October 2009 eCon Update

 
Everyone wins: bring your organization's event to Bend and become eligible to win $5,000

Visit Bend Visit Bend has launched a new initiative, My Group, which incents local residents to bring their organization’s event to Bend. If successful, residents are eligible to receive a $5,000 donation to their organization or the charity of their choice. "Most of us belong to at least one national organization such as Trout Unlimited or the American Quilters Society, and these groups annually hold meetings, conventions, conferences, tournaments and retreats at locations across the country," said Doug LaPlaca, president and CEO of Visit Bend. The promotion will be advertised throughout Central Oregon via radio (listen to the My Group radio commercial), print and online advertising.  Check out complete details of the My Group promotion

EDCO will be working with area traded-sector companies to see there are opportunities to bring industrials association conventions to the region.  How better to expose future recruitment prospects through such an avenue!  Stay tuned! If you have a great idea, contact Angie Darby, Visit Bend's director of sales, at 541-382-8048.

EDCO celebrates Industry Month throughout October

Industry Month 2009 - Event Calendar
Please see our updated and expanded event calendar to register or get information about October’s great event lineup! Below, we highlight just a few resources but check out the full offerings for Industry Month.  We'd like to thank our sponsors - Lumbermen’s Insurance, Pacific Power, and Seventh Mountain Resort - as well as partners and members who make this month extraordinarily informative and fun!

Please note date changes on these seminars:
Export Strategies now Tuesday, Oct. 27
Enterprise Zone workshop now Thursday, Oct. 22
The Branding Seminar now Thursday, Oct. 29

Oct 7:  Quality People & Organizations – Take a page from Toyota’s handbook
This week, catch HiDEC favorite - consultant Mike Hoseus. In this year's workshop, Hoseus focuses on applying Lean principles workforce selection and management. After 13 years with Toyota Motor Manufacturing, Hoseus heads the Center for Quality People and Organizations, a consultancy established in 1999 with Toyota to share the company’s broad-reaching Lean philosophy and practices. The full day workshop runs 8:00 am – 4:00 pm at COCC’s new Student Center. Cost is $20 for HiDEC members and $50 for non-members; lunch is included. Contact Eric Strobel to register.

Call for EDCO Annual Awards Nominations
Please help us honor the best of Central Oregon’s Business Community! We’re looking for submissions in the following categories, which will be honored at the 2009 EDCO Annual Awards, Wednesday, October 28, 2009 at the Seventh Mountain Resort. More details and the easy submission process are available on our website.

  • Excellence in Manufacturing
  • Economic Development Partnership of the Year
  • Entrepreneur(s) of the Year
  • Central Oregon Product of the Year
  • Private Sector Person of the Year
  • Public Sector Person of the Year

Bend Venture Conference (BVC) reveals presenter and wild card selections
Bend Venture Conference 6th annual event 2009In what promises to be an outstanding event, four regional early stage companies will vie for a minimum $100,000 investment at the sixth annual event on October 16 at the Tower Theatre. The finalists, who will present their business plans in front of an expert panel of investors, are:

  • Moonshadow Mobile – Eugene, OR – Developer of a content management system (CMS) for building and managing mobile sites and iPhone apps.
  • Precision Plan Systems, Inc. – Corvallis, OR – Developer of an integrated agricultural crop management system.
  • Second Porch – Portland, OR – Provider of a Web-based integrated management system for the Vacation Rental industry.
  • Site9 – Portland, OR – Developer of Software-as-a-Service (SaaS) that facilitates rapid, collaborative, and successful website and Web application development with lower costs, increased productivity, and a superior delivered product.

In addition, 10 companies will compete in the Wild Card selection, delivering two-minute pitches to the BVC audience, who in turn will vote for the most compelling presentation. The winner joins the finalists in pitching to the expert investor panel. Wild Card companies are:

  • ADASA – Eugene, OR – Producer of mobile radio frequency identification (RFID) tag encoders.
  • Athletepath – Portland, OR – Provider of a Web-based platform that tracks and analyzes an athlete’s performance.
  • cc:Sync – Portland, OR – Developer of a mobile and Web platform that allows private, secure communication between members of a team or work group on any device, including cell phones, smart phones and laptops.
  • First Record Carbon, LLC – Bend, OR – Provider of service-based business intelligence solutions to monetize the environmental commodity cash flows from customer carbon offset and renewable energy projects.
  • Marketsync, Inc. – Kirkland, WA – Provider of a Web-based platform that integrates email, direct mail and voice communications for Salesforce CRM users.
  • MyGroceryTools.com – Bend, OR – Online service provider that tracks and analyzes grocery item prices for consumer savings.
  • RIPL Corp. – Seattle, WA – Distributor of digital media.
  • Twitalyzer – Portland, OR – Developer of a Software-as-a-Service (SaaS) analytics platform that allows for the discovering and actionable insights of Twitter.
  • Vox Insurance – Portland, OR – Provider of automobile insurance to U.S. drivers that is priced by the mile.
  • Wave Tech Engines, Inc. – Redmond, OR – Developer of a highly fuel-efficient engine technology.

Central Oregon Business News

Venture Catalyst program soon to become reality
Small Business Development CenterIt has taken six months of working through federal paperwork and approvals, but at last EDCO is very near launch of the Venture Catalyst program for Central Oregon. Back in March of this year, a $232,750 Congressional earmark grant was awarded with the sponsorship and support of Senator Ron Wyden. But why do we need such an effort? Isn’t that what the Bend Venture Conference, Central Oregon PubTalks, SCORE and the Small Business Development Center at COCC are all about? These organizations and events clearly provide good advice, networking and in some cases capital, but the daily glue to make good things happen for new businesses with the resources they need can clearly be stronger.

The three year Venture Catalyst program, which is designed to better connect early stage companies and entrepreneurs with the expertise, advice and capital they need to advance their ventures, includes a new, full-time professional manager at EDCO to make those connections. The Venture Catalyst Advisory Board has assembled and identified a team of experienced leaders to head up the hiring panel which will assist a local professional recruitment firm. Anne McDonald, President of the McDonald Group, Inc., will lead this effort which EDCO is hopeful will result in a manager hire within the next 30 days.

A key first milestone for the new program will be to quickly build a database or “stable” of experts interested in lending their experience and expertise to help fledgling companies with financial, legal, accounting, marketing, managerial, manufacturing and other issues. Another benchmark will be to work with area investors and high net worth individuals to develop a new venture or angel capital fund for the Central Oregon area. For more information about the program and milestones, look at the Grant Technical Proposal or visit the front page of EDCO’s website.

OSU-Cascades moves forward with Engineering degree - first in the state to combine management and energy
Solar Panels Oregon State UniversityOregon State University-Cascades Campus’ collaboration with leading faculty at the OSU College of Engineering, EDCO, and area companies, including CH2M Hill, PV Powered and Vulcan Power Company, is moving towards the creation of an energy engineering management degree which is expected to launch in fall 2010 at the Bend campus.  Professor Toni Doolen, now on sabbatical from the College of Engineering’s Mechanical, Industrial and Manufacturing program, joined the OSU-Cascades team to manage the development of the program.  The program ties into national and state priorities on renewable energies and energy efficiencies. It would be the first engineering program in the state to combine a management and energy focus.  OSU’s College of Engineering is a recognized leader in research and commercialization of sustainable forms of energy and clean, safe technologies associated with them. “This is a cross disciplinary degree that marries technology and the people side of energy management. It’s a good fit for Central Oregon and the engineering needs here,” said Professor Doolen.

Vote Yes on Measure 9-73EDCO supports COCC Bond Measure 9-73
The EDCO Board of Directors urge local residents to vote yes on Bond Measure 9-73, to improve educational facilities and student capacity throughout Central Oregon, in the upcoming November election. In a statement in the Voters Pamphlet, EDCO’s Board states that the value of the measure is substantial while the cost (an increase of less than $2 per month for the average district homeowner) is quite reasonable. A ‘Yes’ vote also allows COCC to accept a state match grant of $6 million to assist with the project. The statement cites an initial benefit of increasing jobs in the construction sector followed by the benefits of training more residents in the health care industry as well as creating outreach campuses in Madras and Prineville.

Local companies and consortiums receive training grants
Five local traded-sector companies and two regional consortiums were recently awarded workforce training grants by the Workforce Response Team. The grants are used to support the retention and growth of quality jobs, a skilled workforce, and competitive businesses in Crook, Deschutes and Jefferson Counties. The emphasis of the funds is to upgrade skills of the current worker to increase productivity, keep businesses viable and competitive, and to offer new skills and opportunities to workers. Businesses interested in applying for training grant funds will need to complete an application and submit it by e-mail. Electronic applications are available by contacting Andrew Spreadborough, Workforce Response Team Coordinator, at 541-504-3306.

Company     Grant Training
American Licorice $15,000    Lean training & implementation
Metabolic Maintenance (on behalf of Central Oregon Biosciences Industry Consortium) $35,000 Various biosciences industry trainings
PV Powered $23,250 Lean training and technical electrical training, certification
High Desert Enterprise Consortium (HiDEC) $15,000 Lean training and Kaizen events for HiDEC member businesses
KEITH Manufacturing $13,500 Lean enterprise training
Deschutes Brewery $2,200 Lean experience seminar and financial analysis training
 

Six Central Oregon Nonprofits make Oregon Business Magazine’s first “100 Best Nonprofits” List 
Oregon Business Magazine Top 100 Non Profits in OregonModeled after their 17-year-old 100 Best Companies project, Oregon Business magazine introduced this year their inaugural 100 Best Nonprofits to Work For in Oregon. The list recognizes that Oregon’s 150,000 nonprofit workers are critical to the health of the state. Over 6,700 employees participated in evaluating their organization on multiple factors: work environment, decision making and trust, performance management, career development and learning, and benefits and compensation. Congratulations to the six nonprofit organizations in Central Oregon recognized:

 

Large Organizations: 75+ employees
Deschutes Public Library (ranked 5th)

Medium Organizations: 25-74 employees
Growing Tree Children’s Center (ranked 11th)
Central Oregon Resources for Independent Living (ranked 15th)
KIDS Center (ranked 21st)

Small Organizations (10-25 employees)
Saving Grace (ranked 13th)
Deschutes River Conservancy (ranked 17th)

Ameritech Machine Manufacturing locates new business opportunities to the north
In November of 2008, Ameritech Machine relocated from Bend to Redmond to a new 25,000 square foot facility with 30 employees. The company, which has now expanded its reach into Alaska, is a fabrication and equipment, semi-custom job shop specializing in steel and wood processing equipment and steel fabrication. Co-owner Ron Cook noted that he and his team have uncovered significant opportunities to bid on structural steel and welding projects to the North. Fortunately, the company has earned a number of these contracts resulting in new growth for Ameritech. The company listed four new job openings and may need as many as five more employees by the end of October.  Ameritech projects year over year increases to be near 40% by the end of 2009. “This company has been a great community partner, represents a growing sector for Redmond, and is good news for the City’s needed employment growth,” said Redmond Economic Development, Inc. (REDI) Manager Jon Stark.

REDI promotes supervisor and leadership training to Redmond’s traded sector employers
In 2006, REDI was awarded a grant from Deschutes County in the amount of $10,000 in lottery funds to promote Supervisor and Leadership training for Redmond’s Enterprise Zone qualifying companies. In September, Board Member and COCC’s Redmond campus Dean, Carol Moorehead and REDI Manager, Jon Stark took the program to the road by meeting with a number of local companies to share the program’s value and availability. With a little over half of the funding remaining, the program provides up to 85% of tuition costs for training with a focus on COCC or other significant training opportunities in the region. To date, four companies have expressed interest, enrolling employees in COCC’s Leadership Skills classes or Small Business Management training, beginning in October and January respectively. Stark shared there is still some funding available for qualifying companies to take part and hopes to make application in 2010 for another grant.

