REGIONAL ECONOMIC DEVELOPMENT FORUMS Discussion Summary Mid-Willamette Valley Region Monmouth, 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 Input Summary Mid-Willamette Valley Region Monmouth, July 31, 2014 On July 31, 2014, approximately 74 economic development, government, business, and education leaders gathered in Monmouth 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 To kick-off the forum, the group discussed key business and economic opportunities in the next five years: specifically, what outcomes would define economic success in 2020. The responses included:! Continued growth in key industries Food processing and wine Advanced manufacturing Technology! A workforce training and education system that is more aligned with regional industries, and an enhanced coordination of economic and workforce strategies.! More entrepreneurial support resulting in an increase of new business startups.! The planning, funding and start of transportation projects that improve freight mobility including increased capacity and access to the Port of Portland.! A supply of industrial and commercial land that is aligned with economic opportunities.! Greater consistency and predictability in key regulations related to land use.! A sustainable revenue stream for local governments to support infrastructure needs. SMALL GROUP DISCUSSIONS Participants chose one of six groups to further explore economic development opportunities in the Mid-Willamette Valley. Groups included local government and infrastructure, talent and workforce, business development services, coordination of economic programs, and two business groups focused on opportunities and impediments to growth. The following summaries highlight key themes and suggestions from these conversations. Business Development (2 groups) There were two groups comprised mostly of businesses in manufacturing and value-added agriculture, utilities and service industries that discussed specific issues related to growing traded sector firms, including access to capital, marketing, regulatory and infrastructure needs. The group identified a set of key challenges and opportunities, and then suggested ways to address each issue. Suggestions included: Being Open for Business Businesses perceive the state of Oregon as not having a pro-business attitude. They view the state s business marketing as rather anemic with little coordination between state and regional economic groups. They also see a lack of marketing or telling of success stories with regards to natural resource and manufacturing-based industries. The group suggested that:! Oregon significantly elevates the level of marketing to national and international markets, leveraging the state s strengths and being more strategic and targeted in marketing efforts. This included emphasizing regional industry sectors with unique concentrations of businesses and talent.
! Business Oregon provide industry groups more comprehensive information about future market opportunities and economic trends. Small Business Development & Access to Capital The groups noted that smaller businesses have difficulty navigating the array of services, noting a lack of a one-stop for small businesses to get information about both state incorporation requirements and services such as capital and technical assistance. It was suggested that:! The state have a more centralized portal of information that included programs and services from multiple agencies, supported by an ombudsman role at Business Oregon Moving Goods There is difficulty in shipping product out of the Port of Portland. Many companies at the forum use Seattle to receive and ship product. Issues with the Port of Portland included access and an apparent lack of capacity illustrated by companies complaining about long wait times for loading or unloading. It was suggested that:! More focus or priority on addressing access and capacity issues related to the Port of Portland as part of a statewide transportation vision for moving freight and product. Water Infrastructure Water storage, access and allocation was discussed as an issue inhibiting opportunities for growing natural resource industries. Suggestions for addressing this issue included:! Having a state and regional water strategy for industry and agriculture that includes supply, allocation to users, storage and conservation measures. Regulatory Issues Utilities voiced issues with the regulatory process around land use and infrastructure development, citing legal standing challenges that hold up and make projects more costly. Utilities and companies operating in different jurisdiction cited inconsistent infrastructure and building regulations as a challenge.! Working through Regional Solutions to develop more regional consistency among land use regulations and permitting processes, with a goal of being a model region that is attractive to business. Talent Development Youth Business recognizes the need to provide youth with early work experience, however, when competing with applicants with more experience it is hard to hire youth and pay the same wage. Businesses suggested:! A training wage for use to help encourage youth, especially on limited terms such as summer or seasonal jobs.! Expanding career technical education: fully fund CTE including soft skills like customer service; and having a much more robust marketing of career-technical occupations in middle and high schools so students recognize that these jobs are viable choices for good wages and a career path.! Engaging business to help form and shape curriculum, with economic development organizations and other business groups playing a lead role in connecting businesses to these workforce efforts. Tax Treatment Business tax environment is perceived as being unfriendly. Companies wanted to see:! The Oregon Business Plan and other business groups advocating more strongly for a more business friendly tax structure that supports existing and emerging industries in the state and which is backed by strong data and information.! The misalignment of the state and federal family medical leave act (OMLA and FMLA) addressed.
