Southern Oregon Business Journal - January 2021 by Southern Oregon Business Journal

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January 2021

SPECIAL SECTION THE TOP 10 MOST READ ONLINE ARTICLES OF 2020 PAGE 40

Sponsored by

12 THINGS YOU CAN DO TO FUTURE PROOF YOURSELF PAGE 44

SOUTHERN OREGON BUSINESS AWARDS FOR 2020 PAGE 46

Welcome to 2021 : The VACCINE, The Second STIMULUS, HOUSING SHORTAGES, The State BUDGET & Higher Taxes, and the New New Normal

The Journal for Business in Southern Oregon

SouthernOregonBusiness.com

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.

A Few Words from Jim I’m writing this on the last day of 2020. It’s a fun end to a weird year. From the Global Pandemic, to our community businesses shutting down, to Fires that destroyed so many homes and businesses, to everything else we endured here in Southern Oregon, it’s easy to say good riddance to 2020 and hope for a better 2021, but 2020 wasn’t all bad. In many respects, it was a great year. I made a couple more changes to the “print” layout edition. I hope you like them. 1. There is one. Last month I asked if you would miss the layout if I stopped producing it or are you ok with a normal news website and I heard from several of you asking me to keep the “print” layout edition because you like the curation of it and look and feel of it. So I’ll keep doing one for now. 2. I’m going to work hard to find stories written by companies in the areas we serve. I have one from Medford, Bend, Eugene and Salem in this issue. There is plenty of statewide economic stuff as well, but I like these stories about local businesses and hope to encourage more companies to write them. 3. More sponsors. Last year I got rid of paid subscribers for now and made it all free but I need subscribers to pay for this. People’s Bank stepped up and joined AmeriTitle as monthly sponsors and I am grateful for their support. I now have signed up each of my companies as sponsors as well. Project A, Ashland Home Net, Rogue Broadband and Umpqua Broadband are now monthly sponsors for 2021. I’m doing this to show everyone how much I believe in the power of the journal. It has articles that help small businesses owners understand how to do business successfully in Southern Oregon.

ARCIMOTO ANNOUNCES LATEST MILESTONE IN NATIONWIDE EXPANSION PLAN - PAGE 4

THE DIVERSITY OF OREGON’S INDUSTRIES - PAGE 12

4. More Readers. I’m blown away by the number of readers we have and I’m looking forward to growing this again in 2021. The sponsorship’s listed above pay for marketing and advertising of the journal on social media to get the word out.

Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020. 2 | Southern Oregon Business Journal January 2021

Happy New Year and may 2021 be a year filled with profit, happy customers, great innovative products and services and a few moments of peace as we move forward to heal and do business in the new-new normal ahead. Jim Jim@SouthernOregonBusiness.com Cover Photo Credit : Image by Marc Pascual from Pixabay

OREGON ECONOMIC INDICATORS - OCT’20 RELEASED IN DECEMBER. PAGE 24

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www.SouthernOregonBusiness.com A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

January 2021 - Table of Contents

THE SECOND STIMULUS BILL AND IMPACT ON HOUSING PAGE 6

COMCAST LAUNCHING WIFI-CONNECTED “LIFT ZONES” - PAGE 8

ASPEN DENTAL EXPANDS ACCESS TO DENTAL CARE IN BEND, OR - PAGE 10

GOVERNOR KATE BROWN RELEASES RECOMMENDED BUDGET AND POLICY AGENDA - PAGE 20

OREGON BUSINESS & INDUSTRY STATEMENT ON GOV. KATE BROWN’S PROPOSED 2021-23 BUDGET - PAGE 23

HOW COVID IS CHANGING OUR BUYING HABITS PAGE 16

OREGON CHRISTMAS TREES CREATE JOBS DURING THE HOLIDAY SEASON - PAGE 31

PANDEMIC ENROLLMENT DECLINES AT OREGON COMMUNITY COLLEGES - PAGE 32

LITHIA MOTORS CFO RECOGNIZED AS A LEADING WOMAN IN THE AUTO INDUSTRY - PAGE 38

SOU RETREAT FOR NATIVE AMERICAN YOUTH SPINS OFF MULTIGENERATIONAL PROGRAM PAGE 36

SPECIAL SECTION THE TOP 10 MOST READ ONLINE ARTICLES OF 2020 PAGE 40

12 THINGS YOU CAN DO TO FUTURE PROOF YOURSELF PAGE 44

SOUTHERN OREGON BUSINESS AWARDS FOR 2020 PAGE 46

EUGENE By Megan Kathman Arcimoto PR

4 | Southern Oregon Business Journal January 2021

Arcimoto Announces Latest Milestone in Nationwide Expansion Plan

rcimoto, Inc.® (NASDAQ: FUV), makers of affordable, practical, and joyful pure electric vehicles for everyday commuters and fleets, today announced the next step in its nationwide expansion plan by opening the state of Florida for customer reservations.

Today, Arcimoto began reaching out to early preorder customers with the opportunity to place nonrefundable deposits to reserve the FUV® or the upcoming Arcimoto Roadster. Florida FUV deliveries are anticipated to begin in Q1 2021, and first Roadster deliveries are anticipated to begin later in the year. “Arcimoto vehicles are tailormade for Florida, one of our most popular states in terms of overall preorders,” said Arcimoto Founder and CEO, Mark Frohnmayer. “We designed the FUV and the Roadster to be

incredibly fun, ultra-efficient electric vehicles, and we can’t wait to introduce these one-of-akind joy rides to the Sunshine State. This East Coast beachhead is the first official expansion of our sales territory since the launch of production last year, a significant milestone for our nationwide expansion plan.” Available today and starting at $17,900, the FUV is purpose-built for everyday driving, transforming ordinary trips into pure-electric joyrides. Anticipated to be released in the first half of 2021, the Roadster is designed to be the ultimate on-road fun machine. Final Roadster pricing, options, accessories, and availability will be announced in the coming months. About Arcimoto, Inc. Arcimoto (NASDAQ: FUV) develops and manufactures ultraefficient and affordable electric vehicles to help the world shift to a sustainable transportation

system. Now available to preorder customers on the West Coast, the Arcimoto FUV® is purpose-built for everyday driving, transforming ordinary trips into pure-electric joyrides. Available for preorder, the Deliverator® and Rapid Responder™ provide last-mile delivery and emergency response functionality, respectively, at a fraction of the cost and environmental impact of traditional gas-powered vehicles. Two additional concept prototypes built on the versatile Arcimoto platform are currently in development: the Cameo™, aimed at the film and influencer industry; and the Roadster, designed to be the ultimate onroad fun machine. Every Arcimoto vehicle is built at the Arcimoto Manufacturing Plant in Eugene, Oregon. For more information, please visit Arcimoto.com.

Southern Oregon Business Journal January 2021 | 5

REAL ESTATE By Brad Cartier stessa.com

Diana Olick of CNBC opened up the week with some interesting real estate data to put 2020 to a close. Although mortgage applications fell 5% last week, they are still 26% higher than they were at the same time last year. Refi nance volume jumped 4% as well last week and is still 124% higher than last year. According to a report from Zillow last week, “Very tight inventory, coupled with strong demand from first-time buyers and those reassessing their housing preferences in light of the 6 | Southern Oregon Business Journal January 2021

The second stimulus bill and impact on housing

pandemic meant that the market began to move incredibly fast.”

Recent data from CoreLogic suggests similar competitiveness in the housing market:

CoreLogic concludes that “forsale inventory hit a low in 2020 as many owners postponed listing their homes and buyers were motivated by low interest rates. This inventory shortage has intensified upward pressure on home price appreciation as consumers compete for the limited number of homes on the market.” CNBC’s Olick continues in a separate article that new home sales dropped 11% from October to November, but that sales were still up 21% year-over-year. Finally, Alex Roha of Housing Wire reports on a holiday gift for those seeking mortgages—the lowest rates seen in the 50-year history of Freddie Mac. The average 30-year fixed-rate fell by a basis point to 2.66%, continuing its record 20 consecutive week drop. The second stimulus bill The second stimulus is upon us, and there are certainly some highlights worth noting for real estate investors. Dees Stribling of Bisnow (free subscription required) reports on the following key points: Direct Payments: $300 added to weekly unemployment benefi ts through March 14, and direct payments of $600 to most Americans (increased to $2,000). Rent Relief: The stimulus bill earmarks $25 billion for rental assistance. Households may now receive assistance for up to 15

months. Most of the funds will go to lower-income households or those who have been unemployed for 90 days or more.

well as utilities and other expenses related to housing.”

Evictions: The bill includes an extension of the CDC’s eviction moratorium, to January 31, 2021.

Rounding out the last newsletter of the year are two #LocalNews items that touch on the most talked-about markets of the year: San Francisco and NYC.

Paycheck Protection Program (PPP): For those real estate businesses with employees, the bill includes a second round of PPP loans totalling nearly $300 billion, and boosting PPP loan amounts to 3.5x payroll. According to Kelly Anne Smith of Forbes, for renters to qualify for the new $25 billion in rent relief, the following criteria will need to be met: They have a household income less than 80% of their area’s median income. One or more household members can demonstrate that they’re at risk of experiencing homelessness or housing instability due to a past due utility or rent notice, an eviction notice or living in unsafe or unhealthy living conditions. One or more household members qualify for unemployment benefits or are experiencing financial hardship due to Covid-19. The National Association of Realtors (NAR) noted that this new rent relief allows landlords to apply for the funds on behalf of tenants and can be applied to “payments for rent in arrears as

#LocalNews: The Bay Area and NYC

Zumper reported on the difficulty faced in the Bay area by citing rent data throughout 2020. The report summarizes their findings: The San Francisco Bay Area experienced historic price decreases over the last year. As of November 2020, the median 1-bedroom price in San Francisco has decreased 22.6% from a year ago. In Oakland and San Jose, that median price has decreased 19.0% and 14.7%, respectively. Decreases have slowed somewhat in recent months compared to the Summer and Fall, but there’s no reason at this point to believe that decreases won’t continue in the short term. That being said, as we hear of an exodus from high-priced markets such as the Bay area, Zumper notes that they have also seen a growing interest in new renters moving in. In NYC, we are seeing similar trends. According to a recent New York Times article by Stefanos Chen titled, The Real Estate Collapse of 2020, the NYC real estate scene has rocked in 2020.

Southern Oregon Business Journal January 2021 | 7

SALEM Amy Keiter Director, External Communications Comcast

s part of its ongoing commitment to help connect low-income families to the internet so they can fully participate in distancelearning and the digital economy, Comcast today announced that the Boys and Girls Clubs of Salem, Marion and Polk Counties are the first of a number of Lift Zones in Oregon/SW Washington.

8 | Southern Oregon Business Journal January 2021

Comcast Launching WiFi-Connected â&#x20AC;&#x153;Lift Zonesâ&#x20AC;?

Working with its network of nonprofit partners, Comcast is providing robust WiFi access in safe spaces designed to designed to help lift, or elevate, the experience for students getting online, engaging in distance learning and doing their homework. This initiative provides free connectivity inside various

partner community centers over the next three years. The Boys & Girls Club West Salem branch and the Swegle branch are the first two Lift Zone installed in the Oregon/SW Washington region. A third Lift Zone at the Knudson branch is expected to open shortly. The Clubs provides much-needed help to parents and

guardians by providing a safe place where students can go to connect online each day during normal school hours. The Lift Zones features free WiFi provided by Comcast, which allows students to work on laptops simultaneously. Sue Bloom, CEO of Boys & Girls Club of Salem, Marion and Polk Counties, says she’s honored to be the first Lift Zone sites in Oregon. “These Lift Zones are going to provide a critical service to our Boys & Girls Club kids -the kids who need us most -- in support of their virtual learning, and we can’t wait to see how this improves their learning experience.”

Washington. “The COVID-19 crisis continues to put many lowincome students at risk of being left behind, accelerating the need for comprehensive digital equity and Internet adoption programs to support them. We hope these Lift Zones will help those students who, for a variety of reasons, are unable to connect to effective distance learning at home.” Tashjian is personally committed to the mission of the Boys and Girls Clubs: he is joining the board of the Boys and Girls Clubs of the Portland Metropolitan Area in January.

About Comcast Corporation Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with three primary businesses: Comcast Cable, NBCUniversal, and Sky. Comcast Cable is one of the United States’ largest video, highspeed Internet, and phone providers to residential customers under the Xfinity brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the Xfinity brand. NBCUniversal is global and operates news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Sky is one of Europe's leading media and entertainment companies, connecting customers to a broad range of video content through its pay television services. It also provides communications services, including residential high-speed Internet, phone, and wireless services. Sky operates the Sky News broadcast network and sports and entertainment networks, produces original content, and has exclusive content rights.

“We are proud to partner with community organizations like the Boys and Girls Clubs in the effort to enable kids to keep up with their schoolwork”

Salem Mayor Chuck Bennett says, “I want to commend Comcast for developing the Lift Zone initiative and I am honored that Salem has been selected to kick off this much needed resource for Salem area students. I know many have struggled with getting their schoolwork done in a distance learning environment, and I’m confident that the Lift Zones at the Salem area Boys and Girls Clubs will prove to be an invaluable resource in the community to help get students connected.” “We are proud to partner with community organizations like the Boys and Girls Clubs in the effort to enable kids to keep up with their schoolwork,” said David Tashjian, regional vice president, Comcast Oregon/SW

Several more Lift Zone sites are currently under consideration, with the goal of having 10 locations installed by early 2021. In addition, Comcast recently announced that it is extending its offer of 60 days of free internet access to low-income customers through its program, and free access to all outdoor WiFi hotspots until June 30, 2021. Lift Zone sites complement Internet Essentials, which has helped connect more than 8 million lowincome people to the Internet at home, including more than 52,000 families in Oregon/SW Washington.

Visit www.comcastcorporation.com for more information.

Southern Oregon Business Journal January 2021 | 9

BEND Amanda Crane amanda@curleycompany.com

spen Dental has officially opened its doors in Bend, Oregon with the opening of a brand-new office, bringing a new local dentist to their community. This is the 15th Aspen Dental practice in the state of Oregon, as Aspen Dental continues to break down barriers

10 | Southern Oregon Business Journal January 2021

Aspen Dental Expands Access to Dental Care in Bend, OR

and bring comprehensive, affordable care to patients across the country. Located at 3211 N. Hwy 97, the office is led by Dr. Jonathan Garcia, who received his DDS degree from Loma Linda School of Dentistry. Dr. Garcia and his team will provide a full range of

dental services ranging from preventive care and general dentistry to dentures and restoration. Independently-owned and operated, Aspen Dental offices offer patient-friendly programs and services that make it easier

for patients to get the dental care they need, including: Personalized treatment and friendly service. Each patient receives a comprehensive diagnosis and treatment plan designed by the dentist, with long-term oral and overall health in mind. Available services may include hygiene, treatment of periodontal (gum) disease, clear aligners, implants, extractions, fillings, oral surgery, whitening, and crown and bridge work. Affordable dental care. Aspen Dental practices are committed to keeping prices low so that patients can get the care they need. The practice works with all insurance providers and handles the paperwork, saving patients time and hassle, and offers free new-patient exams and X-rays for patients without dental insurance. And since no one likes an unexpected bill, the practice offers a clear, detailed estimate on the cost of treatment to give patients peace of mind. On-site denture labs and Denture Money Back Guarantee. Every Aspen Dental practice is equipped with an on-site denture laboratory, which helps facilitate quick turnaround for denture repairs, relines or adjustments. Patients choose Aspen Dental for the seven styles of full and partial dentures and have the comfort of knowing that the supportive dentists and staff will go above and beyond to ensure proper fit and comfort of their customcrafted dentures. Getting used to

dentures takes some time, but if patients are dissatisfied with their dentures for any reason â&#x20AC;&#x201C; the practice will refund the cost of the dentures when patients return them within 90 days under the Aspen Dental Denture Money Back Guarantee. Convenient hours and location. The office will be open extended hours, including evenings and select Saturdays, so that patients can see the dentist at a time that works best for their schedule. Walk-in and emergency patients are welcome. Office hours will be Mondays through Wednesdays from 7:30am to 5:30pm, Thursdays from 10am to 8pm, and Fridays from 8am to 1pm. To make a dental appointment, patients can go to www.aspendental.com and click on Schedule a New Patient Appointment; or call (541) 640-4584 or 800-ASPEN DENTAL (800-277-3633). Aspen Dental is also taking proactive steps so that patients, care teams and communities have a safe, clean care environment for all their dental needs, including with opening new practices. You can learn more about our health and safety protocol through our Smile Wide, Smile Safe Promise. About Aspen Dental The Aspen Dental network includes more than 850 offices, in 42 states, owned and operated by independent practice owners and dentists, who operate with

clinical autonomy and share a commitment to creating access to care for those who need it most. These independent practice owners supported 5.5 million patient visits in 2019, based on the belief that everyone has the right to quality, affordable oral health care. Each dental care team offers patients a safe, welcoming, judgment-free environment to address their dental challenges, including comprehensive exams, cleanings, extractions, fillings, periodontal treatment, whitening, oral surgery, crown and bridge work, and denture services. https:// www.aspendental.com/ About Aspen Dental Management, Inc. (ADMI) ADMI is the Dental Support Organization (DSO) that offers a full range of essential business support services to the independent dental practice owners in the Aspen Dental network. Service availability includes: location selection, leasing, outfitting each practice with state-of-the art equipment, billing and collection, human resources support, finance, accounting and marketing. Support from ADMI allows the dental care teams, who practice with clinical autonomy, to focus on delivering the high-quality patient care that patients expect in todayâ&#x20AC;&#x2122;s changing healthcare landscape.

Southern Oregon Business Journal January 2021 | 11

EMPLOYMENT by Kale Donnelly State of Oregon Employment Department Workforce Analyst Crook, Deschutes, Gilliam, Hood River, Jefferson, Sherman, Wasco, and Wheeler counties kale.donnelly@oregon.gov

It should be noted that the racial and ethnic diversity of Oregon’s total nonfarm employment pales in comparison with the United States. The private sector of the U.S. in 2019 was comprised of a more racially diverse set of workers, with 24 percent nonwhite employment compared

12 | Southern Oregon Business Journal January 2021

The Diversity of Oregon’s Industries

with Oregon’s 14 percent. Moreover, the ethnic diversity of the U.S. is more robust than Oregon – 17 percent of private employment is held by Hispanic or Latino workers compared with Oregon’s 13 percent share among the cohort. These metrics are almost entirely due to the

demographical makeup of our state’s population. Still, even with somewhat limited diversity in Oregon’s total nonfarm employment, it’s worth observing which industries are most diverse, and examining how diversity by industry could potentially lend itself to an inequitable recovery

following the initial impacts of COVID-19. Race For this article’s definition of diversity, we’re looking at the industries with the greatest shares of people of color on average in 2019. Some of Oregon’s most racially diverse industries include accommodation and food services (17.1% share of people of color), manufacturing (16.6%), management of companies and enterprises (15.5%), administrative and waste services (14.4%), and health care and social assistance (14.2%). These are aggregate measures, but the differing industry shares of employment by each race is where the real differences lie. For example, Asian workers hold 5 percent of Oregon’s total nonfarm employment. However, their highest shares of industry employment lie in manufacturing (9.3%); management of companies and enterprises (7.5%); and professional, scientific, and technical services (7.0%). Black or African American employment in Oregon is aggregated at 3 percent, while their shares of industry employment are highest in administrative and waste services (4.7%); transportation and warehousing (4.3%); and health care and social assistance (3.6%) American Indian or Alaska Native workers account for 2 percent of Oregon’s employment. Their

highest shares of industry employment are in public administration (2.7%); agriculture, forestry, fishing and hunting (2.2%); and accommodation and food services (2.1%). Native Hawaiian or Other Pacific Islander employment in Oregon accounts for just 0.5 percent of total employment. However, this cohort’s share of industry employment is highest in transportation and warehousing (0.9%); manufacturing (0.6%); and administrative and waste services (0.6%). Workers who identify as two or more race groups comprise 3 percent of Oregon’s total nonfarm employment. Their highest shares of industry employment are in accommodation and food services (4.5%); arts, entertainment, and recreation (4.0%); and retail trade (3.8%) Throughout these racial employment trends, we can see that each race’s industry trends shape the overall diversity of Oregon’s industries. The least racially diverse industries are the ones with the least representation of all races. In other words, the industries that have the greatest shares of white employment. These industries include educational services (89.3% white); real estate and rental and leasing (89.3% white); construction (91.7% white); utilities (92.0% white); and mining, quarrying, and oil and gas extraction (94.4% white).

