A new study has ranked the State of Utah as the most fundamentally sound state across six different categories. The categories were economic performance, high-tech performance, transportation and trade, talent pipeline, innovation and entrepreneurship, and business climate. The report ranks states by their economic vitality and high-tech performance. Presidents of both the Cedar City and St. George chambers of commerce stated they weren’t surprised by these results.
The study was done by the Praxis Strategy Group for the U.S Chamber of Commerce Foundation. The report found that Utah ranks first in the country for innovation and entrepreneurship, second for high-tech performance, third for economic performance, fifth in transportation and trade, and seventh for business climate.
Utah trailed only North Dakota and Texas in overall economic performance.
Greg McArthur, the president of the St. George Chamber of Commerce, said the general atmosphere of Utah businesses was a big factor in Utah performing so well.
“Several of the reasons the state and southern Utah are attracting businesses is that the cities in southern Utah are friendly and easy to work with,” McArthur said. “City and county officials are easy to access. We have relatively low tax rates and less regulations and rules than the bigger areas have. The employees in the area are well educated and reliable. For these and other reasons, we are attracting businesses from California and elsewhere.”
Cedar City Chamber of Commerce President and CEO Chris McCormick listed several more reasons why Utah is ranking so well economically.
“The State of Utah including southern Utah enjoy a great lifestyle,” McCormick said. “We have the National Parks and unlimited recreation. The area also has a long heritage of volunteerism which goes all the way back to the building of Southern Utah University, when the pioneers sacrificed their homes and everything they had to build not only the University but the community.”
“The same mentality exists now,” McCormick continued. “Our communities are a collection of people from all walks of life. It is a work ethic and the spirit of the people. The Governor of the state of Utah has laid out a very effective economic plan and it is working. Governor Herbert is very involved and visits the communities in the state frequently. He passes out a card with Utah’s four economic strategies printed on it.”
Gov. Herbert’s four objectives for the state of Utah are to strengthen and grow existing Utah businesses, both urban and rural; increase innovation, entrepreneurship and investment; increase national and international business; and prioritize education to develop the workforce of the future.
“More good news,” Herbert said in a statement sent to The Independent from the Governor’s Office. “The U.S. Chamber of Commerce information is encouraging. Utah has the best economic stability of any state in America today, and in the ranking of the six major categories, we scored in the top ten of five of the six categories, and just barely missed out on the sixth, where we scored in eleventh place. We have reason to be very optimistic about our future because we are stable economically. We’ve diversified our economy and right now it is very robust and we’re performing very well.”
According to the report, cooperation and collaboration are the cornerstones of Utah’s job creation success. The state currently has a low unemployment rate. Utah has also made the process of required business licenses and other permits easy to obtain, which fosters small business growth in the state. There are also 14 business resource centers throughout the state that offer advice and support to small businesses.
“The report talks about our unique ability to collaborate and cooperate in getting things done in the state of Utah,” Herbert added.
Madeline Ellis, owner of Daisy Delights Catering, a local catering business in southern Utah, said that other states in the region make it more difficult to start and operate a business.
“The licensing process and regulations in other states such as Arizona and even Nevada are so difficult and expensive, it curtails business,” Ellis said. “Even for a small event in Beaver Dam [Ariz.], I had to jump though hoops to even attend and participate. The cost to operate in other states is sometimes more than the profit.”
In addition to the good news by the Praxis Group, Forbes Magazine has ranked Utah No. 1 for the fifth time in six years as the top state for a very pro-business climate. The article also stated that companies benefit from energy costs that are 23 percent below the national average. There are only three states in the U.S. with lower energy costs. Employment in the state of Utah has expanded 2.2 percent over the last five years, which represents the third best in America. Tourism has also soared in the state.
Forbes went on to also rank Utah as first in the nation for growth prospects. The state ranked third in labor supply, fifth in business costs, and sixth in both regulatory environment and economic climate.
