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Transcript of Open For Business Magazine - June/July 12 Issue
FOR BUSINESS
J
UN
E/J
ULY
20
12
VOLUME 11, ISSUE 3 USA $3.95
CANADA $6.95
World
Local businesses brave international waters
opportunityof
THE EUGENE AREA CHAMBER OF COMMERCE: CELEBRATiNG…PROMOTiNG…iNFORMiNG BUsiNEss
FEATURES
7 How tax-planning opportunities can
help smooth a company’s way across
borders.
15 Why moving jobs overseas is
neither good for our economy
nor fair to our well-trained and dedicated
workforce.
17 Demystifying the movement
of cargo associated with
freight forwarding.
COLUMNS/ DEPARTMENTS
4 YOUR CHAMBER WORKING
FOR YOU
18 BUSINESS NEWS
25 OPINION: Exports are
playing an increasingly
important role in Oregon and the
nation’s economic growth.
ADVERTisER iNDEX
Publisher
David Hauser, CCE President, Eugene Area Chamber of Commerce
Editor
Susan G. Miller, Director of Publications & Information Systems
Eugene Chamber Executive Committee
Marvin Re’Voal, Chair Pacific Benefit Planners
Sheryl Balthrop, Chair-Elect Gaydos, Churnside & Balthrop PC
Ann Marie Mehlum, Vice Chair Summit Bank
Eric Forrest, Past Chair Pepsi Cola Bottling of Eugene
Cathy Worthington, Treasurer Worthington Business Services
Advertising
Eugene Area Chamber of Commerce 541.484.1314
Design/Layout
Asbury Design 541.344.1633
Printing
TechnaPrint, Inc. 541.344.4062
Eugene Area Chamber of Commerce
1401 Willamette St. Eugene, OR 97401
541.484.1314
www.Facebook.com /EugeneChamber
Open for Business: A publication of the Eugene Area Chamber of Commerce (USPS-978-480).
Open for Business is published bimonthly by the Eugene Area Chamber of Commerce in February, April, June, August, October and December. Circulation: 4,700.
Open For Business © 2012
The subscription price is $25, included in membership. Periodicals Postage Paid at Eugene, OR.
POSTMASTER: Send address changes to Eugene Area Chamber of Commerce, P.O. Box 1107, Eugene, OR 97440-1107
FOR BUSINESS
J
UN
E/J
ULY
20
12
VOLUME 11, ISSUE 3 USA $3.95
CANADA $6.95
World
Local businesses brave international waters
opportunityof
THE EUGENE AREA CHAMBER OF COMMERCE: CELEBRATING…PROMOTING…INFORMING BUSINESS
Mark McGinley discusses the importance of minimizing your worldwide effective tax rate when doing buinsess overseas. PAGE 7
COVER STORY >>
8 Exporting a product to the other side
of the globe is no simple matter. Three
local businesses share their success stories.
Pictured: Martin Ambros, CEO of Eugene-
based Air-Weigh and Robyn Willoughby,
president of Eugene-based Champion
Technologies, Inc.
Photography by Loveall Photo www.loveallphoto.com
Art direction and design by Asbury Design www.asburydesign.net
contentsJ U N E /J U LY 2 0 1 2
Eugene Chamber “Open for Business Magazine” ~ 7.375x4.8125 ~ 1/2 Page 4C ~April/May 2012 Insertion ~ Lending Ad ~ EUGENE Market
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23 Arts and Business Alliance24 BRING Recycling14 Century Bank16 Chambers Productions/KEZI19 Energy Trust of Oregon27 Eugene Airport
18 Evergreen Roofing26 EWEB20 Funk/Levis & Associates19 Gant Construction6 Hershner Hunter, LLP13 Home Federal Bank
21 Imagine Group2 Isler CPA28 Kernutt Stokes 24 Moss Adams2 Pacific Continental Bank22 SCORE
21 Servicemaster17 Sittner & Nelson, LLC18 Siuslaw Bank20 Summit Bank14 TechnaPrint22 Travel Lane County
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 54 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
Y O U R C H A M B E R W O R K I N G F O R Y O U
Chamber program prepares 26 for future community leadership positions
Chamber promotes expansion of Riverfront Research Park
Twenty six up-and-coming community leaders graduated in May from the Leadership Eugene-springfield program.
Chambers’ ACE awards honor several top local educators
sen. Merkley, Chamber leaders discuss ways to increase venture capital funding
US Senator Jeff Merkley joined a host of Chamber leaders
for lunch last month to discuss strategies for increasing
venture capital for early stage companies and other topics
important to business. The discussion included such
subjects as “crowd funding,” transportation reauthorization
legislation, the renewal of secure rural schools and the
Postal Reform Bill. Chamber leaders regularly meet with
state and federal lawmakers to discuss issues and ideas
important to business.
For nearly three decades, the Eugene
and Springfield chambers of commerce
have sponsored a comprehensive
community leadership-training program
called Leadership Eugene-Springfield.
In May, 26 graduates from the 2011-12
program joined more than 650 alumni
who have graduated since the program’s
launch in 1986. Graduates have used the
information and connections provided
by the program to serve in key volunteer
leadership positions across the region.
Recruitment for the 2012-2013 program
is now underway.
Cascade Prodrug gets backing at Willamette Angel Conference
In May, the Eugene Chamber led the
efforts around a successful Willamette
Angel Conference (WAC), a regional investor
conference connecting early-stage and
seed-businesses with angel investors. The
conference resulted in 25 angel investors
backing Eugene-based Cascade Prodrug to
the tune of $200,000. All told, 30 exciting
companies competed for funds, including
“concept stage” winner, Corvallis-based
Coyle, which took home a $7,000 prize. The
conference kicked off with a Start-up EXPO
before the main competition, and more than
200 people attended the WAC. All this helps
position the region as a place where new ideas
and new businesses are supported.
senator Jeff Merkeley, here with Ann Marie Mehlum, CEO of summit Bank, recently spoke to Chamber leaders.
Y O U R C H A M B E R W O R K I N G F O R Y O U
The Eugene Chamber is a
strong supporter of the Riverfront
Research Park and lead advocacy
efforts for a new home there
for Oregon Research Institute
(ORI) and the Educational Policy
Improvement Center (EPIC), a
University of Oregon spinoff.
Construction of the four-story,
80,000-square-foot building
began in January and much of
the first-floor concrete already has
been poured. The new building
will allow both ORI and EPIC to
consolidate their operations in a
single location while maintaining
the close ties they have with
colleagues at the University of
Oregon.
More than 500 local educators,
business and community leaders
turned out for the seventh annual
A Champion in Education (ACE)
Awards ceremony. Spearheaded
by the Eugene and Springfield
chambers of commerce and
presenting sponsor Oregon
Community Credit Union, the
ACE Awards honor administrators,
classified staff, teachers and
volunteers in the Bethel, Eugene and
Springfield school districts. Thanks
to the generous donation made by
Oregon Community Credit Union,
each ACE Award winner receives a
monetary award for their school.
Over the past seven years the event
has provided nearly $85,000 in
direct financial support to schools
throughout Eugene and Springfield.
Leadership From Oregon Research institute, EPiC, University of Oregon and the City of Eugene celebrate the launch of the new 80,000-square-foot building.
Al Cochrane and Augie sick of Cascade Prodrug receive their $200,000 check from Chris Klemm, the 2012 WAC investor Manager.
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 7
Navigating foreign watersS M A L L B U S I N E S S S P O T L I G H T
Moss Adams partner says doing business worldwide requires careful international tax planning
By Stephanie Brathwaite
Having an international presence can bring a host
of complex issues – tax compliance, the application of
treaties, entity structuring, customs rules, and immigra-
tion law just to name a few. Each of these issues on its
own may be tricky, and when faced all at once, they can
quickly seem overwhelming. But in the area of taxes,
there are planning opportunities that can help smooth a
company’s way across borders.
Mark McGinley, international tax partner for Moss
Adams, says the overriding goal is to minimize
one’s worldwide effective tax rate. On the
U.S. side alone, there are several reporting
requirements that are necessary de-
pending on how a company is oper-
ating abroad. The best opportunity to
minimize the rate is by working with
a tax advisor early in the process to
help identify tax and administra-
tive costs and allow time to consider
planning opportunities.
“A company has the opportunity to
operate abroad in many different forms,”
explains McGinley. “From foreign invest-
ing, to product sale, to product
manufacturing, each is a
unique opportunity
and the IRS will be
taking a close look to ensure proper reporting in each
case.”
Moss Adams serves more than 2,000 companies do-
ing business throughout more than 44 countries and is
quickly gaining a reputation throughout Oregon as the
company to turn to for cross-border issues and ques-
tions. Navigating foreign waters is not impossible and
there are plenty of resources in Oregon to help a com-
pany interested in putting a toe in the water. Business
Oregon and the U.S. Department of Commerce are two
places to begin and both offer resources for companies
to utilize. The Eugene Area Chamber of Commerce has
recently brought much of that training to Eugene to help
make those resources more accessible with its Focus On:
International Trade series, sponsored by Moss Adams.
“Companies should keep one governing principle in
mind,” says McGinley. “International tax planning
should grow out of your business objectives.
Doing business internationally takes a high
level of commitment mixed with a lot of
extra energy and administration, so it’s
important for companies to keep in mind
what they want to accomplish.”
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Business On the Move
Mark McGinley, international tax partner for Moss Adams, says the overriding goal when doing business overseas is to minimize your worldwide effective tax rate.
Eugene AreaChamber ofCommerce
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 9
Going Global
C O V E R S T O R Y
Eugene area companies find ways to grow their business in foreign markets
By Lewis Taylor
Photos by David Loveall
If it were easy, everyone would do it.
That old adage could easily apply to doing business inter-
nationally. With language barriers, cultural differences, difficult
foreign governments and reams of international rules, tariffs,
taxes and regulations to untangle, exporting a product to the
other side of the globe is no simple matter. But executives at
Eugene companies who have successfully braved international
waters say it’s worth the investment in resources.
“Absolutely, it’s worth the trouble,” says Martin Ambros, CEO of
Eugene-based Air-Weigh, maker of onboard electronic scales for trucks
and other commercial vehicles. “It’s given us a lot more visibility into
what’s happening in other developing nations and what direction
they’re heading, and it’s helped us stay ready with fresh new ideas out-
side of the thinking here in the U.S.”
There are other benefits to being an exporter, says Ambros. For Air-
Weigh, which sells its products in England, France, Germany, Australia
and other countries, operating internationally has allowed the com-
pany to diversify and take advantage of economic upswings in differ-
ent countries. And exporting has even helped the company to grow
its domestic business. After developing a new product in collaboration GLOBE GOEs HEREMartin Ambros, CEO of Eugene-based Air-Weigh and Robyn Willoughby, president of Eugene-based Champion Technologies, inc. have succcessfully taken their companies into foreign markets.
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 1 11 0 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
with a British distributor, Air-Weigh rec-
ognized there was a valuable market for
the same product here in the U.S.
“In technology, we tend to think that
the U.S. is always at the leading edge
– but there are a lot of smart people in
other countries who are doing some
amazing things that we’re not doing
yet,” Ambros says. “There’s value in es-
tablishing international relationships.”
Of course there are hurdles to doing
business internationally. Some of the
surprises Ambros and his company en-
countered when they started exporting
to England in the late 1990s were dealing
with regulatory requirements, conquer-
ing the language barrier and struggling
to be quick and responsive when sur-
rounded by regulations. There were
cultural issues to tackle – originally, the
company was seen as being too aggres-
sive with its sales tactics in Europe – and
it found that offering sales support from
5,000 miles away was no easy task.
To other local companies looking
to go global, Ambros recommends not
taking on too much at once. Trying to
take on two or three countries at a time,
he says, is generally not advisable.
“Step carefully,” he cautions. “Pick a
segment or a country that you think you
can do well in and that you have enough
market information about. You should
be pretty confident there’s going to be
acceptance or traction, and then take the
time to learn how to do business there.
Using what you’ve learned, take another
step, and then take another step.”
Eugene-based Champion Tech-
nologies Inc. began exporting its brakes,
clutches and other industrial friction
parts in the late 1970s, says President
Robyn Willoughby. From there, the
company’s success snowballed interna-
tionally, largely through word of mouth.
“When industrial equipment would
be sold, the new owner would find our
name on the brake bands or blocks or
by contacting the equipment owner and
asking our name,” Willoughby recalls.
The company continued to branch
out into new industries and countries.
Up until 2009, international sales con-
tributed up to 18 percent of Champion’s
overall sales. Luckily, says Willoughby,
everything the company makes is ex-
portable. Champion’s primary exports
are copper products for water-cooled
brakes and the corresponding re-sale
friction products that go with them,
along with its AFT200 Kevlar-reinforced
friction products for power transmission
applications and saw guide products for
the wood products industry. The copper
and water-cooled friction products are
exported to China, the AFT200 friction
products go to Italy and the saw guide
products ship to Australia. Champion
also exports brake bands and other log-
ging or heavy-duty off-road industrial
products to Canada.
Some of Champion’s big challenges
in doing business internationally have
been dealing with bank fees, negotiat-
ing terms, warranties, export codes
for products shipped and other details.
When it came to shipping, the company
needed to meet international shipping
protocols, such as having the required
documentation (e.g., letters of instruc-
tion and certified shipping materials).
Knowing the latest requirements for
export documentation for customs and
for a company’s freight forwarder has
been a crucial detail, Willoughby says.
Missing documentation will delay re-
ceipt of goods and can harm customer
relationships.
Accounting comes with its own head-
aches, including currency exchanges
(Champion only deals in U.S. dollars) and
knowing how to manage billing cycles
given the fact that delivery time is often
extended and payment delayed.
“Customers don’t like to pay for
something they don’t have,” Willoughby
explains.
As a result, whenever possible,
Champion arranges for 50 percent pay-
ment up front and 50 percent on 60-day
terms. Letters of credit are an available
option to help ensure payment, espe-
cially when starting out with a new cus-
tomer. This approach puts all the work
of checking credit into the hands of the
buyer’s bank and once a company has
been provided a letter of credit, there is
minimal risk on the seller’s part regard-
ing payment.
Willoughby recommends that com-
panies update themselves on shipping
regulations. Often a shipment can be
delayed due to customs miscommuni-
cation between the supplier and vendor,
preventing a product from arriving
on time. She suggests finding a good
customs broker who is familiar with the
country a company is doing business in
and finding a freight forwarder that has
a reasonable understanding of the ever-
changing exporting parameters.
“Exporting product has now become
a standard part of our business environ-
ment,” Willoughby says. “Customers
The Eugene Chamber’s role in promoting international trade
The Chamber believes that
international exports are an
important component of local
economic development efforts.
Here is how the Eugene Chamber
helps local companies succeed
internationally:
• Identifying international markets
for export through connections
with the Oregon’s Global Trade
office, the US Department of
Commerce and other resources.
• Assistance in Identify funding
sources
• Connections with freight
forwarders/ shipping logistics, etc
• Seminars and briefings on
important international trade topics
• International trade show
identification and funding
“in technology, we tend to think that the U.s. is always at the leading edge – but there are a lot of smart people in other countries who are doing some amazing things that we’re not doing yet. There’s value in establishing international relationships.”
– Martin Ambros
CEO of Eugene-based Air-Weigh
state offers funding to help local exporters reach international trade shows
The state of Oregon offers financial
assistance to Oregon companies that
wish to take advantage of international
trade shows and trade missions to enter
new markets or expand existing ones.
Through the Oregon Trade Promotion
Program (OTPP), Business Oregon
will reimburse up to 50 percent of
a company’s eligible expenses. The
program allows up to $2,500 per pre-
approved strategic event (the maximum
reimbursable amount may vary
depending on budget for specific event).
Eligible expenditures may include:
• Booth space rental
• Booth construction at trade show site
• Booth equipment and/or furniture
rental
• Booth utility costs
• Freight costs of equipment and/or
exhibit materials to and from trade show
• Interpreter/translation fees
• Per diem (lodging and meals, based
on U.S. Department of State per diem for
the locality) for one employee or agent
for the duration of the event, plus travel
time , up to one day before and one day
after the actual event.
• Trade missions
• Participation fees for trade missions
sponsored by Business Oregon
For more information and to apply,
please visit www.oregon4biz.com or
contact Ben Sappington at (541)-242-
2359.
JJ Urhausen (l) and Paul silva of Western shelter, which makes vehicles, shelters and clothing for emergency, commercial and military use, had started to see strong interest in its products and capabilities from Australia and New Zealand.
1 2 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
are no longer restricted to what is lo-
cally available. We love the fact that our
niche products are in demand all over
the world.”
Paul Silva, Shelter Division sales
director for Eugene-based Western
Shelter, says the company’s owner, Paul
Bennett, dabbled in some small inter-
national sales from 1990 to 2000, but
that it wasn’t until 2002 that the com-
pany waged its first real international
sales offensive.
Western Shelter, which makes ve-
hicles, shelters and clothing for emer-
gency, commercial and military use,
had started to see strong interest in its
products and capabilities from Australia
and New Zealand. Several months later
it created its first distribution agree-
ment. Today that market alone serves
a large portion of Western Shelter’s
total international sales, accounting for
more than $6 million in 12 years.
“It was a small start,” Silva recalls.
“But it set the stage for future opportu-
nity and growth.”
Currently Western Shelter exports its
manufactured goods and customized
systems, primarily its Specialized Por-
table Shelter Systems For All-Hazards
Response, along with its field hospitals,
field hospital trailer systems, military
base camp equipment, wild land/brush
fire clothing and Personal Protection
Equipment (PPE).
In general, some of the biggest
challenges faced by Western Shelter
included conquering language barriers
and understanding new cultures and
their ways of doing business. Navi-
gating foreign laws and regulations
and determining the timeframe for
delivery were difficult and dealing with
exchange rates was another hurdle.
Last but not least was the challenge of
getting paid.
“Receiving money can be a real head-
ache,” Silva says. “The expense of selling
domestically is one thing, but selling in-
ternationally requires much more travel
and unscheduled travel demands.”
Silva says there were also some
pleasant surprises in dealing interna-
tionally. In Columbia, for instance, the
company opened its own business,
Western Shelter Systems Colombia, so
that it could sell direct to military and
public health departments. Columbia
is currently Western Shelter’s largest
foreign market with $1 to $2 million in
annual sales.
Silva’s advice to other companies
contemplating an international move
is to start by defining a need for prod-
ucts and services through good re-
search and market analysis – looking at
price, specifications, opportunity and
comparables. He recommends getting
connected with the State of Oregon
International Business Resource and
the US Department of Commerce, both
of which will help companies better
understand many aspects of interna-
tional business and give them more
confidence in their efforts. Finally, he
says, companies need to create a good
business plan with attainable goals
and measure them consistently with
patience in mind.
“You definitely need to crawl, walk
and then run,” Silva says. “Don’t let your
first deal make you think there is a sea
of opportunity, let each sale lead you to
the next and grow your efforts based
on what you know is in front of you.”Eugene AreaChamber ofCommerce
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Early Reports show success for Oregon sTEP Grant Recipients
The first Oregon companies
receiving State Trade and Export
Promotion (STEP) grants to
attend trade shows overseas are
reporting success in their efforts to
sell their products internationally.
Of the nine companies reporting
back to Business Oregon thus far,
all are reporting significant sales
and distributor leads generated
by their trade show activities in
Europe, Japan, Singapore and
India. Three Oregon companies
have made sales to international
buyers in Europe and Asia and
more expect to close deals in the
months ahead.
Approximately 90 companies
are presently enrolled in the
Oregon STEP program. The
Chamber has worked with
multiple local companies in
securing STEP funding and other
State trade grants available to
Oregon companies. Western
Shelter Systems of Eugene
exhibited with Business Oregon
(using STEP grant funding) at
a Defense-related show called
FIDAE held in Santiago, Chile in
March 2012. Due to the popularity
of these grants Business Oregon
has begun to maintain a waiting
list for Oregon companies seeking
to participate in trade shows
through September of 2012.
However, companies are still
encouraged to apply, especially
for fall 2012 shows. Additionally,
Business Oregon is recruiting
participants for Windpower 2012
in Atlanta in June and Eurobike
2012 in Germany in August. Please
visit www.oregon4biz.com/STEP/
for more information and to
complete an application.
“Customers are no longer restricted to what is locally available. We love the fact that our niche products are in demand all over the world.”
– Robyn Willoughby,
Champion Technologies President
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 1 51 4 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
By Tom Wright-Hay Oregon Manufacturing Extension Partnership
Reshoring has gotten a great deal of press in the
last year as it seems the U.S. has finally awakened and
realized that moving jobs overseas is neither good for
our economy nor fair to our well-trained and dedicated
workforce.
In my experience, most organizations that moved
work overseas made the decision on price alone with-
out considering many other factors. After all, minimiz-
ing unit cost is what it’s all about, right?
As it turns out, the decision on where to source your
product is much more complicated and requires more
than simply comparing your “cost” to the “price” quoted
by your provider.
Conduct a Thorough Analysis – Make Here
Manufacturing here should be the base case for your
analysis. To get a proper estimate of operational costs,
we need to create a value stream map of the process.
The map allows us to determine manufacturing steps
and staffing levels, as well as equipment and facility
requirements. When calculating the total cost for your
operation, it is important to include only those costs
that are truly incremental. For example, if you have
10,000 square feet of unused space in your facility, you
Moving jobs overseas might not be worth it
There is a lot to consider before you do
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J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 1 71 6 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
are already paying for it. Financial theory
considers this a sunk cost and, as such,
it shouldn’t factor into your decision. A
similar assessment on excess capacity
should be considered for staff, equipment
and overhead. Once you’ve estimated
your costs, you should also project any
improvements in throughput or costs
as a result of continuous improvement
through lean manufacturing.
Conduct a Thorough Analysis –
Foreign Source
The price from your supplier is just
a starting point. We must also include
additional expenses such as shipping,
tariffs, inspections (on the dock and at
your overseas supplier), drayage and
other miscellaneous fees. Then, there is
the likelihood that you will have to meet
certain minimum order quantities to fill
up the container that will show up on
your receiving dock. How many months
(or years) of inventory does that repre-
sent and how much working capital will
be tied up? Will you have to build or lease
additional warehouse space? What about
inventory obsolescence, a container full
of bad product or worse yet, a container
lost at sea? How will those affect your
sales? I’ve been privy to numerous in-
stances where these things happened.
Additional considerations include
international financial risk (Vietnam has
a riskier economy than ours) and IP theft
(yes, they will steal your idea).
Finally, you must ask yourself what
you are giving up by sourcing overseas.
The single biggest loss is control over the
quality manufacture and improvement
of your product. No matter what kind of
contractual agreement you have, your
supplier will not care as much about
your product as you will. This means
that quality and product improvements
will most likely suffer.
The Decision
Taking all of this into account will
result in a much more realistic cost for
sourcing overseas that can then be
compared to your cost. You might find
that sourcing overseas isn’t such a great
idea after all.
There is a lot more detail to the
decision-making process than can be
presented here. If you are interested in
learning more, contact Tom Wright-Hay
from OMEP at [email protected]
or consider attending a future Chamber
event where Tom will present informa-
tion that will help you make the right
sourcing decision.
... ask yourself what you are giving up by sourcing overseas. The single biggest loss is control over the quality manufacture and improvement of your product.
I N T E R N A T I O N A L C A R G O
What is Freight forwarding?By John Fulcher BGI Worldwide Logistics, Inc.
The movement of cargo associated
with freight forwarding is often a mys-
terious realm within an organization. Its
related activities are usually delegated
to the shipping and receiving depart-
ments or perhaps to a traffic department
reporting to a traffic manager. The pro-
cess of moving materials into a facility
and processed goods out to end-users
is an integral part of the company sup-
ply chain and may touch many points
within the organization.
Moving product, whether it be raw
material or finished goods, from place
to place is freight forwarding at its es-
sence. Freight forwarding professionals
could be considered travel agents for
freight. Larger organizations with a big
transportation budget often employ
staff with experience in transportation
and logistics. These big companies use
their buying power to negotiate pricing
directly with airlines, steamship com-
panies and trucking companies. Other
organizations outsource these duties by
utilizing logistics experts in the freight
forwarding industry to arrange all or
part of their domestic and international
transportation requirements.
Freight forwarding companies gen-
erally fall into two groups, both of which
are staffed with trained and licensed
experts to guide shippers through each
step of the process. The integrators op-
erate their own equipment and sched-
ule their fleets of aircraft and trucks
according to business need. Federal
Express and UPS are two examples.
The second group, non-asset-based
forwarders, are often referred to as
third-party logistics providers and deal
in freight forwarding in its most pure
form.
Generally, forwarders serve the gen-
eral business community as a whole,
though niche forwarding is also popu-
lar. These are forwarders who specialize
in a particular industry (e.g., electronics
or apparel).
As a one-stop resource, forwarders
are poised to arrange one shipment or
coordinate a complex distribution sys-
tem. Freight forwarding is multimodal
in scope and exists to keep the global
supply chain in motion. Eugene AreaChamber ofCommerce
Eugene AreaChamber ofCommerce
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 1 91 8 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
PROMOTiONS/NEw HiRESPhotos appear left to right from top
Mitch Hagstrom, Pacific Continental Bank, has
been promoted to the
position of executive vice
president, chief banking
officer. In addition to
his new role, Hagstrom
retains the title of president, greater Eugene
market. Amber white has been promoted
to the position of vice president, controller
and Stacey LaBrasseur has been promoted
to the position of business resource officer.
www.therightbank.com
Scott Freck has been
appointed executive
director of the Eugene Symphony. The former
general manager of the
North Carolina Symphony,
Freck will begin his new
job on June 11. Jessika Kaiser (pictured) is
the new marketing manager.
www.eugenesymphony.org
Nick Lawlor has joined
Tyree Oil inc. as chief
financial officer. Lawlor
will be responsible for
directing the financial
operations of the
company.
www.tyreeoil.com
Jones & Roth CPAs and Business Advisors
announced the promotion
of two staff members:
Kelsi Griesel, CPA, has
been promoted to senior
manager; Michelle Roth, CPA, is now a manager with the firm. Glenda Mock, retirement plan services coordinator
with Jones & Roth Retirement Plan Services,
a division of Jones & Roth CPAs and
Business Advisors, has earned professional
certification as a Chartered Retirement Plans
Specialist (CRPS).
www.jrcpas.com
B U S I N E S S N E W S
541.342.4000siuslawbank.com
Jeff GusinowSenior Vice President & ManagerMedical & Professional Banking Group
Dr. Steven OfnerOphthalmology
Eugene Oregon Eye Care
Strength. Stability. Service.
It’s all about theRelationship atYour CommunityBank for BusinessAs part of our community,we take pride in the personal relationships we’ve developed with local businesses. Our loan decisions are made locally and involve short turnaround time. Stop by one of our 10 Lane County offices to see why at Siuslaw, it’s all about the relationship.
