Southern Oregon Business Journal - June 2023 Issue

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June 2023 Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties Since 2015 The Journal for Business in Southern Oregon The Southern Oregon Business Journal is Sponsored by OREGON’S FORESTRY AND LOGGING INDUSTRY: FROM PLANTING TO HARVEST - PAGE 8 CHELSEA BROSTERHOUS IS THE OFFICIAL GOOGLE DIGITAL COACH FOR OREGON - PAGE 14 A CLOSER LOOK AT OREGON’S MEDIAN HOUSEHOLD INCOME - PAGE 26 SouthernOregonBusiness.com Trever Yarrish, Grants Pass based CEO & Co-Founder at ZEAL and Founder at the Hivve shares his VISION of AI PAGE 44

I almost called this issue “Grants Pass has got it going on.” Because last month I featured Nathan Miller on the cover and this month I’m featuring Trever Yarrish

Both are CEOs of cool tech companies and more in Grants Pass.

When I visit Grants Pass, I can see and feel the vibrancy. Lots of people walking, driving, doing business and going from place to place. The age seems to be low 20’s to mid 40’s. I rarely saw “old” people. It didn’t use to be this way, but something changed in the last 10 years. I like it.

I was invited to meet my friend Trever Yarrish for lunch and catchup on all the wonderful things he has going on. We ended up spending most of lunch talking about AI and Apple’s Vision Pro which was just announced a couple days earlier.

Trever runs a custom software development shop, just like I do, called Zeal. It’s very hip and cool. Very Trever. He also runs the Hivve. A hybrid co-working space (filled with young entrepreneurs) and public event space with live music every Friday night.

He’s a passionate visionary and works hard to make Southern Oregon a better place everyday. He’s about 15 years younger than I am, but I want to be just like him when I grow up.

The fun lunch conversation turned into a story, which wasn’t our intent, but his words haunted me for several days. Not in a bad way necessarily. Read the story on page 44 and let me know what you think.

The day after our lunch, I surprised another friend with a private meet and greet with her favorite artist that she didn’t know was her favorite artist.

She saw a painting on the wall at the Rogue Valley Manor, took a pic and showed it to me one time. She said the painting moved her. I recognized the work right away and set upon a plan to surprise her. The planets aligned and I was able to arrange the meeting with rock star local artist Gabriel Mark Lipper (https://artofgabriel.com/) and it was an amazing moment for all. While setting this private showing up, he apologized to me that his studio might not have a lot of works available in it because much of his work in featured in a museum from June 1 to July 28. Can you guess which museum? That’s right, the Grants Pass Museum of Art.

Like I said, Grants Pass has got it going on. Go check it out.

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ENERGY TRUST OF OREGON - BACK COVER

| Southern Oregon Business Journal June 2023 2 A Few Words from Jim June 2023
The Southern Oregon Business Journal extends sincere thanks to the following companies for sponsoring the journal. Without their support we could not produce a FREE resource for Southern Oregon businesses.
Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.
AI
44 June 2023 Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties Since 2015 The Journal for Business in Southern Oregon The Southern Oregon Sponsored by OREGON’S FORESTRY AND LOGGING INDUSTRY: FROM PLANTING TO HARVEST PAGE CHELSEA BROSTERHOUS IS THE OFFICIAL GOOGLE DIGITAL COACH FOR OREGON PAGE 14 CLOSER LOOK AT OREGON’S MEDIAN HOUSEHOLD INCOME PAGE 26 SouthernOregonBusiness.com
Trever Yarrish, Grants Pass based CEO & Co-Founder at ZEAL and Founder at the Hivve shares his VISION of
- Page
VISION of AI PAGE 44
Trever Yarrish, Grants Pass based CEO & Co-Founder at ZEAL and Founder at the Hivve shares
his
Southern Oregon Business Journal Book Review - The startup community way how to build an entrepreneurial ecosystem that thrives by Brad Feld + Ian Hathaway 5 Streamlining Data-Driven Content: Combined Transport’s New Site 6 Oregon’s Forestry and Logging Industry: From Planting to Harvest 8 SORIN Coding Camps 2023 10 Chelsea Brosterhous is the Official Google Digital Coach for Oregon 14 Economic Indicators: What do they tell us? 16 State Launches Funding to Expand Semiconductor Firms in Oregon and Leverage Federal CHIPS Act Dollars 18 Grant Applications Open to Support Centers for Innovation Excellence 19 Business Oregon Awards $1.2 Million to Applied Physics Technologies to Support Oregon Innovation and the Semiconductor Industry 20 10-Year Occupational Projections for STEM Jobs 22 A Closer Look at Oregon’s Median Household Income 26 A new enterprise system for your business: Dos and Don’ts - Part 2 30 SBDC - Don’t Overlook the Most Important 36 Insufficient Training 38 Unveiling the Crater Foundation’s New Site: Empowering Education through Online Donations 40 4 Reasons Why Your Start-Up Should Attend Business Exhibitions 42 5 Benefits of Outsourcing IT Support for Startups 43 Trever Yarrish, Grants Pass based CEO & Co-Founder at ZEAL and Founder at the Hivve shares his VISION of AI 44 SOU receives additional $1 million in state support for solar arrays 46
5350 HWY 66, Ashland, Oregon 97520 www.SouthernOregonBusiness.com JUNE 2023 - TABLE OF CONTENTS
A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

The Startup Community Way: Evolving an Entrepreneurial Ecosystem by Brad Feld and Ian Hathaway is a timely and insightful book that explores the dynamics and challenges of building vibrant and sustainable startup ecosystems around the world. The authors draw on their extensive experience and research to provide a comprehensive and practical guide for entrepreneurs, investors, policymakers, and other stakeholders who want to foster a culture of innovation and collaboration in their communities.

The book builds on the concepts and principles introduced in Feld’s previous book, Startup Communities: Building an Entrepreneurial Ecosystem in Your City, which advocated for a bottom-up, entrepreneur-led approach to creating startup

communities. The Startup Community Way goes deeper into the theory and practice of complex systems, which are at the core of entrepreneurial ecosystems. The authors explain how complex systems are composed of interacting parts that produce emergent outcomes that are unpredictable and often surprising. They also show how complex systems are adaptive, evolving, and selforganizing, and how they can be influenced by feedback loops, network effects, and power laws.

The book argues that understanding and embracing complexity is essential for anyone who wants to participate in or support startup communities. The authors warn against the common mistakes of trying to control, plan, or optimize complex systems from the top-down, or assuming that they can be replicated or scaled up easily. Instead, they suggest that participants should adopt a whole-system view, experiment and learn from failure, and collaborate with diverse and inclusive actors across different domains and levels.

The book is divided into three parts. The first part provides an overview of the complex systems framework and its relevance for startup communities. The second part delves into the seven

domains of startup communities: leaders, feeders, frameworks, culture, capital, talent, and institutions. The third part offers practical advice on how to measure and evaluate startup communities, how to navigate the different phases of their evolution, and how to deal with common challenges and opportunities.

The Startup Community Way is a valuable resource for anyone who wants to learn more about the nature and dynamics of startup communities and how to improve them. The book is rich with examples, case studies, data, and tools that illustrate the key concepts and best practices. The book is also engaging and accessible, written in a clear and conversational style that reflects the authors’ passion and expertise. The book is not only informative but also inspiring, as it showcases the potential and impact of startup communities around the world.

The Startup Community Way is a must-read for anyone who cares about entrepreneurship and innovation in the 21st century. It is a book that will challenge your assumptions, expand your horizons, and empower you to take action.

Southern Oregon Business Journal June 2023 | 5 READING LIST A business book review
The startup community way how to build an entrepreneurial ecosystem that thrives by Brad Feld + Ian Hathaway

Streamlining Data-Driven Content: Combined Transport’s New Site

In today’s fast-paced world, the ability to access up-to-date information is crucial for efficient decision-making and streamlined operations. Combined Transport Logistics Group, a renowned provider of trucking services, recognized the importance of real-time data and partnered with Project A, Inc. to build a cutting-edge

website. This collaboration resulted in the development of an advanced API and middleware system, empowering Combined Transport to deliver data-driven content seamlessly. Let’s explore how this new site revolutionizes the trucking industry and enhances the

experience for drivers and partner carriers.

Efficient Data Integration:

The collaboration between Combined Transport and Project A, Inc. has yielded a website that incorporates advanced API and middleware

| Southern Oregon Business Journal June 2023 6 WEB LAUNCH

technology. This integration allows for the seamless flow of information between various systems, ensuring accurate and real-time data updates. The API and middleware act as a bridge, connecting different components of the website, including Used Equipment listings for Trucks and Trailers, Available Loads, and Load Status.

Real-Time Load Information:

One of the primary advantages of Combined Transport’s new site is the provision of up-todate information on loads. This feature is invaluable to drivers and partner carriers as it enables them to make informed decisions regarding their operations. By leveraging the advanced API and middleware, Combined Transport ensures that load statuses are constantly updated, eliminating the need for manual data entry and potential delays. Drivers and carriers can access the latest information instantly, enabling them to optimize routes, plan efficiently, and maximize their productivity.

the new website. The seamless integration of data-driven content allows users to navigate through the site effortlessly and find the information they need promptly. The Used Equipment listings for Trucks and Trailers section provides comprehensive details about available equipment, empowering potential buyers to make informed decisions. The Available Loads feature enables carriers to explore available freight opportunities quickly, matching them with suitable loads. With real-time Load Status updates, drivers can stay informed about their shipments, ensuring smoother coordination with the logistics team.

Reliable Partnership: Combined Transport and Project A, Inc.

meets the demands of a datadriven trucking industry.

Conclusion:

Combined Transport’s new website, developed in collaboration with Project A, Inc., marks a significant step forward in the trucking industry’s evolution. The advanced API and middleware system empowers Combined Transport to deliver real-time data-driven content seamlessly. Drivers and partner carriers benefit from up-to-date information on Used Equipment listings, Available Loads, and Load Status, optimizing their operations and enhancing productivity.

