Southern Oregon Business Journal - April 2023 Issue

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I witnessed my first bank run, ok it was my second, the first one was in Frank Capra's "It's a Wonderful Life".

Last month, I watched as twitter frenzied tech millionaires and billionaires transferred with a tap on their phones $50 BILLION dollars overnight from Silicon Valley Bank making it insolvent and forcing the feds to move in and take over.

As many of you know, I serve on the board of a local community bank, People's Bank, and we met immediately following the run and closure of the bank to discuss the situation, get a sense of what our communities were feeling and to discuss our position and ability to handle panic like this.

We met again after the weekend and news of other banks closing. We wanted to make sure the customers of the bank and our communities did not panic. I share the letter they posted on their website addressed to customers of the bank on page 31. Thankfully the feds stepped in and took immediate and transparent action which seemed to calm everyone down. At least for the moment.

We have a special guest author this month. You have heard a lot in the news lately about ChatGPT and I wanted to try it out first hand and share with you real results.

I told my wife, Dena, that I was going to use ChatGPT to write all the articles this month as kind of an Aprils Fools Joke on you. But the more I tried, the worse it got. It’s kind of scary how much it can write based on prompts and asking it to read a press release and write up a summary. But sometimes I found the recap didn’t match the press release at all yet it was written in an authoritative voice. So instead I’m only sharing some stories written by ChatGPT. It's impressive how far it has come and I get a bit of worried excitement when I think about where it's all going.

Start reading what the bot has to say on page 5 and let me know what you think.

I also asked it to create the cover which I find funny and close to home. I also used BING to get clarification pop ups on stories written by human authors inside and you can find those as sidebars in yellow. The bot also created much of the art found on pages in the journal. It’s kind of scary how good it can do certain things.

I even “interviewed” ChatGPT and ask it if it can write articles for the journal and what it responded with is surprising but true. Read that on page 14.

As always I appreciate you reading the journal and talking about it with friends and colleagues. I still need humans to read and share, for now…

Jim

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AMERITITLE - PAGE 4

PEOPLE’S BANK - PAGE 30

MANAGED HOME NET - PAGE 37

SOU - LEADERSHIP BEGINS HERE

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PROJECT A - PAGE 42

Founder Greg Henderson ghenderson703@gmail.com

Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.

Cover Photo : https://labs.openai.com/ DALL-E

I asked ChatGPT to create a cartoon of robots in a museum enjoying art. It opened DALL-E an AI service by the same firm. This is what it came back with. I’m very impressed.

ACUTELY MOTIVATED

By Jim Teece and Special Guest - ChatGPT Note: Jim Teece is really reading this book.

Reality Is Broken: Why Games Make Us Better and How They Can Change the World" by

Jane McGonigal

highlights the importance of creating a sense of purpose and engagement among employees. By introducing game-like elements such as rewards, challenges, and progress tracking, businesses can increase employee motivation and productivity.

Secondly, the book emphasizes the power of collaboration and teamwork. Many games require players to work together towards a common goal, and businesses can learn from this approach by fostering a collaborative work environment that encourages employees to work together towards shared objectives.

Lastly, the book discusses the importance of innovation and creativity in problem-solving. Games often require players to think creatively and find unique solutions to challenges, and this mindset can be applied to real-world situations as well. Small business owners can benefit from embracing a more creative and innovative approach to problem-solving, and games can be a useful tool in developing this mindset.

"Reality Is Broken: Why Games Make Us Better and How They Can Change the World" by Jane McGonigal is a non-fiction book that explores the benefits of gaming and how it can be utilized to solve realworld problems. The book provides a detailed analysis of the psychology behind gaming and how it can be used to improve our lives.

McGonigal argues that games provide us with a sense of purpose, control, and accomplishment that is often lacking in our daily lives. By creating a game-like environment in real-life situations, we can increase our motivation and engagement, and ultimately, achieve greater success.

For small business owners, this book is relevant in several ways. Firstly, it

Overall, "Reality Is Broken" is a thought-provoking book that challenges traditional views on gaming and its potential applications. For small business owners looking to increase employee engagement, foster collaboration, and develop a more creative approach to problemsolving, this book offers valuable insights and practical suggestions.

By Jim Teece and Special Guest - ChatGPT

House passes $210 million Oregon

CHIPS Act to fund semiconductor industry

industry. In a statement, the SIA said that the Act would "strengthen America's semiconductor supply chain and support the development of advanced technologies critical to our economic and national security."

The Oregon Chips Act has recently been passed by the House of Representatives in Oregon, with the aim of providing financial support to the state's semiconductor industry. The Act will allocate a sum of $210 million towards various initiatives, including research and development, workforce training, and infrastructure improvements.

The semiconductor industry is a crucial sector for the global economy, powering a wide range of electronic devices from smartphones to automobiles. The Oregon Chips Act recognizes the significance of this industry, particularly for Oregon, which is home to a large number of semiconductor companies, including Intel, which is the state's largest private employer.

The Act aims to strengthen the competitiveness of Oregon's semiconductor industry by providing support for research and development, which is critical for developing new products and technologies. The funds will also be used to upgrade infrastructure, including roads, bridges, and utilities, to make it easier for semiconductor companies to operate and expand in Oregon.

In addition, the Act will provide support for workforce training, which is essential for maintaining a skilled workforce that can meet the demands of the semiconductor industry. This training will focus on both technical and non-technical skills, including leadership, communication, and project management.

The passage of the Oregon Chips Act has been welcomed by industry leaders and policymakers, who see it as a significant step towards strengthening the state's semiconductor industry. The Act is expected to create jobs, promote innovation, and stimulate economic growth in Oregon.

According to the Oregon Semiconductor Industry Association (OSIA), the semiconductor industry is a key driver of Oregon's economy, contributing more than $7 billion in revenue and over 31,000 jobs.

The OSIA has praised the Oregon Chips Act as a "critical investment" that will help to sustain and grow the industry in the state.

The Act has also received support from national organizations, including the Semiconductor Industry Association (SIA), which represents the US semiconductor

The Oregon Chips Act is a significant investment in the future of Oregon's semiconductor industry, and it has the potential to provide significant benefits to the state's economy. With support for research and development, infrastructure, and workforce training, the Act is expected to drive innovation, create jobs, and promote economic growth in Oregon.

References:

Oregon Capital Chronicle. (2023, April 6). House Passes $210 Million Oregon Chips Act to Fund Semiconductor Industry. https:// oregoncapitalchronicle.com/2023/04/06/ house-passes-210-million-oregon-chips-actto-fund-semiconductor-industry/ Oregon Semiconductor Industry Association. (n.d.). Industry Overview. https:// www.oregonsemiconductor.org/industryoverview

Semiconductor Industry Association. (2023, April 6). SIA Applauds Passage of Oregon Chips Act. https://www.semiconductors.org/ sia-applauds-passage-of-oregon-chips-act/

Top 10 proven ways to build fans of your brand with examples BUILDING BRAND FANS

By Jim Teece and Special Guest - ChatGPT

1. Consistent Branding: Maintaining a consistent brand image across all channels and platforms can help build brand recognition and create a loyal fan base. For example, CocaCola has been using the same iconic red and white logo and font for over a century, creating a consistent and memorable image that fans recognize instantly.

2. Engaging Social Media Presence: Social media can be a powerful tool for building brand loyalty by engaging with fans and followers regularly. For instance, Wendy's fast-food chain has gained a large following on Twitter by creating witty and humorous responses to customer inquiries and comments.

3. Exceptional Customer Service: Providing exceptional customer service can help build a positive reputation and create loyal fans. For instance, Zappos, an online shoe retailer, is known for its exceptional customer service, including free shipping and a 365-day return policy.

4. Influencer Partnerships: Collaborating with influencers and ambassadors who share your brand values and vision can help reach a wider audience and build brand

loyalty. For instance, Nike's long-standing partnership with basketball superstar Michael Jordan helped establish the brand's dominance in the sportswear market.