Federal grant could provide green jobs for low-income workers in Crook and Jefferson Counties
Unemployed workers in Central Oregon could get some help thanks to a grant submitted by the Partnership to End Poverty (PEP) and Central Oregon Intergovernmental Council (COIC). The Green Jobs grant is designed to help counties with high unemployment rates provide job training and future employment for low-income workers. The Warms Springs Tribe, Jefferson and Crook Counties qualify for the $4-million federal grant. The money will pay for the training, along with a full-time coordinator and a small staff in each of the three communities to oversee the program. The goal is to reach about 400 people between the three communities. "Green jobs" is a fairly broad definition, and includes work in the areas of renewable energy, increasing energy efficiency, producing less waste, mitigating environmental harm, restoring areas of the environment or providing education in those areas. If the grant is awarded the program would likely start in early 2010.

Destination resort vote in Crook County repealed
A contentious issue is in front of the Crook County Commissioners once again. Last November, a majority of Crook County residents voted to ask Crook County leaders to repeal the destination resort map, a document that guided the county on where those resorts could locate. Commissioners voted 3-0 based on overwhelming support from votes. But the Land use Board of Appeals (LUBA) says the repeal is invalid. That’s because state law only allows a change to an existing planning map to be made every three years. At the time of the vote, three years had not passed. LUBA has sent the issue back to the County for consideration. Since the three year timeline has now passed, Judge Mike McCabe expects the same vote again, calling the issue a “formality.” Without a map in place a de facto moratorium is now in place for any future destination resorts in Crook County.

Butler Aviation at Madras Airport takes formButler Aviation at Madras Airport nears completion
The new large hanger being constructed in Madras with Connect Oregon II funds is nearing completion with a target occupancy date of early December. Butler Aircraft is excited about leasing this facility from the City of Madras for their heavy aircraft maintenance contract with the Forest Service. As with many complex construction projects, challenges arose during the process such as the fire suppression system and the additional need for a firefighting apparatus (airport-oriented fire truck), additional road and infrastructure construction, additional tarmac space and others. Fortunately, all these challenges have been solved and funded. This facility will serve as an anchor for other aviation businesses at the Madras Airport.

Warm Springs Forest Products renews arrangement
Vanport International , Inc. (Boring OR) negotiated a five year lease extension to operate the Warm Springs Forest Products’ sawmill. The mill utilizes timber from the Confederated Tribes land and the logs are milled to metric specifications for the Japanese housing market. Approximately 70% of the milled lumber is sold to this market and 30% is sold domestically. Vanport’s workforce comprises 75% Native Americans from the Confederated Tribes and 25% from other Jefferson County residents.  This renewed lease envisions an improvement in the housing market both internationally and domestically.

New wideband speed puts Central Oregon on par with North America's fastest broadband speeds
As a proof point of their commitment to being at the forefront of technology, BendBroadband recently announced that it is moving from broadband to wideband technology with the launch of its next-generation DOCSIS 3.0 high-speed Internet service. The new wideband “channel bonding” technology will offer download speeds up to 60 Mbps and according to Frank Miller, the company’s Chief Technology Officer, will enable future speeds up to 100 Mbps. The new speeds will be available beginning in early-October to all residential and business customers within BendBroadband’s cable footprint via two new premium pricing tiers. 

Violent crime and property crime both down in Central Oregon
In an economic recession we often expect crime to increase. But that’s not the case based on the FBI’s Crime in the United States 2008 report, with closely watched measurements of violent crime and property crime. Central Oregon exceeded state and national trends of marked decreases in violent crimes and decreases in motor vehicle thefts (other property crimes – burglary and larceny-theft - increased nationally). In a September 14 story, KTVZ.com spoke with local law enforcement officials to better understand trends in Central Oregon. The Oregonian speculated that one of the keys to the drop in violent crime was the “state’s aggressive attack on methamphetamine production”; see full article

Crime Bend Redmond Prineville Madras
Violent Crime   2008 139 58 13 16
2007 155 84 86 24
Property Crime 2008 2,513 1,221 54 341
2007 2,977 1,227 84 399

Guest Perspective: Unintended consequences of financial regulation create a credit freeze

(Note: Guest Perspective is a new addition to the eCon Update intended to provide an opportunity for thought-provoking articles that engage the business community.  It should not be construed as an official statement or opinion of the EDCO board or staff. Please contact Ruth Lindley if you have a perspective you'd like to propose.) 

