edcUTAH June 16, 2009
Newsletter Archive
Subscribe
Unsubscribe
Economic Review
Jeff Edwards, president & CEO of EDCUtahPresident's Message
Cedar City Celebrates New High Speed Fiber Optic Network with Ribbon-Cutting

On May 28, 2009 Cedar City held a ribbon-cutting for InterLinx Communications' fully redundant fiber optic network. We congratulate Mayor Gerald R. Sherratt on this significant economic development advancement for Cedar City. The transition to more high-tech broadband translates to more high-paying jobs. The groundbreaking also celebrates Cedar City's growing technology infrastructure and central location between Salt Lake City and Las Vegas. What's more, it gives Southern Utah another key recruiting tool when courting companies looking to relocate or establish business.

On another subject, last Thursday EDCUtah held its Quarterly Investor Update at Rio Tinto Stadium in Sandy. It was exciting to be in Real Salt Lake's home stadium and we are grateful for the opportunity to hold our meeting there. William Lasher, senior director, state and local taxes for eBay Inc., addressed our group. eBay Utah employs over 1,000 people in two locations, one in Draper City and the other in South Jordan. The Draper customer service center operates 24/7 365 days a year and handles high level account management and fraud investigations. In South Jordan, eBay is building a 250,000 square-foot mega data center on a 60-acre site for its team of technical workers.

eBay recently announced the addition of 200 employees to its Draper customer service center. Mr. Lasher cited numerous reasons to be in Utah, such as our premium workforce, reliable energy, business friendly environment, progressive tax policy, incentives, fast track permitting, openness and honesty, and favorable weather. eBay is an excellent corporate citizen and it is thrilling to see the company grow its operations here.
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" link on the bottom of this page. Enjoy!

Jeff Edwards

Jeff Edwards
President and CEO

Investor Spotlight: Salt Lake Community College

Salt Lake Community College (SLCC) is one of Utah's fastest growing educational institutions. Fall enrollment is up 26 percent over last year and the school is growing exponentially. In May SLCC graduated over 4,000 students--its largest graduating class--which placed it fourth in the nation for the number of associate degrees awarded. Credit and non-credit classes at SLCC allowed the school to serve more than 60,000 students last year.

In 2009 SLCC provided workforce education and training to 35,000 students. The economic impact of SLCC's workforce development is significant. "SLCC workforce training has increased regional income by over $850 million dollars," says President Cynthia Bioteau. Last year SLCC partnered with 73 companies to provide customized training to 1,135 students/employees in fields such as manufacturing, health care, aviation and automotive technology. SLCC also provided short-term intensive training to 484 companies and 672 students/employees during the same period.

As an EDCUtah investor since 1990, SLCC and EDCUtah enjoy a symbiotic relationship. "It's a very circular type of partnership and collaboration," Bioteau notes. "We leverage educational resources, human and intellectual capital with business synergies and that is largely what EDCUtah does, as well. I believe the creative and energy forces of EDCUtah are a large part of why Utah has maintained its economic and technological advantage."

Bioteau serves on EDCUtah's Board of Trustees and Executive Committee. She says her role there is to be a connector, helping EDCUtah leverage the educational resources and workforce training that SLCC provides to the community.

The school operates 14 campus locations and offers more than 120 degree programs, as well as continuing education, apprenticeships and other options to help students achieve their educational objectives. During the 2008/2009 school year the Women's Business Institute at SLCC provided 120 counseling sessions, served 15 new, start-up businesses, provided outreach to Sudanese refugees for business start-up programs and trained 60 low-income women to create and sell textiles in their own communities and the U.S. through the Women's India Trust.

"Our vision is to become the premiere comprehensive community college in the nation," says Bioteau.

In the News

Utah ranked No. 1 for expected economic recovery
The second edition of "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index" ranks Utah 1st (again) for economic competitiveness and expected economic recovery. (Utah Business Magazine)

EBay to add 200 jobs at Draper facility
EBay has taken Utah up on tax incentives offered in May and will expand its customer-support operations in Draper by 200 more employees, according to an announcement made Thursday at the monthly meeting of the Governor's Office of Economic Development Board. (Deseret News) (Salt Lake Tribune) (KSL) (Utah Business Magazine)

S.L. ranks 18th on list of best places to live
Salt Lake City ranks 18th among cities with populations between 100,000 and 200,000 in a list of "best places to live and work for young professionals" produced by Next Generation Consulting. (Deseret News)

Polishing a Diamond in the Rough
The revitalization of Ogden is a lesson for every municipality in America. In little more than a decade, this formerly shabby low-rent city has been transformed into a top tourist destination, a host for world-class athletic events and a still-growing relocation center for international companies that make gear, apparel and accessories for skiers and snowboarders. (Utah CEO Magazine)

