Either Side of the Mountain: Utah’s Two County “Tech-Highway”

By Cory Stahle, Regional Economist

A recently released report from real estate firm Cushman & Wakefield | Commerce, describes a record breaking construction trend occurring around the border of Salt Lake and Utah counties. In the past decade, the entirety of Salt Lake County and northern Utah County (900 plus square miles) have averaged less than one million square feet of new office construction annually. Over the past nine months this annual average has been dwarfed by a five square-mile area along I-15 between Draper and Lehi. With nearly two million square feet of new commercial construction projects underway, primarily in behalf of technology companies, the area is being coined by some as Utah’s “Tech-Highway.” A visual of the growth in construction is illustrated in the following image:

Image Property of: Cushman & Wakefield | Commerce

Construction is a driver and manifestation of the economic growth occurring in the Salt Lake City and Provo metropolitan areas. With a combined job growth rate of 4.2 percent from June 2014 to June 2015, Utah and Salt Lake counties are seeing significant increases in the number of jobs available. A significant portion of these job gains, in line with the Cushman report findings, are occurring in professional/technical service occupations and in construction. In comparing June 2015 to the previous year, nearly 14 percent of total job gains in Utah and Salt Lake counties were in professional/technical fields. Similarly, construction accounted for 10.8 percent of jobs in the two counties during the same period.

Juab County Economic Update

Economic conditions in the Mountainland Economic Service Area (Utah, Juab, Wasatch and Summit Counties) are positive with strong year-over job growth of 3.8 percent, or 8,717 new jobs from June 2013 to June 2014. In 2013, average payroll job growth in the region was a very rapid 5.2 percent above the average level of employment in 2012. There has been job increases in most major industry sectors with particular strength among construction, wholesale and retail trade, professional/technical services, food services and health care.

• In the year ending June 2014, Juab County had a total of 3,294 nonfarm payroll jobs, 14 fewer than in June 2013.
• Five industries lost 13 or more jobs, with the largest reductions, 86, in construction as a result of reduced commercial construction activity.
• Manufacturing added 107 new positions, growing by 16.4 percent. Retail trade came in with the second highest number of new positions with 18. Five other industry subdivisions added new employment totaling 31 jobs.
• In September 2014, the unemployment rate in Juab County was estimated to be 4.2 percent, down from 5.9 percent in September 2013. An estimated 183 workers were unemployed in September compared to 212 in September 2013.
• Average annual job growth in 2013 was 6.3 percent or 193 new jobs above 2012. The 2014 overall job outlook indicates that Juab County will likely see net job reductions averaging between 20 and 90 positions.

Utah, Summit, Wasatch and Juab Counties’ robust job growth and favorable labor market conditions are expected to persist through the end of 2014 and continue through 2015. By September of 2014, the unemployment rate in Mountainland declined to a very favorable rate of 3.4 percent. Based on the strength of employment growth in recent years, job opportunities and low unemployment will continue to characterize this area.

Wasatch County Economic Update

Economic conditions in the Mountainland Economic Service Area (Utah, Juab, Wasatch and Summit Counties) are positive with strong year-over job growth of 3.8 percent, or 8,717 new jobs from June 2013 to June 2014. In 2013, average payroll job growth in the region was a very rapid 5.2 percent above the average level of employment in 2012. There has been job increases in most major industry sectors with particular strength among construction, wholesale and retail trade, professional/technical services, food services and health care.

• Employment growth in Wasatch County from June 2013 to June 2014 continued at an energetic pace of 5 percent.
• The largest industry job increases occurred in construction with 104, up by 11.8 percent. Professional, scientific and technical services added 101 new jobs, most occurring in advertising, architecture, accounting and bookkeeping, and computer systems design services. Accommodations and food services employment increased by 71 jobs. Local government positions increased by 60 and manufacturing rounded out the top five industries with 44 new jobs.
• The Wasatch County jobless rate was estimated at 3.9 percent in September 2014, down from 5 percent a year earlier. An estimated 430 workers were unemployed in September compared to 875 twelve months ago.
• Wasatch County is expected to maintain a favorable labor market through the end of 2014 and into 2015, adding to employment by more than five percent each year.

