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MFGUTAH ISSUE 5 | YEAR IN REVIEW ISSUE | DEC 2021

2021: A YEAR IN REVIEW OFFICIAL PUBLICATION OF THE

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UTAH MANUFACTURERS ASSOCIATION 2021 BOARD OF DIRECTORS UMA CHAIRMAN

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Jim Divver

ZionsASSOCIATION Bank UTAH MANUFACTURERS Brent Reddekopp Powerblanket Alex Dobsky 2021 BOARD OF DIRECTORS

1ST VICE CHAIR UMA CHAIRMAN Clint Morris Lifetime Products Brent Reddekopp Powerblanket

2ND VICE CHAIR 1ST VICE CHAIR Natalie Kaddas Kaddas Enterprises Clint Morris Lifetime Products

SECRETARY/ 2ND VICE CHAIR TREASURER Natalie Kaddas Johnny Ferry Kaddas Enterprises Honeyville, Inc.

SECRETARY/PAST IMMEDIATE TREASURER CHAIR Johnny Ferry Doug Dahl Honeyville, The BoeingInc. Company

IMMEDIATE PAST UMA PRESIDENT CHAIR Todd R. Bingham

Utah Association DougManufacturers Dahl The Boeing Company

DIRECTORS: UMA Travis PRESIDENT Aardema

Swire Coca-Cola, Todd R. BinghamUSA Utah Manufacturers Association Steve Allred Liberty Safe

DIRECTORS:

Bryan Anderson Travis Aardema Rocky Mountain Power Swire Coca-Cola, USA Erin SteveBarry Allred Merit Medical Liberty Safe Brett BryanBarton Anderson Fresenius Medical Care Rocky Mountain Power Blair Blackwell Erin Barry Chevron Merit Medical Brett Burningham Barton Hydro Engineering Fresenius Medical Care Mark Coy Blair Blackwell Setpoint Chevron LLC Doug Dilley Brett Burningham Parker Hannifin Hydro Engineering Corporation Mark Coy Setpoint LLC Doug Dilley Parker Hannifin Corporation

Mity, Inc.

Michael Gleason Jim Divver Hexcel Zions Bank Karen Griffin Jas. Easton, Inc. AlexD. Dobsky Mity, Inc. Todd Groll Orbit Michael Gleason Hexcel Mike KarenHenry Griffin Northrop Grumman Jas. D. Easton, Inc. Kirk ToddHolden Groll Autoliv Orbit Bill Johnson Mike Henry Barnes Bullets Northrop Grumman Jace Johnson Kirk Holden Key Bank Autoliv Chris Locke Bill Johnson Nucor BarnesSteel Bullets Jeff JaceLowe Johnson Inovar Key Bank Shawn Newell Chris Locke Industrial Supply Nucor Steel Frank Peczuh Jr. Jeff Lowe Peczuh Inovar Printing Eric Pope Shawn Newell U.S. Synthetic Industrial Supply Brad FrankShafer Peczuh Jr. Marathon Petroleum Company Peczuh Printing Merrill Stoddard Eric Pope L3Harris Technologies U.S. Synthetic Richard Stonely Brad Shafer BD Medical Marathon Petroleum Company Mark MerrillWalker Stoddard EnergySolutions L3Harris Technologies Andrew Walls Richard Stonely Edwards Lifesciences BD Medical Matt Mark Wardle Walker JD Machine EnergySolutions Steve Young Andrew Walls Holland Hart Edwards&Lifesciences Matt Wardle JD Machine Steve Young Holland & Hart

16 20 Table16 of Contents 20 Table of Contents: 5

2021: Reflections

6 Table of Contents:

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10 8 9 12 10

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Todd Bingham, President, UMA

President’s Message — Reflect and Look Forward

A Snapshot February 2021 of the Advanced Manufacturing Labor Market in Utah

President’s Message —

Jenni Abbott, EdD Assistant VP Worforce & Economic Todd Bingham, UMA President/CEO Reflect and Look Forward Development, SLCC Appointed February 2021 to NAM Board

2021 Chairman the Board ToddUMA Bingham, UMAof President/CEO UMA Staff Brent Reddekopp, President of Powerblanket Appointed to NAM Board December 2021 SBA’s Paycheck Protection 2021 UMA Chairman of the Board Program CanPresident Help Preserve Brent Reddekopp, of Powerblanket Time to Look Back and Forward Manufacturing Payrolls Utah MEP By Cece Mitchell SBA’s Paycheck Protection Program Can Help Preserve Manufacturing Payrolls Fatalities on the Rise Non-COVID Workplace Winter Driving Safety-

15 Workers Compensation Fund 16 14

By Cece Mitchell

Using Market December 2021

Demand to Manage Production Non-COVIDLevels Workplace Fatalities on the Rise Dr. Tulinda Larsen

Reasons Why Small totoMid Sized Using Market Demand Manage 10 Ways to Make Continuous 16 6Businesses 17 Production Love LevelsUnishippers 20 Improvement STICK! Dr. Tulinda Larsen Unishippers Cedro Toro

10 Ways to Make Continuous 20 2021 Year in Review: Lots of Surprises Improvement STICK! 24 Service Directory 21 UMA Cedro Toro Larsen, Executive Director, UAMMI Dr. Tulinda

UMA Service Directory

2021: Reflection By Todd Bingham, President, Utah Manufacturer’s Association

There’s something about the end of the year that causes one to reflect. Perhaps it’s looking back. Evaluating what you’ve done, mistakes you’ve made, opportunities missed, goals achieved and milestones made. This year certainly is no different than previous years. We’ve been plagued with our share of challenges this year both is an industry and personally. It does cost one to think and ponder looking forward to the coming year. What will I improve upon, what resolution will I make and will I be able to stick to it? Certain things have been challenges for us during the Covid pandemic. Talent acquisition and talent retention certainly is one of those. The workforce scenario in Utah is in a tenuous position at best. With unemployment rates hovering around 2%, if you want to job you have a job. Recent reports in November 20 21 indicated there are 145,000 bacon jobs along the Wasatch front and only 45,000 individual seeking jobs. This will continue to be a major challenge for the foreseeable future. As this edition of the magazine is coming out Covid numbers are spiking with the new Oma Cron virus and this is putting even more pressure on the already fatigued workforce in various industries including manufacturing.

The good news is the manufacturing industry is in a very good position in terms of production and work. However, busy times are not without their challenges. It has been an increase in the number of accidents, incidents, and deaths in general industry and manufacturing as well. Caught in between‘s and falls are the highest number of incidents reported by OSHA in 2020. That number continues to climb into 2021. Some of this may be caused by the incredible turnover rates with employees and temporary employees in the industry. Companies are struggling to keep production lines full and therefore having ever changing and rolling over workforce which in many cases have never worked in production line facilities and have a limited experience. This puts pressure on manufacturing companies to attempt to train and educate these new employees more rapidly and in some cases train them and cross train them for various areas. This potentially increases their exposure and potential for accidents and incidents. All of this is creating a challenge for manufacturing companies to continue to develop culture within manufacturing companies. Culture is the core of who we are as a company. What we are about and what we focus on daily is the relationship between our team members and in

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many cases the engine that drives us. Developing that culture determines whether the engine hums along smoothly or whether it sputter’s and struggles to run properly. During the last couple of years, certainly companies and specifically management, have focused extensively on continuing to build this culture and develop it for a variety of reasons. One specifically is the constant effort of retention of employees. Building an environment where team members want to continue to work for your organization. Secondly, is the essential need to create an environment of belonging. To help our team members feel some semblance of normalcy, stability, and a level of comfort and what has otherwise been a fatigue ridden time. As we start the new year, a lot has changed and some things remain the same. I look forward to seeing company’s individually address their opportunities for the coming year. Collectively, as an industry, we sit in a very good position. There certainly are some struggles. However, the industry has always risen to the top and will continue to do so through their innovation, creativity, hard work, and determination. The Utah Manufacturers Association looks forward to being a cog in the engine that continues to assist these manufacturers in continually moving forward. What Utah makes, makes Utah.

