october 2018 commission meeting presentation · food bank—$1,500,000 • microenterprise...

October 25, 2018Portland, Oregon

Commission Meeting

Kanth gopalpur

welcome

Chris harder

Director’s report

Agency Updates

• Budget process update

• Recent projects:–CDBG Awards

–Business Development Projects

–Innovation Investments

• Advancing agency culture — Amy Croover Payette

CDBG Awards

• Public Works Projects:

– City of Chiloqin: Wastewater system—$702,000

– City of Tillamook: Wastewater system—$2,500,000

• Community Facility Projects:

– City of St. Helens:Food Bank—$1,500,000

• Microenterprise Assistance:

– City of Independence—$97,500

• Housing Rehabilitation Projects:

– Harney County—$400,000

– City of Independence—$400,000

Strategic Reserve Fund AwardsOrganization City Loan Approved

Amount Approval Date

Wayfair LLC Springfield $400,000 10/9/2018

Genentech (BEP) Portland $500,000 (TBD) 10/5/2018

Element Six Technologies Gresham $300,000 10/2/2018

Composite Approach, LLC Redmond $100,000 9/6/2018

Hyak Tongue Point, LLC Astoria $350,000 9/6/2018

Agility Robotics, Inc. Albany $78,390 8/14/2018

Froerer Farms, Inc. Nyssa $110,000 7/16/2018

North River Boats Roseburg $100,000 7/16/2018

$1,938,390

Note: Awards are recently approved for funding, but may not be finalized and under contract

Recent Innovation ProjectsHigh Impact Opportunity Project (HIOP) Awards

• Value-added Products from Beverage Industry Waste (Food Innovation Center)

• Mass Timber Acoustic Testing Laboratory (University of Oregon)

• RAPID Metal Additive Manufacturing (Oregon State University)

• Mercado Mobile Food Lab (Hacienda CDC)

• S Willamette Valley Food Biz Dev Center (RAIN Eugene)

• Scaling Juniper Markets (Sustainable Northwest)

• Vine Robot & Data Analysis (George Fox University)

Recent Innovation ProjectsSBIR Matching Grants

• Arc Control in Vacuum Arc Remelting Furnaces (Ampere Scientific)

• Surgical clip and applier for rapid closure of dura mater (NeuraMedica)

• Sensitive, Fast, Portable Diagnostic for Malaria Elimination (Hemex Health)

• Developing ultrasound treatment for post-menopausal women(Madorra)

• Production of Natural Sun-protective Compounds (Gadusol Labs)

• Equipment for Microwave Absorber Commercialization (Tangitek)

Recent Innovation ProjectsSBIR Matching Grants• Preventive Healthcare App for Latinas (De Las Mias)

• Novel Sickle Cell Disease Diagnostic (Hemex Health)

• Rapid Diagnostic Test for Zika (mAbDx)

• Scaled Manufacturing of Rapid HIV Test (Sedia Biosciences)

• Testing Stability of Silica-coated Flu Vaccine (StoneStable)

Agency Culture

Recommendation 1:

• Management training is scheduled. Starting in December. Complete in July.

• A three-part respectful workplace training series is scheduled. All staff required to attend.

Recommendation 2:

• An all staff survey is currently out to receive feedback from staff on scope and expectations of an Employee Engagement Committee. The survey closes next Monday.

• Internal communications plan is underway.

• DEI Council – Bryant Campbell will also serve on the Employee Engagement Committee.

Agency Culture

Recommendation 3:

• Agency charters are underway.

• The director’s bi-monthly email communication launched on Monday, Oct 22.

• The first director’s forum will be on November 1.

Recommendation 4:

• Employee Services staffing is underway.

• DOJ trainings have been identified for HR staff.

• The complaint and investigation flow-chart is underway.

Agency Culture

Recommendation 5:

• The Regional Development Team has started to review their project process flow.

Recommendation 6:

• The new DAS “Workday” system release date is still unknown.

Recommendation 7:

• The recruitment for the AD for Operations & Finance is underway.

Recommendation 8:

• Internal succession plan first meeting is on Oct 29.

Amanda Welker

Global trade:what’s working for Oregon

How Business Oregon Thinks about Trade

• Exports

• Foreign Direct Investment

Why Trade Matters to Oregon

• Oregon exports hit record $22 billion in 2017

• 87,000 jobs in Oregon supported by exports

• Nearly 6,000 Oregon companies export

• 95% of global consumers outside the US

Computer & Electronic Products, 40%

Machinery, 18%

Chemicals, 10%

Agricultural Products, 8%

Transportation Equipment, 5%

Food Products, 3%

Wood Products, 2%

Electrical Equipment, 2%

Primary Metals, 2%

Fabricated Metals, 2% All Others, 8%

Oregon Exports by Industry, 2017

Source: http://www.wisertrade.org, data from U.S. Census Bureau, Foreign Trade Division.

