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FEATURE STORY

Economic Development and the Education Factor

In today’s global economy, education plays an enormous role in maintaining prosperity and stimulating economic growth. Gayle McKeachnie, the Governor’s director of rural affairs, says education is a form of economic development that applies to communities, counties, regions and countries: “The economic scale of a community is magnified by the education of the families in the community.”

Perhaps that’s why McKeachnie is so passionate about improving educational opportunities in rural Utah—he is certain that taking higher education to the nethermost parts of the state will stimulate economic growth and improve opportunities for rural Utahns to support their families, have access to health benefits and still maintain their rural lifestyles.

Many companies look for sites off of the Wasatch Front; however, one factor that always influences a location decision is labor force: Does the available labor pool have the education or skills to fill the jobs? The availability of a skilled and educated workforce is one of the key ingredients to a vibrant economy and one of the factors that can spur or stall economic development in rural areas of the state.

As an example, North Logan’s powerful education demographic was an influential factor in Qwest’s recent decision to locate a service center there. McKeachnie is quick to point out that 31.9 percent of Cache Valley residents age 25 or older hold a bachelor’s degree or higher, well above the national average of 17.4 percent.

When KraftMaid Cabinetry announced West Jordan as the site for its new manufacturing facility, it also cited “Utah’s abundant skilled labor base” as one key factor in its decision. Approximately 28 percent of Salt Lake County residents age 25 or older hold a bachelor’s degree or higher.

The disparity in education levels between urban Utah and rural Utah is substantial. For example, Summit County, with the state’s highest household income, also has the largest population with bachelor’s degrees or higher (45.5 percent of residents age 25+). Of the 10 counties with the lowest education levels, all are below the state average for household income.
 

Emery	$41,207	11.6
Daggett	$34,691	11.9
Beaver	$37,969	12.1
Juab	$40,125	12.2
Carbon	$36,190	12.3
Duchesne	$36,415	12.7
Uintah	$39,069	13.2
San Juan	$27,653	13.9
Piute	$29,145	14.4
Sevier	$37,536	15.2
Income source: Department of Workforce Services Education information: 2000 Census

The question then is why is there this large difference in education levels?

Making Higher Education Available

McKeachnie believes the disparity in education is due to many factors, one of which has been the lack of educational opportunities. In the past, opportunities for a post high school education have been limited in rural Utah. Furthermore, students who leave their rural surroundings to attend college often go on to obtain higher paying jobs in urban centers and rarely return to their rural roots.

For example, McKeachnie says nurses have always been in short supply in the Uintah Basin because students who wanted to pursue nursing careers had to attend a nursing school along the Wasatch Front. Upon completion of their schooling, these students were often recruited by Wasatch Front hospitals or medical clinics and did not return to the Uintah Basin. Now, through a partnership between Utah State University and the Uintah Basin campus of the Utah College of Applied Technology (UCAT), 26 nurses are trained each year. Through UCAT, these students can receive nursing education without leaving the Uintah Basin, and the area is able to meet its demand for nurses.

McKeachnie says the beauty of UCAT is in its ability to provide market-driven career and technical education to secondary and adult students through its nine regional campuses. Each campus provides opportunities for high-quality, statewide open-entry, open-exit, competency-based education.

UCAT offers more than 40 certificate options, training in over 100 skill areas and three Associate of Applied Technology degrees (AAT): computer aided drafting and design, medical assisting and information technology. McKeachnie says more than 100,000 students have been served by the UCAT system. In 2005 UCAT awarded:

• 33 AAT degrees
• 235 certificates of completion
• 3,154 certificates of proficiency
• 1,917 certificates of technical competence

Furthermore, UCAT students have qualified for 1,149 state and industry licenses and certifications.

Each UCAT campus has a supporting alliance with one of Utah’s colleges and universities (Utah State, University of Utah, Southern Utah University, Snow College, etc.), enhancing its ability to prepare students to enter, re-enter, upgrade or advance in the workplace.
EDCUTAH believes UCAT and other higher education initiatives are critical to Utah’s economic development efforts. By placing educational opportunities within the reach of all Utah residents, we stimulate economic growth, which helps improve the overall quality of life for all citizens, whether they live in a rural or urban location.

Click here to learn more about UCAT or follow the links below for information about specific UCAT campuses:

Bridgerland Applied Technology College Campus

Davis Applied Technology College Campus

Dixie Applied Technology College Campus

Mountainland Applied Technology College Campus

Ogden-Weber Applied Technology College Campus

Salt Lake/Tooele Applied Technology College Campus

Southeast Applied Technology College Campus

Southwest Applied Technology College Campus

Uintah Basin Applied Technology College Campus

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IN THE NEWS

Economic Development Headlines

Governor Signs Bill to Lure Research and Technology

- Before signing the Utah Science, Technology and Research Initiative into law, Gov. Jon Huntsman Jr. said the state's investment will pay off 20 years from now. (SL Tribune) (Morning News)

Public-Private Partnerships are Key to ED

- Public-private partnerships are the new model for economic development in Utah. Panelists at a recent Wasatch Digital iQ roundtable discussion on economic development cited the recent passage of the USTAR legislation and Gov. Jon Huntsman, Jr.’s focus on making the state business friendly as examples of how the government and private industry can work together. (Utah Business Magazine)

