I will not sugarcoast the news that Freightliner Manufacturing is leaving Portland in June, 2010: it is a punch in the gut for Portland's economy.

The news means that Portland will lose thousands of living-wage jobs, we lose the biggest chunk of our once vibrant truck-building industry, and local suppliers to Freightliner lose a large customer.

As Freightliner describes it, they made the decision, "in response to continuing depressed demand across the industry and structural changes in the company's core markets."

(link: http://www.katu.com/news/business/30944634.html [1] )

With this Freightliner decision maybe global forces are too big for us to change.  Nonetheless, this sad development should spur us to act quickly on an economic development strategy that will help lead us through these tough times and prepare us for the better times ahead. 

While we recognize that our corporations are impacted by global macroeconomic realities that are beyond our control, our city cannot passively accept the negative effects of global economic trends. We need to identify trends that impact us and where our strengths lie within the global marketplace.

In the meantime, we are busy implementing the actions contained in the 10 Strategies to Keep Portland’s Economy Working document and engaging the public in order to make informed economic choices.

Yesterday we held two initial discussions with community leaders and business leaders around the impacts of the current economic realities on our local business and our families.  These brainstorming sessions built on the work we did to prepare for the recession in last year's budget.  I'd also appreciate your perspective on the 10 Strategies to Keep Portland's Economy Working, our Jobs Strategy and the notes from yesterday's meeting. (Please click on the attachments below)

These turn of events also underscores the importance of the work Chair Ted Wheeler along with City Commissioner Nick Fish and I are doing to create a Prosperity Alliance of efforts around workforce development, social service and affordable housing providers.

(link: http://www.commissionersam.com/node/3845 [1])

In the meantime, we are doing everything we can to assist those who are immediately impacted by Freightliner's announcement.  Working closely with Governor Ted Kulongoski, Mayor Tom Potter and the Portland Development Commission, Worksystems, Inc and Manufacturing 21, we are mobilizing our Rapid Response Teams to provide access to a broad array of resources and services for those workers dislocated from Freightliner. 

We have also asked the Portland Development Commission to help local suppliers who will be impacted by losing one of their largest customers. All hands are on deck to ensure impacted workers and businesses have the support they need to find new opportunities and make as smooth a transition as possible.  

I have long recognized the importance of Freightliner to
Portland's economy.  We visited them during 100 Businesses in 100 Days and have kept in contact with them and offered ongoing support and assistance.   In fact, during my last meeting with Freightliner CEO Chris Patterson on July 22, 2008, he talked about the fact that the East coast made more sense for Fieghtliner's North American headquarters because a great majority of their businesses occurs east of the Mississippi.  Of course, I asked what we needed to do to keep them in Portland.  Patterson said that given global forces and market realities Portland was doing all that it could.  However, he mentioned that a lawsuit brought against them by the State of
Oregon was a source of frustration for the company.

As a result, the City of
Portland filed an amicus brief against the state on behalf of Freightliner (link: http://www.commissionersam.com/node/4175 [1]).  Unfortunately, this unprecedented action by the City against the State in support of a local business was not enough to turn the tides.

I hope you will join me and the rest of City Council in working to hold on to the companies and jobs we have and to support the creation of new jobs and companies where we have a competitive advantage.  We'll send out more details in the coming months.

Today, however, our thoughts are with Freightliner employees and their families. 

Sincerely,

Sam