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October 2019
Inspirational Entrepreneurs Meet Mark Frohnmayer & Arcimoto Page 22
Transportation Arcimoto Begins Retail Production and Delivery of Ultra-Efficient, Pure-Electric Fun Utility Vehicles Page 25
The Journal for Local Business Owners in Southern Oregon
Southern Oregon Business Journal September 2019 | 1 SouthernOregonBusiness.com
A few words from Greg
In the span of a few weeks the number of conversations in person and social media exchanges has been just short of overwhelming. And these are announcements, events and discoveries that are building their own energy. Every one is inspired by the other whether similar in an industry or not. Our momentum, if it continues as it appears that it will, should keep all of southern Oregon moving in a positive direction in most industry sectors. The list of activities is long and exciting. From the opening of the Heartfelt House at Peace Health in Springfield, to the grand opening delivery of the first Arcimoto electric vehicle, with 4,000 of them on pre-order, is encouraging in very big ways. As we get our minds around the new Gross Receipts Tax that becomes law on January 1, 2020, we will also expect a vast improvement in the state’s education. The “Student Success Act” which is the beneficiary of the new tax on business in Oregon will be receiving in the neighborhood of $1 billion per year to truly achieve that promised success in educating our youngest generation. If the ROI is what we are promised, the next generation will achieve national recognition for improvements in educational accomplishments. Greg Greg@SouthernOregonBusiness.com
2 | Southern Oregon Business Journal October 2019
The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.
A Few Words from Jim
The amount of businesses that we reach each month has more than doubled since July. It’s been exciting to reboot the Southern Oregon Business Journal and see the changes take shape. The upgraded website is continuously improving, as we ourselves use it daily and get feedback from others as well. People really loved our Inspirational Entrepreneurs Stories last month so we will try to do those every month. This month Greg interviewed Mark Frohnmeyer. Don’t miss his story on page 22. More and more small business owners in Southern Oregon count on us to provide a voice for our businesses. That’s why Greg started the Journal in 2015 and why I got involved in July. We’re on a mission, but we need your help. If you value our hard work, all we ask is that you at least visit SouthernOregonBusiness.com and subscribe with your email address. Now that we have a publication redesign and website behind us we will be focusing on finding supporters. We need your email subscription. We need your website visits. We need articles and press releases and we need some financial support from sponsors. Jim jim@projecta.com
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October 2019 - Table of Contents Inside This Issue 4 - Energy - Douglas County PUD to Explore Renewable Hydrogen Fuel Production 5 - Oregon Regional Economic Indexes 6 - Management - Navigating Conflict in the Workplace 8 - Energy - Navigating a Complex Path to a Secure Energy Future 9 - Education - Oregon Tech Professor Works with IPC Education Foundation to Promote Computer Systems Engineering to K7-12 Students Nationwide 10 - Housing - Housing Affordability in Oregon 14 - SOREDI: TekManagement 16 - Employment - Oregon’s Wood Product Manufacturing Industry Is Still Important, Especially in Rural Areas 19 - TAX - Oregon’s Gross Receipts Tax 20 - Idea Friendly Towns - Sharks kill off good ideas 26 - Education - Southern Oregon Trade Careers Expo Highlights Living Wage Careers 28 - Education - Firefighter program provides local education, pathway to professional career 30 - Entrepreneur to Entrepreneur - Ashland Home Net 31 - Education - Dental Hygiene Students at Oregon Tech Deliver Services to Rural Populations in Jamaica
34 - Planning - Portland’s Climate Fail: More Driving 40 - Health Care - The Heartfelt House on PeaceHealth’s RiverBend campus provides “home away from home” for out-of-town families. 42 - People - Ruth Miles accepts Secretary of State, Bev Clarno’s offer to be the new Corporation Division Director
FEATURED Inspirational Entrepreneurs Meet Mark Frohnmayer & Arcimoto Page 22 Transportation Arcimoto Begins Retail Production and Delivery of Ultra-Efficient, PureElectric Fun Utility Vehicles Page 25
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BE SURE TO MAKE YOUR HOLIDAY RESERVATIONS EARLY! Southern Oregon Business Journal September 2019 | 3
ENERGY CAROL WINKEL NORTHWEST POWER AND CONSERVATION COUNCIL
Pilot project proposes producing hydrogen with surplus hydropower Could hydrogen be the fuel of the future for vehicles? The Douglas County Public Utility District, which owns and operates Wells Dam on the Columbia River, is waging it could be an important resource to power clean transportation. With recent Washington state legislation authorizing public utility districts to produce, distribute, and sell renewable hydrogen, the utility had the green light to research the feasibility of building a 2-3 megawatt renewable hydrogen facility. The pilot project would use surplus hydropower to produce renewable hydrogen. Gary Ivory, Douglas PUD general manager, briefed the Council at its August meeting on the utility's plans and why it's taking steps to explore hydrogen production. One 4 | Southern Oregon Business Journal October 2019
Douglas County PUD to Explore Renewable Hydrogen Fuel Production
of the biggest reasons is when there is an oversupply of electricity. With more renewable resources like wind and solar on the system, there are times when electricity flowing into the grid exceeds demand. At those times, the utility is forced to pay major users, like factories, to take the excess electricity. There are also times, especially during the spring runoff, when hydroelectric operators need to generate electricity rather than spill water, which creates gas bubbles harmful to fish. Having the ability to use that excess hydropower to produce renewable hydrogen to sell in industrial markets or for making fertilizer could be an economic and environmental win-win. And, perhaps in the future, the fuel could also be sold to power hydrogen fuel cell vehicles. The technology has been adopted in Europe and costs have been coming down. Excess
hydropower is sent to an electrolyzer that separates the hydrogen and oxygen in the water. The hydrogen can then be used to store energy, compressed for transportation fuel or transported in pipelines for industrial purposes. This technology is especially beneficial for the environment because hydrogen has no emissions other than water. "We looked into hydrogen two decades ago." said Ivory. "But the timing was right to revisit the technology with the current importance on clean fuels and growing renewable generation on the system." "We see lots of applications for hydrogen in the future Carol Winkel joined the Northwest Power and Conservation Council in July 2000 as a communications specialist. cwinkel@nwcouncil.org 503-222-5161
Oregon Regional Economic Indexes
July 2019
TM
Review
Is this approach used elsewhere? Yes, the Chicago Federal Reserve Bank uses the same basic approach to measure both national and regional economic activity. Contact Timothy A. Duy Director, Oregon Economic Forum Department of Economics University of Oregon 541-346-4660 · duy@uoregon.edu econforum.uoregon.edu
Contributions to Regional Indexes – July 2019
New Private Housing Units Authorized by Permits Educational and Health Services Employment Financial Activities Employment Government Employment Information Employment Leisure and Hospitality Employment Manufacturing Employment Construction Employment Professional and Business Services Employment Other Services Employment Trade, Transportation, and Utilities Employment Civilian Labor Force Unemployment Rate Lodging Revenue, Inflation Adjusted Airport Passengers Initial Unemployment Claims Residential Units Sold Municipal Waste Home Price Index
0.08 0.01 -0.10 0.00 0.03 0.16 0.01 0.08 0.16 -0.10 0.07 0.03 0.15 0.01 0.00 0.16 0.14 0.17 -0.03
-0.06 0.00 0.03 0.00 -0.02 0.08 -0.01 0.01 -0.16 0.02 0.06 0.00 0.28 -0.01 0.03 0.23 0.24 0.22
0.07 -0.01 -0.06 0.00 -0.01 -0.14 -0.04 -0.01 0.00 0.00 0.32 0.01 0.25 -0.03 0.00 0.12 0.19 0.26
-0.14 0.25 -0.06 -0.02 0.02 0.03 0.03 0.03 -0.10 0.01 -0.06 0.11 0.33
Total Moving Average of Recent Observations
1.04 0.80
0.94 0.90
0.92 0.68
0.46 0.13
Salem
The monthly measures can be very volatile, and volatility will increase for smaller regions or those with less data included in the estimation process. To reduce the noise, it is helpful to focus on the average of the most recent data. For the larger areas, Portland, Eugene–Springfield, and Bend, a three-month moving average is sufficient to remove the noise. For Rogue Valley and Salem, a six-month moving average is required.
Rogue Valley
What is the significance of the moving-average measures?
Central Oregon
A reading of “zero” corresponds to the average growth rate for that particular region. In other words, the measures identify periods of fast or slow growth relative to trend.
Eugene-Springfield
How can I interpret the measures?
Regional areas generally experienced solid economic activity in July. Although many areas are off their peak growth rates experienced earlier in the cycle, there is no indication that they are decelerating at a worrisome pace. For all regions covered by this report, raw and moving average measures (which smooth monthly volatility) were above zero, indicating an above-trend pace of activity (trend activity differs across regions). Housing data revealed a familiar pattern that has become the norm in the post-recession period. Housing sales remain solid across regions; in most case sales have rebound from a period of weakness late last year and early this year. Still, only the Portland and Central Oregon regions regularly generate enough housing permits to support a positive contribution to the measures. In other areas, new housing activity remains below levels traditionally experienced in an expansion. Employment components have been mixed. Although job growth has slowed, unemployment rates remain very low and still make significant positive contributions to the measures. Waste collection (where available) also made positive contributions to regional indexes; rising waste typically increases with rising populations and greater economic activity.
