| Business News in Central Oregon |
Announcing EDCO’s new website!
The URL remains the same, but EDCO’s new website has a whole new look. Check it out at www.edcoinfo.com. You’ll find updated statistics, the latest business intelligence, case studies, an easy-to-use events calendar and sign-up. We launched two weeks ago and, other than a minor glitch with online event payment, it’s been smooth. Look for additional information as 2008 data is fully released and we add more frequently requested maps to the new “Maps” section. We love your feedback, so let us know what you like and what you don’t.
March 19 – PubTalk features keynote presenter Bill Kelly of Learning.com and early stage presenter Doug Ritchie 
Would you like to learn more from a successful tech pioneer and expert in building online communities and user generated value? Join us March 19 to hear keynote speaker Bill Kelly, co-founder and CEO of Learning.com. Kelly will share the perils of startups and mergers, how he kept Learning.com alive after the Internet bubble burst, along with his management philosophy (“someone has to lead”) and essential business philosophy (“match unexpected quality with honest value”).
Prior to starting Learning.com in 1999, Kelly co-founded Sapient Health Network, Inc., later acquired by WebMD, where he pioneered new ways in building online health-oriented communities for consumers. An advocate for revolutionizing public education with technology, Kelly is now leading Portland-based Learning.com to apply online community development in K-12 education. He holds a BA from BYU and an MBA from Harvard Business School. Visit www.learning.com.
Our e arly Stage Company is Doug Ritchie with Central Oregon Electronic Medical Records (COEMR). COEMR is the brainchild of the local Independent Physicians Association (IPA) which is very similar to the launch of Clear Choice Health Plans. In light of the Stimulus Bill and President Obama’s 17.2 B commitment to an electronic medical records conversion, COEMR is timed for rapid expansion. CEO Doug Ritchie will explain how COEMR can assist both private physicians and clinics with the software, tools and training to create paperless medical records. See www.coemr.com for more information.
REDI welcomes Risse Racing, formerly of Redding, California
Bringing up to 6 new jobs to Redmond within its first few months of operation, Risse Racing is relocating its manufacturing and assembly plant to Redmond. Manufacturers of specialty suspension components for a wide variety of industries, including bicycle, aerospace, automotive, and water sports, the company is scheduled to move next month to a 4300 square foot space across from the Redmond Airport. Wanting to be strategically located near one of their larger clients, Lancair International a manufacturer of high performance kit airplanes, owner Kevin Risse plans on expanding his business in the Central Oregon area. Those plans include developing a customer base of bicycle shops and enthusiasts regionally and further integration into the Redmond community.
REDI Manager, Jon Stark noted that Risse Racing is a great addition to Redmond’s growing base of specialty manufactures. “We were excited to assist Kevin in his decision making process by sharing the benefits of operating a business in Redmond, his companies qualification and use of the Enterprise Zone, and the dynamics of the Redmond’s lifestyle and livability”, shared Stark. If you would like to learn more about the company or their products please visit their website.
Collaboration is the theme at Bend Airport Economic Summit
Bend City Councilors, Deschutes County Commissioners, and airport businesses came together on February 10 to discuss the future of the Bend airport. The summit provided elected officials with a diverse mix of activities to raise awareness – an EDCO presentation on the importance of the airport to Bend’s economy, round table discussion on the needs of the airport, a flight tour of the airport in Leading Edge Aviation helicopters, and factory tours of Epic and Cessna. The summit was the first step in establishing improved communication and cooperation between organizations and introducing the most pressing priority – the completion of a master plan update. Apparently, the message resonated with the Bend City Council. At their goal setting workshop on February 17, the council put the airport master plan and annexation as high priorities for 2009; perfect timing to welcome Gary Judd, the new airport manager, who starts March 9. The Bend Airport Council looks forward to working with him to capitalize on the airport’s future.
Western Community Energy relocates HQ to Bend – Central Oregon wind company sees rapid growth
As proof that Oregon continues to be a national leader in attracting renewable energy companies to the state and creating green-collar jobs, Western Community Energy (WCE), a community-based wind energy developer, is already expanding its headquarters in Bend, Ore., after choosing to relocate to the state just six months ago. To see the full release, see EDCO's Home page.
