Utah's business climate: a pro-business stance?

• Author: Birkedahl, Pat
• Position: National business magazines rank Utah as best state for business because of state's infrastructure, moderate taxes, educated work force and quality of life

Utah's Business Climate: A PRO-BUSINESS STANCE?

Economic development has become the buzzword of the decade. Every town, county, city and region in America is promoting itself as "the place to live, work, and do business." Take away the name on the cover, and any city's brochure looks just about like the next. So what are the incentives Utah has to offer?

Different businesses thrive in different climates, just as the needs of English ivy differ from those of a barrel cactus. Thiokol International found downtown Ogden an ideal location for its corporate headquarters, while the Thiokol plant is suited to the wide-open spaces of Box Elder County.

As communities across the nation compete with one another to attract and keep businesses, Utah has been ahead of the game in touting its pro-business atmosphere. In the last several months, Utah has appeared on the covers of three national business magazines as the best place to do business. The first big apple came in October of 1990 when Fortune magazine identified the best city for business. "Brace yourself for a surprising No. 1: Salt Lake City," said Fortune. But it was not surprising to the many economic development people working to promote Utah. Fortune elevated Salt Lake City to the place of honor because of Utah's infrastructure, moderate taxes, educated (and plentiful) work force, and quality of life. Financial World in 1991 rated Utah as the nation's top financially-managed state. Money magazine named Provo/Orem the best metropolitan area in the country.

Why Utah?

There are many reasons given for Utah's recognition as a great place to live and do business. Some of those reasons are cited again and again. Cressona Aluminum Executive Vice President Raymond C. Dee said location was the key for locating a new plant in Utah. The Pennsylvania-based company purchased a 210,000 square-foot building in Spanish Fork to produce aluminum products for customers in the western United States. The plant is expected to open by mid year (1992). Dee said the company looked at other western states for possible locations. Economic development packages of many western states, with the exception of California, were very similar to Utah's. Utah was selected, even over a slightly more attractive Nevada economic development package, because Utah's work force has a reputation for a strong work ethic. Government officials, particularly Spanish Fork's City Manager Dave Oyler, were easy to work with and cooperative, Dee said.

"We don't have to give all the incentives (to businesses ) that some states do," said Utah County Commissioner Gary Herbert. "We've had a lot of accolades. One thing about Utah is the feeling generated by the people--a |can do' spirit. I think it is one of the reasons why we are finding economic development while much of the country is in a recession."

Family Health Plan (FHP) Manager of Government and Community Relations Ron Fox described Utah's economic climate as very competitive with that of other states. "Frankly, I think Utah will do better in the economic recession than many parts of the country, due in part to the fact that many individuals and companies that have left Utah for California are coming back." The big attraction? Fox said Utah's taxes, cost of living, and quality of life are big...