Home Back Issues April 2012 Data dig: Is Oregon manufacturing really in decline?

Data dig: Is Oregon manufacturing really in decline?

| Print |  Email
Articles - April 2012
Thursday, March 22, 2012
Article Index
Data dig: Is Oregon manufacturing really in decline?
Page 2

BY BRANDON SAWYER

Click on any graph to view larger.
0412_DataDig_Numbers
0412_DataDig_Computers
0412_DataDig_Transportation
0412_DataDig_Food
0412_DataDig_Wood

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.



 

Comments   

 
Mel White
0 #1 VP of Marketing and Business DevelopmentMel White 2012-04-16 11:53:06
I couldn't agree more. I co-manage a trade show design/manufact uring company in Portland, Classic Exhibits, with distribution throughout North America. Yes, it's tough being a manufacturer in the USA, but not impossible. You find niches that importers ignore or can't respond to fast enough, you source raw materials domestically and internationally , you look for strong partners, and you nurture a "can-do" culture. Mostly, you treat your customers as "customers" and not adversaries. No one is getting rich, but keeping folks employed has its spiritual rewards.
Quote | Report to administrator
 
 
Scott R Schroeder
0 #2 Offshoring vs OutsourcingScott R Schroeder 2012-04-16 14:17:38
@Brandon, your leading paragraph uses the term "OUTSOURCING". If you were only refering to the migration of jobs outside of the States, your use of that term creates confusion. The more accurate term is "OFFSHORING". "OUTSOURCING" can be both onshore and/or offshore.

Good article otherwise.

I own a Contract Manufacturing company in Corvallis,Orego n that relys on outsourcing. So I am biased and sensitive to the all too often confusion caused by the misuse of these terms.
Quote | Report to administrator
 
 
Brandon Sawyer
+1 #3 UPDATEBrandon Sawyer 2012-04-30 21:31:48
The word “out-sourcing” has been replaced by the more accurate term, “off-shoring,” in the opening paragraph of this article.
Quote | Report to administrator
 

More Articles

Tech makes the world go round

Contributed Blogs
Thursday, March 20, 2014
03.20.14 thumb internetBY JASON NORRIS | GUEST BLOGGER

I don’t think anyone can (or should) remember what it was like to get things done without the internet. This milestone in technology has certainly benefited brick-and-mortar companies and subsequently launched a new era of businesses.


Read more...

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...

The more they change, the more they stay the same

March 2014
Tuesday, February 25, 2014
100-best-collageBY BRANDON SAWYER

The 100 Best Companies get more creative with perks and more generous with benefits; employees seek empowering relations with management and coworkers.


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...

Wheel man

March 2014
Tuesday, February 25, 2014
BY LINDA BAKER

Les Schwab has put a premium on customer service since 1952, when legendary namesake Les Schwab founded the company with one store in Prineville. (Schwab died in 2007.) But if the corporate principles remain essentially the same, the world around this iconic Oregon business has changed dramatically.


Read more...

Barrister bands

March 2014
Tuesday, February 25, 2014
IMG 4691BY LINDA BAKER

An intellectual property attorney by day, 48-year-old Stoll Berne attorney Tim DeJong is a singer and guitarist by night.


Read more...

The solution to youth unemployment

News
Thursday, February 27, 2014
02.27.14 Thumbnail TeenworkBY ERIC FRUITS

Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS