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THIS WEEK
Legal Matters Legal Matters Matters Legal DesignMatters Matters Legal UTAH’S BUSINESS JOURNAL StaffingMatters Matters Legal Executive Lifestyle Executive Lifestyle Legal Matters Aug. 22-28, 2011
Volume 41, Number 4
Bluffdale firm seeing strong growth in portable solar power
$1.44
Allied Electric Sign acquires Bona Signs for $1.5 million
Legal Matters Real Estate Matters Legal Matters Legal Matters Real Estate Matters See page 10.
Staffing Matters See page 11.
Focus Special
R e p ort
Travel
Begins on page 14.
By Brad Fullmer The Enterprise Allied Electric Sign & Awning Co., located at 1920 S. 900 W. in Salt Lake City, recently acquired Bona Signs of Springville, a 45-year-old sign company, for $1.5 million. “It was a good acquisition for us because we already operate in that market and we now have the facilities to de-bottleneck our business in central and southern Utah,” said Duane Millard, who started Allied in 1993 with the purchase of a small awning business, and later bought Northwest Sign and Lighting in North Salt Lake in 1999. Millard is chairman and majority owner of Allied. “It was difficult to buy property in the immediate area we’re located in Salt Lake; this certainly helps our footprint in serving the Intermountain area.” The purchase of Bona Signs includes a 12,500 square foot building, along with 2.75 acres
HR Matters Legal Matters StaffingMatters Matters Legal
Goal Zero's portable solar power generating devices have made a huge splash in the outdoor recreation market since its inception in 2009. Company revenues have soared from $100,000 in '09 to what is expected to be well over $10 million in 2011. (image courtesy Goal Zero) During his time in the Congo in By Brad Fullmer ‘07, Workman realized the great The Enterprise What started out as a human- need for power, since electricity itarian effort to help the people was scarce in most rural areas. of Congo in Africa become more Congolese people had cell phones, economically self-sufficient has but did not have convenient means blossomed into a multi-million to power them. He came up with dollar business specializing in an idea for inexpensive, portaportable solar power generating ble solar power and Goal Zero devices, mainly for the outdoor was launched with the aid of a Utah-based venture capital firm. recreation market. Bluffdale-based Goal Zero Workman and the VC firm are has seen gross revenues balloon virtual 50-50 partners. The company initially from a modest $100,000 in 2009 to what is conservatively project- launched with three products, ed to be well over $10 million in including the popular Escape 150 2011, according to company presi- kit, and now has more than 75 products, five of which debuted dent Joe Atkin. “Sales have been skyrocket- at the Summer Outdoor Retailers ing,” said Atkin, whose firm oper- Show in Salt Lake in early August. ates a 15,000 square foot office One of those items is the Extreme and warehouse at 14864 Pony 1250 Adventure Kit (retail price: Express Road in Bluffdale in addi- $1,999.95), a solar-powered altertion to warehouses in Salt Lake, native to a gas generator that can China and Germany. “We started deliver enough wattage to power a developing products in 2007 but small base camp (1,250 watt hours didn’t actually start selling until with a peak power of 1,500 watts – the equivalent of a wall outlet). 2009.” Goal Zero was founded by It will be available to consumers Lovell, Wyo., native and long-time in spring 2012. The name Goal Zero, accordUtah resident Robert Workman, who spent 30 years as a successful ing to Scott Sorensen, director of entrepreneur and owner of Provo consumer marketing, essentially Craft and Novelty Inc. (founded means “zero boundaries,” but the in 1976) before focusing his atten- company’s underlying mission is tion on a cause that would have to empower people to become greater impact on changing peo- independent and self-sufficient in ple’s lives. That led to Workman all aspects of their lives. Goal founding TIFIE Humanitarian in Zero’s portable solar powered 2007, which stands for Teaching devices allow people to be more Individuals and Families see GOAL ZERO page 4 Independence through Enterprise.
at 1852 N. Parkway Court, off exit 261 on the east side of I-15. Millard said Allied, which has 55 employees, will retain about a dozen Bona employees. Some of Allied’s local clients include Murdock Chevrolet, Chuck-a-Rama, Check City, Key Bank, Fresh Market and AT&T Wireless. In addition, Millard said the firm is doing all the electrical signs for the new City Creek Center in downtown Salt Lake. Annual company revenues are currently at $5 million. Despite the sluggish economy, Millard said his decision to purchase Bona is a sound investment. “Utah is better off than the rest of the U.S. economy,” said Millard. “If a company is reasonably well-run, you have a chance to be competitive. We’re doing OK. We had our worst year ever in 2009, and rebounded with our best year historically in 2010. There aren’t any unearned runs; see SIGN page 2
Real Estate Matters Legal Matters
Work begins on Lehi office building, 40 percent pre-leased
HR Matters Legal Matters Artist's rendering of Building I at Thanksgiving Park. Buildings II and III will be mirror images. buildings and should be ready for By Barbara Rattle occupancy a year from now, said The Enterprise Lehi-based Thanksgiving company principal Andrew Bybee. Development, undaunted by the A single tenant has pre-leased 40 recession, broke ground last week percent of the third building, but for the third office building in Bybee said he was prevented from its 38-acre Thanksgiving Park identifying the company until it development at 3300 Ashton Park makes its own announcement. Beecher Walker Architects Blvd., Lehi, and the building is designed the third building — already 40 percent pre-leased. The roughly 140,000 square two more are on the drawing foot Class A structure will be the board and will be constructed mirror image of the park’s first two see THANKSGIVING page 2
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Utah on the Rise By Chris Hipwell, president Associated Builders and Contractors, Utah Chapter
In this third exploratory series of the construction trades market we discover the opportunities that a career in carpentry can provide. This week’s column explores the career path of a carpenter who started out working in his father’s woodshop and has turned into a successful commercial framing company. Ron Peterson is president and owner of RJP Construction Inc., a commercial wood framing company licensed throughout the western United States. RJP currently employs 60 carpenters and a large office staff. Ron’s current focus within his company is primarily business development and day-to-day operations. •••••
Aug. 22-28, 2011
The Enterprise
Ron Peterson Owner/President RJP Construction Inc.
Why do you think training and education are important to the construction industry? I wouldn’t call myself an old-timer in the construction business by any means, but I find it very fascinating to watch the younger generation in the office and field. The younger employees, who hold degrees in construction management, are much faster learners, can navigate a computer with ease, and pay close attention to detail, etc. It seems that every year new legislation comes out that requires our staff to
attend training to understand compliance requirements. New and revised codes often require field staff to complete additional training to be the best they can in the field. Bottom line, if you’re going to be competitive and remain compliant, you better be educated. It is very important in today’s world for a construction management degree or training in skilled trades if you wish to succeed long term. With an ever changing industry, continuing education and workshops offer the chance to stay on top of your competitors and for employees to offer extra value to their employers. How did you get started in the industry? My father was a wood shop teacher for 37 years and taught many classes in construction. He passed on many of his talents of wood and construction to me. Growing up, I enjoyed being able to work outside and the construction industry gave me that opportunity. So after several years of working for a few companies, I borrowed $500 from my grandmother to become a licensed contractor. How has training, education and construction impacted your life? I work a lot in business development for my company. This has given me the opportunity to sit down with architects, engineers, estimators, etc., in the design phase of a project. With the additional training I have received I add technical knowledge for our scope of work along with design features that will allow the owner to achieve his goal while keeping his costs to a minimum. Those skills add value to an owner’s project. It makes a more rewarding career if you’re knowledgeable about your discipline and you continue to develop and grow your craft. see ON THE RISE page 12
THANKSGIVING from page 1
as demand dictates — while Big-D Construction is the general contractor. Cost per square foot is $24.50, full service. The first building in the project is 92 percent leased, while the second — which will be ready for tenants in October — is 90 percent leased, Bybee said. Notable tenants in Building II will include Sirsi Dynix, AtTask and Zija. Bybee said he is in the middle of cutting a financing deal for Building III. “We’re getting a lot of attention from all the major banks — Zions, Bank of America, Wells Fargo, JP Morgan. We’ve got great relationships with specifically Wells Fargo and Bank of America as far as construction financing goes,” he said. “They’ve done a lot of our buildings so they kind of know our MO. They know we’re a pretty conservative group, we’re not going to pull the trigger on it unless we’re really ready to take on the challenge.” Bybee attributed the success of Thanksgiving Park to several things. “You can’t underestimate the factor of just being fortunate,”
he said. “Number two, I think, is definitely the location. Tenants have decided that they want to be in north Utah County and they want to be able to recruit from both counties. I think the critical mass of tech companies has also kind of brought a lot of the upand-coming tech companies north. There is a lot of tech here but we’re not solely weighted tech. I think north Utah County will eventually become known kind of as Tech Central. As you start to see the techs come, you’ll start to see the law firms follow them. The big firms want to be the middle of the fray and be close enough to serve a million and a half square feet of tech companies eventually. By the time you put in Adobe and Microsoft, the buildings across the way from us, you’ve got close to two million total square feet of office that will be sitting in this corridor in just the next couple of years once we finish ours and Adobe finishes theirs.” When complete, Thanksgiving Park will consist of five buildings totaling roughly 710,000 square feet and about 30,000 square feet of retail. Tenants in the first building include Vucci, Agel, Sorenson Capital, Propay, Private Capital Group and Microsoft.
SIGN
from page 1 we have to be very serious about what we do. If we don’t pay attention we could lose a lot of money fast. We have significant overhead, a lot of equipment, employees and land. But we’re moving forward.” The acquisition of Bona was partly financed with a business loan from Zions Bank.
THE ENTERPRISE [USPS 891-300] Published weekly by Enterprise Newspaper Group Inc. 825 N. 300 W., Suite C309, Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 Web site: www.slenterprise.com. For advertising inquiries, e-mail david@slenterprise. com. To contact the newsroom, e-mail barbara@ slenterprise.com. Subscriptions are $55 per year for online only, $65 per year for print only and $75 per year for both the print and online versions. or $1.25 per copy. Opinions expressed by columnists are not necessarily the opinion or policy of The Enterprise Copyright 2011 Enterprise Newspaper Group Inc. All rights reserved Periodicals postage paid at Salt Lake City, UT 84199. POSTMASTER: Send address corrections to P.O. Box 11778, Downtown Station, Salt Lake City, UT 84147
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Aug. 22-28, 2011
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GOAL ZERO from page 1
free to travel and experience life without worrying about access to electricity for their cell phones, iPods or laptop computers. “This is a company that has a goal of having people be selfsustainable,” said Sorensen. “Zero emissions is also a goal, but we want to do whatever we can to help people be self-sustainable.” Goal Zero’s growth has been nothing short of phenomenal. Sales surged from $100,000 in ’09 to $1 million in ’10, and are expected to soar well beyond $10 million in ’11. Atkin and Sorensen said they expect revenues to continue on a similar growth pattern in 2012 and beyond. It’s feasible that the company could generate more than $100 million in gross revenues in the next three to four years. “That’s the goal,” said Sorensen. “With some of the things we’ve announced like bigger power supply items (Extreme 1250) that can run a full-size refrigerator or power a cabin, the possibilities are endless. Every trailer could have Goal Zero power, every cabin off the grid. The model works great in the U.S. but the real potential is overseas. We have cheap electricity in the U.S., especially in Utah. Everywhere else power is expensive and it’s not dependable.”
The Enterprise Strong sales can also be partly attributed to the recession, with more and more people opting for “stay-cations” – camping, hiking and boating excursions within a short distance from home – vs. packing the family up and heading to Disneyworld for a week of hotel stays and fancy restaurant dining. Atkin agrees, but adds that if Goal Zero wasn’t a useful, practical, enticing product, the company would not have near the success they’ve experienced. “In some ways I think our industry is recession proof, because of the increase of ‘stay-cations’ and other factors,” he said. “But boring products that have limited application for customers are probably seeing ‘bad’ sales. Our products are definitely revolutionary. We’re actively creating a new market, so we are listening intensely to our customers and aggressively developing new products to meet their needs.” The company sells its products online and at its Bluffdale headquarters. In addition, they can be found in many corporate outdoor recreation chains like REI, Sportsman’s Warehouse, Cabela’s and Bass Pro Shops. Goal Zero manufactures all of its products at its Chinese facility in Shenzhen, a major city in the south of Southern China’s Guangdong Province, just north of Hong Kong. The firm buys
raw solar cells (also produced in China) and customizes them for each product line. “This gives us a huge benefit because we can control the process, which allows us to innovate new products very quickly,” said Atkin. The cost of solar cells has dropped significantly the past couple of years, making Goal Zero’s products even more affordable to its consumers. “The solar industry is improving in many ways,” said Atkin. “There will always be innovation in the efficiency of solar panels. Solar prices have decreased dramatically and that is a key driver into the way customers are now able to use solar panels to charge mobile devices. In the past, a solar solution would simply have been too expensive. For example, our Nomad 7 solar panel can be purchased for as low as $79 today, but this same amount of solar would have cost $200-$300 a couple of years ago.” The firm’s growth is also illustrated by its employee numbers. Sorensen said he was the 14th employee hired in April 2010; the firm currently has 52 employees, an increase of nearly 300 percent in just 16 months. He imagines the need for more sales and customer service representatives in the near future, based on revenue projections.
Aug. 22-28, 2011
Backcountry.com triples size of WVC call center By Barbara Rattle The Enterprise Backcountry.com, a Park City-based retailer of specialty outdoor gear, has tripled the size of its West Valley City call center. Formerly located in about 5,000 square feet within the firm’s West Valley City distribution center at 2607 S. 3200 W., the call center is now situated in a little over 15,000 square feet at 2607 Decker Lake Blvd. “As a call center and as a company, we’ve been growing pretty rapidly year over year and our location no longer suited our people,” said Mike Sherwood, senior manager of customer solutions. Bob Bethke, director of financial operations, said the new location should meet the firm’s call center needs for at least the next three to five years. While roughly 150 employees, dubbed “gear heads,” currently staff the center, that number should soon rise to about 300 as the company’s high season begins. He noted the company has formed a very close relationship with West Valley City. “They’ve partnered with us very well and reached out to us to be sure that we stick around,” he said. “They value us as a business
within the community.” Virtually all of the calls fielded at the center are incoming; about 25 percent result in a sale, 60 percent involve questions about products and the balance involve servicing existing orders. Backcountry operates nine brands — backcountry.com, dogfunk.com, hucknroll.com, realcyclist.com, steepandcheap. com, whiskeymilitia.com, chainlove.com, bonktown.com and departmentofgoods.com. Liberty Media acquired Backcountry.com in 2007. The firm leased its new call center space with the assistance of Kyle McLaughlin and Chris Kirk of Commerce Real Estate Solutions.
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SLC-based Metcom Studios thriving in new state-of-the-art facility By Brad Fullmer The Enterprise Salt Lake City-based Metcom Studios, formerly Metropolis Integrated Media, has undergone a significant transformation since moving into its new state-of-theart $4.5 million facility in January 2011. Located at 352 S. 500 E., the 16,000 square foot building features myriad unique design elements, from curved walls and hallways to modern light fixtures, exposed ceilings and high-tech video and audio rooms. “It’s just an incredible building for us,” said company president Brent Marshall, 62, a longtime local radio-production veteran who founded Metropolis along with partner John-David Brewer, 43, executive vice president of creative, in 1998 at 445 S. 300 E. in Salt Lake. “I don’t know of another post-production facility of this size between Denver and L.A.; not many are being built brand new or are this nice. We put a lot of time, effort and money into making sure we got exactly what we wanted.” The building is nearly double the size of Metcom’s previous 9,500 square foot location and has four audio control booths, three video edit bays, two recording studios and a 1,600 square foot film/sound stage. Other ancillary rooms include a spacious kitchen and break area, offices, and a stylish conference room with a modern-retro light fixture highlighted with old power pole glass insulators. Sensitive sound attenuation requirements prompted the need for double walls with special acoustic and isolation materials – including mass-loaded vinyl – between certain rooms. Each room has a unique name: audio control rooms are named for gasses (radon, argon, krypton, xenon); video edit bays are named for met-
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The Enterprise
Aug. 22-28, 2011
Brent Marshall (left) and John-David Brewer founded Metcom in Salt Lake City in 1998. als (mercury, cobalt, tungsten); and recording studios are named for parts of the atom (electron, neutron). The move to the new facility wasn’t something Marshall and Brewer intended to happen – it was necessitated when Salt Lake City unveiled plans for a new Public Safety Complex in the very spot where Metropolis was located, just east of the Salt Lake Public Library. City officials could have exercised a legal “eminent domain” statute, but didn’t have to since Marshall was able to negotiate an equitable agreement to sell the property to the city, a deal he said was “extremely fair” for both parties. Marshall and Brewer realized it was a golden opportunity to reinvent their firm with a new building, logo, additional services and overall brand. “It was a pretty gutsy move,” said Marshall, the sole owner of the building. “We really didn’t [have a choice], but went way beyond the ordinary to create a truly unique studio. I have a lot of faith and vision that there is business out there – you just have to find it. You have to get outside of your own market sometimes and
find different opportunities and that’s what we’re doing.” The project was funded from money from the sale of the firm’s old building to the city, a business loan from Wells Fargo Bank and a sizable amount of money from Marshall’s own pocket. In addition, the firm invested more than $300,000 into new equipment and décor items, including computers, microphones, audio-mixing consoles, software and furniture. So far, the results have been extraordinary. Metcom has picked up some large national corporate clients and expects revenues to grow by more than 10 percent this year, to approximately $4 million. Marshall and Brewer envision continued annual growth of at least 10 percent. “We had an opportunity to rebrand ourselves and separate ourselves from what Metropolis used to be,” said Brewer, who ran Franklin Covey’s video production department for seven years before hooking up with Marshall in the late ‘90s. “We want to be more of a leader in media development from a communications or agensee METCOM page 6
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Direct mail firm, expecting $6 million in sales, relocates By Barbara Rattle The Enterprise Nutshell Marketing, a company that creates, prints and mails direct mail advertising largely for the hearing aid industry, moved Aug. 19 from 4847 Westridge Blvd., West Valley City, to roughly 19,000 square feet at 2550 S. 2300 W. Company founder Tim Peterson said the firm, founded in 2003, was forced out of its former location by its owner, the Utah Department of Transportation, which needs the space to support new freeway construction in the area. Thirty employees made the move to the new quarters — about the same size as its previous location — which Peterson said will result in a significant investment by his company, which is on track to gross $6 million this year. “We’re going from $4,500 to $7,500 a month rent, and I’ll be noticing that, but it’s a lot nicer space, better laid out, and a stone’s throw from the post office, which is important,” he said. Peterson, who said he had been a janitor all his life, formed Nutshell Marketing after a failed business venture left him with virtually nothing. Then another family member recruited him to design some direct mail promotions, and the business blossomed from there. “Every year we’ve grown
between 30 and 50 percent,” he said. “We’re up 35 percent this year over last year, when we did $4.5 million.” The business was launched in Peterson’s basement and grossed $170,000 the first year. That number steadily rose, he said, to $360,000, then $720,000, then $1.4 million and $3.8 million. “It’s been one of those businesses where we were in the right time and provided a good service, so we do it nationwide. It’s been an amazing experience; all of my kids work in the business and a bunch of friends and family. Every day you wonder if today’s the day you’re going to go broke and lose it all, but so far so good.” He said Nutshell provides direct mail services for major hearing aid manufacturers worldwide as well as individual companies. “If you’re over 60 and live in the United States, you’ve gotten mailings from us,” he said. Nutshell leased its new location with the assistance of Bob and Josh Mills of Commerce Real Estate Solutions.
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METCOM
Scott A. Newman Business Skills Program Director LDS Business College
from page 5
cy-like perspective. I wouldn’t say we’re trying to be an ad agency, but as ad agencies are doing more of what we do, we’re doing more of what they do. Our clients come to us with not just a video or audio project, but an entire communication problem they need solved.” “There was a time we produced a lot of audio and video work in the advertising field; we have essentially flip-flopped,” Marshall added. “Now, 85 percent of our work is corporate and a lower percentage is advertising work. Our market has changed, too. There were several other postproduction companies in Salt Lake that were servicing large media advertising companies, but most are gone. There are certainly other production companies that edit video and do audio recording, but there is nothing like Metcom.” “Our most profitable projects are those we produce ourselves from script to finish, but every little piece goes into the pie, so it’s all good for us,” he added. “It’s a signature company for the Utah film and video industry,” said Marshall Moore, director of the Utah Film Commission. “Losing Metcom would have been a big deal to the film and TV community in the state because the services they provide are unique to the area. This new facility will open doors to new relationships based on the opportunities that exist there. I toured the facility a couple months ago and was impressed with the layout, design, and quality of equipment they
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Aug. 22-28, 2011 have. What they offer to the state and the city of Salt Lake keeps us competitive in this market.” Metcom is a full-service production firm that offers an array of audio and video production services – corporate bio videos, infomercials, TV and radio commercials, integrated voice response (IVR), telephony voice-over, and music recording, among others. Metcom also leases space to outside firms like Voices Online Now (of which Marshall is part-owner) and Too Many Legs Animation Studios. Metcom has 12 full-time and six part-time employees – four of whom have been hired since January – including directors, editors, engineers, producers, writers and artists. The firm has done work for corporate clients such as Chevron, Disney, General Electric Imaging and Microsoft’s Tellme Networks. Metcom has done promotional product videos recently for large MLM clients like Tahitian Noni in Provo, Melaleuca in Idaho Falls and Forever Living Products (FLP) in Scottsdale. “Larger clients are more difficult to get but when you land them it’s a good thing,” said Marshall. “We’re looking for clients that have bigger budgets and more media needs.” Brewer recently returned from an assignment for FLP, a whirlwind, 32-day global jaunt that took him and a cameraman to nine different countries, including Great Britain, France, Hungary, Nigeria, Mexico and Japan. Metcom is wrapping up
production on 13 different 2.5- to 4.5-minute videos that chronicle the lives of various FLP distributors. The trip included being escorted by guards with AK-47 rifles in Nigeria to being pulled over by a corrupt cop in Mexico City who was going to impound their vehicle for what Brewer said was allegedly an incorrect turn. They ended up giving the cop a 2,000-peso “bribe” (about $200) in return for their freedom. “It was definitely a once-ina-lifetime experience,” he said of the cross-continent venture. FLP director of marketing Paul Muehlmann said he had worked with Marshall and Brewer in the past, but looked long and hard at several larger studios before choosing Metcom. “We wanted to put a face on Forever, not just this massive $3 billion MLM; there was a particular look I was going after and they delivered,” said Muehlmann, a project he estimated cost in excess of a quarter million dollars. “Half the people we did videos on didn’t even speak English, so they’ve dealt with a lot. There are other studios bigger than Metcom, but their combination of price and what they’re capable of…most studios would not have been able to do this much volume in a short period of time.” Metcom Studios was designed by Salt Lake-based HKG Architects; Duane Marsala Construction Inc. of South Jordan was the general contractor.
Bountiful City to invest $2.5 mil. in power upgrade Bountiful City Light and Power is in the process of finalizing construction bids on the Phase II building portion of an overall $25 million upgrade to its power plant, according to director Alan Johnson. “It’s going to give us a more reliable power source in the future and gives us additional flexibility to match what our load is,” said Johnson. “There is a definite economic benefit to the city, and will give us more reliability and less losses of power.” Johnson said Bountiful City L&P is replacing turbines that were installed in the 1950s with two new state-of-the-art Solar brand 12 MW natural gas fired
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turbines that are being manufactured in San Diego. The turbines have a total cost of $15 million. The Phase II building portion is approximately $3.5 million to $4 million, which includes the structure that will house the turbines, along with associated wiring and interfacing. The Phase II building is a 9,200 square foot clay masonry structure with Atlas brick, a steel joist and deck system and includes complex wiring, filtration and ventilation systems. It was designed by Chris Layton & Associates of Salt Lake City; ICPE of Salt Lake is providing engineering consultation and design. The general contractor will be selected from a pool of seven contractors at the Bountiful City Council meeting Aug. 23. Grant Mackay Co. of Salt Lake is providing demolition services for the old building. Construction of Phase II will begin in mid-September following demolition procedures. Interwest Construction of North Salt Lake completed the $1.6 million Phase I portion of this project earlier this year.
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The Enterprise
Aug. 22-28, 2011
Industrial equipment firm investing $1.4 mil. in Farmington expansion By Brad Fullmer The Enterprise Farmington-based Quantronix, a manufacturer of high-tech industrial sensing equipment, has selected E.K. Bailey Construction of Ogden to build a new $1.4 million, 18,184 square foot facility adjacent to the company’s headquarters, according to president Clark Skeen. “This will allow us to expand our manufacturing operations, improve our R&D efforts as well as services and support,” said Skeen. “We needed the space. It will accommodate our future growth.” Skeen said the firm currently leases a 12,000 square foot facility in North Salt Lake. The new building will help improve overall efficiency and productivity. The new building, designed by Dixon + Associates of Salt Lake, will be block masonry building with space for manufacturing, R&D, offices and other support facilities. The project is expected to break ground in September and be completed in spring 2012. Quantronix was founded in 1987 in Farmington. Skeen was the second full-time employee and
one of nine owners who bought out the founder in 2000. The firm manufactures its patented CubiScan dimensioning system, which is designed to accurately measure and weigh stationary items in distribution warehouses or freight handling operations. Skeen said approximately 90 to 95 percent of company revenues come from businesses outside of Utah. Clients include shipping giants like UPS, FedEx and DHL, along with firms with large distribution warehouses such as Walmart and L.L. Bean. The firm currently employs 24 full-time people and intends to hire two more in the next couple of months. “The company is investing in its future,” said Skeen. “We had options to lease additional space at very attractive lease rates, but felt that consolidating to an adjacent property would help us realize greater long-term efficiency and cost-savings.” Construction of the new building is being financed with the assistance of Mountain America Credit Union. Quantronix’s revenues were up 25 percent in July from the same time last year.
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Corner Bakery Cafe coming to Draper
The Dallas-based Corner Bakery Cafe national restaurant chain is coming to Draper. Cornerstone Foods LLC, which operates Corner Bakeries in Salt Lake City and Murray, in addition to Blimpie’s franchises in Utah and Idaho, has leased roughly 4,100 square feet at Draper Crossing, 269 E. 12300 S., where is plans to open in February, said Ron Bagley, a Cornerstone principal. The Draper location will be situated in a building formerly occupied by Hollywood Video. Cornerstone opened its first Corner Bakery Cafe in Utah in January of 2010 near Research Park in Salt Lake City. It was followed in April of that year by a unit at Fashion Place Mall. “It’s been very good here in Utah; we’re excited about how well it’s been received, surprised at how many people have been in some other areas of the country where Corner Bakery Cafe operates, like Chicago and Dallas and Southern California,” Bagley said. As was the case with the other two locations, promotion will involve some print advertising and direct mail, but the firm raises awareness of itself largely through participating in community events. Bagley said a site for a fourth Salt Lake County location is being
sought; that store should open next year. Cornerstone Bakery, which has franchise rights for all of Utah, has committed to opening eight total Utah locations. Established in 1991, Corner Bakery Cafes feature seasonal menu options ranging from made-to-order hot breakfasts and signature panini to handcrafted salads, sandwiches and sweets. In addition to dine-in and to-go service, the firm offers catering. Cornerstone leased its Draper space with the assistance of Cody Felts, Steve Bowler, Rich Robins and the Moore Team at CBC Retail.
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deserve some perks. That’s why The Gateway, FM100 and The Enterprise have created and exclusive “Office Worker At Work Perk Card” for all of you hardworking people. (Fill out your At Work Perk Card application at The Gateway Concierge desk.) Flash your card and get savings and discounts at participating shops and restaurants at The Gateway. Just keep your card in your wallet and look for special deals throughout The Gateway. FM100 will be e-mailing you ever Monday with the “Perks of the Week.” Log on to www.fm100.com or check out The Enterprise for the most up to date list of specials. Turn in your completed form to The Gateway Concierge, located across from Urban Outfitters or to any participating retailer to be eligible for monthly drawings.
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E-mail still rules — are you connecting or being deleted?
The Enterprise
If your e-mails are getting deleted or good grammar until I have established not getting returned, or you’re playing a relationship. I’m more friendly than a numbers game (sending 1,000, hoping formal in my content, and I’m always for a few random responses), you’re myself. Same with humor; I don’t inject probably also blaming the recipient or the it until I’m certain the recipient of my e-mail has some (humor). And when Internet for the lack of response. Wake up and smell the dictionary! It I do, it’s HUMOR – not jokes and not cartoons. ain’t them. E-mails are to introduce, engage, ask a And, did I mention, it’s an e-mail, not question, give an idea or an answer, create a sales pitch. opportunity, make an appointment, If you’re writing an INITIAL confirm a meeting. E-mails are for e-mail, make your name sending a message, a thank you, a clickable to something that will reminder or a brief offer. E-mails build credibility, such as your are NOT a sales pitch. blog, your business Facebook But you’re the smartest guy or page or your LinkedIn profile. gal in the world, and you want If you’re using e-mail as a to hurry up and make more sales FOLLOW-UP to a promise you this week and you have a list of made (like a quote, proposal or prospects so why not blah, blah, answering a question), attach Jeffrey blah … and get deleted. a PDF and keep the body of Gitomer NOTE WELL: Deleted e-mails the message short, sweet and also create negative thoughts and friendly. images in the mind of the recipient. They If you’re connecting with an afterbrand you and they create reputation. If the-sale FOLLOW-THROUGH, ask for you’re getting a 9 percent response, it a coffee meeting or a brief phone call. means 91 percent of the people you sent Mention anything that you share common the e-mail to are somewhere between ground on (sports, kids, interests). I often annoyed and pissed off. attach a relatable photo. I’m about to share the essence of There are lots of other e-mail uses. what will get your e-mail opened and A business message, an announcement, responded to: writing. Creative writing. a service message, a casual message to Engaging, creative writing that leads the stay in touch and build a relationship. recipient to read and respond. Whatever the message is, make certain But, before I begin, here’s why most the content has VALUE FOR THE e-mails fail: you know little or nothing RECIPIENT. about the recipient. And worse, you I would be remiss if I didn’t include struggle to create some snappy “subject the mysterious “how to write a subject line.” My subject line on an initial e-mail line” so your e-mail will be opened. Here are a few ideas on how to write an is, “from Jeffrey Gitomer.” Subject lines INITIAL e-mail, a FOLLOW-UP e-mail, should be simple but intriguing. For a FOLLOW-THROUGH e-mail, and all example: “productivity leads to profit” sorts of relationship-building e-mails. or “maximum production leads to maxi • Start prepared. Before you write a mum profit.” Or you can use one word word, Google the recipient and then do a that might impact the recipient, such as complete social media search (Facebook, profit, idea or message. It helps if you LinkedIn, Twitter and YouTube). Now understand who you are trying to conyou’re ready with information they may nect with. (See above under START pay attention to — information about PREPARED.) THEM. Engaging them, about them, If you’re serious about wanting to send is more likely to gain response than impressive e-mails, www.aceofsales. com offers the only customized engaging them about you. NOTE FROM 1937: See Dale e-mail alternative. Take a look. It will Carnegie’s How to Win Friends and immediately brand you, differentiate you Influence People and keep this still- from all other look-alike e-mails, and applicable quote in mind: “You can make WOW! the recipient. If you want to see more friends in two months by becoming a few samples, go to www.gitomer.com more interested in other people than you and enter ACE EMAILS in the GitBit can in two years by trying to get people box. If you’re tired of your e-mails getting interested in you.” • Make it short. I’m way too busy deleted or you’re frustrated because your to read your life story, or why you’re e-mails aren’t being responded to, DO great, or why your product is great. I’ve SOMETHING ABOUT IT. got mother Google for that — and for information on you! Here’s the SECRET: Word count. Jeffrey Gitomer is the author of Social Copy your message into a word- BOOM!, The Little Red Book of Selling and The Little Gold Book of YES! Attitude. processing program to check the word President of Charlotte, N.C.-based Buy count. Two hundred words is a long Gitomer, he gives seminars, runs annual e-mail. Remember: the shorter the better. sales meetings and conducts Internet • Make the message germane to training programs on selling and cusyour expected outcome. I usually ask tomer service at www.trainone.com. He a question or two, make a statement can be reached at (704_ 333-1112 or or two and end with: Best Regards, salesman@gitomer.com. © 2011 All Rights Reserved Jeffrey. I’ll use formal capital letters and
Aug. 22-28, 2011
Per inquiry advertising — it worked before, it can again I suggest your first effort be to expand In my last column I talked about the good old days of per inquiry advertising and your existing, successful, direct response predicted a resurgence of the practice among advertising campaign to media that you otherwise couldn’t or wouldn’t afford, because it the traditional media. I also said the practice has always been may be slightly out of your main target market with us, although few have been aware of it or simply an unknown commodity for you, or perhaps a medium that you’ve used before for the last 40 years or so. But you have seen or heard per inquiry unsuccessfully. Approach them with your already sucads, I promise. Many magazines run per inquiry advertising, and some of them are cessful ad and ask them to run it on a per inquiry basis, only in times or spaces that they more prominent than you might think. simply haven’t sold. Nobody has For example, there are in-flight anything to lose in this scenario. A magazines that run per inquiry ads. publication, station or program that There are trade publications and speyou tried before but wasn’t profitcial-interest magazines that do as well. able may be so, if you only have to Perhaps the most remarkable pay for results. example of per inquiry advertising was You can use the same techexecuted by my friend and mentor, nique to expand geographically, or Jay Abraham. You’re familiar with the to test new markets. analgesic balm, Icy Hot, right? At one There is a hybrid between point the company had gone bankrupt, but Jay started a per inquiry radio Jim Ackerman pure time and space advertising and per inquiry that I have used myself, campaign all across the country, where he paid the radio stations the entire revenue quite successfully, and which, once it comes generated from a sale of the product. Why? into vogue, I believe will become a standard Because of the re-orders and back-end sales he way to buy media. First, determine what you are currently was able to generate from those initial orders. He paid millions to radio stations nationwide, paying for a lead or a sale. Once you have that made millions for himself, saved the company, number, go to the medium and say, “I don’t ultimately sold it and, as a result, you enjoy pay for advertising, I pay for results. I pay $50 a lead and I want to buy 20 leads from you. the pain-relieving benefits of Icy Hot today. Magazines and newspapers print their Here is $1,000.” Now here is the catch. The medium can pages in groups known as signatures, typically in multiples of four (four pages to a signature, run the ad or ads, anywhere and anytime they or eight or 16). The publications must com- want. They can run the ad as little or as much mit to a certain number of pages to plan their as they want. You don’t care. You’re only conbook, buy their paper and ink, etc. If some of cerned with hitting your cost per lead or sale that inventory goes unsold, they have only goal. Twenty leads (or sales) for $1,000, or 50 a couple of options. They can fill the empty bones each. If the medium hits that number, you give spaces with editorial copy, they can “fire sale” the remnant space at dramatic discounts, or them another $1,000 and play the game again. they can allow per inquiry ads. (They may also If they don’t, you and your media rep are at a crossroads. They either agree to continue runtrade ad space for other goods and services.) Any option where there is at least some ning your ad for FREE until you reach your potential for revenue is preferable to non- per lead/sale goal, or you’re done doing busirevenue-generating editorial, so remnant sales ness with them. Simple as that. These deals are tough to find among are common, often sold at 50 percent off rate card. If they can’t unload it that way, they will the most successful media. Why do it when sometimes — and I predict increasingly – they’re selling out of their inventory at full price? But as you work your way down to entertain the per inquiry option. Radio and TV have a similar challenge. the less prominent publications, stations and Time is a self-liquidating commodity. Once it programs, the willingness to do this kind of passes it’s gone forever, and if they don’t sell thing goes up. And with the way audiences it, its revenue-generating opportunity evapo- are flocking to the Internet and away from the rates into the cosmos. In the case of broadcast, traditional media, these opportunities should they fill empty commercial spots with PSAs be more and more available. Truth is, it only makes sense. If you buy a (public service announcements), but believe me, they’d rather get something for the time product that doesn’t perform, you take it back. The media has for decades stood alone as the than nothing. If they are to entertain a per inquiry pro- only business that gets paid even when it fails. posal, they’ll want certain conditions. They’ll Per inquiry advertising or the hybrid sister I’ve want you to use an ad that has a track record suggested make more “cents” for your busiof success, if possible. They’ll also want a ness, and ultimately may be the salvation of substantial cut of the action if you’re selling deserving media. something, or a meaningful payment if you’re just generating a lead. They’re also likely to Jim Ackerman is a Salt Lake City-based marinsist on a verifiable way to track responses, to keting speaker, marketing coach, author and which both parties have access. Sorry, they’re ad writer. For his speaking services go to www.marketingspeakerjimackerman.com or not likely to just take your word for it. That means either a separate landing contact him directly at mail@ascendmarketpage when you’re driving people to a website, ing.com. Subscribe to his VLOGS at www. a separate phone number when you’re getting YouTube.com/MarketingSpeakerJimA, where them to call, or a third-party telemarketing you get a video marketing tip of the day, and at or fulfillment shop to which you grant your www.YouTube.com/GoodBadnUglyAds, where media partner access to your records. All per- Ackerman does a weekly ad critique and lets you do the same. fectly fair and understandable. ©2011, Jim Ackerman But how can you use per inquiry adverAll Rights Reserved tising?
9
The Enterprise
Aug. 22-28, 2011
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Aug. 22-28, 2011
The Enterprise
Real Estate Matters Legal Matters Advantages in Utah’s market should pull the state through an unreliable real estate cycle NAI West, the No. 1 leader in Utah’s commercial real estate market, released its 2011 midyear report detailing the highs and lows of the Utah commercial real estate market. Evaluating data that includes vacancy, absorption, lease rates and other market indicators, the report notes key indicators in 2011 that have had an effect on Utah’s commercial real estate. First, the number of firms looking to relocate to or expand in Utah continues to be steady with Utah ranked in the top third in the nation for the lowest unemployment rate at 7.3 percent, compared to a national average of 9.2 percent. These factors continue to drive businesses to the state hoping to find good locations and trained employees. “Utah’s economy, as a whole, continues to outperform other markets in the nation and remains one of the most fundamentally sound economies in the country,” said Gary Mangum, NAI West principal broker and managing director. Recently, Forbes magazine
www.naiglobal.com
HR Matters Legal Matters
ranked Utah the No. 1 Best State for Business and Careers, while CNBC ranked Utah eighth for the Best State for Doing Business in 2011. Fortune magazine listed Salt Lake City as one of the world’s 15 “hottest” cities for business and the state ranked No. 1 for economic outlook in the ALECLaffer Economic Competitiveness Index. In the industrial market, the Salt Lake Valley continues to outperform most of its national counterparts. As of midyear 2011, the vacancy rate rose slightly to 6.16 percent. New construction in Salt Lake is as active as it was prior to the downturn in the economy, with 12 buildings containing approximately two million square feet currently under construction. Six of these buildings are being built on a speculative basis and make up almost 75 percent of the new build square footage. “The total number of transactions is up significantly from midyear 2010, translating into the most transactions completed in over three years,” Mangum says.
801.746.4700
“For the industrial market, steady growth and overall health is projected for the foreseeable future, barring any seismic shifts or catastrophic events in the economy.” In regard to office space in Salt Lake County, there is a reasonable level of activity in terms of tenants and buyers looking for space, but the midyear numbers do not reflect improvement in the market overall. Average asking lease rates for office space have made an inconsequential improvement from $19.46 to $19.62. Vacancy rates have gone up from 13.17 percent at year end 2010 to 13.89 percent. Class B space in Salt Lake County seems to be the most obvious target of the continued economic stagnation. Vacancy rates for class B space, now nearing 18.5 percent, have climbed upward since the fourth quarter of 2009 when it hovered around 16 percent. Additionally, owner/user sales have been strong, perhaps in part driven by reduced asking prices from 2008 levels. At this
point in time, a rapid improvement in the office market is not expected. A consensus is building among retail industry experts that the bottom of the retail commercial real estate downturn has occurred along the Wasatch Front and is now trending upward, albeit at a relatively anemic pace. The threat of a lethargic rebound, or even a double dip downturn, still remains, but many market fundamentals indicate that markets have rebounded and are strengthening. “Retail investment sales are red hot with year-over-year transactions up 80 percent and CAP rates stabilizing,” Mangum says. “In particular, well-located grocery anchored and single-tenant NNN investments are approaching CAP rate levels not seen since 2006-2009.” Midyear 2011 numbers show a healthy increase in dollar volumes across the board and the highest since midyear 2008. These positive signs show that investor interest is strong and they are seeking to find quality deals
and value-added properties. Sales data reflects that core Class A assets are in demand for all property types as is the competition for note purchases and deeply discounted properties. Class B and C assets have yet to recover and sales remain sluggish. Investment sales volume is only restrained by the lack of quality product. “The market will continue to see more of the same: a long slow trend upward,” Mangum says. “Demand for quality deals will continue to push pricing and hopefully result in more assets coming to the market. Other investment assets will continue to flounder with sales few and far between.” As for land sales, activity has reached its lowest point in the decade. Sales volumes for unimproved and improved land are just 10 percent of the peak in 2007 and about half of what they were this time last year. This reduction is due primarily to lackluster home sales which has curbed the appetite of home builders for more lot see REAL ESTATE page 12
11
The Enterprise
Aug. 22-28, 2011
StaffingMatters Matters Legal Five ways to be a great coworker Don’t let your phone ring off the hook while you’re away from its that are distracting, irritating your desk; instead, set it go to or just plain annoying. If you’re voicemail or forward to your looking to improve your career cell phone. Your coworkers will and your day-to-day work thank you! relations, what are the No smelly easiest ways to make sure business. You may you’re not one of those love your spicy curry people? shrimp leftovers, and Listen up. One of we’re sure they’re the worst habits to wreak delicious, but strong havoc in offices is lack Ron Zarbock smells bother many of communication. Since people at the office. most of communication can be If you heat it up, eat it in the all about listening well, take the break room, not at your desk. time to really listen to people. The same goes for perfume or Listening rather than interrupt- scented lotions, which can give ing can save time and stress for some people searing headaches everyone. or other allergy issues. Keep Manage the noise. You may smells and scents at home. not think you’re loud, but chanc- Respect boundaries. While es are good that your coworkers cubicles may not seem private, might. If you schedule a meet- personal space is important to ing, reserve a conference room everyone. Before you enter a and close the door. If you have coworker’s space, knock and a conference call, use a headset ask to come in. Don’t stare at instead of the speaker phone. people’s computer screens or Every office seems to be filled with people who have hab-
comment on phone calls you’ve overhead. While privacy is often more of an illusion in an office than a reality, it’s an illusion that people treasure, and it’s important to help maintain it. Be considerate. When in doubt, this is the golden rule of office life. If you’re not sure how to behave, then think about how you would prefer to be treated. Start asking yourself a few times a day whether you might be doing anything to distract a coworker. Do your best to acknowledge boundaries and be respectful, and you’ll be a dream coworker in no time.
