Since the first quarter 2004 Utah’s economy has been racing. Job growth in the first quarter of 2007 was 4.5 percent high than for the first quarter of 2006, more than triple the rate of the U.S. overall. In the last year alone the state’s robust economy added more 54,000 jobs.

More than 14,000 of those new jobs came in the construction industry, proof that Utah’s building boom is bucking the national trend. Likewise, Utah added more than 5,000 new manufacturing jobs, a growth rate better than 4 percent.

Real total personal income, the number economists consider to be the clearest measure of current economic activity reached $74.4 billion in the third quarter of 2006, an increase of the year prior of 4.9 percent, and 1.3 points better than the national rate.

Utah’s average payroll wage reached $34,000 in 2006, making it 38th in the nation. It grew 1.3 percent over the year prior. Utah’s pay averages 83 percent of the national average.

All these factors have combined to make for a housing market that makes locals swoon.

In the first quarter of 2007, the average home price in Utah grew 17 percent, making the state tops in the nation for real estate growth. This after Utah trailed the nation in real estate appreciation in the calendar year 2003. That’s from 50 to 1 in four years.

To what do we attribute this boomtime?

Part of the answer  systemic.

Utahns enjoy a high quality of life. The fertility rate is the highest in the United States, and long has been. Utah’s total population growth in 2006 was 2.4 percent, ranking it sixth in the nation. And the inhabitants enjoy good health and long lives. The life expectancy in the state is the nation’s third highest. At 28.5 years, the median age is the nation’s lowest. Its household size is the nation’s largest. And the populace is well educated. Fully 91 percent of the state has a high school diploma and 27 percent hold a bachelor’s degree.

The economy has also grown thanks to a sharp rise in energy prices and natural resources, which the state enjoys in abundance.

There is also an x-factor at work in the state’s current boom. It may be an optimism that starts at the top.

Site selectors… the elite who recommend where to place new business operations… say that Utah Governor Jon Huntsman, Jr. is the state’s biggest advantage.

Certainly Governor Huntsman is uniquely placed among those holding the statehouse. Fluent in Mandarin Chinese, Governor Huntsman is also Ambassador Huntsman having served as ambassador to Singapore. He was a trade minister to East Asia during President George W. Bush’s administration. Huntsman relied on his chops as an ambassador and negotiator when he received a state visit from the (former) President of Mexico Vincente Fox in May 2006. No matter who visits or where he goes, the governor talks up the State.

The governor’s optimism has proven contagious. In first quarter a survey by public opinion pollster Dan Jones & Associates business people in Utah are upbeat about the future. Some 50 percent of those polled rated their optimism about the financial futures of their companies as a seven or eight on a 10 point scale. Another 33 percent rate their company’s future at a nine or 10! In terms of capital spending, 71 percent said that they anticipated spending about the same or somewhat more in the first quarter. When it comes to adding employees, 47 percent said they expected to increase somewhat their headcount in the coming quarter.

“One of the nation’s tightest labor markets is forcing wages higher, good news for Utah workers,” says Jeff Thredgold, president of Thredgold Economic Associates. “The Utah real estate sector is healthy, with more moderate price appreciation expected over the next 12-18 months.”

Employment

2007 remodel of the Wells Fargo Building

In 2006 funds earmarked by the State legislature for the USTAR (Utah Science, Technology and Research) initiative began flowing. “USTAR is a far-reaching effort to bolster Utah’s economy with high-paying jobs and keep the state vibrant by recruiting world-class research teams in carefully targeted disciplines that have the potential to grow the economy through innovation and incubation,” says Jeff Edwards President and CEO of the Economic Development Corporation of Utah.

Technology

• $50 million went to initiate the planning and design of a Bio Innovations Research Institute at Utah State University and a Neuroscience and Biomedical Technology Research building at the University of Utah.
• $15 million was allocated for the hiring of “all-star” research teams to complement existing strengths at the respective research universities.
• $4 million funded development of a state-wide technology outreach program.

