JUNE 10, 2014 Business Tribune -...

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INSIDEDOWNTOWN APPLE STORE

BLUE MOON CAMERA AND MACHINE

STUDENT LOAN DEBT

BIOJECT INJECTION TOOLS

SMALL COMPANIES,BIG DREAMSStartup sportswear companies making an impact in Portland

BY JOSEPH GALLIVAN

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2 BUSINESS TRIBUNE Tuesday, June 10, 2014

Support Local.

Dine Out.

Tuesday, June 10, 2014 BUSINESS TRIBUNE 3

As Nike and Adidas battle for global attention at the FIFA World Cup during the next month, other Port-land sportswear brands might

look like fl ies circling the 800-pound gorillas.Add Columbia Sportswear to that list since

they decided to try on prAna’s yoga pants for $190 million.

At the big fi rms, designers and marketers come and go, executives switch countries and silos, and everyone who isn’t climbing the cor-porate ladder is either dreaming of a startup or an acquisition.

Nonetheless, there are small players who fi nd ways to thrive in this ecosystem, which is an interesting mix of the analog and the digital, the face-to-face and the virtual, the global and the local, the screen based and the tactile.

Kyle Stevens and his wife make running tops in their garage two nights a week, under the brand One Leg Crow. These “technical” gar-ments are made of lightweight wicking fabric that runners prefer because they don’t chafe or

hold sweat. Stevens, 34, prints using the new sublimation technique, which works with high-resolution images up to 600 dots per square inch.

“I’ve been running for about six years and when you go to a race and look around there are only about four different types of shirts. I know runners want something a bit more col-orful to express their individuality, so I decided to make my own.”

He bought the $15,000 printer and press him-self. It’s a 44-inch Epson that prints on a special

matte paper, which is laid on the polyester fab-ric. It is then pressed at 400 degrees F. The ink turns to a gas and is absorbed permanently in-to the fabric.

Stevens, who has a BA in Global Supply Chain Management and works at Daimler, is a serial entrepreneur. His two other businesses, which he sold, were a reusable garden bag and a screen printing and embroidery shop in his home town Coos Bay.

BY JOSEPH GALLIVAN

“I’ve been running for about six years and when you go to a race and look around there are only about four different types of shirts. I know runners want something a bit more colorful to express their individuality, so I decided to make my own.”

— Kyle Stevens, One Leg Crow

SMALL COMPANIES, BIG DREAMS

Cubicle dwellers with itchy feet fi nd Portland an ideal place to make footwear, sports jerseys and other athletic and outdoor apparel. Here’s how they survive.

CONTINUED / Page 4

New Zealand apparel company Icebreaker made its US home in Portland seven years ago for the friendly culture, and the ability to test products in all weathers. PHOTO COURTESY OF ICEBREAKER USA


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He has no problem fulfi lling orders for $60 shirts — by hand — late into the night. He sells on Etsy.com, which is good for exposure. He pays $7 a week for their search optimization service, but he does much better selling direct on the website www.onelegcrow.com, which has only been going since December 2013.

One Leg Crow gets its fabric from Rose City Textiles near Montgomery Park, which in turn refers startups to him who want sublimation printing done. The most recent one was a woman who is making brightly-colored yoga pants.

“Some people have an idea and want to out-source every bit of the process they can,” he says. “I like the equipment and the process. The only two things I know I can’t do are sew-ing and selling.”

For now, he thinks he could make a living selling 450 shirts a month direct, since the mar-gins are good. But with a new job and a new baby, he is going it alone, taking it slowly and letting social media drive sales.

Annette Leiser has been at Rose City Tex-tiles for 35 years and sees a stream of Portland entrepreneurs who want to make athletic and outdoor apparel. “And dresses, and bags, blan-kets, shoes...They come in fearful of their idea being stolen. They’re baby businesses. I try to get them to crawl, then to walk, then to run out the door.”

For $150 anyone can take a four-hour course in using a Digital Cutting Table, which works from a computer program and cuts through several layers of fabric at once.

Sewing is $35 an hour, as is grading (making different sized protoypes). People can also get certifi ed on a Direct-to-Garment Trencher, an-other printing method, for $35 an hour.

“Portland is a hub right now,” says Leiser. “It’s the hip place to be, whether in supply chain or protoyping. You can feel the creative energy of all kinds of artists undertaking new things.”

Icebreaker is a medium-sized business which makes much-imitated Merino wool gar-ments beloved of runners, skiers and — if they crack this market — hunters. The New Zea-land company moved its US HQ to Portland seven years ago, preferring it to the A&C clus-ter around Boston, MA.

“Portland’s in a good time zone and it’s on the right coast to get to New Zealand,” says Li-sa Thompson, president of Icebreaker USA in the open kitchen of her Pearl District offi ce of 70 people. There are 80 at home in Wellington.

“It has a similar sensibility - wanting to get outside - and there’s a strong talent pool.”

The Portland offi ce is home for global prod-uct development, retail and e-commerce, and she can fi nd all those people locally, trained by

fi rms like Nike, Intel and Adidas. “And it’s relatively easy to encourage people,

even at executive level, to move to Portland.” In this case, Portland is more nice than

weird.“There’s an absolute willingness here to

share insights experiences, not trade secrets and innovative ideas. It’s easy for me to call up presidents of other brands and ask them how they’re experiencing something. It’s pretty neat.”

“On” (on-running.com) is a six-year-old run-ning shoe company from Switzerland started by a two friends and a three-time Ironman champion who was injured and whose feet needed achilles tendon support. On’s U.S. headquarters were in Tampa, Florida, (home of Ironman) until the founders discovered Port-land. In 2013, they moved it to a storefront in the Pearl District. Sacks of chunky soled shoes show up at the space, which is really a custom-er service offi ce. Curious passers-by have to be politely pointed to the website or retailers.

Adrienne McClellan, On’s North American Marketing Manager, tells a familiar story. The dozen or so U.S. staff love Portland so much that when they recently held their sales con-ference here, the highlight of their trip was running together in Forest Park.

On has fi ve shoe styles, ranging from seri-ous runners to casual walkers.

“In scale and energy, the founders thought Portland and Zurich were similar,” she says. “They like the vibe and the athletic community in Portland. They all ski, snowboard and surf and hike, and they wanted that feel here.”