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A Snapshot of the Advanced Manufacturing Labor Market in Utah Jenni Abbott, EdD Assistant Vice President, Workforce Training & Education Salt Lake Community College, Workforce & Economic Development A cross industries in the U.S., there are 74 unemployed workers for every 100 job openings. The current balance of supply and demand favors job seekers and current employees. This gap contributes to the number of job applicants who don’t show up for interviews and the number of employees who are resigning from current jobs (The Great Resignation, EMSI, 2021). Some employers report that workers are moving to different companies for 25 cents per hour in additional wages. Economic Modeling Specialists International (EMSI) collects and analyzes data from jobs posted across the internet. The following statistics are from job postings for manufacturing production occupations in Utah:

Data • • • • • •

More than 900 unique manufacturing jobs are posted each month in Utah. On average, there are 490 monthly hires statewide, leaving 46% of jobs unfilled. One in five employees in the manufacturing industry is over the age of 55. In the last six months, average advertised wages in the industry have increased from $23.57/hour to $28.98/hour (as of October 2021). 71% of manufacturing jobs posted in the last year required either a high school diploma or no educational requirement. Nearly half the postings (46%) did not require experience. The Gross Regional Product (GRP) of the Utah manufacturing industry rose from $15.3 billion in 2010 to $22.9 billion in 2020. The top skills in Utah manufacturing job postings over the last six months are shown below. (Fewer than half of job applicants listed these skills in submitted resumes):

Technical Skills 1. Good Manufacturing Practices 2. Auditing 3. Quality Control 4. Machinery 5. Corrective & preventive action (CAPA)

Common (Soft) Skills 1. Communications 2. Management 3. Operations 4. Troubleshooting 5. Detail Oriented

(EMSI Occupational Overview, Job Posting Data, Advanced Manufacturing, Utah, December 2021)

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Retention The current workforce environment has led to increased focus on employee retention. In a recent survey by Workstep.com, 83% of manufacturing employees reported working at a company for “shorter” or “much shorter” time periods than originally intended. With increased worker shortage there is also an increase of overworked employees and low morale in a “rotating door” effect (5 ways to improve retention in manufacturing, Workstep Blog). Every company has different needs and no single solution will work in this high turnover market. Soliciting employee feedback, check-ins on management processes, professional development for managers, and willingness to address identified needs can help. Four simple ways of addressing turnover are listed in the table below. Proactive efforts to recruit, train, and retain talent will continue to build on the advanced manufacturing growth in Utah. Maintain a Safe Work Environment • Automate safety procedures • Make it easy to report problems • Respond quickly

Build Peer-to-Peer Relationships • Create a culture of collaboration • Identify Mentors • Support off-the-clock team bonding

Practice Regular Recognition • Make employee recognition accessible to everyone • Use rewards for added impact • Pay attention to analytics

Support Career Growth • Encourage managers to check-in about long-term goals • Offer opportunities for professional development

(How to reduce turnover in your manufacturing workforce, FOND) (Six occupations are included in the analysis for this article. Though not comprehensive, these six represent a variety of production job titles in the Utah advanced manufacturing industry: Molders, shapers, & casters, except metal & plastic; Molding, coremaking, and casting machine setters, metal & plastic; Industrial engineering technologists and technicians; calibration technologists & technicians, except drafters; industrial machinery mechanics; industrial production managers).

UMAWEB.ORG

DECEMBER 2021

Todd Bingham

Lloyd Jensen

Megan Ware

President/CEO Cell: 801-891-6887 todd@umaweb.org

Director of Business Development

Director of Workforce Development Cell: 801-230-0655 megan@umaweb.org

Cell: 310-980-0030 lloyd@umaweb.org

Austin Emery

Justin Hawkes

Jenny Snow

Mikenley McQuiston

Business Development Cell: 385-216-4137 austin@umaweb.org

Manager of Business Development Cell: 385-831-4667 justin@umaweb.org

Executive Office Administrator

Marketing Manager Cell: 801-656-8208 mikenley@umaweb.org

Office: 801-363-3885 jenny@umaweb.org

Office Information Phone: 801-363-3885 www.umaweb.org 428 E. Winchester St. #210 Murray, UT 84107 9

Custom Fit - It’s for your company! The Custom Fit Program Provides: • Utah companies with flexible, customized training for their employees, tailored to meet specific employer needs. • Discounted training costs by 20-50%. • Training opportunities for large and small companies across all industries including, but not limited to, manufacturing, mining, construction, service, processing, technology and healthcare. • Support of economic and workforce development, and facilitates the retention and creation of new jobs in the state.

