The Home of the RV Industry on the Internet
    June 2004 Volume 29 - Number 11    

RV Industry News     


    

Oregon: Open for Business

by Bob Zagami,
Editor

It's Real Here! That’s what greets visitors to the Lane Metro Partnership web site (www.lanemetro.com). Founded in 1985, the partnership was founded and charged with the mission of marketing Eugene, Springfield, and Lane County to industries and businesses that would locate facilities in the area.
 

While there is no doubt that Indiana, and specifically the Elkhart-Goshen area, might be the RV capital of the country, there is nothing wrong with being in second place … just ask Avis! Like the second most popular car rental company, Oregon has quietly established their own RV hub that is bringing new attention to the area as the RV industry continues to grow and companies look to expand beyond their traditional roots.

Anchored by such industry giants as Monaco Coach, Country Coach, and Marathon, the area around these RV mainstays is quickly attracting new companies with an emphasis on suppliers who want to be located in close proximity to the manufacturing plants. Many manufacturing companies have gone to  just-in-time delivery requirements and suppliers are finding it increasingly more important to have their warehouse and distribution facilities located close by.

A major attraction to companies considering the area is the quality of life in Oregon. Monica Shovlin, Vice President of The ULUM Group, who handles public relations for the Lane Metro Partnership is quick to note, “Many states like to talk about qualify of life issues, but it’s real here, and that’s why we have chosen that tag line for the way we promote the area. Tax incentives are nice, and we have several programs to assist new companies who want to expand or relocate here, but what we are really most proud about is the area and the lifestyle that can be enjoyed here in Oregon.”

Using RV statistical information available from RVIA, and the RVIA Profile Report, you can accurately estimate the impact of Oregon as it relates to the total RV industry numbers. Depending on how one calculates certain percentages, it is estimated the RV shipments coming out of Oregon total between $600 and $736 million dollars, and this does not take into consideration the luxury bus conversions from Marathon Coach, the world’s largest bus converter who has established a quality reputation for the conversion of Prevost busses since 1983. Their numbers can easily add another $100 million to the previous total, and then when you add in all the supplier revenue, it’s a safe bet that the Western cousins to Indiana are generating over one billion dollars of revenue to the RV industry numbers each year … and it’s growing!

Jack Roberts, Executive Director since January 1, 2003, noted, “We are pleased that one of the fastest growing companies in the RV industry, Keystone RV, has also recognized the importance of this area as they build new plants to meet their West Coast requirements. We are getting a lot of interest from RV manufacturers, but I’d have to say the most interest is still coming from supplier companies who can understand and appreciate the importance of being close to the major manufacturers that are located in the County.

“Our mission continues to be marketing Lane County to support recruitment of new companies to the area for the purpose of local job creation. We think the solid base of RV companies who have already established a footprint here, will help us recruit more effectively with related companies who see this as the second most important market for the RV industry today.”

The Lane Metro Partnership can provide all types of business information for companies who are interested in moving to the area. The County maintains a comprehensive computerized inventory of vacant industrial land and buildings in addition to summaries of various kinds of assistance and incentive programs, current fact sheets on utility rates, taxes, demographics and a working knowledge of systems, development charges and related business issues.

The RV industry is one of the few bright spots in American manufacturing these days, as noted in a recent NBC News segment on the industry. Although they only mentioned Indiana and the significant increase in manufacturing jobs in the RV industry companies located there, the same holds true for their Western neighbors out in Oregon. There are over 18,000 people employed in the Lane County manufacturing companies and over 10,000 of them are employed in RV companies.

There is a strong labor market in Oregon. 2000 census figures show that more than a quarter of Eugeneans 25-yearsold and above have completed four or more years of college. This compares favorably to the national figure of 20.3%. Work stoppages in Lane County, and Oregon in general, are well below national averages.

