(Photo courtesy of COEC)
On Wednesday, September 3, Central Oregon Employer’s Council (COEC) facilitated an insightful dialogue between industry professionals that covered a vast array of factors that affect local industries.
The panelists invited were; Katy Brooks, economic development officer with the City of Bend; Matt Swafford, CFO of St. Charles Health System; Paul Evers, co-founder of Crux Fermentation Project and Cultivate Bend, and NAI commercial real estate broker; Michael Hancock, executive director of Bethlehem Inn; and Steve Buettner, CEO and founder of Sunwest Builders.
Buettner talked about how Bend has come so far from the days of the late 80s but has endured several difficult business cycles along the way. Sunwest recently became an Employee Stock Ownership Plan (ESOP) and he discussed the pros and cons of ESOPs. Some of the deciding factors for him were the desire to reward long-time employees, and to retain local presence and decision-making of the company in Central Oregon.
When asked about the impact of tariffs, Buettner said he feels they are having a delayed effect but that the impact still may be coming. He said the current implication is that earlier in the year, there was indecision in starting on projects because of cost overruns, and more recently those potential costs are being managed more by their clients with contingencies than in the bid process. Some projects are still being delayed because the margins in markets like Bend are so thin that any significant overruns cause a project to lose viability.
At St. Charles, Swafford’s diverse role and skillset provides a broad view for him to speak on a variety of subjects.
As our largest employer in Central Oregon, St. Charles has a strong direct and indirect impact on our economy. They have plans to grow 40 percent over the next five years with an expansion of types of services. St. Charles has put a lot of effort on employee retention, reducing annual turnover from 22 percent down to four percent. A key take-away from Swafford’s presentation was the impact of both state regulations and federal funding. New state regulations that require a maximum of four patients per nurse have increased costs by $21 million, and federal funding reductions of both Medicare and Medicaid, which represent 77 percent of St. Charles’ revenue, will undoubtedly have a serious impact.
These topics and more were discussed, including a brief economic update from two local economists, Josh Lerner of SGH Macro, and Damon Runberg of Business Oregon. Some of their observations included the following:
Tariffs recently went to 18 percent from the previous 2.5 percent. As Buettner mentioned during the panel, they feel that the impact has been muted thus far but that it will be coming. “The immediate impact is indecision by organizations on big projects,” he said.
On the labor front, both the State of Oregon and Central Oregon are starting to align more closely with the national averages. Both are seeing unemployment rates increase and unemployed taking longer to find employment. Don mentioned a current trend of “job hugging” or employees clinging to their jobs, that both economists have noticed. Most economists agree that the Federal Reserve will lower interest rates by ¼% later this month when they meet.
These meetings provide professionals a chance to learn more about the industries around them, the impacts of national factors, and a great chance to connect and network. According to a statement from COEC, “Our mission is to offer high-quality, low-cost programs that address the real needs of employers in our region. Each year, we host four events, including our annual Bureau of Labor and Industries (BOLI) seminar in November and three additional programs on timely topics such as leadership, employee engagement, compensation, and executive hot topics. These programs are designed to equip employers with practical knowledge while creating opportunities to connect with peers and share insights. Our role in the community is to be both a resource and a facilitator. By bringing employers together, we help businesses stay informed, navigate workforce challenges, and build stronger relationships that benefit the entire region. Events like ours are important because they not only deliver valuable learning but also foster collaboration and support a thriving economy here in Central Oregon.”
