Southern Oregon Business Journal - January 2022 by Southern Oregon Business Journal

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The Journal for Business in Southern Oregon OREGON’S FORESTRY AND LOGGING INDUSTRY: FROM PLANTING TO HARVEST

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WHAT CAN WE LEARN FROM MCMENAMINS DATA BREACH?

January 2022 HUNTER COMMUNICATIONS ACQUIRES ONLINENW AND XS MEDIA

The Southern Oregon Business Journal extends sincere thanks to the following companies for sponsoring the journal. Without their support we could not produce a FREE resource for Southern Oregon businesses.

A Few Words from Jim

WOW! It’s 2022 It’s the crazy issue. I’m always eager and excited to start a new year. I’m excited about doing a lot of new things in the journal this year. I’m already hard at work on next months issue and it’s going to be epic. I’m also considering retiring the virtual print version and getting away from a monthly format and just publish articles every day. The Southern Oregon Business Journal is a ONE man band. Yes other people contribute articles but I put it all together and have to layout a print version, even though it’s a non print version since the pandemic shut down. I’d rather just post stories as they come in. But I haven’t gured out yet how to keep my sponsors happy and move completely away from the “print” layout version. Please let me know what you think. This months issue has a cool interview feature story on my friends and neighbors new business that started as a “covid project” and has grown into a very cool tool for students. Check out “Majoring In” Helps Students Find College Programs In Gaming, Esports, Beer And Wine on page 16. Speaking of friends and neighbors, Facebook popped up a memory of a post I wrote back in 2017 today and I re-read it and decided to share with you all here. I hope it inspires you as much as it has my friends and myself. Check out It’s What Neighbors Do on page 34. Did you hear that McMenamins had a data breach? Ransomeware was installed by hackers and they successfully caused harm to the company by taking out the reservation system, point of sale system for the restaurants and the company email. I’m sharing the story they posted on their site in hopes that each of us entrepreneurs learn from this experience. It is not “if” hackers will cause harm to your business, it’s “when”. What Can Learn From Mcmenamins Data Breach? Ransomeware And Its Impact on page 29.

PLEASE SUPPORT OUR SPONSORS AMERITITLE - PAGE 4 BETTER TOGETHER - PEOPLE’S BANK OF COMMERCE AND WILLAMETTE COMMUNITY BANK PAGE 19 MANAGED HOME NET - PAGE 25 SOU - LEADERSHIP BEGINS HERE SOUTHERN OREGON UNIVERSITY PAGE 27 UMPQUA BROADBAND - PAGE 31

My son is at Oregon State University getting a bachelors degree in Forestry so when I saw the post put out by the Oregon Employment Department Oregon’s Forestry And Logging Industry: From Planting To Harvest, I got very excited about the industry and I republished it on page 10. Hunter just keeps growing. Their press release Hunter Communications Acquires Onlinenw and Xs Media on page 20 showcases how the Medford based Fiber Internet service is growing into other parts of the state. Check it out on page 20. Finally check out page 8 for the Umpqua Bank 2022 Economic Outlook For Businesses Shows Growth Opportunities Ahead, But Adaptability Remains Critical For Success report. What are your plans for 2022? Let me know. I live vicariously though you.

Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.

Happy New Year.

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Jim Jim@SouthernOregonBusiness.com

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5350 HWY 66, Ashland, Oregon 97520

www.SouthernOregonBusiness.com

A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

JANUARY 2022 - TABLE OF CONTENTS

PEOPLE - AMERITITLE PROMOTES ERIC TEMPLETON TO SENIOR VICE PRESIDENT - PAGE 5 OREGON PUBLIC COMPANIES - LITHIA & DRIVEWAY (LAD) EXCEEDS DECEMBER MONTHLY DRIVEWAY TRANSACTION VOLUME TARGET BY 32% - PAGE 6 OREGON PUBLIC COMPANIES - CELEBRATED TECH LEADER JOINS DUTCH BROS COFFEE’S BOARD OF DIRECTORS- PAGE 7 ECONOMY - UMPQUA BANK 2022 ECONOMIC OUTLOOK FOR BUSINESSES SHOWS GROWTH OPPORTUNITIES AHEAD, BUT ADAPTABILITY REMAINS CRITICAL FOR SUCCESS - PAGE 8 FORESTRY & LOGGING - OREGON’S FORESTRY AND LOGGING INDUSTRY: FROM PLANTING TO HARVEST - PAGE 10 SMALL BUSINESS DEVELOPMENT CENTER - CREATING VALUE - PAGE 14

“MAJORING IN” HELPS STUDENTS FIND COLLEGE PROGRAMS IN GAMING, ESPORTS, BEER AND WINE - PAGE 16 FEATURED -

BROADBAND - HUNTER COMMUNICATIONS ACQUIRES ONLINENW AND XS MEDIA - PAGE 20 EMPLOYMENT - PER CAPITA PERSONAL INCOME IN OREGON’S COUNTIES - PAGE 22 EDUCATION - SOU RECEIVES ODVA CAMPUS VETERAN GRANT AWARD - PAGE 26 AGRICULTURE - CANNABIS FERTILIZER & SOIL MANUFACTURER DAKINE 420 LANDS NATIONAL & INTERNATIONAL DISTRIBUTION PARTNERS - PAGE 28 TECHNOLOGY - WHAT CAN WE LEARN FROM MCMENAMINS DATA BREACH?RANSOMEWARE AND ITS IMPACT. PAGE 29 TWO STEPS FROM FAILURE - PAGE 30

THE LAST WORD - IT’S WHAT NEIGHBORS DO - PAGE 34

SBA - BUSINESS TRENDS TO KEEP TOP OF MIND IN 2022 - BACK COVER

PEOPLE By AmeriTitle Blog Post https://www.amerititle.com/2022/01/amerititle-promotes-eric-templeton-tosenior-vice-president/

Eric Templeton, Area Manager for AmeriTitle, has been promoted to Senior Vice President. Eric’s area of responsibility has expanded to include AmeriTitle’s Central Oregon counties in addition to his current role of managing operations in the Mid-Willamette Valley and a portion of Southern Oregon. Eric’s territory now includes 15 branches serving 11 counties. Eric joined AmeriTitle in 2000 as the Corporate Controller at the company’s headquarters in Bend, OR. In 2005, he moved to Salem, OR as General Manager for AmeriTitle’s Willamette Valley operation and then became Vice President in 2010 with the addition of Douglas County. This latest promotion expands Eric’s area of responsibility to Central Oregon with operations in Deschutes, Crook, Jefferson,

AMERITITLE PROMOTES ERIC TEMPLETON TO SENIOR VICE PRESIDENT

and Harney Counties. With strong technology skills and a background in accounting, Eric has been instrumental in developing processes and tools to assist AmeriTitle’s corporate reporting. He graduated from Oregon State University with a degree in Business Administration and an emphasis in Financial Management. Eric’s philosophy is, “if you get the company culture right, the rest will take care of itself. You will inevitably have happy employees providing great service to satis ed and loyal customers.” Eric is looking forward to getting back to Central Oregon and reconnecting with former coworkers and friends. He is also happy for the opportunity to see his family more often with his parents living in Prineville and his brother in Powell Butte.

Outside of work, Eric enjoys spending time with his large family. He and his wife, Erika, have seven children and two grandsons. They spend their free time playing golf and traveling with friends, family, or occasionally on their own. AmeriTitle began as a single of ce in Klamath Falls, Oregon in 1985 – today, AmeriTitle has branches throughout Oregon, Washington, and Idaho and joined the Futura Family of Companies in 2012. The Futura Family of companies includes AmeriTitle, LLC, Alliance Title & Escrow, LLC, Kittitas Title & Escrow and Paci c Alliance Title. AmeriTitle has been recognized as a trusted resource for title and escrow services

Southern Oregon Business Journal January 2022 | 5

OREGON PUBLIC COMPANIES

Lithia & Driveway (LAD) Exceeds December Monthly Driveway Transaction Volume Target by 32%

By News Release https://www.lithiainvestorrelations.com/pressrelease.html

Driveway, LAD’s reimagined way for consumers to shop, nance, and sell vehicles fully online, reported 1,650 transactions in the month of December, signi cantly exceeding the previously announced 1,250 transactions for December or 15,000 annual run-rate goal.

