December 27, 2005

  

A Publication of the Economic Development Corporation of Utah

 PRESIDENT'S MESSAGE

 Thanks to Our Partners



With this, the final issue of the Economic Review for 2005, I would like to sincerely thank all of our partners in economic development, particularly our investors, whose belief and support in our mission is critical in our efforts and is greatly appreciated. As today’s feature story points out, our 2005-2006 fiscal year is off to a wonderful start with no sign of slowing on the horizon. In other words, look for good things in 2006.

Today’s slightly pared down issue also includes a few of the ED-oriented stories from the past week. For those looking for our informative Investor Spotlights, please note that feature will be back beginning with the first January issue. In the meantime, if you have comments, suggestions or topics you’d like to see in Economic Review, please send your comments by clicking the “Comments” button on the bottom of this page.

All the best to you and yours this Holiday Season and, again, thanks for your continued support!

Jeff Edwards
Jeff Edwards
President and CEO

FEATURE STORY

Strong Start Bodes Well for Utah ED in 2006


What better way to start the new calendar year than with a horizon full of hot economic development opportunities? Interest in the state continues to be strong. Results through the first five months of EDCUTAH’s 2006 fiscal year (July 1, ‘05 to June 30, ‘06) include:
  • 1,429 jobs created (announced/pending)
  • 115 jobs retained (announced/pending)
  • 39 national and 31 Utah site visits
  • 439 referrals received from investors
  • 6 announcements
  • 5 pending announcements
  • 1,234,500 square footage increase (announced/pending)
The following chart depicts EDCUTAH’s three-year summary of activity. As EDCUTAH’s year-to-date activity depicts, site visits, square footage and new jobs created look to out pace 2005 numbers.
 
Three Year Summary of Activity
2002-03 2003-04 2004-05 2005-06 (YTD)
Site Visits 20 31 65 39
New Jobs 1156 1530 4190 1429
Sq. Footage 312K 814K 2.2M 1,234,500


Furthermore, EDCUTAH is working on a slate of projects with tremendous impact on Utah jobs and the economy, should they come to fruition. For example:

  • a medical manufacturing project could add 1,000+ jobs and 200,000 sq. ft. of space;
  • a mining/defense manufacturing project could add 30-50 jobs in rural Utah;
  • a financial/IT project could add 250 high paying jobs and a significant relocation from the Bay Area (Utah is competing with Phoenix and Portland);
  • a consumer products HQ project could add 150 jobs and 150,000 sq. ft. (Utah is on the short list);
  • a food processing project could add 550 jobs and 130,000 sq. ft. of space (Utah is competing with Arizona and Nevada);
  • a graphic design company with 50+ jobs is interested in Utah because of BYU and U of U design programs.

Site Visits

Recent site visits to Utah include:
  • a financial/IT back office project that could add 450 jobs and 125,000 sq. ft. of space (competition is between Salt Lake and Phoenix)
  • a financial/IT back office relocation project with 300-500 jobs and 100,000 sq. ft. of space (Salt Lake is one of five finalists)
EDCUTAH is involved in numerous other activities including: public relations and marketing campaigns, responding to research inquiries, operating cost modeling, retail analysis, economic impact reports, and supplier/vendor searches.

Indeed, EDCUTAH's 2005-2006 fiscal year is off to a wonderful start with no sign of slowing on the horizon.

EDCUTAH Helps Progeny Systems Find SLC Location

Progeny Systems Corporation, a privately held high-tech small business specializing in electronic systems development for the United States Department of Defense (DoD), and other government and business organizations, has recently opened its newest regional facility in Salt Lake City.

EDCUTAH assisted Progeny Systems in identifying real estate options. Headquartered in Manassas, Virginia, Progeny Systems offers a full array of computing systems to support the development, testing and integration of leading edge technology systems for the DoD and commercial customers.

In addition to its Virginia and Utah locations, Progeny Systems’ other major facilities are located in Middletown, Rhode Island; Groton, Connecticut; and its ISO 9001:2000 certified manufacturing facility in Charleroi, Pennsylvania. Additional regional facilities include Pearl Harbor, Hawaii, and San Diego, California.

Progeny Systems’ Utah facility supports sensor systems research and development. In partnership with the University of Utah, Progeny has successfully pursued R&D contracts with the Department of Defense under the Small Business Innovative Research Program.

Inc. Magazine Announces 25th Annual Search for 500 Fastest-Growing Companies in America

- Inc. magazine and Inc.com have begun the search for the 2006 Inc. 500, the annual listing of America’s 500 fastest growing privately-held companies.  The Inc. 500 listing is widely regarded as the most prestigious indicator of growth among independent companies in the US.

