March 2011 eCon Update

You’re invited to attend EDCO’s Annual Luncheon on March 14th to hear Governor Kitzhaber discuss job creation
EDCO is pleased to announce Governor John Kitzhaber as the keynote speaker at our 14th annual luncheon event. Titled “Getting Our Economy Turned Around,” Governor Kitzhaber will discuss the single most important topic in Central Oregon today: strong economic development and job creation. He’ll also outline his action plan to keep Oregon competitive and attractive in a global economy.

Our event sponsors, OSU-Cascades, Schwabe Williamson & Wyatt, and BendBroadband, along with the EDCO Board of Directors and Staff, encourage the general public to attend. We believe that job creation has a higher priority than any of our individual political beliefs or party affiliations and think it’s critical to understand the Governor’s economic plan and get involved to make it successful. The Q&A session is planned to be engaging.


We expect the luncheon to sell out, so please RSVP early to reserve your seat.

Date: Monday, March 14th
Time: 11:30 am-1:30 pm; Check-in begins at 11:15 am
Where: The Riverhouse Convention Center
Cost: $50 EDCO Members; $65 Non-Members; Corporate Tables of 10 are available for $500 
RSVP: events@edcoinfo.com; or call 541-388-3236

A first in PubTalk history! Join us March 17th as PubTalk heads to Three Creeks Brewery in Sisters
The March PubTalk showcases talent and new technology in a hyper local way….in Sisters. Join EDCO Staff and PubTalk sponsors as we head to Three Creeks Brewery, for a truly “green” St. Patty’s Day!

• Keynote speaker is Benny Benson, Founder and Owner of Energyneering, a national firm specializing in gas-to-energy facility designs, construction and operations—all managed from a town under 2,000 people.
  
• Early stage presenter Tracy Curtis, designer and owner of Ballokai, will showcase her fashion designs, made of coffee bags, guitars strings and much more.
  
• The second early stage presenter is Jacquie Zanck, local bicycle shop owner of Blazin Saddles. She’ll share her expansion plans and belief that in Sisters, outdoor recreation is traded-sector.

Mt. Bachelor is graciously hosting a shuttle to take PubTalk attendees to Sisters; it leaves at 4:45 pm from the EDCO parking lot. There are just 45 seats on the bus, so first come, first to get a ride! C’mon! It’ll be fun! Contact Dayna or register online. April’s PubTalk will resume at McMenamins on the 21st.

Summary of EDCO’s current Pending Projects – in a word: brisk 
The fourth quarter of 2010 was quite active in terms of business development activity for EDCO, with many companies moving forward on expansion or relocation projects. The trend has continued and picked up momentum through first two months of 2011, as indicated by the growing number of pending projects in EDCO’s portfolio.

Measure	Recruitment	Retention & Expansion	Start-up & Early Stage	Totals
# of Companies	38	25	19	82
# Expected Jobs Created	561	453	180	1,194
Expected Capital Investment	$865.5 million	$39.2 million	$88 million	$983.7 million

In recent months several projects were rolled off the numbers above, to our “done deal” category, only to be backfilled by other companies that are seriously evaluating expansion, relocation or launch decisions. As noted in the past, EDCO’s terminology for “pending projects” is quite conservative—referring only to companies that 1) are in the final stages of the decision making process and 2) where a Central Oregon community is among the top option. Initial leads, potential prospects or other general interest inquiries are not tallied in pending projects. Often it takes months or even years to move an inquiry to pending status. Additionally, our tracking does not include companies that are expanding without the need for EDCO's assistance - be it business finance, incentives, fast-track permitting, logistics, workforce training, production efficiency, connections with suppliers, etc. For EDCO's metrics, a pending project does not become a "done deal" until the company occupies a new facility, substantially creates the expected new jobs, or puts into action new equipment. 

Despite the lingering effects of the recession, EDCO closed out a strong year for "done deals" in 2010, during which 3 traded-sector companies were recruited to the region and 11 firms expanded, adding jobs. Combined, these projects created 260 new, well-paying jobs and invested $15.7 million in capital investment. Conservative estimates are that this aggregate new employment supported an additional 520 jobs in other sectors. 

Most pending projects are bound by confidentiality, but some higher profile projects become public knowledge. With the table above, we expect to see several projects within the first two quarters of 2011 move to completion, including Facebook, Tencility, LMH Industries (see articles below), BendBroadband Vault, Navis, Dent Instruments and Nashelle. All this activity supports our contention that the economic recovery is real and at last employment growth will make it feel more tangible.  

EDCO, COVA join consultant Mead & Hunt to make case for improved commercial air service for Central Oregon 
A three-member team quarterbacked by air service consultant Mead & Hunt traveled to Chicago last month to meet with United Airlines (UA), now the world’s largest commercial air carrier. The purpose of the meeting with UA was to discuss market trends, performance, scheduling and to update the airline’s planning team with more current economic trends about the region. United is currently in the thick of its merger with Continental Airlines and may have both the system capacity and right-sized aircraft to expand its presence to and from the Redmond Airport (RDM). The team discussed both future destinations and opportunities for increasing current service.

COVA Executive Director Alana Audette provided an overview of current trends in the visitor industry and EDCO Executive Director Roger Lee updated the UA planning team with data on leading indicators for the overall economy. Joseph Pickering, a former airline planner himself and current Senior Consultant for Mead & Hunt (RDM’s contracted air carrier expert), provided financial scenarios on specific service upgrades for RDM. EDCO will be doing some follow up work to this meeting, including a survey of business and individuals that regularly use the Redmond Airport on what metro markets are most important for them to directly access. If you or your business would like to receive this survey, contact Erin Chaiet.

EDCO generates leads at Medical Device Manufacturing show (MDM West), reflective of an improving business climate 
Last month a team of three representatives from EDCO walked the largest medical device manufacturing show on the west coast in an effort to specifically prospect California-based companies that may have an interest in relocating to the Central Oregon region. The trade show, at which more than 2,500 companies exhibit, also offered the opportunity to connect with Oregon-based manufacturers and suppliers to the medical device industry.

Joining Executive Director Roger Lee was Les Mace, chair of the EDCO Recruitment Committee and a longtime executive for a Washington-based medical device company, and Riverside County/Bend resident Bill Callaway. The team canvassed approximately 1000 companies over two days. Both Callaway and Mace volunteered their time to generate a combined lead total of more than 70 who are interested in learning more about the tri-county area or have plans to expand or relocate in the future.

Companies we spoke with from across the country were generally upbeat about the economy and orders, which was a very different story than the previous two years. Outlook for the industry remains strong, although many larger OEMs (Original Equipment Manufacturers) have taken at least a portion of their manufacturing overseas or to Mexico, putting a squeeze on the U.S.-based supply chain.

EDCO’s Stable of Experts continues to grow and connect dots (people, that is) 
Since its inception last fall, the Central Oregon Stable of Experts has already assisted ten startup companies in the region with multiple needs, ranging from executive management, placement of board/advisory board members and product development, to accounting services and direct angel investment. Here’s how it works:

1. An entrepreneur contacts EDCO with an issue, need or request for help with their early stage company
2. The Stable of Experts database is searched to identify a potential candidate to assist the entrepreneur
3. If the search is successful, EDCO connects the entrepreneur and the expert to discuss a working relationship
4. The result? Success stories for startups in Central Oregon!

If you have expertise that early stage companies need and are willing to volunteer, let us know. For more information about the Central Oregon Stable of Experts, please contact EDCO at (541) 388-3236 or info@edcoinfo.com.

Do you know of an exceptional family business? OSU’s Austin Family Business Program is looking for nominations 
A family business is broadly defined as having multiple family members or generations involved in the company’s strategy, management, and operations, with the intent to keep the business in the family. Nominations can come from business associates, trade and community organizations, friends and employees and must be submitted by April 1, 2011. Click here to learn more.

NEWS FROM CENTRAL OREGON'S CITIES AND COUNTIES

EDCO-assisted company, Tensilitiy, selected Bend over other Oregon cities to grow its business 
Tensility designs and distributes cable assemblies for OEM (Original Equipment Manufacturer) and entrepreneurial companies, with a customer base that covers diverse industries such as LED lighting, solar technology, manufacturing, consumer electronics, and automotive. The company recently made the move from Valencia, CA to escape the high cost of doing business and improve quality of life. EDCO has helped Tensility with finding a site, fast track permitting, and incentives to accelerate its growth.  

Company owner Seana McKenzie says, “We were looking for a location in the Pacific Northwest with a solid business community and a cost structure that could support our growth. We added Bend to the list because we liked it, not thinking it could win in our impartial analysis. However, after evaluating the costs, the employment pool, the quality of life, and the services available, Bend scored the highest.” Tensility has been growing steadily and plans to add eight new employees in the next two years. McKenzie adds, “Since we are planning to hire, we really wanted to be in a place where residents are excited to be part of their community. We want to get involved, so we wanted to find employees who are in sync with that goal.” In the coming years, Tensility’ s emphasis is on expanding engineering and marketing to further its domestic and international business development.

Cable assembly manufacturer LMH Industries selects Redmond to locate; to hire a total of 40 employees
Working on a quick timetable, LMH Industries was able to start production on March 1st, as they finish hiring the last of the 15 precision workers they need to manufacture cable assemblies used in the military, medical, and aerospace industries. In the coming months, the company will be hiring up to 40 employees in supervisory, administrative and logistical positions. (For employment opportunities, contact Teresa Bigness with the Redmond Employment Office at 541-548-8196, Ext. 327.)  

LMH is a new entrant into the cable assembly market which the company estimates to be $100 billion dollars worldwide. After looking at other potential Oregon locations, LMH chose Redmond because of its favorable workforce demographics, as well as logistical and cost advantages. Redmond Economic Development, Inc. (REDI) helped LMH with site considerations and incentives, including the Greater Redmond Area Enterprise Zone program, which LMH qualified for in early February. “We’re pleased LMH selected Redmond over other areas,” said Jon Stark, REDI Manager, “and know their hiring plans will give Central Oregon a nice boost.” 

Basalt rock in Jefferson County: natural beauty to job creator? 
We’re all familiar with picturesque volcanic outcroppings, formed of basalt, in Central Oregon. A local variant of lava rock that is very dense has been found in Jefferson County and tested to meet the requirements for the Oregon Coastal jetty rehabilitation project by the Army Corps. When the Columbia River Jetty project contracts are released later this year, this rock could create long-term jobs relating to extracting and transporting rock it to the coast.

Beyond the coastal application, the basalt rock is extremely valuable as ballast for mainline railroads and its applications as a natural fertilizer. Basalt rock dust can also be melted and made into basalt fiber for use in many applications of composite materials because of its extreme tensile strength, light weight characteristics, and non-corrosive and non-toxic properties. Multiple industry projects with numerous potential jobs are possible with this local deposit of very dense basalt rock.

Internship program launched in Jefferson County
High school students need more than an awareness of career opportunities in their communities, they need in-depth exposure. Mark Foster, CEO at Keith Manufacturing, was propelled by this seed idea; it then became a passion for Kurt Davis, Culver High's School to Work Director, and a priority with the EDCO-initiated Education Council. The internship program has been officially launched with three students from Culver High School spending 2 hours, two days a week, job shadowing their mentors in assembly, welding, machining, extrusion and shipping.

“We are working to expand this program to all Jefferson County industries, business services and government agencies with students from Culver and Madras High Schools,” said Jefferson County Economic Development Manager Wayne Pearson. “It’s a win/win for all participants.  The program gives students insight, motivation and direction while businesses have the potential to find motivated employees.”

Two Crook County property owners look to gain state certification as shovel ready
After Business Oregon officially certified the Tom McCall Industrial Park in Prineville earlier this year, two more property owners in Crook County are hoping for the same designation. The program helps industrial property owners make sure their site is shovel-ready, and is void of any major environmental, zoning, or other issues that could slow sale or development. Plans include adding a 46 acre parcel across from Woodgrain Millwork on Main Street and a 160 acre parcel next to Les Schwab’s distribution center. Both properties are likely to be designated “state certified” this spring or early summer.

Crook County to expand Enterprise Zone
Nearly 1,000 acres are expected to be added to the enterprise zone in Crook County and Prineville this spring. The zone, first created in 2003, has remained largely unchanged – but several key industrial properties with rail and airport access were originally left out. “Having the enterprise zone cover all of our prime development land is important from a competitive standpoint. Businesses and site selectors like having options,” said Prineville Economic Development Manager Jason Carr. Prineville’s rural enterprise zone allows destination resorts to use the zone, but only for overnight lodging. A section of Brasada Ranch is expected to be included.

COCC’s “Seven Weeks to Starting Your Business” class in Sisters a big success 
Exploring strategies for entrepreneurial success, Small Business Development Center (SBDC) Advisor Maureen Quinn guided her engaged group of students to the ultimate deliverable: a completed business plan by course end. SCORE mentor Marvin May also assisted students with questions and advice. What are your goals? Where will you get the money for your idea? Who is your customer? How will you reach them? In a focus group atmosphere, students explored these questions and discussed the difference between just working in a business and, as an entrepreneur, working on the business. Each student practiced and honed their 15 second elevator pitch—what to say if you were in an elevator with Warren Buffet and he said “So tell me about your company.” The group is now more focused and prepared to succeed says Quinn. Redmond and Madras can look forward to the same class being offered in their cities.

FROM THE LEARNING CORNER

New study highlights Tri-Cities area for business, technology and innovation climate
A recently released report, Index of Innovation & Technology completed by the Pacific Northwest National Research Laboratory/Battelle for Washington State’s Tri-Cities metro, provides illuminating comparisons between other cities in Idaho, Washington and Oregon. Profiled in the index are technology employment levels, education, patent generation, R & D expenditures, tax burden, cost of living and quality of life factors. Long the benefactor of steady and sizable federal investments associated with the Dept. of Energy’s lab there, the Tri-Cities area has weathered the “Great Recession” much better than many small metros in the western U.S.  

Interestingly, some barriers for the innovation and technology development in the Richland-Pasco-Kennewick area mirror those in Central Oregon – access to private equity capital (angel and venture) being at the top of the list. Unlike our tri-county region though, little of the Tri-Cities area’s employment growth is attributed to entrepreneurial activity. A measure also covered in the report was a “Services to Technology Companies” section that outlined “nearly three dozen organizations and government partnerships that assist in economic development.” Included in the list were local municipalities, counties, colleges, local and regional economic development organizations, chambers of commerce, ports and even irrigation districts.  

EDCO will be looking for ways to use to comparative data provided by the study to generate a similar analysis that includes Central Oregon measures.

UPCOMING EVENTS

Mar 11: HiDEC hosts one day event to focus on product flow and efficiency at CORIL
Join HiDEC members in a one-day event at Central Oregon Resources for Independent Living (CORIL). HiDEC will be helping CORIL supervisors and staff to improve product flow and organization. CORIL gives people with developmental disabilities the opportunity to be trained in various tasks from their 5,000 square foot work center in Bend. Local business outsource tasks to CORIL include mailings, product packaging, fulfillment, light assembly, shrink wrapping and secure document destruction.  Product packaging and shrink wrapping of candy bars will provide the example for the exercises. RSVP to Eric Strobel, 541-388-3236.