Region’s Enterprise Zones in process of expanding
In the face of HB2429, two communities – Culver and Sisters - are in the process of being included in the region’s four enterprise zones. EDCO is working with both communities on navigating necessary meetings, notices and resolutions.
Culver is well on its way to being included into the Jefferson County Enterprise Zone via boundary amendment. The city would join Madras and Metolius who are sponsors of the zone along with Jefferson County. Both Culver and Madras City Councils approved the change last week and Metolius and Jefferson County have resolutions for approval this week. With the closure of Seaswirl Boats back in April 2007, Culver now has one of the largest vacant industrial buildings (180,000 sf on 29 acres) in the tri-county area. And, it’s priced to sell. “We are hopeful that the new pricing on the complex along with the enterprise zone incentive, will help lure a new major employer to Culver,” said Wayne Pearson, Jefferson County Economic Development Manager. In addition to new companies, the incentive is available to existing traded sector employers who increase employment by at least 10%. Central Oregon Seeds, Earth2O, and Round Butte all are qualifying companies with operations in Culver.
Sisters is looking to join the Redmond Enterprise Zone when its current zone designation expires in June of this year. Both cities, along with Deschutes County, are expected to sponsor the new zone which will compete with other communities statewide for one of five zones available this year. Redmond has been among the most active rural zones in Oregon. Current discussions are to have EDCO manage the zone, which had been previously done by the City of Redmond. Redmond, Sisters and EDCO staff are working toward completing the application by the April 3, 2009 deadline. Selections of the new zones are scheduled a month following with effective zone creation to happen July 1.
Central Oregon places high on prestigious Oregon Business Magazine “100 Best” List
“The competition gets tougher and best practices get tougher,” say the magazines’ editors. Which makes Central Oregon's showing that much better! In their March issue, Oregon Business Magazine released their 16th annual ranking of the 100 Best Companies to Work For in the state. Over 30,000 employees and nearly 400 organizations took part in the confidential survey process, rating their company in six categories: benefits and compensation, work environment, decision making and trust, performance management, career development and learning, and employee benefits. Below are the Central Oregon companies that placed on this influential list. New to the list are Bend-based G5 Search Marketing, Bend-based Structus Building Technologies, and Redmond-based Cascade Concrete Solutions.
| 100 Best Companies in Oregon |
| Category |
Central Oregon Companies |
Top Large Companies
(250+ employees) |
T-Mobile (rank 15) |
Top Medium Companies
(50 - 249 employees) |
Structus Building Technologies (rank 20) |
Top Small Companies
<50 employees) |
G5 Search Marketing (rank 8)
Cascade Concrete Solutions (rank 11)
tbd Advertising (rank 19) |
Industrial Development Revenue Bond rule changes applauded
Manufacturers in the U.S. have for decades had access to one of the least costly forms of business capital available – Industrial Development Revenue Bonds (IDRBs). But manufacturing has changed dramatically, and rules written for this program excluded traded-sector companies including software, pharmaceutical development and biotech from utilizing the program. The change, which was part American Recovery and Reinvestment Tax Act of 2009 (Stimulus Package) allows for companies who produce both tangible and intangible property to access IDRBs for bonds issued in 2009 and 2010. Intangible property is described as "intangible property (within the meaning tax code section 197(d) (1) (C) (iii)" which includes "any patent, copyright, formula, process, design, know-how, format, or other similar item.")
This seemingly simple provision has opened the door to several local companies that have in the past considered using IDRBs only to find that they are ineligible. While typically difficult in terms of needed paperwork and time to complete, IDRBs offer individual companies up to $20 million per jurisdiction each ($40 million total) in financing at 75-80% of market rates. Recent projects in Oregon have been funded at rates in the 4.5% - 6.0% range.
The legislation also clarifies which components of a facility may be financed by IDRBs. "Functionally related and subordinate" components are now eligible to be financed with IRDBs. The previous 25% maximum for "directly related and ancillary" facilities will not apply for new IRDBs issued in 2009 and 2010.
For more information about accessing IDRBs in Oregon, contact Clark Jackson, OECDD Business Development Officer, at 541-388-6266 or Les Livengood, Finance Officer at 503-986-0169.
HB 2429: Legislature moves to render useless Oregon’s best tool for attracting new jobs, capital investment
Sponsored by Rep. Michael Schaufler (D), HB2429 would require any firm qualifying for and using enterprise zone benefits to pay prevailing wages on construction projects of $5 million or more. At a time when Oregon is facing high unemployment, the change would impose negate the enterprise zone benefit for larger manufacturing, high-tech and other traded-sector companies. Oregon’s Enterprise Zone Program provides qualifying firms with short term tax abatements on certain new real property investments. It is an incentive available both for companies looking at the state for relocation or expansion as well as for growing companies already here.
Here’s a simple example of how this bill would render the enterprise zone as a useless tool. ACME Manufacturing is considering Redmond for a new manufacturing plant that will cost $6 million. The labor component of that construction project is $2 million. A prevailing wage requirement would increase that labor cost by 25-35%, or $500,000 - $700,000. The project now costs from $6.5 to $6.7 million. The property tax saving benefit for ACME as a result of the Redmond Enterprise Zone incentive is approximately $148,000. Use of the enterprise zone then creates a net cost of $352,000 to $552,000, making this “incentive” now a disincentive.
Redmond has one of the most active rural Enterprise Zones in the state. Had HB2429 already been a law, companies like T-Mobile and Altrec would almost certainly not be in Redmond, and Precision Castparts Corp. (PCC), which has operations nationwide, may have not chosen to invest in its Schlosser plant in Redmond, now our largest manufacturing employer. These three companies alone represent nearly 1,100 well paying jobs in Redmond.
Today, EDCO has three large-scale projects in the final stages of site selection that combined would provide nearly new 1,200 jobs and $750 million in new investment over the next few years. With the passage of this bill, we expect those projects would eliminate our region and all of Oregon, from consideration. EDCO encourages you to write or call our legislators to oppose this bill. Call us at 541-388-3236 if you need a list of contacts.
Stimulus fever: Is it economic development?
Economic times are tough. Consumers aren’t spending, companies are downsizing, and small businesses are fighting for survival. With the private sector retrenching, government spending is a sure fire way to get back on track, right? Unfortunately, empirical evidence from past national public spending sprees indicates that such strategies have a spotty record for bringing about better times. Nonetheless, Congress and our own Oregon Legislature are doing it and both with unprecedented exuberance. Last month the legislature approved a $175 million “stimulus” package for maintenance projects on for publicly owned facilities across the state.
But what about the stimulating effect of economic development (ED)? Across the country, efforts to bolster state, regional and local economies have been happening for decades. The common goals for most ED efforts are new job creation, workforce training, fostering entrepreneurship (see Venture Catalyst article in this newsletter), and helping our companies compete better on in the global marketplace. While these activities don’t produce a boost in spending overnight, they have been effective in economic resiliency both on the company and community level to better weather the ups and downs of the business cycle.
EDCO has fought to direct state, local and federal public funding to private businesses, which create the vast majority of jobs. For example, EDCO worked with the Central Oregon Community Investment Board (COCIB), to form the Business Development Opportunity Fund which provided Oregon lottery-funded grants to attract new jobs and capital investment to the tri-county area. Over the course of six years, the Opportunity Fund provided grants totaling $693,000 to 16 companies that in turn created 1,100 jobs and spent $50 million in taxable investments. Each public dollar leveraged $72 from the private sector and each full-time permanent job cost only $630 in lottery funds. Oregon made back that investment within the first year from personal income taxes paid by those employees. These private sector jobs are still here today and the investments still on the property tax rolls. That’s an ROI and multiplier rarely seen from a government investment into a public project. Despite the results here in our region, the statewide program was axed in the last legislative session.
Another example is the Workforce Response Board (WRT), which is staffed by the Central Oregon Intergovernmental (COIC). The WRT directs limited state funding toward local traded-sector employers that have training needs as an integral part of their operations. Since 1993, $1.1 million has been granted to 39 projects (companies) which have leveraged over $3 million in private expenditures, trained 2,794 people. New jobs resulting from the training total 467 and an additional 335 retained. Funding for this program remains intact, but annual allocations to Central Oregon have decreased over the years despite the results.
