Manufacturing Industry Profile GENERAL OVERVIEW OF UTAH MANUFACTURING Utah’s manufacturing innovation process is the key to past, present, and future prosperity. The complex chain of events starts with an idea for a new product or process, prompting investments in research and development. R&D successes lead to spending in capital equipment and workers. Next are interconnected activities – channels by which an innovation in one area stimulates those in other areas. This benefits not just manufacturing, but other economic sectors as well. This process not only generates new products and processes, but also leads to well-paying jobs, increased productivity, and competitive pricing.

Utah’s past innovations were easily evident in the aerospace industry, but diversification into many other industries has made Utah’s economy stronger. Industrial high technology is quickly becoming Utah’s new strength. Manufacturing History The early pioneers to Utah created the initial manufacturing industry in Utah. The completion of the railroad in 1869 brought manufactured goods to Utah, and gave rise to export manufacturing. The onset of World War II produced a large expansion of manufacturing in Utah and throughout the West, a 510 percent increase in earnings from 1946 to 1960.

During and shortly after World War II, the federal government spent billions of dollars on manufacturing facilities and scientific research. A great deal was spent in Utah. Probably the biggest federal government investment in manufacturing in the state was the building of Geneva Steel Works in Utah County. This $200 million project permanently altered Utah’s manufacturing structure. No private investor would have risked such a large investment in a steel plant so far from its markets. However, the federal government felt it necessary to have a steel plant away from the coasts and therefore less likely to be a target of enemy attack.

Steel manufacturing was not the only industry the federal government helped establish in Utah. Following the second decade after World War II, another major industry began developing—the defense manufacturing industry. In 1956, Sperry Rand Corporation (now Unisys) came to Utah to build missiles. Two years later, Thiokol Corporation located a plant west of Brigham City to build solid fuel propellants for the Minuteman missiles. Hercules Corporation became another large defense contractor. Hercules was established 1914 in Utah, and produced blasting powder for mining. In 1958, it entered the aerospace industry by producing rocket engines. Another example of the growth of the aerospace industry was the coming of McDonnell-Douglas to in 1987. At that time, the company was one of two giant airplane manufacturers in the United States, and employed about 600 people in its Salt Lake City plant. In 1998, Boeing purchased McDonnell-Douglas, and today, the Utah plant continues to produce parts for Boeing’s airplanes.

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Utah Manufacturing Today Growing Diversification Utah’s manufacturing industry is typically characterized by its changing composition and diversification. For years, manufacturing had been concentrated in a few key industries, including primary metals, guided missiles, and electronic equipment. Growth was then felt in durable goods and food processing. In recent years, employment growth in such diverse fields as medical devices (see EDCU’s Biotechnology Industry profile), automobile accessories, and sporting goods equipment has given much broader diversification to Utah’s manufacturing industry. In years past, if a labor strike or falling commodity prices adversely affected Kennecott Copper or Geneva Steel, the impacts would reverberate through the regional manufacturing sector, as well as through the statewide economy. But with greater diversification of both the manufacturing industry and the state’s economy, such disruptions are becoming much less likely. “Hard-Hat” Technology Utah’s technology sector is industrial as well as software and e-commerce related. Rocket motors, aircraft control systems, airbags, satellites, composite materials, aircraft, and missile turbines, are some of the products of Utah’s “hard-hat” high-technology industry. The 300 or so businesses in the transportation equipment, instruments, electrical/electronic equipment, and industrial machinery/equipment sectors contribute over $2.3 billion to Utah’s economy (as contrasted to the 2,400 businesses that contribute $7.7 billion in high-tech goods and services). Utah’s “hard-hat,” high-tech industrial technology is unique in the nation.

ATK Alliant Techsystems (ATK) has several world-class rocket motor production facilities in Utah. Another Utah company, Autoliv, use similar pyrotechnic knowledge and ballistic expertise to produce airbags that inflate in milliseconds. Autoliv has 4,500 high-wage manufacturing jobs in Utah and ATK has 4,400. ATK spends $90 million on goods and services. General Data on Utah’s Manufacturing Industries Though Consumer Products and General Manufacturing lead Utah in firms and employment, the Food Processing sector dominates the state’s sales from manufacturing industries (See Figures 2 and 3).

FIGURE 2 – Utah Manufacturing Overview by Industry, 2002 Industry Number of Firms Employment Estimated Sales Aerospace (not including commercial airline industry)* 74 10,064 $1,947.5M Automotive transportation 173 8,327 $1,306.2M Chemicals 156 5,730 $2,479.7M Computer hardware Electronics Telecommunications

335 21,980 $3,102.6M

Furniture, apparel Sporting goods (Consumer goods)

611 23,068 $2,534.2M

Food processing 309 17,255 $4,603.0M General manufacturing (includes paper products) 1,149 28,525 $2,905.7M Industrial machinery 541 15,076 $1,683.7M Metals and mining 76 7,378 $2,780.7M

The list in this table does not include every industry. Some firms overlap industry categories. *When including the commercial airlines, Aerospace firms are more than 220, and Aerospace employment grows to more than 23,000. Source: Commission on the Future of the Aerospace Industry, Harris InfoSource Utah Manufacturing Report, Manufacturer’s News, Inc.

FIGURE 3 – Breakdown of Utah Gross State Product (GSP) by Manufacturing Segments (millions of dollars) Industry 1997 1998 1999 2000 2001 TOTAL GSP 55,070 59,084 62,635 68,430 70,409 Total Manufacturing 7,753 7,998 8,281 9,154 8,079

Durable Goods 5,037 5,164 5,337 5,920 5,057 LUMBER AND WOOD PRODUCTS 175 189 211 230 239 FURNITURE AND FIXTURES 143 180 195 208 218 Stone, clay, and glass products 281 317 314 286 217 Primary metal products 792 782 805 905 611 Fabricated metal products 525 485 549 584 553 Industrial machinery and equipment 710 830 596 767 523 Electronic and other electric equipment 428 358 472 404 412 Motor vehicles and equipment 550 599 602 642 585 OTHER TRANSPORTATION EQUIPMENT 650 582 596 794 653 Instruments and related products 356 392 408 461 471 Miscellaneous manufacturing 427 449 588 640 574

Non-durable Goods 2,716 2,834 2,944 3,234 3,022 Food and kindred products 681 626 705 619 613 Textile mill products 14 19 20 21 22 Apparel and other textile products 68 71 57 51 49 Paper and allied products 284 259 344 375 336 Printing and publishing 588 610 616 632 595 Chemicals and allied products 540 576 558 635 731 Petroleum and coal products 334 456 388 727 388 Rubber and misc. Plastic products 204 214 254 172 284 Leather and leather products 4 4 3 4 4

Source: Bureau of Economic Analysis, U.S. Department of Commerce, May 2003 UTAH MANUFACTURING INDUSTRY SECTORS Aerospace Utah has a proud history in aerospace with companies producing missile and rocket propellants since 1958 (See Figure 4). Today Utah is among the top ten states in the nation in aerospace employment (See Figure 5). This industry is distinguished by having the smallest number of firms, but the largest number of employees. These large companies have created a long list of smaller support companies, and therefore play a substantial role in Utah’s economy. If you add all of the workers on the commercial side of Utah aerospace (airports and airlines), the total number of employed in this industry grows to over 23,400. The average wage for people in aerospace is 42 percent higher than the average Utah wage (See Figure 6). FIGURE 4 – Utah Aerospace Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Communications equipment 11 2,255 $651.7M Aircraft Engines, parts navigation systems 37 3,314 $876.6M

Guided missiles/space vehicles 2 4,270 $1,129.4M Not all Aerospace sectors are listed. Sales figures include overlap of companies in more than one sector.