Real Estate Matters Legal Matters HR Matters Legal Matters Ron Zarbock is the area owner and manager for Spherion Staffing and Recruiting and Today’s in Utah, with several locations along the Wasatch Front. Zarbock has more than 30 years of business experience in process and distribution, automation and workforce solutions.
Spherion Utah
@SpherionUtah
12
• Industry Briefs •
BANKING • Paul Callan has joined
Goldenwest Credit Union’s commercial lending department. He will be responsible for business development, credit analysis and underwriting for commercial loans and services and will facilitate commercial financing programs for small-business owners throughout Utah. Callan was previously employed by Barnes Bank. His background includes working for the FDIC, First Interstate Bank and Walker Bank. He has also worked in consumer banking as a loan officer and branch manager.
CONSTRUCTION GSBS_Enterprise_4x4.pdf 1 • The National Ready Mix
Concrete Association will present Jack B. Parson Companies, one of the state’s largest ready mix
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Aug. 22-28, 2011
The Enterprise
ON THE RISE
concrete, asphalt and construction material suppliers, with the 2011 Producer Excellence in Quality Award. The criteria for the award are: management commitment and decision making process; customer focus; human resources; production facilities and equipment; materials management and testing; specification review and mixture design and measurement analysis and improvement.
HOSPITALITY • The Grand America Hotel
welcomes the hotel’s first chef de cuisine, Phelix Gardener, to its onsite restaurant, The Garden Cafe. Gardener was previously executive chef at the Wild Grape New Bistro and chef de cuisine at The Cabin Restaurant in Park City, and sous chef at The Peabody Hotel. • Zermatt Resort, Midway, has appointed Marlin Siebach as chief engineer. He will be responsible for asset preservation and new construction at the resort. Siebach graduated from BYU with a degree in construction management and is a licensed general contractor in Utah. He previously served in the United States Army Corps of Engineers and currently serves in the Army Reserves.
LAW • Scott Sabey, an attorney
with Fabian Law, Salt Lake City, has been appointed to the National 2012 General Merchandise
continued on next page
from page 2
What do you enjoy most about your career? During the first few years it was the satisfaction I felt at the end of the day walking back to my truck and looking back to see what I had built with my own two hands. In today’s economic environment employees are working harder for less so I feel that there is a big part in them that works every day for their own self-satisfaction. The pace of today’s project schedules is so fast that carpenters are challenged with meeting their deadlines but having to assure that their craftsmanship stays intact. It takes a balanced approach of pride in our craft and the ability to adhere to project schedules. How do you feel that you positively impact your company and the construction industry? I have always told our employees to do whatever it takes to make our customers successful and, in turn, you will be successful. The construction industry is ever changing. The “fire” you had five minutes ago will change and a new one will develop. You have to learn to respond to a problem instead of reacting. People around you see this and understand the process. It’s called leadership. They learn from it and develop. What does craftsmanship mean to you? I remember one of the teachings my father gave me at young age. He said, “If you can’t do it right, then don’t do it at all.” The best way to accomplish this in the construction industry is through mentors and education. Another key ingredient to craftsmanship is
REAL ESTATE from page 10
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development. The price disparity between buyers and sellers is closing. Facing a continued difficult economy, lenders are anxious to move non-performing assets off of their books. Buyers who are willing to take on some risk will find the best opportunities to buy in the next 18-24 months. The entirety of this report provides an in-depth analysis of specific real estate trends in Utah and can be viewed at NAIWEST. com. NAI West was founded in Salt Lake City, Utah in 1998 as a full service commercial real estate brokerage. It has since grown to include property management, property maintenance and business acquisition services. In 2010 NAI West was recognized as the No. 1 commercial real estate brokerage and the No. 1 thirdparty property management firm in Utah.
pride. Either an individual has it or not. Most people I am in contact with in the construction industry take pride in what they do and want to do the best job they are capable of. Why would you recommend your career path to someone who is thinking about construction as a career path? Every project is different and each project brings its own set of challenges. When you develop your craft to the point of being able to complete those challenges successfully, it’s very rewarding. ••••• Ron has served on the board of directors for Associated Builders and Contractors and is a current board member for Building Utah Youth. In addition, RJP has received numerous trade association awards for projects throughout the western states for their performance and quality. He is a graduate of Rapport Leadership International. Associated Builders and Contractors (ABC) is a national association with 75 chapters representing 23,000 merit shop construction and construction-related firms. For more information call (801) 708-7036 or visit www.abcutah.org.
SHE MAY NOT LIVE TO SEE HER CHILD GROW UP She is running out of breath and running out of time… Thousands of young women are living with a deadly lung disease called LAM — and don’t know they have it. LAM is often misdiagnosed as asthma or chronic bronchitis. There is no known cure. But there is hope. Learn more about LAM.
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The Enterprise
Aug. 22-28, 2011 from previous page Committee for Ducks Unlimited. Ducks Unlimited conserves, restores and manages wetlands and associated habitats for North America’s waterfowl. Sabey practices real estate and business law and related litigation. He is also a lobbyist for the MPAA, Aflac and other national associations. • Rachel Terry, an attorney with Fabian Law, has been appointed to the board of directors for the March of Dimes, Utah Chapter. The March of Dimes’ mission is to improve the health of babies by preventing birth defects, premature birth and infant mortality. Terry practices appellate law and complex commercial litigation, with an emphasis on litigation arising from business torts, contract rights, mining and utilities and real property.
REAL ESTATE • Green River Capital, an
REO asset management and loss mitigation provider for mortgage servicers, investment firms, credit unions and banking institutions, headquartered in West Valley City, has created a mobile application for the iPhone and iPad. The app allows agents to view all properties assigned to them, search for REO properties managed by GRC and view details and pictures stored in REOConnex. Agents can access a list of occupancy inspection tasks and receive notifications regarding task assignments, as well as complete and submit inspections using their mobile device.
RESTAURANTS
• Joey Pesner has been named executive chef at Zermatt Resort in Midway. He comes to Utah from Captiva Island, Fla., where he served as executive chef of South Seas Island Resort. He will oversee all menu and concept development, special events and staff training at the resort. ‘ • Four restaurants in Davis County will close down Heritage Park Boulevard in Layton for the fifth annual Party on the Boulevard on Aug. 24 at 5 p.m. Musicians, local artists and farmers, children’s activities as well as a classic car show will be featured. The event is free. The four restaurants are Roosters Brewing Company, Corbin’s Grille, MacCool’s Public House and Holy Smoke BBQ. The event will take place between the Layton Hills Mall and the Davis Conference Center.
Lake City-based online discount retailer, is opening a new outlet store at 8550 S. 1300 E. in
SERVICES
• AlphaGraphics, a producer and manager of marketing communications, headquartered in Salt Lake City, has awarded 24 people the Direct Marketing Association’s Fundamental Direct Marketing Certification at its annual conference in Las Vegas. The program includes training on campaign development, marketing databases, direct mail, metrics and results tracking, e-mail marketing and social media. Coinciding with the event, AlphaGraphics also unveiled a new branding identity that better represents the company. With the new branding, AlphaGraphics will expand its marketing communications services to include direct marketing, branding and identity, e-mail marketing, online marketing, mobile marketing and e-publishing.
TECHNOLOGY/ LIFE SCIENCES • SageCreek Partners,
a companion to technology companies and their investment partners and boards, headquartered in Alpine, has signed two new clients, SilverSpore and NEXThink. SilverSpore specializes in innovative new approaches to IT management and provides self-configuring IT monitoring systems for physical and cloud-based environments. NEXThink develops and commercializes IT monitoring solutions, enabling IT teams to manage their standard and virtual desktop infrastructures.