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Ethnicity Southern Oregon Business Journal January 2021 | 13

Looking at the ethnic diversity of Oregonâ&#x20AC;&#x2122;s industries, we see a similar trend in many industries for their lack of diversity, but others make some significant shifts. Comparing which industries have a higher share of Hispanic or Latino employment, we see that some are significantly more diverse than others. The industries with the greatest share of ethnic diversity include agriculture, forestry, fishing and hunting (33.5% Hispanic or Latino employment); 14 | Southern Oregon Business Journal January 2021

accommodation and food services (17.1%); administrative and waste services (15.9%); manufacturing (15.4%); and construction (13.1%). One important detail to note is that most agricultural employment is not captured in our traditional employment metrics since the majority of the industryâ&#x20AC;&#x2122;s employment isnâ&#x20AC;&#x2122;t covered by unemployment insurance. Therefore, the share of diverse employment in agriculture is likely understated in these graphs since they only capture a fraction of overall industry employment in the state.

Job Recoveries in the Most Diverse Industries Some of the industries that are the most ethnically diverse, or rather in the top half of the ethnic diversity graph, were also some of the most racially diverse industries. This includes accommodation and food services, manufacturing, administrative and waste services, and health care and social assistance. Unfortunately, the industry that is the most racially diverse, and the

second most ethnically diverse, is having a difficult time recovering after the initial COVID-19 impacts. Accommodation and food services shed more than half of its jobs in the initial months of COVID-19, and is still down 21 percent from its February employment levels as of October. As restaurant employers in this industry have been able to move part of their operations outside during the warm summer months, this allowed them to increase their patronage and keep staff on payroll. As the colder months of winter roll into Oregon, the harsh weather likely won’t allow restaurant owners to comfortably accommodate outdoor dining. This second blow to the restaurant industry will further hamper the accommodation and food industry’s ability to quickly recover the jobs it shed between March and April. Another industry that ranks high in its diversity is manufacturing (2nd racially and 4th ethnically). The manufacturing industry shed 8 percent of its jobs at the onset of COVID-19 restrictions, and has only recovered a small fraction of those jobs since then. Still down 7.6 percent from February, the manufacturing industry’s lack of momentum in its recovery has a sizeable impact on the diverse workforce it employs. Sex Industry employment among the sexes also differs significantly in Oregon. Women’s COVID-19

experience has differed from that of men’s, and much of that has to do with the industries in which they’re employed at a greater rate than men. Gail Krumenauer, State Employment Economist, covers this piece of diversity and the impacts for each sex in her article “Disparate Impact: COVID-19 Job Losses by Sector and Gender in Oregon.” The Beauty of the World Lies in the Diversity of its People Oregon may not be at the top of the list of states with the most diverse workforce. However, it has made progress as decades have passed. In 1999, people of color held only 8.8 percent of total nonfarm employment. In 2019, that share has increased by nearly 5 percentage points to 13.3 percent. With respect to ethnic diversity in employment, Oregon’s share of Hispanic or Latino employment was only 6.4 percent in 1999. As of 2019, that share has almost doubled to 12.4 percent of total nonfarm employment. Diversity – in all its forms – is beneficial for all involved. It enhances creativity, encourages an array of perspectives, and leads to better decision-making and problem solving. People of different backgrounds, cultures, and experiences coming together can be quite a powerful thing in building a more balanced labor force.

Southern Oregon Business Journal January 2021 | 15

FEATURE

By Josh Lehner, Oregon Office of Economic Analysis

HOW COVID IS CHANGING OUR BUYING HABITS

Image by Mediamodifier from Pixabay

K, this was fun. Willamette Week is out with a set of articles highlighting some of the sectors of the economy that are doing quite well this year, despite the pandemic and recession. My hatâ&#x20AC;&#x2122;s off the Aaron Mesh and company for their ability to turn my spreadsheet of figures into coherent, local stories. But in general, I appreciated the request about which sectors are doing well because it allowed me to clarify my thoughts and better think through some of the changes we have seen so far this

16 | Southern Oregon Business Journal January 2021

year. Last month we posted a chart showing industries that have seen job growth this year and noted a lot of them are related to e-commerce and the housing market. We fleshed out the discussion a bit further in our latest forecast document, but today I wanted to really dive into the figures a bit. First, the main reason consumer spending has held up relatively well this year is the fact that incomes have. In fact incomes for the majority of households are flat, or up, allowing us to continue

to buy things. The top line in the chart below shows total income across the country (we get 2020q3 Oregon data in a couple weeks). The main reason it is higher is due to the one-time recovery rebates back in the spring, plus the expanded unemployment insurance benefits. However even if we exclude the federal support, incomes in October were essentially back to where they were prior to the pandemic (-0.17%). Total consumer spending has rebounded accordingly. The fact that

spending is still a bit weaker than incomes, means household savings is growing. Latest figures indicate Americans have saved nearly $1.5 trillion extra so far this year. That savings is literally just sitting in bank accounts at the moment and will be a key source growth next year, when the pandemic wanes. What has changed, however, are the things we are buying. We are no longer going out to eat, to the movies, on vacations, getting hair cuts or our nails done like we used to. These activities were highly visible parts of what we did on a regular basis and today we are not doing them much. We can certainly feel this, and notice these activities are missing in our lives. But what it also did was free up a lot of money to spend on anything and everything else that doesn’t require a lot of in-person interaction. Mostly, this means

physical goods we can order online. Many of these things help spruce up our apartments and homes where we are spending more time, or help pass that time at home. In the chart below the bubbles shows different categories of consumer spending. On the x-axis going left and right, is growth in these categories in recent years prior to the pandemic. This is sort of the baseline of what one would expect sales in 2020 to look like absent COVID. On the y-axis going up and down is growth over the past 12 months. Nearly everything above the horizontal 0% line isn’t just up over the past year, but it’s up even more than pre-COVID expectations would indicate. Sales of everything below the horizontal 0% are down.

A few notes on some of these categories: In terms of food, we are clearing going out to eat a lot less. This means grocery sales are up as we cook at home more. Interestingly enough sales of vegetables, meat, dairy, etc are up the most while sugar and sweets are up the least. This points to us really cooking at home and not just buying more junk food to keep us company. Even so, pandemic fatigue has set in. We are not cooking at home quite as much as we did back in the spring. In the past handful of months, we have begun going out to eat more, even if it’s primarily takeout, and fast food, which is now positive on a year-over-year basis. Activities at home primarily include things that help us enjoy our time indoors more and include audio/visual equipment, computers, TVs, internet and streaming services, but also sewing, magazines, books, musical instruments, and games, toys, and hobbies. Remodel and furnishings include furniture, carpet, windows, appliances, dishes, glassware, tools, gardening supplies, and plants. I suspect some of this is we are sitting around more at home and notice things that could be upgraded, or projects we’ve been Southern Oregon Business Journal January 2021 | 17

meaning to get around to but now have the time to do so. Outdoor recreation includes sporting equipment, camping equipment, RVs, boats, bikes and the like. As we move into winter this will include skis, snowmobiles, sleds, and so forth. The demand here is up likely due to being spaced further apart outside is less of a risk and is something fun to do. If weâ&#x20AC;&#x2122;re spending more time at home that means we are also cleaning and grooming more at home. Sales of household 18 | Southern Oregon Business Journal January 2021

cleaning products, toilet paper, and personal care products like shampoo, shaving-related items are up, as are pharmaceuticals both prescription and over the counter medicines. Now, one type of spending where sales are not up includes clothes and shoes (not shown on the chart). I suspect some of this is because we like to try these on in the store. Online returns, however seamless, still require some effort and waiting a few days. Clothes and shoe sales may also be down because we are missing out on

special events where we buy a new shirt, a new dress or the like. This may include weddings, holidays, school events, and even traditional back to school shopping. Such activities are fewer in number this year, or at least the gatherings are smaller in size. Finally, the pandemic appears to have accelerated the growth in ecommerce at the expense of traditional brick and mortar. Of course this has been going on for a long time, but the shifts so far this year are larger than we have

seen before, likely because we try not to venture out as much and are stuck inside, browsing the internet to a higher degree. As such, these online sales do translate into more jobs related to moving, storing, and delivering the products. Since the start of the pandemic, Oregon e-commerce and related jobs are up 6,000, while brick and mortar retailers are down nearly 5,000 jobs, which even includes the growth at warehouse clubs. The ecommerce employment data is confirmed by growth in weightmile taxes paid by truckers moving products into and across Oregon. Overall, these sectors are expected to grow in the years ahead. That said, e-commerceâ&#x20AC;&#x2122;s share of overall retail sales will

drop in the year ahead when consumers feel confident again going out shopping like they used to. However, long-term trends all point toward sustained, future growth in e-commerce sales. In fact, many of the new business applications nationwide are for firms looking to focus on online sales. All told, given incomes have largely held up so far this year, consumer spending has as well. We are clearly missing many of our normal social activities, and our spending has largely revolved around finding other ways to enjoy pass the time during the pandemic. I do believe there is strong pent-up demand for going out to eat, to the movies, on

vacations, to the salon and the like. Of course this demand will not fully return until it is safe to do so. But when it is safe â&#x20AC;&#x201D; and vaccines start in a matter of days, although it will be months before most of us get them â&#x20AC;&#x201D; we will see a big shift back into these inperson activities. This shift will be pro-growth and pro-jobs. Even as spending on physical goods reverts back to trend, or below it for a period of time, there is unlikely to be a major impact on jobs as much of the growth is in warehousing and delivery, which were already long-run growth sectors.