Enhanced User Experience:

Combined Transport’s commitment to becoming the preferred source for their customers is reflected in the user experience provided by

Combined Transport’s partnership with Project A, Inc. has proven to be a significant milestone in their pursuit of excellence. Project A is wellknown for its expertise in developing robust API and middleware solutions, catering to the unique needs of businesses across various industries. Their collaboration with Combined Transport showcases the successful integration of technology and logistics, resulting in a comprehensive solution that

Combined Transport’s commitment to becoming the preferred source for their customers is evident in their investment in advanced technology and their partnership with Project A, Inc. With this innovative website, Combined Transport is setting new standards for efficiency and customer satisfaction in the trucking industry. For more information about Combined Transport, visit their website: Combined Transport. By Project A Press Release –https://projecta.com/ combined-transport/

Southern Oregon Business Journal June 2023 | 7

Oregon’s Forestry and Logging Industry: From Planting to Harvest

Oregon is one of the world’s great treegrowing areas. The state’s soils and climate provide ideal conditions to grow such commercially viable species as Douglas fir and ponderosa pine. Forests cover more than 30 million of Oregon’s 62 million acres – almost half of the state’s landmass.

The Oregon Department of Forestry (ODF) estimates logging harvests totaled 3.9 billion board feet in 2021. While much of this timber feeds Oregon’s wood products industry, creating jobs and income, many jobs are also created planting, growing, and

harvesting this resource.

Forestry and Logging Industry Employment

Firms in forestry and logging grow and harvest timber on a long production cycle, generally of 10 years or more. Timber production requires natural forests or suitably large areas of land that are available long term. Oregon’s often mountainous and remote terrain, in both public and private ownership, provides that land base.

The forestry and logging subsector is made up of three industries:

• Timber tract operations

• Forest nurseries and gathering of forest products

• Logging

According to the Oregon Employment Department’s covered employment statistics, forestry and logging’s 710 establishments employed 8,869 workers statewide and added $650 million in payroll to Oregon’s economy in 2022.

Employment was in decline between 2005

| Southern Oregon Business Journal June 2023 8 FORESTRY & LOGGING

and 2009 and has since leveled off. It is currently varying seasonally in a band between 8,000 and 10,000 jobs.

Of the 2022 annual average total, 5,056 were employed in the private sector while 3,812 were employed in government. Most of the government employment is in federal government at 3,636 while the rest is in state government.

Covered employment is a count of workers covered by Oregon’s unemployment insurance (UI) program. Self-employed individuals are generally not included in the program and, therefore, not counted. However, the U.S. Census Bureau produces nonemployer statistics. A nonemployer business is one that has no paid employees, has annual business receipts of $1,000 or more, and is subject to federal income taxes.

In addition to covered employment, forestry and logging had 1,485 nonemployers in Oregon in 2019. Gross income for these companies was $99 million. Although there is no further industry breakout, it is likely that many of these self-employed are involved in timber tract operations and the gathering of forest products.

Forestry and logging is a highly seasonal industry. Employment generally grows throughout the spring and peaks in August. Employment often stabilizes for a month or two in the fall before dropping off as winter rains begin.

The largest industry in the forestry and logging subsector is logging, which totaled 588 reporting units and 4,520 employees in 2022. The logging industry, with a statewide annual average wage of $59,714 in 2022,

pays a little less than the statewide average wage of $66,342 for all industries. Major occupations in this industry include loggers, equipment operators, truck drivers, and fallers and buckers. Logging shows a similar seasonality to the overall sector, except with less volatility.

The second-largest industry of employment in forestry and logging is timber tract operations, employing 4,161 on an annual average basis in 2022. Timber tract operations employment is largely government employment. In 2022, 3,636 federal workers and 166 state workers managed government forestlands. The remaining 359 were in the private sector. In addition to forest workers, many occupations in this industry are managerial or professional and require a high level of experience and education. Wages, therefore,

Southern Oregon Business Journal June 2023 | 9

are relatively high – $89,221 in 2022.

The industry with the least employment in the forestry and logging subsector is forest nurseries and gathering forest products, with only 13 establishments and covered employment of 188 in 2022. Much of the work in this industry is sporadic or seasonal, which contributes to the relatively low annual average wage of $47,291. The covered employment numbers for this industry may be low since many of the entities that gather forest products are sole proprietors or family operations that are not covered by UI law.

Long-term Decline but Stabilization after the Great Recession

From 1990 to 2000, forestry and logging employment declined from 15,774 jobs statewide to 12,887, a loss of 2,887 jobs or 18%. During that period, timber harvests in Oregon declined from 6.2 billion board feet to 3.9 billion board feet. The decline was due largely to environmental concerns and the resulting decrease of harvests from public lands. In 1990, the Oregon Department of Forestry reported 48% of timber cut for the lumber and wood products industry came from public lands. Over time, restrictions took a toll, and the harvest from public lands in Oregon dwindled to 18% of the total in 2007.

Due to low interest rates along with a record level of housing starts and an increase in

lumber prices in the western U.S., the 2004 timber harvest level of 4.5 billion board feet was the highest since 1993. A few years later, western housing starts declined due to a nationwide recession. Timber harvest levels also declined to 3.8 billion board feet in 2007. Correspondingly, employment in forestry and logging dropped 1,898 jobs, or 15% from 2004 to 2008.

With the end of the Great Recession in 2009, the industry stabilized. Since then, forestry and logging employment has been relatively stable compared with previous periods, going from annual average employment of 9,329 in 2009 to 8,867 in 2022.

Some of the long-term decline in employment in forestry and logging was due to increased mechanization. A simple way to look at the efficiency created by mechanization is to look at the volume of timber harvested per logging worker. Harvests averaged 550,400 board feet per logging worker in 1990. By 2021, that figure had risen to 822,841 board feet per worker.

The forestry and logging industry was one of the industries least affected by restrictions put in place due to the COVID-19 pandemic, gaining about 2% of its employment between February and April 2020 due to a seasonal increase compared with 13% decline for all industries. On an annual average basis, forestry and logging

employment dropped 3% in 2020 compared with 6% for all industries.

Support Activities for Forestry

The high level of forestry activity in Oregon also creates demand for a support activities industry. In 2022, support activities had covered employment of 4,971 and provided $278 million in payroll. In addition, there were 456 nonemployer businesses with gross income of $26 million in 2019. Included in this industry are firms that replant forests, fight forest fires, thin forests, and provide information to the timber industry.

Employment in support activities has been stable through time generally staying between 3,500 and 4,500 over the past 20 years on an annual average basis. Employment increased recently though, at 5,134 in 2021 due to firefighting and replanting after busy fire seasons.

At $55,956 in 2022, annual average covered wages in this industry were below the allindustry average of $66,342. Seasonal, sporadic, and part-time work are prevalent and often bring down the annual average but like employment, wages rose in 2021, reaching $61,057, likely due to busy fire seasons.

The support activities for forestry industry was one of the least affected by restrictions

| Southern Oregon Business Journal June 2023 10

enacted due to COVID-19. The industry gained 82 jobs between February and April 2020 compared with 13% loss for all industries. On an annual average basis, the industry gained 4% in 2020 compared with a loss of 6% for all industries.

Like forestry and logging, the support activities industry is highly seasonal. The year usually starts with tree planting in the late winter and into spring, depending on the slope and elevation. Firefighting then picks up in the summer, usually peaking around August.

The support activities industry has become very mobile and flexible, with Oregon companies planting trees, thinning brush, and fighting forest fires throughout the Pacific Northwest and beyond. Some Oregon companies in this industry take part in more

than one of these activities, often far from Oregon. As Cassandra Moseley of the University of Oregon’s Ecosystem Workforce Program points out, “A company can do all three in an area once they have the transportation and people that are willing to work hard.”

Another major portion of the support activities industry is replanting forests after logging. In 1971, Oregon enacted the Oregon Forest Practices Act, making it the first state in the nation to set rules to ensure a continuous harvest of timber. As a result, according to the Oregon Forest Resources Institute, about 40 million seedlings are planted in Oregon each year.

that the logging industry in Oregon is expected to lose about 200 jobs, or 4% between 2021 and 2031. Logging was one of the industries least affected by restrictions enacted due to the COVID-19 pandemic so it will not have as strong a rebound as the overall economy going forward. Other industries within timber production, such as timber tract operations and support activities for forestry do not have published Oregon Employment Department forecasts.

https://www.qualityinfo.org/-/oregon-s-

Employment Department projections show

Southern Oregon Business Journal June 2023 | 11
Outlook
Photo by everett mcintire on Unsplash

SORIN Coding Camps 2023

Southern Oregon Business Journal June 2023 | 13
STEM

Google is announcing the addition of ten new Digital Coaches in Georgia, Iowa, Michigan, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina and Virginia. Trained in partnership with Main Street America, these new coaches will work with businesses in their home states, with a focus on those that operate in small towns and rural communities.

Digital Coaches will offer ongoing workshops on topics designed to help small businesses grow and thrive, including connecting with customers, selling online, and improving productivity – all for free.

With these new additions, the Grow with Google Digital Coaches program is now 28 coaches strong and brings dedicated support to businesses in small towns.

Chelsea Brosterhous is the Official Google Digital Coach for Oregon

Chelsea Brosterhous is the Official Google Digital Coach for Oregon

Owner of Chelsea’s Marketing & Ad Agency, an agency that provides digital marketing strategies and social media coaching to small businesses.

https://events.withgoogle.com/ digital-coach-chelsea-or/

Meet Chelsea

Small business owners frequently wear many hats: they may spend 12 hours a day running a restaurant, but they also need to be an accountant, a marketer, a customer service rep and an IT support person. Digital Coaches help lighten this load by equipping business owners with the digital skills they need. To date, Digital Coaches have helped more than 160,000 small businesses gain new skills.

To learn more about Grow with Google Digital Coaches or sign up for a training in your area, visit grow.google/digitalcoaches.