• Aug. 24, 11 a.m.-1 p.m.: “Utah’s Mechanic’s Lien Laws and the Changes Made in 2011,” sponsored by Associated Builders and Contractors of Utah. Darrel Bostwick of Bostwick & Price PC will discuss the most recent changes to Utah’s mechanic’s lien statutes, including significant changes to the State Construction Registry, and current statutory and judicial trends. Location is the ABC offices, 2130 S. 3140 W., Suite B, West Valley City. Cost is $30 for ABC members, $40 for nonmembers, lunch included. Nonmembers must pre-pay. Register with Jodi Frank at jfrank@abcutah.org or (801) 708-7036. • Aug. 30 and Aug. 31, noon5 p.m.: 10-Hour Construction Compliance Training, sponsored by Associated Builders and Contractors of Utah. Targeted at entry-level workers, the program is intended to provide a variety of training on construction safety and health. Attendees will receive course completion cards and materials. Location is the ABC offices, 2130 S. 3140 W., Suite B, West Valley City. Cost is $50 for ABC members, $65 for nonmembers, lunch included. Nonmembers must pre-pay. Register with Jodi Frank at jfrank@abcutah.org or (801) 708-7036. • Aug. 31, 8 a.m.-noon: Performance Management — Positives and Pitfalls, sponsored by The Employers Council. Guest speaker, author and employment attorney Jathan Janove
of Ogletree Deakins will help attendees improve the process to effectively manage and evaluate employee performance. Attendees will also hear HR senior vice presidents George Myers, Zions Bank and Howard Goodman, Savage Companies, relay firsthand accounts of their experience creating and implementing successful performance management programs. Topics to be covered include determining the purpose and desired outcome of performance management, obtaining supervisor support, how to get a positive return on investment, common legal pitfalls of performance management and best practice tips for success. Location is the Radisson Hotel, 215 W. South Temple, Salt Lake City. Cost is $129 for council members, $209 for nonmembers, and includes a breakfast buffet beginning at 7:30 a.m. and materials. Register at http://ecutah.org/perfmgt.pdf. • Sept. 8, 6-9 p.m.: Social Commerce Exchange, hosted by Whitehall Ventures. Interactive learning sessions with leading experts and networking opportunities with like-minded businesses will be available. Representatives of Adobe, BlueGrass, KSL.com and others will lead discussions on effective Facebook and Twitter strategies, social content management, social media measurement and mobile applications. Location is the Miller Campus of Salt Lake Community College, 9750 S. 300 W., Sandy. Free, but seating is
limited. Register at http://socialcommerceexchange-6428.eventbrite.com. • Sept. 13, 10 a.m.-noon: “Developing Superior Customer Service,” sponsored by Associated Builders and Contractors of Utah. Henry “Dutch” Hempel, a business consultant for the construction industry, will be the presenter. Location is the ABC offices, 2130 S. 3140 W., Suite B, West Valley City. Cost is $10 for members, $15 for nonmembers, who must prepay. Register with Jodi Frank at (801) 708-7036 or jfrank@ abcutah.org. • Sept. 13, 7 p.m.: “Advantage: How American Innovation Can Overcome the Asian Challenge,” presented by Westminster College and the Utah Council for Citizen Diplomacy. Dr. Adam Segal will make the case for the crucial role of the “software” of innovation and argues that by strengthening its politics, social relations, and institutions that move ideas from the lab to the marketplace, the United States can play to its greatest economic strengths and preserve its position as a global power. Segal is currently an Ira A. Lipman Senior Fellow for Counterterrorism and National Security Studies at the Council on Foreign Relations. Before joining the council, Segal was an arms control analyst for the China Project at the Union of Concerned Scientists. He is see CALENDAR page 21
THE MILLER BUSINESS RESOURCE CENTER Comprehensive Business Solutions for Businesses of All Sizes
TRAVEL/TOURISM • Salt Lake City has won
the bid to host the 2015 Annual Conference for the Association of Zoos and Aquariums (AZA). AZA is active in institution accreditation, animal care initiatives, education and conservation programs. It serves as an accrediting body for zoos and aquariums and ensures accredited facilities meet higher standards of animal care than are required by law. The event is scheduled for September 2015 at the Salt Palace Convention Center and is expected to attract approximately 2,100 attendees and generate $2 million in direct attendee spending.
• Calendar •
CORPORATE SOLUTIONS | MILLER BUSINESS INNOVATION CENTER WOMEN’S BUSINESS INSTITUTE | GLOBAL BUSINESS CENTER SALT LAKE SMALL BUSINESS DEVELOPMENT CENTER
No other business resource center in Utah provides the comprehensive level of expertise, help and training offered by the Miller Business Resource Center.
w w w. m b r c s l c c . c o m 801-957-5200
AA/EO Institution
RETAIL • Overstock.com, a Salt
Sandy. The store will hold its grand opening on Saturday, Aug. 27 at 10:30 a.m, and will be open Thursdays and Fridays from noon to 7 p.m., and Saturdays from 10 a.m. to 6 p.m. The store is 18,000 square feet and will have more than 1,000 different products that change weekly and may include furniture, electronics, home décor, apparel, art and bedding.
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Aug. 22-28, 2011
The Enterprise
Focus Special
R e p ort Business travelers increasingly use tech to be productive, stay in touch
Business travelers increasingly use technology to make travel more productive but also to stay in touch with those back home, according to a new research study that outlines different types of road warriors. Looking across all travelers, a strong majority (79 percent) noted they commonly bring technology on their trips to stay in touch with their family and friends. At least two-thirds bring laptops, wireless broadband, portable GPS and smartphones also utilizing mobile travel apps, among other tools. The Business Traveler Market Segmentation Study survey findings were released earlier this month by the Global Business Travel Association Foundation (GBTA), the research arm of the Global Business Travel Association. In general, looking at all road warriors: • The majority of business travelers report there is no substitute for being there in person (78 percent) and enjoy traveling for
work (78 percent). • Almost half of business travelers report that staying in touch on the road with family and friends (46 percent) and staying safe (46 percent) while traveling are the most important goals on trip. • Nearly half (46 percent) have to work under tight budgets, putting pressure on their travel plans. • The average trip lasts four days and costs $1,837. • Business travelers tend to be college-educated (71 percent), 38 years old on average, and male (59 percent). Types of Travelers The study identifies five segments of travelers in the market today: The Veteran (33 percent), Road Weary (25 percent), Wide-Eyed and Anxious (21 percent), Passionate High-Tech (14 percent) and New Recruits (7 percent) based on their travel goals, characteristics, technology usages and demographics. see TRAVELERS page 18
Travel
Most leisure travel agencies saw increased revenues last year Despite a still-struggling economy in 2010, the American Society of Travel Agents’ (ASTA) most recent Leisure Trends Report has found that a large percentage of leisure-based travel agencies saw increased revenue (51 percent) and transactions (49 percent) last year when compared to 2009, a positive trend that agents expect to see continue through 2011 when 94 percent expect to make a profit. “Travel agencies are definitely seeing an uptick in business,” said Chris Russo, ASTA president and chair. “In fact, 44 percent of agents in our survey reported an increase in the number of clients they had in 2010 compared to the previous year. While that’s certainly great news, travel agents need to be able to look at both positive and negative trends over time to ensure
that their businesses are prepared to weather whatever the future holds.” Agencies reported the strongest rebound in sales for rail (52 percent), hotel (51 percent), tour/ package/group (48 percent) and insurance (44 percent). Many agencies made operational changes in 2010 to contain costs, and some plan additional changes in 2011. The highest percentage of agencies planning changes in 2011 plan to increase fees and hire more employees/independent contractors to take advantage of increasing sales. Among the report’s other findings: • Sixty percent of leisure agencies made operational changes in the past year; 35 percent plan operational changes within the coming year. see LEISURE page 18
International key person protection in travel hot spots By Edward A. Tafaro When Hosni Mubarak stepped down as Egypt’s president, he left his country in dangerous disarray. As Egyptian citizens celebrated what they hoped would be an historic political change for their country, violence still dominated the world’s headlines in the wake of attacks in Cairo on a number of journalists. It was then that we received an urgent call to insure two on-air TV personalities, their producer and a camera crew that were being deployed immediately to an uncertain Cairo. Make the same request to any life or disability insurance company in the U.S. and you’re sure to hear nothing but crickets on the other end. Protecting your client’s key employees is challenging enough, but when you add international exposure to places that are on the State Department’s “bad list,” an entirely different skill set is required for designing a program
that will protect your client. The State Department’s website recently listed more than 30 “trouble spots” in the world, meaning it recommends that Americans avoid or consider the risk of travel to that country because the U.S. government’s ability to assist American citizens is “constrained.” But in today’s world, this is not always possible. First off, there’s no substitute for great advanced planning. If you work with a company contemplating overseas travel and can establish well in advance that there exists a need for key person insurance, the coverage is easier to obtain and more cost effective. The reality is that the heightened awareness around a dangerous trip often results in an insurance need being developed or uncovered. When this need arises, the underwriting process migrates from the traditional life and disability insurance market to the playing field of high limit or specialized see HOT SPOTS next page
Christopherson designated 'SBA 100' firm Christopherson Business Travel, Salt Lake City, was recently designated as an “SBA 100” company, joining 100 American businesses that have created at least 100 jobs since receiving SBA assistance. Despite a 20-year period defined by intense Internet competition, airlines eliminating travel agency commissions and a prolonged economic recession, Christopherson earned record revenues exceeding $240 million in 2010. Since 1990, the company has grown from a staff of 10 to more than 225 with the help of an initial SBA-backed working capital loan for $20,000. In 2000, Christopherson needed more office space. President Mike Cameron used a $5 million loan guaranteed partially by SBA in 2001 to construct a 42,000 square foot building that consolidated four offices and provided room for future growth. Today, Christopherson Business Travel provides travel management services to more than 800 companies. Christopherson was formed in 1953. Cameron and his wife purchased it in 1990, when the firm had two agents and was booking about $10,000 a week in airline tickets. Today, the company books $10,000 every seven minutes. In the mid-1990s, airlines paid commissions to travel agents. That started coming to an end in 1995, as the Internet took hold. Expedia launched the next year. Today, Christopherson is American Airlines’ and Delta Air Lines’ largest independent travel management company client in the western United States. Christopherson merged with Andavo Travel three years ago and bought out its Andavo partner on March 1, 2010; Andavo continues to handle Christopherson’s leisure travel, which Cameron said constitutes about 15 percent of Christopherson’s total book of business. Earlier this year, Christopherson secured the University of Colorado as a client. see SBA 100 page 18
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Aug. 22-28, 2011
HOT SPOTS from previous page
risk underwriters. Here’s a notable example. A large and prestigious private equity firm recently made a significant investment in a defense contractor. Shortly after the investment closed, the company named a new CEO. With hundreds of millions of dollars at stake, the private equity firm sought to hedge their investment by acquiring $50 million of key person life and disability insurance. As of the day of the request, the insurance advisor had eight business days to secure the insurance before the CEO departed for the Middle East, with stops in such international hot spots as Iraq and Afghanistan. Because of the abbreviated time frame, traditional life and disability insurance was not an option. The advisor needed to turn to a specialty underwriter that deals with exceptionally large and complex human capital risks. Armed with the CEO’s itinerary and details of the executive’s compensation and equity incentive agreement, the advisor had enough information to present the submission to the underwriters. Within 72 hours, a policy was issued that covered the private equity firm’s loss of the CEO directly due to an accidental death or disability, as well as a result of acts of war or terrorism. The premium for $50 million insurance was $62,500, covering a two-week period. Sickness coverage was included for certain elements of the insurance policy. Few domestic life and disability insurance carriers possess the ability to underwrite large risks when there’s high-risk exposure to the world’s hot zones. To get the job done, producers must work with large international insurers that are willing to deploy meaningful capacity. The easiest way for advisor’s to access these markets is through an experienced U.S.-based correspondent who is skilled at designing and underwriting coverage in these volatile locations. Local correspondents or managing general underwriters also serve to guide producers through the regulatory complexities that go along with underwriting risks through surplus lines carriers — something most life and health producers have little experience with. The best producers are masters at uncovering details from their clients, documenting them and communicating them effectively to underwriters. A wellwritten cover memo will often be
the basis for offering coverage and can be the primary source for pricing consideration. A complete itinerary coupled with security detail information are the underwriter’s key points of interest, so make sure the information is gathered and communicated as early as possible. Frequently, specific plans will be classified when working with international defense contractors, yet, one way or the other, the basic information must be made available. When underwriting coverage in highly hostile areas, rates can vary based on multiple factors,
such as security arrangements, travel vendors, length of stay and, in highly hostile areas, rates even vary down to specific latitude and longitude coordinates, often within a single city or locale. No detail is too small for spelling out the need for the insurance and financial justification, including the purpose of the trip and the client’ specific duties and objectives. This is the information that sets apart a submission and makes it more likely for an underwriter to go out on the limb with preferential pricing and terms. Keep in mind, when under-
writing risks in highly volatile areas — with the propensity for rapid deterioration––it may not be possible to negotiate coverage or a rate guarantee for the entire duration of the client’s journey. It’s essential to keep in mind that the best underwriting offers go to advisors who deliver the best information.
celebrities, athletes, entertainers, highly compensated executives and professionals. By partnering with Lloyd’s of London syndicates, his firm has the largest binding authority available in the U.S. for its products. For more information, contact him at (201) 512-0110 or ted.tafaro@exceptionalriskadvisors.com.