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Utah State University Eastern Moab Meghan McFall (435) 678-8102 meghan.mcfall@usu.edu

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Marie Bowcutt (435) 668-4358 mbowcutt@dixietech.edu

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Time To Look Back and Forward Utah-MEP.org | info@Utah-MEP.org | (801) 587-0713

As you wait for the calendar to turn to 2022, it is the perfect time to reflect on the past year and make plans. In 1995, Stephen Reed and Dave Sorenson worked with Mike Alder from the State to bring a new program to Utah called the Manufacturing Extension Partnership or MEP. It will be 27 years that the MEP has been in Utah, equipping small and medium-sized manufacturers with the resources needed to grow and thrive. The goal was then and is now to create a legacy for Utah manufactures. Here is a couple of positive trends that we are seeing • Over this past year, manufacturing has grown in Utah. This trend has been going on for years but has accelerated since the pandemic hit. It may be due to Utah’s business-friendly climate or having such creative people with time on their hands in quarantine. Whatever the cause, growing the manufacturing base is excellent for Utah! 11

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The individual companies impacted by the UtahMEP Alliance are at an all-time high, and we now touch twice the companies compared to 2016. These numbers represent companies where our industry experts work side-by-side with manufacturers to reduce costs, improve efficiencies, develop the next generation workforce, create new products, find new markets, and much more.

We at the Utah-MEP Alliance urge you to seize the opportunity to take stock of last year. Ponder on the highs and the lows, the hits, and the misses, the gains and the losses, the challenges and the opportunities, the experiences earned, the lessons learned, the mistakes made, the little joys shared, what worked for you and what didn’t. It’s a time to reminisce all these.

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Here are a few questions to help you wrap up the year: • Are you suffering from lower sales than expected? Do you want to increase your sales to maximize your manufacturing capacity? • Are you looking to Improve your operations Continuously? Do you wish you could fix that one thing? • Have you recently promoted employees to leadership positions? Do they need some training? • Looking for ways to expand your business but are limited because you lack the certifications to bid on those high-value opportunities? • Have a new product idea and are unsure how to bring it to market? Are you looking to implement new technologies such as automation and robot-

You can end on a happy note knowing these are all areas we can help with. Take this time to prepare yourself for the year ahead with renewed enthusiasm. Finally, reflect on the abundance in your life and the growth developed from challenges. Happy 2022… More information about Utah-MEP is available at Utah-MEP.org, 801-587-0713, or by email at info@Utah-MEP.org.

ics into your manufacturing processes?

UMAWEB.ORG

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FUNDS AWARDED

$1,740,331

Projected STUDENT ENROLLMENTS

662

Application submissions to date

1200+

Workforce programs • composites technology

• HVAC Energy Optimization

• injection molding Technology

• computer-aided design (cad)

7 INDUSTRY SECTORS SERVED 18-24 24%

energy

35-44

29%

healthcare

information technology

advanced manufacturing

technical training

transportation

PUBLIC SAFETY

SLCC.EDU/ALLIN

OV E R $ 8 5 M I L L I O N I N C A P I TA L RETURNED TO OUR CLIENTS H E L P I N G U TA H ’ S B E S T- I N - C L A S S M A N U FAC T U R E R S R E A L I Z E T H E I R F U L L VA L U E T H R O U G H TA X C R E D I T S T R AT E G I E S AND INCENTIVES Contact us for a complimentary analysis Ben Lonsdale blonsdale@tannerco.com 801.990.5957

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Winter Driving Safety Workers Compensation Fund Winter is upon us and driving safely in winter conditions can be a challenge for even the most experienced drivers. After months of pleasant road conditions, it’s easy to forget how much rain, snow, and ice can impact roads and our driving habits. Winter weather can change fast and unexpectedly. For the latest updates on road conditions, visit a commuter link website where you can find up-to-the-minute conditions to make decisions on the safest route. Use the tips below to make sure you stay safe on the roads this winter.

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THE BASICS • Get an earlier-than-usual start and plan for the trip to take longer than normal. • Clear snow off your vehicle. Snow left on the roof and hood can easily end up on the windshield or rear window, which can obstruct your view. • Clear ice off all windows and side mirrors. Clearing only a peephole will get you out of the driveway faster but will also obstruct your line of vision. • Remove snow from your shoes before you get in the car to avoid fogging up the windows and creating slippery gas and brake pedals. • Always wear a seatbelt and insist any passengers do too. • Tell someone your planned route and estimated arrival time.

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ON THE ROAD • Slow down. Posted speed limits are meant for ideal conditions; lower your speed during slick weather. This is true even for 4WD vehicles. • Don’t talk on your cell phone while driving. • Leave extra space between you and the vehicle in front of you in case of sudden stops, black ice, etc. If the vehicle behind is following too closely, change lanes or try slowing down so they will pass you. • Try not to make sudden stops or direction changes, such as going across three lanes of traffic to make that last-minute exit. • Keep your headlights on. • Pay attention to other drivers and anticipate what they may do. Watch for cars on side streets that are trying to pull into traffic. 15

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Slow down while approaching intersections. Keep clear of plows, big rigs, and other large vehicles that can suddenly blind you with snow spray. Never pass a plow on the right. Do not use cruise control in cold or wet weather. Tapping on your brakes to disengage can cause you to slip and slide. Be alert for ice, especially on bridges and in shaded areas. During especially hazardous and treacherous conditions, don’t try to drive out of the storm. Seek shelter until the worst passes. At the first sign of brake lights, start slowing down. Try to avoid slamming on the brakes. If you have anti-lock brakes, don’t pump them. Keep constant, firm pressure on the brake pedal until the vehicle comes to a complete stop. If you start to skid, take your foot off the pedal and steer in the direction you want to go. Don’t hit the brakes or accelerate.

WHAT TO DO IF STRANDED • If your vehicle breaks down, stalls, or you get stranded, don’t panic. • Turn on the emergency flashers or set up flares. • If you’re stuck, try straightening the wheels and accelerating slowly. Don’t let the tires spin endlessly; it only creates a mess (consult owner’s manual for the best way to get the vehicle unstuck). • Occasionally turn the car on to keep warm. • If it is snowing, check the tailpipe every so often to ensure it doesn’t get covered with snow. You may also want to crack a window to avoid potential carbon monoxide buildup. • Occasionally move around to keep your circulation up. • If it is snowing or raining, stay with your vehicle unless help is within 100 yards. For more information about winter driving and other safety topics, visit wcf.com. If you’re interested in getting a 5% discount on your workers’ compensation insurance as a member of the Utah Manufacturers Association, talk to your agent about the benefits of WCF Insurance.

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UMAWEB.ORG

6 REASONS WHY SMALL-TO MID-SIZED BUSINESSES LOVE UNISHIPPERS

#1. SAVE MONEY WITH COMPETITIVE SHIPPING RATES. You deserve affordable rates on your business shipping. But too often, the lowest rates are only available for the “big” shippers. Luckily, Unishippers can leverage the combined shipping volume of their customers to obtain competitive rates with national, regional and local carriers, passing along these discounted rates to SMB customers like you.

#2. SAVE TIME TO FOCUS ON OTHER ASPECTS OF YOUR BUSINESS.

Almost every SMB has to ship their products — and managing the shipping process can be very time-intensive. Dealing with a multitude of carrier options and services, complicated pricing programs and complex shipping systems can syphon valuable time and resources from your business. Unishippers offers a host of time-saving solutions, including multiple carrier and service options from one company, consolidated invoicing, an easy-to-use transportation management system (TMS) and consultation from experts in the shipping industry. #3. NAVIGATE THE CAPACITY CRUNCH WITH INCREASED NETWORK CAPACITY

Today’s freight industry is experiencing a capacity crunch and, SMB’s are seeing higher shipping costs and an increased risk of delayed shipments and missed pickups. In times of limited capacity, Unishippers can leverage their relationships with freight carriers to ensure their customers have the best chance of getting their freight picked up and delivered on time. These strong carrier relationships also provide discounts that fluctuate less during times of high demand. #4. INCREASE YOUR SHIPPING EFFICIENCY WITH HELPFUL ONLINE TOOLS

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If you are missing the proper shipping automation technology, it can lead to increased costs and inefficiencies for your business. Like most aspects of the supply chain, your business shipping requires customizable, high-tech solutions. Unishippers has their own proprietary TMS that helps you manage and automate your company’s transportation processes. A TMS gives you access to a vast network of carriers and the ability to instantly compare costs and delivery options, prepare documentation, create reports and much more. Best of all, this software is free when you partner with Unishippers.

