Utah outlook is 'solid'

Experts assessing Utah's economy on Thursday gave it a healthy diagnosis but a troublesome prognosis.

Speakers at the Rocky Mountain Economic Summit indicated that the economy is strong globally, nationally and in Utah but said the state faces several challenges in the next few years. Among them are a shrinking pool of qualified workers, a lack of preparation for companies looking to move to Utah and piddly government financial incentives.

Jeff Thredgold, president of Thredgold Economic Associates, noted that Utah's job growth is rebounding.

"So the outlook for the region is solid. Utah is doing well," he said. "It's tougher and tougher to find bodies to hire, and you're all going to deal with more issues in terms of labor availability and finding and retaining skilled labor than we've seen in the last five years."

Stephanie Frohman, vice president of business development for the Economic Development Corp. of Utah, said an indicator that the state's economy is strong is "the stack of client files on my desk," referring to companies inquiring about possible moves here. At the end of 2004, EDCUtah was working with 57 companies considering expansion in the state, and that number has grown to 125. "Things are looking up," she said.

Those companies like Utah's stable, educated work force and Gov. Jon Huntsman Jr.'s business background. But the state often is slow in having facilities ready for companies.

"Today, when somebody's ready to put up a plant, they don't have 12 months to think about it," she said. "They want a shovel-ready site that they can start in three months and put up a building and begin construction, because every day they delay putting that plant in the ground is a day that they're not getting product to their new clients."

Utah also lacks government-provided financial incentive packages, she said.

"When we are looking at other states and how much they can offer to a company that might be looking to come to town, we pale in comparison," she said.

Although one company recently selected Utah over New Mexico, she described their options this way: "So, 'Here, come to Utah. We've got great labor.' Or, 'Here come to New Mexico. We've got similar labor and a giant bucket of money.' It's hard to compete."