T H E M O N T H LY B U S I N E S S S E C T I O N F O R L I N N A N D B E N T O N C O U N T I E S A N D T H E M I D - W I L L A M E T T E VA L L E Y
www.democratherald.com/business • www.gazettetimes.com/business
February 2012
Phil Doud, center, owner of John & Phil’s Toyota and Subaru, browses through the selection of cars with customer Steve Oien of Philomath, left, and general manager Vic Eden recently in Corvallis. AMANDA COWAN | CORVALLIS GAZETTE-TIMES
Auto sales switch gears If buyers are ready, lenders are willing —now’s a good time to buy new Doud of John & Phil’s. He said that from 2009-2011, sales were down about 30 or 40 percent. fter several years of pinching penAnother hurdle for auto dealers in the nies, consumers may finally be past year was the Japanese tsunami and feeling confident enough to trade flooding in other countries that produce in their aging autos for a newer — auto parts. and more fuel-efficient — set of “There was a time in 2011 when we were wheels. literally out of cars,” Doud said. “We had That’s the word from national auto anazero Subarus for 30 days.” lysts, and it’s what mid-valley auto dealers Between the lack of supply and the lack are hoping to see as well. of demand, the average age of the AmeriDespite rising gas prices, in mid-February can car has reached an all-time high. Acanalysts J.D. Power and Associates and LMC cording to a January report by research Automotive revised their prediction for the firm R. L. Polk, the average car is now 10.8 coming year, saying that sales have been so years old. strong thus far in 2012 that they expect new However, auto dealers are betting on cars and trucks sold this year to top 14 milthe fact that those older cars are starting to lion. That’s the highest it’s been since 2007, cost their owners more to hang on to than the last year before the U.S. economy fell into to sell, Doud said. recession and auto sales bottomed out, driv“Our service department has been ing U.S. auto manufacturers to the verge of ‘There have been shortages of good pre-owned vehicles. The busy, which means those older cars are bankruptcy. starting to cost more to maintain,” he said. While local auto dealers aren’t ready to devalues of trade-ins are very high right now.’ Older cars also tend to be less fuel-efficlare the hard times over, they say they’ve DREW KOEHNKE cient. Fuel economy is one of the highest seen an uptick in sales recently. GENERAL MANAGER OF POWER HONDA IN ALBANY priorities for new-car shoppers, local auto “We are seeing a genuine resurgence of indealers say, especially with gas prices foreterest from people,” said Phil Doud, president back. cast to rise in coming months. of John & Phil’s Toyota Subaru Scion in Corvallis. “BusiOver the past few years, stricter credit requirements “We have hybrids, we have the Prius, we have cars ness has been a little better in the last 60 or 90 days than had made it harder for some people to get loans to afford that get 40-plus miles per gallon,” Doud said. “Those are it’s been in the past two years.” He expects a 15-20 pera new car. Now, however, rates are the lowest they’ve really catching the attention of the buyer.” cent increase this year over last year. been in the past four years, according to credit bureau The lack of movement in the auto market also means Jerry Gorter, sales manager of Power Auto in CorvalExperian. The average interest rate for a new-vehicle that those cars people have been hanging onto might aclis, says he too has seen an increase in the last two loan fell to 4.52 percent in the fourth quarter of 2011, and tually be worth more than they would have been in more months and estimates that sales are up about 5 percent the Federal Reserve in January committed to keeping affluent times. so far in 2012. rates low through 2014. “There have been shortages of good pre-owned vehiIn Albany, Drew Koehnke, general manager of Power “Banks are lending, Honda Financial is lending,” cles,” Koehnke said. “The values of trade-ins are very Honda, said that from 2010 to 2011, sales of used cars at Koehnke said. “Local credit unions are aggressively high right now.” his dealership doubled, and sales of new cars are up 50 looking for business.” All those factors lead local dealers to believe it’s going percent. And consumers are responding by heading out to look to be a good spring. Buyers returning to lots for new cars, after several years of holding off on major “It’s tax return season,” said Gorter of Power Auto. “People have that money, now they can put something Low interest rates for consumers and an aging fleet of purchases. down on a car.” vehicles on the road are two factors driving the come“People haven’t bought for the last three years,” said
By JENNIFER ROUSE
DAVID PATTON | ALBANY DEMOCRAT-HERALD
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MOVERS&SHAKERS Comings & Goings Spice and Ice has opened a second location, this one in downtown Corvallis at 215 S.W. Third St. The business serves Asian cuisine and Italian gelato, and has a menu of gluten-free choices. Hours are 11 a.m. to 9 p.m. Mondays through Wednesdays, and 11 a.m. to 10 p.m. Thursdays through Saturdays. The phone number is 541-2864157. The eatery is owned by Reba Worotikan, who opened the original Spice and Ice in the North Albany Village shopping center in 2007.