Source: Wiser Trade, 2017

China, 18%

Canada, 11%

Malaysia, 10%

Korea, 9%Japan, 8%

Vietnam, 7%

Taiwan, 4%

Germany, 2%

Singapore, 2%

UK, 2%

All Others, 26%

Oregon Export Markets

$0

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

Source: Wiser Trade, 2017

Top Oregon Export Markets(2017, Excluding microchips, cars, soybeans, & potash)

$383,993,083$387,753,257$401,528,459$416,686,523$516,931,654

$645,289,039$657,882,197

$1,192,356,843$1,384,883,976

$2,853,402,305

Other chemical productsBasic chemicals

Fruit / vegetable & specialty…Other agricultural products

Aerospace productsPharmaceuticals & medicines

Navigational & control productsOilseeds & grains

Computer equipmentIndustrial machinery

Source: Wiser Trade, 2017

Top Oregon Export Products(2017, Excluding microchips, cars, soybeans, & potash)

• 61,700 workers in Oregon are employed as a result of global investment—an increase of over 40 percent since 2010.

• 22,600 workers in Oregon—more than 30 percent of all FDI jobs in the state—are in the manufacturing sector.

Challenges• Trade Wars and retaliatory tariffs

• Competitiveness

– No TPP, NAFTA re-negotiations, EU-Japan trade agreement, U.S. left out

• Congestion/bottlenecks in transportation system

• Consumption decreasing in historically key markets (Japan)

• Oregon not well-known internationally as destination or brand

• Loss of container service – not geographically advantaged for direct marine service

Moving Forward

• Coordinated, focused global strategy to promote and enhance the Oregon brand overseas

• Expand value-added and consumer-packaged goods for food and beverage exports

• How do we organize work around the state’s strategies for those markets and target state investment?

Japan China

UK and Europe Canada

SE Asia

Oregon MSA’s Export

Our Team• Global Trade & Recruitment

–Team Lead (1)

–Global Trade Specialists (4)

–Business Recruitment Officers (2)

–Grant Program Assistant

–Japan Representative Office JRO (3)

–Germany-OCO Global (2)

Budget

• ICF/Lottery funds

• Federal Funds: – State Trade Expansion Program (STEP)

– USDA MAP funds

• Strategic Reserve Fund (Lottery)

• Company/Partner Participation Fees

• ~$4 Million

Foreign direct investment

Foreign Direct Investment

• Premier West Coast location

– Pacific Rim access and easy distribution to California

– Continued FDI growth in several industries

– Lower-cost power attractive to large manufacturing and processing firms

– Rapidly growing metro regions that attract educated workforce

– Portland International Airport rated best for business travel six years in a row (Travel + Leisure)

29

Foreign Direct Investment

• Japan and Germany

• Greenfield and M&A

• Innovation and Technology

• Tax Landscape/Incentives

• Select USA

• Public benefits: diversity, career ladders

Japan Strategy

• 140 Japanese-owned companies in Oregon

– Food and Beverage

– Consumer Goods

– Semiconductor supply chain

– Tourism, Education and Cultural exchange

• Metrics: Trade Assistance, Capital investment, Jobs, Income tax

• Budget Request: East Asia representative Policy Option Package

Germany Strategy

• Key Industry Sector supply chains

• Awareness Building

• Adidas, Daimler, Siemens

• Lead Generation

• West Coast Location

• Metrics: leads, projects, jobs

Foreign Direct Investment Successes

exports

Trade Tools and Services

• 1:1 counseling on export strategy

• Overseas Offices

• Matching funds for shows & missions, and distributor development services

Export Training

• Export financing, working capital, loan guarantees, insurance

• E-Commerce, social media

• Website localization, translation, and search optimization

• Market Briefings

• Logistics, documentation, and export compliance

• Rural outreach and new-to-export outreach

• Softwood Export Council

Export Promotion Program

• 984 grants to Oregon small businesses

• Average grant award: $3,600

• $3.6 million in total grant funding awarded

• Resulting in $147 million in export sales

• 22 counties

• Top trade show markets:Germany, Japan, China and Canada

• 100% utilization rate of federal and state funds

Advanced Navigation and Positioning SystemsHood River, OR Grant: $5,000 Event: LADD trade show in BrazilImmediate Sales: $125,000Estimated Sales: $5 million

(12 jobs created)

Ride Development: Bumper Car MakerIndependence, ORGrant: $5,000 Event: DEAL in Dubai, UAEImmediate Sales: $408,000Estimated Add’l Sales: $100,000

Reasons why>

Metolius Mountain ProductsBend, OR Grant: $5,000 Event: Outdoor GermanyImmediate Sales: $2 millionEstimated Add’l Sales: $1 million

everyone

Break

Andrew Hoan

Portland Business Alliance

Kanth Gopalpur

Public comment, closing, adjourn