Southern Oregon Business Journal - November 2022

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This month is mostly about employment. It’s top of mind for me. The subject comes up at every meeting I attend. The Oregon Employment Department always has great articles on employment that we can all learn from. I’m reposting several of the most recent and relevant in this months journal.

Hunter Fiber is rolling out 2.5 gigabit broadband speeds up and down in the communities they serve. That is incredible. Speaking of broadband, check out the new internet mapping service, FasterInternetOregon.org. I encourage you to do a speed test from your home and provide your real address. We need to know the broadband capability across the state.

I’ve done stories on legitimate cannabis companies before and I ran across a story about the Jackson County Sheriff busting a black market farm that used over 1 million gallons of water in 40 days, during a drought. I’m glad they caught them.

The election is over. I held this issue a few days to see if anything business related would come from it.

I ran for school board once and lost. During that process I learned a lot about what voters expect and think, even before they get to know you. I don’t like the deluge of ads for and against that run constantly up to Election Day. So I always look forward to the peace and quiet that comes after. That being said, I’m publishing a wonderfully written opinion piece written by Joel Barker. He’s a Democrat and lives in Redmond, Oregon and shares his sadness about his vote for Tina Kotek.

When you google “Oregon Election Results”, Governors race, you will see that most of the counties in the state show “red”.

Rural Oregon is different from Urban Oregon. Instead of trying to change the color of the county we are in, why don’t we find ways to respect it and work together.

Thank you to my friends that ran for office. Win or Lose, I appreciate your commitment to working together to make Oregon a better place to live, raise a family and grow a business.

Thanks for reading.

Jim Jim@SouthernOregonBusiness.com

Google Governor Election Results as of 11/11/22

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MANAGED HOME NET - PAGE 31

SOU - LEADERSHIP BEGINS HERE SOUTHERN OREGON UNIVERSITYPAGE 32

PROJECT A - PAGE 48

Fall Shots of a Winery between Talent and Phoenix Oregon by Chad Sobotka - https://www.flickr.com/ photos/chadsobotka/

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

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

NOVEMBER 2022 - TABLE OF CONTENTS

Employment among Oregon’s Veterans - 10

Employment

Technology Reduces Employment in the Printing Industry - 12

Oregon’s Nonprofits in 2021 - 18

Positive employment news - 22

Working from Home since COVID — the New Work Experiment - 34

Broadband

Hunter Communications announces 2.5G/2.5G internet, nearly twice as fast as other area ISPs - 5 Faster Internet Oregon Launches Statewide Broadband Mapping - 6

Agriculture - Task Force Busts Black-Market Marijuana Grow; Destroys 16k Plants; Watermasters Discover One Million Gallons Water Used Illegally, Code Enforcement Issues $180k Fine - 16

Meet an Entrepreneur - Meet VaporDave, professional graphic designer and illustrator specializing in the cannabis industry - 20

Banking - PBCO Financial Corporation Reports Q3 2022 Earnings - 25

Oregon <> Japan - Business Oregon Announces Team Leading Oregon’s Japanese Representative Office - 27 Higher Education - SOU to expand solar power, move toward energy independence - 28

SBDC - Knowing Your Breakeven Point - 32

A Fine Line by Greg Henderson - The Bloom in the Driveway - 38

Business Models - Finding the best model: could it be a CoOp? - 40

Finding the Best - Southern Oregon Makes a First Impression - 42

Opinion - I am extremely sad about my vote for Tina Kotek in the Oregon Governor’s Election of 2022 by Joel Barker - 44

Featured - Skouting Out a New Taphouse Model - 50

By Press Release hunterfiber.com

Hunter Communications announces 2.5G/2.5G internet, nearly twice as fast as other area ISPs

Oct. 26, 2022 /PRNewswire/ -Today, Hunter Communications announces its fastest internet speed to date, 2.5G/2.5G. This offering makes Hunter the only service provider in its territory to offer fiber-to-the-home internet speeds this high.

The capabilities that 2.5G symmetrical speeds offer are crucial to future progress. Modern advancements like the metaverse, smart homes, and gaming will rely on this kind of technology for years to come. Outside of Hunter's offering, the next fastest option in its service territory is half the speed.

"The industry has seen an uptick in the use of gaming applications and smart home devices, making these speeds critical for Oregonians," said Michael Wynschenk, CEO, Hunter Communications. "We chose to invest in this infrastructure – nearly doubling the speeds of our competitors – to ensure we are on the right side of future progress and advancements. We are excited to see what can be accomplished in the Oregon communities that now have access to these high speeds."

To compliment this work, Hunter is focusing on expanding into new

Award-Winning Oregon Internet Service Provider Announces Fastest

Residential Speeds to Date While Growing into New Markets

markets to give more communities access to modern technology. Most recently, Hunter expanded into the Eugene/ Springfield market, and is on track to offer fiber-optic internet to 5,000 homes by the end of 2022, with significant market growth plans in 2023.

“Eugene/Springfield is in great need of reliable high-speed internet, with speeds that meet current and future demands,” said Stephen Parac, Eugene General Manager, Hunter Communications. “Our community is a hub for so many activities and brings in people from all over the world, so it’s imperative that Lane County has the infrastructure to support these demands. From world-renowned track meets to A-list concerts and thousands of college students, Hunter is working to ensure Eugene/ Springfield remains on the cutting edge of technology.”

Following recent growth and success in downtown Eugene, Hunter will also continue to expand its commercial services into the surrounding areas.

The 2.5G/2.5G residential offer is $149.99/month plus an installation charge. Customers receive price for life, no contract, and a free router. To learn more

about this and other offers, visit Hunterfiber.com.

About Hunter Communications

Hunter Communications provides ultra-high-speed fiber optic broadband internet, data and voice services to business and residential customers in communities throughout Oregon and northern California. With multiGig speeds, no data caps, and competitive pricing, Hunter’s 2,000+mile fiber 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. In 2022, PC Magazine recognized Hunter as one of the top internet service providers for gamers in the Northwest.

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 Hunterfiber.com.

By Press Release FasterInternetOregon.org

A grassroots partnership is working to identify broadband gaps in Oregon and encourage more equity in the distribution of broadband funding

A partnership of Oregon Economic Development Districts, Onward Eugene, SpeedUpAmerica, and Link Oregon launches today as Faster Internet Oregon, a

Faster Internet Oregon Launches Statewide Broadband Mapping

statewide speed test campaign and broadband mapping effort that invites Oregonians to test and report their home Internet speeds or to indicate that they lack an Internet connection at home. This initiative will help identify gaps in broadband service and provide additional data to inform the development of broadband infrastructure

initiatives. The resulting information will enable more accurate assessments of the connectivity needs of urban, rural, and Tribal communities across Oregon.

"Oregon's Economic Development Districts are excited to support this effort so that we have the data we need to bring federal and

state funding to our regions that can fill those gaps in broadband availability," said Jessica Metta, president of Oregon Economic Development Districts.

The Faster Internet Oregon website, www.FasterInternetOregon. org, features an easy-to-use speed test and asks a few simple location questions to enhance mapping accuracy. The speed test takes less than one minute to complete.

All Oregon residents are encouraged to test their

home Internet speeds. This data will be aggregated and added to a dynamic map that key community decisionmakers can use to identify projects and apply for funding. The publicly available version of this data will not be traceable back to an individual household.

Broadband Internet access took on new importance during the pandemic by facilitating telehealth, distance learning, social engagement, and other vital services. However, many remote, rural, and Tribal communities were unable to

adequately access these critical online services during the pandemic. Unprecedented levels of federal infrastructure funding are now becoming available to address these gaps in reliable, affordable broadband.

Tapping into this funding will require Oregon’s counties and regions to identify the levels and locations of greatest need. Faster Internet Oregon was created to gather such information using a crowdsourced approach. This detailed information is critical in developing proposals for

funding through the Oregon Broadband Office and several federal agencies. Better data can support more equitable allocation decisions to help the locations that need it most.

“This collaborative initiative will assist network planners and decision makers across Oregon in identifying the areas with the greatest need and informing the funding process to support infrastructure upgrades and inspire service affordability. This mapping effort is a critical early step towards implementing the broadband technologies and supporting adoption programs

ensuring reliable, affordable Internet connectivity for all Oregonians,” said Steve Corbató, executive director of Link Oregon, the non-profit provider of middle-mile broadband connectivity for the public and non-profit sectors in Oregon.

Data privacy is of the utmost importance to the campaign’s partners. No personally identifiable information beyond the test participant’s address will be stored and address information will not be available for public viewing nor be used for commercial or marketing purposes. The

campaign partners and public decision makers who have signed a data privacy agreement can view the detailed data.

To accelerate participation in this initiative, Faster Internet Oregon is asking Oregon businesses, community and social organizations, educational institutions, libraries, healthcare facilities, and other trusted community hubs to promote this effort to their customers and members. A full outreach and promotion packet, in both English and Spanish, is available and includes postcards,

bookmarks, a flyer, and other collateral for printing or emailing. Plans are underway to add support for additional languages following the initial release.

Residents without connectivity services at home are also strongly encouraged to participate. They can do so by using a cellular device or a connected device at a location in the community (such as a library or other community center, for example) to access the website and indicate in the speed test questions that they have no service at home. This is critical information for assessing broadband gaps.

This simple speed test will develop statistically valid data to reflect the level of Internet

service that Oregonians are experiencing at home and could help inform decisions regarding broadband investments across Oregon over the coming years.

Faster Internet Oregon is supported by:

The Central Oregon Intergovernmental Council, Lane County Government, Link Oregon, and the following Oregon Economic Development Districts: Columbia Pacific Economic

Development District, Greater Eastern Oregon Development Corporation, Mid-Columbia Economic Development District, Mid-Willamette Valley Council of Governments, Northeast Oregon Economic Development District, Oregon Cascades West Council of Governments, SOREDI Foundation, and South Central Oregon Economic Development District.

