April 11, 2008

   A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

President's Message

Recent Accolades Help us Recruit, Retain Businesses


In last week?s edition we included a press release from the Governor?s Office of Economic Development detailing some of Utah?s most recent rankings and accolades. This week?s feature article expands upon the press release and details why rankings from groups like Pollina have such a strong impact on our ability to recruit and retain business.

Today?s Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you would like to see in the Economic Review, please contact us by clicking the ?comments? button on the bottom of this page.
Jeff Edwards

Jeff Edwards
President and CEO

Feature

Understanding the Significance of Utah's 'Pollina Top 10 Rank'


Last week in the Economic Review we highlighted Utah?s ranking within the ?Pollina Corporate Top 10 Pro-Business States for 2008.? Being amongst the top 10 states for pro-business is huge for the Beehive State. Consider the following and you will understand why?

Pollina is a real estate brokerage and consulting firm that represents corporations in real estate matters on a national and international basis. As such, it has been conducting detailed examinations of all states? economic development efforts for the past four years. The firm?s clients often pose the question, ?If we are to keep our operations in the U.S., which states have the most pro-business climates?? Thus, the annual ?Pollina Corporate Top 10 Pro-business States? study. Brent Pollina, the author, says the study evaluates those factors most important to corporate executives?business factors that can be controlled by a state?s political leaders.

?Each of the top 10 pro-business states has something to learn from the others, and all 10 should be held up as models for the other 40 states and the federal government,? Pollina says.

This is the second year in a row that the Beehive State has ranked in Pollina?s top 10. Utah ranked ninth this year, fifth in 2007 and 12th in 2006. Here?s a rundown of the top 10 for 2008:

1. North Carolina
2. Florida
3. Virginia
4. South Carolina
5. Wyoming
6. South Dakota
7. Georgia
8. Alabama
9. Utah
10. Kansas

Since the Pollina study examines business and economic factors over which state governments have control, the top 10 ranking is really a critique of each state?s elected leaders and a ranking of the most enlightened political leaders in terms of creating pro-business environments and their efforts to keep existing jobs while attracting new employers.

To be ranked in the top 10 two years in a row is good news for Utah and a compliment to our elected leaders. We commend them for working to remove road blocks to economic growth and helping to make Utah one of the most favorable business destinations in the nation. According to Pollina, Utah ranked very high for labor, taxes and other factors, but did not fare as well regarding incentives and economic development agency factors. Only Wyoming and South Dakota rank higher than Utah in the West.

The report also emphasizes that outsourcing is a significant problem nationally. Pollina says manufacturing, professional, scientific, technical service and corporate management jobs are leaving the U.S. at a rate much faster than the nation?s ability to replace them. Utah experienced outsourcing pain last week with La-Z-Boy Inc.?s announced exodus from its Tremonton plant for Mexico, a move that will displace some 630 Utah workers.

Still, Utah?s economy is a bright spot within a gloomy economic picture. Utah?s government and civic leaders understand the national and especially the international competition and are working hard to not only attract new businesses to the state but also help existing businesses to sell their goods and services globally. According to the Salt Lake Chamber of Commerce, Utah merchandise exports reached $7.2 billion last year, the highest level ever recorded. Exports included gold, computers and electronics, air bags, minerals and chemicals.

What?s more, Utah?s economy continues to create jobs at a pace that far exceeds the national average. Year-over job growth stands at 2.3 percent?more than three times the national job growth rate of 0.6 percent. Utah boasts the third highest rate of job growth in the most recent state-by-state comparisons. Regarding unemployment, Utah?s rate of three percent is 180 basis points lower than the U.S. unemployment rate of 4.8 percent.

Utah?s dynamic economy is, indeed, an economic oasis and we look to our elected officials to do all that they can to help keep the momentum going. Let?s move up the Pollina Top 10 list in 2009!

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In The News

Economic Development Headlines from the Past Week

Ground broken for 207,000 square foot mixed-use project in Lehi

- Cross-Creek Pointe, an approximately 207,000 square foot mixed-use retail, office and restaurant project, has broken ground in Lehi.  (SL Enterprise)

Nearly $1 million in upgrades expected to boost Bees revenue

- The Larry H. Miller Sports and Entertainment Group have made nearly $1 million in upgrades to Franklin Covey Field in preparation for the opening of the 2008 Bees Baseball season. (SL Enterprise)

Ground broken for 40,000 square foot condominium office project in Midvale

- Creek Road Place, a new four-story Class A office building, has broken ground in the Fort Union area, offering office condominiums for sale or lease in a non-residential setting. (SL Enterprise) 