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Source: Harris InfoSource Utah Manufacturing Report 2002

Source: Commission of the Future of the United States Aerospace Industry, U.S. Aerospace and Aviation Industry: A state-by-state analysis, October 2002

FIGURE 5 – Aerospace And Aviation Employment Concentration By State, By Employment Per 1,000 Workers: 2001

Rank State Employment per 1,000 workers

1 Washington 43.7 2 Kansas 43.3 3 Alaska 35.3 4 Arizona 30.7 5 Connecticut 27.5 6 Hawaii 24.2 7 Utah 22.3 8 Georgia 21.3 9 Kentucky 20.6

10 Texas 19.7

FIGURE 6 – 2001 Mean Annual Wage – Selected Aerospace Occupations

SOC Description Utah California Washington Texas Arizona 17-2011 AEROSPACE ENGINEERS $64,510 $73,650 $76,870 $68,680 $68,650 19-2032 MATERIALS SCIENTISTS $37,970 $59,480 $56,240 $70,630 $48,030 47-2211 ELECTRICIANS $38,950 $44,810 $46,370 $35,520 $36,690

49-9041 INDUSTRIAL MACHINERY MECHANICS $41,090 $43,240 $41,810 $37,780 $37,150

51-2023 ELECTROMECHANICAL EQUIPMENT ASSEMBLERS $25,470 $23,660 $26,130 $21,160 $38,640

51-4041 MACHINISTS $33,540 $31,720 $38,990 $29,500 $32,100 Source: Bureau of Labor Statistics Highlighted Aerospace Companies ATK ATK Alliant Techsystems, (which includes the Utah divisions ATK Thiokol Propulsion, ATK Composites, and Alliant Techsystems) is a $2.2 billion aerospace and defense company with strong positions in propulsion and composite structures. ATK Thiokol Propulsion manufactures the GEM family of boosters at its production facility in Magna, Utah. ATK Composites, Clearfield, Utah, manufactures the graphite epoxy cases for GEM-46 boosters. The lightweight, filament-wound cases are one-fifth the weight of steel.

ATK Thiokol Propulsion is the world’s leading supplier of solid-propellant rocket motors. Products manufactured by the company include propulsion systems for the Delta, Pegasus, Taurus, Athena, Atlas, H-IIA, and Titan IV B expendable space launch vehicles; NASA’s Space Shuttle; the Trident II Fleet Ballistic and the Minuteman III Intercontinental Ballistic Missile; and ground-based missile defense interceptors.

ATK Composites, the largest producer of filament-wound and fiber-placed structures in the U.S., has revolutionized the composites industry through 40 years of innovation and manufacturing excellence. The company produces structures for space launch vehicles, satellites, spacecraft, and commercial and military aircraft.

ATK Awarded $17.6 Million Contract for Rocket Motor Components In May of 2003, Boeing Air and Missile Defense Systems, Huntsville, Alabama, awarded Alliant Techsystems a $17.6 million contract to facilitate and qualify manufacturing processes for components of the Israeli Arrow II interceptor.

Boeing has teamed with ATK to build composite case and nozzle components. Specific components supplied by ATK include filament-wound, first-stage and second-stage rocket motor cases and electrical cabling; first-stage nozzle components and propellant materials; as well as a metallic skirt and interstage parts.

Managed by ATK Composites, Clearfield, Utah, manufacturing operations will be performed at the company’s Southern Composites Center in Iuka, Mississippi and Utah Composites Center in Clearfield.

ATK Powers Successful Launch of Pegasus Rocket In June of 2003, Alliant Techsystems solid propulsion and composite technologies supported the successful launch of an Orbital Sciences Corporation air-launched Pegasus rocket from Vandenberg Air Force Base, California. The Pegasus XL carried the OrbView-3 Earth-imaging satellite into space.

ATK’s Orion solid propulsion motors provided power for all three stages of the air-launch vehicle. The motors, which have flown on all Pegasus rockets since its first mission in 1990, are manufactured in Magna, Utah. The composite payload fairing, filament-wound solid rocket motor cases, and the interstage that form the Pegasus vehicle’s main structure were produced by ATK in Clearfield, Utah, while the composite bus structure of the satellite payload was fabricated at ATK’s San Diego facility.

Northrop Grumman Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, California. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding, and space technology. Northrop Grumman serves U.S. and international military, government, and commercial customers with approximately 120,000 employees and operations in all 50 states and 25 countries.

launcplanes

The future appears bright for Salt Lake City’s Northrop Grumman facility because of its involvement with Lockheed Martin in the F/A-22 Raptor jet fighter program. The heart of every Raptor is a Utah-built navigation system. The shoe box-sized “embedded GPS inertial navigation system” keeps the fighter’s onboard supercomputers oriented in space, allowing the plane to find its way, locate targets, and destroy them in any weather, day or night.

Utah Site of Future Spaceport Utah Spaceport Authority Act, passed during the most recentlegislative session, gave the Utah Department of Transportation(UDOT) authority to plan, construct, operate, and maintain aspaceport in Utah. The Act also called for the formation of theSpaceport Advisory Board to establish regulations for spaceportoperations, including oversight takeoffs and landings of spacecraft inthe state – if and when the spaceport is built.

Utah is one of a number of states, including Idaho, NewMexico, and Nevada, vying for the opportunity to build a vertical

h site and a 3.5 mile-long landing strip for reusable space. The proposed site for Utah’s spaceport is centered 34 miles

southwest of Milford in Beaver County’s Wah Wah Valley. “If Utahbuilds a spaceport it would be a big construction project, but wouldprovide tremendous technological, educational, and economicbenefits to the state and its aerospace industry,” said Frank J. Redd,Ph.D., deputy director of Utah State University’s Space DynamicsLaboratory (SDL), who was appointed by Gov. Mike Leavitt to theUtah’s Spaceport Advisory Board in 2001. Redd is one of sevenmembers of the newly formed group, each of whom will serve a four-year term.

Northrop Grumman has 1,230 employees in Utah with 577 in Electronics Systems in Salt Lake City; 21 in Integrated Systems in Ogden; 80 in Information Technology at Hill AFB, Titusville, and Salt Lake City; and 552 in Mission Systems at Hill AFB and Dugway.

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Moog Aircraft Group Moog’s Aircraft Group in Salt Lake City, Utah, designs and manufactures high-performance electrohydraulic, mechanical, and electronic control components and systems for a wide range of defense, aerospace, and industrial applications. For more than 50 years, Moog has been solving the industry’s toughest engineering challenges from the F-14 and Boeing’s 737 to this year’s F/A-18E/F and Joint Strike Fighter demonstrators. Moog was recognized in Fortune magazine’s inaugural list of “The 100 Best Companies to Work For” in America. Parker Hannifin Parker Hannifin’s Aerospace Group is the world’s leading producer of hydraulic, fuel, and pneumatic systems and components for the aerospace industry. For most of the last century, it has been designing and building equipment for virtually every aircraft and engine flying in the Western world. The Controls Systems (Commercial) Division of Parker Hannifin’s Aerospace Group is located in Ogden, Utah. Boeing Aerospace Boeing’s Utah plant, located just east of Salt Lake City International Airport, produces spare parts for the company’s previously built but out-of-production aircraft. Williams International Williams International is the world leader in the development and manufacture of small gas turbine engine technology. The privately owned company is headquartered in Walled Lake, Michigan. A second facility, located in Ogden, Utah, is dedicated to high-volume production and is the most modern and efficient gas turbine manufacturing facility in the world.

