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FEATURE

Utah: an Outdoor Recreational Magnet

Utah’s outdoor recreation industry has grown from a few small businesses into a multibillion-dollar industrial powerhouse. The Outdoor Industry Foundation says active outdoor recreation contributes $5.8 billion annually to the state’s economy, supports 65,000 jobs, generates nearly $300 million in annual state tax revenues, produces nearly $4 billion annually in retail sales and services across the state, and accounts for almost five percent of the state’s Gross Domestic Product.

But just as important as the financial contribution is to the state, the buzz created by high-powered outdoor events has helped shape Utah as a magnet for outdoor recreation. Indeed, Utah has become a premier destination for outdoor recreation and the accolades keep piling up. In mid-August, Ogden hosted the XTERRA Mountain Championship, a regional triathlon event that pumped $2 to $3 million into the city’s economy. Ogden is the only city in the world to host two XTERRA competitions (in 2006 and 2007). Last week the website Inside Triathlon called Ogden outdoor recreation’s new Garden of Eden. “Organizers, athletes and racing enthusiasts alike raved about the regional championship's new digs, solidifying the race's place in the Beehive State,” the website said.

Tom Kiely, chief executive of Team Unlimited, the Hawaii-based company that owns the XTERRA competitions, told the Salt Lake Tribune it was "love" that persuaded him to choose Ogden for the XTERRA Mountain Championships and for the company's first XTERRA Winter World Championships at Snowbasin next March. “The natural assets, an enthusiastic cadre of volunteers supplied by GOAL [Greater Ogden Athletics Legacy] and a big community welcome make Ogden a perfect host city,” he told the Tribune. What’s more, the marathon will be captured in a half-hour segment that Team Unlimited will market to national television networks. Crews shot video of fly fishing, kayaking and the rides available at Ogden's new Solomon Center. The shots will make up approximately 40 percent of the segment, which Team Unlimited hopes will be shown next May.

In early August the Outdoor Retailer Summer Market held the largest convention ever hosted in Salt Lake City. The show added over $18 million in direct economic impact to the state, with over 21,000 manufacturers, retailers and suppliers converging on the Salt Palace Convention Center. Exposure from the Outdoor Retailer show couldn’t have been better for Ogden, either. The open-air demo was moved from Willard Bay to Pineview Reservoir, largely due to the influence of Mayor Matthew Godfrey. Demo attendees got a closer view of what Ogden has to offer, with its unparalleled access to outdoor high adventure, kayaking parks, and hundreds of miles of hiking and biking trails.

Speaking of Mayor Godfrey, he’s probably the only mayor in the state that actively participates in the Outdoor Retailer Summer and Winter Markets. He personally visits with companies at the shows, seeking to build relationships and promote Ogden as the outdoor recreation capital of the world. “We see there is tremendous value here, so we are quite aggressive,” he says. Godfrey specifically looks for companies that may be in transition and invites them to look at Ogden. Recruitment at the Outdoor markets is something he feels he must do personally, and his approach has proven to be successful.

Within Salt Lake, Ogden, and the surrounding area there are numerous outdoor industry companies, in addition to the adventure travel, recreation, and other retail shops that contribute to the recreational economy. Ogden, especially, has experienced a large influx of outdoor companies that have fallen in love with the climate, the people and the environment, largely due to their exposure to Utah in conjunction with the Outdoor Retailer Trade Show. “These are companies that would never have had Utah on their radar had it not been for the successful hosting of Outdoor Retailer for the past 10 years,” according to Scott Beck, President and CEO of the Salt Lake Convention & Visitors Bureau.

Noteworthy outdoor products companies that have located to Utah and contribute to the greater economy of the state include:

• Black Diamond Equipment (climbing, skiing, technical equipment and soft goods)
• Petzl, USA (climbing equipment and technical lighting)
• Backcountry.com (online specialty retailer)
• Easton Technical Products
• Rossignol Skis (skis, snowboards)
• Chums (Sport Accessories)
• Zeal Optics (sunglasses)
• Chisco (Performance Sport Accessories)
• Salomon (skis, snowboards, apparel, footwear)
• Atomic USA (skis, snowboards)
• Peregrine Outfitters (wholesale distributor of more than 6,000 outdoor accessories, equipment and books)
• Smith Sport Optics (ski goggles and helmets)

Utah’s recreational opportunities have been featured in numerous national publications, including National Geographic Adventure, which called Ogden “Utah’s new outdoor capital” and also published a segment on fishing the lower Provo River, one of Utah’s blue-ribbon fisheries.

Last March, a Wall Street Journal reporter took a tour of Ogden and then told the Journal’s readers how Ogden is not just bringing in new business, but reversing the national trend by bringing companies that used to build their stuff outside the United States. Ogden Mayor Matt Godfrey told the Journal, "There is no Silicon Valley for the ski industry. Why not us?"

