Friday, May 20, 2016

Employment in Coffee, Tea, and Snack Food Manufacturing in Oregon

You don’t really need them (some of us do), but the temptation is too great: snack food employment rose by 33 percent from 2010 to 2015, while coffee and tea brewed up a mean pot of its own, rising by 34 percent.

Coffee and tea manufacturers roast coffee, blend tea, and manufacture coffee and tea concentrates. The industry was spread across 14 Oregon counties in 2015. Multnomah County led the industry with 26 employers, followed by Lane and Washington counties with seven units each. Multnomah County represented about two-thirds of the state’s coffee and tea manufacturing in 2015 with an average firm size of about 26 jobs. The remaining one-third of the industry’s jobs was dispersed across 13 counties with an average size of around 10 jobs. Employment rose by nearly 8 percent in 2015, a gain of about 70 jobs. Since 2010, employment in coffee and tea manufacturing has risen by about 350 jobs.

Oregon represented 5 percent of U.S. coffee and tea manufacturing employment in 2014. Just 30 states disclosed employment in 2014, and Oregon ranked fifth nationally. Oregon’s location quotient (LQ) relative to the U.S. hovered at about 4.0 in 2014. An industry's location quotient measures the concentration of employment in one area relative to a larger reference area. Multnomah County’s LQ was more than double that level, at 9.4, followed by Lane County (5.2) and Washington County (2.7).

Snack food manufacturers operated from 11 Oregon counties, although the industry’s employment profile was dominated by a few large firms. With 930 jobs and 18 employer units in 2015, the average firm size was about 51. The industry’s employment rose by about 100 jobs or 12 percent in 2015. Since 2010, employment in snack food manufacturing has risen by about 310 jobs. Relative to the U.S., snack food manufacturers in Oregon produced a location quotient of 1.25 in 2014. Oregon was one of 36 states that disclosed snack food manufacturing employment in 2014, representing roughly 2 percent of the U.S. industry total.

To learn more about coffee, tea and snack food manufacturing in Oregon, read Regional Economist Dallas Fridley's full article "The Other Food Manufacturing Group: Starring Snack Food, Coffee, and Tea".

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