The end is near, the end that is of the year 2013. For the first time in many years, we can say it was a positive year for many local businesses. At the very least we can say it was a better year. And to that end we now launch into 2014 with optimism.
Central Oregon’s economy seems to be getting back on track. Our region is a draw to tourists, entrepreneurs, venture capitalists…and data centers. Our recreational assets, water, beer quality of life and innovation put us on the map for economic opportunities.
Some significant bright spots appeared that bode well for the region’s economic future:
• The region’s tourism industry continues to blossom. The recent approval of an increase in the room tax for visitors will enhance our tourism potential through marketing Bend and the Deschutes County Expo Center. According to Doug La Place of Visit Bend: “Following two consecutive record years for Bend’s tourism industry, our destination will have to hit on all cylinders to continue the growth through 2014. It will undoubtedly be an exciting year for Bend’s tourism stakeholders. In addition to a continued focus on in-state travelers, 2014 will introduce an expanded winter marketing effort, and the initiation of the Bend Cultural Tourism Fund. Both of these new programs will help ensure long term growth for Bend’s tourism industry.
• Bend’s approval of an increase in room tax will provide a significant benefit to the arts community and its economic impact via the new Bend Cultural Tourism Fund. Our rich cultural assets are cultivators of our economic prospects enticing entrepreneurs to move here.• Home sales in Central Oregon are particularly strong as the housing market in the area rebounds. New housing developments include the Miller Family and West Bend Property Company’s vision for 50 homesites on Bend’s westside.
• Bend is ranked nationally as a popular startup hub for tech businesses. The Bend Venture Conference, which showcases Bend’s growing entrepreneurial impact, FoundersPad, the Big Bend Theory competition and Cascade Angels Fund are innovative initiatives that drive economic growth and prosperity in Central Oregon by creating opportunities for investors and businesses.
• Redmond gets high marks for paving the way for development, resolving zoning issues and mitigating important site or expansion matters. Redmond Economic Development Inc., (REDI) is looking at soon-to-be newly zoned 465 acres of industrial land that will include parcels from 30-50 acres for attracting larger scale industrial and manufacturing companies.
• Madras and Prineville continue to inspire the region with resourceful attitudes despite the high unemployment in those communities. Madras is seeing huge potential in its unlimited water resources and access from it growing airport. Prineville is buoyed by a new hospital and clinic and the continued operation of its rail line and growth of Contact Industries and ICP Northwest.
• Regional resorts that struggled during the recession are seemingly in an expansion mode with new buildings underway at Tetherow, Pronghorn and Black Butte Ranch.
• With a steady increase over the years in passenger flights and the upgrades and expansion of facilities the Redmond Airport has positioned itself to be the central hub for transportation in the region. The economic power is significant to the success of numerous businesses in Central Oregon that travel around the country and beyond for commerce purposes.
• A burgeoning aviation industry coupled with smaller airports in Bend, Prineville, Madras, Sisters and Sunriver are serving as not only transportation hubs for smaller aviation service but as economic development opportunities. Companies like Butler Aircraft Services, CIES, Inc., Epic Air, Erickson Aero Tanker (Aero Air), Lancair International, Leading Edge Aviation, PCC Schlosser, Professional Air and RDD Enterprises/Northstar Flight Lab are forming the catalyst for an aviation-based industry cluster in the region.
• The manufacturing climate in Central Oregon is showing encouraging signs including CR Fabrication with an expanded manufacturing facility, Light Elegance & McConnell Labs producing innovative products, Kombucha Mama expanding their brewery and tasting room and Bright Wood Quality Millwork that has added 100 jobs this year. BasX Solutions just purchased a 100,000 square foot facility in Redmond that will add 100+ jobs in the community. Roger Lee of Economic Development of Central Oregon says, “The most exciting thing I see happening in the manufacturing sector in our region is that we don’t just have a handful of large companies rebounding but dozens of small and mid-sized businesses that are adding jobs, investing capital and gaining market share in their respective industries.”
• The craft brew industry is not only alive and well with 26 plus micro-breweries and cider house prospering but making the region famous for its brews.
• Facebook and Apple continue cutting edge technology in their massive data centers in Prineville putting the sleepy town on the map around the world and helping the local economy.
• Perhaps one of the most exciting banners of 2013 is the facilitation of a four year university and the OSU-Cascades new campus underway on Bend’s westside. University leaders are working with the City of Bend and the Campus Expansion Advisory Committee to outline a master planning process and engage stakeholders from throughout the community in order to develop a university campus that aligns with the educational, economic and cultural needs of the region.
Still, we have a lot of work to do. Although job growth accelerated this year the unemployment rate is not acceptable in all three counties, our income levels and rate of homeless are on the wrong side of national averages. As we focus on strategies to grow the economy, we need to find new initiatives to help everyone in our communities and to ensure that businesses have access to capital and qualified employees in order to prosper.We close the year giving thanks that we live in a community with great potential and recognize the business leaders who are both risk takers and innovators, the economic development professionals who are purveyors of our region’s potential and the nonprofits and volunteers who play a vital role in improving the quality of life we enjoy.
We wish you a prosperous and generous New Year…
NOTES ON THE U.S. ECONOMY New statistics reveal U.S. economy is still growing despite the government shutdown in October. The American economies total deficit has fallen from 9.2 percent in 2009 all the way down to 4.1 percent in 2013.Certainly some good news for the U.S. economy.The United States has abundant natural resources, a well-developed infrastructure, and high productivity. It has the world’s sixth-highest per capita GDP (PPP).
The U.S. is the world’s third-largest producer of oil and second-largest producer of natural gas. It is the second-largest trading nation in the world behind China. It has been the world’s largest national economy (not including colonial empires) since at least the 1890s.Total public and private debt was $50.2 trillion at the end of the first quarter of 2010, or 3.5 times GDP.
In October 2013, the proportion of public debt was about 1.07 times the GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillionThe U.S. Energy Information Administration is reporting that average gas prices for the Thanksgiving holiday are at their lowest level in three years. The price of gasoline is lower than three months ago, 14 cents less than a year ago.