Portland-VancouverBeaverton
sponsored by
-0.16 -0.05 0.02 -0.02 0.01 0.03 0.06 0.05 0.20 -0.01 0.06 0.00 0.40 0.00
0.01 0.44
1.01 0.61
oregon
economic forum
Southern Oregon Business Journal October 2019 | 5
MANAGEMENT
Navigating Conflict in the Workplace
ERIN BAIR
Conflict. Just the word itself is enough to make many of us feel uncomfortable. It conjures images of yelling, hurt feelings and damaged relationships. However, not all conflict is bad. In fact some conflict is absolutely necessary for teams and organizations to thrive. In this article we’ll examine the difference between productive and unproductive conflict, why conflict is important, and how to make conflict more constructive and less scary in the workplace.
Many people associate the word “conflict” with the word “fight.” I think it can help to instead think of conflict as a disagreement. That’s all it is. Two or more
perspectives! Otherwise we’d have group think. We’d have an echo chamber. We’d have a team or an organization without innovation, simply because we’re afraid to disagree.
“… thank goodness we do have different opinions and perspectives! Otherwise we’d have group think. We’d have an echo chamber. We’d have a team or an organization without innovation, simply because we’re afraid to disagree.” people having different opinions about something that at least one person thinks is important. And thank goodness we do have different opinions and
6 | Southern Oregon Business Journal September 2019
It’s not surprising then that two of the most wellknown and respected models on teamwork emphasize the need for conflict. It’s the second rung of Patrick Lencioni’s hierarchy of team needs in his classic Five Dysfunctions of a Team. The Tuckman model of teamwork
includes “storming” (a.k.a. conflict) as one of the four main stages of team development (along with forming, norming and performing.) Both models recognize that without conflict, there can be no true buy-in for any idea, project or change initiative. People may nod their head to be polite, but they will not invest the time and energy to see something succeed that they don’t believe in. The only way you can change someone’s mind is to talk about it, to talk about your disagreement. That said, there is productive conflict and unproductive conflict, with the main difference being about whether disagreement is perceived as being respectfully communicated. I say perceived because no two people have identical standards for what constitutes “respectful conflict.” Maybe two people can agree that yelling is a no-no, but at what point does “raising your voice” become “yelling”? Further, our families of origin, our culture, and professional norms all impact us and shape our concept of respect differently.
To review, conflict is both difficult to navigate well and totally necessary. Despite the opportunities for misunderstanding and for stepping on toes, the total avoidance of conflict is not the answer. Instead, there are ways to make productive conflict a more common occurrence in the workplace. While Cascade offers a much more extensive examination in our trainings, such as Turning Conflict into Teachable
example, I may admit that I avoid conflict and it’s something I’m working on, or that I like to have processing time after I learn someone’s point of view rather than continue to hash it out in person. You can also consider using workplace behavioral assessments like ©The Predictive Index to better understand individual preferences and build self-awareness. Taking this action not only increases the odds of productive conflict taking place, it also builds relationships as individuals learn more about one another.
Maybe two people can agree that yelling is a no-no, but at what point does “raising your voice” become “yelling”?
In addition to our varying conflict preferences, our very bodies can turn productive conflict into unproductive conflict through our natural neurobiological response to stress. Once our stress response is triggered – and it is triggered very easily – we go into flight or fight mode. We bypass our brain’s prefrontal cortex, the most evolved part of our brain, and react from our limbic system. Essentially, our ability to filter what we say is diminished and we’re more likely to say something we’ll later regret.
Southern Oregon Business Journal October 2019 | 7
Moments, here’s one idea to get you started:
In short, conflict may never be something we look forward to or consider “fun.” That said, avoiding it is not the answer. Rather, being proactive and taking the time to explore what productive conflict is, and is not, with colleagues can go a long way in ensuring better team dynamics.
Talk about conflict before it happens. Whether at a group level, a team/ departmental level, or one-on-one, it helps to talk about conflict before it happens. That way we can learn about conflict styles and preferences before things get heated. I suggest saying something like, “There are bound to be times when we disagree about something. I want to make sure that when we do I’m as respectful as possible so that we can have a really good conversation and come to a good decision. What are some of your preferences?” Since the person may not have considered it before, I often suggest starting with your own preferences. For
Erin Bair, Director, Training & Organization Development Cascade Employers Association training@cascadeemployers.com
ENERGY
Navigating a Complex Path to a Secure Energy Future
BEN KUJALA
Planning for the 2021 Power Plan Planning for the power system is challenging. As planners, we try to determine how much electricity we will need over the next 20 years by evaluating uncertainty about weather, fuel prices, and changes in technology. As energy technologies, from solar to electric vehicles, have advanced, planning to ensure that the Northwest will have a reliable and affordable power supply has become an increasingly complex endeavor. Adding to the puzzle is the question of how the region’s hydrosystem can adapt to this changing mix of generation. The Federal Columbia River Power System is a 20th century engineering marvel and the backbone of the region’s power system since the 1930s. But it is a multipurpose system, providing flood control, benefits to fish and wildlife, and irrigation, along with generating electricity. Regional planners must account for how the system is managed to meet these different needs; whether
water is stored in a reservoir, allowed to flow down the river to generate electricity, or spill through the dams to help migrating fish. The Bonneville Power Administration, the federal agency that markets the system’s electricity, owns and operates more than three-fourths of the region’s transmission grid. It delivers federal power to public utilities, a significant proportion of electricity use in the Northwest. Accounting for the agency’s legal requirements and debt considerations for public utilities is critical for regional planning. There are also a variety of legislative and utility goals to reduce greenhouse gas emissions, and states and utilities have different approaches to implementing or measuring them. Planners integrate these goals into our expectations of how existing and future power plants will be operated. The regional system also includes a major interconnection that exports power from the Northwest to California.
8 | Southern Oregon Business Journal September 2019
That state’s ambitious energy goal to rely entirely on clean energy sources by 2045 has resulted in a large fleet of solar generation, affecting exports. Estimating the effects of California’s goals and policies on our regional system is now an important consideration. We’re not alone. Planning challenges from new generation and storage technologies, ambitious public policies on greenhouse gas emissions, and changes to markets for energy and capacity have all converged to make an already challenging endeavor even more complicated. But, if history is any indication, we know we’ve been able to come together in the past to work in collaboration to solve difficult problems. We look forward to working with our partners and fellow citizens to determine the best plan for meeting our future energy needs. Stay tuned.
EDUCATION
Klamath
OREGON TECH
Since early summer, Oregon Institute of Technology, “Oregon Tech,” associate professor Kevin Pintong has been working with IPC Education Foundation to attract and engage STEM students in workshops nationwide using Project Owl. The IPC Education Foundation is a 501(c)(3) nonprofit organization which works to prepare students for rewarding careers in the electronics industry by providing learning opportunities focused on electronics manufacturing and improving the perception of manufacturing as a stable and well-paid sector. What is Project Owl? Project Owl is a hands-on learning and technical training kit designed to encourage middle school and high school students to pursue STEM majors and careers in engineering, taking a cross-disciplinary approach by integrating computer science, computer engineering and electrical engineering. The intent of Project Owl is to engage and introduce students by incorporating both hardware and software-based concepts into one tool, called the OwlBoard. Pintong, a professor in Oregon Tech’s Computer Systems Engineering Technology department and program director of Computer Engineering Technology, originally developed the board at Oregon Southern Oregon Business Journal October 2019 | 9
Oregon Tech Professor Works with IPC Education Foundation to Promote Computer Systems Engineering to K7-12 Students Nationwide Tech with help from a Commission on College Teaching grant, with the intention of teaching prospective students about circuits, soldering and programming. Through IPC Education Foundation’s nationwide program, students participating in Project Owl are tasked with utilizing eight different types of components that perform different electrical functions and can be engineered to work together to complete a task. A microprocessor, LEDs, resistors, capacitors, a linear regulator, a fuse and a USB connector are supplied to assemble the OwlBoard. Basic concepts such as Ohm’s law and electronics are taught as part of Project Owl. Once students complete building the OwlBoard they can use the Arduino IDE to program the board. Current tutorials show students how to blink the LEDs and interface with buttons; additional tutorials are being developed. Pintong is helping the IPC Education Foundation develop and adapt materials for the organization’s educational and training programs and providing support with technical design and teaching materials for workshops, and program management. “I’m really excited that this has taken off, as it will increase Oregon Tech’s visibility. Typically, STEM outreach activities focus on only software or only hardware. With the OwlBoard, we’re able to take an interdisciplinary approach and target
students interested in software and hardware at the same time,” said Pintong. “IPC Education Foundation will be able to advance STEM education throughout the country with this project.” At this time, workshops are scheduled in San Diego, CA, Chicago, IL, Atlanta, GA, Raleigh, NC, Pittsburgh, PA and Huntsville, AL. The IPC Education Foundation plans to introduce the Project Owl Teachers Program to Career Technical Education teachers across the country this fall, providing teachers with learning resource guides and assembly instructions, industry training standards and online training videos. Pintong continues to use the OwlBoard for teaching opportunities at Oregon Tech, including recruitment at community colleges and high schools, and at various school camps and activities including Oregon Tech Hour of Code and Girls Got STEM. The project is open-source and project materials may be found at www.oit.edu/ academics/degrees/computer-engineeringtechnology/open-source-projects. Pintong has worked at Oregon Tech for five years as a member of the Computer Systems Engineering Technology faculty and is program director of Computer Engineering Technology. Among the classes he teaches are Digital Logic, Digital System Design and Embedded Security, in addition to serving as an adviser of Senior Projects. He obtained his M.S. in Electrical Engineering and B.S. in Computer Engineering from Binghamton University.
HOUSING
Oregon
Housing Affordability in Oregon
DAMON RUNBERG
The fast growth in home prices have many across the state concerned about housing affordability. Obviously the cost of housing is a critical, if not the most important, component of housing affordability, but it isn’t the only factor that impacts the affordability of housing. In order to better understand affordability trends across the state we need to take into account how much income Oregonians are bringing home and the cost of borrowing.
five years. Statewide home prices are up around 40 percent since 2014. Some metro areas exceeded that pace of growth. Home prices in the Bend and Salem areas have grown more than 50 percent in the past five years. Home price growth has been more subdued for many rural communities who have struggled in this current economic expansion, such as Klamath Falls in South Central Oregon, where home prices are up around 20 percent over the past five years.
money you have in your pocket (or bank account) is going to impact how much home you can buy. The good news is that wages are on the rise, or at least they were. The average quarterly wage (smoothed and adjusted for inflation) is up around 5 percent over the past five years in Oregon. To put it another way, after accounting for the changing costs of goods and services, Oregonians are making more money on average than they were in 2014.
Let’s first take a look at housing price trends across the state. Zillow produces a handy home price index that looks at the average price of all housing types by county. These Zillow estimates reveal that although home price growth has slowed over the past year, home prices are up by a significant margin across most parts of the state over the past
Swiftly increasing home prices have elicited many conversations about housing affordability across the state. But before we call this a housing affordability crisis let’s take a look at the other elements that make up affordability. Outside of home prices themselves, the largest factor affecting affordability is wage growth. How much
All of the different communities highlighted have seen wage gains over the past several years. However, there is a considerable amount of variability among communities. Wages grew quickly in Hood River, Bend, Salem, and Portland. However, wage growth was more subdued in places like Eugene, Medford, and Klamath Falls. Increasing
10 | Southern Oregon Business Journal September 2019
wages should help slow the trend towards housing becoming less affordable. 
 Finally, the last major variable that impacts housing affordability is the cost of borrowing, or interest rates. Most of us do not have enough cash on hand to buy a home, particularly those of us concerned about affordability. In order to buy a home we need someone to loan us money and the cost of a loan is a significant factor in housing affordability. During the past two years, 30-year fixed mortgage interest rates have been very low. Many consumers have been able to find rates below 4 percent. Back in the last expansion, rates were roughly 2 percentage points higher than they are today. Similar to wages, the low interest rate should help slow the trend towards housing Southern Oregon Business Journal October 2019 | 11
becoming less affordable. What do we see when these three variables are put together? I developed a housing affordability index that looks at the monthly mortgage of someone with the average wage in a particular geography who bought the average home with the average interest rate. The average monthly mortgage is presented as a share of the average monthly wage for each geography. Across the state, the average monthly mortgage in first quarter 2019 was roughly 30 percent of the average monthly wage.
higher than the state. Bend also ranked poorly in housing affordability; the average monthly mortgage was around 40 percent of the average monthly wage. Surprisingly, the
Affordability varied quite dramatically across the various areas compared. The least affordable was Hood River, where the average monthly mortgage took up more than 50 percent of the average monthly wage. The average monthly wage was more than $1,100 lower than the state, yet the average monthly mortgage was nearly $400
A time-series of this housing affordability measure shows that concerns about affordability may be overstated. The low cost of borrowing alongside recent wage gains have helped to counter, but not completely overcome, the growth in housing prices. Despite the fact that home prices are near or exceeding the peak from the last expansion,
affordability remains notably higher than back in the mid-2000s for every community highlighted. The bad news is that every community has been trending toward being less affordable. However, it seems that the trend towards lower affordability is slowing as home price growth decelerates.
Portland Metro Area (Washington Co.) was generally more affordable than the state as a whole due to high wages that helped to balance the high housing costs. The most affordable community highlighted was Klamath, where the average mortgage was only around 20 percent of the average monthly wage, a relative bargain.
12 | Southern Oregon Business Journal September 2019
Housing affordability is a serious concern across the state and an issue that should be taken seriously. That being said, housing is more affordable today than back in our last expansion, thanks to Oregonians making substantive wage gains in our current expansion and interest rates remaining very low. Damon Runberg Regional Economist Crook, Deschutes, Jefferson, Klamath, and Lake counties damon.m.runberg@oregon.gov 404 SW Columbia St., Suite 200 Bend, OR 97702
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Photo by David Gibb | dgibbphoto.com
Tech Support for Community
Scott Christopherson, Jason Ritchie, Jason Stevens Owners Tekmanagement www.tekmanagement.com 800 O’Hare Parkway Medford, OR 97504 541-779-4777
After years of running the “corporate rat-race” down in the San Francisco Bay area, Scott Christopherson was ready for a change of pace. A visit to Southern Oregon to see a friend became a pivotal moment in Scott’s future; he decided to quit his corporate job and move his family north. “I wanted to live in a nice place—with small communities and a view of the mountains. I was willing to be a bus driver if I could just live here.”
“I love being part of Instead of driving a bus, Scott’s background with computer software landed him a job at the community. Tekmanagement, where he bought into a partnership with founder Jerry Bascilicato. After Scott It’s business spent several years working at Tekmanagement, he was able to buy Bascilicato’s share of the friendly, and people business. Now, Scott and two other partners, Jason Ritchie and Jason Stevens, manage actually talk to one one of Southern Oregon’s valued IT companies. another. Other tech Southern Oregon offers increasing business opportunities for a company like companies I interact with Tekmanagement. “We mainly service companies in Oregon, but our remote are missing that human footprint is international, reaching even to Africa. We’ve already doubled in involvement. It’s great here.” growth,” Scott explains. “It’s great that Southern Oregon also has resources to help businesses, like the Chamber leadership programs and SOREDI.” Not to mention the area’s excellent small-town festivities and recreational opportunities. “I love being part of the community. It’s business-friendly, and people actually talk to one another. Other tech companies I interact with are missing that human involvement,” concluded Scott. “It’s great here.”
-Scott Christopherson, Owner
www.SOREDI.org/edge by SOREDI | Southern Oregon Regional Economic Development, Inc.
(541) 773-8946 14 | Southern Oregon Business Journal September 2019
Tech Support for Community After years of running the “corporate rat-race” down in the San Francisco Bay area, Scott Christopherson was ready for a change of pace. A visit to Southern Oregon to see a friend became a pivotal moment in Scott’s future; he decided to quit his corporate job and move his family north. “I wanted to live in a nice place— with small communities and a view of the mountains. I was willing to be a bus driver if I could just live here.” Instead of driving a bus, Scott’s background with computer software landed him a job at Tekmanagement, where he bought into a partnership with Jerry Bascilicato. In the 1970’s, Bascilicato left his position as Systems Analyst for Lithia and unofficially started Tekmanagement to continue to provide Lithia IT support. The company became official in 1983 and, over time, offered tech support to other clients. After Scott spent several years working at Tekmanagement, he was able to buy Bascilicato’s share of the business. Now, Scott and two other partners, Jason Ritchie and Jason Stevens, manage one of Southern Oregon’s valued IT companies. Tekmanagement’s mission as a company is to work alongside businesses Tekmanagement provides up-to-date and secure IT support to provide secure IT support and infrastructure so that business owners and infrastructure and employees don’t have to worry about their technology. Tekmanagement keeps everything up-to-date and secure—a valuable service amidst constantly increasing cyber threats. Fast-paced companies dependent on the ability to use phones and computers can lose millions of dollars when technology is down for even an hour. Tekmanagement has been able to recover data and get systems back up and running—sometimes within a matter of minutes. Grateful clients become permanent clientele, and for someone like Scott, who considers customer retention Tekmanagement’s largest success, this means that the company has to be a “champion of technology,” and keep on top of the latest trends. Tekmanagement’s staff, certified in various tech industries, follow a life-long learning principle, consistently educating themselves on the use of rapidly evolving devices that people employ in their companies. “Tech in general, changes constantly,” explains Scott. “It follows Moore’s law.” In simple terms, this means that the speed and capability of technology is expected to double every two years, resulting from increases in transistors and microchips. Of course, most practical business owners don’t care about Moore’s law on a daily basis. “They just want their tech to work properly,” says Scott. “And making sure it works is our job.” Tekmanagement employees are always learning the newest tech trends—so they can be responsive and efficient. With a staff of eighteen (including marketing, sales, finance, and management teams), Tekmanagement is growing and hoping to acquire other companies—which will provide a larger customer base. “Students fresh out of school often want to work for bigger companies. However, if they prove themselves, it’s not hard to be successful here,” Scott says. Tekmanagement searches for employees with technical certificates, but also industry experience and a willingness to learn. Plus, Scott also mentions the company’s focus on work-life balance, discussing how there are amazing things to do, just outside the door. “Living in Southern Oregon is like camping, except you have your house. We want folks to work here long-term,” says Scott. “So, we try to have some fun too.” Southern Oregon offers increasing business opportunities for a company like Tekmanagement. “We mainly service companies in Oregon, but our remote footprint is international, reaching even to Africa. We’ve already doubled in growth,” Scott explains. “It’s great that Southern Oregon also has resources to help businesses, like the Chamber leadership programs and SOREDI.” Not to mention the area’s excellent small-town festivities and recreational opportunities. “I love being part of the community. It’s business-friendly, and people actually talk to one another. Other tech companies I interact with are missing that human involvement,” concluded Scott. “It’s great here.” Tekmanagement | 800 O’Hare Parkway, Medford, OR 97504 | www.tekmanagement.com | 541-779-4777
www.SOREDI.org/edge by SOREDI | Southern Oregon Regional Economic Development, Inc.
EMPLOYMENT Oregon’s Wood Product Manufacturing Industry Is Still Important, Especially in Rural Areas
BRIAN ROONEY
Once Oregon’s largest manufacturing industry, employment in the wood product manufacturing industry has gone through large, well-publicized losses since the early 1990s, with its employment dropping below computer and electronic manufacturing and food manufacturing. Despite the losses, wood product manufacturing is still a large industry in Oregon and is especially important to rural areas of the state.
employment in wood product manufacturing dropped 22,600, or 46 percent. Similar losses were experienced in all subsectors, with sawmills and wood preservation dropping 5,500 (46%); plywood and engineered wood products dropping 8,800 (49%); and all other wood product manufacturing, which includes millwork and prefabricated buildings, dropping 8,200 (51%).
Although the industry has been in decline over the long term, it trended upward for a short period during a national housing boom between 2003 and 2005. During that
Employment Trends Between 1990 and 2018, annual average 16 | Southern Oregon Business Journal October 2019
period, the industry increased from an annual average of 31,100 jobs to 32,700, an increase of 1,600, or 5.1 percent.
Then the Great Recession hit the industry hard. The overall wood product manufacturing industry dropped 13,500 (41%) between 2005 and 2011. Since then, the industry has been slow to rebound, adding 4,300 jobs, or 22 percent, between 2011 and 2018. As of the writing of this article, estimates show that wood product manufacturing continues its slow rebound, reaching 23,800 jobs as of June 2019.
Low demand from U.S. single-family home construction coming out of the recession is one reason for the slowness of the rebound. The prerecession peak of roughly 1.7 million units in 2005 dropped to a low of 430,000 in 2011. Single-family starts have recently recovered to 876,000 in 2018, causing some increase in demand for wood products.
New technologies brought another structural change to the industry by making lumber mills less labor intensive. Employment continued to drop even after harvest levels stabilized in the late 1990s and employment did not increase much despite a housing construction boom in the mid-2000s. Jobs in wood product manufacturing per million board feet
the Great Recession. It’s likely that mills cut production through fewer hours instead of letting go of workers during the recession. After the recession, production per worker increased to the elevated levels it had reached before the recession, reaching roughly 1.2 million board feet in 2017. Although the data has some error range, it appears that large efficiency gains were realized early in the 2000s and may have slowed recently. Wood Products Are Still Important in Oregon, Especially in Rural Areas
harvested dropped steadily after 2000, likely due to technology.
Smaller Harvest, Technology, and Economies of Scale Contribute to Decline Several structural shifts in the wood products industry have contributed to the employment decline. First, there was a drop in timber harvests from environmental concerns in the early 1990s. As harvest from federal lands reduced the amount of available raw material to mills, employment dropped, indicating that harvest reductions were a cause for the employment loss in the early 1990s.
Even with the decline, wood product manufacturing is still a large industry in Oregon. In 2018, there were 23,500 people employed and roughly $1.2 billion in total payroll in wood product manufacturing. While statewide the industry makes up only 1.2 percent of total employment and 1.2 percent of total payroll, the concentration is much higher in some counties, especially rural ones. For instance, in Douglas County 8.3 percent of total employment and 10.7 percent of total payroll was in wood product manufacturing. Most of the counties with a high concentration of employment in wood product manufacturing are rural. In counties where the percent of total payroll exceeds the percent of total employment, average wages are higher in wood product manufacturing than the overall average wage. This is the case in most of the rural counties listed; indicating that wood product manufacturing provides some of the higher paying jobs in rural counties.
In addition to new technologies, smaller mills were shuttered, creating efficiency through economies of scale (larger mills can produce more per worker). The average production of sawmills operating in the western U.S. increased as smaller mills were shuttered and efficiency increased through economies of scale and new technology. Lumber production per worker in Oregon is another way to look at efficiency gains. It increased rapidly in the early 2000s, going from 806,000 board feet per worker in 2000 to 1.1 million in 2005. It then dropped back to 791,000 board feet during
Jobs Generally Pay Well and Do Not Require High Levels of Education The top 20 occupations in wood product manufacturing tend to pay well, with average annual wages of $30,000 or more. Southern Oregon Business Journal October 2019 | 17
Oregon’s Wood Product Manufacturing (Cont)
Eighty-five percent of the top 20 occupations require a high school diploma or less. Only general operations managers and industrial production managers typically require a college degree. Some of the more technical occupations like industrial machinery mechanics and electricians have average annual wages of more than $50,000 and require only a high school diploma, providing opportunity for those who don’t get a college degree. Forecast Employment projections from the Oregon Employment Department show that wood product manufacturing employment growth is expected to slow, adding only 100 new jobs between 2017 and 2027. Demand for wood products is expected to slow along with the overall economy and housing market. Like many industries, wood product manufacturing has an aging workforce reaching retirement age. This creates additional demand for workers through replacement needs. In addition to the 100 new jobs that the industry is expected to create between 2017 and 2027, there are expected to be roughly 9,600 openings from people leaving the industry, largely due to retirements.
Brian Rooney Regional Economist Douglas and Lane counties brian.t.rooney@oregon.gov 1401 Willamette Street Eugene, OR 97401 (541) 359-9546 https://www.qualityinfo.org/staff? staffid=rooneybt&companyid=10155 18 | Southern Oregon Business Journal October 2019
OREGON’S GROSS RECEIPTS TAX GREG HENDERSON
The Oregon Department of Revenue (DOR) is seeking input about the administrative rules for the state’s new “Corporate Activity Tax” from business taxpayers and tax preparers.
Oregon Dept of Revenue Rule Writers, photo Greg Henderson
The Oregon Department of Revenue (DOR) is seeking input about the administrative rules for the state’s new “Corporate Activity Tax” from business taxpayers and tax preparers. Traveling across Oregon, rule writers are sitting down to hear the concerns, questions and suggestions of those affected by the rules. “We’re touring the state to allow more of the business community to provide valuable input as we move through the rule-making process,” said Nia Ray, director of the Oregon Department of Revenue. “We are excited to have business taxpayers and tax preparers in the southern Willamette Valley join this important conversation.” The $1 billion per year tax over the next biennium is designated for education needs. The Oregon Department of Education website includes an explanation of how the money will be used. See the information on
the website at, https://www.oregon.gov/ ode/StudentSuccess/Pages/default.aspx The rule writers have the unenviable task of interpreting the new law and creating a system to enact the intent of the law in a way that businesses can understand. An estimated additional staff of administrators and programmers will need to be hired to implement the law. A three-step process, or “Tracks” is being created to come up with Temporary Rules of implementation. The tracks are scheduled for completion on 1/1/20, 2/1/20, and 3/1/20. The Permanent Rules are to be completed April 1, 2020. There is no shortage of questions coming from the business owners and employees affected by the new law. Understanding exemptions, definitions of “unitary business”, “Common ownership”, “Nexus rules”, and “permanent establishment” are
but a few of the areas needing clarification. Business owners will need to implement many processes in order to comply before the rules writers will be finished with their
work. The Southern Oregon Business Journal will continue to provide as much information as possible as it becomes available. Those who were unable to attend but want to provide input may email questions or comments to cat.help.dor@oregon.gov Greg Henderson, Southern Oregon Business Journal Southern Oregon Business Journal October 2019 | 19
IDEA FRIENDLY TOWNS
Oregon
DEB BROWN
Sharks kill off good ideas
Sand Castle Shark Image by armennano from Pixabay
One of the communities I was in for an Embedded Community Experience sent me some good news. City and community leaders want to take a “Shark Tank” approach in trying to fill vacant storefronts. At first this looks like a great idea! They have a building owner willing to put one of his buildings in the project for one year. They are putting together 12 different investors to reimburse that building owner each month for the rent. They will interview 40 applicants and narrow it down to 10 choices. Then the shark tank process will begin and finally one single new start up will be chosen. So what's the biggest problem with this idea? You're turning away possibly 40 people who want to start a business. What if you organized another open building into a shared space? 20 | Southern Oregon Business Journal October 2019
coppescommons.com They started with a few shops! www.thevillagewashingtonia.com a small town that eventually filled 15,000 square feet. Is there another business in town that could make a little room for one of those businesses? Partner with the startup and give them a chance to be in business with less risk. It also brings in a different buyer to the sponsoring business. It adds new things to a store and draws a crowd. You could start even smaller and have a pop up event for those 40 possible businesses to showcase their work. Imagine all the folks in town finding out about these businesses and getting to try some of their products. Great market research for the business.