Chelsea Brosterhous is an Oregon native with a deep passion for entrepreneurship and growing small businesses. Chelsea is the Founder of Chelsea’s Marketing & Ad Agency, where she offers digital marketing strategies, advertising services, and social media coaching for her clients.

Prior to starting Chelsea’s Digital Marketing and Ad Agency, she was the founder of a successful ecommerce and brick-and-mortar boutique for 3 years. Chelsea has successfully coached a variety of small business owners from all over the country. One of her favorite projects has been coaching former Miss America and promoting her Broadway Show in New York City!

If you have any questions, please email Chelsea at chelseab@growwithg.co.

| Southern Oregon Business Journal June 2023 14 FEATURED
Chelsea. Brosterhous, Oregon’s ONLY Google Digital Coach for Small Businesses PC; Mariel Hensley Photography

“Get My Business on Google Search & Maps Workshop” All Workshops held across Oregon are FREE for small business owners. PC: Mariel Hensley Photography

What is a Grow with Google Digital Coach?

Grow with Google Digital Coaches are local marketing experts and entrepreneurs who help diverse small businesses grow. They offer live training and hands-on coaching on topics like how to connect with customers, sell products online, and improve business productivity – for free.

No matter where you are on your entrepreneurial journey, your local Digital Coach can help you build skills to take the next step for your business and network with other successful businesses in your community.

Who is this program for?

Grow with Google has partnered with Main Street America to onboard 10 local Digital Coaches who will offer training and coaching to businesses in small towns – including Chelsea Brosterhous in Oregon. Chelsea joins a network of Digital Coaches dedicated to helping

grow the small businesses in their communities.

Where else do you have Digital Coaches?

Visit grow.google/digitalcoaches to find your closest Digital Coach.

Want more resources?

For more small business resources, check out grow.google/ smallbusiness (English) or grow.google/ pasoapaso (Español).

Southern Oregon Business Journal June 2023 | 15
“Get My Business on Google Search & Maps Workshop” All Workshops held across Oregon are FREE for small business owners. PC: Mariel Hensley Photography

Economic Indicators: What do they tell us?

We live in a data rich world where much of our life is measured, ranked, and quantified. If you have kids, you know that one of the first things the doctors and nurses do in the hospital after the birth of your child is to measure their weight and length. To provide context to those measurements, health care providers present that weight and length as a percentile. As kids age, the pediatrician at the routine wellness checks will show your child’s growth charted against “typical” growth trajectories. Where your kid falls on this chart is often used to estimate the height of your child as an adult. It was probably

around the third wellness check for my oldest daughter before I realized that a pediatrician looks at indicators on early childhood development in a very similar fashion to how an economist tracks indicators critical to the local, regional, or national economy.

At the most basic level, an economic indicator is a measure that tells us something about a market. Economies are big and complex systems. So, there are a multitude of indicators that can range from being highly granular (i.e., new unemployment insurance claims for construction workers in Jackson County) to very broad (i.e., U.S. Gross Domestic Product). These

indicators can be broken down into three basic categories: lagging, coincident, and leading. As you will see, these different categories align well with the measures used by pediatricians and teachers to measure the health and development of a child.

Lagging indicators are “old” data that tell us something about where we came from. “Old” is relative, as many lagging indicators reference the previous month or quarter, not ancient history. A child’s report card is a great example of a lagging indicator. The teacher provides these report cards after the end of the term to tell us about a child’s performance the previous 6

| Southern Oregon Business Journal June 2023 16 BUSINESS OREGON

months. A report card does not tell us about how they will do next term or even the current proficiency in a particular subject, but it does provide some broad understanding about strengths and areas where the child needs more attention. Lagging indicators may be the least helpful for telling us about a future tomorrow, but they are the bedrock economic indicators used to anchor our understanding of where we have come from.

The key to these lagging measures is that they give us some insight into changes over time. The classic example of lagging indicators in the labor market are employment and unemploym ent measures produced by the U.S. Bureau of Labor Statistics. Another popular lagging indicator produced by the Bureau of Labor Statistics is the Consumer Price Index, the most widely used measure of inflation. These lagging indicators (i.e., employment, home prices, GDP, and CPI) are widely used economic measures critical for our understanding of how the economy has performed in the past. But these indicators do not tell us about today and they do not give us much insight into a future tomorrow.

Coincident indicators, often including what people refer to as “real-time data”, are measures that tell us about what is happening at this moment. They are like taking the temperature of a sick child. It tells you exactly

how hot or cold the child is, which can tell you if they have a fever.

One of my favorite coincident indicators for the broader economy is unemployment insurance claims. If someone files an unemployment insurance claim today, they will likely show up as statistically unemployed a month or two from now. However, seeing those claims in near real time can reveal changes to the economy much quicker. There are far fewer coincident indicators than lagging indicators, but as technology increases, we are seeing more of these real-time metrics being used. Another great example is The Conference Board’s Help Wanted Online program that measures labor demand in near real time by pulling job ads off the internet.

The final broad category of economic indicators are leading indicators. These often measure something that happened in the past or present, but they are correlated with some future event. As a result, they can give us some insight into future trends. This is like using a child’s growth chart to estimate the adult height of a child. Is it a perfect indicator? No. But, you have some general insight into whether your child will likely have a future as an NBA center.

The leading indicator I reference the most is job ads from the U.S. Bureau of Labor Statistics, Job Openings and Labor Turnover Program. A job ad tells us about

the demand for labor. Current labor demand leads to future hiring. A perfect indicator? No. Many job ads are canceled or never filled, but these job ads correlate well with future hiring 3-6 months into the future. Another great leading indicator is building permits. Like job ads, building permits show the intent to do something, which in this case is to build a structure.

The U.S. Census Bureau, Building Permits Survey has great information on residential building permit activity that provides some insight into future housing inventory and demand for construction workers.

The component of the economy you are most interested in better understanding will determine the indicators you research. But make sure to look at the available lagging, coincident, and leading indicators for that topic. Including these different types of indicators will better inform where we came from, where we are, and where we may be going.

June 9, 2023 https://www.oregon.gov/biz/ aboutus/blog/Pages/default.aspx

Southern Oregon Business Journal June 2023 | 17
Photo by Austin Distel on Unsplash

State Launches Funding to Expand Semiconductor Firms in Oregon and Leverage Federal CHIPS Act Dollars

The applications are now posted online for semiconductor firms applying for a portion of the $190 million in funding available for Oregon firms through Senate Bill 4, signed into law by Governor Kotek in April 2023. Applications will be accepted beginning on June 19. Initial review of applications will start June 28 with this round of funding closing on July 28, 2023. Additional rounds will be dependent on availability of funds. The funding is intended to help Oregon firms expand in the state and take advantage of the additional federal funding that will be available via the CHIPs Act.

“Semiconductor manufacturing is the anchor of Oregon’s economy,” said Sophorn Cheang, Director of Business Oregon. “This funding is the culmination of many Oregon leaders coming together to show the state of Oregon’s commitment

to support the industry. We are leveraging Oregon’s existing competitive advantages to bring investments and high-wage jobs into the state that will keep Oregon the semiconductor innovation hub of the world for years to come.”

In August of 2022, President Biden signed the bipartisan CHIPs and Science Act into law to spur investment in U.S. advanced manufacturing, bolster supply chains, and invest in research and development. To take advantage of federal CHIPs Act funding for semiconductor manufacturers and the semiconductor supply chain, the state of Oregon made the state funding available to support Oregon firms applying for CHIPs dollars.

Semiconductor manufacturing is Oregon’s largest manufacturing

sector by employment, exports, and contribution to state GDP. The industry is critically important to the state’s economy, and it has played an important role in the growth of software and other technology sectors. Oregon’s Silicon Forest is home to the most talented semiconductor workforce, developing the next generation of chips to drive future electronics.

To learn more about this funding opportunity, the Oregon semiconductor industry and the CHIPS Act, visit www.oregon.gov/biz/. Submit questions about this program via email to Oregon.CHIPS@oregon.gov.

JUNE 5, 2023 – By Press Release –Business Oregon – https:// development.oregon4biz.com/acton/rif/ 14786/s-0680-2306/-/l-0007:4d5c/ q-000c/showPreparedMessage? sid=TV2:wsO2D0S5C

| Southern Oregon Business Journal June 2023 18 BUSINESS OREGON
Photo by Laura Ockel on Unsplash

https://development.oregon4biz.com/acton/rif/14786/s-067d-2305/-/ l-0007:4d5c/q-000c/showPreparedMessage?sid=TV2:jsdlyzFUy

Grant Applications Open to Support Centers for Innovation Excellence

Business Oregon has opened a Request for Grant Applications (RFGA) for entities that seek to be designated as a Center of Innovation Excellence (CIE) for an existing or emerging traded sector in Oregon. The size of CIE awards will vary based on the CIE’s proposed Scope of Work. It is anticipated that the state contribution to CIE budgets will be $500,000 to no more than $2,500,000 for the state’s biennium that ends June 30, 2025.

In February 2021, Business Oregon released Oregon’s 10-Year Innovation Plan, which was built on the central premise that the continued vitality of Oregon’s economy and the state’s high quality of life rests on its ability to encourage innovation. As a component of the Innovation Plan, Business Oregon intends to support CIEs that leverage Oregon’s existing traded-sector strengths or emerging market opportunities.

CIEs will incentivize collaboration and foster ideation by catalyzing the commercialization and deployment of new products, services, and processes within Oregon’s existing traded sectors as well as emerging markets. CIEs will be public-private partnerships that concentrate their efforts on developing the funding, talent, and support services in sectors where Oregon has a competitive advantage. Each CIE will be designed and operated in a way that will meet the needs of the specific sector and the existing assets in that sector.

Business Oregon acknowledges that there will not be a single approach to CIEs. Rather, each CIE will be responsive to the sector’s current resources, gaps in support, support from the private sector, and market opportunities. CIEs are expected to leverage state funds with multifold increases in non-state (federal, county, city, private sector, philanthropic, etc.) support over time.

Eligibility Requirements

Eligible applicants are non-profit organizations, trade associations, educational institutions, chambers of commerce, governmental entities, tribal governments, economic development districts, and for-profit entities.

The Lead Applicant must demonstrate leadership in the sector, an ability to convene the necessary partners, and the capacity to manage grant funding.

The Lead Applicant must be an entity registered to do business in Oregon and be Oregon-based, which is defined as having more than 50% of its employees based in Oregon.

The industry sector on which the CIE focuses must be traded sector. Traded sectors are defined in Oregon statute as industries in which member firms sell their goods or services into markets for which national or international competition exists.

More information about this program, the requirements, and the application can be found at Oregon.gov/biz. Specific questions regarding eligibility should be emailed to mark.brady@biz.oregon.gov.

To be considered for an award, applications must be received by Business Oregon no later than 11:59pm Pacific Daylight Time on July 7, 2023. Applications must include all of the necessary documents and should be emailed to mark.brady@biz.oregon.gov. Full application instructions are in the RFGA.

This RFGA is being released prior to the approval of Business Oregon’s budget for the 23-25 biennium. This means that the availability of funding for these awards is not guaranteed. If the agency does not receive sufficient funding for this program in its 23-25 biennium budget, no awards will be made. Visit Oregon.gov/biz for more information about this program.

MAY 30, 2023 by Business Oregon Press Release – https:// development.oregon4biz.com/acton/rif/ 14786/s-067d-2305/-/l-0007:4d5c/ q-000c/showPreparedMessage? sid=TV2:jsdlyzFUy

Southern Oregon Business Journal June 2023 | 19 BUSINESS OREGON
Photo by Kvalifik on Unsplash

By

| Southern Oregon Business Journal June 2023 20 BUSINESS OREGON
Oregon Awards $1.2 Million to Applied Physics Technologies to Support Oregon Innovation and the Semiconductor Industry
Business Oregon Press Release https://development.oregon4biz.com/ acton/rif/14786/s-067f-2306/-/l-0007:4d5c/q-000c/ showPreparedMessage?sid=TV2:iOKkb2Rpk Business

Business Oregon is thrilled to award Applied Physics Technologies (APT) with a grant of $1,200,000 from the Emerging Opportunity Fund. This award will assist the company with the construction of a new clean room and improvements to the company’s headquarters facility in McMinnville, Oregon. This award was made possible through the support of the McMinnville Economic Development Partnership (MEDP) and Oregon Manufacturing Extension Partnership.

APT is a small, Oregon-grown, high-tech manufacturer that produces critical components for sophisticated capital equipment used in the semiconductor and life science industries. They specialize in the design and manufacture of thermionic, field emission, and thermal field emission electron sources made from single crystal materials refined in-house.

“Business Oregon is pleased to support a highly innovative, Oregon-based company that provides immense value to its local and regional communities,” said Sophorn Cheang, Director of Business Oregon. “We are committed to supporting Oregon’s semiconductor industry and this investment will help our state gain a competitive edge as a global leader in semiconductor production and advanced manufacturing. Business Oregon will continue to support innovators like APT who provide Oregonians with new, high-

paying job opportunities that will last for generations.”

“Applied Physics Technologies is a leader of innovative product development and MEDP is encouraged by the significant investment of APT and Business Oregon,” said Patty Herzog, MEDP Executive Director. “This award demonstrates the state’s unwavering commitment to investing in companies like APT that are leading an innovationbased economy in McMinnville. This grant is the result of a dedicated partnership between Business Oregon, SEDCOR, and MEDP that provides regional benefit and retains high-wage jobs.”

APT has designed and patented products on the cutting edge of electron emission and must continue to innovate and improve its processes to retain and grow market share. Customers are demanding ever-higher product quality and ever-lower failure rates. APT sees opportunities to develop new product lines that cannot be made in the company’s current facility.

“There is a limit to the volume of product we can manufacture in our current structure,” said APT President and CEO Marcus Straw. “Furthermore, the quality our customers are increasingly demanding will be unattainable without a major facility upgrade, effectively making our most demanding markets unserviceable. APT’s future depends upon this project.”

APT’s products operate in an ultrahigh vacuum with high applied electric fields. So, particle contamination is the main mode of product failure during operation. The company currently has a 975 sq ft “clean area” where the most sensitive manufacturing takes place. This “clean area” is largely uncontrolled, has no ISO rating, and is too small. With this grant, APT will construct a new, ISO 7-rated, 2,670 sq ft clean room. The company will also update the company’s server room, renovate their office space, and conduct improvements outside of the new clean room that will improve workflow.

“Our new cleanroom will enable us to both increase our capacity and improve our quality, nearly doubling our revenue by 2027, adding an estimated $8.8 million in wages, benefits, and payroll taxes into Oregon’s economy,” said APT’s President and CEO Marcus Straw.

APT supports Oregonians by adding approximately 30 new high-wage jobs, paid on-the-job training, and welcoming student interns from Oregon’s higher education institutions. APT is also committed to environmental sustainability in their business practices. Learn more about APT at A-P-Tech.com.

Learn more about Business Oregon’s programs at Oregon.gov/biz.

JUNE 1, 2023 By Business Oregon Press Release https:// development.oregon4biz.com/acton/rif/ 14786/s-067f-2306/-/l-0007:4d5c/q-000c/ showPreparedMessage?sid=TV2:iOKkb2Rpk

Southern Oregon Business Journal June 2023 | 21

May

10-Year Occupational Projections for STEM Jobs

Twenty-three percent of jobs in Oregon fall into the STEM category (science, technology, engineering, and mathematics). You can view the relationship between employment and wages of STEM occupations with the career explorer tool on QualityInfo.org.

Chances are, you have heard the term STEM, but exactly what is a STEM job? Several definitions

exist. While all are focused on science, technology, engineering, and mathematics, some include health care jobs and even jobs related to the arts.

This article and the resources on QualityInfo.org use the Brookings Institute’s definition of a STEM occupation. According to the Brookings Institute, a STEM occupation requires a high level of knowledge in one or more core

STEM fields. The selection of STEM occupations is based on information from the U.S. Department of Labor’s O*NET (Occupational Information Network Data Collection Program). O*NET collects detailed surveys of workers in every occupation. These surveys gather data that assess the knowledge level required to perform the workers’ current job. Based on the surveys’ responses, O*NET

| Southern Oregon Business Journal June 2023 22 EMPLOYMENT
25, 2023 https://www.qualityinfo.org/-/10-year-occupationalprojections-for-stem-jobs-2

assigns a knowledge score for each occupation. The Brookings Institute used the knowledge scores to identify STEM occupations. Out of the 791 occupations tracked by the Oregon Employment Department, 279 are STEM occupations based on the think tank’s definition.

STEM is not a passing fad. This acronym has been, and will be, around for a long time. Why? Because it represents a group of occupations that many see as key to our economic well-being. You can read about STEM on Wikipedia and on social media. There are STEM blogs, newsletters, and Twitter accounts, programs, coalitions, and initiatives, all geared toward educating the world about STEM and educating individuals for STEM careers. There is no doubt, current and future demand exists for people with a STEM-related education.

Education and STEM

Want a STEM job? If so, attaining a postsecondary education may improve your chances. Most STEM jobs require education and training to learn the skills and knowledge for the job. The typical entry-level education for about 69% of STEM job openings is postsecondary training or higher. Nearly half (46%) of STEM job openings require a bachelor’s degree.

Looking at all projected job openings requiring advanced degrees in Oregon, 47% of openings that require a master’s, doctoral, or professional degree are STEM jobs. Forty-nine percent of openings that require a bachelor’s degree, and 58% that require an associate’s degree are STEM jobs. A wide range of STEM jobs exists across all education levels.

Physicians, pharmacists, and physical therapists lead the way among the doctoral or professional degree STEM jobs. At the master’s degree level, postsecondary healthcare specialty teachers and nurse practitioners account for the largest number of STEM jobs. At the bachelor’s degree level, registered nurses, business operations specialists, and software developers dominate STEM jobs. Construction managers, dental hygienists, as well as biological technicians lead the way among the associate degree jobs.

Will We Have Enough?

One reason you may have heard the term STEM is due to the ongoing discussion and concern about whether there will be enough graduates with STEM skills to meet the demand. Education planners and policy makers are working to assure an adequate supply of workers is available to meet the need – not an easy task given the various factors that impact both supply and demand.

Oregon’s STEM Investment Council was established and authorized by House Bill 2636 in 2013 and reports to the Chief Education Officer. The purpose of the Council is to assist Oregon higher education and the Oregon Department of Education with developing and implementing a long-term strategy to promote STEM education. These efforts will help build a foundation of

Southern Oregon Business Journal June 2023 | 23
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awareness and understanding that students can carry with them throughout their education and into their careers.

Employment and Wages

Health care practitioners and technicians, computer and management occupations, and construction occupations dominate the expected job openings during the next decade among STEM jobs, but trained workers will be in demand in all areas.

More than 430,000 job openings due to both growth in the occupation and the need to replace workers who leave the occupation (for retirement, or move to another type of work, for example) are expected between 2021 and 2031. The growth rate for STEM jobs during this period is 12%, which is less than the growth rate for all occupations of 13%. Only 13 STEM occupations are expected to decline during the decade.

high wage (those paying more than the median wage), and high skill (generally occupations with postsecondary training or higher as a typical level to enter the occupation). Most STEM occupations are high wage or high skill, and 112 occupations are high-demand occupations. A total of 92 STEM occupations are high wage, high skill, and high demand.

While there is an investment of time and money in education for most STEM career fields, STEM occupations generally pay well.

The Oregon Employment Department has wage data available for 249 of the 279 STEM occupations analyzed for this article. Of these 249 STEM occupations, 225 occupations

have a higher median wage than Oregon’s median wage for all occupations ($23.46 per hour) in 2022.