Gregg Williams, President of Williams International, announced in October 2002 that the major production facilities expansion at the Ogden Airport was nearing completion. It is part of a total company expansion program to take advantage of increasing sales that are resulting from the trend in aircraft travel away from airliners and large corporate jets to small jets. Williams recently opened the doors to a new 50,000-square-foot, ultra-modern, component manufacturing module as part of its quarter-million-square-foot Ogden, Utah, operation.

Rolls-Royce Part of the Rolls-Royce family since 1997, the Park City plant employs 270 people and works with a number of metal processing suppliers to produce integral parts for gear systems. Park City’s products, which help to power key Rolls-Royce engines such as the Industrial Trent and the AE 3007, include accessory drives, helicopter drive train components, radial drives, internal gears, and actuators. A full-service shop, the Park City plant provides design, manufacturing, and assembly, repair, and overhaul services. Klune Industries, Inc. Klune Industries, Inc. is a design, engineering, and manufacturing company. Klune manufactures metal products for customers in commercial and military aerospace and ground support arenas. Klune owns Accurate Laser International, a factory-within-a-factory, state-of-the-art job shop providing laser, clean cutting services, and laser welding services. Accurate Laser International offers advanced laser cutting capabilities for the aerospace, transportation, and high technology manufacturing industries. The Klune Spanish Fork plant has 160 employees, and one building totaling 160,000 square feet. UTAH’S TOP AEROSPACE COMPANIES

FIGURE 7 – Top Aerospace Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 ATK Alliant Techsystems 201 South Main Street, Suite 400 Salt Lake City, Utah 84111 www.thiokol.com

Mr. Jeff Foote Group Vice President (801) 251-5911

4,400 MANUFACTURER OF COMPOSITE ROCKET MOTOR CASES AND ROCKET BOOSTERS FOR THE SPACE INDUSTRY

2 Alcoa Industrial Components 15 West South Temple, Ste. 1600 Salt Lake City, Utah 84101 www.alcoa.com

Mr. L. Patrick Hassey President (801) 933-4000

2,500 Manufacturer of missile and rocket components

3

Parker Hannifin Corporation - Control Systems Division 1425 West 2675 North Ogden, Utah 84404 www.parker.com/csdc

Mr. Peter Dawson GENERAL MANAGER (801) 786-3000

750 Manufacturer of flight control systems

4

Northrop Grumman Navigation Systems Division 2211 West North Temple Salt Lake City, Utah 84116 www.ngnavsys.com

Mr. Sheridan Hammons Site Executive (801) 539-1200

650 DESIGNS, DEVELOPS AND MANUFACTURES NAVIGATION SYSTEMS

5

Moog Aircraft Group, Salt Lake Operation 2268 South 3270 West West Valley City, Utah 84119 www.moog.com

MR. KENNETH GUSS President & GM (801) 973-4300

450 Manufacturer of flight controls, missile controls, and service valves

6 Boeing Company, The 1215 North 2200 West Salt Lake City, Utah 84116 www.boeing.com

Mr. Al Egbert Plant Manager (801) 537-6402

400 Manufacturer of airplane products

6 Williams International 3450 Sam Williams Drive Ogden, Utah 84401 www.williams-int.com

Mr. Lloyd McCaffrey Vice President (801) 395-6500

400 Manufacturer of turbo jet engines

7 Kitco Inc./Wencor West 1625 North Mountain Springs Parkway Springville, Utah 84663 www.wencor.com

Mr. Brent Wood President (801) 489-2000

308 Manufacturer of airplane kits and parts

8 FMC Jetway Systems 1805 West 2550 South Ogden, Utah 84401 www.jetway.com

Mr. Don Mesecher General Manager (801) 627-6600

300 Manufacturer of passenger loading bridges

9 Rolls-Royce Gear Systems, Inc. 6125 Silver Creek Drive Park City, Utah 84068 www.rolls-roycegs.com

Ms. Roma Smith Manager (435) 649-1900

200 Marketing, engineering, manufacturing, and support of components and systems for aerospace power drive and actuation applications

9 Klune Industries, Inc. 1800 North 300 West Spanish Fork, Utah 84660 www.klune.com

Mr. William L. Durante Manager (801) 798-7401

200 Manufacturer of aerospace systems

10 Barnes Aerospace-Ogden Div. 1483 West 2550 South Ogden, Utah 84401 www.barnesaero.com

Mr. Steve Moore President (801) 621-8960

137 Manufacturer of airplane components

11

METALCRAFT TECHNOLOGIES, INC. 498 North 2774 West Cedar City, Utah 84720 www.metalcraft.net

Mr. David J. Grant President (435) 586-3871

100 MANUFACTURER OF COMPLEX STRUCTURAL COMPONENTS AND INTEGRATED ASSEMBLIES FOR COMMERCIAL AND DEFENSE AEROSPACE COMPANIES

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003

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AUTOMOTIVE AND TRANSPORTATION This Utah manufacturing segment includes Autoliv, the largest manufacturing employer in the state, with 4,500 employees. A large addition to Utah is the relocation of Detroit Diesel and its 400 employees from Houston, Texas. Nearly 75 percent of Utah’s automotive industry is in the auto parts sector (See Figures 8 and 9). FIGURE 8 – Utah Automotive and Transportation Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Auto manufacturers 4 38 $20.0M Auto parts manufacturing 119 6,823 $1,076.0M Motorcycles and other small engine vehicles manufacturing

23 522 $81.0M

Pleasure boats manufacturing 10 54 $10.7M

Rail and trucking equipment 23 999 $137.5M Recreational vehicles manufacturing 1 26 $2.5M

Shipbuilding related services 10 54 $10.7M Trucks, buses, and other vehicle manufacturing 29 609 $112.0M

Source: Harris InfoSource Utah Manufacturing Report 2002 FIGURE 9 – 2001 Mean Annual Wage – Selected Automotive and Transportation Occupations

SOC Description Utah California Washington Texas Arizona 17-2141 Mechanical engineers $59,550 $68,420 $62,510 $75,670 $63,570 47-2111 Electricians $38,950 $44,810 $46,370 $35,520 $36,690 51-2092 Team assemblers $21,410 $20,190 $23,350 $19,280 $19,900

51-4031 Cutting, punching, and press machine setters, operators, and tenders, metal and plastic

$22,890 $22,510 $26,480 $20,360 $20,240

51-4081 Multiple machine tool setters, operators, and tenders, metal and plastic

$26,400 $22,490 $25,490 $21,560 $26,410

51-9122 Painters, transportation equipment $27,670 $36,400 $36,210 $27,390 $31,130 Source: Bureau of Labor Statistics Highlighted Automotive and Transportation Companies Autoliv Utah’s largest manufacturer is Autoliv, which produces automobile air bags and air bag components. Autoliv’s Utah operation was formerly Morton International’s air bag division, which was founded in 1988. In 1997, Autoliv, a Swedish company, purchased Morton’s air bag operations for $750 million. Autoliv, the world’s largest producer of air bags, employs about 4,500 Utahans in plants in Ogden, Tremonton, Promontory, and Brigham City.

Two of Autoliv Inc.’s Utah facilities in Ogden and Brigham City have earned a 2003 Shingo Prize for Excellence in Manufacturing. The Shingo Prize is awarded to companies that have demonstrated achievements in manufacturing processes, quality enhancements, productivity improvement, and customer satisfaction. The Shingo Prize for Excellence in Manufacturing Program is sponsored by Utah State University. Autoliv was selected to receive the Prize, named after a Japanese industrial engineer known for improving manufacturing practices.