Utah, Summit, Wasatch and Juab Counties’ robust job growth and favorable labor market conditions are expected to persist through the end of 2014 and continue through 2015. By September of 2014, the unemployment rate in Mountainland declined to a very favorable rate of 3.4 percent. Based on the strength of employment growth in recent years, job opportunities and low unemployment will continue to characterize this area.

Summit County Economic Update

Economic conditions in the Mountainland Economic Service Area (Utah, Juab, Wasatch and Summit Counties) are positive with strong year-over job growth of 3.8 percent, or 8,717 new jobs from June 2013 to June 2014. In 2013, average payroll job growth in the region was a very rapid 5.2 percent above the average level of employment in 2012. There has been job increases in most major industry sectors with particular strength among construction, wholesale and retail trade, professional/technical services, food services and health care.

• From June 2013 to June 2014, Summit County added 1,278 new jobs for a year-over increase of 5.9 percent. Summit’s labor market continued to exhibit balanced growth with all but two major industries producing new positions.
• Professional, scientific, technical and headquarters employment increased the most by 225 jobs. Construction grew a healthy 12.8 percent adding 161 new jobs. Accommodations and food services provided 3 percent increase of 149 positions, with local government adding 148, a 5.9 percent growth. The last industry adding more than 100 jobs was arts/entertainment/recreation growing by 13.8 percent with 143 new jobs.
• Twelve other industry subdivisions contributed new positions as economic growth was very broad based. Just two industries shed employment, mining with eight less jobs and manufacturing with a reduction of one position from June 2013 to June 2014.
• The seasonally adjusted unemployment rate in Summit County was 3.1 percent in September 2014, an estimated 730 unemployed workers. A year earlier the unemployment rate was 3.7 percent.
• Employment gains among the majority of industry sectors are expected to continue. Overall job growth through 2014 should be about 1,100 or in the neighborhood of 4.7 percent. This is a pick-up in economic activity from Summit County’s employment growth of 713 in 2013 and 791 new jobs created in 2012. 

Utah, Summit, Wasatch and Juab Counties’ robust job growth and favorable labor market conditions are expected to persist through the end of 2014 and continue through 2015. By September of 2014, the unemployment rate in Mountainland declined to a very favorable rate of 3.4 percent. Based on the strength of employment growth in recent years, job opportunities and low unemployment will continue to characterize this area.

Utah County Economic Update

Economic conditions in the Mountainland Economic Service Area (Utah, Juab, Wasatch and Summit Counties) are positive with strong year-over job growth of 3.8 percent, or 8,717 new jobs from June 2013 to June 2014. In 2013, average payroll job growth in the region was a very rapid 5.2 percent above the average level of employment in 2012. There has been job increases in most major industry sectors with particular strength among construction, wholesale and retail trade, professional/technical services, food services and health care.

• In June 2014, the number of payroll jobs in Utah County increased by 3.5 percent over June 2013, with 9,099 new positions. New employment growth has occurred in most major industrial sectors.
• The most new jobs were added by the trade industry with 1,767 additional jobs, a year-over increase of 6 percent. Most subdivisions of wholesale and retail trade experienced growth.
• Construction added 1,729 positions, expanding by 11.3 percent. The majority of these new jobs were in residential housing construction.
• This solid construction activity is reflected in related industries such as building materials and garden supply stores, wood product and furniture manufacturing, each of which also experienced healthy employment gains.
• Professional, scientific, technical and headquarters grew 9.4 percent, or 1,381 jobs. Computer systems design, management consulting and technical consulting services were responsible for most of the new opportunities.
• Restaurants, food services and accommodations added 864 jobs, growing by 6.2 percent.
• Healthcare and social assistance contributed 854 new positions, increasing by 3.9 percent.
• The seasonally adjusted unemployment rate in Utah County was 3.3 percent in September 2014, an estimated 8,230 unemployed workers. A year earlier the unemployment rate was 4 percent.
• Utah County growth is expected to continue at its present rate through 2014 at about 3.7 percent, adding on average between 6,500 to 7,800 new jobs, with a similar overall job growth performance in 2015.