Summary

STEM jobs play a vital role in the Oregon economy today and will continue to be important into the future. While STEM jobs tend to require higher levels of education, they also tend to pay well, and the demand is high due to growth as well as the need to replace retiring workers.

May 25, 2023 https://www.qualityinfo.org/-/ 10-year-occupational-projections-for-stemjobs-2

The Oregon Employment Department also categorizes occupations as high demand (occupations with more than the median number of openings),

Southern Oregon Business Journal June 2023 | 25
Photo by Jeswin Thomas on Unsplash

https://www.qualityinfo.org/-/a-closer-look-at-oregon-s-median-household-income-1

A Closer Look at Oregon’s Median Household Income

living quarters. A household can consist of a single family, a person living alone, two or more families living together, or any other group of people who share living arrangements.

People not living in a housing unit are considered to live in group quarters and are not included in the median household income figures. Examples of group quarters include correctional facilities, nursing homes, mental hospitals, college dorms, military barracks, group homes, missions, or shelters.

Income

Income is the money received on a regular basis in the previous year or past 12 months by household members ages 15 years and over. This is before personal income taxes, social security, union dues, and Medicare deductions are removed.

It does not include noncash benefits such as food stamps, health benefits, subsidized housing, or goods produced and consumed on the farm.

Oregon’s median household income reached $81,149 in 2021, which is higher than the U.S. median household income of $70,985. Median household income is an important reflection of economic well-being that’s based on the multiple income streams of people who live together. It can be used to compare the income of Oregonians over time, with the rest of the nation and in other states, among different types of households within Oregon, and in different areas of the state.

Measuring household income isn’t easy. Oregon has only one true median household income, which is unknown, but there are multiple ways to estimate it. This article looks at three sources of median household income estimates from the U.S. Census Bureau because each brings a different strength to the analysis.

Not surprisingly, the different sources create different estimates of household income. Each source shows that Oregon’s median household income isn’t drastically different from the U.S. Having more than one data source can lead to slightly different conclusions about the economy. That’s a good reason to take a closer look at Oregon’s median household income. We need to understand exactly how household income is defined and which source is the best in certain situations.

Let’s start with defining median household income. Then we’ll dig into the numbers.

Median

Median income is the point where half the households earn more and half earn less. If you lined every household up from lowest income to highest income, the median would be the income of the household that’s smack in the center.

Looking at median income instead of average (mean) income is helpful because the measure is less affected by households with extremely high incomes. Income distributions are skewed because they are bound by zero on the low end and essentially unbounded at the high end. The median is a better measure of center in such cases.

Household

There are 1,702,599 households in Oregon with an average size of 2.44 people, almost matching the U.S. average household size of 2.54 people.

A household is all the people who occupy a housing unit, such as a house, an apartment, a mobile home, a group of rooms, or a single room that is a separate

Oregon’s Household Income is Similar to the Nation’s in Most Years

Oregon’s median household income has been very close to the U.S. over the past 30 years. There hasn’t been a statistical difference between Oregon and U.S. household incomes in most years. Over the past decade, Oregon’s job growth was stronger than the U.S. from 2013 until May of 2020. In the three years since, Oregon’s 12-month percent change in payroll employment has lagged the U.S. percentage change in 23 of those 36 months. Oregon ranks 30th fastest out of all states in job growth since the start of the pandemic.

Looking at trends among industry sectors, Oregon’s relatively slower employment growth compared with the nation is primarily due to slower recoveries in health care and leisure and hospitality, but our stronger gains in construction helped offset some of the weakness. Oregon’s private-sector average hourly real wage started rising in 2015, increasing from about $29.00 in the first quarter of 2015 to just over $34.00 per hour by the first quarter of 2023, adjusted for inflation. The Oregon Office of Economic Analysis recently noted, “After adjusting for inflation, total Oregon personal income is 3.5% higher than at the

| Southern Oregon Business Journal June 2023 26 HIGHER EDUCATION

end of 2019 while the U.S. is up 2.6%. Oregon’s income growth ranks 21st fastest across all states. This relative strength is primarily in the non-wage forms of income.”

Personal income data published by the Bureau of Economic Analysis shows that Oregon per capita personal current transfer receipts as well as retirement and other income was higher than the U.S. in 2021. These trends helped propel Oregon’s median income to $68,507 in 2014-2015, higher than the U.S. median household income of $63,049. Oregon’s median remained higher than the U.S. in 2020-2021, coming in at $81,149 compared with the U.S. figure of $70,985.

Historical estimates of median household income are based on the Current Population Survey Annual Social and Economic Supplement (CPS ASEC). Each March, the survey asks a sample of households about their income in the previous year. This is the official source for national median household income estimates and is the recommended source for comparing national income with the states. It’s the source of the median household income figures in this article’s opening paragraph. However, the Census Bureau recommends using two-year averages when looking at state-level income trends prior to 2006.

The Census Bureau redesigned the CPS ASEC income questions starting with the 2013 data. This was done to improve income reporting, increase response rates, reduce reporting errors, and update questions on retirement income and income generated from retirement accounts and all other assets. The redesign created a data series break because data after 2013 is not directly comparable with data before 2013.

Oregon Has the 18th Highest Household Income

Oregon’s median household income ranked 18th in 2021 among the states, Washington, D.C, and Puerto Rico. Median household income is higher in neighboring states California and Washington, and lower in Nevada and Idaho.

about the same as the U.S. income of $69,717, when you consider the margin of error for the Oregon estimate of +/- $1,058. While Oregon’s median household income is higher in both the CPS-based estimates and the ACS estimates, the gap between the two is smaller in the ACS estimates. The difference is due to the number of households surveyed and the way the survey is conducted. For example, the ACS asks about income in the past 12 months, while the CPS asks about income in the previous year.

Income in Oregon isn’t drastically higher than the nation like it is in Maryland, Washington D.C., Massachusetts and New Jersey, or lower than the nation like it is in Mississippi, Arkansas, and West Virginia.

The ACS doesn’t have a long historical series like the CPS does. This makes it impossible to use ACS for long-term comparisons of state and U.S. income levels.

Income Differs Significantly by Type of Household

Out of the 1,649,352 households in Oregon, onefourth of households (397,407) do not have any earnings income. All their income comes from investments (interest, dividends, or net rental income); Social Security; retirement or disability income; public assistance; or other types of income. They do not have earnings from wages or salaries for work performed as an employee, or net income (after expenses) from farm and nonfarm self-employment.

Household income varies by age of the householder. The highest median household incomes occur among householders between the ages of 25 and 44 ($81,572) and 45 and 64 years ($83,627). Median household income is just $38,592 when the householder is under 25 years, and it is $53,732 when the householder is 65 years and over. The householder is the adult in the household who owns or rents the housing unit. It can be either person when the house is owned or rented by a married couple.

Median household income ranges from a high of $91,899 in Washington County to a low of $43,468 in Wheeler County. Oregon’s urban counties tend to have higher median household incomes than rural counties.

The figures used in the national comparison of urban and rural household income are based on data collected by the ACS. For income estimates at the county level, the Census Bureau recommends using figures from the Small Area Income and Poverty Estimates (SAIPE) program. These are model-based estimates that combine data from administrative records, population estimates, the decennial census, and the ACS to produce household income estimates for areas with fewer than 65,000 people.

Oregon’s median household income is pretty close to the national median, and is slightly different depending on which estimate we look at. It’s slightly higher when looking at the official estimate for national household income, as well as when looking at the source that surveys more households. In some years, these comparisons can differ.

Household income can vary a lot depending on the age, race, and ethnicity of the householder. Location makes a difference too, as median incomes vary a lot by state and county, and households in urban counties generally have higher incomes than households in rural counties.

June 1, 2023 by Guy Tauer – Regional Economist –Coos, Curry, Jackson, and Josephine counties –Oregon Employment Department – https:// www.qualityinfo.org/-/a-closer-look-at-oregon-smedian-household-income-1

The Census Bureau recommends using American Community Survey (ACS) estimates to compare median household income between states. The ACS surveys a lot more households (about three million nationally) than the CPS (about 100,000 nationally). The ACS’s larger sample size leads to income estimates with smaller margins of error and makes state comparisons more reliable.

According to ACS estimates for 2021, Oregon’s median household income was $71,562, which is

Although the median household income in Oregon is $71,562, there are significant differences in household income between racial and ethnic groups. Household income is much higher when the householder is Asian ($93,857), and slightly higher than overall when the householder is white and not Hispanic or Latino ($72,853). Household incomes are lower than overall when the household is Black or African American ($60,927), American Indian and Alaska Native ($64,484), or Hispanic or Latino origin of any race ($63,296).

Household Income Highest in Washington County, Lowest in Wheeler County

Southern Oregon Business Journal June 2023 | 27
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As observed in part one of this series, our business world is changing, at times much faster than we want to admit. In the past, it was possible to close off your business systems from the rest of the world. The internet has put an end to that reality; the days of a business working within a closed system are long gone. We now have a plethora of innovative systems, development methods and system vendors to choose from for your enterprise system needs. The question for business leaders is this: When the time comes for you to transition your business systems will you be comfortable with your decisions? (1)

One of most common oversights is that even though a business may recognize the need to upgrade their systems, their approach isn’t forward looking. We buy equipment based upon business growth and customer demand. We ought to use the same approach when it comes to our systems and ensure our assumptions about the future are appropriate. The evolution of enterprise systems (2) has been driven by the recognition that improved

A

new enterprise

system for your business: Dos and Don’ts - Part 2

data-driven decision making is based on the capture of quality data to improve information access and knowledge development. Information, like other company assets, has immense value when properly deployed, safeguarded and maintained.

Last month we looked at planning for what the company needs in the future, e.g. tying business strategy with systems strategy and developing requirements. This month we will look at designing the system to support the new systems strategy.

Architecture

“Unfortunately, we often build our business systems the way we build our cities: over time, without a plan, on top of ruins.”

