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FEATURE

Spotlight on Utah Manufacturing

By definition Utah is not considered a manufacturing state, but the manufacturing sector is, nonetheless, the backbone of the state’s economy, generating 11 percent ($9.8 billion) of the gross domestic product and paying the second highest average annual wage, behind only mining.

Manufacturing jobs pay 127 percent of the average Utah wage and employ approximately 125,000 workers, or 10.6 percent of all state employment, according to Thomas E. Bingham, president of the Utah Manufacturers Association (UMA), one of the state’s oldest trade associations. On top of that, Bingham says manufacturing is one of the few sectors that bring new money into the state. “Out of the $6 billion in total goods exported, $5.3 billion were manufactured goods, or 87 percent of all exports,” he says.

Utah Manufacturing at a Glance

Manufacturing Firms	3,974
Average Employment	125,088
Payroll	$1,363,486,650
Monthly Wage	$3,633

Utah’s manufacturing sector is expected to continue its steady growth path, thanks to the state’s favorable business conditions and positive economic environment. “Hat’s off to our legislature over the past decades, for not putting undue restrictions on business and industry,” says Bingham, who also speaks fondly of Governor Jon Huntsman’s favorable business and economic policies.

What makes Utah such a great place for manufacturing? Bingham says there are four key factors:

1. Lower labor costs
2. Lower energy costs
3. Other favorable human resource costs, like cheaper worker’s compensation rates
4. A large, educated workforce with a strong work ethic

It’s true, Utah enjoys some of the lowest energy costs in the country, and also low labor costs, but the strong work ethic was a factor when La-Z-Boy, Malt-O-Meal, and West Liberty Foods all selected Box Elder County—“They liked the work ethic of the rural workforce,” says Bingham. Box Elder, Cache and Weber Counties are clearly hot beds for manufacturing in the northern end of the state. In Southern Utah, Iron and Washington Counties are experiencing an increase in manufacturing. “A lot of companies are relocating from California to Southern Utah, because they can still service their California markets and still enjoy Utah’s lower costs and better quality of life, Bingham says.

Of its manufacturing industries, Bingham says the state is heavy in aerospace and stronger than one might think in automotive manufacturing, with Autoliv Inc.’s operations in Box Elder and Weber Counties, and other automotive-related manufacturers scattered about. The state is also strong in medical device manufacturing, and the self-proclaimed headquarters for nutritional foods manufacturing, especially in Utah County. The largest concentration of manufacturers operate in Salt Lake, Utah, Weber, Davis, Cache and Box Elder counties.

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IN THE NEWS

Economic Development Headlines from the Past Week

Best Places to Live--Guess Who's Number 1

- Money Magazine says employment is an important factor when it comes to choosing Money Magazine's "Best Places to Live," and ranks the top 25 counties with the most job growth over the last six years. Guess who's number one: Tooele County!

"Since its inception in 1850, Tooele had always been a mining area - but now scientific and technical fields are blossoming too. The county - one of the first in Utah - is near full employment and wages are growing at an above-average rate. Helping out is a plan by Pittsburgh-based Allegheny Technologies Inc. to build a $325 million metals plant that will employ 150 people at an average salary of $45,000," says Money Magazine.

On-Site Hydraulic Hose Replacement Franchise to Enter Utah Market

- Pirtek, a global chain of nearly 350 on-site hydraulic hose replacement franchises, has targeted Salt Lake City as a market it needs to break into. (SL Enterprise)

Eco-Friendly Snow Tire Firm Awards Utah Distributorship

- Green Diamond Tire-North America, a manufacturer of environmentally friendly, year-round snow tires has awarded exclusive franchise dealer rights in Utah to Fred Mohebbi, owner of European Auto. (SL Enterprise)

Pittsburgh Bedding Products Manufacturer Opens SLC Plant

- American Textile Co., a leading supplier of performance-based bedding products, has opened a 55,000 square foot production and shipping facility in Salt Lake City, (SL Enterprise)

State Program Encourages Employers to Offer Programs, Incentives to Keep Workers Healthy

-  The Utah Council for Worksite Health Promotion, a program of the Utah Department of Health, is encouraging employers throughout the state to offer programs and incentives that will help keep employees healthy. (SL Enterprise)

A 'Tiered' Downtown Provo?

- Businesses closer to the center of downtown Provo would pay more into the downtown business alliance than those farther away under a new proposal to fund the business improvement district. (Morning News)

Boeing Adding to Economy

- When Boeing makes an announcement that several hundred aircraft have been ordered, especially by the government, it can have a big local impact. Such is the case with a recent announcement that 242 wing sets have been ordered for the A-10 fleet. (Clipper Today)

Sandy Shrugs as its Soccer Academy Bid Riles SLC's Rocky

- No apologies here. Despite Salt Lake City Mayor Rocky Anderson's chagrin that Real Salt Lake's long-promised soccer academy now could go to the suburbs, Sandy officials were unsympathetic Tuesday to the capital's plight. (SL Tribune here and here)

Council Hopes Tower Will 'Spark New Life On Main'

- Plans for Salt Lake City's newest downtown office tower are moving forward — even after a major developer pulled out of the project amid a feud with Mayor Rocky Anderson. (Morning News) (SL Tribune)

Alliance Seeks New Blood to Revitalize Downtown

- While major national retail companies continue to target the north Main Street area for future expansion, Tooele City leaders still hold tight to a plan to redevelop and improve Tooele City's historic Main Street area from Utah Avenue to 100 South. (Tooele Transcript Bulletin)

Draper City Drawing Benefits From IKEA

- Draper city officials are working to capitalize on financial benefits the new IKEA outlet can bring to the city now that the Swedish Furniture giant is up and running. (KCPW here and here)

GOED Names Ragula Bhaskar, Ph.D., as it's New Chairman

- The GOED charter is based on Governor Jon Huntsman's commitment to economic development statewide. The mandate for this office is to provide rich business resources for the creation, growth and recruitment of companies to Utah and to increase tourism and film production in the state. (India ENews)

Utah Announces New Science Adviser

- The Governor's Office of Economic Development has announced the appointment of Tamara Goetz as the state's new science adviser. (Morning News)

The Key to Success in China

- Despite the hubbub over the price tag of the trip, Utah lawmakers have been intent on visiting China to look into the markets there and develop a working relationship with the nation. (Morning News) 

Two Major Reports Rank Utah Among Top Places to do Business

- Utah received back-to-back accolades from two of the top business media organizations Wednesday. Forbes magazine ranked Utah as the No. 2 Best State for Business, up from No. 4 last year. At the same time, Utah has been rated the third Best State by CNBC. (Utah Business Magazine)

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