May 20, 2008

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

President's Message

Showing Utah's Leadership at SAMPE 2008
 

EDCUtah has once again partnered with the Governor's Office of Economic Development and several private organizations to showcase and solidify Utah's position as a leader in the advanced composites industry at the SAMPE symposium this month. This week's feature article highlights the state's unique position as an international leader in the advanced composites industry, along with the local companies who are currently leading the way.

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

Beehive State's Leadership
in Advanced Composites
Showcased at Utah Pavilion During SAMPE 2008


This week EDCUtah, the Governor's Office of Economic Development (GOED) and 15 other Utah organizations will showcase the Beehive State's position as a leader in the advanced composites industry during the SAMPE 2008 symposium, May 18-22, in Long Beach, California.

This year's symposium of the Society for the Advancement of Material and Process Engineering (SAMPE) is being sponsored by SAMPE's Utah and Japan chapters. As the premier advanced composites show, SAMPE attracts business, military and higher educational institutions from across the globe, all of which are interested in the latest composites technology, applications and materials.

?With approximately 5,000 attendees and hundreds of exhibitors, SAMPE 2008 will provide an excellent opportunity for Utah to demonstrate its world-class leadership in the advanced composite materials industry,? says EDCUtah President and CEO Jeff Edwards.

A veteran of the advanced composites industry since his work at Hercules in the 80s, Edwards is personally acquainted with many of the leading players in the industry and says Utah offers the ideal environment and infrastructure for composite-related businesses, because of its access to raw materials, engineering and manufacturing capability, highly educated workforce, sales expertise and broad supply chain. Furthermore, Utah's government, business and higher educational institutions are dedicated to the growth and development of this industry. In fact, six Utah colleges and universities offer specialized programs in the composites field.

The Utah Pavilion, which is spearheaded by a GOED/EDCUtah partnership and generously funded by ATK, will feature a large swath of the many Utah organizations working together to advance Utah's dynamic composites industry. Participants and sponsors include:

  • Advanced Composites, Inc.
  • Advanced Composites Solutions
  • ATK
  • Composite Solutions LLC
  • Davis Applied Technology College
  • Direct Controls, Inc.
  • GOODE Ski Technologies
  • Hill Air Force Base
  • Hexcel
  • MacLean Quality Composites
  • Ogden Weber Applied Technology College
  • Salt Lake Community College
  • University of Utah
  • USTAR
  • Utah State University, Mechanical & Aerospace Engineering
  • GOED
  • EDCUtah

Click here for a synopsis of each of the 2008 Utah Pavilion participants.

?The participants in this year's Utah Pavilion are leveraging their leadership to create more business opportunities for the state's composites industry, promote Utah's expertise across the supply chain and recruit advanced composites companies to the state,? says Edwards. ?Several of the essential technologies used today were developed in Utah 30 or more years ago, and many of the participants and exhibitors at the annual SAMPE symposiums are well aware of Utah's rich composites history.

Gary Harter, managing director of business creation for GOED, administers the Utah Composites Cluster Initiative. He says the growth of the Utah Pavilion speaks to the strength of Utah's leadership in the industry. What's more, many of the local, national and international leaders in SAMPE are from Utah.

?There is tremendous synergy within Utah's advanced composites community, which is being fostered by the collaboration of business, academia and government,? he says. The Advanced Composites Working Group, lead by Harter and assisted by Edwards, is comprised of senior members of the composites industry and academic and government leaders that gather often to address industry concerns and determine where government can add value. The group has identified three specific initiatives that are critical to keeping the industry healthy:

  • An educated workforce
  • Research and development
  • Access to supplies of key materials and equipment

Harter says there are currently about 123 Utah companies active in one way or another with composites industry, which account for approximately 10,000 jobs and $650 million in wages, based upon figures from the Utah Department of Workforce Services.

In the 1960s Hercules Powder Company pioneered the use of early composite materials such as fiberglass and Kevlar in military missile programs. Hercules led the way in the use of carbon/graphite technology that makes up the core of today's advanced composites industry, and in the 1970s, built the first Utah facility to produce carbon fiber. Today, advanced composites are used in nearly every conceivable industry, including bicycles, medical x-ray equipment, automobiles, airplanes, skis and sports equipment, aerospace and military applications?anywhere there is a need for light weight and high strength materials.

For example, ATK uses carbon fiber in the construction of its rocket motors and aerospace parts, and the carbon/graphite water skis developed by Goode Ski Technologies, of Ogden, have won more national medals than all other brands combined. Edwards says two new Utah companies, Direct Controls, Inc. and Delta 7, are demonstrating that advanced composites have even broader applications. Direct Controls, Inc. has developed intricate, robotic manufacturing processes that are well suited for the manufacture of precision advanced composites parts, while Delta 7, using technology from BYU, has developed a composites-based bicycle frame that could revolutionize the bicycle industry.

CALENDAR

May 18-21: ICSC (Las Vegas)
May 18-22: SAMPE (Long Beach)
June 4: Golf Tournament (Wasatch Mountain)
June 9-12: AUVSI (San Diego)
June 17-20: BIO (San Diego)
June 18: Executive Committee (EDCUtah)
June 25: Quarterly Update (location TBD)
Aug. 6: OIA Thought Leader
Sept. 13-17: IAMC (Oklahoma)
Sept. 25: What's Goin' Down Up North - Northern Utah Economic Summit Thursday, September 25, 9 a.m. - 3 p.m. Utah State University Innovation Campus, North Logan. Registration form.
Oct. 9-12: CoreNet (Orlando)
Oct. 22: Quarterly Update
Dec. 17: Holiday Open House (EDCUtah)
 
In The News

Economic Development Headlines from the Past Week

Oracle Plans To Build New Global Information Technology Facility In West Jordan


To meet the needs of its growing customer base, Oracle Corporation (NASDAQ: ORCL) today announced plans to build a new Global Information Technology facility in West Jordan, Utah.

?Oracle is committed to providing our customers with the highest-level of service, and this new facility will allow us to support our growing On Demand business, as well as the technology infrastructure to support our research and development and customer service requirements,? said Oracle President Safra Catz. ?We are delighted to be creating a significant new presence in Utah.?

Oracle anticipates breaking ground on the 200,000 square foot facility during the summer of 2008 and the company expects to begin operations in early 2010. The new facility represents a $285 million dollar initial capital investment by Oracle.

The Utah Governor's Office of Economic Development offers incentives in collaboration with many different partners. Local government, utilities and the private sector along with EDCUtah all contributed to the process of bringing the Oracle high-tech jobs and facilities to Utah, which is widely recognized as having one of the most dynamic economies in the country. This Oracle facility will now join with a number of other world-class companies who have recently announced new facilities in the State. The site is expected to house around 100 employees, with wages exceeding 200% of the Salt Lake County average wage.

?We would like to thank Oracle for choosing Utah as the site for their facility,? said Utah's Governor Jon Huntsman. ?Major corporations need a well-trained and highly-skilled workforce, and the quality of Utah's workforce and our increasing focus on workforce development are crucial aspects for Oracle.? ?Oracle's commitment to substantially increase its presence in Utah is excellent news,? said Senator Orrin Hatch. ?For several years, I have been providing Oracle's top executives with details about what makes Utah such a great place to do business. Oracle is a well-run company with a history of success and this announcement underscores what a great environment Utah maintains for businesses and families.?

?Oracle will be an asset to our city,? said West Jordan Mayor David Newton. ?We are thrilled they selected West Jordan as the site for their project. Oracle is the world's largest enterprise software company, with a well-deserved reputation for offering superior employment opportunities, engaging with and giving back to the community. We look forward to our partnership with them.?