Ideally, our public leaders at all levels will not turn a blind eye to the role and ability of economic development to impact the national and local economy. Indeed, it is one of the very best ways to get the “biggest bang for the buck”.
A stimulus for everyone, except for domestic manufacturers
(Excerpts taken from Manufacturing & Technology News , Friday, Feb. 20, 2009)
In the $787-billion stimulus package passed by Congress and signed by President Obama there was $210 million for firefighter assistance, $50 million in for the National Endowment for the Arts, $50 million for fixing gravestones, but there was no money for one of the few programs with a solid and proven track record of saving or creating jobs: the Manufacturing Extension Partnership program. Last year local offices of MEP generated $1.3 billion in cost savings to America’s small and medium-sized manufacturers and $6.25 billion in increased or retained sales – all for a federal outlay of $89 million. A January article in Time Magazine said that Obama would double the funding for MEP but even a modest $30 million increase did not make it through conference with the Senate. Mike Klonsinski, chairman of the American Small Manufacturers Coalition and director of the Wisconsin MEP says program needs to ideally needs a tripling of its current federal appropriation for it to start having a more significant impact on U.S. durable goods manufacturers and the overall economy.
The Oregon Manufacturing Extension Partnership (OMEP), which receives about one-third of its operational funding from the federal appropriations, has tried to diversify its sources of revenue but this latest news is not welcome. OMEP has worked with more than a dozen local manufacturers in Central Oregon on implementing Lean manufacturing principles designed to reduce waste and increase productivity. Since creation of the High Desert Enterprise Consortium (HiDEC) two years ago, OMEP has worked closely with the group on pass through funding and with Lean training. Even more concerning to OMEP is the reduction or elimination of support from the State of Oregon. Federal funds must be matched two to one, and it is uncertain whether the Oregon will help the organization meet this requirement.
For more information about OMEP or read the complete Manufacturing & Technology article.
Toyota problem solving with Mike Hoseus
Mike Hoseus (standing) w/ Will Blount, Ruff Wear |
Would you like to become a better problem solver? Would you like to consider a problem an opportunity? Leading off with interesting and valuable stories from his days as a Toyota executive, Mike Hoseus led more than 70 HiDEC members and friends through a day of problem solving – the Toyota way. The full day seminar, the third in a five part series, provided a thorough look into different Toyota Way problem solving tools such as “Go and See”, “Breaking Down the Problem”, “5-Why Root Cause Analysis” and “Yokoten (Best Practice Sharing)”. Group exercises mixed with spirited discussion kept the day interesting and moving fast. Greg Hastings from Precise Flight and the HiDEC Steering Committee chair had this to say “This was Mike’s best event yet with HiDEC. He really engaged the group in Toyota culture and challenged our thinking in how we operate and solve problems within our own organizations.”
HiDEC goes to the dogs at Ruff Wear
How does a successful company that has experienced phenomenal growth in 2008 and the first part of 2009 spend its time; improving their business. HiDEC went to the dogs on February 24 for an all day process improvement event at Ruff Wear’s warehouse facility. Dave Slavensky, COO for Structus Building Technologies, led the event along with Young Joen, director of supply chain for Ruff Wear. Representatives from Ruff Wear, CORIL, American Licorice, Bright Wood, and Structus were in attendance. The group focused on the pick and replenishment process that Ruff Wear uses to fill orders and ship merchandise. The event started with an overview of Ruff Wear’s process and a primer on what the event should provide for the host company and participants.
The next step took participants through the “on-the-floor” process in which current actions are scrutinized and brainstorming of new methods to accomplish the task takes place. Communication and structure is open and flexible allowing the flow of ideas to fuel good discussion and action. At the end of the day, Ruff Wear employees drafted a new pick and replenishment process for high volume and regular volume items as well as a “parking lot list” of other ideas that were generated during the day. Young Joen puts the event in perspective, “While Ruff Wear had ideas for improvements; it was good to see others have come to a similar conclusion. And better yet, we learned new ideas that we are excited to test and implement. I believe that every company should take advantage of this type of event on a regular basis.”
