Last week Semi-Service Inc. held a ribbon cutting to celebrate the company's move to 4285 West 1385 South in Salt Lake City. Semi-Service's expansion of operations represents a large capital investment in infrastructure and the addition of 50 people to its current employee base of 100. We are thrilled for this great Utah business. Helping existing businesses grow is an integral part of our economic development efforts and it is exciting to see projects such as this come to successful completion.

Would you like to know more about EDCUtah's retention and recruitment projects? Plan now to attend our Quarterly Investor Update on Tuesday, June 29, from 4-6 p.m. This Quarterly Investor Update will be held at the Doty Education Center, which is part of the Intermountain Medical Center in Murray City. Attending the Quarterly Investor Updates is one of the best ways you can stay involved in economic development and learn about the projects in our pipeline. The updates are also excellent networking events. We hope you will mark your calendars now and join us on June 29!

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'd like to see in the Economic Review, please contact us by clicking the "Comments" link on the bottom of this page. Enjoy!

Jeff Edwards
President and CEO

The massive, 24-mile rebuild of Interstate 15 now underway in Utah County is the single largest road construction project in the state's history. It's also an engine of economic development that is churning out jobs.

According to a study by the Federal Highway Administration (FHWA), every $1 billion spent on transportation projects creates 42,100 jobs. Based upon the FHWA study, the $1.725 billion I-15 rebuild in Utah County could create or sustain approximately 72,622 jobs in the state, surmises Utah Department of Transportation (UDOT) Executive Director John Njord.

$4 Billion Under Contract
To extrapolate the FHWA's figures on a state-wide basis, with nearly $4 billion under contract today for projects from one end of the state to the other, UDOT's transportation infrastructure projects could influence the creation of as many as 168,400 jobs in Utah over the next two and a half years. Many of those jobs are or will be construction-related; however, many others will be created as construction dollars ripple through local and regional economies in the state. In fact, Njord says every dollar spent by UDOT for transportation projects has a multiplier effect of five to seven times.

For its part, the I-15 rebuild in Utah County is coming none too soon. A 2006 report published by TRIP, a Washington D.C.-based non-profit organization, designated the stretch of I-15 from American Fork to the University Parkway in Orem as the most congested route in the state, costing drivers as much as $1,275 annually in wasted time and fuel. While narrower lanes, reduced speeds and limited access in construction zones may exacerbate the congestion problem temporarily, when the project is completed in 2012 the improved traffic flow is expected to provide fuel to the fire of economic growth in Utah county as well as the entire state, says Njord.

Keep Traffic Flowing
Meanwhile, UDOT is working hard to lessen the construction impact as much as possible. "The need to keep traffic flowing and goods and services moving is something we take very seriously," Njord says. Utilizing narrower lanes and shoulders, UDOT will be able to keep all lanes open in both directions in Utah County during the construction period.

EDCUtah President & CEO Jeff Edwards says that in addition to direct job creation, transportation improvement projects affect the wider economy, including local or regional employment patterns, wage levels, business activity, tourism, housing, and even migration patterns. From a commercial perspective, transportation improvements can help business productivity (due to increased mobility, more direct routes, and less congestion); spur increases in property values; and encourage commercial development. Regarding the latter, Njord points to Bangerter Highway as an example of how commercial and industrial developments have exploded along the highway. Bangerter Highway is now one of the busiest highways in the state, with traffic volume projected to reach 100,000 cars per day in some sections. The construction of the highway, its massive car volume, and available land nearby has led to a variety of thriving commercial and industrial developments, including the Jordan Landing and The District.

Interchanges and Property Values
"Everywhere we decide to put a freeway or highway interchange, property values explode around the interchange," Njord notes.

The interrelationship between transportation infrastructure development and economic prosperity was highlighted in a Missouri study, which found that counties with 15 or more miles of four-lane highway or interstate highway had larger populations, higher average wages, larger household incomes, greater number of established businesses, greater real estate valuations, and higher gross sales tax receipts. While UDOT doesn't have any similar studies, Njord says such a study in Utah would probably generate comparable data.

Vehicle Travel
According to TRIP, between 1990 and 2004, vehicle travel in Utah grew at the fourth highest rate in the nation, increasing by 69 percent, from approximately 15 billion miles of travel to approximately 25 billion miles. Only Nevada, Florida and Colorado had a higher rate of vehicle travel growth during the same period. In order to keep up with the increased vehicle travel and associated population growth, UDOT continually collects traffic volume data and posts it on its web site. Increased traffic volume and projected commercial development along State Route 9 in Washington County has turned that road into a major blip on UDOT's radar. If all of the development that is platted along State Route 9 comes to fruition, UDOT is projecting 100,000 cars per day on the road between Hurricane and the I-15 interchange situated between Leeds and Washington City.

Njord says there are hundreds of large and small transportation projects scattered throughout the state. Some of the more significant projects include the Southern Parkway, a transportation project consisting of an interchange on I-15 in St. George and an associated 26-mile, four-lane divided highway that connects to SR 9 in Hurricane; the Mountain View Corridor, a freeway, transit and trail system in western Salt Lake and northwestern Utah counties that will service 13 municipalities in the project area; interchange enhancements where I-15 and belt route I-215 intersect near 70th south in Salt Lake County; lane expansion on I-15 from 72nd South to 90th South, also in Salt Lake County; and lane expansion in south Bountiful, Davis County.

Crossroads of the West
Edwards says Utah has excellent north-south and east-west transportation corridors. In fact, seven major long distance highway freight routes converge along various points on I-15 in Utah, affecting freight flow across North America. Other primary freight corridors in Utah include U.S. Highways 89, 40 and 6. The state's primary freight highways are a vital component of North America's food and agricultural products distribution network, and Utah highways have the highest percent of truck traffic in the nation.

"We are the crossroads of the west, and businesses are choosing to locate or expand in Utah because of the state's excellent transportation infrastructure and great routes to the west coast, Denver, Phoenix, Mexico, and Canada," he adds. "All of the construction activity UDOT is undertaking will enhance mobility across the state and help foster economic prosperity."