The prize, given to companies in North America, recognizes marked improvement in manufacturing operations. The prize focuses on lean manufacturing techniques and promotes world-class business performance through continuous improvements in core manufacturing and business processes. The honor, called by Business Week “the Nobel prize of manufacturing,” is open to manufacturers in the United States, Canada, and Mexico.

Detroit Diesel Corporation

Formerly a Penske company, Detroit Diesel Corp. relocated its MTU Detroit Diesel Remanufacturing facility from a 40,000-square-foot plant in Houston, Texas to Tooele, Utah, a city 70 miles west of Salt Lake City. Detroit Diesel spent $10 million to buy the Tooele Army Depot’s Consolidated Maintenance Facility, a sprawling, nearly new engine-refurbishing plant. The 400,000-square-foot facility, which sat empty for two years, had cost the Army about $112 million to build.

Most of MTU Detroit Diesel’s customers are located in the Western United States, making it expensive to deliver products from Houston, Texas, therefore, the need to consolidate in Utah stems from that fact. In July of 2000, the Detroit Diesel Corporation announced a $423 million merger with Germany-based DaimlerChrysler AG.

Utility Trailer Utility Trailer Manufacturing Company designs, engineers, builds, and services a complete line of trailers, including flatbeds, reefers, dry freight vans, and curtain-sided trailers. The company is America's largest, privately-owned trailer manufacturer and the fastest growing producer of dry freight vans in the nation with facilities located in Clearfield, Utah; City of Industry, California; Paragould, Arkansas; Enterprise, Alabama; and Marion, Virginia. The company built an additional state-of-the-art refrigerated trailer facility in Clearfield, Utah. Utah’s Top Automotive and Transportation Companies FIGURE 10 – Top Automotive and Transportation Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Autoliv ASP, Inc. 3350 Airport Road Ogden, Utah 84405 www.autoliv.com

Mr. Roger Tea Vice President, HR (801) 625-9200

4,500 MANUFACTURER OF MOTOR VEHICLE PARTS AND ACCESSORIES

2

Utility Trailer Manufacturing Company 111 South 1000 West Clearfield, Utah 84015 www.utilitytrailer.com

Mr. Steve Smith Chief Executive Officer (801) 525-4300

700 Manufacturer of semi trailer dry vans, flatbeds, and reefers

3 Autoliv Initiators, OEA 1360 North 1000 West Tremonton, Utah 84337 www.autoliv.com

Mr. Dario G. Brisighella General Manager (435) 257-1000

435 Manufacturer of motor vehicle parts and accessories

4

Detroit Diesel Remanufacturing West, Inc. P.O. Box 550 Tooele, Utah 84074 www.detroitdiesel.com

Mr. Jeb Berg Vice President & GM (435) 843-6000

400 RE-MANUFACTURER OF DIESEL ENGINES

5 Honeywell FRAM Filters Freeport Center Bldg. #C13 Clearfield, Utah 84001 www.honeywell.com

Mr. Michael Bartschat Plant Manager (801) 773-1148

300 Producer of automotive air & oil filters

6 Cummins Intermountain, Inc. P.O. Box 25428 Salt Lake City, Utah 84125 www.cummins.com

Mr. Lorin Pugh President & CEO (801) 355-6500

250 Coordinates sales and services for Cummins Diesel Engines

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7 Auto Meter Products, Inc. 350 West Center Street Pleasant Grove, Utah 84062 www.autometer.com

Ms. Erica Baxter Human Resource Manager (801) 785-0051

240 Manufacturer of automotive instruments

8 Atwood Mobile Products 1874 South Pioneer Road Salt Lake City, Utah 84104 www.atwoodmobile.com

Ms. Susan Knudsen Human Resource Manager (801) 972-4621

200 DESIGNS, DEVELOPS, AND MANUFACTURES EQUIPMENT FOR RECREATIONAL VEHICLES

9 Rayloc/GPC 500 East 700 North Payson, Utah 84651 www.rayloc.com

Mr. John Peterson Production Manager (801) 465-4841

188 Producer of auto parts

10 Six States Distributors, Inc. 247 West 1700 South Salt Lake City, Utah 84115 www.sixstates.com

Mr. Ralph Hafer President (801) 488-4666

175 Rebuilds transmissions, drivelines, and transfer cases

11 Wells Industries, Inc. 1741 West 2550 South Ogden, Utah 84402 www.wellscargo.com

Mr. Roger Shuman General Manager (801) 621-3637

150 Manufacturer of enclosed personal, commercial, and industrial trailers

11 Haulmark Industries of Utah 1650 North 1350 West Springville, Utah 84663 www.haulmark.com

Mr. Jerry Burcham General Manager (801) 377-8503

150 Manufacturer of enclosed utility trailers

12 Logan Coach, Inc. P.O. Box 746 Logan, Utah 84323 www.logancoach.com

Mr. Max Hales President (435) 742-7047

100 Manufacturer of horse and livestock trailers

12 TescoWilliamsen 1925 West Indiana Avenue Salt Lake City, Utah 84104 www.tescowilliamsen.com

Mr. Bill Brugger President (801) 973-9400

100 Manufacturer of truck bodies and trailers

13

International Armoring Corporation 2335 Lincoln Avenue Ogden, Utah 84401 www.armormax.com

Mr. Frank Ruiz Executive Vice President (801) 393-1075

70 Producer of armored bank trucks

14 Smith Detroit Diesel – Allison 3065 West California Avenue Salt Lake City, Utah 84104

Mr. Mike Smith President (801) 415-5000

20 Rebuilds diesel engines & transmissions

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003

CHEMICALS Utah’s chemical companies make the products and refine the raw materials that contribute to our high standard of living. From pharmaceuticals to cosmetics, soaps to plastics, all manner of industrial and construction products, materials produced by these firms improve health, make our food supply safe and abundant, and enable the manufacture of literally thousands of other products (See Figures 11 and 12).

Utah’s batch chemical manufacturers play a key role in the U.S. chemical industry, producing intermediates, specialty chemicals, and ingredients that are used to develop a wide range of commercial and consumer products. FIGURE 11 – Utah Chemicals Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Basic intermediate chemicals petrochemicals

54 2,647 $1,702.0M

Diversified chemicals 39 1,583 $492.5M Plastics fibers 9 464 $69.0M Specialty chemicals 37 845 $163.5M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed.

FIGURE 12 – 2001 Mean Annual Wage – Selected Chemical Occupations

SOC Description Utah California Washington Texas Arizona 17-2041 CHEMICAL ENGINEERS $64,720 $82,470 $75,170 $72,920 $64,150 19-4031 CHEMICAL TECHNICIANS $32,960 $33,520 $40,050 $41,930 $36,600

41-4011 SALES REPRESENTATIVES, WHOLESALE AND MANUFACTURING, TECHNICAL AND SCIENTIFIC PRODUCTS

$53,340 $65,470 $56,350 $50,760 $46,540

49-9042 MAINTENANCE AND REPAIR WORKERS, GENERAL $27,700 $30,190 $33,130 $24,060 $24,930

51-8091 CHEMICAL PLANT AND SYSTEM OPERATORS $34,460 $43,330 $46,690 $50,990 $31,550

51-9111 PACKAGING AND FILLING MACHINE OPERATORS AND TENDERS

$22,300 $18,530 $21,390 $18,580 $19,190

Source: Bureau of Labor Statistics Highlighted Chemical Companies Huntsman International Holdings LLC Huntsman, headquartered in Salt Lake City, is the world’s largest privately held chemical company. Huntsman’s operating companies manufacture basic products for a variety of global industries, including chemicals, automotive, footwear, high-tech, agriculture, health care, detergents, personal care, furniture, household appliances, and packaging. Originally known for pioneering innovations in packaging and, later, rapid and integrated growth in petrochemicals, Huntsman-held companies today have annual revenues of approximately $8 billion, more than 13,000 employees, and facilities in 44 countries.

