eCon Update - September 2006

Issue 9, Volume V

EDCO WINS TOP ECONOMIC DEVELOPMENT WEBSITE FOR OREGON

During its annual conference held September 10 through 12, 2006, the Oregon Economic Development Association (OEDA) presented its 2006 Awards of Excellence in Economic & Community Development.  Among the winners in six award categories was www.edcoinfo.com in the Best Web Site for Economic Development category. “The strategic thinking put into this new web site is paying dividends for the Central Oregon region,” said Steve Vincent, president of the OEDA board of directors. “There is no doubt that EDCO is a very deserving recipient of OEDA’s 2006 Award of Excellence.”  The new EDCO web site, which was launched in 2005, has proven to be an effective information source for companies, business leaders and site selection consultants seeking information about the Central Oregon region for relocation and/or expansion.  The web site averaged 29,000 visitors and 70,000 total views per month during the 2005 – 2006 fiscal year.  The site is powered by Bend-based software firm Alpine Internet Solutions.  EDCO Executive Director Roger Lee credits Meg Thompson, the organization’s former Marketing Manager, for receiving the award and the important role the web site plays in the region’s business marketing efforts. 

---

NATIONAL ‘BUSINESS OF INNOVATION’ SEMINAR COMES TO BEND OCT 4th

With no scheduled Central Oregon PubTalk for October (due to Industry Week and BVC) there is a “substitute” event to be held October 4th, from 5:00-7:00pm at the Deschutes Brewery Mountain Room.  This free seminar, produced by Washington, D.C. based Innovators Network, will focus on how entrepreneurial companies can leverage their intellectual assets to raise capital, develop partnerships, and create new streams of revenue.  Speakers will include: 

• Andre Carter, Author and President of Irimi Corporation – Irimi is a management consulting firm for start-up information technology companies.  Andre is the author of a book on IP strate¬gies for small firms in the IT sector published by Managing Intellectual Property Magazine.
• Mike Sax, President and Founder of Sax.net -- Mike Sax leads the strategic direction and operational execution of Sax.net, a leading provider of communications tools and components for Fortune 1000 companies.
• Robert Stout, Special Counsel at Ball Janik -- Mr. Stout has represented clients in numerous industries, ranging from hi-tech start-ups to public companies, in general business matters, securities law compliance and complex business transactions, such as joint ventures and technology licensing.
• Douglas Hancock, Ipsolon Partners -- Mr. Hancock has extensive experience in all aspects of patent law, including preparing and prosecution of U.S. and foreign patent applications in a wide spectrum of mechanical and electromechanical arts, PCB testing equipment and interconnects, agricultural and biological sciences, and printer arts.

For more information and to RSVP (required) please contact Dayna at 388-3236 or via email at dayna@edcoinfo.com. 

---

2006 INDUSTRY WEEK JUST AROUND THE CORNER 

Now in its third year, 2006 Industry Week (October 16-20) is nearly upon us. Initiated in 2003 by EDCO, Industry Week continues to build momentum in recognizing and showcasing the significant contributions made by the traded-sector employers (manufacturers, technology-based companies and other businesses that export a majority of their goods and services outside the region) in the tri-county area.  The following is a schedule of events for Industry Week. For details on each event, please click here or see the Industry Week insert in the next issue of Cascade Business News.
 
Industry Week Overview:

Monday, October 16	Bend Roundtable- Bend
Tuesday, October 17	Malcolm Baldrige Performance Excellence Symposium - Bend Business Summit - Aeronautics Sector LaunchPad Innovation & Technology Expo – Bend Airport
Wednesday, October 18	Best Practices- Understanding your Financial Statements- Bend  Prineville Roundtable- Prineville Redmond Roundtable- Redmond
Thursday, October 19	EDCO Annual Awards Ceremony- Bend Madras Roundtable - Madras
Friday, October 20	Bend Venture Conference - Tower Theater- Bend

---

SNAPSHOT OF THE TRI-COUNTY REGIONAL ECONOMY

While there are definite signs of softening in the residential real estate market, EDCO is forecasting that the fundamentals behind the past 15 years of uninterrupted growth in the region (namely that people simply want to live here) have remained unchanged.  It was clear that residential real estate appreciation rates over the past two years were unsustainable, and a national correction or slowing was inevitable.  Investors began leaving (or trying to leave) the Central Oregon market in volume six to eight months ago, which has ballooned inventories.  EDCO believes that a cooling of the regional housing market was essential to retain affordability in the region and to allow cities to catch up by adding more land to their urban growth boundaries.  We also believe that this softening of the market will be short lived, again, because the fundamentals behind the trends have not changed – the region still remains a very attractive area for people to live, and job growth continues to be very strong.   

