November 2015

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In this issue:









Recognizing Medical Professionals

Small Business Expansion Program

Workplace Solutions

Where did the construction workers go?

One Main West

Manufacturing Communities Partnership

Rogue River Scenery

Say, “Cheese!”

The Beautiful Oregon Coast

363 Miles of Public Beaches

November 2015


Kelly Morgan, CEO and

President of Mercy Medical

Center in Roseburg

From: Morgan, Kelly (Roseburg)

Sent: Monday, October 05, 2015 8:07 AM

To: /NW Roseburg Everyone

Subject: Recognition from PeaceHealth Medical Director

I wanted to share an email I received from Dr. Hans

Notenboom, the Medical Director of the Emergency Department

at River Bend-PeaceHealth. I hope each of

you know your dedication and caring for our patients is

recognized outside of our community!

Kelly

---------------------------------------------------------------------------

Kelly,

Your hospital, nurses, doctors, techs, medics, ward

clerks, and all of those I am failing to mention did a great

thing yesterday. I was on the receiving end of 3 of the

patients from UCC yesterday. I can say that we were

ready for more just in case. Personally, I just wanted to

say how impressed I was with all that you guys did yesterday.

You handled an incredibly chaotic scene, stabilized

incredibly sick patients, and made the transfer to us

seamless. The patients were well resuscitated and there

was nothing left to surprise or chance. I know I talked

with Wade as this was happening (through texts) and Dr.

Bodenhamer was there as well…I think. I am sure they

and the staff are all being commended on such tremendous

work. I would add my voice to that.

Being from Roseburg, it made me proud to know how

well you all did in such a horrific situation. I only hope

we would be able to do the same. I hope that the hospital

is reaching out too, but I just wanted to personally

note my appreciation for all that your people did. Simply

words don’t really do it justice. My heart breaks that it

has to come out of such a horrible situation. I hope to

send my regards to the ED docs and other staff as

well. Please feel free to pass any of this on.

Thursday October 1, 2015 presented us with an

unforeseeable challenge. I’m sure many of you

felt as I did with mixed emotions as we waited

for the victims of remarkable tragedy. I am so

impressed with the response of our care community.

With adaptable and swift action, profound

compassion was provided by all of you.

In the midst of our action, I witnessed every aspect

of our care community responding to the

demands of that unique situation. Our Housekeeping

Staff worked to clean and prepare

rooms for incoming patients, Radiology Technologists

were promptly available, our Emergency

Medicine physicians, nurses and support

staff triaged and cared for the wounded, Surgeons

and Specialists as well as nurses and

staff from other units came to augment our capability

while their colleagues worked to cover

their respective units; providers came in from

clinic and home to assure we rose to the necessity

of the day while our administration was

available to communicate and assist. From the

ER to the OR, our whole hospital provided such

a wonderful response to such tragedy.

We all bear some burden due to the circumstances

of last Thursday. The images and

emotions repeating in our thoughts may feel

overwhelming at times. Please know that you

need not manage this alone. There are resources

available to help us process our normal

response to such an event. Please don’t hesitate

to reach out to a friend, family member, colleague

or counsellor.

I am certain none of us conceived of the possibility

of such an event though I am also certain

we may all have feared of such at some time or

another. I am so proud of the work all of you

dedicated delivering tenderness and excellent

care to the people so injured that day. Our

Care Community certainly dealt with unthinkable

acts with courage, compassion and skill.

Thanks so much, and take care.

Best,

Hans

To The Staff of Mercy Medical Center:

Thank you.

Bryan McVay MD

Medical Director Trauma Program

Riverbend-Peace Health


Existing history of sales

Potential for rapid growth in sales

History of significant gross profit margins or

reasonable expectations of ability to achieve

significant gross profit margins

Collateral to secure the loan or personal

guarantees of major owners

Small Business Expansion

Program

The Small Business Expansion Program, operating

within the OBDF direct loan program, is a

new alternate financing solution fit for situations

in between "almost bankable" and angel or venture

capital deals, similar to mezzanine financing

for working capital. This pilot program allows

businesses to pay a periodic revenue payments

as a percentage of net sales combined with

scheduled monthly payments of principal and

interest (fixed rate) to accommodate growing

Oregon companies that may not qualify for traditional

financing.

