Nosler Inc's Redmond Expansion and Hot Topics in Housing Trends
Recently, over 120 of Redmond’s community business leaders and neighbors gathered at the REDI News & Brews event at General Duffy’s Annex. The purpose of this event is to stir conversation about local factors impacting Redmond’s economic growth and to introduce Redmond citizens to leadership from a local manufacturing company with the goal of telling the REDI story and how we help foster growth in the community to prosper and thrive.
The event was three-fold in nature. First attendees heard an update from REDI Director, Steve Curley, on economic development projects coming to Redmond. Next, attendees joined the discussion on housing development and market trends in the local area. The highlight of the event featured Mark Roberts Vice President/CFO and Zach Waterman Public Relations Director of Nosler, Inc. to learn more about the company’s large expansion in Redmond.
Redmond’s Economic Development Project Pipeline
So, what is happening with economic development in Redmond? REDI’s Director Steve Curley broke it down to Redmond’s economic strengths, weaknesses, and opportunities.
The city’s strengths include 31 companies in the project pipeline of which 20 companies are growing, and 11 are coming to Redmond from another area. This converts to 2,019 jobs and $441 million in capital investment dollars. Despite a gap in the workforce, Steve points out the workforce we have here is experienced and is not transient.
The biggest challenge is infrastructure. The area needs shovel ready land with water, sewer and power which contributes to low housing availability and low industrial vacancy rates. Also, the need for childcare continues throughout Central Oregon, not just Redmond.
But there is great news or rather opportunities as well. Redmond is situated to grow in the semiconductor industry to meet supply chain demand. The city is pursuing companies in this sector to support this industry. Over the next 2 – 3 years the city is investing $500 million dollars in public projects which include: the airport, wastewater management, public safety, library, and the hospital cancer center reflecting robust economic growth in the city of Redmond.
And the question on everyone’s mind, will Wild Mikes Ultimate pizza start their project? The answer is yes, and they are ready to bring 114 jobs to the community. Nosler is also bringing 150 jobs to the community from their expansion, which is talked about later in this article.
Housing – Development and Market Trends
Housing is a large topic of concern in the region. To provide some perspective, an expert panel included insight from Heather MacDowall, a broker with Windermere Real Estate, Tom Bennett, Construction Director with Simplicity by Hayden Homes, and Don Montagner, an appraiser with Beacon Appraisal group.
The current median home price in Redmond is $506K. Heather said the current market includes more mature buyers who have sold previous homes and have dollars to put down on another.
From the appraiser’s perspective, the biggest obstacle to increasing home pricing is low inventory. In the 90s, there was a 5–6-month inventory. Today there is only a 2–3-month supply. Don noted a factor driving demand has been technology and migration. Out of town buyers now can look for homes over the internet versus visiting in person.
Three factors are affecting development. Tom said these obstacles include infrastructure availability, land use and approval, and developers shouldering the up-front cost to build infrastructure.
Looking into the crystal ball of the future, the panelists agreed central Oregon will still be a desirable place. However, Tom noted in the next five years we might see homes with smaller square footage and increased density of homes.
Nosler, Inc. Company Expansion
The highlight of the evening featured a discussion with Nosler leadership Mark Roberts and Zach Waterman. Nosler is a third-generation family company that planted its roots in Bend in 1958. At the time, Bend was hoping to diversify its manufacturing industry profile from the mill and timber industry decline. Because of the outdoor sport lifestyle, Nosler was the perfect fit.
In 2005, the company expanded its inventory line to include projectile bullets, custom brass, ammunition, and bolt action rifles. Having outsourced its brass manufacturing, in 2014, Nosler acquired 60 acres in Redmond and brought its brass manufacturing in house. Mark touted how easy it was to do business with the city of Redmond and expand. The expansion plans include a new 80,000 square foot building. The expansion is expected to create 150 new jobs, keeping Nosler’s “Quality First” standard of care.
If you would like to know more about the work REDI does to build community and business development in the region, contact us at 541.923.5223.