For more information, visit www.FasterInternetOregon.org or email info@FasterInternetOregon.org

Trimming, clipping and cutting is what we do for our furry friends all day, every day. So when Energy Trust of Oregon showed us how much a new HVAC system could trim our energy costs, the decision was easy. See how they can help your business save at EnergyTrust.org/for business.

Serving customers of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas and Avista.

Luke Coury Oregon Employment Department Employment Economist

The unemployment rate for veterans in Oregon was 3.3% in 2021, according to the Current Population Survey. The unemployment rate for nonveterans was 5.3% in the same period. In the U.S. more broadly, veterans had a higher unemployment rate than their Oregon counterparts at 4.4%.

About 259,000 veterans lived in Oregon in 2021. The

Employment among Oregon’s Veterans

American Community Survey estimates that 71.9% of veterans ages 18 to 64 were in the labor force in 2021. The labor force participation rate of veterans in Oregon was lower than nonveterans (76.7%) and veterans (76.8%) nationally.

In 2021, Oregon’s veterans earned a higher median income ($44,415) than

nonveterans ($36,166), despite being less likely to have a college degree.

Among Oregon veterans age 25 years and older, 31% have a four-year degree or higher, compared with 37% of nonveterans. Alternatively, about 4% of veterans don’t have a high school diploma, as opposed to 9% of nonveterans.

Female veterans, who represented 9% of Oregon’s veterans in 2021, earned a median income of $37,690. That’s less than male veterans’ median of $45,094, but higher than female nonveterans’ income of $30,764.

Veterans are more likely to have a disability, but slightly less likely to be in poverty than the general population.

Among veterans of working age, around 10% lived below the poverty level in 2021, just below the 12% poverty rate among nonveterans. Of the Oregon veterans living in poverty, more than half reported having a disability.

Among veterans ages 18 to 65 living above the poverty line, only 33% have a disability.

More than half of Oregon’s veterans were age 65 years or older and served in the military at least four decades ago during the Vietnam War (98,247 veterans), Korean War (12,950), or World War II (2,985). Veterans who served in the First and Second Gulf Wars totaled 103,908. Only 7% of Oregon veterans were under the age of 35 in 2021, compared with 30% of nonveterans. This older age profile may partially explain why veterans have a lower labor force participation rate, a higher median income, and higher disability rates than nonveterans.

In 2020, the U.S. Census Bureau launched Veteran Employment Outcomes, an

online tool for examining labor market outcomes for recently discharged Army veterans. Tabulated by military specialization, service characteristics, employer industry, and demographics, the interactive tool allows for comparing veteran wages across different factors. The tool can be accessed at https://lehd.ces.census.gov/ applications/veo.

More information about veterans is available in the U.S. Bureau of Labor Statistics’ “Employment Situation of Veterans”.

By Brian Rooney Oregon Employment Department Regional Economist Douglas and Lane counties

Technology Reduces Employment in the Printing Industry

Employment in printing and related support activities has been on the decline since the late 1990s. Advances in digital technology have contributed to the decline in two important ways: first, by changing the marketplace the industry operates in as options to deliver information become more diverse; and second, by

improving productivity so the industry needs fewer workers to do the same amount of work.

Firms in the printing and related support activities industry (which will be referred to as the “printing industry”) print products, such as newspapers, books, periodicals, business forms, greeting cards, and other materials, and

perform support activities, such as bookbinding, platemaking, and data imaging. Some newspapers and other publishers that do in-house printing are classified in the publishing industry of the information sector and are not included here.

An Industry in Long-Term Decline

Employment in the printing industry has been declining for more than two decades, but it remains an important industry in Oregon, employing about 3,800 and paying more than $193 million in total payroll in 2021.

Annual average employment in the industry has dropped about 55% since 2001. Going further back in time, employment in commercial printing had increased until the mid-1990s. It then leveled off for a few years before starting a slow decline in the late 1990s. The decline accelerated during the early

part of the 2000s. After a relatively stable period between 2006 and 2008, the industry, like most in manufacturing, was hurt by the Great Recession. Afterwards, employment was relatively stable, declining slowly over the next seven years. The printing industry again lost jobs at the onset of the COVID-19 pandemic, losing roughly 900 jobs between February and April 2020. It has since regained some of the loss and remained stable, reaching about 3,900 jobs by June 2022.

The support activities for printing subsector is relatively small, with an annual average employment of 97 in 2021, down 88% from the 812 recorded in 2001.

Technology and the Printing Industry

Throughout history, from ancient Chinese block printing, to Johannes Guttenberg’s movable type press, to lithographic offset printing, to today’s digital printing, technological advances have made printing more productive

and of higher quality, increasing the availability of information.

Today, however, other forms of media are distributing information at an increasing rate. First radio, then television, and now the internet and ebooks have taken market share. This has reduced the demand for printed material and contributed to the decline of industry employment.

Although some in-house newspaper printing is not included in this industry, the decline of newspaper circulation is a prime example of how technology has reduced the demand for printed material. Online news has many

advantages. It is often free of charge, has a wider range of information available, and has the ability to provide updates several times a day. This has pushed people online for their news and away from print newspapers. According to the Newspaper Association of America, paid circulation began to drop in the late 1980s. Between 1990 and 2014, weekday circulation in the U.S. dropped from 62 million to 40 million, a loss of 35%. According to estimates from the Pew Research Center, weekday circulation (both print and digital) dropped from 26 million in 2019 to 24 million in 2020. In 2020, digital circulation rose

27%, but it was not enough to make up for the 19% decline in print-only circulation.

Another way technology can reduce employment is through increased productivity. In many manufacturing industries, improvements in productivity eventually make the industry less labor-intensive, reducing employment. One measure of productivity is the output per worker. The graph below measures productivity as the inflation adjusted contribution per worker of the industry to Oregon’s gross domestic product. It shows that, except for the recessionary period from 2008 to 2009 and again in 2012,

the printing and support activities industry has generally increased productivity, going from a little over $50,000 per worker per year in the early 2000s to more than $85,000 per worker by 2014. It has since leveled out at around $80,000 per worker. Although productivity can be increased in other ways, it is largely due to better technology.

Occupations in the Printing Industry

are low for a manufacturing industry. Overall, manufacturing has an average annual wage of $78,400.

Most occupations in printing production, such as printing machine operators and bindery workers, require only a high school diploma and moderate on-the-job training, and tend to pay below the industry average. Others, like those in management or cost estimation, may require education beyond high school and generally pay higher wages.

Outlook

Some of the largest occupations in the printing and related support activities industry are production workers. These are workers who do the printing, binding, and prepress work. Not surprisingly, one of the largest occupations is printing press operator, which makes up 25% of the industry’s employment.

The table below lists the representative large occupations in the printing industry and their wages. The wages listed are for all industries that include the occupation, not just printing and support activities. Wages in the printing and support activities industry are midlevel. The 2021 average annual pay for the industry was $50,400 compared with an overall statewide wage for all industries of $64,000. However, wages in the industry

According to the Bureau of Labor Statistics, national employment in the printing and related support activities industry is expected to decline by roughly 26% between 2021 and 2031. Continued loss of market share to other media and continued automation causes net overall employment to decline in the future at about the same pace as recent years. In the 10 years between 2011 and 2021, the industry declined by about 22%.

Demand for some forms of printed material like packaging and direct mail advertising that are not as susceptible to replacement by electronic formats is expected to increase along with economic and population growth. This will moderate the losses from

technical advances expected elsewhere in the industry.

Most occupations in the printing industry in Oregon are expected to decline. However, with an aging labor force, retirements will help provide opportunities. These opportunities show up as replacement openings in employment projections. The following table shows the expected employment change and replacement needs of occupations most directly related to printing and support activities. These occupations are expected to have no openings created by growth, but are expected to provide opportunities through replacement openings.

After years of decline since the 1990s, including a big drop during the Great Recession and a smaller one due to COVID-19, the long-term projection is for future advancements in technology to further reduce employment in the printing industry. Still, printed products will have a place in our economy for a long time to come. In the future, declines in printingindustry employment are expected to continue at about the same pace as the past decade but openings due to replacement needs will provide opportunities.

By Jackson County Sheriff Press Release

IMET Case 22-7347

Illegal Marijuana Enforcement Team (IMET) detectives served a search warrant on a marijuana grow site near the 9000 block of Hillcrest Road east of Medford.

The property contained approximately 16,827 illegal cannabis plants in 87 “hoopstyle” greenhouses, taking up 5 1/2 acres of the property.

Jackson County Sheriff’s Office (JCSO) deputies, Oregon State Police (OSP) Rogue Area Drug Enforcement (RADE) detectives, and Homeland Security Investigations (HSI) assisted with the warrant service.

On scene, one subject was detained, interviewed, and released. Detectives identified the primary suspects and charges are pending from the

Jackson County District Attorney’s office.

This case was the result of a nine-month long investigation of an illegal/black market marijuana growing operation.

There was no licensing for any type of cannabis growing, handling, or processing at this location. Jackson County Code Enforcement responded to the scene to conduct an independent investigation.

Code Enforcement issued citations totaling $180,000 for 87 non-permitted greenhouse structures, failing to obtain marijuana production approval, non-permitted electrical, solid waste, and camping within a marijuana production area.

Oregon Water Resources Department District 13 Watermasters discovered multiple water violations on

the property including two illegal wells, and an illegal pond.

Watermasters estimated that the black-market marijuana grow illegally consumed roughly 25,000 gallons of water per day, for a total of 1,009,620 gallons over the last 40 days.

This amount of water would fill 50 average sized swimming pools.

This conservative estimation is based upon each of the 16,827 plants using roughly 1 1/2 gallons per day with the average age of the plants being approximately 40 days.

Watermasters issued a Notice of Violation (NOV) to the responsible parties for the appropriation of ground water for irrigation and storage at an illegal commercial operation. Water violations of this kind are subject to both civil and criminal penalties.

While regulatory agencies investigate permitted cannabis operations, IMET is focusing on the black-market marijuana trade in the Rogue Valley. IMET is a multi-agency task force funded by a grant from the Oregon Criminal Justice Commission. The task force includes personnel from JCSO, Medford Police Department, HSI, Code Enforcement, Watermasters, and the DA’s Office.

Dallas Fridley Oregon Employment Department Regional Economist Gilliam, Hood River, Morrow, Sherman, Umatilla, Wasco, and Wheeler counties

A not-for-profit corporation, commonly referred to as a "nonprofit," is organized to achieve a purpose other than to generate a profit. These entities qualify for federal tax exempt status and must reinvest any surplus revenues into efforts that further the mission of the organization. They are prohibited from passing profits on to those who control the organization. These organizations range from trade unions and religious groups to food banks and private schools. Many hospitals are also organized as nonprofit corporations.

For the purposes of this article, the impact of nonprofits presented is limited to employment and wages.

Oregon's 2021 nonprofit stats:

• 9,800 nonprofit establishments with employment and payroll

• 185,900 nonprofit jobs

• 41% of all nonprofits were in the other services industry

• 63% of nonprofit employment was in health care and social assistance

• $62,859 in average annual pay

• $28.01 median hourly wage (third quarter 2021)

• 10% of nonprofit jobs paid less than $15.00 per hour

• Most nonprofit jobs – 73% –paid $20.00 or more per hour

Oregon’s Nonprofits in 2021

Keep in mind that not all nonprofit organizations are employers, and thus are not included in the employment and wage data presented here. Nonprofits in Oregon must register and be certified by the Secretary of State’s office, while the Department of Justice regulates charitable activities.

The Secretary of State’s office provides a searchable database of active nonprofit corporations, available at this URL:

https://data.oregon.gov/Business/ Active-Nonprofit-Corporations/ 8kyv-b2kw

Likewise, the Department of Justice has a searchable database for Oregon charities, here: https://www.doj.state.or.us/ charitable-activities/

How Many Nonprofit Employers Are There in Oregon?

In 2021, there were around 10,800 nonprofit business units that filed an employment report in Oregon. Most of these employers (91%) reported one or more jobs in 2021, but around 900 units missed that threshold. Nonprofit organizations played an integral role in Oregon's economy. They made up 6% of all private businesses in the state and had 185,900 jobs, accounting for 12% of Oregon's private-sector employment. As a share of Oregon's total (private and public) employment, nonprofits made up 10% in 2021, about the same

amount as the state’s manufacturing industry.

Nonprofits by Industry

Health care and social assistance dominated Oregon’s nonprofit employment in 2021, representing 116,400 jobs or 63%. Other services included 22,000 nonprofit jobs and educational services employed 19,100. Together, the top three industries represented 85% of Oregon’s total nonprofit employment.

Nonprofit Hospitals: Health Care and Social Assistance

Health care and social assistance led nonprofits with 116,400 jobs or 63% of Oregon's nonprofit employment. Like other services, there is diversity in the industry from assisted living facilities to mental health services. However, hospitals completely overshadow the sector’s employment. Oregon’s nonprofit hospitals (general medical and surgical; psychiatric and substance abuse; and specialty) included 75 reporting units in 2021 and employed 55,800, or 48% of the nonprofit health care and social assistance industry's total employment. Hospitals in Oregon (government and private) included 99 reporting units and provided 67,200 jobs in 2021, with nonprofit hospitals representing 83% of the employment.

Service Organizations

Other services represented about 12% of the state's nonprofit employment (22,000 jobs). The correlation between other services and nonprofits makes sense. It is the industry that includes religious, grant making, civic, professional, and similar organizations. Places of worship, the Boys & Girls Club, The United Way, and local chambers of commerce are some of the most widely recognized nonprofits in Oregon, and there are a lot of these organizations across the state. Other services accounted for 41% of Oregon's nonprofit organizations (4,100).

Educational and Employment Training Providers

Educational services accounted for 10% of Oregon's nonprofit employment in 2021 with 19,100 jobs. The organizations in this industry range from preschools and tutoring services to colleges and employment training places. Nonprofit elementary and secondary schools represented the biggest slice with 9,500 jobs (50%) and 333 reporting units (40%). Nonprofit colleges, universities, and professional schools accounted for 7,900 jobs (41%) while representing 21% of the nonprofit educational services provider reporting units. Other schools and instruction, including sports training, provided 1,100 jobs (6%), and 20% of nonprofit educational services reporting units.

Pay at Nonprofits Follows Industry Standards

Oregon's private for-profit industries paid an average annual wage of $63,116 in 2021, compared with $62,859 for nonprofits. Although the average wage gap between for-

profit and nonprofit employers was just $300 (0.4%) in 2021, their industry profiles were quite different.

In 2021, six industry sectors reported higher annual average wages for nonprofits compared with for-profit businesses. Nonprofits in financial activities paid an average $89,340 in 2021, which exceeded for-profit pay by about $3,400 or 4%. Leisure and hospitality also favored nonprofits by $6,629 (+25%), despite having a relatively low annual average pay at $33,506.

Health care and social assistance, Oregon’s largest nonprofit industry, enjoyed a pay advantage of nearly $18,600 or 37% over for-profit employers, paying an average $69,325 in 2021. Other services paid $37,364 in 2021, falling about $10,400 or 22% below for-profit employers. Educational services paid an average $46,531 in 2021, exceeding for-profit pay by about $4,700 or 11%.

Rural Versus Urban Oregon's 23 nonmetro counties provided a home base for 1,700 nonprofit employer units in 2021 or 7% of all nonmetro private industry employer reporting units. Nonprofit organizations provided about 22,500 rural Oregon jobs, or 11% of all nonmetro private employment. Rural nonprofit pay averaged $53,919 in 2021, which exceeded the average for all private industries by 21%, around $9,400. In Oregon’s metropolitan areas, nonprofits provided close to 163,400 jobs in 2021, or 12% of all metro private employment. With about 8,100 employer units, metros provided a home base for 83% of Oregon nonprofits, and nonprofits represented 6% of all metro private

employer units. In 2021, nonprofit pay averaged $64,090 in metro Oregon, falling 2% (about $1,000) below the all private industries average. Only four rural counties provided more than 1% of Oregon’s nonprofit jobs in 2021. Douglas County led rural Oregon with 3,500 nonprofit jobs, or 1.9% of Oregon’s total, followed by Klamath County (1.5%), Umatilla County (1.2%), and Wasco County (1.1%). Metropolitan areas commanded 88% of Oregon’s nonprofit employment led by Multnomah County’s 33% (about 60,300 jobs). Together with Washington County (10.7%) and Lane County (8.2%), Oregon’s top three metro counties represented 51% of all nonprofit jobs in 2021.

The Future of Nonprofit Employment

The future of nonprofit employment in Oregon is directly linked to growth in health care and social assistance. The industry reached 267,400 jobs in 2021, an increase of about 31% or 64,400 since 2011, including the reclassification of more than 15,000 home care workers to health care and social assistance from state government in 2018. With 63% of Oregon’s nonprofit employment in 2021, health care and social assistance will continue to lead its job growth. Health care and social assistance represented an even larger share of rural Oregon’s nonprofit employment and payroll. The industry provided 74% of rural Oregon’s 22,500 nonprofit jobs along with 84% of its $1.2 billion payroll.

By VaporDave

Meet VaporDave, professional graphic designer and illustrator specializing

in the cannabis industry

VaporDave is a long-time Southern Oregon icon and graphic designer, specializing in bringing your business to the top where it belongs, as he has for so many other Oregon businesses. Primarily working as a package and brand designer in the cannabis and craft beer industries, Dave received the nickname Vapor at a poker game in Ashland way back in 2005, Dave decided to go with the nickname that was way ahead of its time, and set up his graphic design business at VaporDave.com. Since then he has been able to do things like hang out with Tommy Chong all over the world, have Snoop Dogg pose in front of

his work at a Eugene dispensary, and go to the German Spy Museum in Berlin with the wife of the legendary High Times author and contributor Ed Rosenthal.

Considering himself a guru in the use of the Adobe Creative Suite software—InDesign, Photoshop, Illustrator and Acrobat Pro—Dave credits his ten years as the in-house graphic designer and layout person at HomePower magazine (another longstanding Southern Oregon business that sadly ceased operations in 2015) as the origin of his skills working not just with graphic design software but as part of a group of talented professionals.

When HomePower folded in 2015 VaporDave turned his attention to Oregon’s biggest cash industry, cannabis, becoming the Creative Director of the ICBC (the International Cannabis Business Conference, and its smaller spinoff the Oregon Marijuana Business Conference, or OMBC). This super fun and fast-paced job allowed Dave to connect with the top players in the cannabis space around the world.

Having designed the logo way back in 1996 for the biggest bong company in the world, Jerome Baker Designs out of Eugene (where Dave was completing his Bachelor’s Degree from University of

Oregon), Dave gained a considerable amount of street cred in the field of graphic design for the cannabis industry, and continues to this day to provide graphic design and illustration services to the cannabis industry, including packaging design, brand creation, print and web advertising, and even huge interior murals for cannabis dispensaries.

Dave’s favorite place in the world besides Southern Oregon is the city of Amsterdam, where his two favorite substances, coffee and cannabis, are sold and consumed on-site.