Other Media to feature Utah outdoor destinations include:

• A June 22, 2007 article in The New York Times, which said, “Outdoors is the way up in Ogden.”
• The July 2007 issue of ESQUIRE, which reflects upon the author's tour of “beautiful and grand national parks in Southern Utah and how they represent the foresight of a government that had the well-being of its people as one of its priorities.”
• The June 2007 issue of FSB FORTUNE SMALL BUISINESS, in which the author tells of her family trip to Southern Utah by RV to Snow Canyon State Park and Zion National Park for camping, hiking, and guided canyoneering.
• The May/June 2007 NATIONAL GEOGRAPHIC TRAVELER, which calls Zion National Park “Southern Utah's Sanctuary,” while the Mountain Biking High segment tells about the numerous red rock canyons surrounding Moab—Utah’s slick rock biking Mecca.
• In the July 2007 issue of PREVENTION, the Power Up Your Life! segment features Red Mountain Spa in St. George as a place to build women’s confidence “through the challenges of climbing mountains to help regain control, renew self-confidence, and learn how to trust others.”

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IN THE NEWS

Economic Development Headlines from the Past Week

Cedar City Area Chamber of Commerce to host trade trip to China

- Doing business internationally is becoming more and more important, even for smaller businesses right here in Utah's Festival City. That's why Donna Brown, Cedar City Area Chamber of Commerce executive director, ran with the opportunity to take local business people overseas as soon as it became available. (The Spectrum)

Sugar House plans unveiled

-  Two companies that plan to redevelop Sugar House's beloved Granite Block unveiled their plans Wednesday to transform aging warehouses and storefronts into a mixed-use development much like The Gateway shopping center in downtown Salt Lake City. (Salt Lake Tribune)

Holladay residents sound off on Cottonwood Mall project

- Neighbors are excited to see the 45-year-old Cottonwood Mall finally receive a much-needed renovation — but they want it done right. (Morning News)

Gehry-Designed $2 Billion Development Approved by Utah Town

- City officials in Lehi, Utah, on Aug. 28 approved plans by Brandt Andersen, owner of the Utah Flash basketball team, to build an 85-acre Gehry-designed development that includes an amphitheater, hotel, shopping center, restaurants, residences and man-made lakes.  (Bloomberg.com)
(Morning News)  (Utah Business Magazine) (SL Tribune)

Incentives lure insulation firm to Nephi in '08

- A Florida-based manufacturer of fiberglass insulation said Tuesday it will put a 99-employee plant in Nephi, moments after receiving $4 million in state incentives. (Morning News)
(KCPW) (SL Tribune) (Utah Business Magazine)

Skyline expanding: Work begins on a new high-rise for Salt Lake City

-  Salt Lake City's skyline will be getting a distinct new neighbor in August 2009.
A groundbreaking ceremony was held Tuesday for the 222 S. Main office tower, a $125 million, 22-story skyscraper in the heart of Salt Lake City's business district — just one of the projects that will have most of downtown in an under-construction state over the next several years. (Morning News)  (SL Tribune)

Growth not flowing into wages

- Continued economic recovery, in Utah and across the nation, has meant low unemployment levels and high productivity. It has not, however, meant more money in workers' pockets, according to a pair of reports released Thursday. (Morning News)

Jobless rate below state average

- Low unemployment continues to be the norm in Davis County, with a slightly higher percentage of people working here than in the state overall. (Clipper Today)

The face of growth: Immigrant workers in booming St. George

- If he could find qualified construction workers, subcontractor Jason Phillips says he would hire five employees immediately because he can't keep up with all of his projects. (SL Tribune)

Beneficial Business to be Enticed with Incentives

- City officials believe the Port 15 Industrial Park promises to lift Cedar City and surrounding areas out of a challenged economy with low wages and into prosperity through incentive programs to attract good companies to the area. (Cedar City Review)

Utah Fund of Funds Supports, Applauds Zions Bank Venture Lending Progress

- The Utah Fund of Funds (Utah FoF), a major Utah economic development program designed to maximize the diversity and quality of capital available to Utah entrepreneurs and growth companies, today voiced its strong support for Zions Bank’s growing new venture lending program. (Utah Business Magazine)

Ogden firm launches new online banking security software company

- Ogden-based Softkey Security Inc. has been created to provide financial institutions with solutions for second-level security for online banking transactions being mandated by the Federal Financial Institutions Examination Council.
(Enterprise)

Former Wal-Mart shopping center in Sandy to be re-born

- The former Wal-Mart shopping center on State Street in Sandy is being renovated into a new retail development called The Commons at South Towne. (Enterprise)

Boyer Co. plans 128-room hotel at The Gateway

- The Boyer Co. is negotiating with a hotel chain to construct an approximately 128-room, six-level hotel on the north end of The Gateway retail and office center in downtown Salt Lake City. (Enterprise)

Compass will spend $25M to upgrade Utah operations

- Compass Minerals International Inc. will spend about $25 million to upgrade its processing plant and modify its solar evaporation ponds at Great Salt Lake in Utah for its sulfate of potash fertilizer production. (Kansas City Business Journal)
 

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CALENDAR

Sept. 12-14: Utah League of Cities and Towns (Salt Lake City)

Sept. 16-19: International Economic Development Council (Phoenix)

Sept. 27: What's Going Down Up North (USU Innovation Campus - Calibration Auditorium, Logan). For more information contact: Monica Nielson (435) 797-9610 or email: whatsgoingdownupnorth.usu.edu

Oct. 6-10: Industrial Asset Management Council (St. Louis)

Oct. 18: PTAC Symposium (Sandy, Southtowne Expo Center)

Oct. 28-31: CoreNet (Atlanta)

Nov. 7: EDCUtah Quartely Update

Dec. 19: EDCUtah Holiday Open House

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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. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments