Utah Hospitality Industry Helps Average Utahn

SALT LAKE CITY — If you don’t think tourism is important in Utah, then think about this: tourists could be saving you hundreds of dollars a year.

Managing director of the Utah Office of Tourism Lee Von der Esch says tourism is a great boost to help Utah’s economy. “With a $7.2 billion industry, that translates to about an $800 savings per household taxes that Utahns don’t have to pay because of the spending in the state,” she said.

Utah’s international tourism isn’t recession proof, but it’s getting help from Delta Airlines from their flight from Paris to Salt Lake and a nonstop flight from Tokyo to Salt Lake coming this June.

Von der Esch says locally people are staying home, saving money and seeing what’s in their own backyard.

Good News for Local Economy

SALT LAKE CITY — A new study shows Utah may be poised to recover from the recession more quickly than most states. The reason, according to the conservative authors, is Utah’s business-friendly environment.

This is a conservative study with a lot of praise for Utah’s conservative Legislature and its policies, but the forecast is a pragmatic look at what businesses want and what Utah has.

Poised to attract more high-tech companies, more in research and medicine, in recreation, tourism and energy; Utah may have what it takes to climb out of the recession first.

“We do have a very attractive environment for business, and it’s been stable,” said Sen. Wayne Niederhauser, R-Sandy.

Niederhauser is one of the legislators cited in the study “Rich States, Poor States.” Written on behalf of the conservative American Legislative Exchange Council, or ALEC, it claims Utah is one of the states that has advantages over other states.

One of the advantages comes in the area of tax policy, specifically income tax reform. Utah also has less government regulation and involvement is a plus for businesses.

Gov. Jon Huntsman is also working to promote Utah as a future renewable energy hub. Together, it could add up to an even more prosperous future for Utah.

“There probably is not another state in America right now with better practices, in terms of attracting, building and promulgating renewable energy,” Huntsman said.

At the same time, Utah has a chance to lead the way in using prosperity to create a better life for people. It can do so in many ways. One example is in being smart about health care reform.

“We’re saying it’s great the state is embarking on health system reform. Let’s make sure that, at the end of the day, those reforms result in predictable costs for businesses and affordable costs for employees so they can succeed on the job,” said Judi Hilman, with the Utah Health Policy Project.

By comparison, states like California and New York have been raising taxes steadily. That has led to a very difficult downward spiral for those states.

Utah Housing Gets Help

With the constant barrage of negative news we hear. It is is nice to hear about someone doing something to help, instead of just pointing fingers or predicting gloom and doom. Take mintute to read this article form KSL.com and share your thoughts.

SALT LAKE CITY — The Utah Senate has approved a measure that would give Utahns financial help with the down payment when buying a brand new home.

Senate Bill 260, sponsored by Sen. Scott Jenkins, R-Plain City, would give people $6,000 for the down payment on a new home. The Standard Examiner reports the money would come from the $10 million Utah is set to receive for housing assistance from the federal stimulus package. The money would go to more than 1,600 buyers on a first-come, first-serve basis.

It’s an effort to help homebuyers and home builders by reducing the number of new homes sitting on the market since a housing boom declined about two years ago.

The grants would apply only to a 30-year, fixed-rate mortgage for people who make no more than $75,000 a year. It’s for first-time homebuyers and existing homeowners who qualify.

Realtors and economists say this program could really help the housing market. The University of Utah’s Bureau of Economic and Business Research told the Standard Examiner the program could create 8,000 jobs in Utah’s housing sector and add $27 million in income tax revenue for the state.

The bill now moves on to the House for consideration.

If and when the bill is passed, the grants would be administered through the nonprofit Utah Housing Corp. You can reach them at www.utahhousingcorp.org.

Future Job Growth in Utah

Here is some optimism in the local economic outlook.If you are aware of more please send us a link so we cna share it with other readers.

While some companies are struggling, others say they’ve diversified enough to see significant growth. But for people who are looking for jobs, is there any good news on the horizon?

The $787 billion stimulus is expected to bring construction jobs to Utah. While we wait for the money to get here, the construction and manufacturing industries have stalled in the state. Analysts say we’ve lost roughly 13,000 jobs in housing construction, and we could lose even more. So, how is it that a company related to the construction industry could be doing better than last year?

Professional Service Industries Vice President Chris Garris said, “We’ve been growing. If you look at all of our service lines, as you pile all of those together, we’re doing well as we’ve continued to diversify.”

Garris admits some of the company’s services are seeing a loss. For instance, their pre-construction services, like soil testing, are down. But their inspection services during construction are increasing. The company isn’t noticing this same kind of success outside of Utah.

“PSI in many other areas of the country, just like the other competitors, are experiencing the type of downturn in their individual markets,” he said.

People who help businesses move into Utah say interest in the state is just as high as ever.

Economic Development Corporation of Utah CEO Jeff Edwards said, “We’ve been very pleased to see that the level of inquiry in our office has been almost as high as it was last year. In fact, in some cases, it’s higher.”

Edwards says population growth and tax credits are attracting companies looking to expand.

