Portland faces downturn with a more resilient economy
While Portland’s economy has moved more towards white collar sectors, it remains highly diversified
June 08, 2020
- The region’s economy has diversified which makes it more resilient in the face of a downturn and buffers the metro from sector-specific contractions like tech in the Dot-com crash or financial services in the Great Recession.
- Moody’s Analytics’ Industrial Diversity Index puts Portland as the 2nd most economically diverse large metro on the West Coast after Riverside, CA. The index measures how closely a region’s economy resembles that of the whole U.S., with a score of 1.0 representing an exact match to the U.S. economy. Portland’s diversity index score was 0.72 in 2019.
- The economic influence of industrial sectors such as manufacturing and trade; transport and utilities has diminished, while financial and professional services are rising. Financial Services is the largest industry in Portland, having contributed $33.3B to the economy in 2018, while manufacturing contributed $26.1B.
- Economic diversity can position a market to be more resilient through periods of contraction. Portland’s industrial diversity score is a strong indicator of how it is positioned to weather downturns.