OBI Releases 2026 Oregon Competitiveness Book
What happened: The Oregon Business and Industry Foundation today released the 2026 Oregon Competitiveness Book, a collection of data and rankings covering dozens of topics that shed light on Oregon’s economic health and competitive position. The Oregon Competitiveness Book, now in its third year, serves as a companion to the Oregon Scorecard, OBI’s online collection of economic data.
What does it show: Like the Oregon Scorecard, the Oregon Competitiveness Book illustrates Oregon’s continuing competitive struggles. While Oregon has improved in some areas since the release of the 2025 Oregon Competitiveness Book – exports per capita jumped to 6th in 2024 from 9th in 2023 – the overall picture is worrisome. In too many important areas, Oregon is failing to keep pace with the rest of the country. These include below-average GDP, employment and population growth combined with a per-capita ranking for state and local taxes that has entered the nation’s top 10.
Oregon Competitiveness Book vs. Oregon Scorecard: While the information tracked by the Oregon Competitiveness Book and Oregon Scorecard does overlap to some degree, it is presented in very different ways. The Oregon Competitiveness Book provides rankings over a short period – generally one or two years – and is updated annually. The Oregon Scorecard provides historical information – up to 20 years – that illustrates long-term trends. It is updated throughout the year as new information becomes available.
Learn more: The Oregon Competitiveness Book can be viewed and downloaded on the Oregon Scorecard home page here.
Get Ready for the 2026 Legislative Session
What’s happening: The 2026 legislative session will begin on Monday, Feb. 2, and end no later than Monday, March 8. The six-week session that begins next week will move quickly, unpredictably and perhaps consequentially. Below are some ways to prepare:
Read OBI op-ed: The Portland Business Journal on Jan. 20 published an op-ed in which OBI President and CEO Angela Wilhelms urges legislators to address Oregon’s economic and competitive slide. You can read it here.
Bookmark OBI session page: OBI’s 2026 legislative session web page will feature timely updates on key legislation throughout the session. It also contains links to related resources, including the Oregon Competitiveness Agenda, 2025 End of Session Report and updated legislative poster. Go here to visit the page.
Resources for legislative engagement: Visit OBI’s web page with information about how you can engage in legislative advocacy, such as contacting lawmakers or providing testimony on a proposal. Go here to visit the page.
Updated legislative poster: OBI has updated the downloadable poster for the 83rd Oregon Legislative Assembly to reflect changes in the composition of the House and Senate since its original publication in January 2025. Go here for the poster.
Check Out Two New Oregon Business Matters Interviews
OBI’s Oregon Business Matters podcast kicks off 2026 with two timely episodes:
Conditions in Portland: Host Angela Wilhelms talks with Portland Mayor Keith Wilson and Portland Metro Chamber President and CEO Andrew Hoan about conditions in Oregon’s largest city. The conversation touches on unsanctioned camping, overnight shelter construction, increasing trust in government, the city’s tax burden and other matters of importance to Portland’s residents, visitors and businesses.
Oregon’s Tax Competitiveness: Jared Walczak, a senior fellow at the Tax Foundation, joins Angela to discuss the organization’s annual ranking of state tax environments, the State Tax Competitiveness Index. Until recently the vice president of state projects, Walczak explains how the index works and why 35th-ranked Oregon has fallen further than any other state since 2020. He also warns about the consequences of decoupling Oregon from the federal tax code.
These and other episodes can be found on OBI’s website here and on major podcast platforms, including Apple, Spotify and YouTube.
Webinar Recording: Learn about the Partners Retirement Plan
OBI has teamed up with The Partners Group to offer OBI members access to the Partners Retirement Plan – a pooled 401(k) solution. A pooled employer plan (PEP) allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit–such as eligibility, employer match and vesting. This shared structure is designed to help reduce administrative burden, fiduciary risk and overall plan costs.
Through this partnership, OBI members will see even more savings because TPG offers special pricing to OBI members.
In this recorded webinar, Kyle Hagmeier and Mike Walters from The Partners Group discuss the origin and workings of the Partners Retirement Plan.
Go here to watch the webinar. Go here to view The Partners Group’s slide presentation. And go here if you’d like to schedule a meeting with The Partners Group to discuss the plan.
Apply for the 2026 International Business Awards
The Oregon Consular Corps is seeking applications for the 2026 International Business Awards, which will recognize four companies involved in international trade or foreign direct investment. This year’s awards will recognize extraordinary businesses in the agricultural sector, broadly defined.
In applying, interested businesses should describe the challenges they’ve overcome, the wins they have notched in international markets and something unique and innovative they’re doing that sets them apart. Award criteria include, but are not limited to:
- Growth in overseas markets
- Entrepreneurial first steps into the international trade sector
- Leadership and impact on Oregon’s and the Pacific Northwest’s economy
- Impact across the agricultural sector
Go here to learn more, here to apply for this year’s awards and here to learn about last year’s winners. Applications are due Feb. 24.
Awardees will be recognized May 14 at the Celebrate Trade Gala, which serves as a fundraiser for competitive scholarships to students at area universities pursuing careers in international fields.
Policy and Rulemaking Updates
House development concepts: From Jan. 13-15, the Legislature held informational committee meetings that provided a limited preview of some of the bills that will be introduced during the coming session. All were in draft form and will almost certainly change before the session begins. The House Economic Development, Small Business and Trade Committee heard from the governor’s office about previously announced economic-development proposal It would establish a fast-track permitting process for certain large and complex economic development proposals, adopt elements of permitting transparency similar to those implemented by executive order in Washington, improve Oregon’s Enterprise Zone Program and invest $40 million in industrial land readiness. The Legislature is expected to see a revival of the “FISH and CHIP” Act sponsored by Rep. Daniel Nguyen, D-Lake Oswego, during the 2025 session. It passed the House 46-1 but did not receive a hearing or vote in the Senate. Legislators are also expected to consider proposals to promote industrial symbiosis and Oregon’s “blue economy”.
Senate economic development: In the Senate, OBI testified in front of the Senate Committee on Commerce and General Government along with Senator Janeen Sollman, D-Hillsboro, on her proposed Oregon JOBS (Jobs, Opportunity and Build-ready Sites) Act. This bill, focused on advanced manufacturing (with emphasis on clean energy and biotech/life sciences), would bring much-needed industrial development to the Hillsboro area previously identified during the 2023 CHIPs Act. It also would expand Oregon’s R&D tax credit, create a local option property tax exemption (five years) for new capital equipment and machinery in advanced manufacturing, and implement permitting transparency concepts from Washington state. This proposal is supported by a wide array of businesses, local chambers, associations, local governments, and economic development organizations.
Estate tax changes: On Jan. 13, the Senate Interim Committee on Finance and Revenue held a hearing on potential improvements to Oregon’s estate tax, which is the country’s most burdensome. Only 12 states have estate taxes, and Oregon’s has the lowest threshold, applying to estates valued at $1 million or more. It has long provided an incentive for people to leave the state. While the committee’s interest in the estate tax is encouraging, the proposed solutions actually would make Oregon less competitive. Instead of simply increasing the estate tax’s threshold, legislators seem interested in doing so only if the tax rate itself increases. According to modeling released by the Legislative Revenue Office, each of the proposed solutions would involve substantial increases to estate tax rates. OBI will continue to advocate for increasing the estate tax threshold, better aligning Oregon with the rest of the country.
Oregon’s tax connection: Despite significant chatter about Oregon’s connection to federal tax law (specifically, how taxable income is defined), neither revenue committee has yet indicated what it will propose with respect to disconnecting from all or portions of the pro-growth tax provisions of H.R. 1. The chairs of the House and Senate revenue committees had previously provided OBI with a list of proposals under consideration, which included the removal of several personal income tax deductions and bonus depreciation for equipment, machinery and production property. OBI has explained to legislators that bonus depreciation helps companies of all sizes and does not ultimately deprive the state of revenue. In fact, many legislators have recognized that disconnecting from this provision would increase Oregon’s structural budget deficit in later biennia. OBI expects tax code connection to move back to the forefront as the 2026 session begins on Feb. 2, especially after the next quarterly revenue forecast is released on Feb. 4.
Accrued leave payout: Rep. Travis Nelson, D-Portland, will introduce a bill requiring employers to pay out accrued vacation and PTO. A previous version of the bill also would have required them to pay out sick time, but OBI has heard that such a provision is unlikely to be included in this bill because of concerns from state agencies about high costs. Current law requires these benefits to be paid out only if required by employer policies and past practices. OBI will oppose this costly proposal.
Felonies for employers: A bill expected to be considered during the 2026 session would subject employers to not only civil liability but also potential criminal prosecution for pay disputes, including minor disputes including, for instance, an employee’s decision to cut a meal period short voluntarily. OBI also will oppose this proposal.
Local Control & Safety Act: OBI’s ballot initiative to repeal HB 3115, an outdated law that restricts local governments’ ability to respond to unsanctioned public camping, received a certified ballot title from the attorney general’s office on Jan. 22. The certified title fails to capture even close to all of the suggested improvements submitted by OBI during the comment period. Any party that participated in the comment period now has the opportunity to appeal to the Oregon Supreme Court for further view. However, a court review delays the ability to gather qualification signatures until a ruling is issued. OBI’s first priority remains urging the Legislature to repeal or modify the law during the 2026 legislative session. Sen. Mark Meek, D-Gladstone, introduced a repeal concept as a committee bill earlier this month, and the concept continues to garner interest from members of both parties.
Cleaner Air Oregon rulemaking: On Jan. 12, the Oregon Department of Environmental Quality (DEQ) held a rulemaking advisory committee (RAC) meeting on its proposal to change more than 300 toxicity reference values for chemicals regulated under the Cleaner Air Oregon air toxics program. The meeting was largely focused on providing background information and explaining the process for the RAC. Though additional meetings have not been scheduled, future meetings will include technical discussions of the scientific underpinnings of the proposal. Typically, DEQ defers to authoritative scientific sources of data such as the U.S. Environmental Protection Agency and the California Air Resources Board, but DEQ has cited itself as the authoritative source for 184 of the chemicals being evaluated. In a review of just nine of the chemicals, a national toxicological consulting firm found the scientific basis for the proposal to be weak or inaccurate. OBI expects the next meeting to be scheduled in the spring. OBI and other representatives of the regulated community are serving on the RAC. Visit the rulemaking page here for more information.
CPP listening sessions: Later this year, DEQ will initiate a Climate Protection Program (CPP) rulemaking focused on emissions-intensive, trade-exposed (EITE) manufacturing sectors. The objective is to develop a greenhouse gas intensity benchmark to address the risk of certain facilities leaving the state. These are facilities that compete with similar facilities in other states or countries with no climate regulations or less costly policies like cap-and-trade programs. Although the CPP became effective in 2025, the program does not go into effect for the state’s 37 EITE facilities subject to the rule until 2028. The idea is that these facilities would be evaluated according to energy efficiency rather than being subject to the CPP’s declining cap on emissions. DEQ is planning to hold listening sessions with EITE facilities this spring, begin the rulemaking advisory committee process in June and propose the rule for adoption in 2027. OBI will provide updates as they become available.
Fixed span for I-5 bridge: On Jan. 16, the U.S. Coast Guard announced it will allow the Interstate Bridge Replacement Program (IBRP) to build a replacement I-5 bridge with a fixed span with 116 feet of clearance. The current bridge features a movable span, which brings freeway traffic to a halt periodically. The decision allows the IBRP to finalize and submit the final supplemental environmental impact statement with a fixed-span replacement bridge solution that best balances the needs of all users and modes of transportation with the need to manage costs. This decision also clears the way for the IBRP to finalize the updated cost estimate. OBI submitted a letter earlier this month to the Coast Guard in support of a design that would not include a movable span.
Health care rules: OBI filed comments on Jan. 13 that urge reconsideration of significant proposed increases to the Oregon Health Authority’s Health Care Market Oversight Program fee structure. Under the current draft rules, fee increases for transaction reviews would expand compliance costs dramatically, with existing fees rising by 250% to 1,400%. Additionally, the agency is introducing new fees and civil penalties for failure to comply with program demands. OBI opposed these changes, raising concerns that such added financial burdens and vague penalty language could disadvantage health care providers and payers without improving access, affordability or transparency. You can read OBI’s full letter here.
Health care costs: Last week, OBI convened a group of business leaders to meet with Rep. Rob Nosse, D-Portland, to discuss rising health care costs and how those pressures affect business decisions and the ability of companies to grow and expand. Rep. Nosse chairs the House Health Care Committee and is a leading voice on health care policy in the Legislature. Employers shared the steps they take to shield employees from rising costs, as well as concerns about increasing administrative and reporting burdens placed on businesses by state agencies. OBI plans to hold additional small-group conversations throughout the year so policymakers can hear directly from business owners as they develop public policy.
Health affordability committee: The Oregon Health Authority’s Affordability Committee seeks a member with experience as a health care purchaser, defined as “employers, business coalitions, labor organizations, consumer groups and government agencies that arrange or negotiate health coverage on behalf of a group of people.” The application deadline is Friday, Feb. 6. Learn more here.
Transportation: The headline issue remains the fallout of the successful effort to refer HB 3991, the transportation package passed in a 2025 special session. Following the effort’s success, the governor announced her desire to repeal the bill during the 2026 legislative session, attempting to avoid a November vote entirely. As reported by the Oregon Journalism Project, however, a 1935 attorney general opinion raised questions about the feasibility of such a repeal. The Office of Legislative Counsel subsequently reversed guidance, concluding that the Legislature can’t repeal a measure and deny citizens the vote they requested. In response, legislative leaders have announced their intent to move the vote from the November 2026 general election to the May 2026 primary.
Prosperity Roadmap progress: Gov. Kotek has named former Senate Republican leader Tim Knopp as the state chief prosperity officer, a position included in her Oregon Prosperity Roadmap announced Dec. 2. Another component of the roadmap, the Oregon Prosperity Council, met for the first time on Jan. 22. Its work is set to be finished by June 30.
