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July 21, 2010
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  Economic Review  
Jeff Edwards President's Message
Staffing Changes at EDCUtah

It is with mixed emotions that I officially announce the departure of two of our talented business development managers this week. Erick Allen has accepted a position with Layton Construction and Reina Gould has chosen to start the MBA program at Brigham Young University. While I am excited for the new opportunities that await Erick and Reina, I must say they will be missed here at EDCUtah. They have led important business development projects for us, including Duncan Aviation, eBay, Royal Bank of Scotland, and Decho/Mozy, to name a few. Their contributions to our organization have been significant, especially during these past few years of record project activity. Erick and Reina have both diligently served our clients and investors and their influence will be felt within EDCUtah for years to come.

As we say farewell to Erick and Reina, we say hello to two new members of the EDCUtah staff: Kimberly Frost and Tom Quitasol. Both Kim and Tom will start this month and we look forward to introducing them to you soon.

Also, if you have been following the news you have probably noticed two very important rankings from last week. On July 14, Utah was ranked the 8th best for business. And on July 15, the University of Utah Health Care System was ranked among the best in the country. These rankings, like those you will read about in this week's feature story, are more evidence of Utah's economic strength.

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

Jeff Edwards
President and CEO

 
Feature Story
Utah Needs 168,863 New Jobs Over the Next Decade

Economists predict some 103,000 individuals will enter the Utah workforce over the next decade, and Utah will need an economic revival robust enough to create 168,863 new jobs to meet the demands of the new workforce, plus restore the jobs lost during the current recession.

On a larger scale, the nation as a whole will need to create 20 million jobs over the next decade - restoring the 7 million jobs lost to the current recession, and creating another 13 million new jobs.

The job growth predictions come from "Enterprising States," a study released in May at a bipartisan summit of governors, state chamber executives, and business leaders at the U.S. Chamber of Commerce headquarters. The summit and study are part of the Chamber's American Free Enterprise. Dream Big. campaign. The study was prepared by the Praxis Group for the Chamber and its public policy think tank, the National Chamber Foundation. Through the study, the Chamber is highlighting bipartisan state and local policies - including those in Utah - that have proven to help create jobs that will be pivotal to a national economic recovery.

Driving Job Creation
The study's researchers found that "states are much more active than the federal government on the job creation and economic development front." Consequently, Enterprising States highlights six policy areas that drive job creation: innovation, productivity through investments in workforce development and training, science and technology, infrastructure, exporting, and competitive tax rates.

Utah was recognized as "strong across the board in both economic policies - and economic results." Furthermore, the study points out that Utah led the nation in middle class job growth from 2002 – 2009. Middle class job growth is an area of critical need, with the teen unemployment rate now over 24 percent nationally, compared to fewer than 15 percent in 2007.

Within the six policy areas that drive job creation, Utah ranks in the top 10 states in each area:

Utah's RankPolicy Area
3rdExports and International Trade
4thInfrastructure
8thTaxes and Regulation
8thEntrepreneurship and Innovation
10thWorkforce Development and Training

Among its strengths, "Utah's commitment to connecting businesses to international markets has placed it among the top states in the country when it comes to export growth," the study's writers say. "Exports have been an area of strength and continued growth for Utah, even during the recent recession. With over 2,400 businesses engaged in international trade, the state has been among a handful of states leading the way in export growth. Existing export strength in primary metals such as gold has been coupled with a focus on new and emerging opportunities in the chemical, fabricated metals, and computer and electronics industries to build a robust and healthy export sector."

Utah Shines
EDCUtah President & CEO Jeff Edwards says Enterprising States reaffirms what so many people already know about Utah: "The combination of responsible state and local governments; low taxes; low costs; entrepreneurship; a young, highly educated workforce; and unparalleled quality of life make the state an exceptional place to do business. In study after study, ranking after ranking, Utah shines."