Utah, Summit, Wasatch and Juab Counties’ robust job growth and favorable labor market conditions are expected to persist through the end of 2014 and continue through 2015. By September of 2014, the unemployment rate in Mountainland declined to a very favorable rate of 3.4 percent. Based on the strength of employment growth in recent years, job opportunities and low unemployment will continue to characterize this area.

Annual Profiles

The Workforce Research and Analysis division has updated information in the county Annual Profiles.

The information available in these Annual Profiles are separated by county and state and include:

• quick facts
• nonfarm employment
• unemployment
• major employers
• population
• demographics
• income and wages
• construction
• gross taxable sales
• county rankings

This data is updated on an annual basis, and dates can be found at the bottom of each tab. To print any of the visualizations, see the instructions here. For more information about this data, contact your regional economist.

New County Pages

See our new County Pages, each with their own URL for easy bookmarking. Find labor market information that has been divided into counties and regions for a quick look at each area.

Also find a new look for the Current Economic Snapshots (Juab, Summit, Utah and Wasatch). These are economic snapshots are a two-page look at the current information for labor force, sales, building and unemployment insurance for each county in Utah, and are updated monthly after the Employment Situation.

These can be accessed on the Utah Economic Data page or on the Labor Market page under the "County Snapshots" link.

Rocky Mountain Power sees new breakthrough in substation talks

Rocky Mountain Power is considering an option to expand its electricity capabilities in Park City without having to increase the space where the substation off Bonanza Drive is situated.

It was an unexpected statement from Rocky Mountain Power after months of tense talks about the substation that centered on an apparent need for more space for an expanded substation.

In an interview, a Rocky Mountain Power official heavily involved in the discussions in Park City said there are talks underway with officials in Heber that could result in the company not needing some of the transmission-line upgrades previously discussed in Park City.

Steve Rush, the customer and community manager for Rocky Mountain Power, said a deal is possible with Heber leaders to rebuild 10 miles of transmission lines from the Jordanelle Reservoir to Midway.

If that occurs, he said, Rocky Mountain Power could expand the capacity of the existing lines into Park City. The power poles in Park City would not need to be replaced with taller ones, he said. Park Record

Deer Valley envisions major expansion in Wasatch County

Deer Valley Resort and a small group of other landowners in Wasatch County with a combined hundreds of acres under their control have started discussions about a major expansion of the resort on ground overlooking the Jordanelle Reservoir.

An expansion would involve new ski terrain and a substantial amount of residential development. The land is situated in unincorporated Wasatch County, meaning that county leaders there will review any proposals from Deer Valley and the other landowners. No applications have been filed.

Bob Wheaton, the president and general manager of Deer Valley, said the resort and the other landowners have been in talks over the past year about acreage in the direction of Heber from the base of the Jordanelle Express gondola. It is on the Deer Valley side of U.S. 40. A development application or multiple ones could be filed in Wasatch County by the end of the year, he said. Park Record

Med supply company complex under way

Ground was broken last week in American Fork for an expansion of Henry Schein, the nearly $10 billion health care products and services company. The 100,000 square foot project will house the current 430 Utah Schein employees who will relocate from the present company location nearby.

Schein officials expect the building to ready for occupancy in the second quarter of 2014. Local employees will be a part of Henry Schein Practice Solutions, the division of the company dealing primarily with customer support, software engineering, sales and other business-related functions.

