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|Archives - May 2008|
|Thursday, May 01, 2008|
MADE IN OREGON
Companies find it pays to keep manufacturing local. Take that, China.
By Michelle V. Rafter
When Les de Asis shows a visitor the carbon dioxide lasers and computer-controlled machines in the factory of his Oregon City company, Benchmade Knife Co., he’s like a proud father showing off his kids.
De Asis and his wife Roberta started making pocket knives and hunting knives 17 years ago in a 2,000-square-foot space. Today, Benchmade’s 45,000-square-foot facility is bursting, with close to 90 machinists, assemblers and other factory workers producing high-end knives that sell for as much as $2,000. In the factory, state-of-the-art robots burn knife blades out of premium-grade stainless steel and titanium. Assemblers attach finished blades to knife handles and embellish them with accessories. Master sharpeners hone blade edges just so. Finish workers package knives in color-coded boxes: red for the least expensive up to gold for the most.
Benchmade could make knives in China. In fact, some low-end products are made there, though they comprise just 3% of sales. Instead, the family decided to keep the majority of its production in Oregon — a decision they say has been the key to their success.
There was a time when shipping production overseas seemed like the best answer for rising labor costs at home. But with oil prices driving up transportation costs, and prices for raw materials and labor rising in China, going offshore doesn’t seem like the end-all, be-all answer it once was. Businesses looking to keep their factories here — or bring them home again — can look to companies such as Benchmade for how it’s done.
In addition to maintaining tighter control over production, keeping factories in Oregon allows companies to quickly respond to changes in the marketplace and do a better job guarding proprietary information, say de Asis and other company owners. The “Made in the USA” label is a big boost at a time when U.S. consumers worry about lead-tainted products made overseas and when the weakening dollar is making American-made goods more attractive as exports.
Though wood products, computer and electronics manufacturers are suffering, job losses have been buffered by an upswing in food, metals and machinery factory jobs, according to a March report from the Oregon Employment Department. While they won’t reverse the declines completely, growth in those and smaller sub-sectors is expected to fortify and diversity manufacturing employment over the next 10 years, according to the report.
Scott Dawson, dean of Portland State University’s School of Business, agrees small pockets of manufacturing job growth are helping the state during current hard times. “It stands to reason we’ll have somewhat of a downturn,” he says. “But I’ve lived here most of my life and I don’t think we’ve ever weathered a downturn this well.”
SOME COMPANIES KEEP their factories in Oregon because they get financial incentives to stay. One is Triad Speakers, which makes high-end home entertainment systems. In 2004, Triad secured $216,000 in loans and grants from the Portland Development Commission to help finance a new production facility in Portland’s Airport Way urban renewal area, according to PDC spokeswoman Anne Mangan. In exchange, Triad committed to keep all 60 of its employees and add jobs, all in Portland. As of March, Triad’s workforce was up to 74 and wages for factory jobs have increased, says Larry Pexton, the company’s president.
“The program is quite well conceived and produced exactly the intended results: higher-paying manufacturing jobs,” says Pexton, who in mid-March was in China setting up a showroom that will sell Triad equipment.
The state also has programs to help keep factories here. Since 2002, the Oregon Economic and Community Development Department has awarded close to $2 million to more than 120 companies through Oregon Manufacturing Extension Partnership, an industry group that trains companies in lean manufacturing methods, says Fox, the OECDD business development officer. The 3-year-old Oregon Innovation Council, or Oregon Inc., is in the process of awarding $28.2 million in grants approved by the 2007 state Legislature to manufacturers and consortia working in emerging industries.
Industry groups are doing their part. Lake, with Warne Manufacturing, is head of the Oregon Manufacturing Workforce Strategy, a four-year initiative backed by $500,000 in state grants to help manufacturers train workers. The organization started a website called Oregon Manufacturing to share data on resources and funding for training workers and developing business plans. Private businesses have also teamed up with government agencies and community colleges on a project called Worksource Oregon to help train high school and community college students in the kind of modern manufacturing skills employers need.
Now de Asis is starting a second company to capitalize on expertise he’s developed in rapid prototyping and other 21st century manufacturing processes. “If we’re going to be world class,” he says, “we can sell that to other companies.”
Friday, June 05, 2015
As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.
Tuesday, May 26, 2015
BY LINDA BAKER
Spring rains are the bane of an Oregon cherry farmer’s existence. Even a few sprinkles can crack the fruit so badly it’s not worth picking. Science to the rescue: Researchers at Oregon State University have developed a spray-on film that cuts rain-related cracking in half, potentially saving a season’s crop. The coating, patented as SureSeal, is made from natural chemicals similar to those found in the skins of cherries: cellulose, palm oil-based wax and calcium.
Friday, May 15, 2015
BY KIM MOORE | RESEARCH EDITOR
The Portland Bureau of Transportation is seeking input from businesses on a $5.5 million initiative to create a network of biking, transit and pedestrian trails within Portland’s central city.
Wednesday, May 27, 2015
BY LINDA BAKER | EDITOR
More than 250 people turned out today for Oregon Business magazine’s seventh annual celebration of the 100 Best Green Companies to Work For in Oregon.
Tuesday, May 26, 2015
BY KIM MOORE
A conversation with Gene Pelham, CEO of Rogue Credit Union.
Tuesday, May 26, 2015
BY JACOB PALMER
Live, Work, Play: CEO of Gorilla Capital.
Friday, May 08, 2015
BY CHRIS NOBLE | PHOTOS BY JASON E. KAPLAN
Hagfish may not have evolved much over the last 300 million years, but their protein-heavy slime promises advances in super-materials.
|100 Best Green Workplaces in Oregon|
|The Green Paradox|
|Up in the Air|
|Credit Unions Perspective|
|Queen of Resilience|
|Did airlines collude to keep fares high?|
|Citigroup analyst thinks Puma should sell|
|OSU researchers examine warm-water mass|
|Appeals court rules against Apple|
|Microsoft to cut division, 1,200 jobs|
|Apple suppliers introduce 'Force Touch' to new iPhone|
|Uncertainty abound in Greece|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
3 Degrees Event Celebrates 5th Year Bringing Nonprofit and Business Professionals Together to Benefit Portland.
Bend energy leader brings passion for efficiency and renewable energy to the nonprofit.
Event in Forest Grove marks recognition of Global Food Safety Initiative Certification.