| Doubling Headcount in the Downturn |
Local companies lead way to economic recovery in tri-county area
It might not seem possible given the slow pace of rebound from the longest U.S. recession in seven decades that local traded-sector companies are growing rapidly, even hiring. Yet more unbelievable—many are doubling their employment. Remarkable as it seems, a dozen local companies with national or international markets are doing just that. Yes, 100% headcount growth! Among the list:
PV Powered has already nearly doubled their 2009 employment, ramping up to a workforce of 130 to meet market demand for residential and commercial grid-tied inverters.
GL Solutions is just beginning growth of its team from 32 currently to nearly 70 FTE by the end of 2011 to handle new business won in licensing software.
Manzama, on the heels of recent equity capital investments, this internet software startup is planning to more than double its employment from three to 13 by the end of 2011.
MediSISS, one of only three certified instrument reprocessors in the U.S., is already three-quarters of the way to doubling its January 2009 employment of 85 to 100 by year’s end with a potential to reach 130 by the end of 2011.
G5 Search Marketing secured $15 million this year which has helped the company ramp up to broaden its national reach and market verticals and is in the process of growing its employment from 49 at the end of 2009 to 97 as of today, with expectations to continue increasing through the next year.
Etrix Group is a small electronics component design and contract manufacturer supplying firms like PV Powered, which has in part required it to double its team to nine people over the past six months.
Agere Pharmaceuticals is in the process of more than doubling its team of scientists and engineers by the end of next year, growing from four to 11 people.
Nashelle Jewelry tripled its employment over the past year to a team of 30 people making products shipped to 400 boutiques worldwide.
Commercial Powder Coating, like Etrix, has a diversified client base, but has become a key supplier to PV Powered, necessitating doubling of their plant size and workforce over the past year.
Mid Columbia Lumber is ramping up over the next 18 months to double or triple output from their new Culver plant (and with it the potential to double employment) as they collect market share in the aftermath of the national recession and construction bust.
Dent Instruments is in the first stages of significantly growing its engineering and production team and is hopeful to relocate into a new building that will more than double its current footprint.
Navis has quietly grown its workforce the past year to 65 people and is planning to more than double this number to a total of 135 employees by 2013.
Combined, these companies are creating hundreds of new, high paying jobs that form the core of a solid, diversified and sustainable economic recovery in the region. Importantly, this shortlist does not include companies like Moonlight Mailing, Bend Research (see article below), Advantage Dental, Windward Performance, Keith Manufacturing and Double Press that are also adding employees but are not currently planning to double their current numbers. Aggregated, these companies could add more than a hundred more jobs in the year to come. Last but not least, there are the companies and operations new to the region including Facebook, Pacific Pellet, McConnell Labs (Light Elegance), The Vault, and Old Creek Wall Bed Factory, to name a few. These new employers will generate dozens of additional permanent, well-paying jobs in the tri-county area.
All this adds up to what EDCO considers strong evidence for the end of economic and employment contraction and the start of growth as we head into what will be a much better year ahead than we’ve seen in the past three.
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EDCO Board hosts Power Panel next week (December 9)
For the past hundred years, energy has driven modern economies. Today, electric power is playing an increasingly important role in the way we live, work, commute and generate alternative sources of energy. Next Thursday, December 9, 8:30-10:30 am at The Riverhouse Convention Center, the EDCO Board of Directors is hosting a panel of industry leaders to focus on the future supply and cost of power in the Central Oregon area and how these two issues will impact economic development in the years to come. Panelists include:
- Bill Kopacz, General Manager of Midstate Electric Cooperative
- Dave Markham, President/CEO of Central Electric Cooperative
- Pat Egan, Vice President of Customer and Community Affairs for Pacific Power
- Hal Reitmeier, Site Selection Project Manager for CH2MHill.
The meeting is free to all EDCO members; non members are also welcome to attend what promises to be an interesting and illuminating presentation and discussion for a $15 charge. RSPV to Dayna at (541) 388-3236 to secure your seat.
EDCO Industry focus group announces plan for UAV testing area
This week Collins Hemmingway, chair of EDCO’s Aviation/Aerospace Industry Focus Group, requested the support of the City of Bend and Deschutes County for creation of a new Unmanned Aerial Vehicle (UAV) testing area within an established Military Operations Area (MOA) located roughly an hour’s drive east of Bend. The group has been researching the idea for the past six months with the Oregon National Guard, which manages the MOA and manufacturers, software companies and other firms developing Unmanned Aerial Systems (UAS).
