Consistent. Predictable. When it comes to business, “boring” is a very good thing. And when it comes to business, Utah is just “boring” enough that your business would thrive. Forbes magazine recently listed the top US states for business, and Utah claimed the top spot – again. That is five out of the last six years the state has ranked No.1.
Utah has maintained its AAA bond rating since rating agencies began tracking in the 1960s. The state has not raised its corporate tax rate in nearly 20 years. Energy costs have remained below national averages for decades. Even our international airport is on top of its consistency game: last year Travel+Leisure ranked Salt Lake City International Airport the most punctual airport in America, the fifth such ranking for the airport since 2008.
This is all to say that Utah’s business environment is predictable – a trait cherished by business leaders.
Part of the Beehive State’s success can be attributed to a surprising aspect, its diverse economy. Utah is credited with having the third most diverse economy in the nation. The state boasts manufacturing in the north; tech firms in the Provo-Orem area; mining, oil and gas in the eastern region, not to mention the booming leisure and hospitality industries in Summit County and southern Utah.
The state of Utah has dedicated considerable resources to becoming an enticing global business destination. Diverse industries aside, Utah is convenient to get to. It is also massively multilingual with more than 130 languages spoken in the course of business every day. It has a foreign trade zone and intermodal inland port.
This land-locked state has cultivated new business and expanded its international presence by attracting global brands like Adobe, Goldman Sachs, Procter & Gamble, Boeing, Orbital ATK and eBay to name a few.
UTAH IS GROWING AND INVESTORS ARE CALLING
Foreign companies find Utah fertile ground for investment. Nearly 200 companies from 29 countries are doing business here. According to the most recent data from the U.S. Bureau of Economic Analysis, foreign companies with Utah operations grew their workforces in the state by 7.7% from 2007 to 2012, compared to only 3.3% growth nationally.
Utah manufacturing jobs tied to multinational companies grew 13% in that same period. Foreign-owned companies employ approximately 30,000 Utahns, and European companies employ more than half of those workers.
WHY WE GROW
The International Trade and Diplomacy Office housed in the Governor’s Office of Economic Development (GOED) has an experienced local staff plus in-country trade representatives who provide advice and connections to companies looking to export and investors looking to find safe and productive places to put their capital. The state and its partners are actively courting Foreign Direct Investment (FDI).
In conjunction with the World Trade Center Utah, GOED also organises multiple trade missions a year. In 2015 the governor led a delegation of businesses and government leaders to Western Europe with the purpose of capitalising on new investment opportunities and building even stronger trade relationships. The UK alone is Utah’s third largest trading partner, with $1.42 billion in exports in 2014.
When you consider Utah’s activity with Mexico, Canada and China, you can see why the state’s international presence is strong. Utah was the only state to double exports between 2008 and 2012, and is sixth in the nation as a percentage of GDP from exports.
INCENTIVES
It is important to Utah to keep home-grown companies in the state while also recruiting new companies domestically and internationally. To this end Utah offers highly successful post-performance refundable tax credits – economic development tax increment financing (EDTIF) incentives – to companies that want to expand and those that would like to relocate to the state.
Companies such as OOCL, Ottobock Healthcare, Oemeta, Beijer Electronics, Lin Manufacturing and FLSmidth are a few of the notable foreign-based companies that have received recent incentives to expand in Utah. But the incentives Utah offers are not its lead recruiting card; Utah’s energy and real estate costs are low, its healthy young workforce is recognised as exceptionally productive, and the state’s quality of life is considered second to none. With these factors, a competitive incentive just seals the deal.
UTAH’S CONTRASTS MAKE IT SUCCESSFUL
Utah exports primary metals, sports equipment, and medical and IT devices. It houses established, world-renowned companies, but also the innovative start-ups that keep an economy vibrant and attract top investors. It’s an unlikely “David” that has entered the “Goliath” of the global arena and excelled.
If you have not considered doing business in Utah, you should. We invite you to see for yourself at the Utah Global Forum event in Salt Lake City on 24 October 2016 (www.utahglobalforum.com).