Mar 14: Don't miss EDCO’s 14th Annual Luncheon features Governor Kitzhaber as keynote speaker
The public is invited to attend this luncheon at The Riverhouse Convention Center in Bend to hear Governor Kitzhaber in person outline his economic development and job creation policies. See the top article in the newsletter for more details.

Mar 16: Leading for Efficiency and Productivity: Lean Principles from Administration to Culture
Opportunity Knocks, Central Oregon’s business assistance organization, has assembled top notch experts for a best practices seminar on lean principles. In the manufacturing realm, Dave Slavensky, COO of Structus Building Technologies, presents a “how to” success story while Lindsey Foster-Drago, Value Stream Manager for Keith Manufacturing, covers the tools for changing corporate culture. Tracy Campbell-Parks, owner of Simplicated and a productivity consultant, will discuss optimizing workflow practices in business environments. The seminar is at The Phoenix Inn in Bend, from 11:30 am to 1:30 pm, with lunch provided. More details.

Mar 29: “Handbook Headaches, Be Gone!” Employee Handbooks: Essentials and Updates
Join the Karnopp Petersen LLP employment law team for an engaging look at what to consider, what to embrace and what to altogether avoid in regards to your company’s employee handbook. This morning seminar (7:30 – 8:30 am) is part of the firm’s ongoing employment law series and will be held at Karnopp’s offices, 1201 NW Wall St, Ste 200, Bend, OR 97701. Please RSVP to Jan’el Morris by March 25, 2011.

March 31: Winning the Hiring Game – More than a Trivial Pursuit 
Joyce Luckman, Director of Human Resoures for Sun Forest Construction, will present the keys to successful hiring to area employers, on Thursday, from 7:30 a.m. to 12:15 p.m. at the Oxford Hotel, 10 NW Minnesota Avenue, Bend. Cost is $50 per person and includes a full breakfast. Registration is required, as seating is limited. For information and to register, contact Denise Pollock, 541 388-6024.

Mar 24-25: Ruby on Ales Technology Conference in Bend
Yes, you read that right. Not Ruby on Rails, but Ruby on Ales. That’s the Central Oregon version of training for the popular programming language Ruby on Rails—with a dash from our acclaimed brew pubs and spring skiing. Staff from G5 Search Marketing (Coby Randquist, Josh Sullivan, Mark Turner) and CodeBenders (Michael Taus, Matt Kern) are organizing the technology conference and you can view the details here. Contact Mark Turner for additional details.

May 19-20: Government Contracting Workshops
Also in the “hold the date” category, you may be interested in two government procurement workshops to be held in Central Oregon this spring with Oregon’s Government Contract Assistance Program. Both will offer one-on-one half hour appointments for interested parties. More information will be forthcoming; look for additional details from COCC’s Small Business Development Center and in the March eCon Update.

• May 19, Bend | Basics of Doing Business with the Federal Government
• May 20, Redmond | Government Procurement - General Services Administration’s (FSS) Federal Supply Schedules
  
  

EDCO MEMBERSHIP

Renewing Members
Thanks go to these renewing members who fund EDCO’s efforts to recruit new companies to Central Oregon and help local companies grow their operations.

Individual Level: Century 21 Gold Country Realty – Jim Prosser (2006), Project Development, LLC (2005), Windermere Real Estate - Diana Barker (2005)

Bronze Level: Atlas Guides (2009), Bend Garbage & Recycling (1986), Centro Print Solutions (1987), Earth Advantage/Energy Trust (2009), Grace Bio Labs (2008), Miller Nash, LLP (2006), Shackelford Vervloet & Associates, LLC (2009), SisTech Manufacturing, Inc. (2009), Swift Steel, (1987), Windermere Central Oregon Realty – Patty Dempsey & Team (2006)

Platinum Level: Cascade Natural Gas Corporation (2003)

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