Bill Amos is the founder of NW Alpine Gear which makes high-end mountaineering cloth-ing: $600 jackets and what he calls “the perfect climbing pants.”

Amos, 33, worked in the outdoor program at Mount Hood Community College for six years where he taught climbing and whitewater raft guiding.

“My dad was an entrepreneur, he started a ton of companies when I was growing up. I thought ‘There’s no way I’m ever starting my own business,’ having seen how much work it is.”

However, fate intervened. “I’d studied eco-nomics in college and in 2008 when the econo-my was tanking, I became fascinated with the recession and really interested in starting a business. I fi gured the only way the economy would recover was by making things and bringing manufacturing back to the US.”

Having been an Alpine skier and ice climber all his life (there’s a new route on the east face of Mt hood called the Frick Amos) chose out-door apparel. He got help from Cheryll Dailey

of the contract garment factory in Newberg, Frontline Apparel. He wanted clothes that let him focus on climbing, not worry about snag-ging them on a crampon — a stripped-down design and a fi t that suited the athletic climber. Hence the super lightweight (4.9 oz) water-proof Eyebright Jacket made from Dyneema fabric, which is a bit like Tyvek.

NW Alpine has just Amos full time and fi ve freelancers as design and production staff.

He too praises the Portland talent pool. He

■ From page 3“Portland is a hub right now. It’s the hip place to be, whether in supply chain or protoyping. You can feel the creative energy of all kinds of artists undertaking new things.”

— Annette Leiser

PAM PLIN M EDIA G ROUP: J OSEPH G ALLIV AN

M ud run: staff at Swiss running shoe company On run together in Forest Park during the week of their annual sales conference.


READY OR NOT, HERE THEY COME.

Stare the mighty T. rex in the eye—and it might just blink back!

Animatronic dinosaurs and the latest in fossil evidence bring the

creatures’ fascinating—and feathered—history to life.

found his fi rst people on Craigslist, although he had to sort through some craz ies before he met a woman with experience who guided him thought the manufacturing process.

“Local people makes the process a lot easier — making samples and prototypes, having fi t meetings in person with the technical designer, model and pattern maker.”

NW Alpine is a small company, with sales of a couple of thousand units every year, but it has doubled every year since 2 010.

Now at the point of needing an inj ection of capital, it’s diffi cult, as Portland is not known for its rivers of investment cash. He has thought about crowdfunding, but is worried it works best for startups rather than established brands.

“Portland has done a really good j ob of pro-moting the city as an athletic and outdoor in-dustry town,” he says, praising the Portland Development Commission, which recently took his and eight other companies on an ex-port mission to J apan. He networks with the PDC-run Athletic and Outdoor Y oung Profes-sionals group. He also has benefi tted from help from Business Oregon, the state’s economic de-velopment agency, and has made trips to the Expo show in Germany representing the state.

He also took a class in exports and has worked with the U .S. Commercial Service, a Federal organiz ation which promotes exports.

The goal is to stay with the core of climbing apparel, but at some point to launch a sister brand of technical lifestyle wear, rather like Pa-tagonia did.

City boosterism seems to be working. Ac-cording to PDC, there are 800 A& O companies in Oregon, with 15,000 j obs, 80 percent of which are in the Portland area.

Sucheta Bal, Athletic and Outdoor industry liaison for Portland Development Commission, has seen some brands come through the agen-cy’s peer-to-peer round table of nine A& O com-panies. Seamus Golf, a retro golf apparel store, was in the Startup PDX space at SE Salmon and Grand Ave, as was Flipside Hat, a bicycling hat company, and Handful sports bras.

“There’s defi nitely this culture of nurturing centers in this city, as opposed to ‘ Oh they’re j ust the competition,’ because everyone’s paths have crossed before,” says Bal. “There’s a good ecosystem of services and suppliers, of adver-tising people, marketing, fabric...people with deep ties in this industry who make it easy to get some help.”

Bal says Los Angeles is more heavily fo-cused on fashion and apparel, Boston on foot-wear, U tah on ski and sow. “We are the only city to have a collection of all those.”

The PDC released its fi ve year economic de-velopment plan in 2 009. AO was chosen as one of the core traded sectors because it creates j obs and infl uences outdoor recreation. “It was audacious and it turned out to be a prophetic document,”says her colleague Shawn U hlman, the Public Affairs Manager at PDC, adding that the PDC is working with Mayor Hales’s offi ce on what comes next.

David Sypniewski is the Founder and CEO of running shoe company SKOR A ( www.skora-

running.com) . Its asymmetric running shoes may look odd, but they make sense. They fol-low the line of the average foot, which is lon-gest at the big toe rather the middle toe. SKOR A makes a goatskin shoe that can last 1,000 miles, as opposed to the usual 400 miles of a synthetic shoe.

“We established ourselves in Portland, one, for the talent pool of footwear designers and marketers. And two, for the variety of environ-mental conditions: we can test our shoes in four seasons in extreme conditions all year around: hot, cold, wet, desert, coast or moun-tains. “

SKOR A, now with eight staff, launched in 2 012 but took from 2 008 to get from concept to reality, fi nding factories and sourcing capital. Shoes range from $90 up to $180.

“The industry is very small and connected. Portland is a hub and it’s nice being able to have beers after work with the others. We are local, but many of are global too.”

So far the talent traffi c has been one way. “We hear there is considerable poaching at the executive level, but we’re not part of that yet,” says Sypniewski.

The barriers to being a startup were, one, he came from outside the industry, j ust an inj ured runner who wanted a better running shoe.

Two, it takes an immense amount of capital to start making shoes. He compares it to the automotive industry.

“The cost of initial tooling and production testing is incredible, and without the immense marketing dollars of Adidas and Nike, pene-

trating that market is extremely expensive. That’s why many brands don’t make it. I’m in my mid-30s and I can count less than fi ve run-ning shoe startups in my time.”

He says the market for running shoes is growing at 6 percent per year because running is still growing. “The average marathon now has more women then men.”

Sypniewski didn’t like the arduous process of going through the angel investor network. Instead, “I was lucky enough to fi nd a wealthy individual investor who had an appetite for consumer products and the food and beverage industry.”

He says SKOR A is now growing at 110 per-cent a year but is “still under $10 million in yearly sales.”

PHOTO COURTESY OF ONE LEG CROW

Trippy: running shirts by Portland’s One Leg Crow use high resolution prints thanks to the sublimation print process.