“The kinds of companies that we’ve seen looking here are primarily and distribution type companies. Most of them are well established,” he explained.

Edwards says their company has helped bring in or retain 4,000 jobs in Utah since last July.

“That’s a real shock to most people. Most people think the economy has gone over the edge and that we should all go run and hide, and it is not happening that way. We’ve got growth happening here,” he said.

He does admit, though, there is definitely a downturn in jobs here, and a damaging lack of confidence in the economy. But he says Utah has an economy that’s much sounder than other states.

Coalition says quick economic turnaround is possible

How’s this for a bold and optimistic prediction: Utah’s struggling economy can be turned around by the end of this year. That message was delivered on Utah’s Capitol Hill this morning by a group of business leaders, local government, educational and non-profit leaders organized by the Salt Lake Chamber.

They have specific ideas on how to do that, and they have the qualifications to back those ideas up. Their backgrounds are in banking, construction, home building, transportation, and tourism. They have a lot of ideas on how to jump-start Utah’s economy.

Lane Beattie, president and CEO of the Salt Lake Chamber said, “As business leaders, we know that there are many things that are right in Utah.”

The group has formed the Utah Economy Can-Do Coalition. It believes that if the anticipated $1.4-billion in federal stimulus money, plus $1 billion in state funds is spent in the right areas, the economic turnaround will be quick.

“It’s all about receiving the fastest and highest return on our investment,” Beattie said.

David Golden, executive vice president of Wells Fargo Bank said, “The coalition recommends state investment in roads, state buildings and housing that will infuse billions of dollars into the state economy.”

That, in turn, could create an impressive number of jobs. “We estimate that approximately 60,000 jobs will be restored or created in the state economy,” Golden said.

Two weeks ago, members of this group met with the House speaker and Senate president, who asked for specifics. The lawmakers, not wanting to just spend haphazardly, sought guidance to get more “bang for the buck.”

Scott Beck, president of the Salt Lake Convention and Visitors Bureau, said, “We’ve been able to give those real specific answers as to the validity of the projects, the cuts, and the realities of where things are working and where things aren’t working.”

The “Can-Do” moniker for the group is optimistic in tone for sure, but members say sitting back and doing nothing is not an option.

Chris Redgrave, vice president and general manager of Bonneville Radio Group said, “So with the business community working with elected officials, Utah will be the first to emerge from this time of economic challenge.”

The coalition is also urging the state to create investments that can be multiplied by private and federal matching funds. The group says some fees and taxes may have to go up to produce more state income.

Gov. Huntsman Hoping for a Piece of Economic Stimulus Budget

(KSL News) Gov. Jon Huntsman is hoping to alleviate some of the state’s budget woes with a $14-billion wish list for Barack Obama’s $850-billion economic stimulus plan.

The state estimates 124,000 jobs could be created if the entire list is federally funded. $11.7 billion of the list is slated for roads, including I-15 reconstruction in Utah County, improvements on US Highway 6, and the Mountain View Corridor.

The rest of the stimulus money would go to transit, water and building projects.

Flying J Files for Chapter 11

From KSL.COM

Falling gas prices seem to come as good news to drivers, but they are the cause of hard times at Ogden-based Flying J.

The gasoline refining and distribution company filed for Chapter 11 bankruptcy protection; but at the same time, the company says it is not planning layoffs or closures right now.

Falling oil prices and a tight credit market both hit Flying J hard. Now, the company says it will reorganize while it recovers from significant, unavoidable debt.

Several months ago, the company bought a large amount of crude oil when prices were still at record levels, topping at least $140 a barrel. Today, oil is selling for a little over $40 a barrel. It’s been dropping for months. What the difference means for Flying J corporate is millions of dollars of debt. And, because credit is frozen, the company can’t get a loan to cover its short-term losses.

J. Phillip Adams, Flying J President and Chief Executive Officer, said: “Even though Flying J today is a successful and historically profitable company, it faced near-term liquidity pressure from an unprecedented combination of factors: the precipitous drop in the price of oil and the lack of available financing from our traditional sources due to disrupted credit markets. With this sudden and unanticipated inability to meet our liquidity needs, we regret that we had no other choice than a Chapter 11 filing to enable us to stabilize our financial base.”

Ironically, the same market forces are offering relief for consumers. Gas prices at the pump have dropped by half in two months. One driver we spoke with said, “It’s making a difference, definitely. It’s nice.”

Another driver said, “It’s far more affordable to get where I need to go. It’s great. I love it.”

While Flying J reorganizes, the company says it will continue operations as usual and none of its refineries or 250 Travel plazas will close. Adams said, “The good news is we have valuable assets, we do not expect layoffs will be necessary, and we are optimistic we will be able to generate substantial cash internally to allow us to meet our obligations going forward.”

What’s happening could be a bad sign for Utah’s overall economy, though. Financial analyst for Wells Fargo Kelly Matthews says the trend deserves close attention. “I’m worried that if this process goes further and continues, it will be reflected in adverse consequences in terms of our employment status and the strength of our companies.”

Flying J has 16,000 employees in the U.S. and Canada. It’s one of the largest private companies in the nation, with $16 billion in sales last year.