LEHI ECONOMIC DEVELOPMENT MESSAGE

While the fears of a looming recession are on everyone’s mind, Utah seems to be insulated from the nation. Utah is still seeing low unemployment numbers, business and job growth are on the rise, and migration and birth rates continue to grow, which helps to create a healthy economy.

The Federal Reserve started raising interest rates last year to slow our overheated economy. In theory, the cooling of housing prices could lead to increased difficulty in obtaining investment capital, resulting in business layoffs and higher unemployment rates nationally.

Despite experiencing a slowdown during the previous recession, Utah fared better than other states with lower unemployment rates and was one of the first to recover. Today, Utah is leading the nation in low unemployment and job growth. Lehi is one of the cities that is driving job growth.

In February, Texas Instruments (TI) announced the largest capital expenditure by one business in the state’s history. TI announced a new 1.2 million-square-foot facility, $11.5 billion in capital expenditures, and over 700 jobs needed for the new plant. Upon completion of the new facility, the entire campus will employ 1,500 to 2,000 employees paid a wage higher than the county’s average. Our economy will continue to be strong with this growth.

We are transitioning from a seller’s market to a buyer’s market, and Lehi is not immune to the declining home demand. Homebuyers are delaying purchases due to borrowing rates that range from 7% to 8%. This is trickling down into a reduction in building permits and new home builds.

The Multiple Listing System (MLS) has showed a significant drop in the number of homes on the market from the previous year. Though home builders might have slowed down, Lehi is still approving new subdivisions and phases for Planned Unit Developments (PUD). Upcoming developments include the approved Skye Area Plan with more than 2,700 residential units.

Thanksgiving Point is currently updating its area plan to include 2,000 residential units. Traverse Mountain still has 2,000 to 2,500 residential units to be developed. This does not include Cold Spring Ranch, Holbrook Farms or the Geneva developments. While the housing market has slowed and developers are being more cautious, homes are still being built. The recession will only be a small bump in the road for Utah compared to other states.

Our responsibility as a government entity is to be a resource and facilitator for the business community. As we look at 2023, there is exciting news for small businesses.

The city has partnered with the Mountainland Association of Governments to create a Revolving Loan Fund for Lehi businesses. The loan fund is intended to serve businesses that have been in business for at least two years, are showing a profit and need working capital to get to the next level. This loan will provide an opportunity for a business that isn’t quite yet bankable to continue to grow. For more information, reach out to the city economic dwevelopment department at 385-201-1000.

We will see a new business norm emerge through 2023. I envision our robust economy will continue to grow, creating more jobs and a demand for retail and housing. While the nation will see a recession, all economic indicators for the state of Utah and Lehi show our growth will be healthy and controlled. The key to Lehi City’s success is indeed the secret sauce — placing emphasis on family, values and heritage. Lehi City is definitely “where it’s at.”

Marlin Eldred Lehi Economic Development Director