Caution: Avoid recreating your current situation with new systems. Let’s say as part of your system strategy you decide to buy multiple systems from different vendors in an effort to mirror your current system architecture*. That is, you buy an off the shelf accounting system from vendor “A” to replace the out of date

accounting software you currently use. Next, you select a customer relationship management (CRM) system from vendor “B” to replace the set of customer and sales spreadsheets that your business has accumulated over time. To address product configuration you buy a readymade product configurator from vendor “C”. And on it goes. You replace each major system component in your business with outsourced systems without questioning the assumptions underlying your current system architecture. System architecture is a function of organizational design, so without a clear vision of what your company will need, and customers demand, in the future it is difficult to make valid system decisions. This results in the incremental ‘cut and paste’ approach all too common in transformation efforts. Building the ‘new’ over the top of the old without a plan often results in the waste of time, effort and resources.

*Architecture in a systems sense is the explicit representation of the strategy that underlies the arrangement of components

| Southern Oregon Business Journal June 2023 30
SYSTEMS

in your enterprise system(s) and how they are organized and integrated to support your future needs. If there is no clear vision and plan for how your system supports your future state then, as often happens by default, your current state will most likely becomes the model for the future.

Example

I observed a company close to the end of their years long enterprise systems update journey. They were justifiably proud of a decades-long technology legacy where their talented and long-tenured team created custom applications to fit every business silo need. The leadership, seemingly without a clear business or systems strategy, carried forward their current system architecture (unique applications for each functional silo) by purchasing multiple disparate applications from respectively unique vendors. At the same time old habits die hard and the purchased systems underwent modification. As a result, a challenging systems environment slowly evolved over time, without a clear plan, on the top of the ruins of past systems. The new systems retained enough uniqueness so that data collection efforts relied upon data warehousing approaches reflecting the system architecture of the past.

As a result, three important aspects of system architecture were neglected:

Single Source of Truth. SSoT means that the data that you use to access information, create reports, and maintain business continuity comes from a single source. For example, in the current scenario there existed three unique sets of “customer” information residing in three newly implemented systems serving three different business silos. Without a SSoT framework data quality, standardization, relevance, and reliability are all compromised. Users who access customer information now had three unique “sources of truth”. The result was a problematic master data management situation that created by design, as conflict arose with each siloed business team claiming that their data was the “right” data.

Security means that you can control access to system functionality and information by managing user and user group access. In this situation with multiple disparate systems in place, the effort required to identify, grant access to, and maintain security for all the systems inevitably became unwieldy. It is not hard to imagine how IT security staffing needs and the level of detailed tracking required for each disparate system would grow

to become both onerous and unmanageable.

Interoperability means that users can access and interact with quality information from a single point in a coordinated manner without excessive effort. One of the main benefits of improving systems is to streamline access to information that knowledge workers require to serve internal and external customers. Each time a user has to switch systems, there is lost time – and as Benjamin Franklin reminded us – “Time is Money”. When system users are placed in the difficult position of being required to use the ‘same’ information residing in multiple applications, they are not being set up for success.

Solution

The system strategy outlined above, also known as a “Menu” approach, is often applied in situations where business functions are siloed, operations are static and there is no strong sense of direction. In this dispersed environment, the theory is that by replicating the old systems with closely aligned new systems, limited user adjustments is required. The siloed business structure coupled with a legacy system mindset resulted in limited progress for information users. Also, because integration (both as a business and between

| Southern Oregon Business Journal June 2023 32

systems) was not recognized as a priority from the start, the need to connect and communicate became apparent too late, resulting in time delays and cost overruns. The typical approach taken today by most businesses is a “Global” approach, where a single Enterprise Resource Planning (ERP) system is chosen based upon prioritized future business capabilities and well developed requirements reflecting those capabilities. ERP systems have evolved to support a variety of business approaches and a modern ERP is already integrated to use common data across system modules. As a result, system implementation focuses on configuration (NOT coding) to meet well-defined future needs based upon explicit requirements. With a modern ERP, common data and the SSoT framework is built in, security is simplified under a common system, and users are set up for success because consistent information access allows them to serve customers.

Countermeasure – Define your Architecture

Avoid the temptation to ‘cut and paste’ the new on top of the old. While the temptation to cut and paste from a “Menu” is great, and a comfortable option in the near term, in the long run it is fraught with errors, control problems and

frustration. Your system architecture needs to support your future vision; so put that rear view mirror away and commit to moving forward with a modern system that integrates common data, centralized reporting and simplifies user interfaces, making work and access to information easy, accurate and reliable.

See “Does Your Business Need an Enterprise Systems Strategy?”, in the January 2020 issue of the Southern Oregon Business Journal, https:// southernoregonbusiness.com/ does-your-business-need-anenterprise-systems-strategy/ Enterprise System: Application of complex software that encompasses and integrates business functions. Typically an Enterprise Resource Planning (ERP) System includes modules designed to address unique business functionality (i.e., reporting, sales management, accounting, inventory, production, human resources, materials planning, purchasing, customer service, etc.). Most systems comprise standard modules (“core functionality”) and optional modules to allow flexibility in addressing enterprise specific requirements. Modern systems allow for system configuration (not software coding) at the record, module and system

level through the use of user defined data fields and field behavior, data tables and table relationships, user and group level security and access rules, interface management, and audit tracking capabilities.

© 2023 Praxis Analytics, All Rights Reserved

Jim Myers is the principal of Praxis Analytics, Incorporated and a trusted advisor to business leaders in their quest to transform intentions into results. With experience spanning over two decades, Jim worked in manufacturing, supply chain, customer service and maintenance management roles within markets ranging from capital equipment to aerospace and defense. As Associate Dean of the Atkinson Graduate School of Management at Willamette University Jim led projects that doubled capacity, automated planning/scheduling systems and integrated best practices into school operations. He has taught graduate courses in Operations and Information Technology, Strategy Alignment, and Project Management. A former Marine, Jim credits the USMC with teaching him the value of leadership, quality people, good systems, and mission accomplishment. Jim can be reached at praxis@wvi.com.

Southern Oregon Business Journal June 2023 | 33
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| Southern Oregon Business Journal June 2023 34 REACH YOUR TARGET ADS THROUGH Send your ad copy to: Jim@SouthernOregonBusiness.com Jim Teece - Publisher Thousands of Business People get a chance to see your ad in the monthly Business Journal.
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Don’t Overlook the Most Important

So much of the energy expended by businesses are centered around producing, labelling, shipping, buying, selling, recording, managing, identifying, cataloguing and quantifying…… every aspect of the business operation. The weighted emphasis placed on the ‘How of Things’ can shift management’s perception of

what the business actually is and does. In some cases, your business becomes what you perceive it to be, not necessarily what it actually is in fact.

Let’s add people back into the business equation. Not necessarily your production or administrative staff, but in this instance, your most valuable human resource: your

customers! You are glad to have them as they add to the bottom-line and give your business purpose to exist. They are a fickle group behaving like a herd at times, veering off one path to another. Taking it for granted that your customer base is forever stable is to invite disaster.

One of the traits of successful businesses which have

| Southern Oregon Business Journal June 2023 36
SMALL BUSINESS DEVELOPMENT CENTER

endured years or decades of existence is the fact that their clients are not taken for granted. A continuing effort is expended to maintain close connections to their client’s needs and issues so that their clients won’t “Love their competitors more than them”. The constant effort to analyze business performance and monitor customer preferences and purchasing patterns is essential to the longevity and vitality of your business.

This is where market research comes in to assist you in maintaining your client base, or discover who, where and how you might be able to add to your current list of clients. Information to benchmark your operation against your competitors, your industry, or with your past performance can be found through a good market research program. Accumulating and using market research data is an important tool for your use in making business and investment decisions, as well as for understanding the changing interests of your clients.

Market research works with two kinds of data. The first is secondary research, or historic data that is compiled from tax return and industry information. This information is aggregated and made available through commercial databases and is extensive and best for

businesses wanting consumer profile information. This data is less reliable or robust for businesses wanting information on other businesses. The second area, or primary research, is current data collected through direct engagement activities with targeted groups of people that are likely future customers. Examples of this are focus groups and customer surveys. This type of data can be expensive to collect and interpret. Some of this data can be collected from current customers while they are accessing your services or goods by your own staff while they are visiting your business.

Regardless of how you plan to collect information on your market and clients, the fact that you are, or are planning on, using a data-based approach to market retention or development is an important strategic decision that could benefit your company in many ways. Having a factual or well researched approach to business development is a great way to stretch out precious investment resources. Knowing what your customers look like, where they are, and how to communicate with them can save a lot of money, time and effort on your part. Catching trends or having a deeper understanding of your customers buying habits can be

a great advantage in a competitive marketplace.

The Oregon SBDC Network hosts the Market Research Institute (MRI) which compiles and presents market information to businesses throughout the State. It has capabilities for market identification and expansion throughout North America. The MRI also conducts some primary research projects for selected client needs, with surveys being the most common form of primary research carried out by the MRI.

Regardless of whether you are searching the internet for information, for engaging in a secondary research project or funding a primary research project, the fact that you are working to build the information needed to make a rational market-based decision for your businesses continuation or expansion is a bold decisive action. Having this information in hand to use can set your business up for continuing success in the years to come.

Marshall Doak is the Director of the Southern Oregon University Small Business Development Center and a huge supporter of innovation and the community that forms around innovation in the economy. In private practice, he works with businesses that plan to transition to new ownership within the next five years, assisting them to build value that can be converted to retirement income when the business sells. He can be reached through: mdoak06@gmail.com or 541-646-4126.

Southern Oregon Business Journal June 2023 | 37
Photo by Dylan Gillis on Unsplash

When was the last time you read a book?

The weather report says it’s going to rain – snow – freeze and we are preparing for it. Grab an umbrella, bundle up, stay indoors by the heater. Now learn from the experience.

Observation. Just plain paying attention to what is going on around you, then copying things you like. If it makes you feel better, there is a chance it will make someone else feel better too. Well, unless you don’t care how other people will feel. You have your excuses for being impolite, or perhaps you’re a jerk. Elementary training.

Perhaps I expect more of certain people than I should. Maybe I’m in a mood when something occurs that I didn’t expect, like the failure of a “Thank you” for holding a door for someone. Where has courtesy gone? Why don’t people in positions of leadership do a better job of leading? Or teaching?

Lifetime learning is real. As advancements are made in the way things are done our knowledge grows. We become more educated in that activity, often more qualified. Common courtesy, it is often claimed, isn’t that common. At least it isn’t as common as those who are well versed in the expected practices of it would like it to be. How much is it worth for me to be polite?

If being impolite has no cost to me socially, financially, or professionally, perhaps I will decide it isn’t worth my time or effort to learn the practices of being polite. There is just no benefit.

There is evidence that is wrong thinking.

Two people applying for the same job usually have different qualifications for that job. It is a matter of degrees of course. On a scale of 1 to 100 on a preferred employee spectrum one applicant will rate higher than the other. The higher scored applicant is more likely to be hired than the lower ranked applicant. If that hiring ranking is a matter of courtesy that applicant will be hired, the other would not. In this instance there is a benefit to being polite. It has value.

Learning beyond the personal and social activities levels will gradually fade in importance as skill levels needed for employment increase. Skills learned by time, experience, and formal education become more crucial with advancing technologies and professional occupations. We know and understand that. What can be unknown, however, is the relationship between unskilled and skilled labor as technology advances including simple improvements in processes that replace people with machines. Assembly line work is an advancement over production of an item done one at a time. Universal parts that fit all widgets allow automated production to replace workers for the sake of time, number of items made in a specified time, accuracy and cost per unit produced.

Those improvements in production continue to be advanced to levels most of us don’t consider until they are introduced as our replacements. If we are unprepared for the

Training

replacement, we may find ourselves unemployed.

Education and continuous improvement is needed to advance in skills, opportunity, and income. These have always been understood. As automation, robotics and artificial intelligence (AI) force their way into our lives, the on-going learning in our occupations are more than wisdom for our income growth and comfortable living but necessary for survival. The unskilled, repetitious labors of the past are disappearing and being taken over by machines and computers. Earlier in our education we need to accept the reality of learning and education as a lifetime activity and not only a temporary required idea in our childhood years. It is not a choice to be made, that has already been made.

Concern for the so-called disappearing middle class is a result of a lack of preparation for the needed training in the work environment that allows for income growth and affordable living standards. You cannot afford to let your education lapse. You and your family depend on it.

Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a sixyear U.S. Air Force veteran. Ghenderson703@gmail.com

Southern Oregon Business Journal June 2023 | 39
Photo by Daria Nepriakhina � on Unsplash
Insufficient

Unveiling the Crater Foundation’s New

Site: Empowering Education through Online Donations

In an era where technology plays a vital role in shaping philanthropy, the Crater Foundation is stepping into the future with the launch of their brand-new website. Designed and developed by the esteemed team at Project A, Inc., this website not only

showcases the remarkable work of the Crater Foundation but also introduces an innovative online donation platform. With the ability to receive and manage donations for specific scholarships, this platform revolutionizes the way the

Foundation connects with donors and fosters educational opportunities. Let’s delve into the exciting features and functionalities of the Crater Foundation’s new site.

| Southern Oregon Business Journal June 2023 40 WEB LAUNCH

A Collaborative Effort with Project A, Inc.:

Project A, Inc., renowned for its expertise in web development and design, has partnered with the Crater Foundation to create a website that exemplifies professionalism, userfriendliness, and aesthetic appeal. The collaboration ensures a seamless user experience, making it effortless for visitors to navigate the site and support the Foundation’s cause.

Streamlined Donations:

At the heart of the Crater Foundation’s new website lies a state-of-the-art online donation platform. This dynamic giving system enables both recurring and one-time donations, catering to the preferences of individual donors. By simplifying the donation process, it empowers supporters to contribute to specific scholarships with ease.

Enhanced

Donor Experience:

The Crater Foundation’s new website not only streamlines the donation process but also enhances the overall donor experience. Reporting features provide detailed insights into donation history and patterns, allowing the Foundation’s staff to better understand donor preferences and make informed decisions.

Additionally, the automatic correspondence feature ensures that donors receive

personalized acknowledgments, tax information, and updates, fostering a sense of engagement and gratitude.

Exploring the Crater Foundation’s Initiatives:

Beyond its remarkable donation platform, the Crater Foundation’s website serves as a comprehensive resource for individuals interested in learning more about the organization’s initiatives. By visiting the “What We Do” section at https:// craterfoundation.district6.org/ what-we-do/, visitors can explore the Foundation’s various projects, scholarship programs, and the impact they have had on the educational landscape. This section provides an insightful glimpse into the Foundation’s commitment to empowering students and creating opportunities for academic growth. Visitors can also explore the Hall of Fame of past students that have excelled in Achievement or Athletic categories, as well as nominate new students.

Conclusion:

The launch of the Crater Foundation’s new website marks an exciting milestone in their journey towards making quality education accessible to all. Thanks to the collaboration with Project A, Inc., and the implementation of the online

donation platform, the Foundation can now effortlessly connect with donors, receive contributions, and manage scholarships efficiently. With its user-friendly interface, robust reporting capabilities, and personalized correspondence, the site ensures an engaging and rewarding experience for donors. As you explore the Crater Foundation’s new website, join them in their mission to transform lives through education.

To learn more about the Crater Foundation and explore their new website, visit https:// craterfoundation.district6.org/.

Southern Oregon Business Journal June 2023 | 41

4 Reasons Why Your Start-Up Should Attend Business Exhibitions

When you have recently launched a start-up business, you need to take full advantage of all possible opportunities to advertise your business and its products and services to the public, customers, suppliers, potential investors and so on. One interesting approach to advertising your start-up is attending business exhibitions to showcase your start-up and the products and services you offer. Business shows and exhibitions can serve as powerful marketing tools. We have come up with a few reasons why your start-up should consider attending a business exhibition.

An Opportunity to Converse with People Face-to-Face

Marketing virtually online and across social media sites can be extremely effective as it can enable your start-up to instantly connect with millions of potential customers across the globe and grow your customer base at a faster rate. However, during the pandemic, many of us spend hours behind a computer screen working remotely. Now that things have opened up, we can benefit from communicating with people face to face again.

Exhibition stands are a top way to market your business’s products and Services. And having an exhibition stand at a business show will enable you to converse face-to-face with key

players that the success of your start-up will depend on. If you are a start-up business looking to hire an exhibition stand that is easy to put up and available at a reasonable price that’s within your budget, take a look at the Tension Fabric Exhibition Stands from Pinnacle Creative Design Agency.

Make sure you have dressed appropriately, look smart, wear a name badge, and the logo and branding of your start-up are clearly visible to anyone passing by. Making sure you present yourself well, provide plenty of helpful information, and respond politely to any queries will hopefully attract customers and potential investors to your start-up.

Communicate with Customers

Business exhibitions are an excellent opportunity for your start-up to acquire new customers or even address any queries or grievances from your existing customers. You should definitely put effort into focussing on promoting your start-up’s latest promotions, deals, and discounts with all individuals you speak with, as anyone can be converted instantly into a customer of yours. To maximise the number of new customers you are able to attract through your exhibition stand, you must do a lot of planning. The planning process before an exhibition should focus on things such as logistics, setting clear goals, doing lots of market research into your

competitors, supplying plenty of information on your products and services such as booklets, designing your stand and finding a reliable stand provider.

Communicate with Your Business’s Key Stakeholders

In order for business operations to run successfully, start-up businesses need to go and develop strong relationships with key stakeholders. Start-up businesses must form ties and crucial relationships with suppliers, investors, customers, manufacturers, business partners, employees, government agencies and so on. What better way to find critical stakeholders for your start-up than at a busy, exciting business exhibition?

Attract Potential Investors

Launching a start-up business comes with various potential risks and rewards. However, one of the main risks of a start-up is that it won’t be able to raise enough funds to survive. Business exhibitions are an ideal occasion to get chatting about your start-up business with potential investors.

The effectiveness of business exhibitions should not be underestimated. They are a viable marketing method and allow start-ups to network and form much-needed connections with influential people that could support the business.

| Southern Oregon Business Journal June 2023 42 START-UPS

5 Benefits of Outsourcing IT Support for Startups

If you’ve come up with a business idea that you want to share with the world, it may be time to get the wheels in motion and launch your startup. Once you’ve gone through the planning stages and are ready for your business to go live, it’s time to think about other factors that need to run alongside your operation, such as IT support.

Your IT infrastructure needs to be top-notch, so here are some key benefits you can gain from outsourcing your IT support.

Free Up Time

When you are launching a startup and making it a success, there is only so much time in the day. If you’re not the most tech-savvy, the idea of running your own IT department may fill you with dread. You don’t want to waste time doing something you’re not experienced in. However, outsourcing your IT support to the experts can free up time, meaning they can handle the tech work, while you can focus on making your startup a money-making venture.

Save Money

In an ideal world, you would have the best technology in place to support your system. However, setting up your own infrastructure can cost a ton of money, and if you’re a small business, you may not have the funds in place to do so. To save money and put your cash to better things, you can outsource your IT support instead. What’s more, you’ll only pay for the level of service you require.

Protect Your Business Network

If you have plans to launch a startup and operate online, unfortunately, you need to be aware of cybercriminals. As a small company, you may not have the resources or money to shell out on the best security software. Should you choose to outsource your IT support, a specialist team can stop problems from occurring before they even arise. This means you’ll have excellent protection from hackers on the internet and malware.

