Spotlight Article Local Business – A Strategic Move for Business Growth
If you are a Business Owner Fed up with the High Taxes and Costs of doing business in States like Oregon and California, but still want to remain near the West Coast.. CONSIDER HENDERSON! Umpqua Oats is a Case Study in SUCCESS!
Umpqua Oats, a well-known maker of high-quality oatmeal products, made a bold decision to relocate its operations from Oregon to Henderson, Nevada. This move was driven by the escalating costs of doing business in Oregon and the desire for a more cost-effective business environment. In this article, we’ll explore the story of Umpqua Oats, why they left Oregon, and how their new home in Henderson, NV has provided them with a platform for continued growth.
The Origins of Umpqua Oats: A Commitment to Quality
Founded in 1983 by Jim and Jeanette Kittle in Roseburg, Oregon, Umpqua Oats started as a small, family-owned oatmeal company with a focus on high-quality, healthy breakfast options. Over the years, Umpqua Oats grew into a national brand known for its premium oatmeal cups and other oatmeal products, beloved for their natural ingredients and sustainability.
As demand for their oatmeal products grew, Umpqua Oats expanded its operations, but found that Oregon’s business climate posed challenges that impacted their bottom line.
Challenges in Oregon: High Costs of Doing Business
As Umpqua Oats expanded, the company faced a series of economic hurdles in Oregon, including high taxes, costly labor, and rising property expenses. These factors became increasingly difficult to manage as the business grew. Below are the key reasons why Umpqua Oats decided to leave Oregon:
1. High Business Taxes in Oregon
Oregon is known for its high corporate taxes and state income taxes. For a growing company, these costs became a significant financial burden. In addition, the state’s tax structure made it difficult for the company to invest in new infrastructure, employees, and product innovation.
2. Expensive Labor Market
Labor costs in Oregon were another challenge. As Umpqua Oats scaled its workforce to meet increasing demand, the high wages and employee benefits in Oregon put pressure on the company’s ability to remain cost-competitive.
3. Rising Real Estate Costs
Expanding a manufacturing facility in Oregon proved costly due to rising real estate and property development costs. Securing affordable space for both production and administrative operations became a significant obstacle as the company sought to expand its facilities.
4. Regulatory Challenges
Oregon has a strong regulatory framework that aims to protect workers and the environment, but for businesses like Umpqua Oats, navigating these regulatory hurdles was both time-consuming and costly, leading to operational inefficiencies.
Why Henderson, Nevada? A Business-Friendly Location
Faced with these mounting challenges, Umpqua Oats decided to relocate its operations to Henderson, Nevada. The move offered several key benefits that addressed many of the issues the company faced in Oregon. Here’s why Henderson was an ideal location for Umpqua Oats’ growth:
1. Lower Taxes in Nevada
One of the biggest draws of moving to Nevada was the no state income tax policy. In Nevada, businesses benefit from significantly lower tax burdens, making it a financially attractive location for growth and expansion. This has allowed Umpqua Oats to redirect funds into operations, R&D, and production rather than high tax payments.
2. Affordable Labor Market
Unlike Oregon, Nevada’s labor costs are more affordable. While wages may be lower, the cost of living in Henderson is also lower, which balances out labor expenses. This has allowed Umpqua Oats to hire a skilled workforce without facing the escalating costs that Oregon’s labor market imposed.
3. Strategic Location for Logistics
Henderson’s location near Las Vegas, major interstate highways, and transportation hubs made it an ideal location for Umpqua Oats’ logistics operations. Being close to these infrastructure assets allows the company to quickly distribute products across the U.S. and internationally, improving operational efficiency.
4. Business-Friendly Environment
Nevada’s pro-growth policies and minimal regulatory burdens are particularly appealing for businesses like Umpqua Oats. The state is known for being welcoming to entrepreneurs and established companies alike, offering an environment that encourages growth and innovation.
Umpqua Oats Thrives in Henderson: Key Developments Since the Move
Since relocating to Henderson, Nevada, Umpqua Oats has not only maintained its strong presence in the oatmeal market but has also expanded its operations in several key ways:
Increased Production Capacity
The move allowed Umpqua Oats to significantly expand its production capabilities. The company now has a larger facility in Henderson, which has enabled them to meet growing demand and streamline their supply chain.
New Product Innovations
Umpqua Oats has continued to innovate its product line. The company has introduced new flavors and expanded into gluten-free and vegan options to cater to evolving consumer preferences. The move to Henderson has allowed Umpqua Oats the flexibility to experiment with new offerings without the same financial constraints they faced in Oregon.
Sustainability Efforts
Despite the relocation, Umpqua Oats has stayed true to its commitment to sustainability. The company continues to use locally sourced ingredients where possible and has maintained its focus on reducing its environmental impact through eco-friendly packaging and sustainable production methods.
Economic Benefits of Relocating to Henderson
The decision to relocate to Henderson, NV, has proven to be beneficial for Umpqua Oats in several key areas:
Cost Savings
By moving to a location with lower taxes and cheaper labor, Umpqua Oats has been able to reduce its operating costs, which has had a positive impact on the company’s profit margins.
Scalability and Expansion
The business-friendly environment in Nevada has provided Umpqua Oats with room to scale. The company has been able to invest more heavily in automation, technology, and employee development, ensuring long-term growth potential.
Access to New Markets
Nevada’s location near major trade routes has also opened new avenues for market expansion. Umpqua Oats can now more easily distribute its products to regional and national retailers while exploring new markets internationally.
The Impact of Umpqua Oats on Henderson’s Economy
Umpqua Oats’ move to Henderson has had a positive impact on the local economy. As the company grows and expands, it has created new jobs and boosted local business activity. Here’s how the move benefits the Henderson community:
Job Creation
As Umpqua Oats increased its production and operations in Henderson, it created new job opportunities for local residents. The company’s hiring initiatives have added skilled jobs in manufacturing, logistics, marketing, and customer service.
Supporting Local Suppliers
Umpqua Oats also works with local suppliers, contributing to the region’s economic ecosystem. By sourcing ingredients and materials from Nevada-based companies, Umpqua Oats supports small businesses and strengthens the local supply chain.
Boost to Tourism and Retail
As Umpqua Oats grows, it strengthens Henderson’s reputation as a hub for food manufacturing and innovation. This can lead to tourism opportunities and increase the demand for local retail outlets as the company’s brand continues to grow in prominence.
The Future of Umpqua Oats in Henderson
Looking ahead, Umpqua Oats remains committed to growth, innovation, and sustainability. The move to Henderson has allowed the company to position itself for continued success in the highly competitive food industry.
The company plans to expand its product line, focusing on health-conscious consumers, and increase its global footprint. By leveraging its Nevada base, Umpqua Oats will continue to benefit from the cost savings and operational efficiencies that the state offers, allowing them to invest more heavily in the future.
Conclusion: Umpqua Oats’ Strategic Shift to Henderson, Nevada
Umpqua Oats’ move from Oregon to Henderson, Nevada, was a pivotal decision that has helped the company overcome operational challenges and position itself for long-term success. The combination of lower business costs, affordable labor, and a pro-business environment in Nevada has provided Umpqua Oats with the resources it needs to grow and innovate.
By relocating to Henderson, Umpqua Oats is not just securing a more sustainable future for its business but also contributing to the local economy through job creation, community involvement, and support for local suppliers. As the company continues to expand, its story serves as a testament to the benefits of strategic relocation for businesses looking to adapt and thrive in an ever-changing economic landscape.