Forbes ranks SLC #2 on its list of America's '10 best cities for commuters'

- "Jobs are being added to the Salt Lake City area faster than anywhere else in the country. And with jobs comes population growth, so effective management of transportation systems will be something to watch over the next five to 10 years. The good news is that residents are amenable to carpooling, public transit and walking, with 19 percent of area commuters using one of those strategies, a big part of why the average commuter spends only 27 hours a year in traffic." (Forbes)

Economic Development in a Flash - How Micron and Intel's Joint Venture Became Utah's Largest Business Investment

- Utah scored big in 1994 when it landed Micron Technology Inc.'s globally sought-after semiconductor fabrication plant. (Business Facilities)

Work begins on industrial park

- Some developers would have considered putting off launching a $300 million industrial park ? slated to be the largest of its kind in the region ? because of the downturn in the economy. Yet Argent Group managing partner and project developer David Layton said Thursday was the "perfect" day to host a ceremonial groundbreaking of 201 Commerce Center, a 115-acre office and industrial project in West Valley City. (Morning News)

SLCC shares business acumen in India

- Small businesses in developing nations can learn valuable lessons in marketing and finance, while more industrialized nations can gain nuanced cultural insight into expanding into global markets. The SLCC institute aims to expand the college's entrepreneurial education program into the international arena, in keeping with the mission of the Governor's Office of Economic Development, which supports such programs in the interest of Utah businesses. (SL Tribune)

New Westminster Institute to Study Great Salt Lake

- The Great Salt Lake is understudied, says Westminster College researcher Bonnie Baxter, who is the director of the college's new Great Salt Lake Institute. She says in the lake right now could be organisms crucial to solving our energy crisis, such as hydrogen producing microbes, algae and other organisms that could be used for biodiesel. (KCPW) (Morning News)

Under the microscope

- Two years ago, the state, Utah business leaders and other entities started the program to boost the economy. The aim is for researchers at USU and the University of Utah to use their findings to start high-tech companies. USU's researchers are exploring biofuels, nutrition, sensing and imaging. Each group had identified potential products and services to bring to market. (Herald Journal)

Progressing on schedule

- A hotel, conference center and restaurant predicted to bring appeal to Logan's South Main has steadily been going up over the past few months. What will be a SpringHill Suites by Marriott, major conference center and Elements restaurant are scheduled for completion this winter in what's been dubbed the Riverwoods complex area. (Herald Journal)

Full steam ahead: Raser begins work on geothermal power plant

- Raser Technologies Inc. on Friday had a ceremonial groundbreaking for a geothermal plant in Beaver County ? the first new geothermal facility in the state in more than two decades and the first in the nation to use new technology that allows energy to be captured from sites with temperatures lower than the typical geothermal facility. (Morning News) (Utah Business Magazine)

New Expo Hall opens at center

- ?Positive economic impact.? That's how Davis County Commission Chair Louenda Downs characterized opening of the new Eclipse Expo Hall, Friday afternoon. Following a 40-minute dedication and ribbon-cutting ceremony, the crowd of several hundred poured into the new exposition space for the Northern Utah Recreation Expo. (Davis County Clipper) 

Analysis: Italian waste proposal stokes fear of a toxic precedent

- For many of those familiar with the industry, nothing less than the whole system of managing low-level nuclear waste is on the line - the ability for states to say "no" to Italian waste just as they can to waste from Iowa or Idaho. In the big picture, they argue, nothing less than a national policy on government control over nuclear material is at stake. (SL Tribune)

Billings says economy is denting city budget

- The city is experiencing the pinch of a slowing economy, said Mayor Lewis Billings on Tuesday, and it shows in next year's budget. But the mayor said he doesn't recommend raising taxes to cope with the downturn. (Morning News)

Utah job growth leveling off, but stays ahead of U.S. rate

- Utah's job growth in the year that ended in April slipped to 2 percent, down only slightly from 2.1 percent in March but continuing a pattern of decline. The state created 24,800 jobs in the period, but its job-creation rate is down sharply from a peak nearly two years ago. In the period, which ended June 30, 2006, the state's economy added 54,000 jobs, for an employment growth rate of 5.4 percent. (SL Tribune)
 

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