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|Articles - April 2012|
|Thursday, March 22, 2012|
Page 1 of 2
BY BRANDON SAWYER
From two-by-fours to semiconductors to frozen peas, Oregon has a storied history of making things to export out of state, bringing in much needed revenue and employing generations of Oregonians in family-wage jobs. But since the crash of timber industries in the 1980s and years of off-shoring mania by U.S. companies, the media has long reported that manufacturing is dying.
Reports of its death, however, are greatly exaggerated. Today, diverse industries are building on the state’s manufacturing legacy, taking advantage of cheap power, pristine water, rich natural resources and easy access to the Pacific Rim. In 2010, manufacturing’s 22% share of gross domestic product (GDP) made Oregon No. 2, behind Indiana, a jump from No. 18 in 2001. Looking ahead as global dynamics shift, the state could be poised for “on-shoring,” a return of manufacturing from abroad. By 2020, manufacturing jobs are projected to grow 15% in Oregon, as they decline 0.6% nationwide.
The picture isn’t all rosy. While health care and other service jobs expanded over the past 20 years, manufacturers have automated operations and increased efficiency. As a result, manufacturing represents a diminishing share of Oregon’s labor force, from 20% in 1990 to less than 13% in 2010.
Nevertheless, following the Great Recession, employment in a number of durable goods industries has bounced back, and the state actually added food and beverage jobs through the recession.
A surge in exports, especially high-tech and metal products, is driving that growth. Computer and electronic products comprised 79% of Oregon’s durable goods GDP in 2009, up from 50% in 1999. The sector added 3.7% more jobs in 2011, surpassing 36,000, by far the largest and best-paid group of manufacturing workers in the state. The Employment Department projects 14% more of these jobs this decade. Likewise, fabricated metal products, machinery and transportation equipment grew 7% and primary metals grew 4%. All are projected to grow more than 20% by 2020.
“[These] are good examples of Oregon manufacturing that can take advantage of exporting,” says Nick Beleiciks, an economist with the Oregon Employment Department. “They’re competing on a national and global scale.”
Even wood products manufacturing, as it crawls out of the real estate crater, is expected to add 14% more jobs by the end of the decade after losing 40% between 2001 and 2010. In doing so, it lost its place as second-largest manufacturing employer to food manufacturing, which grew jobs a remarkable 7.3% in the last decade.
Despite the rebound, jobs in manufacturing are still endangered. For example, computer and electronics employed nearly 50,000 in 2001, about 14,000 more than it does today. “This industry took big advantage of off-shoring,” says Beleiciks. With final assembly overseas there was “a huge impact on the number of people working so what they’re doing [here] now is really the high-end stuff.”
Technological improvements in food processing also impact jobs, as employers “can make more food with less people,” Beleiciks says.
Tuesday, August 19, 2014
BY TOM COX | OB BLOGGER
Tom Cox interviews Steve Balzac, author of "Organizational Psychology for Managers."
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Thursday, July 24, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.
Tuesday, August 26, 2014
BY JON BELL
Startup culture is all the rage. Is there a downside?
Wednesday, August 27, 2014
BY LINDA BAKER
Dr. Chong Fang isn’t God. But the assistant professor of chemistry at Oregon State University is getting closer to figuring out how he put everything together.
Wednesday, August 13, 2014
BY TOM COX | OB BLOGGER
When I say, “Your Employee is Always Right,” I do not mean “right about the facts,” but rather “right about how they feel” and “right about how they want to be led.”
Wednesday, August 27, 2014
BY KLINT FINLEY
Treehouse CEO Ryan Carson builds a 21st-century trade school.
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Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Lane Powell Shareholder William T. Patton has been appointed to the board of directors for Cascade AIDS Project, an organization that provides educational services and outreach to thousands of Oregonians living with HIV/AIDS.
Fifty-one Lane Powell lawyers were recently selected by their peers for inclusion in The Best Lawyers in America® (Best Lawyers) 2015; of those selected, 23 lawyers are from the Firm’s office in Portland, Oregon.
Barran Liebman is proud to announce that Andrew Schpak, a Partner of the firm, has been named Chair of the American Bar Association’s Young Lawyers Division for the 2014-2015 bar year.