Yakima Racks' Announcement of Move to Portland Met with Some Criticism

Car rack manufacurer Yakima Racks' announcement that it is relocating its 70-person headquarters from Arcata, Calif., to Portland, Oregon has been met with some criticism from analysts claiming the company has the potential to fall victim to what economists call the 'cluster approach.' Specifically that it could be contributing to what could lead to an over-specialization, making the Portland economy vulnerable to steep crashes.

Oregon's unemployment rate has ranked among the nation's highest for nearly three years, in part because the most recent downturn hit its high-tech and traditional manufacturing sectors so hard. Analysts have suggested the Oregon outdoor industry could become vulnerable as well. Joining Yakima Racks, and it's parent company, Watermark, which also owns Perception Kayaks and Dagger Kayaks, is bicycle parts maker King Bicycle Group of Redding, California. They are transferring 100 jobs to Portland as well. Nike, Columbia Sportwear, Adidas and Solomon Sports are some of the outdoor manufacturers already headquartered in the Portland area.

Yakima is betting the city's outdoor friendly reputation and rich entertainment scene will help it find and keep designers, engineers, marketers and other educated professionals that would continue Yakima's well regarded brand of car rack systems including its ski, canoe, kayak and bike racks.