WORKING PAPER NO.  23
                     COLUMBIA RIVER BASIN PROJECT
              For Water Supply and Water Quality Management
                         LANE COUNTY (OREGON)
                  PRELIMINARY ECONOMIC RECONNAISSANCE
                   AND ESTIMATE OF GROWTH,  1960-2010
DATE:  June 13, 1962                  DISTRIBUTION

Prepared by _   EES                    Project Staff
Reviewed by 	                  Cooperating Agencies

Approved by 	                  General 	
           U. S. DEPARTMENT OF HEALTH, EDUCATION AND WELFARE
                         Public Health Service
                               Region IX

            Division of Water Supply and Pollution Control
                        Room 570 Pittock Block
                           Portland 5, Oregon

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This working paper contains preliminary data and information



primarily intended for internal use by the Columbia River



Basin Project staff and cooperating agencies.  The material



presented in this paper has not been  fully evaluated and



should not be considered as final.

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              LANE COUNTY (OREGON)
       PRELIMINARY ECONOMIC RECONNAISSANCE
        AND ESTIMATE OF GROWTH. 1960-2010
                Table of Contents


INTRODUCTION                                     1

Purpose of This Analysis                         1

Definition of Area                               1
      Period                                     1

Limitations of This Analysis                     2


PRESENT ECONOMIC BASE                            2

Population                                       2

Industry                                         5


ESTIMATED FUTURE GROWTH                          8

Factors Influencing Future Growth                8

Future Employment and Population                 9
Prepared by:   Economic Studies Group
              Water Supply and Pollution Control
                      Program, Pacific Northwest
              June, 1962

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                          LANE COUNTY (OREGON)
                   PRELIMINARY ECONOMIC RECONNAISSANCE
                    AND ESTIMATE OF GROWTH, 1960-2010
INTRODUCTION

Purpose of This Analysis

This analysis is intended to provide a preliminary estimate of the

economic potentials and anticipated growth of the subject area.

Definition of Area

The Willamette River Basin divides conveniently into three parts:   (1)

the Lower Portion, comprising the Portland Metropolitan Area (Clackamas,

Multnomah, and Washington Counties); (2) the Middle Portion, comprising

Benton, Linn, Marion, Polk, and Yamhill'Counties; and (3) the Upper

Portion, comprising Lane County.  This report is an analysis of the

economy of Lane County; the other two portions of the Willamette River

Basin will be examined in subsequent reports.


Physically, the western part of Lane County (containing 6 percent  of

county population) is outside the Willamette River Basin, draining

directly into the ocean.  However, because basic statistics and other

economic studies are available on a county basis, Lane County as a whole

is used here as the unit of study for the economy of the Upper Willamette

Basin.

Study Period

The study period is the 50-year period 1960-2010, with an interim

point at 1980.

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Limitations of This Analysis




Two limitations apply to this study.  The first is that it is intended




only as a preliminary estimate of the outlook for the subject area's




growth.  Subsequently, in connection with the Columbia River Basin




Project for Water Supply and Water Quality Management, an analysis




will be made on an industry-by^industry basis of the growth potential




in the various sub-basins.  At that time, this preliminary estimate




will be reviewed, and revised if necessary.






The second limitation is that this study is intended for use particu-




larly in assessing future water needs.  Emphasis has been placed on the




analysis of those industries which make heavy demands upon the water




resource.  Other industries have been considered only insofar as they




may have a significant effect on future population.  For this reason,




this s,tudy is not submitted as a detailed industrial forecast.






PRESENT ECONOMIC BASE




Population




Total population in Lane County, as of April 1960, was 162,890.




Table I shows' how this population was distributed among the cities of




the county in 1960, and also the comparable figures for 1950.  The




Eugene-Springfield "Urban Area" constituted 60 percent of total county




population in 1960, up from 57 percent in 1950.  The Eugene-Springfield




"Urban Area" includes not only those two cities, but also the built-up,




but as yet unincorporated, areas surrounding them.  The 1950 figure

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for the "Urban Area" is an estimate of the population within the same



boundaries used for the 1960 definition.  The Eugene-Springfield




"Urban Area" grew at about 3.3 percent per year during the 1950-60



period, somewhat above the county average.  The rest of the incorporated



places, with the exception of Florence, grew at 1 or 2 percent per year,



below the county average.  The population of Florence grew more



rapidly.  How much of the population growth of the cities  was due to



annexations, rather than natural increase or in-migration, is not shown



by census data.

