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Oregon Winery Wages Outpace Employment
Jan 20, 2015
(Wines&Vines) - The dramatic growth of the Oregon wine industry is paying off for workers, with wages rising faster than employment.
The latest study of the Oregon wine industry’s economic impact, prepared by Full Glass Research of Berkeley, Calif., for the Oregon Wine Board, indicates that total industry wages were up 38% in 2013 from 2010, the last year examined.
By contrast, employment rose just 26.5%, resulting in an increase in the average annual wage to $30,821 for the 17,099 workers in the industry.
Overall, the economic impact of the state’s wine industry rose 24.1% between 2010 and 2013, to reach $3.35 billion.
The surge in wages is directly related to consumer demand for Oregon wine, explained Tom Danowski, executive director of the Oregon Wine Board. Consumers have been willing to pay the prices producers are charging, which has supported prices and in turn wage growth. Wineries have been able to pay the talent needed to produce top-quality wine, Danowski told Wines & Vines.
An improving economy also has supported the restaurant and retail sectors, for which the report draws on industry averages to extrapolate the sector’s impact.
“Most Oregon wineries are finding firm demand and very good value recognition for the prices that they have to charge.…It supports wage growth, it also supports continued investment in vineyard expansion and also things like expensive French oak barrels that are so critical to the quality of Oregon wine,” Danowski said. “All those are investments that are supported when you can hold your pricing, and the consumer is willing to pay a fair price for great wine.”
Indeed, the double-digit growth in wages comes on the back of dramatic growth in the industry itself: The state’s grape crop rose in value to $128 million in 2013 from $63.2 million in 2010, while production volumes rose 58.6% to approach 2.8 million cases (or 25 million liters) in 2013.
Sales have followed suit, Danowski added, pointing to figures from ShipCompliant and Wines & Vines and from Nielsen indicating that growth in the state’s wine sales are as much as 3.5 times industry averages.
Recently, everyone from newcomers from California who snapped up vineyard properties during the past 18 months to smaller operators seeking niche opportunities have seen opportunities in Oregon.
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