Weber County Economic Development Plan

2018 WEBER COUNTY STRATEGIC ECONOMIC DEVELOPMENT PLAN ON THE COVER View of the Wasatch Mountains in Weber County #WinningInWeber: Strategic Economic Development in Weber County Weber County is on the rise Our county possesses all the assets that make Utah’s economy the envy of the nation We have an enviable quality of life, a strong economy, endless recreational opportunities and a vibrant urban core After years of visioning our future, now is the time to make Weber County’s strengths known This strategic plan proposes a new approach to economic development, including a summary of our strategic goals and specific recommendations to meet them A more detailed work plan and additional documents can be found at webercounty.com/winninginweber We are committed to using the recommendations outlined in this plan to raise Weber residents incomes by attracting and supporting quality job creation, diversifying our economic base and positioning Weber County and northern Utah as a leader in economic development the neighboring counties to unite with us and take part in this transformative regional approach to economic development It’s a new day for economic development in Weber County, and that takes new thinking and improved partnerships We acknowledge all of our great partners who helped develop this plan, including community stakeholders, business leaders, local elected officials and other interested parties This is the type of collaboration and thoughtfulness that Weber County residents and businesses can expect from our economic development efforts moving forward Join with us, review this assessment and strategy document and get ready for more #WinningInWeber Sincerely, Commissioner James Ebert Our data-driven assessment of Weber County’s economy pinpoints several areas of focus to help us accomplish these ambitious goals We can concentrate on showcasing our strengths, while also intentionally addressing weaknesses within our value proposition We invite officials and stakeholders from our cities and Commissioner James H “Jim” Harvey Commissioner Kerry W Gibson *Special thanks to PGCC Strategies and the Economic Development Corporation of Utah (EDCUtah) for their leadership and partnership on this project DEMOGRAPHIC PROFILE Weber County Utah Total Population 247,560 3,051,217 5-Year Population Growth Rate 5.0% 7.9% 5-Year Employment Growth Rate 15.0% 17.4% Total Households 87,515 1,011,099 Median Household Age 31.3 years 29.2 years Median Household Income $63,158 $65,977 #WinningInWeber STRATEGIC GOALS TO GUIDE ECONOMIC DEVELOPMENT IN WEBER COUNTY Building Prosperity Through Higher Incomes Attracting and Supporting High-Quality Job Creation Rising to Our Potential Ensuring a Dynamic Economy RECOMMENDATIONS TO ADVANCE STRATEGIC GOALS #WinningInWeber Pursuing a Regional Approach to Economic Development Building a Brand and Marketing Strengths Enhancing Quality of Life Maximizing Real Estate Opportunities Strategically Advancing Infrastructure We are committed to the strategic goals outlined in this document as the guiding metrics for building Weber County’s economy Accomplishing these goals will not be easy and securing results will take the collective efforts of every Weber County resident, business, and elected official STRATEGIC GOALS TO GUIDE ECONOMIC DEVELOPMENT IN WEBER COUNTY Building Prosperity Through Higher Incomes Current: Weber County ranks last among Wasatch Front counties for Median Household Income Goal: Meet or exceed the state average for Median Household Income in the next five years by supporting high-quality job creation 2016 Median Household Income Median Household Income by Year 63,158 Weber County 76,905 Davis County 68,665 Salt Lake County 80,000 WEBER COUNTY DAVIS COUNTY 70,000 SALT LAKE COUNTY 69,799 Utah County UTAH COUNTY 60,000 STATEWIDE AVERAGE 65,977 Statewide Average 50,000 20,000 40,000 60,000 80,000 Source: American Community Survey, 2016 ACS 1-Year Estimates 2009 2010 2012 2014 2016 Source: American Community Survey, 2009-2016 ACS 1-Year Estimates Attracting and Supporting High-Quality Job Creation Current: It is estimated that nearly 12,000 jobs will be created in Weber County over the next five years It’s imperative that those are high-quality jobs Goal: Actively work to attract high-quality jobs that improve the Median Household Income of Weber residents by averaging an estimated $56,800 salary across the forecasted jobs Annualized Job Growth Weber County Job Growth 5,000 2,500 -5.15% UTAH COUNTY 2.5% WEBER COUNTY UNITED STATES 1.57% 3.15% 4.04% 2.27% N AT I O N A L 3.07% 1.91% CALIFORNIA 0.48% -1.45% -5.0% -0.21% -2.5% 3.35% 0.0% JOB GROWTH 7.5% 5.0% 0.48% -0.21% -1.45% 2009 2010 2011 2012 2013 2014 Source: Utah Department of Workforce Services 2015 1.57% 2.20% 2.20% 2.20% 2.20% 2016 -5.0% -5.15% -5,000 -7.5% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 RATE OF JOB GROWTH 2017 *NOTE: An average regarding salaries means there will be many jobs above and below the stated baseline Source: Utah Department of Workforce Services and PGCC Strategies calculations on forecasted job growth #WinningInWeber 2.5% 0.0% -2.5% -2,500 JOB GROWTH 2008 2.27% 2.20% SALT LAKE COUNTY -7.5% 2007 5.0% 4.04% 3.15% DAVIS COUNTY STATEWIDE 3.07% 1.91% 3.35% W EB ER C OUN TY G R E AT S A LT LAKE MORGAN COUNTY D AV IS C OUN TY 84 TO O E L E COUNTY SUMMIT COUNTY SALT LAKE CITY S A LT L A K E COUNTY Rising to Our Potential Current: Weber County is not yet fully realizing its robust economic potential and leveraging its competitive advantages for the benefit of county residents Goal: Work toward regional partnerships and national recognition to improve and support economic development activities in Weber County Number of New Jobs by Year 50,000 25,000 WA S AT C H PROVO -25,000 U TA H LAKE -50,000 2007 2008 2009 2010 2011 2012 2013 Goal: Target economic development activities toward maximizing competitive advantages in the industries identified to the right #WinningInWeber 2015 WEBER COUNTY UTAH COUNTY DAVIS COUNTY SALT LAKE COUNTY Ensuring A Dynamic Economy Current: Weber County is home to a diverse economy, but could benefit from deepening its areas of expertise 2014 ADVANCED MANUFACTURING AEROSPACE & DEFENSE TECHNOLOGY & LIFE SCIENCES OUTDOOR PRODUCTS 2016 2017 C AC H E 25mi Radius 89 COUNTY 1 WEB ER COUN T Y G R E AT S A LT LAKE MORGAN COUNTY 84 DAV I S COUNTY TO O E L E COUNTY SUMMIT COUNTY SALT LAKE CITY S A LT L A K E COUNTY Note: 25mi Radius Population 608,380 50mi Radius Population 2,569,370 WEBER COUNTY ASSETS MAJOR UNIVERSITIES & TRANSPORTATION Air Weber State University, Ogden Ogden-Hinckley Airport Ogden-Weber Tech College, Ogden Brigerland Tech College, Brigham City Salt Lake City International Morgan County Airport Davis Tech College, Kaysville City Skypark Airport University of Utah, Salt Lake City Utah State University, Logan Autoliv America First Credit Union FrontRunner Train long distance commuter U TA H LAKE Trax Trainlocal/airport Fresenius USA Manufacturing Road Interstate 15 Associated Food Stores 84 Congara Foods 89 RECREATION Union Station Snow Basin Resort Pineview Resevior Powder Mountain Resort Interstate 84 Highway 89 INFRASTRUCTURE Natural Gas Service Broadband Fiber DSL, Cable, and Fixed Wireless Culinary Water WA S AT C H LEHI Rail MAJOR COMPANIES WEB ER COUNTY PROVO SALT L AKE C ITY Education & Labor WEBER STATE UNIVERSITY UNIVERSITY OF UTAH UTAH STATE UNIVERSITY OGDEN SALT LAKE CITY LOGAN 26,809 Enrolled Students 31,860 Enrolled Students 28,118 Enrolled Students 5,086 Graduates Public Institution Expertise in Business & Healthcare 7,783 Graduates Private Institution Expertise in Research, Genetics, & Medicine 3,280 Graduates Public Institution Expertise in Engineering & Agriculture Educational Attainment Population age 25+ with a Bachelor’s Degree 21.0% State of Utah 20.4% Ogden-Clearfield MSA United States Weber County 18.8% 15.9% Source: U.S Census Bureau Custom Fit Training Custom Fit Training is a partnership between the Utah College of Technology, Salt Lake Community College, select sister institutions across the state and the local business community Its mission is to provide customized employee training to businesses at an affordable cost, either in a classroom setting or at the business location The Utah State Legislature appropriates funds each year as an investment in Utah’s economy through Custom Fit #WinningInWeber KEY RECOMMENDATIONS After a detailed assessment of Weber County’s assets, weaknesses and opportunities, below are the key recommendations to achieving our strategic goals We encourage you to review the documents in the addendum for more detail regarding these recommendations Pursuing a Regional Approach to Economic Development: Economic development activity is often independent of political boundaries, especially at the county and local level After years of noteworthy actions, it’s time to move the county forward with a regional approach to economic development In the next few months, we will actively work to advance this new approach with key partners and other interested counties to improve economic development throughout northern Utah This shift will take time, but will ultimately set our county and region apart and prove to be the best tool for accomplishing our strategic goals Highlighted Action Items: Marketing Strengths and Building A Brand: Weber County and its 16 cities represent an amazing community that has the potential to attract increased economic prosperity if marketed well As part of a regional approach, we need to ensure we tell more of our story as a community on the rise, as the state’s manufacturing base and as a potential magnet for life science companies Highlighted Action Items: Enhancing Quality of Life: Weber County’s top competitive advantage is our unrivaled quality of life We have some of the best recreation access in the state, a commitment to improving our schools and a strong focus on helping those most in need The county will also take a more assertive role in helping promote solutions to our region’s air quality challenges, which impact families and our ability to grow economically This new focus will pay dividends for talent attraction by keeping Weber County the preferred place for our residents, and their kids and grandkids, to build a career and family Highlighted Action Items: Maximizing Real Estate Opportunities: Weber County has much to offer, but the inability to accurately communicate these offerings holds our economy back This is particularly true in regard to our county’s real estate assets We need to a better job taking inventory of what real estate is available by working with property owners and local communities We must also work with key stakeholders to advance site development, align infrastructure investments, and target focus on the missing elements, such as Class-A office space, that stop companies from locating here Strategically Advancing Infrastructure: Nothing will drive greater investment in our community than ensuring we have the infrastructure to handle future population growth This means we need to take a more proactive role in aligning infrastructure planning and spending with our goals for economic development This also includes maximizing the OgdenHinckley Airport and working with utility partners, the state, cities and the private sector to make Weber County a leader in planning for Utah’s future #WinningInWeber Expand efforts to support Weber County cities and towns Work with neighboring counties on strategic goals and branding Establish a regional economic development approach Proactively engage local business and business leaders Amplify county efforts to share strategic accomplishments and assets Establish new brand through regional economic development approach Work with local community stakeholders on the quality of weber schools Connect intergenerational poverty efforts to economic development Enhance recreation assets and better market lifestyle advantages to attract talent Highlighted Action Items: Host Quarterly Roundtables with Stakeholders to Improve Inventory Leverage Existing Industrial Assets Pursue Class-A Office Development and Mega Site Designation Highlighted Action Items: Support and enhance Ogden-Hinckley Airport development efforts Advance discussions on West Weber corridor and associated land use planning Maintain Momentum on Highway, Transit and Other Infrastructure Investments Hill Air Force Base: The Anchor of a Regional Approach There are 27,365 total personnel within Hill Air Force Base, including 5,636 military, 5,591 military dependents and 16,138 civilians Hill Air Force Base has an annual federal payroll of $1.34 billion and annual expenditures of $710 million Annually, Hill Air Force Base creates approximately $1.29 billion in jobs created with a total of $3.34 billion in total annual economic impact Source: The Hill Economic Impact Analysis is prepared by the Acquisi on Cost Division, Hill AFB ASKING WEBER BUSINESSES WHAT THEY NEED TO SUCCEED Research Objectives Business Survey: Weber County, in partnership with EDCUtah, launched an in-depth business survey unlike any other conducted in the past The goal of the business retention and expansion survey was to reach businesses within the borders of Weber County and identify core data that highlights the county’s business landscape Key Facts: 1 Identify key characteristics of Weber County businesses 2 Define primary barriers of growth for Weber County businesses 3 Understand Weber County’s value proposition to existing businesses 4 Identify potential solutions stakeholders can help solve 1,153 businesses completed the survey, representing a 24% response rate Small business drives Weber County’s economy Over 85% of the respondents were businesses with less than 20 employees, 54% had 1-3 employees Every city was invited to participate by sharing their business license list Main Takeaways: High Marks: Businesses gave high marks for Weber County’s pro-business environment, regulatory requirements and attractiveness for talent recruitment Important Factors: Proximity to outdoor recreation, transportation services for products, arts and entertainment, clean air and quality of healthcare are of the greatest importance to companies looking to expand in Weber County Barriers to Business Growth: Growing the customer base, finding labor and controlling costs are the leading barriers for growth Strategic Interviews: Going beyond the survey research, Weber County identified 50 companies across business sectors, and cities and towns in the county, to interview Interview discussion topics included workforce, education, supply chains, taxes, business expansion, transportation and infrastructure Many of the identified companies had not received any outreach from Weber County in a number of years so these interview meetings were met with genuine gratitude from both parties Themes: Improving schools Protecting quality of life #WinningInWeber The need for a concerted vision Encourage partnerships between county and cities, and a looking at a regional approach UNDERSTANDING WEBER COUNTY’S ECONOMY Gross Domestic Product (GDP) is the total value of goods and services produced by a region In 2016, nominal GDP in Weber County expanded 4.3% This follows growth of 6.1% in 2015 As of 2016, total GDP in Weber County was Annual GDP Change in Weber County 2007 2008 2009 2010 2011 2012 2013 2016 2017 6.1% 2018 4.3% 2015 5.4% 2014 1.6% 0.1% 0.0% 3.2% 2.7% -0.8% 5.5% 4.9% 4.0% 6.4% 8.0% 1.7% 11.2% 12.0% 2019 Note: Gross Domestic Product data are provided by the Bureau of Economic Analysis, imputed by Chmura where necessary, updated through 2016 Of the industry sectors in Weber County, manufacturing contributed the largest portion of GDP in 2016 ($2,074,611,000) The next-largest contributions came from public administration ($977,716,000); health care and social assistance ($835,598,000); and real estate and rental and leasing ($801,463,000) GDP (in $ Millions) Weber County, Utah 2016 $2,075 Manufacturing (31) $978 Public Administration (92) $836 Health Care and Social Assistance (62) $801 Real Estate and Rental and Leasing (53) $757 Finance and Insurance (52) $738 Retail Trade (44) Construction (23) $638 Educational Services (61) $630 Wholesale Trade (42) Administrative, Support, Waste Management, Remediation Services (56) $419 $352 Note: Gross Domestic Product data are provided by the Bureau of Economic Analysis, imputed by Chmura where necessary, updated through 2016 #WinningInWeber 5-Year Employment Change Employment change measures the average change in employment within a region over a five year period, from 2011 to 2016 14.28% Weber County 17.02% Utah 8.87% Nation 12 16 20 Source: Jobs EQ Future Population Growth 2010-2065: The Wasatch Front will see robust population growth over the next several decades 2,000,000 WEBER COUNTY DAVIS COUNTY SALT LAKE COUNTY 1,500,000 UTAH COUNTY 1,000,000 500,000 2010 2020 2030 2040 2050 2060 Source: Kem C Gardner Policy Institute Components of Changes in Weber County’s Population Population growth is driven by two factors: net migration (people moving in minus people moving out) and natural increases (births minus deaths) 6,000 BIRTHS DEATHS POPULATION GROWTH 4,000 NATURAL INCREASE NET MIGRATION 2,000 -2,000 2010 2020 2030 Source: Kem C Gardner Policy Institute #WinningInWeber 2040 2050 2060 MAJOR EMPLOYERS CO MPA N Y N U M BER O F E M P LOY E E S D E S C R I P TI O N Office Of Inspector General 5000-6999 Public Finance Activities Mckay Dee Hospital Center 3000-3999 General Medical and Surgical Hospitals Autoliv 2000-2999 Motor Vehicle Parts Manufacturing Weber State University 2000-2999 Colleges, Universities and Professional Schools America First Credit Union 1000-1999 Credit Unions Fresenius USA Manufacturing 1000-1999 Surgical and Medical Instrument Manufactur- Weber State University 1000-1999 Colleges and Universities Associated Food Stores 500-999 General Line Grocery Merchant Wholesale Columbia Ogden Medical Center 500-999 General Medical and Surgical Hospitals Conagra Foods 500-999 Cookie and Cracker Manufacturing Logistics Giving Resources 500-999 Temporary Help Services Marketstar Corporation 500-999 Marketing Consulting Services Teleperformance USA 500-999 Telemarketing Bureaus The Home Depot 500-999 Call Center Utah Medical Assistance 500-999 Human Resource Program Administration RECENT COMPANY ANNOUNCEMENTS Y EAR CO MPA N Y J OB S / C A P I TA L I N V E STM E N T E DTI F TAX C R E D I T CO M PA N Y F U N C TI O N Borsight 95 / $6,300,000 20% / Years Aerospace Manufacturing 2018 Readerlink Distribution Services 100 / $35,000,000 No incentive Wholesale book distribution center 2016 #WinningInWeber BUSINESS COSTS TAXES SOURCE: taxfoundation.org $1,416 $1,057 8% Property Tax (Collections per capita) N AT I O N A L 38.9% Average CO LO R A D O 4.63% Flat Rate CALIFORNIA 8.84% Flat Rate ARIZONA U TA H 2% 5% Flat Rate 4% 4.9% Flat Rate 6% N AT I O N A L CO LO R A D O $986 CALIFORNIA 300 WEBER 600 ARIZONA $969 1200 900 10% $1,385 $1500 Corporate Income Tax RD = Tax Credit on R&D MA = Sales Tax Exemption on Manufacturing *GRT: Gross Receipt Tax REAL ESTATE: OFFICE $191.83 $17.43 CO LO R A D O N AT I O N A L N /A N AT I O N A L N /A $10.31 $8.59 CO LO R A D O CALIFORNIA $7.73 $6.26 WEBER N AT I O N A L $108.41 CO LO CALIFORNIA $107.08 ARIZ $106.16 WEBER Construction ($/sq.ft.) ARIZONA 10 $122.30 150 $140.65 $12 50 $23.08 SOURCE: Loopnet SOURCE: RSMeans $175 75 $17.96 Lease ($/sq.ft.)* REAL ESTATE: INDUSTRIAL 100 CALIFORNIA ARIZONA 10 Construction ($/sq.ft.) 125 $15.7 20 WEBER $166.80 25 15 N AT I O N A L $147.86 CALIFORNIA 75 WEBER 100 $146.04 125 ARIZONA 150 $144.78 175 $30 CO LO R A D O $200 SOURCE: Loopnet SOURCE: RSMeans Lease ($/sq.ft.) We are excited to be expanding our business in Utah based on the recent Readerlink growth This new 500,000 square foot facility will ensure even faster shipping of our product - Mark Merseth Readerlink Director of Operations KEY INDUSTRY WORKFORCE DATA Key Industry Employment Index A location quotient is a value that quantifies how concentrated an industry is in a particular region This graph shows an index based on location quotients Any industry value above the national average of 100 demonstrates a competitive advantage in Utah Public Administration 176 Public Administration Manufacturing 168 176 Manufacturing Administration, Support, Waste Management & Remediation Services 168 121 Administration, Support, Waste Management & Remediation Services Construction 115 121 115 111 Construction Retail Trade Retail Trade 111 50 100 National Average 150 50 100 National Average 150 Wages in Key Industries 200 SOURCE: Jobs EQ 200 SOURCE: Jobs EQ P U BLIC AD MINI STRATION U TA H $31,735 $31,735 U TA H U TA H U TA H BER W E B E R W E$27,976 $27,976 $47,367 $47,367 $47,063 $47,063 U TA H$34,321 $34,321 AD M I NI ST RAT I ON, SU P P ORT, WAST E M ANAG EM ENT & REM ED I AT I ON SERV I C ES MANU FACTU RING ADMI NI STRATI ON, SUPPORT, WASTE MANAGE MENT & RE MEDI ATI ON SE RVI CES WEBER WEBER M A N U FAC T U R I N G U TA H U $55,291 TA H $55,291 BER $27,217 W E B E R W E$27,217 PUBLIC A D M I N IST R AT I ON 20 U TA H 40 20 U TA H WEBER WEBER 60 40 WEBER WEBER 80 60 U TA H $52,723 $52,723 $51,361 $51,361 $100 80 $53,133 $53,133 Key $100industries were identified by their high location quotients, an indication of the concentration of the CONST RU C T I ON RETAI L T RADE CONSTRUCTI ON RE TAI L TRADE SOURCE: Jobs EQ SOURCE: Jobs EQ Weber County Industry Cluster Analysis 14.28% WEBER COUNT Y $65 E BHE R C O U N T Y UWTA Metal & Produce LQ: 2.32 AVERAGE WAGES ($1,000S) TAI H NUAT O N $55 Public Admin LQ: 1.76 8.87% Wood/Paper LQ: 0.86 $45 Chemical LQ: 0.73 $35 Agricultural LQ: 0.77 Financial Svc LQ: 1.05 14.28% 17.02% 17.02% 8.87% Freight Tran LQ: 0.71 N AT I O N Machinery Mfg LQ: 2.22 Pharmaceutical LQ: 5.84 Food Mfg LQ: 1.12 Auto/Auto-related LQ: 2.22 12 Construction LQ: 1.18 16 12 16 Health LQ: 0.88 SOURCE: Jobs EQ 20 SOURCE: Jobs EQ Retail LQ: 1.04 Professional Svc LQ: 0.85 Education LQ: 0.92 $25 Consumer Svc LQ: 0.79 Competitive Advantage Threshold $15 -0.70 -0.50 -0.30 -0.10 20 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30 1.40 1.50 1.60 1.70 AVERAGE ANNUAL EMPLOYMENT FORECAST RATE(%) 2017Q2-2027Q2 1.80 1.90 2.00 2.10 COMMUTING PATTERNS Mean Commute Times 30 25.9 24 22 21.6 22.4 26 21.7 MINUTES 28 20 Weber County Ogden-Clearfield MSA Statewide United States Source: ACS 2011-2015 Weber County Draws Workforce From: Weber County Sends Workforce To: Weber County: 52,555 Weber County: 52,555 Davis County: 18,401 Salt Lake County: 19,660 Salt Lake County: 6,995 Davis County: 18,845 COST OF LIVING INDEX The Cost of Living Index estimates the relative price levels for consumer goods and services When applied to wages and salaries, the result is a measure of relative purchasing power The cost of living is 11.4% lower in Weber County than the U.S average Cost of Living Information Annual Average Salary Cost of Living Index (Base US) US Purchasing Power Weber County, Utah $39,960 88.6 $45,123 Utah $45,612 92.9 $49,096 USA $53,284 100.0 $53,284 Source: JobsEQ Data as of 2017Q2 Cost of Living per C2ER, data as of 2017q1, imputed by Chmura where necessary #WinningInWeber #WinningInWeber Weber County Commission Commissioner James Ebert Commissioner James H “Jim” Harvey Commissioner Kerry W Gibson 2018 Weber County Strategic Economic Development Plan STRATEGIC GOALS TO GUIDE ECONOMIC DEVELOPMENT IN WEBER COUNTY Building Prosperity Through Higher Incomes Attracting and Supporting High-Quality Job Creation Rising to Our Potential Ensuring a Dynamic Economy RECOMMENDATIONS TO ADVANCE Pursuing a Regional Approach to Economic Development Building a Brand and Marketing Strengths Enhancing Quality of Life Maximizing Real Estate Opportunities Strategically Advancing Infrastructure ... THE COVER View of the Wasatch Mountains in Weber County #WinningInWeber: Strategic Economic Development in Weber County Weber County is on the rise Our county possesses all the assets that make... Household Income by Year 63,158 Weber County 76,905 Davis County 68,665 Salt Lake County 80,000 WEBER COUNTY DAVIS COUNTY 70,000 SALT LAKE COUNTY 69,799 Utah County UTAH COUNTY 60,000 STATEWIDE AVERAGE... MINUTES 28 20 Weber County Ogden-Clearfield MSA Statewide United States Source: ACS 2011-2015 Weber County Draws Workforce From: Weber County Sends Workforce To: Weber County: 52,555 Weber County: