Speech: Local Economic Snapshot
Remarks delivered to the Board of Directors,
Economic Development for Central Oregon
meeting in Prineville by
Crook County Judge Scott R. Cooper
October 12, 2006
The unemployment rate in Crook County in August 2006 fell to 5.0 percent. That rate was slightly higher than Deschutes County’s statewide low of 3.9 percent rate and slightly lower than the State of Oregon rate of 5.2 percent and the Jefferson County rate of 5.1 percent. This is the lowest rate the county has seen since the late 1960s and the first time in the last 20 years that the country rate has fallen below the state rate of unemployment.
A quick look at the components of employment in Crook versus Deschutes County reveals both similarities and differences.
Trade, transportation and utilities was the top employment sector in both counties, accounting for 20.5 percent of employment in Crook County and 17.6 percent in Deschutes County. The chief difference between the two is that the primary subsector in Crook County was wholesale trade, which you can read to mean “Les Schwab” while the primary subsector in Deschutes County was retail trade. Also of note within this sector, was the difference in average salary, as reported in 2005. Crook County employees laboring in the Trade sector were paid on average $9,500 per year more than their counterparts in Deschutes County.
Leisure and hospitality was the second largest sector of employment in Deschutes County, accounting for 13.4 percent of employment. It was the fourth largest sector in Crook County, accounting for 6.7 percent. As with trade, there was a substantial difference in salaries paid in this sector between the two counties, with Deschutes County employees being compensated an average $5,000 per year more than Crook County employees. I expect the gap in this sector to close in years to come with the maturation of the destination resort industry in Crook County. At present, there are three resorts under active considerations, one approved and in construction and two pending before the county planning commission. In total, these three resorts, assuming they are approved, will add 4200 units of housing—50 percent of which will be in the form of overnight accommodations—to Crook County.
Crook County’s second-largest sector of employment and Deschutes County’s fourth largest sector was government. At 13.8 percent of the workforce, Crook County’s governmental presence is now more economically significant than its manufacturing segment, which has slipped to third-ranked among sectors at 12.9 percent. Average pay in this sector was $35,000 in Crook County, which compares favorably with the average pay of $37,500 paid in Deschutes County. Although smaller in numbers than their state or local government counterparts, federal employees are a particularly significant component of government employment in Crook County. Average wages for federal employees were more than twice those of state employees and not quite double those of local government employees. At $17 million, the federal payroll for 334 employees in Crook County was only slightly less than the local government payroll of $21 million for 733 employees.
Behind government in Crook County was the manufacturing sector, accounting for 12.9 percent of employment. 87 percent of manufacturing employment—or 1,040 out of 1,200 employees--was centered on the wood products industry. Average wages in this sector were $5,000 less than the better diversified manufacturing sector of Deschutes County. This sector remains a major concern of the county’s because of heavy concentration of employment in a few companies. As we have seen in the past, the loss of just one company in this sector could dramatically alter the overall employment picture.
The fifth most important sector in Crook County often comes as a surprise, even to local citizens. Here’s hint: despite the hoopla surrounding Prineville’s new reputation as “Growth Central,” it is not the construction industry. It is the education and health services cluster. Employment in this sector would be concentrated primarily in the local hospital and three medical and three chiropractic clinics, the Federal Quality Healthcare Center based in Prineville and the community’s two private schools, Mt. Bachelor Academy and the Prineville Christian School. At 6.5 percent of total employment, this sector equals the employment of the leisure and hospitality industry in terms of numbers of employees, but that widely understates its impact. In terms of payroll, this segment has an impact equivalent to that of state government and more than three times that of leisure and hospitality. On the radar screen of regional recruitment, this sector is definitely an overlooked “sleeper,” and I would encourage this board to pay attention to additional recruitment opportunities in this area.
