Sept. 16, 2008

   A Publication of the Economic Development Corporation of Utah
CEO Jeff Edwards

President's Message

New Board Officers Bring Many Talents


Now that EDCUtah's annual meeting is over and we can catch our collective breath, I would like to introduce the new leadership of EDCUtah's Board of Trustees. EDCUtah is, as always, fortunate to have a dynamic group of leaders that contribute their time and talents to economic development in Utah. Leading the board we have: Jerry Fenn, chair; Tom Dolan, vice-chair public sector; A. Richard Walje, vice-chair private sector; and Jill M. Taylor, secretary/treasurer.

Jerry Fenn, president of Qwest Communications

Jerry Fenn - Chairman

Jerry is president of Qwest Communications and responsible for Utah's local markets team, representing Qwest's vision and values in Utah – its Spirit of Service – and working with community, government and civic leaders throughout the state. He has served in a number of different volunteer capacities within the Utah State Bar, American Bar Association as well as numerous community endeavors. He is the past-chairman of Junior Achievement of Utah and sits on the boards for The Utah Symphony & Opera, Pioneer Memorial Theatre, This is the Place Heritage Foundation, Salt Lake Chamber of Commerce and the Utah Taxpayers Association.

Tom Dolan, mayor of Sandy City

Tom Dolan – Vice-Chair, Public Sector

Tom has been mayor of Sandy City since 1994 and has attained great success in his stewardship for the municipality. He was awarded Salt Lake County's Most Progressive Economic Development Elected Official Award in 2003. Tom is also a member of several community groups, including the Utah Sports Commission; Salt Lake Council of Governments; Salt Lake Valley Conference of Mayors; chairman, Salt Palace Board of Directors; and chairman of the Wasatch Front Regional Council. He has also served as president of the Utah League of Cities and Towns and as vice-chair of Envision Utah.

A. Richard Walje, president of Rocky Mountain Power

A. Richard Walje – Vice-Chair, Private Sector

Rich was appointed president of Rocky Mountain Power in March 2006, when MidAmerican Energy Holdings Company completed the purchase of PacifiCorp from Scottish Power. In this capacity, Rich has executive management responsibility for the company's operations in Utah, Idaho and Wyoming. Among his civic activities, Rich serves on the Wyoming Business Council Board of Directors, University of Utah's Business School National Advisory Committee, The Economic Development Corporation of Utah Board of Governors, Salt Lake Chamber of Commerce Board of Governors, Utah Sports Commission Board of Directors, Utah Shakespearean Festival Board of Governors, and the Board of Governors of the Coalition for Utah's Future. He also serves as chairman of PacifiCorp Foundation's Board of Directors.

Jill M. Taylor, president of KeyBank's Utah operations

Jill M. Taylor – Secretary/Treasurer

Jill is president of KeyBank's Utah operations. Cleveland-based KeyBank has 38 branches in Utah and ranks among the top five banks in the state. Jill began her banking career about 17 years ago at Valley Bank & Trust. Before becoming Utah District President she served as district retail leader, where she supervised branch management and worked closely with business banking operations. Jill is passionate about public service and gives five to 10 hours each month to several charities, including Junior Achievement of Utah.

Thank you to these individuals who are sharing their expertise with EDCUtah.

On another subject, it's not just the BYU and U of U football teams receiving national rankings these days! Last week the Milken Institute ranked the Provo-Orem metro and Salt Lake City metro areas first and third, respectively, in the 10 best-performing cities where jobs are created and sustained. If there were a “Bowl Championship Series for Job Creation” Utah would be at the top! Our feature story in this newsletter explores the Milken Institute's rankings and the positive national awareness it creates for our great state.

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” button on the bottom of this page. Enjoy!

Jeff Edwards

Jeff Edwards
President and CEO

Feature

Three of Utah's Technology-based Metros Make the Top
25 in Milken's 2008 Best-Performing Cities Index


The nation is in a tough economic cycle, but Utah's economic engine is weathering the storm quite well, as acknowledged last week by the Milken Institute/Greenstreet Real Estate Partners 2008 Best-Performing Cities Index. The study annually ranks the top 10 metro areas where America's jobs are being created and sustained. Two Utah metro areas placed within the top three nationally, with the Provo-Orem area taking top honors. The Salt Lake City metro area followed close behind at third.

Also of note, the Ogden-Clearfield metro area ranked 18th in the Milken's index, which measures momentum in job growth, wages and salaries, diversity of technology industries and technology output between 2002 and March 2008. It includes both long-term (five years) and short-term (one year) measurements of employment and salary growth. There are also four measurements of technology output growth, which are included because of technology's crucial role in regional economic growth.

