Business in Utah - 2017

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GOVERNOR’S LETTER

Dear Reader, Utah has ranked no. 1 for economic outlook every year since 2008. Have you ever wondered how the Beehive State does it? We adhere to the conservative principles and fundamentals of economic success: low and consistent tax rates; fewer and more sensible regulations; limited and more efficient government; saving for a rainy day; respecting free markets and empowering the private sector to create jobs.

Business in Utah magazine, an official publication of the Governor’s Office of Economic Development (GOED), provides an in-depth look at these fundamentals in action. Stories cover successful public-private partnerships and exciting growth areas, as well as informative highlights and helpful how-to’s. Whether you already live and work here or you are looking for new possibilities, you’ll find Utah continues to be rich with opportunity.

Our state is full of bright thinkers, collaborators and problem-solvers. In this magazine, you’ll find insights from some of our best. We hope to show you that Utah is where you’ll find a superior business climate and a high quality of life.

With a powerful spirit of innovation and strong commitment to collaboration, Utah’s economic growth shows no signs of losing momentum. Together, we’ll ensure sustainable growth and opportunities for generations to come.

To our Utah readers: thank you for your important contributions to our state’s thriving economy. To our out-of-state friends: it’s high time you plan a visit to Utah. We welcome you to experience “Life Elevated” for yourself.

Sincerely,

Gary R. Herbert Governor

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

LEGAL INSIGHT | BUSINESS JUDGMENT | PROFESSIONAL INTEGRITY Kirton McConkie is a full-service law firm successfully representing intellectual property, corporate and business, real estate, construction, healthcare, international, employment, litigation, tax and estate planning clients.

Salt Lake City, UT | Lehi, UT | 801.328.3600 | kmclaw.com

GOED BOARD MEMBERS

Executive Director Q. Val Hale

MEL LAVITT, GOED BOARD CHAIR Needham and Company, LLC

Lavitt’s background is investment banking, focusing on capital market and M&A transactions in emerging growth, high tech, and medical industries.

JERRY OLDROYD Ballard Spahr LLP

Oldroyd is a partner in the Business & Finance Department and is a member of the Communications, Energy & Project Finance, and Government Relations Group.

JAKE BOYER The Boyer Company

President of The Boyer Company.

Managed the Gateway Project, a $375 million, 2.1 million square foot development in Salt Lake City.

Editor in Chief Director of Communications Aimee Edwards Managing Editor Hillary Bowler PUBLISHED IN PARTNERSHIP WITH

Publisher Donnie Welch

CHRISTOPHER M. CONABEE Principal, Paladin Development Partners

Chris worked for PaineWebber Incorporated from 1983 through 1997. Mr. Conabee went on to be a Founder and Principal of Paladin Development Partners.

BRENT BROWN Brent Brown Automotive Group

Brown is the owner of Brent Brown Toyota Scion in Orem.

He recently served on Toyota’s National Dealer Council.

PETER MOUSKONDIS Nicholas and Company President, CEO, and 3rd Generation Owner of Nicholas and Co., Westminster College Foundation Board Member, IFDA Board Member, Independent Marketing Alliance Board Member, and Markon Board Member.

Managing Editor Heather Stewart Assistant Editor Adva Biton Online Editor Lisa Christensen Designers Brian Hugo Amanda Nogales Research Editor Chris Sasich

ROBERT FRANKENBERG NetVentures Bob was the Chairman & CEO of Novell, the world’s largest networking software company from 1994-1996. Bob has received numerous awards including the Silicon Valley Engineering Hall of Fame.

MARGARET LASECKE-JACOBS Sundance Institute Utah Advisory Board After leaving Oracle Corporation in 2000, Margaret formed a marketing and public relations consulting firm. She now serves on the Sundance Institute Utah Advisory Board.

JOSH ROMNEY The Romney Group

Josh is the founder of The Romney Group, which owns and operates a multifamily office and industrial properties throughout the U.S.

Contributing Writers Sarah Adelman Jacob Andra Heather Beers Adva Biton Hillary Bowler Lisa Christensen Chase Christiansen John Coon Sarah Ryther Francom Rachel Madison Michael O’Malley Spencer Sutherland Gaylen Webb Contributing Illustrator Nick Jarvis

BEVAN K. WILSON

Former member of Utah State Transportation Commission, he served 12 years on the Community Impact Board, three terms as Emery County Commissioner and as former president of the Emery County Chamber of Commerce.

STEFANIE H. BEVANS Design To Print, Inc. Steamroller Copies, Inc.,

Bevans is owner and CEO of both Design To Print, Inc. and Steamroller Copies, Inc., printing graphics for organizations such as the NBA and Olympic committees since 1992.

LORENA RIFFO – JENSEN VOX Creative President of VOX Creative.

Riffo-Jensen has a decade experience in the public and private sectors.

Cover Image Erik Östling Advertising Sales Jeremy Browning Justin Dunkley Kathleen Beckman Laura South Marketing & Event Manager Lynnette Cloward Office Manager Marie Zaccaria

SUSAN JOHNSON Futura Industries

Johnson has worked in many manufacturing capacities, including as a plant manager in the largest steel foundry on the west coast.

Johnson also serves on the Zions First National Bank and University of Utah Hospital boards.

8

ANNETTE MEIER SDPI

Meier is co-founder, director, president and COO at SDPI, having more than 20 years of experience in the oil and gas industry. Meier has been the recipient of numerous awards over the years recognizing her for innovation and leadership.

UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

Published by: Utah Media Partners, LLC 90 S. 400 West Tel: 801-568-0114 Copyright 2017 by Utah Media Partners, LLC. All Rights Reserved.

Business in Utah 2017 is published through a contractual agreement with the Governor’s Office of Economic Development (GOED). Every effort has been made to ensure the accuracy of the information herein. However, Utah Media Partners, LLC, and GOED are not responsible for any omissions or errors that might occur. Furthermore, advertising material is the responsibility of the individual advertisers and appearance in Business in Utah 2017 does not necessarily reflect an endorsement of the product or service by the publisher or GOED, nor are the publisher or GOED responsible for the contents of individual advertisements. Reproduction in whole or in part of any text, illustration or photography without express written permission of the publisher is prohitibed.

TABLE OF CONTENTS COVER STORY 12 CHAMPION OF THE AMERICAN DREAM Utah Gov. Gary Herbert has already helped create the best-performing economy in the United States. Now he has his sights set on improving quality of life and maintaining economic prosperity for years to come.

FEATURES 30 READY, STEADY, GO

72 STEPPING INTO THE SPOTLIGHT

40 UNPARALLELED ECOSYSTEM

80 GOOD BUSINESS, GREAT ART

50 TAKING THE WORLD BY STORM

88 TOURING UTAH

Talent Ready Utah and other workforce initiatives are bringing business on board to help with education initiatives—all with an eye to developing a skilled workforce that meets industry needs.

Why does Utah have the largest concentration of life science companies in the country? It’s a perfect combination of world-class research universities, economic development support from the state, a large talent pool and the state’s heralded entrepreneurial spirit.

Global exports are a surprisingly large piece of Utah’s economic pie. Here’s a look at how some local companies have found success reaching beyond national borders.

58 IMPACTFUL ENTREPRENEURSHIP

Utah’s pioneering spirit has led to a vibrant entrepreneurial culture in the state. Many local entrepreneurs are driven by a greater cause, aiming to improve lives through innovation, and the state stands ready to help those efforts.

64 HOW TO BUILD A WINNING TEAM

Utah is the place for strong corporate cultures that set the stage for greater success. Here’s a behind-the-scenes look at how a few of these companies have established and nurtured their strong, unified workplace cultures.

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

Utah has no shortage of stunning vistas and charming small towns. That’s why the state has created key programs to help those rural communities leverage their tourism and filming assets.

In a state whose populous is incredibly supportive of the arts, entrepreneurial artists are finding ways to collaborate and innovate—which builds their own success while enhancing communities with greater cultural offerings.

A guide to exploring the state with ideas for “on-the-way” destinations, outdoor recreation opportunities close to home and a multi-sensory tour of Salt Lake City.

94 WHAT’S HOT IN TECH

Utah’s incredible tech hub continues to innovate. Here, we take a look at the burgeoning fin-tech sector, the state’s strong carbon-fiber manufacturing cluster and Utah’s robust broadband internet access, which is helping create jobs in rural areas.

100 WHY UTAH?

From Goldman Sachs to Vista Outdoor, global companies are finding a home in Utah. Here are some reasons why you should consider making a move to the Beehive State, too. Plus: transplants to Utah discuss what drew them here—and why they’ve stayed.

BY SARAH RYTHER FRANCOM

GOVERNOR

GARY R. HERBERT

CHAMPION OF THE AMERICAN DREAM

hen Gov. Gary R. Herbert stepped into Utah’s top leadership post in 2009, his primary goal was to make Utah the best-performing economy in America. It was an ambitious goal announced as the country steeped in the Great Recession. But Gov. Herbert wasn’t deterred by the recession or other hurdles standing in the state’s way. He brought together partners in the private and public sectors and across party lines to develop strategic plans to build economic prosperity. In the following years, Utah not only achieved the governor’s goal, but also continues to rank as the country’s top economy year after year.

Fast-forward nearly 10 years and Gov. Herbert’s commitment to strengthen Utah remains unwavering. Today, Utah is home to one of the most vibrant economies. It is a place where people want to live. Utah’s success has captured the attention of many throughout the country.

Forbes has ranked Utah the no. 1 Best State for Business and Careers for six out of the last seven years. Business Insider named Utah the fastestgrowing tech state in the country. CNBC placed three Utah cities among the top 20 places in the nation to start a business. And Utah was named the no. 1 state for business by 24/7 Wall Street. The accolades go on and on.

Gov. Herbert’s list of accomplishments for the state he loves is long, but he recognizes there’s still work ahead. Despite its economic vibrancy, Utah has challenges to overcome, such as a slowing revenue stream, low education funding, rural economic struggles and air pollution.

After winning the 2016 gubernatorial election with nearly 67 percent of the vote, the governor is evermore committed to overcoming those challenges and seeing Utah soar higher.

W

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

BUSINESS.UTAH.GOV

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GOVERNOR GARY R. HERBERT

GROWING REVENUE Utah has a strong history of fiscal conservancy, limited government and prudent taxation, and it has always strived to maintain a healthy rainy day fund with excess revenue. This conservative philosophy is one that Gov. Herbert takes to heart and believes is key to maintaining the state’s economic vibrancy.

Under Gov. Herbert’s leadership, Utah has maintained a healthy rainy day fund and is one of only a handful of states to boast a AAA bond rating. Despite the economic success Utah has experienced in recent years, Gov. Herbert recognizes there are some challenges and acknowledges the importance of maintaining conservative principals. With an eye always toward the future, the governor seeks ways to align the state’s policies with a changing marketplace.

For example, an estimated 50 percent of all purchases are made online from retailers like Amazon. Without a way to collect sales tax—a vital component of Utah’s revenue stream—the state’s revenue will decline.

“What does that mean to Utah? It means the volume of sales taxes we collect, which should be growing with the purchases that are taking place, are starting to shrink,” Gov. Herbert said. “Our economy is healthy, but it’s not producing as much money as it could be because people aren’t paying all of the taxes they owe. There’s not a good mechanism to collect it.”

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

Utah has a strong history of fiscal conservancy, limited government and prudent taxation.

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GOVERNOR GARY R. HERBERT

reformed taxes in “ We2005.lastI think it is time for us to take another hard look at our tax system to make it more fair and equitable.

“

- Gov. Herbert

The effect in Utah has already been significant. Utah’s Office and Management and Budget and the Utah State Tax Commission now estimate the owed but unpaid use tax is approximately $150 to $200 million per year and rising.

The declining sales tax is not unique to Utah—it’s a problem every state experiences as more consumers are shopping online.

“This is an issue we’re trying to address by working with our congressional delegation,” he said. “We’re working with the states to bring it to the forefront and resolve it once and for all.”

In addition to sales tax collection methods, Gov. Herbert has tasked the Utah State Legislature to examine the state’s tax exemptions. “In 1996, there were 48 tax exemptions. Today we have 89. Income tax credits have tripled over the same period of time,” he said. “We last reformed taxes in 2005. I think it is time for us to take another hard look at our tax system to make it more fair and equitable.”

No matter the issue, Gov. Herbert maintains the need for prudent fiscal management. By collecting sales taxes in a modern economy and aligning the tax structure with conservative principles, Gov. Herbert believes Utah could actually lower the tax rate and still have more revenue to invest.

“If we could do all those things and continue to grow the economy, that’s an additional $600 million that will come into the revenue stream next year. We could put it wherever we want. Imagine what we could do—we could give a tax cut or put it all into education,” he said.

ENHANCING EDUCATION Since his earliest days in office, Gov. Herbert has been a champion of education.

He recognizes a state’s economy is only as strong as its workforce—and a strong

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

We concentrate on how “much funding we put into education, but what we ought to concentrate on are outcomes—and the outcomes are pretty good.

“

workforce starts with education. But Utah is home to the fastest-growing student population in the country, which has pushed the state’s alreadystretched education funds further. Today, Utah has one of the country’s lowest per-pupil spending rates. The governor expects more for the state’s students and has set a target for a $1 billion ongoing funding increase in K-12 over the coming five years—a goal Utah is on track to meet.

While Gov. Herbert notes the need to grow education funding, he is focused on improving student achievement regardless of the dollar amount. In fact, he has set an ambitious statewide goal for Utah to be no. 1 in student achievement.

“We concentrate on how much funding we put into education, but what we ought to concentrate on are outcomes—and the outcomes are pretty good,” he said.

During the governor’s tenure, Utah’s students have had significant achievements. Since 2009, the state’s high school graduation rate has climbed from 75 to 85 percent, the 4th largest increase in the nation. In the most recent National Assessment of Educational Progress (the “nation’s report card”) Utah’s fourth graders ranked 8th in the nation for math, 7th in reading and 5th in science. Utah’s eighth graders ranked 8th in math, 6th in reading and 1st in science.

The governor is proud of the successes Utah students have had in recent years, and he continues to set the bar high. He is actively working with business executives, community leaders, parents and educators to create a 10-year plan to develop and implement local solutions that will enhance Utah’s public education and higher education systems.

Talent Ready Utah is one such solution. Launched in January 2017, Talent Ready Utah is a statewide initiative that strengthens the partnership between industry and education to establish work-based learning opportunities and

- Gov. Herbert

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does better education mean to the people of Utah? If you’re a parent, it “ What means your child will have a job locally. It means you don’t have to export your children to some other place because they can’t get a job in your hometown.

We’re ensuring quality of life for generations.

“

- Gov. Herbert

connect students to on-the-job training experiences. It is a win-win solution giving Utah students the skills they need to get in-demand jobs, while also answering industry’s call for a skilled workforce. Talent Ready Utah is anticipated to help fill 40,000 new high-skill, high-paying jobs during the next four years.

“This means we’ll have the labor force the market wants and it makes Utah even more attractive as a place to do business,” Gov. Herbert said. “It will ensure that the next generation will have a very healthy, prosperous and expanding economy in Utah. Education is key.”

As Utah’s education opportunities continue to grow, Gov. Herbert is excited to see not only a stronger economy, but also an enhanced quality of life for Utah families. “What does better education mean to the people of Utah? If you’re a parent, it means your child will have a job locally. It means you don’t have to export your children to some other place because they can’t get a job in your hometown. We’re ensuring quality of life for generations.”

CREATING STATEWIDE PROSPERITY While most of Utah is experiencing unprecedented economic growth and success, the picture is different in some areas of rural Utah. In some of the state’s smaller towns, the unemployment rate is as high as nearly 10 percent. Although some young adults want to stay in the towns they grew up in, finding work is often a challenge that forces them to leave to find more opportunities. Meanwhile, some businesses struggle to find workers to fill specific jobs. It’s a challenging cycle that creates a difficult economic landscape.

Though this story isn’t true for the majority of Utah, it’s one that Gov. Herbert is committed to change. The governor recently announced a goal of creating 25,000 new jobs in the 25 counties outside of the Wasatch Front during the next four years. He wants to see every corner of the Beehive State become a place where businesses succeed and people can find employment.

Gov. Herbert recognizes there isn’t a one-size-fits-all solution to improving the economy of rural Utah—each region has unique challenges and assets. That’s why his plan begins at the local level. Instead of telling communities what they should do, Gov. Herbert wants to empower each region to determine the factors and industries it needs to succeed.

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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GOVERNOR GARY R. HERBERT

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

to make sure “ Weeverywantcommunity can continue growing and to make sure their population will have every opportunity to have a good job close to home.

- Gov. Herbert

“

He respects every community’s sovereignty to discover and develop its unique strengths.

“We don’t want the state to dictate ‘this is what you’ll be when you grow up.’ We may not know what your assets and liabilities are, but the people on the ground—the local people—they do. They know their community. At the state level, we ought to be a facilitator to help them achieve their goals.”

Under the governor’s leadership, the Governor’s Office of Economic Development (GOED) and its Office of Rural Development have deployed numerous programs to help rural communities succeed. One such program is the Rural Fast Track, which provides post-performance grants to small companies. According to GOED, the program provides an efficient way for existing, small companies to receive incentives for creating high-paying jobs and to further promote business and economic development. The program has already helped several companies, including land surveying business Johansen & Tuttle. The family-owned company received a $30,000 grant used to purchase sophisticated surveying, imaging and 3-D scanning systems.

“We want to make sure every community can continue growing and to make sure their population will have every opportunity to have a good job close to home.

Reaching that goal will require unprecedented partnerships to grow and diversify the economy in rural Utah. We’ll need to work together to create 25,000 new jobs in the rural and outlying parts of Utah,” the governor said. “If you don’t have a job, life will be miserable no matter where you live. Having a job is the basic foundation of having a healthy economy, which is my number one focus.”

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GOVERNOR GARY R. HERBERT

moving in the right direction. By 2019 we “ We’re will meet all federal standards for air quality

“

along the Wasatch Front. If we all do a little bit, we can do a lot together.

- Gov. Herbert

and outdoor fun, its mountainous geography creates a unique problem for the Greater Salt Lake and Cache Valley areas: weather-induced inversions leading to air pollution buildup in the valleys. An inversion occurs when cold air is caught under a layer of warm air. The warm air acts like a lid, keeping air and pollutants trapped within the bowl-like valley. Northern Utah experiences inversions and, therefore, has unhealthy air pollution approximately 18 days a year.

