Oregon Plummets to 39th in Annual Business Ranking
Oregon has plummeted 11 places in CNBC’s widely followed America’s Top States for Business ranking, falling from 28th place in 2024 to 39th in 2025. The rankings, released July 10, assess states in 10 categories and assign an overall ranking. Oregon’s 2025 overall score is its lowest in the history of CNBC’s rankings and a stunning 22 places lower than its 17th-place ranking just eight years ago (2017).
“CNBC’s rankings echo what businesses have been telling state leaders for years,” said Angela Wilhelms, president and CEO of Oregon Business & Industry. “Oregon’s slipping competitiveness should alarm policymakers. It’s well past time for them to listen to the business community and take serious action to improve the business climate. After all, a healthy private sector is necessary to generate increased prosperity, greater philanthropy and tax revenue for important government services.”
Oregon’s rankings slipped in several key areas this year. The state’s economy ranking dropped seven places, to 41st; its cost-of-doing-business ranking fell nine places, to 43rd; and its cost-of-living ranking fell eight places, to 45th. Oregon’s ranking also fell dramatically for quality of life (from 6th to 19th) and technology and innovation (from 9th to 14th).
The state’s rankings increased in some areas. Oregon gained three places for infrastructure (14th), 13 places for workforce (23rd), two places for education (35th), one place for access to capital (24th) and one place for business friendliness (47th). California joined New Jersey and New York this year as the only states deemed less business-friendly than Oregon.
“CNBC’s methodology this year considered some factors beyond states’ control, including risks from a trade war and a shrinking federal budget, and that’s appropriate given that those issues can impact states differentially,” noted Wilhelms. “But that’s a small piece of the overall rankings picture. Blaming those national issues for Oregon’s eroding competitiveness while ignoring the state’s own policies and climate is a red herring.”
You can learn more about the rankings in the Portland Business Journal.
OBI Announces 2025 Oregon Visionary Award Honorees
OBI is thrilled to announce the selection of two honorees to receive the Oregon Visionary Award – OBI’s highest honor – at its annual Vision Oregon Event, which will take place at the Portland Art Museum on Oct. 22.
OBI presents the Visionary Award to individuals, companies and organizations that, through steadfast service to their communities, illuminate a path to shared prosperity, built upon a thriving state economy with opportunity for all Oregonians. Awardees are those willing to set aside individual interests and politics to bring Oregonians together around a common set of values with a focus on practical solutions to the most difficult challenges of our time.
As Oregon’s reputation and economic competitiveness continue to struggle, this year’s Visionary Award winners demonstrate how well the state’s private sector still works. When it comes to innovation and inspiration, Oregon businesses still deliver.
The 2025 Visionary Award honorees are:
Daimler Truck North America. DTNA has produced vehicles in Oregon since the 1940s and currently employs more than 3,000 people at its Portland headquarters and manufacturing facility and at its Madras High Desert Proving Grounds. Since its inception, the company has been an industry leader in efficiency. Leland James founded Freightliner to produce trucks that cut weight by substituting aluminum for steel. In 2004, the company opened the first wind tunnel in North America designed to test full-size commercial vehicles. In recent years, DTNA has expanded its capabilities at the Portland facility to include the development and limited production of electric vehicles, such as the heavy-duty Freightliner eCascadia and the eM2 box truck. As part of broader efforts to explore emerging technologies, DTNA also partnered with Portland General Electric to open “Electric Island” in 2021 – a public charging station located near company headquarters, designed to support early stage electric commercial vehicle testing and infrastructure research.
NIC Industries. Founded in White City over 35 years ago, NIC Industries aspired to manufacture coating products that would truly have a global impact. NIC now produces industry-leading coatings that are distributed and sold in nearly 90 countries around the world. It is one of the 20 largest paint manufacturers in the country and employs nearly 250 people at its facility in Southern Oregon. NIC Industries began as a producer of high-quality powder coatings and under the leadership of CEO and innovator Brian Hall has become a leader in the production of liquid ceramic coatings, which enhance durability, chemical resistance and heat dissipation. The innovative coatings produced by NIC are now used in many industries, ranging from high-end consumer automotive products in the retail space to critical applications within the defense and space sectors. The company’s leading consumer product, Cerakote, can be found in retailers across the country, including Walmart, Amazon, Home Depot and more. NIC Industries take prides in manufacturing its products in the United States.
This year’s Vision Oregon Event will focus on entrepreneurship in Oregon, which will be the subject of the keynote address and subsequent panel discussion. The event also will include the announcement of the winner of the 2025 Coolest Thing Made in Oregon contest. It will take place on Wednesday, Oct. 22, at the Portland Art Museum from 3:30 p.m. to 6 p.m.