Business Service Organizations This group of organizations providing capital, technical assistance or other business development services discussed specific ways to enhance the coordination and marketing of business assistance programs. To enhance the effectiveness of business service organizations, ensure programs are up to date with business needs, and improve business awareness and access to program, the group suggested the following: One-Stop Information The state has a variety of services that help businesses, ranging from SBDC's, to programs at Business Oregon, to entrepreneurial groups like OEN. The group noted that a lack of coordination among groups making it hard for a business to understand who is doing what. It was suggested that:! A more centralized source of information and coordinated marketing effort of available businesses services be developed and shared between the state and regional groups. Innovation Funding for Small- and Medium-sized Enterprises (SMEs) This group noted that the small businesses they work with that are developing new products have a hard time accessing equipment and/or testing facilities for product development. The group suggested:! Coordinating information about regional and statewide facilities available for product and material testing and prototyping and sharing information with business service organizations.! Developing an innovation fund to help businesses with final stages of commercializing new products. Access to Capital Access to startup capital also appears to be an issue in the Mid-Valley. Many business service programs have mentoring, yet few have any capital to support the advice. The group suggested:! An increase in micro-financing funds to organization with business services and more risk taking in revolving loan funds to serve different types and of companies at various business stages.! Helping organization understand and, if needed, establish alternative capital options such as crowd funding. Local Government and Infrastructure There were two groups representing local government and infrastructure interests. Their insights and recommendations included: Regulatory Challenges To help streamline or make more consistent the regulatory environment, groups suggested:! A role for impacted parties in the LCDC process so land use laws are not unduly inhibiting development.! A regional wetlands study to streamline development process and develop a regional approach to land-use where policies and regulations are more consistent and predictable. Funding Infrastructure and Businesses The group noted the importance of patient capital for community infrastructure and business development. Affordable financing for infrastructure development is critical for municipalities who were strapped for cash. The group suggested:! Having Regional Solutions help to coordinate state and federal funding to aggregate available financing for priority infrastructure projects.! Regionally coordinating and funding infrastructure projects in pre-development stage.! Taking better advantage of grants and programs including enterprise zones, urban renewal districts and strategic investment programs. For businesses, this includes grants and revolving loans, many types of programs that business Oregon already has. However, the group suggested:! Enhancing the coordination and marketing of services among providers, and evaluating programs to ensure they meet industry needs of today.
As broadband continues to be critical to business, education and health care, the group suggested:! Develop and coordinate a regional broadband strategy to enhance the capacity and reach of broadband throughout the Mid-Valley Region. Capacity for Basic Services and Staffing There is a capacity issue in the Mid-Valley Region, especially for the small municipalities. This includes revenue streams to support basic services as well as staff to perform needed, yet more episodic or technical, functions. The group explored ways to fill staffing and expertise gaps in local governments. Ideas included:! Establishing a shared pool of expertise where each municipality pays for a share of time for a group of expertise (e.g., planning, financing, etc.).! Conducting a study to determine the types of financing and tax reform that can help small- and mid-sized municipalities sustain revenue streams that can maintain their public services. Support Small Business Development The group suggested that the main street program should be restored and there should be adequate technical assistance for new businesses that goes beyond just the start up stage. Leverage Incentive Programs The group noted a need for the state and regions to do a better job in coordinating their development and implementation of incentive programs. It was suggested that:! A statewide template for development agreements and incentives be developed to promote greater consistency with how regulations are developed and implemented across the state. Talent This group discussed how to develop a talent pool that was aligned with regional industries and future job opportunities. Incumbent Worker Training To help enhance the ability to train incumbent workers, the business community, together with workforce and education need to have a shared agenda to:! Fund Senate Bill 175, which was passed in 2011, yet was not allocated any funding.! Institutionalize Grow Oregon and align training to regional industry sectors. Industry Conveners To more fully engage industry in shaping education and training. Currently groups are siloed and not well coordinated with each other. The group suggested:! A central portal (industry/talent council) that can convene industry specific groups such as the Oregon Metals Institute with the workforce and education partners in developing curriculum and training program for Oregon s metals industries. Robust Career Technical Education Career-technical education was viewed as an essential element to the talent and workforce infrastructure of the state. This groups specifically suggested:! A coordinated state strategy between public and private sector to fund career and technical education, and to expand apprenticeships beyond the current traditional industries.! As part of a career technical education strategy there should be a coordinated effort with industry and education to reach into high school and middle school to students and parents to inform them about career opportunities with these occupations. This is critical to reach the goals of the middle 40 in the Governor s 20/40/40 strategy. Workforce Incentives The group suggested that specific incentives could help to accelerate the state s workforce goals, including:! A tax incentive for Oregon businesses to hire recent Oregon graduates.! Restore and expand the TANF Jobs program.
Business Development Organizations This group of economic development organizations, chambers and local government representatives discussed how the regional resources for economic development could be better leveraged. Data-Driven Strategies Members of the group noted that they and others were missing comprehensive, strategic data and information on the region s economy along with period forums to discuss the implications of data to help understand market demands and know where to connect the dots among the region s economic opportunities. It was suggested that:! Business Oregon works with regional economic development organization to develop an annual assessment of regional economies, and host a work session around that the release of that data. Shared Recruitment Strategy The group agreed that there needs to be:! A more visible state-wide recruitment brand that also can be used by regional economic development organizations, along with a clear regional marketing that can be utilized by state groups. This branding should include business/economic assets as well as quality of life information.! Targets for recruitment and marketing should be data driven to understand who we are and be able to deliver on our reputation. Predictable Regulations There was a strong belief by the group that business depends on a predictable regulatory climate. It was suggested that:! Economic development organizations in the region work to identify a set of shared regulatory challenges and work through Regional Solutions to make them more consistent and predictable for the businesses. A Robust Entrepreneurial Ecosystem The Mid-Valley is missing the same level of entrepreneurial climate and ecosystem that is found in the South Valley and in the Portland metropolitan region. There is a perception that there is a gap in capital and other business development services for start-ups. This group suggested:! Business Oregon support a statewide mentor network with regional hubs of angel networks, accelerators and mentoring services.! Regional economic development groups develop a coordinated strategy for entrepreneurial development and access to capital.