Edward A. (Ted) Tafaro, president and CEO of Mahwah, N.J-based Exceptional Risk Advisors LLC, is an expert on high-limit specialty life, accident and disability products for clients with extraordinary insurance needs, including
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The Enterprise
Utah’s Business Travel Specialists Morris Murdock Business Travel accounts now managed by Hess Travel 801.292.8687
800.882.8028
www.hesstravel.com
150 North Main Street, Bountiful, Utah 84010
Aug. 22-28, 2011
Aug. 22-28, 2011
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The Enterprise
Top Wasatch Front Travel Agencies Ranked by total sales in 2010 Phone Fax Web
Total sales for 2010
Christopherson Business Travel 5588 S. Green St. Salt Lake City, UT 84123
801-327-7700 801-327-7778 cbtravel.com
$240 million
Hess Corporate Travel 150 N. Main St. Bountiful, UT
801-292-8687 801-292-8694 hesstravel.com
$103 million
Morris Murdock Travel 515 S. 700 E. Salt Lake City, UT 84102
801-487-9731 801-483-6546 morrismurdock.com
$75 million
Columbus Travel 563 W. 500 S. Bountiful, UT 84010
801-295-9568 801-295-9688 columbusvacations. com
$22 million
Snelgrove Travel Center 145 W. Gentile St. Layton, UT 84041
801-544-1800 801-546-9480 snelgrovetravel.com
$17.3 million
Cruise & Travel Masters 4376 S. 700 E. Salt Lake City, UT 84107
801-268-4470 cruiseandtravelmasters.com
$17 million
Clawson Travel 216 S. 1300 E. Salt Lake City, UT 84102
801-582-0303 NA NA
$16 million
Thomas Travel 535 E. 4500 S. Salt Lake City, UT 84107
801-266-2775 801-293-0991 thomastravel.com
$8 million
Black Pearl Luxury Services 515 S. 700 E. Salt Lake City, UT 84102
801-483-6464 801-483-6570 blackpearlservices. com
$3.5 million
Your Vacation Station 4376 S. 700 E. Salt Lake City
801-523-8030 yourvacationstation. com
$2.5 million
Company name
DND= Did Not Disclose
% business travel
Specialties
% travel (vacation/leisure)
Year established
80%
Business travel management
1
20%
1953
125
95%
Business travel management
1
5%
1985
40
20%
Cruises, tours, groups, incentives
6
80%
1958
85
20%
Corporate incentive groups, cruising, family and individual vacation travel
1
80%
1995
# of UT offices # of UT employees
25
15%
Cruises, beach destinations, ski trips, international travel
1
85%
1991
15
30%
Family adventure tours and cruises, all inclusive romantic getaways, European river cruises
1
70% 90% 10% 10% 90% 0% 100% 0% 100%
N/A= Not Available
Please note that some firms chose not to respond, or failed to respond in time to our inquiries.
All rights reserved. Copyright 2011 by the Enterprise Newspaper Group
1984 Corporate travel, international ticketing, discounts 1933
Group travel, theater and arts tours, incentives, vacation and leisure, cruises, tour packages 1951 Customized individual and family travel 2005
Personal vacation planning for groups, incentive travel, destination weddings, cruise 2001
President/CEO
Micahel A. Cameron
Alan Hess
Brian Hollien
Mark Faldmo Larry Gelwix
Richard Snelgrove
Toby Nash
40 4
Brad Clawson
10 4
Robert Guymon
9 1
Suzanne Kennard
4 1 DND
Jim Svendsen
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New trend in travel: sustainable vacations
There is a new trend growing in travel. We are finding customers wanting to build on their resume in life by learning new languages or volunteering abroad. This has sprouted the desire for vacations that allow you to step off the beaten path, embrace the unexpected and immerse yourself in the extraordinary. This group of travelers is looking for authentic accommodations and local transportation to bring them to some of the world’s most fascinating cultures, customs and awe-inspiring Toby wildlife. Travelers are looking to give back more to the communities and the natural surroundings that they visit — things typically being taken away from the communities that we visit. This group of travelers needs an emphasis on preserving cultural heritage and conserving and replenishing the natural environments while improving the lives of local people. Hence, the need for sustainable travel. Sustainable tourism strives to minimize its impact on the environment, to respect local people and cultures, to offer economic benefit to local businesses and communities, to provide a memorable experience for travelers and to protect destinations for future generations. A sustainable trip looks like: • Interacting more with local people, while using local transportation. • Staying at locally owned accommodations and supporting local business, so the money you spend stays with the families and individuals you encounter along the way, enabling them to grown their community. • Encouraging the preservation of cultural heritage by appre-
SBA 100 from page 14
With a $16 million annual travel budget, the university wanted to consolidate 10 travel agencies down to one. Christopherson displaced 10 incumbents. In the first quarter of 2010, Christopherson did about $60 million in business. In the first quarter of this year, that number had risen to $74 million — a 23 percent increase. Cameron attributed 10 percent of that rise to increased ticket prices owing to more international travel (see chart, opposite.) and 13 percent to a larger number of transactions.
Aug. 22-28, 2011
The Enterprise ciating, but not altering, archaeological sites, sampling and learning about traditional customs and belief systems. • Visiting local community projects to get a greater understanding of the issues facing local people, and learning how individuals are working to strengthen the health and viability of their communities. Travelers are also looking for a way to volunteer and give back during their stays. • Supporting fair trade by purchasing goods directly Nash from the individuals who have made them. As a traveler, you can do a lot to help ensure that tourism remains a positive experience for other travelers and host communities by following guidelines for low-impact and culturally sensitive travel: • Take time to learn what behavior is acceptable and what isn’t. • Always ask permission to take photos of people and respect their wishes if they refuse. If you do take a photo, offer to send copies back to them, and make sure to follow through with your promise. • Take the time to learn about the country you are visiting and learn a few phrases, which will make the interactions with the local people more meaningful and memorable. • If you are bringing gifts to a host family, school or community, choose items that will have a lasting impact, such as books or sports equipment. • Avoid taking product packaging and take re-usable containers for things like toiletries in order to limit your waste in foreign countries. • Recycling is almost nonexis-
tent in most developing countries. Take your own reusable water bottle and fill whenever possible, and use rechargeable batteries. These travelers are looking for low-impact tours that benefit the traveler and a community alike. Again, these sustainable tourism opportunities help local economies while minimizing negative environmental and cultural impacts. Types of Sustainable Tours • Physically active meeting immersive exploration. Typically the active trips are made for outdoor enthusiasts, and include trekking and biking to whitewater rafting and kayaking off the beaten path. • Classic tours typically ensure an authentic and unforgettable travel experience that will explore unique landscapes, wildlife and foreign cultures. • Adventure tours bring to life the amazing destinations of the world, all while combining colorful cultures, wildlife and landscape with education and immersive activities that give the traveler a better understanding of our incredible planet. • Expedition style tours could be led by a team of naturalists, anthropologists and historians, all the while enjoying wildlife and amazing scenery. • Family adventure trips are authentic and educative, and will remind you of your youth when you backpacked and slept in hammocks by the sea. • Volun-tours allow you to explore the world and immerse yourself in different cultures while making a difference at the same time. You could build schools or help protect sea turtles, creating memories you will never forget. Toby Nash is president of Cruise and Travel Masters, Salt Lake City.
TRAVELERS from page 14
The Veteran – The Most Experienced At a glance: average of 12 trips taken per year with an average of four nights away from home per trip; (88 percent) are 35 years of age or older. Typically older travelers who have no problem with managing travel, handling arrangements and keeping track of expenses. The most important goal identified by Veteran travelers is ensuring they are not hindered by a lack of equipment of connectivity showing a high receptiveness to new technology for more productivity on the road. This group enjoys traveling with almost all (94 percent) bringing laptops on the road to stay in touch with those back home. Road Weary – Frequent and More Reluctant At a glance: average of 15 trips taken per year with an average of three nights away from home per trip; Majority are older in age with (74 percent) being older than 35 years of age. The most important goal to Road Weary travelers is feeling safe when on trip (42 percent) and staying in touch with family (41 percent). Road Weary travelers are most likely of all traveler groups to bring a portable GPS on trip. Wide-Eyed and Anxious – Less Frequent Travelers Who Experience Travel Challenges At a glance: average of 11 trips taken per year with an average of four nights away from
LEISURE from page 14
• Half of agencies planning to make changes will add service or consulting fees. • The largest percentage (20 percent) of agencies that plan to make changes in regards to
Annual U.S Domestic Average Itinerary Fare in Current and Constant Dollars
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (thru 3Q)
From Previous Year (%)
-5.3 3.8 7.6 4.7 4.7 -5.4 -2.6 1.0 -3.2 0.6 6.9 -1.0 6.3 -10.5 8.8
Wake Up! Help us prevent poaching.
1995 dollars*
Percent Change Average Fare ($) 292 277 287 309 324 339 321 312 315 305 307 329 325 346 309 337
employment say they will increase their number of employees. • More than half (56 percent) of the agencies that have independent contractors (ICs) plan to increase the number of ICs with whom they contract. • Cruises (71 percent) were the top trip under consideration by agency clients. Regulated hunting preserves animal populations and habitats.
