In the past 12 months, nine companies were heavily recruited to relocate to or expand in Utah as part of of the Economic Development Corporation of Utah's effort to concentrate on quality rather than quantity of jobs.
That message came Friday from Michael M. Lawson, EDCU president, during the organization's annual meeting and investor update in the Doubletree Hotel.Lawson said EDCU was instrumental in bringing the companies to Utah. "We have made a conscious effort to focus on creating higher-paying jobs rather than on the quantity of jobs in the last 36 months, said Lawson.
He said EDCU's focus is on small- to medium-size technically oriented companies, but the average salary must be higher to offset the smaller number of jobs.
Every community loses 5-7 percent of its jobs annually because of changes in business practices, keeping fewer people because of technological advances, competition and some businesses closing so economic development agencies, such as EDCU, must concentrate on overcoming the loss.
Citing figures from the University of Utah Institute of Business and Economic Research, Lawson said the nine companies EDCU helped recruit to Utah will have 1,121 employees who will earn $30.2 million annually. The indirect benefit will be 1,611 employees working in companies related to the new companies with $37.2 million in earnings.
Those companies will generate $7.9 million in taxes for state, county and local agencies, Lawson said.
In addition, the companies will spend $15.8 million for new equipment, construction of new buildings and moving expenses and pay $1.8 million in taxes.
Lawson said five unnamed companies for which EDCU played a pivotal role in recruiting to Utah will announce their intentions soon. The five companies will bring 980 jobs, will require 287,000 square feet of space and spend $9.3 million in capital investment.
During the meeting, the names of nine new members of the board of trustees were announced.
They are Karin Dane, Dominos Pizza; Ken Knight, Sinclair Oil Corp.; Jeff Larson, Johnson & Higgins; Jed Pitcher, Blue Cross Blue Shield; Ron Simmons, EDA Architects; Peggy Stock, Westminster College; Phil Thompson, Industrial Supply Co.; Lynn Wardley, Ward-ley Better Homes & Gardens; and David Winder, KPMG Peat Marwick.
EDCU is a private, nonprofit organization of private business and government entities serving as a catalyst for increased capital investment and quality job growth in Utah.