As mentioned, construction does not rank among Crook County’s five most significant employment sectors. This sets Crook County apart from Deschutes County where the construction sector ranks third among the county’s industries. Notwithstanding the characterization of Prineville by media and real estate publications shows a mere 327 people employed in the construction industry in 2005, which doesn’t begin to compare to the 1700 people employed in Trade or the 1200 people employed in the Government or Manufacturing sectors. Three years of building permit data lend further support to the idea that uncontrolled growth is threatening the future of Prineville is actually a myth.
We are currently issuing about 1,500 building permits per year, which includes construction, mobile home placements and remodel permits. The breakdown between city and county is about 40 percent city and 60 percent county. Like the rest of the region, we appear to be on a track this year to slow down a little, and will likely end the year with a handful less permits issued than were issued in 2005 or 2004. This slowdown should reverse in 2007 as destination resort construction and the start of construction at Brooks Resources begins to drive numbers upward again.
Overall, I think we are in about the best economic shape we have been in a long time. At the moment, the community’s best features are:
Plentiful industrial land being offered at relatively inexpensive prices and held in diverse ownership.
A recently expanded urban growth boundary.
Recently updated infrastructure plans and transportation plans at both city and county, which are helping us keep pace, if not stay ahead, of the growth curve.
Plentiful housing which is still highly affordable by regional standards.
A workforce which is definitely shrinking but which is still more plentiful than what can be found in Deschutes County.
Reasonable development costs--most notably the complete absence of SDCs—and business-friendly planning and building departments at both city and county.
A local tax and fee structure which puts little burden on the business community.
With the introduction of destination resorts, additional opportunities for leisure, recreation, culture and executive housing which should help bring the area to the attention of the business community.
A downtown undergoing relatively dramatic urban renewal, putting a positive face on the community.
We are also blessed with strong relationships and very supportive partners at the federal, state and regional level and the working relationship between County, City and Chamber is one which invites dialogue and encourages cooperation and communication.
In short, all systems are “Go” in Crook County, and that’s exactly what we plan to do in days, months and years to come.
Economic Development for Central Oregon
meeting in Prineville by
Crook County Judge Scott R. Cooper
October 12, 2006
In Crook County, All Economic Signals Point To 'Go'
The unemployment rate in Crook County in August 2006 fell to 5.0 percent. That rate was slightly higher than Deschutes County’s statewide low of 3.9 percent rate and slightly lower than the State of Oregon rate of 5.2 percent and the Jefferson County rate of 5.1 percent. This is the lowest rate the county has seen since the late 1960s and the first time in the last 20 years that the country rate has fallen below the state rate of unemployment.
A quick look at the components of employment in Crook versus Deschutes County reveals both similarities and differences.
Trade, transportation and utilities was the top employment sector in both counties, accounting for 20.5 percent of employment in Crook County and 17.6 percent in Deschutes County. The chief difference between the two is that the primary subsector in Crook County was wholesale trade, which you can read to mean “Les Schwab” while the primary subsector in Deschutes County was retail trade. Also of note within this sector, was the difference in average salary, as reported in 2005. Crook County employees laboring in the Trade sector were paid on average $9,500 per year more than their counterparts in Deschutes County.
Leisure and hospitality was the second largest sector of employment in Deschutes County, accounting for 13.4 percent of employment. It was the fourth largest sector in Crook County, accounting for 6.7 percent. As with trade, there was a substantial difference in salaries paid in this sector between the two counties, with Deschutes County employees being compensated an average $5,000 per year more than Crook County employees. I expect the gap in this sector to close in years to come with the maturation of the destination resort industry in Crook County. At present, there are three resorts under active considerations, one approved and in construction and two pending before the county planning commission. In total, these three resorts, assuming they are approved, will add 4200 units of housing—50 percent of which will be in the form of overnight accommodations—to Crook County.