Population statistics bear out this fact.  Three of the top five fastest growing counties over the past five years are in our region - Deschutes is #1 (+24.4%), Crook is #2 (+18.7%) and Jefferson # 5 (8.4%).  Among incorporated cities with populations over 20,000, during the same period, Redmond was the state’s fastest growing (+32.6.0%) followed by Bend (+26.0%), while Hillsboro was a distant third with a 14.4% growth rate.  Meanwhile, Sisters grew by 42.2%, Culver by 21.4% and Prineville by 19.0%. 

To provide some perspective about what these trends mean on a statewide basis is that it is expected that the population in Redmond will exceed that in Klamath Falls, Newberg, Milwaukie, Roseberg, and Ashland next year.  Within five years, Redmond will be among the top 20 largest incorporated areas in Oregon.  Bend will likely pass Medford, Hillsboro and Beaverton to be Oregon’s fifth largest city by 2012.   

Remarkably, in the period between 2000-2004, the tri-county region of Central Oregon created more new net jobs than all the rest of Oregon’s metro areas combined.  In August (the most recent data available), Deschutes County hit a 50-year low unemployment rate of 3.9%, which was the lowest, by far for any of Oregon’s 36 counties and well below the U.S. average of 4.7%.  Crook County had a 45-year low of 5.0%, which was one full percentage point below this time last year.  Despite the region’s incredible population expansion, job growth in the past three years has actually outpaced population growth for residents of working age.  Interestingly, Central Oregon has a very high “fertility rate” (birth rate) among all race groups as demonstrated by the fact that nearly 11,000 babies were born in the tri-county area the past five years – more than twice the total population of Madras.  Clearly, these new residents are many years away from entering the workforce.

To summarize, EDCO believes the Central Oregon economy is still on solid ground.  Some cooling in the housing and construction markets could actually help with employment in other sectors such as durable goods manufacturing, which has been experiencing labor shortages in recent years.  EDCO remains committed, as it has for the past 25 years, to helping build a strong and sustainable economy in the tri-county area.   

---

IMPORT/EXPORT TRANSPORTATION & CUSTOMS BROKERAGE WORKSHOPS AVAILABLE FOR BUSINESSES

A four-hour “Basic Training Class” will be offered periodically in the region by Expeditors, one of the largest global logistics companies.  The focus of the workshop is on import and export transportation as well customs brokerage.  Topics covered include: freight options (air vs ocean freight), packaging, insurance, compliance, letters of credit, and other pertinent issues associated with import and export of products.  Cost of the event is $45 and includes lunch and a reference manual.  For more information about the next workshop, contact Brian Mann at 503-254-3707, brian.mann@expeditors.com, or Tiffany Sargeant at 503-419-2005, tiffany.sargeant@expeditors.com.   

---

EXPORT STRATEGIES SEMINAR FEBRUARY 20, 2007 IN SALEM

In case you missed the September 26 session in Bend, another session will be offered in Salem on February 20, 2007.  The US Department of Commerce, US Export Assistance Center, US Small Business Administration, and Small Business International Trade Center will host a full-day, four-part seminar with emphasis on: Developing an Export Plan, Identifying and Selecting International Markets & Partners, Pricing & Payment Options and Export Shipping and Export Compliance.  This seminar will give you the tools, resources and reference material to grow into new markets!  For more information, contact Trade Specialist Jennifer Woods at: jennifer.woods@mail.doc.gov or 503-326-5290.

---

DON’T FORGET TO REGISTER FOR THE 2006 BEND VENTURE CONFERENCE (BVC)

The 2006 BVC is shaping up to again be a premier event for seed and early stage investment opportunities in the Pacific Northwest. An experienced group of investors have been chosen to serve on the Investor Panel to evaluate the business plans of six companies selected from the field of applicants. The finalists will be announced soon, so be sure to check out www.bendvc.com on October 5 for complete details. And don't forget to register -- this year’s event will be packed with inspiration and opportunity as conference attendees will be able to make contacts with new prospects, visit with current clients and learn more about the emerging early stage company environment in Central Oregon. The 2006 BVC will be held on Friday, October 20, 8:30 am - 4:30 pm at the Tower Theatre. Register online at www.bendvc.com.

VENTURE NW SLATED FOR OCTOBER 25th IN PORTLAND

The week following BVC, Venture Northwest (formerly Venture Oregon) will be holding it’s annual gathering of venture investors and promising early stage companies in downtown Portland.   This event is no longer just for Oregon companies as demonstrated by the fact that five of those presenting are from Washington.  The list of finalists selected to make presentations include: 

In addition to company presentations, Venture NW also features four separate events before the conference just for the VCs -- a morning at OHSU discussing technology spinouts; an afternoon at Nike with the President of Nike Golf and several product development and marketing VPs, talking about innovation and entrepreneurship within Nike; a reception at the Portland Art Museum hosted by Intel Capital; and a breakfast meeting/keynote with Steve Pawlowski, CTO of Intel's Digital Enterprise Group, the morning of the conference. The goal is to bring as many investors from out of state as possible to showcase all the Northwest has to offer, and the early signs are that a many of them will be coming.  For more information, visit https://www.oef.org/events/vnw or call the Oregon Entrepreneurs Forum at 503-222-2270. 

---

REDMOND AIRPORT PASSENGER GROWTH RANKS AMONG FASTEST IN THE NORTHWEST

Passenger traffic at the Redmond Airport continues to outpace the northwest region and U.S. averages as demonstrated by recent figures released by consultants Mead & Hunt.  Overall, passenger activity at airports in Oregon, Washington, Idaho, Montana, Colorado, Utah and Wyoming grew at a rate of 4.9% over the year ending March 31.  Meanwhile, Redmond’s passengers grew by 22.4% - the fastest growth by far of the region’s 20 largest airports.  Redmond made history this August when 22,380 passengers flew into and/or out of the Roberts Field terminal.   This monthly total equals approximately the same number of passengers on an annual basis using airports in Klamath Falls, OR; Walla Walla, WA and Friday Harbor, WA.  Given current passenger growth rates, Redmond’s activity will surpass that of currently larger airports in Kalispell, MT; Aspen, CO; and Vail, CO within the next 12 to 24 months.  By the end of 2008, the Redmond Airport terminal will expand from its current footprint of roughly 33,000 square feet to 130,000 square feet, which will pave the way for additional destinations in the future.   

---

HRACO CAREER FAIR LAST WEEKEND BILLED A SUCCESS

The tallies are in and by all accounts the recent job/career fair held on Saturday, September 23rd, has been deemed a resounding success by participating companies.  Thirty-one employers participated at the event, which was held at the Riverhouse, and more than 325 qualified candidates attended the fair.  Employers were pleased with both the quantity and quality of applicants.  “Attendees came armed with their resumes, dressed for interviews and ready to apply for jobs,” noted Sherry Vernato, HR manager with Bend Garbage and a member of the Human Resources Association of Central Oregon (HRACO) which organized the event.  Given the results of the job fair, organizers are already looking to future events.  For more information about HRACO and its efforts, visit www.hrcentraloregon.org. 

---

WORKFORCE EXPERT SHEDS LIGHT ON NATIONAL, INTERNATIONAL TRENDS 

Maryann Billington, the keynote speaker for a sold-out workforce forecast breakfast produced by the Central Oregon Workforce Investment Board and held on Sept. 14th, shared some interesting insights about what is happening in the workforce in other states and countries – noting that Central Oregon is in a much better position than most places.  She outlined demographic trends in Europe, Asia, North and South America which all point to a global workforce shortage over the next 10-35 years.  In the U.S., this translates to approximately 10 million workers.  Billington also noted generational differences that are important for companies to be aware of, predicting that those that are and can adapt will win in an increasingly competitive marketplace for talent.  To view the presentation slides, click here. 

