Welcome to Utah!

Presented by Jeff Edwards

to the Utah Broadband Advisory Council

July 19, 2011

c

EDCUtah Mission

To serve as a catalyst for quality job

growth and increased capital investment

by assisting in-state companies to grow

and recruiting out-of-state companies to

expand and relocate in Utah.

c

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 2

The Utah ED Process

GOED

Local ED

EDCUtah

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 3

Supporting organizations:

• Business Community• Universities/Colleges• USTAR• Chambers of Commerce• Industry Associations• International Team

• GOED International Team

• World Trade Center Utah

• Real Estate Sites• Demographics• Labor Market Profiles• Prevailing Wage Rates• Tax Rates• Utility Rates• Infrastructure Capability• Current Investment• Legislative Priorities

• Cost of Living• State & Local Incentives• Competitive Climate• Education Data• Transportation• Local Elected Officials• Local Business Leaders• Tech Developments• Quality of Life

Information Available on Utah

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 4

Recruitment Results (2010-2011 Fiscal Year)

• Jobs Created (recruitment & expansion) 7,263 • Jobs Retained 1,364• Square Footage 3,150,072• Headquarters 5

• Capital Investment $795M

• Site Visits 118

• Total Open Projects 246

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 5

T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 6

Why Do Business in Utah?

Recent Utah Recognitions

• Salt Lake City – Top 15 New Cities in World

– Fortune, July 2011

• Utah Ranked #1 Best State for Business – Forbes.com, 2010 Best States for Business

• #1 Best Managed State Government – Pew Charitable Trust, 2008 Grading the States

• Utah #2 Best Business State–Pollina Corporate, 2010 “Rebuilding American’s Economic Power”

• Salt Lake City 3rd Best Performing City in America – Milken Institute, 2009 Best Performing Cities Index

• Utah Ranked 5th for America’s Top Business States – CNBC, 2009 America’s Top States for Business

• #1 Utah Best Quality of Life– Business Facilities Magazine 2010

Central Location in Western US

• 3 major interstate highways

• 1-day to 2-day delivery to western U.S.

• Full-service customs port of entry

• 2 major rail lines

Convenient Airport Access & Travel

Source: Salt Lake Airport Authority

• Delta’s 2nd largest hub• 10 min. from downtown

Salt Lake City International Airport• 700+ daily flights• Direct to Tokyo & Paris + Mexico & Canada

Low Cost Business Environment

4.9 5.1 6.0 6.7 6.9 7.310.9

0.0

5.0

10.0

15.0

UT ID NM AZ CO NV CA

Electricity

3.8 3.8 4.3 4.5 5.06.4 6.6

0.0

5.0

10.0

UT ID CO NM AZ NV CA

Industrial Rates ($/sf)

19.3 22.0 24.3 26.1 28.1 28.5 32.2

0.0

20.0

40.0

ID UT NM CA CO AZ NV

Office Rates ($/sf)

95.2 99.6 100.3 100.6 103.4

133.3

162.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

NM, Albuquerque

AZ, Phoenix NV, Las Vegas

UT, Salt Lake CO, Denver CA, Los Angeles

CA, San Francisco

ACCRA Cost of Living Index

Source: ACCRA Cost of Living Index (Q2 2010)

High Quality Workforce

Youngest state in the nation

• 20% of Utah’s population is enrolled in grades K-12!

• Median age – 29

Highly educated

• 37.1% with college degree

• 91% with high school diploma

Strong work ethic

• Average turnover rate – 11.2%

• Fewer sick days – 6th healthiest state

• Fewer work breaks – lowest percentage of smokers in the U.S.

Sources: Decision Data Resources, The Employers Council, United Health Foundation

The Gateway

Strong Higher Education

College graduate retention = 75% native & 43% non-native

190,000+ students statewide

• 9 public universities

• 4 private universities

• 10 UCAT campuses

w/60,000 students

Sources: Angelou Economics

High World Language Skill Set

Facts:

• Residents speak 90% of the world’s written languages

• 60% of public school students study a world language

• 180 languages are spoken by U of U students

• 80+ language courses are offered at BYU

• 77% of BYU students speak a second language

• 47% of BYU students have lived outside the U.S. for 1+ years

Sources: Utah State Office of Education, University of Utah, Brigham Young University

“Per capita, Utah is the most linguistically diverse region of the U.S.”

-Time Magazine

Competitive Labor Market

Competitive labor market and competitive business costs

Utah’s wages = 90.3% of the national average

• Utah avg. wage = $38,160

• National avg. wage = $42,270

Utah unemployment = 7.3%• National unemployment = 9.1%

Source: Bureau of Labor Statistics (May 2008 wage data, August 2009 unemployment data)

Downtown Salt Lake City building

State of Utah Tax Incentive Programs

• EDTIF

• REDI

• IAF

• Custom Fit

• Research Tax Credits

• Recycling Zones

• Sales Tax Exemption

• Enterprise Zones Tax Credits

Incentives available for both existing Utah companies & companies new to Utah

Business Leaders in Economic Clusters

• Life Sciences• Myriad Genetics• ARUP Laboratories• Edwards Lifesciences

• Software & IT• Adobe• eBay• L3 Communications

• Aerospace & Aviation• Hill Air Force Base• ATK• Hexcel Corporation

• Outdoor Products & Recreation• Salomon• Rossignol• Black Diamond

• Defense & Homeland Security• Hill Air Force Base• ATK• Northrop Grumman

• Financial Services• Zions Bank• Wells Fargo• Goldman Sachs

• Energy & Natural Resources• First Wind• Rocky Mountain Power• Questar Gas Corporation

• Competitive Accelerators

Recent Project Wins

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 17

• Adobe

• EMC

• Cephalon

• Duncan Aviation

• First Wind

• Hexcel

• eBay

• Reckitt Benckiser

• RBS Securities

• ITT Integrated Systems

• Specialized Bicycle

• Fairchild Semiconductor

• Global Parts Network

• O’Reilly Automotive

• Boart Longyear

• Quality Bicycle Products

• Northrup Grumman

• Goldman Sachs

• Merit Medical

• Nelson Laboratories

• GSL Mineral

• Edwards Lifesciences

• GE Financial

• Oracle

Emerging Trends

• Site Selectors report seeing increased activity

• Diverse manufacturing adds strength

• “Reshoring” emerging

• National media making a difference

• Geography matters – fuel prices

• Neighboring states challenges – NV, AZ, CA

E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 18

T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H 19

Questions