By J OSEPH G ALLIV ANPamplin Media Group

As Apple developers whooped and hol-lered at the new features of the operating systems unveiled at the Worldwide Devel-oper Conference in San Francisco, Port-landers were oohing and ahhing at the fa-miliar tables and structural glass of down-town’s new Apple Store.

Exhumed from the Pioneer Place mall, the new 23,000 square foot Apple store shines bright like a diamond set in the din-gy side of the old Saks Fifth Avenue build-ing. Finally, Portland, a proud Mac town, has a temple to conspicuous consumption like everyone else.

In the virtual world, Apple announced a new programming language the same week called Swift, new privacy and performance features in Safari, an enhanced iCloud Drive, and all sorts of other stuff: Handoff, Instant Hotspot, Continuity and Family Sharing. Enough digital goodies for users and devel-opers to lose themselves in menus for months to come.

In the concrete world, Portland Apple fans lined up to look at last year’s model iPhone and iPad.

On a recent sunny evening, 49 blue T-shirt-ed specialists served about twice as many customers. The store, a sort of space age

longhouse without the clutter, was watched over by two guards inside and one outside, as well as countless cameras. The customers browsed reverently, or listened as staff ex-plained how the cool machinery make their lives better.

A skateboarder from Alaska was buying a large iMac and accessories, clearly enjoying the moment of his purchase. He also had just bought a Parrott quadcopter to fi lm himself as he skates, controlling it all with his iPhone.

From city to city, the Apple Store is an infi -nitely replicable sensuous experience: odor-less, bright and with few curves. Just being there is enough.

Apple’s stores are cash cows. In the fourth fi scal quarter of 2013, Apple’s retail stores had a total of $4.5 billion in revenue, up 6 per-cent from the year before.

It opened eight new stores in the quarter, for a total of 416 (162 are abroad). Revenue per was $10.9 million per store, with approxi-mately 18,500 visitors per store per week.

China in 2014 is Apple’s fastest-growing market. The company will triple the number of Apple Retail Stores there by 2016.

Portland’s Apple Store sits on a lovely raised stone platform. The test of whether it will contribute much to downtown’s shopping experience will be how many people camp there for the iPhone 6 launch — assuming the security guards allow that sort of thing.

Fans of Apple enter the new Apple store in downtown Portland.PAM PLIN M EDIA G ROUP: J AIM E V ALDEZ

From city to city, the Apple Store is an infi nitely replicable sensuous experience: odorless, bright and with few curves.

J ust being there is enough.

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By Pamplin Media Group

The need to retrofi t thousands of tank rail cars spurred the recent creation of a new company dedicated to creating a net-work of railcar repair shops.

On June 4, the Greenbrier Companies and Watco Companies announced that they would be creating GBW Railcar Services, a new company, in a 50/50 joint venture. The company will own and operate Greenbrier’s and Watco’s respective railcar repair, refur-bishment and maintenance businesses.

The new company will have a combined annual revenue of approximately $325 mil-lion distributed among 38 facilities across North America. GBW will employ more than 2,100 people and be led by Jim Cowan, who was recently hired as the CEO. GBW will be one of the largest independent rail-car repair shop networks in North America ranked by number of locations and geo-graphic diversity.

“The tanker recertifi cation was a factor on deciding to combine the companies, but it was by no means an exclusive factor,” Jack Isselmann, Vice President of External Affairs told the Portland Tribune.

The company’s combined network will fea-ture 14 tank car repair shops — 10 of which will be from Watco and four from Greenbrier — all certifi ed by the Association of Ameri-

can Railroads as required by federal regula-tions. Additionally, all 38 locations can per-form the type of general freight car repair and maintenance services that are consis-tently in demand and which are a core com-petency of both Greenbrier and Watco.

This joint venture blends complementary business expertise from each company allow-ing GBW to become one of the few repair shop networks able to service almost the en-tire range of railcar types in the North Amer-ican fl eet.

“The companies have known one another for a long period of time, but in terms of

structuring the deal, that all occurred in 2014,” said Isselmann.

Greenbrier’s strength is its network of re-pair shops is well dispersed geographically, allowing it to serve more customers across the country than Watco’s. Some repair shops are full-on repair centers like the 200 acres site inTexas. Others, six of them, are bare bones ramps by the side of a rail line.

The companies will have a team of 2,100 people, but will hire more welders and other craft people.

“This combination establishes GBW as a clear leader in the business of making tank

cars safer at any speed,” said William A. Fur-man, Chairman and CEO. “Demand for tank car retrofi t services from our customers to address the growing need for safe rail trans-port solutions has become robust. Greenbri-er’s and Watco’s shared approach to tank car safety advances both public safety and envi-ronmental protection, and strengthens the North American tank car fl eet.”

In addition to Jim Cowan’s role leading GBW, he will continue to serve as Senior Vice President, Operations for Greenbrier and maintain certain responsibilities at Greenbrier unrelated to GBW. Cowan is well known in the railcar industry with years of experience in senior leadership positions and extensive tank car experience. Most recently, he worked for Amsted Rail Group on assign-ment in Brazil, and served as President and Chief Executive Offi cer of American Railcar Industries, Inc. His total tenure at ARI was approximately eight years. Cowan is respect-ed for his ability to enhance gross margin performance at the organizations he has led. GBW will be governed by a Board of Direc-tors which will consist of four members - two appointed by Greenbrier and two appointed by Watco.

The Greenbrier, Watco news comes on the heels of an announcement that Greenbrier received orders for 7,000 railcar units in April and May worth more than $700 million.

Greenbrier, Watco form new company, GBWGreenbrier Companies, based in Lake Oswego, recently announced they, along with Watco Companies, would be creating GBW Railcar Services, which will be dedicated to railcar repair, refurbishment and maintenance.PHOTO COURTESY OF GREENBRIER


Stepping in the front door of Blue Moon Camera and Machine is like stepping into the history of photography, and into the history of my family.

Shelves are lined with cameras equipment from the pre-digital, pre-automation era, when photog-raphy wasn’t just another feature on your smart-phone.

There, sitting on the top shelf, is a camera with lots of meaning to me. It’s a Speed Graphic, and it’s the type of camera that my grandfather used for most of his career as a photojournalist. In the cas-es below, there are the Rolleifl exes and Nikons that my father used during his 46 years as a news-paper photographer. There are even the cameras that I used to start my career, before I made the leap to digital.

In December of 2001, Jake Shivery opened Blue Moon Camera and Machine on North Lombard Street in St. Johns. Although customers might be excused for thinking it as an antique store fi rst, “We’re not an antique store,” says Shively emphat-ically. “Sometimes we’ll sell a 100-year old camera, but we’ll sell it because it works, and does what it was meant to do 100 years ago.”

History matters at BLUE MOON CAMERA AND MACHINE

Customer- turned-employee J im Hair demonstrates the use of a 4x5 - inch camera. “Portland is a beautiful city for photographers,” he says, and many Blue M oon customers use the large format cameras.

Each of the typewriters ( below) that Blue M oon sells is fully restored, has a new ribbon and a warranty.PHOTOS CONTRIBUTED BY J OHN M . V INCENT

JohnVincent

H E R I TA G E M AT T E R S


The shop specializ es in all things photogra-phy, leaving off where the industry turned digital. They support photographers who shoot fi lm, instant photography media, and use alternative photographic processes.

“We disagree with the notion that this stuff is obsolete,” says store manager Z eb An-drews.

“In an off way, we’re becoming a tourist at-traction,” says Shively.

In addition to the gear, they operate a photo processing lab that can process fi lm that hasn’t been made in years — sometimes de-cades — in formats that are long-forgotten to all but a few labs in the world. In the back there’s a full darkroom, where the magic and art of optical printing is alive and well. Cus-tomers ship fi lm to the shop from around the country for processing.

If you miss the smell of the darkroom like I do, wander towards the back of the shop and take in the full aroma of photographic history.

Besides Shively, there are nine other em-ployees, plus two contractors. “Everyone who works here is very active photographer,” say

Shively. The c3: initiative gallery, j ust down the street from Blue Moon at 7 2 36 N. Chicago Ave-nue is hosting the staff’s annual exhibition through J uly 12 .

“It’s rare that a day goes by that I don’t’ learn something new, even after 12 years here,” says Andrews. “I’m pretty immersed in it. It’s like learning French by moving to

France.” While Andrews has gained knowledge of a

vast array of cameras, he says it’s common for customers to come in with cameras that they’ve been using for decades and know ev-ery last detail about their use.

Y oung people make a good portion of Blue Moon’s customers, seeking their fi rst “real”

camera. Andrews works with them to fi nd the right fi t, and tries to impart enough knowl-edge to give them a head start.

“It’s one thing to sell them a camera, it’s an-other to make them a long-time customer,” he says.

“My personal goal is that every cool me-chanical thing in the northwest will eventual-ly pass through our hands,” says Shively, “and we’re well on our way.”

John M. Vincent is a third-generation Oregon jour-nalist. He can be reached at [email protected]. He welcomes your suggestions for this column.

The Speed G raphic was once the tool of choice for j ournalists, and Blue M oon owner J ake Shively regards the camera as one of the most versatile ever produced.

Doz ens of lenses fi ll the display cases, and each and every one of them performs j ust as it was designed to do when new.

Blue M oon Camera and M achineOwner: Jake Shivery10 employees2014 sales: Projected $1 million 8417 N Lombard St, Portland, OR 97203(503) 978-0333Web: bluemooncamera.com


YOURBUSINESSEmail your business briefs to:[email protected]

Deadline nearing for Startup PDX Challenge

Startup PDX Challenge, an annual international competition to connect startups to Portland’s growing entre-preneurial ecosystem and assist the businesses for one year through their early stage growth, has been taking applications since May 20. The June 23 deadline for applicants is fast approaching.

Up to six startup businesses will receive a $15,000 working capital grant, a full year of rent-free offi ce space in the New Market Theater building at 115 SW Ash in Portland’s Old Town Chinatown neighborhood, free professional advice and servic-es, and free access to entrepreneur-ial organizations and programs. For-profi t startups in any industry are invited to apply, with particular emphasis on companies that are led by teams or founders who are di-verse in terms of gender, race and other demographics that are typi-cally underrepresented in the start-up community.

The emphasis on diversity in this year’s Challenge builds on a multi-year initiative PDC launched this spring, Include. Innovate. Invest. Portland, which seeks to increase high wage jobs in the innovation economy for underrepresented pop-ulations.

Finalists will be selected by early September; the full year program begins Oct. 1. Interested applicants may schedule a call or in-person ap-pointment during Challenge offi ce hours for assistance in completing the application available at: pdc.us/startuppdxchallenge.aspx

Dutch Bros. celebrates Raleigh Hills location with community give-b ack Last Friday, June 6, Dutch Bros. Coffee opened a new location at 5482 SW Beaverton Hwy. in Raleigh Hills, and all 16-oz. drinks were just $1 with proceeds benefi ting Wilson High School.

Locally owned and operated by Mike Gonzales and Tina Thompson, this will be their second Dutch Bros. location with their fi rst located at 8940 SW Hall Blvd., Beaverton.

“We are thrilled to be opening a new location in SW Portland,” said Tina Thompson. “It’s not just about serving great coffee, but building re-lationships and getting involved with our local community.”

The new location will be open 5 a.m. to 10 p.m. Sunday through Thursday and 5 a.m. to 11 p.m. on

Fridays and Saturdays.Since opening in 2008, Mike and

Tina have given back over $20,000 to local causes including, Playworks, Beaverton High School Jam The Dam, Make-A-Wish Oregon, Muscu-lar Dystrophy Association and local schools.

“I think it’s awesome we have the opportunity to give back to our local community,” said Tina. “It’s an amazing feeling to help others.”

M arathon Education Partners is now M arathon Scholars

After over a decade of successful-ly helping youth in the Portland-Vancouver metro area achieve their education dreams, Marathon Educa-tion Partners has changed their name to Marathon Scholars.

“We feel the new name and logo refl ect our strong focus on youth and our ongoing commitment to re-duce the damaging achievement gap that continues to persist in our coun-try,” said Executive Director, Emma Gray.

Marathon Scholars is connecting 4th grade students with volunteer mentors who provide support and encouragement all the way to college and beyond. Marathon Scholars also engage in a wide

variety of college awareness and access enrichment and are eligible to receive a $12,000 scholarship to college.

W ood Tatum merges with Lindsay Hart

Oregon’s oldest law partnership, Wood Tatum, announced it will merge its historic maritime practice into Lindsay Hart, another storied Portland admiralty fi rm.

