The key industries of the Beaver State include agriculture and forestry, biotechnology, tourism, and a strong manufacturing sector.
Top exports for Oregon include semiconductors and electronics; engines, turbines, and power transmission equipment; and food and beverage products. The state has also attracted a number of high-tech companies to Portland and the surrounding areas in what has become known as the Silicon Forest.
Reasons for doing business in Oregon
Oregon supports innovation-based businesses through the Oregon Innovation Council (Oregon InC). This public-private partnership provides investments to three Signature Research Centers (SRCs), and it provides funding and grants to entrepreneurs and businesses involved in advanced manufacturing, active lifestyle, bioscience, medical devices, and natural resource industries.
There is also support for other business categories ranging from rural business development to business expansion or relocation from another state. Oregon’s economic development agency administers over 80 grants, loans, tax incentives, and other programs.
What is the cost of doing business in Oregon?
Oregon’s tax climate is relatively high compared to other states. Oregon has a 6.6% to 7.6% corporate income tax, plus a Corporate Activity Tax (CAT) that it imposes on companies for the privilege of doing business in the state. Individual income tax rates range from 4.5% to 9.9%. Residents in Oregon also have to contend with high property taxes and housing costs.
However, utility and workers’ compensation costs in Oregon are lower on average. Plus, Oregon does not have a general sales or use/transaction tax.
What is the state of Oregon’s infrastructure?
Oregon has a multimodal network that includes highways, local roads, rail, air, marine, and pipeline operations. The state also has a good telecommunications infrastructure that serves much of the state but much of Oregon’s infrastructure is aging and needs updating. Plus, infrastructure investments are needed in order to increase the number of shovel-ready industrial sites.
What are the other challenges of doing business in Oregon?
In addition to higher costs, businesses in Oregon have had to deal with a complex and rapidly changing regulatory landscape. CNBC gave Oregon an F in the “business friendliness” category in its latest Top States for Business report.
Oregon is also dealing with a shortage of workers. The number of new workers continues to outpace those retiring from the workforce, but not at a fast enough rate to support all businesses in various sectors.