Frozen Credit MarketsLast month, EDCO had an opportunity to meet with Oregon Senator Jeff Merkley in an open conversation to share challenges the business community faces. In the Senate, Senator Merkley serves on the Budget Committee and the Banking, Housing, and Urban Affairs Committee. He was particularly interested in observations Wes Price, Partner of Harrigan Price Fronk & Co., made in regards to why financial institutions are in essence “frozen.” EDCO asked Price to recap his comments for the eCon Update; below is summary of the consequences he contends banking regulation has unintentionally created. Read the full guest article here.

Price says “our banks are in the throes of the greatest credit ice age since the Great Depression. What could be causing this with all the historical perspective we have at this time? It is my belief that the very regulatory process established to protect consumers from misbehaving bankers in the 1920’s is at least partially to blame for the dramatic shut down of credit in today’s economy. This comes from some interesting unintended consequences from well meaning, but over zealous regulators. The results of this regulatory meltdown may in fact be felt for decades.”

Price outlines these four unintended consequences:  

  1. Poor mortgage quality has caused regulators to stiffen qualification rules and write down problem loans, reducing availability of mortgages precisely when they’re most needed.
  2. With falling real estate values, good paying bank customers are put in financial distress as banks ask for more collateral to secure an original loan or require pay downs on existing loan balances.
  3. In a risk averse environment, TARP money is not stimulating the economy as banks receive signals from regulators that it is preferable to not loan out funds (hand slap) than to make poor loans (lose their charter).
  4. Cyclical regulation behavior (leniency in good times and severity in bad times) contributes to contraction, rather than expansion of the economy, when we most need catalyst funding.

Upcoming Events in Central Oregon

Oct 6: Maxed Out: Credit Cards
NeighborImpact has partnered with the City of Sisters and Bank of the Cascades to offer financial fitness classes. This educational (no selling) class offers a chance to learn about the credit card industry and engage in discussion following a documentary film. Class is 6:00 – 8:00 pm at the Sisters Area Chamber of Commerce; dinner is provided from 5:30 – 6:00 pm. To register, please call NeighborImpact at 541-548-2380 x158 or send your questions to info@ci.sisters.or.us.

Oct. 8: No Time To Think
Nancy R. Chandler Visiting Scholar Program presents a provocative topic regarding the Internet’s intrusion into our lives and what we can do about digital distractions. Dr. Hilarie Cash, Ph.D., is a founder of the ReSTART Internet Addiction Recovery Center and author of Video Games & Your Kids: How Parents Stay in Control. Doors open at 6:00 pm for a 6:30 presentation at Hitchcock Auditorium at Central Oregon Community College, Bend. Click here for more information about No Time to Think.

Oct 13: Wage & Hour Questions Answered
Central Oregon Employer Council will present a seminar for businesses titled “Wage and Hour Law.” Staff from the state’s Bureau of Labor and Industries will help employers understand and comply with labor and employment laws. Attendees will learn about a wide variety of employment related issues, including meal and break periods, exempt and non-exempt employees, independent contractors, payroll management, and travel & training time. The seminar is 7:30 am to 12:15 pm in Juniper Hall at the Eagle Crest Conference Center and costs $50. Register by Oct 6 by calling 541-338-6024.

Oct 29: iPEP
Discover iPEP – a Web 2.0 technology providing a platform to manage paper and electronic information, team collaboration, organization and productivity. This product demo will highlight some of the features including the ability to create a mirror of your physical files, inventory files with unlimited keywords and instantly locate files later based on keyword search (think Google!). Participants will learn how to import scanned documents, add photos, plug-ins, widgets and link to websites. Collaborative real time page editing, document management and file sharing with complete history and audit trail will be covered. Class is 9:00 - 10:15 am; no cost.  Register at: http://www.simplicated.com/programs_events.html.

Oct 23: The Personnel File
This Tompkins HR Group session will focus on what forms should and should not be contained in an employee’s file. Special attention will be paid to the I-9 form, as improper completion of this form can result in fines of up to $10,000 per occurrence. See Tompkins flyer for details.

Oct 27: Business Summit for Career Readiness Credential (CRC)  
This workshop will provide in depth information on the CRC; employers will have the opportunity to hear from an HR manager who has used the CRC for several years. The workshops is 1:30 to 4:00 pm, Redmond location TBD. Please contact Stephen Clark, Business & Employment Specialist with WorkSource Oregon.

Nov 3: Borrowing Basics
This class will help you determine if you’re ready to apply for credit, what type of loans there are, and what steps are necessary in order to obtain one. The class is offered by NeighborImpact, the City of Sisters, and Bank of the Cascades as part of a series of classes on financial fitness. Class is 6:00 – 8:00 pm at the Sisters Area Chamber of Commerce; dinner is provided from 5:30 – 6:00 pm. To register, please call NeighborImpact at 541-548-2380 x158 or send your questions to info@ci.sisters.or.us.

Nov 20: Employee Handbook Development
In their monthly Breakfast Briefing, Tompkins HR will help with which items should be contained in your company’s handbook, as well as items to avoid. As laws and regulations continuously change, strategies for editing, and methods of informing your staff will be covered. See Tompkins flyer for details.

Outcomes of 2009 Oregon Legislative Session

Following the 75th Legislative session, EDCO has highlighted various pieces of legislation that impact business and employers. Local firm Karnopp Petersen LLP graciously agreed to cover the new requirement originating from Senate Bill 556 and provides the following brief:

Some businesses may be required to have an automated external defibrillator (“AED”) on their premises January 1, 2010
Automatic External DefibrillatorThe Oregon Legislature recently enacted a new law that requires owners of certain facilities to keep at least one AED on the premises. If you own a facility that has at least 50,000 square feet of floor space and where at least 25 individuals congregate on a normal business day for purposes such as shopping, entertainment, or amusement or to conduct business activities, you may be subject to this new requirement. The new law affects existing laws that require health clubs to keep an AED on the premises and that limit liability for a person’s use of an AED.

Jeff Ellsworth, a business attorney at Karnopp Petersen LLP, points out that there are potential ambiguities in the new law’s application and therefore recommends that business owners who think they might be affected seek legal advice to determine whether in fact they must comply with the new law.

An additional note from EDCO: Companies who determine that they must install an AED may find the local chapter of the Red Cross helpful in purchasing an AED unit, providing training contacts, and supplying annual reminders and follow up information. Please contact Tamara Mathiesen, Director of Health and Safety at Oregon Mountain River Chapter for details.   

EDCO News

We’d like to thank the members - new and renewing alike - who fund EDCO’s efforts to recruit new companies to the region and help local companies grow their operations.

Renewing Members
Bronze Level: PNW Relo (2007) and APCO Swiss Automation (2006).
Individual Level: 501 Drive (2007), Compass Commercial – Peter May (2007), and Juniper Management Advisors (2008).

New Members
SCORE SCORE - EDCO Business Resources Partner
The local SCORE chapter, recently reinstated and headed by Chapter Chairman Bill Saling, aims to provide free and confidential business advice and counseling tailored to meet the needs of small business.  SCORE volunteers are real-world professionals with time-tested knowledge who annually donate thousands of hours to help small businesses succeed. Counselors are experts in such areas as accounting, finance, marketing, management and business plan preparation. Saling stated, “we have also assisted many clients in obtaining business loans.”  SCORE is a national nonprofit association dedicated to entrepreneur education and the formation, growth, management, and success of the nation's small businesses. Call 541-923-8615 to learn more about free SCORE services.

MacKay & Sposito, Inc. in Bend OregonMackay & Sposito - Bronze
MacKay & Sposito, Inc. (M&S) is a versatile, medium-sized consulting firm that offers several core professional services including civil engineering, land surveying, landscape architecture, construction management, land-use planning, and development review services to both public and private clients throughout the Northwest. M&S has offices in Vancouver and Kennewick, WA; Wilsonville, OR; and most recently Bend, OR.  Michael Magee, manager of the Bend office says the company is excited to serve current and potential clients in Central Oregon and provide a wide range of projects while offering high levels of service. Magee has a proven track record with eight years of managing and delivering complex capital projects in Central Oregon. For more information, visit the Mackay & Sposito website.

Feedback
Let us know what you like or dislike about the eCon Update. Or have a story idea? We love your input. Send an email message to Ruth Lindley.  


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