VaporDave’s dream business would be to open his own Amsterdam-style coffeeshop in Southern Oregon.

Until then, however, Dave loves the challenge of using his creativity to make your brand as good as it can be, so head on over to VaporDave.com yourself what he can do for you.

WHO IS VAPORDAVE?

My given name is David Emrich and I have been a professional graphic designer and illustrator since the 1990s. With a Certificate of Completion in Computer Graphics from the Philadelphia College of Art and a Bachelor's Degree in Graphic Design from the University of Oregon, I have been actively involved in creative projects for over 25 years I work on the Macintosh platform because back when I learned Adobe's flagship software, Adobe Photoshop, it wasn't even available for Windows I built this entire website from scratch on the WordPress platform using the best WordPress page builder there is, ThemeCo Pro. My love of working with computers is matched only by my love of creating fine art, and I include below some examples of my work.

By stessa.com Email Newsletter

Positive employment news

Interest rate rises

As expected, the Federal Reserve last week raised its benchmark rate by another 0.75%, to a range of 3.75% to 4%, the highest level in 15 years. According to Realtor.com, the 30-year benchmark rate dipped slightly but is still hovering around the 7% mark and is likely to push higher in the near term.

Source: Realtor.com (November 2021)

“After the meeting, Jerome Powell indicated that the Fed plans to evaluate the impact of

this year’s aggressive monetary tightening on economic indicators and inflation, with the possibility of scaling back the rate increases. However, he made it clear that any slowdown in monetary policy is premature, and that rates are likely to end up much higher than initially expected.”

Following the rate hike announcement, PBS released an article outlining that despite the rapid rise in rates, the Fed has signaled that a rate increase deceleration may be in the works. The Fed noted that they need to consider the cumulative effect of rate hikes on the

economy, and that these take time to fully affect the impact of inflation. This suggests that they may not be looking to raise rates as quickly over the next few meetings.

Howard Schneider and Ann Saphir of Reuters agree, noting t hat “[e]ven if policymakers do scale back future increases, he [Federal Reserve Chair Powell] said, they were still undecided about just how high rates would need to rise to curb inflation.”

Jessica Dickler of CNBC reports that these rate increases have dramatically impacted the affordability of homeowners. At the beginning of 2022, if

someone qualified for a $300,000 mortgage, with the current rate hikes, that same qualification now sits at only $200,000.

Employment

The U.S. Bureau of Labor Statistics released its October employment conditions report last week, and the results were fairly positive. According to the Mortgage Bankers Association (MBA) Deputy Chief Economist Joel Kan:

“Job growth for October was slightly stronger than expected, with a gain of 261,000 jobs. The number of jobs added to the economy did slow from September’s total, but this was still a strong positive gain that kept the monthly average for 2022 at over 400,000 jobs added per month. Most of the October growth was in the service sector, while the goods producing

industries saw the lowest gain since January 2022. Construction employment was essentially flat over the month, consistent with the slowdown in the home building sector.”

More specifically to real estate, cracks are showing in the job numbers, according to Orion Jones of The Real Deal, highlighting that the housing market is slowing down. This includes losses in warehousing and real estate leasing jobs. That said, leisure and hospitality were bright spots, adding 20,000 jobs in October.

According to Jing Fu of the National Association of Homebuilders (NAHB), “Over the last 12 months, home builders and remodelers added 105,300 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained

1,195,000 positions.” And, although unemployment increased by 0.2%, we are still seeing strong employment numbers:

Source: NAHB (November 2022)

Finally, George Ratiu, senior economist at Realtor.com, had this to say about the October employment numbers as it relates to real estate:

“For the Federal Reserve, a tight labor market amplifies the concern that workers will retain an advantage during wage negotiations, leading to higher incomes and continued pressure on prices. At the same time, coming out of a global pandemic, which displaced millions of workers and led to a two-and-a-half year recovery, the solid job market is keeping Americans on a stronger financial footing, especially amid soaring prices for goods, services and housing. For real estate markets, rising employment and pay are welcome news, as they may help to partially offset the significant headwinds brought about by surging mortgage rates.”

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By Peoples Bank Press Release

PBCO Financial Corporation (OTC PINK: PBCO), the holding company (Company) of People’s Bank of Commerce (Bank), announced today its financial results for the 3rd quarter 2022.

Highlights

• Third quarter net income of $3.0 million, or $0.59 per diluted share

• Steelhead gross factoring revenue of $1.9 million, a 6.2% increase from Q3 2021

• Core earnings (excluding PPP fee income) up 73.9% from Q3 2021

• Investment securities increased $42.6 million, or 20.9%, over Q3 2021

The Company reported quarterly net income of $3.0 million, or $0.59 per diluted share, for the 3rd quarter of 2022 compared to net income of $2.7 million, or $0.53 per diluted share, in the same quarter of 2021. Earnings per share for the trailing 12 months were $2.14 per share, down from $2.28 per share for the prior twelve-month period.

Deposits decreased $12.2 million, a 1.6% decline from the prior quarter ending June 30, 2022. Over the last 12 months, deposits contracted by $12.1 million, also a decline of 1.6%. “During 3rd quarter, the Bank experienced a decrease in deposits as customers sought alternative investments at higher yields on their non-operating cash balances,” commented Joan Reukauf, Chief Operating Officer. “The Bank is in a position where it does not have to aggressively compete for high-cost deposits and some deposit runoff was expected. Although deposits declined during the quarter and year to date, the Bank continues to have excess liquidity available to fund loans and add to the investment portfolio,” added Reukauf.

“Portfolio loans were flat during the 3rd quarter of 2022, compared to 2nd quarter of 2022,” commented Julia Beattie, President. Excluding PPP loans in the portfolio as of 9/30/21, portfolio loans were up $11.4 million from the same quarter, prior year, a 2.6% increase. “Loans have been relatively flat during the year as the Bank made a conscious decision this year not to compete for loans based on historically low rates until the markets stabilize,

PBCO Financial Corporation Reports Q3 2022 Earnings

instead focusing on high quality loan growth,” added Beattie. “These kinds of economic cycles do not favor a high growth strategy - quality and safety tend to win out as consumers and businesses adjust to the new reality.” Future reports will exclude commentary on the PPP program as it is no longer relevant to the financial statement discussion.

The investment portfolio increased $42.6 million or 20.9% from the 3rd quarter of 2021. During the most recent quarter, investments increased $1.7 million from June 30, 2022, or 0.7%, and the average life of the portfolio decreased from 5.0 to 4.6 years. With the steep rise in market rates during 2022, the Bank has limited investment purchases to short-term maturities of less than 2 years. As of September 30, 2022, the gross unrealized loss on the investment portfolio grew to $32.4 million or 11.6% of book value. Securities income was $979 thousand during the quarter, or a yield of 1.5%, versus $903 thousand or a yield of 1.4% for the 2nd quarter of 2022.

Classified assets were up modestly from the prior quarter as total loans past due or on non-accrual increased slightly, as a percentage of total loans, from the prior quarter to 0.38% versus 0.22% as of Q2 2022. During the 3rd quarter, the Allowance for Loan and Lease Losses (ALLL) was updated based on changes in loans and updated economic expectations, which were factored into the Bank’s analysis. As of September 30, 2022, the ALLL was 1.08% of portfolio loans and the unallocated reserve stood at $790 thousand or 16.3% of the ALLL.

Third quarter 2022 non-interest income totaled $3.0 million, an increase of $245 thousand from the 3rd quarter of 2021. During Q3 2022, Steelhead Finance factoring revenue increased $111 thousand, a 6.2% increase over the same quarter of 2021. Conversely, mortgage income decreased $333 thousand, or 54.1%, from the 3rd quarter of 2021, a trend that began with the rising interest rates in Q1 2022. “Today’s mortgage rates, although up significantly from a year ago, are still reasonable when compared to long-term averages,” commented Echo Hutto, SVP and Manager of the Mortgage Division for People’s Bank. “As home purchasers, home sellers and real estate professionals become more comfortable with the new rate cycle, home prices should reflect borrower’s ability to pay and activity should pick up,” added Hutto.

Non-interest expense totaled $5.5 million in the 3rd quarter, down $332 thousand from the same period in 2021. Notably, advertising expenses were the largest driver for the decrease, down $278 thousand in the 3rd quarter of 2022 versus the same period in 2021 when the Bank expensed $250 thousand in donations toward housing relief support for survivors of the 2020 Alameda Fire. Also notable was the decrease in personnel expense of $597 from the prior quarter of 2022. The Bank did not accrue for a quarterly bonus during 3rd quarter as loans and deposits have not tracked with goals established for 2022, the result of the Bank adjusting its strategy to deal with higher interest rates. Salaries and commissions were down $70 thousand and $64 thousand during 3rd quarter, respectively, due to several vacant positions and the slowdown in mortgage production noted above.

As of September 30, 2022, the Tier 1 Capital Ratio for PBCO Financial Corporation was 10.1% with total shareholder equity of $65.0 million. During the quarter, the Company was able to augment capital through earnings while assets also decreased with the decrease in deposits. The Bank’s Tier 1 Capital Ratio was 12.8% at quarter-end, up from 12.7% as of June 30, 2022. The Company also had unrealized losses on its investment portfolio, net of taxes, of $23.6 million, which is attributed to changes in market value in the current rising rate environment. The net unrealized losses in the investment portfolio resulted in the decline in Book Value Per Share and Tangible Book Value per share from prior periods. “Although the unrealized loss in the investment portfolio increased from the prior quarter with the increase in market rates during the same period, the Bank continues to maintain strong liquidity and access to multiple alternative sources of liquidity. The Bank has a very strong capital position that continues to be well above the threshold to be considered wellcapitalized,” commented Lindsey Trautman, Chief Financial Officer.

