Utah technology companies weathering economic gloom

Growth in the technology industry in Utah continues despite the downturn in the economy, according to statistics released Tuesday by the Utah Technology Council.

The trade organization said the number of companies in the technology and life sciences sectors increased 2.6 percent from September 2007 to September 2008.

Richard Nelson, council president and chief executive officer, told the Deseret News that Utah's technology industry has more than 5,500 high-tech and life science companies, with a total of more than 66,000 employees, slightly more than in 2006.

Nelson said that because many Utah companies were able to persevere in the wake of the dot-com bust of a few years ago, they have helped to make the state's tech industry stronger than in most other states.

"Because our technology companies survived … it puts us in a better position," Nelson said. "That executive skill set and ability to expand, even under the most difficult circumstances, would lead us to believe that we should still be able to continue to grow."

In a news release, Nelson said certain sectors in technology, such as information services and marketing consulting, showed surprisingly high job growth of 41.2 percent and 19.5 percent, respectively.

"While the nation's economic challenges create difficulties on every front, Utah's data for year-over-year performance of our technology and life science companies continues to show reason for optimism," he said in the release.

The average technology salary is 58 percent higher than the statewide average annual nonagricultural wage, he also noted.

Regarding trade in the technology sector, the value of exports of computers and electronics were the second-largest category in Utah in 2008 at $2.1 billion – a 126.7 percent increase over 2007.

Nelson said an informal survey of local CEOs indicated, for the most part, tech companies in the state are holding steady in their businesses, with many commenting that they are still growing even in today's tough economy.

UTC Chairman Alan Hall acknowledged in the news release that "growth is less than companies reported in a similar survey last year, (but) the level of growth and resilience our technology industries are showing is giving Utah entrepreneurs and employees plenty of reasons to continue to be positive."

Hall said Forbes magazine ranked Salt Lake City as the "Best City for Jobs" and Utah second in the category of "Best State for Business."

Utah also ranked first in the American Legislative Exchange Council-Laffer State Economic Competitive Index economic outlook.

Overall, Nelson expressed solid optimism for the short-term future of the state's tech sector.

"Utah's technology industry continues to grow, and it creates a large number of high-paying jobs," Nelson said.

"And that trend line should continue."

E-MAIL: jlee@desnews.com