“After 144 years in practice, we saw an opportunity to bring togeth-er our 75 years experience in mari-time law with Lindsay Hart’s excep-tional talents,” said Todd Zilbert of the Wood Tatum fi rm. “Together, we look forward to continuing to pro-vide superior service for our cli-ents.”

Goods and services that move by water and the vessels and maritime workers that move them are subject to maritime and admiralty law, which is often quite different than land-based law.

Wood Tatum was established in 1870 under the name Durham & Ball. The fi rm’s former partners have in-cluded three generations of Wood family lawyers, from C.E.S. Wood, who joined the fi rm in 1887, to his son Erskine Wood, to grandson Ers-kine B. Wood. Lindsay Hart, LLP was founded in 1937 by Gunther

Krause and serves as litigators and counsel to some of Oregon and Washington’s most successful com-panies and individuals.

From small charter boat opera-tors to ocean-going cargo vessels, Lindsay Hart will continue to offer exceptional service for its maritime clients by forging strong relation-ships built on trust, skill, and client advocacy.

TriM et recogniz es its best operators of the year

Nine TriMet operators were re-cently recognized for their out-standing performance, with three selected as Operators of the Year.

Operators qualify for the annual award based on outstanding driving records, customer service and atten-dance, with the winner selected by their peers. Six other operators were honored for reaching 1 million miles of safe driving.

This year, Andy Church was hon-ored as TriMet’s Bus Operator of the Year. Jason Wang was chosen for light rail’s top award as MAX Opera-tor of the Year. Fernando Lopez was selected as the Mini-Run, or part-time, Bus Operator of the Year.

The ceremony also included rec-ognizing six operators who have achieved an impressive safety mile-stone: 1 million miles of safe driving. Bus operators Dowell Kearney, Sally Knigge, Brian Lundquist and James Pope; and MAX operators Jean Strickland and Michael Williams have all achieved 1 million miles of safe driving. This distinguished Mil-lion Mile Club record has been achieved by more than 30 active and retired bus and MAX operators.

“This is my favorite day of the year when we formally thank our operators, who everyday deliver safe service with great customer service skills. They do an amazing job for the entire region and we can’t thank them enough,” said TriMet General Manager Neil McFarlane.

Seven recogniz ed for international trade leadership

What do a bicycle helmet compa-ny, a band called “Pink Martini” and a Grants Pass manufacturer of air quality monitoring equipment have in common? They were all among the recipients of the international business awards presented by the Oregon Consular Corps and other regional government, international trade and business leaders at the May 19th Celebrate Trade event.

As part of World Trade Week, the annual event recognizes the signifi -cant contribution Oregon’s traded sector companies make to the re-gion’s economic vitality and quality of life. Awards were given in seven categories.

This year’s award recipients in-cluded:

Bob’s Red Mill Natural Products - Governor’s Trade Leadership Award

Met One Instruments, Inc. - Ore-gon Export Leader

Shimadzu USA Manufacturing, Inc. - Foreign Direct Investment

ZGF - Global LeaderNutcase Helmets - New ExporterMaria Wulff, President World Af-

fairs Council - Individual AchievementPink Martini - Ambassador AwardThe “Celebrate Trade” event also

M ike G onz ales and Tina Thompson recently opened a Dutch Bros. in Raleigh Hills. The husband-wife team opened their fi rst Beaverton location in 2 0 0 8 .PHOTO COURTESY OF DUTCH BROTHERS

CONTRIBUTED PHOTO

Bus Operator Andy Church, TriM et G eneral M anager Neil M cFarlane, M AX Operator of the Year J ason W ang and M ini- Run/Part- Time Operator of the year Fernando Lopez . Operators q ualify for the annual award based on outstanding driving records, customer service and attendance, with the winner selected by their peers. Six other operators were honored for reaching 1 million miles of safe driving.


YOURBUSINESSraises funds for the Oregon Consul-ar Corps Scholarship Program, which provides scholarships to stu-dents at Oregon universities. These funds allow Oregon’s next genera-tion of leaders to study abroad, gain international experience and ex-pand their own cultural competence as they prepare to enter an increas-ingly global workplace.

Business Oregon, the City of Port-land, Greater Portland Inc., Oregon Consular Corps, Oregon Department of Agriculture, Pacifi c NW Interna-tional Trade Association, Portland Business Alliance, Portland Develop-ment Commission, the Port of Port-land, and the U.S. Department of Commerce hosted this year’s event.

Three Ogletree Deakins attorneys ranked in Chambers USA

Ogletree, Deakins, Nash, Smoak & Stewart, P.C. recently announced that Larry Amburgey, Leah Lively, and Howard Rubin, shareholders in the fi rm’s Portland offi ce, have been included in the 2014 edition of Chambers USA, an annual ranking of the top U.S.-based law fi rms and lawyers in an extensive range of practice areas. In total, the fi rm’s of-fi ces in 20 states and the District of Columbia, as well as 79 of the fi rm’s attorneys, have been included in the 2014 edition.

Julie Taylor named executive director for Miramont Pointe

Miramont Pointe, a senior living and health care community, man-aged by The Goodman Group, re-cently announced the appointment of Julie Taylor as executive director.

The appointment was announced by Craig Edinger, vice president of senior living & health care, The Goodman Group, who manag-es Miramont Pointe. As execu-tive director of Mi-ramont Pointe, Tay-lor plays a key role

in the management of all depart-ments and processes, and providing information and direction to all staff, while maintaining consistent stan-dards throughout every building.

“Julie has extensive experience in health care management and has been successful in leading teams to achieve numerous awards. Her

hands-on style of leadership, com-mitment to excellence, and passion for seniors will make her a valuable addition to the team at Miramont Pointe,” said Edinger.

Taylor brings more than 15 years of experience in senior living and health care to her new position

Oregon Primary Care Association honors seven health care professionals

Residents of the Portland metro area can look forward to better health, thanks to the work of seven health care professionals: Lisa Boz-zetti of Virginia Garcia Memorial Health Center, serving Washington and Yamhill counties; Steve Harden-bergh, Amy Hardy, Meghan Hart, Rachel Solotaroff and Leslie Tallyn, all of Central City Concern’s Old Town Clinic in downtown Portland; and Brian Sandoval of Yakima Val-ley Farm Workers Clinic in Portland and Woodburn.

