State economic leader Spencer P. Eccles foresees strong future for Utah

SANDY — One thing is certain about Spencer P. Eccles — he's upbeat about Utah's economic future, despite the heavy-duty recession that has put millions in unemployment lines and hurt businesses nationwide.

"I am optimistic," Eccles said. "I don't want to minimize the challenges we face or that people who are out of work face, but that encourages me to work harder."

Eccles was the keynote speaker Friday at a BizNet Connect conference, "Financing Your Business," at Salt Lake Community College's Miller Resource Center. The conference was presented by the college, in partnership with KeyBank.

Eccles said seven business "clusters" identified under former Gov. Jon Huntsman Jr. and now being explored extensively by Gov. Gary Herbert hold great potential for job creation and business growth in Utah. The clusters are: aerospace and aviation; defense and homeland security; energy and natural resources; financial services; life sciences; outdoor products; and software and information technology.

There are components that move across all of those clusters, such as manufacturing, according to Eccles. And they all tie into what Herbert has identified as the "three Es" of economic development, education and energy.

Eccles, executive director of the Governor's Office of Economic Development, said within the seven clusters are large corporations with big work forces, but these can directly affect the start and growth of small businesses, which can provide the corporations with supplies or services — and jobs. "It all works together," he said.

Eccles said Herbert is keenly interested in recruiting corporations to Utah and helping those already here to grow, but he also is mindful that small-business development is a crucial part of the economy.

"We know that in the past 15 years, small businesses contributed 64 percent of the new jobs in America," Eccles said. "It's a critical component, especially in Utah."

Herbert is especially interested in helping create links among these various groups, which will help symbiotic relationships emerge, but does not want a lot of government meddling, according to Eccles.

"I believe one of the most powerful things we can do in government — other than getting out of the way — is to convene groups," Eccles said.

There are signs things are improving, he added. "Small truck sales are up, which is kind of an indicator."

Last year, Utah was the only state with positive export growth, he said. Within Utah's clusters, in the past four years there has been a 16 percent increase in jobs created.

Utah has several advantages over other states when it comes to attracting and helping businesses grow, he said, including low corporate taxes and a business-friendly environment.

"Arizona is selling off assets to fill a one-time void. New Jersey has had 115 tax increases in the last eight years," Eccles said. "We're doing outreach if companies want to relocate or expand. We're advertising, 'If you want to move, consider Utah.' "

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