving on the Redmond Chamber Board of Directors for six years and the Redmond Economic Development, Inc. board for the past year. In the coming weeks Jon will be meeting with local leaders as well as working with Mr. Prince for a smooth transition of this successful program. 

Wayne Pearson brings 30 years of marketing and sales experience in the commercial printing business to the newly created position and program for Jefferson County. The program structure is similar to that of REDI and the Prineville/Crook County economic development program which was launched a year and a half ago. Pearson is a relative newcomer to the region – he and wife purchased a small farm two years ago between Culver and Metolius where they are raising lavender. During his time in Jefferson County, he has been active locally as a volunteer with the Madras Gospel Mission. The program will launch next week from the new EDCO Madras office located at the Madras Municipal Airport’s Flight Services Building.  

View complete information about Jon Stark’s or Wayne Pearson’s appointment. 

Rich Karlgaard, publisher of Forbes Magazine, tours Cessna
At the Bend Venture Conference at the end of October, keynote speaker Rich Karlgaard heartened an attentive audience with his historical perspective of economic downturns, sharing his viewpoint that the current economy has more in common with the downturn of the mid-80s than the great depression. Before returning home, Karlgaard – an avid pilot – toured Cessna’s production facility at the Bend airport and learned more about the region's aviation cluster and concentration of composite technology.  Karlgaard then had an opportunity to fly the company’s latest model, the Cessna 400, to the San Francisco Bay Area and reported back that it was an awesome ride.

Banks and other lenders reeling from losses from residential real estate have been forced to shore up their reserves and focus on deposits rather than lending. This spillover effect is particularly concerning to EDCO since it is already impacting traded-sector companies’ ability to help the regional economy chart a course out of its current doldrums. The falling value of the dollar has made products made here cheaper vis-à-vis the currencies of most industrialized countries. The resulting export boom has played a significant role in keeping the national, state and tri-county regional economies out of “official” recession. Without the business capital to meet global demand, we risk pulling in the reins on an important sector that is still driving us forward.  

Still, not all banks operating in the region are pulling back their commercial lending activities.   Some larger national banks are still actively seeking business deals including US Bank, Wells Fargo, and Bank of America, all which have largely bucked punishment of their stock prices on Wall Street over the past six months. Community and Oregon-based banks Community First, Umpqua, South Valley and newcomer High Desert Bank are expanding their lending efforts, but are also scrutinizing loan applications more rigorously than ever.  

For traded sector companies (manufacturing & high technology), state and federal programs like SBA and similar risk-sharing loan funds through the Oregon Economic & Community Development Department have become more popular and necessary. If your company exports most of its goods or services outside the region, call EDCO to learn more about your options to access capital using a few tools you may not have used in the past. 

Contrarian’s Corner:  when everyone’s saying how bad it is, chances are good things are happening
It is clear that the economy is slowing, and for some, it is painfully clear. Some have lost their jobs to downsizing or bankruptcies, their houses to risky loans, and for many nearing retirement age, their investment portfolios to a volatile stock market. These are certainly the telltale signs of economic recession, and if our 2008 EDCO Annual Luncheon keynote speaker was correct on his three year forecast, it could be a longer and more severe downturn than we’ve seen in some years.  

But below the current roar of bad news, EDCO sees some national and local trends that give us optimism that Central Oregon will again fare better than the rest of the nation. For one, Deschutes County and the entire tri-county region is net positive for year-over-year job creation. Yes, that’s right, according to the Oregon Employment Department, we had more jobs in September 2008 than the same month last year. With steady overall employment, rising jobless rates in the region point to one thing – continued population growth and in-migration. 

While it’s not a great time to sell a house, it is a great time to buy, especially for some first-time homeowners. Despite the inventory of available homes, the rental market has not collapsed from oversupply. 

On a global scale, oil prices have plummeted to below $63 per barrel – less than half its peak earlier in the year. Interest rates have dropped to historically low levels – just 4% for many still with home equity loans. U.S. exports to the world are still a powerhouse of economic activity. Locally, we have dozens of local manufacturers and technology companies that are growing – some have revenues 30% over last year and most others are holding their own.  

For the first time in a decade, EDCO’s membership renewals are lower than normal, but we continue to attract new investors in our efforts and are expanding via a new locally funded program for Jefferson County.   We remain committed to not just weather this economic downturn, but to use the time to prepare the region for greater prosperity and diversity when better times return. And return they will.

Congratulations! EDCO’s annual awards pay tribute to innovation, growth, and success
At a standing-room only event entitled “Serious Business. Serious Fun” at Seventh Mountain Resort, EDCO presented their 2008 Awards of Excellence October 30. The six awards of excellence are designed to recognize Central Oregon’s traded-sector employers who have created new jobs, investment, and partnership for the betterment of the region. 

Excellence in Manufacturing - Warm Springs Composite Products, Duane Darnell
WSCP was honored for their transformation in a very short time into a savvy, international exporter to eleven different counties. The company produces door components and recently landed a contract to supply the world's tallest building under construction, The Burj Dubai. 

Economic Development Partnership of the Year – HiDEC Steering Committee
The consortium was recognized for their partnership activities in fostering collaboration between manufacturing-based companies throughout Central Oregon.  In less than two years, HiDEC has expanded from its initial 13  to 26 members, whose companies make up over 3500 jobs in Central Oregon.  

Entrepreneurs of the Year – Dan Hobin and Greg Meier, G5 Search Marketing
This Bend-based company, started in 2004, has explosive growth plans of hiring 48 new employees over the next two years and is projecting revenue of $3.5 million in 2008. G5 Search Marketing gives business owners visibility into which advertising efforts (traditional or online) produce their most profitable customers.

Central Oregon Product of the Year – BTL, Steve Caldwell
Formerly Bend Tarp & Liner, BTL was recognized for the geomembrane panels (also known as “tarps”) of enormous size (e.g. 450 ft x 235 ft) created in their environmentally controlled 84,000 sf fabrication plant in Prineville.  BTL’s tarps are used around the world for vital applications, from waste containment to potable water storage to industrial processing.   

Private Sector Person of the Year – Carl Harbour, PCC Schlosser
Harbour was recognized for his time, resource, and organizational commitments to get the High Desert Enterprise Consortium (HiDEC) off the ground.  Harbour travels the country, reviewing exemplary lean manufacturing practices, and brings that knowledge back to PCC Schlosser and to HiDEC members to increase the region’s global competitiveness.  

Public Sector Person of the Year – Carrie Novick, Redmond Airport Manager
Novick has been instrumental in moving the region’s commercial airport to levels unparalleled in other communities in the western U.S.  She’s made over $100 million dollars in capital and operating improvements during her tenure and has expanded flight service to new locations. 

Please send your personal congratulations to this group of outstanding winners. 

HiDEC Executive Forum – Leadership - The Toyota Way
Leadership teams from ten HiDEC member companies and a few HiDEC friends packed Father Luke's room at McMenamins to attend a full day workshop with Mike Hoseus, a former Toyota supervisor who specializes in teaching “The Toyota Way.”  Hoseus was in Central Oregon last February for a sold-out, 250-seat workshop on company culture that received rave reviews from attendees.  Hoseus presented his second of a four workshop series focused on Leadership – The Toyota Way.  Leadership teams learned about Toyota’s system and broke out into small work sessions to tackle their own internal leadership questions.  “The Toyota workshop was an excellent opportunity for members of our management team to break away from the day-to-day and focus on the culture of our company,” said Michelle Carney Sander, a member of the Breedlove Guitars leadership team. “Working through the exercises helped us develop the framework to begin reviewing our internal processes.”  Stay tuned for a possible HiDEC Executive Forum featuring Mike Hoseus in early 2009. 

Across the state manufacturing consortia gain traction
In other HiDEC news, the consortium presented at the Oregon Economic Development Association’s annual conference at The Oregon Garden on October 7.  HiDEC, along with Emerald Valley High Performance Consortium (EV-HPEC) and Mid-Willamette High Performance Consortium (MWHPC), told of the grassroots partnership between industry, government, and non-profits that have helped to bootstrap five consortiums around the state that have been in existence for nearly two years.  The consortiums provide a vital link to industry and play an important role in economic development, while at the same time providing companies with valuable shared knowledge to improve global competitiveness. 