“While the Company’s total assets shrank from the prior quarter, the Company continued to provide solid core earnings, which has allowed the Company to maintain a strong position given the current economic uncertainty,” commented Julia Beattie.

OREGON

By Press Release https://www.oregon.gov/

Continuing a forty-year presence in Japan, Business Oregon announces its new representative to lead Oregon’s Japanese Representative Office and represent the state of Oregon’s business and trade interests in Japan. Masao Kumori will lead Oregon’s team in Japan. Masao has worked with more than 70 major Japanese companies on global investment opportunities and represented North East England in Japan for 23 years to attract investment, collaborate on research and development, and make business-tobusiness connections. The Japan Representative Office works with Business Oregon staff and stakeholders to increase global business opportunities between Japan and the state of Oregon.

“The rich cultural, education, and business ties between Oregon and Japan have been built through years of dedicated effort from representatives from our state working with our Japanese counterparts,” said Sophorn Cheang, Director of Business Oregon. “Our new group operating Oregon’s Japanese Representative Office will continue this tradition and strengthen our foreign partnerships, while looking for new emerging opportunities.”

The Japan Representative Office helps Oregon exporters and small businesses grow global sales in the Japanese market, coordinates Oregon trade activities, and develops international business recruitment strategies to increase Japanese investment into Oregon. Masao and his team will operate the office in Japan, and also leverage the

Business Oregon Announces Team

Leading Oregon’s Japanese Representative Office

global resources of Wavteq, a globally recognized investment, trade, and economic development consultancy that Oregon is contracting with to support the state’s global development work.

“Global business, regardless of which industry you are in, is moving at an incredibly rapid pace,” said Masao Kumori. “New policies, companies, and economic realities are shifting the nature of cross-border trade and investment demand, making it essential to improve connections, partnerships, and tools to drive international commerce. Oregon’s competitive advantages provide a unique position to capitalize on these opportunities. The Wavteq team and I are eager to begin our work to advance the state’s long and prosperous business relationships in Japan.”

“We are incredibly excited to represent and help facilitate Japanese cross-border investment and trade opportunities for Business Oregon,” said Dr. Henry Loewendal, CEO of Wavteq. “A talent-rich labor force, competitive industry clusters, highly desirable creative culture, quality of life, and strong track record of export success are among the many reasons we are encouraged for future business growth.”

Oregon and Japan have a strong relationship that spans many decades of trade. Japan is Oregon’s 6th-largest export market with Oregon exports to Japan totaling $1.6 billion in 2021. Semiconductors and other electronic components are Oregon’s top exports

into Japan, valued at $365 million last year.

Japan is Oregon’s largest export market for food and agriculture products such as oilseeds, grains, fruits, vegetables, wood products, and other specialty agricultural products. In addition, the aerospace industry is another opportunity for Oregon exporters to Japan, with $108 million in value exported last year.

Japan is one of Oregon’s largest sources of Foreign Direct Investment. Currently, more than 150 Japanese companies have operations in Oregon. Governor Kate Brown has continuously supported and cultivated Oregon’s close relationship with Japan. During Governor Brown’s tenure, the number of Japanese companies in Oregon has increased by 26%, and Oregon’s exports to Japan have increased by 50%.

Oregon is conducting a business development mission to Japan and Korea next month led by Governor Brown, from October 14 through October 26. This important global mission to Asia consists of activities to promote Oregon products, build relationships, and attract Japanese and Korean business investment into the state. While COVID put a hold on inperson trade activities, this trip will be the first Governor-led mission coming out of the pandemic.

Business Oregon can help Oregon small businesses enter new markets and has some matching grant opportunities as well. More information is available online at biz.oregon.gov. Also sign up for future global trade news here.

HIGHER EDUCATION

By Press Release https://news.sou.edu/

Southern Oregon University has been awarded a $1 million grant from the Oregon Department of Energy to expand solar power production on campus, in the next step toward its ambitious goal of becoming the first college or university in the U.S. to generate 100 percent of the electricity used on campus.

The award from ODE’s Community Renewable Energy Grant Program will add solar arrays to The Hawk Dining

SOU to expand solar power, move toward energy independence

Commons and the Lithia Motors Pavilion/ Student Recreation Center complex, and will pay for the installation of battery storage at the Hawk to support students, first responders and the broader community, if needed.

“This is a tremendous opportunity for SOU, and for our students and the Ashland community,” SOU President Rick Bailey said. “This grant supports our campus-wide efforts to expand

sustainability as an integral part of our everyday operations. It also is a significant milestone in our entrepreneurial mission to reduce costs and broaden revenue, easing the financial burden on students and their families.”

Solar energy production is a key element of SOU’s innovative plan to develop new revenue streams and reduce dependence on the two traditional funding sources for

public higher education nationwide –tuition and state funding. The proportions of funding from those two sources has flipped over the past 25 years in Oregon, from two-thirds state money and one-third tuition, to exactly the opposite.

Energy self-sufficiency will save SOU at least $700,000 per year in utility costs and President Bailey plans to expand the program from there, with additional solar installations that will enable the university to generate income by selling electricity to local utilities. He achieved that on a smaller scale at Northern New Mexico College, where he served as president before being hired at SOU in January.

SOU is also awaiting confirmation of a $2 million federal grant for its campus-wide solar build-out. Oregon’s U.S. senators, Jeff Merkley and Ron Wyden, have placed SOU’s request in the senate’s draft appropriations bill for the 2023 fiscal year, which is currently in a process known as “Congressionally Directed Spending.” The federal grant, if awarded, will pay for additional solar arrays on SOU’s parking lots and rooftops.

For the state grant that was awarded this week, SOU submitted its application in July for $1 million toward a project that will cost a total of $1.34 million. It is considered both a community renewable energy project and a community energy resilience project, under the definitions of ODE’s Community Renewable Energy Grant Program.

The program was created by the 2021 Legislature, which set aside $50 million for projects throughout the state over the next three years – with $12 million

available in the 2022 funding cycle. The program – open to Oregon tribes, public bodies and consumer-owned utilities –drew a total of 56 applicants who submitted 68 applications, with 20 projects awarded grants in the program’s first round.

“These new solar projects at SOU will take our efforts to the next level,” SOU Sustainability Director Becs Walker said. “We are pursuing all viable opportunities to generate renewable energy on campus. This will help us financially as well as set us on the pathway to achieve carbon neutrality. Our university is helping to lead the way for our community, region and the state of Oregon.”

SOU chose the Hawk Dining Commons and Lithia Motors Pavilion/Student Recreation Center projects for this year’s state funding based on site readiness, community resiliency and public welfare factors. SOU will continue to implement energy conservation and energy efficiency measures as it increases its solar.

The university currently has nine solar arrays on its Ashland campus with a total output of 455 kilowatts, plus an array at the Higher Education Center in Medford and a pole-mounted array installed last year by a nonprofit on land leased from SOU. The two new arrays supported by the state grant will increase SOU’s solar capacity by a total of 359 kilowatts.

SOU’s first solar array – a 6 kilowatt project with 24 solar panels – was installed on the Hannon Library in 2000. A total of five new arrays have been added in just the past three years, in projects funded through a combination

of private investors, grants, the student body and the university. SOU’s Hawk Dining Hall & McLoughlin Residence Hall each have solar hot water systems installed to augment the natural gas domestic water heating, and the campus also has three net-zero buildings – they create as much or more energy than they use.

Solar energy production is one of four opportunities that SOU is currently pursuing in its effort to be more entrepreneurial in its approach to revenue generation. The university has also initiated a project to raze its vacant Cascade housing complex, which was completed in the early 1960s, and replace it with an innovative senior living facility that produces synergy between its residents and the university. Funding for the demolition has been approved by the state and is expected to begin in the next few months.

Other projects that will produce revenue or reduce expenses for SOU include the establishment of a University Business District in southeast Ashland –discussions are underway with the local business community – and replacement of its operational software with the cutting-edge Workday platform, which eventually will save the university about $750,000 per year in recurring costs.

The projects are part of an effort to “reengineer” SOU’s financial structure, reducing expenses to better reflect current enrollment and academic interests, expanding revenue sources and positioning the university for strategic growth into the future.

By Marshall Doak, SOU SBDC Director

Knowing Your Breakeven Point

method. Unfortunately, this third option is rarely a good idea, as maintaining a ‘nodecision’ trajectory during deteriorating business conditions has been proven to cause failure.

In line with recent articles regarding various aspects of surviving inflationary and recessionary times, I’d like to discuss how a business can figure out how to react in these situations. Gaining intelligence and insights through reading articles or watching videos and acting on the advice, or initiating changes to your business operations based on ‘gut instincts’ can be a good

thing to do, but can also lead to disaster if the strategies are not appropriate for the situation.

If you are looking at uncertain upside returns and high probabilities for downside disaster, what are you to do? How are you going to make good decisions? Perhaps you have chosen option #3, which is to do nothing, hoping for a better outcome through this

The first solution to this dilemma is to look for tools to measure and evaluate your business’s performance with. One such tool is to understand what breakeven points are and how to use them. As a primer, a person could say that April 18, 2023 (Tax Freedom Day 2023) is a breakeven point, as this is the day next year that the annual tax burden is fulfilled and that the tax cost for businesses has been satisfied through revenues produced, on average.

Coming closer to home, within a business breakeven points can be determined through simple means, depending on what is needing determination. For instance, many businesses want to know how much production, business

Photo by Campaign Creators on Unsplash

operations, or units produced or sold need to happen in order to satisfy the firm’s fixed costs? The point at which the levels of operations produce sufficient revenues to satisfy the fixed cost burden is a breakeven point. In the figure on the right, this point is at the intersection of the lower angled (total sales) line at the bottom of the red triangle and the horizontal fixed-cost line, shown as a small yellow dot.

