Commission Meeting October 25, 2018 Portland, Oregon
welcome Kanth gopalpur
Director’s report Chris harder
Agency Updates • Budget process update • Recent projects: –CDBG Awards –Business Development Projects –Innovation Investments • Advancing agency culture — Amy Croover Payette
CDBG Awards • Public Works Projects: • Microenterprise Assistance: – City of Chiloqin: – City of Independence—$97,500 Wastewater system—$702,000 • Housing Rehabilitation Projects: – City of Tillamook: Wastewater system—$2,500,000 – Harney County—$400,000 – City of Independence—$400,000 • Community Facility Projects: – City of St. Helens: Food Bank—$1,500,000
Strategic Reserve Fund Awards Loan Approved Organization City Approval Date Amount Wayfair LLC Springfield $400,000 10/9/2018 Genentech (BEP) Portland $500,000 (TBD) 10/5/2018 Element Six Technologies Gresham $300,000 10/2/2018 Composite Approach, LLC Redmond $100,000 9/6/2018 Hyak Tongue Point, LLC Astoria $350,000 9/6/2018 Agility Robotics, Inc. Albany $78,390 8/14/2018 Froerer Farms, Inc. Nyssa $110,000 7/16/2018 North River Boats Roseburg $100,000 7/16/2018 $1,938,390 Note: Awards are recently approved for funding, but may not be finalized and under contract
Recent Innovation Projects High Impact Opportunity Project (HIOP) Awards • Value-added Products from Beverage Industry Waste (Food Innovation Center) • Mass Timber Acoustic Testing Laboratory (University of Oregon) • RAPID Metal Additive Manufacturing (Oregon State University) • Mercado Mobile Food Lab (Hacienda CDC) • S Willamette Valley Food Biz Dev Center (RAIN Eugene) • Scaling Juniper Markets (Sustainable Northwest) • Vine Robot & Data Analysis (George Fox University)
Recent Innovation Projects SBIR Matching Grants • Arc Control in Vacuum Arc Remelting Furnaces (Ampere Scientific) • Surgical clip and applier for rapid closure of dura mater (NeuraMedica) • Sensitive, Fast, Portable Diagnostic for Malaria Elimination (Hemex Health) • Developing ultrasound treatment for post-menopausal women (Madorra) • Production of Natural Sun-protective Compounds (Gadusol Labs) • Equipment for Microwave Absorber Commercialization (Tangitek)
Recent Innovation Projects SBIR Matching Grants • Preventive Healthcare App for Latinas (De Las Mias) • Novel Sickle Cell Disease Diagnostic (Hemex Health) • Rapid Diagnostic Test for Zika (mAbDx) • Scaled Manufacturing of Rapid HIV Test (Sedia Biosciences) • Testing Stability of Silica-coated Flu Vaccine (StoneStable)
Agency Culture Recommendation 1: • Management training is scheduled. Starting in December. Complete in July. • A three-part respectful workplace training series is scheduled. All staff required to attend. Recommendation 2: • An all staff survey is currently out to receive feedback from staff on scope and expectations of an Employee Engagement Committee. The survey closes next Monday. • Internal communications plan is underway. • DEI Council – Bryant Campbell will also serve on the Employee Engagement Committee.
Agency Culture Recommendation 3: • Agency charters are underway. • The director’s bi-monthly email communication launched on Monday, Oct 22. • The first director’s forum will be on November 1. Recommendation 4: • Employee Services staffing is underway. • DOJ trainings have been identified for HR staff. • The complaint and investigation flow-chart is underway.
Agency Culture Recommendation 5: • The Regional Development Team has started to review their project process flow. Recommendation 6: • The new DAS “Workday” system release date is still unknown. Recommendation 7: • The recruitment for the AD for Operations & Finance is underway. Recommendation 8: • Internal succession plan first meeting is on Oct 29.
Global trade: what’s working for Oregon Amanda Welker
How Business Oregon Thinks about Trade • Exports • Foreign Direct Investment
Why Trade Matters to Oregon • Oregon exports hit record $22 billion in 2017 • 87,000 jobs in Oregon supported by exports • Nearly 6,000 Oregon companies export • 95% of global consumers outside the US
Oregon Exports by Industry, 2017 Fabricated Metals, 2% All Others, 8% Primary Metals, 2% Electrical Equipment, 2% Wood Products, 2% Computer & Electronic Products, Food Products, 3% 40% Transportation Equipment, 5% Agricultural Products, 8% Chemicals, 10% Machinery, 18% Source: http://www.wisertrade.org, data from U.S. Census Bureau, Foreign Trade Division.
Oregon Export Markets China, 18% All Others, 26% Canada, 11% UK, 2% Singapore, 2% Germany, 2% Taiwan, 4% Malaysia, 10% Vietnam, 7% Korea, 9% Japan, 8% Source: Wiser Trade, 2017
Top Oregon Export Markets (2017, Excluding microchips, cars, soybeans, & potash) $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $0 Source: Wiser Trade, 2017
Top Oregon Export Products (2017, Excluding microchips, cars, soybeans, & potash) Industrial machinery $2,853,402,305 Computer equipment $1,384,883,976 Oilseeds & grains $1,192,356,843 Navigational & control products $657,882,197 Pharmaceuticals & medicines $645,289,039 Aerospace products $516,931,654 Other agricultural products $416,686,523 Fruit / vegetable & specialty… $401,528,459 Basic chemicals $387,753,257 Other chemical products $383,993,083 Source: Wiser Trade, 2017
• 61,700 workers in Oregon are employed as a result of global investment—an increase of over 40 percent since 2010. • 22,600 workers in Oregon—more than 30 percent of all FDI jobs in the state—are in the manufacturing sector.
Challenges • Trade Wars and retaliatory tariffs • Competitiveness – No TPP, NAFTA re-negotiations, EU-Japan trade agreement, U.S. left out • Congestion/bottlenecks in transportation system • Consumption decreasing in historically key markets (Japan) • Oregon not well-known internationally as destination or brand • Loss of container service – not geographically advantaged for direct marine service
Moving Forward • Coordinated, focused global strategy to promote and enhance the Oregon brand overseas • Expand value-added and consumer-packaged goods for food and beverage exports • How do we organize work around the state’s strategies for those markets and target state investment? Japan China UK and Europe Canada SE Asia
Oregon MSA’s Export
Our Team • Global Trade & Recruitment –Team Lead (1) –Grant Program Assistant –Global Trade Specialists (4) –Japan Representative Office JRO (3) –Germany-OCO Global (2) –Business Recruitment Officers (2)
Budget • ICF/Lottery funds • Federal Funds: –State Trade Expansion Program (STEP) –USDA MAP funds • Strategic Reserve Fund (Lottery) • Company/Partner Participation Fees • ~$4 Million
Foreign direct investment
Foreign Direct Investment • Premier West Coast location –Pacific Rim access and easy distribution to California –Continued FDI growth in several industries –Lower-cost power attractive to large manufacturing and processing firms –Rapidly growing metro regions that attract educated workforce –Portland International Airport rated best for business travel six years in a row (Travel + Leisure) 29
Foreign Direct Investment • Japan and Germany • Greenfield and M&A • Innovation and Technology • Tax Landscape/Incentives • Select USA • Public benefits: diversity, career ladders
Japan Strategy • 140 Japanese-owned companies in Oregon –Food and Beverage –Consumer Goods –Semiconductor supply chain –Tourism, Education and Cultural exchange • Metrics: Trade Assistance, Capital investment, Jobs, Income tax • Budget Request: East Asia representative Policy Option Package
Germany Strategy • Key Industry Sector supply chains • Awareness Building • Adidas, Daimler, Siemens • Lead Generation • West Coast Location • Metrics: leads, projects, jobs
Foreign Direct Investment Successes
exports
Trade Tools and Services • 1:1 counseling on export strategy • Overseas Offices • Matching funds for shows & missions, and distributor development services
Export Training • Export financing, working capital, loan guarantees, insurance • E-Commerce, social media • Website localization, translation, and search optimization • Market Briefings • Logistics, documentation, and export compliance • Rural outreach and new-to-export outreach • Softwood Export Council
Export Promotion Program • 984 grants to Oregon small businesses • Average grant award: $3,600 • $3.6 million in total grant funding awarded • Resulting in $147 million in export sales • 22 counties • Top trade show markets: Germany, Japan, China and Canada • 100% utilization rate of federal and state funds
Advanced Navigation and Positioning Systems Hood River, OR Grant: $5,000 Event: LADD trade show in Brazil Immediate Sales: $125,000 Estimated Sales: $5 million (12 jobs created)
Reasons why > Ride Development: Bumper Car Maker Independence, OR Grant: $5,000 Event: DEAL in Dubai, UAE Immediate Sales : $408,000 Estimated Add’l Sales: $100,000
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