Crook County’s second-largest sector of employment and Deschutes County’s fourth largest sector was government. At 13.8 percent of the workforce, Crook County’s governmental presence is now more economically significant than its manufacturing segment, which has slipped to third-ranked among sectors at 12.9 percent. Average pay in this sector was $35,000 in Crook County, which compares favorably with the average pay of $37,500 paid in Deschutes County. Although smaller in numbers than their state or local government counterparts, federal employees are a particularly significant component of government employment in Crook County. Average wages for federal employees were more than twice those of state employees and not quite double those of local government employees. At $17 million, the federal payroll for 334 employees in Crook County was only slightly less than the local government payroll of $21 million for 733 employees.
Behind government in Crook County was the manufacturing sector, accounting for 12.9 percent of employment. 87 percent of manufacturing employment—or 1,040 out of 1,200 employees--was centered on the wood products industry. Average wages in this sector were $5,000 less than the better diversified manufacturing sector of Deschutes County. This sector remains a major concern of the county’s because of heavy concentration of employment in a few companies. As we have seen in the past, the loss of just one company in this sector could dramatically alter the overall employment picture.
The fifth most important sector in Crook County often comes as a surprise, even to local citizens. Here’s hint: despite the hoopla surrounding Prineville’s new reputation as “Growth Central,” it is not the construction industry. It is the education and health services cluster. Employment in this sector would be concentrated primarily in the local hospital and three medical and three chiropractic clinics, the Federal Quality Healthcare Center based in Prineville and the community’s two private schools, Mt. Bachelor Academy and the Prineville Christian School. At 6.5 percent of total employment, this sector equals the employment of the leisure and hospitality industry in terms of numbers of employees, but that widely understates its impact. In terms of payroll, this segment has an impact equivalent to that of state government and more than three times that of leisure and hospitality. On the radar screen of regional recruitment, this sector is definitely an overlooked “sleeper,” and I would encourage this board to pay attention to additional recruitment opportunities in this area.
As mentioned, construction does not rank among Crook County’s five most significant employment sectors. This sets Crook County apart from Deschutes County where the construction sector ranks third among the county’s industries. Notwithstanding the characterization of Prineville by media and real estate publications shows a mere 327 people employed in the construction industry in 2005, which doesn’t begin to compare to the 1700 people employed in Trade or the 1200 people employed in the Government or Manufacturing sectors. Three years of building permit data lend further support to the idea that uncontrolled growth is threatening the future of Prineville is actually a myth.
We are currently issuing about 1,500 building permits per year, which includes construction, mobile home placements and remodel permits. The breakdown between city and county is about 40 percent city and 60 percent county. Like the rest of the region, we appear to be on a track this year to slow down a little, and will likely end the year with a handful less permits issued than were issued in 2005 or 2004. This slowdown should reverse in 2007 as destination resort construction and the start of construction at Brooks Resources begins to drive numbers upward again.
Overall, I think we are in about the best economic shape we have been in a long time. At the moment, the community’s best features are:
Plentiful industrial land being offered at relatively inexpensive prices and held in diverse ownership.
A recently expanded urban growth boundary.
Recently updated infrastructure plans and transportation plans at both city and county, which are helping us keep pace, if not stay ahead, of the growth curve.
Plentiful housing which is still highly affordable by regional standards.
A workforce which is definitely shrinking but which is still more plentiful than what can be found in Deschutes County.
Reasonable development costs--most notably the complete absence of SDCs—and business-friendly planning and building departments at both city and county.
A local tax and fee structure which puts little burden on the business community.
With the introduction of destination resorts, additional opportunities for leisure, recreation, culture and executive housing which should help bring the area to the attention of the business community.
A downtown undergoing relatively dramatic urban renewal, putting a positive face on the community.
We are also blessed with strong relationships and very supportive partners at the federal, state and regional level and the working relationship between County, City and Chamber is one which invites dialogue and encourages cooperation and communication.
In short, all systems are “Go” in Crook County, and that’s exactly what we plan to do in days, months and years to come.
posted by Scott Cooper | 10:52 AM
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