Survey: Image of Utah is harsh until the CEOs pay state a visit
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

To many CEOs, Utah is still a backwater populated by quirky people.

A new survey of 21 corporate leaders involved in business relocations and expansions in the state found the biggest obstacle to economic development is simply getting the executives to come here. Once business leaders visit - to ski or scout for a possible location - the place often does the recruiting work. But persuading them to take the trip can be a problem.

Real Estate Professionals for Economic Growth (RE-PEG), a group of commercial real-estate agents and developers, commissioned and wrote the informal survey released Wednesday. Over several months, the group questioned executives from companies who have relocated or expanded here and those who have passed on the Beehive State entirely.

"There were not a lot of companies who wanted to talk about the real reason they didn't come to Utah. But the perceived problems were very predictable," said Bill Martin, managing partner with Colliers Commerce CRG and RE-PEG president. "We need to quit trying to rationalize the Mormon issue. It is what it is. We just have to get over this image of quirkiness that we have and move on."

Beyond the expected perceptions that Utahns are cliquish and clannish, the survey found business leaders also balk because of the state's relatively small population base and 8-to-5 work force. Executives also are concerned about the future of Salt Lake City's Delta Air Lines hub and the availability of existing sites for large manufacturing plants or raw land with utilities installed.

Utah's quality of life, natural surroundings, affordable lifestyle and happy executives who already live here - taking advantage of the so-called "skiing CEOs" - are the state's best chance to counteract those perceptions, the questionnaire found.

Despite the somewhat disheartening results of the survey, Chris Roybal, Gov. Jon Huntsman Jr.'s senior adviser for economic development, was upbeat about the state's prospects. Roybal says continuing site visits and announcements of expansions and relocations put Utah on the economic development map. He says the state is on most companies' short list for locations in the Western United States.

"We seem to be in the game," Roybal said.

"You're always going to have some positive and negative feedback about doing business in your community," he added. "That doesn't mean we aren't looking for better ways to present our information, create a one-stop shop and get the companies here."

The Governor's Office of Economic Development contributed $15,000 to the $55,000 survey.

The survey is punctuated by quotes from anonymous site locators and business executives. Some are complimentary. Several wrote glowing reviews of Huntsman and many of the executives believed Huntsman was founder of Huntsman Chemical - a mistaken impression that worked in the favor of the state's image. Huntsman Chemical, which was the world's largest privately held chemical company until it went public in February, actually was started by the governor's father, Jon Huntsman Sr.

But other statements were blunt and to the point of being harsh, with one writer noting that Utah is one of the "square states" with more deer than people. Another complained about a worker at the Economic Development Corporation of Utah "slamming" state economic-development workers. Huntsman fired more than 30 economic development workers when he took office at the beginning of this year and turned the state contract for recruiting over to EDCU.

Still others were positive. One respondent said a transplanted Bay Area executive had no plans to go back to California. And the state's hosting of the 2002 Winter Games was cited as a reason some business owners considered Utah in the first place.

Randy Abood, co-founder of RE-PEG, says state economic-development managers just need to make it clear Utah welcomes business - and be specific about the kinds of business the state wants. The image stuff will work itself out. After a 1979 ski trip, Abood decided to start investing in real estate. He still lives in New York City, but manages two business parks in Salt Lake City.

"It's just not clear to so many people what Utah really is," Abood said.

CEO chatter about Utah

In a survey of companies, business leaders anonymously put their thoughts about the Beehive State on paper.

On the state's work force: "[Other places] are moving at a great speed where Utah is not. Everything just kind of stays the same, every day, every month, it's always the same, and I think that's a product of that striving for mediocrity here. I mean, it's OK for them to get by and think, 'Look, I pay my tithing, I pay my mortgage, I afford my two cars, I have my five kids and at the end of the month I have paid my bills and I have fed my family'."

On Affordability: "The biggest draw to this environment is the economic feasibility, it's affordable."

Article Tools

Enter a search phrase.

Specify a Range

From  to

 

 
Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.