Dr. John Lipkin has been
elected vice chair of the
board of directors of
Serenity Lane. Lipkin is a
psychiatrist for PeaceHealth
and immediate past
president of the Oregon
Psychiatric Association. He has served on
Serenity Lane’s board for 10 years.
www.serenitylane.org
Nick Larson has been
promoted to financial
consultant at SELCO investment & Retirement Services (SIRS).
www.selco.org
Home Federal Bank is
pleased to announce that
Kelley E. St. John has
joined the bank as treasury
management relationship
officer. St. John will be
responsible for developing
commercial banking relationships with local
business owners and managers throughout
Western and Southern Oregon, as well as
providing sales and support for treasury
management solutions.
www.myhomefed.com
Merrill Lynch financial
advisor Randall Stender has been recognized among
the top advisors in Oregon
by Barron’s magazine in its
annual “America’s Top 1,000
Advisors: State-by-State”
list. To be considered for the list, advisors
must have a minimum of seven years’ financial
services experience and have been employed
at their current firm for at least one year.
www.ml.com
VersaLogic Corp. has
selected Ronda J. white
as quality manager. White
brings to VersaLogic more
than 25 years of experience
delivering integration of
global quality-focused
processes, tools, principles, training and lean
methodologies at prominent technology
companies including Grass Valley, Intel,
Tektronix, and Texas Instruments.
www.versalogic.com
Holt international Children’s Services
announced that Phillip Littleton has been
named president and chief executive office of
the organization.
www.holtinternational.org
B U S I N E S S N E W S
Warm up With savings Energy-efficient heating, insulation and water heating systems can help trim your overhead costs and increase comfort for your customers and employees. Grow your business and boost your bottom line with energy-efficiency upgrades, cash incentives and technical assistance from Energy Trust of Oregon.
+Take control of your energy costs. To learn more, visit www.energytrust.org or call 1.866.368.7878.
Serving customers of Portland General Electric, Pacific Power, NW Natural and Cascade Natural Gas.
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 2 12 0 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
Summit Bank has
promoted Craig wanichek to bank
president.
www.summitbank online.com
Marissa Ooyevaar has
joined Carte Blanche Caterers to head their
catering sales and
marketing division,
orchestrating both
corporate and private
client events.
www.cbsoup.com
Oregon Community Credit Union has
announced the following board officers
for 2012: Abe Kossol, chair; Bev Anderson,
vice chair; Genevieve Parker, secretary;
and Mandy Jones, treasurer. Lee Beyer, Doug wilkinson, Tom Larson and Jennifer Lushenko will serve as directors. Jerry Liudahl is elected as credit manager.
Members on the Supervisory Committee are
Bill Phillips, Rex Ballenger, Jeanine Jackson,
Jason Barber and Rick Varnum, with Greg Nelson elected as Chairperson.
www.oregoncommunitycu.org
Shadow Hills Country Club announces new hires
David warner, restaurant
manager and Marta Goldstein, the club’s first
marketing & membership
manager. Ulla Hacker-Harada, transitioned to the
position of catering sales manager, focusing on
catering for the club’s new events venue.
www.shadowhillscc.org
Slocum Center for Orthopedics & Sports Medicine welcomes a
new administrator/chief
operating officer, B. Keith Clark, MBA.
www.slocumcenter.com
The Laurel Hill Center board of directors elected
officers for 2012-13, Officers
are: Tom Fauria (pictured),
PhD, president; Dave Burtner, vice president;
Andy Dinger, treasurer;
and Eduardo Sifuentez, secretary. Joanie Robertson was recently added to the board.
www.laurel.or
B U S I N E S S N E W S
THE BESTIN BRANDDESIGN
541.485.1932 931 Oak Street, Eugene funklevis.com
541.684.7500
SUMMITBANKONLINE.COM
96 EAST BROADWAY
EUGENE, OR 97401
Summit team members (left to right):Mike Mercer, Ashley Horner, Patti Stahr and Craig Wanichek.
WHEN
IT’S
SHOW
TIME.
Christopher Looney has
joined Evans, Elder & Brown Commercial Real Estate as
a Broker.
www.eebcre.com
Balzhiser & Hubbard Engineers, inc. is pleased
to welcome Jennifer winters as marketing
director. Jennifer will
lead the BHE’s marketing
efforts by fostering existing
relationships, developing new opportunities,
and managing the firm’s marketing and
business development strategies.
www.bhengineers.com
The Holiday inn Eugene Springfield has
hired Robert Sigmund as executive chef. He
will oversee food and beverages for all hotel
catered events, as well as revamp the hotel’s
Italian restaurant, Amici.
www.hieugenehotel.com
BUSiNESS NEwS
Sycan B Corp. was chosen as one of eight
fast-charge stations for electric vehicles in
Southern Oregon by the Oregon Department
of transportation. The department is working
in partnership with both federal and state
energy agencies as part of the West Coast
Green Highway Initiative. The two stations will
be located in Gateway Marketplace right off
I-5 in Springfield. Drivers will be able to charge
vehicles in 20 minutes.
www.innsighthmg.com
SELCO Community Credit Union, the third
largest Oregon-based credit union in the state,
has completed a merger with Portland’s Forest
Park Federal Credit Union.
www.selco.org
B U S I N E S S N E W S
Vans. Trucks. Wraps.
fleetgraphics
People. Places. Products.
photographics
ImagineGroup.com 990 Garfield • Eugene, OR 97402 • 541.485.2994
Signs. Banners. Tradeshows.
graphics
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 2 32 2 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
KUDOSOregon imaging Centers has been awarded
$35,000 in grant funds from Susan G. Komen
for the Cure Oregon and SW Washington to
extend its patient navigator program, which
supports women who require more tests
following a screening mammogram.
www.oregonimaging.com
Builder magazine, the official publication of
the National Association of Home Builders,
has ranked Hayden Homes #40 on their
Builder 100 list of America’s top builders. The
ranking is based on the number of home sales
in 2011.
www.hayden-homes.com
Thanks to Eugene Chamber members Dari Mart and Pepsi for their $10,000 donation to Sacred
Heart Medical Center’s Neonatal Intensive Care
Unit. The NICU will purchase a second Stryker
Sled to allow for safe transportation of tiny
babies in and out of ambulance.
www.darimart.com
www.peacehealth.org/oregon
In support of child abuse prevention month in
April, Kendall Auto Group joined hands with
Court Appointed Special Advocates (CASA)
of Lane County and Relief Nursery in the fight
against child abuse. To assist in the efforts to
raise funds, Kendall gave a portion of each
new car sale to Relief Nursery and CASA in
support of their efforts to ensure every child
lives a safe and healthy life. Each organization
received a check for over $1,300 and the
opportunity to be in a Kendall commercial
that will run off and on throughout the year.
www.kendallauto.com
NEw MEMBERSWhen you join the Eugene Area Chamber
of Commerce, you become part of a vibrant
and prosperous community of creative
entrepreneurs, forward-thinking innovators
and visionary business leaders. We’re pleased
to welcome these new members who have
chosen to take advantage of the Chamber’s
tools, resources and expansive network to
grow their businesses.
Accurate Leak Detection LLCwww.accurateleak.net
Amax NutraSource, inc.www.amaxnutrasource.com
barre3 Eugenewww.barre3.com
BGi worldwide Logistics, inc.www.bgiworldwide.com
Blain Group LLCwww.allstateagencies.com/kyleblain
Blue Dog Meadwww.bluedogmead.com
Cafe 2Uwww.thebeanmachine.us
Challenger Bioscienceswww.challengerbiosciences.com
Clean Concepts
Crusader Deals LLCwww.crusaderdeals.com
DC Fine Homes & interiorswww.dcdesign.com
Defensive Firearms instruction LLCwww.d-fai.com
bell+funk has moved into the Broadway
Commerce Center at 44 W. Broadway, suite
210.
www.bellandfunk.com
windermere Real Estate/Lane County is
expanding operations by opening an office in
Vida to serve customers from Walterville to
McKenzie Bridge.
www.windermere.com
The Telly Awards has named Prevedello Hettick Marketing Company as a double
silver award winner in the 33rd Annual
Telly Awards for their television work for
SELCO Community Credit Union, and a
multiple bronze award winner for television
advertisements for Oregon Urology Institute,
Valley River Inn, Willamette Pass and Knife
River.
www.prevedellohettick.com
wildish Construction Co. was named one of
the nation’s safest construction companies
by the Associated General Contractors of
America. Wildish received a first place award
for the strength of their safety programs and
their overall safety performance during 2011.
www.wildish.com
B U S I N E S S N E W S
Bringing together artists and architects, fiddlers and roofers,
lawyers and storytellers.
Do you a go-go?
Brought to you by:
A partnership of:
Arts • Culture • Connection
B U S I N E S S N E W S
REAL MEETINGS. REAL CLOSE. Eugene, Cascades & Coast | Oregon
INVITINGGENUINE
REWARDINGUNIQUEHOME
R
Do you belong to an association or group that holds conferences or meetings? Why not bring that meeting here? The staff at Eugene, Cascades & Coast is here to help, and for each qualified conference referral, you earn the opportunity to win prizes from local businesses.
Find out more at www.EugeneCascadesCoast.org/LocalHero or call 541.743.8753.Boost our local economy and share our local bounty! We make it easy to be a local hero.
Jaqua Center by Curt Deatherage
J U N E /J U LY 2 0 1 2 | O P E N F O R B U S I N E S S 2 52 4 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
O P I N I O N
Oregon’s exports – supporting a return to growthBy Scott Goddin
TODAY, ExPORTS ARE PLAYING an increasingly important role in Oregon and the nation’s
economic growth – representing a bright spot in an otherwise tepid recovery. The value of
U.S. exports of goods and services exceeded $2.1 trillion in 2011. The jobs supported by these
exports increased to 9.7 million in 2011, up 1.2 million since 2009. The 9.7 million export-
supported jobs in 2011 were almost at the pre-recession peak of 9.8 million in 2008. The expansion in
manufacturing associated with these increased exports has played an important role in the U.S. recovery.
In 2011, every billion dollars of U.S. exports supported 5,080 jobs.
In 2011, Oregon shipped $18.3 billion of goods to
more than 200 foreign countries. In 2009 (latest data
available), export-supported jobs linked to manufactur-
ing accounted for an estimated 5.1 percent of Oregon’s
total private-sector employment and nearly one-quarter
(23.3 percent) of all manufacturing workers in Oregon
depended on exports for their jobs. These jobs were
spread amongst 4,717 companies exporting from the
state in 2009. Of those, 4,198 (89 percent) were small-
and medium-sized enterprises (SME’s) with fewer than
500 employees. Based on Oregon’s business demo-
graphics, these firms were more likely to have under
25 employees. These SME’s generated nearly one-third
(30 percent) of Oregon’s total exports of merchandise in
2009. These firms would have also taken advantage of
the healthy expansion of Oregon’s exports in 2010 and
2011.
While the Portland metropolitan area was an ex-
port powerhouse ranking 15th nationally (based on
2010 data), export expansion occurred throughout the
state, including Lane County. The greater Eugene area
saw a 32 percent growth in exports from 2009 to 2010
to $415.5 million. Between 2009 and 2010, Eugene’s
exports to Canada and Mexico increased 25 percent
to $190 million and 100 percent to Asia to $120 million.
Shipments to the European Union and South America
grew to $42 and $24 million, respectively. The impor-
tance of exports extended throughout the state in 2010
as significant shipments were recorded in Salem ($454
million), Corvallis ($320 million), Medford ($125 million)
and Bend ($89 million). More than 70 percent of Eastern
Oregon’s agricultural production is estimated to be ex-
ported.
Eugene area firms export a wide variety of products,
ranging from lumber and logs to sophisticated brain-
mapping technologies. Small and innovative compa-
nies include Bowtech (archery equipment), Forrest Paint
(coatings), Co-Motion Cycles (bicycles & equipment)
and GloryBee Foods (natural products). These com-
panies have actively targeted 95 percent of the world’s
consumers living outside of the US.
Education is also a growing services export. From
2010 to 2011, the number of foreign students at Oregon
universities increased by 19 percent and the University
of Oregon was home to nearly 2,500 of those students.
These foreign students pay full tuition and the money
they spend locally enhances their impact
The Eugene Area Chamber of Commerce has long
played an active role in supporting the international
scott Goddin has been the director of the Portland U.s. Export Assistance Center since 1997.
Business News covers promotions,
hires, awards, business giving and
business news. E-mail items to
Educational Policy improvement Centerwww.epiconline.org
Enterprise Holdingswww.enterprise.com
Falling Sky Brewingwww.fallingskybrewing.com
Golf with Freedom Lesson Centerwww.GolfwithFreedom.net
H & R Blockwww.hrblock.com
High Definition Cleaning Serviceswww.hdcleans.com
Joshua Bursteinwww.joshuaburstein.com
K & R Quality Construction LLCwww.krqualityconstruction.vpweb.com
KinderCare Learning Centerswww.kindercare.com
Networking Powerwww.networkingpower.net
NHance wood Renewalwww.nhance.com/eugenewoodrenewal
ProHealth Family Medicinewww.prohealthfamilymedicine.com
Reclaim Physical Therapy LLCwww.reclaimpt.com
Regal Valley River Center Stadium 15 and iMAXwww.regalcinemas.com
Rodan and Fields Dermatology Consultantwww.beautyfluent.myrandf.com
SeQuential Biofuels LLCwww.SQbiofuels.com
Terra Tech LLCwww.terratech.net
Top City Frozen Yogurt Cafewww.topcityyogurt.com
Vibrant Healthwww.jessicagee.info
white Oak Farmwww.whiteoakfarmoregon.com
Receive free, practical advice to help your business minimize waste and save money. You may qualify for financial incentives and additional resources.
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Eugene AreaChamber ofCommerce
B U S I N E S S N E W S
2 6 O P E N F O R B U S I N E S S | E U G E N E A R E A C H A M B E R O F C O M M E R C E
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marketing efforts of local firms through
training and seminars on market op-
portunities and regulatory issues. The
Chamber has partnered with both state
and federal agencies that exist to help
companies gain access to foreign markets.
Through Business Oregon, the state’s eco-
nomic development agency, more than
eighty companies will have received STEP
(State Trade and Export Promotion) grants
from the U.S. Small Business Administra-
tion this year. These grants provide market
development funds to support small busi-
ness’ overseas marketing efforts. The state
will be re-applying for an additional grant
next year.
The Chamber also has an active
partnership with the federal govern-
ment. The U.S. Commercial Service,
represented in Oregon in the Portland
U.S. Export Assistance Center, serves as
a one-stop shop for federal trade promo-
tion services, including export finance
programs offered by the U.S. Small
Business Administration. Commercial
Service trade specialists work through a
global network of colleagues in U.S. em-
bassies and consulates worldwide to help
U.S. companies get started in export-
ing or expanding their exports to new
global markets. More than 15 companies
participated in recent export training
in Eugene and local companies using
state STEP grant money will participate
in Commercial Service supported events
overseas in the coming months. More
information on the Commercial Service
and its programs is available at www.
export.gov/oregon
Export sales not only help companies
grow and compete, but also help firms
weather economic downturns by di-
versifying their customer bases beyond
our borders. Forward-thinking Oregon
companies should look to increase their
bottom lines by making new sales
abroad. The Eugene Chamber and the
partnerships it has established can assist
companies in identifying, accessing and
succeeding in foreign markets. As the
evidence has shown, exporting may be
one of the best ways to return to a path of
growth and prosperity.
Scott Goddin has been the director of
the Portland U.S. Export Assistance Cen-
ter since 1997. The center provides federal
trade promotion support services offered
by the U.S. Commercial Service and ex-
port finance programs offered by the U.S.
Small Business Administration. Goddin
has more than 30 years of experience in
international trade, having served as both
a U.S. trade negotiator and counseled
hundreds of firms on doing business
overseas. The opinions expressed in this
article are his alone and not those of the
U.S. Department of Commerce or its
agencies.
At the Eugene Water & Electric Board, we’re empowering businesses with resources to save money and energy. Doctors Alex Morley and Howard Stein, owners of Eugene Urgent Care, worked with EWEB and BRING Recycling’s RE:think Business program to retrofit their T12 light fixtures with more energy-efficient T8 fluorescent lighting. EWEB incentives covered more than 80% of the installation, and the doctors are saving $40 per month on their electric bill. To find out about EWEB’s energy-saving programs for your business, visit eweb.org/saveenergy or call 541.685.7000. Maybe yours will be the next powerful tale we tell.
Eugene AreaChamber ofCommerce