"Our continued investment in innovation, such as Driveway and Driveway Finance, and building a consumer-centric omni-channel experience is key to generating greater than $1 of EPS for every billion dollars in revenue." About Lithia & Driveway (LAD): LAD is a growth company powered by people and innovation with a plan to pro tably consolidate the largest retail sector in North America. As the leading provider of personal transportation solutions in North America, LAD is among the fastest-growing companies in the Fortune 500 and is currently ranked #231 (#2 on 10-Year EPS Growth, #3 on 10-Year TSR and #12 on 10-year Revenue growth in 2021). By providing a wide array of products and services for the entire vehicle ownership lifecycle through various consumer channels,

With 96% of Driveway customers new to LAD, these transactions represent an estimated annual incremental revenue contribution of nearly $0.5 billion dollars. This incremental revenue combined with the Lithia store ecommerce business represents approximately $5 billion in revenue on an annualized basis. "We are excited with Driveway's outperformance of the December milestone," said Bryan DeBoer, President and CEO of Lithia & Driveway.

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LAD builds magnetic brand loyalty. Operational excellence is achieved by focusing the business on convenient and transparent consumer experiences supported by proprietary data science to improve market share, consumer loyalty and pro tability. LAD's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. LAD continues to lead the industry's consolidation, and this combined with Driveway's e-commerce in-home experiences and Driveway Finance Corporation further accelerates the massive regenerating capital engine. Together, these endeavors create a unique and compelling highgrowth strategy that provides transportation solutions wherever, whenever, and however consumers desire.

OREGON PUBLIC COMPANIES By News Release https://www.businesswire.com/news/home/20211215005054/en/CelebratedTech-Leader-Joins-Dutch-Bros-Coffee%E2%80%99s-Board-of-Directors

Celebrated Tech Leader Joins Dutch Bros Coffee’s Board of Directors

“I’ve had the privilege to see up close how the interaction between modern technology, digital capabilities and business operations can grow and enhance an organization to create differentiated experiences with their customers and partners” Stephen Gillett (Photo: Business Wire)

Dutch Bros Inc. (“Dutch Bros Coffee”), a west coast-based drive-thru beverage company focused on making a massive difference one cup at a time, has announced the appointment of Stephen Gillett to its Board of Directors and Audit and Risk committees of the Board. Gillett brings signi cant C-suite leadership experience at multiple industry leading brands, including Verily, Symantec and Best Buy. In addition to his executive roles, Mr. Gillett has public company board experience across technology and retail including Chipotle and Symantec, and serves on the board of consumer technology company, Discord. He also serves on the board of the University of Oregon, Phil and Penny Knight Campus for Accelerating Scienti c Impact. Stephen Gillett (Photo: Business Wire)

“Technology is at the forefront of our industry and key to our growth,” said Joth Ricci, president and CEO of Dutch Bros Coffee. “Stephen’s experience as a senior executive, his extensive and groundbreaking work in cybersecurity and the tech sector, and his dedication to connecting with communities will be invaluable to Dutch Bros.” Gillett is Chief Operating Of cer at Verily, an Alphabet company founded at the convergence of healthcare, data science and technology. Previously, he was co-founder and CEO of Chronicle, an Alphabet cybersecurity company that is now part of Google Cloud. He also served as EVP, COO and board member at Symantec, EVP and president of Best Buy Digital and Business Operations, and was part of the founding Starbucks transformation leadership team as chief

information of cer and general manager of Digital Ventures. “I’ve had the privilege to see up close how the interaction between modern technology, digital capabilities and business operations can grow and enhance an organization to create differentiated experiences with their customers and partners,” said Gillett. “Dutch Bros is at a key point in its growth, where I hope to share these experiences and help the leadership team achieve their goals.” Stephen holds a MBA from San Francisco State University and a Bachelors of Science from the University of Oregon.

Southern Oregon Business Journal January 2022 | 7

ECONOMY By Press Release https://www.prnewswire.com/news-releases/umpqua-bank-2022-economic-outlook-for-businesses-showsgrowth-opportunities-ahead-but-adaptability-remains-critical-for-success-301440754.html

Umpqua Bank 2022 Economic Outlook for Businesses Shows Growth Opportunities Ahead, but Adaptability

Tory Nixon, Umpqua Bank President

Report taps economists and bank leaders for insights to help small and middle market companies navigate disruptions, be ready for opportunities

mpqua Bank released its 2022 economic outlook report for small and middle market companies, "Headwinds & Opportunities: Economic Trends & Predictions for Businesses in 2022." The bank tapped prominent West Coast economists and Umpqua Bank thought leaders to examine key issues that will shape the 2022 economic landscape, their impact on decision-making, and what businesses can do to meet both challenges and opportunities with con dence.

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There's tremendous growth opportunity for those businesses that remain nimble and prioritize adaptability. Issues explored in-depth in the report include the COVID pandemic, in ation, supply chain and labor challenges, as well as opportunities in automation, commercial real estate and M+A. "Every year brings a unique set of challenges and opportunities. Successfully navigating these developments starts with understanding key factors shaping the economy and what they mean for business," said Tory Nixon, Umpqua Bank president. "Looking ahead to 2022, there's

tremendous growth opportunity for those businesses that remain nimble and prioritize adaptability. At Umpqua, we help businesses of all sizes plan for growth while preparing for the unexpected that's part of doing business in the current economy." Umpqua Bank's "Headwinds & Opportunities" report provides expert insights on what businesses should anticipate and prepare for in 2022 across four categories: 1) The Economy, 2) Major Disruptions, 3) Strategic Investments, and 4) U.S. Policy & Cybersecurity. To read the full report, visit: www.umpquabank.com/2022-trends.

Notable insights from the report include: The Economy

• Americans' net worth has soared during the

pandemic, with many consumers ush with cash and ready to spend. This suggests 2022 will be a year of strong demand and growth potential, depending on the pandemic's trajectory.

acquire competitors whose owners are exiting or less competitive nancially, and more rms impatient with the pace of organic growth will look to acquire competitors.

• Automation adoption is increasingly

affordable and will continue to advance among small and mid-size companies and be most prominent in industries facing signi cant wage pressure.

• Businesses in service

industries need to prepare for signi cant increases in demand as strong consumer spending is expected to shift from goods to services.

• In ation will continue to

pose a challenge to the economy and be especially challenging for businesses that rely on purchased goods.

• It will be important for businesses to

Major Disruptions

• A shift in demand from goods to services should improve supply chain ef ciency, delivery times, and ease pressure on the system.

• It will be important for businesses to heed lessons learned from recent supply chain disruptions and carefully reevaluate their sourcing, inventory, manufacturing, and pricing strategies.

• The talent environment will continue to be

highly competitive, and companies will want to invest in strong compensation packages to attract hesitant workers, particularly in high-need industries such as leisure, hospitality, and retail.

Strategic Investments

• Strong M+A is expected to continue. Cashrich rms will be in a strong position to

reevaluate their current real estate position and strategy as uncertainty in the of ce sector will continue into 2022. This will create opportunities for businesses as many employers continue to re ne their workplace expectations and hybrid work environments. In addition, multi-family housing looks strong moving forward.

U.S. Policy and Cybersecurity

• Major legislation currently being passed or

considered by Congress could have signi cant implications for businesses and investors. It will be critical to understand how any changes to scal policy will impact cash ow and nancial planning.

