| Economics without Equivocation - Join us Jan. 22 for EDCO's Annual Luncheon |
Have you had a chance to sign up for EDCO’s Annual Luncheon with economic trends forecaster Institute for Trend Research (ITR)? Those who heard principal Alan Beaulieu two years ago recall how prescient his forecast of a coming “necessary” recession turned out to be. (Others recall how refreshing it was to listen to an economist with a sense of humor.) Check out recent podcasts of presentations from Alan Beaulieu and his twin brother, Brian.
At EDCO's January 22nd luncheon, Alan will address where we are in the business cycle now, what it means for Central Oregon, and how to position your company with that foreknowledge. We invite you to send us your questions to us by January 15th. Don’t delay in reserving your spot as The Riverhouse is filling quickly. Contact Dayna (541-388-3236) to reserve a discounted 
corporate table or seats.
Friday, January 22, 2010
11:30 am -1:30 pm (registration begins at 11:15 am)
The Riverhouse Convention Center, Bend
Cost: $50 for EDCO Members | $65 for Nonmembers
Lunch included
| Business development efforts remain brisk at EDCO |
Throughout the past year, which was clearly recessionary for the nation, state and region, EDCO has continued to work diligently on a surprising number of business recruitment, retention and expansion projects. The good news is that the 72 companies currently in our “pending projects” portfolio could create an estimated 2,200 new jobs and more than $1 billion in new capital investment. The bad news is that several of these projects are delaying location or expansion decisions until the overall economy improves, until they are able to acquire the needed capital, or other external factors.
Still, some companies are moving forward, like Pacific Pellet, which announced Monday of this week that it would be leasing 60,000 sf of warehouse and production space in Redmond and create 20 jobs to convert wood waste into pellets for fuel used in homes, commercial buildings and eventually even utility-scale energy production.
Relocating from Tillamook, an agricultural product processing and distribution company took occupancy of their new facility in the Crooked River Ranch Business Circle last month. The company completed installation of their processing equipment and was operational in December.
Energy production is an important theme these days, and EDCO is working to help move forward several sizable projects, including BioGreen Sustainable Energy Co.’s $50 million bio-mass plant in La Pine, Pacific Wind Power’s $200 million utility-scale installation in Crook County, and Davenport Power’s efforts to build a 120 megawatt geothermal power production plant in southern Deschutes County. Several other confidential projects are still in the works for utility-scale solar power farms. Rounding out the sector, local OEMs (Original Equipment Manufacturers) PV Powered, PV Trackers, InEnTec, S4 Energy, and Idatech are all on steady, if not rapid, growth tracks.
EDCO is excited to be working actively on several exciting recruitment projects in a diverse group of industries (packaging, electronics, wood products, software, and IT) throughout the tri-county area including Sisters, Madras, Prineville, Culver, La Pine, Redmond and Bend. Announcements for some of these projects are eminent. SisTech Manufacturing, contract manufacturer and electronic assembler, established operations in Bend within the past quarter, creating six well-paying jobs. EDCO, in partnership with WorkSource Oregon, helped a provider of outsourced customer services, expand to Central Oregon with over forty local hires. EDCO staff helped track down a hard-to-find idle computer training facility and connected the company with several sources to access the region’s workforce.
Perhaps most promising is the dozen or so existing traded-sector companies that are or have plans to expand and add jobs. These include MediSISS, Altrec, G5 Search Marketing, GL Suite, T-Mobile, NW Structurals, Breedlove Guitar, and Agere Pharmaceuticals. EntrePrises USA, world leaders in the manufacture of custom rock climbing walls and handholds, is consolidating operations in Bend. The company will move its Redmond manufacturing operations (12-14 employees) to Bend and lease a 22,000 sf facility to combine operations under one roof. A Bend high-tech company is considering consolidation of a satellite office into its existing facility, creating 10 -12 high-paying positions. These employers, along with nearly two-dozen promising startups, will help the region rebound from its current economic slump and return to an even more vibrant and diverse business community than before the recession.
Even with the 18-month collapse of the national aviation/aerospace industry, EDCO is working closely with top leaders in this sector through a specific focus group that helps to generate new prospects in this segment. At its zenith, this sector employed nearly 1,200 people in the tri-county area, but we recognize that the window to keep that talented and skilled workforce is closing. The Aviation/Aerospace focus group is narrowing its efforts on the UAV (Unmanned Aerial Vehicles) segment, which is expected to grow by 20% annually over the next five years. Other areas of interest have been in the rotor segment (manufacturing, assembly, and maintenance), which is still fairly small in the region but has shown signs of marketplace strength.
To all EDCO’s 300 plus member companies, individuals and public organizations, thank you for your support that make our efforts to help these companies in meaningful ways.
| Business news in Central Oregon |
EDCO welcomes Scott Larson to head Venture Catalyst Program
Concluding a nearly four year effort to launch an initiative in the tri-county area specifically focused on entrepreneurs and early-stage companies with scalable products or services, Scott Larson was selected by a volunteer hiring panel to be the Venture Catalyst Manager. Scott beat out 50+ applicants for the privilege to take a “regular job” at non-profit pay to bring together the incredible professional talent that exists in the Central Oregon region and in the Pacific NW with investor capital.
Scott comes to EDCO by way of Vashon Partners, a think tank and angel investment fund he founded nine years ago in Seattle, following a successful run with a technology-based company on the East Coast that went public in the late 1990s. He is a graduate of Tufts University (BA), Columbia University (MA), and as a Javits Fellow he worked on digital media projects at the United Nations, Harvard University and the Columbia Center for New Media.
“I’m eager to roll up my sleeves and get to work,” says Scott, who started officially on Monday, Jan. 4, but spent a week in Bend in December laying the groundwork for the program launch.
EDCO is excited to have someone of Scott’s considerable experience, intellect, and drive to make a difference for new ventures. To contact him, call EDCO at 541-388-3236 or email him at scott@edcoinfo.com.
Juniper Ridge heads in the right direction
As readers involved in the land development process well know, when project status meeting topics turn from grading and utility infrastructure to developing CC&Rs and Design Guidelines, it’s a sure sign that progress is being made. That’s been the case recently at Juniper Ridge Management Advisory Board meetings. After months of slogging through zoning code amendments, water and sewer engineering, and financial models, the Board has turned its focus to landscaping standards and signage criteria. Transportation issues on Highway 97 and Cooley Road still need final resolution, but the City of Bend and ODOT are working well together, and are zeroing in on a solution and the terms of a funding agreement. David Ditz, Juniper Ridge Project Executive, expects the Zone Change process to be complete, and lots to be available for sale, by summer 2010.
Bend’s own Trusted Sports in national spotlight
With more than 70% of kids dropping out of sports before they turn thirteen, Bend-based Trusted Sports was created in 2009 to keep kids in the game. The organization seeks to motivate kids to thrive in life through sports inspiration and education. Using Trusted Sports online 
and mobile platforms, young athletes, parents and coaches can create their own local, secure communities.
Trusted Sports created the national High School Football Rudy Awards that honor inspirational football players who best define what Daniel 'Rudy' Ruettiger (former Notre Dame player and subject of the blockbuster film “RUDY”) refers to as the "The Four C’s": Character, Courage, Contribution and Commitment. The awards have received national coverage in CNN, The Huffington Post, AOL Sports, Yahoo News and the LA Times. Watch the CNN video or read the Huffington Post article about the Rudy Awards.
Trusted Sports recently opened up an initial funding round of $250,000 to outside investors and has already received commitments of $100,000. Learn more at Trusted Sports or by calling CJ Edmonds at 541-693-4904.
Analysis of Jefferson County educational needs to help steer Oregon Open Campus
Members of the Education Council of Jefferson County have been conducting interviews with major businesses, agencies, government entities and school officials to identify the immediate advanced educational needs for the county. The first round of interviews will be completed by mid January. The Council, along with Teresa Hogue, OSU-Extension and Carol Moorehead, COCC Continuing Education, will analyze the data to identify the most pressing needs as well as subsequent needs and identify temporary facilities that could be used to conduct classes starting the first quarter in 2010. Each interview has been enthusiastically received and there is a collective excitement about starting advanced educational courses in Jefferson County in the near-term.
Jefferson County land use requirements under review to cover potential solar projects
EDCO - Jefferson County and the Jefferson County Planning Department are launching a Land Use Task Force to identify the land use requirements for solar farms and work with neighboring counties, land use agencies, and state land use boards to modify the land use guidelines to allow for potential solar (and a possible bio-fuel counterpart) renewable energy projects. The state’s goal for a significant portion of electric generation from renewable energy sources (excluding hydro) by 2025 is admirable, but the land use goals have not kept pace with this priority as it relates to solar. The Jefferson County Commissioners are supporting this initiative to enable effective use of extensive, non-prime agricultural, range land and plentiful sunny days.
Prineville-Crook County Chamber announces new leader
After months of searching and community interviews, the Prineville-Crook County Chamber of Commerce has selected Bill Gowen as its new 
director. Gowen has been a chamber board member for well over a decade, and was the Operations Manager for Mt. Bachelor Academy, until its closure earlier this year. His business experience and knowledge of the community is what ultimately led to his hire, says Chamber President Bryan Iverson. With a new leader in place, the Chamber also chose to rename the title of the position from Executive Director to CEO. “That’s to reflect the business nature of the Chamber, and our commitment to growing business and tourism in Crook County,” explains Iverson. Gowen will work closely with Prineville’s Economic Development Manager, Jason Carr, as an advocate for the business community. His first day on the job was Monday, January 4th.
Progress on Redmond’s CRC pilot program makes the grade
In late December the statewide Career Readiness Certificate Program (CRC) Administrator for the Department of Community Colleges and Workforce Development (CCWD) Todd Nell was in Central Oregon to review progress made since the start of Redmond’s pilot program. Nell was joined by Rene Leger, Executive Director for Portland’s E3 “Employers for Education Excellence,” who is on loan as a consultant to the Department to assist in the development of Oregon’s 13 pilot programs.
Local steering committee members provided progress reports on the 500 individual tests given at Redmond High School and the Redmond WorkSource Center of which 190 certificates have been awarded. The Certificates provide an assessment of the foundational skills of Oregon’s workforce using the WorKeys series of testing in three categories – Reading for Information, Applied Mathematics, and Locating Information. Additionally, the local group shared the successful completion of a second phase of the program by completing individual “Job Skill Profiles” in three job categories: Apprentice Plumber, Weatherization Technician and Weatherization Specialist.
In January, WorkSource will continue administering CRC evaluations to participants of COCC’s Adult Basic Education and Career & Technical programs, and to alternative high school students in Redmond. Next steps include bringing the assessments to local employers to test their incumbent workers in order to gain insight to the current abilities of their workforce. Nell and Leger were interested in what Redmond has done to drive the program forward and those involved are confident the CRC tool will provide a valuable region-wide service offered to all employers and workforce throughout the tri-county area in the future. The 10-month Pilot program is funded though May of 2010.
| News from HiDEC & COBIC (Central Oregon Bioscience Consortium) |
HiDEC sets 2010 Schedule
The HiDEC steering committee has set the schedule for 2010 based on feedback it received from member companies. The consortium will focus on four continuous improvement subjects each quarter:
- Q1: Workplace Organization (5s)
- Q2: Visual Controls
- Q3: Problem Solving
- Q4: TBD
Each month of the quarter will provide a different type of learning experience:
- Month 1 - Executive Forum - a chance for management teams from HiDEC companies to get together to discuss the lean subject. For example, in February, management teams will meet to discuss how workplace organization affects their company and can help the bottom line.
- Month 2 - Classroom training for all employees of HiDEC companies on the lean subject. For example, in March employees will learn about workplace organization and how it can help in their job.
