Courtesy: City of Medford, local government Facebook
A new report from the University of Oregon is showing that out-of-state recruiters are trying to pull companies away from Oregon.
OREGON -- A recent report from the University of Oregon is raising concerns within the state’s business community. The findings show that an increasing number of Oregon companies are being contacted by recruiters from other states.
According to the report, 25% of Oregon businesses surveyed said they had been approached by out-of-state recruiters. Of those, nearly 70% chose to expand or relocate outside of Oregon.
States like Texas, Washington, and California were commonly cited as destinations due to lower taxes, fewer regulations, and policies seen as more favorable to business.
Chris Dubose, board president of the Southern Oregon Regional Economic Development, Inc. (SOREDI), said the competition is expected, but the follow-through is notable.
"We see a lot of competition nationally—especially from states like Texas, Washington, and California," Dubose said. "So the outreach itself wasn’t surprising. What did surprise me was that it seemed to decline in 2023 and 2024."
One example highlighted in the region is Dutch Bros, which originated in Grants Pass but is now headquartered in Arizona.
Dubose said some business moves are driven by expansion, while others reflect systemic issues that make it difficult to retain companies in Oregon.
"I'm not naïve enough to think other states aren't trying to recruit our top-tier businesses," Dubose said. "But what’s also clear is that access to bigger markets, more flights, and even tax differences can be real deciding factors."
Local incentives such as Enterprise Zones offer temporary tax breaks to businesses that invest in the region. While helpful, Dubose said they are not a comprehensive solution.
The report identified rising costs, a lack of affordable housing, and workforce shortages as key reasons why some companies consider relocating.
"When business owners start asking, ‘Do I have to do this here?’—and the answer is no—they start looking into more cost-effective options," Dubose said.
SOREDI says stronger coordination between local officials and state partners like Business Oregon will be essential to retaining companies and jobs in Southern Oregon.
