The study was done in partnership between Business Oregon, Oregon Business & Industry, and the University of Oregon to analyze factors impacting business expansion decisions.

Business Oregon, in partnership with Oregon Business & Industry, contracted with the University of Oregon to conduct a study and analysis to get answers that can inform both state policy, and actions of economic developers at the local, regional, and state levels. The project sought to better understand the nature of expansion efforts by Oregon businesses.

The study developed a “push, pull, and anchor” framework to represent how different factors affect business investment decisions. These factors exist in every state, but this study looks at those specific to Oregon:

• Push Factors are factors that tend to push businesses and business investment away from Oregon. These factors can be a function of state and local policy, Oregon’s business climate, and/or inherent social and economic factors.
• Pull Factors are factors that serve to pull businesses and business investment out of Oregon. These factors can broadly be grouped into the categories of: (1) incentives; (2) policies by other states (including tax policies and regulations); (3) locational and market advantages; and (4) access to capital and talent.
• Anchor Factors are factors that keep businesses and business investment rooted in Oregon. The study puts these factors into three categories: (1) assets; (2) access to resources, materials, and markets; and (3) business leader or company ties to Oregon.

The project conducted a survey of 393 Oregon traded-sector businesses, and more than 30 interviews with businesses and economic development organizations.

“As Governor, I have taken the opportunity time and time again to speak with businesses as they consider making Oregon their home or expanding their footprint in our state,” said Governor Tina Kotek. “I will use every tool at my disposal to move the needle on making Oregon a place where businesses want to locate and grow. This report is clear that we need to do even more for our shared prosperity when it comes to business recruitment.”

Surveyed businesses identified they were expanding both inside and outside the state. Some businesses were expanding outside the state to grow sales in new markets while maintaining core operations in Oregon. But some were also choosing different locations for other factors, which can help inform policymaking here in Oregon.

“Business creation, retention, expansion, and attraction have never been more important for Oregon’s economic health and the prosperity of its people and communities,” said Angela Wilhelms, President and CEO of Oregon Business & Industry. “This report echoes what we see in state jobs, economic, and revenue forecasts. We are grateful that Business Oregon is leaning in to understand what works, what happens in other states, and what ultimately can incentivize business investment in Oregon. Our state has many tremendous advantages that draw and keep people here, but we cannot ignore the challenges that push them away or the competitive advantages that pull them away.”

The study indicates there is potential for much greater job creation and private investment in Oregon. Some factors influencing expansion outside of Oregon can be due to factors the state has little control over, such as access to specific markets and raw materials. However, other factors have more potential for impact, such as business costs, regulation, and workforce retention.

Business Oregon plans on using the insights gathered by the study to help guide future retention and recruitment strategies. While there are many findings and recommendations in the report that are complex, structural findings, there are also some more tactical agency-level actions to assess. The study is also being used to inform implementation of the agency’s recent strategic plan.

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Via Press Release – MARCH 19, 2025 – Business Oregon