“It’s 18 days too many,” Gov. Herbert said. “Even though we pollute less per capita than other metropolitans of our size, our geography tends to trap pollution in the valley.”

Just like any other challenge, Gov. Herbert has taken bold steps to help solve this problem and clear Utah’s air. “We are working with industry and commercial enterprises to put into place an estimated 30 new rules and regulations forcing them to have best available technology and reduce their footprints of pollutants,” he said.

Under Gov. Herbert’s leadership, the state put into place requirements for refineries to implement high standard emission controls, as well as encouraged builders to construct energyefficient buildings and homes. The state has also expanded its mass transit at record pace to get more vehicles off the road.

Moreover, Utah is paving the way in alternative energy and is one of the country’s top 10 states for electric vehicle adoption and compressed natural gas infrastructure.

Gov. Herbert believes air pollution is a problem everyone must work to solve, so he created the Utah Clean Air Partnership (UCAIR), a statewide initiative educating individuals about what they can do to help, such as carpooling and turning down thermostats.

The hard work of industries and individuals to combat air pollution is paying off. “While Utah’s population increased by more than 600,000 between 2002 and 2014, total statewide emissions declined by 30 percent. That’s a 46 percent reduction in per capita emissions,” Gov. Herbert said. “We’re moving in the right direction. By 2019 we will meet all federal standards for air quality along the Wasatch Front. If we all do a little bit, we can do a lot together.”

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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GOVERNOR GARY R. HERBERT

“

“

We have the largest middle class in America, and there’s great opportunity for upward mobility. Your chances of moving up the ladder are better in Utah than anywhere else. That’s the American Dream, and it’s alive and well in Utah.

- Gov. Herbert

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

LOOKING FORWARD Working together to solve big problems is exactly how Gov. Herbert chooses to lead the Beehive State. And though Utah has its share of challenges, a can-do culture and will-do work ethic helps the state come out on top. Today, Utah is home to a bustling citizenry and a vibrant economy that is the envy of states throughout the country.

In the nearly 10 years since Gov. Herbert became Utah’s leader-inchief, the state has grown by leaps and bounds, despite the challenges it has faced. But it isn’t the state’s economic success that makes Gov. Herbert a standout among his peers—it’s his commitment to set and meet ambitious goals by forging partnerships among private and public organizations, as well as reaching across the aisle to work together.

No matter which issue he is tackling, Gov. Herbert’s final goal is to improve the lives of each and every Utahn. Boasting an approval rating of close to 70 percent, Gov. Herbert has been named one of the country’s most popular governors for several years running. It’s his love for the people of Utah that keeps him going.

“We have a very bright future in Utah. People are optimistic and happy. We are in a very good place, economically. And as the economy continues to grow and expand, it provides a foundation upon which we can build a good quality of life,” he said. “We have the largest middle class in America, and there’s great opportunity for upward mobility. Your chances of moving up the ladder are better in Utah than anywhere else.

That’s the American Dream, and it’s alive and well in Utah.”

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GOVERNOR GARY R. HERBERT

LIEUTENANT GOVERNOR SPENCER COX A Passion for Rural Utah

Utah Lt. Gov. Spencer Cox says it’s an honor to serve as Gov. Herbert’s second-in-command. Cox grew up in a family that prioritized giving back to the community. “My dad was a public servant. He was the mayor of the small town I grew up in. My parents always taught us that we have a duty to give back—it’s part of living in a community. Giving back is what I’ve enjoyed the most over these past years as Lt. Gov.” Since joining Gov. Herbert’s leadership team in 2013, Cox has been pegged as the state’s rural advocate. It’s a reputation he’s proud of. A sixth-generation resident of Fairview, Utah, Cox understands the unique challenges rural communities face.

“I love rural Utah because it’s part of who I am. I’m raising my kids on the same family farm my family settled 160 years ago,” he said. “I’ve been able to see some of the difficulties rural Utah faces. There’s a big misunderstanding about the capabilities of rural Utah, and there are misunderstandings about the incredible people who live and work there every day. The problem is there is a lack of opportunity for people. I’m one of the few who got to come back. I feel a duty to help.”

Lt. Gov Cox is especially supportive of programs aimed at growing rural communities. Programs like Rural Fast Track grants, Business Expansion and Retention (BEAR) and Enterprise Zone Tax Credits have helped several small businesses expand and hire more workers. The state also brings tech jobs to rural communities through programs like the Aerospace Pathways and Talent Ready Utah initiatives.

“Overall, there’s a two-pronged approach. Initiatives like Rural Fast Track and BEAR are dedicated to expanding existing businesses. We’ve found the most effective way to increase employment in rural Utah is to help businesses grow,” Cox said. “We’re also trying to attract businesses to rural Utah—businesses that need to expand their operations. We have a shortage of labor along the Wasatch Front, so it can be difficult to fill positions. Yet we have high unemployment in rural areas. We are looking at new opportunities to help businesses relocate and expand into rural Utah.”

Cox is also passionate about breaking the cycle of inter-generational poverty, an unfortunate trend in many rural areas. “Inter-generational poverty is corroding our society and leading to family breakdown, opioid addiction, increase in suicide and general sadness. We are committed to using best practices and to growing opportunities. We want to give families hope, give them an education and break the cycle,” he said. “This past summer, we met with 10 counties susceptible to inter-generational poverty, and we are working closely with them to create plans to combat poverty.”

Whether it’s helping businesses grow or seeing families find happiness, Cox said it’s all about enhancing communities. “I get to see people on their best days and their worst days. I hand out awards and help open new businesses, but I also spend time with people during tragedies. When there was flooding down in southern Utah and two families were washed away, I was able to spend time with those who survived. I was able to see communities pull together. Those are the things that keep me going.”

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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READY, STEADY,

GO

TALENT READY UTAH INTENDS TO HELP SOLVE PIPELINE AND WORKFORCE CHALLENGES IN THE STATE hen your state has an unemployment rate of 3.1 percent, it would be easy to sit back and celebrate.

But in a state like Utah, with a varied and robust economy and industries booming like never before, that number is taken more as a call to roll our collective sleeves up rather than rest on our laurels. New, highpaying jobs are being created in the state, and companies want to hire local talent to fill those jobs. With the speed of technology and industry setting the pace, it’s no longer enough to rely on traditional educational models alone. It’s imperative to continually develop innovative models that deliver candidates work-ready to company doorsteps.

In his 2017 State of the State address, Gov. Gary Herbert unveiled Talent Ready Utah, a program that will “focus and optimize the efforts businesses make to enhance education.”

“The Talent Ready Utah program is a way for us to ramp up our partnerships with business and industry,” said Tami Pyfer, education advisor to the governor.

“What we’re realizing more and more is that for education to provide students with the skills they need to succeed, we must have those industry and business partners help us understand what those ever-changing skills are. Things are changing more rapidly now than they ever have.”

The governor said he expects the program will help fill 40,000 new high-skill, high-paying jobs in the state during the next four years. Now, the call is out to leaders of Utah’s industries: help make it happen.

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IN THIS TOGETHER “It’s one thing to sit on the sidelines and watch and say, ‘Education needs to do a better job preparing students to do x,’ and it’s another thing to say, ‘Education needs to do a better job preparing students to do this—and here’s how I’m going to help them,’” Pyfer explained. “We’re all in this together.”

Partnerships between education and industry have long existed—Pyfer emphasized that almost every school in the state already benefits from these partnerships, albeit on a smaller scale than what Talent Ready Utah is encouraging.

Partnerships that help stock classroom supplies or provide new microscopes for the school’s science lab are valuable and treasured, but Talent Ready Utah wants to spur these partnerships to a new level.

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When looking at the blossoming tech industry, it’s easy to see where these partnerships are crucial. Code.org reports that there are 4,121 open computing jobs in the state, but only 1,797 computer science graduates—and that although most parental respondents want their children to study computer science, only 40 percent of Utah’s schools offer computer programming.

Enter InsideSales CEO Dave Elkington and the company’s Do Good Foundation.

Elkington knew that offering computer science and coding in schools didn’t necessarily have to come from the educators themselves: it could come from people like him and his employees, instead. Elkington set up a foundation that gives 1 percent of product, 1 percent of employee time and 1 percent of company revenue to impact others. Elkington and InsideSales.com hosts an annual Girls Code event where girls ages 8-12 come to the company’s Provo campus and learn coding.

But that wasn’t enough for Elkington or InsideSales.com. Every Friday, InsideSales.com employees visit 225 fourth-, fifth- and sixth-graders at Maple Ridge Elementary School and teach three 45-minute classes on the foundations of coding. The company also donated 28 Chromebooks and a Chromebook charging cart to help students more fully understand the concepts. “[Elkington] issued a challenge. He said every company ought to adopt a school.

He said, ‘Let’s develop more public-private partnerships. Let’s make sure the private sector has some involvement in education,’” said Gov. Herbert last year at a Beehive Startups event. “You’re the end user. You’re the one going to hire the kids. They’re going to be your future employees that are going to help elevate your company and boost profitability—so you have a vested interest in making sure the education system works. Let’s all pull together.”

Still, for some companies, that gap between industry and education might be difficult to bridge. Where can you start?

A number of apps and online portals are in development now. Several industry partners, with the support of the Utah Technology Council, the Women Tech Council, the State Board of Education and the STEM Action Center, are working on hands-on resources for teachers and industry leaders alike. Launched earlier this year, TalentReadyUtah.com contains contact information for CTE directors and educators across the state. The site also includes a career pathways guide and instructions to help invested partners create their own programs utilizing stackable credentials and work-based learning opportunities. In the coming years, TalentReadyUtah.com will function as a one-stop-shop for workforce solutions through industry-education partnerships.

Input from organizations like the STEM Action Center is also particularly helpful because many industry executives are keen to help, but know little about curriculum.

“The STEM Action Center is needed to bridge that gap between the curriculum piece, what’s being taught in schools, and preparing the workforce,” said Sara Jones, COO of the Women Tech Council. “I think we can do a better job at integrating computer science curriculum throughout all the levels. When you talk about coding in schools, a lot of people don’t understand that you can teach coding in a way that also reinforces the literacy and math that students are learning.”

the end user. You’re “ You’re the one going to hire the

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kids. They’re going to be your future employees that are going to help elevate your company and boost profitability—so you have a vested interest in making sure the education system works. Let’s all pull together.

- Gov. Gary Herbert

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WORK-BASED LEARNING Talent Ready Utah isn’t just looking to bring industry into primary education.

Instead, the initiative is a continuum, Pyfer said, looking for all the ways industry and businesses can be involved throughout the education system. “We want to create students who have the skills and the capacity and the desire to fill those high-demand, high-paying jobs,” she said.

Part of reinforcing the desire for those jobs is making sure students know those career paths even exist. To that end, Women Tech Council is doing its part through a program called SheTech. The high school program is what Jones called

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

you talk about coding “ Whenin schools, a lot of people don’t understand that you can teach coding in a way that also reinforces the literacy and math that students are learning.

- Sara Jones COO of Women Tech Council

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an “industry-led, mentor-based, hands-on STEM learning experience,” where thousands of high school students get to interact with hundreds of industry mentors, participate in workshops and get hands-on with technology. This makes it easier to ignite passion and help students get into STEM pathway programs, internships, obtain certifications, or find scholarships. Importantly, students get to see by interacting with so many technology company mentors that STEM touches every industry, no matter which career field they choose, and there are so many possibilities.

Several Pathway Programs—such as the Medical Innovations Pathway Program, the Utah Aerospace Pathway Program or the Diesel Tech Pathway Program—have already been established and are drawing high school students into careers they may not have known about otherwise.

And while it may seem like STEM fields are getting all the attention, there are plenty of programs out there for other career options as well. Skilled labor programs are sprouting all over the state, helping students who love hands-on education find their niche in industries hungry for talent. A good marriage between the two?

Hunt Electric’s electrician apprenticeship program.

“Right now, the average age of a person in skilled trade is roughly 55 – 56 years old, across the country. That’s rather profound,” said Cody Eaton, operations manager at Hunt Electric. “For every new person coming into the skilled trades, three are retiring.”

This creates a wealth of opportunity for those students who enjoy learning with their hands, said Eaton. Hunt Electric’s program is a four-year program with onthe-job training and schooling at a tech or community college. At the end of the program, there’s an exam offered by the state that allows the apprentice to become a “bona fide Utah electrician,” Eaton said.

“At today’s rate, entry-level journeyman electricians just finishing the program can expect to make between $60 and $65,000 a year,” he said. “Because many skilled trade contractors provide tutition reimbursement, most complete the program with little to no debt. We’ve been presenting this approach to Utah’s youth for the past few years, and it’s been exciting to see our message is gaining momentum.”

Eaton explained the apprenticeship program provides full-time employment

READY, STEADY, GO

with full benefits from day one. Where a graduate of a traditional 4-year college program will have to look for a job, apprenticeship graduates already have one. What’s more, many of them stay with the employer that helped them with their training, working their way up to leadership roles.

Apprenticeship programs aren’t new, but programs like Hunt Electric’s are specifically targeting the next generation workforce. Many students and educators don’t know that apprenticeship programs are available for those looking to avoid student debt and dive directly into a career path with room for advancement and opportunity. “The beauty of being a skilled tradesman is that I don’t fear being outsourced to another country. We see that all the time, but that doesn’t happen with the skilled trades. You’re here,” Eaton said.

The program has made others in the skilled-trade industry sit up and take notice. Eaton said that Hunt Electric has been engaging with other trades, like plumbing and HVAC, about their educational platform. “You’re seeing these other tradespeople getting out there at these events. We’re picking up speed. We’re seeing the rewards and success of the other young people,” he said.

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You want kids who think “differently, who are creative, who can innovate. I see a lot of opportunity for these types of partnerships.

- Tami Pyfer Education Advisor to the Governor

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BRIDGING GAPS Help and collaboration from the industry can help break down biases and barriers.

The most obvious example is through encouraging minorities and girls to go into fields like STEM, where they are sorely needed. But having industry poke its head into curriculum also points out the marriage between certain disciplines students often don’t think can mix—for instance: science and art. The Beverley Taylor Sorenson Arts Learning Program offers specialists in visual art, dance, music and theatre to elementary schools, where they work with teachers to develop lesson plans that incorporate theses arts.

“High-tech companies are hiring students with liberal arts degrees because they need people on their team who can see the bigger picture and effectively articulate the work of their company,” Pyfer said. “We’re trying to develop those critical thinking skills, those writing skills, or creativity itself—there’s a need for including the arts in education. Getting students to demonstrate their science or technology understanding through a creative project is really important—especially for our Silicon Slopes companies and our entrepreneurs. You want kids who think differently, who are creative, who can innovate. I see a lot of opportunity for these types of partnerships.”

“There are so many ways that you can partner with industry and education. We want to highlight all the innovative ways people are trying to get into the talent pipeline,” Jones said. “Talent Ready Utah is really timely. I don’t think there’s been an initiative like this that has put the spotlight on the critical need for collaboration.

Industry needs to be at the table, and in some ways, needs to lead. That’s what Talent Ready Utah is going to be doing for the state. It’s giving that opportunity for industry to step up and say: ‘We’re ready to listen and we’re ready to problem solve this. How can we help?’”

ON THE PATHWAY

Q &A with Utah Aerospace Pathways Graduate Emma VanderHoeven, fabrication specialist at Boeing HOW DID YOU GET INVOLVED WITH UTAH AEROSPACE PATHWAYS? I took a couple of engineering classes in high school. I was in one my senior year and my teacher mentioned it. I’d never considered the aerospace side of engineering, and I thought I’d apply.

WHAT WAS YOUR EXPERIENCE LIKE IN THE PROGRAM? We’d go onto the shop floor. We’d be in groups of two and switch up what position on the line we’d be on so we could get a good perspective of what it’s like. We came twice a week for two hours, and then we’d go to the West Jordan facility on weekends.

We had to do 60 hours at the community college in a composites class. I did it in Kaysville. We started in January, and we went through the basics of the fabrication layouts. It was kind of nice having that before we came and did work here at Boeing, because I felt like it gave us an idea of the basics, of what goes into the product and where it begins. I liked getting that perspective.

HOW DO YOU FEEL UTAH AEROSPACE PATHWAYS PREPARED YOU FOR THE FUTURE? I just feel like it helped me see more of the direction I want to go with my future career. I really have a greater interest for this line of work now—more than I imagined when I started. Now I really see myself going this direction. That’s the big difference it made for me.

LOOKING BACK, HOW DID YOUR EXPECTATIONS MEASURE UP WITH YOUR EXPERIENCES? I feel like I saw a lot more than I expected to see. I had no idea of how much went into aerospace composites and how many people actually work on these projects. Being a part of this program is just really cool. I didn’t think I would ever get that sort of feeling out of an internship.

WHAT WOULD YOU TELL OTHERS THINKING ABOUT TRYING OUT THE UAP PROGRAM? I would definitely tell them to go for it. Even if you don’t know, or you aren’t totally sold. Like I said before, I never thought I would work in aerospace. Being able to do the internship changed my perspective. I would tell them to keep an open mind, listen and learn. You learn a lot and it’s a really cool experience.

I’m working at Boeing now on the production line. I’m doing full-time work here and school at the same time.

BUSINESS.UTAH.GOV

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UNPARALLELED ECOSYSTEM

WHY UTAH IS FERTILE GROUND FOR GROWING AN EXCEPTIONAL LIFE SCIENCE INDUSTRY

Between its research universities and an excellent ecosystem for entrepreneurship and commercialization, Utah’s life science industry is at the cutting edge of innovation in medical devices and equipment, research and diagnostics, biomedical distribution and more. Yet it is likely one of the state’s most unheralded industries.

BioUtah, the life science industry trade association in Utah, brought in investors for its annual Entrepreneur and Investor Life Science Summit in February. Upon meeting the entrepreneurs and learning about the industry, the categorical response from investors was, “I had no idea,” recalled Kelly Slone, BioUtah president and CEO. “They were surprised about what is going on in Utah.”

Utah’s life science industry is eye-opening, to be sure. Perhaps that is because the medical device sector has the highest location quotient (LQ) in the nation. Its industry concentration, according to data from the Economic Development Corporation of Utah, is an unsurpassed 3.48, well above the national average of 1.0. Anything above 1.25 is considered an economic advantage.

What’s more, the state ranks 13th in the country for life science employment. Utah’s life science industry employment increased by 25 percent between 2011 and 2015—faster than the national average, and faster than the traditionally high-tech state of California. Hundreds of companies employ approximately 30,000 Utahns in a diverse range of manufacturing and R&D jobs in the medical device, biopharmaceutical, diagnostic testing, medical labs and contract research sectors, generating $15 billion annually in economic activity.

The same dynamics that drive the state’s high-flying tech sector also drive its vibrant life science industry: an increasing flow of STEM-educated graduates in the talent pipeline, ample and low-cost real estate, a businessfriendly regulatory environment and an ecosystem that encourages entrepreneurship.

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Life science companies generally have long development cycles and fairly robust regulatory paths they need to climb. Therefore, the state has variety of programs in place to support life science companies at their different stages of development.

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- Ivy Estabrooke USTAR

“Utah has an unparalleled ecosystem,” Slone said.

“Respected research universities, the Huntsman Cancer Institute, Intermountain Healthcare, active industry leaders, an entrepreneurial atmosphere—each of these elements plays a role in helping the life science industry thrive in Utah.”

RICH RESEARCH ENVIRONMENT—THE CATALYST FOR LIFE SCIENCE GROWTH Ivy Estabrooke, executive director of the Utah Science Technology and Research (USTAR) initiative, said the state’s robust life science industry is fueled by extensive idea generators found in Utah universities.

USTAR’s mission is to build Utah’s innovation ecosystem.

While USTAR’s model has recently evolved to include more business support and commercialization, the agency spent much of the last few years expanding universities’ research capacities and laying an important groundwork for businesses today.

“We recruited some of the best scientists globally to come to Utah and build research programs here,” Estabrooke said.

“These researchers have contributed significantly to Utah’s 30 percent increase in federal research funding in the last five years, and that is fabulous. In order for research programs to be successful, they really need robust federal funding.” According to the National Science Foundation, Utah ranked no. 2 in federal research funding growth between 2010 and 2015.

“The local universities play an important role in the strength and the growth of our community,” said Jeff Nelson, president of Nelson Laboratories. “They help us not only with talent … The research institutions are doing a great job of finding technology, developing it, and creating new products and services that are catalyzing our growth as a life science community.”

Founded in 1985, Nelson Laboratories is a Utah-based medical product testing company that works with manufacturers worldwide to ensure their products are safe, sterile and functional. Nelson said that in addition to the research climate, the state’s overall environment, including business support, low taxes, government incentives and employee access, have contributed to the company’s success.

Today, Estabrooke said, the University of Utah is a leader in health science research, and Utah State University is a leader in agricultural science. Other universities turn out a surprising number of inventions and startups related to life sciences. Many have close working partnerships with Utah companies like Nelson Laboratories. While funding for research is promising, capital for business growth presents a unique challenge.

CAPITAL—INVESTING IN INNOVATION Andrew Laver, director of the life science cluster for the Governor’s Office of Economic Development (GOED) laid out the numbers: According to the National Venture Capital Association, in 2016, 99 Utah startups raised more than $1.1 billion in venture capital investment, but only a small fraction of those dollars went to life science companies. Laver, who also works as managing director of APL Capital Advisors, has more than 15 years of experience in life science funding.

“Access to capital is a continued concern,” he said.

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Photos Courtesy of USTAR

“Considering the industry’s growth trajectory, we need to secure more capital to support it. Thankfully Utah excels at collaboration, and I think together we can find solutions to better support our life science industry and maintain its vibrancy.”

Assisting entrepreneurs, startups and small businesses is essential to the industry as a whole, Estabrooke said. A life science company is not typically the type of business you can build and make profitable out of your basement.

“Life science companies generally have long development cycles and fairly robust regulatory paths they need to climb,” Estabrooke said.

“Therefore, the state has variety of programs in place to support life science companies at their different stages of development. We want to keep those life science activities here in Utah, so we work to help them obtain the capital and human resources they need to grow and thrive.”

In response to these challenges, the state provides many resources, grants and incentives. New USTAR programs such as the Technology Acceleration Program (TAP) and University Technology Acceleration Grant (UTAG) provide competitive funding for Utah companies and researchers. The life science sector is strongly represented in both of these funding programs.

Estabrooke explained that TAP and UTAG support both researchers in the university setting and companies that need help making their product viable when federal funding has run out and there is still significant technical risk that needs to be taken out of the equation before they see real revenue.

The Governor’s Office of Economic Development (GOED) provides support in the form of post-performance financial incentives to qualifying companies for creating new, high-paying jobs in the state. Life science is one of GOED’s targeted industries in these recruitment efforts. On a smaller scale is GOED’s Technology Commercialization and Innovation Program (TCIP), which helps companies secure non-dilutive funding at critical points in their funding and commercialization cycles by 44

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providing grants of up to $100,000 to qualifying applicants. Although the program is industry agnostic, numerous life science companies have benefited from these grants. GOED also manages a life science tax credit available to investors that support life science companies through latestage funding and ultimately prepare them for venture capital.

Organizations such as GOED, USTAR and BioUtah, in partnership with industry and education institutions, collaborate to draw greater attention from the investment community to support Utah’s innovative life science sector. In the meantime, the state’s signature entrepreneurial spirit goes a long way.

INCUBATION—A SUPPORTIVE STARTUP CULTURE IS MORE THAN DOLLARS “Nearly everyone in Utah is an entrepreneur,” Estabrooke said. “Utah has an innovative culture. Having the research universities here to foster early ideas and de-risk the technology, coupled with the entrepreneurial lifestyle that most Utahns live and breathe, creates an incredible environment.”

Slone pointed to the University of Utah’s Center for Medical Innovation as a shining example. The program—which combines the university’s engineering, health sciences, tech ventures and business schools—works with companies to help shorten regulatory and development time for medical devices, ultimately accelerating their commercialization.

GOED also recognizes that funds are just part of the acceleration equation. They contract with a local business incubator to provide TCIP grant recipients with mentoring services and training on everything from pitching to basic growing and scaling.

Other important resources for Utah’s life science companies include USTAR’s state-of-the-art facilities such as the Synthetic BioManufacturing Facility at Utah State University, the BioInnovations Gateway (BiG) located in collaboration with the Granite School District,

UNPARALLELED ECOSYSTEM

like mine need “ aCompanies lot of talent, and we need

“

great talent. That’s one of the strengths of Utah. More and more, our education system is developing great people we can access to grow our companies.

- Jeff Nelson Nelson Laboratories

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and the Utah Nanofabrication Facility (Nanofab) at the University of Utah.

The Nanofab brings together experienced researchers, engineers and scientists with backgrounds in nano-fabrication, nano-scale surface analysis and industrial process design, while the Synthetic BioManufacturing Facility optimizes large-scale development and production of bio-products and raw cell material. Both facilities support university faculty, researchers, students and private industry. BiG serves as a life science incubator for emerging biotech and medical device companies and helps train the next generation of bio-innovators in partnership with Granite School District’s BioManufacturing program.

BiG provides 25,000 square feet of space including wet and dry labs, a clean room, offices and meeting space for up to 14 companies at a time.

“BiG allows life science companies to build a firm footing as they move from the early research stages of development into more mature ventures,” Estabrooke said. “When they graduate, they are poised to begin manufacturing or seek greater investment opportunities.”

The list of resources for life sciences is growing. “Part of what keeps us a vibrant community is that we have enough critical mass in the life science (sector),” Estabrooke said. “It’s relatively easy to establish new startups because we have the expertise and systems for them to grow and thrive here.”

WORKFORCE—A LONG-TERM INVESTMENT In addition to incubation, BiG provides exceptional opportunities to high school students. BiG companies are required to provide internships to high schoolers. “We’ve seen BiG create a pathway for students who intern for those … early-stage, entrepreneurial life science companies,” Estabrooke said. “Given the skills they develop in that setting, they are equipped for jobs as they leave high school. We’ve seen many of them picked up by the life science community.”

Nelson called talent the “lifeblood of our growth,” adding that talent is one of Utah’s advantages. “Companies like mine need a lot of talent, and we need great talent,” he said. “That’s one of the strengths of Utah.

More and more, our education system is developing great people we can access to grow our companies.”

For example, businesses and education collaborated with forwardlooking state leaders to create the Utah Medical Innovations Pathways (MIP) program, an educational roadmap that can lead high school and college students to meaningful careers in the life science industry. The program launched in September of last year.

To develop the MIP program, BioUtah and 14 life science companies worked with education and government partners, including Granite, Canyons and Davis School Districts, Salt Lake Community College, GOED, the Department of Workforce Services and the Utah State Board of Education, to define a set of courses that will prepare high school seniors and adult learners for careers in the life science industry.

Industry partners include Bard Access Systems, BD Medical, BioFire Diagnostics, Biomerics, CoNextions Medical, Edwards Lifesciences, EZ Lift Rescue Systems, Fresenius Medical Care, GE Healthcare, Merit Medical, Nelson Labs, Sorenson Genomics, Stryker Corporation and Varian Medical Systems. USA Funds provided a $1 million grant to the state to develop the MIP program.

The MIP program offers both a medical device and laboratory track.

All MIP students are required to take a foundation manufacturing

WHY STEM? In the last 10 years, growth in STEM jobs has been three times greater than non-STEM jobs.

Technological innovation accounted for almost half of U.S. economic growth over the past 50 years, and almost all of the 30 fastest-growing occupations in the next decade will require at least some background in STEM. People with degrees in a STEM field make on average $10,000 more a year than people with degrees in other areas.

The unemployment rate for people with STEM degrees in Utah is 1.6%, compared to 2.9% for people with a degree in other fields.

There are more than 8,000 tech jobs open in Utah today, with the average tech salary at $72,000.

Sources: Utah System of Higher Education; Utah Data Alliance; U.S. Department of Commerce

The Utah STEM Action Center works with parents, teachers and industry to connect students to education and career pathways that help them to dream big and do big!

GET INVOLVED NOW! Sign up now for our monthly newsletter and find out the latest and greatest in STEM. http://stem.utah.gov/newsletter

Our Utah STEM Bus travels to schools statewide providing hands-on STEM learning. Find out how your company can get involved now! https://stem.utah.gov/stembus

Share your STEM events with us, and we’ll put them on our website and share them on our social media. Email: stem@utah.gov

Participate in Utah’s Annual STEM Fest by having your company exhibit and sponsor. utahstemfest.com

stem.utah.gov

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Photos Courtesy of USTAR

course, followed by their choice of either a medical device course or a laboratory course. This spring, MIP students will participate in a workbased learning experience such as an internship or job shadow. Students who successfully complete the program are guaranteed interviews with partner companies.

A STEADY FOUNDATION AND PROMISING FUTURE Utah enjoys a foundation provided by global medical device stalwarts such as Bard Access Systems, BD Medical, Edwards Lifesciences, Merit Medical and Stryker. In addition, the state boasts sophisticated medical and genetic testing companies, such as ARUP Laboratories, Myriad Genetics, BioFire Diagnostics, Sera Prognostics, Lineagen and Sorenson Genomics. ARUP, for example, is a national leader in clinical and anatomic pathology reference laborites, while Myriad is a global molecular diagnostics company with a broad number of diagnostic procedures related to cancer detection and treatment.

In addition to larger companies, there are some key startups Slone said are worth watching. These include Tolero Pharmaceuticals, developing oncological and hematological therapies; Recursion Pharmaceuticals, combining innovative science with machine learning 48

UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

techniques to discover new therapies for rare genetic diseases; iVeena, developing innovative ophthalmology drug delivery products; PEEL Therapeutics, developing a protein therapy for cancer; and Xenocor, a surgical imaging startup developing a low-cost laparoscopic camera system and accessory technology for low-resource settings.

“I think we’re right on the cusp of something great here in Utah,” Nelson said. “We have companies that are ready to grow to that next level, and we have the right environment to facilitate that growth.”

Looking ahead, Slone said emerging and growth industries within Utah’s life science sector include healthcare IT, service-based companies, advanced manufacturing, genomics and personalized medicine, and stem cell therapies.

“Utah is unique,” Slone said. “We have decades of innovation history. How can you ignore achievements like the first artificial heart, the first artificial lung, the first artificial kidney, the first time-release medication, our leadership in genetics, Myriad Genetics’ discovery of the BRCA1 and BRCA2 cancer genes? We have so much history and so much promise. The world—and particularly investors—needs to know about Utah’s life science industry.”

From surgical suites to patient rooms to conference rooms.

In scrubs, suits, or sneakers.

With stethoscopes, computer code, or mops.

We are all caregivers.

Healthcare

BY JOHN COON

TAKING THE

WORLD

BY STORM HOW UTAH COMPANIES ARE ACHIEVING OUTSIZED SUCCESS IN GLOBAL TRADE t all started with a simple effort to limit power outages caused by animals.

Kaddas Enterprises created plastics designed to protect power and energy infrastructure in rural areas from being damaged by wildlife, since animals cause 20 percent of power outages in the United States.

Once the Salt Lake City-based company took off, expanding its market to other countries became a very real possibility.

“Our goal is simple,” said Natalie Kaddas, CEO of Kaddas Enterprises.

“It’s to eliminate 20 percent of all power outages. We took that same message internationally, and we started focusing on one country at a time where the animal population and rural power structures are greater.”

Starting in 2013, Kaddas Enterprises began exporting to Mexico. From there, the company moved into the Middle East and Australia. Exporting quickly turned into a major boon for the company, which has grown 400 percent yearover-year since that time.

Creating a worldwide footprint is a priority for many Utah companies, and exporting has become a key economic driver within the Beehive State. It forms a major component of the state economy and is growing by leaps and bounds compared to national trends.

I

CREATING EXPORTING STRENGTH Exporting is a staple of Utah’s continued economic growth. Twenty-two percent of Utah jobs are supported by international businesses. A total of 3,544 Utahbased companies export goods and services to markets outside of the United States, and 85 percent of these exporters are small to medium-sized businesses.

Utah exports generated $13.3 billion in revenue in 2015—a 9 percent increase from the previous year. It helped the state rank No. 4 nationally in export growth.

This success has not gone unnoticed outside of Utah. Many international leaders visited the state to find out what makes Utah businesses such dynamic brands in the global marketplace.

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MAKING CONNECTIONS Making inroads into international markets requires a specific framework. What works in one country isn’t always the right approach for another one.

Spectra Symbol learned those lessons quickly when it decided to enter untapped global markets a little over a decade ago. The Salt Lake City company creates specialty circuits and sensors for medical devices and other electronic equipment. It sensed enormous growth potential for those products outside of the United States.

Spectra Symbol dove head first into exporting, said CEO Daniel Marriot. The company 52

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Daniel Marriott, CEO of Spectra Symbol, poses with Gov. Gary Herbert at World Trade Center Utah

Utah brand is growing “ Theexponentially abroad as Utah companies continue to sell top-notch products.

This positive exposure has opened doors for other companies looking to expand globally and made Utah one of a few states in the nation with a trade surplus.

- Derek Miller President & CEO of World Trade Center Utah

“

“The Utah brand is growing exponentially abroad as Utah companies continue to sell top-notch products. This positive exposure has opened doors for other companies looking to expand globally and made Utah one of a few states in the nation with a trade surplus,” said Derek Miller, president and CEO of World Trade Center Utah (WTC Utah). “WTC Utah will continue to work with these trailblazing companies to provide them with resources that will help them grow their international presence.”

Utah benefits from having a multitude of internationally focused business owners who are unafraid to strike out into global markets. Many first grew familiar with other cultures and people through avenues such as study abroad programs, military service and missionary service. It has imbued Utah with a highly educated leadership pool ready to embrace the outside world.

“Many people in Utah have had an experience living abroad, so they’re not afraid to jump in and see what the world has to offer,” Miller said.

It also helps that the state offers many programs through the Governor’s Office of Economic Development (GOED) and WTC Utah that open doors to international markets.

“Utahns gravitate toward international business,” said Val Hale, executive director of GOED. “We speak more than 120 languages in daily business, we’re entrepreneurs and we’re innovators. It’s the state’s job to step in and help harness that and provide programs that help businesses grow beyond our borders.”

Tools ranging from trade missions to export acceleration grants help Utah businesses make valuable connections with trading partners in other countries. These programs help lay the legal and financial groundwork to export and make it simpler to implement effective strategies for entering new markets.

WTC Utah and GOED’s International Trade and Diplomacy Office have partnered to organize several trade missions each year. These missions bring groups of Utah business leaders to the target country, where they receive market briefings from industry experts, attend networking events, and participate in site visits or one-on-one meet-ups. WTC Utah’s Export Acceleration Grant and GOED’s State Trade Expansion Program grant can help defray the cost of those trips for Utah businesses.

Going on a 2016 trade mission opened Betsy Mikesell’s eyes to effective methods her company, Beddy’s, could use to introduce products into overseas markets. The West Jordan company manufactures unique zipper bedding and quickly encountered high demand worldwide through social media channels.

“We had no idea where to start,” Mikesell said. “We would just ship directly to the customer, which is expensive. Having the opportunity with the World Trade Center has been good for introducing us to new ways and new connections for getting our product to these other countries.”

25 YEARS OF CUSTOM AUTOMATION

www.setpointusa.com

TAKING THE WORLD BY STORM

more than “ We120 speak languages in daily business, we’re entrepreneurs and we’re innovators. It’s the state’s job to step in and help harness that and provide programs that help businesses grow beyond our borders.

“

- Val Hale Executive Director, GOED

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attended a trade show in Germany and took steps to enter the German market. It hired a full-time partner and outfitted them with everything necessary to get operations running in that nation. But Marriott said Spectra Symbol had only a modest return compared to costs invested in getting off the ground globally.

So the company hit the reset button and took a new approach. Spectra Symbol worked with the U.S. Commercial Service and GOED to craft more effective strategies for entering new markets, Marriott said, and then identified value-added re-sellers able to help generate higher revenue at substantially lower costs.

Much better success resulted from this second foray into exporting. Sales in Europe boomed and opened the door for expansion into Asian markets. Growth in Asia occurred at a rate two times faster than in European markets.

Much of that success, Marriott said, came through applying a personal touch.

Spectra Symbol invested time in personal interviews with each re-seller. They journeyed to their home country, met face-to-face and trained each one until they gained a better understanding of the unique product they were selling.

