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Governor’s Office of Economic Development Data
2014 Annual Report and Business Resource Guide DATA
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Utah industries that were responsible for most of the private sector growth between 2007 and 2013 tracked closely with national growth metrics Figure 2 shows the five industries that account for the largest portions of GDP growth For Utah, growth in the manufacturing sector was responsible for 33 percent of private sector GDP growth between 2007 and 2013; the finance, insurance, real estate, rental and leasing industry was responsible for 18 percent of growth, and the professional and business services sector was responsible for 14 percent of growth
Economic growth between 2004 and 2007 in Utah exceeded the national average, increasing approximately 8 percent before the Great Recession Utah managed to maintain slightly positive growth in 2008, and since 2008, Utah has the sixth highest GDP growth rate in the nation at 5 4 percent
Cumulative Real GDP Growth, 2004-2013 Source: BEA, Regional Data, GDP & Personal Income, GDP by State (millions of current dollars)
Top 5 Industries Driving GDP Growth, 2007-2013 Source: BEA, Regional Data, GDP & Personal Income, Industry Totals (millions of current dollars)
Employment growth in Utah outpaced that of the United States both before and after the recession From 2004 to 2008 employment in Utah grew by 13 8 percent, compared to 4 5 percent nationally However, employment during the recession fell by a slightly larger amount in Utah compared to the national rate (-5 8 percent and -5 1 percent, respectively) Since 2010, Utah employment growth has outstripped national employment growth, 12 6 percent compared to 4 5 percent
According to PwC’s 2014 CEO survey, 62 percent of U S business leaders state that they are in a growth mode and are planning to hire more people this year This represents the highest level of headcount expansion in the past five years for the survey
Employment, Hours, and Earnings from the Current Employment Statistics survey (National) Source: US Bureau of Labor Statistics
Utah’s role in the international economy shows strong self-reliance relative to the U S economy overall Exports of merchandise to foreign countries in 2013 represented 11 4 percent of Utah GDP, compared to 9 5 percent nationally Merchandise imports represented 7 5 percent of Utah GDP, compared to 13 6 percent of U S GDP As of 2013, Utah’s merchandise exports exceed imports by 3 9 percent
Merchandise Imports and Exports as a Share of GDP, 2013 Source: tse.export.gov Utah 2013 Exports, NAICS total, All Merchandise from Utah; BEA Source: BEA, Regional Data, GDP & Personal Income, GDP by State (millions of current dollars)
Venture capital funding is attractive to entrepreneurs for several reasons, including the ability to attract a significant cash infusion and gain access to the expertise and contacts of the investors Nationally, in terms of dollars and awards, venture capital investment has rebounded compared to post-recession levels Utah initially lagged behind the national average throughout the recession However, unlike the national trend, Utah has seen surprising growth since 2010 By 2012, venture capital investment growth compared to 2009 figures had grown 80 percent and had surpassed the national average by more than 20 percent
Growth in Venture Capital Dollars, 2009 – 2013 Source: PwC Historic Trend data
Several of Utah’s industries receive significant percentages of the venture capital invested in Utah: the software segment collected 61 percent of total venture capital funding in 2013; medical devices and equipment collected 10 percent; and healthcare services received 9 percent
Venture Capital Dollars in Utah, by Industry, 2013 Source: PwC Historic Trend data
Utah shows strong performance above the national average and its peers in terms of both the venture capital funding as a share of the state economy and the growth in the number of deals since the end of the recession From 2009 to 2013, Utah saw a 79 percent increase in dollars invested with only a 3 percent increase in number of deals, signifying that deals since 2009 have significantly increased in dollar amount
Growth in Venture Capital Deals & Dollars, 2009-2013 Source: PwC Historic Trend data
Venture Capital Funds per per Million Dollars of Total GDP, 2009 and 2013
Source: PwC Historic Trend data; BEA State GDP data
Utah performs comparatively well with other states in terms of federal R&D funding it receives and its academic research in the science and engineering fields Utah ranks fourth among peer states shown in this graph in federal funding per employed worker and ranks third in terms of academic research in the science and engineering fields (see graph Academic Science and Engineering R&D per $1,000 of GDP).
Federal R&D Funding Relative to Workforce Source NSF.gov (http://www.nsf.gov/statistics/seind14/index.cfm/state-data/table.htm?table=41)
Utah ranks close to the national average in terms of its R&D investment relative to the size of its economy Compared with other states as shown in this figure, as of 2010, Utah ranks third behind Massachusetts and California
Research and Development as a Percent of State GDP, 2000, 2008, 2010 Source: NSF (http://www.nsf.gov/statistics/seind14/index.cfm/state-data/table.htm?table=40)
According to the National Science Foundation, approximately 80 percent of U S R&D is performed by the business sector Only 11 states exceed the national average for business-performed domestic R&D relative to private industry output Utah lagged behind the national average in 2009 but matched with the national average in 2011, the most recent year available
Business-Performed Domestic R&D per Private-Industry Output Source: NSF.gov (http://www.nsf.gov/statistics/seind14/index.cfm/state-data/table.htm?table=46)
Academic Science and Engineering R&D per $1,000 of GDP Source: NSF.gov (http://www.nsf.gov/statistics/seind14/index.cfm/state-data/table.htm?table=47)
Utah’s high self-employment rate illustrates its strong entrepreneurial spirit In 2012, approximately 23 percent of all employed Utahns owned their own businesses
Self-Employed Workers as a Percent of Total Work Force Source: BEA Total full-time and part-time employment by NAICS industry
