Professional Documents
Culture Documents
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second-most forested state, Oregon is a national and international leader in softwood lumber production,
plywood production, forestry productivity, timber harvest, logging, forestry education and wildland
firefighting. In 2009, more than 2,200 firms directly employed 47,722 people who earned average annual
salaries of nearly $44,000 ± about eight percent higher than the statewide average for wage-earners.
Thousands more people are employed indirectly as a result of cluster activity.
The Forestry and Wood Products Cluster is highly organized and well-established. Firms within the
cluster are known for their collaboration in state and their competitiveness EH\RQGWKHVWDWH¶VERUGHUV. The
future success of the cluster is dependent on external variables, many of which are not within 2UHJRQ¶V
direct control. These include national housing starts, availability of mortgage capital, competition from
non-wood materials, and the impact of federal legislation and regulations. Current cluster health is poor,
with the 2009 Oregon timber harvest the lowest since 1941, lumber prices the lowest ever (in real
dollars), and a continuing decline in the number of wood products mills and overall employment.
$1RYHPEHUVXUYH\E\WKH2UHJRQ)RUHVW5HVRXUFHV,QVWLWXWHDLGHGWKHFOXVWHU¶VLGHQWLILFDWion of
key policy and action initiatives the cluster should focus on in 2011-12. Fifteen organizations and
individuals responded to the survey, and the cluster approved its recommendations on Dec. 1, 2010.
Firms within the cluster are concerned about the impact of recent court decisions and federal agency
proposals. Specifically, these include:
x Ninth Circuit Court of Appeals decision that a National Pollution Discharge Elimination System
(NPDES) permit is required for stormwater runoff from logging roads. Road-building on private
and state land is highly regulated and has been much improved over the past two decades as a
result of new science to protect water quality and aquatic habitat. Requiring forest landowners to
obtain NPDE S permits for road-building will create extra costs.
Pages 3-15 are the full document submitted to the Oregon Business Plan.
2
2010 O regon Business Plan C luster Update Form
Part I: General Information
Mike Cloughesy
Oregon Forest Resources Institute
971-673-2955
cloughesy@ofri.org
3
o Nonprofit O rganizations
Sustainable Northwest (www.sustainablenorthwest.org)
Defenders of Wildlife (www.defenders.org)
The Nature Conservancy (www.nature.org/oregon)
o Dr. John McLoughlin built the first sawmill in Oregon in 1832 at Willamette Falls
o Oregon Forest Cluster Economic Development Core Team was formed in 2006
4
Economic Impact of Cluster (Sales, Oregon Employment/ Employment Growth, Average
Wage/ Wage Growth, Multiplier Effects, etc.)
Organizational Structure (ie. Informal meetings, trade association, Google Group, etc.)
o Formal meetings of associations and cluster working group
Meeting Frequency
o Quarterly meetings of various cluster groups
Metrics Used to Evaluate Cluster Health (i.e. comparison with same industry in other
states, performance over time, etc.)
o Lumber and plywood output ± Oregon is number one state in U.S.
o Timber harvest, employment, profits, lumber and plywood output over time
o Location quotient (LQ) as a measure of comparative advantage ±
Wood Product LQ = 5.6
Forestry Services LQ = 3.6
Overall Cluster LQ = 2.6
5
&OXVWHU¶VDQQXDOEXGJHW: not available
Is there any other information that we should know about your cluster?
o We are not dinosaurs ± modern forestry and wood products is a high-technology,
high-skill business
o We are survivors and we are here to stay
3DUW,,2UHJRQ¶V%XVLQHVV&OLPDWH
6
Please use the diagram below to tell us how Oregon rates in each of the Four Ps.
(5 = highest performance, 0 = lowest performance)
3.4
3.4 2.6
2.6 3.0
3.2
3.0
2.2 3.2
2.0
4.8
1.2
4.4
2.4 3.6
2.2
Note: The numbers shown in the diagram represent actual averages of responses received from
cluster participants.
7
Part I I I: O BP Core Initiatives
7KH2UHJRQ%XVLQHVV3ODQ¶VPDLQDJHQGDLVWRFRQVLGHUDQGDGYRFDWHIRUVSHFLILFLQLWLDWLYHV²policies and
actions² that help achieve the conditions necessary for traded sector businesses to thrive. For more information or details about the
Oregon Business Plan initiatives, please visit www.oregonbusinessplan.org.
Not
E xtremely Not V ery
Important
Suggested O BP Initiatives Important Important Important Specific concerns and specific ideas to improve this area
A t A ll
4 3 2
1
A dopt a long-term budgeting process that 2.6 The biennial budget would still be a mess.
helps policyma kers prioritize expenditures
and identify ways to deliver quality services
at a lower cost.
Reform the tax system to improve the 3.2 There needs to be better taxing that captures fees
stability of revenues and reduce reliance on or taxes from tourists or other visitors. People
the income tax.
would favor a limited sales tax if it offset income
taxes. Voters are afraid the state would increase
the income tax later after getting a sales tax
through ± need trust from voters on any change.
Strengthen Prek-12 education 3.0 Improve efficiency and outcome = lower costs
but improve performance ± it must be done.
Strengthen university and community 3.2 All tuition funds should be received and retained
college education by the individual institution ± should never go to
GF for redistribution.
+HOS³VNLOO-XS´WKHLQFXPEHQWH[LVWLQJ 3.2 K-12 program needs to recognize that not all kids
wor kforce. are interested in college and that we need
qualified people in the trades ± need to provide
opportunity for these kids to learn teamwork,
safety, responsibility, communications, etc.
Support efforts to strengthen 2.8 A favorable tax climate for individuals and
commercialization and innovation (such as business (particularly small business) would help
the O regon Innovation Plan).
innovation ± MXVWSODQQLQJZRQ¶WZRUN
8
Simplify and streamline regulations and 4.0 x There is a lot of opportunity to do this
permitting processes. Prevent new without jeopardizing safety and public
regulations and processes that add to the
cost and difficulty of doing business. values.
x This is the biggest problem the state has.
Multiple agencies, conflicting regulations
DQGEXUHDXFUDWVWKDWGRQ¶WXQGHUVWDQGWKH
private sector needs.
x Creeping environmental regulations are
strangling our business.
B ring down health care costs. 3.2 x State has little effect.
x %LJJHUJRYHUQPHQWZRQ¶WGRLW
x )RFXVRQ³KHDOWKFDUHFRVWV´QRWKHDOWK
LQVXUDQFH([SHQVLYHLQVXUDQFHLVQ¶WWKH
cause of high health care costs; it¶V a
result.
Improve the availability of industrial and 3.0
employment land, connected to
infrastructure.
M aintain and upgrade our infrastructure 3.0 Particularly the capacity of I-5.
(transportation, water, telecommunications,
etc.)
9
should provide an atmosphere that allows
business development
Improve access to capital for emerging and 2.5 x Not a function for OBP.
existing businesses.
x Not easy in the current climate.
E nsure reliable, affordable and clean 2.8 This is not a problem in Oregon as long as we
supplies of energy. support hydropower (improve efficiency,
performance, and capacity) ± hydropower must
be included as a renewable energy source
M ake more productive use of our natural 4.0 x We have a unique resource that provides
resources (forests, water, etc.) unique opportunities for Oregon natural
resource based businesses. Improving
utilization expands local business market
share with direct economic,
environmental & social benefit to Oregon.
x Forest owners must have a favorable
regulatory and tax environment to make
very long term investments in forests.
This is important to keep.
x Forestry is sustainable and provides
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Though we recognize that many cross-cutting policy issues may be important to your industry, please indicate which O N E of the
above initiatives LVPRVWFULWLFDOWR\RXULQGXVWU\¶VFRPSHWLWLYHQHVVDQGZK\
Simplify and streamline regulations and permitting processes. Prevent new regulations and processes that add to the cost and
difficulty of doing business. This is most important because:
x Creeping environmental regulations are strangling business in our cluster.
x 7KHUHDUHPXOWLSOHDJHQFLHVFRQIOLFWLQJUHJXODWLRQVDQGEXUHDXFUDWVWKDWGRQ¶WXQGHUVWDQGWKHSULYDWHVHFWRUQHHGV
x There is a lot of opportunity to simplify and streamline without jeopardizing safety and public values
Note: Numbers are shown rather than Xs. These represent an average of actual responses where: 4 = Very Important, 3 = Important,
2 = Not Very Important, and 1 = Not Important At All.
