Conventional wisdom says as the Portland area goes, so goes the Oregon economy. Size alone ensures that the three-county metro area sets the tone for the rest of the state. But if you travel east on Interstate 84, you drive through a region that is faring just as well as — if not better than — the Portland area economically.
Of the six Oregon counties east of Multnomah that touch the Columbia River, only sparsely populated Sherman County has an unemployment rate above the statewide seasonally adjusted rate of 8.4 percent. Hood River County, with a seasonally adjusted rate of 6.9 percent in May, is tied with Washington, the most economically healthy of the metro counties, for second-lowest in the state.
| Columbia River Gorge unemployment rates | |
| County | Unemployment rate |
|---|---|
| Hood River | 6.9 percent |
| Wasco | 8.1 percent |
| Sherman | 8.7 percent |
| Gilliam | 7.2 percent |
| Morrow | 7.7 percent |
| Umatilla | 8.2 percent |
| Multnomah | 7.5 percent |
| Oregon | 8.4 pecent |
The Columbia River Gorge counties, like the Portland metro area, have geographic advantages. But their economies have benefited from decisions and developments that provide an example for the rest of Oregon. Most impressively, the region survived the loss of a bedrock industry, aluminum, and rebuilt a diversified economy that leverages the region’s natural advantages.
In short, the gorge is showing the rest of the state what it takes to succeed in the 21st-century economy.
To appreciate what has happened in the gorge, it’s helpful to consider what the region looked like during the 1979-82 recession in contrast to the most recent recession, from which the state and nation are slowly recovering.
In the late ’70s and early ’80s, the gorge had three anchor industries in aluminum, in Wasco County and across the Columbia in Washington; timber, mostly in Hood River County; and agriculture, throughout the gorge, though the crops varied by county.
Today, agriculture remains, but aluminum is gone and timber activity minimal. Much like the Portland area and the state as a whole, the region is pursuing an economic cluster strategy. The clusters targeted by the Mid-Columbia Economic Development District are high-tech (anchored by drone-related businesses), health care, arts and culture, renewable energy and value-added agriculture.
Currently, growth at Insitu and other drone-related companies and strong agricultural markets drive the gorge economy. But in recent years the region also has benefited from wind farms and related industries, non-drone high-tech such as Google’s data center and a well-defined tourism niche that mixes the gorge’s recreation offerings and local arts scene.
The gorge undoubtedly benefits from its proximity to Portland and strong transportation infrastructure, which includes rail, highway and river shipping options. But the success did not happen by accident. Among other things, the gorge’s economic approach provides a local example of what happens when the cluster strategy is well-executed.
U.S. Rep. Greg Walden, R-Ore., of Hood River said The Dalles was attractive to Google because of the infrastructure it offered, specifically affordable power and a high-speed fiber loop. “You have to be ready for opportunities,” he said.
Likewise, it helps to have an anchor employer, a role Insitu fills in the gorge. The drone-maker has roughly 500 employees in the gorge (about half on the Washington side), and its presence has led to spinoff companies such as American Aerospace Engineering in White Salmon, Wash.
Amanda Hoey, executive director of the Mid-Columbia Economic Development District, which serves counties on both sides of the Columbia, also credits cooperation as a key part of the gorge’s success. The district works with three Oregon counties and two Washington counties as well as private companies and the two state governments to develop programs that foster business retention and expansion, she said.
Hoey, who worked in an AmeriCorps program on the Oregon coast before returning to her home region in the gorge, said she thinks principles such as cooperation and “looking at the natural economic bases rather than looking to attract something that isn’t a fit” are applicable to parts of the state with more challenging circumstances.
Certainly it’s easier to set sail on a new path when you have the wind at your back, but the gorge’s ability to navigate the choppy economic waters of recent years should offer inspiration to all.
Originally Published By: The Oregonian Editorial Board