Notable News
Data centers: Data centers are proliferating across Oregon, consuming a growing share of the state’s energy, water and industrial land. Gov. Tina Kotek said she’s convening a workgroup to take a step back and gauge their impact on the state’s environment and energy supply (The Oregonian).
Oregon exports: A new report on exports included some sobering news for the Portland metro area. A Census Bureau report released in December showed that exports through the Portland-Vancouver-Hillsboro area dropped 18.9% through the third quarter of 2025, ranking the region dead last in growth among the 40 metros tracked (Portland Business Journal).
Prevailing wage: The Bureau of Labor and Industries has ordered a contractor to pay prevailing wages to remove derelict boats, increasing public costs and angering state ports (Oregon Journalism Project).
AI regulation: As artificial intelligence chatbots become more common, Oregon lawmakers are weighing new requirements for companies such as OpenAI’s ChatGPT to protect children’s mental health (The Oregonian).
Education funding: Lawmakers are laying the groundwork for a huge shift in how the state calculates how much money is needed for Oregon schools to produce excellent academic results (The Oregonian).
Leatherman CEO: Ben Rivera has stepped down as CEO of Leatherman Tool Group, but he is staying on in a different capacity at the family-owned toolmaker based in Northeast Portland (Portland Business Journal).
Oregon population: As Oregon leaders seek to revitalize the state’s business reputation, economists see conflicting signs about where Portland— and the state as a whole — is headed. The economic and population dips Oregon experienced during the COVID-19 pandemic have not entirely disappeared and the outlook is dour among those who live in the Portland metro area, according to a recent survey (Oregon Public Broadcasting).
Seasonal workers: For the last three years, Mt. Bachelor has paired up with Bend’s Campfire Hotel to provide affordable workforce housing for some of the ski mountain’s workers in Central Oregon, where affordable rentals are in short supply (Oregon Public Broadcasting).
Transportation plan: Oregon lawmakers have spent more than a year trying and failing to secure more dollars to maintain the state’s roads and bridges. Yet, in public and private meetings this month in Salem, they have found themselves back at square one (The Oregonian).
Alpenrose Dairy closure: After a much-touted move to Clackamas meant to secure its future in the Portland area, Alpenrose Dairy is now dialing that plan back. The company announced Jan. 19 it will shut down operations at its Clackamas facility at the end of March and consolidate production in Washington. The decision will eliminate 35 jobs (The Oregonian).
State budget: The Oregon Department of Human Services and the Oregon Health Authority say they need $340 million more in state funding and 475 more workers between now and June 2027 to comply with new demands from Republicans’ far-reaching 2025 tax and budget-cutting bill (The Oregonian).
Ed Diehl runs: Oregon Rep. Ed Diehl, a Republican from Scio who helped lead the recent referendum effort to halt transportation tax hikes, will run for governor this year, he confirmed (The Oregonian).
Portland school budget: In Portland, district leaders have released an early draft of how they would close a $50 million budget gap that includes 288 fewer employees overall, including 180 fewer employees in the district’s 81 school buildings and 108 fewer staff members in its central office, many of whom juggle assignments in multiple schools (The Oregonian).
Salem parking tax: During the first six months of paid on-street parking in downtown Salem, the city collected $1.19 million in revenue and is continuing to outpace projections. City leadership is set to recommend removing the downtown business parking tax at the Salem City Council meeting on Jan. 26 (Salem Statesman Journal).
Portland foot traffic: More pedestrians visited downtown Portland in 2025 than in 2024. So reports Downtown Portland Clean & Safe, which revealed that 32 million-plus pedestrians visited downtown in 2025, up 5.5% from a year earlier. What’s more, pedestrian levels on Saturdays are about 90% of pre-pandemic figures, according to the group’s Downtown Foot Traffic Report. The one downside: a lack of office workers. Weekday numbers, normally buoyed by workers’ trips, are lagging (Portland Business Journal).
Check Out OBI’s Member Benefits
OBI offers members a range of programs that can save money or help small businesses offer benefits normally available only to much larger companies. Benefit programs include:
- HealthChoice: Helps businesses with fewer than 100 employees offer comprehensive health-care benefits through our partnership with Regence BlueCross BlueShield of Oregon.
- Partners Retirement Plan: Allows multiple employers to offer a 401(k) benefit to employees through a group structure while maintaining individual company design and control over the benefit – such as eligibility, employer match, and vesting.
- CompSAFE: Helps eligible companies enjoy workers’ compensation discounts through SAIF Corporation.
- Fuel Program: Helps members save fuel costs through our partnership with Ed Staub & Sons.
- ODP Business Solutions: Helps OBI members save money on office furniture, supplies and other services.
- LegalPLUS: OBI members receive 15 minutes of free legal consulting per month from Innova Legal Advisors.
Go here to learn about all of OBI’s member benefits.