• The move to Real-Time Payments will

accelerate, which will improve cash ow and require businesses to enhance their cybersecurity measures to protect working capital.

About the Report For "Headwinds & Opportunities: Economic Trends & Predictions for Businesses in 2022," Umpqua Bank interviewed leading West Coast economic and policy experts at ECONorthwest, economic futurist Bill Conerly, as well as bank leaders. ECONorthwest is an independent economic consulting rm that provides economic analysis for clients needing to make policy and investment decisions. Its staff includes seasoned economists, analysts, and policy experts. Conerly is a business-focused economist who specializes in connecting the dots between the economy and business decisions. He has worked for more than 30 years helping companies adapt to changing economic conditions. Conerly has written two books on business economics and regularly contributes to Forbes.

About Umpqua Bank Umpqua Bank, headquartered in Roseburg, Ore., is a subsidiary of Umpqua Holdings Corporation, and has locations across Idaho, Washington, Oregon, California, N evada, and Arizona. Umpqua Bank has been recognized for its innovative customer experience and banking strategy by national publications including The Wall Street Journal, The New York Times, BusinessWeek, Fast Company and CNBC. The company has been recognized for eight years in a row on FORTUNE magazine's list of the country's "100 Best Companies to Work For," and was recently named by The Portland Business Journal the Most Admired Financial Services Company in Oregon for the seventeenth consecutive year. In addition to its retail banking presence, Umpqua Bank also owns Financial Paci c Leasing, Inc., a nationally recognized commercial nance company that provides equipment leases to businesses.

Southern Oregon Business Journal January 2022 | 9

regon is one of the world’s great tree-growing areas. The state’s soils and climate provide ideal conditions to grow such commercially viable species as Douglas r and ponderosa pine. Forests cover more than 30 million of Oregon’s 62 million acres – almost half of the state’s landmass.

Firms in forestry and logging grow and harvest timber on a long production cycle, generally of 10 years or more. Timber production requires natural forests or suitably large areas of land

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Oregon’s Forestry and Logging Industry: From Planting to Harvest

Oregon’s wood products industry, creating jobs and income, many jobs are also created planting, growing, and harvesting this resource. Forestry and Logging Industry Employment

The Oregon Department of Forestry (ODF) estimates logging harvests totaled 3.6 billion board feet in 2020. While much of this timber feeds

By Brian Rooney State of Oregon Employment Department Regional Economist Douglas and Lane counties brian.t.rooney@employ.oregon.gov

FORESTRY & LOGGING

that are available long term. Oregon’s often mountainous and remote terrain, in both public and private ownership, provides that land base. The forestry and logging subsector is made up of three industries:

• Timber tract operations • Forest nurseries and gathering •

of forest products Logging

Employment was in decline between 2005 and 2009 and has since leveled off. It is currently varying seasonally in a band between 8,000 and 10,000 jobs. Of the 2020 annual average total, 5,231 were employed in the private sector while 3,810 were employed in government. Most of the government employment is in federal government at 3,640 while the rest is in state government. Covered employment is a count of workers covered by Oregon’s unemployment insurance (UI) program. Self-employed individuals are generally not included in the program and, therefore, not counted. However, the U.S. Census Bureau produces nonemployer statistics. A nonemployer business is one that has no paid employees, has annual business receipts of $1,000 or more, and is subject to federal income taxes. In addition to covered employment, forestry and logging had 1,543

nonemployers in Oregon in 2018. Gross income for these companies was $116 million. Although there is no further industry breakout, it is likely that many of these self-employed are involved in timber tract operations and the gathering of forest products. Forestry and logging is a highly seasonal industry. Employment generally grows throughout the spring and peaks in August. Employment often stabilizes for a month or two in the fall before dropping off as winter rains begin. The largest industry in the forestry and logging subsector is logging, which totaled 600 reporting units and 4,744 employees in 2020. The logging industry, with a statewide annual average wage of $53,983 in 2020, pays a little less than the average wage of $59,927 for all industries. Major occupations in this industry include loggers, equipment operators, truck drivers, and fallers and buckers. Logging shows a similar seasonality to the overall sector, except with less volatility. The second-largest industry of employment in forestry and logging is timber tract operations, employing 4,105 on an annual average basis in

2020. Timber tract operations employment is largely government employment. In 2020, 3,640 federal workers and 162 state workers managed government forestlands. The remaining 303 were in the private sector. In addition to forest workers, many occupations in this industry are managerial or professional and require a high level of experience and education. Wages, therefore, are relatively high – $79,299 in 2020. The industry with the least employment in the forestry and logging subsector is forest nurseries and gathering forest products, with only 15 establishments and covered employment of 193 in 2020. Many of the occupations in this industry are seasonal nursery work, which contributes to the low annual average wage of $39,391. The covered employment numbers for this industry may be low since many of the entities that gather forest products are sole proprietors or family operations that are not covered by UI law. Long-term Decline but Stabilization after the Great Recession After a period of relative stability in the early 2000s, the forestry and logging

Southern Oregon Business Journal January 2022 | 11

According to the Oregon Employment Department’s covered employment statistics, forestry and logging’s 722 rms employed 9,041 workers statewide and added $589 million in payroll to Oregon’s economy in 2020.

industry continued a slow decline that began in the early 1990s. From 1990 to 2000, forestry and logging employment declined from 15,774 jobs statewide to 12,887, a loss of 2,887 jobs or 18%. During that period, timber harvests in Oregon declined from 6.2 billion board feet to 3.9 billion board feet. The decline was due largely to environmental concerns and the resulting decrease of harvests from public lands. In 1990, the Oregon Department of Forestry reported 48% of timber cut for the lumber and wood products industry came from public lands. Over time, restrictions took a toll, and the harvest from public lands in Oregon dwindled to 18% of the total in 2007. Due to low interest rates along with a record level of housing starts and an increase in lumber prices in the western U.S., the 2004 timber harvest level of 4.5 billion board feet was the highest since 1993. A few years later, western housing starts declined due to a nationwide recession. Timber harvest levels declined along with building permits and lumber prices to 3.8 billion board feet in 2007. Correspondingly, employment in forestry and logging dropped 1,898 jobs, or 15% from 2004 to 2008. With the end of the Great Recession in 2009, the industry stabilized, due in part to increased exports to China. Since then, forestry and logging employment has been stable compared with previous periods, going

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“Oregon’s Forestry and Logging Industry” continued from page 11

from annual average employment of 9,391 in 2009 to 9,353 in 2019. Some of the long-term decline in employment in forestry and logging was due to increased mechanization. A simple way to look at the ef ciency created by mechanization is to look at the volume of timber harvested per logging worker. There was an average of 550,400 board feet harvested per logging worker in 1990. By 2020, that gure had risen to 764,100 board feet per worker. The forestry and logging industry was one of the industries least affected by restrictions put in place due to the COVID-19 pandemic, losing about 6% of its employment between February and April 2020 compared with 13% for all industries. It then regained all of its employment and added jobs into July. On an annual average basis, Forestry and logging employment dropped 3% in 2020 compared to 6% for all industries. The 2020 re season was one of the largest in Oregon’s history. The Labor Day res of 2020 burned more than a million acres. Salvage logging began in late 2020 and continues into 2021. In the short term, there may be increased demand for logging workers for salvage logging. In the long term though there may be less timber available to harvest although there will be more demand for forest management going forward. Support Activities for Forestry The high level of forestry activity in Oregon also creates demand for a support activities industry. In 2020,