The Utah section of Enterprising States highlights how key activities in the Beehive State are playing a pivotal role in fostering the conditions for job growth, such as the Utah Science Technology and Research initiative (USTAR); establishing networking opportunities through the International Trade Hub; the implementation of a system of licensee grants through its Centers of Excellence Program; the Utah Educational Savings Plan (UESP); and tax credits for businesses conducting research.

According to Enterprising States, U.S. employment has been shifting, not to mega corporations, but to individuals and smaller units. Between 1980 and 2000, the number of self-employed individuals expanded tenfold to comprise 16 percent of the workforce.

"This enterprising spirit reflects a broad, long-term American trend," writes the study's co-author, Joel Kotkin. "America is a vast country made up of hundreds of diverse economies. The flexibility to match local strengths with global needs will be paramount. It is local knowledge and local energy - among local officials and individual businesspeople and entrepreneurs - that will make the difference. Washington can focus on a few overriding national priorities, but most of the new ideas, new companies, and new jobs will come from local initiative."

Overarching Message
The overarching message of Enterprising States is that "the 50 'little Republics' matter. State policies matter. Governors, state legislators, and local officials matter. Although the federal government has been driving stabilization policy during the recent recession, it is the states [and territories] that will lead a crucial new growth strategy in the next decade. And while the federal government will affect the situation on the ground in broad strokes and from a distance, governors and state and local governments will drive the types of new, experimental, flexible job-growth strategies that can match the speed of the global economy and achieve this growth imperative."

Click here to read the Enterprising States study online. Click here to download the pdf.

Calendar

July 22-25
Outdoor Retailer Summer Market (Salt Lake City)

Aug. 2
OIA Thought Leader Symposium

Aug. 12-13
Utah Rural Summit (SUU, Cedar City)

Aug 24-27
AUVSI's Unmanned Systems 2010 (Denver, CO)

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

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

Sept. 14-17
Utah League of Cities and Towns Annual Convention (Salt Lake City)

Sep 19-21
CorNet Global Summit (Phoenix, AZ)

Sep 26-29
IEDC 2010 (Columbus, OH)

Oct 2-6
IAMC Professional Forum (Hot Springs, VA)

Oct 11-14
SAMPE Fall Technical Conference (Salt Lake City, UT)

Oct 12-13
SME Tooling for Composites Conference 2010 (Salt Lake City, UT) (Co-located with the SAMPE conference)

Oct 12-14
Solar Power International 10 (Los Angeles, CA)

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

Dec 15
EDCUtah Holiday Open House (Salt Lake City)

Jan. 12, 2011
"What's Up Down South" Washington County Economic Summit (St. George)

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The EDCUtah Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUtah partners and selected other government and civic organizations interested in Utah's economic development.

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In the News

Cache, Utah, Davis counties earn recognition for job growth
Three Utah counties are in the top 20 nationally in a CNN Money.com list of the counties with the highest percentage of job growth from 2000 through 2009.
(Deseret News) (Salt Lake Tribune) (Davis County Clipper)

Utah 8th best for business, according to CNBC list
CNBC has ranked Utah as the eighth-best state for business in America.
(Deseret News) (KSL)

University of Utah health system ranked high
University of Utah Health Care System has been ranked among the country's top health providers.
(CNBC)

Space Environment Technologies opens corporate office in Logan, Utah
Space Environment Technologies (SET), with affiliates in seven states including Arizona, California, Colorado, Massachusetts, New Mexico and Texas, has now opened a new corporate presence in Logan, Utah. SET, a privately-held company, conducts space science research, provides space weather operations and develops space systems standards.
(Utah Statesman)

Latino-owned businesses booming in Utah
Do you notice more grocery stores owned by Hispanics that cater to Hispanics? Or car dealerships? Or restaurants?
(Deseret News)

Contest announced for Utah energy innovators
Grow Utah Ventures is sponsoring a "Concept to Company" contest to reward energy innovators.
(Deseret News)

Dew Tour finale headed to Utah
Steve Fisher loved his first visit to Snowbasin Ski Resort during last year's Dew Tour competition.
(Deseret News)