A possible investment for a person or organization or business. A fun event for the community! We believe all the ideas are good, at least good enough to test and try it. We believe small towns can be saved by their own people using their own resources. We picked the name SaveYour.Town because that is what you are going to do, save your town. No one is coming to do it for you.
Deb Brown, cofounder of SaveYour.Town https://saveyour.town/ Deb grew up on a farm outside of Geneva, Iowa, population 141. Her first entrepreneurial venture was raising a hog. You’d find her either with her nose in a history book or out exploring abandoned houses and buildings. Funny, things haven’t changed much, she’s still working on filling empty buildings in small towns.
Idea Friendly Town Creed
Southern Oregon Business Journal October 2019 | 21
INSPIRATIONAL BUSINESS PEOPLE
Lane
GREG HENDERSON
To paraphrase Mark Frohnmayer, “Doing it right in business is to begin with Vision and Direction. It is vital to the most sustainable businesses to solve a meaningful problem and to be a learning organization for the world.” Frohnmayer is the Founder and President of Arcimoto Fun Utility Vehicles, or FUV. “Our thesis since the beginning has been to develop an incredibly fun and highly useful 22 | Southern Oregon Business Journal October 2019
Meet Mark Frohnmayer & Arcimoto
vehicle at a disruptive price point the mass market can afford,” said Mark Frohnmayer, President and Founder of Arcimoto. On September 19, 2019 the dream became reality with the production release of the first Arcimoto FUV. It was bound to happen. 4,000 people have made deposits for their own FUV, many when the idea was barely more than a concept. To meet Mark Frohnmayer is to immediately
believe in him and to trust his judgement, process and honesty. Mark graduated from UC Berkeley in 1996 with a degree in Electrical Engineering and Computer Science. After 11 years in the computer games industry and the sale of his first startup, GarageGames, Mark has turned his entrepreneurial energy towards sustainable transportation. His current endeavor, Arcimoto, founded in 2007, is building an ultra-efficient,
ultra-useful new vehicle into the marketplace... Frohnmayer has served on the Oregon Transportation Commission and as a Technical Advisory Member of the Oregon Innovation Council.
Arcimoto's mission is to help catalyze the shift to a sustainable transportation system. They spent most of a decade developing the Fun Utility Vehicle, an insanely efficient everyday electric vehicle that’s also a ton of fun to drive.
In September 2017 Arcimoto went public on Nasdaq (FUV) in order to transform from a development stage venture into a manufacturing enterprise.
Some highlights of the testing work:
Tests conclude a rigorous curriculum implemented over the last ten months. Because the FUV contains equipment not present on most motorcycles, such as seat belts and an upper frame assembly, due care necessitated additional testing above and beyond what is typical for motorcycles on the road today.
CISPR – Pass
Salt-spray resistance – Completed Electrical reliability – Completed EMC – Pass Lighting system – Pass Motorcycle brake system – Pass EPA range – Completed Sled-test battery integrity and G-sensor disconnect – Pass Battery integrity side pole impact – Pass Seat belt anchorages pull – Pass Roof crush resistance – Pass Sled-test structure and seat belts – Pass Southern Oregon Business Journal October 2019 | 23
Nearly forty years ago I sat in a warm comfortable kitchen in south Eugene looking across the table at Oregon’s Attorney General, David Frohnmayer. He and his wife Lynn were the nicest people you would ever want to meet. He was president of the National Association of Attorneys General and would become president of the University of Oregon. His biography seems impossible to the ordinary mind; how could anyone do so much, be so well spoken, be so kind and have the knowledge to lead as effectively as he did? It was my honor to share coffee with such a statesman. Mark Frohnmayer says to look at his father’s biography convinces him that he could never compare to such a man. Humility must run in their blood. After meeting with Mark, I was not surprised how he could be involved the way he is. He is certainly his father’s son. Mark Frohnmayer is doing just fine.
Meet the Evergreen Built for the driving you do everyday. 75 mph top speed. Estimated city range of 100 miles per charge. Pre-loaded with heated seats and grips, Bluetooth speakers, removable doors, lockable rear storage, Level 1 charging cable, and HOV lane
access. Rockstar parking comes standard. Arcimoto’s Flagship FUV. $19,900 before gas savings, tax credits, and rebates. Designed and assembled with state of the art equipment at the Arcimoto Manufacturing Plant in Eugene, Oregon.
Greg Henderson, Founder/Co-Publisher Southern Oregon Business Journal
Greg Henderson is the founder and Co-Publisher of the Southern Oregon Business Journal. Greg@SouthernOregonBusiness.com
The Rapid Responder is the next generation vehicle for first response, built on the Arcimoto platform. SAVE LIVES, SAVE THE PLANET Designed for specialized emergency, security and law enforcement services at a fraction of the economical and ecological cost of traditional ICE vehicles.
24 | Southern Oregon Business Journal October 2019
The Deliverator is a pure electric, last-mile delivery solution designed to more quickly, safely, and affordably get your goods where they need to go. Built on the Arcimoto Platform, the Deliverator can be customized to carry a wide array of products, from parcels to pizza, groceries
TRANSPORTATION
Lane
GREG HENDERSON
EUGENE, Ore.--(BUSINESS WIRE)--Arcimoto, Inc.® (NASDAQ: FUV) announced that it has begun retail production of the Fun Utility Vehicle (FUV), an affordable, practical, and joyful pure-electric vehicle for everyday commuters and fleets, and is now delivering to customers in California, Oregon and Washington. “The FUV represents a significant step toward a sustainable transportation future in which vehicles are fully electric and rightsized for the needs of everyday drivers,” said Mark Frohnmayer, Arcimoto Founder and President. “This is a truly significant moment for Arcimoto as we launch retail production and delivery of the Fun Utility Vehicle for the first time in the company’s history.”
