Bringing 'em in: Success of luring firms builds on itself in Utah

Given the significant expansion Utah's business base has experienced in recent years, a fair question to ask is what has the state done to attract all these companies?

The surprising answer: Not as much as many might think.

"We have not even done any outside recruiting on our end," said Jeff Edwards, president and chief executive officer of the Economic Development Corporation of Utah, who works in conjunction with state government to develop and expand business in Utah. "We've been really fortunate that we've had such a high level of interest that we've had a lot of companies coming here. Last year we had 41 companies that we worked with."

Edwards said the trend started about three years ago when inquiries from various industries began in earnest.

"Success breeds success," Edwards said. "As we've had incremental (expansion) projects that have come along, they pick up momentum ...." This ultimately leads to creating more interest from other firms in similar industries, he said.

Citing the outdoor products industry as an example, Edwards said companies like ski giant Rossignol have moved their headquarters to Park City, prompting competitors such as Solomon and Atomic to place operations in Utah as well. Most recently, consumer products conglomerate Procter & Gamble announced plans to open a paper products plant in Box Elder County, eventually bringing with it 1,000 new jobs.

"Manufacturing has been the dominant (industry moving to Utah) for the last five years," Edwards said.

And there is a residual effect for the state as well as suppliers for these manufacturing businesses also follow them to Utah.

Tauni Everett, EDC Utah communications director, said the organization focuses on the following industries: outdoor products, aerospace, life sciences, information technology, energy, financial services and homeland security.

Everett said Utah has recently landed in the rankings of several prominent national business magazines and is gaining a reputation for being one of the more affordable Western states in which to do business.

"We knock the shorts off them in operating costs," said Greg Hunter, industrial real estate specialist with Commerce CRG. "(Utah) is still a cheap place to buy land, build a building," he said.

Edwards said he also attributes part of the state's success in luring business to Utah for the 2002 Salt Lake Olympic Games.

"It made a fundamental change in the way people view Utah," he said. "It changed perceptions about Utah being (not only) a beautiful place, but also full of smart, competent people and reflects in our image as a state now."

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E-mail: jlee@desnews.com