Make use of the earned income tax credit - be proactive now with employees
This tax season thousands of Central Oregonian low-income working families will pull themselves up over the poverty line by claiming the Earned Income Tax Credit (EITC).  The EITC is a refundable credit, which can put up to $4,800 into the pocket, or bank account, of a low-income worker with children.  The EITC alone brings back $20 million to Central Oregon.  Add the Child Tax Credit (CTC) and the figure is over $40 million. 

The challenge, however, is that an estimated 20 percent of taxpayers who are eligible to receive these credits leave the money on the table. This adds up to millions of unclaimed dollars – dollars that can not only help those families but will be reinvested in the local economy.  

The good news is there is help.  A coalition, led by the Partnership to End Poverty, is developing a marketing strategy as well as free tax preparation sites across the region to help the ever-growing number of families in need.  Its goal is to increase the number of EITC and CTC dollars that come back to Central Oregon families and, thus, the Central Oregon economy.

How can you help?  There are many ways you and your business can help… and all are very easy. 

1. Display EITC materials in well-traveled areas within your office, such as break rooms, waiting rooms, and lobby areas.
2. Educate your employees through check stuffers, work room fliers and posters, emails and newsletter articles (if applicable).
3. Promote the free tax aid sites that will be held across the region.
4. Implement the W-5 form for the Advanced EITC in your business. (learn more here)
5. Print and implement a bill stuffer to your customers in the month of January.
6. Make an in-kind or direct donation to outreach and marketing efforts.
7. Become part of our Take Credit tax aid coalition.

Ad hoc committee on Deschutes County recreation assets releases recommendations
On October 15, the committee appointed last December by Senator Ron Wyden presented its recommendations to the Senator. The committee, co-chaired by Deschutes County Commissioner Tammy Melton and retired Bend-La Pine School District official Peter Miller, spent the past 9 months developing an agenda of projects and actions which taken together would substantially improve the outdoor recreation opportunities in the region. The recommendations – which have now been endorsed by the city councils of Sisters, Redmond, and Bend - include such things as developing multi-use recreation trails (paved bike paths) from Redmond to Smith Rock along the North Unit Canal, and connecting Bend to Sunriver; developing a community cross country ski trail from Meissner to Dutchman Flat; designating a back road bike route connecting Deschutes County towns; and redoubling the effort to improve the Deschutes Paddle Trail.

The report essentially identifies a number of relatively small projects which, taken together, would significantly change the recreation landscape in Central Oregon. The committee has now finished its work, and efforts are proceeding to act on the ideas put forth. EDCO is highly aware that recreational amenities play an important role in company recruitment. Although hard statistics don’t exist, anecdotal stories abound of vacationing CEOs in Sunriver or Black Butte Ranch who see the economic vitality of the area and wonder if moving their company or starting a new company in Central Oregon is feasible.  Given this fact, EDCO has encouraged Senator Wyden’s and the committee’s efforts from the start.

Landlords sharpen pencils – let’s make a deal in Redmond
In 2007 the price of industrial space in Redmond typically ranged from $0.55 to $0.70 per square foot…fast forward to October, 2008 and you will find new construction space for as little as $0.25 per square foot NNN for the steel framed building at 810 NE Hemlock Ave. With 300,000 square feet of mostly new industrial space available, the competition for leases and/or sales is keen. When the new Redmond Industrial Park space went on the market for lease last year the asking price was $0.60/square foot. It is now listed at $0.35/square foot.

SCORE expands, looks for additional business counselors  
SCORE, Counselors to America’s Small Business, opened their local Chapter last June. The unreserved acceptance of their national presence by the local community since they opened has been unexpectedly strong. This has caused an immediate need for additional volunteers to become accredited counselors. There is particular demand for people with backgrounds in accounting, marketing, and small business general management. There is also a call for people with a restaurant or hospitality management background. Once accredited, counselors are assigned to organizations requesting assistance in their specialties. Call 541-923-8615 to volunteer and help Central Oregon continue to grow; SCORE will contact you in turn.  