Sector Performance

Construction: Utah’s construction sector is booming and netted more jobs than any other. Roughly 14,500 construction jobs were added in 2006. This translates into a vigorous growth rate of nearly 15.3 percent. About 100,000 people are employed in construction.

Trade/Transportation/Utilities: This sector of the economy saw an increase of 8,800 jobs over the past year, a growth rate of 3.8 percent. Roughly 240,000 Utahns work in this sector.

Manufacturing: Utah gained an estimated 6,100 manufacturing jobs in 2006, a growth rate of 2.6 percent. There are currently about 125,000 manufacturing positions in Utah.

Information: Publishing, motion picture and sound recording, telecommunications, and Internet service providers make up this information sector. Current employment in this sector is about 32,800 positions, a net decline of 200 jobs from the year prior.

Financial Activities: Growth in financial activities was strong in the past year, with 3,400 new positions added. Nearly 74,000 people in the state are employed in financial activities, an increase of 4.8 percent over 2005.

Professional and Business Services: The professional and business services sector, which includes activities such as legal services, architecture, engineering, and employment services, saw employment rise by a sizeable 9,200 jobs in the most recent 12-month period to 164,000 positions. This represents a growth rate of 6.0 percent.

Education and Health Services: Growth in this sector at 4 percent trailed slightly the overall 4.5 percent job growth rate in the State, with an increase of 5,200 positions. Approximately 140,000 individuals work in this sector.

Leisure and Hospitality: The economy added some 2,900 jobs in the Leisure and Hospitality sector, a growth rate of 2.8 percent. Roughly 109,000 Utah residents work to feed, entertain, and accommodate both visitors and locals alike.

Government: The three levels of government—federal, state, and local—account for a combined 18 percent of the non-farm jobs in Utah, and grew a modest 1 percent in 2006. Government now employs approximately 212,000 Utahns.

Other Services: Auto repair, personal care, and non-profit organizations are some of the employment categories in this sector. Employment in other services was up 5.1 percent and now totals 35,600 positions.

Job Growth

Strong job growth and tighter labor markets go together like peanut butter and jelly. And Utah’s current labor is no exception. Utah’s unemployment rate was 3 percent in May of 2006 and a miniscule 2.5 percent in May 2007! That’s the lowest on record in Utah and the lowest in the contiguous 48 states.  55,000 new jobs were created in 2007.

It’s a testament to the strength of the economy that the Utah jobless has dropped even while the State has enjoyed a record inflow of new residents.

That’s great news for job seekers. But not so good for businesses looking to hire and expand. Small businesses are disproportionately affected. Zion’s Bank Small Business Index for Utah, which weighs 14 factors to predict the chance for small business success declined through four quarters in 2006 and the first two quarters of 2007 largely because of the tightness of the labor market.

Economic Growth

Strong Utah economic growth and heavy inflows of new residents has led to rising home values. In the Salt Lake MSA (metropolitan statistical areas) the median sales price of homes in the Salt Lake MSA rose 12.3 percent in 2006.

The broader data of the Office of Federal Housing Enterprise Oversight (OFHEO) noted an average U.S. home price rise of 4.25 percent during 2006. The average Utah home price rose 17.01 percent, ranking Utah first among the 50 states. Part of the gain is due to slack being taken up in the Utah housing market. Over the last five years home price appreciation has totaled an average of 48.29 percent, which trails the five-year national average of 53.53 percent.

By comparison, the average home price during the past five years rose by 93.76 percent in Arizona, 95.75 percent in Nevada, 21.15 percent in Colorado, 64.25 percent in Idaho, and 60.96 percent in Wyoming. Such an analysis suggests that home prices in Utah still have room to run.

Outlook

“The Utah economy continues to rank with the best in the nation, a position likely to be maintained over the next 18 months,” says Jeff Thredgold. Favorable interest rates, coupled with positive state-wide employment figures, can help ensure continued growth in Utah.

 

                                                                                         Technology

 

Electrical currents shown by an Inverse EEG Application

Pop quiz. What does the following list of technological innovations have in common? The first electronic hearing aid (Harvey Fletcher) The first red-green electric traffic light (Lester Wire) The first electronic television (Philo Farnsworth) The first electronically-amplified guitar (Alvino Rey) The first computer game (Nolan Bushnell) The first computer graphics (Professors Evans and Sutherland) The first artificial arm (Stephen Jacobsen) The modern word processor (Alan Ashton & Bruce Bastian) ARPANET (precursor of the Internet) The first artificial heart (Dr. Robert Jarvik) The answer is that all the above were developed in Utah or by Utahns. Add to the list the many famous tech companies founded by Utahns including Pixar (Ed Catmull), Adobe (John Warnock), Silicon Graphics and Netscape (Jim Clark), Novell, Iomega, Folio, MegaHertz, and others. The technology industry has long been an important component of Utah’s economy… as history shows Utahns are natural entrepreneurs and problem solvers… and indications are that technology will continue to pace the State’s economy for years to come. For instance, Utah ranks 17th nationally among the 50 States, the District of Columbia and Puerto Rico, for per capita employment in the high-tech industry, according to Cyberstates 2006: A Complete State-by-State Overview of the High Technology Industry, a study by the American Electronics Association. Utah also ranks 12th in electromedical equipment manufacturing employment, 13th in Internet services employment, 13th in software publisher employment, and 17th in communications equipment manufacturing employment, according to the report. Raw numbers tell Utah’s tech story, too. Currently 5.3 percent of the state’s employment is in the tech sector. And Utah exported about $1 billion in high-tech goods in 2005, accounting for approximately 16 percent of the State’s exports. Today more than 4,300 information technology and life science companies operate in the State, an increase of 10.4 percent from Sept. 2005 to Sept. 2006. Among the western states, only Oregon had a faster percentage gain. When measured by tech companies per capita Utah has 1.86 tech companies per 1,000 residents, nearly 47 percent higher than the U.S. average. Combined, Utah’s tech and biotech companies employ nearly 63,000 Utahns and generate more than $3.4 billion in annual wages. This vitality has attracted the admiration of many outside the State. A report from Kansas City’s Kauffman Foundation… the most prominent keeper of the America’s entrepreneurial flame… named Utah as tops for economic dynamism, second in investor patents, four in fastest-growing firms, and fifth in venture capital. All this in an affordable place to do business. Princeton, N.J.-based site selection firm The Boyd Co., in a recent survey of the cost of doing business, ranked 50 metropolitan areas using such variables as wages, the cost of utilities, real estate, equipment, and corporate travel, and found Salt Lake City to be the 11th most affordable. USTAR Technology leadership can just happen to a State. Witness what Microsoft has done for the Puget Sound and Washington State. But absent a company like Microsoft, or the yeasty and unique environment of Silicon Valley, ongoing technology leadership is something that must be planned for and nurtured. Utah’s government leaders realized this and in March 2006 enacted and funded Senate Bill 75, aka the Utah Science Technology and Research economic development initiative (USTAR).  A plasma disruption in Fusion Data USTAR is meant to enhance collaboration between Utah’s tech companies and Utah’s universities, with special emphasis on areas where Utah already enjoys competitive advantage. The goal is to get ideas out of university labs and into commercial markets, and thereby increase the number of high-quality, high-pay jobs in Utah. The preliminary target areas for the University of Utah and Utah State University facilities include: Nano-technology – bio-sensors; Biomedical device, innovation; IT networks and memory; Imaging technology; Diagnostic imaging; Personalized medicine; Circuits of the brain; Fossil energy; Bio fuels; and Directed energy sensor initiative. Teams for these target areas, some of which will employ 50 or more scientists, researchers, lab assistants, and graduate assistants, will be housed in newly-built research facilities with state-of-the-art laboratories, at the University of Utah and Utah State University—the state’s

leading research institutions. Another five Innovation Centers with close ties to the research teams will be located at other higher education facilities so as to spread research and business creation throughout the State. Over the next 30 years, USTAR could generate $4.9 billion in new external research funds, 422 new companies, 123,400 jobs paying $62 billion in salaries, and $5 billion in new tax revenues for the state, according to a study by the Bureau of Economic and Business Research. Although the investment amount will total $200 million, it wasn’t such a hard sell for the State Legislature. The core premise of USTAR, in fact, is a formalization of what has already happened informally in Utah for years. During the past 20 years, more than 180 Utah companies and technologies were spun out of the State’s university labs. Most of these continue to prosper, and today are important players in the state and national technology marketplaces. These include Myriad Genetics, HyClone Laboratories, Sorenson Communications, NPS Pharmaceuticals, Watson Laboratories, and Evans and Sutherland. Venture Capital Venture capital deal flow in Utah was down 78 percent to $109 million in 2006, according to MoneyTree Venture Capital Profile for the United States, a survey by PricewaterhouseCoopers/Venture Economics/National Venture Capital Association. Because Utah’s active entrepreneurial climate leaves so many deals unfunded, in January 2003 the State Legislature enacted the “Utah Venture Capital Enhancement Act” popularly known as the Utah Fund of Funds. The Utah Fund of Funds was created to enhance the venture capital culture and infrastructure in Utah and increase venture capital investment in the state. “The Fund’s goals include encouraging the availability of venture capital in the state and helping to build a significant, permanent source of capital available to serve the needs of Utah businesses. The legislation states that the Utah Fund of Funds shall invest its funds in private venture capital funds and not make direct investments in individual businesses, thus allowing seasoned investment professionals to make prudent investment decisions,” according to Utah Business Magazine. “The legislation provides $100 million in contingent tax credits to assist the Fund of Funds in seeking new capital investment. The tax credits [are] used as a backstop for investments in the Fund to ensure a return in investment. The objective is to repay investors from the Fund’s long-term performance and not to utilize the contingent tax credits.” Infrastructure Utah’s infrastructure is still sparkling and gleaming after the makeover it got leading up to the 2002 Winter Olympic Games. Pre-Games projects included an expansion of Salt Lake International Airport, rebuilt freeways, a new light-rail public transportation system, an expanded convention center, as well as new hotels, restaurants, and shopping venues. And, of course, more than half-dozen state-of-the-art Olympic venues were built. But the State’s growth has brought new demands on the existing infrastructure. An example is Daybreak, a massive residential real estate development being developed by Kennecott Land in the Salt Lake Valley’s west side. The first phase of this development, which started in 2004, involves 4,100 acres and will eventually have more than 13,000 homes. The development, which is on the largest piece of privately-owned land next to a U.S. city, will take decades to fully build out. For the sake of comparison, Kennecott’s land in the Salt Lake Valley is twice the area of the city of San Francisco. With this development comes opportunity to rethink traditional notions of homebuilding. The homes being built at Daybreak are ‘greener’ and more energy efficient and the neighborhoods are built to be more liveable and walkable. And all the homes built there will have three strands of fiber optic lines running directly into them that allow Internet connections at a speed of 5 megabits of data per second. The fiber optic lines will carry both video and data. Technology leadership can be found even in the homes of Utah. Utah and its citizens have been innovators since before 1921, when Philo Farnsworth, an intellectually-curious farmboy from Utah looked at the field he’d just plowed and saw in the parallel lines the solution for how to make electronic television work. Thanks to bold government initiatives, superior technology training at its universities and colleges, its access to venture capital, its up-to-date infrastructure and its well educated, well trained workforce, Utah further the innovative legacy of people like Farnsworth and continue to play an important role in the world of

 

 

Financing your Business or Home Purchase

 

The Department of Financial Institutions (DFI) regulates 26 banks, 59 credit unions, 36 industrial banks and two trust companies. There are also 10 national banks, 6 out-of-state state banks, 52 federal credit unions, and 7 federal savings & loan, operating within the state. As of June 30, 2006 Utah depository institutions had combined total assets of 251.3 billion dollars. Of that total, 38.6 billion were in banks, 11.0 billion were in credit unions, 133.8 billion were in industrial banks and 67.9 billion were in savings & loan associations. All banks, credit unions, savings and loans and industrial banks operating within the state of Utah have its deposits insured by the Federal Deposit Insurance Corporation (FDIC).

There are approximately 192 residential mortgage lenders, brokers and servicers conducting business in Utah. The Utah Division of Real Estate is now the primary regulator of residential first mortgage lenders and brokers. For the fiscal year ended September 30, 2006, Zions First National Bank (“Zions Bank”), a subsidiary of Zions Bancorporation (Nasdaq: ZION), approved 525 U.S. Small Business Administration (“SBA”) 7(a) loans in Utah, ranking as the state’s top provider of SBA loans to small businesses. Zions has ranked as the state’s number one SBA lender for the past 13 years. The 525 loans approved by Zions Bank in Utah totaled more than $43.3 million, and represented 24 percent of the 2,153 SBA-backed loans approved in the state during fiscal year 2006.

Utah Weather

The Northern half of Utah has 4 fairly distinct seasons, Winter, Spring, Summer, and Fall.  During the Winter season, you can expect to see snow and rain, with temperatures usually ranging from 0 - 50 degrees and more cloudy days than sunny. During Spring, you will see some snow but mostly rain as the weather begins to warm up. Temperatures will vary from 25 - 70 degrees with a lot more sunshine, but still some clouds. During Summer, expect a few scattered thunderstorms from time to time but mostly nice warm (sometimes hot) summer days. Temperatures will fluctuate between 60-110 degrees and can sometimes get hotter. During the Fall season you can expect to see scattered rain with some snow and cooling temperatures, typically 25-80 degrees. 

 

Capital and largest city, Salt Lake City.
Motto, Industry.
State bird, seagull.
State flower, sego lily.
State tree, blue spruce.

Nickname, The Beehive State

 

Tourism has become increasingly important to the state's economy. In addition to the five national parks and seven national monuments, ski resorts, particularly in the Wasatch Range, are popular destinations. Since 1984, Park City has hosted the annual Sundance Film Festival.

 

Salt Lake City hosted the 2002 Winter Olynmpics.

 

Utah Olympic Park

Utah’s Olympic Parks Keep the Dream Alive

The 2002 Winter Olympic Games in Salt Lake City were an astounding success. Now, Utah residents and visitors alike can enjoy Olympic legacy facilities—Utah Olympic Park, Soldier Hollow, Utah Olympic Oval, and the Olympic Cauldron Park which offer an array of activities for people of all ages, abilities and aspirations. Whether you are a recreational enthusiast, developing athlete, spectator or tourist, we encourage you to “Get Up & Go!” for a unique Olympic experience.

Each venue has been transformed into a community facility, open year-round to the public for post-Games usage. There are introductory Olympic winter sports programs, public skating on “The Fastest Ice On Earth,” tours of the Olympic facilities, tubing, cross-country skiing, public bobsled rides, ski jumping and freestyle aerial shows, 2002 Games exhibit and the Joe Quinney Winter Sports Center/Alf Engen Ski Museum.

Utah Olympic Park

 

Utah Olympic Park near Park City, UT served as the 2002 Olympic venue for ski jumping, nordic combined, bobsled, skeleton and luge. Now, visitors are treated to self-guided and expert tours of the competition sites, including the world’s highest altitude ski jumps and the fastest sliding track. Take the ride of your life on a bobsled at 70 miles per hour with 4 Gs of force. Try an introductory camp in ski jumping, luge, skeleton or slopestyle skiing and snowboarding. And be sure to visit the Alf Engen Ski Museum and 2002 Games exhibit.

Olympic Cauldron Park

There is no more stunning reminder of the Salt Lake 2002 Games than the sight of the Olympic Cauldron. Throughout history, many cauldrons have been moved from their original locations or dismantled and forgotten. But thanks to the commitment of Salt Lake City residents to the Olympic ideals, the cauldron now rests, intact, just a few feet from where it burned as a beacon to athletes and spectators in February 2002.

Every year, on the anniversary of the Salt Lake 2002 Games, the IOC has given permission for the Cauldron to burn for 17 nights, casting its spell and its power to inspire once again.

 

Soldier Hollow

Olympic Cauldron Park is located on the University of Utah campus

Soldier Hollow in Wasatch Mountain State Park was the busiest venue during the 2002 Games, hosting 23 events in biathlon, cross-country skiing and nordic combined. The facility features a 31-kilometer trail system that includes beginner and intermediate terrain specially designed for families, “crossover” downhill skiers and first timers. With the gorgeous Mt. Timpanogos in the background, Soldier Hollow also offers the longest tubing hill lanes in Utah, snowshoe trails, Rossignol equipment demo center, ski school and ski shop. In the summer, activities include the Olympic Biathlon Experience, mountain biking, horseback riding, and inline skating.

Utah’s Olympic Oval

The Utah Olympic Oval in Kearns is recognized as the premier speed skating facility in the world after 10 Olympic and eight world records were set during the 2002 Games. Recreational learning programs are available for adults and children, including skating, speed skating, short rack, figure skating, hockey and curling. Enjoy open ice for public skating on the 400-meter oval made famous by the Olympic athletes. Other activities include Utah’s largest indoor running track, indoor soccer and lacrosse leagues, and special group events. The Utah Olympic Oval, which was completed in March 2001, has been recognized as the premier speed skating facility in the world after 10 Olympic records and eight world records were set during the 2002 Games.

More Reasons To Come to UTAH 

Famous for its dramatic beauty, Utah is a land of extravagant landscapes. Redrock canyons, lush forests, snowcapped mountains and countless streams and lakes attract visitors and residents alike into the great outdoors. Utah’s strong Mormon population, although less than half the population today, has a big impact on the state’s government, economy and culture.

 

Utah’s mountain peaks are the tallest, on average, in the nation.

 

The state has numerous recreational opportunities. It has five national parks, seven national forests, portions of two national recreation areas and six national monuments. Winter sports abound with ski resorts in Alta, Brighton, Park City, Snowbird and Solitude. Non-winter activities include whitewater rafting and canoeing along with hunting and fishing.

 

2007 American Fork Was Voted among the top 100 Cities to live in.  Below are just a few of the reasons...

Above is a view of the valley from the canyon.

Below that is a photo of the American Fork LDS Temple. 

 

American Fork is a great mix of small-town integrity and contemporary development. Discovered by trappers from the American Fur Company - who trapped along the river that starts on the south slopes of Mount Baldy, or Bald Mountain - the town was settled by Mormon pioneers.

It is now Utah's 15th-largest city with a population of some 21,000. In recent years, the area has been attracting a number of high-tech firms due to its educated workforce, low business costs and excellent quality of life. Just minutes from American Fork's quaint Main Street is the new Utah Valley Business Park, home of Dentrix and Intel.

Home prices are very affordable. Condominiums are available for less than $100,000. Single-family homes start at just over $100,000 and run to $300,000 or more, but what a house! Views here are spectacular, one of the many reasons why so many settlers decided to live here, instead of moving further west.

Hiking, camping, fishing, horseback riding, mountain-biking, and water sports of all kinds are favorite pastimes in the summer months. Hunting, snowmobiling, ice climbing, downhill and cross-country skiing satisfy the adventurous during the colder months of the year. The city's central location puts it within a half-day's drive of fifteen national parks, monuments, and recreation areas - the largest concentration of such attractions in any state south of Alaska.

American Fork has so much to offer, it is located in one of the fastest growing counties in the United States; the education systems are highly rated and the opportunity for business growth and development is booming. Cedar Hills may be sleepy, but for all the right reasons and moving here might just be the best thing you've ever done!

American Fork has been ranked among the top 20 places to live in the nation (according to Money Magazine) for the past five years. The town is an attractive residential community based largely on farming, manufacturing, and trade. Among the town's attractions are its downtown businesses, many of which are still housed in their original Old West-style buildings.