With a severe lack of UAV/UAS testing areas in the U.S., the group has found strong interest from the industry on utilizing a test area if created. The proposed region encompasses parts of Crook, Deschutes, Harney and Lake Counties in what is among the least populated areas in the entire country. The designation could take time and will include considerable public input. Link to the proposal for details, or see recent TV and newspaper coverage.
Construction on Prineville college campus to start in 2011
Crook County is nearing a final bid award for construction on the community’s first-ever college campus center. Known largely as Open Campus, the new building will be located at the fairgrounds, offering college credit and community learning courses. Basic prerequisite courses like Math and English will start winter term. A $3 million federal broadband grant, and the passage of COCC’s bond measure are paying for the building and the technology. Open Campus is a pilot project through Oregon State University aimed at providing better access to higher education in rural communities. Construction is expected to start in January, with completion set for fall of 2011.
Significant reductions in system development charges (SDC) in Madras geared to entice new development
The City of Madras has cut their SDCs by 20% for the next two years. The revised SDC charge for a new home is now $10,445 (compared to $13,059). The current Mt. View Hospital remodeling project will save approximately $30,000 and the new COCC Madras Campus will save around $40,000. The cut establishes a new base and, after the moratorium, with a compounding of the inflation rate of 3% or more, the reduced rate will equate to a nearly 30% rate reduction in three years.
Facebook expects to go live early next year
The final stee
l beam is now in place on the 167,000sf Phase II expansion of Facebook’s Prineville data center. Crews will be working this month to enclose the expanded section, while the finishing touches are added to the first phase, which contains 147,000sf. Facebook says the data center will go online in four phases, with the first phase starting up after the first of the year. Nearly 250 construction workers remain on site, and 35-40 full-time jobs are expected once the building is complete. A grand opening is scheduled for spring.
REDI works with Chamber on Redmond Business Resource website
The Redmond Chamber of Commerce & CVB has recently created a new user-friendly website, www.DiscoverRedmond.com, to showcase Redmond’s recent revitalization and business climate. The site is a resource tool for new businesses considering Redmond and features testimonials and profiles from many local retail and commercial enterprises. Redmond Economic Development, Inc (REDI) has been working with the Chamber to expand the site to include additional traded-sector companies. When REDI’s new website launches in January, the home page will feature a video link to DiscoverRedmond. To learn more about this project, contact the Chamber office at (541) 923-5191.
Airline expert discusses the challenges, trends in commercial air service at EDCO meeting
Attendees to an EDCO membership meeting November 30 had the opportunity to hear and question Mike Boggs, VP and Manager of the Air Service Consulting Group for Mead & Hunt, a national provider of airport engineering and design services, about the role businesses play in air service development. Boggs is considered one of the top professionals in developing creative air service solutions for underserved markets. While he offered a downbeat picture of small markets’ ability to secure future additional air service, Boggs moderated his viewpoint somewhat in regards to Central Oregon’s prospects.
As background, Boggs cited a number of factors that have a disproportionate impact on small markets: elimination of smaller aircraft from fleets, reduction of seats, cuts to short-haul flying, and the shift to more profitable international services. This massive restructuring is the result of decisions airlines made in the five consecutive unprofitable years following 9/11.
Relative to air service in Central Oregon, Boggs commented that the region’s seven destinations and five airlines have healthy passenger loads. While we’ve suffered the loss of the LA flight, Boggs said he believes that will be temporary. He attributed the region’s well developed commercial air service to collective efforts between tourism, economic development, and airport officials that began back in the 1980’s. Another key to Central Oregon’s success relative to similarly sized competitive markets is the demonstration of solid business support for expanded service. Because business travelers make up 40% of passengers but provide 70% of the industry’s profit, business backing the most critical determinant for commercial air service expansion.
What’s next for Central Oregon? On a decidedly more upbeat note, Boggs predicted that after their merger adjustments, Delta and/or United may be interested in a RDM/LAX flight or Allegiant could offer an LAX option twice a week. He noted that meetings with Delta/United are underway to discuss adding additional flights to Denver or Salt Lake City. Boggs added that Central Oregon Visitors’ Association (COVA) has had initial success in gaining interest from Allegiant Air in providing inbound tourism traffic into Central Oregon.
| Strengthening Central Oregon's Entrepreneurship |
Due diligence confirms Manzama Inc. as Bend Venture Conference $200,000 prize winner
The Bend Venture Conference Due Diligence Committee conducted a detailed review of Manzama, creators of the legal industry’s first “listening platform”, following the selection of the company at the October conference. The due diligence process included analysis of Manzama’s financial statements and valuation metrics, as well as interviews with Manzama’s current customers and management team. Following this detailed examination, the conference’s investment arm, BVC, LLC, approved and finalized its $200,000 investment in Manzama. Congratulations again to Manzama, and here’s to another outstanding BVC in 2011!