Peter R. Huntsman, President and CEO of the Huntsman companies, announced in 2003 a business consolidation that brings together Huntsman’s Surface Sciences (surfactants, linear alkylbenzene, oxides, and glycols), Performance Chemicals (amines, carbonates, and gas treating chemicals), and Maleic Anhydride businesses under a new Performance Products Division. The businesses in the new Performance Products Division are responsible for more than 20 percent of Huntsman’s overall sales.

Headwaters Incorporated Headwaters, headquartered in South Jordan, Utah, is a world leader in providing technology and services that maximize the value of fossil fuels. The company is focused on providing services to energy companies, conversion of fossil fuels into alternative energy products, and generally adding value to energy. Headwaters generate revenue from managing coal combustion products (CCPs) and from licensing its innovative chemical technology to produce an alternative fuel. Through its CCP business and its solid alternative fuels business, the company earns a growing revenue stream that provides the capital needed to acquire and expand synergistic new business opportunities.

Revenue for the quarter ended June 30, 2003 was $106.4 million, an increase of 13 percent over a year ago, and with operating income of $21.8 million, an increase of 23 percent over a year ago. Chemical reagent sales increased 62 percent to $35.9 million as compared to $22.2 million in the second quarter of 2002.

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In June of 2002, Headwaters signed an agreement with China’s largest coal company to design and service a direct coal liquefaction plant in China that “will produce very clean gasoline” from China’s coal reserves. Headwaters set an ambitious goal of increasing earnings by at least 30 percent for fiscal 2003. Simplot Phosphate, LLC Simplot Phosphates produces phosphate fertilizers and finished feed phosphates that are sold as important nutritional supplements for livestock and poultry. Its process begins with phosphate rock mined at Vernal, Utah, the purest reserve of phosphate rock in North America. The ore is crushed, and then transported through a 96-mile underground pipeline to Rock Springs, Wyoming for manufacturing. Simplot Phosphates is owned and operated by Simplot, a Boise, Idaho-based company whose businesses include food processing, agricultural fertilizers, farming, and cattle feeding. AMPAC American Pacific Corporation (AMPAC) is an established leader in the specialty chemicals industry. Over the past two decades, AMPAC has been focused on the diversification and growth of its specialty chemicals business. Today, products manufactured by AMPAC are used in the aerospace industry, military and defense systems, the explosives industry, fire extinguishing systems, automotive airbag systems, the pharmaceuticals industry, and the environmental protection equipment industry. AMPAC’s corporate offices are located in Las Vegas, Nevada and its manufacturing facilities are located about 15 miles northwest of Cedar City, Utah. FIGURE 13 – Top Chemical Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1

Tesoro Refining & Marketing Company 474 West 900 North Salt Lake City, Utah 84103 www.tesoropetroleum.com

Rick Weyen, President, Mountain Region (801) 521-4813

450 REFINER OF CRUDE OIL AND SALE OF PETROLEUM FUELS

2 Hexcel Corporation 6700 West 5400 South Salt Lake City, Utah 84118 www.hexcelfibers.com

Tad Kinni, President (801) 252-3400 400

Manufacturer of fiber to be combined with virtually all thermoset and thermoplastic resin systems

3 IMC Kalium Ogden Corporation 765 North 1050 West Ogden, Utah 84404 www.imcglobal.com

Max Reynolds, General Manager (801) 731-3100

350 Manufacturer of inorganic chemicals

4 Presto Products 1110 East 200 South Lewiston, Utah 84320 www.prestoproducts.com

Rick Dockstader Plant Manager (435) 258-2431

310 Manufacturer of plastic bags

5 AMPAC 10622 West 6400 North Cedar City, Utah 84720 www.apfc.com

James Peveler President (435) 865-5000

250 MANUFACTURER OF INDUSTRIAL CHEMICALS

5 Chevron Products 2351 North 1100 West Salt Lake City, Utah 84116 www.chevron.com

Curtis Anderson Product Manager (801) 539-7200

250 Refiner of crude oils and other petroleum fuels

6 Morton Salt P.O. Box 506 Grantsville, Utah 84029 www.mortonsalt.com

James Huizinga General Manager (801) 250-6335

225 Producer of consumable, commercial, and chemical salt

7 Thatcher Company 1905 Fortune Road Salt Lake City, Utah 84104 www.tchem.com

Lawrence Thatcher Chief Executive Officer (801) 972-4587

200 MANUFACTURING, RESEARCH AND DEVELOPMENT, AND DISTRIBUTION OF CHEMICALS

8 Dyno Nobel, Inc. 50 South Main Street, 11th Floor Salt Lake City, Utah 84144 www.dynonobel.com

Mr. Peter Richards Chief Executive Officer (801) 364-4800

158 Manufacturer and distributor of commercial explosives

9 Flying J – Big West Oil, LLC 333 West Center Street North Salt Lake, Utah 84054 www.flyingj.com

Vince Memmott General Manager (801) 296-7700

150 Refiner of crude oils and other petroleum fuels

9

Simplot Phosphates 9401 North Highway 191 Vernal, Utah 84078 www.simplot.com/company/sf-phosphates.cfm

Sharon Wilkens Human Resource Mgr. (435) 789-7795

150 Phosphate mining and processing

10

Holly Refining & Marketing Company 393 South 800 West Woods Cross, Utah 84087 www.hollycorp.com

Mark Commons Controller (801) 299-6000

145 Refiner of crude oils and other petroleum fuels

11 Ensign-Bickford Company 8305 South Highway 6 Spanish Fork, Utah 84660 www.ebco-commercial.com

Peter Barnett General Manager (801) 798-2850

125 Producer of blast-initiation systems and specialty blasting products for mining, construction, oil, gas, and seismic exploration.

12 Cargill Salt, Inc. 15700 West Rowley Road Grantsville, Utah 84029 www.cargillsalt.com

Lyndon Jones Plant Manager (435) 884-0123

95 Producer of solar salt crystals for water-conditioning systems

13

Huntsman International Holdings 500 Huntsman Way Salt Lake City, Utah 84108 www.huntsman.com

Peter R. Huntsman, President & CEO (801) 584-5700

80

Corporate Headquarters (13,000 employees in 44 countries) Manufacturer of chemicals and plastics for automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, healthcare, consumer products, textile, furniture, appliance, and packaging industries

In 1989, the company designed and constructed a new state-of-the-art manufacturing facility, and

relocated its manufacturing operations to Utah. Today, AMPAC consists of two operating subsidiaries and four operating divisions.

One of the divisions is American Azide Corporation (AZIDE). AZIDE is the sole North American manufacturer of sodium azide, a primary chemical component of certain automotive airbag systems. Sodium azide is also used in certain pharmaceutical applications. AZIDE began producing sodium azide at its newly constructed plant in Utah in 1993.

Another division, Halotron (HALOTRON), established in 1991, manufactures Halotron I, a fire-extinguishing agent, at the company’s Southern Utah manufacturing facilities. Halotron I was developed as a replacement to ozone depleting halons that were once widely used in fire extinguishing systems.

A third division is Western Electrochemical (WECCO), formerly known as PEPCON until 1989 when the new manufacturing facilities were built in Southern Utah. WECCO has established itself as a leader in the world-wide production of ammonium perchlorate (AP) and other perchlorate chemicals and derivatives, and since 1998, is the only North American producer of AP. AP is the sole oxidizing agent for solid fuel rockets, booster motors, and missiles that are used in space exploration, commercial satellite transportation, and national defense programs.

Great Salt Lake Mineral Company Utilizing a production process activated by solar evaporation, the Great Salt Lake Mineral Company (GSL) removes valuable and naturally crystallized nutrients from two 20,000-acre ponds fed by the

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nutrient-rich brine of the Great Salt Lake. Powered by the rays of the sun, this solar-evaporation technique is unique to GSL and results in an incredibly pure dual nutrient that is high in K2O and low in chlorides. Sulfate of Potash (SOP) from GSL is so safe and natural that it is listed as an approved source for potassium and sulfur by many organic grower organizations.

GSL is owned by the Compass Minerals Group, the second largest North American producer of salt, the largest producer of salt in the United Kingdom and the largest North American producer of sulfate of potash, a specialty fertilizer. Compass Minerals Group is approximately 81% owned by Apollo Management L.P. and Company management. Hexcel Fibers Hexcel Fibers has two manufacturing facilities, one in Decatur, Alabama and the other in Salt Lake City, Utah. Its main sales office is located in Salt Lake City, with additional offices located in Redmond, Washington and Duxford, Cambridge, UK.

Hexcel is a global leader in development and production of Polyacrylonitrile (PAN)-based carbon fibers that address a wide variety of designers’ needs to balance strength, stiffness, weight, and cost. Applications for its carbon fibers include satellite components, launch vehicles, military and commercial aircraft, sporting goods, automotive materials, structural materials for bridges, and freeway column repairs. Utah’s Top Chemical Companies Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003 COMPUTER HARDWARE, ELECTRONICS, AND TELECOMMUNICATIONS With the continued evolution of this industry segment, computer hardware and electronics manufacturing firms have a need to migrate to locations with large concentrations of existing highly skilled labor, high quality communications infrastructure, and venture capital funding. Because more decision makers are becoming aware of Utah’s strength in these areas, and because companies situated in other locations are currently confronting costs pressures, many are now looking at Utah as an emerging technology location to “grow-out” their business.

High-technology industries and occupations are some of the fastest growing in the state of Utah (See Figure 14). The four high-tech manufacturing industry segments that produce the core ingredients of the information economy include; computers, computer peripherals, communications devices, and electronic component parts such as microprocessors and memory (See Figure 15). According to the Bureau of Labor Statistics these four industry segments contributed nearly one fifth of the increase in total national output over the past decade and are projected to account for 36 percent of the total increase in national output from 1998 to 2008.

Technological innovation characterizes these industry segments unlike any other, and drives much of the industry’s production. In consequence, higher skill levels are required for these industry segments than for manufacturing in general, with many of the lower skilled jobs being mechanized out of existence. The result is that some overseas manufacturing operations are being closed and more of the manufacturing, which now requires a higher order skill set, is being reestablished in Utah and the U.S. FIGURE 14 – Utah Computer Hardware, Electronics, and Telecommunications Sector Breakdown, 2002

Industry Sector Number of Firms Total Employment Estimated Sales Data storage devices 3 916 $25.2M Electronic computers 16 1,666 $608.2M Networking communication devices 45 5,281 $520.7M Printed circuit boards and connectors 22 2,482 $422.4M

Contract electronics manufacturing 110 5,481 $573.7M

Scientific and technical instruments 48 1,247 $124.5M Semiconductor 6 1,454 $330.0M Turbines, transformers, other electrical equipment 20 503 $90.2M

Cable TV satellite systems 6 1,763 $42.5M Communications processing equipment 29 2,208 $116.7M

Wireless/satellite/microwave communication equipment 46 4,259 $693.2M

Not all sectors are listed. Also, there are 36 firms involved in Electronic Research and Development – SIC 8731-06. Source: Harris InfoSource Utah Manufacturing Report 2002.

FIGURE 15 – 2001 Mean Annual Wage – Selected Computer Hardware, Electronics, and Telecommunications Occupations

SOC Description Utah California Washington Texas Arizona

17-2061 COMPUTER HARDWARE ENGINEERS $56,110 $82,420 $66,810 $65,240 N/A

17-2072 ELECTRONICS ENGINEERS, EXCEPT COMPUTER $63,260 $74,220 $61,570 $69,780 $68,6850

17-3023 ELECTRICAL AND ELECTRONIC ENGINEERING TECHNICIANS $39,190 $44,970 $46,630 $42,760 $36,130

41-4011 SALES REPRESENTATIVES, WHOLESALE AND MANUFACTURING, TECHNICAL AND SCIENTIFIC PRODUCTS

$53,340 $65,470 $56,350 $50,760 $46,540

51-2022 ELECTRICAL AND ELECTRONIC EQUIPMENT ASSEMBLERS $20,600 $22,650 $21,990 $21,460 $21,340

51-9061 INSPECTORS, TESTERS, SORTERS, SAMPLERS, AND WEIGHERS

$26,650 $24,900 $27,990 $26,380 $25,800

Source: Bureau of Labor Statistics Highlighted Computer Hardware, Electronics, and Telecommunications Companies Telecommunications MaxStream Orem, Utah-based MaxStream, Inc. announced in January 2003 its 9TXStream 900 MHz Wireless Transmitter Module was listed among EDN magazine’s Top 100 Products for 2002. This distinction for the 9TXStream comes after receiving a high level of response from among 134,000 US/Canada subscribers to EDN’s “by design engineers for design engineers” magazine.

In February 2003, MaxStream announced an agreement with the global distribution company, Future Electronics, Inc. allowing Future to distribute MaxStream wireless embedded modules and stand-alone radio modems throughout the world. Through this agreement, MaxStream extends its market reach as Future provides 24-hour, full-service, product marketing capability from 155 offices in 35 countries in The Americas, Europe, and Asia.

MaxStream is a worldwide developer of wireless modem networking for electronic devices. It currently provides wireless modem modules, stand-alone radio modems, RF design services, and supporting software. Products and services by MaxStream include designing, manufacturing, and supporting wireless communications for embedded systems. STSN STSN, Inc., the leading provider of wired and wireless high-speed Internet access at hotels and conference centers, announced in June of 2003 that it had deployed its 530th hotel property with high-

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speed Internet access. STSN also announced it has deployed Wi-Fi hot zones in 420 hotels and conference centers, exceeding its own expectations. STSN is based in Salt Lake City, Utah. NACT NACT, a division of Verso Technologies, is a leading manufacturer of next-generation VoIP network gateways and PSTN Class 4 Tandem switches, soft switches, and telecommunication billing systems. Since 1982, NACT has been the leading provider of complete switching solutions for telecommunication service providers. NACT designs all of the hardware and software components of the system, so each part is integrated and interoperable. In addition to its main facility in Provo, Utah, NACT maintains local offices in New York, Miami, and London. Networking FatPipe FatPipe’s core technology involves patented and patent-pending methods that enable high-speed data transfer through multiple lines, multiple ISPs, and backbones over wide area networks (WAN) with seamless re-assembly of data streams. FatPipe holds several patents for its security feature, MPSec, and for its Redundant Array of Inexpensive Lines (RAIL) technology, which bonds data lines over multiple ISPs and backbones without BGP programming.