Intermountain, Geisinger share the spotlight in Obama talk
President Barack Obama on Thursday turned the spotlight on healthcare IT leaders Intermountain Healthcare in Salt Lake City and Geisinger Health in rural Philadlephia. "We have to ask why places like the Geisinger Health system in rural Pennsylvania, Intermountain Health in Salt Lake City or communities like Green Bay can offer high-quality care at costs well below average, but other places in America can't"… (Healthcareitnews)

Canadian, U.S. officials push for western energy corridor
Canadian premiers and United States governors attending the Western Governors' Association yearly conference are pushing for a cross-border Western Energy Corridor. If the plan pushes through, it would be the largest in the globe to develop both non-renewable and green energy options. (AHN)

Swaner Eco Center achieves Platinum LEED Certification
The Swaner Eco Center, a stunning new 10,000 square foot state-of-the-art facility that promotes environmental awareness, learned Friday, June 12, that it will receive a Platinum LEED (Leadership in Energy and Environmental Design) Certification from the US Green Building Council. It is a prestigious honor held by only a few dozen buildings in the United States. The Eco Center is the first Utah project to achieve platinum certification in the New Construction division; it received all 61 points it applied for. (Utah Business Magazine)

Delegation Visits Japan, Showcases Utah Opportunities
A delegation of business and government leaders visited Japan last week for the inaugural Delta Air Lines' non-stop flight from Salt Lake City to Tokyo. (World Trade Center Utah)

Salt Lake City Hosts Peruvian Delegation
A delegation from the Regional Government of Piura (Peru), headed by Regional President Cesar Trelles Lara, was hosted by the Utah World Trade Center, Governor's Office of Economic Development and the Salt Lake Chamber last week. (World Trade Center Utah)

Utah will be stage for Mars in new Disney Pixar film
First as the planet Vulcan and now the red rocks of Mars, Utah has become Hollywood's destination spot for depicting exotic intergalactic worlds. (Salt Lake Tribune)

Disney/Pixar to produce new animated film in Utah
Utah's new movie incentives bill has landed the state its first big-time motion picture project. (KSL)

Feds consider backing Utah geothermal plant
PROVO -- Raser Technologies Inc. says it has qualified for government-backed loans to triple the size of a geothermal power plant in the central Utah desert. (Forbes)

Algae fuel prospects bloom
CEDAR CITY -- After a year's worth of planning and researching as well as starting his own business, entrepreneur Robert Fulton is on his way to seeing his idea of algae used as a bio jet fuel take off. (Spectrum)

Huntsman welcomes governors
PARK CITY -- Gov. Jon Huntsman Jr. welcomed members of the Western Governors' Association here for their annual meeting as outgoing chairman, but didn't stick around for the afternoon's policy discussions. (Deseret News) (Salt Lake Tribune)

SLCC conference offers help with financing for small businesses
SANDY -- With the economy in flux, lots of Utah small-business owners are looking for a way to gain an edge and get their livelihoods moving forward despite the economic challenges they face. About 150 entrepreneurs and aspiring business owners hoped to find that edge at the "Financing Your Business" conference Thursday at the Miller Campus of Salt Lake Community College. (Deseret News)

To Market, to market to buy, eat and greet
Bags of fresh walnuts from the two trees in Grant Jensen's backyard were going fast on the opening day of the People's Market -- much to the young entrepreneur's delight. (Salt Lake Tribune)

Utah part of college's 40 states in 40 days project
Ten Belmont University students and two faculty members are traveling more than 9,300 miles this summer — 40 states in 40 days — to define what it means to be an American. (Deseret News)

Ernst & Young Names 2009 Entrepreneur of the Year Awards Recipients
Some businesses start up in a garage, some in a conversation, some spur from other companies, but they all start with one thing—a good idea. Utah is saturated with people who have dreams and good ideas, but also the vision needed to turn those dreams and ideas into realities. It is in honor of these visionaries that Ernst & Young held its annual Entrepreneur of the Year awards program last Friday, June 12. (Utah Business Magazine)

Construction Continues on O.C. Tanner's Upscale Store
O.C. Tanner is anticipating the grand opening of its flagship store in downtown Salt Lake City this September. (Utah Business Magazine)

Rural Utah Communities Focus on Entrepreneurship
The Governor's Office of Economic Development has awarded a $10,000 Rural Development Grant to the Kanab Chamber of Commerce to support its efforts to develop local entrepreneurs. (Utah Business Magazine)

Calendar

June 17
Executive Committee Meeting (EDCUtah)

July 20
OIA Thought Leader (TBD)

July 21-24
Outdoor Retailer Summer Market (SL Convention Center)

August 10-13
AUVSI (Washington, D.C.)

edcUTAH Investors
Current Investors
Why Be an Investor?
Board of Trustees

The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development.

If you prefer not to receive this newsletter, please click Unsubscribe below.

Your comments and suggestions regarding this newsletter are always welcome.

GOED News
Newsletter Archive
Subscribe
Unsubscribe

Feature Story
Education Essential to Economic Growth

Educational and workforce training opportunities are significant drivers of economic development and the future of Utah's economic growth. Indeed, an educated workforce--or the lack of it--will largely determine the types of jobs that can be recruited to the state and the level of wages that will be available in the future.