News & Notes Live Well Studio, LLC, in Corvallis will soon offer “Pilates for Equestrians,” taught by Antigone Cook. The class, which will start March 6, will offer a core and upper-body workout designed to strengthen the body for horse riding; however, Cook you don’t have Live Well Studio to ride horses to appreciate the workout. The course is designed to give a full-body power workout challenging the balance, core and legs. Props will be provided, and include use of fitness ball, dyna-band and Pilates Magic Circle. The course will include a take-home sheet of exercises for at-home conditioning. Participants will also have the opportunity to order props for home use. Cost of the class is $85. Cook has a Bachelor of Arts in community health, a Pilates certification from the Physical Mind Institute, and a personal training certification through the American Council on Exercise. She has taught Pilates in the Corvallis area for more than 15 years. Live Well Studio provides a comprehensive schedule of Yoga, Pilates, Qi Gong, Feldenkrais, and dance for all levels, including a Pilates equipment class. The studio is at the west end of the Market of Choice complex, 971 N.W. Spruce Ave. Further information is available at www.livewellstudio.com. ■ Kevin Simrin, administrator for Corvallis/Albany of RE/MAX Integrity, accepted the annual Brokerage of the Year award for the four-state Northwest region covering 140 offices. This annual award is given by the RE/MAX region to the office that shows strength in market share, per agent production and community giving.
RE/MAX Integrity has local offices in Albany, Corvallis and Eugene.
Officers & Directors Corvallis City Manager James A. Patterson has been appointed to the Oregon City/County Management Association Board of Directors, representing the Willamette Valley and larger cities. Patterson’s term on the board will expire in 2014. Patterson Before coming Named to board to Corvallis, he was Sherwood’s city manager for three years. The association seeks to increase proficiency of city managers, county managers and other municipal administrators; strengthen the quality of urban government; and apply ethical principles that govern the conduct of every member.
People on the Move Keller Williams Realty MidWillamette has announced the addition of a new agent to its Lebanon team: Jason Moore. He joined the Lebanon Home Team, headed by Laura Gillott, on Feb. 1. Prior to that, he Moore worked at EnKeller Williams tek International for 20 years, and proceeded to earn his real estate license by attending Norman F. Webb Real Estate Courses in Salem in 2008. He was born and raised in Lebanon. He is currently a Buyer’s Specialist. Moore can be reached at 541-451-2211, or at jason@lauragillott.com. ■ Samaritan Mental Health in Corvallis has welcomed Megan Hogland as a certified medical assistant. Working with psychiatrist Scott Babe, Hogland adminHogland isters a treatSamaritan ment for depression, NeuroStar TMS Therapy, that noninvasively delivers focused magnetic pulses through the skull to stimulate the regions of the brain thought to be involved in mood regulation. Before joining Samaritan Mental Health, Hogland worked as a medical assistant in private practices in Corvallis. Samaritan Mental Health can be reached at 541-768-5235.
LBCC offers small-business class for veterans MID-VALLEY INBUSINESS
The Small Business Development Center at LinnBenton Community College is offering a small-business management class that’s specifically for veterans, active-duty servicepeople and the families of both, and organizers are offering a special deal on tuition. Students in the class must have owned and operated their own business for at least a year. The idea of the class, according to lead instructor Brian B. Egan, is to help existing businesses thrive. The class is cofacilitated by John Howe, the former owner of Red Horse Coffee
February 2012
in Corvallis and a Vietnamcombat Marine. Egan served in the U.S. Air Force and is a Vietnam-era veteran. Classes are held the first Thursday evening of each month for nine months starting on Thursday, March 1. Between class sessions, students get one-onone business counseling. The class costs $199, Egan said. Normally, it would cost $995, but the Veterans Administration is helping to subsidize the program. People who want more information on the class or who want to register should call 541-917-4923.
AMANDA COWAN | CORVALLIS GAZETTE-TIMES
Seifemichael Debessay, from left, manager of Papa’s Pizza Parlor in Corvallis, joins supervisor Faustino Jiminez, vice president Randy Wallachy and general manager Mike Schehen in the kitchen recently.
