June 27, 2006

  

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

PRESIDENT'S  

MESSAGE


Laying the Groundwork in China for Utah Companies

As Utah companies look for ways to grow their businesses, they increasingly look at international markets such as China, with its burgeoning population and growing income levels. The Governor's Office of Economic Development, in it's continuing efforts to strengthen Utah's international trade relationships and lay the ground work for Utah companies looking internationally, has recently completed it's first planned trade mission to China and is preparing for its second mission this fall. Today's feature article discusses the significant results of these trade missions.

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 STORY

GOED Invites Companies to Participate in Fall Trade Mission to China

The Governor's Office of Economic Development (GOED) has set the stage for a productive Utah-China trade relationship. Having recently completed the first of two planned trade missions to China, GOED is now inviting Utah companies to apply for participation in a China trade mission this fall, which will likely be led by Gov. Jon M. Huntsman Jr. Huntsman's participation is significant, not only because of his position as governor, but also because he is a former diplomat and trade official, and has set Utah economic development as one of his highest priorities.

Brett Heimburger, GOED Director for Asia, says a firm date for the fall trade mission has not been set; nonetheless, Utah companies interested in participating should begin the application process. "If you are thinking of doing business in China you have to start now," he says. The application deadline is July 14, 2006. For more information contact GOED's International Trade and Diplomacy Office, 801-538-8737, or email Adam Walden at awalden@utah.gov.

Companies wanting to participate in GOED's fall trade mission to China should apply now. The application deadline is July 14, 2006.

In addition to building government relationships, companies attending the fall mission will also have the opportunity to do partner matchmaking with Chinese companies and associations; however, prior planning is critical to success. "Spots are limited, so I encourage all interested companies to get their applications in as soon as possible for consideration," Heimburger stated.

China is Utah's fifth-largest trading partner. Heimburger says Utah companies exported $325 million in goods and services to China last year, an increase of $202 million over 2004. Much of that increase was the result of Utah companies exporting raw materials, like copper, chemicals and gold, for use in the development of China's infrastructure.

During the first China trade mission Heimburger took several Utah energy and natural products companies to Beijing and Shanghai. International Automated Systems and Ceramatec, from Utah's energy industry, along with Chinese representatives from Nuskin and Tahitian Noni, helped establish relationships with key federal-level Chinese agencies. The Utah delegation was hosted by the China Council for the Promotion of International Trade, which sent a delegation to Utah last October. During its Utah trip the organization met with Gov. Huntsman and offered to help Utah businesses arrange key government meetings in China. Heimburger says this first visit on the part of Utah representatives strengthened the Utah-China relationship in preparation for Gov. Huntsman's fall trade mission.

"Understanding the Chinese system, business processes, and social practices are critical in the development of a trading strategy between Utah and Chinese companies. This preliminary trade mission proved very effective at opening doors with federal-level Chinese ministries," according to Heimburger. "Our trade missions are important because they help companies work from the top down, rather than the ground up."

Meetings held in the energy sector included the National Development and Reform Commission, which oversees China's energy policy. Additional meetings were held with the Ministry of Commerce, which oversees all general business relationships. Matchmaking meetings were held for the energy-focused companies in both Beijing and Shanghai, as were networking meetings that included American companies already operating in China. Heimburger says these meetings allowed the Utah companies to develop relationships, gain insight into the market, and learn best practices for conducting business in China. Meetings held for the natural products companies included the Direct Selling Regulation Bureau of the State Administration for Industry and Commerce, and the Chinese Food and Drug Administration.

"The meeting with the Direct Selling Regulation Bureau was significant, since direct selling is key to many of Utah's natural products companies. Utah companies are thus keenly interested in establishing contacts with this relatively new bureau," according to Heimburger.

At the conclusion of the trade mission Heimburger continued on to Chengdu in Sichuan Province to follow up on a recently signed cooperative agreement between the Utah Department of Health and the Chinese Department of Health to review the potential significance of traditional Chinese medicine in the natural products industry. Heimburger also met with Chinese government representatives who can assist Utah companies increase the quality of raw materials currently being imported from China.
 

CALENDAR

July 21:  GOED Board Meeting

August:  EDCUTAH Annual Meeting

Aug. 10-13:  Outdoor Retailer Summer Market

Sept.: 13-15: Utah League of Cities and Towns (St. George)

Nov. 12-15: CoreNet Global Summit, (Orlando, FL.)


