Portland Economic Development Strategy

 

Why Advanced Manufacturing?

• Portland’s strengths in metals and transportation equipmentPortland’s Advanced Manufacturing Cluster is driven primarily by businesses involved with metals and transportation equipment that utilize high technology tools, including engineering and computing, for the purpose of producing a finished product or part, or for enhancing manufacturing capabilities. Advanced Manufacturing technology is used in all areas of manufacturing, including design, fabrication and assembly. have built a strong concentration of traded sector companies  which  sell a high percentage of products  outside of the region ,bringing revenues from those sales back to the regional economy.
• Portland’s advanced manufacturing jobs pay on average $58,283, 35% above the metro regional average.
• Advanced manufacturing firms employ 27,061 in this region which represents a considerable percentage of the area’s good-paying jobs.
• Nationally, each $1 worth of manufactured goods creates another $1.43 in other sectors. Oregon ranks 2nd in the U.S. by manufacturing's percentage of the state's GDP. The manufacturing GDP for the state was $38.75 billion in 2010 – accounting for 22.3% of Oregon's economy. This is up from 2008 when Oregon ranked 5th in the U.S. with manufacturing GDP at $30.2 billion or 18.7% of Oregon's economy.
• Oregon ranks #1 in the U.S. for the lowest production cost per dollar output. The production cost per dollar of output in manufacturing is derived by dividing the total production costs by the total dollar value of outputs. Oregon's production cost per dollar is approximately 74 cents, which means for each dollar value of output, the profit margin is close to 26 cents. The average unit cost production in manufacturing among 50 states is 83.3 cents. Source: American Institute for Economic Research.
• Oregon ranks #1 in the U.S. for production cost-efficiencies. The nation's mean cost-efficiency score in manufacturing is 84.4. This means that U.S. manufacturers could reduce their total production costs by 15.6% and produce the same quantities of outputs. Oregon, Connecticut, and Iowa are at 100% efficiency. Source: American Institute for Economic Research.

ADVANCED MANUFACTURING CLUSTER SNAPSHOT
Total Regional Employment (2010)	27,061
Average Annual Wages	$58,283
Employment Growth (2009-10)	-12%
Portland Share of Regional Employment (2009)	23%

Portland Advantages

• Cluster businesses have incorporated lean processes that have improved product quality, increased efficiencies, enabled faster turn-around times and have led to re-shoring of previously off-shored products.
• An impressive number of Portland companies are recognized by industry peers for being in the top 1-10% of their industry.  This solid reputation drives national and international sales of products and parts produced by Portland advanced manufacturing companies.
• Portland companies have developed strong reputations and niches in the manufacture of  flatbed railcars (Gunderson), streetcars (Oregon Iron Works), industrial trucks and tractors (Daimler), mining equipment (ESCO), aircraft parts (PCC Structurals), and shipbuilding and repair (Vigor).
  
  » Expanded listing of other products produced in Portland region.Motor vehicles, industrial trucks and tractors, railroad equipment, flatbed railcars, lawn and garden equipment, mining machinery, steel pipe and tubes, aircraft parts and equipment, fluid power pumps and motors, aluminum extruded products, fabricated structural metal, metal doors, construction machinery, cutlery, shipbuilding and repairing, refrigeration and heating equipment, hand and edge tools, blowers and fans, saw blades, bolts, nuts, rivets, washers.

Top PDC Initiatives

What is PDC doing?	Why and How?
Harbor ReDI brownfield reclamation	Advanced manufacturing in this region requires available industrial land to flourish. The PDC is working closely with city, Port of Portland, county, METRO, state and private partners to get unoccupied and underutilized industrial land back into productive operational use.
Enhance the regional manufacturing supply chain	Enhancing the regional supply chain creates jobs, increases local wealth and reduces the impact of national economic downturns. We are using the Northwest Connectory buyer-supplier database to stimulate the regional supply chain on two fronts: 1. To build local industry knowledge of regional suppliers of products, parts and components. 2. To help large firms and government agencies such as wind power firms and the Department of Defense identify and purchase from suppliers in our region.
Expand lean manufacturing and eliminate waste	Businesses that have received lean consultations from PDC’s lean consultants, the Oregon Manufacturing Extension Partnership (OMEP), have experienced a 40%-60% increase in efficiencies. These efficiency improvements have led to increased profits, increased employment, reduction in facility requirements, tenant improvement investments into facility expansion, investments in machinery and equipment, and increased employment. PDC provides up to 50% of the cost for lean consultations for advanced manufacturing firms in Portland, contingent upon budget availability.

Resources & Publications

Advanced Manufacturing Resource Guide >
A listing of available resources and information to assist advanced manufacturing firms