From: Economic Development Corporation of Utah
To: Scott Jenkins,
Subject: Economic Review -- Pent Up Demand Leads to Construction Explosion
Date: Wed Aug 27 23:20:32 MDT 2014
Body:
edcUTAH In This Issue
President's Message: Closing the Skills Gap
Investor Spotlight: C7 Data Centers
Feature Story: Pent Up Demand Leads to Construction Explosion in Salina
 
  Economic Review  
President's Message
Closing the Skills Gap Symposium Sept. 9

Utah's manufacturing employers interested in "Closing the Skills Gap" will be interested in an employer symposium Sept. 9 at 11:30 a.m. in the Ogden Weber Applied Technology College. The symposium is sponsored by the Northern Utah Workforce Regional Alliance. During the event, leaders from Pepperidge Farms will share how they are using the National Career Readiness Certificate program to close the skills gap. Other employers will present and participate in a round table with county and state leadership to help Utah manufacturers learn about resources available through the Northern Utah Workforce Initiative.

You'll also learn about how Utah's Certified Work Ready Communities initiative can help you match competent employees to jobs based on verified skill-sets. Click here for more information and to RSVP

The Northern Utah Workforce Initiative is a regional alliance of economic and workforce development specialists from the Weber Economic Development Partnership, Davis County Economic Development, Box-Elder Economic Development, Cache County Economic Development, local Chambers of Commerce, higher education, K-12 CTE directors and the Utah Department of Workforce Services.

On another note, EDCUtah is looking for a marketing event manager to fill an opening in our marketing and communication departments. This person will be responsible for planning and executing all company events, managing our participation in tradeshows and performing other special marketing projects as assigned. We're looking for a candidate with:

  • 3-plus years of experience in event planning and coordination. Specific trade show experience is a plus.
  • Proficiency with Microsoft Word and Excel.
  • Graphic design experience a plus: Some proficiency with desktop publishing and document layout programs such as InDesign, Illustrator, Photoshop and Acrobat.
  • Excellent verbal and written communication skills.
  • Ability to organize and prioritize work, meet deadlines and multi-task.

The marketing and events manager reports to Kim Frost, our executive director, marketing and communications. Resumes should be emailed to her at kfrost@edcutah.org.

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

  
  

Salina
The Love's Truck Stop under construction near the I-70 interchange in Salina is part of a major construction boom in the area. Photo source: Salina City

Feature Story
Pent Up Demand Leads to Construction Explosion in Salina

At the juncture of I-70 Interchange and State Highway 89, a 236-acre industrial site called the Salina Commercial Center, an EDCUtah SURE Site, will soon be home to a 25,000 square-foot Kenworth dealership. Nearby, Peterbilt and Freightliner are also constructing 12,000 square-foot dealerships. Across the way, two truck stops are in construction near the interchange. In total, the construction activity amounts to approximately $80 million—more commercial construction than rural Salina has seen at one time since the 1940s, when the town boomed with the growth of coal mining operations at the Convulsion Canyon Mine (now Sufco), the Salina Turkey Plant moved in and the Salina Livestock Auction opened.

"It's about time," says Malcolm Nash, economic development director for Sevier County. "We have been waiting and expecting an explosion from the pent up demand." He's referring to the fact that Salina has always been a center of trucking activity, yet the service and maintenance side of the trucking industry hasn't kept up with demand. As the area's coal industry grew, two family-owned businesses, Barney Trucking and Robinson Transport, began hauling coal to residential customers throughout central Utah. When mining operations grew and became more complex, each company expanded its fleet and grew to become modern and sophisticated trucking operations. Every day, the companies haul more than 600 loads of coal from the Sufco mine to various users in Utah and Nevada. Some of the coal is transferred to rail and shipped to customers even farther away.

But a vacuum developed as the companies expanded and diversified their trucking operations, while the growth of truck servicing options lagged, such as maintenance, repair and warranty work. Nash says the two companies were having to service their fleets in-house because local truck dealers could not take care of repairs and warranty work. Until now.

"They've been a long time coming, but we are glad these dealerships are finally setting up shops in Salina. We need them," he continues. Richfield, the county seat, has long been the recipient of most economic activity in the area. Nash says Richfield is also seeing increased commercial development, but he couldn't be happier for Salina. "It's kind of a reverse in fortunes," he says.

After governmental services, the transportation industry supports the largest number of jobs in the county, followed by education, leisure/hospitality services, mining and manufacturing. Most of the transportation jobs are tied to mining operations. The Sufco mine is Utah's oldest and most productive coal mine. Other mining operations in the county include Redmond Trading Company's salt mine near Redmond, which produces about 12,000 tons of salt per week, and United States Gypsum, which operates a gypsum mine east of Sigurd.

Agriculture is another major component of Sevier County's economy, but not to the extent that it is in other counties in the state. According to the Utah Department of Workforce Services, the county has seen year-over-year job growth of 1.2 percent, or about 91 new jobs, compared to the state average of 3.1 percent job growth. About 70 of the county's new jobs are in the professional and business services sector. Meanwhile, the county's seasonally adjusted unemployment rate is 4.3 percent, compared to 3.6 percent for the state.

Nash says recreational activities have become an increasingly important economic driver for the county. Spending by travelers increased 7.8 percent from 2011 to 2012, while local tax revenues from traveler spending increased 7.4 percent. Fish Lake has, of course, always been a popular attraction for anglers chasing trophy trout, both in the summer and winter, but the most rapidly growing recreational attractions are now the Paiute ATV Trail and the Great Western Trail systems, which both cross through Sevier County. The latter trail system was also designated Utah's Centennial Trail. It traverses approximately 4,455 miles running through Utah, Arizona, Idaho, Wyoming and Montana.

"We have more than 1,000 miles of ATV trails in the county, which brings a lot of people here," Nash explains. "In fact, ATV riders can access all of the trails in the region from Sevier County." ATVUtah.com describes the Paiute Trail as "a trail system with no beginning and no end, making it the largest in the nation." He says the Paiute Trail crisscrosses the Fish Lake National Forest and intervening Bureau of Land Management-administered land, surrounding Salina, Richfield, Aurora and many other rural communities in the county. And with a ready infrastructure, including hotels, restaurants and ATV service shops, the county stands ready to welcome and support the growing number of ATV riders that come to visit.

Richfield City's airport expansion project will be completed this fall and is another exciting development Nash hopes will spur more economic activity. The runway will be longer and will support heavier aircraft, but not the big jets. "It's a great piece of infrastructure that's being developed," he adds.

Investor Spotlight: C7 Data Centers

An EDCUtah investor since 2013, C7 Data Centers is the largest data center provider in the state. The privately-held Utah company provides state-of-the-art, high-value, high-density, multi-tenant data centers and offers cloud, IT services, production and disaster recovery solutions that empower local, national and international businesses.

In late 2013 the company completed its 95,000 square-foot Granite Point II data center, a world-class, state-of-the-art, Tier 3 data center and office complex located in the heart of the Wasatch Mountains–one of the lowest disaster risk areas in the United States. All of C7's data centers ensure multiple paths of redundant capacity in power, connectivity and maintenance events, ensuring 24/7 uptime. The data centers were designed for both current deployments and future capacity requirements with the largest and most demanding data processing systems in mind.

CEO Wes Swenson says by selecting C7, many of the company's clients have reduced their colocation costs by as much as 50 percent, while also considerably reducing their risk of downtime. Not only does Utah have lower disaster risks compared to the rest of the United States, but C7's concentrated Utah location results in lower operational costs when compared to operations in Arizona, Nevada and California and the company passes those savings on to its clients.

"We are proud that many local, national and international companies are choosing to trust C7 with some of their most valuable assets," he adds. Since becoming an investor, Swenson says C7 has enjoyed its relationship with EDCUtah and participates in economic development events while also providing valuable support to other EDCUtah investors for their data center and disaster recovery needs. For more information about C7 Data Centers, call 801-822-5300 or visit www.c7.com.

Calendar

Sept. 4
Uintah Basin Energy Summit (Vernal) Register here.

Sept. 9
Closing the Skills Gap Symposium (Ogden-Weber Applied Technology College) 11:30 a.m. The symposium is for manufacturing employers who would like additional information about closing the skills gap through the National Career Readiness Certificate and Certified Work Ready Communities programs.

Sept. 10-12
Utah League of Cities and Towns Annual Conference (Salt Lake City Sheraton)

Sept. 17
2014 World Leaders Lecture Forum with former Australian Prime Minister Julia Gillard 11 a.m. The lecture is free and open to the public. (Utah Museum of Fine Arts auditorium, 410 Campus Center Drive, SLC)

Sept. 26
Fuel Freedom's documentary, PUMP The Movie (Megaplex Jordan Common) VIP screening by invitation Sept. 23 at Gateway Megaplex. Trailer here. PUMP is a documentary that may change your attitude about fuel forever. An "inspiring, eye-opening" documentary that tells the story of America's addiction to oil.

Oct. 7
"Rather Intriguing" A Q&A with a witness to history: Dan Rather, during EDCUtah's Annual Meeting. 11 a.m. to 2 p.m. (Grand America Hotel)

Oct. 13-16
Composites and Advanced Materials Expo (Orlando) Please contact Kim Frost at 801-608-8427 or kfrost@edcutah.org for information about participating in the Utah Pavilion with EDCUtah and GOED.

Oct. 16-19
Girl Scouts of Utah hosts the Girl Scout National Convention (Salt Lake City)

Oct. 23
Wasatch Choice for 2040 Consortium 9 a.m. to 3 p.m. (Salt Palace Convention Center) Register here.

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Aug. 27, 2014

In the News

Op-ed: Export-Import Bank crucial to Boeing's Utah operations
In recent years, aerospace companies such as Boeing have expanded their manufacturing in Utah for a variety of reasons: a skilled and productive work force, a state government that promotes policies hospitable to business, a first-rate university system and an ability to attract and retain talent due to an exceptional quality of life.
(Salt Lake Tribune)

Ogden company teams with Layton contractor to sell weather data
The wheels are starting to move for an Ogden-based weather forecasting company to get off the ground and high into the skies.
(Standard Examiner)

Utah exceeds Gov. Herbert's jobs goal
During his State of the State address in January 2012, Gov. Gary Herbert set a goal of achieving job growth in Utah of 100,000 jobs in 1,000 days.
(Deseret News) (Salt Lake Tribune) (St. George News) (Standard-Examiner)

Utah company being considered to stop radioactive leak at Japanese nuclear plant
Trying to stop the leaks has certainly been a challenge. A family-owned company in American Fork has proposed a solution, and the Japanese government is listening.
(Deseret News)

Second company shows interest in Utopia
A second telecommunications company is expressing interest in a possible takeover of UTOPIA.
(Standard Examiner)

Overstock adding more than 300 IT jobs
The Governor's Office of Economic Development announced Thursday that online retailer Overstock.com will grow its Utah employee base by bringing 333 jobs to Salt Lake County.
(Deseret News)

Park City construction industry positioned for a $100 million year
The Park City construction industry in July enjoyed its fourth consecutive month of topping $10 million, putting the industry in a position that it could reach $100 million in coming months.
(Park Record)

Outdoor Retailer highlights trend of American manufacturing
A familiar phrase, once thought to be a lost relic, is being dusted off in the world of outdoor retail: Made in America.
(Park Record)

Utah jobless rate at 3.6 percent
The number of working Utahns increased significantly last month compared with the same period last year.
(Deseret News) (Salt Lake Tribune)

Westinghouse to build Utah nuclear plant
A firm seeking to bring nuclear power to Utah has reached an agreement with Westinghouse Electric Co. to design and build a 1,500-megawatt plant in Emery County.
(Salt Lake Tribune)

Ski town may face winter without popular path to slopes
The question is gripping this mountain town where celebrities gather each winter for the Sundance Film Festival and summer days glide by as placidly as kayakers on the nearby reservoir. Beneath the calm veneer, a ski resort's eviction battle over land, leases and millions of dollars has erupted into a full-on civic crisis.
(New York Times)

