Monday, July 31, 2017

An Update on Oregon’s Brewing Industry

There were around 220 brewing establishments in Oregon in 2016. A brewing establishment is defined as any location with onsite brewing, including large manufacturing breweries, brew pubs, and nano breweries. Those establishments with at least one covered employee and brewing on site were included in this analysis. As a result home brewers and pubs without onsite brewing were not included.

The industry saw a net gain of 12 brewing establishments in 2016, a growth rate around 6 percent. Although the industry continues to add breweries at a fast pace, the rate of growth is slower compared with previous years. For instance, 2015 saw a gain of 18 breweries (~10% growth). This slowdown is twofold. First, there were fewer new breweries established in 2016. Second, we are beginning to see more brewery closures. Fourteen brewing establishments fell out of the state payroll system in 2016, compared with only five closures in 2015.

The brewing industry is seasonal with the summer employment (3rd quarter) roughly 10 percent higher than the annual average. This seasonality is heavily influenced by brewpubs, which tend to see higher employment during the summer season, similar to other restaurants and drinking places. Brewpubs are also largely responsible for pulling down the average annual pay in the brewing industry due to a high number of traditional restaurant service jobs. The average annual wage in the brewing industry ($30,250) was significantly higher than the food service industry ($18,500), but noticeably lower than the statewide average annual wage of $49,500.

Read the full article "An Update on Oregon's Brewing Industry" written by Regional Economist Damon Runberg.

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