- Month 3 - A kaizen event at a host company implementing the lean subject. For example, in April a company will host a kaizen event employing workplace organization tools on their production floor with the help of other HiDEC companies.
With different types of training on diverse subjects, HiDEC companies will have the opportunity to expose their entire company to the benefits of continuous improvement.
Kialoa Paddles invests in lean practices
Considering an expansion of its facilities just months ago, Kialoa Paddles in Bend, makers of hand-crafted high-performance paddles, has opted to go lean, a decision many progressive companies would consider the right move. Lean, in the sense of continuous improvement, not shedding jobs. Lean, in the sense of improving efficiency and competitiveness, not cutting corners. Kialoa is working with the Oregon Manufacturing Extension Partnership (OMEP) to examine processes, shorten lead times and improve quality.
“It is taking up great amounts of time and energy but is well worth it,” offers owner Meg Chun. “Putting all of the effort into learning and implementing lean practices has been well worth the growing pains. In the past, there was nothing more frustrating than having the right paddle model in stock but built to the wrong length and not being able to serve our customers quickly. Working with OMEP, I've become a true believer in working with lean as a business operating philosophy and we will continue to embrace it even after out contract with OMEP comes to an end."
Central Oregon Bioscience Consortium (COBIC) gains traction
The New Year brings with it a new consortium of Central Oregon bioscience companies. In the spirit of HiDEC, a three year old group of 22 manufacturing companies, the Central Oregon Bioscience Consortium (COBIC) is focused on quality training and the sharing of ideas for its members. COBIC was formed late last year and is already well on its way to providing its 10 founding members with quality training by offering classes in project management, FDA requirements, records documentation and managing quality systems. Classes start January 25. Some courses will be made available for non-COBIC members at $450 per course, space allowing. For more information, contact Tony Hnyp at 541-350-0202.
Bend inventor to appear Jan 29 on ABC’s reality show Shark Tank
Reporter Peter Ames Carlin reports in today’s Oregonian that Bend architect-turned-inventor Mark Burginger will be featured in an upcoming Shark Tank episode with his building block invention. Burginger describes his Qubits building blocks as more complex than Legos or Lincoln Legos, attributing their design to “the influence of molecular shapes, along with the geometric concepts developed by mathematician/architect/futurist Buckminster Fuller.” Read the fully story here.
Forbes ranks Oregon tenth best state for business
Oregon has moved up significantly in Forbes’ Best States for Business ranking. In 2006, it was ranked 17 and has now moved into the Number 10 slot. Using data from nine different sources, Forbes’ ranking measures six main areas: costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Click here to see more on the methodology. Oregon fares best on Labor Rank (measures educational attainment, net migration and projected population growth) and poorest on Regulatory Environment. Virginia secured the top stop again, Washington moved from 3rd to 2nd place, trading places with Utah. California was ranked 40th, earning the poorest score possible on business costs.
New patent awarded to DENT Instruments
DENT Instruments announced recently that their “PhaseChek” electrical metering circuitry has been awarded a patent. The Bend-based company supplies precision measurement instrumentation and analytical software to a wide variety of utility, government, and private customers to help them better manage energy. President Christopher Dent explains the importance of the development, noting that “a mis-wired electrical meter can be insidious in the sense that it will still measure and record power and energy information—it will just be wrong. Sometimes it takes days or longer for someone reviewing the data from the meter to determine that the data is incorrect and send another crew to check and correct the installation, resulting in higher labor costs and lost data.”
Ernst & Young taxation study shows Oregon has favorable business tax rates
The Council On State Taxation (COST) released their seventh annual study of state and local business taxes. The report, prepared by Ernst & Young LLP, examines all state and local business taxes paid in each of the 50 states in FY2008. Ernst & Young’s state-by-state comparison reveal significant variation in the share of state and local taxes paid by businesses across the US. Find the full study here. Key findings include:
- Nationally, state and local business tax growth is slowing in line with state and local taxes.
- Total business taxes represented 44.1% of all state and local taxes collected in FY2008, the same as FY2007, but up slightly from 43.4% in FY2002.
- In Oregon, businesses pay a relatively low share (30.4%) of the total tax burden. At 38.2%, California is close to the 39.7% U.S. average.
- The ten states with the highest business tax burdens are: AK (96.8%), DE (56.8%), LA (50.0%), NH (60.5%), NM (57.0%), ND (64.1%), SD (54.6%), TX (60.6%), WA (53.6%), and WY (75.0%).
- The composition of total state and local business taxes paid varies by industry, with manufacturing and transportation continuing to face significant property taxes and sales taxes on business purchases.
| Upcoming Events in Central Oregon |
Jan 14 – State and Local Business Incentives
Business Oregon and the attorneys of Schwabe, Williamson & Wyatt are presenting a complimentary video conference on the role of tax incentives as an inducement for business development and competition with other states. The presenter is Art Fish, Incentives Coordinator, Business Oregon (Oregon Business Development Department). Art will cover all the applicable programs under Oregon law, including energy and other tax credits, enterprise zones and the strategic investment program. The presentation is 3:00 – 5:00 pm with a reception to follow. Click here for event details; please RSVP by January 11 to Cindee Gannon at 541-749-4043.
Apr 11-13 – Governor’s Tourism Conference – Celebrate the Past, Envision the Future
Over 400 visitor industry executives, business and community leaders, sales directors and decision makers from Oregon and the Northwest will gather in Bend for a three day tourism conference on the hospitality industry. Workshops include interesting topics such as geotourism, agritourism, using social media, and partnering opportunities with the film industry. Early Bird registration is $250 and begins January 2010 at www.OregonTourismConference.com. Exhibitor and sponsor information is available here or contact Dian Hillard at 971-506-5251.
May 13 – Willamette Angel Conference calls for early stage entrepreneurs by Feb 1
The Willamette Angel Conference, which will be held in Eugene, Oregon for the first time on May 13, 2010 at the historic McDonald Theatre, is officially accepting business plan submissions from emerging growth companies seeking seed-stage financing. Qualified applicants (must be an emerging growth company headquartered in Oregon and seeking between $200,000 and $2 million in investment capital) can submit for a chance at winning a minimum investment of $125,000. Early Bird registration is $149, saves participants $50, and includes additional coaching. Click here to submit your company before midnight, Feb 1st to take advantage of the Early Bird discount. Note that edits to business plans can be made post submission through March 15th via AngelSoft. Check out the benefits of submitting to the Willamette Angel Conference.
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
Individual Level: John L. Scott, Bobbie Strome (1989)
Silver Level: MHi Development Corp. (1988)
Platinum Level: Mid Oregon Credit Union (1986)
New Members
SisTech Manufacturing - Bronze
Based in Bend, SisTech Manufacturing, Inc., provides contract electronic manufacturing and mechanical assembly services to the electronics industry. The woman- and minority-owned business company has over 30 years of experience in high tech assembly, design review, purchasing, project management, and order fulfillment for large companies as well as at startups. The six-person company works in both prototype and full production modes, and helps client companies reduce lead times with rapid setup. Lorraine Kennedy, President and CEO, worked for 13 years in purchasing at Lockheed Martin. Brad Kennedy, VP Operations, has an extensive background in plant management and operations, including General Electric.
Debbie Parigian - Individual
In moving her company, Corporate Growth Associates, from Portland to Bend, founder Debbie Parigian has brought a depth of experience in financial-based management. A CPA and CFO, Debbie describes herself as a focused and hands-on senior executive; she has over 30 years experience in a variety of industries for early and mid-stage companies, including Sizzler, PacTel Products, Deschutes River Broadcasting, and Learning.com. She played a major role in the development of their growth strategies and established the budgetary and internal systems required to handle growth and/or turnaround. Debbie tells us she thrives on training and motivating clients’ internal teams.
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