Post Secondary Education is bolstered by the nationally recognized University of Oregon that enrolls more than 18,000 students in their undergraduate programs in liberal arts and science. Oregon State University, just 45 minutes north of Lane County, is one of the leading West Coast centers for the study of engineering, technology, and agriculture. Both universities have pooled their resources to assist research technology firms through an organization called the Southern Willamette Research Corridor. The 40-mile corridor is a center for research, development and specialized manufacturing.

In addition to the above educational programs, Lane Community College serves more than 40,000 full-time, part-time, non-credit and adult education students each year, with national caliber programs in many technical fields from computer technology to nursing to forestry management.

Many of these graduates stay right in Oregon after they graduate because they recognize the potential of the area and the future employment opportunities with new companies continuing to move into the area.

Amazingly, despite the fact that the population continues to grow, they continue to lead the country with the lowest unemployment statistics.

Although preferring to sell the area on the many benefits that companies enjoy when moving to Oregon, such as the workforce, transportation, utilities, regulatory, low workers comp, environment and quality of life; there is financial assistance available to qualified companies.

Among some of the programs being offered are the Cascade West Microloan Program that provides extra capital for new or existing businesses; Cascade West Revolving Loans to finance land, buildings, equipment, machinery and working capital. Companies may also be eligible for the Eugene Business Development Funds that can also be used for the above purposes at belowmarket interest rates in amounts up to $500,000. Basic requirements for these loans include one job for every $10,000 borrowed.

Oregon Industrial Development Revenue Bonds are issued by the Oregon Economic & Community Development Commission for manufacturing and processing facilities in Oregon. The rate can be 75- 80% of conventional rates. Project funds range from $1.5 to $10 million.

In the area of tax incentives, Enterprise Zones offer a threeyear, 100% property tax abatement on buildings and equipment. Qualifying zones are currently available in Cottage Grove, Springfield, Florence and Oakridge.

The attractiveness of the area has been validated by companies such as Industrial Finishes, Coach Glass (with an inventory of over 25,000 RV and bus windshields), Tarleton Bull Rapid Prototyping (combining the world’s leading rapid prototyping and computing technologies with unsurpassed engineering acumen; mechanical knowhow; client-centric processes; electronic expertise and creative flair all from their new Eugene facility), Kwikee Products (manufacturers of many products that have become essentials on today’s RV’s, including electric steps, room slides, leveling systems, storage slides and utility trays), MITO Corporation (stocking over $1 million dollars of quality brand name electronic entertainment and appliance related products that are ready for immediate shipment), River Park Inc. (a national distributor of mobile audio products with a 16,000 square foot warehouse in Eugene), and TriStar Distributing (offering today’s most wanted electronic products for TV, DVD, satellite radio, microwave ovens and more from their Eugene distribution center).

The welcome mat is out, the invitations are in the mail, and you are probably going to be seeing more companies looking west when thinking about expansion. When they do look west, they will most likely see the attractiveness of Lane County and some of their industry friends, business partners, and even competitors already there.

It’s real here. RVNes, Coach Glass (with an inventory of over 25,000 RV and bus windshields), Tarleton Bull Rapid Prototyping (combining the world’s leading rapid prototyping and computing technologies with unsurpassed engineering acumen; mechanical knowhow; client-centric processes; electronic expertise and creative flair all from their new Eugene facility), Kwikee Products (manufacturers of many products that have become essentials on today’s RV’s, including electric steps, room slides, leveling systems, storage slides and utility trays), MITO Corporation (stocking over $1 million dollars of quality brand name electronic entertainment and appliance related products that are ready for immediate shipment), River Park Inc. (a national distributor of mobile audio products with a 16,000 square foot warehouse in Eugene), and TriStar Distributing (offering today’s most wanted electronic products for TV, DVD, satellite radio, microwave ovens and more from their Eugene distribution center).

The welcome mat is out, the invitations are in the mail, and you are probably going to be seeing more companies looking west when thinking about expansion. When they do look west, they will most likely see the attractiveness of Lane County and some of their industry friends, business partners, and even competitors already there.

It’s real here!


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