eCon Update - October 2006

Issue 10, Volume V

SUCCESS OF INDUSTRY WEEK 2006 PROMPTS CREATION OF INDUSTRY MONTH FOR 2007

The tallies are in and this year’s Industry Week saw a record number of attendees to 10 coordinated events around the region.  Business Roundtables in Bend, Prineville, Redmond and Madras were successful in engaging the private and public sectors on key issues.  Some Roundtable issues raised last year saw considerable progress being made in the areas of workforce drug use (Meth) for Prineville and a troublesome permitting (building, land use) processes in Redmond.  Workforce availability and quality surfaced as a common theme with all roundtables, as did the lack of affordable workforce housing.   Other key issues included transportation (goods and employees), skills training and child care.  

Produced in coordination with Opportunity Knocks (OK), the Malcolm Baldrige Performance Excellence Symposium was attended by more than 60 people representing over 30 companies, which were drawn by keynote presentations made by Boeing and the Ritz Carlton, both national award winners in the program.  OK also held a separate workshop on reading and understanding financial statements. 

LaunchPad set up in the Columbia Aircraft showroom at the Bend Airport, and while attendance was a bit lower than last year, the program was outstanding and two dozen local technology-based companies displayed their wares. 

The EDCO Annual Awards were bigger and better than ever this year, with a 20 minute, custom-produced video that showcased the breadth and depth of traded-sector employers in the tri-county area.  We are in the process of having the piece modified for use on the EDCO website.  Eric Alexander was this year’s private sector “Person of the Year”, while Nick Lelack and Rick Allen shared honors for the top public sector leaders in 2006. 

The Bend Venture Conference rounded out the week, with an excellent showing of approximately 225 attendees.  Bend entrepreneur Ed Boyle, with Micro-Flow Catheter Solutions took home the grand prize of $100,000 of angel investor capital for his innovation in medical tubing. 

Again, because of the success of each of these events and the interest (but difficulty) in attending them all within a one-week timeframe, EDCO will be extending the program to four-and-a-half weeks in October 2007.  Each week will feature 2-3 high-quality events.  For more information or to learn about sponsorship opportunities, contact Dayna at 541-388-3236 or at dayna@edcoinfo.com.  

FOUNDATION AGAIN RANKS OREGON AS ONE OF NATION’S BEST TAX CLIMATES

For the past number of years, Oregon has been ranked among the top 10 most favorable business tax climates in the U.S. by the Tax Foundation, a Washington, D.C. based organization established in 1937.  In their 2007 report, Oregon was ranked #10, slipping slightly from previous listings at #8 and #9. The index, which has been published for the past decade, is an exceptionally interesting resource on the significance for business of state and local taxation.  In keeping with the Foundation’s libertarian roots, the comparison favors tax systems which are simplified (i.e. no sales or income tax) or which are flat rates or otherwise have some degree of neutrality.  In keeping with EDCO’s business development experience over the past 25 years, neighboring California ranked very near the bottom at #48, which translates into fertile ground for recruitment.  Oregon is not alone; however, in its quest for companies seeking a more favorable tax climate, Nevada was ranked #4, Montana #8 and Washington #11.  For more information about the study, visit http://www.taxfoundation.org/.      

OEF TO OFFER WORKSHOP FOR NEW ANGEL INVESTORS

Ever have an interest in investing in entrepreneurial ventures, but don’t know where to start?  OEF and its Women’s Investment Network is bringing an educational program to Portland at the 5th Avenue Suites that has been presented in more than 50 U.S. cities about the dos and don’ts of equity investing.  Titled the “Power of Angel Investing”, this seminar was developed by the Kauffman Foundation with content provided by angel experts around the country.  The all-day workshop is limited to 25 investors and cost is $125.  For more information, click here or contact OEF at (503) 222-2270.

FDIC REPORT HIGHLIGHTS BEND AMONG FASTEST JOB GROWTH MARKETS IN U.S.

If you thought what is happening in Central Oregon is occurring everywhere else, think again.  Earlier this month, the Federal Deposit Insurance Corp. (FDIC) issued a report which listed Bend as the 35th fastest-growing job market in the U.S. for Q2 of 2006.  With 4% job growth for the quarter, it was the fastest growing in Oregon, which overall was 3.6% for the same quarter.  The study also revealed that Bend now ranks fifth in the state for total deposits in financial institutions.   New banks and branches in the tri-county market have helped boost this status, and more are planned for the next 12-18 months.  Some worry about the risks posed by the recent slowdown in the housing market, however business activity in other sectors of the region’s diversified economy appears robust as ever.   For more information about the FDIC study, visit:  http://www.fdic.gov/bank/analytical/stateprofile/SanFrancisco/OR/OR.xml.html

CENTRAL OREGON UNEMPLOYMENT RATES DROP FURTHER

As expected, the region’s jobless numbers for September came in lower than records set in August.  Deschutes recorded a monthly unemployment rate of just 3.7%, while Crook County was 4.4% and Jefferson 4.8%.  This marks the first time in more than 60 years that the entire tri-county area unemployment rates were below 5%.  Crook County’s rate was 1.2% less for the same month last year and Deschutes was just shy of one point.  Jefferson’s was 0.5% lower.  According to local employers, the numbers are not lying – workforce has topped the list of concerns for six months as the region grapples with the effects of “full employment” for the first time in several generations.  Meanwhile, Oregon’s job growth has been among the nation’s best over the past year, but with a statewide unemployment rate of 4.8%, the tri-county region is doing more than its part in strengthening the Oregon economy.  But what does the future hold?  Expect a trend of higher jobless rates in Central Oregon (which is natural for this time of year), but perhaps slightly higher levels than last year.  Residential construction is expected to taper off from levels over the past two years, and as a result, more people may be looking through the classified ads. 

ONE-STOP WEBSITE FOR FEDERAL BUSINESS/COMPLIANCE ASSISTANCE LAUNCHED

Need help with federal compliance issues?  Answers to these questions just got easier with the launch of a newly created website, which has “extensive information on taxes, immigration laws, workplace safety, environmental requirements and other regulations that can present challenges for small and mid-sized businesses,” according to an agency press release.  The goal of the website is to help business owners cut through red tape and to reduce barriers to compliance with federal requirements.  The site is managed by the Small Business Administration (SBA) in partnership with 21 other federal agencies. For more information, visit the site at www.business.gov.

PACIFIC POWER RANKED AS #1 U.S. INDUSTRIAL & COMMERCIAL POWER PROVIDER

For the third year in a row, PacifiCorp has been rated first in the nation for exceptional performance by its large commercial and industrial customers.  The ranking was done by independent national research firm TQS Research, based in Atlanta, GA.  The survey showed that 92.6% of PacifiCorp’s industrial customers were “very satisfied” – a percentage that beat out 60 other utilities nationwide.  Criteria used in the survey included: electric reliability, power quality, pricing and rate structure, energy efficiency, and customer service.  According to TQS, it is the first time that a utility has been ranked first for three straight years since the study started 12 years ago. 

ENERGY SUMMIT SCHEDULED FOR DECEMBER 13th

A national seminar on power policy and innovation is coming to Portland December 13th.  Keynote for this all-day summit is David Garman, Undersecretary for the United States Department of Energy.  Other speakers include Phil Moeller with the Federal Energy Regulatory Commission, Ray Stults, Associate Director with the National Renewable Energy Lab and Mike Grainey, Director of the Oregon Department of Energy.  The seminar, which will be held at the Oregon Convention Center, will cover the latest innovations in fuel cells, bio-fuels, wind power, NextGen nuclear, ocean wave technology and advanced solar.  For more information, contact Patrick at patrick@ngrc.com or 503-956-2976. 

PUBTALK RETURNS NOVEMBER 9th WITH KEYNOTE GARY FISH, FOUNDER OF DESCHUTES BREWERY

Where:   McMenamin's Old St. Francis School – Fr. Luke’s Room - Downtown Bend
When:    Thursday, November 9th, 5:00 – 7:30 pm
Cost:      $15 for EDCO; $25 for non-members

Get ready for the ultimate PubTalk speaker!  One of Central Oregon’s most successful entrepreneurs, Gary Fish has built one of Oregon’s most recognizable brands – Deschutes Brewery.  Its beginnings were both simple and brash back in 1987 when he opened the Deschutes Brewery & Public House in Bend – back when microbreweries were almost unheard of and Bend was a “Budweiser town”.  In its first year of business, the pub produced roughly 800 barrels of beer – a fraction of the 150,000 barrels it produces today.  Gary’s humorous presentation of the history of his craft and climb to success will provide many excellent and memorable lessons for entrepreneurs and seasoned business owners alike. 

This month’s PubTalk also features a presentation by early-stage company Kaibridge, (www.kaibridge.com) producer of software which gives unprecedented control to animators and game designers to create the most realistic 3D digital animals at a significantly lower cost than traditional animation techniques.  The company’s team is lead by Daniel D. Mayhew, with 20 years of management experience in technology and start-up companies, and Kent A. Stevens, Ph.D. from MIT’s Artificial Intelligence Laboratory, who is an inventor.

For additional information on this event, CLICK HERE, or call EDCO at 388-3236.

DAY IN THE LIFE OF CENTRAL OREGON TO BENEFIT BETHLEHEM INN

At noon on June 9, 2006, 27 professional photographers gathered at Bend’s venerable Pine Tavern to begin a visual adventure the likes of which had never before been seen in Central Oregon. Twenty-four hours and more than 9,000 images later, they completed their mission of shooting “Day in the Life: Central Oregon.”  On November 1st, this remarkable one-day record of life in our region will be unveiled by the publishers of Bend Living at the Tower Theater.  The book features a broad array of subject matter including landscapes to theatrical performances, baseball games to high-school graduations, farmers’ markets to rodeos, schools to churches, firefighters to police officers.  The best part of all is at the end of the day (no pun intended) charity is the ultimate benefactor of the project – all proceeds benefit the Bethlehem Inn Homeless Shelter.  For more information, visit www.bendliving.com or call 541.388.8182.

BEND 2030 VISIONCORP FORMS FROM PLAN

Volunteers with Bend 2030 VisionCorps are available to make presentations on the ongoing project to Bend-area businesses, non-profit organizations and their boards, professional organizations, and service groups.  The format is part formal presentation that leaves plenty of time for questions and the goal is to inform the community about the Bend 2030 Vision, and the ongoing process of taking it from ideals to real plans and actions.  Learn more about Bend 2030 at the web site, www.bend2030.org. Contact Lori Gleichman directly at 598-3942 to arrange a presentation to your group.

EDCO LEGISLATIVE COMMITTEE SETS AGENDA, GOALS FOR 2007

Following considerable internal discussion in recent years about better tracking of state legislative and administrative policy that impacts business, a new EDCO committee was recently formed. The purpose of the committee will be to provide a complete review (pro and con) and recommendation to the EDCO Board of Directors on proposed state legislation with direct or indirect influence on the state’s business climate.   The committee will also monitor and work in conjunction with other legislative efforts in region.  Volunteer members include Darrell Deglow, Cascade Appraisal Services (Chair); Angie Jacobsen, Pacific Power; Matt McCoy, COCC; Bryan Iverson, The Iverson Group; David Schlatter, Menefee & Associates, and Doug Riggs with NW Grassroots & Communications and representing COCO (Central Oregon Cities Organization) will also be involved with the committee.  For more information about this committee, please contact Dayna Dudkowski or Roger Lee at 388-3236.

CREDIT SUISSE HOSTS OREGON INVESTMENT FUND BREAKFAST NEXT IN MEDFORD

As mentioned in an earlier eCon Update, Credit Suisse, a world-leading financial services company that advises clients in all aspects of finance worldwide, hosted a breakfast in Bend in July to provide entrepreneurs with some best practices in the industry to help entrepreneurs on the path to success.  In case you missed that event, the next breakfast lecture is coming up next week in Medford, on November 7th.  The workshop covers: 

• The best business plans – the dos and don'ts
• Establishing and pitching your story to VCs 
• The right combination of funds to grow your business
  (venture, personal, banks) 
• Building value through various stages of growth
• What you need to reach Angel investors 
• Growing a successful business in Oregon

For more information or to register to attend this event, contact Jessica Stone at 503-225-0725 or by e-mail jessicas@mackenzie-marketing.com.

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! 

WELCOME NEW EDCO MEMBERS!

BRONZE LEVEL MEMBERS

Atlas Smart Homes – Graham Hausler
Atlas Smart Homes & Security uses state of the art technology for protecting your home from fire, theft and other damage.  They use sophisticated, recessed sensors—the smallest in the industry. Hidden in door and window frames, wireless sensors can detect intrusion, motion, glass breakage, smoke, extreme heat, carbon monoxide or water damage.  Atlas also integrates a home’s wiring by providing high-speed internet, digital and/or cable in any room, home theater surround sound, music, phone, computers, and security all from one remote!  Contact Graham Hausler for more about the company at 541-382-7777 or visit their showroom in Bend.
 
Mentor Research Institute – Kevin Rea
Mentor Research Institute develops automated "intelligent" online information processing and interaction systems. The core software technology consists of a proprietary system that allows individuals to provide information online and to receive automated expert advice and written reports. Mentor Research’s first application, StepOne for Parents (TM), was created to support parents who are dealing with children who are "at-risk" for mental health and substance abuse problems. This tool has proven to be a reliable, valid, useful and cost effective screening and intervention tool for parents, health care and mental health professionals. MRI is seeking business opportunities that can develop for-profit market applications using of our technology. For more information, contact Kevin Rea, 541 390-9848.

INDIVIDUAL LEVEL MEMBERS

First Horizon Home Loans - Vicky Malmquist
With more than 13,000 employees located in more than 40 states, First Horizon National Corp. (FHN) provides financial services through hundreds of offices. From its roots as a small bank in 1864, the corporation has evolved into one of the nation's most respected bank holding companies today in asset size and market capitalization. Vicky Malmquist brings over 28 years of industry experience in banking and lending to her customers in Central Oregon.  Vicky is a licensed mortgage lender and specializes in One-Time Close construction loans, as well as helping first-time homebuyers secure the right financing.  Call Vicky at 541-633-1559 for more information about First Horizon’s products.   

MEMBER SPOTLIGHT

An EDCO member since 1996, Eberhard’s Dairy Products was founded by Jack and Nelda Eberhard in 1951.  Today the business is run by second generation Bob Eberhard and third generation Mark Eberhard.  What began as a two-employee cream buying station is now the only processing dairy east of the Cascades and which currently employs 48 people.  Within the last two years, additional property has been purchased to position Eberhard’s for their expected growth in Central Oregon.

The facility has expanded numerous times since 1951, and now covers an entire city block.  They process their own brand of milks, egg nog, cottage cheese, creams, sour cream, and ice cream.  In April of 2005, Eberhard’s dairy farmers signed an affidavit stating that they will not use the growth hormones RBST or RBGH and customers have responded positively, resulting in increased sales.  Be sure to keep an eye out for Moo Moo Belle, winner of Eberhard’s popular “New Mascot” contest, on new company labels and trucks.  

NEW & EXPANDING BUSINESSES IN THE REGION

In place of our regular report of pending recruitment and retention/expansion projects, we are providing a list of companies recognized for their new investments and job growth at the EDCO Annual Awards on October 20th.   EDCO has played a role in helping new companies move to the region as well as many (not all) of the expansions noted.  While the sheer number of traded-sector companies (manufacturers & tech-based firms) listed below that are new or have expanded in the past year is remarkable, we recognize that the list below represents only a partial summary of business activity over the past year.

Silver Creek Woodworks, a high-end cabinet manufacturer, has increased its workforce from 35 to 50 employees and monthly production has doubled due to increased demand of high-end cabinets.    

Bright Wood Corporation recently installed three state-of-the-art lumber scanners to reduce cost and waste from the cross-cutting process.

Warm Springs Forest Products is moving forward on construction of a biomass electrical generation facility fueled by wood waste from the sawmill and fuel reduction from area forestlands.

Dayspring Hardwood and Moulding, Inc. doubled its Central Oregon workforce and more than doubled its sales over the last three years. 

Pioneer Cut Stock has grown to occupy 15 acres and diversified to 5 production facilities enabling them to become a major supplier for premier window and door manufacturers around the world. 

Fuqua Home’s last year’s top line growth was 25% over the prior year, the total employee base grew to just over 300 employees, and output volume also grew a healthy 20%. 

Columbia Aircraft has grown to about 650 employees and has ramped up production to four aircraft per week.

Epic Air nearly doubled its employment from last year as the company expands to meet strong demand for its 6-seat all carbon fiber aircraft. 

Flight Line, manufacturer of air conditioning systems for the experimental aircraft industry, just announced the release of the FLRV10-14 air conditioning system for the RV10 kit plane.

Leading Edge, a premier international sales and support company, has added 12 employees in the past year and expanded its helicopter overhaul services. 

Precise Flight, based at the Bend Airport, has grown 25% each year for the past three years and has added two new employees for a total of 30.

KAWAK just completed a move into a new 6,000 square foot facility to support the expansion of its engineering and manufacturing operations. 

PV Powered has expanded its facilities and employment over the past year as it grows to meet an explosion in worldwide market demand for its products. 

Startronics Solar Lighting has experienced a sales increase of 40% over 2005 adding employment and will likely expand to a new facility next year.

Idatech’s ElectraGen™ family of critical backup fuel cell products recently were certified, a move which provides the company a platform for considerable access to the telecommunications market.      

Charlie’s Produce, the largest independently owned produce company in the Pacific Northwest, added a distribution and processing facility in Bend over the past year.

Premier Finishes, Inc. relocated into a new facility in Prineville where it produces a line of sealers, primers, inks and indoor prep-coats for the industrial coatings industry. 

Earth 2O, located in Culver, continues to grow with a new marketing campaign and is planning for expansion. 

Rocky Mountain Products’ continued expansion has caused the company to acquire adjacent building space and now is embarking on its own new building in which they plan to add up to 20 new employees to keep up with the demand for their products.

Fluid Images, manufacturers of the world’s longest camera cranes, recently developed Captive Media Solutions, an ultra-widescreen display medium for entertainment, advertising and marketing. 

Keith Manufacturing developed a new dock-to-trailer system to automatically load or unload cargo in the warehouse environment and a system for moving pallets.  This and other products are driving growth of the company’s 62 acre site in Madras. 

Dani Bath has grown dramatically at a rate of 20% each year, has added 16 new products and is looking for expansion of its facilities in 2007.

Breedlove Guitars is experiencing explosive growth due to the addition of its Atlas line, which has driven a need to hire three new employees and a forecast of ten more within six months. 

Mill Power, based in Prineville, recently completed the single largest order in the company’s history, a project that required nearly 20,000 man-hours in fabrication and engineering. 

Nosler, based in Bend, recently completed a warehouse expansion, adding 40,000 square feet - nearly doubling the size of their facility. 

True Line Steel, celebrating ten years in Central Oregon this October, moved this summer from leased property in Redmond into their own new building this year.

Structus will have a new home by early 2007. The company is consolidating its 70 employee operations in a new facility in Bend that will house both its administrative offices and manufacturing – its third facility in ten years.

Deschutes Brewery, second-largest beer producer in Oregon and sixth nationally among U.S. craft brewers, recently expanded to the Southern California and Las Vegas market ensuring an addition to their current 185 employees.

XL Management Co, a regional headquarters operation, just built and occupied a new 20,000 square foot class-A office building in Redmond where it currently employs 17 with plans to expand.

Symyx’s latest release of software designed for electronic lab notebooks was created by the core development team located in Bend which employs six and is currently adding three more positions.

Nexsys, Inc successfully closed a series A funding round and are now gearing up to expand their sales efforts.  Nexsys has hired 4 new professionals in the last month bringing total employment to 10.

Microsemi, formerly known as Advanced Power Technology, recently expanded its facility located in Bend and received a $1.8 million federal appropriation in September of 2006.

Great Outdoors.com, a leading online website for outdoor gear, clothing, and information, expanded operations to Redmond with construction of a new 35,000 sf building to house management, sales support, and distribution center operations.

Host Industries recently moved into the 55,000-square-foot former Beaver Coaches building in Bend.

Ruff Wear has added five employees to their team over the past two years, and has plans to expand their distribution center by January, 2007. 
 
MediSISS has experienced 200% growth and nearly doubled its workforce to 40 employees over the last three years at its Redmond-based operations. MediSISS is now providing refurbished instruments in 320 medical facilities in 30 states and expects to double its employment with the next 2-3 years.

PCC Schlosser expanded again this past year to its current 55,000 square feet, on a 23 acre site where it employs over 220 people, serving more than 100 customers worldwide.

Summit Anesthesia Solutions, a division of Molecular Imaging Products Company (MIP), executed an exclusive marketing and sales agreement with VWR International, Inc., one of the largest distributors of scientific reagents and products in the world. With this alliance, other sales initiatives and obtaining appropriate capital, MIP expects revenue to nearly triple in 2007.

Stevens Equipment is a manufacturer warehouse distributor of automotive lifts, wheel balancers, and alignment equipment.  They offer service to all brands of equipment, and have been proudly servicing the industry since 1972. 

Muzzys has expanded its product line to include ATVs resulting in nine new employees.    

BMC’s reputation for quality has resulted in 20% year-over-year growth and a new 12,000 square foot building completed in 2005. 

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 available online. Click on the links below to view our past eCon Updates:

September 2006 | August 2006 | July 2006 | June 2006 | May 2006