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Report Highlights Importance of Trade to Oregon Economy

Trade Report: On April 28, the Portland Metro Chamber, in partnership with OBI and the Port of Portland, released a 2025 State of Oregon Trade report, which describes the state’s heavy reliance on international trade and its related vulnerability to tariffs and other policies that disrupt the flow of goods and the function of complex supply chains. The report was prepared by ECOnorthwest.

Oregon exports: Oregon is one of only 11 states with trade surpluses in goods. In 2024, the value of state exports exceeded the value of imports by nearly $6 billion. The state’s chief exports by value include computer and electronic products, machinery, transportation equipment and agricultural products. In 2024, the largest destinations for Oregon exports were, in descending order, Mexico, China, Malaysia and Canada.

Broad impact: Trade plays a very large role in the state’s economy. Notable statistics from the report and associated slide deck presented during OBI’s April 28 Oregon Trade Summit:

  • Goods exports accounted for more than 10% of state GDP, the nation’s sixth-highest share.
  • 270,700 Oregon jobs – one in eight – are supported by trade
  • 88% of Oregon businesses engaged in trade employ fewer than 500 people
    In 2023, the average wage across Oregon’s top trade-related industries was about 12% higher than the statewide annual average pay in all industries.

Why it matters: Because the Oregon economy is rooted in global trade, the report concludes, it is “deeply exposed to changing conditions” such as those created by escalating tariffs. These include not only tariffs imposed by the United States on imported goods but also retaliatory tariffs imposed by other countries on things they buy … like Oregon exports.

State policy: Policymakers in Oregon have no control over federal trade policy, but they can change conditions within the state – for better or for worse. Increasing taxes and regulatory burdens on businesses already contending with the effects of tariffs would discourage further investment in Oregon, limiting job opportunities and, ultimately, state and local tax revenue.

Learn more: Check out the 2025 State of Oregon Trade report here and watch a recording of OBI’s virtual Oregon Trade Summit (see below). OBI’s Oregon Competitiveness Agenda, which contains dozens of proposals to improve Oregon’s business climate, can be found here.

Meeting Will Focus on Sports Tourism, Recreation – Join Us!

Register here for OBI’s Annual Meeting, which will focus on Oregon’s sports tourism and recreation economy. The event is open to OBI members and non-members. The program:

Restoring Oregon’s Competitiveness
An Update on OBI’s Initiatives, Priorities and Outlook

Championing Oregon’s Sports Tourism & Recreation Economy

Part I: The Economic Impact
Presented by Dr. Mike Wilkerson, ECOnorthwest

Part II: Statewide Strengths and Opportunities
A Panel Discussion Facilitated by Jim Etzel, CEO of Sport Oregon, and featuring:
Heather Davis, CEO of the Portland Timbers
Natalie King, Sr. Vice President of the Portland Trail Blazers
Jeff Knapp, CEO of Visit Bend
Samara Phelps, President & CEO of Travel Lane County

The Annual Meeting will take place June 4 at the Salem Convention Center. Doors will open at 3 p.m., and the program will begin at 3:30 p.m. A networking reception will follow, beginning at 5 p.m.

If you have questions about the Annual Meeting or would like to consider sponsoring the event, contact Patti Winter at PattiWinter@oregonbusinessindustry.com.

Miss the Oregon Trade Summit? Watch the Video

On April 28, state and national industry and trade experts participated in OBI’s Oregon Trade Summit, a virtual event focused on the effects of tariffs on Oregon’s export economy. A recording of the webinar is available for anyone who couldn’t attend (see below).

The summit included:

  • Closing Remarks and Next Steps, Angela Wilhelms, president and CEO, OBI

Watch a recording of the webinar here and read Mike Wilkerson’s slides here.

Oregon Drops in National CEO Ranking

Oregon Drops: Oregon fell to 44th in Chief Executive’s annual Best and Worst States for Business ranking, which was released on April 28. Oregon’s 2025 ranking is one place lower than its 2024 ranking. Oregon now ranks higher than only Washington, New Jersey, Massachusetts, Illinois, New York and California.

About the Ranking: Chief Executive bases its rankings on survey data involving more than 650 CEOs. Key considerations this year include state-level policy stability – particularly important given the rapidly changing federal landscape – taxation, regulatory climate and the availability of talented employees.

Not Surprising: Oregon’s decline further into the survey’s bottom-10 states for business is not surprising. In 2024, Oregon dropped seven places in CNBC’s annual America’s Top States for Business ranking. The state ranked near the bottom of CNBC’s ranking for business friendliness, besting only New York and New Jersey. On April 23, multiple economists discussed the state’s economic problems during a sobering hearing held by the Senate Committee on Labor and Business.

Why it Matters: Oregon needs thriving businesses to create jobs and generate revenue for public services. As the state’s business climate continues to deteriorate, Oregon businesses will look increasingly to invest in other states, a trend covered recently in an eye-opening study by Business Oregon, the state’s economic development agency.

Policies vs. Prosperity: Oregon’s steadily eroding business climate should motivate legislators to seek improvements, including proposals contained in OBI’s Oregon Competitiveness Agenda. Instead, many policies under consideration during the current legislative session – including one that would make striking workers eligible for unemployment benefits – would erode the state’s competitiveness even further.

Learn More: Read OBI’s Oregon Competitiveness here. Check out OBI’s lists of job killer bills here and job creator bills here.

Legislative and Rulemaking Updates

Pace Picks Up: Things are becoming more active again in the Legislature as the session transitions from the mid-point lull to the home stretch. Policy bills will face another deadline in late May (the second chamber policy committee), budget activity will heat up after the May 14 economic and revenue forecast, and joint committees are beginning to clear their plates. There isn’t a lot of movement right now, but there will be.

Unemployment for Strikers: Last week, the House Committee on Labor and Workplace Standards held an informational hearing and a public hearing on SB 916, which would allow striking workers to collect unemployment benefits for up to 26 weeks. During its presentation, the employment department said that the bill would have a minimal impact on workloads and demands on the unemployment trust fund. Unemployment insurance administrator Lindsi Leahy suggested that striking workers would be required only to remain in contact with their unions to collect unemployment benefits. OBI believes that interpretation violates the Social Security Act, which requires states to ensure that claimants are able to work, available for work and actively looking for work. Joined by both private and public employers, OBI testified in opposition at the April 30 public hearing. The chair of the committee, Rep. Dacia Grayber, D-Portland, remains quite aggressive in her support of the bill. Please call your legislator about this bill. Even if they are a “yes” vote, it is important that they hear from constituents and area businesses. If you need help with contact information, talking points, etc., please reach out to Paloma Sparks (palomasparks@oregonbusinessindustry.com).

Property Owner Liability: SB 426, which would impose liability on property owners and general contractors for allegations that subcontractors have not paid workers on projects, is set for a hearing May 7. This bill, brought by building trades unions, would allow workers or third parties (including unions) to sue owners and general contractors for the alleged actions of subcontractors, even if the owner or general contractor had done nothing wrong. Please call your legislator about this bill as well.

Transportation Package: OBI remains very engaged in conversations about Oregon’s transportation needs and the Legislature’s interest in a substantial package. OBI’s transportation principles can be found here. They will guide OBI’s evaluation of funding proposals. On April 4, the co-chairs of the Joint Transportation Committee released their initial proposal, which OBI did not consider to be serious given the volume of taxes and scattershot spending. On April 30, a group of House Republicans proposed an alternative package built from a premise of avoiding tax increases and eliminating waste. Meanwhile, a small table has been set with a handful of legislators, but they have been sworn to negotiate in secret. OBI hopes legislative leaders take a “back to basics” approach.

Jet Fuel Tax: The Joint Committee on Transportation has scheduled a May 5 vote on HB 2153, which would double the tax on jet fuel, index the new rate to inflation and dedicate the revenue to projects inconsistent with federal requirements. The bill received an abbreviated public hearing on March 24, where fewer than half of the people who registered to testify were allowed to do so. OBI is part of a coalition that strongly opposes the bill because it would dramatically increase the cost of commercial aviation in Oregon, mandate continuous biennial tax increases regardless of need, and almost certainly lead to litigation over the state’s planned uses.

Organized Retail Theft: On May 5, the House Committee on Judiciary will hold a public hearing on SB 275, which would expand the allowable uses for the funds allocated to the Organized Retail Theft Grant Program. Meanwhile, SB 960, which would increase funding for the program, remains in the Joint Committee on Ways and Means. Passing the bills would enhance the safety of retail customers and employees and slow losses due to retail crime.

Labor Boards: OBI has learned that HB 2548, which would create an agricultural workforce labor standards board, will not be moving forward this session. Instead, it will require a study, leading to a report in 2026. It is unclear who will conduct the study and to what extent employers will be invited to participate. HB 3838, which would create a similar workforce board for home and community-based services, recently received a public hearing in the House Committee on Rules.

Agency Rulemaking: May 1 was the deadline for agencies to implement Gov. Kotek’s guidance for improving rulemaking transparency. Agencies are expected to make rulemaking easier to locate from their main agency pages, provide more background information, publish comments, post rulemaking planning calendars, and so on. Most agencies are working to implement the requirements, and OBI supports progress of any kind. However, the governor’s guidance is not binding and would do nothing to improve the quality of information used in the rulemaking process, including meaningful economic and fiscal impact statements. OBI continues to pursue legislative improvements in HB 2692, which would modernize the rulemaking process, and HB 3382, which would increase transparency.