Get 24/7 Support

When a problem strikes in your startup, you’ll want it to be sorted out immediately. However, if you have an in-house IT team who work the typical 9-5 shift, they may well have gone home when you need them the most. If you

choose to outsource your IT support London, a service like Totality Services can provide remote and onsite engineer support, 24 hours a day, 7 days a week. This means whatever challenge you’re dealing with, it can be rectified at any time of day or night, which can help reduce stress levels and keep your operation on track.

Safeguard Your Data

When starting out in the business world, you need to be aware of all the important decisions you’ll make. In order to make them, you’ll need to have reliable data on hand. Although it’s pretty easy to get data, you can lose it within seconds. If you outsource your IT support, they will put a backup system in place which will protect your information. Should an accident occur, you can retrieve data within a matter of seconds.

As a startup owner, you may not be aware of just how much work is involved in running an IT department. Outsourcing your IT support will allow you to concentrate on other aspects of your company, helping to make it a success.

Southern Oregon Business Journal June 2023 | 43 START-UPS
Photo by Marvin Meyer on Unsplash

Trever Yarrish, Grants Pass based CEO & Co-Founder at ZEAL and Founder at the Hivve shares his VISION of AI

Last month I did a feature article on Nathan Miller who started a business in Grants Pass and it has grown into a high performance company. I received a lot of great feedback on the story, not only because it was inspiring, but because it’s a master class on things we can all be doing to make our companies better, faster & stronger.

I had a chance to visit Grants Pass again the other day. This time to visit with my friend Trever Yarrish at

Coding Zeal and The Hivve. The Hivve has expanded since the last time I was there. The live entertainment venue has grown in size and sophistication and the coworking space more than doubled in size and it’s full of young, vibrant entrepreneurs.

You remember Trever, he and I did a TedX talk a couple years ago about the future impacted by AI and how we will all need to retrain ourselves as AI becomes more mainstream.

Well this year with ChatGPT in the wild AI has become reality and it’s staggering to think about its impact. So Trever and I had a great lunch and I asked him what he thought was going to happen. I didn’t prepare him beforehand but he clearly has been deep diving on this.

He started by saying it all comes down to “language”. What we see today is just the emerging ability and we are all worried about the ethics behind it all, in the the end, its

| Southern Oregon Business Journal June 2023 44
AI

our language that drives it. “We inspire the conversation” Trever told me as I tried hard to understand what he was talking about.

His eyes were gleaming and his mind on fire as he shared with me the new philosophy that he sees coming from this new era that “we” created.

“Today AI can deep fake your face, your writing, and your voice” based on what it reads, watches and learns online or how you train it. So now we will start asking ourselves why we need to hire specific people when AI can mimic them entirely.

He made me stop and think. I used ChatGPT to take over the March issue and that’s about the extent to the use I had for it. We started using it to write press releases about websites we launched for clients at ProjectA.com. I also used it once to help a friend ask how to structure a legacy giving program for a nonprofit. One reader wrote that she was disappointed that I used AI and she will stop reading because of it. I thought that she must not use Facebook, Google, Netflix, Spell Check, Grammar Checker, Online Banking, or a mobile phone if she is against AI, because each of those are built on it and are used by billions of people, every day.

But that’s it. I played with it. I had fun with it in the one issue and then I went back to reality.

But Trever went deeper. He has been watching the experts share the challenges and opportunities that will come from AI. He shared with me that scientists have had machine learning working for decades and the new Large Language Models (LLMs) are a newer development, but have kept them under wraps

because of the potential repercussions of releasing these AI tools too soon to the public.

“Now it’s an arms race” Trever told me several times in his excitement. The fabric of human knowledge is now available but we wonder how it will handle the core of humanity and how it handles intimacy, feelings and fear.

Google knows it’s reign is ending if they do not evolve their products. We won't search anymore. We will just ask for something to get done and it will get done. You won’t need to search for the answer or the phone number or the address. Schedule my Dentist Appt. Find a place that will pick up my dry cleaning and have it back to me tomorrow. Set up a dinner date with my friends, make reservations at some fun place with great ratings but none of us have been to in over a year if at all and makes sure they know about everyone's allergies.

Since Trever runs both a software development company (Zeal) like mine as well as a live music venue, The Hivve, I asked him about AI and creativity and live performances.

“Humans love sideshows, always have and they always will and since AI will be able to produce music, art, creative writing, and video, the space for humans will still be in live performance and those who appreciate human creativity. No one enjoys watching a player piano for long, but a human pianist can be captivating for hours”. When I asked him to explain, he shared with me what happened when AI was used to reproduce Drake’s voice in a new song that sounds like and feels like Drake and that the Drake fans loved and downloaded millions and millions of times.

“What is Art?” Trever shares while spinning his fingers in the air like he is turning an invisible knob.

“Inspiration meets Skill and Ability. You can turn anyone of those knobs and get different results. You get art. But Skill and Ability are what AI is perfectly suited for. Now if AI can achieve inspiration from other art, or nature or books or travel and creates something, isn’t that art?”

I asked him if he is worried about AI. “There are three outcomes. It can do pest control on us. We are ants to it. If we are in its way, it could find a way to control us to get us out of its way. It can also ignore us and grow around us. And it can also leave. It doesn’t need us. One day, it could just be gone.”

“It” is what I was fascinated most with what Trever saw in his mind. He sees AI as “It”.

We weren’t drinking beer but I wish we were.

“The thing you have to remember is that when one bot learns, all bots learn.” If 1,000 bots perform a function without instruction they will all get it wrong, until one bot discovers how to do the function and can do it over and over again and then it shares this knowledge with all the rest and then instantly they all know how to do it.

I drove home after our lunch, inspired as I always am after spending time with him but also a little afraid. Not of what AI will do, but what will humanity do, with it.

Southern Oregon Business Journal June 2023 | 45

EDUCATION & ENERGY

https://news.sou.edu/2023/06/sou-receives-additional-1-

SOU receives additional $1 million in state support for solar arrays

SOU will continue to implement energy conservation and energy efficiency measures as it increases its solar power production. SOU’s Hawk Dining Commons and McLoughlin Residence Hall each have solar hot water systems installed to augment their natural gas domestic water heating, and the campus has three net-zero buildings – they create as much or more energy than they use. The university is also a partner in the DOE’s Better Climate Challenge, which supports SOU’s 2033 goals to reduce Scope 1 and Scope 2 greenhouse gas emissions by 50 percent from a 2018 baseline, and to reduce energy intensity by 25 percent from a 2022 baseline.

(Ashland, Ore.) — Southern Oregon University continues to leverage state and federal support for renewable energy projects, with the Oregon Department of Energy announcing last week that the university will be awarded a $1 million grant for the second straight year to build solar arrays on campus. SOU also received a $2 million congressional appropriation in December to help pay for its bid to become the nation’s first public university to produce all of the daytime electricity used on its campus.

The energy department’s Community Renewable Energy Grant Program awarded a total of $12 million to 39 recipients – Tribes, public bodies and consumer-owned utilities – to support planning and construction of renewable energy or energy resilience projects. SOU’s is one of seven projects that were awarded grants in the neighborhood of $1 million each.

“This grant award speaks volumes about our identity as a public university,” President Rick Bailey said. “This is who we are – fiscally innovative, environmentally sensitive and always mindful of our students and their experiences on our campus.

“This grant and other current and future funding opportunities will allow us to reduce our dependence on tuition as a revenue source, and increase accessibility and affordability for students throughout our state and region.”

The most recent ODE grant will help pay for SOU’s first parking lot solar array, which will consist of solar panels on steel structures in a lot adjacent to The Hawk Dining Commons. The structures will provide shading in addition to power generation, and the project will also pay for eight new electric vehicle charging ports – expanding the university’s total number of EV ports to 20.

Last year’s first-round grant in ODE’s Community Renewable Energy Grant Program – along with federal funding and a contribution from the Student Green Fund – will pay for solar installations on The Hawk Dining Commons and the Lithia Motors Pavilion/Student Recreation Center complex, and a battery storage facility to enhance community resilience. The $2 million congressional allocation will help pay for additional solar arrays on SOU’s parking lots and rooftops.

“Our momentum toward energy independence is very exciting and will be a game-changer for our university,” SOU Sustainability Director Becs Walker said. “We plan to be producing all of our own electricity within about 10 years, and ultimately to become a carbon net zero campus . This progress demonstrates our leadership in sustainability and the transition of the energy infrastructure.

Energy self-sufficiency will save SOU at least $700,000 per year in utility costs and President Bailey plans to expand the program from there, with additional solar installations and partnerships to further build energy and community resilience. He achieved that on a smaller scale at Northern New Mexico College, where he served as president before being hired at SOU in January 2022.

The current solar projects will increase SOU’s generating capacity to about 16 percent of the electricity it uses on campus.

The university has nine solar arrays on its Ashland campus with a total output of 455 kilowatts, plus an array at the Higher Education Center in Medford and a pole-mounted array installed by a nonprofit on land leased from SOU. The two new arrays supported by the state grants will increase SOU’s solar capacity by a total of 359 kilowatts.

Solar energy production is a key part of SOU’s plan to develop new, entrepreneurial revenue streams and reduce dependence on the two traditional funding sources for public higher education nationwide –tuition and state funding. The university has also begun a project to demolish the vacant Cascade housing complex and replace it with a senior living facility that produces partnerships between its residents and the university. Funding for the demolition has been approved by the state and is expected to begin in the next several months.

Other projects that will produce revenue or reduce expenses for SOU include the establishment of a University Business District in southeast Ashland –discussions are underway with the local business community – and replacement of its operational software with the cutting-edge Workday platform, which eventually will save the university about $750,000 per year in recurring costs.

ODE’s Community Renewable Energy Grant Program was created by the 2021 Legislature, which set aside $50 million for projects throughout the state over three years – with $12 million available in the current funding cycle. The program is intended to build energy and community resilience in rural, underserved areas, reduce greenhouse gas emissions and help to rewire America through the expansion of solar energy generation and electric vehicle charging infrastructure.

| Southern Oregon Business Journal June 2023 46
million-in-state-support-for-solar-arrays/

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