Fares based on domestic itinerary fares, round-trip or one-way for which no return is purchased. Fares are based on the total ticket value which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase. Fares include only the price paid at the time of the ticket purchase and do not include other fees paid at the airport or onboard the aircraft. Averages do not include frequent-flyer or “zero fares” or a few abnormally high reported fares. Current dollars
home per trip; typically younger travelers, (89 percent) are less than 55 years old. In general, Wide-Eyed and Anxious travelers are younger travelers with less experience on the road, these travelers tend to enjoy travel but get nervous navigating new destinations and following policies. Passionate High-Tech – Enthusiastic Travelers and Early Adapters of Tech At a glance: average of 13 trips taken per year with an average of four nights away from home per trip; almost all younger travelers with (91 percent) less than 54 years old. Passionate High-Tech travelers love to travel for work and look to technology to make them more productive and stay in the know with their friends and family. Likely to spend more per trip and fly to their destinations, Passionate High-Tech travelers embrace new technologies such as tablet devices (25 percent) while on the road. The New Recruits – Less Experienced Travelers Who Want to Share their Adventures At a glance: average of 14 trips taken per year with an average of six nights away from home per trip; the youngest group with (98 percent) less than 54 years old. Generally this group of younger travelers is eager to explore new destinations while on business and are eager to travel more and share experiences, often using social media to meet up with friends and other colleagues on the road. Likely to do more international travel and work in the computer technology industry.
Cumulative from Average Fare 1995 (%) ($) 292 -5.3 269 -1.7 273 5.8 289 10.8 296 16.0 300 9.7 276 6.9 265 7.9 261 4.5 246 5.2 240 12.4 248 11.3 239 18.3 245 5.8 220 15.2 235
SOURCE: Bureau of Transportation Statistics * Rate calculated using Bureau of Labor Statistics Consumer Price Index.
Percent Change From Previous Year (%)
-8.0 1.5 6.0 2.5 1.3 -8.0 -4.1 -1.3 -5.7 -2.7 3.6 -3.7 2.4 -10.1 6.7
Cumulative from 1995 (%)
-8.0 -6.7 -1.1 1.4 2.7 -5.6 -9.4 -10.6 -15.7 -17.9 -15.0 -18.2 -16.2 -24.7 -19.6
Safari Club International Foundation 8 0 0 - 3 77- 5 3 9 9 w w w. S a f a r i C l u b F o u n d a t i o n . o rg
Aug. 22-28, 2011
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Aug. 22-28, 2011
The Enterprise
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CALENDAR from page 13
the author of Digital Dragon: High-Technology Enterprises in China and writes for the blog Asia Unbound. Location is the Vieve Gore Concert Hall in the Emma Eccles Jones Conservatory at Westminster College, 1840 S. 1300 E., Salt Lake City. Free. • Sept. 30, 9 a.m.-5 p.m.: Dave Ramsey’s EntreLeadership Nationwide Simulcast Training Event, presented by ChamberWest and hosted by the Salt Lake
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Aug. 22-28, 2011 Community College Jordan campus. Cost is $39. Register at www. chamberwest.org or by contacting Holly at (801) 673-332 or holly@ chamberwest.org. • Nov. 4, 7 p.m.: Utah Technology Council 2011 Hall of Fame Gala. Keynote speaker will be Larry Ellison, founder and CEO of Oracle Corp. Location is the Grand America Hotel, 555 S. Main St., Salt Lake City. A networking session will begin at 6 p.m. Cost is $300 for UTC members, $450 for nonmembers. Register at www.utahtech.org.
C E L E B R A T E
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G I V I N G
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PRESENT t o
P R O M O T E
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Aug. 22-28, 2011
The Enterprise
What Obama should learn from Wisconsin With Wisconsin’s epic state district - or but for a profusion of senate recall battle now over, the ballot-counting irregularities that results carry a clear message that alleged benefited Republicans in a ought to resonate all the way to single big county. To hear the Republicans and Washington — and especially the Obama White House. The essence their supporters crowing, you wouldn’t know they had of politics in America held onto control of the today, for Democrats at state Senate by only a least, is to understand single vote. So it is clear and communicate the that the governor remains political nature of the vulnerable to recall himopposition. Having suffered self — which must be why a bad beating last he now sounds more like November, the Wisconsin the bipartisan, reasonable, Democrats and their Joe Conason constructive Republican, allies have succeeded in the very scarce kind that building a strong movePresident Obama has purment that fights back explicitly sued so long and so fruitlessly. On the day after his party against the right-wing policies of Gov. Scott Walker’s Republican forfeited two state Senate seats — matching the total numParty. Last week, they won two out ber of elected officials recalled of six recall campaigns mounted in Wisconsin’s entire history — against GOP state senators, which Walker told reporters that he realwas widely interpreted as a defeat ized voters “want us to do more or at best a draw. But on Tuesday, working together” and that he they won all three recall efforts would henceforth focus on “jobs” against Democrats, giving them an (with no mention of his previous overall series victory, and cutting union-busting initiatives). Surely he is also concerned deeply into perceived support for with his own plummeting poll the Walker agenda. A third seat would have been numbers, which show a profound turned over from the Republicans sense of buyer’s remorse among to Democrats, but for a thousand Wisconsin independent voters, as votes or so in a single senate well as the continued determina-
tion of the state’s progressives and unions to remove him from power. And if the results of the recall elections of the past two weeks have encouraged him to reconsider the confrontational attitude he displayed during his first six months in office, so much the better. But what do the Wisconsin results mean to President Obama, whose gauzy dream of a “postpartisan” era in Washington have been so bitterly dashed by the rise of the tea party? In a battleground state that could go either way next year — and that went sharply rightward last year — the progressive Democratic mobilization over the past six months has been nothing short of remarkable. Consider that Wisconsin has only seen 20 or so recall elections over the past century, and that of those elections only two have previously resulted in the recall of an incumbent. Consider that incumbents generally have a powerful advantage in any election, especially an off-year recall. Consider further that only a few months ago, the Republicans used their majority to pass a highly restrictive voter ID bill that probably suppressed the vote of Democratic-leaning
constituencies, including lowincome families, elderly Medicare and Social Security beneficiaries, ethnic minorities and students. And finally consider the lukewarm attitude of the Obama White House toward the Wisconsin struggle, despite the president’s past vow to “walk the picket line” in defense of workers’ rights. Although the Obama political operation was reported to be lending help to the Democratic recall effort, there wasn’t much visible support from the president or his surrogates. Perhaps it would have been inappropriate for the president to involve himself directly in a campaign against state officials. But whether he ought to have spoken out or not, there are still two profound lessons for him in this outcome. The first lesson is that bipartisanship seems to be encouraged among Republicans these days only when they suspect that voters may be sick of their extremism. Just as Walker is now worried about his future, so is Ohio Gov. John Kasich, who has suddenly realized that he prefers cooperation to confrontation over col-
lective bargaining — evidently because he fears the results of a potential repeal referendum on the issue in November. The second lesson is that there is only one way to instill such fear among Republicans, in Wisconsin or Washington: By demonstrating the will to push back, as hard as necessary, on behalf of the principles Democrats have always promised to uphold. That is what the Republicans do with great consistency on behalf of their own ideology, however extreme or unpopular. That is what inspired the Democrats who have fought them to a standstill in Wisconsin. And that is what could still save Obama’s presidency. Joe Conason’s articles have been published in Harper’s, The Nation, The New Republic, The Guardian (London) and The New Yorker, among many other periodicals in the United States and abroad. He also appears frequently as a commentator on television and radio programs. A winner of the New York Press Club’s Byline Award, he has covered every American presidential election since 1980. Copyright 2011 Creators Syndicate
Aug. 22-28, 2011
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The Enterprise
Social degeneration Someone at long last has had “You have damaged your own the courage to tell the plain, honest race.” While this might seem like it truth about race. After mobs of young blacks is just plain common sense, what rampaged through Philadelphia Mayor Nutter said undermines a committing violence — as simi- whole vision of the world that lar mobs have rampaged has brought fame, forthrough Chicago, Denver, tune and power to race Milwaukee and other hustlers in politics, the places — Philadelphia’s media and academia. black mayor, Michael A. Any racial disparities in Nutter, ordered a police hiring can only be due crackdown and lashed out to racism and discrimiat the whole lifestyle of nation, according to the those who did such things. prevailing vision, which Thomas “Pull up your pants reaches from street corner Sowell and buy a belt ‘cause no demagogues to the august one wants to see your chambers of the Supreme underwear or the crack of your Court of the United States. Just to identify the rioters and butt,” he said. “If you walk into somebody’s office with your hair looters as black is a radical deparuncombed and a pick in the back, ture, when mayors, police chiefs and your shoes untied, and your and the media in other cities report pants half down, tattoos up and on these outbreaks of violence down your arms and on your neck, without mentioning the race of and you wonder why somebody those who are doing these things. won’t hire you? They don’t hire The Chicago Tribune even made you ‘cause you look like you’re excuses for failing to mention race crazy,” the mayor said. He added: when reporting on violent attacks
by blacks on whites in Chicago. Such excuses might make sense if the same politicians and media talking heads were not constantly mentioning race when denouncing the fact that a disproportionate number of young black men are being sent to prison. The prevailing social dogma is that disparities in outcomes between races can only be due to disparities in how these races are treated. In other words, there cannot possibly be any differences in behavior. But if black and white Americans had exactly the same behavior patterns, they would be the only two groups on this planet that are the same. The Chinese minority in Malaysia has long been more successful and more prosperous than the Malay majority, just as the Indians in Fiji have long been more successful and more prosperous than the indigenous Fijians. At various places and times through-
out history, the same could be said of the Armenians in Turkey, the Lebanese in Sierra Leone, the Parsees in India, the Japanese in Brazil, and numerous others. There are similar disparities within particular racial or ethnic groups. Even this late in history, I have had northern Italians explain to me why they are not like southern Italians. In Australia, Jewish leaders in both Sydney and Melbourne went to great lengths to tell me why and how the Jews are different in these two cities. In the United States, despite the higher poverty level among blacks than among whites, the poverty rate among black married couples has been in single digits since 1994. The disparities within the black community are huge, both in behavior and in outcomes. Nevertheless, the dogma persists that differences between groups can only be due to the way others treat them or to differences in the way others perceive them in
“stereotypes.” All around the country, people in politics and the media have been tip-toeing around the fact that violent attacks by blacks on whites in public places are racially motivated, even when the attackers themselves use anti-white invective and mock the victims they leave lying on the streets bleeding. This is not something to ignore or excuse. It is something to be stopped. Mayor Michael Nutter of Philadelphia seems to be the first to openly recognize this. This needs to be done for the sake of both black and white Americans — and even for the sake of the hoodlums. They have set out on a path that leads only downward for themselves. Thomas Sowell is a senior fellow at the Hoover Institution, Stanford University, Stanford, CA 94305. His Web site is www.tsowell.com. Copyright 2011 Creators Syndicate
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