From Deseret News archives:
Utah's technology industry remains strong, CEO says
Richard Nelson, the council's president and chief executive officer, said Wednesday that "it's still a very positive, growth-oriented picture" in Utah for information technology and life-sciences companies. And he believes Utah's industry is better prepared to weather the current crises.
"Utah appears to be still in a sweet spot," he said. "We're resilient. We're fast-growing. That doesn't mean that the national economy and the world turmoil won't catch up to us and impact us. It certainly will. But our industry already went through a depression from 2000 to 2003 — not a recession, a depression — and we think that they're better positioned than their counterparts around the country, because of the efficiencies and the business-friendly environment here, to be able to continue to grow."
Buoying Nelson's optimism are statistics from March that indicate Utah has 5,260 technology companies, 79 percent of which are IT firms. They employ a total of 66,000 people and pay salaries on average 58 percent higher than the statewide average annual nonagricultural wage.
The 5,260 company total is up from 5,244 a year earlier. A 0.3 increase might not sound like much to celebrate, especially after recent 5.5 percent year-over-year growth, but Nelson said the picture is much bleaker elsewhere.
"I don't think you'd see that any other place in the country," he said of the leveling of the company figures. "We clearly have hit a critical mass."
Another indication of industry health and optimism comes from an Oct. 22 survey of chief executive officers, chief financial officers and senior human resource executives. Among respondents, 63 percent reported "growing" or "thriving" current revenues for their companies. And nearly 60 percent were "positive" or "highly optimistic" about the forecast for tech-industry growth in Utah. Only one of 137 respondents was pessimistic.
"I think that's astounding, given the financial free-fall and the uncertainty for all of us around the globe, and I think it goes back to a time that we had a real sorting-out here, in 2000 to 2003, and that those companies that got through that period became survivors and then they became growth companies and then they became thriving companies," Nelson said.
"I think they're better prepared this time with a stronger work force and with stronger financial standing than they were back in 2000 to 2003. What we've discovered is it's not about start-ups anymore in Utah."
The council's agenda during the next year — established by a group of 77 industry leaders — is a broad range of activities that will focus on helping companies grow, finding a quality work force for them and helping them get needed funding. Among those activities are getting more Utah businesspeople in classrooms to tell students about future job opportunities and the education they need to prepare for them, and finding a way to highlight the top "hot" jobs in Utah.
E-mail: bwallace@desnews.com
