President's Message EDCUtah's Fiscal Year 2009-2010 A Success June 30 marked the end of FY 2010. I am pleased to report that we had another great year of business recruitment and retention, thanks to our excellent public/private partnerships and our relationship with the Governor's Office of Economic Development (GOED). Clearly, we would not have been so successful without the support of the business community and our civic leaders. I also appreciate the hard work of our staff, and especially our bright and ambitious business development team, which is led by Todd Brightwell, VP of Business Development. During FY 2010 we secured over 4,500 jobs and helped create almost $350 million in capital investment in the state. Here's a breakdown of the numbers: Investment: $348,880,000 New Jobs: 3,788 Retained Jobs: 897 Headquarters: 4 Real Estate: 1,345,000 square feet Looking forward, in FY 2010-2011 I anticipate further growth and success as our business development team closes in on several active projects and continue to add numerous new projects to the pipeline. 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

Feature Story Utah's Financial Services Sector Recovering Slowly Like most other industry sectors, Utah's financial services industry was hit hard by the recession. Six financial institutions are now extinct -- one of them had a 100-year history in the state -- and employment in the sector has declined steadily through February 2010. Financial services employment lost 800 jobs over the past 12 months, largely due to the lingering effects of the credit crunch upon the industry. Consequently, a significant rebound isn't expected until the housing and mortgage markets once again show life, and economists anticipate those markets to be the last sectors of the state's economy to find their way out of the economic doldrums. That's the bad news. Jobs on the Rise Now the good news: Jobs in the financial services sector are slowly rising. One hundred seventy jobs have been added since February, according to the most current data from the Utah Department of Workforce Services (DWS). What's more, Utah continues to be a prime location for financial services businesses. In 2009, GE Financial announced it would locate in Utah and add 25 jobs to the sector. Since then, Fidelity Investments has expanded its workforce in Salt Lake City and moved into a new building near the Gateway Center in downtown Salt Lake City. Last March, Goldman Sachs announced its plans to nearly double its Utah workforce, bringing its total positions to more than 1,150 by the end of 2010. The company will occupy seven floors in the new 222 Main office tower in downtown Salt Lake City. And in June, RBS Securities Inc. (RBS) announced it had selected Utah as the location to expand its IT support and operations capabilities. RBS's GBM Americas franchise plans to expand in Utah with the addition of 260 new full-time positions, to be created over the next 15 years, and spend $6.27 million on commercial office space by the end of this year, according to the Governor's Office of Economic Development (GOED). GPM serves as a banking partner to major corporations, financial institutions, and public sector clients globally, providing a wide range of debt markets, treasury and investor products, asset and portfolio management, and transaction banking services. Economic Clusters GOED has targeted financial services as one of the state's key economic clusters that show the opportunity for significant growth. Economic clusters are groups of related businesses and organizations within industry sectors whose collective excellence and collaboration provide a sustainable competitive advantage for the state. The continued growth of RBS fits this targeted industry. "The successful recruitment of GE Financial and RBS Securities, and the expansion of Fidelity Investments and Goldman Sachs in Utah serve to strengthen our already strong position in the financial services sector yet again," says EDCUtah President & CEO Jeff Edwards. "In our economic development efforts, it is important to take advantage of our expertise in the cluster areas and look for opportunities to add to those clusters by recruiting companies in the same space." According to the most recent data from the U.S. Bureau of Economic Analysis, Utah's financial services sector, which includes the banking, finance, insurance, real estate, rental and leasing industries, continues to be the top producer of gross domestic product (GDP), accounting for 19.8 percent. Nationally, financial services accounted for 20.1 percent of GDP, so the state is in line with national trends. DWS economists say other industry sectors in Utah create more jobs, such as manufacturing, but financial services leads in GDP. Current Employment Numbers Utah's financial services industry currently employs some 68,268 workers -- down significantly from the 75,263 workers employed in that sector in 2007. The latest DWS data lists 5,524 financial services establishments in Utah, with an annual payroll of more than $2.8 billion. Some of the major national credit and financial companies with business operations in Utah include: American Express Providian Financial Corporation Morgan Stanley/Discover Card Fidelity Investments JP Morgan Chase The top 15 employers within Utah's financial services industry, ranked according to DWS employment data, are: Rank Company Employees (range) 1. Discover Products (Discover Card) 2,000 - 3,000 2. Fidelity Brokerage Services 1,000 - 2,000 3. Wells Fargo 1,000 - 2,000 4. Zions First National Bank 1,000 - 2,000 5. America First Credit Union 500 - 999 6. American Express 500 - 999 7. Amex Card Services Company 500 - 999 8. Extend Health Inc. 500 - 999 9. Health Benefits America 500 - 999 10. Regence Blue Cross Blue Shield of Utah 500 - 999 11. Select Portfolio Servicing 500 - 999 12. SelectHealth 500 - 999 13. Zions Bank Management Services 500 - 999 14. Coventry Management Services 250 - 499 15. DFS Services 250 - 499 EDCUtah continues to work with a variety of financial services companies interested in Utah. Edwards notes that Utah's expertise in the financial services sector, combined with a highly educated population and large workforce, place the state high on the radar of companies looking to either relocate or expand their operations.

Calendar

July 21
OIA Thought Leader Symposium

July 22-25
Outdoor Retailer Summer Market

Aug. 11-13
Utah Rural Summit

Aug. 28
2nd Annual Ladies Curiosity Golf Challenge at Thanksgiving Point

Sept. 10-11
Mountain West Biomedical Engineering Conference (Park City)

Oct. 14-15
Nano Utah 2010 (Salt Lake City)

Jan. 12, 2011
Washington County Economic Summit

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Janicki Industries to be anchor tenant at East Gate development in Layton
Janicki Industries, a Washington-based company that was courted by local and state officials, has signed a lease agreement to be the anchor tenant at the new East Gate development.
(Deseret News) (Utah Business Magazine -- registration required) (CompositesWorld) (Davis County Clipper)

ATK unveils machine that builds fighter jet parts
The first of three new high-tech machines that will precisely apply layers of fiber-composite material in building parts of military fighter jets -- leading to 120 new jobs -- was formally unveiled Thursday by Alliant Techsystems.
(Salt Lake Tribune) (Deseret News) (Fox 13) (KSL)

South Jordan lauded by Money Magazine as 18th best city in America
The city of South Jordan has been named the 18th best place to live in America, according to "Money Magazine's 2010 Best Places to Live" rankings. Other Utah cities making the Money Magazine list were Orem, 45th; West Jordan, 61st; and St. George, 80th.
(Money Magazine) (Deseret News)

Money magazine says Utah is tops for job hunters
Three counties within Utah were found to be the best areas for finding a job, according to a recent study conducted by Money Magazine.
(Fox 13)

Iron County company researching 'cool' geothermal power
An Iron County company is getting support from the state in its study of low-temperature geothermal energy.
(Deseret News)

SelectHealth aims to aid businesses
SelectHealth, a subsidiary of Intermountain Healthcare, went live on Thursday with an online tool for small businesses to determine how much they can benefit under new federal health care laws.
(Deseret News)

SirsiDynix expects to add 90 jobs in Provo
A Provo company whose technology helps libraries around the world to manage their collections is consolidating operations at its Utah County headquarters, where it also has opened a 24-hour customer-support center.
(Salt Lake Tribune)

YMCA convention to dominate downtown this weekend
More than 3,000 staff members and community volunteers from YMCAs across the nation will wrap up a four-day convention on Sunday, a gathering expected to generate nearly $3 million for Salt Lake County's economy.
(Salt Lake Tribune)

Recently approved zone could help downtown development
A zone recently approved by the city council is meant to aid redevelopment, especially in downtown.
(Standard-Examiner)

Room for more Ogden hotels?
A pair of experts have differing opinions as to whether developers would face financial challenges in undertaking the construction of two proposed downtown hotels.
(Standard-Examiner)

Economic study identifies city's future and development needs
North Main Street is a concern to many members of the city council, but it is an area that may take some time to rehabilitate.
(Standard-Examiner)

Once nearly lifeless, Park City's construction industry posts a solid June
Park City's construction industry, nearly lifeless in the early part of 2010, posted a standout month in June, an indication that the bellwether sector could be poised for a stronger second half of the year.
(Park Record)