More importantly, to most businesses, the point marked ‘breakeven point’ on the diagram is the one most business owners want to know. At this point, all of the fixed costs and all of the variable costs involved in the manufacture and delivery of the good are satisfied through sales and the net is zero to the owner. From here on, the business starts earning profits while still covering all of the costs involved with the manufacture of the goods. Determining this break-even point is a powerful tool to use when you want to understand how your business is performing.

Several considerations to think about when using this are:

• All of the relevant costs a business experiences are accounted for in the ‘Total Cost’ figures;

• Make sure the figures used accurate and are based solely on the business’s performance as reflected in the Income Statement;

• The more accurate the numbers are, the better use they are in determining product or service pricing, based on the company’s experience. This can be especially useful when price increases are being experienced for the production inputs that build finished products revenues;

• This model applies equally to service businesses, retailers and manufacturers;

• Once the breakeven point is reached, additional production and sales contribute directly to the bottom line profitability, making it possible to increase profits through discounting as a purposeful act and not as a reactionary response to market pressures;

• This model gives insights into aspects of cost

accounting within a business to assist the decision-making process, moving that process away from exclusively using ‘gutfeelings’.

Most small business owners think it is important to keep good accounting records so that they can avoid tax problems, or to make sure they are good stewards of their employees needs.

These are all important considerations. It is when the realization hits that the accounting information can be used to make accurate and timely decisions to manage the business to be productive and profitable, even in recessionary and inflationary times, that the real understanding of how powerful this information can be is achieved.

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 Lynn Wallis Oregon Employment Department Workforce Analyst Clackamas County

The nation’s total nonfarm employment has now returned to pre-pandemic levels, even though not all industries have recovered all of the jobs lost during the COVID recession in spring 2020. During the recession, the nation lost 20.7 million jobs from February to April 2020.

Similar to the national trend, Oregon’s pandemic job losses totaled about 286,000 in spring 2020. Although the

Working from Home since COVID — the New Work Experiment

state has now recovered its recessionary job losses, the pandemic initially shuttered many workplaces, both in Oregon and nationwide, plunging many businesses and organizations into an unplanned experiment of remote work or working from home. Now, nearly two and a half years later, many businesses and organizations have created new work norms that include the remote home environment as an option for workers who can work from home.

Compared with the nation as a whole, Oregon had a higher portion of its workforce working remotely during the past decade. The share was slowly growing prior to the onset of the pandemic, according to data from the U.S. Census Bureau American Community Survey. Back in 2012, 6.2% of Oregon’s workforce and 4.4% of the U.S. workforce worked from home. By 2019, the share reached 7.3% of Oregon workers and 5.7% of U.S. workers. From

2019 to 2021, the percentage of remote workers significantly increased by 15.4 percentage points or by nearly 300,000 workers in Oregon, reaching 22.7% of the Oregon labor force. In 2021, there were an estimated 446,000 workers working remotely in Oregon and 27.6 million in the U.S.

Remote Work More Common for Workers with Higher Education and Women

According the Bureau of Labor Statistics (BLS), both gender and educational level seem to make a difference in the number of workers

working remotely. In 2021, a higher percentage of women worked from home in the United States. During 2021, 43.5% of women working full-time and 33.8% of women working part-time worked from home, compared with 36.7% of men working full-time and 25.5% of men working part-time.

According to McKinsey & Company’s article Women in the Workplace 2022, only one out of 10 women reported wanting to work mostly at the work site, and many women pointed to remoteand hybrid-work options as one of their top reasons for joining or staying with an organization.

A worker’s educational level also plays a part in determining whether they have the option of working from home or need to report to the workplace. The BLS estimates that more than two-thirds of workers with an advanced degree and over one-half of workers with a bachelor’s degree worked at home in 2021. In contrast, less than one-third of workers with some college or an associate degree, 19% of workers who were high school graduates, and about 6% of workers who had less than a high school diploma worked at home in 2021.

Occupations with Telework Available

Remote work was available to nearly 10% of all workers in the U.S. during 2021 according to the BLS Occupational Requirements Survey. The BLS counted workers as having remote work available if they were allowed to complete critical job tasks from home for an agreed-upon portion of their workweek. The largest share of workers who were allowed to work remotely included legal, computer and mathematical, and business and financial occupations.

Occupations Not Likely to Have Telework Available

Not all types of work can be done at home. The necessity to be at a job site is a major reason why some occupations are less likely to have remote work as an option. According to the BLS, the following occupational groups had high percentages of workers who did not have remote work options in 2021:

• Building and grounds cleaning and maintenance

• Construction and extraction

• Educational instruction and library

• Healthcare practitioners and technical

• Healthcare support

• Installation, maintenance, and repair

• Office and administrative support

• Production

• Personal care and service

• Remote Work Now and Into the Future

The work from home experiment created by the COVID pandemic may have changed how we work and expect to work into the future. Working from home is a relatively new experience for a majority of workers with jobs that can be done remotely.

In June 2022, Gallup carried out a national survey of 8,090 remotecapable U.S. full-time employees. They wanted to answer three key questions:

How many remote-capable employees are currently working hybrid or fully remote?

Where do these employees expect to work long-term and where would they prefer to work?

What happens when remote-capable employees do not work in their preferred location(s)?

The results indicated that in June 2022, five out of 10 employees were working hybrid (part of their week at home and part on-site); three out of 10 employees were exclusively working remotely; and two out of 10 employees were working entirely on-site. The percentage of remote and hybrid workers increased by 38 percentage points from the prepandemic 2019 level, while the

percentage of employees working onsite fell by 38 percentage points.

Where do remote capable employees expect to work in the future? Workers expected the percentage of hybrid workers to grow by 6 percentage points in 2022 and beyond, the percentage of exclusively remote workers to fall by 7 percentage points, and the percentage of on-site workers to remain about the same.

When these employees were asked where they preferred to work, 34% said they preferred exclusively remote work, 60% said they preferred hybrid work, and only 6% said they preferred working on-site.

The Future of Work

Just two years after the onset of the COVID pandemic, about six out of 10 U.S. workers who reported that their jobs could mainly be done from home, were working from home all or most of the time according to the PEW Research

Center’s January 2022 survey, COVID-19 Pandemic Continues to Reshape Work in America. The survey showed that the motivation for working from home has shifted considerably since 2020, and more workers who have the option of working remotely report they are working from home by choice rather than necessity. For those who have an on-site option for work, 61% report they are now choosing not to go into their workplace while 37% report they are working from home because their workplace in now closed or unavailable.

It should be noted that the majority of U.S. workers (60%) don’t have jobs that can be done from home, and others who do have remote types of jobs continue to involve some in-person interaction with others in their workplace.

What remote work will look like in the future will depend on whether companies and organizations will continue to embrace remote work in larger numbers and utilize a fully remote model, or adopt a hybrid approach that requires workers to come into the office for a portion of their workweek. The future of this great work experiment will be determined by how both employers and employees respond to the opportunities and challenges presented by more than two years of learning to work differently.

The Bloom in the Driveway

Photo by olena ivanova on Unsplash

The world is falling apart and there is no saving it. That’s what I’m hearing on all the news outlets. And from seemingly every candidate for political office, challenger, and incumbent. And their followers. Cheer up people and try to be nicer.

Let’s not forget the dandelion. There’s no shortage of bad news, which is predictable since bad news sells and good news doesn’t. If my football team wins then that’s good news, unless you favor the team that lost – that’s bad news. Headlines tell us of disasters in vivid detail with all the drama and suffering horribly explained, photos adding more emphasis. Forget that children helped an elderly couple across the local street and gave them welcomed hugs, no one really cares.

Being nice doesn’t sell very well. Empathy? What does that mean? If you have it, it makes you look weak. Too bad, it’s a great idea to show understanding of your fellow human’s point of view. It isn’t necessary to always agree with them, but you shouldn’t go to war with them either.

Its beyond time to make a change in our behavior. Better late than never, but still urgent. Possibility is never impossible.

There’s a seam in the concrete that covers my driveway. Its where dust gathers, ants go marching on and wild seeds find a place to settle.

The seam is where weeds find a root, where just enough moisture gathers to sprout a tiny little seed lifted there by fuzzy helicopter feathers from its origin in a nearby field. A dandelion with more responsibility than most will realize. It helps to feed the bees in the early spring before the more robust fruit tree blooms take the responsibility.

We humans struggle to be tolerant, always finding something to complain about or someone to criticize even when our own faults are greater than those of the victims of our assaults. Dandelions just do their jobs; drive over them with your car, pull them out of the ground or ignore them, they will persevere. Bright as the sun, they are easy for bees to find in the most difficult of spring weather. They do what they are meant to do, provide enough food for a short

time so other species can survive. No complaints, no whining or name-calling, smiling when the world is frowning, they carry on.

We don’t have to sing Kumbaya around the campfire every evening but our divisive attitudes and merciless behavior should be tempered enough to ease the behavior and to quell the rebellions, keeping us from embarrassing ourselves. If humans are truly as intelligent and capable as we think we are, we should be able to call a truce long enough to understand one another just a little better and perhaps find common ground that will put us on more peaceful paths.

The next time you see a dandelion smiling up at you from the sidewalk or your driveway, kneel down and touch the flower and say thank you for being such a good example.

Greg

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

by Greg Henderson

By Daniel Scotton, Equus Workforce Solutions

As snow begins to kiss the peaks around Ashland, and the residents begin to turn the dials on their thermostats, the air of change is inescapable. I had the opportunity to sit in a small, characteristically Ashland coffee shop with Annie Hoy, our Cooperative Development Specialist for

Finding the best model: could it be a CoOp?

