Utah off the business radar

Out-of-state companies over the past year made 20 visits to Utah to consider the state as a site for expansion — the lowest number in at least a decade, the Economic Development Corporation of Utah (EDCU) reported Tuesday.

By Lesley Mitchell
The Salt Lake Tribune

The total number of visits arranged by the agency during its 2003 fiscal year, which ended June 30, compares with a high of 74 site visits during EDCU’s 1999 fiscal year, a time when Utah’s economy was still booming but on the verge of turning sour.

Companies made in the range of 40 to 50 site visits each in 2000, 2001 and 2002, all of which were difficult years for a state that has shed thousands of high-paying jobs and has seen few companies add new positions.

Despite last year’s dismal performance, EDCU, a nonprofit organization that works with state economic developers to recruit new businesses to Utah, said inquiries from companies interested in expanding in the state have increased dramatically since early July.

"Since July 1, we’ve had six corporate site visits compared with the 20 for all of last year," said Chris Roybal, EDCU chief executive and president. "We view this as a significant turnaround from last year’s activity."

Historically, about a quarter of site visits translate into actual expansions, Roybal said.

Last year, however, was a poor year for expansions. Many companies held off adding office and distribution facilities and others scaled back plans.

Roybal said one of the largest corporate expansions last year in Utah was completed by Hauppauge, N.Y.-based nutritional supplement manufacturer Twinlab Corp., which added 226 people in Utah after it closed a New York manufacturing and distribution plant and consolidated its operations at its plant in American Fork.

Economic development inquiries now are increasing because the national economy is continually improving, said Jeff Thredgold, economic consultant for Zions Bank in Salt Lake City.

"As of about June 1, there’s been a very noticeable pickup in the U.S. economy," he said.

Another factor is the situation in California, which is struggling with a budget deficit that has led to an attempt to recall Gov. Gray Davis.

Thredgold said the last time California had economic troubles — roughly from 1991 to 1995 — residents began to leave, fueling population growth and corporate expansions in other states, including Utah. He said that may start happening again now.

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© Copyright 2003, The Salt Lake Tribune.