a jobs agenda for jackson county, oregon 2011-2015

8/3/2019 A Jobs Agenda for Jackson County, Oregon 2011-2015

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A Local Jobs Agendafor Jackson County, Oregon2010



Local Jobs Agenda

When we say that fortifying the local economy is the best

job-development strategy for Jackson County, what do wemean? Where will these jobs come from, and what kind of incomes will they generate?

The economic uncertainties ahead make exact answersimpossible. But our campaign set out to research the local

jobs landscape, conferring with business owners, educators,Employment Division analysts, and other knowledgeableprofessionals to identify sectors that offer exceptionalopportunities for putting Jackson County residents to work inquality jobs.

Note: The purpose of the Local Jobs Agenda is to identify

some effective roles county government could play in thenear future, and to stimulate ideas and insights frominterested county residents (we welcome your input [email protected]). County government does nothave the resources to undertake all of the tasks describedhere. Highest priority should be given to tasks that:

• Leverage maximum effort and resources from otherpartners with minimum investment of taxpayer dollars,

that is, offer cost-effective collaboration.

• Do not compete directly with private-sector businessesand projects, that is, fill critical holes that the for-profitsector is not addressing, and...

Jeff Golden for County Commissioner 2



Local Jobs Agenda

• Seem to offer the clearest opportunities for creatingquality jobs.




Local Jobs Agenda

Table of Contents

Table of Contents .................................................................................................................4I. Executive Summary .....................................................................................................5II. Guiding Principles of Our Job-Creation Strategy ....................................................... 6III. Low-Hanging Fruit: Seven Clusters .......................................................................... 8

Forestry ........................................................................................................................ 8Food and Agriculture ................................................................................................... 9Energy Conservation ..................................................................................................12Green Construction .................................................................................................... 14Electric and Specialty Vehicle Manufacturing .......................................................... 16

Internet Retailing and Infrastructure ..........................................................................18Business Incubation and Financing........................................................................... 20

IV. Buy-Local County Government Procurement ......................................................... 23V. Methodology............................................................................................................. 25

References: .................................................................................................................26




Local Jobs Agenda

II. Guiding Principles of Our Job-Creation Strategy

By following three simple principles and targeting seven key clusters (comprising 10% of our workforce in Jackson County), county government can efficiently and cost-effectively facilitate economic prosperity.

(1.) Use Lean Government Policy

Assist diverse stakeholders in creating their own solutions

County government NEED NOT resort to the usual, costly instruments of municipal policy such as taxes, deficits, bond issues, and subsidies (especially since they often benefit non-local businesses!) County government can facilitate cooperation andcollaboration among multiple stakeholders to find solutions that they could not findindividually. This is a budget-neutral policy approach.

With very limited budgetary resources and direct economic instruments at its disposal,

county government’s influence on the economy in our region must be lean andintelligent. The thrust of our lean approach is to spearhead communications, networks,working committees, associations, and other forums in which diverse stakeholders cometogether and jointly find solutions to common challenges and objectives.

This “lean government” method has been proven highly effective by other regional andlocal governments in the US, Europe and Asia. It is particularly useful when an economyneeds to adjust to a structural change (see for example, Wolfram Elsner).

(2.) Strengthen Locally Owned Enterprises

The bedrock and integrity of any region’s economy

Strong economies are built on networks of local entrepreneurs of locally-owned businesses with access to sound, local financial institutions that channel local savings intolocal investments. (See for example, Michael Shuman, Jane Jacobs, and Michael Spenceet al)

The essentials of a strong local economy for the Rogue Valley are:1. Locally owned companies. Local ownership of business produces the greatest

aggregate income for a community than other pathways of economic developmentsuch as recruiting large corporations to our area.

2. Local finance and investment institutions. Local community banks and creditunions have proven to be the cornerstone of healthy economic growth of a region.They channel local savings to local needs. They help insure that local businessesretain local ownership. Further financial innovations can be introduced such asmicrofinance, revolving loans, venture start up coalitions, CommunityDevelopment Foundation Corporations and non-profit originated grants, and localinvestment funds.




Local Jobs Agenda

3. Import substitution. Incrementally finding local replacements to goods andservices that have traditionally been imported is a way to capture and retain profits and value add. Energy, agriculture, finance, specialty manufacturing offer exceptional opportunities in this connection.