Typical financing amount of up to $250,000.

Benefits

Royalty financing provides many benefits to Oregon

businesses compared to traditional debt

and equity financing, including:




Business owner does not dilute ownership

interest

Royalty financing may be less expensive

than equity-based investment

Makes financing available that may not be

available from traditional sources of debt or

Business Oregon's other business finance

programs

How it Works

The percentage of sales varies per applicant.

Business Oregon's target return on investment—from

repayment of principal, interest and

revenue payments—over a 3- to 7-year period.

Additional payments may be required in event of

early payoff or sale of the company. Once the

pre-determined return target has been achieved,

all payments stop and the company has satisfied

its repayment obligations.

Key Requirements

The company must satisfy all requirements of

the OBDF program including, but not limited to,

being a traded-sector business and having significant

job creation impacts. Each revenue finance

request will be evaluated on a case-bycase

basis, but the following will be required,

in general:

Douglas County’s seasonally adjusted unemployment

rate held steady at 8.2 percent in

September. The rate is 1.0 percentage point below

the 9.2 percent recorded in September

2014. Oregon’s seasonally adjusted unemployment

rate was 6.2 percent and the national rate

was 5.1 percent in September.

Brian Rooney

Regional Economist, Lane and Douglas Counties

“There are two types of people who will tell

you that you cannot make a difference in

this world: those who are afraid to try and

those who are afraid you will succeed.”

~Ray Goforth


REACTION

Positive

Three Stages of Starting a Business

Idea Concept Business Launch

Informed Optimism

Uninformed Optimism

Informed Pessimism

Negative

The excitement of starting a business is tempered by the discovery that excitement

may be dependent on the level of knowledge you have about business


WORKPLACE SOLUTIONS

FEDERAL LEGISLATIVE UPDATE

Overtime Rules for Exempt Employees

The United States Department of Labor (DOL) recently issued

proposed changes to the rules on the salary test for employees

that are exempt from overtime requirements. Exempt employees

must be paid regardless of how much or how little work

they perform in a day. The DOL notes that the salary level of

exempt employees was last set in 2004 and is updated whenever

new rules are set. The DOL accepted public input on these

proposed changes just this last summer. Here is a preview of

the proposed changes the DOL is considering.

UPDATE to Exempt Classifications of “Duties”

Two requirements must be met to classify an employee as exempt:

1) they must earn a salary, and 2) hold a position with duties

the U.S. Labor Department designates as appropriate for exempt

positions. These positions are categorized as executives;

administrative staff; professionals (including computer and creative

professionals); and outside sales persons. The DOL also accepted

public input to see if it needed to update these classifications

as well. The DOL is also asking for comments on

possible changes to the duties tests.The DOL is also asking

for comments on possible changes to the duties tests.The

DOL is also asking for comments on possible changes

to the duties tests.It iI

It is always a smart policy for a company to regularly

review their employee classifications to comply with

the Fair Labor Standards Act (FLSA). This flowchart provides

a more detailed explanation of the requirements an exempt

employee.

minimum salary of an exempt employee is at least

$455 per week.)

Increase the total annual compensation requirement

needed to exempt highly compensated employees

(HCEs) to the annualized value of the 90th percentile

of weekly earnings of full-time salaried workers

to $122,148 annually.

Establish a mechanism for automatically updating the

salary and compensation levels going forward to

ensure that they will continue to provide a useful

and effective test for exemption.

The Department’s proposal to set the standard salary level at

the 40th percentile of weekly earnings for full-time salaried

workers represents the most significant line of demarcation between

exempt and nonexempt employees.

It is likely that there will be some time before the new

rules are issued. Stay tuned and we will keep you updated

on this topic.

Got a hot HR topic that needs discussing?

Email SOBJ with your questions and we’ll

tackle it in a future column!

Victoria Simpson | Customer Service Manager

Cardinal Services | Workplace Solutions

800.342.4742 | Ext: 2305 | victoria@cardinalservices.com

www.cardinal-services.com

“The Eternal Optimism of Spirit”

“The human penchant that necessitates a return

to normalcy - to fix what is broken - that

exhibits an eternal optimism of spirit - was

not destroyed by an explosion.”

A line from a report on the 1959 Blast that leveled

blocks of the city of Roseburg and killed

14 people.

UPDATE to Salary Provisions of the Proposed Rule

The DOL’s proposes updating the salary and compensation levels

needed for white collar workers to be exempt. Specifically,

the Department proposes to:

Set the standard salary level at the 40th percentile of

weekly earnings for full-time salaried workers to

$921 per week, or $47,892 annually. (The current

Nothing less will be said of the residents of

Roseburg and people in the reaches of

Umpqua Community College following the

tragedy of the shootings on October 1, 2015.


Where Did All of Oregon’s Construction

Workers Go?

by Damon Runberg

June 25, 2015

Back in the mid-2000s, I took a job as a construction

laborer to help offset my expensive college tuition. As a

young adult there were few opportunities to make more

than minimum wage, particularly with only a high

school diploma in my back pocket. Construction was a

well-paying industry, there were countless jobs available,

and entry level laborers needed no specialized

training or licenses. One simply needed to work hard,

show up on time, and be willing to get dirty. During the

housing boom of the mid-2000s, the demand for new,

single-family homes fueled an explosion of the construction

industry, which added more than 21,000 new

jobs in Oregon between 2004 and 2007.

Then the bubble burst. Home prices plummeted and

the demand for new construction dried up. The construction

industry lost more than 38,000 jobs. Today,

Oregon is in a period of expansion with employment

levels higher than the pre-recession peak. However,

the construction industry remains far from recovered –

having only regained about one-third of the lost jobs.

When the bubble burst I lost my construction job, forcing

me to find a new source of income – ultimately, in a

different industry. I wasn't alone; it turns out that thousands

of construction workers who wanted to maintain

employment in Oregon were forced to start a new career

due to the recession. Using unemployment insurance

records, we can follow Oregon's construction

workers from 2007 to see where they landed during the

depths of the recession, and later after the recovery.

accounted for 192,000 construction jobs, as some

workers held multiple jobs in the industry. By 2010,

only about 101,000 (63%) of those construction workers

were still reporting wages in Oregon. What happened

to the rest of them? Many former construction

workers likely lost their jobs and were still seeking employment

in Oregon in 2010; however, some may have

moved out of the state looking for work elsewhere, or

they decided to retire.

Perhaps more fascinating is to look at those 2007 construction

workers who were still employed in 2010. Only

about 57 percent still held a job in the construction

industry. The other 43 percent moved into new industries.

For example, around 10 percent of those workers

found a job in accommodation, food services, or retail

trade. When construction opportunities dried up, workers

were forced to look elsewhere for employment opportunities,

with many settling for much less pay.

The median wage of construction workers in 2007 was

$21.17 an hour (in 2014 dollars). Of those workers who

were still employed in Oregon but had to change industries,

their pay was $14.32 an hour in 2010. During

those hard times, many former construction workers

were forced to choose between a massive pay cut or

unemployment. Many made the choice to change their

career path, find work in a new industry, and work for

much less money.

From Peak to Valley

If 2007 was the peak of the housing bubble, then 2010

was definitely the valley. New housing permits dropped

by 67 percent between 2007 and 2010. The precipitous

drop in housing demand crippled the construction industry.

At the peak of the boom there were 159,500 workers

who held a construction job in Oregon. Those workers

Continued on page 7


From Valley to Today

By the fall of 2014, Oregon had fully recovered all jobs

lost during the recession. The recovery was primarily

driven by growth in a variety of industries, such as

health care, tourism, and the professional sector. Construction

was slow to add jobs, as the large surplus of

houses and low home prices tempered the demand for

new home construction. However, by 2013 construction

began to see sustained job growth that continued into

2014. Although construction's employment levels remain

far below the pre-recession peak, the industry

added more than 10,000 jobs in the past two years.

The industry is on the mend behind a recovering housing

market and tighter housing supply. It was assumed

that many of the former construction workers who lost

their construction job during the recession would come

back to the industry

when it began to recover.

However, that

doesn't seem to be

the case. Many of

those construction

workers left and few

have returned.

such as waste management, transportation, warehousing,

manufacturing, agriculture, and forestry. However,

thousands of former construction workers completely

changed their career paths, likely in pursuit of higher

wages or a more stable employment situation. Ultimately,

it seems the choice of these workers to move away

from construction was a good financial decision. The

median wage of these former construction workers was

$21.30 a hour in 2014, an increase from their 2010 median

wage of $20.59, and even slightly higher than their

median wage in 2007 during the boom ($21.17).

Conclusion

Soon after losing my construction job I graduated from

college. I was forced to find work in a different industry,

and it has been seven years since I last worked in construction.

During the mid-

2000s the industry guaranteed

stable employment with

good wages for little experience.

Many Oregonians

chased these construction

jobs created by the bubble,

but when the bubble burst,

many like myself moved on.

As pointed out earlier,

there were

159,500 workers

who had a construction

job in 2007. Of

those, only about

101,000 were still working in Oregon in 2010. By 2014,

that number dropped to 90,500 who were still working in

Oregon, a 43 percent reduction since 2007. About half

of the jobs those workers accounted for remained in the

construction industry, which is an even smaller proportion

than during the depths of the recession in 2010. At

this point, it doesn't seem like those experienced construction

workers from the boom years are coming back

to fill Oregon's recent construction vacancies.

Only 57 percent of the construction

workers from the

boom years were still working

in Oregon as of 2014. We

don't know how many of

those who are no longer

working in Oregon are either unemployed, retired, or

working outside the state. But, we do know that only

about half of those still working in Oregon remain employed

in construction. The rest are employed in a variety

of other industries. It seems that the recent uptick in

hiring demand for construction labor is doing little to

persuade those former construction workers to come

back to their former industry.

Although many of the former construction workers from

2007 still employed in Oregon no longer hold a job in

construction, many are now employed in similar industries.

About 43 percent of the non-construction jobs are

in industries with significant hands-on physical work,


One West Main Wins 2015

OEDA Award for Business

Development Success Story

The collaboration that brought 200+ jobs to

downtown Medford was recognized by the Oregon

Economic Development Association.

Medford, Ore. – October 27, 2015: – One

West Main, a collaboration

between Pacific

Retirement Services,

Rogue Disposal and

Recycling, Inc., and

Pro Care Software to

bring jobs to downtown

Medford to make

it more vibrant. This

collaboration allowed

three corporate headquarters

to share space in a four story building

that now serves as a westerly anchor in downtown

Medford. One West Main was recognized

as the winner of the 2015 Oregon Economic Development

Association (OEDA) Award for Business

Development Success Story.

The opening of One West Main brought an additional

200+ people downtown during normal

business hours that contributes to the vibrancy

of downtown. One West Main’s location downtown

has caused resurgence in interest by other

businesses that wish to move to a downtown location.

The area has seen an increase in diverse

food and beverage establishments with a growth

in pedestrian traffic during the day as well as the

evening. “The good news for all three of us is

that everyone is in it for the long term.” Says Brian

McLemore, CEO of Pacific Retirement Services.

Representatives from One West Main, along

with the City of Medford, accepted the award on

October 19, 2015 during OEDA’s annual conference

held in Medford at the Inn at the Commons.

The nomination

was made by

SOREDI, a longstanding

OEDA

member.

Ron Fox, Executive

Director or SOREDI

says, “We’re proud

to have our

statewide economic

development counterparts

recognize

this project. One

West Main’s story shows how strong public/

private partnerships can change the face of an

area to support increased economic growth and

vitality.”

The Oregon Economic Development Association (OEDA) is a

statewide non-profit organization working to support economic

development professionals who are on Oregon's front line in

diversifying and expanding Oregon's economy.

"In looking for people to hire, you look for three

qualities: integrity, intelligence, and energy. And

if they don't have the first, the other two will kill

you."

— Warren Buffet

CEO, Berkshire Hathaway


The Wild and Scenic

Rogue River

Photo by Dean Myerson

Welcome to the wild and scenic Rogue River! This legendary river has long been a secret paradise for game fishermen

and now you are invited to enjoy its long and entertaining history, filled with tales of gold, Indians and modernday

moviemaking.

The river's popularity is steadily growing as more and more visitors to Southern Oregon view the spectacular rapids

and falls, and drink in the calm serenity of the still waters. Beautiful old-growth pines and twisted madrone grace the

banks and deer graze in pastures bordering the water. Osprey fish for Chinook salmon while blue heron skim majestically

along the sparkling waters.

The Rogue River is the embodiment of the Oregon dream lifestyle, a relaxing haven away from the strife of modern

city life.

The Rogue's headwaters start at Crater Lake and twist and roar for 215 miles through the Cascade, Siskiyou and

Coastal Ranges before spilling into the Pacific at Gold Beach. Numerous small towns dot its journey west, most notably

the city of Rogue River, which took its name from the river itself. As the river leaves the Cascade range it winds its

way through the Rogue valley. Gracious river homes line the banks where lucky residents live amongst the natural

splendor.

From the relative calm of the valley the river takes a dramatic turn as it enters the coastal range at Hellgate Canyon.

From Hellgate for the next 60 miles the Rogue takes a wild and scenic trip through the coastal range towards its final

destination: the Pacific Ocean.


Rogue Creamery

World Famous

Cheeses Handcrafted

in Oregon

Accomplishments

In 2007, Rogue Creamery received the Governor's

Sustainable Tourism Award for their commitment

to community and agri-tourism. They

garnered the Best of Show Award in 2009 at

the American Cheese Society annual judging

and competition where it competed with 1,327

cheeses from all over North America. In 2003

the creamery gained international recognition

with their Rogue River Blue when they became

the first American blue cheese to win the World

Title at the World Cheese Awards in London.

Rogue Creamery has been hand-making certified

sustainable and organic cheese in the artisan

tradition since 1935. The cheeses are

handmade using only sustainable, organic and

natural grass-based milk and original culture

and mold.

In early 2015, the creamery made a splash by

introducing state-of-the-art milking machines at

their new dairy. The machines were imported

from Sweden and are automated, making it

possible for the cows to be milked when they

are ready at a time of their choosing.

Business Oregon is proud to have partnered

with the creamery over the past ten years helping

with loans and loan guarantees for the purchases

of cold storage and equipment at the

dairy. The purchases enabled the creamery to

have up-to-date equipment, build a new barn,

install new milking machines and open an onsite

store where samples and products are

available for purchase. In fact, Rogue Creamery

Blue Cheeses are touted as the #3 reason

to visit Oregon!

"Keep in mind that you cannot control your own

future. Your destiny is not in your hands; it is in

the hands of the irrational consumer and society.

The changes in their needs, desires, and

demands will tell you where you must go. All

this means that managers must themselves

feel the pulse of change on a daily, continuous

basis.... They should have intense curiosity,

observe events, analyze trends, seek the clues

of change, and translate those clues into opportunities."

Southern Oregon Business Journal

703 Divot Loop

Sutherlin, Oregon 97479

www.southernoregonbusiness.com

greg@southernoregonbusiness.com

541-315-6127

— Michael J. Kami

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