Business & tax climate among factors in Utah's high grades

Brice Wallace 

An annual survey of company leaders indicates that opinions about doing business in Utah remains high.

The overall score in the Economic Development Corporation of Utah (EDCUtah) “Know the Customer” survey is 56, which is “very positive,” according to Erin Farr, EDCUtah’s senior business development manager and survey program manager.{mprestriction ids="1,3"}

That net promoter score is a benchmark that organizations use to measure customer loyalty, on a scale from minus-100 to 100.

“That’s a very good score,” Farr said of Utah’s number as she briefed the Governor’s Office of Economic Opportunity (Go Utah) board at a recent board meeting. “To note, though, that score is actually 32 points lower than past years. So that is something to be aware of. We want to make sure that we continue to be a great place for doing business.”

The fourth annual survey also indicates that most of those surveyed find that operating in Utah has improved the past two years, compared to those who say it has worsened; the majority indicate they would expand their headcount or real estate during the next year or two; and a large majority is pleased with the quality of the Utah workforce.

Respondents from companies started in Utah give Utah a slightly higher overall score than companies that moved to the state, Farr said. “That also flipped from last year,” she said. “It’s usually been where companies that have moved to Utah experienced more satisfaction.”

Farr suspected perceptions likely did not change but instead were the result of a small survey sample size.

The survey shows that the top two factors driving Utah’s favorable ratings are business and tax climate and geography for distribution. Ninety-five percent of companies believe the quality of Utah’s workforce is the same or better than other regions.

Thirty-two percent of respondents indicate their opinion of doing business in Utah has improved over the past two years, 46 percent say it has stayed the same, and 22 percent say it has gotten worse. “We find that to be a positive as well,” Farr said of the majority expressing improvement or remaining the same.

Sixty-five percent of respondents say they plan to increase their employee base or real estate during the next 12-24 months. Main areas of focus for them during that time are maintaining or retaining their workforce (82 percent) and training their existing workforce.

Financial services companies are less likely to expand within their county, while outdoor products companies are more likely to expand within their county, the survey showed. Life sciences and outdoor products companies are least likely to expand into a rural community.

Among the most-pressing issues facing the state over the next five to 10 years, respondents cite population growth and talent shortage. Water comes in at No. 3.

“That doesn’t surprise us,” Farr said. “We’ve seen a lot of [expansion] projects in the past year and a half or two who need a lot of water, so that, combined with our drought problems, we’re seeing water becoming very much a top-of-the-mind issue that companies are thinking about.”

EDCUtah recruits companies to Utah and supports and facilitates the growth of existing companies in the state. The “Know the Customer” program, started in 2019, aims to help EDCUtah better understand the challenges and plans of existing businesses and to support their future success in the state. It also provides an “early warning system” to identify Utah companies considering moving jobs outside Utah.

The 2022 survey report is at https://www.edcutah.org/research-brochures/know-the-customer.{/mprestriction}