Arcimoto Begins Retail Production and Delivery of Ultra-Efficient, Pure-Electric Fun Utility Vehicles
Built in the Pacific Northwest with state-ofthe-art equipment at the Arcimoto Manufacturing Plant (AMP), the FUV has a top speed of 75 mph, an EPA-rated citydriving range of 102.5 miles per charge*, 173.7 MPGe city driving fuel economy, and comes pre-loaded with heated seats, heated grips, Bluetooth speakers, removable half doors, lockable rear storage, HOV Lane access, and a Level 1 charging cable. Customers will have their choice of base and accent colors. Rockstar parking comes standard. With an MSRP of $19,900 before gas savings, available tax credits, and rebates, the world’s first premium FUV, the Evergreen Edition is the most affordable,
most efficient electric vehicle suitable for the wide range of everyday trips on the road today. Depending on location, FUV owners may also qualify for sales tax exemptions, utility rate discounts, free parking, toll discounts, insurance discounts, and other benefits. The FUV is the first in a family of electric vehicles built on the Arcimoto Platform, which includes the Deliverator, built for local and last-mile delivery, and the Rapid Responder, designed for emergency medical services and campus security. The Company has reported a backlog of 4,128 preordered FUVs as of June 30, 2019, which is 28% greater than their 3,217 preorders at December 31, 2018. Southern Oregon Business Journal October 2019 | 25
EDUCATION
COOS, CURRY, DOUGLAS, JACKSON, JOSEPHINE & KLAMATH
JULIE NILES-FRY
The desperate outcry from trades and manufacturing businesses across Southern Oregon has been heard and addressed. The second biennial Southern Oregon Trade Careers Expo took place on September 26th at Seven Feathers in Canyonville, bringing 2,000 high school juniors and seniors, veterans, retiring military personnel, job seekers, and 108 businesses together to “Empower the Possible”. The SOTCE was created to demonstrate that a traditional university path is not the only way to make living wages; there exists ‘the other 4-year degree’ via on-the-job training and apprenticeships. Attendees at the Expo delved into 10 acres of skilled professional activities. They welded and used chain saws, moved the earth with excavators, felt the power of the Blackhawk, and rose to the treetops in Pacific Power buckets. Indoors they 26 | Southern Oregon Business Journal October 2019
Southern Oregon Trade Careers Expo Highlights Living Wage Careers
discussed career paths in everything from manufacturing and technology to careers with the FBI. Ashland High school Senior Brook DeRieux remarked, “You got electricians, you got plumbing, you got wildland fire fighting, you even got the FBI here. I didn’t realize how many jobs would actually be here and I feel like I have more of an opportunity to get out there and prove myself.” This is no ordinary career fair. ODOT Civil Rights Coordinator Christie Meacham has been at the helm of organizing both the 2017 and 2019 event. “It’s been great to expand this event to include the six counties. Industries need this event to shed light on living wage careers and show students and job seekers that these jobs are all accessible right now here in Southern Oregon.” Exhibiting businesses expressed their gratitude. Their workforce is aging out; the average age of a skilled trade professional is
55, and over 2 million professionals were needed yesterday. The SOTCE addresses the urgency. Brian Fisher, Operations Manager from Pressure Point Roofing in Medford said, “We like to train our employees, so we need to tell students that we’ll hire them without any experience. I could hire 3 roofers today, and I hope some of them come to Pressure Point Roofing.” The professionals at F.D. Thomas, an industrial services company, showed pictures and excitement on their Facebook page, “Our Team successfully met with over 2,000 HS students and career seeking veterans!” The next Southern Oregon Trade Careers Expo is already scheduled at Seven Feathers on September 21, 2021. Check out the website at www.empowerthepossible.org to see how your business can help “Empower the Possible.” Julie Niles-Fry Career Development and Marketing
Oregon Connections Smart Communities The 24th annual Oregon Connections Telecommunications Conference will be held on Thursday and Friday, Oct 24-25, 2019 at the Ashland Hills Hotel and Suites and Conference Center, Ashland, OR.
REGISTER ONLINE at OregonConnections.info $90.
Join Community Leaders from around the State
Connect, Learn and Explore
OCT 24-25
2019 Ashland
Our Keynote Speakers are:
The Oregon Connections Telecommunications Conference draws attendees from all regions of the state to share ideas, experiences and knowledge about telecommunications. The 2019 conference presenters and attendees will be exploring Smart Jean Rice
National Telecommunications and Information Administration
Communities: strategies, applications, enabling technologies and Oregon initiatives. Topics include smart cities, Internet of Things, new developing technologies, public policy and community planning. The conference features speakers, panels, group discussions, breakfast -
Trever Yarrish CEO and Founding Partner, ZEAL
Email : info@oregonconnections.info Contact : Chris Tamarin
luncheon - refreshments, receptions and more.
Phone: (503) 508-0178 Web: www.oregonconnections.info
Thanks to our valued sponsors Wave Business, Hunter Communications, Fortinet, LS Networks, Genxsys Solutions, Zayo, Oregon Broadband Advisory Council, InfoStructure, AT&T, ADTRAN, Calix, Zyxel, Windwave Communications / Inland Development, PEAK Internet, the City of Eugene, Graybar / Ciena, Verizon Wireless, CenturyLink, Northwest Telecommunications Association, Ameresco, XKL, Southern Oregon Business Journal, Mid-Columbia Economic Development District, Business Oregon and Southern Oregon Regional Economic Development, Inc. ! ! !
EDUCATION
Klamath
Firefighter program provides local education, pathway to professional career
LACEY JARRELL
Braden Krag’s future is in giving back to his community. The 18-year-old EagleRidge High School graduate said he is looking forward to one day serving as a structural firefighter for Klamath County Fire District 1 (KCFD1) in Klamath Falls. Braden is enrolled in the Resident Student Firefighter Program at Klamath Community College. Through the program, students can live at a fire station and learn the ropes of emergency response while pursuing an associate degree. “They can live there free of charge. They can study,” said KCFD1 Division Chief Devon Brown. “When they are not in the fire academy, they are assigned to one of our shifts. They work one day a week, 24 hours at a time, with the actual full-time crew they are assigned to.” Krag and three other resident students are assigned to the KCFD1 station near the Running Y Ranch Resort. Krag was assigned to the station in early June, shortly before 28 | Southern Oregon Business Journal October 2019
starting summer classes and the fire academy. The Resident Student Firefighter Program at KCC is in its second year, and Brown is thrilled that residencies for the four open spots were quickly filled. He pointed out that KCFD1 requires applicants to have a Firefighter 1 certificate from the state and an EMT license before they can apply for jobs with the department. “A lot of people get their education and training elsewhere. Some come back, some don’t. Some find opportunities outside Klamath Falls and they just don’t return. Luckily, we’ve had good people return to take the jobs here in Klamath Falls at Fire District 1,” Brown said. “We’d like to see more people train here and stay here.” Fire academy Resident student Krag and his classmates completed summer basic firefighter academy training in July. Students are placed with the Keno Fire
Department, Fire District 4 in Stewart Lennox, and KCFD1. Brown said students are not required to accept residency to enroll in KCC’s fire and EMS programs. Seven students are currently enrolled in the program; four are residents at fire stations and three are not. Throughout the fire academy, students participate in a combination of classes at KCC and field exercises, such search and rescue operations and live fire exercises that take place at the station in Stewart Lennox. “We pretty much learned the basics about the basics,” said Krag, noting that activities included carrying victims, learning about fire behavior and building construction, using fire extinguishers and hydrants, and more. That could all change though, if KCC’s dream of constructing a multiuse Apprenticeship and Industrial Trades Center is realized. The center is slated to span five acres on the KCC campus and include nearly 12,000 square
feet of hands-on training space for students enrolled in industrial trades and apprenticeship programs such as electrical,
“They are going to see fire engines and people out there doing the training,” Brown said. “Right now the fire program is present
Merrill, Malin, and Bonanza are all staffed solely by volunteers.
plumbing, millwright, pipefitter, and machinist. Students enrolled in fire sciences and emergency medical operations programs will have a 3,200-square-foot fire academy for wildland and structural fire instruction.
on campus, but mainly in a classroom. All the hands-on training is done off-site, so it’s never seen by other students or potential students.
said having a local facility for training reduces the risks associated with travel, especially in winter months, and provides valuable opportunities for agencies to train with the personnel they work side-by-side with when responding to emergencies.
“KCC’s new trades center and fire training facility will attract applicants from all over the West,” said Charles “Chip” Massie, KCC executive director of external programs and the KCC Foundation. “The growth will undoubtedly create an advantage for our local fire entities and become a driver for economic development in our communities.” Brown said the apprenticeship center will be a one-stop-shop for current fire science students to learn an array of skills, from performing the basic functions of a firefighter to the chemistry and physics involved in fire theory. The center will also provide potential students with an up-close view of what a career in emergency response entails, he said.
“Once those facilities are there people can see where they can practice throwing ladders; where they can practice on live fire, and where they can learn to operate fire apparatus and fire trucks. They’ll know what a fire station actually looks like.” Local benefits According to Brown, in addition to creating a homegrown, emerging workforce, another key benefit of providing local education is opening up opportunities for current emergency responders to receive continuing education and training. “It’s extremely expensive for a volunteer department to send its people out of county for a training, and it’s hard for people who are volunteering their time to do that,” he said, noting that fire stations in Keno, Chiloquin, Stewart Lennox, Rocky Point,
Chiloquin Fire and Rescue Chief Mike Cook
“Having a local training center will allow us to have good working partnerships with our mutual aid partners, to keep our personnel safe, and to cut costs so money can be spent in other important areas,” Cook said. Brown said the types of training he hopes to see at the new center will create incentive for local agencies to partner more often and ensure local emergency responders have access to continuing education. “We can keep our emergency responders here in Klamath County,” Brown said. Krag said it’s hard to know what the future will hold, but in a perfect world, he would land a paid firefighter position with KCFD1 after he graduates from KCC. Krag said he would like to stay in Klamath Falls near his family, friends, and outdoor hobbies. Southern Oregon Business Journal October 2019 | 29
ENTREPRENEUR TO ENTREPRENEUR
Jackson
CYNTHIA SCHERR
Ashland Home Net September 24, 2019 E2E Meeting
You can’t escape kindergarten without hearing the story of The Little Engine that Could. It’s the right encouragement for small children and certainly anyone who starts a business. Business is an uphill battle, especially when you have something vitally important to deliver, you depend on tracks someone else laid, and you have giant competitors around every corner. Sometimes the little guy is the only one up for the job. Jim Teece and Dena Matthews, owners of Ashland Home Net, hosted E2E (Entrepreneur to Entrepreneur - SOE2E.com) in September to share the story of how their internet/cable/phone service company grew from a Business only ISP with 100 customers to a multi-service 30 | Southern Oregon Business Journal October 2019
provider covering Ashland to Roseburg. Their passion from the beginning has been to make mom and pop businesses successful. Today, no one would consider running a business without access to high speed internet. In 1995, the idea was radical. Jim, a group of other tech-savvy entrepreneurs, and the City of Ashland worked together to start the Ashland Fiber Network when they realized that businesses would need access to a high speed fiber network to stay competitive. As a result, the Ashland Starbucks was the first in the country to offer free wireless internet. Cue the novel idea that you can work from inside a coffee shop!