A spokesperson for Schein said that the company expects the new facility, located in the northeast corner of American Fork’s North Point Business Park, to be able to accommodate growth for the next two to three years with the space to house more than 550 employees. Salt Lake Enterprise

S.R. 248 construction begins

Road widening and intersection improvements will begin on S.R. 248 starting Monday, June 17. The work is expected to be completed by Aug. 15 and construction hours will be Mondays through Fridays from 7 a.m. to 6 p.m. with some Saturday work anticipated.

The project will seek to improve the intersection of Richardson Flat Road and S.R. 248 by adding turn lanes and installing the infrastructure for a future stoplight, according to a City Hall release. Additionally, the project will widen S.R. 248 to five lanes from Richardson Flat Road to Round Valley Drive with bicycle lanes. Park Record

Nu Skin Center to become new landmark in historic Provo district

There are buildings from the 19th, 20th and 21st centuries standing within just a few blocks of each other, telling the design history of Utah County’s largest city.

The newest addition to the area will be the world headquarters for Nu Skin Enterprises — the Nu Skin Innovation Center. The global multilevel marketing firm is currently expanding its Utah County campus by constructing a state-of-the-art facility that will house 900 employees and bring a new landmark to downtown Provo. Deseret News

Utah’s newest trail opens at Provo Canyon

Utah County officials on Saturday celebrated the opening of the 17-mile Murdock Canal Trail that starts at the mouth of Provo Canyon and ends at Thanksgiving Point.

The 15-foot-wide paved trail for pedestrians and bicycles, and an adjacent trail for horses, were made possible when the Provo River Water Users Association enclosed the Provo Reservoir Canal in a 126-inch steel pipe.

As many as 1.8 million people are expected to use the trail annually. Salt Lake Tribune

Timpanogos Highway facing summer of construction

The Utah Department of Transportation said work to repair long, horizontal cracks in the soil nail wall that supports the ground along the highway will force closure of one lane in each direction periodically over the next several months.

Crews will be replacing concrete panels along the length of the project and a retaining wall on the westbound entrance of the commuter lane. Deseret News

Remodeling complete at three Macey’s stores

Macey’s grocery stores in West Jordan, Provo and Pleasant Grove are celebrated a grand reopening, which included new décor, sales and giveaways.

In 1947, Walt Macey and Dale A. Jones started the Save-A-Nickel-Market in Rose Park. Today, Macey’s supermarkets offer a made-from-scratch in-store bakery, delicatessen, full-service grocery, meat, produce and a non-foods department. Salt Lake Tribune

Developers planning 2 million square feet of office space at Geneva site

Developers of the former Geneva Steel site have announced plans to build 2 million square feet of office space as part of its 100-acre mixed-use project.

Construction on the project, approved in January 2011 by the Vineyard Redevelopment Agency, is set to begin this summer.

Plans for the site at 800 North and Geneva Road call for 7,500 residential units and 2 million square feet of office space. The total site covers more than 1,700 acres along a 1.5-mile frontage on the east shore of Utah Lake. Deseret News

Building Utah's workforce key to becoming Silicon Valley East

Instead of a place to keep felons behind bars, the ground on which the Utah State Prison now sits could someday be the hub of a sprawling business community where bright minds unlock the door to new technology.

The burgeoning IT corridor in southern Salt Lake County and northern Utah County is poised to be the focal point of Utah's economic future. It's where the state's two largest metropolitan areas converge, both of which have major universities and expanding transportation systems. Companies including Adobe and eBay already call it home.

The governor and state lawmakers convening this week have key roles in preparing the state to take advantage of an anticipated boom, particularly in information technology and life sciences.
And a key component of that is education and building the workforce.

Companies like Goldman Sachs and Procter & Gamble came to Utah primarily because of its business-friendly environment and stellar workforce.

Those two firms account for nearly 2,600 jobs and will pay $437 million in corporate income tax over the next 20 years, all of which goes directly to public education, according to the Governor's Office of Economic Development.