"I really enjoyed participating in an event that was outside my normal area of expertise (HR)," said Sue Jones, HR Director at American Licorice "and felt that my contributions added value to the Kaizen team. One of the best parts about the event was the ability to go to the Gemba (a Japanese term meaning "the actual place" or "the real place") to test out our ideas and improve our personal observation skills. This event really challenged me to look at things differently." Learn more about HiDEC here.
HR briefing on new COBRA rules and the Stimulus Bill
Deborah Tompkins of Tompkins HR Group, Inc. generously offered to provide an overview of new COBRA requirements stemming from the Stimulus Bill. “It’s important to get this information out to all employers,” she says “as it impacts those that are subject to COBRA (with 20 or more employees) and those that have fewer than 20 employees and are subject to the Oregon state continuation rules. There is quite a bit of confusion locally – many employers think they are exempt when they really are not.” Download a copy of the brief here.
Digital to Tangible – Another local company (Precise Flight) offers valuable sideline business
Precise Flight, Inc., more known for its widely used aviation products, is now making one of their most useful pieces of equipment available to others for conceptual prototyping, design verification and functional testing. The FORTUS 400mc produces a thermoplastic part(s) from 3D CAD files using FDM ® (fused deposition modeling) technology to produce the most accurate and durable parts of any additive fabrication technology. The system streamlines the development process, reduces costs and results in getting to market faster. For more information go to www.preciseprototype.com or call them at 1-800-547-2558.
| Upcoming Business Events in Central Oregon |
Rachael Scdoris Pledge-a-thon supports CORIL and rallies Bend
Local Central Oregon hero Rachael Scdoris is teaming once again with Central Oregon Resources for Independent Living to raise money for people with disabilities in our community to help them realize their goals and dreams as she is doing. For as little as a penny a mile donation ($11.00) for her 1100 mile quest through the Alaskan wilderness from Anchorage to Nome (begins Saturday, March 7), you can help inspire Rachael and support her chosen charitable cause; says Rachael, “people at CORIL complete their Iditarod everyday!” Join KOHD, Ruff Wear and CORIL and go to www.gorachaelgo.com and participate today.
March 10 – SCORE develops seminar on how business can deal with rising employee theft
There is a direct tracking between a falling economy and increases in internal theft. You may unknowingly be losing valuable assets as you read this. Two experienced instructors from SCORE will present: Counselor and Marketing Chair Bill Saling (14 years ownership of a background investigative firm), and Chairman Bruce Mikalwski (a retired banker with 22 years experience). Collectively, Bill and Bruce will cover: why small businesses are so vulnerable, retail vs. non-retail security concerns, the effect of employees on losses, how to develop internal controls, using background searches to protect against hiring bad employees, and insuring against losses. See the flyer to register.
March 11 - OK presents "Creating Loyal Customers: How to Keep Your Best Customers with Stellar Customer Service"
Part of Opportunity Knocks’ Best Practices series, this March 11th brown-bag event is designed to be interactive, helping you develop actions to meet today’s tough marketing and service problems. We’ll delve into how to identify best customers, how to inspire your team to deliver exceptional service, and look at how shifting consumption trends are changing both consumer behavior and expectations. Presenters are Moe Carrick (Moementum), Ali King (An Affair to Remember), and Ruth Lindley (EDCO). They offer expertise from three different but synergistic perspectives--service training, internal marketing, and corporate culture. The event is 11:15 am to 1:30 pm at The Phoenix Inn, 300 NW Franklin Ave., Bend. Cost is $30 for OK members and $45 for others and includes a brown bag lunch. Find out more about this workshop on the benefits of Loyal Customers.
March 13 - Attention construction companies and contractors: Learn about new $175 M procurement oppportunities
On Feb. 5, 2009, Governor Ted Kulongoski signed Go Oregon! into law, authorizing sale of bonds to fund important capital projects at public facilities throughout Oregon. Go Oregon! will quickly make $175 million available to pay for construction, renovation and major deferred maintenance of buildings and other facilities owned by state government, local communities, universities and community colleges. It will create badly needed jobs, reinforce existing jobs, and inject money into Oregon’s communities. State agencies are finalizing a streamlined procurement process to speed the start-up of Go Oregon! projects. If you or your company wants to bid on a Go Oregon! contract, visit the state site to view the opportunities and check out the flyer on local college events. The March 13th event is at COCC, runs from 9:00 am – 12:00 noon, and is free (no registration required).