Utah still needs the European market, and Europe still wants Utah business
The European Union is Utah's largest export market, according to trade.gov. At this September's Utah Global Forum, Managing Director Thomas Schuck of gwSaar will tell Utahns why Europe should continue as an important exporting region for Utah businesses
(Utah Pulse)

Middle Eastern market is a place for successful growth of Utah businesses
Many have found business success in the Middle East–including Andreas Roell, co-founder and former chief executive officer of EGM Worldwide—but more is to be found.
(Utah Pulse)

If you think the water crisis can't get worse, wait until the aquifers are drained
We are drawing down these hidden, mostly nonrenewable groundwater supplies at unsustainable rates in the western United States and in several dry regions globally, threatening our future.
(National Geographic)

Paul Campbell speaking at Utah Global Forum
President and general manager Paul Campbell of Campbell Scientific, Inc. is speaking at September's Utah Global Forum. He is expected to relate the journey of Campbell Scientific to international success.
(Cache Valley Daily)

Unemployment drop, economic stimulation discussed at Site Select meeting
Site Select Plus held its partner meeting last week at the newly constructed Industrial Brush Corporation facility, located at 763 E. Commerce Drive in St. George.
(St. George News)

California to St. George, relocation of Industrial Brush Corp. adds to local manufacturing base
A new manufacturing facility and more than $11.2 million in first-year economic impact are the fruits of negotiations between the Industrial Brush Corporation and local officials to bring the California-based business to Southern Utah, via an incentive deal rich with benefits.
(St. George News)

Syberjet project receives national recognition for economic development
The Syberjet operations in Cedar City received Trade and Industry Development magazine's Corporate Investment and Community Impact award, or CiCi, and Area Development magazine's Golden Shovel award for project of the year.
(St. George News)

Utah Governor's Office of Economic Development to sponsor ITRA Global Conference in Salt Lake City
ITRA Global, one of the largest real estate organizations devoted to the representation of corporate tenants and occupiers of commercial real estate, has announced that its next conference will be held Oct. 10 – 12 in Salt Lake City.
(PRWeb)

Questions about international tax? Get answers at Utah Global Forum
For Utah businesses who want to expand internationally, the question is not whether there is a market for Utah products and services–there is. The questions often lie with navigating the barriers of legal, tax and accounting issues, all of which can make a company lose key profit margins.
(Utah Policy)

University of Utah team invents way to image brains of mice using a small needle
A University of Utah team discovered a method for turning a small, $40 needle into a 3-D microscope capable of taking images up to 70 times smaller than the width of a human hair. This new method not only produces high-quality images comparable to expensive microscopes, but may be implanted into the brains of living mice for imaging at the cellular level.
(U News Center)

Cloud computing nets $10M for the University of Utah
University of Utah computer scientists received a three-year, $10 million grant from the National Science Foundation to build and support a new facility for researchers studying cloud computing.
(U News Center)

Utah lands 86 companies on Inc. 5000 list
Utah has 86 companies listed on this year's Inc. 5000, which ranks the fastest-growing private companies in the nation. Of these, 14 companies were in the top 500 companies, which means they're included in the Inc. 500.
(Utah Business)

Cache Valley to get Utah's newest ski resort despite hurdles
John Chadwick's new ski area, Cherry Peak Resort, is slated to open sometime this winter after four years of planning and lawsuits. It's the state's first new resort built from the ground up since Deer Valley opened in 1981, and it seems there's a reason for that.
(Standard-Examiner)

Davis Conference Center inks long-term events
Three well known state organizations have committed to multi-year agreements to hold their annual conventions at the Davis Conference Center in Layton, according to center staff.
(Standard-Examiner)

Utah companies making a difference across the globe
USB flash drives, copper and metal products, blenders and family history records have seemingly little in common. They are products and services people around the world use each day, but they all share another common denominator: they are all made in Utah.
(Digital Universe)