Economic Development in Utah

Southern Utah

EDCUtah’s role in Utah’s economic development strategy

• Who We Are and What We Do

• What are the Goals?

• What are the Opportunities?

Agenda

Organizational Overview

• Private, non-profit organization founded in 1987

• Catalyst for quality job growth and increased capital investment

• Specialize in corporate recruitment, economic research, site selector marketing and community development

• Supported by state government (GOED), local governments, and organizations from the private sector

EDCUtah Overview

• 2003-09: Research, BD, Community Strategy; EDCUtah

• 2009-12: Proactive Recruiting; EDCUtah

• 2012-14: Vice President of Client Services; CRP

• 2014-20: Chief Marketing/Operating Officer; EDCUtah

Mike Flynn, COO, EDCUtah

• Business Development

– Responsible for project management, client handling, Site Selector relationships, and lead generation

• Research & Marketing

– Responsible for primary and secondary data collection, content creation, mass marketing, and events

• Community Strategy

– Responsible for community training and education, site preparation, and local official engagement

Organizational Structure

Site Selector Events

Trade Missions

Targeted Recruiting Missions

Tradeshows

Press & Promotion

Project Initiation

Follow-up Company RFI

EDCUtah Community

RFISite Visit

State Incentive

Local Incentive

Win/Loss

Community Specific Project

Project Process

New or Retained Jobs

ProjectWins

CapitalInvestment

Square Footage

Key Performance Indicators

2019-20 Fiscal YTD

Previous Year 10,450 40 $1B 2.5M

10,054 22 $946M 2.1M

New Project Starts, YTD (+3)

1314

15

12

14

11

14

1112

11

6

20

89

12

24

16

13

10

15

July August September October November December January February March April May June

FY 2018-19

FY 2019-20

Big Wins

Facebook

50 Jobs

$750 Million Cap. Ex.

May 2018

Source: Utah Governor’s Office of Economic Development, EDCUtah

Tyson Food

1,374 Jobs

$286 Million Cap. Ex.

May 2019

Procter & Gamble

221 Jobs

$310 Million Cap. Ex.

January 2020

Northrop Grumman

2250 Jobs

$380 Million Cap. Ex.

January 2020

What is the Goal?

Utah’s Economy Then and Now U t a h ’ s e c o n o m y h a s s e e n s i g n i f i c a n t g r o w t h

Economic Metric 2003 2018 Percentage Change

Utah Population 2,378,000 3,161,000 33%

SL County Avg Home $$ $ 171,600 $ 363,000 112%

Average Wage $ 31,041 $ 47,777 54%

Net Migration (2,914) 25,019 NA

Percent of US Wages 84% 86% 2%

Total Unemployed 67,682 48,978 -28%

Cost of Living 94.0 97.7 4%

Total Employment 1,146,325 1,588,575 39%

GDP $ 79,149,100,000 $ 177,336,200,000 124%Total College Graduates 23,242 59,668 156%

• Higher wages growing at a reasonable rate

• Talent aligned with existing industry needs

• Career opportunities for everyone, better jobs at every level

• More organic growth, supplemented with high-value recruitment

High(er) Quality Jobs

• Projects that create significant property tax base

• Projects with minimal impact to community and school district budgets

• Projects that work in rural communities

• Projects that leverage existing infrastructure and utilities

• Revenue generation

Large Capital Investment Projects

• Policies that support housing affordability, wages that support current housing costs

• Projects that minimize air quality impacts, or locating those projects in less impacted air sheds

• Minimized congestion by focusing on the colocation of jobs and housing

• Prioritize revenue-generating growth over expense-generating growth

Manage the Impacts of Growth

How to get there?

• Don’t take our foot off the gas!

• Become more strategic about our economic development investments and the use of incentives

• Invest in initiatives the further the new “Quality” based value proposition, things like workforce development

• Think BIG

Strategies and Suggestions

• Keep looking for opportunities – kiss a lot of frogs

• Become even more targeted in our proactive efforts -higher wage/bigger capex projects

• Support generational opportunities throughout the state

How EDCUtah Plays a Role

Utah’s Generational Opportunities

• Creation of the Northern Utah Economic Alliance

• Hill Air Force Base

– Companies such as Boeing, BAE, Lockheed, Janicki, Northrop Grumman, et al.

– State’s largest employer with 16,400 civilian employees

• Northrop Grumman will base its Ground Based Strategic Deterrent operations in Ogden – 2,500 new jobs

Northern Utah

• 700 acres in the middle of the fast-growing Silicon Slopes

• Nearby communities represent another 20,000 acres of potentially developable land

• Public information and prioritization effort led by Envision Utah and state-appointed board

Point of the Mountain

• Intermodal hub with nearby rail, highway, and air transportation

• Future site of the state prison with massive state investment in infrastructure

• 16,000 plus acres of developable land for manufacturing and distribution

Northwest Quadrant

• Transportation, utility, and infrastructure assets that are currently underutilized

• Highly skilled, hard working, and dedicated workforce with untapped potential

• Growing subset of corporate recruitment projects interested in considering rural locations

Rural Utah

• Corporate recruitment is one part of a sound economic development strategy

• Utah “wins” on talent, geography, and consistency

• Utah “loses” on size of market, diversity, and (more recently) cost

• The business environment has evolved; some of the goals have remained the same

• There is no shortage of generational opportunities in 2020

In Summary

Questions

Thank you

Southern Utah