5. High-Quality Content: Creating high-quality content that aligns with your brand values and resonates with your target audience can help build a loyal following. For instance, Red Bull's content marketing strategy, which includes extreme sports and adventure videos, has helped the brand become synonymous with high-energy and excitement.

6. Community Building: Building a community around your brand can create a sense of belonging and help foster brand loyalty. For instance, Apple's community forum allows users to connect, share experiences, and get help from other Apple enthusiasts.

7. Personalization: Offering personalized experiences, products, and services can help create a deeper emotional connection with fans and build brand loyalty. For instance, Coca-Cola's "Share a Coke" campaign, where customers could personalize bottles with their names, created a buzz and drove sales.

8. Environmental and Social Responsibility: Demonstrating a commitment to environmental and social responsibility can help build a positive brand image and create loyal fans who share your values. For instance, Patagonia, an outdoor clothing company, has been a vocal advocate for environmental protection and has built a loyal following among ecoconscious consumers.

9. Innovation and Creativity: Being innovative and creative can help differentiate your brand from competitors and capture the attention of fans. For instance, Tesla's electric cars and cutting-edge technology have helped establish the brand as a leader in the automotive industry.

10. Consistent Delivery of Quality Products and Services: Ultimately, building a loyal fan base requires consistently delivering highquality products and services that meet or exceed customer expectations. For example, Amazon's focus on delivering a wide range of products at competitive prices, along with fast and reliable shipping, has helped the company become one of the most trusted brands in the world.

By Jim Teece and Special Guest - ChatGPT

White House Calls on Financial Regulators to Bring Back Safeguards for Regional Banks

The White House has called on financial regulators to restore safeguards for regional banks that were rolled back during the Trump administration. The move

comes as part of the Biden administration's efforts to strengthen regulations on the financial industry and protect

consumers from the risks of bank failures.

In a joint statement released on March 29, 2023, the Office of the

Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board said they would review and update regulations that govern the supervision of regional banks. The statement noted that "it is essential that banks, particularly regional and community banks, operate in a safe and sound manner."

The rollback of these safeguards during the Trump administration had allowed regional banks to take on more risks, such as investing in complex financial instruments and speculative ventures, without the appropriate oversight. This had raised concerns about the potential for bank failures and the subsequent impact on the broader economy.

The Biden administration's move to restore these safeguards has been welcomed by consumer advocates and some lawmakers who have been pushing for stronger regulations on the financial industry. "This is a positive step towards ensuring that banks are operating in a safe and sound manner and protecting consumers from the risks of bank failures," said Senator Elizabeth Warren.

However, some industry groups have criticized the move, arguing that the rollback of regulations during the Trump administration had allowed regional banks to better serve their customers and compete with larger banks. The American Bankers Association (ABA) said in a statement that the Biden administration's move "will

impose unnecessary burdens on regional banks, limiting their ability to serve their customers and communities."

The debate over financial regulation is likely to continue, with the Biden administration and industry groups taking different positions on the role of government oversight in the financial industry. However, the restoration of safeguards for regional banks is a positive step towards ensuring that banks operate in a safe and sound manner and protecting consumers from the risks of bank failures.

References:

"White House Calls on Financial Regulators to Bring Back Safeguards for Regional Banks," Oregon Capital Chronicle, March 30, 2023, https:// oregoncapitalchronicle.com/ 2023/03/30/white-house-callson-financial-regulators-to-bringback-safeguards-for-regionalbanks/.

"Regulators Pledge to Revisit Safeguards for Regional Banks," The Wall Street Journal, March 29, 2023, https://www.wsj.com/ articles/regulators-pledge-torevisit-safeguards-for-regionalbanks-11649920801.

"Senator Elizabeth Warren Applauds Biden Administration for Call to Restore Safeguards for Regional Banks," Senator Elizabeth Warren, March 29, 2023, https:// www.warren.senate.gov/ newsroom/press-releases/ senator-elizabeth-warren-

applauds-biden-administrationfor-call-to-restore-safeguards-forregional-banks.

"ABA Statement on Financial Regulators' Plans to Revisit Safeguards for Regional Banks," American Bankers Association, March 29, 2023, https:// www.aba.com/news-research/ newsroom/statements/abastatement-on-financialregulators-plans-to-revisitsafeguards-for-regional-banks.

Hey Bing! - What is a regional bank in Oregon?

A regional bank in Oregon is a bank that primarily operates within a specific region of the state, rather than having a national or international presence. Regional banks typically have a smaller footprint than larger national or international banks, and they may offer a more personalized approach to banking services.

Examples of regional banks in Oregon include Pacific Continental Bank, and the now merged Columbia Bank & Umpqua Bank. These banks serve customers in specific regions of the state and offer a range of banking services, including checking and savings accounts, loans, mortgages, and wealth management services.

Regional banks in Oregon can be an important part of the state's economy, providing financing and support to local businesses and individuals.

By Jim Teece and Special Guest - ChatGPT

Oregonians May Soon Be Able to Pump Their Own Gas

states, and that many Oregonians are capable of pumping their own gas safely.

remained in place since then, despite periodic attempts to change it.

The Oregon House of Representatives has passed a bill that would allow residents to pump their own gas. Currently, Oregon is one of only two states in the United States where it is illegal for drivers to pump their own gas, with attendants required to do the job.

The bill, which passed with a 46-14 vote, would allow selfservice pumping at gas stations in rural counties with populations of 40,000 or less. Supporters of the bill argue that it will provide convenience for drivers in rural areas who may have to drive long distances to reach a gas station. They also point out that self-service pumping is common in other

Opponents of the bill argue that the change could lead to job losses for gas station attendants and could also create safety hazards for drivers who are not familiar with pumping gas. They also argue that the current system of full-service pumping provides employment opportunities for those who may not be able to find work elsewhere.

The bill will now move to the Oregon Senate for consideration, where it will face further debate and scrutiny. If it passes the Senate, it will then go to the governor's desk for signature.

Oregon has a unique history when it comes to gas pumping. The state first instituted the law requiring full-service pumping in the 1950s, in part to protect workers from the dangers of gasoline fumes. The law has

If the bill becomes law, Oregon will join the majority of states in the United States that allow selfservice pumping. While it may take some time for drivers to adjust to the change, it could ultimately provide greater convenience and flexibility for those living in rural areas.

The debate over self-service gas pumping is likely to continue, as lawmakers balance the needs of drivers with the potential impact on gas station attendants and the local economy. However, the passage of the bill by the Oregon House of Representatives is a significant step towards allowing Oregonians to pump their own gas.

I asked ChatGPT to read the following article before writing this story:

"House Passes Bill to Allow Oregonians to Pump Their Own Gas," Oregon Capital Chronicle, March 20, 2023, https:// oregoncapitalchronicle.com/ 2023/03/20/house-passes-billto-allow-oregonians-to-pumptheir-own-gas/.

By Jim Teece and Special Guest - ChatGPT

Oregon Economic Development Agency Launches Program to Boost Rural Businesses

The Oregon Economic Development Agency

(OEDA) has launched a new program to help boost rural businesses across the state. The program, called the Rural Business Development Program, is aimed at providing funding and support to small businesses in rural communities that have been hit hard by the economic challenges of the past few years.

The program will offer a range of services and resources to participating businesses, including access to funding and technical assistance, as well as help with marketing and business planning. In addition, the program will work to connect businesses with local resources and organizations, such as chambers of commerce and economic development councils.

The Rural Business Development Program is part of a broader effort by the OEDA to support economic development in rural areas of

Oregon. The agency has identified rural communities as a key priority for economic growth, and is working to provide targeted support to businesses in these areas.

The program has already garnered support from business leaders across the state, who see it as a critical tool for helping rural businesses thrive. In a statement, OEDA Director, Johnathan Smith said, "We believe that rural businesses are the backbone of Oregon's economy, and we are committed to providing the resources and support they need to succeed. We are

excited to launch this new program and look forward to working with businesses across the state to help them grow and thrive."

The Rural Business Development Program is just one example of the efforts being made by the OEDA and other organizations to support economic growth and development in rural areas. As Oregon continues to face economic challenges, initiatives like this will be critical for helping small businesses and communities across the state to build a stronger, more sustainable future.

I asked ChatGPT to read the following article before writing this story:

"Oregon Economic Development Agency Launches New Rural Business Development Program," Oregon Business News, April 4, 2023, https://

development.oregon4biz.com/ acton/rif/14786/s-064b-2304/-/ l-0007:4d5c/q-000c/

showPreparedMessage?

By Jim Teece and Special Guest - ChatGPT

Can ChatGPT write a business plan for a Coffee Kiosk?

Market Analysis:

The coffee industry in the United States is a thriving and growing industry, with an estimated $45.4 billion in revenue generated in 2021. Furthermore, coffee consumption in the U.S. is increasing, with 79% of adults in the U.S. drinking coffee daily. Ok Zoomer will capitalize on this trend by providing high-quality coffee and tea drinks in a convenient and accessible location. Our kiosk will be located in a busy urban area with high foot traffic, ensuring a steady stream of potential customers.

Products and Services:

Create a business plan for a coffee kiosk called Ok Zoomer with financials to make enough profit to pay for the owner to earn $30k a year

Ok Zoomer is a coffee kiosk that will offer high-quality coffee and tea drinks to customers in a convenient and accessible location. The kiosk will be located in a busy urban area with high foot traffic, and will operate from

early morning to early evening to cater to the daily coffee needs of customers. The mission of Ok Zoomer is to provide a comfortable and welcoming atmosphere where customers can enjoy delicious coffee and tea drinks while also offering exceptional customer service. Our goal is to generate enough profit to pay the owner a salary of $30,000 per year.

Ok Zoomer will offer a variety of coffee and tea drinks, including lattes, cappuccinos, mochas, iced coffee, and more. We will source our coffee beans from reputable and sustainable coffee growers and roast them locally to ensure the freshest and highest quality coffee. We will also offer a selection of pastries and snacks to complement our drinks. Our focus will be on providing excellent customer service, making customers feel welcome, and ensuring their satisfaction with our products.

Marketing and Sales:

Our marketing strategy will primarily focus on creating a

I asked Chat GPT to write a business plan for a coffee kiosk with the goal of earning $30K a year as the owner.

strong social media presence, building an email list of loyal customers, and leveraging partnerships with nearby businesses to increase our exposure. We will also participate in local events and sponsor community initiatives to establish ourselves as a reliable and trustworthy business in the community. Our sales strategy will be to offer competitive pricing while still providing highquality products and exceptional customer service.

Financials:

Our projected revenue for the first year of operation is $150,000, with a profit margin of 20%. This means our estimated profit for the first year will be $30,000, which will cover the owner's salary. Our startup costs are estimated at $50,000, which includes the cost of the kiosk, equipment, and supplies. We will also allocate a marketing budget of $5,000 for the first year to build our brand and establish our social media presence.

meet our financial goals while providing an excellent product and service to our customers.

I then asked “How many cups of coffee have to sold per day to achieve those sales?”

To determine how many cups of coffee Ok Zoomer would need to sell per day to achieve a revenue of $150,000 in the first year, we need to make some assumptions about the average price per cup of coffee and the number of operating days.

Let's assume that the average price per cup of coffee is $4 and that Ok Zoomer will operate 7 days a week for 50 weeks in the first year (taking 2 weeks off for holidays, maintenance, etc.). Using these assumptions, we can calculate the number of cups of coffee that need to be sold per day:

Revenue per day = $150,000 / (7 days/week x 50 weeks) = $428.57

Number of cups of coffee per day = Revenue per day / Average price per cup of coffee

To determine how many people need to walk by the kiosk per day to sell 107 cups of coffee, we need to make some assumptions about the conversion rate of people walking by to the number of cups sold.

Let's assume that Ok Zoomer has a conversion rate of 10%, meaning that 1 out of every 10 people who walk by will purchase a cup of coffee. Using this assumption, we can calculate the number of people who need to walk by the kiosk per day:

Number of cups sold per day = 107

Conversion rate = 10%

Number of people who need to walk by per day = Number of cups sold per day / Conversion rate

Number of people who need to walk by per day = 107 / 0.10 = 1,070

Conclusion:

Ok Zoomer is a promising business idea with a strong potential for growth and profitability. By providing highquality coffee and tea drinks, exceptional customer service, and a welcoming atmosphere, we aim to establish ourselves as a go-to coffee kiosk in our community. Our projected revenue and profit margin are realistic and achievable, and we are confident in our ability to

Number of cups of coffee per day = $428.57 / $4 = 107.14

Therefore, Ok Zoomer would need to sell approximately 107 cups of coffee per day to achieve a revenue of $150,000 in the first year. However, this calculation is based on assumptions, and the actual number of cups sold per day may vary depending on factors such as location, pricing, competition, and marketing efforts.

Therefore, approximately 1,070 people would need to walk by the kiosk per day to sell 107 cups of coffee if the conversion rate is 10%.

By Jim Teece and Special Guest - ChatGPT

Interview with ChatGPT about AI and Small

and accessible AI technology, small business owners can leverage the power of AI to grow and succeed in their respective industries.

for small business owners?

AI and ChatGPT, as well as other OpenAI technologies, have the potential to greatly impact small business owners in a number of ways:

Increased efficiency: AI-powered tools can automate many repetitive and time-consuming tasks, allowing small business owners to focus on other areas of their business. This can save time and improve productivity.

Improved customer service: Chatbots powered by AI can handle customer inquiries and support, allowing small business owners to offer round-the-clock support to their customers without needing to hire additional staff.

Better decision-making: AIpowered analytics can provide

business operations, allowing them to make informed decisions based on data rather than intuition.

Increased competitiveness: By leveraging AI and other advanced technologies, small business owners can compete with larger companies and gain a competitive advantage.

Cost savings: AI can help small business owners save money on various aspects of their business, such as marketing, customer service, and inventory management.

OpenAI.com, as a leading provider of AI technologies, can provide small business owners with access to advanced AI tools and solutions that were previously only available to larger companies with substantial budgets. With more affordable

Will AI replace human jobs

AI has the potential to automate many tasks that are currently performed by humans, which may lead to some job displacement in certain industries. However, it is important to note that AI is not a magic bullet that will completely replace human workers in all areas of work.

AI is particularly effective at performing tasks that are repetitive, routine, and based on structured data. This means that jobs that involve manual data entry, simple analysis, or other repetitive tasks may be at risk of being automated by AI. However, jobs that require creativity, empathy, problem-solving, critical thinking, or social skills are less likely to be automated by AI in the near future.

Moreover, while AI may replace some jobs, it can also create new job opportunities. AI requires people to design, develop, and maintain the systems, as well as to oversee and manage the data, algorithms, and processes. Additionally, AI can create new opportunities for innovation and entrepreneurship, leading to the creation of new businesses and new jobs.

In conclusion, while AI may replace some human jobs in the short-term, it is unlikely to completely replace human workers in all areas of work. Instead, AI will transform the nature of work, create new job opportunities, and require new skills and capabilities from workers.

Can AI run a business?

AI can play a role in running a business, but it is unlikely that AI alone can run a business completely without human involvement.

AI can be used to automate many routine tasks, such as data entry, processing, and analysis, which can free up human workers to focus on more strategic and creative tasks. AI can also be used to optimize business processes, such as supply chain management, customer relationship management, and marketing, by analyzing data and providing insights that can improve decision-making.

However, there are certain aspects of running a business that require human involvement, such as leadership, strategic planning,

and decision-making. Business owners and executives need to set the direction and vision for the company, make critical decisions, and lead and motivate their employees. These tasks require emotional intelligence, social skills, and the ability to understand and navigate complex social and cultural dynamics.

Moreover, AI systems are only as good as the data and algorithms that underpin them, and they can be prone to errors and biases that can have significant consequences for the business. Therefore, human oversight and intervention are crucial to ensure that AI systems are reliable, ethical, and aligned with the business goals and values.

In conclusion, while AI can play a role in running a business, it is unlikely that AI alone can run a business completely without human involvement. Human leadership, decision-making, and oversight are still essential for the success of any business.

Can AI write articles for a business journal?

