Private sector employment growth in the region (0.7 percent) was about half the growth rate of the state between 2008 and 2018. The region’s average wage is 18 percent lower than the state’s, and annualized average wage growth in the region is slightly negative compared to 0.5 percent growth for the state.

Private Sector: Employment Growth, Average Wage & Average Wage Growth

GDP: Gross Domestic Product

The real average wage in the region was lower in 2018

than it was in 2008.

GDP per capita in the region is 20 percent lower than the state, which is about average for regions in Oregon. Private sector GDP is a little lower in the region than statewide, owing to state and local government employment at universities and colleges in the region. GDP growth in the region trails the state at 1.4 percent, compared to 2.2 percent statewide.

ManufacturingManufacturing is important to the region’s economy, with 12.3 percent of private sector employment compared to 11.8 percent for the state. With a location quotient of 1.21, manufacturing in the region is 21 percent larger than average for the U.S., and is very important to the region’s competitive advantages. The region’s average wage in manufacturing trails the statewide average at $59,930, compared to $70,643 statewide.

Source: Business Oregon with data from U.S. Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, and Oregon Employment Department

Region Oregon

Region Oregon

Region Oregon

REGIONAL COMPETITIVE

INDUSTRIES

Benton, Lane, Lincoln, and Linn Counties www.oregon4biz.com

Employment growth 2008-2018 cagr

0.7%1.3%

Average Wage Private Sector

$42,633$52,089

Average Wage Growth 2008-2018 Private CAGR

-0.1%0.5%

GDP per Capita$45,708

$57,155Private Sector GDP

Percentage of total84.7%

87.4%

GDP Growth 2008-2018 CAGR

1.4%2.2%

Manufacturing Employment Percentage of Private

12.3%11.8%

Manufacturing Location Quotient

1.211.16

ManufaCturing Average Wage

$59,930$70,643

REGIONAL COMPETITIVE INDUSTRIES: BENTON, LANE, LINCOLN, AND LINN COUNTIES

Foundries (metals) had the largest employment and competitive gains in the region amongst

large traded sector industries.

The region’s largest, competitive traded sector industry groups rely on natural resources, such as forestry and wood products and agriculture, food, and beverages. Location quotients, a measure of industry concentration, help reveal competitive industries in the region (Figure 1). Other competitive industry groups include metals, machinery, and transportation equipment, high technology, and chemicals. The most competitive industries are all in forestry and wood products – plywood and engineered wood products, support activities for forestry, logging, and sawmills.

As has been the case statewide, the region has struggled to maintain employment and competitiveness in forestry and wood products. One way to measure gains and losses in competitiveness is to compare regional industry trends to national industry trends (Figure 2). From this perspective, management of companies, other professional, scientific, and technical services, foundries, and business support services are large traded sector industries that have gained competitiveness in the region. Industries losing competitiveness were other amusement and recreation, sawmills, warehousing, architectural, engineering, and related services, and semiconductor manufacturing. Additional opportunities for growth may exist amongst some of the smaller competitive traded sector industries in the region.

Source: Business Oregon with data from U.S. Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, and Oregon Employment Department

Figure 1

Figure 2 EMPLOYMENT CHANGE OF LARGEST TRADED SECTOR INDUSTRIES,

2008-2018

MOST COMPETITIVE TRADED SECTOR INDUSTRIES 2018 Private Sector Employment

Location Quotient = Employment Concentration in Region Relative to U.S. Average LQ of 1.0 = Same Size as U.S., LQ of 2.0 = Twice as Large as U.S., etc.