Southern Oregon, representing the Northwest Cooperative Development Center.

She began our conversation with a powerful phrase, “Brown rice started the Ashland Food Co-op”. What is now an institution was grown from the smallest of

seeds, just a handful of families on the hunt for more nutritious options. They banded together and in making a deal with Mountain People Warehouse, then a small regional distributor of natural and organic foods, ordered bulk brown rice, had it delivered to one of the organizers' driveways,

and divided it between families from there.

Cooperatives are a concept that have existed for hundreds of years, historical consensus placing their origin in the mid 1800s; recent socio-economic trends drove their popularity to new levels. In particular, Annie noted a large increase in the rationale of those applying for NCDC services being the desire to convert their existing small business to employee or community owned, rather than attempt to sell it to the highest bidder. The process itself is a little no more complicated than a simple sale. But, thanks in no small part to the work of Cooperative Developers such as Annie, worker owned co-ops provide the added benefit of ensuring that the employees of said business are well taken care of and enjoy the benefits of ownership. In the small business realm, employees become more than a numerical necessity, they are as much a part of the family as the kids and grandkids. Relationships that are fostered over many working hours of banter,

tears from stress, and complicated life events, shape these seemingly transactional connections into true familial bonds. These ownership arrangements, either Employee owned or Community owned, are particularly important in protecting the regional identities of some of our area's smallest neighbors.

Late last year a restaurant in a rural area of Josephine County was forced into a situation where the lights were solemnly flicked and the doors locked for the last time. Unlike many casualties of the industry during that year, it was not a financial situation spurred by employment or the pandemic. The owner had passed away unexpectedly without a Will, and the assets including all operational licensing became frozen in probate. A small community was left without their only dine-in option, an establishment that served the community for decades, and had once been a beacon which drew in crowds from across the valley.

While one may consider this an odd case, a situation that couldn’t be replicated, given the “Silver Tsunami” building on the horizon, I believe there to be cause for concern. However, in this context cooperatives become an avenue in which the community can remain in command of their resources in situations such as this. The fact that many are taking advantage of the services provided by the Northwest Cooperative Development Center is encouraging, though we can all do our part to spread the message of hope via cooperative models to prevent the loss of staple businesses in our communities.”

Interested in learning more about the Cooperative model? Curious as to how this model may fit into your organizational structure? Or intrigued by the idea of starting your own movement? Reach out to Annie Hoy, Cooperative Development Specialist at (541) 326-1198 or by email at Annie@nwcdc.coop.

By Daniel Scotton, Equus Workforce Solutions

By Marta Tarantsey

Roslyn Donald, Jackson County Library Services Business Librarian, reminded me yet again that the library card is the smartest card in my

Southern Oregon Makes a First Impression

Month Four on the job sounded like a good time to check in with Roslyn to memorialize the similarities and differences between her last role and her work at JCLS, before the Rogue Valley becomes her baseline frame of reference. Roslyn relocated to the area to serve as the Business Librarian in June, building on her ten years of experience of serving as one for the San Mateo City Library.

What was your first thought when you saw the JCLS Business Librarian opportunity?

I was interested in working with a larger countywide system and in going back to being a Business Librarian. What stood out to you about Southern Oregon?

wallet, when we sat down for a chat about her role and work in Southern Oregon.

The area has some logistical challenges to it – one needs a car for meetings, to conduct business, Medford has a direct flight to Portland and some other key cities but the service is not as frequent as in some larger areas.

What were some similarities between the Rogue Valley and the Bay Area? We don’t discuss those often?

While there is a prevalence of tech companies there, it was not reflected in the pool of information seekers with whom I interacted most. Sure, there were quite a few tech entrepreneurs, they were plugged into a separate venture capital ecosystem and library was not at the top of their list. I spent more time with the ‘mom and pop’ business crowd, those who wanted to start restaurants and landscaping businesses, as well as home healthcare agencies. In that, my work here is similar: I work with those who may have an interest in becoming a realtor, starting a food truck, and having an engraving or a landscaping business.

What are key characteristics of the business landscape in Southern Oregon?

The agricultural sector has a larger presence here, so I faced a steep learning curve when learning about the ag economy here but local connections such as the partnership with A Greater Applegate proved helpful in navigating it. This area is also

less populated and therefore has a different feel in terms of amount of traffic that comes through. There are also fewer festivals and community events for outreach, but at the same time I appreciate the slower pace here. Business owners are visibly invested in making this area more economically viable and it shows. There are also many smaller companies here, as opposed to a strong but few large corporations. There is much potential in integrating how the agricultural, heavy industrial, and transportation sectors, which are strong here, can continue to integrate and grow.

What is your Outreach approach?

When it comes to planning outreach, I continue to build on the amazing groundwork that Elanna Earhardt, who previously served as the Business Librarian, has accomplished. I looked at the existing entrepreneurial support organizations, such as the Chambers and Downtown Medford Association and started attending their events. My next step was to connect with organizations that support underrepresented groups. I look forward to connecting with Únete and

BASE next, to collaborate with their members who are interested in entrepreneurial support. Women

Entrepreneurs of Southern Oregon is also very active now and I will attend their Expo in Ashland on November 5th.

What are some of your goals?

The Library newsletter is one of the best resources for anyone out there, including business owners. There is a separate newsletter for them, as well. Sign up at https:// jcls.org/newsletter/. I look forward to growing the subscription base for the newsletters via outreach and more connections this Fall and Winter. I will also continue to inform business owners of how they can access resources such as the Udemy learning platform through the library, which provides free training modules on topics ranging from OSHA compliance to ISO 9001 standards. Connecting with me through the JCLS “Book a Librarian” page is a great way to start the conversation.

By Marta Tarantsey

By Joel Barker

Today, I am casting a vote I don’t want to, for the Democrat Tina Kotek for Oregon Governor. I am despondent what the outcome will be from this vote. The mass of power in urban Oregon is so great that

I am extremely sad about my vote for Tina Kotek in the Oregon

Governor’s Election of 2022

urban voters can ignorantly enable violence and suffering. I hate being a part of it.

It has always been true that power in the state of Oregon is expressed in Multnomah County. I knew that as a child

here in Central Oregon. As timber receipts declined, I think it became more pronounced. Portland has had two generations of influx, topped by the Portlandia era. Now that urban power is in the hands of people not

Opinion Disclaimer : The views and opinions expressed by the author do not state or reflect those of the Southern Oregon Business Journal and its management.

native to the state, who only know non-urban Oregon from strolling Lithia Park, a brunch in Manzanita, or a ski trip to Mount Bachelor.

I am unhappy that Kotek thinks she can represent this state. I am unhappy that the Oregon Democratic primary voters are so lacking in empathy and so incapable of being strategic that they would select her as our candidate. That decision put the governorship at risk. Let’s be clear: the race is close not because Johnson entered the race but because Kotek is only appealing to extremely progressive voters. As a candidate, she degrades the Democratic coalition.

The polling numbers were already apparent during the primary. My simple, non mathematical punditry saw it, too. But, the urban Oregon voter need not bother to understand their fellow Oregonians. They voted for the candidate that best represented them. The result will be — has already been — significant damage to progressive goals.

As an urban Oregon voter, you may see Johnson as a total weirdo that you disagree with on the policy-checkbox-

list method of candidate selection. That is not how we should choose candidates.

With a diverse state, we need more than people we agree with. We need collaboration that gives people a chance to be heard within the political system so they don’t go outside of it.

I am unhappy at the thousands of iterations of the pithy lecture “a vote for Johnson is a vote for Drazan” I received without sympathy or curiosity as to why I supported Johnson.

I support Johnson because I reside in and love the state of Oregon. All of it. The entire state. I lived in Portland for 20 years and adore it. I am so glad to have been a member of that community as we came together to stand against racism and to help each other through the pandemic. Before that, I grew along with the city in the golden years of the early 2000s. I believe in its future, as well.

Meantime, I love my prodigal home in Redmond. I grew up here and am fortunate enough to reside here again. It is a small town that knows how to thrive. The community here is made up of people of diverse views that mingle,

work together, raise families, celebrate, and worship together.

I love LaGrande, Ontario, Seaside, Ashland, Burns, Paisley, Scappoose, Silver Lake. I am confident I can find a friendly conversation anywhere in this state, and I yearn for those chats over a beer or coffee or a burger.

I love our diverse land. I love our rivers — the Deschutes is the dearest in my heart, but I am so happy to come upon any of them and try to seduce fish out of their riffles.

Johnson’s outreach is a balm to the ear. Kotek’s attempts to relate to non-urban voters sets off alarms. I watched the first debate in this Governor’s race this year and Kotek said she likes Eastern Oregon, recalling a snowy drive she took in college. I was insulted again. I read it as cover so that urban voters can say “see, she cares about all of Oregon.”

In my time in Portland I heard so much casual aggression towards rural Oregonians in offhand comments. Hicks. Primitive. Ignorant.

The urban Oregonians are the ignorant ones. Ignorant to their fellow citizens, what formed them and the very

human reasons for why they do what they do.

I am frustrated because urban Oregonians are so powerful that they can continue to be ignorant. They have and will continue to worsen our state with their power. Meantime, rural Oregonians have to navigate urban Oregon to have access to financial, cultural, and political power.

I think all of us have enough experience in the world that simply asking for the people in power to do the work of empathy does not change anything. I am not as brash as Johnson, who said that part out loud and stands ground even when it is really uncomfortable. I want someone in power who will change the plumbing so we work together and learn together. That person could be Betsy Johnson, the equal opportunity pisser-offer.

As an activist and officer for the Multnomah County Democrats between 2018 and 2021, I helped to wield urban power. We got Kate Brown reelected by pushing turnout in Multnomah County, not by building coalition with rural voters. We pushed that turnout by creating urgency around issues that matter. We

also made people afraid of the candidate from over the mountains. We did it with fear. The fear outlasts the election it was designed for.

