World Travel Guide

City Guide  - Salt Lake City  - Business
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, at the end of 1999, Dun & Bradstreet cited the Salt Lake/Ogden area as having the second best business climate 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 defense 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 the 13th most diversified state economy 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%. The projected job growth rate for 2000 is a more modest 2.4%, although Utah's economy is still expected to outperform the national average. It has been predicted that between 1993 and 2003, overall employment in the state will increase by 12%. During this period, 80% of all jobs (and 90% of new ones) will be in the service-producing industries, which include transportation, communication and real estate. Investment in infrastructure, such as the rebuilding of I-15 through the city, has boosted employment in the construction industries. State public education, health care and business services are other growth industries.

The services industry is the largest sector, generating 27% of all earnings, followed by government, manufacturing and retail trade. Computer and management services, telemarketing and engineering are the growth leaders in this sector.

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 age 18, forming a growing work force. Less than 5% of manufacturing workers belong to a labour union.

One of the most exciting signs for future growth was Intel's decision in 1999 to begin building a major research and development campus in the Salt Lake suburb of Riverton, which will generate 2000 high-level jobs, with the potential for several thousand more jobs in the next two decades. Other major businesses include American Express and Discover Card, who both have processing centres here located here, and Novell software corporation.


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



Copyright © 2001 Columbus Publishing
    
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