November 6: Join EDCO at a free, informational meeting and hear the Suterra story
Join us for an informational session at McMenamins, Father Luke’s Room, from 4:00 to 5:30 pm this Thursday afternoon.  EDCO Executive Director Roger Lee will discuss what gardening and economic development have in common -- in a word, cultivation. Lee will share some of EDCO's behind-the-scenes spade work to recruit new companies and help local companies grow and flourish.  Guest speakers are Matt McCoy, VP at COCC and current EDCO Board President, and Steve Hartmeier, President of Suterra, a Bend-based bioscience company.   McCoy will discuss the importance of collective efforts to diversify our economy.  Hartmeier will share Suterra’s growth plans from its unique position as a producer of environmentally friendly products and services for commercial agriculture, as well as the role EDCO has played to help the company expand. Email Dayna if you’d like to attend.

November 7: Crook County leaders please RSVP for luncheon
This is the first annual economic luncheon of the newly formed Prineville/Crook County Economic Development program. Economic Development Manager Jason Carr will comment on first year successes and discuss what’s ahead. The invitation-only luncheon is Friday, November 7, 11:30 am – 1:00 pm, at Meadow Lakes Golf Course. RSVP directly to Jason Carr or call 541-233-2015.   

November 12: Central Oregon tech groups sponsor national speaker on “Selling an IT Business”
Listen to Bob Chalfin, author of "Selling Your IT Business: Valuation, Finding the Right Buyer and Negotiating the Deal."  Chalfin will offer practical suggestions for tech companies to build into their business plans before they consider selling their company – oftentimes an afterthought.  Chalfin is an attorney, CPA, lecturer in management at The Wharton School of the University of Pennsylvania, and consultant. He served on the board of Bend-based Orcom in the 1990s. The event is Wednesday, November 12, 12:00 – 1:30 pm, at McMenamins Old St. Francis School, Father Luke’s Room. The event is FREE for SAO, EDCO, COWPU, SOISUG, WoTech and BendTech members and $15 for non-members. Find more information. 

November 12: Tompkins Consulting Breakfast briefings - new legislation surrounding domestic partnerships
In February of 2008, Chapter 99 of HB 2007 took effect giving domestic partnerships comparable benefit coverage to those of married couples. Join Tompkins Consulting on Wednesday, November 12, 7:30 – 8:30 am, for an in-depth examination of the act and what employers need to know regarding its relationship to federal programs. Because seating is limited, please register in advance by calling 541-749-9982 or email craig@tompkinshrgroup.com. Cost is $10.00 per session and includes coffee and breakfast items.

November 12: Opportunity Knocks presents “Marketing Outside the Box”
This seminar is packed with information about untraditional marketing approaches, social media, and doing PR on the internet. Speakers include Jeanne Fitzmaurice, founder of Design-her Gals, Peter Levitan, President of Citrus, and Renee Davidson, Owner, grassrootsPR.  The event is 11:15 am – 1:30 pm at The Phoenix Inn in Bend, costs $30 for OK members and $45 for non-members; lunch is provided. Register online or call 541-318-4650.  

 James A. Ullman, Esq. Shareholder at Greenberg Traurig, LLP (franchise attorney)

If you have specific questions for our PubTalk panel, please send them in advance to dayna@edcoinfo.com. 
 

Let’s Make A Space - Bronze
Assembling a team of young, creative designers and craftsmen, Let’s Make A Space is pursuing an environment which makes interior design and home remodeling a pleasant, fun experience for their clients.  With a totally local spin, Let’s Make a Space pulls from the best of such HGTV and TLC makeover shows as Divine Design, While You Were Out, and Trading Spaces.  They design each space down to the last detail -- candles on the tables and fresh flowers on the mantel. In addition to the company’s interior designs, Let’s Make A Space has just announced the Grand Opening of their first retail location. The store will debut Eco-Art, a line of earth-friendly artwork, concrete sinks and tubs, and the company’s new paint line, "Let's Paint a Space!"  It's solvent free, contains zero vac, and has a non-polluting finish which meets the MPI Green Performance™ standards.  Visit their new space in the Cascade Village Shopping Center or go online.