I was a sad worker, knowing that I was helping to muzzle and frustrate just about half of Oregonians (people who think Oregon is “reliably blue” should look up voter registration numbers). People you try to muzzle will find a way to be heard.

We attempted to create a walkout-proof majority in the house and senate so we could pass climate legislation. We failed, and the Democrats in the legislature burned bridges with potential collaborators without getting the climate bill passed. They made a martyr point to their supporters.

Rural voters don’t trust Democrats on any topic now. They don’t trust Kotek for all the deals she has backed out of and end-runs she has done to silence their voices.

Witness walkouts, witness Timber Unity. Witness Greater Idaho.

This is the part where I invoke Tom McCall. Saint Tom and Oregon’s collaborative twoparty heritage. If you don’t know Tom McCall, look up his

story. If you know any longtime Oregonians, ask them about him and what the politics of Oregon was like in the 70s.

I want to move towards that aware collegiality. But, the Multnomah Turnout Strategy keeps working. Only a loss would disrupt it, right? Unfortunately some Oregonians have realized that and joined Timber Unity. They connect with hateful right wing groups, they sponsor events that disrupt democracy. The outcomes of that approach are awful. It is dangerous. Others have created Greater Idaho, putting themselves up for mockery by national urban progressive media.

When these movements rise, urban progressives are frequently confused. So they mock it. A hipster comedian journalist puts a microphone up to the most tangle-toothed protesters he can find and edits a catchy YouTube video of their weirdest quips.

The urban voter can’t understand why anyone would vote for the person that the Democratic Party has said is a monster.

My friends from rural areas understand. They understand

what happened in 2016 and how the Democratic party could have prevented it. The Democratic party denied a huge swath of potential allies any way to connect with Democratic candidates while still preserving their identity.

For enough voters, identity won. Democratic policy ideas that wry pundits point out is their “own best interest” did not sway their vote. Are they idiots? No. The soul can’t give up self for an abstract policy.

With some exceptions (notably Biden) my party is still failing to understand. I sometimes think the President is the only adult in the room, dealing with the ire of both the left and the right while solidifying the nation against fascism.

Just like the failed climate bill in 2020, I don’t think Kotek will succeed in her policy promises but will make rural voters the reason for the failure. Tina Kotek owes her power to urban political powers and I can’t imagine her betraying them to compromise or sympathize. That is my judgment. Like everyone predicting the future, I am often wrong. I hope that I am wrong this time.

In the irresponsibility that is the national Republican Party, allowing them gubernatorial power is a bad idea. Very risky.

I am voting for Kotek. Because climate, because abortion. For all the reasons that the Democratic party is holding a knife to my neck to vote for her. Even though the Kotek campaign is creating a firestorm of the same fear that will again outlast the election and create even more reason to be staunchly progressive in the face of the red-faced, frustrated rural masses.

I have so much to say on this topic, this article won’t be the last you hear from me. And if you have questions, objections, or ideas, reach out to me directly. Let’s talk.

I have never had more heartache over an election. Thankfully, my friend Michelle helped me raise my eyes up by reminding me that votes are a small sliver of Democracy. Activism matters far more. After I vote I am going to look around for how we can give the powerful urban voter more understanding of Oregon. And how to implement statewide ranked choice voting. Ideas welcome!

Here in Central Oregon, I don’t feel alone in how I see Oregon politics. I was in a local fly shop this Spring. The older man behind the counter asked where I was going to fish that day.

“Folley Waters,” I said.

“Should be good today. Did you know Tom McCall had the road put in there because it was his favorite place to fish?” the man said.

“I did not, but I love that story,” I said.

“We need politicians like him now more than ever,” he said.

I agreed and walked out to enjoy the understatement of the year while catching fish.

By Joel Barker

“

I am looking for connections and ideas about how to bring rural voices to a better place here in Oregon.”

Reprinted with permission by the author.

Original post can be found on Medium at: joelbyronbarker.medium.com

You can reach Joel at joel@bronc.net

Sponsors

By Chris Cook - MAJORING IN BEER majoringinbeer.com

Skouting Out a New Taphouse Model

enhanced by the vintage Shasta camper parked inside and several indoor picnic tables.

To learn what goes into opening a taphouse, we met up with Tom and Lisa for a GO BIG pretzel with house-made beer cheese sauce, grilled corn/poblano tacos and a Graveyard of the Pacific Red

Interview

with Tom and Lisa Beam, restaurateurs, wine producers, Skout

Taphouse and Provisions owners

It’s been almost 20 years since Tom and Lisa Beam started their restaurant enterprise in Ashland, Ore., a college and tourist town in the mountains of Southern Oregon. Their latest endeavor is called Skout Taphouse and Provisions. It’s located at the intersection of Lithia Park, Calle Guanajuato and Ashland Creek, an area teeming with foot traffic, recreation, shopping and sightseeing.

Skout, which opened in 2021,

restaurant and its vibe as a Pacific Northwest taphouse is anchored by a revolving assortment of 40 beers on tap. With easy, unpretentious— but uniquely spun—menu items like bratwurst, brisket, quinoa bowls, Buffalo cauliflower and cherry pie, the comfortable hangout also offers adult ciders, wine and cocktails (NA drinks too). Garage doors open to the park, where outdoor tables, firepits and a sidewalk-facing bar emphasize the feel of a camping expedition—

Ale – Imperial/ Double from North Jetty Brewing, Seaview, Wash.

Q: You’ve had success with numerous restaurants over the years, and before Skout, you recently re-imagined Pasta Piatti into Pie+Vine, complete with your wine label. What attracted you to

create a beer-centric establishment?

Lisa: We wanted to create a place like the ones we like to frequent when we’re on vacation. Those comfortable venues where when you’re there, you want to stay for a while, and you want to go back several times during your trip. What seemed to be a common thread in those places is that they always have a great beer menu, or they’re a brewery—with lots of taps!

Tom: Skout came about during the onset of Covid, so things had to be different. We just started asking our customers what they wanted. Full service was not a viable option. We looked at our market, asked customers what they wanted, and built it! It was pretty simple, I guess. We spent about six to 12 weeks doing market research. And

we heard the same thing from everybody.

Q: You don’t brew your own beer, but feature other breweries, right? How does that work, and how do you decide which breweries to feature?

Tom: Like everything we do, we enjoy being students and learning. We lean on those experts in the industry and ask our customers and employees what they are interested in drinking. Even though we are in a tiny town, we are situated just off I-5, and some fantastic beers make their way to us. We are trying to feature beers that will change your life.

Q: How often do you change your beer menu?

Tom: Daily. We’ve got over 40 beers. And things are rotating so fast that I sometimes can’t keep up. These are the beers that change the way you think

about beer. You have one drink, and you’re like, “This is beer.” This is a transforming experience.

Q: How do you interact with the featured breweries?

Tom: Lisa works with our distributors, keeping an eye on which kegs are being released in Oregon and when. We also have tap takeovers by specific breweries, both local and beyond. Recently, we worked with a local non-profit and an Oregon brewery to help raise funds for equipment that allows mobility-challenged individuals to go outdoors and recreate.

Q: Tell us about how you built a menu that would work with this concept.

Lisa: I guess it goes back to my first statement of how we came up with the concept. We’re foodies at heart. And so, what are those kinds of comfort foods that we always go to and gravitate towards when we’re in an environment where we want to relax and have fun? For us, it was finding that mix of the things you crave and then having some healthy options.

Tom: Since we’re located adjacent to Lithia Park, we

want to appeal to people out there being active and near the mountain bike trails and the park, giving runners and pickleball players an option when they’re done recreating. This isn’t about creating a beer list with a bunch of cheap beer for people to sit and drink. It’s about really enjoying the beers. We also have kombucha, NA beers, wine and cider. We do our cocktails on draft, and those are all made in-house. So, they switch up quite a bit. Probably our most popular to date has been a pineapple Mezcal cocktail.

Q: What was your biggest challenge putting this taphouse together?

Tom: Probably managing the project and still being in Covid. We started construction in November 2020, and we opened in April 2021. We had no dining

room; things were shut down, and we operated a carry-out and delivery concept. And we realized that we’d had this vision for this space, and if we were going to do this, it was now or never.

Lisa: Things have taken off. We figured this place would have better traction than what was here previously (the Beams’ previous full-service Asian fusion restaurant called Sesame). We knew that was going to happen just because of the price point—and the openness and proximity to the park—but honestly had no idea that this would hit such a chord in the community. And right out of the gate, it became like a magnet for people in the park and throughout downtown Ashland.

Q: What advice would you give to someone who wants to open a beer-centric taphouse?

Lisa: Well, this is strange for us because neither of us studied beer. For us, it’s been more just because we’ve been in hospitality and have concept ideas. There was a point Tom wanted to do a brewery, and I was like, we don’t know about brewing beer; we already have the wine thing going on

(their vineyard and estate Vine + Yard wines), so let’s not just jump into bed with somebody because they’re a brewer. The model we chose for Skout made a lot more sense.

The most important thing you can do is learn from others, even if you have the best idea ever. Whatever your trade, I think it’s super important to spend some time learning from other people so you can cultivate and develop your idea.

This is how we got to where we are. It was essential to go through the steps, learn and develop our ideas. Wait to execute—maybe not 10 years, but two years, three years. Learn and experience other things and look at other parts of the world. Discovering different ways of looking at things and approaching your business will ultimately help you develop a better product.

By Chris Cook MAJORING IN BEER https://majoringinbeer.com/skout/

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

Milky way over Crater Lake just after sunset by Chad Sobotka - https://www.flickr.com/photos/chadsobotka/