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#5. CONSOLIDATE YOUR SHIPPING PROCESSES WITH ONE MAIN POINT-OF-CONTACT

By partnering with Unishippers, you get access to a vast network of carrier and service options — all from just one company. How much time does your company spend communicating with carriers, trying to find the best rates for your business shipping? Add multiple carrier invoices, different contacts at each company and numerous shipping systems, and you can spend a considerable amount of time trying to consolidate it all. Using Unishippers eliminates the need for time-consuming rate checking, giving you access to a portfolio of carefully vetted freight and small package carriers. #6. OPTIMIZE YOUR SHIPPING LOGISTICS WITH AN EXPERIENCED ACCOUNT TEAM

When you work with a Unishippers, you can rest easy knowing that your logistics needs are being handled by reliable, seasoned professionals. Unishippers has the expertise you need to manage a wide range of shipping processes. Unishippers offers a full range of services including UPS® express and ground, less-than-truckload, truckload, air freight, international freight and more. Plus, you’ll enjoy a dedicated account service team, easy-to-use shipping tools, and flexible invoicing and shipment insurance options. Each Unishippers location is independently owned and operated. Reach out to Rebecca Jensen, your Lehi-based Unishippers Account Executive, for a free consultation and evaluation of your shipping needs. Rebecca Jensen 385-331-7004 rebecca.jensen@unishippers.com

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We are aluminum Hydro is the world’s largest integrated aluminum company, and a major supplier of extruded aluminum for industries across the US and Canada. From customized extrusions to fully fabricated components, our experts help design, extrude and manufacture the parts that shape your world. At the heart of our business is a dedicated workforce doing essential work to keep our operations running smoothly even in these challenging times. We are proud to be a part of Utah manufacturing. Want to join our team? Learn more at jobs.hydro.com

2021 Year in Review: Lots of Surprises By Dr. Tulinda Larsen, Executive Director, UAMMI

Utah’s manufacturers rebounded in 2021 from the recession caused by COVID19 in 2020. In UAMMI’s first update to Using Market Demand to Manage Production Levels, which was released in November 2020, we were optimistic that Utah’s manufacturers were well to recover in 2021. In the beginning of 2020, there was great uncertainty as to how and when demand for the products made by Utah’s manufacturers would return. The future for 2021 was dependent on the successful roll out of the COVID19 vaccine program to control the pandemic. In retrospect, Utah’s manufacturers recovered beyond expectation. Although sales still were below 2019 levels, they came within two tenths of a percent of that threshold, at $55.8 billion. That resiliency sets the stage for Utah to be able to enter a true growth stage starting in 2022. UAMMI’s first two forecasts estimated Utah’s manufacturing industry sales would total $54.2 billion in 2020. The NIST data shows a result that is 2.9% higher than our estimation, at $55.8 billion. Although still below 2019 performance of $56.2 billion, the fact sales were higher than expected is largely due to the recession lasted less time than expected and thus entered the reset phase more quickly than anticipated. The fastest growing sectors of Utah manufacturing was aircraft engine and engine part manufacturing, followed by guided missile and space vehicle manufacturing, supporting programs at Hill Air Force Base. Among the factors leading to this better-than predicted outcome were the effects of federal economic stimulus in conjunction with 21

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the wide availability of effective vaccines and Utah’s combined public health and economic focus in responding to the crisis. Initiated by the Utah Leads Together effort and continued via Governor Spencer Cox’s One Utah Roadmap, Utah manufacturers were able to operate in a supportive, efficient, and safe environment. Utah’s strong fiscal position prior to the pandemic provided a strong basis from which to make this happen. The state retains may positive economic trends, most notably its exceptionally low unemployment rate, currently at just 2.2 percent.

A keen focus by Utah manufacturers in addressing their individual supply chain networks and inventory strategies will have the greatest effect on prospects for sales growth in 2025.

All sectors of Utah’s manufacturing industry have rebounded, although at varying degrees. Petroleum & coal products is recovering as travel demand returns to pre-pandemic levels. Medical equipment & pharmaceuticals have rebounded as elective surgery has returned with the increased demand related to treating COVID19.

Concerns about the nature of recurring waves of the COVID-19 virus, and mutations thereof, remain and contribute to certain pessimistic components of our forecast. Nevertheless, UAMMI finds that the nation now has a better understanding of which responses to outbreaks work and can take advantage of higher vaccination rates to manage responses that avoid significant lockdowns. We believe it is still too early --- primarily because of the supply chain and workforce issues – which industries have permanently changed because of the pandemic, but Utah industry appears to have adopted a nimble stance to be able to respond to such changes. Our continued periodic updates to Using Market Demand to Manage Production Levels will aim to provide updated guidance through the remainder of the recovery period.

Aerospace and defense have been led by the defense industry, but commercial aerospace demand remains weak. The automotive industry has been impacted by supply chain shortages, especially chips. Food products are recovering as schools reopen and the restaurant industry rebounds. Labor shortages and inflation are the biggest challenges.

Secondly, the severe labor shortage is disrupting production. Utah’s extremely low unemployment is functionally full employment, where every worker is working. In December 2021, there were almost 15,000 job openings in manufacturing, with the outlook for finding workers in the short term is grim.

The increase in the demand for commodities and construction is driving the increasing demand for Utah’s manufacturers producing metals. Recreation equipment demand soared during the lock downs at the height of the pandemic. Overall growth remains strong, though there have been shifts in the products demanded. For example, the new technology e-bikes are poised to lead the bike industry. While the news is better than expected, challenges remain that must be overcome to ensure Utah has a quick reset to a period of full economic growth. The most significant of these is the response to the supply chain disruptions. In UAMMI’s previous forecasts, we referred to these as temporary and somewhat isolated to specific industries. The nature of pandemic response and various corporate decisions made this a much larger problem than originally foreseen. Most experts agree that it will be at least twelve months before The Great Supply Chain Disruption is overcome. UMAWEB.ORG

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Lockton Companies grows Salt Lake City operation Offering deep risk management expertise to Utah manufacturers SINCE EXPANDING INTO UTAH IN OCTOBER OF 2019, LOCKTON, THE WORLDS LARGEST PRIVATELY HELD GLOBAL INSURANCE BROKER, HAS STEADILY GROWN ITS SALT LAKE CITY-BASED OPERATION. LOCKTON’S INCREASED PRESENCE IN THE AREA HELPS MANUFACTURING COMPANIES IN ALL SECTORS ADDRESS RISKS RELATED TO THEIR BUSINESS. FROM PROPERTY/CASUALTY TO EXECUTIVE- AND HUMAN-BASED CAPITAL RISKS, LOCKTON PROVIDES CLIENTS THE TOOLS AND RESOURCES NEEDED TO MAKE THE MOST INFORMED DECISIONS. Anthony Jensen, a 13-year insurance industry expert, leads the Salt Lake City office. Specializing in MFG, Jensen develops unique risk management strategies for all types of manufacturing clients, from food and beverage to aviation/aerospace to outdoor sports and recreation. Jeff Bryant joined the team in March of 2020. Bryant has more than 30 years of industry experience developing comprehensive risk management programs to protect his clients’ balance sheets. He specializes in real estate, manufacturing, tech, healthcare, education, and construction. “This team is proud to help our clients ensure risk resilience by understanding their business and industry issues.

We provide the tools and guidance our clients need to avoid disruption and capital losses,” says Jensen. “At Lockton, we work hard to become an extension of our clients’ risk management teams and protect their businesses and employees as if they were our own.” With Lockton, you get something you may not be used to with insurance — creative thinking and an unmatched commitment to client success. Lockton’s team brings global resources and capabilities to Utah’s strong manufacturing community. The best and brightest are drawn to Lockton because they want to make a difference. They’re voracious doers who know how to help clients respond quickly to changing markets and offer the deep industry expertise needed to navigate these complex times.

Lockton Salt Lake City 111 E. Sego Lily Dr Suite 190, Sandy, Utah 84070 anthony.jensen@lockton.com | 801.601.5366 jeff.bryant@lockton.com | 801.601.5447

MFGUTAH

Independence changes everything.

As the world’s leading independently held insurance broker, we answer to no one but our clients. Our private ownership ensures our people are empowered to focus on doing what’s right for clients. Lockton is ready to challenge whatever risks clients face — and unlock opportunities to help them move forward.

Healthy is on the horizon.

428 E. WINCHESTER, SUITE 135 MURRAY, UT 84107

PRSRT STD US POSTAGE PAID SALT LAKE CITY, UT PERMIT NO. 508

Intermountain Rigging and Heavyhaul

Contact IRH Today! 800-334-2409 irhusa.com