A preliminary qualification form is available at Inc.com through  January 15. In late January and February, Inc. staff will contact the companies that have a chance at making the list and ask them to fill out a more detailed application. (Full press release)

CALENDAR

Jan. 11:
Washington County Economic Summit (www.whatsupdownsouth.com) (St. George)

Feb. 10-12:
EDCUTAH Site Consultant Event (Park City)

March 8-9:
Big Business and Technology Expo (Orem)

April 6-7:
Utah League of Cities and Towns Spring Convention (St. George)

April 9-12:
BIO 2006 Annual Conference (Chicago)

April 23-26:
CoreNet Global Summit Spring Convention (Philadelphia)

May 3-4:
Salt Lake Chamber Business-to-Business Expo

May 21-24:
ICSC Spring Convention (Las Vegas)

EDCUTAH PARTNERS

Current Partners
Why Be a Partner?
 Board of Trustees

IN THE NEWS

Business Headlines from the Past Week

Ethnic Groups Forming Chambers of Commerce

- The Black Chamber of Commerce is hoping to hold its first event Feb. 1. A Pacific Islander Chamber of Commerce is also forming, and organizers hope to hold an inaugural event in January. When the two chambers form, they'll become part of a blossoming minority business community. An Asian Chamber of Commerce recently formed, and a Latin-American Chamber of Commerce held its inaugural event in April. (D-News)

After Years of Research and Huge Investments, Utah Biotech Companies Close in on Breakthroughs

- In the coming year, NPS Pharmaceuticals could transform from being a big-spending pharmaceutical R&D company to one wading into domestic and global markets worth billions of dollars. NPS' flirtation with profitability is not unique. A number of Utah biotech and biomedical companies can see hard-fought-for payoffs coming. (SL Trib)

Sandy-based Firm Closes on Geneva Property

- Christmas arrived on Friday for Anderson Development, which closed four days early on the purchase of Geneva Steel's 1,700 acres of property. (D-News)

Albertsons Abandons Talks to Sell the Company

- Negotiations with a group of investors including Supervalu Inc. and CVS Corp. concluded because "we did not get a bid we could accept," Albertsons spokeswoman Shannon Bennett said late Thursday. The company said it is in discussions about selling some assets. (D-News here and here)

SLC Job Forecast is Best in Utah

- Salt Lake City employers are expecting to increase staffing at a higher rate than their counterparts in Ogden, Orem and statewide, Manpower Inc.'s Employment Outlook Survey for the first quarter of 2006 reveals. (SL Trib)

 

Utah to Reap Millions from Military Spending Bill

- Hill Air Force Base will get a large chunk of the money earmarked for Utah in the Department of Defense Appropriations bill, including $5.4 million to purchase new equipment for an F-16 shop and $4.2 million to improve productivity in overhauling landing gear. (SL Trib)

Cache County’s Economy on the Rise

- Cache County’s economy is on the upswing, based on Department of Workforce Services data released this week. “All the economic indicators — new jobs, unemployment, spending and construction — are positive,” said John Mathews, northern regional economist for Utah’s Department of Workforce Services. (Herald Journal)

Salt Lake City Manufacturer’s Revolutionary Architectural Plastic Creates Design Buzz

- 3form, a Salt Lake City materials manufacturer, has created a buzz in design circles with a hotshot proprietary material called eco-resin, and an architectural unit ready to collaborate with architects on their most elaborate visions -- whether it's translucent undulating walls or exuberant stages for the circus. (Business Week)

Oil, Gas Booming in Utah

- Sky-high natural gas and oil prices are leading to a rush of new drilling rigs in Utah and to a record year in the production sales values of "extractive industries." By the end of 2005, Utah is expected to see the total sales value for oil, gas, minerals and coal reach $6.3 billion, a 50 percent increase from $4.2 billion in 2004, and the largest amount in the 40 years the state has been tracking the number. (D-News) (Standard-Examiner) (SL Trib)

Jobs Surge 3.6% in Utah County

- Employment growth in Utah County has been "exceptionally strong" in the past year, according to a new economic report. Utah County saw nearly 6,000 new nonagricultural jobs — an increase of 3.6 percent — from October 2004 to October 2005. (D-News)

Minimum Wage Battle Line Drawn

- Utah Sen. Ed Mayne wants to give low-income workers a raise. In January, he will introduce legislation to increase the wage in Utah from $5.15 - the federal level - to $7 an hour. "It's sound economic policy. It's pro-family. How would you like to be a legislator who would oppose a pro-family piece of legislation in Utah?" Mayne said, even while acknowledging that the effort faces a tough fight in the Legislature. (SL Trib)

Micron Earnings Exceed Forecasts

- Micron Technology Inc. beat analysts' earnings predictions and solidified hopes for future hiring at its all-but-mothballed Lehi computer chip plant. (SL Trib)

Utah Demographer Sees Nevada Growth Spurt Slowing; Utah’s Picking Up

- For the 19th year in a row, Utah's neighbor to the west has led the nation in the rate of population growth and is now only about 55,000 residents behind the Beehive State.  But as Utah growth climbs, Nevada may be slowing down. A new report by the Governor’s Office of Planning and Budget is just the latest indicator of Utah's strong economic growth that has hastened the population increase. Home construction is up, jobs and personal income are on the rise, and these are not short-term trends, according to Utah's leading economists. (SL Trib)

Federal Grant Will Help Train Energy Workers in Eastern Utah

- The U.S. Labor Department has announced a grant of more than $2.7 million to train eastern Utah workers for careers in multiple sectors of the energy industry. The grant, awarded to the College of Eastern Utah, is part of nearly $27 million in investments made in support of the nation's energy work force through the President's High Growth Job Training Initiative.

(D-News)

Wasatch Front Demographics Make Area Appealing to Many Retailers

- A number of specialty retailers, including sporting goods retailer Sports Chalet and arts and crafts company Hobby Lobby, are planning to open their first Utah stores, according to a new report. (SL Trib)

Ohio, Utah Vie for Beryllium Plant

- The Defense Department is helping underwrite plans at Cleveland-based Brush Wellman Inc. for a plant in either Ohio or Utah to process beryllium. The plant could cost as much as $60 million and is expected to add about 25 jobs and create additional support jobs. Brush is studying whether to put the plant in Delta, where it has mining and processing operations that employ 68 people. (D-News)

N. Utah Housing Sales Expected to Stay Strong

- Cold weather is not slowing the hot housing market in Northern Utah, as the area catches up with a nationwide boom that may have reached its peak, according to the most recent numbers available. Figures released by the Weber/North Davis Association of Realtors show sales of existing homes in Davis County were up nearly 25 percent last month, compared to November 2004. Weber County sales rose almost 8 percent in the same period. (Standard-Examiner)

Utah Construction Firms to Merge, Jobs Retained

- Two subsidiaries of Clyde Companies Inc., of Orem, are consolidating operations. Sunroc Corp., a St. George-based building supplies company with 550 workers, and H.E. Davis Construction, a Spanish Fork-based utilities construction, grading and excavation company with 225 workers will merge. All 775 workers are retained and will continue to work at both offices. (Daily Herald)

Index Shows Job Growth in Southern Utah

- Zions Bank recently released the Washington County Small Business Index, which revealed payrolls in the county have expanded by 3,800 jobs in the last year. In addition, the unemployment rate was only 3.7 percent, down from 4 percent one year ago. These changes caused the index to decline to 113.2 from 113.7 in October. (Spectrum)

Health Care Co. Interested in Downtown Ogden Location

- New Mexico-based Ernest Health Inc. is interested in building a 20,000-square-foot, 40-bed long-term acute care facility, called the Ogden Specialty Hospital, on 4 acres bordering the Ogden River in downtown Ogden. The deal, involving Ogden City, would force the Stage Coach Restaurant to move. (Standard-Examiner)

Media Play to Close its Doors

- Media Play, one of the first big-box specialty retailers to come to Utah, will close all five of its Wasatch Front stores by the end of January as part of a national liquidation, store officials said. Parent company Musicland Group Inc. will close all 61 of its Media Play stores nationwide, including Utah stores in Salt Lake City, Taylorsville, Midvale, Riverdale and Orem. (SL Trib)

Construction Boosts Job Creation in the West

- The impact of the recent construction boom has been felt particularly in Western states, where the construction employment sector accounts for 21.9 percent of all new jobs in the past year – nearly double the national average of 12.8 percent, according to the current issue of the Western Blue Chip Economic Forecast. (Arizona State University)

Tourism Board Appropriates Funds

- The Utah Board of Tourism Development has completed the first $1 million funding cycle of the state's Cooperative Marketing program, approving $209,000 in a second round of appropriations. The Utah Legislature has appropriated a total of $2 million for the program for the current fiscal year. (D-News)

Big Business Projects Changing the Look of Tooele County

- Home Depot, is expected to open in January, while its new neighbor across the highway, Liddiard Home Furnishings plans to open its doors in April of 2006. (Tooele Transcript)

Tooele Business Incubation Center May Help Startups

- A new option for young businesses in Tooele County, called a business incubation center, provides low-rent office space, a shared fax and copy machine, phone lines, weekly consultation with an accountant and lawyer, an address and training. (Tooele Transcript)