Provo's High-Tech Muscle

Provo used its high-tech muscle as a growing technology-based, global trade center to take top honors and leap from an eight place finish last year to first in the latest index, which was released last week. The Provo-Orem economy has been generating job growth far in excess of the national average over the past five years. From 2002 to 2007, Provo-Orem has seen its employment base expand 16.5 percentage points faster than the U.S. average, ranking 5th overall in this indicator. Its job-growth performance remained strong in 2007 at five percent, placing the metro third in the nation. What's more, the quality of jobs being generated in the Provo-Orem metro has been high as well, highlighted by its third-place position in wages and salary growth in 2006. Much of the area's economic growth has been fueled by a remarkable recovery in high-tech information services and hardware.

Jason Perry, executive director of the Governor's Office of Economic Development, says the report underscores the success of the Utah economic development effort and is indicative of “a combination of good long-term planning and the development of a prosperous, competitive economy.” He notes that Utah is not only creating the right kind of jobs, but high paying jobs within sustainable industries.

Like many high-tech areas of the country, Provo-Orem experienced a dramatic decline in employment at its leading firms when the technology bubble burst earlier this decade, but while national high-tech employment never regained the levels achieved in early 2001, Provo-Orem has actually managed to eclipse its previous peak.

Economic Engine of Job Growth

"There aren't many places in the country that can say that,” says Ross DeVol, author of the report and director of regional economics at the Milken Institute. “This year's rankings demonstrate that entrepreneurs continue to be the economic engine of choice for job growth, even in the face of national and global economic challenges. We've seen energy, housing and even catastrophic events such as Hurricane Katrina impact a specific year, but consistently, those metros dedicated to growing their technology base and human capital beat the short-term shifts in the economy.”

Provo Mayor Lewis Billings attributes the area's top honors to the high quality people residing there. His economic development director, Leland Gamette, agrees and adds that the area has also benefited from the increased research budget at Brigham Young University, increased business spin-off activity at BYU and a 60,000-strong workforce of students enrolled at BYU and neighboring Utah Valley University. “That's a phenomenal base to call upon,” he says.

“Our move to #1 doesn't really surprise us. It's indicative of the fact that we are a highly resilient area with a lot of high-tech jobs and a solid workforce,” Gamette adds.

Key drivers in job growth within the Provo-Orem area include a lower cost of doing business, job growth at the Micron Technology/Intel flash memory plant, and an increasing number of software technology companies locating to the area. Provo-Orem is 3.3 times more dependent on software employment than the national average, with Novell and Symantec as key anchors.

Salt Lake Metro Bolstered by High-Tech Sector

Job growth in the Salt Lake Metro area also has been bolstered by its high-tech sector, however, energy operations also factored into the outcome, according to the report. What's more, Salt Lake City has become an important regional financial center, has benefited from a strong health-care sector, University of Utah medical research, state commercialization activities, travel and tourism, export markets and business investment in information technology.

The Ogden-Clearfield metro area was recognized for its growing construction industry, strong population growth, and job growth in health care, administrative and support industries, professional, scientific and technical services. The new Front Runner rail line between Salt Lake and Ogden is expected to further fuel economy activity in the Ogden-Clearfield area, as will the emerging aerospace industry there.

Top 10 Metros

Milken's 2008 top 10 performers (with 2007 rankings in parentheses) of the 200 largest metros are as follows:

  1. Provo-Orem, Utah (8)
  2. Raleigh-Cary, North Carolina (10)
  3. Salt Lake City, Utah (18)
  4. Austin-Round Rock, Texas (20)
  5. Huntsville, Alabama (16)
  6. Wilmington, North Carolina (2)
  7. McAllen-Edinburg-Mission, Texas (7)
  8. Tacoma, Washington (50)
  9. Olympia, Washington (37 in 2007 smallest-metros ranking)
  10. Charleston-North Charleston, South Carolina (12)

The full report is available at www.milkeninstitute.org. Data for all 324 metros is also available in an interactive web site, http://bestcities.milkeninstitute.org.
 

Rocky Mountain Consensus: Developing Priorities from Limited Resources


A few of Utah's legislative leaders have joined together to form what is being called the “Rocky Mountain Consensus” or RMC, which seeks to provide well-considered policy development direction in the area of climate change. The goal of the RMC is to open a new dialogue among policymakers regarding the sustainable development of Utah's energy resources and create common ground for identifying successful policies.

Sponsors are being sought to support this effort. Those interested in helping out should e-mail Rey Butcher at Questar for more information. Click here to read an executive summary of the Rocky Mountain Consensus.

Utah League of Cities
and Towns Wraps Up Successful Annual Conference


The Utah League of Cities and Towns (ULCT) wrapped up its 101st Annual Conference Friday night in Salt Lake City. Brian Hall, director of training for the ULCT, says the event featured a smorgasbord of training opportunities with 40 workshops and three mobile tours. Approximately 825 ULCT members, mostly elected and appointed officials, attended.

The event also featured three luncheon addresses and a trade show. The featured speakers were presidential historian and author Doris Kearns Goodwin, who spoke about her latest book: “Team of Rivals: The Political Genius of Abraham Lincoln,” Sir Ken Robinson, an expert on creativity, who taught the crowd how leaders can foster the creativity of their employees, and Geoffrey Colvin, Fortune Magazine's senior editor-at-large.

“Everyone comes with different expectations. We always offer a broad agenda so that attendees can find something to take away, but our primary theme was the tough economic situation being faced by cities and towns, where costs are rising as revenues are falling,” Hall says.

News coverage of the event is available from the Deseret Morning News.

In The News

Economic Development Headlines from the Past Week

Provo-Orem ranked No. 1 in nation for job growth

- Utah's strong job creation has helped keep the state out of some of the economic doldrums facing the nation, according to a report released today. The report from the Milken Institute ranks Provo-Orem first in job growth among the country's large metro areas. Salt Lake City was third, and Ogden-Clearfield was 18th. Among small metros, St. George was fourth. (Morning News) (SL Tribune) (Daily Herald)

State offers bike firm incentive to come here

- Utah has offered a wholesaler of bicycle parts an incentive worth as much as $2.2 million to expand along the Wasatch Front. The incentive, approved Thursday by the board of the Governor's Office of Economic Development, would be payable to Bloomington, Minn.-based QBP in the form of tax credits taken by the company over 10 years. (SL Tribune here and here)

Dew Tour is a huge success in Utah

- With record-setting attendance and jam-packed venues, it's safe to say the AST Dew Tour has found a home in Salt Lake City.
With 63,481 tickets sold over the four-day run at EnergySolutions Arena, the Utah stop on the Dew Tour drew more fans than at any other stop in its four-year history. Saturday's attendance figure of 25,996 was the best single-day number in the tour's record books.
(Deseret News) (ABC 4) (Salt Lake Tribune)

Footwear steps in with fabled label

- The city that played host to the 2002 Winter Olympics recently became the North American sales and distribution hub for Wenger Footwear, a new line of shoes being developed under the auspices of the Swiss family-owned company, Wenger SA, which has manufactured the classic camping knife for five generations.
(SL Tribune)

Film crews in Utah for car commercials

- Utah's speedy Bonneville Salt Flats are the location of many an automobile commercial. This weekend and through Monday, though, other portions of the state are serving as outdoor stages for car advertising. (Morning News)

'The Legacy Parkway is done' — and it's open to commuters

- You could almost hear the collective sigh of relief as the Legacy Parkway officially opened Saturday. That sigh came from state and local leaders and from construction officials but will likely be echoed Monday, when the first commuters get their crack at Utah's first parkway. (Morning News) (SL Tribune)

Pickens sheds light on his energy plan for Salt Lake crowd

- Billionaire T. Boone Pickens brought is traveling energy road show to the Salt Palace Convention Center on Thursday, and hundreds of Utahns came to hear what he had to say.
(Morning News here and here)

Focusing on military technology

- A major support group for U.S. warfighters is gathering in Salt Lake City this week, looking for ways to ensure that the military's aircraft and equipment are in top-flight shape. More than 1,000 people are attending Autotestcon, a systems-readiness technology conference.
(Morning News)

Small-business index for Utah fell in August

- Conditions for Utah's small businesses slipped a bit in August, despite better access to labor, according to a report released Tuesday. The Zions Bank Small Business Index for Utah was 85.2 in August, down from a revised 85.3 in July. (Morning News)

'Wasatch Back' growing fast

- The Heber Valley — known locally as the "Wasatch Back" — has been among the fastest-growing areas in northern Utah over the past several years. The area, which includes Wasatch and Summit counties, has seen its population jump 25 percent and its average home sales price nearly double since 2002.
(Morning News)

Traditional mall planned for Lehi

- LEHI — A large, traditional, indoor mall appears to be in the works for Lehi.
City officials confirmed that the property around 2100 North and 2300 West is in the planning stages of construction and, for now, is expected to be called Thanksgiving Station. (Morning News)

Construction delayed at posh mtn. resort

- By now, a posh mountaintop resort was supposed to be bustling with activity.
But so far, the Mount Holly Club in the Tushar Mountains is more of an idea than a reality.
The project 18 miles east of Beaver was supposed to include a Jack Nicklaus-designed golf course, multimillion-dollar homes and a world-class ski resort. (Daily Herald)
(SL Tribune)
 

CALENDAR

Sept. 13-17: IAMC (Oklahoma)
Sept. 25: What's Goin' Down Up North - Northern Utah Economic Summit,  9 a.m. - 3 p.m. (Utah State University Innovation Campus, North Logan) Registration form.
Sept. 30: Utah Chapter NAIOP Survivor 2008 Bus Tour
Oct. 9-12: CoreNet (Orlando)
Oct. 21: 3rd Annual Procurement Symposium
Oct. 22: Quarterly Update
Dec. 17: Holiday Open House (EDCUtah)

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