Open For Business Magazine - June/July 12 Issue

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FOR BUSINESS JUNE/JULY 2012 VOLUME 11, ISSUE 3 USA $3.95 CANADA $6.95 World Local businesses brave international waters opportunity of THE EUGENE AREA CHAMBER OF COMMERCE: CELEBRATING…PROMOTING…INFORMING BUSINESS

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This issue of Open For Business magazine focuses on international trade and features local companies doing business internationally. They share tips on expanding into international markets.

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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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

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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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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

[email protected].

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

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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

PO Box 1107Eugene, OR 97440-1107

kernuttstokes.com1600 Executive Parkway, Suite 110, Eugene, Oregon 97401 – 541.687.1170

It’s good to know where you’ve been.It’s better to know where you’re going.

We can help you get there.

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