“Training them became a very important element,” Marriott said. “Consistent trips to the field with them, going and visiting customers, making sure we had a presence there—even though we didn’t have a central office. We had to be that central office essentially. … Once we did that, the ball started rolling and they felt comfortable selling our product more effectively.”

Marriott said resources offered through GOED and WTC Utah made all the difference, pointing to the valuable introductions to the right partners he received from those organizations. Building key relationships makes it easier to establish a foothold in global markets.

“They really got to know us,” Marriott said. “They came out and got to know our product. They strategized with us.”

ESTABLISHING ROOTS Utah exporters who plant firm roots in their home soil before trying to seed international markets often find success at a much faster rate. Entering into the realm of exporting one step at a time paid off for FiberFix. Founded in 2012, the American Fork company’s signature product is a wateractivated repair wrap that hardens like steel. FiberFix first started selling locally through Ace Hardware stores, but soon expanded nationwide through Ace Hardware, The Home Depot and Lowe’s. After being featured on an episode of the ABC TV series Shark Tank, doors opened for FiberFix to expand into international markets.

CEO Eric Child said FiberFix received numerous requests from international distributors for its product after appearing on Shark Tank. Initially, they opted to sell the product to local distributors and let them handle everything else. That didn’t work as well as they hoped. FiberFix had yielded control over the distribution process and was unable to advise end-retailers on how to market and distribute its products, leading to less success for local distributors.

Fiber Fix regrouped to try a different approach. It tested out a hybrid model in Canada, Child said, where local distributors handled smaller retailer accounts, and it got directly involved in training and advising with larger accounts. This approach yielded higher sales, and FiberFix rolled this new philosophy out to larger markets.

“It gives us a lot more direct access to the customers that really matter for us and allows us to still have a strategy of distributing product to smaller retailers that we don’t have the bandwidth to go and service,” Child said.

Getting everything up to speed in various international markets isn’t always a simple process. Child said even something as simple as packaging can become a complicated situation. Many markets require words on packaging to be in multiple languages. Sometimes, slogans and taglines that work well in one language can be awkward and clumsy in another. Packaging often needs to be localized from market to market.

If a Utah business wants to jump into exporting, Child said it’s important to get their feet wet locally or domestically first.

“Make it work locally. Make it work domestically,” he said. “Make sure your business is sound and can handle the processes in this country first, because you’re only going to complicate things once you go international.”

REACHING OUT ONLINE Social media channels have also made it easier to cast a wide net over the globe and connect with potential customers. Well-designed websites and an active social media presence have helped put Utah exports in the spotlight and create demand in unexpected places.

Mikesell said demand from other countries drove Beddy’s to become an exporter. The company received emails daily from people all over the world who wanted to buy zipper bedding. Many discovered the product through YouTube, Instagram and Facebook and expressed willingness to pay any necessary shipping costs to get the product to their doorstep.

It’s the main reason why Beddy’s is experiencing healthy sales in nations such as Canada and Australia.

“Our product isn’t something that can be in the store and sit on the shelf,” Mikesell said. “Our product needs demonstration. Social media allows us to post videos of how it works. That’s why it sells through social media. It needs instructions. Every store can’t put up a video in front of our product to sell it. That’s why I think it works for us.”

Even having an accessible, professional website can make all the difference. Utah exporters can use it as an avenue to sell products, respond to customer questions and offer testimonials—a significant tool for building up a brand in foreign markets.

“Our website helps drive a lot of exposure to us,” Kaddas said. “It helps us build our credibility because, as a small organization, it would be difficult to build credibility in another country without having a strong internet presence. We don’t sell on the internet. We don’t have a shopping cart or anything. But we do have drawings. We have testimonials. We have product information on the website that helps build that confidence with another entity.”

NAVIGATING EXPORTS Exporting is the core element of what PMI Foods does. The Salt Lake City company has roots in many overseas markets. It has administrative offices in 17 different nations and sells food to China, Japan, Caribbean nations, the Middle East and in Africa.

Covering so much ground requires following an effective blueprint to successfully penetrate a market. PMI Foods works hard to have extensive in-country knowledge of each market. In China, for example, it employs 181 people in five offices—local residents who acutely understand what the local needs are for that area.

Steven Johnson, CFO for PMI Foods, said it’s easy to look at macro-economic trends to see which countries are markets filled with potential. But it’s the micro-scale issues in each country that present challenges. “You have to start small,” he said. “Do you partner with somebody? Do you build it yourself? A lot of it is just learning about what goes on in those countries and some of it is through trial and error.”

Trade regulations can serve as a key hurdle to entering international markets. These can take the form of value-added taxes, tariffs and duties to prevent product dumps in the market or an outright restriction on imports failing to meet specified criteria. Importing licenses can be another hurdle. It can take a few days to set up shop in some countries and several months in others.

A one-size-fits-all approach does not work with exporting, Johnson explained. “There are tremendous regulations that don’t always exist inside the U.S.,” Johnson said. “Every country is a different deal. Every country is a different situation.”

That’s why Miller of WTC Utah said Utah exporters should be informed about what is happening in the world. It will help them better identify the right markets and partners for their business, so they can minimize the risks associated with exporting goods to that part of the world.

And if a company is wondering how to get started, there are many resources through WTC Utah and GOED. Utah businesses have access to market research and analysis, partner referrals and advice for navigating the ever-changing waters of global trade and foreign policy.

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DIPLOMACY AND

INTERNATIONAL BUSINESS

BY SARA ADELMAN

Greeting a new acquaintance. Exchanging business cards. Sharing a meal and offering a memento. The details of everyday human interaction are simple—until you enter the world of international business and diplomacy.

International business relies on the relationships fostered through public diplomacy, a highly formalized interaction governed by specific expectations and protocol.

“Very few people understand diplomacy until it goes wrong,” said Franz Kolb, director of diplomacy and protocol for the Utah International Trade and Diplomacy Office (ITDO). “Diplomats interact formally with the heads of state. That’s where the relationship building begins. In Utah, our head of state is Gov. Gary Herbert.”

As a program of the Governor’s Office of Economic Development, ITDO serves as the official diplomatic arm of the state of Utah. Each year, ITDO hosts more than 60 diplomatic visits from as many as 30 countries.

ITDO partners with World Trade Center Utah to host training seminars and diplomatic luncheons that give local businesses community access to diplomats such as ambassadors, consuls general, consuls and trade commissioners “The key to success in international business is connectivity,” Kolb said. “Diplomats have networks, and their consulates have resources that can assist businesses in matters of trade.”

So how can a business leader navigate the complexities of diplomacy? Through their local consular corps.

Although ambassadors and other high-level diplomats typically work out of offices in Washington, D.C. and New York, Utah has a consular corps representing 25 countries. Utah’s consular corps members are typically honorary consuls—unpaid volunteers who are formally recognized by both the associated country and the U.S. Department of State.

“The responsibilities of an honorary consul are different from country to country, from one consul to another,” said the Honorable David Utrilla, honorary consul of Peru in Utah and CEO of U.S. Translation

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Company. “What I do is very unique for my country. I essentially function like a consul general.”

In addition to providing resources and support for Peruvian citizens in Utah, Utrilla’s ongoing responsibilities include three aspects of relationship building: trade promotion, educational exchanges and international partnerships.

“After Mexico, Peru has one of the largest immigrant populations in Utah, yet when I was appointed to be honorary consul, Utah and Peru had no formal relationships to speak of,” said Utrilla.

Utrilla immediately set to the task of making connections. In 2013, he worked with the Governor’s Office of Economic Development and World Trade Center Utah to organize a trade mission that brought 65 of Utah’s business, education and community leaders to Peru—the largest trade mission Peru had ever received. Today, Utah is Peru’s second-largest trade partner in the United States.

In addition to fostering trade relationships, diplomacy opens doors for companies seeking to attract and make new investments.

“Utah is rapidly developing a high-tech hub, much of it spawned by Utah’s research universities,” said the Honorable Frank Joklik, honorary consul of the United Kingdom. “Many of Utah’s tech companies are at the stage of investing in industry and research overseas. Great Britain is very interested in attracting that investment.”

Joklik hosts visits from the U.K. Trade and Investment group on a regular basis. During each visit, the delegation seeks specific Utah companies they wish to meet. “In the 22 years I’ve been doing this in Utah, all of our U.K. visitors are truly impressed with what they see here.”

Utrilla and Joklik agree international business relationships thrive on trust and mutual benefit.

“You can measure the success or failure of a series of negotiations by the level to which both parties are satisfied,” Joklik said. “Relationships create trust.

Once they have that trust, your business partnerships will be very durable.”

When you come to Utah, be sure to visit

TEMPLE SQUARE in the heart of Salt Lake City Tours available in more than 30 languages

•

Many venues to choose from, and all are free

Listen

© Busath.com

Your tour group can:

to the glorious music of the famed Mormon Tabernacle Choir rehearsing and performing in the Tabernacle on Temple Square.

The choir also performs in the 21,000-seat Conference Center. See templesquare.com for details.

Discover

Meander

through two upscale visitors’ centers and see the Christus statue

by Danish sculptor Thorvaldsen. Visit the interactive map of ancient Jerusalem (kids love it!) and much more.

Step into the past,

Mark Cannon, © 1989 IRI

your roots in the FamilySearch Center, where volunteers can help you find information about your family history from the world’s largest repository of genealogical records.

where the story

of family life of yesteryear will unfold room by room in the Beehive House, the seat of government in early Utah.

For information on these and many other fascinating venues on Temple Square, go to templesquare.com, or call 1-800-363-6027. facebook.com/templesquare © 2016 by Intellectual Reserve, Inc. All rights reserved. Printed in the USA. 11/16. PD50020206

BY SPENCER SUTHERLAND

IMPACTFUL

ENTREPRENEURSHIP UTAH CULTIVATES FOUNDERS WHO WANT TO MAKE A DIFFERENCE tah has long been a breeding ground for high-tech entrepreneurs. A burgeoning tech sector has created Silicon Slopes, and the rush for latest technologies carries over to other industries where Utah holds its own: medical devices, composites manufacturing and advanced agriculture, to name a few. Although these innovations are driving revenue and job creation, Utah entrepreneurs care about more than just money.

Local innovators are pushing ideas and products that are not only bringing dollars and jobs into the state, but driving social change as well. From alternative fuel sources to new types of protein, Utah entrepreneurs are using their talents to make a difference in the world.

U

PLASTIC WITH A PURPOSE Though Americans have gotten better at recycling, less than 10 percent of plastic is recycled, with most of what remains entering landfills—or worse, our oceans. So Priyanka Bakaya decided to do something about it. While a student at MIT, she founded PK Clean to transform plastic waste into usable fuel. In 2013, the company set up its first test facility in Salt Lake City.

Using its proprietary process, PK Clean can convert 20,000 pounds of non-recycled plastic into 60 barrels of oil per day—all with zero toxic emissions. Not only does this keep waste out of landfills, the reclaimed fuels can also be sold for a healthy profit.

“We’re focused on ending plastic waste forever,” Bakaya said. “Once plastic waste ends up in landfills, it sits there for thousands of years without decomposing. It’s a real pity because plastic has a high energy value.”

The company is also using its technology to fight marine waste, a growing threat to our planet. This year, PK Clean is teaming up with 58

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IMPACTFUL ENTREPRENEURSHIP

“

For me, entrepreneurship is about creating social change and using business as a way to make society a better place. As a society, we should always be innovating and thinking of new ways to improve our lives and improve the planet.

“

- Priyanka Bakaya PK Clean

Plastic Ocean Project for the first-ever plastic-to-fuel sea expedition.

The group will travel from North Carolina to Bermuda to collect plastic waste from the ocean and then turn it into fuel.

Back at home, PK Clean is focused on creating additional processing plants across the world, starting with a second test facility in Canada.

“Our mission as a company is to deploy our technology to as many locations as possible,” Bakaya said. “Plastic waste is an issue everywhere across the globe. There’s a huge value not only to clean up societies and oceans but also to create fuel and value out of the plastic waste that would otherwise be in a landfill.”

Bakaya’s drive to see her company expand and succeed is driven by a deeper purpose than corporate ambition. “For me, entrepreneurship is about creating social change and using business as a way to make society a better place,” she said. “As a society, we should always be innovating and thinking of new ways to improve our lives and improve the planet.”

She also encourages entrepreneurs to do more. “It’s important for entrepreneurs to really push themselves to not just think about incremental change but huge change,” Bakaya said. “Never make your dreams smaller than they need to be—make them big! You’ll always find the resources if you really stick to your goals. The worst thing that can happen is that you’ll fail, so it’s worth giving it a go.”

PACKING MORE PROTEIN PUNCH Pat Crowley is a perfect example of an entrepreneur with big dreams. Back in 2011, he was working as a whitewater rafting guide and hydrologist when he learned about a protein source he’d never considered before—insects. Not only does a serving of crickets contain more protein than the same amount of beef, chicken or eggs, it requires much less water to produce.

More than 70 percent of the world’s freshwater supply is used for agriculture. As that supply becomes scarcer, Crowley is looking for more efficient ways to use it. With 100 gallons of water, agriculturists can produce six grams of protein from a cow, 13 grams of protein from corn and 19 grams from a chicken. Crickets can produce an impressive 71 grams of protein from the same amount of water.

In 2012, Crowley launched Chapul energy bars, the first insectprotein product in the United States. The name, Chapul, is borrowed from the Aztecs, who made protein-rich flour out of crickets. Chapul Cricket Bars are fortified with cricket flour and come in flavors ranging from chocolate and peanut butter to Thai coconut and ginger.

Two years later, the uniqueness of the product and steady market growth landed Crowley a spot on the TV show Shark Tank. Crowley said Chapul represents “a growing food revolution intent on increasing the health of our food resources for our children and for the planet.”

Crowley left the show with a $50,000 investment from Mark Cuban and even firmer resolve. He said, “We look forward to continue pioneering a new food source and acting as a model for bringing about change through entrepreneurship.”

The cricket bars are now available at Harmon’s and other health food chains that can be found on the Chapul website.

IMPROVING IMMIGRATION At their core, entrepreneurs are problem solvers. When Sam Stoddard

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Sustainable Startups

and social “ Innovation impact start with the entrepreneurial mindset.

- Robert Bell Sustainable Startups

A HELPING HAND FROM THE STATE An emphasis on social change is not the only thing PK Clean, Chapul and Simple Citizen have in common. Each of these startups also received funding from the state’s Technology Commercialization and Innovation Program (TCIP).

Administered by the Governor’s Office of Economic Development (GOED), TCIP provides grants to small businesses and university teams to accelerate the commercialization of their innovative technologies. Though the total amount fluctuates, GOED disperses around $1.4 million to Utah entrepreneurs each year. More than 60 Utah companies have received funding from the program over the past three years.

The reason for the state’s support of entrepreneurs is simple. “This is an economic development tool,” said Clark Cahoon, fund manager of the TCIP. “We want to support technology that is innovative and can create jobs.”

The goal of the grant money, which ranges from $50,000 to $100,000, is to give entrepreneurs the last bit of assistance to get their product or service into the market. “After all of the work of developing prototypes and making plans, BUSINESS.UTAH.GOV

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learned that completing his wife’s immigration documentation would cost $2,500 in legal fees, he attempted to fill out the paperwork himself. When he discovered the complexity of the process—and the lack of online resources to help—he knew there was a problem. He co-founded SimpleCitizen to solve it.

SimpleCitizen aims to be the TurboTax of immigration. The company helps people navigate the complex process of applying for green cards, green card renewals and citizenship. For $249, customers get access to online software that includes tutorials on everything from where to find necessary application documents to how to schedule an interview at the nearest U.S. Citizenship and Immigration Services office. Once customers complete their application, it can be uploaded through the company’s software and sent directly to a SimpleCitizen-approved immigration lawyer for review.

Stoddard said his company wants be the online, go-to source for all things immigration. He told Utah Business magazine, “When I look at SimpleCitizen and I look at our journey over the next year, two years, five years or even 10 years, I see us being able to affect change in the immigration process—meaningful change.”

Stoddard is not the only one who sees a bright future for SimpleCitizen. The group was selected for the Y Combinator entrepreneur program, where they received three months of training in San Francisco from the same organization that helped refine Airbnb, Reditt and Dropbox.

“We believe there is a huge opportunity for software to help make it easier and more affordable for people to deal with immigration,” said Y Combinator partner Dalton Caldwell. “[SimpleCitizen] is a sound business with a good team working on an important problem.”

Y Combinator CMO Brady Stoddard added, “Companies who make a Y Combinator batch have a great track record of making an even bigger difference for their customers, and that’s what we’re all about. We want SimpleCitizen to become the household name when people attempt to navigate the immigration process.”

IMPACTFUL ENTREPRENEURSHIP

there are still hiring needs, marketing needs, etc.” Cahoon explained.

“TCIP comes in that critical stage in commercialization to provide the extra little bump to these companies so they can get the product to market and start making sales.”

TCIP funding is non-dilutive, and the state does not take an equity stake in any of the companies it assists. “The non-dilutive nature of the funding makes these startups even more attractive to investors,” Cahoon said.

The state also contributes more than money. To give startups the best chance at success, TCIP also contracts with a local accelerator to provide mentoring services and a training curriculum, ranging from how to pitch venture capitalists and angel investors to efficiently grow and scale an operation.

“It’s one thing to hand money to these companies, it’s another to be able to connect them to people who have gone through and solved problems in their same industry,” Cahoon said.

TCIP contributes to Utah’s entrepreneurial environment in multiple ways. Having state backing, Cahoon explained, can be the final push that keeps a company in Utah.

Cahoon pointed to a homegrown medical device company, Distal Access, as a good example. The company’s Resectr device—designed to improve procedures to benefit women’s health—was attracting attention from some of the nation’s top life science companies, including Boston Scientific. Having a contract with the state provided just enough leverage for the company to convince its Boston buyers to keep production in Utah. Distal Access ultimately signed a long-term contract with Utah-based Biomerics for manufacturing and still sealed the deal with Boston Scientific. TCIP not only helps game-changing companies succeed—it helps them succeed in Utah.

CREATING THE NEXT WAVE OF ENTREPRENEURS TCIP is just one player in Utah’s startup environment bent on social change. Sustainable Startups, a Salt Lake City-based nonprofit, provides coaching and resources to new entrepreneurs at the earliest stages of their journey—sometimes before they even have a business idea.

“The entrepreneurs we work with aren’t just motivated by money,” said Robert Bell, the nonprofit’s co-founder and president. “They’re looking to make a difference in their lives or the lives of others.”

Originally founded to help commercialize clean technology companies, Sustainable Startups now also focuses on helping women, youth and minority entrepreneurs launch businesses. The company uses a peer-driven incubator program, which Bell said creates a community of people who can grow together. “The diversity in that program is what creates the strength and power of the incubator itself.”

Over the past three years, Sustainable Startups has worked with more than 100 entrepreneurs. Those individuals have gone on to create businesses that fight pollution, tackle homelessness and send recycled orthotic medical devices to third-world countries.

“We provide coaching, and we teach people about failure and risk and accountability,” Bell said. “But whether or not they have a successful business isn’t so important to us, as long as they develop the entrepreneurial mindset. They get to carry [those skills] with them, whether it’s to another entrepreneurial venture or another company.

Innovation and social impact start with the entrepreneurial mindset.”

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BY HEATHER BEERS

HOW TO BUILD A

WINNING TEAM

THE IMPORTANCE OF STRONG, UNIFIED CULTURES IN CORPORATE SUCCESS t Nicholas and Company, when a supervisor notices an employee going above and beyond, she’ll pop by, hold an impromptu moment of recognition and present the extra-mile employee with a gift card.

At Traeger Grills, Monday morning means a companywide breakfast, followed by a weekly meeting where management shares recent wins, swaps shop talk and reinforces the company’s five core values (one of which is “Dun-dun-dunn”— more on that later). These are just some of the ways Utah companies are nurturing strong corporate cultures—something they all agree is integral for workforce retention, employee productivity and worker satisfaction. But how exactly does a company create a cohesive culture?

It all starts with understanding how valuable culture is to a company’s success. Cathy Donahoe, vice president of human resources at Domo, a provider of SaaS-based business analytics, gets it. “Corporate culture is really the reason employees want to come to work,” she said. “If you look at studies, they talk about the top three to five reasons people stay at their job. Money is never no. 1. It’s reasons like: ‘I feel like I’m part of a team; I feel like what I do is meaningful; I feel like my contribution is recognized.’”

A

VALUE-DRIVEN Donahoe said one of the primary steps in building a powerful culture is defining the company’s values. She said the goal is to identify core principles that are true “standard bearers,” that reflect the company’s competitive advantage—not just vague ideas like “integrity and honesty.”

Donahoe illustrated her point with an analogy. “Culture is like a salsa garden. The results in September are amazing, but you can’t say, ‘I want a salsa garden in September’ and throw just any seeds out there. Stuff may grow, but it may not be what you need to make successful salsa.” For Domo, this meant identifying its five top ideals: Work, Fight, Innovate, Create and Serve.

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“

We do look for expertise in the particular job, but beyond that, we really look for attitude: how positive is the person; does the person have a can-do attitude; is the person somebody who will work really well with other people, who will check their ego at the door?

“

- George Adondakis Nicholas and Company

When CEO Jeremy Andrus joined Traeger in 2014, he immediately noticed the company culture was struggling. “It had a rough culture. The values the prior owner had perhaps unintentionally created and the people he hired—the place was toxic. There was no information sharing; no one wanted to go above and beyond.

People wanted to show up, do their job and leave.”

Andrus spent the next 10 months defining the values that today define the rapidly growing purveyor of wood pellet grills. He said, “We started with 25 and culled them down to five—values that not only help people create something really great, but that help us filter for great people.”

Traeger values are nearly rallying cries, with inspirational phrases like Stand in the Fire (risk-taking and innovation) and No Reservations (going to any length for customers). And then of course there’s that Dun-dun-dunn, which Andrus explained encourages employees to make sure every touch-point for the consumer is “fantastic” and offers “an amazing experience.”

O.C. Tanner, a global recognition and engagement company, does double-duty when it comes to corporate culture. Not only is it focused on fostering its own positive internal culture among its locations in the United States, Canada, United Kingdom, Australia, India and Singapore, but it guides companies around the world in doing the same.

Established in 1927, its inclusive, philanthropic values began with Founder Obert C. Tanner. In recent years, the company has conducted an even deeper dive into its mission and core values. “We have clearly identified and understand our purpose, our soul, our DNA—it’s tied very closely to the human needs of finding meaning and connection,” said Gary Beckstrand, vice president of O.C. Tanner Institute. “Our business is focused on helping organizations value people and acknowledge the contributions they make.” Those core values play out in everything from internal recognition programs and bonuses to volunteerism.

GATHER THE BELIEVERS Once a company’s core values are defined, it’s important to attract employees who are aligned with those values. Beckstrand emphasized much of O.C. Tanner’s cultural success has come from hiring well.

“The organization has done a great job of hiring not only to competency, but to fit,” he said. “We work to attract people who have an appreciation for doing great work, valuing others and contributing to collaborative spirit.”

Nicholas and Company, a food service distributor throughout seven states in the Intermountain Region, is so committed to hiring people committed to its values that it’s a central part of the recruiting process. George Adondakis, branch president, said, “Our human resources department does a very good job of using behavioral-based questioning in interviews. We do look for expertise in the particular job, but beyond that, we really look for attitude: how positive is the person; does the person have a can-do attitude; is the person somebody who will work really well with other people, who will check their ego at the door?”

Adondakis said they’ve learned the hard way that both components are critical. “We have hired people in the past—and they’ve even ascended to positions of leadership—that have not been the right fit culturally for the organization, either because of ego, or they’re not collaborative. We tried

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In the Heber Valley, lunch breaks are epic.

Enjoy the perks of being part Utah’s fastest growing community where a work-life balance is not just an ideal—it is part of the benefit package. Located 45 minutes from Salt Lake City and just 30 minutes from Provo, the Heber Valley is the perfect place to do business, experience life, and create new adventures. Learn more about Utah’s Backyard Playground by visiting www.GoHeberValley.com

GoHeberValley.com

HOW TO BUILD A WINNING TEAM

to give the person the benefit of the doubt, but you can do some serious damage to your culture if you hang on too long,” he said.

Andrus experienced a similar strain on company culture when he first took over leadership at Traeger. He said he intended to keep its headquarters in the original Portland, Oregon, location. But as he worked to detox the acidic corporate climate, he said, “I realized that a CEO’s greatest role in an organization is to filter for cultural values before people get on the inside. That required us to close up shop in Oregon where we’d spent nearly 30 years, say good bye to 95 percent of our people, and rebuild the team here [in Utah]. I wanted to filter for people who already believed in our values.”

THE “BENNYS” Beyond strong values and a workforce that exemplifies the company’s ideals, benefits, recognition and events also unify the culture. Back when Obert Tanner was running things, he wanted all O.C. Tanner employees to feel valued on their birthdays, so he began a tradition where they would receive a $100 bill on their special day. That continues today, Beckstrand said. “You can imagine when you start that tradition with a company that has a few hundred employees to what that looks like today when you have 1,6000 employees worldwide.”

Other traditions are still in place as well, such as profit-sharing bonuses and other holiday gifts like cash bonuses and gift baskets for each employee at Thanksgiving.

The company also honors its staff on their employment anniversaries (at years one, three, five, seven, 10 and beyond). It’s not just a gift—there’s a full celebration 68

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Domo

Those behaviors we talk “ about need to be exhibited at all levels of the business. If your executive team is doing something different from your support team, that’s not a strong culture.

- Cathy Donahoe Domo

“

WALK THE TALK With a well-defined sense of what matters and people on board who all agree, it’s just as critical to ensure everyone actually lives the values. “Those behaviors we talk about need to be exhibited at all levels of the business,” Donahoe said. “If your executive team is doing something different from your support team, that’s not a strong culture. You’ve got to make sure those values are being lived and seen by all levels. At Domo, that is one of the things we do well.”

Nicholas and Company’s Co-CEOs, Peter and Nicole Mouskondis, are proactive about demonstrating the third-generation family company’s values. As the company continues to expand (recently adding a Reno distribution center to complement its Utah and Las Vegas locations), the husband and wife team often visit with employees at each facility. “They talk about how Peter’s grandfather founded the company and how we want to stay true to those original values,” Adondakis said.

At Traeger, Andrus finds joy in seeing employees incorporate the values. “What I’ve found the most satisfaction in from a cultural values perspective is watching people live those values and enforcing those values amongst their peers. That’s the ultimate culture—when people get others to really live those values.”

For O.C. Tanner, living the values isn’t just about maintaining a healthy internal culture, but also exemplifying what that integrous behavior looks like to its clients worldwide. Beckstrand helps oversee the O.C. Tanner Institute, which develops industry leading research and insights. “We think a lot about these kinds of things— best practices, employee engagement—we make sure what we do is grounded in research to really make a difference. Our goal is to provide an engaging workplace where employees feel appreciated and do great work.”

Traeger Grills

THE RESULTS Developing a strong, unified corporate culture is about much more than fun parties and generous benefits. In the end, it’s about creating the ideal conditions for corporate success.

Andrus’ experience at Traeger clearly illustrates the impact of a positive culture.

a lot about these “ We think kinds of things—best practices, employee engagement—we make sure what we do is grounded in research to really make a difference. Our goal is to provide an engaging workplace where employees feel appreciated and do great work.

“

where they’re recognized for their performance, their specific contributions and their personal attributes.

Making it easy for employees to give back is also important. Beckstrand explained that every O.C. Tanner employee can take one full day of paid time each year for volunteer work—whether that’s with Habitat for Humanity, United Way or whatever matters to the individual. Employees are also invited to donate to the United Way and the Utah Food Bank, and when they do the company matches $2 to every $1 employees give (with $1 going to the chosen charity and one going to Tanner Cares, an internal fund used to assist employees in need). And the company as a whole allocates 10 percent of its net profits to charitable donations, making it a premiere supporter of the communities in which it does business. From bonuses to community outreach to the opportunity to join other work groups on crossfunctional projects, Beckstrand said, “We create opportunities for employees to do meaningful work and make a difference.”

Company leaders said fun events are also a must—from skydiving with the execs at Traeger to bringing the family to Domo’s annual tailgate celebration (with carnival games, entertainment and raffle prizes), it all adds to a culture of inclusion.

And make no mistake—robust benefits are a critical part of the mix. “It’s about aligning benefits that fit with that idea of, ‘If you make the team here, we take care of our own,’” Donahoe said. Domo provides medical, dental, and vision insurance; 401(k) matching; fully paid life insurance; short-term and long-term disability; a wellness program; and a tablet.

“Acknowledging what’s important to the majority of our demographic, we have some very family-friendly benefits on top of that. We’ve branded it as ‘Family First,’ which is a very rich maternity/paternity leave, a $1,000 baby bonus, a $2,000 wardrobe bonus for female employees when they get pregnant and a rich fertility benefit,” she said.

- Gary Beckstrand O.C. Tanner

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HOW TO BUILD A WINNING TEAM

were a 30-year-old brand that “ Wewas clunking along, growing a

- Jeremy Andrus Traeger Grills

“The results of seeing Traeger from where the culture wasn’t working to where it’s working have been interesting,” Andrus said.

“We were a 30-year-old brand that was clunking along, growing a little bit but not remarkably. When we built a team based on values that are aspirational and that really aligned with our culture, suddenly this thing began to grow. At the end of this year, we will be nearly four times what we were when we bought the business three years ago—and it had 30 years of history.”

Part of that rapid growth is due to the retention of great people.

“People … will always stay in an environment that has great cultural values, especially millennials,” Andrus said. “They want to be a part of something that’s aspirational in nature. Culture is what drives them. A place that doesn’t have great culture ends up sifting through great people.”

Donahoe compares it to joining an elite athletic team. It’s hard to get on the team; only the very best make the cut. But when someone does land a spot on the team, they are taken care of with benefits that make their personal lives easier and a supportive culture that enables them to perform at their best.

What many companies find is Utah is already fertile ground for harvesting an abundant corporate culture. Beckstrand said it’s something he noticed within his first year in Utah. “There’s a tradition of goal-oriented work ethic… a strong foundation at a very human level of wanting to be part of something; a real entrepreneurial spirit in Utah.”

As companies leverage a sense of community—and expound on it by defining corporate values, living them, and adding on layers of recognition and benefits, Utah is an ideal place to develop strong corporate cultures that can multiply a company’s success.

O.C. Tanner

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little bit but not remarkably. When we built a team based on values that are aspirational and that really aligned with our culture, suddenly this thing began to grow.

M O RE

T HAN

A

BU SINESS

Larry and Gail Miller went into business 38 years

communities, we enrich our lives and the lives of

ago believing that business had a higher purpose

others, and we become the very places where people

beyond the bottom line. Through their examples of

want to work and where the community chooses

service and generosity, the company continues to

to do business. And while it may not show up on

“Go about doing good until there’s too much good

a balance sheet, it is how we measure our success.

in the world.” By giving, working and serving in our

Follow our story at lhm.com.

LHM.COM

BY RACHEL MADISON

STEPPING INTO RURAL UTAH USES FILM, TOURISM INITIATIVES TO INCREASE LOCAL ECONOMIC IMPACT tah has no shortage of wide open spaces, breathtaking scenes and quaint towns. More and more of those quaint towns are taking full advantage of the nearby natural wonders to boost their economies. When you visit rural Utah communities, you’ll not only witness the beauty Utah’s become famous for—you’ll witness unique business models and impressive marketing savvy.

Two state initiatives, Film Ready Utah and “Rourism,” assist rural communities in better harnessing their assets. Both programs are taking hold in various corners of the Beehive State and are already beginning to make a difference in how locals and visitors experience rural Utah.

U

FILM READY UTAH Launched last year by the Utah Film Commission, Film Ready Utah is designed to promote and facilitate film production in rural parts of the state.

According to Virginia Pearce, director of the film commission, research shows that productions, which include movies, television series and commercials, have a significant economic impact in rural areas.

“We saw in 2016 that 35 percent of the estimated $51 million dollars of film production spending occurred in rural areas,” she explained. “And typically this type of spending has a greater financial benefit in these smaller communities because film companies will utilize nearby businesses and hire crew regionally.”

According to the Ricardo Flores, marketing and creative executive for the film commission, Film Ready Utah will continue to encourage rural economic activity by providing statewide support on how to promote, accommodate and prepare respective regions as a destination for film and media productions.

The program goals are meant to be multi-faceted. It will promote scenic rural Utah locations, provide the necessary tools in dealing with film productions and it will create better partnerships between the film commission and rural communities.

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STEPPING INTO THE SPOTLIGHT

“

We saw in 2016 that 35 percent of the estimated $51 million dollars of film production spending occurred in rural areas. And typically this type of spending has a greater financial benefit in these smaller communities because film companies will utilize nearby businesses and hire crew regionally.

“

- Virginia Pearce Director, Utah Film Commission

Westworld on location at Deadhorse Point State Park

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In order to be considered “film ready,” a Utah community must designate a film representative, submit photo coverage of potential filming locations, create a film resource directory of nearby crew and businesses, attend workshops hosted by the Utah Film Commission, and take a film liaison course from the Association of Film Commissioners International.

Emery and Davis Counties were the first to begin working with Film Ready Utah, serving as pilot spots for the program. “We are identifying representatives in these areas and training them on their next steps.” Flores said. “Fortunately we have two blue print rural areas, Kane County and Moab which have reoccurring film production that we can use as a guide to implement the program.”

Kane County, home of “Little Hollywood” in Kanab, is no stranger to film as an economic boon. Kane County Film Commissioner Kelly Stowell said his county has already employed several strategies suggested by the program.

“We have inventoried the Kanab area to develop a substantial location library showcasing it, and we’ve been working with local businesses and public land agencies to promote prequalified film locations,” he said. “That’s been a big part of it for us, because we’re fairly remote. People come here to film because we have iconic, diverse landscapes they can’t get closer to home.”

Stowell said it’s also important to make sure locals are being hired when film crews come into town. “We try to get as many local folks as we can on productions, and we try to have a trained workforce, whether it’s painters, electricians or production assistants. We try to foster a film-friendly culture in an effort to be more competitive. One way we’ve been able to identify talent is through the development of local programming. For example, every March we have the Little Hollywood Shootout, which is a quick turnaround film competition. Through the shootout, we not only create content but we have found folks who want to work on movies, and that’s been a valuable tool.”

It’s challenging for Kane County to compete in some industries because it is located so far from major highways and rail systems. But film and other media production can be a specialty of sorts. “We are in a great place for companies to create their advertising not only because of the locations and backdrops we provide but also due to our customer service and can-do attitude,” Stowell said. “We get a lot of repeat business because of that.”

And that business, in turn, boosts the local economy by translating into transient room tax, sales tax and job growth.

Bega Metzner, director of the Moab to Monument Valley Film Commission, said because her area is home to the longest-operating film commission in the world—it began in 1949 when the backdrop of Monument Valley was used for countless Western films—she can understand why other areas of Utah would want to capitalize on film.

From the recent HBO series Westworld to 1990s classics like Forrest Gump and Thelma & Louise, the Moab region has seen its fair share of major film productions, but Metzner said even the small projects make a big impact, especially in lessestablished rural regions.

“Moab already has a huge tourist base because of the national parks and recreation aspects, but other rural areas might not have that as a base,” she said.

“The commercial filming industry can make a huge impact in those areas. Even small projects that bring in five or 10 people can add to money being spent in restaurants, stores and hotels, and many projects make use of the local crews that are available.”

Because Moab is so established, many tourists who come to the area also take time to visit filming locations—such as the cliff in Dead Horse Point State Park made famous

by Thelma & Louise. In addition, film screenings and film festivals are often held in the area, and Metzner said many new hotels and other businesses open because of a need for more rooms and restaurants to accommodate successful film projects.

are in a great place for “ Wecompanies to create their advertising not only because of the locations and backdrops we provide but also due to our customer service and can-do attitude. We get a lot of repeat business because of that.

“

Another initiative the Utah Office of Tourism has introduced is across-the-board customer service training. “We want our tourists to have the very best hospitality, so we’re training our frontline people all over the state to have really good information about the best places to eat, where to experience culture and how to find off-thebeaten-path activities,” Varela said. “They will also learn to make sure customers feel really welcome here. That way we’re not just increasing tax revenues, but we’re also sending customers away really happy so they come back again and again.”

Joan Hammer, Box Elder County tourism director, said the Rourism program has allowed Box Elder County to tell its story. “We have a small budget here for tourism efforts, so we have to focus on what makes us special and marketable,” she said.

“The state brought in a consultant who helped us coordinate connections in our community and create a brand promise. We learned how to identify what makes us unique and what we can add to the inventory of all the great things to do in Utah.”

Through those efforts, Box Elder County has branded itself as the premier birding destination in the Western United States. Hammer said her office is asking area communities to jump in and help keep tourists in town because Box Elder County has always been a drive-through market. Rourism has given the county the opportunity to become a true destination. “We want tourists to come for birding and then stay here for other great activities our communities have to offer,” she said. “It’s been fun to see these communities step up and try to identify what is going to keep tourists here.”

Hammer added that Rourism has been beneficial particularly in her region because Box Elder County is on the opposite end of the state from the Mighty 5® national parks.

“To have the opportunity to feel like we’re a part of what the state is doing, and to give the Office of Tourism more to offer to our visitors has been great,” she said.

“The state helped us create a photo library and videos. Now that we know how we want to tell our story to the world, we’re in the process of launching everything online.”

Camille Johnson, executive director of the Kane County Office of Tourism, said her county has also been helped tremendously by the state’s Rourism program.

Land Rover’s international media launch for the fifth-generation Discovery, filmed in Kane County, UT. Photo courtesy of Land Rover.

- Kelly Stowell Kane County Film Commissioner

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Easy interstate highway access, rail service, and a regional airport set us apart. We have outstanding workforce and infrastructure. Plus, our Port 15 Utah industrial park has 500 acres with rail and utilities ready to go today.

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STEPPING INTO THE SPOTLIGHT

Tundra swans rest on the Bear River in Box Elder County

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

We want tourists to come for “ birding and then stay here for other great activities our communities have to offer. It’s been fun to see these communities step up and try to identify what is going to keep tourists here.

- Joan Hammer Box Elder County Tourism Director

“

“We’re still in the infancy stage of our project, but there’s definitely been a shift in our efforts,” she said. “In a small town, sometimes people get frustrated because there aren’t opportunities like there are in larger cities—like malls and multiple movie theaters—but we’ve had a strong push with social media to create excitement for what we do have, which is wide open spaces, two state parks, five national monuments and close proximity to three national parks.”

Other efforts include working with local businesses to be open later.

“Sometimes businesses roll up the sidewalks at 6 p.m., and that’s when most tourists are in town and back from their day trips,” Johnson said.

“We are also trying to find other things to focus on during the down time of the year, such as Duck Creek Village, where people can go snowshoeing and snowmobiling. And in the winter, you can still hike the Narrows in Zion National Park—you just have to rent a dry suit and layer up a bit. All of our marketing efforts are focusing on the off season, because there’s no reason Kanab can’t be a year-round destination.”

Because Best Friends Animal Sanctuary is also in Kane County, Johnson added, future marketing may also brand the area as the most pet-friendly in Utah.

Ultimately, Varela said people across the world are starting to understand Utah’s offerings, and the state is prepared to take advantage of that.

“Historically we did a lot of domestic advertising, but now we’re doing more and more international advertising,” she said. “Through our marketing efforts, development programs like Rourism and our customer service training, we’re looking to elevate Utah’s tourism economy throughout every part of the state.”

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BY HILLARY BOWLER

GOOD BUSINESS,

GREAT ART

HOW UTAH’S SPIRIT OF INNOVATION, COLLABORATION AND ENTREPRENEURSHIP SUPPORTS A THRIVING CREATIVE COMMUNITY.

rolific pop artist Andy Warhol once said “good business is the best art.”

“He was definitely a good business man,” said Derek Dyer, executive director of the Utah Arts Alliance. “I think a lot of people may have different opinions about how good his art was,” he added with a laugh. “But no one can deny that he made a lot of money and got a lot of notoriety and fame through the business of art.”

The business of art has more impact than one might guess. “Art is a huge part of any good, healthy economy,” Dyer said. He explained that the arts sector in the United States generates over $704 billion a year and contributes to approximately 4 percent of the country’s GDP, surpassing agriculture and mining.

According to a National Endowment for the Arts survey conducted between 2013 and 2015, Utah stands out in the nation’s art economy just as it does business.

The Beehive State ranks no. 1 per capita in the nation for attending live music, theater and dance and ranks no. 2 per capita in attending art exhibitions.

“Utahns are so supportive of the arts,” said Gay Cookson, director of the Utah Division of Arts and Museums. “People work in the arts, people participate in the arts and people believe in tax support for the arts. Utah is very unique in those three markers.”

Cookson pointed to a 2016 study from the Western States Arts Federation.

More than 72,000 people hold creative occupations in Utah, and those occupations are growing at a rate of 3.7 percent, compared to the state’s 2.9 percent average job growth.

Especially illustrative of the support for the arts in Utah, Cookson noted, was the fact that the Salt Lake County Zoo Arts & Parks tax passed with a 77 percent approval rating in 2015. Across the state, 36 municipalities have option taxes that

P

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GOOD BUSINESS, GREAT ART

more we (artists) “ Theall grow together, the

CREATIVE COLLABORATION Another unique ingredient to Utah’s success, Cookson said, is the very same thing that drives the state’s winning economy: collaboration. Cookson pointed to Salt Lake City’s Rose Wagner Theater as one example. The theater is home to six companies: three dance companies, two theater companies and one music group.

Rather than compete, the groups pool funding and resources to produce united marketing, fundraising and events.

Partnering with the community is of particular importance to the arts, especially in Utah’s smaller communities. Cookson noted how the Helper Arts Festival has helped revitalize the small town’s downtown or how Green River’s Epicenter combines cultural, housing and business resources to support growth across the board.

But equally important is collaboration among artists.

“Collaboration is probably the single most important part of our organization and our success,” Dyer said. The Utah Arts Alliance (UAA), formed in 2003, is a - Brittany Watson Jepsen Founder, The House that Lars Built non-profit organization dedicated to the success of Utah artists. The alliance encompasses four locations: the Salt Lake Arts Hub, which functions much like a business incubator; the Urban Arts Gallery, which exhibited more than 600 artists to 33,000 visitors last year alone; the Arts Factory, a creative industries incubator; and CounterPoint Studios, home of Midnight Record Productions.

The UAA hosts several events throughout the year, including the Urban Arts Festival, which last year drew 50,000 attendees. In addition to events, UAA’s preeminent service is its Shared Resources Program, which connects artists to subsidized studio space, event space, performance space, marketing resources, equipment and more.

“The idea is that together through the Utah Arts Alliance, the cultural community is stronger if we pool our resources,” Dyer said.

For some creatives, collaboration becomes the center of their business model. Brittany Watson Jepsen, founder of the lifestyle blog and brand The House That Lars Built, is a good example.

“Anytime you’re working on a project, it’s very doubtful that you are good at every single part of that project,” Jepsen said. “For me, it makes sense to have the best of the best for each piece of a project. So if you need someone to do great photos, you bring on a great photographer.”

Jepsen personally specializes in design (crafts, interiors and lifestyle), and she enjoys collaborating with several types of artists. Her blog started in 2008 as a graduate school Local artists attend an Urban Arts Alliance Connect event at the Urban Arts Gallery in Salt Lake City | Photo by Omar Villalba

more we can get good at what we do and grow our businesses independently.

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support the arts.

This support has dotted the Utah map with several cultural opportunities. The capital city alone boasts a symphony orchestra, an opera and a ballet. To the north, there’s the Utah Festival Opera and Musical Theatre. To the south, there’s Tuacahn and the world-renowned Utah Shakespeare Festival. Not to mention numerous theaters, museums and artistic organizations up and down the state.

a h om e

for

Arts & Culture since 18 99

Utah offers a creative lifestyle as diverse as its landscapes. Some of the nation’s finest professional performing and visual arts organizations call Utah home and more than eight million people visit Utah’s 250 museums annually. Whether you want classical music, gallery strolls, or modern dance, Utah can become your home for arts and culture.

#1 in the US for attendance at live music, theater, and dance performances

#2 in the US for attendance at art exhibitions

To learn more about how Utah values the arts, visit: arts.utah.gov/artandbusiness

They Dance, by Brian Kershisnik. 2014. State of Utah Fine Arts Collection

GOOD BUSINESS, GREAT ART

Urban Arts Festival | Photo by Farris Gerard

SUPPORTING CREATIVE ENTREPRENEURS So what does success look like?

The response is as varied among artists as it would be among any other group of entrepreneurs. In a sense, Dyer said, UAA functions as a creative industry incubator, much like a startup incubator.

“Every artist is an entrepreneur and every artist that wants to make a living 84

UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

is an entrepreneur “ Everyandartist every artist that wants to make a living has to go through all the same steps that any small business has to.

- Derek Dyer Executive Director, Utah Arts Alliance

“

portfolio project. While living in Denmark and unable to legally work full-time, Jepsen poured her efforts into building a creative DIY blog that contains posts about crafts, décor, parties and fashion, among other things. Now based in Provo, The House that Lars Built has been featured on the Today Show, in the New York Times and in Vogue U.K. “The more we (artists) all grow together, the more we can get good at what we do and grow our businesses independently,” Jepsen said.

In 2015, Jepsen hired Mary Nielson as business manager to help grow the blog into a brand. Nielson, who recently relocated from Boston to work with Jepsen, described an eagerness and hunger among Utah artists to collaborate. In addition to that, she said, there’s a distinctive willingness among Utah’s non-art businesses to incorporate creativity into their operations.

“Businesses here view art differently,” Nielson said. “That’s just as important to our ability to be successful here as the fact that there are so many artists. You have brands that recognize the value and merit in having resources that they can collaborate with.”

Collaboration—with communities, within artistic communities, and with the business community—provides a wealth of opportunities for creatives to succeed in Utah.

GOOD BUSINESS, GREAT ART

has to go through all the same steps that any small business has to,” he said. That includes taxes, accounting, insurance and business licenses. UAA and similar organizations statewide assist with those processes.

“We help them go from ‘I’m a really talented person with some great ideas’ to a point where they’re making a living out of it,” Dyer said. “For a lot of artists, paying their bills and getting their work out to the public is probably a good enough definition of success for them.”

Other creatives may think a little bigger toward large projects or collaboration at a national level. No matter where they set their sights though, Dyer said, there’s a common drive to make the world better with their work. But the bills are a close second, he added with a laugh.

“The resources are out there,” Nielson said of her experience growing The House That Lars Built. “It’s just harnessing them.”

Nielson has utilized networking and resources through the neighboring Brigham Young University and local Small Business Administration connections. While not every resource is geared toward art specifically, she noted that creative businesses are welcome and have a seat at the table.

INNOVATION AND IMPROVEMENT For Jepsen and her many creative contacts, it’s been important to adopt a “what more can we do?” attitude. Jepsen feels some improvement could come from promoting and expanding the resources available to hopeful artist-entrepreneurs.

Shawn Rossiter, executive director of Artists of Utah and editor of 15 Bytes Magazine, agrees. Rossiter founded 15 Bytes in 2001 as a non-profit organization. The online publication provides important insights and highlights of what Rossiter calls a vibrant art scene.

“My impression is artists do not get taught how to be business people in the art programs they go to,” he said. “That’s not the purpose of the university art program. But that’s one of the downfalls: artists come out with bad business models, so they don’t make it commercially in the long run.”

As such, an important solution is to educate artists through resources beyond their college education, Rossiter said. They need to be taught to sell wisely, demand payment for work and develop long-term strategy.

But also critical to artists’ success is increasing the market. In many ways, it’s already there.

“Utah has a disproportionately large amount of art for the size of population we have, not just specifically Salt Lake City,” he said.

“It’s true for the whole state.” Considering average incomes and lifestyle, Utahns are incredibly supportive of the arts. But visual arts, for example, have a generally smaller market here. Rossiter explained the irony of the fact that some Utah artists are extremely successful in Santa Fe or Los Angeles art galleries while remaining relatively unknown at home. A painter himself, Rossiter knows a thing or two about the gallery offerings in Utah and accepts that the demand is what it is. But it could change if we had more visitors.

“We certainly could be a destination for art,” he said.

The House that Lars Built, courtesy of Anna Killian BUSINESS.UTAH.GOV

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Lifelong participation in the “ arts, especially in the formative

“

years, helps create empathetic, well-rounded individuals who are problem-solvers and clear communicators. These are the creative individuals we need in our workforce to enhance Utah’s economic development. It’s the edge we have in Utah employees.

- Gay Cookson Director, Utah Division of Arts and Museums

Utah Arts Festival

Dyer agreed that cultural tourism is an important market in which Utah could expand. He believes arts and culture, in addition to widely known landscapes and natural wonders, should be one of the reasons people travel to Utah.

He cited a crowd-drawing Banksy piece in Park City as an example, noting that the value of the building on which the work appeared shot up about $200,000 automatically. “It’s a good example—maybe an extreme example—that art can bring value to business and community,” Dyer said.

And that’s the next step for Utah, Rossiter said. Rather than just supporting the arts through attendance, fundraising and grants, arts can bring increasing value to the Utah experience. “Instead of seeing the arts as a charity, we could harness the arts to be an economic power,” Rossiter said. “I think we have the potential for that.”

A FINAL NOTE: THE UTAH EDGE The bottom line: Utah is not New York, L.A., Santa Fe, Copenhagen or Rome—nor is it likely to ever be. But the state’s areas for growth make for plentiful opportunity.

“There’s such an eager quality to Utah,” Jepsen said. “If you go to places where they’re more established in the creative fields there’s more 86

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of an industry for the creatives. People have jobs. Here, we’re still trying to make our jobs happen. There’s still a little ‘wild, wild west’ quality to it.”

The eagerness, hunger and willingness to collaborate—not to mention a much more agreeable cost-of-living—all contribute to an environment creatives like Jepsen are choosing to lay roots in. Jepsen envisions Utah’s own “mecca of creatives.” The art economy is young, but definitely growing and adding substantially to Utah’s “life elevated.”

“One of the things Gov. Herbert likes to talk about is how the arts deepen the intangible qualities of life that strengthen our families and communities while providing meaning and entertainment,” Cookson said. “Arts and culture create unique identities for communities and help make them quality, livable places.”

In addition to quality of life, Cookson said, is quality of workforce.

“Lifelong participation in the arts, especially in the formative years, helps create empathetic, well-rounded individuals who are problemsolvers and clear communicators,” she said. “These are the creative individuals we need in our workforce to enhance Utah’s economic development. It’s the edge we have in Utah employees.”

Utah has mastered the art of business and, as a result, is also seeing big breaks in the business of art. It turns out creativity just might be the Utah edge.

SUNDANCE INSTITUTE:

THE UNEXPECTED INCUBATOR

BY MICHAEL O’MALLEY

A good business incubator connects entrepreneurs to resources, best practices, funding and more, as well as provides a community experience strong in mentorship and networking. Sundance Institute—best known for orchestrating the annual Sundance Film Festival—does just that with programs less well-known but equally impactful.

On a year-round basis, Sundance Institute serves as a dynamic incubator of film, theatre and music artists, supporting the creation of new work from inception to release. Its goal is to get the best independent artists’ projects made and seen, and to create opportunities for financial sustainability so they can continue telling their unique stories. Through their innovative Labs and other programs, the Institute provides startup-style peer mentorship, financial support, strategic guidance and partnerships with business and technology companies, including access to distribution.

“In addition to helping artists hone their creative visions through our Labs and providing a platform for their work at our Festival,” said Sundance Institute Executive Director Keri Putnam, “we connect independent storytellers and media makers with new technologies, platforms and resources to pave pathways for discovering, financing, marketing and distributing exciting work.”

Since its founding in 1981, more than 11,000 artists in film, theatre, episodic and other storytelling technologies such as virtual reality have been supported by Sundance programs, including and beyond the Festival.

The Labs program for artists, held throughout the year at the Sundance Mountain Resort near Provo, demonstrates the community aspect. “We pioneered a unique model based on peer-topeer mentorship and rigorous collaboration designed to challenge artists to take risks and learn from failure,” Putnam said. “Our residential Labs now offer creative and tactical support for new independent projects across all mediums in an intensive, retreat-like setting.”

Financing is another hurdle for entrepreneurs, and the institute has stepped up. “We were the first curatorial partner of the creative funding platform Kickstarter, and our partnership continues to provide strategic consultation and visibility for independent films,” Putnam said. “Since 2011, we have helped independent filmmakers raise more than $18 million on the platform for 350 independent films.”

A related program called Catalyst connects culturally engaged individual and small business investors to independent filmmakers. Catalyst has directly raised $13 million for 50 projects worldwide.

Once a project is funded and completed, how do you distribute it? The institute has collaborated with leading digital platforms including Amazon, iTunes, Vimeo and Netflix to support independent filmmakers who pursue entrepreneurial distribution of their work. The institute has facilitated the release of more than 200 films and documentaries to millions of viewers and created a self-serve platform to upload and distribute media content through a partnership with Premiere Digital.

Looking forward, Sundance Institute serves as a clearinghouse of new technologies, primarily through its New Frontier program, which celebrated its 11th anniversary this year. As an example, the Oculus VR headset made its debut at the festival in 2010 when it was still a prototype. Other collaborations in this space include an artist residency with Jaunt (VR), an artists-in-residency program at MIT Media Lab, and collaboration with leaders of Google Creative Labs.

The economic impact of the annual Sundance Film Festival is well known. Over the last five years, spending by the Festival and its attendees has generated a cumulative gross domestic product of nearly $400 million for Utah. This includes $35 million in state and local tax revenue and 7,000 jobs. But equally exciting is the long-term development of new talent, technologies and ways to get unique stories told around the globe … all happening here in Utah, thanks to Sundance Institute.

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BY MICHAEL O’MALLEY

A FIVE-SENSES TOUR OF

UTAH’S CAPITAL CITY SALT LAKE CITY IS NOT ONLY ONE OF THE HOTTEST JOB MARKETS IN THE COUNTRY, IT’S A HAVEN FOR FOODIES, MUSIC LOVERS, OUTDOOR ENTHUSIASTS AND MORE. IF YOU APPROACH THE CITY WITH ALL YOUR FIVE SENSES, YOU CAN COME AWAY WITH SOME MEMORABLE EXPERIENCES. SMELL More than 400 Yoshino cherry trees frame a circular walkway around the Utah State Capitol. They bloom in the spring and fill the air with delicate fragrance.

Inhale the rich smells emanating from Salt Lake Roasting Company, Millcreek, La Barba, Publik and other coffee roasting businesses that dot the

downtown area.

“Make it, bake it, grow it” is the motto of the Downtown Farmers Market and its sister Winter Market. Vendors represent more than 100 farms located within 250 miles of Salt Lake City. From baked goods to fresh vegetables, your nose will thank you for strolling around this Saturday event.

Red Butte Garden, located on 100 acres in the foothills on the eastern edge of the University of Utah, is an official arboretum of the state of Utah. It is the largest botanical garden in the Intermountain West, with more than 21 acres of developed gardens, five miles of hiking trails and 450,000 springtime blooming bulbs.

TASTE A visit to Salt Lake City is not complete without sampling the moles served by the world-famous Red Iguana Mexican restaurant on the west side of town.

Mole Negro, Amarillo and Poblano are some of the showstoppers. Get there early because there’s always a line out the door.

Learn to navigate Salt Lake City’s grid-based street address system by looking for 216 East 500 South. You’ll find yourself at Les Madelaines, a café offering an array of delicate pastries, cookies, croissants, macarons and the award-winning Kouing Aman, a rich buttery pastry from Brittany, France.

SEE Want to see the city in its entirety? Cut through the trendy Capitol Hill neighborhood to take an easy hike up the historic Ensign Peak. Or find a trailhead at Reb Butte to hike to what the locals have dubbed “The Living Room”— both hikes provide an excellent view of the valley below.

The view of the cityscape from the open-air garden on top of the Salt Lake City Public Library main branch in the heart of downtown is a 360-degree delight. The library’s stunning architecture earned it the national Library of the Year award in 2006.

Ponder how brief a time humans have been on the earth when you 88

UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

gaze on the Ceratopsids Wall in the Past Worlds Gallery of the Utah Natural History Museum. Triceratops and other massive skulls stare down on you.

HEAR Classically inclined? With seating for more than 2,700, Abravanel Hall offers a near-perfect acoustic experience for performances by the Utah Symphony under the direction of maestro Thierry Fischer.

Brahms, Beethoven, Gershwin and even “Distant Worlds: Music from Final Fantasy” will enhance your listening pleasure.

Want to a little more rock than Rachmaninoff? Salt Lake City has an edgy local music scene, anchored at venues such as the State Room, Complex and Depot. Check out Afro Omega, Candy’s River House, Handicapitalist and other bands.

And while it’s a feast for the eyes as well as the ears, the cosmic light shows at the Clark Planetarium features Led Zeppelin and (of course) Pink Floyd’s Dark Side of the Moon, all blasted out via 13,000 watts of digital surround sound.

For that natural ambiance, Tracy Aviary is America’s oldest and largest bird park. It holds 400 birds representing 135 species on 7.5 squawking, chirping and hooting acres.

TOUCH Unwind with a couples massage at the Grand Spa at the Grand America Hotel. Its 20,000-squarefoot facility features wet treatment rooms, facial rooms, eucalyptus steam rooms and numerous new salon stations. The hotel was inducted into the 2015 TripAdvisor Hall of Fame as a five-time winner of the Certificate of Excellence.

City Creek Center is an upscale fashion and dining destination, with more than 100 stores and restaurants for pedestrian-friendly, open-air shopping. On warm days, let the kids cool down in the artful and playful fountain. In the evenings, the fountain shows its Bellagio roots with musically choreographed shows that shoot water as high as 40 feet in the air.

Turn your face skyward and feel the snowflakes that comprise The Greatest Snow on Earth®. While the nearby mountains experience a long wintry season, Salt Lake City experiences about 35 days of snow a year.

The light, dry snow makes for tremendous powder skiing at the 10 resorts all within an hour’s drive of downtown. And you can turn your face to the sun, too … on 222 days a year!

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BY CHASE K. CHRISTIANSEN

FROM TOWN TO TRAIL

FIVE OUTDOOR RECREATION OPPORTUNITIES WITHIN 30 MINUTES OF SALT LAKE CITY Utah has an abundance of recreation opportunities that are close to home (no matter the location). The Salt Lake City area in particular boasts everything from parks and cycling infrastructure within the city to world-class fishing, climbing, biking, hiking and skiing—all within 30 minutes of town. We might not have the highest peaks in the west but we certainly have the most accessible. There are hundreds of trails and activities to choose from. For your quick reference we narrowed them down to five options. Consider it your starter kit.

1. BONNEVILLE

SHORELINE TRAIL. The Bonneville Shoreline Trail technically runs 100 miles from Logan in Cache County to the south end of Santaquin in Juab County. This premier stretch of single-track and connecting routes provides ample opportunity to trail-run, hike or ride a mountain bike the entire length of the Wasatch Front. Salt Lake City in particular has the option to setup basecamp at one of its many excellent hotels and ride 10 minutes from downtown onto the trail system. A bonus: much of it is dog-friendly. The City Creek Canyon connection provides stunning vistas of Capitol Hill and the Salt Lake valley. To get more information about the trail, visit www.bonnevilleshorelinetrail.org.

2. LIBERTY PARK. Situated 3.5 miles outside of the city center, Liberty Park is the go-to center for Sunday afternoon recreation. Complete with boats, a duck pond, a 1.4-mile long concrete loop, an aviary, pavilions, amusement park, basketball, bocce, horseshoes, playgrounds and a swimming pool, there’s something for everyone at Liberty Park. Local tip—bring a slackline along and meet outdoor enthusiasts who practice their balance among the many trees and grassy areas.

3. LITTLE COTTONWOOD CANYON. Simply put, if climbing or skiing are your favorite activities, Little Cottonwood Canyon is the place to be year round. More than 80 climbing routes are available for eager climbers. The granite walls and variety of technique are why this close-totown climbing is some of the most popular in the state. There is plenty to be said about the world-class skiing at Snowbird and Alta resorts, but we’ll save that for our friends at Ski Utah.

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The canyon’s paved road is regularly home to the Tour of Utah, a professional road cycling race held every year across Utah. It’s a long, brisk climb (avg. 9.3 percent grade over 8 miles) but the lightning-fast descent makes the climb worth it. Many dirt trails, such as Red Pine Lake, offer alpine views, long hikes, beautiful lakes and wildlife not often found in the lower Wasatch Front.

Hiking/mountain biking season is usually open from mid-April through October.

4. FARMINGTON BAY WATERFOWL MANAGEMENT AREA. Not normally considered by mainstream outdoor recreation enthusiasts, Farmington Bay offers an escape from the well-beaten paths. Birding and hunting are available in Farmington Bay and there is year-round access to some of the rarest birds in North America.

Bald Eagles winter in the Bay, and 56 other bird species are known to frequent the marshes year round.

The duck and pheasant hunts (check with Utah Department of Natural Resources on season dates) are very popular with local sportsmen. On opening day, the sound of shells unloading can be heard in many of the country areas along the northern Wasatch Front. In recent years, the Utah Department of Wildlife Resources has excellently supported pheasant hunting and the populations are starting to increase. This scenic, quiet area is a must to experience.

5. BIG COTTONWOOD CANYON. The biggest question with the largest of the canyons outside Salt Lake City is what can you not do? There are plenty of activities available to you. One item to remember is that dogs are not allowed in Big Cottonwood Canyon due to the Salt Lake Watershed area. This rule applies to all canyons in the Salt Lake area minus Millcreek Canyon. With that aside, the canyon is an amazing canyon to climb, fish, hike, bike, snowshoe, ski, picnic, camp or drive through.

At the top of the canyon, you’ll find Guardsman’s Pass, connecting the Salt Lake Valley to Park City. During the summer months, local mountain bikers hire shuttles to take them to the top for one trail— the Wasatch Crest trail. When shuttled to the top, bikers enjoy over 12 miles of stunning downhill single-track. While not overly technical, the trail provides variety for almost all levels of mountain bikers. Big Cottonwood Canyon is one of the most accessible and enjoyable canyons in the Intermountain West.

I N V E S T I N YO U R B U S I N E S S We work to k eep your commute shor t, provide a d v o c a c y t o f u n d y o u r c h i l d ’s e d u c a t i o n , m i n i m i z e the difficult regulation that affects your business, k eep our air clean and our medical costs low.

HELP KEEP UTAH THE BEST STATE FOR BUSINESS INVEST IN THE SALT LAKE CHAMBER FOR MORE INFORMATION 801-364-3631 | info@slchamber | slchamber.com

BY LISA CHRISTENSEN

WHILE HEADING TO …

ON-THE-WAY PLACES TO VISIT WHILE TRAVELLING TO STARRING ATTRACTIONS CORAL PINK SAND DUNES STATE PARK On your way to Grande Escalante National Monument, stop at Coral Pink Sand Dunes State Park. More than 3,700 acres of picturesque pink dunes—2,000 acres of which are open to OHVs— that have been around for more than 10,000 years grace this state park. It sees over 50,000 visitors annually and can offer a quieter getaway than some of the more welltraveled red rock attractions. The park is open during daylight hours seven days a week, 365 days a year, but the mildest temperatures and most cooperative weather is found in the spring, early summer and fall.

To get there: From Kanab, take U.S. 89 for 10 miles to Hancock Road Scenic Backway and follow the signs west into the park. Turn left at Yellowjacket Road. The park entrance will be five miles, on the left side of the road, which is paved all the way to the parking lot.

CRYSTAL HOT SPRINGS On your way to Bear Lake, take a few hours to soak in the relaxing waters of Crystal Hot Springs in Honeyville. Nestled in a valley historians believe was home to American Indians for thousands of years, the natural hot springs have drawn diverse groups since they began being harnessed for business in 1901, from Chinese railroad workers to WWII soldiers rehabilitating from their injuries. Ranging in temperature from 120° to 134° Fahrenheit, the springs contain the highest mineral content found in any hot spring in the world. Crystal Hot Springs also features cold-water springs, and between the two, guests can find three mineral hot tubs, a large soaker pool, two 365-foot hydro-tube water slides and an Olympic-size pool. Visitors looking for more than a quick dip may also camp in a tent or RV. To get there: On I-15, take exit 372 and travel east for one mile. Turn left onto UT-38/2600 West and drive for 1.8 miles. Crystal Hot Springs will be on your left.

VEYO PIES On your way to the famed golf courses of St. George, make a detour to the north for Veyo Pies. Nearly 30 years ago, the owners of Veyo Merc started baking pies to draw in more customers. It worked so well that when the mercantile closed in 2008, an employee, Devaney Lomenick, who had trained with the original pie-baker, Evalyn Yaw, opted to carry on the tradition. The result is a continuation of a legacy of baked goods that draws customers from miles away and makes visitors think twice about whether their grandmother makes the best pies.

To get there: Go to St. George, then take UT-18/Bluff Street for 16 miles.

Veyo Pies will be on the left.

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UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

COVE FORT On your way to the Utah Shakespeare Festival, pull off at Cove Fort for a glimpse into Utah’s frontier past. The only fort built by early pioneers that is still standing, Cove Fort was constructed in 1867 as an oasis of protection and refreshment to travelers. Its 4-foot-thick and 18.5-feettall walls are made of lava rock hauled from west of the property. Today, the fort has been restored and volunteers stand ready to give tours and information.

To get there: On I-15, take exit 132 onto I-70. Take exit 1 towards Cove Fort, and travel 1.1 miles. The fort will be on your left.

FULLBRIGHT STUDIOS On your way to Dinosaur National Monument, get out of the elements and see a new side of the area’s rugged beauty at Fullbright Studios in Vernal. Besides running the only gallery and shop specializing in photography taken at Dinosaur National Monument, photographer and owner Randy Fullbright also makes paper castings inspired by the area.

In addition to paper castings, the shop offers jewelry, sculptures and other artwork made by Fullbright and other regional and nationally recognized artists.

To get there: Fullbright Studios is located at 216 E. Main Street in Vernal.

SPIRAL JETTY On your way to the Golden Spike National Historic Site, make sure to visit the famed earthwork Spiral Jetty. Created by artist Robert Smithson in 1970, the Spiral Jetty winds off from the northeastern shore of the Great Salt Lake. Smithson used 6,000 tons of rock and earth to create the 1,500-foot-long spiral coil.

To get there: From the Golden Spike National Historic Site visitors center, drive 5.6 miles west on N Golden Spike Loop. At the fork, continue left, following the signs to Spiral Jetty. At the next fork, turn right and continue driving for about nine more miles until the road ends in a parking lot.

OLD WESTERN MOVIE SITES On your way to Zion National Park, head back to the Old West and visit some of the sites where blockbuster movies were—and still are—filmed. The greater Kanab area is still dotted with old movie sets—some in picturesque disrepair and some of them well maintained. A great place to start is Little Hollywood Land, where several old sets have been rebuilt and are open for visitors.

To get there: Little Hollywood Land is located at 297 W. Center Street in Kanab.

BEST STATES FOR BUSINESS & CAREERS

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#1 #1 #1 #3 #1 #1 #1

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FOR FOR FOR FOR FOR FOR FOR

BUSI N ESS BUSI N ESS BUSI N ESS BUSI N ESS BUSI N ESS BUSI N ESS BUSI N ESS

Contact

Theresa Foxley, President & CEO, tfoxley@edcutah.org Economic Development Corporation of Utah 1-800-574-UTAH(8824) edcutah.org Ben Hart, Deputy Director, benhart@utah.gov Governor’s Office of Economic Development 801-538-8770 business.utah.gov

BY JACOB ANDRA

FINTECH FINDS FERTILE GROUND IN THE BEEHIVE STATE It’s no secret that Utah’s economy is doing really well. Boasting 3.1 percent unemployment, a business-friendly government and low cost of living, the state has received glowing coverage in national magazines like Forbes and Fortune.

While the state’s burgeoning tech sector—particularly SaaS (software as a service) companies like Qualtrics, Domo, Instructure and Ancestry. com—receives much of the credit, a lesser-known cluster of SaaS companies have quietly grown along the Wasatch Mountains.

These firms fill an interesting niche: software specific to banking and other financial activities. Financial software technology, or “fintech” for short, is changing the global business landscape.

Finance is often associated with all things boring and traditional; most don’t associate it with the latest and greatest software trend. For this reason, perhaps, fintech is not nearly as glamorous as, say, the next Snapchat. However, the financial industry is ripe for an update, and that update will be provided by software companies who revolutionize the way financial services are managed, delivered and accessed.

dwarfs other “ Banking industries yet is significantly behind when it comes to innovation. The combination of size mixed with opportunities to innovate means the financial industry is about to go through some massive disruption.

“

- Ryayn Caldwell, MX

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“Banks are under pressure to innovate digitally and are ill-equipped to cope. They’ll need to turn to fintech software solutions,” said Ryan Caldwell, founder and CEO of MX, a Lehi-based fintech firm that, according to its website, “offers data-driven money management solutions that amplify user loyalty” to their financial institution customers.

Due to the sheer size and reach of the financial industry, fintech has the potential to have an enormous impact on tradition-bound companies and their clients.

“Banking dwarfs other industries yet is significantly behind when it comes to innovation,” Caldwell said. “The combination of size mixed with opportunities to innovate means the financial industry is about to go through some massive disruption.”

Caldwell pointed to the “staggering amounts of capital” managed by such organizations as Bank of America and J.P. Morgan Chase (the former does $150 billion in annual revenue and has $2.2 trillion under management; the latter: $115 billion/$2 trillion). “MX is doing business with companies that have a huge global presence,” he said. “That’s a lot of potential cashflow.”

While other tech companies have long drawn from all sorts of industrial pools, the vast ocean of the financial industry has remained virtually untapped. Now, MX joins several other Utah fintech firms including ZipBooks, Snap Finance and Entrata. These companies hope to grow Utah’s reputation for financial innovation and radically change finance as we know it.

Unsurprisingly, the fintech makeover started in Silicon Valley. Social Finance, Inc., or SoFi, started in 2011 as a “radical approach to lending, wealth management and insurance.” “In just five years,” said Senior Vice President of Operations Rob Meck, “we’ve grown our member base to more than 260,000 members in all 50 states, and we’ve lent more than $17 billion across our core lending products.” Based in San Francisco, SoFi opened a Utah office last November. “We’ve hired more than 235 people already and plan to have 400 there total,” Meck said.

SoFi, with its $4–5 billion valuation, is clearly the behemoth of the new fintech crop. But Utah firms aim to level up. MX has had an over 150 percent annual growth rate in the last five years, according MX CFO James Dotter. Zipbooks, Snap Finance and Entrata all show impressive gains as well.

If Caldwell and other fintech evangelists are right—and current trends certainly seem to validate them— intech is indeed the next big thing for Utah’s economy. The bottom line? It’s new, it’s needed and it’s tapping into something big.

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BY JACOB ANDRA

BROADBAND NETWORKS UNITE UTAH’S URBAN AND RURAL WORKFORCES

It’s an old dynamic: rural folk move to big cities for employment opportunity. Those who remain behind? Well, they miss out.

Unless your small town happens to host a mine, a mill or some other large industry, it may not have the opportunities you want.

Price, Utah, is such a town. In prior eras, extensive mining powered the region’s economy, but a recent decline has hurt the community’s economy. The town has struggled, but not for lack of talent and motivation.

“Rural communities like Price are struggling with lack of job opportunities,” said Dean Lundberg, president of Accelerant. “As a result, we are finding a great supply of highly qualified workforce talent for our clients at very competitive wage rates.” His company has the stated goal of “solving big-city talent shortages with small-town opportunities” by linking rural and urban centers.

The state’s Wasatch Front area comprises a near-80-mile stretch from Ogden at the north to Provo at the south end, with Utah’s capital Salt Lake City at its center. With a state unemployment rate of 3.1 percent, the highly-populated and urbanized Wasatch Front is facing an ever-tightening labor market and some workforce shortages. Accelerant helps urban companies solve their staffing problems by sourcing skilled, remote workers from more economically depressed areas.

Take for example HealthEquity. The Draper-based health savings company turned to Accelerant for staffing help, and Accelerant helped it set up a call center in Price. The center initially employed 28 Price residents—that number is now 60.

“People were holding back tears when they got a HealthEquity job offer because of what it will mean for their families and the community,” said Kelleigh Cole, director of the Utah Broadband Outreach Center, a program in the Governor’s Office of Economic Development.

For Cole and the outreach center, revitalizing rural communities depends upon having the right infrastructure, especially broadband internet connectivity. And revitalization extends beyond unique job 96

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opportunities from Wasatch Front-based companies. Connectivity also helps rural companies grow at home.

Cole explained that the center tracks broadband availability, identifying areas for improvement. As a result Utah always leads the nation in broadband availability and enjoys exceptional internet speeds and access even in rural areas. “It allows small-town businesses to compete on a global scale,” she said. “A company in rural Utah now has access to the same national and global markets that anyone else has.”

Cole cited Browning Arms Company as an example. Based in Morgan, Utah, a town of fewer than 4,000 people, the firearms manufacturer worked with a broadband provider to bring fiber cable to its facility. “Not only does broadband help them modernize their operation internally,” Cole said, “it also allows them to compete globally and have a more international presence.”

Broadband also helps attract out-of-state companies to Utah. The state is known for its educated and skilled workforce and businessfriendly environment. Now, with an interactive map found at locate. utah.gov, companies looking to locate to Utah can see exactly what bandwidths, utilities, amenities and real estate are available where.

“The idea of the map was to show companies all of the options available to them,” Cole said. “We want to be a one-stop shop for business leaders to make smart site selection and expansion decisions.”

But, Lundberg said, “broadband alone doesn’t close the economic gap.” It merely provides the infrastructure to do so. “The question is how to leverage the asset of broadband to create economic stimulus.”

Thus Accelerants’s goal of breaking down the walls of traditional workforce management, as it has done with the HealthEquity project in Price.

Growing companies along the Wasatch Front. Talented, yet underemployed, people in rural areas. It seems like a perfect pairing— and Utah’s robust broadband infrastructure offers a way to pull them together.

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BY LISA CHRISTENSEN

UTAH’S ULTRA-STRONG CARBON FIBER COMPOSITES INDUSTRY

From high-end bicycle wheels to high-flying airplanes and rockets, Utah’s carbon fiber industry is making its mark around the world.

The Beehive State is home to a growing number of thriving companies that manufacture or assemble products made from carbon fi ber composites—a super light, super strong and super versatile material.

“Think of composites as a very high-tech string and glue,” said Scott Nielson, vice president of research and development at Ogden-based ENVE Composites. “This makes the material extremely versatile, so it can be tailored for different uses in different industries.”

“There is an immense freedom in working with the material,” he said.

“One of the main benefi ts, of course, is the strength-to-weight advantage of carbon fi ber, but you can also tailor the properties of the material. This is done by orienting the different layers of carbon fi ber in the product to change the physical properties of the product. You can essentially change the way a product behaves by changing how the material is used in the manufacturing process.”

In ENVE’s case, that means being able to craft just the right wheels for mountain- and road-bike racers and enthusiasts. Their products, designed and crafted right under one roof, have been lauded by professionals around the world.

“We spend countless hours working to ensure that our customers feel an advantage when they use our products,” Nielson said. “We invest heavily in research and development, testing in wind tunnels to fi ne-tune the aerodynamics for road wheels and providing experimental product to our professional mountain bike teams. All of these efforts are geared toward creating the best product for our customers. Composite materials play a key role in helping us achieve this.”

Aerodynamics, weight, durability and performance are also priorities for carbon composites at Boeing, which tasks many of its workers in its Utah facilities with assembling carbon-fi ber parts for its 787 Dreamliner.

“Strength per pound, it’s the best you can get. It’s a very good material for us,” said Larry Coughlin, general manager of Boeing Salt Lake, noting the material doesn’t fatigue and doesn’t corrode. Boeing has been using carbon fi ber more and more in the production of its planes, he explained, and the newer aircrafts are more carbon composite than they are metal.

The shift is environmentally friendly, too. “Airplanes are all about weight.

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Everything is weight. If you can save a pound on an airplane, you can fl y farther on the same amount of fuel, or you can use less fuel to fl y the same distance.”

As the industry has grown, so, too, has the need for a workforce to keep up for the demand. In 2015, the Governor’s Offi ce of Economic Development, in conjunction with numerous industry partners, including Boeing, launched the Utah Aerospace Pathways Program.

The program sends high school students and adults through a year-long training program that combines classroom education with hands-on internships to produce graduates capable of hitting the ground running in the industry.

“The idea was to produce a pipeline of future talent for the composites industry, putting systems in place in tech centers around the valley and getting it into the schools so people can look at manufacturing as a career,” said Paul Fillmore, general manager of Albany Engineered Composites’ Salt Lake City facility.

Albany has had several interns from the program complete internships at the plant—and they’ve hired many of them as full-time employees.

Fillmore said the new recruits are competent and excited to build careers with the companies, and are better prepared for the craft than many other hires.

“As they complete the curriculum, we are hiring people, as is Boeing, and Orbital ATK,” Fillmore said. “When people have been through the training, they understand the process and materials involved in the manufacturing of composites structures. They make a better employee because they’re excited about it—they’ve chosen to go into composites.

It’s also easier to retain an employee if they’re interested.”

Having an educational pipeline means a greater talent pool from which to draw, Coughlin said, both for fresh grads and for those moving from one company to another. “You have a great ecosystem not from people moving around but shared knowledge and shared capabilities,” he said.

“Although we’re all competitors, we want to work together to ensure we all have enough talent for our businesses,” Fillmore said. “We all understand we’re going to need people. We all understand composites in the aircraft and structures industries are growing, so getting together as a team is a good idea. We’re seeing the benefi ts from it.”

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10 REASONS

TO BRING YOUR COMPANY TO UTAH UTAH CONSISTENTLY WINS “BEST STATE FOR BUSINESS” RANKINGS FROM FORBES, CNBC, 24/7 WALL STREET AND OTHER THOUGHT LEADERS, BUT WHAT IS BEHIND THOSE ACCOLADES? THE STORY OF UTAH’S BUSINESS ENVIRONMENT IS ONE OF PREDICTABILITY, CONSISTENCY AND LONG-TERM GROWTH. HERE ARE 10 FACTORS TO CONSIDER WHEN YOU ARE LOCATING OR EXPANDING A BUSINESS. • TAX CLIMATE — Utah is ranked no. 9 by the Tax Foundation for how well states structure their tax systems. The state’s corporate income tax rate of 5 percent ranks our state no. 8 nationally on that individual metric.

• HACHMAN INDEX – This index quantifies the economic diversity of a state. The closer to 100, the more diverse (and therefore more resilient) the state’s economy. Utah scores 97.9, or no. 1 in the nation, edging out Georgia and North Carolina.

• MEDIAN AGE – What about the workforce of the future? At 30.7 years, Utah’s median age makes us the youngest state in the country, and there are young future workers on the way!

• EDUCATED WORKFORCE – Utah ranks no. 14 in the nation for percentage of the population 25 years or older with a bachelor’s degree or higher. We’re no.

12 when it comes to high school diplomas or higher.

• LABOR COSTS – Labor costs are often the greatest expense to a business, and with Utah’s affordable, yet highly educated and talented labor, it is the perfect place to find quality workers at a reasonable price.

Utah ranks no. 19 in the nation for labor costs and no.

5 in our region.

• OPERATION COSTS – Utah has better than average operation costs, ranking no. 2 most competitive among the western states. This rank includes real estate costs,

electricity, natural gas and construction. For example, Utah ranks no. 13 in the country for both industrial construction dollars per square foot ($106.16/sf ) and commercial construction ($144.78/sf ).

• REASONABLE HEALTHCARE COSTS – Healthcare insurance is a significant and rising labor cost nationally. Utah is competitive. The state’s $4,555 average for single premium employer contribution is no. 22 in the country and the $11,712 for family premium employer contribution is no. 15. These rankings are apt to rise given Utah’s young and healthy workforce.

• WORKERS COMPENSATION – At no. 7, Utah’s average workers compensation premium ($1.31 per $100 of wages) is among the nation’s lowest.

• TRANSPORTATION INFRASTRUCTURE – The “Crossroads of the West” has considerable and convenient rail, highway and air infrastructure. In 2015, Salt Lake City International Airport (located a mere 10 minutes from downtown) finished fifth among mid-sized airports globally in on-time performance. When traveling on business, you spend less time in transit and on the tarmac, and more time on productive pursuits.

• BROADBAND INFRASTRUCTURE – Utah is wired!

The average connection speed (Mbps) statewide is 19.69, ranking us the fourth fastest in the country and no. 1 west of the Appalachians.

Are these the only factors? Clearly not. That’s why our partners at the Economic Development Corporation of Utah (www.edcutah.com) have developed the “50 x 50” analysis of 50 business and economic metrics across all 50 states. Visit their website and take a deep dive into regional and national factors, and contact them for your own copy of the 50 x 50 Research Brief.

On balance, Utah scores high in any objective, aggregated view of business friendliness, workforce quality, operational costs and more. If you’re looking to de-risk your business for the long haul, consider Utah as a stable and productive base.

100 UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

BUSINESS.UTAH.GOV

101

WHY UTAH

WHY I CAME TO UTAH KIMBERLEY A. JONES

MANAGING PARTNER, VÉRITÉ In 1993, Kimberley A. Jones took a look at the business landscape, moved on from her career in the video production sector, and founded her own tech-based company, Vérité. The company focused on CD authoring and was founded out of her home.

“I found the climate in Utah to be very pro-business, and I found the people to be great to work with,” she said of her decision to base her company in the Beehive State.

This decision carries a little more weight when one considers that Jones is a transplant from Silicon Valley. But 24 years and a lot of growth later, Jones, managing partner at Vérité, said she wouldn’t have had it any other way. The sector has experienced some ups and downs in the last quarter century, she said, but over the last several years, the tech growth has been explosive— and it’s sustainable.

With more Utah-grown companies planting roots in the state’s fertile soil alongside regional offices or transplanted headquarters of large corporations, the sector is flourishing. Jones has also helped as the founder of the Women Tech Council, and she served three years as chair of the board of the Utah Technology Council. The diversity brought by the burgeoning companies—and the locals who graduate and choose to build a career here instead of finding work elsewhere—has in turn created more and more opportunities for growth.

“I’d say the recent decade has definitely brought a lot of growth, and it’s nice to see more and more tech companies being headquartered here, which is also very, very good for the state,” she said. “I think you’re going to see much more growth accelerated over the next five to 10 years.”

ALEX ADEMA COO, DPS SKIS

Alex Adema grew up in Upstate New York and, in a family of avid skiers, had the opportunity to visit Utah’s ski resorts as a child. But he never envisioned living in the Beehive State, let alone working in the ski industry. “It was always a fantasy that I thought would never be fulfilled,” he said. “It certainly is a pretty fun thing to live where you used to vacation.”

Adema moved to Utah in 2015 when he was invited to join DPS Skis, a company that creates and manufactures cutting-edge carbon-fiber skis. Once in Utah, Adema was pleasantly surprised by the strength and diversity of Utah’s outdoor recreation industry, which he said encompasses the entire spectrum of outdoor sporting. “It’s a pretty business-friendly state, with a thriving outdoor recreation ecosystem and easy access to a variety of outdoor recreation activities,” he said. “It’s great to be surrounded by people who are like-minded and as passionate as you are about the sport and about outdoor recreation in general.”

The company has been working closely with local economic development agencies, as well as programs and organizations such as the State Trade Expansion Program and the Office of Outdoor Recreation (both in the Governor’s Office of Economic Development) and World Trade Center Utah to expand. Adema said he’s been impressed with the coordination between various state agencies and local businesses. “The economic development groups make a lot of effort to collaborate really well,” he said. “It’s helped DPS Skis leverage a variety of great resources within the region to expand globally and get more involved in the outdoor recreation community—they bring everybody together.”

102 UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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WHY UTAH

WHY I CAME TO UTAH ADAM SKLUTE

CEO & ARTISTIC DIRECTOR, BALLET WEST Before joining Ballet West as artistic director in 2007, Adam Sklute was with the Chicago-based Joffrey Ballet. “Having lived in two of the largest metro areas for a combination of 25 years, I was actually excited to move to a ‘slower-paced’ community,” he said. “In reality, I now live a more active, vibrant and much more fast-paced life than I ever did in New York or Chicago.”

Sklute has grown to love everything about Salt Lake City and the state of Utah. “I even appreciate the little quirks,” he laughed. “Also, from the moment we moved to Utah, my partner and I have been welcomed by this community. We can’t say that we felt the same embrace or support from other places we lived.”

In addition to that personal support, he said, “I have to applaud Utah for being so supportive of the arts. It is affirming to see the arts thriving, to see artists developing and see our economy reaping the benefits from that creativity.

“Also, I’ve enjoyed watching Salt Lake City develop and grow. Today’s Salt Lake is not the same place I arrived to 10 years ago. In a relatively short amount of time it has grown into a world-renowned metropolitan community—and I’m excited to see where we’ll be in another 10 years.”

HANKO KIESSNER

FOUNDER & CEO, PACKSIZE A native of Germany, Hanko Kiessner earned his master’s degree at the University of Utah, which is also where he met his wife. The couple moved back to Germany after completing their education, but several years later, Kiessner’s wife was ready to move back to the Beehive State.

Kiessner was willing to move, although he was concerned about disrupting his career and starting over. “Growing up in Germany in the ‘70s, the ‘80s, you grow up looking up to the United States as ‘the country of unlimited possibilities,’” Kiessner said. “That’s actually a term that’s used in Germany to describe the United States, at least in those years. “ So Kiessner decided to take a chance and start over in Utah by founding Packsize, an ondemand packaging company. “Five years into the development of our business, we actually won Entrepreneur of the Year for the Utah Region. That was a big deal. It never even occurred to me that entrepreneurs would be celebrated, would be valued,” said Kiessner. “The society here values them and lets them know that what they’re doing is exciting and creates jobs and all of that. I had never heard of that in Germany.”

In addition to Utah’s entrepreneurial culture, Kiessner loves the varied landscapes in Utah.

“The climate also has an impact. There’s just a different attitude, as if your brain chemistry is different when the sun is shining. Utah has a really nice climate, where you have distinct seasons; summer and winter are very different. I just find that to be really stimulating,” he said.

“You have more energy every day, you’re more excited, and that translates into better leadership and into better ideas for the business.”

104 UTAH GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

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ECONOMIC DEVELOPMENT CONTACTS

GOVERNOR’S OFFICE OF ECONOMIC DEVELOPMENT

60 E. South Temple Suite 300 Salt Lake City, UT 84111 801-538-8680; 801-538-8888 FAX business.utah.gov ECONOMIC DEVELOPMENT CORPORATION OF UTAH

201 S. Main Street #2150 Salt Lake City, UT 84111 (801) 328-8824 edcutah.org BEAVER Beaver County Economic Development 105 East Center Street P. O. Box 789 Beaver, UT 84713 435-438-6490 beaver.utah.gov BOX ELDER Box Elder County Economic Development 01 South Main Street Brigham City, UT 84302 435-734-3331 boxeldercounty.org CACHE Cache Chamber of Commerce 160 North Main Street, Suite 100 Logan, UT 84321 435-752-2161 cachechamber.com CARBON Carbon County Economic Development 751 E. 100 N. Price, UT 84501 435-636-3295 carbon.utah.gov DAGGETT Daggett County Economic Development 95 N. 100 W. Manila, UT 84046 435-784-3218 daggettcounty.org

DAVIS Davis County Economic Development 61 South Main Street Suite 304 Farmington, UT 84025 801-451-3278 daviscountyutah.gov/ economic-development DUCHESNE Duchesne County Economic Development 50 East 200 South Roosevelt, UT 84066 435-722-4598 uintabasin.org EMERY Emery County Economic Development 75 East Main Street #297 Castle Dale, UT 84513 435-381-5576 emerycounty.com GARFIELD Garfield County Economic Development 55 South Main Street Panguitch, UT 84759 435-676-1100 garfield.utah.gov GRAND City of Moab Economic Development 217 East Center Street Moab, UT 84532 435-259-5121 moabcity.org IRON Cedar City – Iron County Economic Development 10 North Main Street Cedar City, UT 84720 435-586-2770 cedarcity.org

MILLARD Millard County Economic Development Association 71 South 200 West Delta, UT 84624 435-864-1407 millardcounty-ecdev.com

SUMMIT Summit County Economic Development 60 North Main Coalville, UT 84017 435-336-3221 summitcounty.org

MORGAN Morgan County Economic Development (Better City) 1100 Country Hills Drive, Suite 100 Ogden, UT 84403 801-332-9006 bettercity.us

TOOELE Tooele County Economic Development 47 South Main Street Tooele, UT 84074 435-843-3150 co.tooele.ut.us

PIUTE Piute County Economic Development 550 North Main Street Junction, UT 84740 435-577-2949 piute.org RICH Rich County – Bear Lake Regional Commission 69 North Paradise Parkway, Building B Garden City, UT 84028 435-946-2198 bearlakeregionalcommission.org SALT LAKE Salt Lake County Economic Development 2001 South State Street, Suite S2-100 Salt Lake City, UT 84114 385-468-4887 slco.org/economic-development SAN JUAN San Juan County Economic Development 117 South Main Street Suite 104 Monticello, UT 84535 435-587-3235 utahscanyoncountry.com

JUAB Juab County Economic Development Agency 160 North Main Street Nephi, UT 84648 435-623-3415 juabcounty.com

SANPETE Sanpete County Economic Development Association 191 N. Main Street P.O. Box 148 Manti, UT 84642 435-835-4321 sanpete.com

KANE Kane County Office of Tourism 78 South 100 East Kanab, UT 84741 435-644-5033 kane.utah.gov

SEVIER Sevier County Economic Development 250 North Main Street, Suite 116 Richfield, UT 84701 435-893-0454 sevierutah.net

UINTAH Uintah County Economic Development 152 East 100 North Vernal, UT 84078 435-781-6767 vernalutah.org UTAH Utah County Economic Development 111 South University Ave. Provo, UT 84601 801-863-7546 utahvalleyinformation.com WASATCH Heber Valley Tourism and Economic Development 475 North Main Street Heber City, UT 84032 435-654-3666 gohebervalley.com WASHINGTON Washington County Economic Development 225 South 700 East St. George, UT 84770 435-652-7750 washco.utah.gov WAYNE Wayne County Economic Development P. O. Box 189 18 South Main Street Loa, UT 84747 435-836-1315 waynecountyutah.org WEBER Weber Economic Development Corp.

2380 Washington Blvd. Suite 250 Ogden, UT 84401 801-399-8586 weberedp.com

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