Supporting community By MARIA L. KIRKPATRICK
Chamber recognizes Papa’s Pizza for fundraising projects xtensive community support, family, fun and food: Those are the ingredients that helped Papa’s Pizza Parlor win the Business of the Year award at this year’s Celebrate Corvallis event, sponsored by the Corvallis Chamber of Commerce. Receiving the award was a huge honor, said Randy Wallachy, a vice president for the company. “For us to even just be nominated with those other great companies,” he said. ... “It was a goose-bump moment.” Wallachy, of Corvallis, has spent 35 years working at Papa’s Pizza. Wallachy said the company and its ideology that have kept him with the business, which recently celebrated its 40th anniversary overall. (The Corvallis restaurant has been in operation for 29 years.) The happiness and camaraderie begins within the restaurant and reaches out into the customers. The environment is such that staff look forward to coming in for their work shift, and that projects to the customers who become like family. “It always has been the company philosophy to be a big part of the community,” Wallachy said. That notion has done the business and Corvallis well. Seems like you can’t go anywhere or be a part of anything without hearing about something going on at Papa’s Pizza. If you have a child, attend a school or are part of an organization, you know Papa’s is there for support.
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Here are some of the keys to success for Papa’s Pizza: • Be a part of the community. “This is key for everything,” said Randy Wallachy, vice president of Papa’s Pizza Corvallis.“We derive everything for the community.“ • Customer service. At Papa’s Pizza, a family dinner is an event. Families come in to socialize and celebrate. Papa’s wants to make that an easy and enjoyable time. Wallachy said he has customers who have adult children who still come in.“Customers become a part of our family.“ • Employees. To be successful, a business has to have success within its ranks. Wallachy said management provides an enjoyable work environment and recognizes that nothing can be accomplished without a solid work force. This also keeps consistency within the business. • High quality product. From ingredients to presentation, Papa’s Pizza strives for quality. Keeping ingredients fresh, local when possible, and product consistent ensures repeat customers. • Marketing. Papa’s takes care of its customers and builds a solid customer base. Birthdays are recognized and communication established.
Many a parent has eaten at Papa’s to help the school raise money or visited Papa’s for a scout troop event or sports team’s award lunch or dinner. Front and center on its web page, Papa’s declares, “Papa’s Pizza wants to be your choice for your next fundraiser or party. Give us a call or come in and see us today!” That’s where Wallachy likes to get involved. He encourages schools, leagues, teams and clubs to talk to him for ideas on how to make their fundraiser a success. He can suggest
themes, projects and decorating to promote student ownership of the parlor during the event. “I’ve seen ideas that are successful,” he said. “I can point people in a direction that can result in almost double the money they would make.”
School ties Since it fired up in Corvallis nearly three decades ago, Papa’s has visited schools and schools have toured Papa’s kitchen. All schools have an opportunity to do two fundraisers a year and Papa’s makes sure schools and clubs have pizza coupons on hand to recognize student achievements. “It’s our philosophy to not turn somebody down,” Wallachy said. “We’ve been doing fundraisers for more than 25 years. We saw a need and developed a way to help (the community).“ One of the secrets to success, Wallachy said, is how the company treats its own people. Papa’s takes care of its staff and turnover is low; some hourly employees have been with the company for 10 to 15 years. Three of the managers have become owners. “It’s how we take care of our employees,” Wallachy said. “They, in turn, take care of us.” Papa’s Pizza is made up of two franchises. The first restaurant was built in 1971 in Eugene. Today there are two companies in Eugene, owned by the founding family, and parlors in Springfield, Corvallis, Gresham and Beaverton owned by managers. The Corvallis location is at 1030 S.W. Third St.
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DAT E B O O K
B US I N ES S DATA Residential Average Sales Price by Area
Unemployment Rate Nov. 2011
Dec. 2011 12.7
9.4
10.6 9.1 8.9
8.7 8.5
U.S.
11.6 11.1
7.1
6.2 6.0
Benton Co.
Oregon
Thousands
Dec. 2010 16% 14% 12% 10% 8% 6% 4% 2% 0
Linn Co.
Source: Oregon Employment Department Note: Data are seasonally adjusted.
