BDAB backs four priority traded clusters for Bend economic strategy; staff to revisit data in Jan. 2026

City staff presented a data-driven industry cluster analysis to Bend's Business Development Advisory Board on Tuesday and the board voted to designate four clusters as initial priorities for the city's economic development strategy, with a commitment to revisit the analysis in January 2026.

Jonathan, urban renewal manager for the City of Bend, told board members the analysis used six-digit NAICS codes and three screening criteria: a location quotient greater than 1.1, a positive differential shift versus national trends, and at least five establishments in the cluster. The analysis identified 10 candidate industry clusters; staff recommended focusing initially on four traded-sector clusters they judged most likely to bring new dollars into the local economy: advanced sciences and manufacturing; outdoor lifestyle and products; craft beverages; and forestry and wood products.

Jonathan summarized key findings: the candidate clusters together account for about 17% of local employment and have average annual wages that range roughly between $43,000 and $131,000, depending on the cluster and occupation mix. He said biotech accounts for about $156 million of local GDP and that information-technology and biotech subclusters are anchored by R&D and software-publishing firms. Staff cited Lightcast and IMPLAN economic-modeling tools and data from the Oregon Employment Department as primary sources.

Board members asked detailed questions about methodology, employment counts, and how traded and local clusters are distinguished. Several members raised concerns about the forestry and wood-products cluster, which the staff analysis projects will decline in employment yet still shows a strong relative concentration (location quotient above standard thresholds). Jonathan told the group the cluster remains regionally concentrated and that staff can model hypothetical business closures or expansions using Lightcast and IMPLAN.

A board member flagged a drafting error in the draft packet that listed information-technology establishments as "10" on one table; staff confirmed the correct figure is 184 local establishments for software and related employment rather than 10, and said the draft report is being revised.

Board members also discussed what the cluster priortization would mean for tactics such as targeted recruitment, urban renewal site selection and infrastructure planning. Staff said the three documents that inform the economic strategy'the industry-cluster analysis, a state-of-housing report, and a state-of-the-economy report'would be released together and used to create a 10-year strategy and biennial implementation priorities.

After discussion, a motion to approve the four recommended priority traded industry clusters with a commitment to revisit the underlying data in January 2026 was moved and seconded. Board members recorded their votes in the meeting minutes: Mark (yes), Dwayne (yes), John (yes), Jen (yes), Chad (yes), Jillian (yes), Brianna (abstain), and Garrett (yes). The motion carried.

Members stressed that designation of the four clusters is an initial prioritization based on current data and staff capacity; it does not preclude other industries or local-service sectors from receiving future attention. Staff noted the analysis is a snapshot using 2019—2023 inputs and that NAICS code updates and automation or AI could change cluster dynamics over the next decade. The board asked staff to provide a clear roadmap and timeline for how the three reports will lead to strategy development and how the city will monitor and refresh the data.

Jonathan said staff will prepare industry profiles and additional supply-chain detail and will present the full strategic roadmap to the board and to City Council in coming months. The board asked that staff provide interim updates and a plan for the January 2026 data refresh.