Oregon Public Broadcasting

All this week, we've been hearing stories about people in the Northwest looking for ways to get back to work, and move beyond the recession.

Today we'll hear from a husband and wife in Central Oregon. As David Nogueras reports from Bend, they each found niche businesses that not only survived—but thrived-- in the downturn.

It's Friday morning at Rescue Moderne Consignment and things here are bustling.

Angela Dietrich at Rescue Moderne Consignment

Maybe it's the dance music that has shoppers in the mood. More likely though, it's the eclectic mix of new and used clothes and accessories bringing in street traffic. 

Customers want to know what came in overnight. 

Rescue is a consignment store that has the feel of a boutique. Angela Dietrich first opened her store in 2006.

Not too long after that, the housing market imploded. Dietrich, like everyone in Central Oregon was anxious about her business. 

But then she started to crunch the numbers.

Angela Dietrich: "The worse the economy got, the better our numbers kept getting. So it was a really, really tiny space but we just kept consistently growing no matter what. And so that's what gave us the confidence after three years in that location to move to a location this size which is almost double what we had before. It's about 1,800 square feet."

The collapse of the housing market hit Bend particularly hard. Jobs that paid well in construction and wood product manufacturing dried up along with the demand for housing. Unemployment here hovers at more than 14 percent. 

Which is why it's curious that there are businesses that are actually expanding here.

Just a few miles outside of town, Angela's husband, Alan Dietrich is working on an expansion project of his own.

He's a national sales manager, and a partner in Bendistillery.  It's a small batch distiller that makes boutique spirits. 

At the distillery site, Alan walks past a giant 1000 gallon blending tank sitting on a trailer waiting to be unloaded. Alan Dietrich: "So let me show you what we've got going on here…so this is a 24 acres, it was a working little ranch like forever and we purchased it two years ago and are converting it into a distillery, office sampling room and an organically certified farming operation..."

Alan says that Bendistillery will use that farmland to grow some of the grains and juniper berries used in its various spirits.

So how is it that these two businesses are thriving in a crummy economy?

Well, the easy way to tell this story goes something like this:

In a down economy, people are on the lookout for better deals on items like clothing and depending how bad things are, they could probably use a stiff drink as well.

So the Dietrichs seem to have found the right niche.

The Dietrich Family -- niche business owners

Angela Dietrich: "Yeah it's funny because people ask us that, that we're lucky that we're in two recession proof businesses."

Alan Dietrich: "I think like you point out the economy certainly is a factor in how good the businesses have been doing but there are a lot of other factors that are contributing to how well these businesses have been doing."

In the case of the distillery, Alan says he believes small batch distilling is a concept that's still in its infancy. And in spite of the downturn, he says there's enormous potential for growth.

Alan Dietrich: "When I'm explaining this to people I equate this to the way craft beer was 20-25 years ago, where the craft brewery were really first getting some traction.  I think we're at that stage in the craft spirit world right now."

Dietrich says over the last 10 years the company has managed to increase it's sales on an average of 25 percent each year. Alan attributes much the distillery's success to the fact that it's an Oregon-based company.

Alan Dietrich: "We're in a part of the country that not only seems to foster real entrepreneurial spirit but we have a population that really appreciates the local concept and seeks it out." 

That "go-local" philosophy is also something that Angela's store seems to have tapped into. 

Besides the consignment aspect of the business, the store also features clothing and jewelry from local artists.

Angela Dietrich: "For us they're like a bunch of our kids that we want to see do really, really well.  Anything we can do to promote them. We don't charge them any fees and we promote them as much as we can."

As she looks though the racks, Angela shows off the work of some of the featured artists.

Angela Dietrich: "This is a line called dirty snowflake they go and rescue the scraps and turn it into clothing."

Reuse and recycling she says is central to store's philosophy. 

Dietrich says her customers respond to financial realties, but she believes that when consumers make ecologically sound choices, the habit will stick.

Angela Dietrich: "I think right now it's more of an economic choice with the luxury of hey I'm doing something good for the environment added on but I think as soon as the economy switches around it will be the other way around.  It will be, I'm making a socially conscious choice to buy used items and recycled items and oh and by the way it's half the price."

These two entrepreneurs think economic recovery might not be too off. 

Both say they've seen indications that the economy here might be on the upswing. And though they have been fortunate enough to be among businesses that are doing well, they recognize that the community still has challenges to overcome.

Alan Dietrich: "I think most of the people here have found their steady state. People are adapting. Certainly a lot of people that are struggling and their has been some horror stories but the majority of the town has just adjusted their lifestyle to adapt to the new economy. Cause the people that live here really want to be here and it's never been a place that you come to get rich. It's a place that you come to enjoy life."

Alan Dietrich says when he came here 20 years ago, it wasn't to get rich. He came here to ski. But with the two businesses booming, life here has been pretty enjoyable.

Tomorrow, in the final story in our "Getting Back to Work" series: when the job search in the Northwest turns up nothing, is it time to consider a move?