What happens when you make a flame thrower, pen and tuning fork 10,000 times smaller than a human hair?
In the 1989 film Honey I Shrunk the Kids, a nutty scientist invents a machine that miniaturizes objects. Fast forward 20 years and scientists at the University of Utah are using miniaturized tools in a very different way. While they have avoided shrinking their children in the process, the scientists' effort may help grow the Utah economy.
(Utah Pulse)

Utah film jobs doubled last year; industry calls for more incentives
The film industry is one of Utah's economic bright lights, creating jobs, bringing a kind of star status to the state and a $5-to-$1 return from a tax-funded incentive program to bring projects here.
(Deseret News) (Daily Herald)

Utah legislators praise NASA authorization bill's progress
When the Senate Commerce Committee passed the NASA authorization bill on Thursday, it gave a glimmer of hope to the future of Utah's solid rocket motor industry.
(Deseret News) (Salt Lake Tribune)

Utah jobs snapshot shows improvement in June
When the Utah Division of Corporations recently posted a job opening for a person to answer phones for about $10.50 per hour, more than 130 people applied for the job.
(Deseret News) (Salt Lake Tribune)

Hotel industry is heating up exec says during groundbreaking
"Occupancy is up significantly," showing a "dramatic" turnaround in the hotel industry.
(Davis County Clipper)

Centerville almost done with CDA
City officials have nearly everyone they need for the community development agreement (CDA) that will help their planned 14-screen megaplex and mixed-use process get a jump on life.
(Davis County Clipper)

Davis County Clipper - ATK contract continues on "cutting edge" of industry
A mammoth advanced fiber placement machine housed in the giant ATK complex, here, will assist in production of the Air Force's F-35 Lightning II Joint Strike Fighter.
(Davis County Clipper)

Picture looks rosier for Utah home construction industry
There will be 50 percent more new homes in Utah in 2010 compared to 2009, and the upward trend is likely to continue, according to a new report from the Bureau of Economic and Business Research at the University of Utah.
(Deseret News)

West Bountiful, Woods Cross envision research park highlighting project along Legacy Parkway
A pair of Davis County cities want to get in on the Legacy Parkway development boom but feel their joint project has something different to offer.
(Deseret News) (KSL)

Invention Dimension I: Why is the U. tops in start-ups?
When it comes to creating new start ups from inventions, the University of Utah is tops. It's tied with MIT for first in the nation in creating new startup companies from research. College officials from around the country are flocking here to learn the U's secret.
(KUER)

Economists: Utah's rising prices a good sign
Prices are going up in Utah, but that's a good thing. Economists say it shows our economy is healthy because there's a new fear out there.
(KSL)

State economist: job losses have stopped
The leisure and hospitality industries are projected to have had some of the biggest job gains in the month of June, but Utah Department of Workforce Services economist Mark Knold thinks the numbers are exaggerated.
(Park Record)

Metro Logics leases two large warehouse spaces
Metro Logics, a third party logistics firm, has completed arrangements with LNR to lease 427,000 square feet of warehouse space in two buildings, Bangerter Crossing Buildings A and B at 3845 and 3907 W. Ninigret Drive in Salt Lake City.
(Deseret News)

Peruvian delegation looks to build trade ties with Utah
As federal and state officials set out to shepherd international trade efforts from headache to the next new global economic hope, Utah is putting the high-peaked economy of Peru in its sights.
(Deseret News)

Brick Oven bringing pizza, jobs to Layton
A pizza restaurant with deep Utah Valley roots is expanding into Davis County, but not before putting a new $1 million face on a highly visible vacated restaurant building in Layton.
(Standard-Examiner)

Payson working to be more business-friendly
Payson City ate a six-digit budget deficit last year, figures to lose another $120,000 in sales tax this year, and has a Church of Jesus Christ of Latter-day Saints temple coming in sometime after.
(Daily Herald)