President's Message
Outdoor Retailer Summer Market Heats Up Downtown Salt Lake City
Another Outdoor Retailer show has come and gone in Salt Lake City. It is hard to let the event go by without commenting on its vast implications for economic development in our State. The influx of convention goers alone is a massive economic boom for Utah twice yearly. But as you will read on in our feature today, the long term effect is creating great new opportunities for Utah. We have already been successful at bringing several outdoor companies here. The more momentum we build in that area, the more ED wins we will continue to produce.
Another reason to be excited about visitors in our capital city is to show off all of the progress being made downtown. Downtown Rising has been such a phenomenal success and you can see evidence of it in every direction you turn. I am sure the outdoor retailers can see the investment in our infrastructure and future. Check out the progress of Downtown Rising here.
And, check out another great ranking from CNBC on Top States for Business in ’09. It is no surprise that Utah is #5 overall, with great results in the areas of business friendliness, quality of life, workforce and cost of doing business. Read more 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
President and CEO
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In the News
Study: Virginia, Utah Top List of 'Pro-Business States'
Virginia, Utah and North Carolina are the three most business-friendly states, according to an annual study conducted by Pollina Corporate Real Estate Inc. (Expansion Management)
Utah's just one of 19 states that didn't raise taxes
Utah was one of only 19 states that didn't increase taxes this year in the face of huge budget shortfalls, a new national study shows. (Deseret News)
Utah's new liquor laws being noticed by out-of-staters
Utah's new liquor laws are being noticed by out-of-state people attending the Outdoor Retailers Summer Market. (KSL)
Open less than a year, Rio Tinto in spotlight tonight
It was worth the months of political squabbling. It was worth countless hours of heated public debate over funding. When Rio Tinto Stadium debuts on the international soccer stage tonight as host of the MLS All-Star Game, Sandy City and Mayor Tom Dolan will celebrate a fitting end to their contentious quest three years ago to land Real Salt Lake's soccer stadium. (Salt Lake Tribune)
Utah ranked 5th for promoting business
Utah is in the top five states when it comes to promoting businesses. (KSL) (CNBC) (Deseret News)
Outdoor Retailer Show boosts local economy
The semi-annual Outdoor Retailer Show has the streets of Salt Lake City buzzing with activity, and that means a big boost to the local economy. (KSL)
Outdoor Retailer: Specialty stores can thrive even in troubled times, speaker says
This deep recession clearly has created a new American consumer: More frugal, receptive to direct but simple promotions, more attached to things local and regional but with little patience for things that are not sustainable. (Salt Lake Tribune)
OR Summer market now in session
The 20th Outdoor Retailer Summer Market started Tuesday and welcomes almost 1,000 vendors and tens of thousands of attendees to the Salt Palace through Friday. The Salt Lake Convention and Visitors Bureau estimates that the 23,000 attendees will generate $19 million in direct spending. (Park Record)
Hill AFB to do maintenance on Air Force UAVs
Utah's congressional delegation says Hill Air Force Base will maintain key components and systems on the U.S. Air Force's two newest unmanned aerial vehicles. (KSL)
Utah film industry has down year
The Utah Film Commission's director says the state's film industry experienced a downturn in the past year. (KSL)
Green Roadway Project could help Utah roads rev up renewable energy
A pair of inventors want to take the nation's highways and turn them into a source of green energy, with right-of-ways sporting solar panels, wind turbines and geothermal devices. (Deseret News)
Open road to growth
ST. GEORGE - The slumping economy may have slowed growth in Southern Utah lately, but planners are still putting local "smart growth" initiatives developed during the boom years to the test, particularly with the two large-scale developments that make up the "South Block." (Spectrum)
Video: Jason Mathis, Executive Director of the Downtown Alliance
Utah Policy speaks with Jason Mathis, Executive Director of the Downtown Alliance, about economic development in downtown Salt Lake City. (Utah Policy)
Farmington woos first hotel
City officials are looking to partner with Davis County to finalize a deal that will lead to the first hotel in the city. (Standard-Examiner) (Davis County Clipper)
Cedar City to host Utah rural summit Aug. 5 to 7
"Smart Strategies for Tough Times" is the theme for the 22nd Annual Utah Rural Summit, scheduled for Aug. 5 through 7, at the R. Haze Hunter Conference Center on the campus of Southern Utah University. (Spectrum)
First Wind announces financing
First Wind, the company building Utah's largest wind farm in Milford, announced Tuesday it has closed two financing transactions for a total of $191 million. (Spectrum)
Ogden company uses argon to govern body heat
Technology borrowed from the scuba diving field is causing a revolution in keeping warm on the slopes. Klymit Inc., a young firm based in Business Depot Ogden, unveiled a gas-filled vest that provides insulation that's warmer and lighter-weight than down or fabric. The secret is that the argon gas inflating the vest passes heat or cold at a much slower rate than other insulators so the wearer keeps body heat contained longer, according to Klymit CEO Nate Alder. (Standard-Examiner)
National parks propping up Utah's tourism picture
Utah mountain resorts struggle through JuneHeading into another summer holiday weekend, two sets of figures show how Utah has been hurt by the recession and how it has managed to weather the downturn pretty well. (Salt Lake Tribune)
Call center to bring 1,200 jobs to Sandy
Hundreds of new jobs are coming to Utah, but only for a little while. Still, there is some hope that at least some of the 1,200 jobs will stay permanently. (KSL) (Salt Lake Tribune) (Deseret News)
Calendar
September 9-11
ULCT (Sheraton, SLC)
September 16
EDCUtah Annual Meeting (Grand America Hotel, Salt
Lake City) (breakfast meeting)
September 19-23
IAMC (Minneapolis, MN)
October 4-7
IEDC (TBD)
October 15
Quarterly Investor Update (Jewish Community Center, Salt Lake City)
November 18
Board Meeting (Salt Lake Country Club)
December 16
Holiday Open House (EDCUtah)
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Feature Story
Utah's Outdoor Industry is Big for Business
What does the Outdoor Industry Association's Outdoor Retailer Summer Market mean to Utah?
The Outdoor Retailer (OR) Summer and Winter Markets have become the focal point of the $289 billion-a-year outdoor retail sales and services industry--where retail buyers from across the globe decide what will go on next year's shelves.
The OR Summer Market, held annually in the Salt Palace, is the four-day gathering place for the likes of manufacturers, retailers, elite climbers, paddlers, thru-hikers and anyone else enthralled by the latest in outdoor gadgets and gear. Beginning with the Open Air Demo (OAD) at Pineview Reservoir, where guys like Chuck Walker, president of Waynesborro, Virginia-based Rockfish Gap Outfitters, tested the latest outdoor recreation gear from more than 55 manufacturers and brands, to the Salt Palace convention floor, Outdoor Retailer Summer Market is billed as the world's largest outdoor sports industry gathering, with exhibits by more than 1,000 outdoor-related brands.
Truly, the OR Summer Market is gear heaven. "I test boats here that I wouldn't get a chance to test at a regional show," says Walker during the OAD. It is also the perfect venue for startup and veteran manufacturers to show off their latest innovations. Ogden-based Klymit was one of 130 new exhibitors at this year's show. The company has developed climate-controlled winter outerwear using noble gas technology as insulation as opposed to down or synthetics. Returning exhibitors included industry stalwarts such as Black Diamond Equipment, Camelbak, Garmont, Marmot, Salomon, The North Face and Clif Bar.
OR Summer Market is an economic engine, generating more than $19 million in direct economic impact for Salt Lake City. As the biggest convention Utah hosts each year, the tradeshow also generates big business for Utah indirectly as well. Beyond packing the Salt Palace with more than 23,000 attendees and exhibitors, filling hotel rooms and restaurants, the show has a significant ripple effect on the Utah economy. It offers immeasurable media exposure for Utah--four days to show off Utah's diverse landscape, wondrous recreational opportunities and exceptional business environment.