But even though Utah has the second fastest growing economy in the nation, there are signs that the quality of the workforce might not be able to keep up in the technology arena.

Some top economic development officials fear a well-known company might decide against coming to Utah because the state wouldn't be able to supply enough tech-related graduates to fill its needs.
On average, public schools see about 14,000 new students a year, costing an additional $75 million annually.

Bringing a business like Goldman Sachs to Utah each year helps cover those growing education costs. Deseret News

Construction on Provo Tabernacle gets off the ground

The Provo Tabernacle is on track to become the LDS Church's second temple in Provo.

From a distance, the Provo Tabernacle appears to stand as it has stood since the late 1800s. But upon closer inspection it floats above the ground, held in place by a network of steel supports.

Since The Church of Jesus Christ of Latter-day Saints held a groundbreaking for the new temple on May 12, 2012, crews have reinforced the interior walls of the tabernacle with rebar and concrete. Now the site is being excavated for what will become a basement in the new temple.

The Provo Tabernacle was severely damaged Dec. 17, 2010, when a lighting technician mistakenly set a 300-watt light fixture on a wooden speaker box in the attic, Provo fire investigators concluded. The blaze caused an estimated $15 million in damage.

The progress on the temple is also a catalyst for Provo's downtown.

The restoration of this landmark is attracting a lot of people who want to see history in the making as the pioneer-era tabernacle is transformed.

The project is expected to be finished sometime in 2015. That’s when the Provo City Center Temple will be formally dedicated. Deseret News

Utah Senate committee debates prison relocation

Utah lawmakers are considering a plan to relocate the state prison in southwest Salt Lake County.

Sen. Scott Jenkins introduced legislation that creates an authority to manage the relocation of the Utah State Prison and evaluate proposals from companies seeking to build a new prison or develop the old site.

The Utah State Prison occupies about 700 acres in Draper where tech companies such as eBay and Microsoft have opened offices.

Gov. Gary Herbert has called on lawmakers to fund the relocation so the corridor can develop as a technology hub. State officials have been weighing relocation for several years.

The Utah State Prison was built in 1951 and houses about 4,500 inmates. Before that, Utah's state prison was at what is now Sugar House Park.

The state also operates a prison in Gunnison, the Central Utah Correctional Facility.

The goal is to get the legislation passed quickly so the authority can get up and running by April 15, as required by the bill, Sen. Scott Jenkins said.

The authority would then seek proposals from companies and come back to the Legislature and governor with a viable option.

It's unlikely any proposal would be ready to come before the Legislature by the time next year's session concludes, but the governor could convene lawmakers in a special session to approve the plan.

Some of the possible sites that have been considered for the new prison are in northwest Utah _ specifically Box Elder County, Juab County and Tooele County. Cache Valley Daily

Proposed high-rise apartments cause concern in east Provo

Two proposed high-rise apartment complexes have some Joaquin neighborhood residents and property owners concerned that too many cars and not enough parking places will cause more parking and safety issues in an already beleaguered area.

During today's municipal council meeting, the council will entertain two motions to have a zone change from residential conservation to campus high density residential. The first is for a seven-story mixed use development that would provide approximately 700 beds plus main floor retail space. The second project would feature 316 beds.

The first development seems to fit the bill for students and the city; developers would only need to provide seven parking spots for every 10 beds. However, if more than 70 percent of students bring cars, they're going to be left parking on the street. Add to that more cars in the area and more pedestrians and the area gets less safe as well.

That could be accomplished, given how close the buildings are to campus, according to one planner. Andrew Jackson, executive director of the Mountainland Association of Governments, said communities are getting back to the neotraditional style of walking communities and shops on each corner similar to Europe or the eastern United States. These types of design could eliminate the need for everyone to have a car, if done correctly.

With limited land to build out, Provo is looking at high-rises like these two developments and others being built downtown. Daily Herald