What’s on the Horizon for Central Oregon Businesses—By Katy Brooks

by Katy Brooks, CEO & President, Bend Chamber

Now that elections are finished, we know change is on the horizon. Central Oregon businesses are also thinking about how politics and other issues will affect the workforce and their industries.

During the past six months, the Bend Chamber conducted a “three-horizon” survey of more than 160 business leaders in the Bend area. The survey asked what is influencing business today, what assumptions they are predicting for 10 years out, and how they will track progress between now and then.

Today’s Business Horizon

Starting with politics, businesses are concerned about polarization and hoping for predictability. Elected officials and government organizations are essential to providing funding and reliable policies that promote a healthy economic environment and a livable community. The businesses we surveyed emphasized the importance of legislative and policy stability that promotes building commercial, industrial and residential inventory, and public investment in infrastructure to support growth.

Another factor that businesses are navigating today is the changing workforce. Many employers are experiencing five generations of employees working together, with each generation influencing the workplace. Among many examples we were given of what this looks like at the office, younger workers tend to be focused on adding value then switching jobs often, while older employees are leveraging their experience during their final career years or transitioning to new careers instead of retiring. The challenge for employers is ensuring that multiple generations work well together, and succession planning includes the exit of Boomers and high turnover of Millennials and Gen Z employees.

Economic factors are also shaping how businesses make decisions. Interest rates have caused a great deal of caution and pragmatism in whether and how companies are expanding. The cost of leasing, building, labor, products, and transport have increased, forcing businesses to absorb higher overhead and scramble for new revenue. High housing, child care and other costs in Central Oregon have also impacted employers’ ability to attract and retain talent.

Another significant impact on business is digital transformation. Artificial Intelligence (AI) is negatively impacting some sectors but benefiting many others, improving revenue and productivity. Since AI is in its early stages, businesses are scrambling to understand new tools emerging in the market and how they may be useful. Many businesses are investing time and resources to begin integrating AI into operations.

As businesses contemplate the 10-year horizon, they have several issues on their radar. First, the talent pool will have significantly changed through shifting generations and changes in the market. With that, employee skills will change. Many businesses expect a need for problem solving and “people skills” in tomorrow’s workforce. Others will need more technical prowess to take advantage of AI and automation.

Advanced digital transformation is expected to streamline operations and automate production in many industries. For example, restaurant owners anticipate fewer service-oriented “sit down” servers and more counter service. But the need for humans to maintain connection for “experiential” purchases and activities will still be needed in many sectors.

In fact, some businesses are betting that this will be an area of specialty as fewer opportunities for humans to interact are replaced by automation. Other industries that rely on innovation and critical thinking say they will likely have growing labor needs.

Long-term implications of a changing climate and availability of natural resources are also on the minds of employers. Water scarcity and changes in weather will impact businesses and people alike. Smaller snowpacks will affect the winter recreation industry; smoke will continue to thwart summer tourism, and water scarcity threatens agriculture and growth. Alternatively, many businesses will adapt to climate-related changes as they innovate and market solutions.

Monitoring Progress & Preparing for Change

Finally, we asked businesses how they will navigate between today and the future to survive and grow.

Businesses are researching and investing in new technologies while exploring ways to diversify revenue and be flexible with changing customer habits. Employers continue to try to retain and train employees as their jobs change and worry about housing and other costs as they struggle with limited tools such as pay increases, hybrid work and other assistance are difficult to fund. Interest rates and construction costs will also dictate how fast companies grow.

Businesses are constantly monitoring the landscape and watch for indicators of changes to come. More of the Chamber survey will be highlighted at the Bend Chamber annual Impact Conference Nov. 20 with experts from across the country sharing insights to help local businesses prepare for the future. Register at https://bendchamber.org/bend-event/2024-impact-conference-nov-20/.