10
Part I V : Specific Forest C luster Initiatives
Not
E xtremely Not V ery
Important
Specific Forest C luster Initiatives Important Important Important Specific concerns and specific ideas to improve this area
A t A ll
4 3 2
1
Federal Forest Restoration Initiatives:
Widely communicate Oregon forest health 3.4 x Targeted communications are extremely
and forest cluster and rural community important, but general communications
economic vitality as priorities of the may not be effective
Governor and the State of Oregon.
Encourage and support local collaboration 3.4 x These are showing some signs of success
efforts, such as community wildfire
protection plans and fully using Healthy
Forest Restoration Act authority, to
accomplish federal forest restoration work
and provide wood fiber to local mills.
Explore a role for the State of Oregon to 3.6 x The role is already clear ± need to assert
directly participate in addressing federal x The state should be working with federal
forest/private forest interface issues with politicians on active management. We
respect to fires, insects, and diseases. seem too accepting of federal
management policies and need to fight for
better policies
x Need involvement from the Governor and
Not
E xtremely Not V ery
Important
Specific Forest C luster Initiatives Important Important Important Specific concerns and specific ideas to improve this area
A t A ll
4 3 2
1
Federal Delegation
Budget for a state-level federal forest 2.6 x Good idea, but specific position
DGYRFDWHUHSRUWLQJWRWKH*RYHUQRU¶V description and definition of expected
natural resource advisor outcomes is key
x Favor increased state/county forests; less
federal
x The Governor needs to lead
Forest Cluster Vitality Initiatives:
Promote development of market 3.6 x 2UHJRQ¶VIRUHVWVDUHVXEMHFWWRVWURQJ
opportunities and removal of market laws protecting public values. All wood
barriers for wood products, non-timber SURGXFHGIURP2UHJRQ¶VIRUHVWVVKRXOG
forest products and ecosystems services. TXDOLI\DV³VXVWDLQDEO\SURGXFHG´IRUDOO
building certification systems. Wood
should be given greater credit in
substitution for non-renewable building
materials. Oregon should lead the way by
promoting this in buildings
developed/owned by the state.
x LEED and other green certifications a
must.
Promote increased funding for integrated 2.6 x However, strong connection between
research programs that directly benefit the researchers/academics with forest sector
forest cluster through improved business is necessary to have the desired
management systems, technologies, and result
higher value wood products.
12
Not
E xtremely Not V ery
Important
Specific Forest C luster Initiatives Important Important Important Specific concerns and specific ideas to improve this area
A t A ll
4 3 2
1
Promote state and federal laws and 3.2 x Incentives are two-edged and may create
policies which provide economic winners and losers ± this needs to be done
incentives for biomass energy research very carefully with attention to timeframe
and industry development. and sustainability
x ,IWKHIHGVZDQWLW³WKH\ZLOOFRPH´
3URPRWHZD\VWRLPSURYH2UHJRQ¶VIRUHVW 2.5 x Depends on execution ± need to set
sector innovation system to increase aggressive objectives, measure
competitiveness and synergies among the performance to ensure effective execution
forest sector, higher education and other
Oregon business sectors.
6WUHQJWKHQUHODWLRQVKLSEHWZHHQ2UHJRQ¶V 3.2 x Absolutely and it is a no-brainer with
forest cluster and green building cluster. forest sustainability, carbon sequestering
DQGWKHVWDWH¶VODQGXVHJRDOV
Forestry Workforce Initiatives:
Establish employer-led training consortia 2.4 x Training for what? Mentorship program
by county or workforce region. utilizing retirees may be more effective?
Expand forest cluster employers¶ outreach 3.4 x *HQHUDOHGXFDWLRQDERXW2UHJRQ¶VIRUHVW-
programs to teachers, school counselors, based natural resources is important for
students and parents that promote career all students so that they can become better
opportunities in the cluster and develop informed about the environment they are
appropriate forestry education programs a part of and can better understand why
and specific skill training for students who some forests are managed to produce
want to pursue university/community sustainable natural resources such as
college education or enter the workforce wood.
directly from high school
13
Not
E xtremely Not V ery
Important
Specific Forest C luster Initiatives Important Important Important Specific concerns and specific ideas to improve this area
A t A ll
4 3 2
1
Thank you for your input to the Oregon Business Plan and the Oregon Cluster Network.
14
Part V : C luster Top Initiative
OTHERS:
Comments or Explanations:
This initiative is holistic. It addresses the environmental, social and economic situation by improving forest health, creating renewable
energy and creating rural jobs.
15