Stable of Experts continues to grow
The Central Oregon Stable of Experts continues to evolve with great feedback and support. A voluntary initiative managed by EDCO, the Stable of Experts is comprised of individuals with diverse talents and experience to advise, foster and support the region’s growing number of entrepreneurs and startup companies. If you, your friends or colleagues are interested in becoming involved with the Stable of Experts, please contact Scott Larson for more information.
| Focus on Central Oregon Companies |
Reinvention of Bend Research – quietly rebuilding Bend’s economic foundations, diversification
Changing horses in the middle of the stream can be risky business and no one knows that better than Rod Ray, President and CEO of Bend Research Inc. But that’s exactly what Ray—ranch owner and leader of the Bend-based high-tech company—and his management team decided to do two years ago when they ended a 14-year exclusive relationship with Pfizer Inc., the world’s largest research-based pharmaceutical company.
With arguably the worst recession since the Great Depression as a backdrop, Bend Research struck out on its own, marketing its services to the pharmaceutical industry for the first time in years. Today, Ray says, the gamble has paid off, resulting in what Ray calls “a complete transformation of our company.” To learn the rest of the story about how the company made this remarkable structural shift and is poised for future growth, read the press release jointly issued by EDCO and Bend Research.
Amy Tykeson, CEO of BendBroadband, honored at Oregon Connections Telecom Conference
Amy Tykeson was recently honored at the 2010 Oregon Connections Conference, receiving the Edwin B. Parker Enduring Achievement Award for her contributions to Oregon’s telecommunications industry. Under Tykeson’s leadership, it was noted that BendBroadband has contributed to the vitality of telecommunications in Central Oregon in these areas: network infrastructure upgrade to Data Over Cable Service Interface Specification 3.0 (DOCSIS), being the first American company to deploy the new HSPA+ 3.5G wireless broadband data network, successful receipt of a $4.4 million federal Broadband Technologies Opportunity Program (BTOP) grant to bring high-capacity capabilities to underserved communities (Madras, La Pine, Prineville), and development of BendBroadband Vault, a green data center.
Oregon Business Magazine ranks Compass Commercial #10
Oregon Business Magazine just released their annual supplement, Powerbook 2011. The only Bend company that made the Real Estate and Construction category, Compass Commercial is ranked #10 in the state for commercial real estate. Compass has 19 commercial agents at their Bend location and an estimated $50.0 million in annual commercial volume.
OSU-Cascades leads enrollment among Oregon campuses this fall
According to a recent press release, Oregon State University - Cascades posted a 16 percent increase in full time equivalent (FTE) enrollment, the highest increase amongst Oregon State university campuses. The FTE increase reflects an 11 percent growth in the number of students taking classes this fall. The campus is now home to a record 678 students, with an additional 169 students taking courses as freshmen and sophomores at Central Oregon Community College and admitted into degree programs through OSU-Cascades, for a full contingent of 847 students. The growth is spread across academic programs. “We hope to sustain this growth as we build new academic programs like the recently launched Energy Engineering Management degree and Hospitality Management option,” said OSU-Cascades Vice President Becky Johnson. “These are programs that meet the needs of Central Oregon and attract students from both within and outside the region.”
Workforce certification system gains strength, proves region’s workforce skills
At the November 30th Central Oregon Workforce breakfast, local companies, a former DOW Chemical executive, and workforce experts touted the value of the National Career Readiness Certificate (NCRC) as a tool to help employers hire, train and retain qualified employees. “As an employer, the NCRC gives me a solid tool to assess the basic skills that an employee or potential employee has,” said Janice Chandler, Human Resources Manager at PCC Schlosser, Inc. “For an employee, the NCRC provides good information to improve skills needed to secure the jobs they want.”
Originally rolled out as a state pilot program in Redmond, the CRC has seen success with both those earning the certificates and employers. Redmond leads the state with close to 1,300 certificates awarded; the program is currently being introduced to Bend companies.
Regional economic development can also gain from the certificate system by finally having concrete data to show the quality of the region’s workforce compared to the nation. The chart below, recapping July 2009 through October 2010, shows that Central Oregon compares well with the rest of the country – a powerful business recruitment tool. For more information contact Laurel Werhane at the Oregon Employment Department at (541) 548-8196.
Oregon jumps from #10 to #6 in Forbes' ranking of the Best States for Business and Careers
In its fifth annual look at which states have the most favorable business climate, Forbes used ten data sources and examined six categories (costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life). For the first time, Utah topped the ranking, pushing Virginia from its four year run into the second slot. Oregon received its best scores for its labor supply and economic climate. See Forbes’ Best States table ranking or read the full story.
| Food for Economic Thought |
Reshoring/Onshoring: Can manufacturing come back to the U.S.?
Though the trend is small, EDCO has noticed more manufacturers are looking to domestic sources for suppliers and even their own production operations instead of sourcing product overseas. According to the Reshoring Manufacturing Initiative (RMI), there is empirical support that some original equipment manufacturers (OEMs) are bringing back jobs from places like China, India and Mexico. As the U.S. digs its way out of the Great Recession, and more than eight million manufacturing jobs have been lost over the past two decades, this trend may well be a driving factor to rebuild American manufacturing. A recent article cites several case studies:
- NCR Corporation halted manufacturing ATM machines in China and opened a plant in Columbus, Georgia.
- Farouk Systems moved their hairstyling tools manufacturing back from China to a newly built plant in Houston, Texas
- Ford Motor Company has announced plans to reshore nearly 2,000 jobs to the U.S. by 2012
- General Electric has announced plans to move assembly of its energy efficient water heater products from China to the United States in 2011.
RMI leader Harry Moser and other consulting experts assert rudimentary cost models used by many manufacturers don’t account for many hidden costs of offshoring production (particularly with third-party companies) including poor quality, delivery delays, shipping costs, large required production volumes, inventory and holding costs, warranty and rework costs, and travel time to production oversight. Moser has developed a total cost of ownership calculator to help U.S. firms more clearly evaluate and compare manufacturing costs here versus overseas and offers it free. Access the article, check out the calculator, and learn more about RMI.
New study documents FDA regulatory challenges
Companies in the life sciences industry are well acquainted with the trials and tribulations of bringing new products to market in the United States. Medical devices and pharmaceutical products must gain approval from the U.S. Food and Drug Administration (FDA), which in recent years has gained a reputation for being increasingly hard to work with vis-à-vis other industrialized countries. Patent approval has seen a similar trend.
Citing a lack of predictability and transparency, a newly released study by Wilson Sonsini Goodrich & Rosati, in partnership with the Medical Device Manufacturers Association (MDMA), concluded that the FDA is causing notable delays in new product development, which ultimately is having an adverse impact on innovation, patient care, and jobs. Specifically, new devices are available to U.S. patients, on average, two years later than in other countries. In navigating the regulatory process to bring low risk devices to market, companies must spend on average $24 million per device – nearly three-quarters of the entire development cost. For high risk devices, the FDA process requires on average $75 million. Such barriers to entry keeping promising innovation out of the marketplace.
Bend-based Clear Catheter Systems’ experience supports these findings. Over the past year it has obtained the equivalent of FDA approval in Canada and the European Union (EU), but is still waiting on FDA clearance, a process the company started before looking internationally.
“It is just the process you go through, and we’ve planned accordingly,” said Dr. Ed Boyle, President and founder of Clear Catheter and a local thoracic surgeon. “We believe FDA approval for PleuraFlow is imminent; that would allow us to begin marketing our product in the United States as well.”
Clear Catheter was successful earlier in the year in securing $1.2 million in equity capital through the Oregon Angel Fund (OAF) – a portion of which will go toward the FDA approval process. For complete results of the study, which included 200 medical device manufacturers, please click here.
Oregon’s Bureau of Labor and Industry (BOLI) website has valuable information for employers
From drug testing to service member protections to wage claim processes, check out the BOLI website for its comprehensive FAQs and fact sheets. The agency’s employer assistance advice columns are another great resource; the last three columns address the timely employment topic of determination of independent contractor status and its implications.
Dec 7, 7:30-8:30 am | “Would the Real Independent Contractors Please Stand Up?"
Karnopp Petersen LLP addresses a topic that could not be more timely in this seminar that is part of the firm’s ongoing employment law series. Join the Karnopp employment law team for a lively session with insights and practical advice on the legal ins and outs of contractors versus employees. Seminar is at Karnopp’s offices at 1201 NW Wall St, Ste 300, Bend, OR 97701. Please RSVP to Leslie Replin by December 6, 2010.
Dec 30, 1:00 pm | Five Common Sense Steps That Guide Struggling Teams Out Of Conflict & Confusion
Dianne Crampton, an authority on team culture, says cooperation comes from engaged employees who embrace a collaborative mindset that makes high performance team dynamics a reality. This free seminar—with limited availability—takes a common sense approach to resolving conflict and miscommunication in the workplace. It’s designed for leaders who aspire to build higher levels of cooperation in their companies. Crampton is author of TIGERS Among Us – Winning Business Team Cultures and Why They Thrive and several other publications. If you’re unable to make the teleseminar, visit this site for a free recording.
Jan 12, 2011, 5:00 pm | OEN Seed Oregon PubTalk – Round 3 – Call for Entrepreneurs
For entrepreneurs with companies on the fundraising path, Oregon Entrepreneurs Network's (OEN) Seed Oregon offers a unique opportunity to compete for funding, and to learn the rules of the road of effective fundraising. This entertaining and educational competition is the third of four rounds of OEN PubTalks. The competition is for Oregon and Southwest Washington seed-stage companies who are seeking capital from $100,000 to $2,000,000. One winner from each preliminary round will move on to a championship round, where a finalist will earn a coveted presenting opportunity at OEN’s Angel Oregon, the premier angel investing event in the Northwest. For requirements and to register, click here.
Jan 17-19, 2011 | Cornell Executive Program: Leading and Motivating in the Real World
Hospitality leaders now have a chance to attend executive education courses taught by Cornell faculty at OSU-Cascades. In the first of two three day classes in January, J. Bruce Tracey, Associate Professor of Cornell School of Hotel Administration, will examine the characteristics of authentic leadership and how to motivate employees to peak performance. An associate professor at Cornell and the current editor of the Cornell Hospitality Quarterly, Tracey has won numerous teaching awards and consulted with Four Seasons (Toronto, Calif.) and Moevenpick Hotels (Zurich). His research interests include training, leadership, employment law, and turnover costs. Find out more about the Cornell Marketing Course here.
Jan 20-22, 2011 | Cornell Executive Program: Marketing for the Hospitality Industry
Lisa Klein Pearo, Visiting Assistant Professor of Cornell School of Hotel Administration, will provide participants with an overall framework to develop an integrated communications program. She’ll cover how to develop, implement, and measure interactive marketing activities across mobile, social media, direct mail, e-mail, and Internet display advertising platforms. Find out more about the Cornell Marketing Course here.
Hatch Product Development - Bronze
Bend-based Hatch Product Development specializes in bringing new products and services to market, modifying and improving upon existing products and designs. Hatch has experience in numerous industries including small UAV engine design, with over six complete engines designed from scratch. Sourcing is another strong suit for Hatch and includes finding U.S. and off shore suppliers. Principal Mathew Smith spent a year in China qualifying suppliers, sourcing products, and setting up manufacturing operations. Hatch also has a prototype and fabrication shop where they build custom equipment that will test a product to quickly flush out any potential weak spots. For more about Hatch’s full capabilities, visit www.hatchpd.com.
Axia Valuations, Paul Svendsen - Bronze
Paul Svendsen, President of Axia Valuation, provides a full range of valuation services for banks, attorneys, CPAs and their clients. Valuations include M&A, estate planning, divorces and start-ups. For more info contact Svendsen at www.axiavaluation.com.
Schmid Malone - Bronze
Schmid Malone is a community-minded, local law firm. Their attorneys are focused on and have a vested interest in helping clients thrive by providing them with remarkable service and cost-effective solutions. They represent individuals and businesses in litigation, real estate, land use, business, estates, and other matters. For more information, visit www.schmidmalone.com.
Signet Mortgage - Individual
Dave Woodland of Signet Mortgage has an extensive background in financial services, and through his relationships with attorneys, brokers and a variety of lenders, this enables to him to better serve his clients. Woodland has worked as a financial executive in Silicon Valley with two semiconductor companies and has 10 years public accounting experience with one of the largest international CPA firms. For more information about his services through Signet Mortgage, visit http://signetmortgage.com/index.php?p=signet_oregon.
Got a hot business topic? Or a differing viewpoint? We’re always open to story ideas, likes and dislikes. Send an email message to Ruth Lindley.