---

MANUFACTURING TRAINING GRANT ANNOUNCED

Oregon Governor Ted Kulongoski announced grants of $499,962 to strengthen partnerships in workforce training.  The grants will go to the Northwest High Performance Enterprise Consortium (HPEC) to increase manufacturing productivity, cost savings, and workforce preparation.  HPEC, along with the Oregon Manufacturing Extension Partnership (OMEP), plan to use the grant money to improve regional manufacturing training around the state, including Central Oregon.  The strategy will build a pipeline of highly skilled workers for the estimated 50,000 - 60,000 manufacturing job openings across industry clusters in the next seven years.  Last year, manufacturing jobs in Oregon increased 0.7%, and by 3.5% in Central Oregon while nationally this sector declined by 1.0%.  To learn more about this critical initiative and the plan for implementation, contact Julie Hatten, NWHPEC Project Manager, at julie.hatten@escocorp.com. A downloadable copy of Oregon’s Manufacturing Workforce Strategy can be found at http://egov.oregon.gov/WORKSOURCE/sos/docs/manufwkfcrep_final_12-22-05.doc.
 
Locally, support for workforce training takes the form of the Employer Workforce Training Fund, administered by a local board of both economic development and workforce development representatives. This regional fund provides training dollars to companies to support the retention and increase of living wage jobs, the development of a skilled workforce, and the growth of competitive businesses in Crook, Deschutes and Jefferson Counties. The emphasis of the funds is to upgrade skills of the private sector workforce in order to increase productivity, to keep Central Oregon businesses viable and competitive, and to offer new skills and opportunities to Central Oregon workers.  Interested primary/traded sector employers should contact Bud Prince (Redmond Economic Development) 923-5223 or Eric Strobel at EDCO 388-3236 to receive a straightforward, easy-to-complete application.

---

COALITION BUILDS ADVOCACY FOR MANUFACTURING IN OREGON

The Manufacturing 21 Coalition is an industry-led state coalition determined to create a highly skilled workforce and to increase the capacity for applied research and development to support manufacturing companies. Manufacturing 21 was formed two years ago because many companies feared that the workforce training and applied research and development resources within uur state were unstable.  The Coalition’s mission is to stem and ultimately reverse these disturbing trends.  MFG 21 accomplishments include securing funds from the Defense Department, building awareness of the importance of manufacturing to the state economy, helping to shift existing workforce development funds to manufacturing and finding a place in proposals for Oregon’s 2007 legislative session which lead to a strategic manufacturing plan that helps grow the manufacturing sector and train Oregon workers to maximize productivity, innovation and global competitiveness. For more information, contact Norm Eder at norme@cfmpdx.com or 503-802-4101.

---

BEND 2030 ACTION PLANNING IN PROCESS

Bend 2030 has started on Phase II action planning in which the vision will be translated into specific action items and a 5-year action plan. Please contribute to making the Bend 2030 vision a reality by suggesting specific actions through a survey. All suggestions will be provided to the action teams responsible for building the final action plan.  For more information, visit www.Bend2030.org.

---

THANK YOU TO RENEWING EDCO MEMBERS!

A new section to the eCon Update, we are now recognizing renewing members to EDCO, many of which have been longstanding supporters of the organization. Our success is very much dependent on your ongoing investment in our efforts to build a strong, vibrant and diversified regional economy!  
  

Level Company Member Since Platinum Cascade Healthcare Community 1996 Financial Columbia River Bank 1996 Premier West Bank 2005 Bronze Bend Tarp & Liner 2004 Century Insurance 1997 Jones & Roth 1996 R & H Construction 2005 Shilo Inn Bend 2005 Individual Coldwell Banker First Resort Realty - Toni Williams 2006

WELCOME NEW EDCO MEMBERS!

INDIVIDUAL LEVEL MEMBERS

Toni Williams, Coldwell Banker
A graduate of Clemson University in South Carolina, Toni Williams holds a Bachelor of Science in Marketing. Prior to entering the real estate field, she worked in the securities industry for nearly 10 years as an operations manager and licensed sales associate.  Williams discovered Central Oregon back in the 1970's and fell in love with this area immediately, and one of the greatest joys of her profession is to help others realize their dream of calling this area home.  Toni serves her customers from Coldwell Banker’s Sunriver office, which provides full-service brokerage.  For more information call Toni at 410-7292. 

---

MEMBER SPOTLIGHT

An EDCO member since 1997, Sunriver Resort is one of Oregon’s most recognizable resorts.  Where Sunriver Resort sits now was some 60 years ago the home of Camp Abbot, where major training exercises were carried out by the Army Corps of Engineers during World War II.  Construction on Camp Abbot’s Officer’s Club - today The Great Hall - began in October 1943 and was completed six months later.  Sunriver Resort’s accommodations include 209 Lodge Village guest rooms and suites complete with wood-burning fireplaces and private decks and more than 400 vacation homes and condominiums, ideal for families and larger parties. A recreational paradise, Sunriver Resort boasts 54 holes of championship golf, 28 tennis courts, 35 miles of paved bike paths, three swimming complexes, horseback riding, a marina with kayak and canoe rentals and fly fishing.

Sunriver Resort’s community involvement is extensive and includes yearly contributions to SMART (since it’s inception in 1990), Habitat for Humanity, and in 2005 it matched associate contributions dollar for dollar for United Way with a total of $15,734.   It is also a sponsor of the Sunriver Music Festival, The High Desert Museum, and hosts several community events such as the Wonderland Express and Grand Illumination.  The resort’s associates are involved in over 160 local activities which range from Chambers of Commerce board members, youth coaches and other charitable causes.  Resort Manager Brian Hughes recently joined the EDCO board as a liaison between the region’s economic and tourism development efforts.  For more information, visit www.sunriver-resort.com. 

---

PENDING RECRUITMENT PROJECTS

Without breaching obligations of confidentiality, we want to make you aware of a few of our pending projects for the region.  EDCO’s current portfolio of active projects include 22  recruitment projects and 30 retention/expansion projects (local traded sector employers).  They include, but are not limited to:

• Two large-scale industrial projects are looking at locations in the Central Oregon region that offer good transportation access (rail & highway) and access to utilities.   Both companies are currently focused on sites in Crook County, so  EDCO is working with leaders in Prineville and Crook County to work out logistics on these exciting projects, which combined would total more than $250 million in new capital investment and hundreds of new, high-paying jobs. 
• EDCO responded to a new lead this month for a company serving the national building products industry for a new manufacturing plant and distribution facility in Prineville. The company will create 8-10 jobs initially and could grow to as many as 50 employees – nearly all at wages above average for the region.
• A custom furniture manufacturer is seriously considering a move from northern California to Bend.  The owner would like to purchase an existing 4,000-8,000 sf building or purchase approximately ½ acre to build new, but is finding very few options in existing industrial parks.   EDCO is working to help find an infill lot or other non-traditional parcel that could meet this company’s needs.   The company will initially employ 4-5 craftsmen at above average wages.  Please contact Roger Lee or Eric Strobel if you know of any available properties. 
• Greatoutdoors.com is now occupying it’s new, 35,000 sf administrative center and distribution warehouse in Redmond near the airport.  The company is currently in the Kirkland, WA area, and will be shifting a significant portion of its operations to Redmond over the coming year.  EDCO worked with the company over the past 18 months to deliver a comprehensive incentive package and address cost comparisons with other locations in the West.  For more information about job openings or the company, visit www.greatoutdoors.com.
• Davenport Power, an independent electric power company that owns and operates clean power and renewable energy projects, is moving forward seriously on development of a new geothermal power plant in southern Deschutes County. The company specializes in developing early stage geothermal opportunities that sell power to utilities under long-term contracts. The project is still in its early stages but could involve an investment in excess of $100 million and at least 30 well-paying positions.  EDCO has been working with the company over the past six months on identifying incentives and local development strategy.   
• EDCO is working with a software company based on the East Coast that is considering relocation to the Central Oregon area.  The company currently employs 10 people, mostly in technical positions, and has customers nationwide.  We are researching how the company could access the regional workforce for software engineers and technicians as well as investigating office space options.    

---

PENDING RETENTION/EXPANSION PROJECTS

• A specialty machining company in Bend is looking to relocate and expand to Redmond.  The company has outgrown its current space and is looking to construct or occupy a 20,000 sf fabrication shop and warehouse.  The company would prefer an 1 ½ acre site, and will employ approximate 20 people as a result of the expansion. 
• EDCO is working with a small manufacturer in the region that is looking to rapidly expand its operations in order to supply greater volumes of product nationally.  This expansion will require additional manufacturing, packaging and warehouse space and hiring of roughly 20 more employees. 

---

FEEDBACK

We would love to hear your thoughts and comments about this electronic newsletter and ways to improve it. Just fire back a response.  Once again, thank you for your support and interest – we are working hard to make the most of your contributions to help strengthen and diversify the regional economy!

Archived issues of EDCO's monthly email newsletter are now available online. Click on the links below to view our past eCon Updates:

August 2006 | July 2006 | June 2006 | May 2006 | April 2006