Trump Administration Unveils New Tariff Plans
What happened: Last week brought a flurry of new tariff announcements from President Trump. In addition to those already in effect, the president on July 9 announced a plan to impose a 50% tariff on imports from Brazil beginning Aug. 1. He threatened the next day to impose 35% tariffs on goods from Canada. And on July 12, he announced 30% tariffs on goods from the European Union and Mexico beginning Aug. 1. Canada, Germany and Mexico are all on the top-10 list of countries from which Oregon imports (third, seventh and tenth, respectively). It did not take these trade partners long to discuss reciprocal tariffs they might impose on U.S. goods exported to them.
Why it matters: A significant portion of Oregon’s economy is related to trade, both imports and exports. Economists estimate that one in eight jobs is supported by trade. In 2024, Oregon was one of only 11 states that export more than they import, and Oregon’s exports as a share of state GDP are the sixth highest in the country. In addition to the possible implications for businesses and jobs, households and businesses are likely to face higher prices for a wide range of goods.
Where to find more info: There is a lot to track, and if you find it hard to keep tabs on it, we don’t blame you. This New York Times site is helpful in understanding timelines and recent developments. You can also visit OBI’s federal policy resources page for helpful links.
Policy and Rulemaking Updates
Transportation package: Less than 12 hours after the 2025 legislative session adjourned, Gov. Kotek signaled that she might call a special session to pass a bill. While OBI is receiving calls from members and other interested parties asking for news on this front, we have yet to confirm that a special session will occur but believe one is likely in early fall. On July 7, meanwhile, Oregon Department of Transportation (ODOT) Director Kris Strickler sent a letter to ODOT employees providing details about imminent layoffs. Strickler said 483 current ODOT employees would be notified that they will be laid off as of July 31 and that 449 vacant positions would be eliminated, bringing the total reduction in workforce to 932 positions. He said another round of layoffs would be initiated early next year without additional funding. OBI will keep members apprised of developments related to a special session and possible transportation revenue and funding package in the coming weeks.
Recycling Modernization Act: Oregon’s Plastic Pollution and Recycling Modernization Act (RMA) became operative July 1. Producers that either sell or put their brand on packaging sold in Oregon were required to register with the Circular Action Alliance (CAA) by April 30. Those producers must pay CAA according to the packaging they’ve reported. Unfortunately, the implementation of the RMA has been rushed, and many producers were either unaware of it or did not receive adequate information to report their packaging to CAA accurately. As a result, participation in the program is lower than anticipated, and the costs associated with the program are astronomical. OBI has established an ad hoc EPR Committee to help members stay updated on the RMA as implementation and additional rulemaking occur, while also providing OBI valuable insight into ways to improve the program. The next meeting of that committee is scheduled for Aug. 20. Please let Belen Martinez know if you or someone else in your organization would like to join. Belen can be reached at belenmartinez@oregonbusinessindustry.com.
Unemployment insurance: On June 24, Gov. Kotek signed SB 916, which allows striking workers (both public and private) to collect unemployment insurance benefits, paid by employers, for up to 10 weeks. The law goes into effect on Jan. 1, 2026. The Oregon Employment Department will conduct rulemaking for the law later this year, which will clarify work-search requirements. During legislative hearings, employment department officials shared their belief that merely remaining in contact with their unions would allow striking workers to satisfy federal and state requirements that they actively look for work. However, the assistant secretary of the U.S. Department of Labor has said that maintaining union contact alone would not satisfy federal requirements, which could put Oregon at risk of losing federal funding. OBI has been told that the employment department plans to hold listening sessions for the rulemaking on July 31 and Aug. 4 and will share draft rules at that time. The formal rulemaking is slated to begin in late September or early October. OBI will continue to update members as we learn more.
Paid family leave: The IRS issued a ruling early this year about the tax treatment of paid family leave benefits and contributions. To further complicate an already complex law, the IRS has determined that federal tax treatment is based on the type of leave employees take. If an employee takes family leave for reasons that are unrelated to the employee’s own serious health condition, those benefits must be included in the employee’s gross income. If the employee takes medical leave for their own medical condition, the amount of leave attributable to the employer’s contribution also must be included in the employee’s gross income. Unfortunately, the Oregon Employment Department did not share this ruling with stakeholders until June, so OBI is still trying to determine its implications. In order to be able to report this information, the Employment Department will need to make significant program changes and communicate an extraordinarily complicated matter to employers and employees, now on an even shorter time frame. The department has urged the IRS to reconsider the ruling and submitted these comments. OBI will keep you updated as this progresses, but you should consult your tax professional if you have had an employee use the paid leave benefit.
Oregon Business Matters Talks with Jordan Papé
Jordan Papé is one of Oregon’s busiest people. He’s the president and CEO of The Papé Group, a multigenerational family business that operates in nine states throughout the west. He is highly engaged in civic and public life, and he serves on OBI’s board of directors.
The Oregon Business Matters podcast recently spoke with Jordan about the evolution of his family’s business, its work to fuel vehicles with clean hydrogen, the advantages and challenges of operating in Oregon, and more.
Oregon Business Matters focuses on insights, issues and initiatives that affect Oregonians’ shared prosperity and the state’s economy.
The Papé interview follows recently released interviews with Escape Lodging Chairman Patrick Nofield and Epic Aircraft CEO Doug King.
Episodes can be found on OBI’s website here and on major podcast platforms, including Apple, Spotify and YouTube.
Check Out Oregon’s Rules for Heat and Smoke Exposure
In 2022, Oregon OSHA adopted rules governing workplace exposure to wildfire smoke and excessive heat. The heat rules kick in when the heat index (apparent temperature) equals or exceeds 80 degrees Fahrenheit. The wildfire smoke rule kicks in whenever the air quality index exceeds 100.
OSHA provides detailed information about the scope of these rules, exemptions and requirements. Learn more about the heat exposure rules here and the wildfire smoke rules here.
OBI encourages all employers to review both sets of rules as we are now in the time of year when high temperatures and wildfires happen more frequently.
Notable News
Intel layoffs: Washington County leaders are still coming to grips with the announcement July 11 that its biggest corporate employer, Intel, will lay off nearly 2,400 workers as the faltering chipmaker responds to diminishing sales. The loss of so many jobs at once is sure to have ripple effects on everything from the county’s housing market to its school enrollment numbers and the success of other local businesses that contract with Intel or serve their formerly well-paid workers (The Oregonian).
New manufacturing plant: Colorado-based manufacturing company Ball Corp. plans to open a new aluminum packaging plant in Linn County, the company and the state announced July 3. The global manufacturer selected Millersburg for its new facility and it expects to bring 100 new jobs to the area. Construction is underway and the facility is expected to be ready for production in mid-2026 (Portland Business Journal).
Trade caucus: Two Oregon lawmakers have launched a bipartisan caucus to promote trade, business development and international economic policy. Reps. Daniel Nguyễn, D-Lake Oswego, and Shelly Boshart Davis, R-Albany, announced the creation of the new Trade Caucus on July 9, with Nguyễn calling it “long overdue” (Oregon Capital Chronicle).
Big Pink fixes: The investor buying downtown Portland’s U.S. Bancorp Tower said he plans to spend millions of dollars to draw new tenants. The spending, he said, would be needed to overcome Portland taxes he says deter businesses from locating in the city (The Oregonian).
Oregon health care: Oregon’s health care landscape faces a major upheaval under the landmark federal tax and spending bill signed into law last by President Donald Trump (The Oregonian).
Oregon bank acquisition: The acquisition of Lewis & Clark Bank by Salem-based Maps Credit Union is a rare type of transaction, but one that’s starting to become more common. The two institutions made separate announcements about the acquisitions in April. Banking Dive reported it was the fourth proposed acquisition of a bank by a credit union this year so far (Portland Business Journal).
PGE eliminates positions: Portland General Electric, under pressure to avoid more big rate hikes, has laid off 53 full-time workers, eliminated 123 contract positions and canceled plans to fill 154 open positions (Portland Business Journal).
Portland park tax: Negotiations between the Portland Metro Chamber and city officials over the appropriate size of a parks levy to send to the November ballot have ended, at least for now. The number they settled on: $1.40 per $1,000 of assessed property value. If approved by Portland City Council, the referral would be a 60-cent increase to the current parks levy, which is set to expire in 2026 (Willamette Week).
Wine sales: New data confirms that 2024 wasn’t a good year for Oregon wine. Sales fell by nearly 220,000 cases, a 4% drop, the first annual decline since 2009 as reported in the state’s annual Vineyard and Winery Census (Portland Business Journal).
Prosper Portland: Three weeks after Prosper Portland interim Executive Director Shea Flaherty Betin was asked to step down after a contentious budget session, the agency has named a new leader. Cornell Wesley will step into the top role. Wesley is currently chief economic development officer for the city of Birmingham, Alabama, an agency he has led since January 2021 (Portland Business Journal).
Sawmill to close: A sawmill in Pilot Rock will close Sept. 1. Sixty-two of its employees will be laid off. The building supply maker Woodgrain, based in Idaho, acquired the northeast Oregon sawmill and another in La Grande seven years ago from wood manufacturer Boise Cascade (The Oregonian).
Housing office: Gov. Tina Kotek has officially launched a state office to spur housing production. The Housing and Accountability Production Office, approved by Oregon lawmakers in 2024, will be jointly operated by the Department of Land Conservation and Development and the Building Codes Division (Portland Business Journal).
Construction jobs: While construction employment remains high by historical standards — it’s still above pre-pandemic levels — the number of jobs has dropped 4% in the past 12 months, according to the most recent data from the Oregon Employment Department. That is amplifying a broader decline in the state’s labor market (The Oregonian).
Ride share tax: Starting July 1, Uber and Lyft riders in Portland now pay significantly more for each trip as the city increased its ride-share surcharge to $2 per ride, the highest flat rider fee of any city in the country (KGW).
Rose Quarter project: The U.S. House’s passage of a sweeping tax policy bill backed by President Donald Trump jeopardizes high-profile federal transportation grants that state and local officials have penciled into their budgets—including $488 million for an overhaul of Portland’s Rose Quarter (Willamette Week).
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.
- 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.