New Leadership at GOED

- Governor Jon M. Huntsman, Jr., Wednesday announced changes in the Governor's Office of Economic Development (GOED) and the Department of Community and Culture. Jason Perry will be the new director of GOED, replacing Richard Bradford, who is planning to retire from state government after13 years of service. (Utah Business Magazine)

Kennecott May Dig Deeper

- Kennecott's mine may be about to go under. No, not bust. But underground. And deeper. And wider. By doing so, the copper giant hopes to mine metals for years, perhaps decades, to come. So much for earlier predictions that the century-old pit up Bingham Canyon would run dry by 2012. (SL Tribune)

It’s a Hiring Bonanza

- Hiring picked up across the economy in February, with employers adding nearly a quarter of a million jobs in the biggest boost in three months. Encouraged by help-wanted signs, job seekers turned out in droves, nudging the unemployment rate higher. (SL Tribune)

Indiana Truck Lube and Tire Chain to Enter Utah Market

- Speedco Inc., an Indiana-based operator of 38 quick lube service and tire centers for commercial truck owner-operator and fleets, is preparing to enter the Utah market. (The Enterprise --scroll down)

Vitamin E-tailer Eyes Spanish Fork for Major Plant

- An Inc. 500 Hall of Fame catalog and online discount retailer of vitamin, nutrition and diet products sold direct consumers has purchased 27 acres in Spanish Fork where it hopes to build an approximately 147,000 square foot manufacturing and distribution facility. (The Enterprise --scroll down)

New 'Report Card' Outlines Costs to Develop in Salt Lake County

- The National Association of Industrial and Office Properties, in conjunction with the Society of Industrial and Office Realtors, has unveiled a "Municipal Report Card" identifying the processes and costs associated with the building and development of commercial real estate in Salt Lake County. (The Enterprise --scroll down)

Sederburg:  Cultural Issues a Barrier to Economic Development

- Utah County residents need to address some cultural issues in order to enhance economic development, Utah Valley State College President William Sederburg said Thursday. (Morning News)

Sederburg: Utah Losing Its Educated Workforce

- It is a constant refrain heard from politicians, economic development officials and business leaders -- any place hoping to stay competitive in today's economy must have an educated work force. On Thursday, UVSC president William Sederburg said Utah isn't keeping up. (Daily Herald)

Utah Economy Fairing Well

- When it comes to Utah's economy, there's good news and bad news -- and the strong possibility of more good news. Economic news this year has been largely good -- employment and job growth are up and expected to stay that way. (Daily Herald)

Iron County Mulls Impact of Development

- Quantum Group developers believe the timing is good to make use of Cedar City's assets and jump-start an area of economic development, but Iron County taxing entities - Iron County, Cedar City, Iron County School District and the Central Iron County Water Conservancy District - are carefully considering the impacts of such a development. (Spectrum)

Northern Utah Ranchers Hope to Whet Consumers' Appetite for 'Cache' Cows

- Ranchers in and around this northern Utah community see a wealth of opportunity in a new breed of marketing for their "Cache" cows. But they won't be a part of the new "Utah's Own" label, and neither will other in-state ranchers raising homegrown beef. (SL Tribune)

Manufacturing Up, but Skilled Workers are Still Needed

- Weber County manufacturers were in expansion mode in 2005 after three years of downturn, but a shortage of skilled workers continues to hamper growth, a new survey found. Weber Economic Development Corp.'s annual business survey painted a rosy economic picture overall based on responses from 51 companies, including many of the county's largest manufacturers. (Standard-Examiner)

Female-owned Firms Booming

- Utah is among the top 10 fastest-growing states for female-owned businesses, according to a recent report by the Center for Women's Business Research. (Arizona Business Gazette--registration required)

Business Tax Cuts Dried Up in Legislature

- Nine months ago, with leading legislators and Gov. Jon Huntsman Jr. calling for economic development to come from large business tax cuts, it looked like the 2006 Legislature could be a very business-friendly conclave. But Huntsman and legislators did an about-face in their 45-day general session. (Morning News)

Study Details Economic Ties of Utah, Mexico

- About 98,000 Mexicans come to Utah every year for vacation, and many of them are heading to the state's ski areas, where they spend an estimated $7 million. (Daily Herald) (SL Tribune)

Utah Companies Participate in Trade Mission to Mexico

- Every year, Utah businesses export more than $100 million worth of merchandise to Mexico - everything from rubber gaskets for automobile engines to computer software. (SL Tribune)

New Utah Slogan 'Embodies Heart and Soul of State'

- State tourism officials want out-of-staters to get high on Utah. To wit: "Life Elevated." (Morning News) (Daily Herald)

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CALENDAR

March 23:  EDCUTAH’s Quarterly Investor Update (Click here to RSVP)

March 24:  GOED Tech Breakfast (Click here for more information)

April 6-7:  Utah League of Cities and Towns Spring Convention, St. George

April 9-12:  BIO 2006 Annual Conference, Chicago

April 19-20:  Rural Business Conference with Sen. Robert Bennett, Vernal (Click here for more information)

April 23-26:  CoreNet Global Summit Spring Convention. Philadelphia

May 2-4:  SAMPE Advanced Materials Conference, Long Beach, CA

May 3-4:  Salt Lake Chamber Business-to-Business Expo, SLC

May 21-24:  ICSC Spring Convention, Las Vegas

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