AI has the capability to generate articles for business journals, and there are already some AIpowered content creation tools available in the market. However, the quality and effectiveness of AI-generated articles may vary depending on the tool's sophistication and the level of customization required.

AI can generate articles by analyzing large amounts of data, identifying patterns and trends,

and synthesizing the information into a coherent narrative. This can be useful for generating news articles, summaries of data or reports, and other types of content that rely primarily on factual information.

However, AI may struggle with more complex writing tasks that require a deeper understanding of language, context, and tone. Business journals often require articles that are engaging, thought-provoking, and persuasive, which can be challenging for AI to achieve. Furthermore, business journals typically require articles that reflect the perspective and expertise of the author, which can be difficult for AI to replicate. Business journal articles often require a high degree of personalization and customization, which may not be possible with current AI tools.

In conclusion, while AI has the capability to generate articles for business journals, its effectiveness in doing so may be limited by its current capabilities. Business journals may still rely primarily on human writers to produce high-quality, engaging, and personalized content that reflects the perspective and expertise of the author. However, AI can still play a useful role in supporting human writers by providing data-driven insights and suggestions to enhance the quality and impact of their writing.

By Christopher Rich Regional Economist Baker, Grant, Harney, Malheur, Union, and Wallowa counties

Oregon

Employment Department

https://www.qualityinfo.org/-/don-t-sell-yourself-short-or-the-value-of-a-bachelor-s-degree-1

Don’t Sell Yourself Short, or the Value of a Bachelor’s Degree

A 2018 survey by the Pew Research Center found that nearly all adults believe a college degree is valuable. The data reveals that 61% of adults feel a college education is important while an additional 31% feel a college education is essential. Folks are split, however, on the purpose of college. Nearly half of adults feel the main goal is to teach

skills and knowledge for workplace preparation. Another 40% feel that personal and intellectual growth should be the focus instead. Some might argue that both goals are essentially the same. From a labor market perspective, the goal is somewhat irrelevant, because the value of a bachelor’s degree is revealed in the data.

The Labor Market is a Market

In general, the labor market functions like any marketplace. There are two positions: the buyer and the seller. The buyer searches for the best available product (to meet their needs) and hopes to purchase at the lowest price. In this way, the buyer maximizes value. The

seller seeks to convince the buyer that their product is best (for the buyer’s needs) and hopes to sell at the highest price. In this way, the seller maximizes profit. Since businesses sell products and people buy them, it’s common to think of the employer as the seller and the job seeker as the buyer. However, in the labor market this relationship is flipflopped. An employer wants to rent a specific skillset and searches for a job seeker who has that skillset. A job seeker wants to rent out their specific skillset and searches for an employer who wants to rent it. In other words, the employer seeks to buy a specific product and the job seeker seeks to sell a specific product. The employer is the buyer and the job seeker is the seller.

In the marketplace, buyers and sellers haggle over price and quality. Supply and demand influence the price paid as well as the quality of products available and the ease of sale. When supply is abundant and demand is limited, a buyer can pay a lower price for a higher quality product. On the other hand, when supply is limited and demand is high, a seller can charge a higher price for a lower quality product. Higher educational achievement is often used as a proxy for the quality of job seekers in a market where employers –buyers – have insufficient

information about the quality of the specific product they’re buying. Bachelor’s degree holders spend at least four years obtaining a degree. Although college entrants may be prevented from completing a degree for a variety of reasons, completion reflects motivation and an ability to focus, follow through, and finish. In the labor market, college graduates are seen as high quality products that require less time and cost to train for job specific duties. They represent a low-risk, high-value investment to employers.

When Competition is High, Degree Holders Have an Edge

U.S. Census data shows that nearly 36% of 25 to 64 year olds in Oregon held a bachelor’s degree or higher in 2021; roughly 23% held a bachelor’s degree while 13% held a graduate or professional degree. National figures were similar: 35% overall, with bachelor’s degree holders just 1.0 percentage point lower than Oregon at 22%. Along with this, close to 10% of Oregon’s working-age population held an associate’s degree and 24% had at least some college, but no degree: 9% and 20% for the U.S. metric, respectively. This means that nearly 70% of working-age adults in Oregon sought some level of higher education after high school.

62% of 2021 high school graduates went on to enroll in colleges or universities for the fall 2021 term, according to the Census Bureau’s Current Population Survey. In addition, data from the National Student Clearinghouse shows that 62% of the 2015 college cohort graduated from either a fouryear or a two-year institution by 2021. Cohort graduation rates continue to increase and are up roughly 9.0 percentage points since 2009. This and other data highlights the trend of an increasingly educated workforce.

In the United States, roughly

Bureau of Labor Statistics data shows that just over 24% of employment nationally in 2021 was in occupations that required a bachelor’s degree, up 1.7 percentage points from 2019. Meanwhile, nearly 39% of employment was in occupations where the entry-level education requirement was a high school diploma (virtually unchanged) and another 22% of employment was in occupations where the requirement was less than a high school education (down 2.1 percentage points). Oregon’s employment situation is similar. In 2021, roughly 22% of jobs required a bachelor’s degree, 36% required a high school diploma, and 26% required less than a high school diploma. This means that for 62% of jobs, employers sought workers with either a high

“SOU gave me the opportunity to grow and to change my life and to help change the lives of other people.”

ANGELICA RUPPE MS ’86

However, although the majority of jobs required a high school diploma or less, this was generally the minimum requirement. Applicants with any bachelor’s degree are highly competitive for the majority of these positions. Many occupations that require high school or less for entry can offer relatively high wages with wage growth potential and advancement opportunities. Photographers, police and sheriff’s officers, building inspectors, and many supervisor or management jobs are just a few examples. Occupations in the high-wage high school or less category generally rely more heavily on problem solving, organization, computer software, and interpersonal skills, than they do on repetitive physical tasks.

In addition, since the supply of non-skilled workers (those able to fill a non-skilled position) is the entire labor force, job seekers with a bachelor’s degree find it easier to sell their skillset across all non-degree specific occupations in the labor market. In contrast to high school graduates who potentially have the minimum skillset for 62% of Oregon jobs and non-graduates who have the skillset for 26% of jobs, holders of a bachelor’s degree potentially have the skillset for 96% of jobs. This includes jobs requiring an

associate’s degree as well as those requiring postsecondary education. Keep in mind that some jobs require specific degrees, training, certificates, or licensing, so the actual share of jobs an individual job seeker qualifies for is likely lower than just stated.

When Demand Drops, Resilience Offers Degree Holders an Edge

The unemployment rate for people 25 years or older, with a bachelor’s degree or higher, averaged 3.0% from 2012 to 2021 in the United States. For people with only a high school diploma the rate averaged 6.0% and for those without a high school diploma the rate averaged 8.5%. Oregon rates for the period were similar, though nearly 1.0 percentage point lower for those without a high school diploma: 3.3% for those with a degree, 6.2% for high school diploma, and 7.6% for no diploma. These averages were driven up by the Great Recession (2007-2009) when the unemployment rate peaked at 12.3% overall for Oregon. In 2009, the rate for bachelor’s degree holders averaged 5.9% while the rate for high school diploma was 13.1% and 18.1% for less than high school.

economic expansions and highest during recessions. The available supply increases during a recession as both degree holders and those without a degree lose jobs. Since the labor pool during this time is saturated with all education levels and overall demand for workers is low, employers can increase minimum job qualifications and pay lower prices for higher skillsets. Degree holders have an easier time retaining or regaining employment during these tough economic times. The downside is that degree holders may find themselves underemployed (in jobs that don’t require their specific degree). The upside is that the unemployment rate for bachelor’s degree holders remains relatively low.

As a share of the labor force, the available supply (those searching for work) of degree holders is lowest during

COVID-19 brought another economic shock that altered labor market conditions. The unemployment rate for bachelor’s degree holders in Oregon rose from an average of 2.2% in 2019 prior to the pandemic, to an average of 4.3% in 2020 during the pandemic. Rates for lower education levels rose more significantly. The unemployment rate for associate’s degree or some college rose from 3.5% to 8.1%, the rate for high school diploma rose from 4.0% to 8.7%, and the rate for less than high school jumped from 3.0% to 10.5%.

Bachelor’s degree holders were less likely to have their job status affected by the pandemic due in part to resilience. The largest initial employment impacts of the pandemic were in manufacturing, retail trade, education, health services, and in leisure and hospitality. Leisure and hospitality saw the largest and longest sustained impact. Other industries bounced back more quickly, aided in part by shifting to remote work where feasible. A large portion of bachelor’s degree holders work in jobs where a shift to remote work is feasible and can be done relatively quickly, whereas a large portion of workers with less than a bachelor’s degree are in jobs where a shift is less feasible, because their essential job duties require them to be on-site.

Demographic data for unemployment insurance claims in Oregon became available during the pandemic. This data also highlights the relationship between education level and unemployment. Monthly continued claims for unemployment insurance are highest among those with a high school diploma or less. From January 2019 to February 2023, those

with a high school diploma or less accounted for on average 60% of continued claims filings. Those with a bachelor’s degree or higher, and associate’s degree or some college each accounted for 20% on average. On the low side, bachelor’s degree holders accounted for 17.4% of unemployment insurance claims and on the high side accounted for 24.8% of claims during the period.

Degree Holders Choose Which Product They Sell

According to the American Community Survey, in 2021 median annual earnings in the U.S. for workers with less than a high school education were $28,085 and for workers with a high school education they were $35,019. At the same time, median annual earnings for workers with a bachelor’s

degree were $61,073. In Oregon in 2021, median annual earnings for workers with less than a high school education were $31,335, and for high school they were $36,031. Workers with a bachelor’s degree had median annual earnings of $57,419.

Not all bachelor’s degrees are equal in the labor market. For example, two degrees that potentially offer low returns on investment are history and performing arts. These degrees are very popular so competition for jobs is fierce because the supply of job seekers is high relative to the available degree specific job openings (predominately in teaching). This means that job seekers who hold these degrees must often look outside of their fields for work. When looking outside of

their fields they likely face increased competition because these degrees may lack transferable, in-demand skills.

Two of the biggest factors in the value of a degree are choice of degree and choice of where to live. The second component will likely become less important over time for workers with a degree that enables remote work. The pandemic opened the door to a large-scale shift away from a requirement that employees who can work remotely, still need to show up on-site. This trend is likely to continue. Although, if you choose to pursue a degree that generally requires essential tasks to be performed on-site, such as aerospace engineering, location

may continue to be a significant factor. Aerospace engineering has a median annual wage of $85,051 in Oregon; however, if you live in Eastern Oregon you’ll find little work in your field (predominately aerospace manufacturing). In Eastern Oregon you’re better off with a degree in teaching, nursing, or business.

To learn which occupations are in demand in Oregon, go to Qualityinfo.org/pubs and download the Oregon Occupations in Demand spreadsheet from the publications download section near the bottom of the page.

You can also use the Occupation and Wage InformationOccupation Profiles tool to learn more about an individual

occupation. This tool can be used to view current and projected job openings by location, licensing requirements, educational requirements, schools and training providers, and much more.

Degrees that offer high monetary return on investment are typically those that translate directly to a specific occupation, which has low supply of qualified workers and high demand from employers. Nursing and accounting are two examples of degrees that offer potentially high returns on investment. These degrees are directly transferable to two high-demand occupations in Oregon: registered nurse, which had a median annual salary of $103,002 in 2022; and accountant, which had a median annual salary of $78,146. One common theme among current high-wage, high-demand jobs is a relationship to STEM degrees: degrees involving science, technology, engineering, and math. Another common theme is management.

In 2014, The Hamilton Project used data from the American Community Survey to calculate expected annual and career earnings for 80 college majors. This data was later adjusted for inflation to reflect earnings in 2018 dollars, and also expanded to include 98

college majors. Their interactive graphs allow comparison between majors as well as associate’s degree; some college, no degree; high school diploma; and no diploma. Career earnings were $1.46 million (in 2018 dollars) for bachelor’s degree holders in the 50th percentile, $0.77 million for high school graduates, and $0.59 million for non-graduates.

Another helpful data source is the U.S. Census Bureau’s PostSecondary Employment Outcomes (PSEO) website. The “PSEO data provide earnings and employment outcomes for college and university graduates

by degree level, degree major, and post-secondary institution.” View the U.S. map to choose a state and access the data tool. Because the tool is relatively new, not all states or institutions are available. Oregon data is available though and you can use the tool to compare earnings outcomes by major and institution, and university as well as community college. This link shows an example comparing two degrees from Oregon State University.

The Value is in Your Hands

Understanding the labor market is vital to understanding the

value of a bachelor’s degree. When the job seeker views their degree as a product they sell in the marketplace, college becomes a manufacturing process used to make a better product.

Compensation, industry, work environment, employment opportunities, and advancement potential are all related to the quality of and demand for the product sold by the job seeker.

Due to labor market demand trends, some college majors offer more value than others. STEM degrees are in high demand and should continue to be in high demand as employers rely more on technology. Oversaturated degree fields find increased competition in degree specific occupations. However, bachelor’s degree holders in general are more competitive across all occupations. Adults may be divided on the purpose of college, but the value of a bachelor’s degree remains high.

By Erik Knoder Regional Economist Clatsop, Columbia, Lincoln, and Tillamook counties Oregon Employment Department

https://www.qualityinfo.org/-/oregon-s-commercial-fishing-in-2022

Oregon’s Commercial Fishing in 2022

Oregon’s commercial fishing industry revenues dropped 41% to $231 million in 2022, mostly due to a delayed Dungeness crab harvest. It was the worst crab year since 2015. Total commercial fishing harvests averaged about $192 million (2022 dollars) over the

previous five years. But after a bumper year in 2021, the 2022-2023 Dungeness crab season failed to start at all in December 2022. Since most crab are landed early in the season, this meant that the 2022 calendar year logged an unusually small harvest. A

smaller pink shrimp harvest also contributed to the decline in 2022. Overall the revenue from fishing fell by $92.3 million in 2022, and the volume of harvests decreased by 31 million pounds.

Individual fisheries

Crab harvests in 2022 fell 80% to 4.9 million pounds, the worst harvest since 2.3 million pounds were landed in 2015. The crab season in Oregon didn’t fully open until February 1, 2023. Higher prices helped offset some of the revenue drop; the average price over all of 2022 was $6.38 per pound. The crab harvest was worth $31 million in 2022, about 74% less than the year before. Dungeness crab is usually Oregon’s most valuable fishery, and it barely managed to retain that status in 2022.

decreased 20% to $18.8 million. This was just a little below the average of recent years. Oregon pink shrimp was certified as a sustainable fishery by the Marine Stewardship Council in 2007 and reassessed as sustainable in 2011.

increased 11% to $2.29 per pound. Accordingly, the total value landed rose by 117% in 2022 to $14.3 million. This was the highest level since 2013. Albacore has become an important fishery in recent years, especially for smaller boats that depended on salmon.

Salmon landings rose 21% in 2022, to nearly 2.2 million pounds. This was more than the past few years but still well below the average of the 2000s and 2010s. The average price dipped only slightly to $3.55 per pound. As a result, the total landed value rose 17% to $7.7 million. This made 2022 better than the previous five years, but the commercial salmon fishery faces significant restrictions and possible closure in 2023.

The pink shrimp harvest was 41 million pounds in 2022, a decrease of 12% from 2021, and close to the average of recent years. Unfortunately, shrimp prices fell slightly from 50 cents to 46 cents per pound in 2022. The total value landed

The amount of whiting landed fell for the third year in a row, dropping 7% in 2022 to 170 million pounds. Whiting accounted for 59% by weight of all wild seafood landed in Oregon, but it has a low value. The price did increase by two cents to 11 cents per pound in 2022, so the total landed value for this fishery rose 8% to $18.9 million. Much of Oregon’s whiting is made into surimi for use in making artificial crab meat.