support activities had covered employment of 4,579 and provided $246 million in payroll. In addition, there were 559 nonemployer businesses with gross income of $30 million in 2018. Included in this industry are rms that replant forests, ght forest res, thin forests, and provide information to the timber industry. Employment in support activities has been stable through time with annual average employment increasing recently, going from 3,432 in 2011 to 4,579 in 2020. At $53,681 in 2020, annual average covered wages in this industry were below the all-industry average of $59,927. Seasonal, sporadic, and parttime work are prevalent and often bring down the annual average but employment and wages rose in 2020, likely due to the busy re season. The support activities for forestry industry was one of the least affected by restrictions enacted due to COVID-19. The industry lost 244 jobs or 5% between February and April 2020 compared with 13% for all industries. The industry had gained back most of the lost jobs by June. The Labor Day res of 2020 will create more demand for replanting and likely create some additional demand for re ghting in the future. Like forestry and logging, the support activities industry is highly seasonal. The year usually starts with tree planting in the late winter and into spring, depending on the slope and elevation. Fire ghting then picks up in

the summer, usually peaking around August. The support activities industry has become very mobile and exible, with Oregon companies planting trees, thinning brush, and ghting forest res throughout the Paci c Northwest and beyond. Some Oregon companies in this industry take part in more than one of these activities, often far from Oregon. As Cassandra Moseley of the University of Oregon’s Ecosystem Workforce Program points out, “A company can do all three in an area once they have the transportation and people that are willing to work hard.” Another major portion of the support activities industry is replanting forests

after logging. In 1971, Oregon enacted the Oregon Forest Practices Act, making it the rst state in the nation to set rules to ensure a continuous harvest of timber. As a result, according to the Oregon Forest Resources Institute, about 40 million seedlings are planted in Oregon each year. Outlook Employment Department projections show that the logging industry in Oregon is expected to lose about 100 jobs, or 2% between 2020 and 2030. Logging was one of the industries least affected by restrictions enacted due to the COVID-19 pandemic so it will not have as strong a rebound as the overall economy going forward. Other

industries within timber production, such as timber tract operations and support activities for forestry do not have published Oregon Employment Department forecasts. https://www.qualityinfo.org/-/oregon-sforestry-and-logging-industry-fromplanting-to-harvest By Brian Rooney State of Oregon Employment Department Regional Economist Douglas and Lane counties brian.t.rooney@employ.oregon.gov

Southern Oregon Business Journal January 2022 | 13

By Marshall Doak, SOU SBDC Director

Creating Value

Photo by Tim Mossholder on Unsplash

o start 2022 off, I thought to write about creating value in a business. This topic is not often thought about during many of the stages of the business cycle. It is not often executed well towards the end of ownership, as it becomes apparent that the residual value of the business is what the entrepreneur will end with to make it

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SMALL BUSINESS DEVELOPMENT CENTER

through their retirement years. Creating value in a business is more than looking at nancial statements and making course corrections, rather it encompasses a number of viewpoints and affects all aspects of a businesses’ footprint.

To whom does your business create value? Several groups come to mind: Community stakeholders: Which groups in your community rely on your business for funding? Little league sports teams? Contributions to public

facilities such as pools, parks and recreation areas? Sponsoring community fundraisers to assist one cause or other? Perhaps you have formed as a B Corporation so building a business while dedicating a portion of it to an allowable cause is what you are engaged in. There are many stakeholders that rely on your business to be a part of the social fabric of the community. It typically is a good business practice to participate at this level and to be recognized for the support given. Customers and Suppliers: Volumes have been written regarding the value your customers bring to your business. How many customers, the concentration of sales with each customer, the terms you extend and pricing levels that determine your margins are just a few of the dynamics within the business – customer relationship that creates value. Likewise, with the supplier – business relationships, the terms extended, the quality and reliability of the supplied products are several of the dynamics suppliers are measured by that create the value of each relationship. Great customer and supplier relationships may slightly help create value, but lousy suppliers and customers will certainly downgrade the value of a business. Employees: Certainly a great resource and arguably the most valuable asset of many businesses are the employees who work to create and build the value a business enjoys. As an integral part of a business, how the culture is de ned and upheld, how compensation is delivered to each employee for their efforts and what bene ts the employees enjoy as part of the organization are critical to retention and building enterprise value. The dynamics of the workforce have changed substantially over the past couple years and those changes will alter the cultural

dynamics within companies for many years to come. Successful value creation in a business oftentimes becomes the central issue when assessing a businesses’ worth when an exit is planned or is forced due to circumstances. Looking at the groups identi ed in the previous section suggests that value creation is an ongoing additive process that returns great rewards back to the savvy owner group that is managing the business, as it traverses the stages from business creation through transition. This correctly implies that value creation is not a one-off at the end of a businesses travel through the life cycle, so the expectations from entrepreneurs or heirs should not be to wait to try and correct the structural de ciencies developed over time in the short period from need recognition to listing the business for sale. This in no manner devalues the usefulness of having accurate timely nancial statements prepared on a regular monthly or more frequent basis, and to use the statements to assess all aspects of a company’s operations to date. Financial statements are, in many ways, the lifeblood of a company’s ability to recognize performance and to benchmark that performance against industry peers. They are invaluable to use as tools to determine where and how large issues are in a company so that strategic plans accurately re ect the management’s intentions for investing in and correcting these problem areas to improve overall company performance and value over time. From COVID pandemic restrictions, supply chain problems and disaster occurrences in Southern Oregon, it should not be a surprise that planning ahead for maximizing business value should be a constant activity within a management

strategic plan. A rst goal for 2022 should be to create a strategic plan for your company that will add value to your operations on a continuing basis over this year. A good strategic plan will include, at the absolute minimum: Goals, Speci c Objectives to attain that support the goals, Projects to do that accomplish the objectives, and work tasks that accomplish projects. The plan should be in written form, should be based on an initial assessment of the company’s standing or performance in key areas, and should include performance measures and a timeline to guide the quality of the work during the year. This is a structured outline for making de ned improvements in your business in increments to allow for improvement in performance that will not cause undue disruption in your company’s functioning throughout the year. Implementing this approach with the buy-in of your employees will create value, stability and increase the available resources to reward exceptional efforts from staff. —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 ve 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.

Southern Oregon Business Journal January 2022 | 15

“Majoring In” helps students nd college programs in gaming, esports, beer and wine

FEATURED Interview by Jim Teece

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Q: Gaming, esports, beer and wine may be favorite past times for collegeaged students, but most people have never thought about them as viable career paths. Your websites give a different message. Why did you create the Majoring In suite of websites? A: We created our rst website, Majoring in Wine, because one day Chris did a Google search for one of her winery clients for “wine education programs” and the only thing that showed up were some ads and old magazine articles. We

were shocked that there wasn’t a comprehensive listing of wine industry programs throughout the US and

counselors had any idea where to send their students. We also had these SOU business students contact wineries across the country to see if their hiring managers knew where to nd newlyminted viticulture, enology and hospitality graduates, and the response was the same— they weren’t sure where to look. This con rmed our suspicion that there was a need for a trusted, comprehensive and objective location for people looking to expand their wine-related education. We decided to create one!

abroad. To test our idea, we had some SOU (Southern Oregon University) business students conduct research with high school counselors across the country to nd out what advice they gave students looking into the wine industry as a career choice. As you would expect, very few

Over the next three months, we had students researching college and university wine programs, scholarships and related information while we worked with a website design company to build MajoringInWine.com, which launched in July 2020. With more than 100 accredited wine programs listed, we also included

Southern Oregon Business Journal January 2022 | 17

aming, esports, beer, wine. It may sound like a list of everything your parents didn’t want you to do in college, but times have changed. Today’s students can pursue rewarding and lucrative careers in these industries. To nd out more, we asked Majoring In co-founders Chris Cook and Vicki Purslow, longtime Ashland residents.

Delicato Family Wines, the Varsity Esports Foundation and IGDA Foundation and we’re looking for advertisers.

