March 21, 2006

  

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

PRESIDENT'S  

MESSAGE

Important Support for New and Existing Businesses

Utah’s entrepreneurial spirit thrives; unfortunately, so does its rate of failed start-up ventures. To help stanch this trend, the state is establishing the Utah Business Link, with Business Resource Centers strategically located around the state. Today’s feature article discusses the attributes of these one-stop shops whose sole purpose is to help businesses start and/or grow.

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

Utah Business Link: One-Stop Support to Start – and Grow – Business

Truly, Utah is a great place to start a business. In fact, Utah ranks near the top for business startups generated each year. Unfortunately, Utah ranks near the bottom (46th out of the 50 states) for business retention, says Fred Lange, director of procurement technical assistance centers (PTAC) for the Governor’s Office of Economic Development (GOED).

It’s a known fact that within five years most new startups are out of business. Now, however, GOED is hoping to reverse that trend through an initiative called “Utah Business Link,” which would establish collaborative Business Resource Centers in strategic geographical locations throughout the state and a virtual center on the Internet. The objective of the centers is to provide one-stop guidance services to startups and existing businesses in the areas of business support, education, funding, training, and networking.

Utah Business Link is the brand name and title of the virtual Business Resource Center currently in development. Lange says the virtual center will make extensive business assistance information available online through the Internet. For example, a new or existing business could apply for services, access guidance or obtain business development information before traveling to a physical Business Resource Center location.

Funding for Utah Business Link was discussed during the 2006 Legislative session, but unfortunately the session ended before it could come up for a vote. Lange says GOED has received assurances the vote will occur in the Legislature’s upcoming special session this May. If approved, Utah Business Link would have $500,000 annually to progressively establish as many as 11 Business Resource Centers and satellite offices at strategic locations throughout the state.

The Business Resource Centers will be public/private joint ventures drawing together the resources of multiple federal, state, and local agencies, along with private enterprises. Some of the organizations and agencies with interest in the Business Resource Centers include:

Two Business Resource Centers—one in Sandy at Salt Lake Community College’s Larry H. Miller Campus, and one in Kaysville across from the Davis Applied Technology Center—should be ready to begin operation by June. Lange says the Davis center is being located through funds donated by the David Simmons family. GOED’s goal is to cover the state with Business Resource Centers by 2007. Some of the locations may include: Each physical location will have the Utah Business Link brand plus a localized naming convention. For example, a Business Resource Center in Logan would be called:

Utah Business Link
Logan Business Resource Center

In January Zions Bank launched a Business Resource Center in downtown Salt Lake City, much the same as the Business Resource Center effort underway by GOED. In fact, Lange says GOED is working with Zions Bank to align the centers so they offer similar services, with expert staff and access to additional public/private business development resources.

Ultimately, GOED expects the online Utah Business Link and network of local Business Resource Centers to become an invaluable support to Utah’s entrepreneurial spirit, making the state a great place to start—and grow—a business.

USTAR UPDATE

Now the Real Work Begins


The legislation creating USTAR was signed by Gov. Jon Huntsman last week amid a lot of hoopla. Now the pressure is on to perform. Expectations are high for the University of Utah and Utah State to attract world-class research teams in selected disciplines where businesses can be created.

The USTAR legislation takes effect July 1, although activities are already underway based on legislation passed in 2005. Before new funds can be disbursed, appointments to the eight-member USTAR Governing Authority must be made by the governor (three appointments), House speaker, (two appointments), Senate president (two appointments) and higher education commissioner (one appointment). In addition, a full-time executive director must be hired and a 12-member Advisory Board must be appointed.

Another big job is to inform the science and technology world that, with USTAR, Utah is open for business and is willing to invest in basic research and development that leads to business spinoffs in selected disciplines where multi-billion dollar markets exist.

With USTAR we can compete for the best and the brightest. Already, numerous Utah scientists/entrepreneurs have created successful businesses that have spun out of scientific research. We know we can do it because we’ve done it in the past and we’re doing it today.

Our message needs to be: If you’re a world-class scientist and you’re making breakthroughs with commercial potential in certain research disciplines, then Utah is the place to be. You’ll have the best facilities in the world, great collaboration among university disciplines, a smooth and aggressive commercialization process, and strong support from university administration and the Utah business community. In Utah you will also find great business management resources, great employees and great access to capital. We will support you not only in your scientific research, but also in the commercialization process. You can be both scientist and entrepreneur.

(continued at the top of the right-hand column)

CALENDAR

March 23:  EDCUTAH’s Quarterly Investor Update

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

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

April 11: ACG Conference (Click here for information/registration)

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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USTAR UPDATE -- Continued


That’s a pretty powerful message for a lot of academic researchers around the country who get very little support commercializing their discoveries.

The USTAR Governing Authority is also charged with creating up to five technology outreach programs in five locations in Utah. These outreach programs will:
  • Broker ideas, new technologies, and services to entrepreneurs and businesses throughout a defined service area;
  • Engage local entrepreneurs and professors at applied technology centers, colleges, and universities by connecting them to Utah's research universities;
  • Screen business ideas and new technologies to ensure that the ones with the highest growth potential receive the most targeted services and attention;
  • Connect market ideas and technologies in new or existing businesses or industries or in regional colleges and universities with the expertise of Utah's research universities;
  • Assist businesses, applied technology centers, colleges, and universities in developing commercial applications for their research; and
  • Disseminate and share discoveries and technologies emanating from Utah's research universities to local entrepreneurs, businesses, applied technology centers, colleges, and universities.