To be clear, the Ashland Fiber Network (AFN) is owned by the City of Ashland and the debt for that infrastructure is due to be retired in 2024. The City is responsible for maintaining and upgrading the hybrid fiber/coax network. Ashland Home Net provides installation orders, set up, billing and tech support for internet, cable and phone service. Ashland Home Net started as one of many small ISPs in the region. Gradually, Jim and Dena acquired other ISPs and customers including the Open Door Network, InfoStructure and Jeffnet. They created Rogue and Umpqua Broadband in order to provide high speed wireless for rural customers in Jackson and Douglas Counties. Internet
service remains the majority of their business now that connectivity of mobile devices is critical to running all parts of our lives.
Home Net’s competitive advantage is saying YES when asked for help. Jim even has a “superman” cape in his office from an appreciative fan.
Net when channels are up or down. And finally, out of concern for customer safety, Coming on Site, alerts customers when technicians are arriving.
Jim and Dena support Ashland Schools, Asante, SOU, the Chamber of Commerce, Hope Equestrian Center, the Jackson County Fairgrounds and the Ashland Independent Film Festival, among many other organizations. As devoted community members, they feel strongly that AFN—our own local fiber network—needs to stay alive. Charter, a $43 billion company with a huge marketing budget, competes head to head with them. Some people have posted on social that they are being told that Ashland Home Net isn’t locally owned. Part of Ashland
Ashland Home Net has been an innovation machine. When they see a need, they develop a solution. Jim pioneered Channel 20 to cover local events like the Fourth of July Parade and City Events. Today in Ashland aggregates community events each day on an online calendar. A system for communicating throughout the County during disasters was developed from eOneOne, a concept Jim developed. Streaming Sign Up elevates all small cable companies to be able to do streaming. UpDown alerts customers and Ashland Home
Because connectivity is essential to our everyday lives, customers insistently and persistently demand faster internet speed. As Jim says, “fast isn’t fast enough.” Ashland Home Net continues to work on improving speeds, being the best ISP in the market and, once again, “future proofing” Southern Oregon. If I think I can, I think I can, I think I can, isn’t their refrain, I don’t know what is.
Cynthia Scherr has over 20 years of experience working with businesses, nonprofits, and government organizations. She also co-founded the Southern Oregon E2E network. ScherrConsults.com
Southern Oregon Business Journal October 2019 | 31
EDUCATION
Klamath
OREGON TECH
Six senior students and two faculty members from Oregon Institute of Technology’s (Oregon Tech) dental hygiene program in Klamath Falls traveled to Montego Bay, Jamaica earlier this month to provide dental care to underserved communities in rural areas. The trip was part of the International Externship Program (IEP), which provides students the opportunity to travel outside the United States and provide dental care in nontraditional settings and within new cultures. The goal is to not only provide much needed dental care to underserved populations, but also provide students an opportunity to develop 32 | Southern Oregon Business Journal October 2019
Dental Hygiene Students at Oregon Tech Deliver Services to Rural Populations in Jamaica
confidence, skills and a passion for community service. These skills can benefit them in future work settings such as public health, dental missions, rural health and mobile dentistry. This is a commitment by each team member, as they must each raise $2,700 through private funds, donations and fundraising events. The 2019 IEP team members were Breanna Bass, Shayla Engelbrecht, Kailey Flockoi, Melanie Fournet, Megan Schrock and Allison Wood. Faculty instructors coordinating and traveling with the students were Jeannie Bopp and Lois Goeres. Rural sites where clinics were set up in churches or community buildings were selected by Great
Shape, Inc. Students learned to deal with hot, humid conditions, power outages, old equipment, and long bus rides to the sites on very crude narrow roads. The Oregon Tech team worked with dental students and faculty from UCLA and Midwestern University to form teams at each site. “I am very proud of our dental hygiene students who showed compassion, composure and professionalism, not only with the Jamaican people, but also their teams, classmates and instructors,” shared Dental Hygiene instructor Jeannie Bopp. “The people of Jamaica were extremely grateful and appreciative of the care they received. They thanked us with
gifts of coconuts, avocados, dancing and traditional Jamaican food. They had little to give but their smiles and appreciation were reward enough. “Through this trip, the students experienced the power of compassion, teamwork, and giving of their knowledge and skills to change the lives of others less fortunate,” added Bopp. “They will be amazing leaders upon graduation as they apply this experience to their own communities.”
helped me get there. I hope to someday be able to provide services like this again. It has made me realize how much I love this life of mine and cherish my dedication to this healthcare profession.” Megan Schrock from Philomath, Ore.
In the students’ own words: “The trip had it all, work, sweat, tears, laughs, fun and memories that will last a lifetime.” Allison Wood from Klamath Falls, Ore. “I will forever cherish this experience and everyone who
“We have served hundreds of Jamaicans this week and it has made my heart full.” Kailey Flockoi from Gold Hill, Ore. “The people of Jamaica were amazing and the most appreciative people I have ever met! This experience taught me many valuable lessons.” Melanie Fournet from Newberg, Ore. Southern Oregon Business Journal October 2019 | 33
PLANNING
Oregon
JOE CORTRIGHT
Carbon emissions from transportation in Portland increased 6 percent last year In the one are where city policy can make the most difference, greenhouse gas emissions are increasing Portland has long prided itself in being one of the first cities in the US to adopt a legislated goal of reducing its greenhouse gas emissions. The city’s latest carbon emission inventory report shows that the city is failing to meet these goals. Not is the city far from the glide slope needed to reach its target, carbon emissions are actually increasing–primarily due to more driving. Transportation is now the largest source of Portland’s greenhouse gas emissions, and have risen more than 6 percent in the past year– mostly offsetting gains in other sectors. 34 | Southern Oregon Business Journal October 2019
Portland’s Climate Fail: More Driving
The city’s report concedes that this is a problem: Transportation sector emissions are increasing dr amatically, currently 8 percent over 1990 levels, and 14 percent over their lowest levels in 2012. Portland has experienced year over year increases in transportation-related emissions for the past five years, with transportation emissions growing faster than population growth over the same period. The failure to make progress in the transportation sector is especially apparent when we look at the change in carbon emissions by source. Since 2000, more than 70 percent of the carbon emission reductions have come from savings in the commercial and industrial sectors. Over that same period, the city has made no net progress
in reducing carbon emissions from transportation. While residential emissions are down about 30 percent–thanks in part to cleaner energy sources for electric generation and home heating and weatherization–the one area where local policy is likely to make the most difference– in transportation energy consumption–the city is failing. Falsely attributing transportation emissions to job growth instead of cheap gas The city’s climate report seems to be in denial about the causes and the seriousness of the rise in transportation emissions. It tries to attribute rising emissions to an improving economy, claiming (page 9):
. . . transportation sector emissions have increased i n recent years. The increase in transportation emissions has tracked closely with the recovery from the 2009 recession. This claim is false. Transportation-related emissions actually fell between 2010 to 2014, when the Multnomah County added 44,000 jobs. The report fails to mention that all of the increase in transportation emissions came after 2014–when gas prices fell by more than a third, prompting more driving. As long as gasoline prices were high, even with five years of economic growth, driving and transportation emissions continued to decline. In addition, the report emphasizes that the region has achieved per capita reductions in driving and gasoline consumption, and tries to blame increased transportation emissions on rising population; yet other sectors (residential, industrial and commercial) are managing to achieve absolute reductions in emissions even though we’re housing, employing and serving a considerably larger population. Ignoring the critical role of prices, and shifting the focus to per capita changes in consumption (which are good) while ignoring aggregate emission increases undercuts a serious look at what is needed to achieve the region’s climate goals. Transportation is now far and away the largest source of Portland’s greenhouse gas emissions, and they will only be reduced if we change the price of driving to reduce vehicle miles traveled.
Plateauing = Failing Portland’s Bureau of Planning and Sustainability seems to be putting this failure to make progress in recent years as a “plateauing” when in fact it represents a significant failure. The Portland Tribune reported: “We’ve had a lot of success in reducing emissions,” said Planning & Sustainability Director Andrea Durbin. “That’s big.” All of that “success” stopped in 2012, total emissions are up since then. Here’s the thing: in the climate arena, plateauing is actually backsliding. Unless the city reduces emissions each year, it falls further and further behind in meeting its goal. In essence, the city has lost five years. Those five years will have to be made up, and the task ahead is even tougher: we’ve already done the cheapest, easiest things to reduce emissions (like replace residential oil heating with natural gas). It’s also worth noting that most of the emission reductions aren’t attributable to city policies– much of the success has been the result of state and federal policies–like increased renewable power and declines in coal fired electricity generation. The city staff recognize that more is needed, but exactly what isn’t clear. According to Durbin, (again from the Portland Tribune): Portland Mayor Ted Wheeler believes part of the solution is for the City Council to declare a climate emergency sometime next year. Staff at
BPS have been directed to reach out to youth, communities of color and other groups this fall. Durbin says the mayor also is considering a new ban on fossil fuel infrastructure . . . If one is intent on banning new fossil fuel infrastructure a good place to start would be by reversing course on the proposed half-billion dollar Rose Quarter freeway widening project, which would increase driving and add to carbon emissions. Bottom line: Despite making progress between 2000 and 2010, Portland is now falling further and further behind in its pledge to reduce greenhouse gas emissions, almost entirely because we’re driving more. The failure to connect the dots–low prices for fuel stimulate more driving–means we’re likely to fall further behind in the years ahead, unless we do something dramatically different. On Friday, along with other cities, young Portlanders will participate in a national climate strike–this report shows that their concerns are justified, and that the city needs to do much more if it is to achieve its lofty goals. We hope Portland’s leaders will be listening. Bureau of Planning and Sustainability, Multnomah County 2017 Carbon Emissions and Trends, September 18, 2019 https://www.portlandoregon.gov/bps/article/ 742164
Southern Oregon Business Journal October 2019 | 35
ROGUE VALLEY ECONOMIC INDICATORS August
Unemployment
2019
Rates*
Nonfarm Jobs
Nonfarm Employment Change by sector, August 2018 - August 2019
Jackson County
4.7%
88,680
Josephine County
5.3%
27,900
Jackson County
Health care & social assistance (+230) Manufacturing (+170)
Employment grew over the year in both Jackson County and Josephine County, at 0.8 and 2.3 percent growth rates, respectively. Statewide, the growth rate was 1.8 percent.
Leisure & hospitality (+160) Construction (+160) Government (+150) Information (+50)
Employment Growth in the Rogue Valley over-the-year rates of growth 6%
JOSEPHINE 5%
Local government education (-80)
JACKSON 4%
Retail trade (-430)
3% 2% 1%
Aug-19
Aug-18
Aug-17
Aug-16
Aug-15
Aug-14
Aug-13
Aug-12
-1%
Aug-11
0%
-2%
Nonfarm Employment Change Josephine County by sector, August 2018 - August 2019
-3%
For the Latest Info, Click Below: Unemployment rates
Private education & health services (+210) Government (+180)
Josephine / Jackson regional information
Leisure & hospitality (+80)
Latest Oregon labor market news
Manufacturing (+70)
or go to QualityInfo.org
Professional & business services (+70) Construction (+50)
Workforce Analyst for Lane County currently covering Southern Oregon Economic Indicators
Retail trade (-120)
Henry Fields, (541) 359-9178 Henry.L.Fields@Oregon.gov
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36 | Southern Oregon Business Journal October 2019
August 2019 data unless otherwise noted
*Seasonally Adjusted
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HEALTH CARE SHERRI BURI MCDONALD
The Heartfelt House on PeaceHealth’s RiverBend campus provides “home away from home” for out-of-town families. The Heartfelt House, PeaceHealth’s new patient family guest house in Springfield, welcomed its first families on Sept. 10. The 20-room guest house is a tremendous new resource for southern Oregon families who are traveling to the Eugene-Springfield area to be near loved ones receiving care at PeaceHealth Sacred Heart Medical Center at RiverBend in Springfield or University District in Eugene. “This beautiful, welcoming home provides a place of comfort and healing for families who are facing trying times—the new parents of a fragile infant in our Neonatal Intensive Care Unit, the grief-stricken loved ones of a trauma patient and sometimes patients themselves, who need a good night’s rest before an early morning surgery or have traveled here for outpatient treatments unavailable in their community,” said Mary 40 | Southern Oregon Business Journal October 2019
Lane
The Heartfelt House on PeaceHealth’s RiverBend campus provides “home away from home” for out-of-town families.
Kingston, chief executive of PeaceHealth Oregon network.
things get overwhelming—and things do get overwhelming.”
The 20,200-square-foot, single-level guest house is just a five-minute walk away from Sacred Heart Medical Center at RiverBend. It offers family members of both adult and pediatric patients a no-cost “home away from home,” with spacious private rooms, kitchen and dining areas, laundry facilities and places to relax both indoors and outdoors.
Swesso knows this first-hand. Both of her daughters were born prematurely, requiring stays in RiverBend’s Neonatal Intensive Care Unit. Her youngest, Paisley, born at 30 weeks, spent 78 days in the NICU after her birth in January 2016.
After touring the Heartfelt House at an opening celebration earlier this month, Sutherlin resident Heather Swesso said the house is amazing and will make life so much easier for families with a loved one in the hospital. “It’s going to be a stress off them,” she said. “They don’t have to travel back and forth. They have a place to stay. They can get a good night’s rest. They can take a nap when
Swesso said she was lucky to be able to stay at her aunt’s house in Springfield during that time. But even the short drive from her aunt’s house to the hospital felt like an eternity for the new mom eager to check on her fragile newborn. The Heartfelt House, designed by the Eugene-based architecture firm 2fORM, has two wings of 10 guest suites on either side of a great room, whose central feature is a large stone fireplace. Each wing has its own kitchen, dining room, lounges and laundry facilities.
photos by Brian Davies
One wing is for families of pediatric patients and the other is for families of adult patients—an innovative design among similar guest houses throughout the country. PeaceHealth owns the Heartfelt House—an $8.4 million project funded through the generosity of more than 600 donors. Within the Heartfelt House, Ronald McDonald House Charities of Oregon & SW Washington operates its fourth Ronald McDonald House for pediatric patients in Oregon. It is Oregon’s first Ronald McDonald House outside of Portland and Bend. “We’re thrilled to be opening another house to serve even more children and families in Oregon,” said Jessica Jarratt Miller, chief executive officer of Ronald McDonald House Charities of Oregon & SW Washington.
PeaceHealth contracts with Ronald McDonald House Charities to also oversee day-to day operations of the adult wing. The Heartfelt House replaces the former Children’s Miracle Network/Lions Patient Family Guest House on Patterson Street near the University District campus in Eugene. PeaceHealth’s behavioral health program is working to convert that home into temporary housing. All first-time guests to the Heartfelt House require a referral from a hospital social worker. Families of patients who are being discharged from Sacred Heart Medical Center may ask the social worker on their unit about staying at the Heartfelt House. Social workers at out-of-area hospitals, or families themselves, may request a room by contacting PeaceHealth Care Management.
About PeaceHealth PeaceHealth Sacred Heart Medical Center at RiverBend is one of Oregon's busiest hospitals located in Springfield, Ore., 110 miles south of Portland. This 351-bed facility is one of the largest hospitals between Portland and San Francisco, serving as a Level II Trauma Center for an eight-county region. Key services for the not-for-profit hospital include cardiology and cardiovascular surgery, oncology, orthopedics, neonatal intensive care, neurosurgery and other specialized surgical services. peacehealth.org
Sherri Buri McDonald | Communications Specialist | Strategic Communications & Engagement PeaceHealth | 770 E. 11th Avenue | Eugene, OR 97401 Southern Oregon Business Journal October 2019 | 41
PEOPLE
Oregon
GREG HENDERSON
Ruth Miles accepts Secretary of State, Bev Clarno’s offer to be the new Corporation Division Director
Ombudsman, growing that program from a one-person office into one of the most robust programs of its kind in the country. With 18 years of experience running small businesses, Ruth understands first-hand the challenges that entrepreneurs face. An avid kayaker, she came to the Secretary of State after nine years in the legislative branch, where she helped constituents navigate the shifting waters and complexities of state government. Ruth Miles has been a tremendous help to the Small Business Development Center in Roseburg since first being introduced to the group of advisors several years ago. She takes her job seriously and is always responsive to requests. There are people in business and in government who rely on her and the resources at her disposal who might otherwise become frustrated with delays and unhelpful direction. Ruth will put forth her best efforts to assist with small concerns and very large issues with equal zeal and professionalism. Her position as Director of the Corporate Division, and Tribal Liaison is a responsibility every Oregonian should welcome. Congratulations Ruth. Greg Henderson Director, Corporation Division, and Tribal Liaison As Interim Director, Ruth oversees registration of businesses and nonprofits for the Secretary of State, along with a 42 | Southern Oregon Business Journal October 2019
diverse portfolio including notary commissioning and the state’s UCC system. She also serves as the agency’s tribal liaison. Ruth previously served as the Secretary’s inaugural Small Business
Greg Henderson is the founder and Co-Publisher of the Southern Oregon Business Journal. Greg@SouthernOregonBusiness.com
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