The value of groundfish landed increased 34% in 2022 to $30.2 million. The landed value had been dropping for a few years so 2021 and 2022 represented a small recovery. In 2022 the fishery was finally above its average of the 2010s. The amount landed increased by 11% to 50 million pounds, and the average price rose 10 cents per pound to 60 cents.

The albacore tuna harvest rose 95% in 2022 after a significant slump in 2021. The harvest returned a level that was typical of most recent years. Fortunately, the price also

Smaller fisheries also had some changes. The razor clam harvests jumped nearly tenfold to $1.2 million, the highest value since at least 1988. The harvest of Pacific mackerel increased from nearly nothing to about $67,000. This fishery fluctuates dramatically. The harvest of another fluctuating fishery, Eulachon smelt, nearly tripled in 2022 to $33,000. The market squid harvest dropped 26% to $3.4 million. The squid fishery grew from nothing in 2017 to $6 million in 2020. This is the second year of decline for this emerging fishery. Finally, a small blue marlin was landed in 2022. They are typically found in tropical and subtropical waters.

Employment

There were an estimated 1,227 commercial fishers (excluding tribal fishing) in Oregon on an annual average basis in 2022. This was the same as the previous year, and quite similar to the 1,199 commercial fishers estimated in 2020. The delay in the 2022-2023 crab season

probably helped suppress employment. It had been about 100 to 200 higher before the COVID-19 pandemic.

Estimating employment in fishing is more difficult than measuring the harvests. Legislation in 1999 allowed most fishers to be exempt from unemployment insurance

coverage – the primary source of employment data. The Oregon Employment Department now estimates the number of fishers based on a combination of survey data and the number commercial fish landings made in Oregon. This method was new for 2014 and resulted in a lower employment estimate than before. Oregon vessels or crews making landings outside of Oregon are not included in these estimates of employment in Oregon.

The estimated number of fishers in 2022 varied from a high of 1,567 in March to a low of 391 in December. Fishing employment often peaks in the summer, but the past couple years have shown a subdued summer season and a peak in the spring. Five coastal counties – Clatsop, Coos, Curry, Lincoln, and Tillamook – had 96% of the total employment, based on where landings occur. Perhaps even more surprising is that non-coastal Jefferson County had any commercial fishing employment. These jobs are sometimes based on crayfish harvests.

The most important fisheries for direct employment are crab, salmon, and pink shrimp. The estimates of employment by species represent the

minimum number of people in that fishery on an annual basis. Landings are counted by only the most valuable species landed that trip. Oregon’s largest fishery by volume, Pacific whiting, was the 12th largest by direct employment. But whiting is very important for the processing industry and its employment. Commercial fishers harvested about 100 different species in 2022.

Revenue

The number of fishing vessels has certainly declined from historic highs. It has become somewhat more stable since the late 1990s, but still fluctuates by a couple hundred. The past six years have been a period of declining numbers of vessels. Fishing began generating more revenue per boat after the turn of the century, albeit with plenty of fluctuations. There were 861 vessels with at

least one landing in 2022, down from 882 in 2021. They averaged about $152,000 each in landed value in Oregon in 2022, down sharply by 40% from the previous year. Each vessel supported about 1.4 workers on an annual average basis; many vessels have landings only part of the year.

In addition to direct employment, commercial fishing provides the resource for seafood processors. Complete data on processors for 2022 are not available yet, but employment through the third quarter of 2022 averaged about the same as 2021. There

were 1,086 jobs in the industry in 2021. Records show that there were 34 seafood processors in Oregon that had employees in 2021; it looks like Oregon added one more processor in 2022. Some processors also use temporary help firms to round out their staffing, but these employees are counted in the business services industry. The processing industry paid more than $49 million in wages in 2021, which clearly shows the benefit of adding value to raw natural products.

By David Cooke Current Employment Statistics Coordinator Oregon Employment Department

https://www.qualityinfo.org/-/oregon-hourly-earnings-zoom-higher

Oregon Hourly Earnings Zoom Higher

Earnings in Oregon increased sharply over the past year, surpassing the high rate of inflation. Total private average hourly earnings increased by 9.1% between February 2022 and February 2023. This growth rate was much higher than the comparable national

growth in private earnings of 4.6% in that same 12-month period, and faster than the U.S. Consumer Price Index for All Urban Consumers (U.S. CPI-U) which shot up by 6.2% during that time.

The accompanying chart

shows the percent growth in average hourly earnings for the major private-sector industries in Oregon. All of these industries saw rapid hourly earnings gains and all but one shot upward by between 6% and 13%. The slowest growth was still heady territory, as

hourly earnings in trade, transportation, and utilities rose by 4.4%.

The factors causing these rapid gains in hourly earnings is beyond the scope of this article. Suffice it to say that wages have spiked faster than we have been used to seeing over the past couple of decades.

Looking back over about 10 years shows that private-sector average hourly earnings in Oregon rose from a little more than $22 per hour in 2013 to about $34 per hour in early 2023. Meanwhile, at the national level, hourly earnings rose from about $24 to about

$33 in that time. So, Oregon started out in 2013 below the U.S., but recently passed the U.S. average and has continued to increase, according to this metric that is based on the monthly survey of businesses. If wage increases in the U.S. had matched the rate of inflation throughout this period, wages would have only risen to about $31 per hour by early this year. This means that overall inflation was below the rate of wage gains between the starting point of 2013 and the end point in 2022. However, this pattern wasn’t consistent throughout the 10year period. A careful study of

the chart shows that consumer price inflation was more rapid than U.S. wage growth during mid-2021 through mid-2022, when consumer prices spiked dramatically. Also, a more localized CPI-U figure would be helpful here to address the recent large gains in Oregon average earnings and how they compare with local inflation, but the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) does not produce state-level CPI figures.

These numbers come from the monthly Current Employment Statistics program, a federalstate cooperative program in which data are produced by the BLS in cooperation with the Oregon Employment Department. The monthly estimates are based on a sample of businesses that report total pay and total hours for their payroll employees. For Oregon’s February sample data, 792 employers, totaling $189 million of weekly payroll, provided data as a part of the matched sample.

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By Press Release

https://www.peoplesbank.bank/about/important-message-to-our-customers

To the Valued Customers of People’s Bank of Commerce,

Given the events that have occurred in the banking industry over the past few days, your team at People’s Bank of Commerce wanted to reach out and share with you that our bank remains well capitalized and well positioned to continue to serve our customers and our communities. We were chartered over 25 years ago and during that time we’ve weathered several economic cycles.

As of December 31st, the company’s tangible capital was 8.1.%. Tangible capital is a ratio that compares total capital less goodwill and AOCI (investment gains and losses). Recent bank failures have occurred at banks with negative tangible capital. People’s Bank remains well capitalized, above regulatory requirements to be considered well capitalized. Furthermore, we do not have any held-to-maturity investments with undisclosed losses.

The board and senior management own over 47% of our bank stock - we have a strong, vested interest in the success and security of People’s Bank.

As a community bank, we take pride in our relationship-based business model focused on building long-term trust with our customers. We live in your community and your success is our success.

✓ 100% of our deposits are from local deposit customers in the communities we serve.

Peoples Bank

customers following the collapse of Silicon Valley Bank

✓ Almost half of the bank’s deposits are in non-interest-bearing small business and personal deposits.

✓ About 70% of our deposits are at work in our communities as loans to local businesses. These loan customers are also a notable portion of our deposit base which evidences our relationship-based business model.

✓ Our credit portfolio is well diversified and remains strong.

The Federal Deposit Insurance Corporation (FDIC) has guaranteed all deposits at the two large regional banks that failed recently, which was good for their customers and for the banking industry as a whole. For those of you who have questions about FDIC insurance coverage, feel free to reach out to any one of the officers listed below.

The following links may also be helpful:

• Understanding Deposit Insurance.

• FDIC Deposit Insurance FAQs.

• FDIC Calculators.

Finally, as a community bank customer, you have access to our experienced team, and we stand ready to always assist with any of your questions or concerns.

Ken Trautman, CEO 541-774-7654

Julia Beattie, President 541-608-8920

Lindsey Trautman, Chief Financial Officer 541-774-7665

Bill Whalen, Chief Credit Officer 541-608-8921

Joan Reukauf, Chief Operating Officer 541-774-7656

Steve Erb, Chief Strategy Officer 541-608-8926

Hey Bing! - What happened to Silicon Valley Bank?

Silicon Valley Bank was a regional lender that served the tech industry for 40 years. It collapsed in March 2023, marking the largest bank failure since the 2008 financial crisis.

The bank had grown rapidly during the pandemic-era tech boom, but made risky investments in long-term Treasury and mortgage bonds that lost value due to rising interest rates.

When the bank announced a $1.8 billion loss on the sale of securities, investors and depositors panicked and withdrew their funds, triggering a bank run.

The Federal Deposit Insurance Corporation (FDIC) took over the bank to protect depositors and prevent further damage to the financial system.

Welding – Beyond the Sparks and the Arc EMPLOYMENT

By Lynn Wallis Workforce Analyst Clackamas County Oregon Employment Department https://www.qualityinfo.org/-/welding-beyond-the-sparks-and-the-arc-2

What do skyscrapers, automobiles, rockets, and ships have in common? In all likelihood, they have all been welded. According to the American Welding Society, an estimated 50% of the United States gross national product is

affected by welding. Anything made of metal, no matter how big or small, can be welded. Skyscrapers, bridges, and highways would be impossible to build without welding, as would oil and natural-gas pipelines, giant wind turbines, and solar panels.

The Evolution of Welding

According to the National Center for Welding Education and Training, the birth of welding can be traced back to the Bronze Age more than 5,000 years ago when a clever individual came up with an

idea to heat a strong metal like bronze until it melted, then pound it with a hammer to make an object. Moving forward a few thousand years, people in Egypt and the Eastern Mediterranean began using welded alloys to make weapons and tools around 1400 B.C. This was the beginning of the Iron Age of civilization.

The art of blacksmithing, or forge welding, was developed during the Middle Ages from the 5th to the 15th century, according to the Welding Leader. Blacksmithing produced items made of iron that were welded together by

applying heat and hammering. Then with the onset of the industrial revolution in the late 1800s, many pieces fell in place to make welding a driving force in manufacturing, including the invention of arc welding as we know it today.

In the last 100 years, welding processes have proven vital to the economical fabrication of almost all metal items. World Wars I and II both depended on quick and reliable methods for joining metals for implements of warfare. Over the last 50 years, welding and material joining has become

more automated, productive, and safer. New processes – such as electron beam welding, friction welding, plasma arc welding, friction stir welding, explosion welding, and laser beam welding – have increased the range of materials and components that can be welded. In addition, industrial robots and computercontrolled automated welding are used today to improve both quality and productivity.

What Do Welders, Cutters, Solderers, and Brazers Do?

Basically, welders and solderers

use heat to permanently join pieces of metal together. Welding is the most common method used to join metal parts in large structures and equipment due to its strength. Soldering and brazing are similar processes to welding but are used on electronic and other small equipment and use lower temperatures to melt the filler metal.

Most welding done today falls into one of two categories: arc welding (the use of an electrical arc to melt the work materials) and torch welding (the use of an oxyacetylene torch to melt the working material and welding rod). There are more than 100 welding processes that a welder can use and most involve a skilled worker using a high-heat torch, filler material that is usually in wire or stick form, and pressure to permanently bond metal pieces.

Cutters use heat to cut and trim metal objects to a specific size. While the work of cutters is related to that of welders and solderers, cutters use heat from an electric arc or gases to cut and trim metal objects rather than joining them.

Workers in these occupations may work indoors or outdoors –sometimes in bad weather or in a confined area – and occasionally work at high elevations. Safety procedures are important for workers to follow due to frequent exposure to hazardous conditions that include extremely hot materials and intense light. To avoid injuries, safety procedures should be followed such as safety

shoes, goggles, masks with protective lenses, and other equipment to prevent burns and eye injuries.

The Employment Department’s Occupation Profiles tool provides additional information on this occupation including current employment openings, regional wage information, training programs, and other Oregon-specific information.

Numerous Career Paths and No College Degree Required

Welding is one of the few career choices that seem to be in high demand at all times. This is because welders are needed in almost every industry. Oregon hourly wages in 2022 vary from $18.40 for entry-level positions to $31.57 for experienced welders at the high end of the pay scale. According to GoWelding, the salaries of welders may vary a lot depending on how skilled the worker is and if he/she is willing to travel and/or work in hazardous conditions. Far ranging opportunities and often higher wages exist for welders who are willing to travel. Examples of traveling jobs include work in shipbuilding and maintenance, military support, pipeline installation, and under water welding.

No statewide license is required for welding, cutting, soldering, and brazing workers in Oregon although welders who work on particular projects such as bridges, boilers, and other more

specialized jobs do have special licensing and certification requirements. These applicants must pass an exam and demonstrate their skill and knowledge of welding. Welding certification standards are defined by the American Society of Mechanical Engineers and the American Welding Society.

Training for this occupation varies broadly from a few weeks of schooling or on-the-job training to several years of combined schooling and on-the-job training. Most welders, according to the Oregon Career Information System, learn their job skills through a formal training program in either high school, professionaltechnical schools, or twoyear colleges. Some branches of the military also train people to be welders and metal workers.

The latest Instructional Program Report on the Occupation Profiles tool shows that 366 people completed welding technology training in Oregon’s academic institutions during the 2020-2021 academic year. Training typically involves instruction in arc welding, resistance welding, brazing and soldering, cutting, high beam welding and cutting, solid state welding, ferrous and non-ferrous materials, oxidation-reduction reactions, welding metallurgy, and other welding processes and standards.

The majority of weldingtechnology program completers, 263 (71.9%), earned a certificate

from one of the 14 Oregon community colleges that offered programs in 2021. Another 72 completers (19.7%) earned an associate’s degree and one student served an apprenticeship. A number of students (30) received their welding training in one of the four Job Corps training programs in Oregon. To qualify for Job Corps training, participants must be 16 to 24 years of age, meet low-income criteria, and face one or more barriers to employment.

Industries of Employment

Oregon’s welders and solderers work in many types of industries, but the majority of workers (71%) were concentrated in manufacturing industries in 2021.Three manufacturing sub-

sectors – transportation equipment, machinery, and fabricated metals – provided the lion’s share of jobs in manufacturing.

Welders and solderers work in a very large occupation. In 2021, there were 5,375 welders in Oregon. Occupational Projections anticipate employment growth of 15.6% through year 2031, higher than the statewide average of 12.8% for all occupations. There are expected to be 631 annual openings in the state, which include both growth and replacement job openings.

Welding Into the Future

According to careersinwelding.com, science and technology continue to evolve and this creates new opportunities for metal and welding workers. Examples include giant telescopes, robots, wind turbines, rocket welding technologies, and custom vehicles.

Because the basic skills of welding are the same across all industries, it is relatively easy for these workers to use their transferable skills when moving from one industry to another. Expected growth in the defense industry, new technology, and future demand for repair of the nation’s aging infrastructure will continue to contribute to the high demand for workers in this occupation.

By Press Release https://www.oregon.gov/newsroom/pages/NewsDetail.aspx?newsid=87850

Oregon State Treasury Completes Nearly $1 Billion Bond Sale, Offers State Residents Opportunity To Invest In Oregon

Salem, OR—The Oregon State Treasury recently completed a $990 million General Obligation (GO) bond sale through its Buy Oregon Bonds Program. Proceeds from the sale will fund projects for affordable housing, facility improvements at K-12 schools and state universities, and emergency readiness. Of the nearly $1 billion in bond offerings, over $109 million was purchased by Oregon retail investors.

the normal $5,000 denominations. The goal of the reduced offering was to attract a wider range of local investors and provide Oregonians equitable opportunities for investing in the state. The $109 million in bond purchases by Oregon retail investors was the largest in recent history for bond sales.