"There are some real strong ties between educational opportunities and the ability of a community to grow economically," says EDCUtah President and CEO Jeff Edwards. "Education is directly related to workforce preparation and the ability of a community to fill jobs in manufacturing, engineering, information technology, life sciences and everything in between. We must develop a more competitive workforce if we are to strengthen Utah's economy and maintain our competitive edge."

Despite the fact that Utah has one of the most educated populations in the nation, compared to national and state averages (over 90 percent of Utahns have at least a high school degree, while over 55 percent have attended some college and more than 28 percent have earned a Bachelor's degree), a unified partnership is necessary between businesses, educators, and policy makers if Utahns are to thrive and prosper in the ultra-competitive global economy.

Recognizing the need to prepare Utah's workforce for 21st century jobs, in 2007 Utah Governor Jon Huntsman began to explore opportunities to improve the preparation of Utah's workforce, from early education opportunities to the re-training of retirees. His focus resulted in a number of studies and analyses, including the "21st Century Workforce Initiative," a multi-year effort to map out the strategic alignment of state systems involved in developing 21st century workforce talents and skills.

In March the Utah State Board of Regents established a new directive to focus on economic development. Associate Commissioner of Higher Education Cameron Martin has been tasked with tying Utah's institutions of higher education to Governor Huntsman's industry cluster initiative.

"Higher education plays a critical role in the state's economic success. According to the National Center for Higher Education Managements Systems (NCHEMS), the correlation between personal income and educational attainment is exceptionally high at .83. In 1980 the number was .64, illustrating how educational attainment has become a critical factor to the state's economic success," says William A. Sederburg, Utah's commissioner of higher education and CEO of the Board of Regents.

At present, Sederburg says, a representative from higher education, the Department of Workforce Services, the Governor's Office of Economic Development and USTAR have been meeting to develop a partnership plan that will accelerate growth in Utah's economic clusters. This is a pilot initiative that aligns higher education institutions with specific industries. As it is introduced and repeated, he expects it will become a template for action that is reliable across all clusters and will ultimately be an important engine for job creation and economic growth in Utah. The next Regents' meeting in July will focus specifically on economic development from a higher education perspective.

Edwards hails the initiative as an important step in aligning Utah's educational resources to help Utah employers and the state's workforce become more competitive. "Every part of workforce preparation feeds the economy in a different way," he says. EDCUtah's relationship with the state's educational institutions is also important to economic development. During site visits to the state many companies want to know if they will be able to find a sufficiently educated workforce to meet their needs. To address such questions, EDCUtah arranges one-to-one interactions between visiting companies and Utah's higher education leaders whenever possible. "They are very positive experiences and really show the interrelationship between Utah's educational institutions and its businesses," Edwards says.

Utah's system of higher education includes nine public colleges and universities, a number of private institutions and 10 Applied Technology Colleges that partner with the state-funded Custom-Fit Training Program. Many of Utah's higher education institutions recognize the relationship between education and economic development and have joined EDCUtah as investors. They include:

What's more, five leaders from Utah higher education serve on EDCUtah's Board of Trustees. They are:

  • Utah Commissioner of Higher Education William A. Sederburg
  • President Cynthia Bioteau, Salt Lake Community College
  • Dr. Lorris Betz, University of Utah
  • President Stan L. Albrecht, Utah State University
  • President F. Ann Millert, Weber State University

President Bioteau and Dr. Betz also serve on EDCUtah's executive committee. Conversely, Jeff Edwards serves on the Board of Trustees for Salt Lake Community College. He says of all the educational institutions, community colleges have the broadest impact on workforce development because they offer everything from basic skills training to industry-specific programs as well as a gateway to four-year programs.

Salt Lake Community College (SLCC) President Cynthia Bioteau echoes those sentiments, saying that Salt Lake Community College serves as a gateway to economic development. "The Mission of Salt Lake Community College is to work hand in hand with local businesses to provide up-to-date training and educational opportunities," she adds.

While Utah has one of the highest graduation rates in the country, at approximately 89 percent, there are still concerns. Many of the non-graduates are minority students that will be locked into low paying jobs without additional job training or educational opportunities. Another concern centers on the high number of students that enter Utah colleges but leave without obtaining degrees. Says Edwards: "We need to find ways to improve both the high school and college graduation rates. We need every worker we can get--people with above average skills to meet the jobs we are trying to bring in to the state,"

Despite these challenges, Edwards continues to be optimistic when it comes to Utah's educational future. "We hear from companies and consultants regularly that Utah has one of the brightest workforces in the country. Whether we are dealing with a high tech manufacturer, R&D biotech company or large scale distribution center, we have the ability in Utah to bring educated, motivated and productive employees to the table, which is not the case in every state," he says. "The most important thing EDCUtah can do is bring quality employers to the state that utilize our talent-base and thereby support all of our great educational institutions."

edcUTAH