World City Guide

Business

Business Profile
Utah enjoys one of the fastest growing economies in America and the bulk of this growth is centred on the Salt Lake City metropolitan area. It is ranked among the top six states for attracting new businesses and jobs and has been cited by financial information publisher Dun & Bradstreet as having one of the best business climates in the country for running a small business. Much of this growth can be attributed to the workforce, which is highly educated, motivated and multilingual. Absenteeism is low and many companies that have relocated to the area have noted rises in productivity of up to 25-30%.

In the 1980s, two of Utah’s major employers, the defence and mining industries, went into decline. The state then focused on creating a more diversified economic structure, laying the groundwork for today’s booming business environment. Utah now has one of the most diversified state economies in the nation and among the western states it is out-ranked only by Colorado. The growth industries that emerged during the 1990s include biomedical, computer and software, manufacturing and tourism.

Job growth peaked in 1994, after reaching 6.2%. Although much more modest at present, Utah’s economy is still expected to outperform the national average. In 2000, employment in the Salt Lake City area was projected to increase by an amazing 28.5%. Much of the predicted growth will be in the service industries, which include transportation, communication and real estate. State public education, health care and business services are other growth industries. Technology is the main industry driving the city’s boom. Intel, the computer chip giant, recently built a major new research and development campus in the Salt Lake suburb of Riverton and it alone is expected to generate several thousand jobs over the next decade. Another major employer is Gateway, with a major computer manufacturing plant and customer service operation based in the city. Companies such as Iomega and Novell have made Salt Lake one of the top five centres of software production in the country. These and other high-tech companies have continued to thrive despite uncertain economic times, leading some pundits to wonder whether Salt Lake is the next Silicon Valley.

The city is also home to prestigious bioscience technology firms. Most of these were founded here in the Salt Lake Valley, rather than relocated. Two leaders in this field are Brigham Young University and the University of Utah, which created the digital hearing aid company, Sonic Innovations.

Investment in infrastructure, such as the rebuilding of the I-15 through the city, completed in time for the 2002 Olympic winter games, boosted employment in the construction industries. Tourism also increased as a result of the games, reversing the decline following the terrorist attacks of September 11, 2001.

The services industry is the largest sector, generating more than a quarter of all earnings, followed by government, manufacturing and retail trade. Computer and management services, telemarketing and engineering are the growth leaders in this sector. Wholesale trade is also strong, led by C.R. England, the nation’s largest refrigerated carrier, which is based here. Other major businesses include American Express and Discover Card, who both have processing centres in the area. Businesses are located all over the city, both Downtown and in the suburbs.

In September 2002, unemployment in the Salt Lake City-Ogden area, at 5.2%, was slightly lower than the national average of 5.4%. Wages are somewhat below the national average, which is partly due to a younger workforce and more part-time workers. About one third of the state’s population is under 18 years, forming a growing work force. Less than 5% of manufacturing workers belong to a labour union.

Business Etiquette
Informal business dress is the norm, although suits are customary for sales calls and when meeting business associates for the first time. Business cards are exchanged before or after a meeting. Working hours are generally Monday to Friday 0800-1700.

Visitors should be sensitive to the conservative climate precipitated by the Mormon faith. Drinking is tolerated but is a sure sign of an outsider. Smoking is frowned upon by almost everyone, due to the health-conscious environment. Family values are strong and, when entertaining clients, business lunches are preferred over business dinners, as after-work hours are considered family time. A business visitor who is invited to a client’s home should bring candy or flowers, rather than wine or liquor, as an appropriate gift, although these are not expected.