“Majoring In” continued from page 17

Q: What prompted your interest in wine education programs in the rst place and how are you the perfect people to create such websites?

resources for scholarships, jobs and internships. And we regularly post blogs related to career options. The response was so positive, we added websites for other programs in need of the same—MajoringinBeer.com (launched November 2020) and MajoringinGaming.com (launched April 2021). More sites are in the works. Our focus is on niche and emerging industries that aren’t already welldocumented.

from a simple listing to a full page with photos, videos, information and a way for potential students to request more information directly on the Majoring In site. We also are actively communicating with school counselors, parents/families and students through conferences, social media and blogging. In fact, each Majoring In site has its own Instagram,

Q: Well, that’s quite a process you worked through to research the need and gather the pertinent information! How are you promoting the sites? A: Yes, we sometimes refer to it as our “Covid Project” but in reality, it will be an ongoing endeavor as we continue to build out and promote existing sites and develop additional sites along the same lines. We are actively recruiting colleges and universities to increase their presence

18 | Southern Oregon Business Journal January 2022

LinkedIn and Facebook site! Also, we have begun to develop partnerships with organizations such as

A: Chris has a deep background in marketing higher education institutions and specializes in marketing consulting for the wine industry through her company Capiche Wine Marketing & PR. She also worked with Master of Wine Tim Hanni on the development and production of an online, on-demand wine business program called Wine Business Education. Vicki has been in higher ed her entire career, currently at SOU, as a professor and administrator. She also authored a book called “Cash for College,” and has presented numerous workshops to assist high school students and their families locate scholarship opportunities. Q: What’s next for you, now that you have these three sites up and running? A: We are talking with students and counselors to nd out in-demand college programs that are out of the ordinary, niche and emerging. We will be expanding our suite of websites to serve those industries. If readers have ideas, we would love to hear from them at chris@majoringin.com. Thanks, Jim!

Better Together People’s Bank of Commerce and Willamette Community Bank are pleased to partner together in a merger and continue to deliver exceptional community banking services across Oregon, as well as deliver long-term value to our community. Now that we are one organization, our customers can bank at any of our nine locations in Southern Oregon and the Willamette Valley.

WILLAMETTE COMMUNITY BANK LOCATIONS

PEOPLE’S BANK LOCATIONS Medford Branches

Klamath Falls Branch

Albany Branch

1528 Biddle Road Medford, OR 97504 541-776-5350

210 Timbermill Drive Klamath Falls, OR 97601 541-273-2717

333 Lyon Street SE Albany, OR 97321 541-926-9000

Grants Pass Branch

Lebanon Branch

1311 East Barnett Road Medford, OR 97504 541-622-6222

509 SE 7th Street Grants Pass, OR 97526 541-955-8005

1495 South Main Lebanon, OR 97355 541-223-7180

Central Point Branch

Ashland Branch

Salem Branch

1017 East Pine Street Central Point, OR 97502 541-665-5262

1500 Siskiyou Boulevard Ashland, OR 97520 541-482-3886

315 Commercial Street SE Suite 110 Salem, OR 97301 503-468-5558

Southern Oregon Business Journal September 2021 | 19

BROADBAND By Press Release https://www.prnewswire.com/news-releases/hunter-communicationsacquires-onlinenw-and-xs-media-301452420.html?=prn132

Hunter Communications Acquires OnlineNW and XS Media

Oregon's largest privately owned ber-optic internet provider, announced that it has acquired McMinnville Access Company LLC, the parent company to Online NW and XS Media. This acquisition means better, more reliable internet access to more Oregonians

Oregon's largest privately owned beroptic internet provider, announced that it has acquired McMinnville Access Company LLC, the parent company to Online NW and XS Media.

n December 31, 2021, Hunter Communications, Oregon's large st privately owned ber-optic internet provider, announced that it has acquired McMinnville Access Company LLC, the parent company to OnlineNW and XS Media.

“This acquisition is a signi cant milestone to bringing better internet service to underserved Willamette Valley communities,” said Michael Wynschenk, CEO, Hunter Communications. “The outstanding employees of OnlineNW and XS Media compliment Hunter in

20 | Southern Oregon Business Journal January 2022

ways that will help us serve more residential and business customers. We are very excited to acquire these successful entities and pleased to add their product offers to the Hunter technology portfolio.” Hunter is always seeking new ways to strengthen its foundation, improve performance in new markets, and ensure customers receive the best service possible. Acquiring OnlineNW and XS Media allows Hunter to expand product

"This acquisition represents a true partnership and a great match to our company values," said Kathy Tate, CEO, OnlineNW. Like OnlineNW and XS Media, Hunter values building relationships with employees, customers and communities all while creating economic vitality and opportunity. As a larger organization with more nancial resources, we will be able to increase our investment in technology and expand our service area, enabling us to serve more customers and broaden our reach to new markets."

northern California. With Gig speeds, no data caps, and competitive pricing, Hunter's 2,000+mile ber network is nationally recognized for performance and reliability. BroadbandNow recognized Hunter with four 2020 Internet Service Provider Awards, including for fastest business internet speeds in Oregon and among the top 10 nationwide. PC Magazine named Hunter top northwest ISP for gaming in 2022, above larger national brands.

of Oregon. With headquarters located in McMinnville and a network covering over 2,500 square miles, OnlineNW has established itself as a trusted ally to rural and underserved communities. For this work, they received the Oregon Connections Awards for Excellence in Telecommunications Projects and Regional/Local Strategies in 2017 and went on to be ranked number 16 in Oregon Business' Top 100 Best Companies to Work For in 2020.

“This acquisition is a signi cant milestone to bringing better internet service to underserved Willamette Valley communities”

Hunter Communications now employs more than 180 workers across the state of Oregon – a 30 percent growth in its workforce following the acquisition.

Michael Wynschenk, CEO, Hunter Communications.

Hunter will begin integrating its systems later in 2022, with all companies operating independently until then. Once fully integrated, customers will have access to some of the fastest ber-optic internet in the state. About Hunter Communications Hunter Communications provides ber optic broadband internet, data and voice services to business and residential customers in communities throughout southern Oregon and

Founded in 1992, Hunter is headquartered in Medford, Oregon where the company established a legacy of service excellence and commitment to local communities. Hunter Communications was acquired in 2020 by Grain Management, LLC. Additional information is available at Hunter ber.com. About OnlineNW OnlineNW is the leading provider for rural beroptic and xed-wireless Internet services in the mid-valley region

Established in 1994, OnlineNW has built a reputation of excellence by providing rural customers with equal access to reliable, fast, and affordable Internet and voice solutions. Find out more at OnlineNW.com.

About XS Media XS Media is a high-speed Internet and voice services provider for the Southern Willamette Valley. Established in 2001, XS Media was the rst highspeed Internet provider in Junction City and Harrisburg and pioneered "gigabit Internet" in the greater Eugene area. In 2021 they opened an electrical services division to better support the growing needs of local businesses. As a communitycentered company, they have dedicated their efforts to creating a positive impact in their region. In 2017 XS Media was acquired by OnlineNW. Learn more about their work at XSMedia.com. SOURCE Hunter Communications

Southern Oregon Business Journal January 2022 | 21 fi

offerings throughout Oregon and accelerates its ability to provide service to underserved communities. At the same time, the values of all organizations are aligned in providing great service and customer support.

EMPLOYMENT By Shawna Sykes State of Oregon Employment Department Workforce Analyst Benton, Clatsop, Columbia, Lincoln, and Tillamook counties shawna.l.sykes@employ.oregon.gov

n 2020, Oregon had a per capita personal income (PCPI) of $56,312. Oregon’s PCPI ranked 22nd in the U.S. and was 95% of the national average of $59,510, according to the U.S. Bureau of Economic Analysis. In Oregon, the 2020 PCPI increased by 7.3% from 2019, faster than the nationwide PCPI growth rate of 6.2%.

22 | Southern Oregon Business Journal January 2022

Per Capita Personal Income in Oregon’s Counties

Personal income is the sum of three main components: net earnings (wages, salaries, employer contributions); personal current transfer receipts (retirement, Medicare, unemployment insurance); and income from dividends, interest, and rent. PCPI is calculated by dividing the area’s personal income by its total population.

Per Capita Personal Income in Oregon’s Counties Per capita personal income varies between states and counties and by metro and nonmetro areas. In general, PCPI is higher in the Portland area, the Columbia River Gorge, and Central Oregon’s Bend area. Gilliam County had the highest PCPI in 2020 at $67,754,

followed by Washington ($66,831), Sherman ($66,349), Clackamas ($64,791), and Multnomah ($63,852) counties. The three major components of per capita personal income – net earnings; transfer receipts; and dividends, interest, and rent – make up different portions of counties’ PCPI. In general, counties with higher PCPI have a higher percentage of PCPI attributable to net earnings. Per capita net earnings made up 70% of PCPI in Morrow County and 65% in Gilliam and Washington counties. In Curry County, net earnings made up just 37% of PCPI. Areas with a higher concentration of older residents tend to have lower PCPI. The reason an older population tends to have lower PCPI is that as people leave the labor force, they have often passed their peak earning years, and therefore have less contribution to the net earnings component of PCPI. Remember PCPI represents income, rather than wealth. Older residents may have substantial wealth but do not have as much relative income, unless it was income-generating investments that would show up in the “dividends, interest, and rent” portion of PCPI. Income from transfer receipts is generally higher in counties with lower PCPI. These transfer receipts are primarily government social bene ts, such as Social Security (retirement), Medicare (health insurance program for people age 65 or older), Medicaid, and unemployment insurance. The initial impulse is to presume that folks in some counties rely more heavily on

Southern Oregon Business Journal January 2022 | 23

“Per Capita Personal Income” continued from page 23

government subsidies; however, the story behind the higher transfer receipts is one of age demographics. In rural Oregon, the share of the population that is age 65 and older increased from 18% in 2010 to 25% percent in 2020. A higher share of retirees means a higher share of transfer receipts. The share of per capita income from transfer receipts was higher in Wheeler (42%), Curry (40%), Jefferson (39%), and Josephine (38%) counties. The lowest share of per capita transfer receipts was in Washington (15%) and Clackamas (17%) counties.

was 88% of the national metro-area PCPI in 2010 and 94% in 2020. On the nonmetro side, Oregon’s PCPI kept pace with the national average for nonmetros. PCPI in Oregon’s nonmetro areas was 95% of U.S. nonmetro in 2010 and 103% in 2020.

Nationwide, the share of personal income from earnings dropped from 63% to 60% of total income from 2019 to 2020. Dividends, interest, and rent also fell from 20% of total income in 2019 to 18% in 2020. At the same time, transfer receipts rose from 17% in 2019 to 22% in 2020.

Income from dividends, interest, and rent was highest in Deschutes (24%), Benton (24%), and Hood River (23%) counties. It was lowest in Morrow (9%) and Columbia (12%) counties. Metro and Nonmetro Metro areas across Oregon tend to have higher per capita personal income than nonmetro areas. In 2020, nonmetro areas ($47,152) in Oregon had PCPI that was just 81% of the metro gure ($58,074). In the U.S., PCPI of nonmetro areas amounted to 75% of the metro PCPI. Comparing metro Oregon with other metro areas across the nation, however, we see that Oregon’s metro PCPI lags the nation and has for a while. In fact, Oregon’s metro areas had a PCPI that

24 | Southern Oregon Business Journal January 2022

income changed, however, due to pandemic-related restrictions and the resulting slowdown in the economy. Fewer people earned income from work, dividends, interest and rent. More income was received through transfer payments like federal stimulus funds and unemployment bene ts than during 2019.

As shown in the table, net earnings make up the highest share of PCPI for all areas. However, net earnings make up a higher share of PCPI for metros than nonmetros, while transfer payments make up a higher share for nonmetros than metros. The COVID-19 Impact on Personal Income Despite the economic downturn, personal income rose both nationwide (+6.6%) and in Oregon (8.0%) from 2019 to 2020. The sources of personal

Statewide in Oregon, the share of personal income from earnings fell from 61% of total income in 2019 to 58% in 2020. Dividends, interest, and rent also fell from 20% of total income in 2019 to 18% in 2020. Transfer receipts climbed from 19% of total income in 2019 to 24% in 2020. https://www.qualityinfo.org/-/per-capitapersonal-income-in-oregon-s-counties by Shawna Sykes State of Oregon Employment Department Workforce Analyst Benton, Clatsop, Columbia, Lincoln, and Tillamook counties shawna.l.sykes@employ.oregon.gov

Southern Oregon Business Journal October 2021 | 25

EDUCATION

SOU receives ODVA Campus Veteran Grant Award

By News Post https://news.sou.edu/2021/12/sou-receives-odva-campus-veteran-grant-award/

he Social Justice and Equity Center (SJEC) Veterans & Military Families at Southern Oregon University has been awarded a $58,163 grant from the Oregon Department of Veterans’ Affairs (ODVA) to help improve outcomes for student veterans at the university. This is the second consecutive year that SOU has secured the Campus Veteran Grant Award and the rst as the SJEC Veterans & Military Families (VMF) program, which was formerly known as the Veterans Resource Center. SOU is one of 15 Oregon universities and community colleges to receive the one-year veterans resource grants, which range this year from $11,040 to $58,635. A total of $600,000 was awarded. The Campus Veteran Grant Award will enable the VMF program at SOU to amplify its existing campus programs focused on supporting

veterans and military family members. The grant highlights three pillars: successful transition from military service to college life, success in college and completion of educational goals; and the transition from college to the workforce and community. Kelly Fitzpatrick, director of the Oregon Department of Veterans Affairs, said that education can be “a critical gateway for many veterans to transition out of the military into a successful civilian career.” Jesse S. Watson, Ph.D., SOU’s equity coordinator for Veterans & Military Families, said the new grant award will be used to create a two-pronged cultural competence training course for incoming students and for staff and faculty; provide funding for orientation and outreach; hire a graduate assistant; and add new programs to support the university’s veterans and military families.

26 | Southern Oregon Business Journal January 2022

“I am thankful for the work of my predecessor, Kevin Stevens, who secured the rst CVRC grant for our veteran community,” Watson said. “The initial funding has strengthened the infrastructure of the Veterans & Military Families spaces, providing a foundation for future programmatic growth.” A Veterans Affairs committee evaluated the proposal of each college and university that applied for the grants, approving some projects and declining others. Other institutions receiving the Veterans Resource grants are the University of Oregon, Oregon State University, Portland State University and Western Oregon University, and Blue Mountain, Central Oregon, Chemeketa, Clackamas, Klamath, Lane, LinnBenton, Mount Hood, Rogue and Southwestern Oregon community colleges. For more information about VMF programs, please visit: www.sou.edu/veterans.

“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

sou.edu • 855-470-3377 Southern Oregon Business Journal November 2021 | 27

AGRICULTURE By Press Release https://www.prnewswire.com/news-releases/cannabis-fertilizer--soil-manufacturer-dakine-420-landsnational--international-distribution-partners-301450998.html

Cannabis Fertilizer & Soil Manufacturer Dakine 420 Lands National & International Distribution Partners

Photo by Tow qu barbhuiya on Unsplash

Redmond, Oregon-based company expanding operations n these times of lockdowns, and supply issues, it's refreshing to see a company surging in growth. Dakine 420 announces new partnerships with Stellar Wholesale, Inc. in Canada, and BFG in the U.S. to get their products to thousands more growers.

products to retailers and commercial growers, becoming preferred supplier for some of the industry's best brands. Stellar Wholesale carefully evaluates and chooses their products to provide retail stores with innovative quality goods. With a policy of only selling to retail stores in the garden industry, the company has provided customers support and helped them grow their retail markets.

Dakine 420's New Distribution Partners Since 2013, Dakine 420 has self-distributed its powdered fertilizers and grow media from its manufacturing facility in Central Oregon. Through years of relationship building and hard work, Dakine 420 has grown its network and chosen partners consistent with their world-class customer support and grow house knowledge, and is now poised for synergistic market share growth. For over 15 years, Stellar Wholesale Inc. has distributed hydroponic, greenhouse and garden

Founded in 1972, BFG Supply serves the Green Industry, including professional growers, lawn & garden centers, landscapers, and indoor growing stores. Known as an established industry leader, BFG provides high levels of customer service, a broad product range, and innovative technology solutions. The company has grown with the times, expanding its services to serve cannabis growing manufacturers. A true single-source supplier for Green Industry needs, BFG maintains thirteen distribution facilities and a professional eld sales force.

28 | Southern Oregon Business Journal January 2022

"We are excited to combine the highest standards in scienti c cannabis nutrient production with the distribution excellence of Stellar Wholesale and BFG Supply," says Dakine 420 President & CEO, Kelly Martin. "This is a big leap forward in the evolution of the cannabis industry.” About Founded in 2013 by a pioneer in Cannabis cultivation, Dakine 420 brings cutting-edge, affordable grow supplies to the nationwide horticultural market. High Yield Science is the foundation of our company. We provide the tools and support our customers need to obtain the best quality and highest yields in the shortest times possible, as the only nutrient company in the nation offering live chat for growers with questions. Short grow cycles and high yields increase pro t, and Dakine 420 helps achieve grower goals in sustainable fashion. Contact us at (541) 420-4645 or email info@dakine420.com. Find us at www.Dakine420.com

TECHNOLOGY

What can we learn from McMenamins Data Breach? Ransomeware and its impact.

From McMenamins.com Photo by Tow qu barbhuiya on Unsplash

What Happened On December 12, 2021, McMenamins suffered a ransomware attack. As soon as we realized what was happening, we blocked access to our systems to contain the attack that day. It appears that cybercriminals gained access to company systems beginning on December 7 and through the launch of the ransomware attack on December 12. During this time, they installed malicious software on the company’s computer systems that prevented us from using or accessing the information they contain. Which Employees Were Affected and What Information Was Involved We have determined that the hackers stole certain business records, including human resources/payroll data les for at least some individuals who were previously employed by McMenamins between January 1, 1998 and June 30, 2010. We have not been able to recover these les or contact information for these previous employees. Out of abundance of caution and for the purposes of providing this notice

and credit monitoring support, we are assuming that all previous employees during this time period were potentially affected. In addition, the hackers stole the same type of human resources les for persons employed by McMenamins between July 1, 2010 and December 12, 2021. Because we were able to recover the contact information for these individuals, McMenamins mailed to them individual notices containing the same general information about the incident and individual information for enrolling in identity and credit monitoring and protection services. The affected les potentially contained the following categories of personal information for all potentially affected current and past employees: name, address, telephone number, email address, date of birth, race, ethnicity, gender, disability status, medical notes, performance and disciplinary notes, Social Security number, health insurance plan election, income amount, and retirement contribution amounts. Although it is possible that the hackers accessed or took records with direct-deposit bank account information, we do not have any indication that they did, in fact, do so.

What McMenamins Is Doing McMenamins is investigating the attack and working to get business back online. We noti ed the FBI and are cooperating with their efforts. We are working with an experienced cybersecurity investigation rm to understand the attack, restore our systems, and enhance our security. We have noti ed the Attorney Generals of Oregon and Washington, major credit reporting bureaus, and the news media.

I went to McMenamins Edge eld for a meeting and stayed the night on January 3rd. I ate in the Black Rabbit Restaurant and had lunch the next day in the Power Station Pub. One thing I noticed was that they had to revert to manual paper based systems for everything. Hotel Check in, Food Orders etc. They even had to run the ticket back to the kitchen. Can you imagine your business being “down” electronically for weeks? Email, Hotel Reservations, Point of Sale systems were all down. I’m sharing this in hopes we can all learn from it. It’s not “if” the hackers get in and cause harm to our businesses, it’s “when”.

— Jim

Southern Oregon Business Journal January 2022 | 29

Two Steps from Failure

Photo by Jukan Tateisi on Unsplash

n estimated 200,000 business closures have occurred in each of the rst two years of the Covid19 pandemic. These are closures that happened because of Covid19 that would not otherwise have happened. In a typical year, absent Covid19, approximately 600,000 businesses will close their doors. But is that a distraction from the true cause of business failures?

gather, even temporarily, may have the greatest impact of all on business survival. Humans are social creatures, as much in America as anywhere on earth. The act of greeting by a handshake, a pat on the back, or a hug is a communication style society uses daily. Absent the eighteen-inch distance between individuals our communication success suffers greatly. By increasing the minimum distance between us to six feet, a mere two steps, totaling about fty- four inches the intimate distance necessary for thousands of activities we do every day, will bring businesses and personal interactions to a halt. Without it thousands of businesses will fail. 100’s of thousands already have. Is that a fair tradeoff for the scienti c experiments to stop the pandemic?

For every action there is a reaction. Unintended consequences also fall into the mix. Has the medical urgency to nd a cure for this infectious disease earned the responsibility for business failures, possible in ation, unemployment growth, political malfeasance, and increases in poverty? More importantly, are these consequences more severe than the disease? The debate will last beyond the crisis. The simple and innocent idea to create a “safe distance” of six feet between people in lines wherever they

Very dif cult questions must be answered when deciding on next step responses to something as serious and widespread as a

30 | Southern Oregon Business Journal January 2022 fl

by Greg Henderson

potential pandemic. For some the correct response can be devastating. Then the response becomes one of situational ethics. What is right for one will be wrong for another. Anyone who believes they have the answer to the process of resolving our current worldwide dilemma knows that there can be large scale suffering in choosing that answer. The decision makers know and suffer greatly in selecting the best possible solution. Our public responsibility is to appreciate the dif culty these decision makers have in selecting the best option. Our greater responsibility is to select individuals we can con dently identify as the most quali ed to hold the title of decision makers. 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, he spent nearly 30 years in banking and nance. His articles have appeared in dozens of publications concentrating on some 20 industry sectors. Contact him at ghenderson703@gmail.com

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Southern Oregon Business Journal March 2021 | 33

THE LAST WORD

It’s what neighbors do

By Jim Teece I wrote this on January 4, 2017 and posted it on Facebook. 150 friends reacted to it and 45 took time to write a comment. https://www.facebook.com/jimteece/posts/10154996907786055

Photo by Tim Bish on Unsplash

A neighbor died this week. How he lived his life and how he eventually died are not my story to tell. I didn’t really know this man that died but I saw him almost every day because he lived at the end of my driveway in a small shack and near the end, in his car.

34 | Southern Oregon Business Journal January 2022

I know his brother, but I never took the time to get to know him. So the truth is simple. I’m lled with some sort of guilt and remorse, as I sit down to write my thoughts. I feel like a bad neighbor and terrible human.

We all live life our own way. He chose his way. We all have the freedom to make decisions that affect us and those around us. Sometimes those decisions lead to addictions and those addictions destroy us. Sometimes it’s fast but most times, it’s a slow, painful drawn-out death. A lingering pain, that stays even after you pass, in the minds of your family.