It is also a great place to recruit new outdoor-related businesses to the state. A large influx of outdoor recreation-based companies have expanded or relocated operations to Utah after having fallen in love with the climate, the people and the destination during their time at the Outdoor Retailer trade shows. Says Salt Lake Convention & Visitors Bureau President & CEO Scott Beck: "These are companies that would never have had Utah on their radar had it not been for the exposure to Utah they received while attending the Outdoor Retailer Markets for the past dozen years."
While it is difficult to say exactly how many outdoor-related companies have actually located to Utah since Salt Lake City began hosting the Outdoor Retailer Summer Market, the tradeshow has definitely had an influence on companies visiting the state. Just ask Ogden Mayor Matthew Godfrey. He's been using the tradeshow as a recruiting venue for several years and actively recruits outdoor product companies to consider Ogden for their expansion or relocation plans. Approximately 12 outdoor brands have located in the Ogden area since he became mayor and he expects many more to come. "Until this year I have never missed the Outdoor Retailer Summer Market," he says. This year the mayor actually had so many pre-arranged appointments with outdoor companies interested in the Ogden area that he sent his chief administrative officer, John Patterson, to do the recruiting at the tradeshow in his stead.
"I've had appointments with companies that are exhibiting at the show that wanted to discuss their expansion or consolidation plans. Some of them know they are just located in the wrong place," says Godfrey. "The exposure they have received to our amenities and natural resources has helped create a positive feeling about Ogden."
Godfrey also believes that having the Outdoor Retailer tradeshow in Utah has helped the state land several premier sporting events, such as the Dew Tour, XTERRA USA Championship, the World Youth Archery Championship and the World Cup Archery Championship.
Recognizing that the active outdoor recreation economy is big business, Governor Jon Huntsman designated Outdoor Products and Recreation as one of eight Utah economic clusters--groups of related businesses and organizations within industry sectors whose collective excellence and collaboration provide a sustainable competitive advantage. With well over 1,000 sports and outdoor products companies in the state, many companies are looking to Utah to house their corporate headquarters and primary operations facilities.
The state's exceptional ski industry has drawn such companies as Goode Skis, Voile Ski, Snowboard, & Bindings, Dale Boots, Black Diamond Skis & Boots, Morrell Snowboards and Revolution Snowboards. Many other winter businesses have moved their distribution to Utah as well. Scott USA, Salomon and Atomic are in Ogden. Rossignol, Dynastar and Nidecker are in Park City. The great climbing environment has brought Black Diamond, Petzl, and Liberty Mountain to Utah. Specialized Bicycle has its western warehouse in Salt Lake City and many bicycle accessory manufacturers, like Lone Peak, Lizard Skins, Black Bottoms, Reynolds Cycling and Flat Attack have made their homes here. Utah is home to many other outdoor startup companies, as well.
According to the Outdoor Industry Association (OIA), outdoor recreation ranks alongside major economic sectors like telecommunications, while dwarfing other major economic sectors in the U.S., such as pharmaceutical and medicine manufacturing, automobile and light truck manufacturing, and motion pictures and videos. Active outdoor recreation in Utah is an economic engine that:
- Contributes $5.8 billion annually to the state economy
- Supports 65,000 jobs across the state
- Generates nearly $300 million in annual state tax revenues
- Produces nearly $4 billion annually in retail sales and services across Utah, accounting for almost 5% of gross state product
Utah's spectacular recreational opportunities and world-class destinations bring in tourist dollars from out-of-state active outdoor recreation participants, but also offer exceptional close-to-home recreation for residents. In fact, the state boasts one of the highest outdoor recreational participation rates in the country relative to other states. Here's a breakdown of Utah outdoor activities, with the number of participants and the percent of Utah population enjoying them:
| ACTIVITY CATEGORY |
# OF PARTICIPANTS |
% OF POPULATION |
| BICYCLING | 409,425 |
25% |
| CAMPING & RUSTIC LODGING | 761,579 |
46% |
| FISHING | 375,196 |
21% |
| HUNTING | 173,991 |
10% |
| PADDLING, RAFTING & CANOEING | 246,132 | 15% |
| SNOW SPORTS | 310,393 |
19% |
| TRAIL | 714,023 |
43% |
| WILDLIFE VIEWING | 562,000 |
32% |
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