Cache Valley construction activity wanes in June
Construction permit activity was less than stellar in June, traditionally one of the busiest months of the year.
(Herald Journal)

Pro-diversity group works to make Utah more appealing to out-of-state professionals
Even as the meaning of diversity in the workplace is evolving, a coalition of the Salt Lake Valley's biggest companies is working to help make Utah employers more attractive to outsiders.
(Salt Lake Tribune)

Can Utopia's new business plan in Utah make a difference?
Plagued by continuing losses and facing an uncertain future, the Utopia fiber-optic system is out to reinvent itself.
(Salt Lake Tribune)

Becker's quiet goal: Making SLC the greenest city
The way Salt Lake City Mayor Ralph Becker sees it, Mormon pioneers had it right. Motivated by a healthy distrust of the outside world and packing little more than pluck, they settled the Salt Lake Valley with an eye toward self-sufficiency.
(Salt Lake Tribune)

Pro-quality ad campaigns flowing out of BYU's AdLab
Since 2003 the BYU AdLab, tucked away in the Brimhall Building on the south end of BYU's campus, has cranked out hundreds of campaigns and cream-of-the-crop advertisers, thanks to hands-on experience with real clients and genuine assignments.
(Deseret News)

No takers yet for $10K Pl. Grove restaurant bonus
Months after offering a $10,000 bonus for a sit-down restaurant, the economy is trumping incentives in Pleasant Grove. But officials say to be patient.
(Daily Herald)

ATK: Largest solid rocket motor ever is prepared for launch
Alliant Techsystems is ready to fire up its newest rocket engine, the latest in a series of boosters built for space travel.
(Standard-Examiner)

C-A-L Ranch dist. center in Utah
The C-A-L Ranch Store is moving a distribution center from Idaho to Utah not far from the Salt Lake City International Airport.
(Deseret News)

Economists see positive signs in mortgage rate drop
Is Utah's housing market, battered by a tough economy, poised for a rebound? Favorable signs are emerging, including interest rates not seen in generations.
(KSL)

Company Secures $30 Million for Proposed Nuclear Plant
Utah-based nuclear power plant developer Blue Castle Holdings has signed a $30 million financing agreement to further its plans to build a plant in Emery County. KCPW's Whittney Evans reports.
(KcPW)

Utah home-building industry begins recovery, says University of Utah Eccles School of Business report
Economists and researchers at the Bureau of Economic and Business Research at the University of Utah's Eccles School of Business report that the number of permits issued for new single-family homes in Utah turned positive in July 2009—following 39 consecutive months of decline—and has recorded steady increases for the past 10 months.
(Utah Pulse)

Salt Lake County has highest office vacancy rate in 6 years
Vacant office space in Salt Lake County increased to a six-year high in this year's second quarter, according to the Mid-Year Market Report from CB Richard Ellis.
(Deseret News)

Construction begins on downtown Salt Lake City Harmons grocery store at City Creek
A backhoe sporting a golden bucket hoisted the first scoopful of dirt Thursday morning, marking the construction of a downtown grocery store — the first there in a quarter of a century.
(Deseret News) (Fox 13) (KCPW) (KSL) (Salt Lake Tribune)

Utah company to export iron ore to China from mine 20 miles west of Cedar City
A Utah mining company will sell iron ore to a steel maker in China, boosting Cedar City's fortunes.
(Fox 13)

Peruvians looking to do business with Utahns
Utah companies interested in doing business in the Piura region of Peru can meet July 20 with a delegation from the South American country's most affluent region at the Salt Lake Chamber offices, 175 E. 400 South.
(Salt Lake Tribune)

Redeveloped Murray downtown could rise near rail stations
Spurred on by the growth of light-rail and commuter-rail networks along the Wasatch Front, mid-sized Murray is joining other cities eager for transit-oriented developments.
(Salt Lake Tribune)

Utah trade officials praise state's export growth
While President Obama pushes to grow the U.S. economy by doubling American exports over the next five years, trade officials in Utah say the state has already accomplished that goal over the previous five years.
(KCPW)

Provo OKs use of future tax breaks for plaza
The Provo Municipal Council unanimously voiced the next step of approval for a major redevelopment in downtown Provo.
(Daily Herald)