I stood there with his brother, who was wearing a tank top in 30 degree weather, lling up a dumpster and doing what he could to keep moving, keep positive and keep focused. Another neighbor pulled up and rolled down his passenger window. The story of the passing was shared. The driver expressed his condolences and said he brought “Christmas Dinner” down to him. The brother thanked him loudly and strongly. I could tell that it made him feel good hearing that news. I just looked down at my shoes. I never brought him dinner, Christmas or otherwise. But that isn’t the only thing that was bothering me. What bothered me most, is that I didn’t know who this nice neighbor was. At all. I have been so focused on the economic health of our community that I forgot about our own neighborhood. Sure, I know several, maybe even most as many of you are “friends” here on FB as well, and can attest to that. But lately… Truth be told, I have been down on the new neighbors. Because they park RV’s in my of ce parking lot without asking and steal my electricity. Because they put up fences around pastures to hide their pot farms. (It’s the law to have a fence and the pot farm is legal - but putting up walls in the country is just another example of an unintended consequence) Because they move here from California and build mcMansions and want all of us to change to suit their needs. Because the people we have known for over 25 years in our neighborhood are moving away or dying and their homes are being invaded by drug crazed lunatics. What ever the reason, it doesn’t matter. I sat quietly through dinner upset at myself and looking for something to help me though this. When I got up to clear the table and put items back in the fridge, I saw a sign.

A neighbor has invited us to his annual model train open house. Right there on the fridge being held up by a crazy Chinese magnet from Boone, was the invite. He opens his house once a year for all the neighbors to come and see his huge model train exhibit and each other. It’s what neighbors do. It has been several years since I have been able to go and yet I love model trains. I looked at the date and sighed. I have so much to do that day. So much work to catch up on. Board meetings to prepare for. Surveys to send out. So many businesses that are screaming for my attention. I sat down and started looking for an apartment in Japan. It’s one of the quirky things I do when I need to think. My mind started wandering and I remembered something. The other day it was snowing and our doorbell rang. No one ever rings our doorbell. No one ever comes all the way up to the house. And it was snowing. I think it was New Years day because I went outside and said “Happy New Year” and was surprised that it was a neighbor. A neighbor that has never been to our house before. She was letting me know that our cows and donkeys escaped. It’s what neighbors do. I thanked her, told her to watch her step on our stairs and hurried back inside and told the family to suit up. We had a rescue mission to go on. (I love animal rescue missions BTW) After we got down to the barn, we knew it wasn’t our donkey and cow, but we knew who they belonged to. We let a neighbor use our pasture for the winter and they escaped. We called him and he was an hour away in Grants Pass and the sun was going down so we went hunting with a sense of urgency. Since it was snowing, it was easy to track them. Kind of. We were afraid that they were heading down to the of ce and worse, the hiway. We lost their tracks about half way to the of ce and after backtracking we found them alive and well.

It’s what neighbors do. Just like our UPS driver, who is also a neighbor, who offers to drive a package to the house, because it’s a green house I ordered for Dena for Christmas and he thinks that it’s too heavy for me to carry. It’s what neighbors do. Just like our neighbor with a tractor who asks if he can help Dena lay some culvert when we see him at ShopNCart. It’s what neighbors do. Just like the gathering we held at the lake to BBQ and enjoy life and pay tribute to a neighbor who lost the battle with cancer. It’s what neighbors do. I’m remembering all of this and realizing how blessed and lucky I am. How I live in the country surrounded by amazing humans that are wonderful neighbors. I’m going to nd a way to go to the train open house and say hi to old neighbors and hopefully meet some new ones too. I’m going to throw an open house at our of ce this summer and invite all the neighbors. I’m going to get to know all the new neighbors and I’m going to nd the guy that brought Christmas Dinner down and invite him and his family over for dinner to say thank you. It’s what neighbors do. And one night, when the sky is lled with stars and the river is owing loudly, I will light a candle in front of the shack where my neighbor died. I will say a prayer and maybe even read a story or two and ask his spirit for forgiveness for my sel shness and lack of humanity and I will let the candle burn itself out, leaving me in draped in darkness and peace, with hope that he is in a better place now. It’s what neighbors do. * A Note from Jim : FB showed off this memory today. I reread it and all of the comments it made me think hard about my life again. I’m sharing it here for you hoping that it inspires you like it does me. Happy New Year!

Happily grazing on some pasture grass at our neighbors house. We locked them in the pen (we were so lucky that they all went into the abandoned pen to graze). We also got permission from the owner of the pasture and thanked him for his kindness and help then we called the owner and told him where to nd his animals. Our job was done. I let the neighbors know who let us know that the animals were safe and thanked them for letting us know. Photo by Nina Strehl on Unsplash

Southern Oregon Business Journal January 2022 | 35 fi

Sometimes those around you, even your neighbors, see you everyday and watch you slowly destroy yourself and wonder why you do it. Sometimes all that is left after you are gone, are your unpaid property tax bills and the trash you felt was valuable. Left behind for your family to clean up as a modern way of mourning and healing.

Southern Oregon Business Journal 5350 HWY 66, Ashland, OR. 97520 www.southernoregonbusiness.com

Business Trends to Keep Top of Mind in 2022 Each new year brings a unique set of challenges and opportunities for your small business. Learn what you can expect in 2022 — and how you can get ready today. The path forward through the COVID-19 pandemic has not been easy, but it has showcased the resolve, adaptability, and resourcefulness of entrepreneurs across the country. Small business owners can proudly count themselves among that company. The recovery is in full-swing and according to a study commissioned by NEXT Insurance, 84% of small business owners are somewhat, very, or extremely optimistic about the ongoing economic recovery — and for good reason. With 2022 in sight, there is no better time than now to prepare for the trends that will likely de ne the next business year. Learn how to position your business for success below: 1.

Buy into the momentum of e-commerce. The shift to digital shopping has been a long time coming. From 2019 to 2020 alone, e-commerce saw a 35% year-over-year increase, and that gure is only expected to grow. To account for this trend, optimize your business’s e-commerce presence in 2022 and beyond. These days, that starts with making your website mobile-friendly. After all, Statista estimates over 19% growth in mobile commerce since 2017.

Don’t underestimate the popularity of alternative pickup options. In the face of the pandemic, the vast majority of companies had to get creative at the point of sale. Contactless pickup options dominated 2020 and 2021, and it is safe to say that many customers will continue to expect the same or similar services moving forward. In a recent survey conducted by Medallia Zingle, 87% of respondents said brands should keep offering alternatives like curbside pickup — a good reason to make sure you are investing in tools such as touchless payment options.

Get ready for increased foot traf c. While more consumers than ever before do their shopping outside of the store, you do not want to neglect those who still prefer brick and mortar. As of September, Zenreach reports that foot traf c to small business retail shops is up over 30% from the beginning of the year. Be prepared for additional foot traf c by diversifying your payment and pickup options, as well as boosting your digital pro le.

Take time to get serious about your business’s tech capabilities. Are you set up to meet the demands of an economic landscape that is evolving all the time? It is no secret that the pandemic has changed the way we look at working remotely. According to a recent survey from The Conference Board, 43% of U.S. workers question the call to return to the workplace. As a result, businesses will need technology platforms that enable effective communication and collaboration in 2022 — regardless of location.

Be deliberate about where you invest. Work from home isn’t the only emerging trend that will require entrepreneurs to shore up their tech operations. The majority of small businesses — 63%, to be exact — say that automation has helped them endure the COVID-19 pandemic. And with 77% of companies expecting to face a talent shortage as the economy fully reopens, it may be time to consider investing in automation options. Rethinking how you invest in your recruiting strategy can be another highly effective solution.

Understanding current industry trends and best practices will help you better position your business for success in 2022, and the SBA is committed to helping you on this journey.

Posted by the U.S. Small Business Administration at https://www.sba.gov/blog/business-trends-keep-top-mind-2022