325 300 275 250 225 200 175 150 125
299,687 230,115 Benton County Linn County
191,847
Jan. 2012
Albany N. Albany Brownsville Corvallis
420 113 17 500
Units sold past year
Jan. 2011
462 140 18 469
Average sales prices
Jan. 2012
153,933 225,619 142,452 272,594
Average sales price
Jan. 2011
159,209 246,155 177,075 279,284
2009
2010
2011
2012
Source: Willamette Valley Multiple Listing Service
Mid-Valley Residential Report Units sold past year
135,578
2008
Independence Jefferson Lebanon Philomath Sweet Home
Units sold past year
Units sold past year
Average sales prices
Average sales price
Jan. 2012
Jan. 2011
Jan. 2012
Jan. 2011
54 58 300 77 130
59 42 310 79 130
154,603 200,490 132,403 247,828 122,142
213,637 199,914 151,786 242,126 119,579
Source: Willamette Valley Multiple Listing Service
Corvallis MSA (Benton County) Nonfarm Payroll Employment Source: Oregon Employment Department
Dec. ’10 1,130 3,280 4,360 810 1,360 3,660 5,660 3,420 1,170 580 9,730 2,890
Change from Nov. ’11 Dec. ’10 -30 60 -40 -30 0 50 -10 -20 0 20 20 40 0 120 -20 -180 -10 -20 -10 -30 -190 640 -110 -40
Natural resources, mining and construction Manufacturing Trade, transportation and utilities Information Financial activities Professional and business services Educational and health services Leisure and hospitality Other services Federal government State government Local government
Dec. ’11 1,190 3,250 4,410 790 1,380 3,700 5,780 3,240 1,150 550 10,370 2,850
Nov. ’11 1,220 3,290 4,410 800 1,380 3,680 5,780 3,260 1,160 560 10,560 2,960
Total nonfarm payroll employment
38,660
39,060
38,050
Dec. ’11
Nov. ’11
Dec. ’10
2,330 6,810 8,510 390 1,240 2,860 4,760 2,950 1,340 310 1,140 5,940
2,400 6,860 8,450 390 1,250 2,930 4,730 2,890 1,340 320 1,150 5,970
2,160 6,600 8,680 390 1,290 3,140 4,810 2,970 1,360 340 1,170 6,520
-70 -50 60 0 -10 -70 30 60 0 -10 -10 -30
170 210 -170 0 -50 -280 -50 -20 -20 -30 -30 -580
38,580
38,680
39,430
-100
-850
-400
610
Linn County Nonfarm Payroll Employment Source: Oregon Employment Department Natural resources, mining and construction Manufacturing Trade, transportation and utilities Information Financial activities Professional and business services Educational and health services Leisure and hospitality Other services Federal government State government Local government Total nonfarm payroll employment
Change from Nov. ’11 Dec. ’10
U O I N D E X O F EC O N O M I C I N D I CATO RS The numbers: The University of Oregon Index of Economic Indicators gained 0.7 percent in December to 89.4 (1997=100), its best performance since July. The good news: Improvement was widespread, according to the report’s author,Timothy Duy of the University of Oregon Department of Economics. Initial unemployment claims dropped to their lowest level since February 2008. Employment services payrolls increased, suggesting an upward demand for new hires. Core-manufacturing orders bounced back so strongly that the previous month’s loss was wiped out. The bad news: None.
Index, 1997 = 100 92 91 90 89 88 87 86 July-11
Aug-11
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That’s right – none of the components that make up the economic index declined significantly during the month. The upshot: Duy said the numbers suggest “room for
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optimism” regarding the economic forecast for 2012. Another view: Duy also is tracking a new index, a three-month moving average of the Oregon Measure
of Economic Activity.The three-month average in December was down 0.8, as manufacturing and service sectors made positive contributions to the measure. (A measure of zero corresponds to the average growth rate for the period, in this case from 1990-2011.As the number draws closer to zero, as it did in December, that means the economy is making its way back to normal growth.) Overall, construction and household sectors remain a drag on the measure. Residential building permits remain weak. To learn more: Check out the full report at the website http://pages.uoregon.edu/o efweb/
Today: Phlebotomy program information session, 10 a.m. to noon, conference rooms B/C, Samaritan Lebanon Community Hospital, 525 N. Santiam Highway. Free information session on the phlebotomy program that will run July 30 through Nov. 16 at the hospital’s Health Careers Training Center and the Linn-Benton Community College Lebanon Center. Information: LBCC Business, Healthcare and Workforce Division, 541-917-4923. Wednesday:Albany Area Chamber of Commerce Membership Forum Luncheon: “OSU’s Economic Impact in Oregon and the MidWillamette Valley.” Speaker: Steve Clark, Oregon State University vice president of University Relations and Marketing. 11:30 a.m. to 1 p.m., Linn County Fair & Expo Center, 3700 Knox Butte Road,Albany. Cost: $13 members; $20 guests. Info: 541-812-1517. Thursday: Downtown Brown Bag Workshop, noon, conference room, Willamette Neighborhood Housing Services, 257 S.W. Madison Ave., No. 113, Corvallis. John Hope-Johnstone will present “Get the Biggest Bang for Your Marketing Buck.” Bring a lunch. Sponsored by the Downtown Corvallis Association. Registration: 541-754-6624 or joan@downtowncorvallis .org. Thursday:Albany Kiwanis Club Luncheon “Innovations in Nanostructured Carbon Materials.” Speaker: Sean Mortensen, EnerG2. Noon, Pop’s Branding Iron Restaurant, 901 Pacific Blvd. S.E., Albany. Info: 541-223-1247. Thursday: Veterans small business management class, 6 to 9 p.m., first Thursday of each month, starting this week, LinnBenton Community College, 6500 Pacific Blvd. S.W., Albany. Cost: $199. Registration: LBCC Small Business Development Center, 541-917-4923. Saturday: Traffic control flagger certification course, 8 a.m. to 12:30 p.m., Fireside Room, CC211, Calapooia Center, Linn-Benton Community College, 6500 Pacific Blvd. S.W., Albany. Cost: $80, which includes all materials, certification test and card. Participants must be 18 years of age or over, and possess a valid driver’s license. Registration: LBCC Business, Healthcare and Workforce Division, 541-917-4923. Saturday:“Burn the Mortgage Community Garage Sale,” 9 a.m.
to 3 p.m., Philomath Scout Lodge, 660 Clemens Mill Road.Annual garage sale for nonprofit agencies. Saturday: Sweet Home Chamber of Commerce community awards banquet. Time: 6 p.m. (program begins at 7 p.m.), Jim Riggs Community Center, 878 18th Ave., Sweet Home. Cost: $20 per person. Tickets available at the chamber, 1575 Main St. Info: 541-367-6186. March 5: 100-ton master training course, 8 a.m. to 5 p.m. March 5 through 9 and 26 through 30, Englund Marine, Newport. Students will learn and practice skills required to pass the U.S. Coast Guard Merchant Mariner examination for Master of Inspected Vessels of not more than 100 gross tons. Cost: $400. Registration: Toni Middleton, Clatsop Community College, 503-3257962 or tmiddleton@ clatsopcc.edu. March 6-7: Cascade Occupational Safety and Health Conference. March 6,9:30 a.m.to 3:15 p.m.; March 7,7 a.m.to 1 p.m.,Valley River Inn,1000 Valley River Way,Eugene.Cost: $165 both days; $95 one day.Info: 503-378-3272. March 7: Women In Business Luncheon: “How to Find the Right Weight Loss Program for You.” Presenters: Cathy Baker, Take Shape for Life; Peggy Burris, Weight Watchers; Barbara George, RD, Samaritan Heartsprings Wellness Center. 11:45 a.m., Spring Hill Country Club, 155 Country Club Lane, N.W., Albany. Cost: $15 members; $20 guests. Info: 541-926-1517. March 8: Albany Kiwanis Club Luncheon “Fire & Police Levies and What’s All This Talk About CARA.” Speaker: Sharon Konopa, Albany mayor. Noon, Pop’s Branding Iron Restaurant, 901 Pacific Blvd. S.E., Albany. Info: 541-223-1247. March 10: Albany Area Chamber of Commerce Distinguished Service Award Banquet. 5:30 p.m., Boys & Girls Club of Albany, 1215 Hill St., Albany. Cost: $60 per person. Info: 541-926-1517. March 13: Linn/Benton Livestock Forages Breakfast Education Program: “Animal Damage & Rodent Control.” Speaker: Doug Freeman, RCO Intl. 6:30 to 8 a.m., Pioneer Villa Restaurant/Truck Stop, 33180 Highway 228, Halsey. Info: Joel Pynch 541-466-5344 or Shelby Filley 541-672-4461.
Flagging class starts in Albany MID-VALLEY INBUSINESS
Adams Flagging of Albany will hold regular training classes at the Comfort Inn Suites, 100 Opal Court N.E. in Albany. Classes, which will be offered year-round, are scheduled every other Saturday from 8 a.m. to noon starting this month. Those interested in gaining certification can contact instructor Jodie Adams at 541-9261663 to register. Adams has been teaching flagging classes for 18 years and has 30 years of experience as a flagger. Adams Flagging also offers on-site courses for
larger companies and provides instruction throughout the state. Cost for the course is $95. Each student will receive three workbooks and, upon completion of the course, a three-year certification card. The four-hour course will include practice flagging, sign setup and takedown, and instruction in radio use. Participants will view training films on flagging and take an open book test at the end of the course. Students also will receive a list of flagging companies. Refreshments and beverages will be served at each class.
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