Allocation of bond proceeds by category for expected projects include:

-K-12 schools, community colleges, and state universities: $321.2 million

-Affordable housing: $175 million

-State parks and other state facilities: $198.2 million

“Treasury is proud to coordinate the sale of state bonds to help improve our schools and other state facilities, as well as funding for the development of affordable housing. This bond sale offered Oregonians an exciting, and equitable, opportunity to invest in our state. I am thrilled with the level of interest we saw from local investors,” said Oregon State Treasurer Tobias Read.

The sale included $809 million in tax-exempt bonds that will fund 13 projects for education, state, and local government facilities including seismic upgrades and other safety improvements. Another $184.5 million of taxable bonds, of which $176 million are Sustainability Bonds, will support affordable housing across the state as well as capital improvement projects for state universities. This was the seventh issuance of Sustainability Bonds by the Oregon State Treasury with proceeds dedicated to affordable housing.

-Judicial and public safety: $224.5 million

-Emergency management: $5 million

For more information about the Buy Oregon Bonds Program visit: www.oregon.gov/treasury/ oregon-bonds/buy-oregon-bo...

About The Oregon State Treasury

Through the Buy Oregon Bonds Program, Oregonians were offered an opportunity to invest in Oregon through the bond sales $1,000 denomination offering, lower than

Treasury’s Debt Management team wrapped up the GO bond sale on March 15, 2023, after securing favorable financing despite a market environment in flux. As a result, the State of Oregon is estimated to get a $40 million boost to the general fund thanks to savings in interest costs over time.

The Oregon State Treasury improves the financial well-being of all Oregonians. We provide lowcost banking, debt management, and investment programs for governments and empower Oregonians to invest in themselves and their loved ones through the Oregon College Savings Plan, Oregon ABLE Savings Plan, and OregonSaves. Treasury also facilitates the state’s Unclaimed Property Program.

Funds from offering will help support projects for schools and universities, affordable housing, public safety, and more

By Marshall Doak, SOU SBDC Director

Some Human Issues with Scaling Your Business

During the lifecycle of small businesses, the inevitable question is arrived at and asked at one time or another. This question is: As I need to grow my

business to survive or to take advantage of growth opportunities, how am I going to find the people I need to have working with me?

This question illustrates the dynamic that your business has hit a ceiling for revenue growth and the current revenues are not

Photo by Marvin Meyer on Unsplash

sufficient to meet your goals or needs.

There are four actions you can take to choose from.

Do nothing. This conscious choice allows you to maintain your operations at the level it is until a disruptive event occurs to change that static dynamic. Any growth will come from increased margins and the extra effort you put into your company.

Hire a third-party service to provide employees to your company. This option carries benefits and liabilities to the business as do the other options. You can control your costs and place the burden of recruiting and managing the related employment paperwork to the third-party who is providing the service. For this convenience, you pay a premium to the service to cover their costs and profits. You also provide supervision and training for the third-party contractor’s employees.

Hire your own employees. This entails obtaining the proper registrations, providing workers’ compensation insurance, having supervision and training programs in place, and either performing payroll services in-house or outsourcing those duties. Additional management tasks are added through this option.

Outsource the duties to contractors. This is also known as hiring 1099 contractors, named after the Federal Tax Form 1099 which is issued to each contractor you have associated with your

company who earns $600 or more in a calendar year. With contractors, the burden of doing payroll functions is eliminated in favor of paying invoices submitted for the services rendered. You are still required to supervise and train the contractors.

In all cases, your customers will expect you to maintain the product quality and customer service standards they are used to receiving from you.

If option number III is chosen, it will be important for you to become familiar with the rules regarding hiring employees in Oregon. You will need to register as an employer with the Department of Revenue through obtaining a Business Identification number (BIN). Allow for a few weeks processing time in advance of your first payroll to make sure you re registered correctly with the State.

If option IV is chosen, you will need to become intimately familiar with the rules regarding the hiring of contractors who perform tasks normally associated with employees. These rules are developed and enforced through the Internal Revenue Service (IRS) and the Oregon Bureau of Labor and Industries (BOLI). Each agency provides information regarding the preponderance of evidence that indicate whether a person working in your company qualifies as a contractor or is in actuality, an employee. Claiming a person as a contractor in order to avoid the administrative burdens and costs associated with hiring employees is a very common area where

businesses are cited and fined for illegal or improper practices.

From the IRS website: “In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.”

From the BOLI website: “A worker’s status as either an employee or independent contractor is determined by the reality of the work relationship, not a label or title given to a worker.”

So, the nature of the relationship between company and individual is the determining factor regarding whether the person is a contractor or employee. A thorough understanding of what this means to you in your situation will save a huge amount of time, money, legal problems, energy, and stress avoidance in the future through having your help classified correctly. It is worth investigating and executing the best solution for your situation in advance of need.

Marshall Doak

Marshall Doak is the Director of the Southern Oregon University Small Business Development Center and a huge supporter of innovation and the community that forms around innovation in the economy. In private practice, he works with businesses that plan to transition to new ownership within the next five years, assisting them to build value that can be converted to retirement income when the business sells. He can be reached through: mdoak06@gmail.com or 541-646-4126.

by Greg Henderson

50 years before Columbus discovered America - at an incredible altitude of nearly 8,000 feet - Machu Picchu was constructed by unlicensed Peruvians. The stone construction project, with several walls, still stands built without concrete. Over 500 years ago!

The concrete blocks that form a privacy wall across my backyard was constructed 25 years ago; really, with concrete. It’s about to fall over.

Concrete walls are utilitarian in most cases. They have a purpose above stylish aesthetics. Mine, a privacy wall, is 70 feet long. At five feet high it has been in place for 20 years. It’s moving. I have an important job ahead of me to stop the movement before it falls over onto my neighbor’s driveway. There are four or five options that have crossed my mind, all require heavy work and two are fairly costly. Better construction process in the beginning would have made today’s repairs unnecessary. But lo, we live in a different era.

The poor construction of my wall is not alone. Everywhere shoddy workmanship has become endemic. With speed and low costs holding rank over quality we have allowed these things to evolve. A good amount of the blame lies with us, the consumer.

There are economic realities to the mediocrity of our consumer choices. “The best house, the best car, the best appliance, the best food, costs more than I can afford. I must buy the least expensive item.” If you’ve made

Pyramids, Concrete Walls, and Excellence

this comment, out loud or to yourself, you are not alone.

The thought processes of consumers will often run counter to the value/ cost equation. As product buyers we want to get the most value for the least cost. It might sound like a good personal cash flow plan, but the reality includes the actual cost of production by the manufacturers of the items being purchased. Higher value products normally have a higher cost of production. That means they will be more expensive than excellent products will be. That includes construction of concrete walls.

If my leaning wall of concrete blocks was built by more skilled laborers being paid higher wages and supervised by a more experienced leader with higher skills and more understanding of design requirements – engineering, etc. – the construction of the wall would probably have been more than it is. That long sentence essentially says –you get what you pay for and accept the consequences.

The motivation of Inca builders of Mach Picchu five hundred years ago was likely driven by other than excellent wages. Leadership and human resource regulations were without the enforcement of today. Harsh conditions and physical threats might have been present as they were in other parts of the world in ancient times as the stories of pyramid building in Egypt have reported.

Consumers are the real drivers of quality. If a product is not equal to the value customers expect of the item, it will not be sold. Businesses cannot exist unless the products meet customer expectations. When customers accept low quality products or services the message they send is that low quality products or poor service is acceptable. The quality of final purchases may range from “barely acceptable” to “highly superior” with a corresponding range in cost to consumers. That should be accepted.

As the quality and price go up the available cash of consumers must also rise. The dynamics of these details spread across the spectrums of economy, society, personal motivations, psychology, resource availability, and urgency of need. My wall is falling down because something in this mix was less than the buyer should have expected.

No wonder the answer to the question of why is so often, “That’s just the way it is.” We accept those things we don’t understand, then make a temporary fix when sustainability might have been our goal, pretending our purchase was intentional. Avoiding mediocrity is an individual responsibility. Each of us should resolve to elevate the quality of what we do until it becomes our habit.

Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a six year U.S. Air Force veteran. Contact him at ghenderson703@gmail.com

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