Despite predicted increases in property, health care and utility costs, industry experts and economists remain “cautiously optimistic” about the future of Oregon’s economy in 2004.
At the Eugene Area Chamber of Commerce’s 10th annual Economic Forecast on Wednesday, local and state representatives addressed issues ranging from the importance of improved investment statewide to the increasing economic value of higher education, especially the University.
“The University is a tremendous force in the local economy,” University Vice President for Research Rich Linton said.
Speakers at the forum focused in part on the economic benefits of the technology industry in Oregon.
“Oregon’s high-tech companies are doing big things in small places,” Jack Isselmann, deputy director of the Oregon Economic and Community Development Department, said during his keynote speech. Isselmann stressed the importance of high-technology companies as private manufacturer employers and as a means of leveraging statewide investment.
After the speech, local industry panelists — including representatives from markets in real estate, health care, tourism, utilities and higher education — gave an uneasy forecast for 2004.
Real estate experts predict more record-high vacancies and record-high prices, while those in health care expect hospital, physician and pharmacy costs to continue rising. Utility costs are also expected to increase, locally and regionally, by five to 15 percent in 2004.
On the other hand, the tourism industry hopes a new Eugene airline and new University buildings will help to bring back visitors.
Linton, representing higher education, had the most optimistic outlook for 2004 as he referred to a recent multi-million dollar fundraising campaign, and he predicted an end to the statewide salary freeze by 2005.
The event also featured an economist panel, which included representatives from the Oregon Employment Department, ECONNorthwest and other organizations. The panel estimated a four percent growth rate in 2004, despite major job market challenges and ongoing investment issues.
Linton, who called the overall forecast for 2004 “cautiously optimistic,” said he was proud to have represented the University at the event.
“I felt very gratified that there is growing appreciation for the University as an economic engine,” he said.