March 13 – COCC presents “Survive, Thrive or Flourish”
Business success in this challenging marketplace begins with a change in mindset. Learn from keynote speaker Nigel Henry about professional resources and updated technologies your company can leverage for profit, performance, and sustainability. This event is 8:00am to 12:30pm at COCC Hitchcock Auditorium. Reduced registration is $39/person. Space is limited, so reserve your seat today. Click here for more info on Survive, Thrive or Flourish and to register.
March 23 - COTV’s Talk of the Town – “Meet Your Legislators”
Meet Legislators Telfer, Whisnant, and Stiegler along with Deschutes County Commissioners at this COTV Talk of the Town event. Imagine having the chance to go one on one with your state representatives. What if you could ask them anything on your mind, including state budget cutbacks and how that will impact us in Central Oregon? You now have that opportunity. The two-hour event starts at 5:30 pm. Click here for more details about the Meet Your Legislators program.
April 8 - Tompkins HR Group Presents “Volunteer vs. Employee”
A person who gives their time or service to an organization without the expectation of compensation is considered a volunteer. But what if that volunteer is an employee? What if, in these more difficult economic times, employees offer their off-duty time as a volunteer to support a non-profit challenged with cash flow issues? Our discussion will focus on compliance with these unexpectedly gray areas within the non-profit realm. Register in advance by calling 749-9982 or email craig@tompkinshrgroup.com. Cost is $15.00 per session; includes coffee and breakfast items, and is at 780 NW York Drive, Suite 202, Bend, Oregon. (Note that the March Breakfast Briefing is cancelled due to scheduling conflict.) See the Tompkins HR flyer for April, May, and June events.
April 21 - Down, Not Out, Creating Your Future in Uncertain Times
Offered as a community service by Bristlecone Learning, LLC and Moementum, Inc., this workshop will provide skills and tools for re-setting your career and job search taking in to account your natural strengths and abilities and how you can leverage them in the new economy. The workshop is for professionals of all levels in career transitions. April 21, 8:30 am to 4:00 pm at the Phoenix Inn in Bend; $25 for online assessment and course materials. Click here for more Down, Not Out details.
New member - Harper Houf Peterson Righellis, Inc. (HHPR) - Bronze
HHPR is an employee-owned consulting firm composed of senior-level professionals providing civil engineering, land surveying, landscape architecture, land use planning and structural engineering through out the Northwest, with offices in Portland, Vancouver, Clackamas and Bend. HHPR is currently working locally with both private and public sector clients in Central Oregon. HHPR says they share a philosophy with EDCO which includes providing creative solutions and quality deliverables in a timely manner. For more information about the company contact Kim Shera, PE, or David Olsen, former EDCO Board of Directors member and Registered Landscape Architect at www.hhpr.com or by calling 318-1141.
February 2009 Renewing Members
We’d like to thank the following renewing members who help fund EDCO’s efforts to help local companies in growing their operations and to recruit new companies to the region.
| Renewing Companies |
| Level |
Company (Year Joined EDCO) |
| Individual |
Coldwell Banker Morris Real Estate, Sydne Anderson (2007); NW Mortgage Group, Inc. (2008); Steve Scott & Company, Gary Everett (2006); The Kozak Company (1986) |
| Bronze |
Best Western Rama Inn (2005); Bryant Lovlien & Jarvis, P.C. (1987); Cascade Heating & Specialties (1988); Insurance Partners, LLC (2008); Oregon Business Development Corporation (2007); Smith Herrick Engineering (2007); Swift Steel (1987) |
| Silver |
Ruff Wear (2006); Three Sisters Business Park (2005) |
| Gold |
Les Schwab Headquarters (1986) |
| Platinum |
Community First Bank (2001); OSU-Cascades Campus (2000) |
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