New Study Illuminates Business Expansion Dynamics in Oregon
A recent study conducted by Business Oregon, in collaboration with Oregon Business & Industry and the University of Oregon, sheds light on the factors influencing business expansion decisions within the state. The research introduces a “push, pull, and anchor” framework to categorize elements that affect whether businesses choose to grow in Oregon or elsewhere.
What Drives Business Decisions?
Understanding the Push, Pull & Anchor Factors
A new Business Oregon study identifies the key influences behind whether companies choose to grow in Oregon—or look elsewhere.
🔻 Push Factors (Pressure to leave)
- High cost of doing business
- Complex regulations
- Talent shortages
- Limited industrial land
- Infrastructure gaps
🔺 Pull Factors (Attractions elsewhere)
- Bigger or new markets
- Financial incentives
- Lower operating costs
- Skilled labor access
- Better logistics
📍 Anchor Factors (Reasons to stay)
- Quality of life
- Local workforce strength
- Research institutions
- Community alignment
- Existing investments
🧭 This framework offers policymakers a roadmap to strengthen Oregon’s business environment—by easing push factors, competing with pull factors, and doubling down on anchors.
The study surveyed 393 Oregon traded-sector businesses and conducted over 30 interviews with business leaders and economic development organizations. Key findings reveal that while some businesses are expanding within Oregon, others are looking beyond state borders to tap into new markets or due to factors like business costs, regulations, and workforce retention challenges.
Governor Tina Kotek emphasized the importance of making Oregon an attractive place for business growth, stating, “We need to do even more for our shared prosperity when it comes to business recruitment.” Angela Wilhelms, President and CEO of Oregon Business & Industry, echoed this sentiment, highlighting the need to understand both the advantages and challenges that influence business investment decisions.
Business Oregon plans to utilize the insights from this study to inform future strategies aimed at business retention and recruitment, aligning with the agency’s commitment to fostering a competitive and inclusive economy across the state.
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