4. Strong exports and traded sector. This generates our capacity to buy more on the

international market. We excel in timber, and value-added wood products. Andcan do so in some of the seven emerging clusters we’ve identified.5. Buy Local. Households, businesses, and government bodies in our region can

strengthen the local economy by patronizing locally owned businesses.

(3.) Focus on Industry Clusters

Maximize synergy

Clusters are geographic concentrations of interconnected companies, specializedsuppliers, service providers, firms in related industries, and associated institutions (for example, universities, trade associations, and government agencies) in particular fields

that compete but also cooperate. The wine industry in Napa & Sonoma Counties, themotion picture industry in Los Angeles, and the forestry and wood products industry inSouthern Oregon are examples of clusters. (See Michael Porter, Rebecca Reid et al)

The health and success of any individual company is dependent on the health of thelarger, encompassing cluster in which it operates. Efficiencies and synergies are attainedwhen businesses draw from a common pool of skilled labor, common suppliers, commonservice providers, trade associations and non profits, and common infrastructure.

County government can foster economic development in our region through strategicsupport of existing and emerging clusters. Targeting clusters leverages government

efforts. The role for government is often the convening of diverse stakeholders (such ascompeting enterprises, public sector agencies, non-profits and university officials) so thatthey may cooperate enough to find solutions to commonly held objectives.

Creating the “conditions for cooperation” within strategic clusters is a cost-effective, leanmethod by which the county government can cultivate regional economic health. Notaxes, subsidies, or bond issues are necessary. Government can be very effective inremoving regulatory, communications or other obstacles that private companies may not be able to achieve on their own.




Local Jobs Agenda

III. Low-Hanging Fruit: Seven Clusters

Forestry

Employment record and projection.

Forestry Jobs

Jack son County

941

1166

12691327

1169

13601421

1483

0

200

400

600

800

1000

1200

1400

1600

2000 2002 2004 2006 2008 2010 2012 2014 2016

#

o f J o b s

Source: BLS; 2011-2015 Granada Research estimate

Potential county government initiatives to stimulate job-creation in Forestry:

1) Develop small-diameter timber forestry through public-private collaborativeefforts. The Small Diameter Log Collaborative developed among variousstakeholders in recent years has already created an effective model.

2) Assist private sector and non-profit groups in forest-thinning programs thatharvest secondary wood materials for biofuel development, along the lines of projects underway in the Butte Falls and Applegate areas.

3) Advance Jackson County’s potential to become a leading-edge center of forestry, forest-ecosystem services and biofuel science and technology. The predominance of forest and the forestry/wood products industry in JacksonCounty makes our region a worldwide bellwether for the science of sustainable and intelligent forest-products and ecosystem-servicesdevelopment and management. We have the opportunity to be a leading-edgescientific center for forest-ecosystem services and woody material (including biofuel) products and industry Potential partners include OSU, the U.S. ForestServices Forest Products Laboratory and non-governmental organizationssuch as the National Center for Conservation Science and Policy.




Local Jobs Agenda

Food and Agriculture


Food & Agriculture

Jackson County

1846 18181945

25632406

32133424

3634

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2002 2004 2006 2008 2010 2012 2014 2016

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o f J o b s


Agriculture and food products compose one of the top four clusters in the valley.Between farming, wine growing, food and beverage manufacturing, and allied supportservices, this sector employs close to 3,000 people. Companies in this sector includeHarry and David, Rising Sun Farms, Whistling Duck Farms, Roxy Anny Winery,

Weisingers Winery, Amy’s Kitchen, Dagoba, the Rogue Creamery, and many others.

Recent years have seen significant diversification of agricultural products from thedominance of (primarily pear) orchards to vineyards, food & beverage makers, and awhole range of seasonal fruits and vegetables being grown for local consumption.

It is good that the trend of diversification continue in crop and animal farming, as well asfood processing. This will help our region boost exports and reduce imports. Not onlywill Jackson County’s economy improve its ‘trade balance’ with the rest of the world, itwill enhance the security of our food supply in the face of the possible effects of foodcontaminations, rising transport costs, and volatility in weather and economic conditions.

A strong agriculture and food cluster in our Valley contributes to other clusters of Internet Retailing and Tourism, in addition to furthering the local beauty and desirabilityof living here in the Valley.

We want to take advantage of the many synergies in the farm and food processingcluster:

• Farms and enterprises in this sector share a similar labor pool.




Local Jobs Agenda

• They use similar distribution and sales networks.

• Many use the Internet as a strategic sales and marketing channel.

• They may use similar processing technologies and share a common ground of innovations.

• They collaborate through marketing programs such as THRIVE, Taste of

Ashland, and regional farm and wine tours.• State and regional programs, including OSU, assist further development of the

cluster by helping to develop niche products, farmer assistance and marketingefforts.

Potential county government initiatives to stimulate job-creation in Food and

Agriculture:

1. Convene a Food Policy task force composed of food producers & cooperatives(farms, wineries, food makers, distributors, service providers to agriculture andhome gardening), non-profits (THRIVE, Friends of Family Farmers), OSU, and

food-security groups (churches, Rotary First Harvest, Food Bank, Master Gardeners) in order to:

o Create a long-term strategy for a regional food system, including a

quantitative goal for enhancing food self-sufficiency (e.g., an increase inthe percentage of our food supply that is locally produced from the current2% (+/-) to 20% in five years).

o Review/revise county ordinances, zoning, and regulatory issues to

minimize barriers to local food production for local consumption (e.g.allowing food stands for individual farms, easing composting ordinancesregarding livestock processing and restaurant-sourced composting)

o Connect those aspiring to grow food with suitable idle land parcels in

public or private ownership.

2. Facilitate the various private-sector, non-profits, educational and other food-minded groups in Jackson County to come together to create a robustinfrastructure of a locally-owned and directed regional food system. Enhance theability of local farms, livestock growers, and food makers to sell their productsdirectly to local restaurants, food stores and households. Following the guidelinesof the Agricultural Reclamation Act, the County could play a role in helping toestablish:

• Meat Slaughter & Processing Facilities. This would enable local livestock

growers to sell product directly to local restaurants and markets. Not only will jobs be created in this facility, but a multiplied boost to local incomes will berealized as greater dollar-value added will be kept circulating within thecounty.

• Transportation & Distribution Centers. Local distributors can bringlocally-grown farm produce to restaurants and stores, as well as recyclecompost from restaurants. Larger regional distributors cannot provide themicro responsiveness in logistics that locals can. By assisting locally owned




Local Jobs Agenda

operations in this critical, collectively used function, we create jobs andmultiply incomes in the county.

• Community Kitchens and Microprocessing Facilities. With localcooperatively owned and operated facilities to make food products, smallfarms and food makers will now have “industrial strength” and certified

facilities to make products in small volumes that they couldn’t do on their own.

• Grain Processing & Storage Facilities. Shared, cooperatively owned andoperated facilities for grain related processing and food product storage ingeneral, will assist local farms and food makers to be economically viable.

• Farmers Markets. Responding to the needs of existing Farmers Markets inMedford and Ashland will help their participants be more successful.

3. Direct all county government functions that involve purchasing food and foodservices to give top priority in buying from local farmers, local wineries, localfood makers, and allied food-service providers that are locally owned and

operated.

4. Encourage the various rehabilitation centers in the County, including County Jail,Veteran’s Affairs Domiciliary, Mental Health facilities, and other non- profit/foundation sponsored facilities to incorporate food growing and preparationon premises as part of rehabilitation programs. Encourage these institutions to purchase food from local growers.

5. Advocate to other governmental jurisdictions and trade groups on behalf of Jackson County food and agriculture “exporters.” Encourage local farms and foodmakers to use regional Internet retailing systems such as Rogue Valley Local

Foods and Food Hub.




Local Jobs Agenda

Energy Conservation


Energy Conservation

Jackson County

136

300

531 558 535

826

1345

1712

0

200

400

600

800

1000

1200

1400

1600

1800

2000 2002 2004 2006 2008 2010 2012 2014 2016

#

o f J o b s


Continued effort in the Rogue Valley in making our buildings and lifestyles more energyefficient, as well as developing and using new and alternative energy sources, willincrease the security of both our economy and our energy systems.

By providing technical training and certification services, we believe that much of thiswork will go to our areas’ building contractors, electricians, plumbers, HVAC andspecialty contractors, architects, engineering firms, building inspectors, landscapearchitects, and retailers of building and garden supplies. (See chart above)

Potential county government initiatives to stimulate job-creation in Energy

Conservation:

1. Promote a collaborative strategy to train/retrain our local workforce in energyconservation technical and professional skills. Assist collaborative efforts amonglocal educational institutions (RCC, SOU, OIT and OSU); professional societies,labor unions and trade associations (such as International Brotherhood of Electrical Workers, American Institute of Architects, Oregon Solar EnergyIndustries Association), and non-profits (Energy Trust of Oregon, Green BuildingCouncil, North American Board of Certified Energy Practitioners) in creatinglocal curriculum, training and certification programs for:

• Solar panel, solar thermal system installers

• Building contractors and inspectors




Local Jobs Agenda

• Energy management technicians and engineers

• Weatherization and structural retrofit work

• Renewable energy technicians and engineers such as biomass/biofuel power generation, hydroelectric power generation and wind-power generation.

2. Complete retrofits to make all county operated buildings and facilities energy-efficient. Employ out-of-county contractors and consultants only when absolutelynecessary and only paired with a local contractor/consultant as a joint-venture partner. Mandate such foreign/local joint ventures to contain explicit technology-transfer and training agreements in the project-venture contract. The objectivehere is to bring energy expertise to our region and make it indigenous to our workforce and construction firms.

3. Have all county buildings subscribe to alternative-energy sources anddevelopment programs such as Blue Sky.

4. Lobby and publicize Federal and State programs (such as Oregon’s Green JobsCouncil and Federal dollars for weatherization) that provide funds and/or taxcredits for weatherization and energy efficiency measures. For more detail, see:http://rvcog.org/e_link/Summer_2010_RVCOG_E-Link_FINAL.pdf

5. County government can help facilitate:

• Efforts to share best practices, develop training and curricula, and to assistin public outreach in the local construction and retrofit industries across allconstruction areas – residential, commercial, industrial and institutional.

• Energy efficiency in local manufacturers including energy assessment,design for energy efficiency, recycling and material deconstruction, lean production best practices consortia.

• New business incubation in:

• Agriculture and forestry industries to develop biomass energysources; and

• Specialty manufacturing in development of energy-efficiencytechnologies such as electric motors, vehicles and subassemblies; solar

panels; and electronic components used for energy efficient machinery.

… See Business Incubation and Financing section below.


http://rvcog.org/e_link/Summer_2010_RVCOG_E-Link_FINAL.pdf

http://rvcog.org/e_link/Summer_2010_RVCOG_E-Link_FINAL.pdf



Local Jobs Agenda

Green Construction


Construction

Jackson County

3641

4125

52015537

3202

4501 4555 4608

0

1000

2000

3000

4000

5000

6000

2000 2002 2004 2006 2008 2010 2012 2014 2016

# o

f J o b s


The Rogue Valley construction industry has been hit hard by the housing crisis andeconomic downturn. But we know that, long run, people are moving to our area frommore congested areas to our south and north. Construction demand will return to theRogue Valley.

We can use this lull in activity to retrain and retool. Much is to be learned in making our construction trades more energy efficient and ecologically sustainable.

Potential county government initiatives to stimulate job-creation in Green

Construction:

In addition to the energy-conservation measures mentioned in the previous section, theCounty Government can pursue several efforts to promote new jobs in construction.

1. Create a Green Building Institute and School to foster the teaching and use of

green building techniques and materials. Adopt an unused industrial facility inWhite City to house the Institute. This would be like a specialized businessincubator that helps local builders learn green building techniques andcertification paths.

2. Assist the creation of a green building trade association or invite existingassociation, such as Earth Advantage, to enlist private-sector members in JacksonCounty.




Local Jobs Agenda

3. Convene:

• Educational institutions with sustainable builders, product designers,manufacturers, marketers, and others to create a best practices and/or research

& development center to create and share in new products and buildingtechniques. The Rogue Valley has the potential to become a nationally-recognized center of green building and the cluster offers more and moreniche opportunities and cooperative savings on such functions asadministration, marketing and other services.

• Private-sector construction contractors with RCC officials to developtraining and certification programs and curricula in green building.

• Private-sector contractors, architects, trade associations, non-profits andlocal city building departments to develop a comprehensive energy and green-

construction strategy for the County.

4. Focus all retrofits of county operated buildings to local contractors. Work withlocal contractors, architects, engineers, and inspectors to create a best practicesforum and strategy document for County facilities.

5. Review building codes and permitting processes with an eye towards prioritizinggreen-building projects.




Local Jobs Agenda

Electric and Specialty Vehicle Manufacturing


Electric & Specialty Vehicle Manufacturing

Jackson County

10961029

980

1104

797844.3 860

896

0

200

400

600

800

1000

1200

2000 2002 2004 2006 2008 2010 2012 2014 2016

# o

f J o b s

Source: BLS; 2011-2015 Granada Res earch es timate

Boats, helicopters, electric automobiles: the Rogue Valley has specialized manufacturersin all three categories. In fact, Southern Oregon is a global player in heavy lift helicopter

production, with multiple world-class manufacturers located here, three with major operations in Jackson County (Croman, Erickson and Superior), supplying 90% of theworld market (according to Oregon Employment Dept.). Jackson County also has astrong presence in boat manufacturing which contributes significantly to our regionalexport earnings. More recently, three new enterprises have located here that aremanufacturing electric cars and vehicles.

While these modes and vehicles of transportation differ, they form a cluster and have thefollowing characteristics. Their production draws from

• a common base of engineering and manufacturing expertise and technical skills;

• an array of common support manufacturing & services such as local electronic

components, printed circuit boards, cable assemblies, welding, fabricated metal parts, machining services, motor and subassembly manufacturing; and,

• similar marketing, distribution and supply-chain management needs and services.

Furthermore, these companies:

• belong to similar trade and professional associations.

• have similar manufacturing processes, and individual companies can help eachother by openly sharing best-practices techniques.




Local Jobs Agenda

• sometimes span continents in their operations and therefore extensively useInternet and telecom services.

• benefit from similar kinds of technological innovations.

This specialty and vehicle manufacturing cluster generates higher than average wages,

generates export “traded-sector” earnings for the local economy, and is a genuinefoundation for economic health to our region. The base of service providers to thiscluster, along with the base of specialized technical skills and expertise of the workforce, provides a strong foundation for expansion into related industries and growthopportunities, such as in alternative energy systems and the emerging area of electricvehicles and transportation systems.

Potential county initiatives to stimulate job-creation in Electric and Specialty

Vehicle Manufacturing:

County government can promote this cluster, helping to facilitate stakeholders in

establishing initiatives, associations, conventions, marketing bodies, etc. that serve their common interests.

• Convene and assist private sector companies and RCC and SOU to developtraining programs and curriculum to prepare technical, engineering andmanagerial workforce for employers in this cluster:

For example, recently the seven heavy lift helicopter manufacturers of Southern Oregon, worked cooperatively with RCC and SOU to developcurricula to insure a steady source of trained technical graduates that willserve the cluster’s needs for growth. Some of the skills now delivered

include CNC and CAD trained graduates for the design and manufacturingsystems in these companies. This is the kind of collaboration that thecounty government can help facilitate.

• County government can continue to lobby on behalf of this cluster, seekingFederal loan guarantees and other forms of financing for the elective vehicleenterprises. This was instrumental in the scaling up of electric vehicle start upsTesla Motors and Fisker. Tesla, alone, got a $465 million loan guarantee from theDepartment of Energy which further attracted investment funds to the company.




Local Jobs Agenda

Internet Retailing and Infrastructure


Internet Retailing & Infrastructure

Jackson County

0

2755

36203453

2750

3,192 3,251 3,310

0

500

1000

1500

2000

2500

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2000 2002 2004 2006 2008 2010 2012 2014 2016

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o f J o b s


Internet retailing by Rogue Valley businesses is ten times the national average on a per capita basis.

The region boasts fifty Web retailers, employing 2,600 people, and spans a diversity of products, including motorcycle parts, musical instruments, maps, fruit & gift products,

yoga supplies, hats, water-filtration devices, ergonomic furniture, clothing and manyothers.

Additionally, the Rogue Valley has an exceptionally high percentage of professionals – from accountants, to software designers, to electric car designers – who work bytelecommuting from this region for clients and employers around the country and world.They are attracted to our local beauty and less-congested region, yet earn and bringglobally competitive incomes to this region. Forestry and other rural contractors use theInternet to bid on projects.

Telecommuting professionals, Internet retailers and home-cottage industry entrepreneurs

require a robust telecommunications platform composed of widespread broadband access,a rich variety of ISP and network service providers, Web and software designers andtechnicians. Internet-based occupations, in both goods and services, are growing rapidlyand are high income earners for our county. And the Internet has become critical to thesuccess and prosperity of rural-based businesses.




Local Jobs Agenda

Potential county initiatives to stimulate job-creation in Internet Retailing and

Infrastructure:

1. Wise stewardship and build-out of Internet infrastructure (such as rural broadbandand the encouragement of local private sector firms in processing and server

facilities and applications). The County can work with private sector service providers to build strong rural broadband, possibly metro area wifi, and other robust features of a communications infrastructure.

2. Lobby for State and Federal funds for building a robust county-wide Internetinfrastructure. It will serve as the foundation for: cottage industry e-commerce,distance learning, and community-based ecosystem and forestry management.

3. Support local efforts in business incubation and venture financing to cultivate‘locally grown’ enterprises in network and software technology. (see Business Incubation and Financing below, for more detail)

4. Educate and facilitate local businesses in Internet marketing. Mobilize consultantsin Web design and development, hosting service providers, and others to assistlocal business to strengthen their presence on the Internet. Support the creation of a regional trade association for Southern Oregon Internet Retailers so thatmembers can share best practices and lobby for common interests.

5. Promote local and regional Internet directories of local businesses and farms.Educate and facilitate local businesses to join local and inter-regional e-commerce portals that promote local Southern Oregon businesses. These include suchexisting groups as The Northwest Connectory/Business Oregon Website, FoodHub, Rogue Valley Local Foods, Shop Dragon, Web Spirit.

6. Work with local educational institutions in developing curricula and workforcetraining in information and communication technology (ICT) technical skills suchas: web design, web hosting, software development, wireless and handheldtechnologies, specialized web services such as 3-D photography and simulation,etc.

7. Encouragement / support for trade association or professional society toencourage exchange of information within this niche and/or potential economiesof scale, efficiencies.

8. Work with existing State and Federal government agencies, private sector information providers, and the Jackson County Library System with SOU tocreate an integrated online information service targeting Jackson Countyeconomic data and resources.




Local Jobs Agenda

Business Incubation and Financing.

There is already an important local, private-sector leader that is establishing a businessincubator in Jackson County. It is called “Sustainable Valley.” County Government canand must support this initiative.

Jobs growth projected: 300+ family-wage jobs.

Sustainable Valley is a public-private partnership to help the local region seizeopportunities created by sustainability. Working closely with established economicdevelopment organizations (SOREDI), the County Government, and local private businesses, Sustainable Valley is a Business Accelerator designed to help innovative,sustainable technology startup companies grow and succeed. Its goal is to accomplish this

by providing hands-on support, including office space and services, helping get start-ups“investment ready,” connecting companies to interested investors, and strengthening the branding of Southern Oregon as an attractive place for sustainable businesses to launchand grow.

The Sustainable Valley idea is modeled after similar ventures in Sunnyvale, Calif. andSonoma County, Calif. For further details, see:http://www.sustainablebusinessoregon.com/articles/2010/07/jackson_county_makes_a_play_for_sustainble_business.html?ana=sbo

The kinds of businesses that would be courted and supported would have an emphasis on

clean technology such as:• solar,

• electric vehicles,

• biomass,

• valued-added food processing,

• environmental technology and

• energy services.

Examples of those kinds of businesses already operating in the Rogue Valley includeAmy's Kitchen, Dagoba, Brammo, Barefoot Motors, Summit Wood Products, ForestEnergy Group, Rogue Valley Micro Devices, Upwind Solutions, Plexis and Sky

Research.

According to its principals, a business incubator/accelerator program in the Rogue Valleycan in a five-year period help launch 20-30 new and innovative companies, which in turnwill create 300 to 500 family wage jobs. These jobs, could command salaries of $40,000 per year or more. Funding will come from private-sector sources. There is no liability toCounty taxpayers for these enterprises and jobs created by them.


http://www.sustainablebusinessoregon.com/articles/2010/07/jackson_county_makes_a_play_for_sustainble_business.html?ana=sbo






Local Jobs Agenda

Critical to the success of a business incubator such as Sustainable Valley will be theavailability of funding for the new businesses that are created. Funding sources can varyfrom purely private financing to Community Development Foundation grants to Statedevelopment agency revolving loans to innovative new vehicles such as microcredit.Developments in Jackson County that are already underway include the Jefferson

Grapevine and the Resiliency Fund, both looking to finance local enterprises insustainable and emerging technologies.

Potential county initiatives to stimulate job-creation in Business Incubation:

1. Fulfill proposed investment of $50,000 by Jackson County Government in theSustainable Valley initiative toward an initial six-month budget of $180,000 inorder to yield the following deliverables:

2. Facilitate all efforts to create local investment mechanisms to allow private sector groups and citizens to invest in local businesses. Such efforts include: SOREDI’s

Jefferson Grapevine, the Jackson County Resiliency Fund, Oregon CommunityFund and other Community Development Foundation Corporations, the OregonEnterprise Fund, microfinance, and private equity groups. This effort can alsoinclude spurring local banks to invest in local businesses; lobbying Federal bank regulatory bodies to better assist and empower community and regional banks andsavings and loans; lobbying Federal financial regulatory bodies to easerestrictions on ‘accredited investor’ requirements to allow the average citizen toinvest in local companies; outreach and lobby for State, Federal and private-sector grants bodies; and supporting firms to offer employee stock ownership plans(ESOP), helping groups use cooperative structures for enterprises, and makingarrangements to share equipment and facilities.

3. Limit the County’s support to incubators that house locally owned businesses, andlink them to local entrepreneurship programs and business mentors.

4. Establish and/or revitalize entrepreneurship programs in public schools, RCC, andSOU to emphasize local and small businesses. Allocate municipal funds to helpother institutions like churches, civic groups, and small business associations setup entrepreneurship study groups.

5. Establish and/or revitalize mentorship programs such as SCORE. Link established businesspeople (especially retirees with extra time) with young and aspiringentrepreneurs.

6. Establish place-based scholarships. To retain the best and brightest, create ascholarship fund that extends no-interest loans to college-bound kids. (If theyreturn to and settle in the community after graduation, they enjoy no- or low-interest provisions; otherwise, interest rates kick up to market levels.)




Local Jobs Agenda

7. Pension fund analysis. Identify pension funds (public, private, specialized, or mutual) that might be capable of reinvesting locally.

8. Support the creation of local and state-wide stock markets, promote higher-visibility in over-the-counter trading of local companies, and join with State-level

groups (such as Upstream 21 in Portland) who are creating mutual funds of localcompanies. A strong secondary market for business owners and initial investorsmakes for a healthy business environment, and allows for the retention of localcontrol of businesses that were started in Jackson County.

In addition to the above seven clusters, two additional clusters of Tourism and Eldercarecontain opportunities for jobs creation and expanding the diversity of the Rogue Valleyeconomy. We believe that the county government should be proactive in these two areasas well as the ones already mentioned.




Local Jobs Agenda

IV. Buy-Local County Government Procurement

Jackson County government spends approximately $80 million per year on private

suppliers and public-sector agencies. Sixty percent of this expenditure goes tocontractors, firms and agencies outside of Jackson County. About 50% leaves Oregonentirely; another 10% goes to contractors within Oregon but outside Jackson County.Only 40% (approximately $32 million) of county expenditures go to locally owned businesses. The following chart summarizes this data.

Jackson County Government Spending

FY 2010 ($79.5 million)

Jackson

County firms

40%

Non-Oregon

firms

50%

Oregon firms

(excl. Jackson

County)10%

County government procurement can be a powerful stimulus to the local economy. Itdirectly impacts personal incomes of the county’s workforce and business community.Indeed, expenditures to local firms contribute to local personal incomes MORE THAN

merely dollar-per-dollar of the expenditure. When spent on local firms, the money isleveraged by a multiplier from 1.2 to 7 times into local personal incomes, depending onthe extent to which the suppliers receiving the expenditures themselves employ local people and other local suppliers. Similarly, when not spent on locals, the expendedtaxpayer money is a missed opportunity for stimulating the local economy and keeping

our local workforce employed.

Some of the biggest contractors to the county are providers of insurance and healthcareservices, most of which cannot avoid using outside vendors.

Nonetheless, there are many, many “out-of-town” vendors to the county that areneedlessly taking away business from our local firms and workforce. They are in suchareas as:




Local Jobs Agenda

• Road-building materials;

• Professional services such as legal advisory and information technologyconsulting;

• Financial and pension-fund services;

• Retailers of office and computer supplies and office furniture;

• Auto, truck and equipment purchasing and leasing;• Food services.

Potential initiatives to stimulate job-creation in government procurement:

1. Remove all public support, including anything that requires county staff time andenergy, from non-local business and refocus it instead on local business.

2. Establish local indicators. Prepare quantifiable measures of the community’squality of life (economic, environmental, social, and political) that hold economic

development policies accountable. Conduct public hearings in which residentsdecide which indicators are most relevant, then put together an annual report onthe best ones, distribute it widely, and place it on the County’s website.

3. Collaborate in preparation of an annual measure of imports and dependencies,especially in basic goods and services, to underscore where local consumer demands already exist for new locally owned businesses. Work in conjunctionwith Sustainable Valley and existing businesses to identify business opportunitiesfor import substitution (creating our own sources for imported items). See Business Incubation and Financing and Guiding Principles Section above.

4. Conduct subsidy inventory. Perform a full evaluation of all subsidies given in thelast ten years to business (grants, loans, guarantees, tax abatements, capitalimprovements, TIFs and bond issues), and catalogue which, if any, went to local business.

5. Help establish or promote existing business incubators, local financialmechanisms, Internet directories of local businesses, Buy-Local campaigns,entrepreneurship and mentorship programs. (As mentioned in other clusters.)




Local Jobs Agenda

V. Methodology.

All estimates of jobs created, except in the Business Incubation cluster, are based on

simple linear extrapolations of actual employment levels since 2001 and through 2009and as reported by Bureau of Labor Statistics (BLS) and Oregon Labor MarketInformation System (OLMIS). As simple ‘trend line’ extensions of existing employmentlevels, our estimates of job creation reflect what would be a best-guess level even without

our proposed county-government interventions. It is also important to note that our extrapolated estimates are based on actual employment levels that include the fall-off of the last two years. We believe these estimates, therefore, are conservative.

There are two inherent risks associated with this methodology. First, the economicrecession may go much deeper than expected. Second, our proposed interventions may bemore effective than expected. In the first case, our stated job estimates may not be

attained. In the second case, they may be exceeded.

The following chart lists the NAICS categories for jobs that comprise each cluster in thereport. Job numbers in each category came from OLMIS.

Cluster NAICS codes and descriptions

Forestry 113 Forestry & Logging115 Agriculture and Forestry Support Services X ½

Food and Agriculture 111 Crop Production112 Animal Production115 Agriculture and Forestry Support Services X ½311 Food Manufacturing

312 Beverage and tobacco product manufacturing Energy Conservation We summed the indicated portions of the following three NAICS categories below to create a target base of energy-conservation professionals. We thengradually applied this base to energy conservation work starting at 5% in 2001,20% in 2009 to 50% in 2015.238 Specialty trade contractors X 3/5 – electricians, HVAC and plumbers, glassand glazing only444 Building material and garden supply stores541 Professional and technical services X 2/5 – interior design, specializeddesign, architectural services, landscape architects, engineering services, buildinginspection services, testing labs, other professional and technical services only.

Green Construction 236 Construction of buildings237 Heavy and civil engineering construction238 Specialty trade contractors

Electric & Specialty

Vehicle Manufacturing

332 Fabricated metal product manufacturing333 Machinery manufacturing335 Electrical equipment and appliance manufacturing336 Transportation equipment manufacturing

Internet Retail and

Infrastructure

454 Nonstore retailers518 Data processing, hosting and related services519 Other information services

Business Incubation

and Financing

All job estimates made by principals of Sustainable Valley




Local Jobs Agenda

The analysis was performed by Torrey Byles, Chief Economist and Principal, GranadaResearch, Talent, OR.

Torrey has 20 years experience as a market analyst and systems economist in Silicon

Valley. Since moving to the area in 2004 he has been active in local economic-development projects including a two-year stint as Board Chair of THRIVE. He has aB.A. in Economics from UCSD, and a Professional Certificate in Economic-Engineeringfrom Stanford University.

See http://granadaresearch.wordpress.com/ for more detail.

References:

Elsner, Wolfram. Microeconomics of Interactive Economies. Chapter 15, pp. 419-440.

available online at: http://iiso-web.fb7.uni-bremen.de/

__________. Interactive Economic Policy: Toward a Cooperative Policy Approach for a Negotiated Economy. JOURNAL OF ECONOMIC ISSUES, 35, Part 1 (2001): 61-84.

Jacobs, Jane. The Economies of Cities. 1969.

_________. Cities and the Wealth of Nations. 1985.

_________. The Nature of Economies. 2000.

Porter, Michael. On Competition. 1998.

Reid, Rebecca et al. Industrial Clusters in Jackson and Josephine Counties. 2006.

Shuman, Michael. The Small-Mart Revolution: How Local Businesses are Beating theGlobal Competition. 2006.

Spence, Michael et al. The Growth Report: Strategies for Sustained Growth and InclusiveDevelopment. 2008.

Bureau of Labor Statistics website: http://www.bls.gov/data/home.htm

Oregon Labor Market Information System website:http://www.qualityinfo.org/olmisj/CES

http://granadaresearch.wordpress.com/



http://iiso-web.fb7.uni-bremen.de/


http://www.bls.gov/data/home.htm



http://www.qualityinfo.org/olmisj/CES




http://www.qualityinfo.org/olmisj/CES

a jobs agenda for jackson county, oregon 2011-2015

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