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IN THE NEWS


Economic Development Headlines

16 Research Centers to Get State Funding

- Sixteen university research centers will receive funding for 2006-07 through the state's Centers of Excellence program. The Governor's Office of Economic Development Board approved the funding Friday for research groups developing products or technologies at Utah universities. (Morning News)

Port 15 Has Big Tracks to Fill

- The re-enactment of the driving of the Golden Spike during the groundbreaking ceremony of Cedar City's first economic development area, called Port 15 Utah, is setting itself up to be as nationally significant as the completion of the world's first transcontinental railroad, when the Central Pacific and Union Pacific railroads met on May 10, 1869 at Promontory. (The Spectrum)

Forming Partnerships: Chinese Industry is Growing, and Utah is Acting on it

- Utah companies which want to do business in China need to keep one thing in mind - making the right commercial contacts face to face is crucial to success. (SL Tribune) (Utah Business Magazine)

St. George Growth Creates National Buzz

- As St. George's population grows, so does its reputation. In recent months, St. George has been named on the Top 10 lists of a variety of Internet sites and magazines. (The Spectrum)

Meat Plant May Come to Tremonton

- A 28-acre parcel west of Tremonton that borders the proposed new 2000 West thoroughfare may become the location for a new West Liberty Foods plant. (Standard Examiner)

Peterson Partners Promote Business

- Airplanes, milk and radioactive waste have never looked this good - at least to Peterson Partners, a Salt Lake-based $300 million equity fund, whose investments have created thousands of new jobs and turned small companies into major hitters. (Morning News)

Layton 'Picky' With Downtown Renovation Plans

- As Layton's downtown began to shift north with new development, the buildings along its old main streets started to resemble those of a forgotten rural small town. (Morning News)

Major Facelift Could Begin New Downtown Era

- Thanks to the proposed construction of two new buildings, downtown Bountiful looks like it will finally catch up with the rest of the city. (Clipper Today)

Utah Technology Council Appoints New Leadership

- Following the completion of the merger of the Utah Information Technology Association (UITA) and Utah Life Science Association (ULSA), the Utah Technology Council has announced additional leadership news for the combined organization. (Business Wire)

Transportation Jobs for Minorities Pushed

- The Utah chapter of the Conference of Minority Transportation Officials held its second annual conference recently in the Little America Hotel. The group works to educate the public about transportation issues and to help minorities get better jobs within the transportation field. (Morning News)

Services Company to Open Salt Lake Call Center

- A Dallas-based business process outsourcing and information technology services company said Wednesday it plans to open a facility in Salt Lake City in mid-August and have about 600 people working there by early next year. (Morning News) (Chron) (Dallas Business Journal) (Yahoo Business)

Be Patient, Rocky Says

- Salt Lake Mayor Rocky Anderson told the Downtown Merchants Association that the city needs to be patient while it waits for rejuvenation. (Morning News)

Zions Bank to Sponsor Utah Economic Forecast

- Salt Lake-based Zions Bank has announced that it will team with research firm Dan Jones & Associates to sponsor a quarterly economic forecast based on surveys from local business leaders. (Morning News) (Utah Business Magazine)

Ski Industry Eyes No. 3 Spot

- Utah, the No. 4 skiing state, is fast approaching Vermont for drawing crowds of skiers. Final figures for the 2005-06 winter show Utah ski resorts had 4,062,188 skier visits, a record increase for the third consecutive year, according to the trade association Ski Utah. (Herald Extra)

Gondola Fans Rally at Ogden City Hall

- Hundreds of Ogden community members, leaders and businessmen met on the steps of the Municipal Building on Tuesday evening, gathered in support of developer Chris Peterson's plan to build a housing development, ski resort and gondola in the city. (Standard Examiner)

Smart Growth: Not Enough Info for Gondola

- Smart Growth Ogden is officially opposing developer Chris Peterson's multimillion-dollar plan that includes the purchase of Mount Ogden Golf Course because of a lack of project details. (Standard Examiner)

Laid-off Biotech Workers Get Job Hunt Tips

- Public and private organizations are working together to help find jobs in the life sciences sector for workers laid off from NPS Pharmaceuticals. (SL Tribune)

Schreiber Foods Expands

- The Logan branch of cheese processor Schreiber Foods is planning a $28 million, 157,000-square-foot expansion that's expected to create up to 45 new jobs. (HJ News)

State Money Sought to Aid Rural Firms

- A program to help low-income residents of rural Utah start their own businesses has provided some economic benefit to the communities it served, according to a report released Tuesday. (Morning News)

Davis Tax May Boost Center Plan

- Davis County commissioners voted Tuesday to increase a hotel-room tax by 1.25 percent, a move they hope will help advance a proposed expansion of the Davis Conference Center. (Morning News)

Allegheny Technologies plans $325M facility

- Allegheny Technologies Inc. said Monday it will spend $325 million to build a titanium sponge production facility in Rowley, Utah. Titanium sponge is used to produce titanium alloys for the aerospace and defense industries. (Pittsburgh Business Times)

Freeport West Breaks Ground on Three New Warehouse Buildings

- Freeport West broke ground on three of its newest warehouse/distribution buildings on Tuesday. The new buildings, collectively known as Freeport West-Landmark, sit on a 300-acre plot of land and will comprise 1.6 million square feet when complete. (Utah Business Magazine)

University Venture Fund Seals the Deal on $18 Million in Funding

- Students from the University Venture Fund have raised a total of $18 million in capital from investors, including UBS Bank USA and CapitalSource. (Utah Business Magazine)

Strategies for Entrepreneurial Success

- Jack Brittain, dean of the David Eccles College of Business, has some advice for would-be entrepreneurs: Don't do it.  On Friday, Brittain and other experienced entrepreneurs offered an inside look at what it takes to start a business. (Utah Business Magazine)