Southern Oregon Business Journal January 2021 | 19

STATE GOVERNMENT BY STATE OF OREGON NEWSROOM ON DECEMBER 1, 2020

Governor Kate Brown Releases Recommended Budget and Policy Agenda

Budget focuses on addressing key challenges facing Oregonians to build a stronger, fairer, and more resilient state

overnor Kate Brown released her recommended budget and policy agenda for the 2021-23 biennium, which focuses on the key challenges facing Oregonians: the public health and economic impacts of the COVID-19 pandemic, recovery from the devastating 2020 wildfire

season, and taking steps to end systemic racism and address racial disparities in Oregon. “2020 has challenged Oregon in unimaginable ways. We have been tested to the core, and the most vital needs of Oregon families — health, safety, education, housing, and the ability to earn a living — have all been challenged in new ways,” said Governor Brown. “I have been awe-inspired by Oregonians who have stepped up at every turn to protect their friends, families and neighbors. The compassionate spirit of our state has shined through. Oregon has proven to be a port in the storm.” “Through it all, we are determined to rise, and rebuild. And as we do, we must ensure the future is a just one; that we create an Oregon where everyone has the opportunity to thrive. Where every voice is heard.” In 2020, Governor Brown convened a Racial Justice Council with leaders from Oregon’s Black, Indigenous, Latino, Latina, Latinx, Asian, Pacific Islander,

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immigrant, refugee, Native American, and Tribal communities to develop specific investments and policy proposals to begin to dismantle systemic racism in Oregon. Those proposals are interwoven throughout the Governor’s recommended budget and policy agenda. The Governor’s main budget and policy areas include: • Ensuring all Oregonians’ basic needs are met. After a year in which Oregon families have had their daily lives upended, this budget prioritizes making sure Oregonians have their most basic needs met: a warm, safe, dry, affordable, and accessible place to call home, access to health care, child care for working parents, K-12 schools, and COVID-19 relief resources. - Housing and Homelessness. The Governor’s budget invests in housing and homelessness at $65.9 million over the 2019-21 investment levels, and calls

on Congress for $350 million in rent assistance. The Governor’s budget also includes $20 million in homeowner assistance, and $250 million in affordable housing development funds. - COVID-19 pandemic response. In addition to applying federal funds towards pandemic response, the Governor’s budget invests $30 million in public health modernization to better prepare Oregon’s public health system to respond to events like the current pandemic. Other pandemic-related investments are included throughout the budget. - Long-term care. The Governor’s budget includes $17.9 million in investments in a range of strategies to protect seniors living in assisted living and nursing homes from COVID-19. - Health care. The Governor’s budget also addresses the challenge of adequately, sustainably, and equitably funding our health care system during a

once-in-a-hundred-year public health emergency. Largely due to the pandemic, Oregon faces a $718 million budget gap for the Oregon Health Plan–– coverage which provides an essential bridge to reducing health disparities by improving access to care and protecting low-income families from financial ruin. In addition, Coronavirus Relief Funds that have been used to fund COVID-19 response efforts will expire on December 31. The Governor’s budget helps close that gap through cost savings and an expected extension of enhanced Federal Medical Assistance Percentage (FMAP) funding. - Behavioral health. The Governor’s budget also makes investments in behavioral health and substance use disorder resources, informed by the recommendations from the Alcohol and Drug Policy Commission (ADPC) Strategic Plan, the Tribal Behavioral Health Strategic Plan, the Governor’s Behavioral Health Advisory Council, and the Racial Justice Council.

• Creating a future we can be proud of: Equity in education and our environment. Building a stronger Oregon requires dismantling the structures of racism in our government systems and programs, and creating an inclusive state that works for everyone. - K-12 education. After a year in which historic disparities in education have been exacerbated by a pandemic and wildfires, the Governor’s budget keeps

Oregon’s commitments made to Black, Indigenous, Latino, Latina, and Latinx, Asian, Pacific Islander, Tribal and students of color by fully funding Student Success Act programs and initiatives, as well as grants to schools under the High School Graduation and College and Career Readiness Fund, and funding the State School Fund at $9.1 billion. The Governor’s budget stabilizes education funding by drawing $215 million from the Education Stability Fund for public schools. - Broadband expansion. An investment of $118 million in broadband expansion statewide will connect an additional 50 urban and rural communities that currently lack access. During a pandemic that has necessitated both distance learning for students and remote work for workers, equitable broadband access is critical for educational outcomes and economic opportunity. - Early learning and child care. Recognizing that the first years of a child’s life are critical to lifelong success, the Governor’s budget expands highquality early care and education programs for 8,000 children through Oregon Pre-K, Early Head Start, Preschool Promise, and the Early Childhood Equity Fund. - Environmental Justice. To address the disproportionate impact of climate change, wildfires, water quality and access, on Black, Indigenous, Latino, Latina, and Latinx, Asian, Pacific Islander,

Native American, and Tribal community members, the Governor’s budget invests in the creation of an Office of Environmental Justice, greenhouse gas reduction programs, and equitable water access, and wildfire preparedness, response, and prevention. • Supporting small businesses and workers: COVID-19 and wildfire relief and recovery. The COVID-19 pandemic has had a devastating financial impact on many Oregon businesses and working families. Through no fault of their own, Oregonians have lost jobs, closed businesses, laid off employees, and found themselves struggling to pay rent and make ends meet. Communities impacted by wildfire likewise need support to recover from the devastation of the 2020 fire season. - Worker relief and workplace protection. A key priority of the Governor’s budget and policy agenda is to secure additional coronavirus relief funds from Congress, as current federal relief funds are set to expire on December 31. The Governor’s budget also seeks to maintain funding for the Oregon Worker Relief Fund, Oregon Worker Quarantine Fund, and the COVID-19 temporary paid leave program, to continue to support Oregon workers during this pandemic, regardless of immigration status. The Governor’s budget maintains funding for the Oregon Employment Department to ensure Oregon workers are paid the benefits they are owed, as well as for Southern Oregon Business Journal January 2021 | 21

Governor Brown Budget (Continued)

Oregon OSHA, to ensure workplace protections continue to be enforced. The Governor’s Budget includes $146.4 million to fully modernize the Employment Department’s benefit delivery system and also to implement Paid Family Leave Insurance benefits for Oregon workers. - Wildfire recovery and preparedness. The Governor’s budget dedicates $189.5 million to rebuild communities impacted by the fires. The Governor’s Wildfire Economic Recovery Council will also have access to an additional $170 million of community development resources. Funds will support debris cleanup, tree removal, sheltering and housing, food assistance, and community infrastructure This includes $30 million in investments in the Oregon Department of Forestry, and setting aside $40 million to address recommendations from the Governor’s Council on Wildfire Response. It provides an additional $47 million in grants and loans for wildfire recovery. In addition, the budget invests $73.7 million in fire preparedness, response, and prevention resources. • Reforming the criminal justice system. While Oregon has taken strides to reform the criminal justice system in the past decade, the events of 2020–– such as disruptions and delays caused by the COVID-19 pandemic, as well as community calls for racial justice––have magnified the urgency of the need for reform. Widespread racial disparities

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exist throughout Oregon’s criminal justice system. Black people represent 2.2 percent of Oregon’s population but 9.3 percent of the state’s prison population. The Governor’s budget advances Oregon reform efforts on many fronts, from expanding police accountability measures to reforming our courts and stabilizing the Department of Corrections budget going forward. • Improving systems to improve outcomes. The challenges of 2020 have also shown the need to strengthen the core functions of our democracy. The Governor’s budget and policy agenda make investments in core systems, continue to expand voting access and institutionalize the Racial Justice Council and its focus on racial justice. A federal stimulus plan is critical to addressing the dire needs Oregon and other states face due to the COVID-19 pandemic and wildfire recovery. The Governor’s recommended budget and policy agenda call for federal funds for: COVID-19 testing, health services, and support for the Oregon Health Plan; rent forgiveness and targeted mortgage relief; additional $600 payments in Federal Pandemic Unemployment Insurance; support for families facing new economic stresses due to rising winter COVID-19 cases and renewed closures; a renewal of the Paycheck Protection Program for small businesses; child care support for to help Oregonians go back to work;

expanding drug courts and rehabilitation services and continuing criminal justice reforms; support for schools, child care, and universities working to reopen; additional and more flexible Coronavirus Relief Fund support for local and state governments; and continued financial and technical supports for wildfire-impacted communities. As Oregon has weathered several simultaneous crises and challenges in the past year, the Governor’s Recommended Budget focuses on addressing Oregonians’ basic needs and addressing the key challenges impacting Oregon in the face of continued economic uncertainty. The Governor’s Recommended Budget for 2021-23 proposes $100.2 billion in total funds spending, including $25.6 billion in General Fund and Lottery Funds. Thanks to prudent spending and healthy reserves, Oregon remains in a healthy position to meet future challenges. The budget includes over $293.8 million in increased revenues and leaves $243.3 million in the General Fund. In addition, by the end of the 2019-21 biennium, the Rainy Day Fund is projected to have a balance of $942.3 million. A condensed budget summary is available in addition to the Governor's full strategic budget at budget.oregon.gov .

STATE GOVERNMENT BY NATHANIEL BROWN, COMMUNICATIONS DIRECTOR NATHANIELBROWN@OREGONBUSINESSINDUSTRY.COM

Over the last 10 months, families, businesses, and nonprofits across our state have had to tighten their belts and prioritize spending as the economic fallout from the COVID pandemic and wildfires devastated household incomes and robbed businesses and nonprofits of critical operating revenues. We expect our state leaders to do the same. The state projects a 3.5% to 4% revenue shortfall for the 2021-2023 fiscal biennium. That shortfall is miniscule compared to the devastating financial losses experienced by many Oregon businesses, nonprofits, and households this year. But instead of prioritizing spending to meet available revenue – as

Oregon Business & Industry Statement on Gov. Kate Brown’s Proposed 2021-23 Budget

many Oregonians have had to do – Gov. Kate Brown’s budget includes revenueraising measures that are effectively tax increases aimed primarily at small Oregon businesses. Oregon Business & Industry disagrees with that approach. In the midst of the greatest economic downturn to hit our state in a century, our focus must be on achieving economic recovery with an equity lens -and helping employers get back on their feet, so that jobs and household incomes can be restored. OBI will strongly oppose any budget proposal that includes new tax revenue, and we urge the Oregon Legislature to balance the state’s budget based on the revenues that are available,

Image by David Mark from Pixabay

not on hidden tax increases that will make it harder for businesses to recover and restore jobs.

Oregon Business & Industry is the largest business association in the state, advocating on behalf of nearly 1,600 businesses for a strong and healthy economic climate in Oregon. Our team represents the voice of business in the state capitol, state and federal regulatory agencies, Congress, and the courts. https:// www.oregonbusinessindustry.com

Southern Oregon Business Journal January 2021 | 23

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Southern Oregon Business Journal March 2020 | 29

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EMPLOYMENT BY BRIAN ROONEY STATE OF OREGON EMPLOYMENT DEPARTMENT REGIONAL ECONOMIST

Oregon Christmas Trees Create Jobs During the Holiday Season nonstore retail sales by means such as inhouse sales, truck or wagon sales, and portable stalls. It is likely that Christmas tree growing creates the most jobs in this industry, especially during the harvest, which occurs just before the holidays. Since Christmas tree growers are required to have a license from the Oregon Department of Agriculture, we can get a rough idea of the magnitude of the industry. There are 355 licensed Christmas tree growers in Oregon cultivating roughly 45,000 acres.

cross the nation, people purchased a tree grown in Oregon, helping to create jobs.

Oregon is the number one Christmas tree producing state in the nation, according to data from the Pacific Northwest Christmas Tree Association, with roughly $120.6 million in sales and 4.7 million trees harvested in 2017. Most of the harvested trees are either Noble fir (54%) or Douglas fir (32%). About 92% of Pacific Northwest Christmas trees were exported out of the region with 45% headed to California and 16% headed to Mexico. The balance were sent to other regions of the U.S.

as possible. It starts with growing the trees, then wholesale sales, then a tight harvest window, and then transportation to market. However, counting employment in Oregon’s Christmas tree industry is difficult since the production and selling are included in several broad industries with other commodities. These include the following: Nursery and tree production – comprises companies engaged in nursery stock, shrubbery, bulbs, and woody trees with a growth and harvest cycle of 10 years or less.

Employment

Other miscellaneous nondurable goods merchant wholesalers – comprises companies involved in merchant wholesale distribution of nondurable goods from agricultural products to pet supplies to textile bags.

A lot of work goes into getting Oregon Christmas trees to market as fresh and green

Other direct selling establishments – comprises establishments engaged in

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We can look at an annual trend of payroll employment by matching company names from ODA licenses with records from the Oregon Employment Department’s Unemployment Insurance program. A search produced 42 matches. In 2019, payroll employment at these companies held steady in the spring and summer and then spiked with the harvest in November, reaching roughly 800 workers. Annual average employment was 401 and annual average pay was $34,147. Obviously, many growers are sole proprietors or family farms that have little or no payroll employment and are not required to report to the UI program. Many of the growers tend the trees and then hire temporary workers for the harvest or contract out the harvest. With more than 300 growers not included in the payroll employment companies above, it is likely that hundreds, if not thousands more are employed growing Christmas trees over the year.

EDUCATION BY JESSICA NELSON STATE OF OREGON EMPLOYMENT DEPARTMENT EMPLOYMENT ECONOMIST JESSICA.R.NELSON@OREGON.GOV

Pandemic Enrollment Declines at Oregon Community Colleges downward trajectory, with a sharper decline in fall 2020.

nrollment at Oregon higher education institutions declined in fall 2020 amid the COVID-19 pandemic and it’s economic fallout. The enrollment drop affected community colleges much more significantly, declining 23% since fall 2019. Every Oregon community college had a lower headcount compared with last year, as of the fourth week of fall term. Most state universities also saw declines, with university enrollment down about 4% statewide. In addition to the continuing effects of COVID-19, September’s disastrous wildfires likely affected fall enrollment; some of the largest declines in fall enrollment occurred at institutions close to blazes that continued to threaten communities and fill the skies with smoke as the fall term got underway.

These figures are provided by the Oregon Higher Education Coordinating Commission (HECC) for community colleges and universities. For more in-depth information on university enrollment trends, see Damon Runberg’s article Enrollment at Oregon’s Public Universities.

Community college headcount enrollment has been declining for some time, but the plunge this fall was a significant acceleration of that trend. The total student full-time equivalent (FTE) at Oregon community colleges dropped 19% between fall 2019 and fall 2020. This measure sums the total clock hours in which all students are enrolled, divided by 510 for a full-time equivalent. It, too, has been on a slow

Oregon Public Broadcasting’s Meerah Powell reported new details from the Oregon Community College Association (OCCA), showing that the enrollment decline is largely centered in reduced enrollment in career and technical education programs (-25%) and adult basic skills programs (-48%) like GED preparation or English as a second language. “We’re also seeing that with communities of color and systemically marginalized communities in particular, (they’re) not able to access a community college right now,” OCCA Deputy Director John Wykoff said at a recent HECC meeting. While enrollment has dropped across racial and ethnic groups, the steepest declines appeared among Hispanic and Latino students, whose share of enrollment dropped by 1.0 percentage point, and white students, whose share of the student population dropped 1.6 percentage points compared with fall 2019 enrollment.

In a press release covering the fall 2020 enrollment drop, Cam Preus, Executive Director of the OCCA, said, “It paints a very real picture of just how devastating the impacts of COVID-19 and the wildfires have been on our students, and, in turn, our community colleges.”

The magnitude of some colleges’ fall enrollment declines is startling. Enrollment at three community colleges dropped more than 40%, with enrollment at Clatsop

Southern Oregon Business Journal January 2021 | 33

Community College, already one of the smallest college in the state, dropping by more than half. Another very small college, Oregon Coast Community College, had 45% fewer students enrolled in fall 2020 compared with a year ago. Rogue Community College is a mid-size college, and its enrollment dropped 41%.

sidelines to a greater degree as the pandemic emerged.

Shorter-term training appears to have been more significantly impacted by the pandemic than longer-term associate degrees, at least so far. The number of

The largest numeric change in students occurred at the state’s largest community college, Portland Community College, where 7,000 fewer students enrolled this fall, a drop of 21 percent. Clackamas Community College had 3,000 fewer students in fall 2020 – their enrollment may have been reduced by the September wildfire activity that had most of the area under various levels of evacuation warnings. Chemeketa Community College had 2,000 fewer students this fall, as did Lane Community College.

Signals from the 2019-2020 Academic Year

Total headcount enrollment dropped 12% in the 2019-2020 academic year as early effects of the pandemic disrupted classrooms and most education moved online in the spring. While every age group had a lower headcount in the 2019-2020 academic year than the prior year, some interesting trends emerged. Students ages 18 to 21, who made up 22% of the 2018-2019 community college student population, saw the smallest decrease in their enrollment in the 2019-2020 year, dropping just 6%. The steepest drop was a 19% decline in enrollment among those ages 50 to 64, followed by a drop of 16% among those ages 65 and over. These older students seem to have stepped to the

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postsecondary certificates granted by Oregon’s 17 community colleges dropped 15% in the 2019-2020 academic year, to 7,138. The number of associate degrees awarded fell 5% to 12,200.

What Does Declining College Enrollment Mean for the Workforce?

It’s likely that the steep drop in enrollment in 2020 is due not to underlying lack of demand for higher education, but due to

short-term disruptions amid unprecedented economic and social impacts of the pandemic. However, the results of training fewer people now, amid the fallout from record-shattering job losses in March and April 2020 and the slow jobs recovery since, could have implications for workers and businesses down the road.

Community colleges serve Oregon’s local communities, preparing local students for their next job or to transfer to a university, and developing programs to serve the needs of local and regional employers. In contrast with university enrollment, Oregon’s community colleges are made up almost entirely of resident students. Overall, of the 19,000 completions of postsecondary certificates and associate degrees awarded by Oregon’s community colleges in the 2018-2019 year, just 500 were granted to nonresidents. Among bachelor’s degree completions at Oregon’s public universities, one-third of degrees that year went to non-residents.

The community college student population is local – most of those who attend a community college live and plan to stay in the community where they are getting their training. In 2018, economic research firm Emsi partnered with the Wall Street Journal to analyze the migration of alumni from more than 3,700 higher education institutions in the U.S. They found that

Pandemic Enrollment Declines (Continued)

community college grads tend to stick close to where they were trained. “On average, a student who attends a community college will stay within 300 miles of the college and 61% live within 50 miles of the college.” This contrasts with universities, where Emsi found that 40% of alumni stay within 50 miles of their alma mater.

Some of the most common jobs reported by Oregon employers that would be trained at a local community college include registered nurses, heavy and tractor-trailer truck drivers, nursing assistants, dental assistants, electricians, and carpenters. This top list of jobs employers were recruiting for in 2019 heavily represents trades jobs, as community colleges provide the classroom training for

Community colleges serve a student body that is less likely to fit the traditional student model; they are often older than 25 and either developing in their career or working toward changing careers. In the 2018-2019 academic year, one-third of the community college student population was age 35 or older and one out of six was age 50 or older.

Employers need workers with the skills developed at Oregon’s community colleges. In responses to the Oregon Employment Department’s Job Vacancy Survey, employers report more difficulty filling vacancies requiring postsecondary training, associate degrees and “other” training or certifications. In 2019, 77% of these vacancies were reported as difficult to fill, compared with 55% of jobs requiring a high school diploma and 57% of vacancies requiring a bachelor or advanced degree.

the state's apprenticeship programs, and health care-related jobs. We need workers trained in these fields. An interruption in such training will be felt in increased difficulty filling jobs in a couple of years’ time, as these programs can take two to four years to result in a fully trained worker.

The average starting wages reported by Oregon employers for these openings is also worth mentioning. In 2019, starting wages for vacancies requiring a high school diploma averaged $15.78. Vacancies that

required postsecondary training, an associate degree or “other” training or certification paid an average of $25.39. Jobs requiring a bachelor or advanced degree averaged a starting wage of $31.02. There’s a lot of earning power stacked into the training provided at local community colleges. Workers completing certificates and associate degrees go on to earn more money than their high school graduate counterparts, and have lower unemployment rates as well. These workers, and their skills and experience, will continue to be in demand.

We won’t know how the drop in community college enrollment in fall 2020 will affect the preparation of the workforce in terms of the number of certificates and degrees received for a couple more years. It seems unlikely that the sharp enrollment declines of 2020 will persist when restrictions to combat the spread of COVID-19 are eased and inperson instruction resumes more broadly. It remains to be seen how much pent up demand for training will result from delays in individuals’ education plans during the pandemic. It also remains to be seen how budgets and program offerings will be affected by the COVID-19 recession and related budgetary constraints, combined with the decline in enrollment. What we do know is that Oregon’s community colleges will be there as economic recovery continues, offering new skills and a brighter employment future to students around the state. Southern Oregon Business Journal January 2021 | 35

ASHLAND

By SOU News Staff news.SOU.Edu

SOU retreat for Native American Youth spins oﬀ multigenerational program Konaway, for ways that we could continue working with the students.” Jones and her staff put together an outline and projected cost for the program, and the foundation backed the proposal with a quick-turnaround grant. “It was a great testament to OCF’s exceptional role across the state during this challenging year – they were extremely responsive, had a quick turnaround and eliminated lengthy application processes,” Jones said.

outhern Oregon University’s Konaway Nika Tillicum wasn’t what anyone expected last summer, when the seven-day academic and cultural enrichment residential camp for Native American Youth was shifted to a virtual version of itself because of the COVID-19 pandemic. Then the totally unexpected happened: the Oregon Community Foundation, a longtime supporter of the Konaway program, reached out to its organizers at SOU to find out if there were any plans to continue supporting pre-college Native youth in Oregon at the conclusion of the one-week program. Serious conversations began, the foundation offered a new $50,000 grant and a virtual offshoot program for Konaway students and their family members was born. “All My Relations” – the English translation of the Chinook Trade Jargon phrase, “Konaway Nika Tillicum” – was launched on Oct. 28 with seven students and has rapidly grown to include more than 33 students and their families in six states. There are currently 19 students from seven Oregon counties in the program. Another eight participants live

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along the Oregon border in Washington or California and have tribal connections to the region. The program runs through fall, winter and spring terms, offering biweekly, virtual longhouse gatherings to provide academic encouragement and support, and discuss everything from beading moccasin ornaments to traditional story-telling to maintaining cultural identity during a pandemic. “It was clear that students and families were hungry for this kind of connection and assistance, and when we were approached by OCF it seemed like the perfect opportunity to get something going,” said Katherine Gosnell, assistant director of youth programs at SOU. “OCF is keenly aware of the disproportionate impacts of COVID on Native communities and were seeking ways to address the situation,” said Rachel Jones, SOU’s director of outreach and engagement. “We shared with OCF the wish list of ideas that the Konaway team had created during the virtual

All My Relations was originally seen as a one-time project, but has now transitioned into a pilot for what organizers hope will be an ongoing program to support and enhance the original Konaway residential offerings. Organizers at SOU are seeking additional funding through grants and donations from foundations, organizations and individuals to support a second year of All My Relations beginning in fall 2021. “Not only are we serving Native American Youth but we are serving their families, their friends, and their communities as well,” said Tamara Ellington, an SOU adjunct instructor and residential coordinator for the Konaway program. “We have students that join with their parents, their foster parents, their closest trusting neighbors with good internet connectivity, their cousins, their friends, and their elders,” she said. “This is truly a multigenerational program modeled and influenced by the original Konaway Nika Tillicum Native American Youth Academy.”

Southern Oregon Business Journal January 2021 | 37

MEDFORD Eric Pitt

Lithia Motors, Inc.

VP, Investor Relations and Treasurer

ina Miller, Senior Vice President, Chief Financial Officer of Lithia Motors, Inc. (NYSE: LAD) has been named to the 2020 list of Leading Women in the North American Auto Industry by Automotive News. Every five years, Automotive News compiles the list of 100 Leading Women in the North American Auto Industry, recognizing top female executives at automakers, suppliers, dealerships, and vendors.

“Tina’s first 15 years of leadership, passion and drive have been instrumental to the growth and success of our company. Her 38 | Southern Oregon Business Journal January 2021

Lithia Motors CFO Recognized as a Leading Woman in the Auto Industry together,” said Lithia Motors President and CEO Bryan DeBoer. Miller got her start in public accounting in California’s Silicon Valley before moving to Medford, Oregon and beginning her new career at Lithia Motors as a manager in internal audit. Looking back at her automotive career, she credits her success to the variety of leaders who saw her growth in a way she never saw herself. “They could see my potential before I could, and my mentors encouraged me to try new things I never thought was possible,” said Miller. In particular, Miller has played a pivotal part in helping Lithia build the broadest coast-tocoast automotive retail network, reaching over 92% of the United States. This impressive growth has created a network of people, locations and inventory to fulfill its omni-channel offerings, including Driveway and Greencars. “To be successful, you have to be comfortable being uncomfortable. Do your research, create your plan, and execute. It can be scary, but if “To be successful, you have to be comfortable you believe in yourself, your being uncomfortable. Do your research, create team and your plan, that can be your plan, and execute. It can be scary, but if you the fuel to get you across the believe in yourself, your team and your plan, that finish line,” said Miller. can be the fuel to get you across the finish line” In addition to her honor as a leading female auto executive, Miller also participated on a panel at the Automotive News Leading Women virtual unique perspectives and experiences bring conference. This year’s theme is “Driving diverse insights to our strategy and our Change.” The panel’s discussion focused on mission of Growth powered by people. the challenges COVID-19 has posed for Lithia’s culture promotes and celebrates the many companies and accelerated the need unique skills that each individual brings to for change. our growing organization, and we look forward to the next decade of growth

Southern Oregon Business Journal January 2021 | 39

SPECIAL By Jim Teece Publisher – SouthernOregonBusiness.com

I am able to tell many things about the people that come to our website and what they do once they are on it because we use Google Analytics on the site. It’s a free and great tool for marketing but also looking back and seeing what the most popular articles of the year are. One key take away from analytics is how much our readership has grown. We have grown 446% from 2019 and people just like you, read, comment on and share our articles which is very rewarding. The majority of our readers came from Medford, Portland, Ashland, Eugene, Roseburg, Grants Pass, Salem and Beaverton. (in that order) The gender split is about even and more than 22% of our readers are between 25 and 34 years of age, while the 18-24 age range is our lowest readership at 10% and the rest of the age brackets are evenly split around 17%.

The Top 10 most read online articles of 2020 even come back every once in a while with a guest article.

Bank (Albany) have announced a merger. People’s Bank had a great year in 2020. They made the top 10 list several times. This article was a second post about the announced merger with Willamette Community Bank out of Albany and included a full reprint of the detailed report they sent out to shareholders to explain the deal and rationale behind it by both boards.

https://southernoregonbusiness.com/tag/ greg-retires/ #9 – Thank you Greg Walden Another Greg retired this year and I was honored to have an interview with him before he left office. Even though Facebook denied my ad for this post (as too political) it got the 9th most reads this year. https://southernoregonbusiness.com/ peoples-bank-of-commerce-medford-andwillamette-community-bank-albany-haveannounced-a-merger/

So here they are, The 10 most popular articles of 2020 with links to each one, in reverse order. #10 – Greg Retires

#7 – People’s Bank Founding Board Member, Bill Jacobs, Retires From the Board after 22 years of Service.

Greg started the journal in 2015 and retired in 2020. Even though it came as a shock to me when he announced it, I thought we would have a few more years together, I completely understood the reprioritizing that Greg wanted to do. It was time. I was able to create a section on him in the June issue and send him off properly. I have been in touch after his retirement and he might

I was happy to see this article get so much attention. I met Bill when I joined the People’s Bank board a few years ago. When he retired I wanted to do an article on his life and many careers with the hopes it would inspire others to continue to lead even after they retire.

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https://southernoregonbusiness.com/thankyou-congressman-greg-walden-for-yourservice-to-our-state-and-for-being-so-nice/ #8 – People’s Bank of Commerce (Medford) and Willamette Community

the love and shares what I learned about pretty much every department in the county coming together to help after the fires.

https://southernoregonbusiness.com/ peoples-bank-founding-board-member-billjacobs-retires-from-the-board-after-22-yearsof-service/ #6 – People’s Bank And Its Employees To Donate More Than $1.2 Million Toward Local Fire Relief Again People’s Bank was making news and made the top 10 most read articles. After the smoke cleared from the fires that devastated Southern Oregon, the employees and board of the bank stepped up and donated 1.2 Million dollars toward relief and rebuilding.

https://southernoregonbusiness.com/thestaff-at-the-jackson-county-expo-are-some-ofthe-unsung-heroes-in-the-almeda-fire/ Be sure to check out the followup article about how all of Jackson County responded after the fire to help – https://southernoregonbusiness.com/ employees-from-every-department-injackson-county-were-part-of-the-fireresponse-and-running-of-the-evacuationcenter-at-the-expo/ #4 – Meet Julia Beattie – The New President of People’s Bank

https://southernoregonbusiness.com/ peoples-bank-and-its-employees-to-donatemore-than-1-2-million-toward-local-firerelief/ #5 – The Staff at the Jackson County Expo are some of the unsung heroes in the Almeda Fire. I was happy to see the response to the article I wrote on the amazing Jackson County expo team and it’s response to the fires. There is a followup article linked at the bottom of this article that is a must read as well. It spreads

https://southernoregonbusiness.com/meetjulia-beattie-the-new-president-of-peoplesbank/ #3 – Remembering Douglas County’s Snowmageddon – 1 year later. https://southernoregonbusiness.com/ remembering-douglas-countyssnowmageddon-1-year-later/ Before COVID shut us down, I did an anniversary article on the Snowmageddon in Roseburg and the amazing teams at DFN and Douglas Electric and how they responded. It’s a great read and the readers of the journal agreed.

The 4th most read article was an article about Julia Beattie, who was promoted to president of the bank in 2020. • • • •

Banking is in her Bloodline. Julia and her husband ran a helicopter company. Julia is very involved in the community. Julia loves Southern Oregon https://southernoregonbusiness.com/ restoring-service-after-the-storm/

Southern Oregon Business Journal January 2021 | 41

#2 – Hunter Gets Bought, and a New CEO, Wins Awards and Launches Fiber to the Home in Medford. All since April. I was surprised to see that two internet provider articles made the top 3. Hunter was bought and I had a chance to introduce the new leadership and share their plans for the future.

#1 – COVID and Cares Act Section I remember sitting there in March and realizing the that journal needed to change to a daily online resource instead of just a monthly print publication. I introduced a new section on the site and did my best to maintain it with updates from state and local resources to help all of our businesses through the pandemic. There were articles on PPP loan process to apply and then to ask for forgiveness as well.

The journal readership has grown and many are not just in Oregon. I have readers all over the world and many of the topics we share are relevant regardless where they are located, and I heard from one, the journal is helping them relocate to Oregon to buy a business. (Special note of interest – I did not include an article in the list above, that made the top 10 list in 2020, because it was not written in 2020 but it was well read all year long – $75million 5th Street Public Market expansion project in Eugene on track to open fall 2020.)

https://southernoregonbusiness.com/ hunter-gets-bought-and-a-new-ceo-winsawards-and-launches-fiber-to-the-home-inmedford-all-since-april/ https://southernoregonbusiness.com/ category/covid-19/ That’s the list. We collect data and use it to learn what you read and what you don’t. The key take away for me is as follows.

Meet hunter’s new CEO, Michael Wynschenk

Business is about people. You read about the people, not the business. I love that. I’ll continue to do more of these articles. Interestingly as well is that 3 of the top 10 were celebrations of the retirements of great leaders. Many of our readers are under 30. This is a change in demographics from when I got involved with the journal and I’m happy to see it trend this way. These young entrepreneurs are our future and we need to help them be successful and then get out of the way.

42 | Southern Oregon Business Journal January 2021

https://southernoregonbusiness.com/75million-5th-street-public-market-expansionproject-in-eugene-on-track-to-openfall-2020/ Which brings me to the final point. I’m proud of the fact that the top 10 articles read online covered companies in Medford, Eugene, and Roseburg. That shows me that we are relevant in those communities and truly represent the business community in Southern Oregon. Congrats to People’s Bank for being in the top 10 list 4 times about 4 different topics 4 different times of the year. Here’s to hoping that the most read article or section will not be about COVID in 2021.

SPECIAL By Jim Teece Publisher – SouthernOregonBusiness.com

Things change very quickly. Even though there is a calendar rhythm to life it moves at a very fast pace and if you aren’t careful you may find yourself not relevant in the future. I started Project A 31 years ago. In those years I have seen an insane amount of change occur in the industry I am in and yet I still feel relevant and able to contribute while still learning and growing. Reflecting back on this I have come up with the top 12 things you can do to future proof yourself. 1. Be Agile. It sounds easy, trendy and sexy to be agile, but it isn’t there yet. This concept borrowed from the programming community as it evolved, works in every facet of life. It’s hard for some people to get it. People that are control freaks, people that micro-manage and people that are “oldschool” don’t get it. That’s OK. They will retire soon and you will be moving forward at the speed of Agile. What is Agile? It’s a huge topic that I will explain in future writings with you, and you can google it, but basically it's a process of working on a problem very quickly. After you define a goal. Sit down and ask your self every day until you achieve that goal what you got done toward it yesterday, what you are going to do today and what are you blocked on. The blocked part is usually for your team, so they can help you get unblocked. It’s all about accountability. Instant course corrections. Reflecting back on the project as it goes and learning from these reflections. Of course it was designed for teams of people working together to do something great. But I find it works for myself as well. It’s a way of life. 2. Write It Down. I carry a cheap composition notebook with me to every 44 | Southern Oregon Business Journal January 2021

12 Things You Can Do To Future Proof Yourself. meeting, even zoom ones and use it to write down everything I can from the meeting. Sometimes it's just actions. Sometimes it’s ideas that jump out from the meeting. Sometimes it’s a reminder to buy the book that the person I’m meeting with referenced and read it. Whatever it is, I write it down. Sometimes I go back and reference old books from several months ago. Sometimes I don’t need to. My memory is pretty good at remembering what I wrote down, because I wrote it down. Write the date in the upper corner of the page. Create a simple set of symbols. I use the margin next to what I wrote to place that symbol or icon as a way to quickly find what I am looking for. I use -> for new meeting, (I write who I’m meeting with, where and why) I use ! for important, [] for To Do and * for an Idea. It’s a good day when I get lots of ideas on my pages. It sounds more organized than it is. Trust me, It’s not. 3. Learn to Juggle. Not in real life with real balls. Metaphorically. Have you ever watched a juggler? All the balls are in the air except for one. It’s in the hand and dealt with and then thrown back up in to the air. When you learn to use both hands you can juggle more balls. And all the balls do not need to follow each other, but they all get touched and dealt with in order to stay in the air. I juggle a lot of balls in the air at all times and sometimes I get distracted by one shiny ball and all the others come crashing down on my face and hurt my nose. I just pick them up and start juggling again. 4. Write Daily. I write everyday, or at least I try. It can be in a journal, or a blog post or a story on facebook. It’s all writing. Sharing a

post is not writing, but writing about the post with a share at the end is. I write because it helps me get the thoughts out of my head and give them a place to live and be saved, to make room for more thoughts. I write because I love re-reading what I wrote a year later or more and smiling at the emotions it evokes when I do. I write because I want to get better at it and doing something over and over is how you improve. I write because it makes people laugh or cry or inspires them to dream. 5. Dream Daily. I have incredibly vivid dreams. I wake up in a panic and write them down as best as I can before I forget. When I read them to my wife over a cup of coffee, we both laugh because they do not make sense and there is too much crazy “unreality” in them. Those are my night dreams and I have learned that it depends on how exhausted I am or stressed or what my diet is, whether or not I dream while I sleep. If you want to dream, you have to create the conditions for it. But there is another kind of dream that you should do every day. You can dream all day long. I don’t mean staring out the window and forgetting about life dreaming. I’m talking about dreaming about you and your life in big impossible ways. I have learned over my 31 years in business that you can achieve your dreams. I used to dream about getting married and having children and pets and a farm. I dreamed about owning a home. I dreamed about working with Fortune 500 clients to do cool things. I dreamed about working with small businesses to change the world. I dreamt about making things. I dreamt about building. I dreamt about changes in our community that would be amazing for

everyone. I dream about changes in my life constantly. They are plans, goals and hopes. I literally dream about the change and it’s very fulfilling when the dream becomes reality. I don’t compare reality to the dream. I move on to the next dream. 6. Widen your circle of influence. Life is all about human to human relationships. You impact the lives of so many others. Who is on your list? The list should be growing as you get older. Sure, people will disappoint you and you will want to remove them from your list, instead just put them in orbit somewhere else. Keep tabs on everyone. Cheer them on. Encourage them to succeed. You know why I have clients for over 20 years, because I don’t just complete a project, I work hard to make sure the humans I work with are successful. This isn’t a ploy to get more work. It’s a realization that the humans I work with are why I have a job. They chose to work with me. They will move up and on and will always remember the experience of working with me and want more of that if they had fun, feel loved and feel like we made a great team. Sometimes it doesn’t work, but when it does, it’s magic. Sometimes people I work with leave. They graduate to greener pastures and that is ok. Because bridges weren’t burnt and there is a fond memory of changing the world together, I get referrals and more chances to work with them. 7. Teach. When you become a parent you become a teacher. When you hire people, you become a teacher. When you sign up to teach a class in the community, you become a teacher. It’s the act of teaching (not preaching) that helps people grow. It’s why you are here. To grow and help others grow as well. Look back at your own education. Who were the influencers in your life. Not some bikini clad person on instagram, showing off their body and their beautiful location. Those aren’t influencers. The

teacher is. The person that teaches others is the greatest influencer of all time. Yes, there are bad teachers, don’t be one of those. Be the teacher that inspires and instills a deep sense of awe in your students. Young or old. It doesn’t matter. Teach to learn. Teach to inspire. 8. Care. It seems weird to me to have to share this one, but I have seen people that care and people that do not work side by side and the ones that care are the ones that grow and are ultimately the most future proofed. When you care about the work you do you make a better product. If you care too much about it then you never launch it, so you have to find a balance. But the simple act of caring about the work you do and the people you work with, go a long way in future proofing yourself. 9. Know Your Risk Tolerance. We each have one and it changes as life changes around us. Learn yours and monitor it daily. If you are taking risks that are beyond your tolerance, ask yourself why. You grow because of pushing the boundaries of your risk tolerance. But you have to know you might fail and you have to be ok with the consequence of failure. I take risks all the time. But they are small, measured, tracked, monitored and reacted to constantly. I don’t take huge risks. I don’t bet the farm. That’s just my own tolerance. Find yours and ride the edge. 10. Don’t be a troll. Trolls guard bridges and stop people from crossing them. The internet gave power to the troll. Entire groups of people from all walks of life get great satisfaction lurking online and being mean to other people. It doesn’t matter what age, race, gender or political party. It’s all covered. Remember back to the bed time stories. Trolls never leave the bridge they hide under. They are stuck there. If you want to grow and cross many bridges in life, you

can’t be a troll. Trolls are sad, dark and harmful. Don’t be a troll. 11. Fail as fast as you can. When I started home brewing as a hobby a couple of years ago, I brewed over 20 batches of beer. Small 1 gallon batches. Many went down the sink. Others were ok, but it was near the end that they became good. And then if I made a good one, I tried to make it again and again, to see if I could recreate it. We are all going to fail. It’s a fact. You cannot win every game you play in, unless you get fired before you lose. The key to this is knowing that you will fail sometimes and if you teach yourself to get up, dust off and try again without a lot of lament over the failure, then you will learn faster and faster. Speed is the new currency of life. Somethings we can’t really speed up, but most things we can. Comfort is the enemy of greatness. It’s human nature to be comfortable. Break out of the comfortable place you are, to push yourself to the next level. You will fall sometimes. It’s ok. Quickly get up and try again. 12. Suck Less. The tools we use everyday suck. Computers suck. Cars Suck. Yes they are also magical tools that help us change the world, but they are not 100% perfect 100% of the time. Maybe they are perfect 98% of the time or 99%. But when it fails that 1% of the time, it sucks. Computers, cars, and our businesses are very complex machines with 1000’s of moving parts (electrons move too) and sometimes something will go sideways. You need to be amazing during the suck part. Communicate. Monitor. Take responsibility. Work to make 1% into .9%. Continuously. Constantly. It never ends. Be a systems thinker. Be a team player. Help your teammates achieve success. Be a better employee. Be a better boss. Be a better business owner. Make small improvements everyday and chase the impossible 100% perfect, but know you will never get there, you can only suck less than you did yesterday. Southern Oregon Business Journal January 2021 | 45

SPECIAL By Jim Teece Publisher – SouthernOregonBusiness.com

What a crazy year. From Pandemic shut downs to fires that wiped out entire communities in Southern Oregon, 2020 is a year that will never be forgotten, yet will want to be forgotten by many. During this year I directly witnessed great leadership and courage and I wanted to share with you 4 stories and give out much deserved awards. So I’m creating the first ever Southern Oregon Business Awards for leadership, courage and tenacity in a time of crisis. I have to tell you that I am not a journalist so this is personal. I picked these stories and the people in them to receive the award because I worked with them directly. They are my friends. I witnessed it happening and I was there. So without further ado, I present to you the top 3 award winners in reverse order, plus the runner up. Note - If you didn’t make the list, I’m sorry. It was hard except for #1, to rank you all. Just know what you do is important and how you do what you do, inspires small business owners like me to do more.

Southern Oregon Business Awards for 2020 and network engineers stepped it up in 2020 and donated thousands of hours of work to help companies and people through the pandemic and then through the fires and I could not be more proud. When People’s Bank needed a way to track all the PPP loans, we donated a system to help them, because we knew it would help the community. When the fires happened, the Project A team stood up several tools to help the community take care of each other. Because we saw the financial impact of both the pandemic and the fires had on our community, we donated an upgrade to the St. Vincent de Paul tracking system (that we donated 12 years go) to help them help more people, faster. These are just a couple of the stories from 2020. We donated countless hours to so many companies to help them through this once in a lifetime crisis and we also found time to work with two amazing women with a great idea and donated the site we launched at LiveAndWorkInAshland.com.

#3 - Cynthia Scherr

Runner up - The team at Project A Project A ProjectA.com I know, I know, it’s not fair, I own the company, but I have to tell you that this rag tag group of crazy programmers, designers 46 | Southern Oregon Business Journal January 2021

Cynthia Scherr Scherr Management Consulting ScherrConsults.com

I have known Cynthia for years. She is a management consultant that helps business owners grow their business and helps keep them on target. She is good at what she does and she is an asset to Southern Oregon. A couple of years ago she approached me with this idea of starting something for entrepreneurs and she launched the E2E Network. A casual gathering of entrepreneurs that meet to share what they do and how they do it. It developed into a deep dive into a local business monthly and became a mobile place to find inspiration from other entrepreneurs without dues or membership. When we shut down the economy because of the pandemic, she reached out to me and said now more than ever, E2E has to keep meeting and she did. She convened us via Zoom during the beginning of the lockdown to learn about PPP loans and she brought us together after the fires to help us learn what we can do to help rebuild. She even teamed up with another amazing woman in the community and together launched LiveAndWorkInAshland.com. I stood back offering my support when she asked for it, but I proudly watched her work with our entire business community to offer calm guidance and leadership when we needed it most.

#2 - Morgan George

Morgan George Northwest Pizza nwpizzapasta.com He was a student of mine a couple of years ago in a 10 week marketing class I taught at SOU. He played football and ran a bar or nightclub after graduating. When he opened Northwest Pizza, we loved going there and seeing how he took care of the community while running his business. I was proud of him. You could tell that he was hard working, fun loving, caring and crazy like me. Dena and I love visiting every once in a while (We do not eat out very often and we spread it around so we don’t see him as often as we would like) and think of him as an extended part of our family. When the pandemic and our lockdowns happened, he did something that helped everyone get through it, including me. He stepped up and took control. Using a crazy video format on social, Morgan would record a daily greeting while driving to work or home from work after a 12 hour shift, sharing with us how his day was going, what he was doing to make sure his business was going to survive. But he also did something more. He helped spread hope and love. He would stop by other restaurants and buy gift cards from them and give them away with his pizzas. He truly made us all feel that we were all in this together. And then he started feeding the homeless (or house less as he would say into the camera) boxes and boxes of pizzas.

He would deliver them and they would get to folks that needed it. He worked insane hours (he always does) and he kept doing amazing work and reminding us through these daily video feeds of his, that we will get through this, together. I couldn’t be more proud of him.

#1 - Ken Trautman… and the staff and board of People’s Bank.

Ken Trautman People's Bank of Commerce peoplesbank.bank Yes, I serve on the board, so you can exclude me from the amazing award, but I had a front row seat and watched as it all happened and I was blown away, all year long. I remember when Ken called me on a Sunday after we locked down and they announced the PPP loans. It’s not normal for Ken to call me on a Sunday, so I knew it was important. He wanted to know if I would help him find a way to get this PPP money to as many businesses as fast as we could before it was all gone. Of course I said I would do what ever it would take. (It’s what you say to someone that wants to make a difference) He was calling his executive team after our chat to find a way to make this all work. In the end People’s Bank worked 24x7 for weeks until the money ran

out and ended up helping over 900 small businesses get over $91 million. While the bank was heads down achieving this, Ken dropped another bombshell. He told his team that he and then CFO Russ got COVID and died and that Jeri, was in the hospital and unable to step into Kens place (This wasn’t true of course). Then he sat back and watched as the company he started 21 years earlier had to react to this immediate succession exercise in the middle of the PPP flood and pandemic. They came out of the 9 day exercise with flying colors and Ken found his successor. Julia Beattie showed her skills at being able to handle herself and her teams through the real crisis and the fake one Ken placed on top. Julia became president of the bank soon after. Then the fires happened. Ken called me on the weekend again and he shared with me an idea he had to help rebuild. The bank was going to donate $1,000,000 to rebuilding and the employees were going to donate $215,000 to immediate relief efforts. He needed board support and I pledged mine with a big proud smile on my face. Then as an encore to an encore, Ken presented an opportunity to the board to merge with a smaller bank based out of the willamette valley. The merger, if approved, would make People’s Bank the 3rd largest Oregon bank and help fulfill some board strategies. The year flew by. Ken took the Pandemic, the fires, the succession transition and growing the bank in stride. Looking back at 2020, it was easy for me to pick my #1. Ken Trautman is a great leader who leaped forward in uncertain times and showed us all what he and the bank are made of. He cares about the communities he serves and the company he helped start and build. I look back at 2020 and Ken’s leadership through it all, with awe and extreme pride. Congratulations all. Thank you for your leadership and inspiration. When I grow up I want to be just like you. Southern Oregon Business Journal January 2021 | 47

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