The Oregon Primary Care Associ-ation (OPCA) recognized these health care professionals through its annual Health Center Leadership awards. OPCA’s awards honor Ore-gonians who contribute to the suc-cess of the state’s network of com-munity health centers. Health cen-ters provide comprehensive, cultur-ally competent primary care to more than 358,000 Oregonians in medically underserved communities.

Bozzetti won awards in the “Growth” and “Sustainability” cate-gories for her leadership in provid-ing oral health services to vulnera-ble and underserved populations in Washington and Yamhill counties. Hardenbergh was recognized with an “Innovation” award for his pio-neering “Hot Sauce” program to in-tegrate addictions treatment into primary care. Hardy and Hart also received “Innovation” awards, for implementing and improving the SBIRT program at Old Town Clinic. Under SBIRT (Screening, Brief In-tervention & Referral to Treat-ment), every patient is screened for substance abuse and referred for follow-up as appropriate.

Solotaroff and Tallyn were hon-ored in the “Health Equities” cate-gory for fostering strong relations and referrals between Old Town Clinic and agencies that break down external barriers to good health, such as poor housing and lack of employment. Sandoval received a “Leadership in Transformation” award for his work in integrating behavioral health and medical care and for developing and delivering

training to all staff of the Yakima Valley Farm Workers Clinic. His curriculum teaches staff members to help patients better manage their own health.

Joint venture will lead to a new distribution center on Airport Way

PCCP, LLC recently announced it has formed a joint venture with Specht Development, Inc. to specu-latively develop Interstate Cross-roads Distribution Center, a Class A, 493,000-square-foot industrial build-ing in the Airport Way submarket of Portland.

Situated on 28 acres of land, the speculative crossdocked distribution facility will offer 32’ clear height and suffi cient bay depths to divide the building into multiple suites if nec-essary. The property is within the Airport Way submarket which is lo-cated north of the city along the Co-lumbia River. This prime industrial submarket benefi ts from easy ac-cess to the Port of Portland, Port-land International Airport and In-terstates 205 and 5.

“We see this project as a strategic investment for PCCP,” said Michael Hoyt, vice president with PCCP, LLC. “In addition to working with Specht, an experienced and proven developer and owner in the Portland area, the Airport Way submarket has a pent-up demand for large block space that can accommodate users requiring more than 100,000 square feet. This institutional-quali-ty project will meet a need for cor-porate users in a region that is growing at a rate well above the na-tional average.”

The joint venture plans to break ground on the project in June of this year with completion anticipated for the summer of 2015.

Laika to spin off advertising division

Laika has chosen to concentrate on its commercial fi lm division and spin off the advertising/commercial division of the Portland company.

Laika/house President Lourri Hammack, Creative Director Kirk Kelley and Managing Director of Strategic Operations Al Cubillas will lead a new studio specializing in short to mid-form animated con-tent for advertising and broadcast markets. Laika plans to continue operations under the Laika/house banner as it transitions work to the new studio over the summer months.

TAYLOR

Newspaper division at Pamplin Media Group expands staff

The Pamplin Media Group’s newspaper division, which includes the Portland Tribune and 24 community newspapers, has hired six longtime newspaper pro-fessionals as it continues to expand its operations and areas of coverage.

The staff additions include fi ve newly created positions that will broaden the newspaper group’s highly localized news coverage and also add capacity to its advertising staff. The additional positions include a state government reporter, two regional reporters and a busi-ness reporter.

“These strategic hires will allow us to deepen our coverage, adding more investigative and enterprise journal-ism to our mix,” says the newspaper group’s President Mark Garber. “We are thrilled to welcome such high-quality journalists to our team.”

In addition to expanding the reporting staff, the Pamplin group also has hired two other longtime newspaper managers to assist with news and advertising operations.

The six recent additions to the staff include:

■ Peter Wong, former statehouse reporter for the Salem Statesman Journal, who will cover state govern-ment for the Pamplin group. Wong has three decades of experi-ence on the capi-tal beat for the Statesman Journal and other Oregon newspapers.■ Kendra

Hogue, a former custom publica-tions editor at the Oregonian, who will cover Washington County government and serve as a regional reporter for the Pamplin group. Hogue worked at the Oregonian for 16 years. Prior to that, she worked at the Portland Business Journal.

■ Joseph Gallivan, a former

Portland Tribune reporter and former business reporter for the New York Post, rejoins the Tribune to cover business. Gallivan’s work will appear in the newly launched Portland Business Tribune, as well as in the news section of the Tribune and other Pamplin papers.■ Shasta Kearns Moore, former

editor of Pamplin’s West Linn Tidings, also rejoins the Pamplin group as a regional reporter for Clackamas County. A 2002 graduate of the University of Oregon, Kearns Moore also worked as an intern at the St. Petersburg (Florida) Times and as a reporter for the Pamplin group.■ Rick

Fryback, former automotive sales manager for the Oregonian, has joined the Pamplin group to head up major accounts and automotive sales. Fryback worked at the Oregonian for 20 years and has more than 30 years experience in the Oregon news-paper industry.■ Gary Stein,

who previously worked at the Oregonian for 26 years, has joined Pamplin as the editor of the Lake Oswego Review. He replaces retiring Editor Martin Forbes, whose news-room leadership helped the Review garner numerous general excellence awards in the past 13 years. Stein has 36 years of experience that led him to positions of increasing responsibility at three major metropolitan newspapers, including the Oregonian.

The staff expansion follows 18 months of steady growth for the Pamplin newspapers. In that period of time, the group’s owner, Robert Pamplin Jr., acquired eight additional community newspapers. The Pamplin group also increased the Portland Tribune’s frequency from once a week to twice a week, and it launched the Portland Business Tribune.

WONG

KEARNS MOORE

FRYBACK

STEIN

HOGUE

GALLIVAN


By PAMELA ELLGENFor Pamplin Media Group

W hile W inslow C rane-M urdoch was b usy writing his fi nal paper at C onnecticut C ol-lege, he watched his fellow students search-ing desperately for employment. Their stress and lack of results got him to think-ing ab out whether the promises of higher education were paying off.

It’s been sold as the pathway toward up-ward mobility, but staggering student debt and scarce employment prospects have left many recent graduates struggling to even sur-vive. At last count, current student loan debt in the United States stood at 1.2 trillion dollars, digging into the pockets of millions of borrow-ers each month.

“There’s a lot of news reporting on student debt, but like most economic issues, it’s all fo-cused on the numbers,” Crane-Murdoch ob-served. “But what does that really mean in terms of the human impact? What is debt doing to these people?”

After a frenzied Kickstarter campaign, he set out across the country in an aging SUV to interview young, indebted college grads for a documentary titled simply, “What Now?”

In April, he stopped in Portland and met with several local graduates drowning in debt. His fi rst interview was with a graduate from a

local for-profi t school who walked away with a degree and $120,000 in student loans. He now works at a gas station. Understandably, he didn’t want to talk to local media.

“It’s kind of interesting because a college degree is propped up as something that’s go-ing to give you more economic power,” he says. “Paradoxically for a lot of people it’s do-ing the opposite.”

He believes that the promise of a good edu-cation has been oversold while its costs have skyrocketed and living wage jobs have been snatched up by an overabundance of newly ed-ucated applicants.

The numbers suggest he might be on to

something.

Rising Costs and Sagging Income Between 2001 and 2011, Oregon saw a

36-percent increase in college enrollment for four-year degree programs. During roughly the same time period, the cost of a college edu-cation rose steadily. In 2003-2004 academic year, the national average cost for a four-year degree from a private nonprofi t institution was $24,071 annually. Ten years later, it had risen to $30,094, a 25 percent increase.

In Oregon, the current numbers are even higher, with private universities charging as much as $47,000 annually for tuition alone.

The climb was even more dramatic for pub-lic institutions, where the annual cost rose from $5,900 to $8,893 over the same years, an increase of over 50 percent.

Meanwhile, average household income steadily declined. From 2003 to 2011, income among college graduates ages 25 to 34 dropped by about 7 percent, according to a re-port ironically titled “Education Pays; The Benefi ts of Higher Education for Individuals and Societies,” published in 2013 by The Col-lege Board.

“What you’re seeing is that piece of paper is losing its value while its cost increases,” Crane-Murdoch says. “What business is able to increase cost and decrease value?”

One of the fundamental measures of value — the one the federal government uses to de-cide whether schools are eligible for Title IV funds such as student loans and work study — is whether a school is educating students to obtain gainful employment in a recognized oc-cupation.

For-profi t higher education institutions in particular are coming under increasing pres-sure to prove that they’re actually doing this. On March 25, the Department of Education proposed regulations that would establish a framework of accountability and require greater transparency about student out-comes. It cited “aggressive and deceptive

STUDENT LOAN DEBT hamstrings borrowers and slows economy

DREAMSTIME PHOTOS


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marketing and recruiting practices” that lead to prospective students being manipu-lated into making a fi nancial investment in higher education that was against their in-terests. Ouch.

A former enrollment counselor from the Art Institute, who spoke on condition of ano-nymity, described the organization’s recruit-ing practices as predatory. “It’s all about your numbers,” he said. “They wouldn’t call them quotas, but they wanted you to stay at a cer-tain level. They were always over my shoulder [saying], ‘I don’t care what it takes to get ‘em in, call ‘em 10 times a day. You need to get those butts into class.’”

The results of aggressive marketing prac-tices are that students are saddled with “unaf-fordable levels of loan debt in relation to their earnings, or leading to default,” the Depart-ment of Education says.

Effects on Housing In addition to the obvious fi nancial bur-

den and psychological toll of carrying heavy debt loads, young graduates face far-reach-ing consequences that affect not just them-selves and their families but the overall economy as well.

The National Realty Association has ob-served that the typical age for fi rst-time home buyers is creeping up from its typical position in the early-30s. The organization attributes the rise to high student debt loads, among other economic factors.

In his interviews, Crane-Murdoch has found many borrowers who said they would be renters for life because their student

loan payments are equivalent to a mortgage payment.

Not only are young people remaining renters for longer, they’re also often moving back in with parents after college. Accord-ing to the US Census Bureau, between 2001 and 2011, household formation fell from a peak of over 2.5 million to as low as 500,000.

“A lot of the decisions that have empow-ered out economy in the past —buying a house, buying a car, having kids — require going into debt and people who are already in debt are less likely to take on more debt,” Crane-Murdoch says. “So what you see is a lot of people delaying a lot of those adult de-cisions that they might have made earlier in

the past.”

Effects on Public Sector Jobs in the public sector — teaching, social

work, and law enforcement, for example — often require a high degree of education. Obtaining an undergraduate degree from a lesser-expensive local private school, such as Pacifi c University where tuition for a four-year degree is roughly $105,000, coupled with a master’s degree from a state school, could easily add up to $150,000 in student loans, especially given the additional costs of hous-ing, books, and fees.

However, starting salaries in these profes-sions in Portland are between $43,000 and

$47,000 a year. Try making a $1,700 (based on a 10-year repayment schedule at 6.8 percent interest with no loan fees) a month loan pay-ment on that.

Income-based repayment is an option for some students, and those in the public sector could see unpaid balances forgiven at the end of 10 years. It’s 25 years otherwise.

However those with private loans are out of luck. Moreover, at the end of the program, debt forgiven could end up being reported to borrowers as income on a 1099-C. If someone has half of a $100K loan forgiven, for example, they could end up owing $10,000 in income taxes. The present information on the IBR site says, “We are hopeful that this issue will be resolved before any borrowers qualify for for-giveness through IBR.”

Effects on InnovationOne of America’s greatest assets has al-

ways been our ability to innovate. But, when Sallie Mae is calling three times a day de-manding money, risk taking and innovation are the fi rst to go.

That reality is one of the driving questions behind “What Now?”

“The promise of college is that you get out and you get to look forward to everything that’s in front of you. How do you do that when you have this tether that’s pulling you back? How do you take risks, how do you in-novate?” Crane-Murdoch wonders.

In this respect, the lasting effects of the stu-dent debt crisis may not be realized for many years, long after debts have been paid and credit scores healed.

1 4 BUSINESS TRIBUNE Tuesday, June 10, 2014

By G EOFF PURSING ERPamplin Media Group

If you ask Ri ck S tout, the future of medicine is located in a small offi ce b uild-ing on S outhwest S andb urg S treet.

It’s there that Stout and his colleagues at Tigard’s Bioject Medical Technologies have been developing what they see as the solu-tion to a major problem: Syringes with sharp, pointy needles.

For more than two decades, Bioject has been making needle-free injection systems.

Being able to give vac-cinations or inject medication without needles not only pre-vents disease, Stout argues, it also helps children — who can be terrifi ed of needles — to not be afraid of doctors.

“If you are a doctor in most parts of the world, the second kids see these long, scary needles, they literally hide,” said the compa-ny’s president, Mark Logomasini. “You

can’t explain enough to them how benefi cial that shot is and have kids come out and wel-come the opportunity. It’s too scary.”

Needles have long been the standard for injections, said Stout, the company’s chief medical offi cer, but they have also been the cause of serious problems through the use of contaminated needles and challenges with disposing of the syringes after use.

“We know that there are patients at home injecting themselves every day with various medications, and that needle goes in a milk carton under the sink and then in the gar-bage at the end of the week,” Stout said. “It’s a global problem.”

Change comes slowlyInstead of needles, Bioject’s devices are

able to force medication into the skin using high-speed fl uid.

Needle-free syringes are connected to an injector and pressed against the skin, where the medication is forced through a tube thin-ner than a human hair.

“In that syringe is $50 million worth of tech-nology,” Logomasini said. “That’s the kind of investment that has gone into that product.”

With a soft hiss, mediation is delivered in less than a quarter of a second.

“They are faster, more reliable and also less painful,” Stout said. “By the time they are done making a joke with a child, the vaccination has been given, and they don’t realize it.”

The devices are also safer than needles be-cause there’s no way to accidently prick your-self, Stout said.

“You can never spread infectious diseases with this,” Stout said, examining the small needle-less syringe. “There isn’t a way to spread it. If a child gets hold of this vial, they couldn’t re-use it. It has no value at all.”

It’s like something out of science fi ction, he added.

“It’s very ‘Star Wars,’” Stout said. “It’s very creative and very new.”

Bioject’s devices have been used in Holly-wood fi lms. “Batman Begins” used one of Bio-ject’s devices to cure people of a brain-alter-ing toxin.

“We’re pretty proud of that,” Stout said.But changing old habits is hard. Doctors

have been using needles to give injections for centuries, Stout said. Getting people to adopt a new technology can be a tough sell.

“It takes a long time for clinicians, doctors and nurses to convert to something different,” Stout said. “Once they start to convert, it be-comes natural to them, but that takes time.”

The biggest hurdle for the company so far,

Logomasini said, is the price. “A needle costs about a nickel to make. Our

device lasts forever, but each syringe costs about a dollar,” Logomasini said. “That’s a 20-fold difference. You have to be able to justi-fy that.”

Logomasini said if injuries caused by nee-dles were factored in, the cost between nee-dle-free devices and traditional syringes is about even.

“The accidental injection or cross-contami-nation of an unintended patient with a dirty needle, or the potential of hepatitis or HIV are so much greater,” he said. “That cost is spread out and covered by insurance compa-nies. Nobody ever sees that effect.”

G lobal focusUntil a few years ago, the company em-

ployed about 100 people at its world head-quarters in Tualatin.

From there, the company manufactured and sold devices all across the country.

But that changed in October 2011, Logoma-sini said, when the Federal Drug Agency is-sued warnings to people about not trusting needle-free devices to get fl u shots.

The FDA said needle-free companies should run clinical trials on each vaccine to prove that its devices could be used safely in each instance.

It was a small change, but Logomasini said it has had big impacts.

“We went from 100 people in Tualatin to about 10 people in Tigard,” Logomasini said. “It turned the tables against Bioject and against vaccine companies. Most people don’t understand the drug development process. It’s a bit like shooting craps, blindfolded, and with only one dice. It is that hard to get some-thing from the concept phase to commercial

approval. So adding that additional element of risk for needle-free technology was enough.”

Today, Logomasini said the company does about half of its work outside of the country in Africa, South America and Asia.

“There’s an old Yogi Berra quote ‘Hit ‘em where they ain’t,’” Logomasini said. “That’s what we’re doing.”

The company works with groups such as the World Health Organization and the Cen-ters for Disease Control and Prevention.

“Frankly, the regulatory hurdles here are at a point where we needed to go to places where needle-stick injuries are recognized as the public health catastrophe that they are,” Logomasini said

Bioject wants to corner a very specifi c mar-ket, Logomasini said: Parts of the world where the risk of needle-stick infections is high, but also with a growing middle class able to afford the devices.

“On the surface you ask, ‘How big can that market actually be?’ But the percentage basis of your adoption rate can be zero-point-some-thing percent there, and the sales volume can be huge.”

This month the company announced that it would begin selling its devices in China due to an agreement with a pharmaceutical drug company with ties in the area.

“We have an offi ce in Kazakhstan, we have an offi ce in Nigeria. That’s where the empha-sis is right now,” Logomasini said.

Clinicians are able to inoculate whole vil-lages without the risk of cross-contamination, and the needle-free environments help chil-dren be more comfortable, Stout said.

“I’d like to see the company continue to grow globally,” he said. “We have been pretty focused on the U.S. market for many years, but now I do lot of my work in India, Africa, Singapore, etc.”

In the next 10 years, Stout said needle-free syringes will become more popular and will help to keep people all around the world healthier.

“It’s a disaster,” Stout said. “We have to get rid of them. We have to get them out of these high-risk areas.”

It may seem like science fi ction, but Tigard company says soon doctors won’t use needles

Needle-free: Bioject crafts injection tools

PAM PLIN M EDIA G ROUP PHOTOS: JO NATHAN HOUSE

Rick Stout, head medical offi cer for Bioj ect, describes the process of the company’s needless inj ection devices.

The Bioj ect device has no needle. Instead, it delivers liq uid through a narrow, high- powered stream that penetrates the skin.

Ravinder Singh performs q uality control on Bioj ect devices at its offi ce.

Bioj ect’s devices have been used in Hollywood fi lms. “Batman Begins” used one of Bioj ect’s devices to cure people of a brain- altering toxin.


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THE ECONOMICS OF FILMTHE DOWN AND DIRTY

ON PORTLAND’S BURGEONING FILM BUSINESSBY KENDRA HOUGE

MARC

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WHY FLEETS ARE TURNING TO

ALTERNATIVE FUELS

BY JOHN M. VINCENT

INSIDESHWOOD’S ERIC SINGER

UNITED GRAIN LOCKOUT

THE RETURN OF SMELT

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