IN THE NEWS

Economic Development Headlines

Rail-Served Industrial Park Slated for Cedar City

- A recently approved economic development area (EDA) agreement clears the way for Port 15 Utah, an industrial park in Cedar City. Developers hope the area’s railroad and highway transportation corridors, as well as the Cedar City Regional Airport, will attract businesses to the city’s first industrial park. (Utah Business Magazine)

Davis Leaders: More Jobs Needed

- Davis County's business growth needs to keep pace with residential growth, Economic Development Director Kent Sulser told local business leaders. (Standard-Examiner)

Ogden’s Ski Ambassador: 'A Gondola Would be Good for Business'

- As the unofficial and somewhat reluctant poster boy for Ogden's burgeoning ski industry, Curt Geiger has received public criticism and praise for his unabashed boosterism. Some view his vision for Ogden as a business hub served by a gondola system that connects downtown to a proposed resort on Malan's Basin and possibly Snowbasin as foolhardy. (Standard-Examiner)

Envision Utah Called Example for Nation

- A Utah group focused on regional planning has spawned similar long-term growth projects around the United States that affect 55 million people, Gov. Jon Huntsman Jr. told business leaders in Salt Lake City this past week. (Morning News)

Lehi deal: 1,850 jobs for $15M

- Utah has offered its largest economic incentive ever - an estimated $15 million - to high-tech giants Micron Technology Inc. and Intel Corp., which plan under a joint venture to add 1,850 new jobs in Lehi over the next 18 months to two years. (Daily Herald) (KSL) (Morning News) (SL Tribune)

Companies Share Global Trade Tips

- Utah business professionals with varying stakes in international trade met Friday at Neways' Springville headquarters to discuss managing their growing global interests. (Morning News)

West Desert Research Facility Gets Board's Incentives OK

- The Governor's Office of Economic Development Board on Friday approved a $350,000 incentive for the Project West Desert High Energy Astrophysics Research Facilities' second-phase work in Millard County. (Morning News)

Ogden Developer May Need $3 million in Incentives for Project

- The City Council aims to kick-start a California developer's stalled effort to put a Latino market on a city block at the center of Ogden. (SL Tribune) (Standard-Examiner)

Utah Firms Completed $9 Billion in Deals in 2005

- MountainWest Capital Network has released its deal flow report for 2005, showing Utah companies engaged in deals worth more than $9 billion, up significantly from the $3.9 billion reported in 2004. (Utah Business Magazine) (Morning News) (Digital IQ)

$28M Latino-Themed Shopping Mall

- A $28 million Latino-themed shopping mall employing up to 500 people could be coming to Salt Lake City, backed by a city loan to get it off the ground. (Daily Herald) (SL Tribune)

- Salt Lake City Council members want more information before deciding whether to approve a $3.6 million subsidy for a proposed Latino-themed shopping center. (SL Tribune) (Trib Editorial) (Morning News)

Utah Job Outlook Strong for 2nd Quarter

- Almost one-third of Utah employers plan to increase staffing levels in the second quarter of 2006, according to a Manpower Inc. survey released this week. The report adds to evidence that Utah has become a job seeker's market. (SL Tribune)

Rising Insurance, Healthcare Costs Among Top Business Concerns for CFOs

- Employee healthcare expenses top the list of worries for financial executives today, a new survey shows. (Utah Business Magazine)

Grow Utah Ventures Kindles Angel Investments in Revinetix

- Grow Utah Ventures has invested in Revinetix, a provider of data backup and recovery solutions, prompting additional investments from Grow Utah’s statewide network of angel investors. (Utah Business Magazine)

Businesses Prosper in Swelling Economy

- The state’s businesses paid out 72.6 percent more in corporate taxes during the first six months of fiscal year 2006 than during the same period last year—an indication that sales and profits are strengthening. From job growth to new home sales, Utah’s economy is starting the year on a high note, according to a new report from Commerce CRG. (Utah Business Magazine)

HK Systems to Break Ground on SLC Manufacturing Facility

- HK Systems, Inc. will break ground today on its new manufacturing facility in Salt Lake City. The company plans to close its Bountiful, Utah facility when the new building is completed later this year. (Utah Business Magazine)

Utah saw taxable sales soar in 2005

- Utah experienced its single largest increase in taxable sales in more than a decade last year, according to a new report. Wages are up and tourism and business both saw gains, all indicators of a strong economy, analysts said. (Morning News) (KSL)

Money Magnets: Venture Capitalists Have Boosted Investments in Utah Firms

- A number of Utah's homegrown and decidedly lower-tech ventures are getting some serious dough, including Handi Quilter of Bountiful, which announced Wednesday that it has received a $3.5 million investment from Utah private equity firm Peterson Partners. (SL Tribune)

Tight Labor Market is Both Good and Bad

- Utah's tight labor market continues to be a blessing and a curse for small businesses, according to a Zions Bank report released Tuesday. The bank's Utah Small Business Index fell to 107.3 in February from a revised 109.1 in January. (Morning News) (Clipper)

Western Economic Growth Slows

- Analysts expect most Western states' economies to slow a bit in 2006 and 2007, even while outperforming the national economy, according to the current issue of the Western Blue Chip Economic Forecast. (Arizona State University)