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Manufacturing Sector by by John M MERGER STRENGTHENS PORTLAND’S MANUFACTURING JUNE 24, 2014 JUNE 24, SECTOR BY JOHN M. VINCENT Business Tribune INSIDE SHOPKEEP PICKS PORTLAND BULLISH ON BUSINESS HILLSBORO WOOS JAPAN VIGOR INDUSTRIAL’S FRIENDLY LOCAL SWAN ISLAND FACILITY GAME STORE 2 BUSINESS TRIBUNE Tuesday, June 24, 2014 Tuesday, June 24, 2014 BUSINESS TRIBUNE 3 Vigor’s director of manufacturing MERGER STRENGTHENS PORTLAND’S operations Kale Kramer looks forward to the synergies from the merger. “We’re using the goods of both MANUFACTURING companies to be a better one.” PAMPLIN MEDIA GROUP: JOHN M. VINCENT SECTOR ew Portlanders recognize the size of the re- will become a wholly-owned subsidiary of Portland’s The merger of gion’s manufacturing segment and its infl uence Vigor Industrial, employing 2,300 employees across Or- on the economy. When they think of manufac- egon, Washington and Alaska. It’s not the fi rst time F turing, they only think of Intel. that they’ve joined forces, creating a partnership in But the Portland region is an important player in 2006 to produce barges. Vigor reported sales of $500 Oregon Iron Works and heavy industrial manufacturing — especially in the million in 2012, while Oregon Iron Works produces production and repair of transportation equipment in- about $100 million in annual sales. cluding ships, barges, railcars, trucks and components “We’re doing everything we can to build and sustain Vigor Industrial promises for the aerospace industry. The Oregon Employment family-wage jobs,” says Vigor owner and CEO Frank Department counted 88,900 durable goods manufactur- Foti. The company plans to hire at least 100 and as ma- ing jobs in the Portland/Vancouver area in April, a fi g- ny as 300 more workers as additional project contracts ure that includes everything from Intel’s microchips to are signed, according to director of manufacturing op- big things for Portland’s Leatherman Tools and Gunderson railcars. erations Kale Kramer. Since reaching a low in 2010, employment in Port- For Vigor, it means greatly expanding production ca- land’s metal manufacturing segments alone has in- pabilities and facilities, including OSW’s precision test- heavy industrial business creased by 3,400 jobs and is outpacing the growth of ing lab, with measurement capabilities down to 7 mi- the general economy, according to the employment crons. OSWs Clackamas and Vancouver facilities pro- department. duce a wide product portfolio that includes streetcars, With the merger of two major players in the seg- vessels for America’s military Special Forces, and com- BY JOHN M. VINCENT ment, heavy industry in experiencing a renaissance of ponents for the mining, dam and the nuclear industries. sorts, and is positioning itself for signifi cant growth, Nearing completion at their Clackamas facility are with greater product diversity and far more stability two of their most visible products. Final touches are than it has seen in the past. That diversity will “smooth going on the last streetcars to fulfi ll an order for the out a chunky business” says Brian Mannion, a spokes- District of Columbia. After experiencing signifi cant man for Vigor Industrial. Announced in May, Oregon Iron Works of Clackamas See CONTINUED / Page 4 4 BUSINESS TRIBUNE Tuesday, June 24, 2014 Vigor builds barges in pieces, later j oining the modules into blocks, and then into full v essels. That allows more than one team to work on the proj ect at the same time, and keeps the maj ority of the work out of the elements. PAMPLIIN MEDIA GROUP PHOTOS: JOHN M. VINCENT Vigor Industrial’s Swan Island facility cov ers 6 0 acres at the northern tip of Swan Island. It was originally the site of the Portland Municipal airport, becoming a Kaiser shipyard during WWII. ■ From page 3 growing pains in developing their all-new U.S. Streetcar subsidiary, they feel that their processes are mature, and they’re ex- pecting a wave of additional orders. Nearby, two fast-response fi reboats are under construction for the city of Portland. The twin 55-foot vessels will have a top speed of 45 knots, can pump 8,000 gallons of water per minute and carry advanced com- munications equipment so that on-site com- manders can work directly from the boats. The boats are equipped with hydrants to draw water from the river and supply land- based fi re equipment if normal water mains have been compromised by a disaster. Both boats are scheduled for delivery later this year. Out of public view is construction of the Combatant Craft Medium Mark One for the U.S. Special Operations Command. That’s a long name for a fast, agile boat that will take special operations forces into battle. The $400 million contract signed earlier this year is expected to run through 2021. Vigor’s strengths have traditionally been in massive projects including ferry con- struction, barge building and ship repairs. Projects will get even bigger in late 2014 when the largest fl oating dry dock in the United States arrives at their Swan Island shipyard. The $40 million 960-foot dry dock Clayton Kinder Jr. welds on a part of an will have the capacity to service the U.S. Na- 8 3, 0 0 0 - barrel tank barge for Harley Marine vy’s largest supply ships as well as cruise Serv ices. The company prov ides liv ing- wage j obs for employees in the trades. CONTINUED / Page 5 PRESIDENT VICE PRESIDENT CIRCULATION REPORTER PHOTOGRAPHERS J. Mark Garber Brian Monihan MANAGER Joseph Gallivan Jonathan House, Jaime Valdez PortlandTribune Business Kim Stephens WEB SITE OFFICES Tribune EDITOR AND ADVERTISING DIRECTOR DESIGN ASSOCIATE PUB LISHER CREATIVE portlandtribune.com 6605 S.E. Lake Road Christine Moore Pete Vogel Portland, OR 97222 Vance W. Tong SERVICES MANAGER CONTACT 503-226-6397 (NEWS) Cheryl DuVal [email protected] Tuesday, June 24, 2014 BUSINESS TRIBUNE 5 Industrial manufacturers Using torches to cut metal is one of the skills struggle to fi nd workers taught at PCC’s Swan Island Training Center. B y JOHN W. VINCENT The school is PCC welding instructor Mike Rasmussen. located in the For Pamplin Media Group Rasmussen operates PCC’s Swan Island Vigor Industrial Training Center, which is located in Vigor In- Portland “We need technicians,” says Tom Hick- dustrial’s Portland shipyard. Vigor is one of man, Vice President of Oregon Iron Works. several Portland manufacturers to link up PAMPLIIN MEDIA GROUP: “We need fi tters, and welders, inspectors with a training program in an attempt to cre- JOHN M. VINCENT and machinists.” ate a qualifi ed workforce. It’s a common refrain amongst Oregon’s in- For four days each week, two shifts of stu- dustrial employers. Blue-collar tradespeople dents fi ll the center learning welding, indus- are hard to fi nd. While there are plenty of ap- trial safety, and fabrication skills. For stu- plicants, very few are qualifi ed and certifi ed. dents such as 46-year old Sherrie Winkler, the If there’s a cap on the growth of heavy indus- dream is to open their own business, for oth- try in our region, it’s likely going to be from a ers a job in the adjacent shipyard is the goal. lack of a properly-trained workforce. “Students come to me never having done The jobs can provide wages suffi cient to anything remotely like this,” says Rasmussen. support a family from almost day one on the “They leave with the opportunity to make $16 job. an hour starting pay,” adding “this is a job “If you want to work here, you can make a you can take anywhere in the world.” good living,” says Hickman. Starting pay for a Many cite the elimination of public school welder is about $16 hour, but it can quickly rise education in the trades as the root cause of depending on experience and certifi cations. the worker scarcity. “This is not a glamour job, but it is very re- “I think the schools are doing a disservice warding work,” Hickman says. “People go to students by not offering trades education” home with a sense of pride with what they’ve says Rasmussen. done and what they’ve built and it’s a fabu- Oregon Iron Works has been working with lous feeling to see something come to comple- groups including the Manufacturing 21 coali- tion.” For many employees of Oregon Iron tion and Portland’s ADX Center to promote Works, they can enjoy that feeling by simply the trades, and Hickman has one fi nal pitch stepping onto a Clackamas-built Portland for careers in the trades: “Earn a living, a Streetcar. good living, and you get to go home without a “The trades build the infrastructure,” says whole lot to worry about.” “This is not a glamour j ob, but it is v ery rewarding work. People go home with a sense of pride with what they’v e done and what they’v e built and it’s a fabulous feeling to see something come to completion.” — Mike Rasmussen, PCC Swan Island Training Center ■ construction for Harley Marine Services. From page 4 That’s set to change with the upcoming con- struction of a 102-foot tug boat for Tidewa- ships and post-panamax cargo vessels. ter Barge Lines. The new dry-dock will be similar to the The integration of the merged companies The last of three Port of Portland’s former dry dock #4, which will allow more of the work to be done in- streetcars was sold and towed to the Bahamas soon af- house, leveraging the experience of each ordered for a ter the Portland Ship Repair Yard was sold team.
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