REGIONAL ECONOMIC DEVELOPMENT FORUMS Discussion Summary Central Oregon Region Bend, Oregon Input from economic development organizations, local government, business groups, employers and education leaders on ways to support and strengthen the regional economy. SEPTEMBER 2014 A project of: Business Oregon, The Oregon Business Plan and Regional Solutions Centers Report prepared by: The Center for Public Service, Portland State University
Regional Economic Development Forums Discussion Summary Central Oregon Region Bend, July 29, 2014 On July 29, 2014, approximately 75 economic development, government, business, and education leaders gathered in Bend to discuss regional economic opportunities and the programs and policies needed to grow and strengthen the region s business and industry base. This write-up highlights the perceptions of and ideas from participants; they may or may not reflect how current programs operate. KEY OPPORTUNITIES FOR BUSINESS AND ECONOMIC GROWTH The discussion started with a large group conversation about how the economy had changed in the past 10 years, and key opportunities for growth over the next five years.! Central Oregon s economy has undergone significant diversification in recent decades. This has led to an array of new business opportunities and national attention as a hot bed for new companies. Yet, with limited resources, some attendees noted a fractured approach to growing specific niche markets, which could be better coordinated under a Central Oregon brand.! There appeared to be general agreement that the region s growth opportunities are in natural resources along with the innovation of products and technologies that support natural resources, outdoor gear/apparel, renewable energy, UAV and software applications in support of these and other industries.! Attendees noted that the region has an engaged business community, which has stepped up to the table in terms of supporting entrepreneurs, and engaging in efforts like Better Together that brings the community together to address targeted issues. This engagement is key to moving priorities ahead.! OSU Cascades Campus is viewed as key asset for future economic development, supporting traditional and emerging industries, enhancing the talent pool for existing businesses and attracting new businesses to the region.! Workforce is a key issue for the expansion and attraction of businesses to Central Oregon. The state has cut several programs that provided flexible funds to address workforce issues. Oregon needs a Jobs Program, similar to other states, that provides a forgivable loan to companies expanding or relocating jobs to the area.! Housing is an issue in Central Oregon. Wages are lower than the national and state average, yet housing costs are on par with metropolitan areas. The array of stock, geographic distribution and affordability of housing is viewed as an issue that continues to hinder economic opportunity. SMALL GROUP DISCUSSIONS Attendees broke into smaller groups to identify specific ways in which to move regional economic development priorities forward. In Central Oregon, these groups included business development for natural resource industries and outdoor/recreational industries, emerging markets and innovation-based efforts, talent and workforce, infrastructure and education- business connections. Business Development: Outdoor Gear & Apparel and Recreational Markets This group discussed ways by which the region and state can work together to grow companies and markets associated with outdoor gear, apparel and recreational services. The five-year goals for this industry are:! A 50% growth in the number of companies and a 60% growth in employment.! This growth would support a formal industry association for outdoor and recreation industries that includes both manufacturing and service related companies, with a strong trade show presence and focus in Oregon's marketing efforts.! Growth in this industry would be throughout the region including more growth in Crook County.
! A high level of public awareness and support for the industry and the benefit it brings to the regional economy. To reach these goals, there is a need for the continued support of the entrepreneurial ecosystem that currently helps to start and grow businesses. This includes mentoring services, access to capital and collaborative marketing efforts through EDCO, OEN, FoundersPad and others. What is missing or what should be done differently to accelerate the growth of this industry includes:! More career technical education including training for sewing and other types of manufacturing skills related to making an outdoor gear and apparel.! Seed and bridge financing from startup to the $5 million range.! Awareness of resources available to help companies grow, and easy access and navigation of those resources.! A cohesive marketing strategy including a Made in Central Oregon brand, and a Team Oregon outdoor gear effort.! An evaluation of incentives that are tied to recreational companies, including incentives tied to job growth that can be adapted to smaller companies.! Having a cohesive marketing strategy.! Attracting more seed and bridge financing.! Establishing an industry association to coordinate opportunities. Business Development: Natural Resource Industries This group discussed ways by which the region and state can work together to grow companies and markets associated with natural resource industries including forest and wood products, and value-added agriculture. To enhance growth opportunities for resource based industries, the group noted a set of five-year goals for Central Oregon that included:! An increase in Forest Collaboratives.! Expansion of value-added and precision agriculture companies and markets.! A comprehensive water resource plan.! Targeted efforts to enhance the mining industry. To reach these goals, the group noted several efforts that were working and should be continued. These included:! Funding and support of forest collaboratives.! Continuing to address water supply, storage and allocation issues from the Columbia and Umatilla rivers and Prineville reservoir.! Encouraging innovative growers with investment capital, business assistance and facilities to develop and test new products. The group also pointed out programs and policies missing in the region that should be addressed. These included:! A certainty of water supply and how that water is allocated among industrial, commercial and residential use to accommodate regional growth.! An accelerated forest restoration program with local control/flexibility that addresses biomass solutions and a certainty of supply.! Enhanced resources and cooperation among government agencies to fight fires with sustainable funding mechanisms for firefighting resources.! A fully developed plan to address invasive species and Juniper reduction that reflects conditions unique to Central Oregon.! A coordinated regional-statewide marketing plan of natural resource products and businesses.
! Innovation funding for commercializing new ideas (state funds currently focused on high tech) whereas a significant amount of innovation is happening in natural resource industries.! Zoning land-use laws that have more local flexibility and control.! Continued support of forest collaboratives and other collaborative models.! Having a clear water strategy that addresses certainly of supply (allocation, storage, and efficiency/use).! A forest restoration and biomass program with local flexibility. Innovation and Entrepreneurship This group examined resources and strategies needed to accelerate the innovation of new products and the launch and growth of new traded sector companies. The five-year outcomes the group noted as essential for innovation and entrepreneurship in Central Oregon included:! A robust system that helps entrepreneurs move their concepts to product testing, commercialization and to market.! The attraction of more CEOs that makes Central Oregon their home.! Better integration of workforce development into entrepreneurial strategies.! OSU Cascade Campus and COCC with programs that support emerging markets in energy, UAV, outdoor gear, technology and other high-growth markets. To reach these outcomes, participants pointed out efforts on which Central Oregon can build that included:! Sustaining the mentoring and ecosystem support efforts that have been developed in recent years; the Stable of Experts, the Angel network, the Bend Venture Conference, FoundersPad, Opportunity Knocks and Tech Alliance of Central Oregon. The group also discussed that what is missing in the region is an adequate supply of proof of concept funds:! An SBIR program in the state that can help with grant writing and matching funds (evaluate other state models that have been successful).! Ramped up and sustained resources for entrepreneurial development (current support is not sustainable).! A regional innovation center that can assist businesses in testing products and prototyping the manufacturing of new products.! Seed funds that fill the gap between proof of concept stages (SBIR/prototyping and business launch) and early stage growth; moving companies past the initial revenue hurdle of $1 MM.! Better information about what markets and industries are best suited for growth in Central Oregon; ones that can scale and stick given the assets and resources in the region. When asked what had to happen first, what did the region have to get right the group prioritized the following:! Sustained and coordinated support (staffing and funding) for the region s entrepreneurial efforts focused on high impact companies.! A strategy to develop and attract management and technical talent needed to scale companies.! The establishment of a regional innovation center for prototyping and testing products. Infrastructure This group explored specific means to help move forward a set of identified infrastructure project in the region. The group s five-year infrastructure vision for Central Oregon included key milestones such as:! A supply of industrial lands with available water, sewer and natural gas serving these sites.! Sustainable funding mechanisms for infrastructure (fully funded SB 246 & 253) and more coordination with private and public entities including local state and federal funding resources.! A plan for increasing the road capacity to the Willamette Valley
In terms of what is working in addressing infrastructure issues, the group noted the following programs:! Main Street in downtown revitalization partnerships,! Connect Oregon (although it needs more funding) and! Interagency cooperation to assist with specific infrastructure projects The group also identified specific programs and policies that were missing in the region or needed to be done differently. These included:! An adequate funding source for transportation including non-automobile transportation, with funding options tied to economic development including job and business development outcomes.! Funding to help small businesses with infrastructure and system development cost. Perhaps financing charges to spread upfront costs over a longer period of time.! Increasing the timeframe for local option levies.! Coordinated planning and comprehensive funding of regional infrastructure with clear priorities based on economic impact and need.! Industrial and commercial lands tied to future opportunities with more flexibility in land use regulations to develop lands according to economic opportunity rather than past zoning. Talent & Workforce This group discussed how training and education programs could better support the new and existing workforce needs of regional businesses. To grow talent needed to support Central Oregon industries, the group listed a set of five-year goals for the region that included:! High school students graduating with an understanding of career ready opportunities in the region.! Easier access for businesses to understand workforce programs and training incentives available to them, and to participate in the development of education and training programs.! More training programs and funding for incumbent worker and on-the-job training to help existing workers move up in their skill level.! A local Workforce Investment Board (LWIB) that is well connected to the region s economic development organizations. To reach these goals, the group noted key efforts that were working and should continue to be supported. These included:! An expansion of Better Together, a community partnership working toward a share goal.! An expanded career technical education at Redmond high school and Crook County.! Expansion of the new higher education open campus model to reach more students. Among the programs and policies missing or in need of modification in order to achieve the talent objectives for Central Oregon, the group noted:! Additional resources for incumbent worker training and more flexibility in how resources can be applied to train workers.! Full funding of career technical education programs and a region-wide strategy for connecting CTE to industry sectors.! Affordable workforce housing, and accessible child care and transportation to help workers find and retain jobs, and a ramp down period once a person finds a job, so these support resources do not end abruptly.! More training of workforce and education staff to understand local career options and career pathways of regional industries. This includes information and data for counselors, teachers, administration and parents.
When asked what had to happen first, what did the region have to get right the group prioritized the following:! A local workforce board (LWIB) that is fully functional and connects education and business into a cohesive workforce strategy.! A robust CTE effort throughout the region with strong ties to local industries.! Addressing the housing and other support issues that inhibit workers from taking new jobs. Education to Business Connections This group specifically discussed how education can better integrate with regional industries and coordinate with economic development strategies. The five-year goals for Central Oregon to better connect education to the business community included:! Oregon State University Cascade Campus is up and running.! An educational network that includes a robust distance-learning program throughout the region.! Workforce plans that are aligned with industry needs, including regional STEM and other technical and professional career pathways.! Articulation that is seamless and coordinated throughout the K 20 education system.! Coordinated engagement with business through a one-stop or concierge type of service. To achieve these education and business connections, Central Oregon can build on what is working:! The ability to reinvent ourselves.! Strong coordination between Central Oregon Community College (COCC) and Oregon State University Cascade Campus.! A community that values education, and businesses that are willing to be engaged in educational efforts.! An open campus model. What's missing or what can be done differently to achieve these goals includes:! Better articulation and transfer of credits between COCC and OSU.! The need for business related skills to be incorporated into technical degrees and certifications. An example would include engineering degrees that have business, financing and marketing classes included.! The ability to do more remote and distance learning for short certification programs.! Enhanced access to financial aid.! Establishment of a coordinated business engagement process where workforce, educational and economic development organizations, coordinate their visits to and information about regional businesses.! A fully operational OSU Cascade Campus.! The infrastructure to deliver education and training through distance learning programs, work-place initiatives and other alternative efforts to reach more students and workers.