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Chamber's Sector Strategy Drives Vibrant Economy An excerpt from the Eugene Life Business Directory and Community Guide, published February, 2017 The economy is vibrant in Lane County and the Chamber is actively supporting traded-sector businesses, helping them solve issues and take advantage of the many growth opportunities, with the goal of retaining and creating jobs in the Eugene-Springfield area. Locally we have embraced the concept of sector strategy, working with various sectors to support and help them grow. Technology The technology industry has been a force in the Eugene-Springfield area since the industry’s inception. According to the Oregon Employment Department, there are about 4,400 people employed at Lane County’s 418 technology firms. By 2024 the sector is expected to employ 5,418 people, an increase of 28 percent. The average wage for a technology worker is $74,000 – a far cry from the area’s average of $40,824. Lane County tech firms still tend to be small (around 40 to 50 employees) and majority of their sales are outside of the area, which is one reason Eugene’s tech sector flies under the radar. But it has also led to a very collaborative sector. CEOs frequently gather to share their experience on topics such as access-to-capital or mergers and acquisitions and recently, twenty tech companies opened their doors for TechCrawl, where more than to more than five hundred visitors got to look under the hood at other tech companies. The ability to hire good-quality is another reason companies are heading to the Eugene-Springfield area. “Besides having good skills in their respective fields, Eugene seems to produce hard working, loyal, high integrity people with good problem solving skills,” says Weatherly. “It used to be that people would go where the jobs were,” says Matt Sayre, director of the southern Willamette Valley for the Technology Association of Oregon, a members based non-profit that focuses on creating an environment where technology companies can thrive. “Now the jobs go where the people are.” Infrastructure is another element of Eugene’s tech edge. The city is in the process of installing a high-speed fiber line in the downtown core. Businesses with fiber get affordable gigabit internet service and the ability to directly connect to cloud providers like Amazon and Microsoft. “We’re increasingly headed toward being one of the best places in the country for internet access,” Sayre says. Buildings that are currently part of the fiber pilot project have a zero percent vacancy rate, compared to an average of 12% vacancy rate for all of downtown. Higher education also contributes to the healthy tech sector. The University of Oregon’s computer science department is offering new curriculum in cybersecurity and a minor in data science/internet of things. There are also more open lines of communication between businesses and professors. “Over the last couple of years I’ve seen the University of Oregon really step up and commit the resources and effort to advancing their Computer and Information Science program so they’re producing computer science students who are ready to join the workforce,” Bruckner says. Lane Community College is also doing a great job of preparing students to work in tech including a program called Coder Dojo, teaching young people how to code in partnership with engineers at local tech company Lunar Logic. Manufacturing Lane County is developing a strong workforce in all sectors, including manufacturing. Data from the Oregon Employment Department shows that Lane County will add 16,800 jobs between 2014 and 2024. Although jobs in health care, social assistance and business services will add the most positions, the Eugene-Springfield area is expected to add 1,700 jobs in manufacturing, 900 in construction and 300 in natural resource extraction (including logging and sand and gravel). Many of these high-demand jobs still offer above-average wages. Wood products, the largest subset of manufacturing, and machinery, the third largest subset, can provide annual salaries of over $60,000. Locally several of the biggest employers are hardwood plywood panel manufacturer States Industries, Eugene-based Johnson Crushers International (JCI), which manufactures rock crushing and screening equipment and Bulk Handling Systems, which manufactures recycling and materials handling equipment. An aging workforce means young people will have plenty of chances to move into higher-paying positions the coming years. Taylor says States Industries is dedicated to offering their employees multiple opportunities for advancement. The company can even help with professional development. “If people are interested in learning to be electricians, machinists or millwrights, we’ll pay for their schooling at Lane Community College,” he says. Food and Beverage Sector Food and beverage manufacturing is thriving, but it’s also an industry that has deep roots, with manufacturing of consumables dating back many decades in Lane County. Eugene has developed an identity as a manufacturer of quality craft beer, cereals, frozen desserts, teas, snack foods and honey, making it a highly important sector that brings money back into this community and provides family-wage jobs. Eugene is a good place for food and beverage manufacturers in part because it has close access to a broad range of agricultural products grown in the Willamette Valley and along the West Coast between the Yakima Valley and California. We also have access to great water to support the breweries and easy access to food technologists for testing products for safety and quality at area universities and in Portland. Between 2010 and 2015, the number of businesses that make up Lane County’s food and beverage sector grew from 125 to 144, according to Oregon Employment Department figures. Jobs in the sector increased by 23 percent during that time frame, from 2,907 to 3,572. Projections made in 2012 were that employment would grow by 13.2 percent over 10 years in sector. So far business is on track to significantly bypass that number, Rooney said. Growth was a little over 15.6 percent in the first three years. That would represent a 52 percent growth rate overall if the growth continued over the full 10-year period, Rooney said. Infrastructure, including commercial space, access to energy due to other types of manufacturing, and proximity to Interstate 5 and railways have also contributed to the growth, regional economist Rooney said. In January 2016, the Eugene Chamber convened more than 30 food and beverage leaders to discuss barriers and opportunities for growth in Lane County. The team is working to start, grow and attract more food and beverage companies, to streamline regulations and permitting, and to smooth the cost of utilities, said Leigh Anne Hogue, director of economic development for the Chamber of Commerce. It also is formulating plans for branding and promoting Lane County, building a stronger workforce and increasing collaboration within the industry, Hogue added. One key player in the industry locally is family-owned SnoTemp Cold Storage, which supports the food and beverage industry with 5 football fields of space storing everything from raw goods to finished desserts awaiting shipment throughout the United States and the world. Among their clients are Eugene’s own Ninkasi Brewing Company which produced more than 100,000 barrels last year, making it the 36th largest craft brewer in the country. Eugene is also home to GloryBee, Wildtime Foods, Attune, Foods, Yogi Tea and many others.
The economy is vibrant in Lane County and the Chamber is actively supporting traded-sector businesses, helping them solve issues and take advantage of the many growth opportunities, with the goal of retaining and creating jobs in the Eugene-Springfield area. Locally we have embraced the concept of sector strategy, working with various sectors to support and help them grow.
Technology
The technology industry has been a force in the Eugene-Springfield area since the industry’s inception. According to the Oregon Employment Department, there are about 4,400 people employed at Lane County’s 418 technology firms. By 2024 the sector is expected to employ 5,418 people, an increase of 28 percent. The average wage for a technology worker is $74,000 – a far cry from the area’s average of $40,824.
Lane County tech firms still tend to be small (around 40 to 50 employees) and majority of their sales are outside of the area, which is one reason Eugene’s tech sector flies under the radar. But it has also led to a very collaborative sector. CEOs frequently gather to share their experience on topics such as access-to-capital or mergers and acquisitions and recently, twenty tech companies opened their doors for TechCrawl, where more than to more than five hundred visitors got to look under the hood at other tech companies.
The ability to hire good-quality is another reason companies are heading to the Eugene-Springfield area. “Besides having good skills in their respective fields, Eugene seems to produce hard working, loyal, high integrity people with good problem solving skills,” says Weatherly.
“It used to be that people would go where the jobs were,” says Matt Sayre, director of the southern Willamette Valley for the Technology Association of Oregon, a members based non-profit that focuses on creating an environment where technology companies can thrive. “Now the jobs go where the people are.”
Infrastructure is another element of Eugene’s tech edge. The city is in the process of installing a high-speed fiber line in the downtown core. Businesses with fiber get affordable gigabit internet service and the ability to directly connect to cloud providers like Amazon and Microsoft. “We’re increasingly headed toward being one of the best places in the country for internet access,” Sayre says. Buildings that are currently part of the fiber pilot project have a zero percent vacancy rate, compared to an average of 12% vacancy rate for all of downtown.
Higher education also contributes to the healthy tech sector. The University of Oregon’s computer science department is offering new curriculum in cybersecurity and a minor in data science/internet of things. There are also more open lines of communication between businesses and professors.
“Over the last couple of years I’ve seen the University of Oregon really step up and commit the resources and effort to advancing their Computer and Information Science program so they’re producing computer science students who are ready to join the workforce,” Bruckner says. Lane Community College is also doing a great job of preparing students to work in tech including a program called Coder Dojo, teaching young people how to code in partnership with engineers at local tech company Lunar Logic.
Manufacturing
Lane County is developing a strong workforce in all sectors, including manufacturing. Data from the Oregon Employment Department shows that Lane County will add 16,800 jobs between 2014 and 2024. Although jobs in health care, social assistance and business services will add the most positions, the Eugene-Springfield area is expected to add 1,700 jobs in manufacturing, 900 in construction and 300 in natural resource extraction (including logging and sand and gravel). Many of these high-demand jobs still offer above-average wages. Wood products, the largest subset of manufacturing, and machinery, the third largest subset, can provide annual salaries of over $60,000.
Locally several of the biggest employers are hardwood plywood panel manufacturer States Industries, Eugene-based Johnson Crushers International (JCI), which manufactures rock crushing and screening equipment and Bulk Handling Systems, which manufactures recycling and materials handling equipment.
An aging workforce means young people will have plenty of chances to move into higher-paying positions the coming years. Taylor says States Industries is dedicated to offering their employees multiple opportunities for advancement. The company can even help with professional development. “If people are interested in learning to be electricians, machinists or millwrights, we’ll pay for their schooling at Lane Community College,” he says.
Food and Beverage Sector
Food and beverage manufacturing is thriving, but it’s also an industry that has deep roots, with manufacturing of consumables dating back many decades in Lane County. Eugene has developed an identity as a manufacturer of quality craft beer, cereals, frozen desserts, teas, snack foods and honey, making it a highly important sector that brings money back into this community and provides family-wage jobs.
Eugene is a good place for food and beverage manufacturers in part because it has close access to a broad range of agricultural products grown in the Willamette Valley and along the West Coast between the Yakima Valley and California. We also have access to great water to support the breweries and easy access to food technologists for testing products for safety and quality at area universities and in Portland.
Between 2010 and 2015, the number of businesses that make up Lane County’s food and beverage sector grew from 125 to 144, according to Oregon Employment Department figures. Jobs in the sector increased by 23 percent during that time frame, from 2,907 to 3,572.
Projections made in 2012 were that employment would grow by 13.2 percent over 10 years in sector. So far business is on track to significantly bypass that number, Rooney said. Growth was a little over 15.6 percent in the first three years. That would represent a 52 percent growth rate overall if the growth continued over the full 10-year period, Rooney said. Infrastructure, including commercial space, access to energy due to other types of manufacturing, and proximity to Interstate 5 and railways have also contributed to the growth, regional economist Rooney said.
In January 2016, the Eugene Chamber convened more than 30 food and beverage leaders to discuss barriers and opportunities for growth in Lane County. The team is working to start, grow and attract more food and beverage companies, to streamline regulations and permitting, and to smooth the cost of utilities, said Leigh Anne Hogue, director of economic development for the Chamber of Commerce. It also is formulating plans for branding and promoting Lane County, building a stronger workforce and increasing collaboration within the industry, Hogue added.
One key player in the industry locally is family-owned SnoTemp Cold Storage, which supports the food and beverage industry with 5 football fields of space storing everything from raw goods to finished desserts awaiting shipment throughout the United States and the world. Among their clients are Eugene’s own Ninkasi Brewing Company which produced more than 100,000 barrels last year, making it the 36th largest craft brewer in the country. Eugene is also home to GloryBee, Wildtime Foods, Attune, Foods, Yogi Tea and many others.