Rising water levels expected to lure visitors back to drought-impacted Lake Powell

- Water levels at Lake Powell are expected to rise 50 feet this season, opening up previously closed shortcuts and drawing more visitors to the lake this summer. (SL Enterprise)

Panel maps unified Davis future

- So leaders in the county, who were elected to be the artists for this canvas, have created the Davis Economic Advisory Council to help Davis County, the county's 15 cities, Hill Air Force Base, the Davis Chamber of Commerce and the Davis Area Convention and Visitors Bureau create a unified vision for how the masterpiece of Davis County will look in 30 years. (Morning News)

But officials say local economy has bucked national trends

- Despite the dollar falling this week against the euro and U.S. Federal Reserve Chairman Ben Bernanke warning Congress the American economy could slip into a recession, the real-estate market in Park City is still strong. (Park Record)

Holding pattern: Retailers are in limbo as downtown undergoes redevelopment

- When downtown redevelopment began in recent years, the Crossroads and ZCMI Center malls were razed for the current construction of City Creek Center, and new owners bought Trolley Square and began renovations. (Morning News)

Business report puts Utah in U.S. Top 10

- Utah was ranked No. 9 in the Pollina Corporate "Top 10 Pro-Business States" report Wednesday, the same day La-Z-Boy Inc. announced it was closing the Tremonton plant and heading to Mexico after 30 years of service.
(Standard Examiner)

Redevelopment plan offers variety

- The future vision for the current St. George Airport property reflects a mixed-use development plan, one that could include various types of housing, a town center with shops and a potential amphitheater park. (The Spectrum)

Why support Brian Head plan?

- A Community Development Project Area has been created by Brian Head Town to improve its appearance and allure as a resort community. (The Spectrum)

La-Z-Boy workers face new job search

- Ricky Collom has worked nearly 20 years in shipping operations at La-Z-Boy's plant in Tremonton, but he'll soon be looking for a new job ? along with the plant's 630 other employees. (Morning News here and here) (Standard Examiner) (SL Tribune here and here)

Investment in future takes seed in northern Utah

- Like a seed, one good idea can blossom into a multimillion dollar corporation if nourished, and a diverse group of government officials, business leaders and entrepreneurs from three northern Utah counties are pouring on the fertilizer. (SL Tribune) (Morning News)

Mexican influx may be good for U.S.

- However, neither nation truly realizes the economic value of roughly half a million people who cross the border each year, said Jeffrey Jones, undersecretary of agriculture and agribusiness for Mexico's Ministry of Agriculture. (Morning News)

Utahns leaving college for jobs

- Utah higher education officials sometimes joke they compete with pickup trucks. Too many college-age adults, they say, forgo school for fast money swinging hammers in Utah's still healthy economy. (SL Tribune)

Curtain goes up on Sandy project

-  By 2011, developers are hoping to complete the first phase of the Proscenium, a 12-acre mixed-use development located at about 10000 South in Sandy. (Morning News) (SL Tribune)

Utah's high-tech sector adding jobs by thousands

-  Utah's high-tech sector has been adding thousands of jobs in recent years, according to national and state data. (Morning News) (SL Tribune)

Utah scrambling to meet need for technical workers

-  Northern Utah's skilled technical work force is on the verge of critical shortages, according to a white paper released Monday by the Weber Economic Development Corp. and the Ogden-Weber Applied Technology College. (Morning News) (Standard Examiner)

CALENDAR


April 14-16: SME (Salt Lake City)
April 16: Executive Committee (EDCUtah)
April 23: Northern Utah Business and Economic Summit, Davis Conference Center. Click here for more information.

May 4-7: CoreNet (San Diego)
May 14: Board Meeting

May 18-21: ICSC (Las Vegas)
May 18-22: SAMPE (Long Beach)
June 4: Golf Tournament (Wasatch Mountain)
June 9-12: AUVSI (San Diego)
June 17-20: BIO (San Diego)
June 18: Executive Committee (EDCUtah)
June 25: Quarterly Update (location TBD)
Aug. 6: OIA Thought Leader
Sept. 13-17: IAMC (Oklahoma)
Sept. 25: What's Goin' Down Up North - Northern Utah Economic Summit Thursday, September 25, 9 a.m. - 3 p.m. Utah State University Innovation Campus, North Logan. Registration form.
Oct. 9-12: CoreNet (Orlando)
Oct. 22: Quarterly Update
Dec. 17: Holiday Open House (EDCUtah)