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                               Table I
 POPULATION OF LANE COUNTY AND ITS INCORPORATED AREAS, 1950 and 1960
City or Area

Lane County, Total
  1950
125,776
 1960
162,890
Eugene-Springfield "Urban Area"*/     72,000^7    99,361
  Eugene, city                        35,879      50,977
  Springfield, city                   10,807      19,616
  Unincorporated portion of
     "Urban Area"                     25,000fe/    28,768
Coburg, city
Cottage Grove, city
Creswell, city
Florence, city
Junction City, city
Lowell, city
Oakridge, city

"Rural" portions of county".'
    693
  3,536
    662
  1,026
  1,475
    50Q£'
  1,562

 44,322
    754
  3,895
    760
  1,642
  1,614
    503
  1,973

 52,388
1960 as 7.
 of 1950

   130

   133
   142
   182

   115

   109
   110
   115
   160
   109
    c/
   126

   118
a/ The Eugene-Springfield "Urban Area" is defined as the total area
within the boundaries of the following 1960 Census County Divisions:
Bailey Hill, Bethel, Eugene, Goshen, Norkenzie, River Road, Springfield,
ijnd Willakenzie.
b/ The boundaries of the precincts used as census units in 1950 do not
coincide with the boundaries of the 1960 Census County Divisions.  The
1950 population in the comparable 1960 areas has been estimated from
USGS maps.
£/ Lowell was not incorporated in 1950 and no accurate figure is
available.  Its population at the time of incorporation, in 1954, was
581.  However, growth is believed to have occurred between 1950 and
1954; and an estimate for 1950 population is 500.
d/ The ''rural" portion includes small, unincorporated communities and
some suburban development, so that the increase in "rural" population
should not be interpreted to indicate an increase in agricultural
population.  In fact, total agricultural employment in the county
declined substantially during the decade, as shown in Table III.
The population of the part of Lane County outside the Willamette Basin,

and the distribution of the Willamette Basin portion among its various

sub-basins, are shown in table II.  The Eugene-Springfield "Urban Area,"

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which is defined in footnote "a" of Table I, has not been allocated to

any sub-basin.  The rest of the county has been divided among six

sub-basins, on the basis of contour lines on USGS maps.  The dividing

lines between sub-basins in the relatively heavily-populated valley areas

along the "main stem" of the Willamette River are not precise.  This,

together with the fact that the population in many areas has had to be

estimated from USGS maps, since the 1960 census divisions and 1950

precincts do not coincide with basin boundaries, means that the figures

in table II can only be regarded as rough estimates.

                                Table II
           LANE COUNTY POPULATION, BY SUB-BASIN, 1950 AND 1960

                                        Estimated       Distribution
                                       Population,     of Population,
                                        thousands         per cent
    Sub-Basin                          1950   1960     1950     1960

    Eugene-Springfield "Urban Area"     72.4   99.4      58       61
    Coast Fork, Willamette River        13.0   14.5      10        9
    Long Tom River                       7.9   10.5       6        6
    Main stem of Willamette
      below "Urban Area11                 7.8   11.5       6        7
    McKenzie River                       6.5    6.5       5        4
    Middle Fork, Willamette River        9.6   11.0       8        7

    Total in Willamette River Basin    117.2  153.4      93       94

    Siuslaw and other coastal            8.6    9.5       7        6

    Total, Lane County                 125.8  162.9     100      100


Industry

The economy of Lane County is heavily dependent upon lumber and wood

products manufacturing, which accounted for 80 percent of all manu-

facturing employment in 1960.  This was down from about 86 percent in

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1950, however, so that some diversification in manufacturing activity

occurred during the 1950-60 decade.  During the decade, there was also

a substantial increase in service industry employment, particularly

in education.  The University of Oregon is, after lumber and wood

products manufacturing, the second most important factor in the economic

base of the county.  Table III shows employment by industry in the

county as of 1950 and 1960.

                                Table III
           EMPLOYMENT, BY INDUSTRY, LANE COUNTY, 1950 AND 1960

                                  Employment, in thousands
                                                   Change,    1960 as %
 Industry                         1950    1960     1950-60     of 1950 *'

 Agriculture                       3.6     2.1      -1.5          59
 Forestry, Fishing & Mining         .4      .5      +0.1         121
 Manufacturing, Total             13.1    16.8      +3.7         128
   Lumber, wood products          11.4    13.5      +2.1         119
   Food and kindred                 .6     1.2      +0.6         193
   Printing and publishing          .4      .8      +0.4         190
   All other manufacturing          .7     1.3      +0.6         187
 Construction                      3.7     4.0      +0.3         106
 R.R. Transportation               1.9     1.7      -0.2          92
 Education, public                 2.3     4.4      +2.1         195
 All other services               19.8    27.0      +7.2         136
 Industry not reported              .5     1.0      +0.5         184
 Employed Civilian Labor Force    45.3    57.5     +12.2         127
 a/ Based on unrounded figures


An indication of the type and degree of specialization in Lane County  can

be drawn from a comparison of the distribution of employment there with

the distribution in the Portland Region as a whole.   This is shown in

Table IV.  In addition to Lane County's specialization in lumber and

wood products and in education, as already mentioned, the county's

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employment in railroad transportation is well above the proportion for

the Region.  This is due to the location at Eugene of Southern Pacific

shops and other facilities.  These three Industries--lumber and wood

products manufacturing, education, and railroad transportation--are the

principal elements in the economic base of Lane County.  Most of the

rest of the county's employment represents service-type activity ,

undertaken to supply the needs of the local population.

                                Table IV
  LABOR FORCE DISTRIBUTION, LANE COUNTY AND PORTLAND REGION, APRIL 1960
                     (Per cent of total labor force)

                                                Lane     Portland .
       Industry                                County     Region —

       Agriculture                               3.4        6.6
       Forestry, Fishing & Mining                 .9         .8
       Manufacturing, Total                     27.4      . 22.8
         Lumber, Wood Products                  22.0       11.1
         Food and kindred                        2.0        2.6
         Printing and publishing                 1.3        1.3
         All otbea? manufacturing                 2.1        7.8
       Construction                              6.5        5.9
       R.R. Transportation                       2.8        1.8
       Education, public                         7.2        4.9
       All other services                       44.0       48.0
       Industry not reported                     1.6        2.4
       Employed civilian labor force, Total     93.8       93.2
       Unemployed                                6.0        6.0
       Military                                	J2      	J3
       Total Labor Force                       100.0      100.0
       a/ The Portland Region includes all of Oregon plus five
       counties in southwestern Washington.
The fact that service industry employment in Lane County is lower than

in the Regional average is largely due to the fact that the Portland

Metropolitan Area performs some service functions, such as in whole-

saling and finance, for the rest of the Region.

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ESTIMATED FUTURE GROWTH

Factors Influencing Future Growth

An estimate of  future industrial growth in Lane County was made in 1961

by the Bureau of Municipal Research— and, for purposes of this prelim-

inary study, the findings of the Bureau's report have been accepted as

general guidelines.  The Bureau's report anticipates a moderate increase

during the period from 1960 to 1980-85 in the timber resources available

in Lane County, due to a slightly higher allowable cut in National

Forest lands and to intensified forest management.  This would permit
                                                                >
a 10 or 15 percent increase in lumber and wood products employment by

1980-85, as well as establishment of an additional pulp or paper mill

in Lane County.  There is now one mill in the county, a "kraft" mill

of 400 tons-per-day capacity operated at Springfield by the Weyerhaeuser

Company.  A study made in 1958 by Sandwell and Company of potential pulp

and paper development in the Upper Willamette Valley—' also anticipates

establishment of one additional mill, of at least 300 tons per day

initial capacity, but with possibilities of expansion later.  For purposes

of this preliminary survey, it is assumed here that pulp and paper

capacity in Lane County might be about 800 tons per day by 1980 and

1,500 tons per day by 2010.
I/ Employment Forecast. An Estimate of Lane County Employment for 1980-85,
Bureau of Municipal Research, University of Oregon, 1961.
£/ Upper Willamette Valley Pulp and Paper Development Study,  by Sandwell
and Co., for Oregon State Department of Planning and Development,
March 1958.

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In addition to the increase in timber-based production, the Bureau of

Municipal Research's study also forecast the following growth factors

for Lane County from the present to 1980-85:  an increase of about

40 percent in agricultural production, despite a continued decline in

agricultural employment; a doubling of enrollment at the University of

Oregon; and beneficial effects from the development of the Port of

Siuslaw, at Florence.

Future Employment and Population

On the basis of the factors noted in the previous paragraph, a

preliminary estimate of future employment and population in Lane County

is shown in Table V.  The estimates for 2010 have been made ort the

assumption that basic trends during 1960-80 will continue.  The figures

in Table V, particularly those for 2010, should not be regarded as

forecasts, but rather as illustrative estimates of values which the

assumed growth rates and relationships would yield.

                                 Table V
PRELIMINARY ESTIMATE OF LANE COUNTY EMPLOYMENT AND POPULATION, 1980 AND 2010
        (Estimated employment and population to nearest thousand)

   Industry                                    1960     1980     2010

   Agriculture, forestry, fisheries, mining      2.6      2.4      2.2
   Manufacturing, Total                         16.8     2.1.6     31.8
     Lumber, wood products,
        furniture and fix.                      13.5     15.7     17.2
     Pulp and paper                               .3      1.0      1.7
     Food and kindred                            1.2      1.7      2.9
     All other                                   1.8      3.2      9.0
   GOODS, TOTAL                                 19.4     24.0     33.0

   CONSTRUCTION AND ALL SERVICES, TOTAL         38.1     60.0    109.0

   TOTAL EMPLOYED CIVILIAN LABOR FORCE          57.5     84.0    142.0

   Construction + Services as multiple
     of Goods                                    2.0      2.5      3.3

   Population as multiple of employment          2.8      2.8      2.8

   Population, Lane County                     163.0    235.0    400.0

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In Table V, in the first group shown, it has been assumed that agri-

cultural employment would continue to decline, but that this would be

partially offset by increased employment in forestry, fisheries, and

mining.  Lumber and wood products employment growth after 1980 would depend

upon further developments of secondary manufacturing of wood products

and possibly some increase in harvest resulting from improved tree farm

management.  Pulp and paper employment would include increased

fabrication of pulp into finished paper products.  Food and kindred includes

products for the local market and so will tend to increase with population.

In addition, agricultural production is expected to continue to increase,

despite declining farm labor, thus providing further raw materials for

food processing.  The growth assumed for "all other manufacturing" is

a continuation of the diversification which occurred during 1950-60, which

is expected to accelerate as local population increases to the point where

it can provide a market for local production of goods formerly imported.


The population estimates for 1980 and 2010, derived in Table V from

estimated future employment, are consistent with rates of growth that

would result from the Series II population projection for Oregon, made

by the U. S. Census Bureau.—'  The Series II (migration assumption

no. 2) projection for Oregon is 2,783,000 in 1980 and 4,156,000 in 2000.

If that growth curve is extended, the projected 2010 population is

4,919,000.  A preliminary distribution of these state totals among the
JL/ Population Projections and Economic Assumption, Kerr Committee on
National Water Resources, Committee Print No. 5, page 29.

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various sub-regions of the state yields estimates for Lane County




approximately the same as those shown in Table V.






The distribution of estimated future population among the various sub-




basins of Lane County is difficult to predict because basin boundaries in




the densely populated central area around Eugene are not locational




barriers.  Plants might locate at one of numerous potential sites, within




a few miles of each other and yet lying in different sub-basins.   Estimates




of future population distribution can only be made arbitrarily on the




basis of broad considerations.  It is likely that the Eugene-Springfield




"Urban Area" will constitute an increasing proportion of total county




population, continuing the 1950-60 trend.  Development of the port of




Siuslaw could cause the population of that sub-basin to increase  more




rapidly, halting the declining trend in that sub-basin's share of county




population shown for the 1950-60 decade.  The sub-basin identified as




the "Main stem of the Willamette below the Urban Area ' is likely  to




maintain its share of county population, because of its central location.




It appears reasonable to assume that the Coast Fork and Middle Fork of




the Willamette and the McKenzie Basins will continue to decline as a




percentage of total county population, as they did during 1950-60.  On




the basis of these assumptions, Table VI shows an illustrative




distribution of estimated future Lane County population among the various




sub-basins.  Table VI assumes that there will be no abrupt break  with




trends of the past decade.

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                                   Table VI
ILLUSTRATIVE DISTRIBUTION OF LANE COUNTY POPULATION BY SUB-BASIN,  1980 AND 2010
Sub-Basin

Eugene-Springfield "Urban Area"
Coast Fork, Willamette River
Long Tom River
Main stem of Willamette below "Urban Area"
McKenzie River
Middle Fork, Willamette River

Total in Willamette River Basin

Siuslaw and other coastal

Total, Lane County
   Population,
    thousands
 1960 1980 2010

 99.4  150  267
 14.5   19   28
 10.5   14   20
 11.5   16   27
  6.5    7   10
 11.0   14   20

153.4  220  372

  9.5   15   28

162.9  235  400
 Distribution,
   per cent
1960 1980 2010
61
9
6
7
4,
7
94
6
64
8
6
7
3
6
94
6
67
7
5
7
2
5
93
7
 100  100  100
   For design purposes, hypothetical figures for future population of the

   cities in Lane County can be extrapolated, though it should be emphasized

   that such estimates are even more arbitrary than estimates for sub-basins.

   The economies of these cities are so small and often so specialized that

   the location of one new plant or the loss of one existing plant could

   have a pronounced effect on their population.  The figures for future

   city populations, shown in Table VII, are based largely on extrapolations

   of the past trend in average annual rate of growth and the past trend in

   each city's share of the population of the sub-basin in which it is

   located.  That is, the figures for cities, in Table VII, are derived

   partially from the estimates for sub-basins shown in Table VI.  In addition

   to the extrapolation of these trends, certain general considerations

   influenced the estimates for future city populations.  Among these.

   considerations are the fallowing:

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        All of the sub-basins, except the Siuslaw and coastal area,

   radiate out from the Eugene-Springfield "Urban Area," so that a consid-

   erable part of the unincorporated population in each of these sub-basins

   is close-in suburban development.  This is likely to continue to  be true

   in the future, and explains the relatively large unincorporated

   population in the sub-basins.

        It is assumed that Coburg, a satellite suburb of Eugene, will

   increase more rapidly in the future than it has in the past,  as the

   Urban Area grows.

        Cities located along the main lines of north-south communication,

   particularly Cottage Grove and to a lesser extent Junction City,  will

   derive some stimulus from that fact.

        Some expansion of lumber and wood products employment in the county

   is expected, and part of this can locate at Oakridge.

        It is assumed that the smaller cities, Lowell and Creswell,  will

   grow about in proportion with their sub-basins.

        Florence is expected to grow as  a result of development  of the port

   of Siuslaw and seaside recreation.

                                   Table VII
ILLUSTRATIVE ESTIMATES OF FUTURE POPULATION OF CITIES IN LANE COUNTY,  1980-2010
                       (Population to nearest thousand)

            City                             1960    1980    2010

            Eugene-Springfield Urban Area    99.4     150     267
            Coburg                             .8     1.3     2.4
            Cottage Grove                     3.9     5.5     9.1
            Creswell                           .8     1.1     1.7
            Florence                          1.6     3.4     7.8
            Junction City                     1.6     2.2     3.8
            Lowell                             .5      .7     1.0
            Oakridge                          2.0     2.8     4.0

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