Northwest Gas Association Conference to Take Place June 3-5

The Northwest Gas Association will partner with the Alliance of Western Energy Consumers to host the Annual Energy Conference in Sunriver from June 3-5. The conference provides a unique forum that explores regional energy issues, including electricity, through the lens of natural gas providers, consumers and other market participants.

The conference will feature:

  • A keynote address by Amy Harder, executive editor of Cipher News
  • Power-packed panels
  • Networking opportunities

Go here to register.

Notable News

Jeld-Wen Closure: Door and window manufacturer Jeld-Wen plans to close a factory in Klamath County by the end of the year and lay off all 128 people who work there. The factory set for closure is in the small city of Chiloquin, about 30 miles north of Klamath Falls (The Oregonian).

Washington Strike Bill: Lawmakers in Washington state approved a measure to allow striking workers to collect unemployment benefits, a topic that has proven contentious among state leaders to the south (The Oregonian).

Housing Bureaucracy: Low-income people and their families in the greater Portland area are getting evicted or losing access to needed treatment instead of getting help from a new Oregon Health Authority program, advocates and others said April 30. The new state housing assistance program is intended to help people be healthy by averting homelessness, among other things. But in its first six months it has become a bureaucratic nightmare for many people as well as the social workers trying to help them, according to a coalition of 30 groups that testified at a public meeting of the state Medicaid Advisory Committee (The Lund Report).

Bend ADUs: Accessory dwelling units — or ADUs — have become a popular option for Bend homeowners to provide housing for friends and family or generate rental income to help pay off their own homes. The city of Bend may soon allow property owners to place two of these small secondary units on their properties instead of just one (The Bulletin).

Hospital Woes: In the 18 years of hospital profitability data the Oregon Health Authority has collected, only one year—2022, a COVID hangover—yielded lower profits than 2024. “We are at a tipping point in this state,” Becky Hultberg, CEO of the Hospital Association of Oregon, said in an interview. “Hospitals are on the brink of closure” (Willamette Week).

Development Fees: The top elected leaders for Oregon and its most populous city unveiled an ambitious pitch May 1 that they hope could reverse Portland’s apartment construction slump that threatens local and statewide homebuilding goals aimed at containing the cost of housing. Portland would waive all housing development fees — known as system development charges — over the next three years or until 5,000 new units are in the pipeline under the proposal detailed by Gov. Tina Kotek and Mayor Keith Wilson (The Oregonian).

Oregon Tool: Oregon Tool has promoted its chief financial officer to CEO as the Portland manufacturer struggles with liquidity and sales. The company announced May 1 that CFO Terry Hames will take over as chief executive and CEO Elliot Zimmer “will transition out of Oregon Tool at the end of April 2025” (Portland Business Journal).

Sanctuary Cities: The Trump administration escalated its showdown with Democratic-led states and cities over immigration enforcement on April 28, with the president signing executive orders that his press secretary said will “unleash America’s law enforcement to pursue criminals” and direct federal agencies to publish a list of “sanctuary cities” that do not cooperate with immigration agents (Tribune Content Agency).

DEQ Cyberattack: Earlier this month, the Oregon Department of Environmental Quality sent an email to members of the public, media organizations and other state agencies. A week later, DEQ shut down its networks as it faced a massive cyberattack — and it internally warned staff that a website linked in that statewide email was hacked. But it has not warned members of the public, other state agencies or media organizations that received the email (Oregon Public Broadcasting).

Open Senate Seat: State Rep. Courtney Neron, D-Wilsonville, hopes to jump to the Senate after her seatmate’s death from cancer earlier this month. Neron, who is in her fourth term in the House and chairs the House Education Committee, announced her interest in an appointment to finish Sen. Aaron Woods’ term on April 28 (Oregon Capital Chronicle).

Climate Tax: Three unlikely allies are linking arms to defend the Portland Clean Energy Fund, the city’s climate tax on large retailers, from city councilors who are exploring ways to alter it in an effort to fill the city’s budget deficit (Willamette Week).

Hops Stadium: The Hillsboro Hops are less than a year from hosting its first game at the $150 million ballpark under construction next to its current home. But new renderings and a recent walkthrough provide a view into the front office’s bold take on what a modern, professional baseball park looks like and what it offers to fans (Portland Business Journal).

Electricity Demand: Electricity demand in the Pacific Northwest could double over the next two decades as data centers, electric vehicles, homes and businesses clamor for more power, according to a new forecast released April 29 by the Northwest Power and Conservation Council (The Oregonian).

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.