Based in Salt Lake City, FatPipe is a venture capital funded company that markets its products worldwide through a network of authorized distributors and dealers. FatPipe enjoys partnerships and alliances with companies such as Citrix, Novell, AMD, Nortel Networks (Netgear), and Digi International. Helius Helius is the premier developer of satellite-powered Internet Protocol (IP) networks. The company’s routers and software enable efficient, secure and reliable delivery of broadband IP over satellite, broadband, and local area networks. Recent software developments include IPadlock, which broadcasts secure, confidential data in IP format to multiple recipients. IPadlock eliminates the need for expensive encryption hardware.

Lindon, Utah-based Helius has been a leader in the satellite IP solutions software arena since its inception in 1995. As a technology company with experienced and seasoned engineers and developers, Helius sees its current foundation of intellectual property as a springboard to further development and innovation.

In November of 2002, Helius announced its Helius Satellite Router v2, the first product of its kind to offer a full suite of video services including conversion of digital video broadcast to IP multicast in real-time, configurable video playlists, ad rotation, full-featured logging, video playback, video-on-demand, and electronic program guide. Wafer Processing Micron Technologies Micron owns a manufacturing facility in Lehi, Utah. Although this facility is designed for next-generation 300mm wafer processing, it is currently being used for product test only. Completion of the Lehi complex is dependent on market conditions. Micron is implementing a series of cost-reduction initiatives to further capitalize on the company’s aggressive migration to .11 micron manufacturing process technology. Starting its semiconductor test operation will help prepare the Lehi facility for wafer fabrication when the market demands it. Micron Technology and its subsidiaries manufacture and market memory chips (DRAMs), flash memory, other semiconductor components, personal computers, remote intelligent communications products, and printed circuit assemblies.

SiliconOptics Established in 1999 and based in Salt Lake City, SiliconOptics is an early stage fabless photonics company that will deliver optical components based on Photonic Band Gap (PBG) structures. SiliconOptics’ unique advantage is proprietary software technology that lets the company directly design optimal PBG structures for conventional semiconductor processes, such as Galium Arsenide (GaAs), CMOS, and Indium Phosphide (InP). Doing so lets SiliconOptics deliver dramatic price/performance and time to market improvements over conventional simulation approaches.

Photonic bandgap devices will revolutionize many markets in fiber optics, optical interconnections, and photonic lasers, and will be a critical enabler for optical computing and eventually quantum computing devices by combining optical functions with conventional electronics on a single chip at unprecedented cost/performance ratios. Computer Peripherals Iomega Corporation In August of 2003, Iomega, a global leader in data storage, announced working prototypes of its new Iomega Removable Rigid Disk (RRD) technology. With an expected native capacity of 35 gigabytes (70 gigabytes compressed) per cartridge at product launch, this product is now being evaluated by potential original equipment manufacturers (OEMs). Based on Iomega’s development schedule and product launch goals, server and desktop products incorporating the RRD drive are expected to be available for shipment in early 2004. Iomega’s Roy, Utah, manufacturing facility provides prototyping and engineering support. Cirque Corporation Cirque, based in Salt Lake City, is the leading provider of customized input technology solutions for both consumers and digital device manufacturers. The company’s award-winning GlideTechnology offers a broad range of input solutions to meet the needs of handheld devices, personal digital assistants, cell phones, laptop computers, industrial controls, and kiosks. Founded in 1991, Cirque remains dedicated to the research, development, and production of advanced input devices. Cirque’s touch technology has many applications including those found in industrial/manufacturing, corporate/desktop, kiosks, and mobile communications. I-O Corporation Since 1977, I-O Corporation has provided quality peripherals for the IBM midrange and mainframe markets. I-O Corporation customers are information system managers and end users who want high quality, IBM-compatible peripherals at a cost-effective price. I-O Corporation is based in Salt Lake City. Communication Equipment Level 3 Communication Systems – West Located in Salt Lake City, Utah, Level 3 is a leader in communication systems for intelligence collection, imagery processing, and satellite communications. Its presence in Utah dates back to 1957, when Communication Systems received an army contract for the integration and manufacturing of the Sergeant Missile. Electronics Fairchild Semiconductor – Advanced Power Management Group Fairchild’s Analog & Mixed Signal Group, based in West Jordan, Utah, outlined the company’s strategy to expand its power analog business 20 to 25 percent annually while continuing to increase gross margins over the next three years. Fairchild plans to grow organically by focusing its R&D efforts in key analog power products and driving design wins into their fastest growing end applications. These applications include offline conversion products targeting power supplies and consumer applications, power factor

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correction circuits targeting power supplies and lighting ballast end markets, switching and linear regulators targeting CPU power and ultraportables, and motor control devices targeting consumer optical storage.

Fairchild Semiconductor International is a multibillion-dollar semiconductor supplier for power, analog, and mixed signal, interface, logic, and opto-electronic applications. It ships about 10,000 unique products to more than 50,000 customers. These products are manufactured at its plants in Maine, Utah, Pennsylvania, and South Korea, as well as assembly facilities in Malaysia, the Philippines, and China worldwide. The company has approximately 10,000 employees.

EDO Corporation (Electro-Ceramic Products and Fiber Science) Since 1958, EDO Corporation’s Electro-Ceramic Products Business Unit, based in Salt Lake City, has provided ceramic based products for defense and aerospace applications including underwater acoustic transducers and arrays for navigation, and communication sonar’s for the United States Navy and its prime contractors, seismic and offshore oil exploration, industrial positioning and actuation, RF and microwave communications, and medical devices. For military forces and governments worldwide, EDO provides integrated front-line war fighting systems and components, remote sensors, information technology, and support systems and services.

With its communication and space products, EDO provides high-functional density, ultra-miniature electronic components, subsystems, and payloads for the remote sensing and communication industries. EDO antennas are furnished to the military, space, and commercial markets. EDO supplies a broad line of piezoelectric ceramic and advanced composite products for the communication, navigation, transportation, chemical, petrochemical, paper, and oil industries.

EDO Corporation’s Fiber Science Business Unit designs and produces advanced composite structures using the latest in filament winding, laminating, resin-transfer-molding, and autoclave cure processing. This division is located in a 100,000-square-foot, fully equipped facility in Salt Lake City. Its advanced facility encompasses complete design, tooling fabrication, inspection, testing, and product support operations.

EFI Electronics With over 20 years in the power quality business, EFI Electronics is the expert in electrical disturbances and has developed an extensive set of transient voltage surge suppression products engineered to protect sensitive electronics. Its devices protect computers, medical equipment, machinery, copy and fax machines, home entertainment systems, transmitter stations, and navigation equipment. The world headquarters for EFI is in Salt Lake City, Utah, with offices in Spain and Singapore. KWM KWM, based in West Jordan, Utah, has designed and manufactured high quality custom electronics for the commercial and medical markets since 1972. KWM’s engineering expertise in designing products to be manufactured economically has allowed it to excel and grow in today’s increasingly competitive electronics industry.

KWM provides engineering, drafting, and manufacturing under one roof. Its contract manufacturing services provides its customers with a cost effective alternative to in-house manufacturing. KWM has a 50,000-square-foot facility to accommodate the growth. CirTran Corporation CirTran, a full-service contract electronics manufacturer of printed circuit board assemblies, cables, and harnesses, announced in September of 2003 that it had received an order for its OptiCORE 100FX Fiber Optic PCI Fast Ethernet NIC family of products from the United States Air Force. The order was placed through CirTran’s wholly owned subsidiary, Racore Technology Corporation.

Racore Technology designs, develops, manufactures, and markets high performance local area network products with emphasis on fiber optics, Token-Ring, and 10/100 Ethernet technologies. Over the past fifteen years, Racore has developed extensive technology to provide high performance copper and fiber connectivity solutions linking LAN backbones to the desktop.

Founded in 1993, CirTran Corporation has established itself as a premier, full-service contract electronics manufacturer by building printed circuit board assemblies, cables, and harnesses. CirTran is headquartered in Salt Lake City, Utah with a state-of-the-art, 40,000-square-foot facility. CirTran also provides “just-in-time” inventory management techniques that minimize the OEM’s investment in component inventories, personnel, and related facilities, thereby reducing costs and ensuring speedy time-to-market.

Tyco Electronics Tyco has a 102,000-square-foot plant in Logan, Utah. The Tyco Electronics-Printed Circuit group is a producer of rigid printed circuits, and is the number one supplier of military and aerospace circuits in North America. The plant also manufactures PCB backplanes for companies in telecommunications, computer, industrial, medical, military, and aerospace industries. Compeq International Corporation To tap into the electronic consumer product market and serve its North American customers, Compeq established a 272,000-square-foot factory in Salt Lake City, Utah, in 1989. Compeq makes products for the telecommunications market (cellar phone, base station) and network equipment for computers (desktop, notebook, server). The company is the largest contract PCB manufacturer in Taiwan and is also ranked number six worldwide. Q Comm International Established in 1992 and based in Orem, Utah, Q Comm International provides proprietary prepaid transaction processing and information management systems that facilitate electronic recharge or distribution of prepaid products from service providers or their distributors to retail points of sale. In concert with its proprietary data center platform, Q Comm’s point-of-sale activation (POSA) terminal, Qxpress 200, is currently used by wireless carriers or mobile operators, telecom distributors, and various retailers to sell a wide range of prepaid products and services including prepaid wireless or prepaid mobile, prepaid phone cards, prepaid dial tone, prepaid Internet, and prepaid bank cards. Sonic Innovations The fastest-growing hearing aid company in the world, Sonic Innovations designs, develops, manufactures, and markets advanced digital hearing aids and hearing aid components. Capitalizing on its advanced understanding of human hearing, the company has developed patented digital signal processing (DSP) technologies and embedded them in the smallest single-chip DSP platform ever installed in a hearing aid. The company’s line of hearing aids includes the Natura, Altair, Tribute, Quartet, and Adesso brands. Net sales in the second quarter of 2002 were $17 million, up 50 percent from the second quarter 2001. Sonic Innovations is based in Salt Lake City. Harman Music Group Inc. Salt Lake City-based Harman Music Group designs, manufactures, and markets signal-processing equipment for professional musicians, recording studios, and sound system engineers. It markets its products under the brand names dbx, DigiTech, and DOD. Harman Music Group is a subsidiary of Harman International Industries. Harman Music Group is headquartered in Sandy, Utah, employs over 400 people, and ships to countries all over the world.

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Instrumentation & Measurement Campbell Scientific Campbell Scientific, based in Logan, Utah, manufactures dataloggers, data acquisition systems, and measurement and control products used worldwide in research and industry. Its instrumentation is known for its flexibility, precision measurements, and dependability – even in harsh, remote environments. Products include dataloggers, weather station networks, hydrologic gauging stations, and data recorders for automotive testing. Larson Davis Larson Davis, based in Provo, Utah, is a leading manufacturer of precision instrumentation for the measurement and analysis of sound and vibration. Its products include measurement microphones, accelerometers, sound level meters, frequency analyzers, systems for environmental noise monitoring, and audiometer calibration. Radix Radix International Corporation is based in Salt Lake City, Utah. Its products have been used in the meter reading and utility management field for over 30 years. Mission critical field data collection applications, route accounting and sales order entry duties, and transport and logistics can all benefit from the use of Radix’s mobile computing technology. The company has product applications in areas such as inventory, goods verification, scheduling, goods delivery and receipt, and vehicle tracking and location. Radix is a mobile computing solution provider for demanding environments, with technical expertise in the design and manufacture of sophisticated yet durable and reliable mobile computers. Featuring Windows CE .NET 4.2 and PC Card support including 802.11b wireless LAN, GPRS/GSM/CDPD, and BlueTooth, the FW700 is the perfect tool for many applications including, parking enforcement, utilities, route accounting, transport, logistics and distribution, and inspection and maintenance. Auto Meter Auto Meter has its OEM headquarters in Pleasant Grove, Utah. In Ephraim, Utah the company manufactures hand-held battery testers, starter draw testers, alternator output and diode testers, starting and charging system analyzers, voltage drop testers, and automated battery chargers for the automotive industry. Visualization Systems Evans & Sutherland In May 2003, Evans & Sutherland Computer Corporation (E&S) announced that the Emirates, one of the fastest growing airlines in the world, has selected an E&S EP-1000CT visual system to upgrade its B777-200 full-flight simulator. This is the third E&S visual system purchased by Emirates since 1997 and will be installed at its training center in Dubai later this year.

E&S, based in Salt Lake City, supplies the world’s most widely used visual systems for commercial full-flight simulators. The company’s visual systems support the full range of commercial aircraft and are compatible with flight simulators from all major manufacturers. E&S products have been developed to meet the statutory requirements of the world’s civil aviation authorities and have established a reputation for both quality and reliability. E&S produces professional hardware and software to create highly realistic visual images for simulation, training, engineering, and other applications throughout the world. E&S visual systems are used in both military and commercial systems, as well as planetariums and interactive theaters.

Supercomputers – Clustering Linux Networx In September of 2002 the Los Alamos National Laboratory selected Linux Networx of Salt Lake City, Utah, to build, integrate and deliver a 1,024-processor Linux cluster computer. Dubbed “The Science Appliance” by the Laboratory’s researchers, the cluster is a model for future supercomputing systems that will support the Laboratory’s mission of stewardship of the nation’s nuclear weapons stockpile. When delivered, the cluster was one of the five fastest supercomputers in the world at 10 trillion operations per second.

With the use of cluster computer technology, a method of linking multiple computers through high-speed networks to form a single and more powerful system, Linux Networx provides solutions for companies with high computing needs, including ISPs, ASPs, research, industry, government, and other technological fields. To date, the company has built some of the largest cluster systems in the world and has developed unique hardware and versatile software to facilitate overall system management. Linux Networx has offices in Utah, California, Illinois, and Texas with various international distribution outlets.

Other industries using Linux Networx’ products and services are traditional high-end research, scientific, and government markets including seismic exploration (oil and gas), fluid dynamics, and pharmaceutical research (molecular and chemical modeling) facilities. All customers in these industries share common needs for large amounts of data computation, data handling and/or storage; high levels of reliability; flexible scale of operations; and high-speed communication. Medical Electronics GE Medical Systems Surgeons at Utah Valley Regional Medical Center recently used locally developed medical imaging technology to assist them during heart surgery. An abdominal aortic aneurysm (AAA) procedure is required once a surgeon has diagnosed an abnormality in the aortic arteries that lead to a patient’s heart.

As part of the AAA surgery, the surgeon used a GE Medical Systems’ OEC 9800 vascular mobile imaging system to help navigate the placement of an endoscope. The 9800, developed at GE Medical Systems OEC in Salt Lake City, have helped improve outcomes for hospitals and patients.

Patients undergoing these types of procedures would be looking at an eight to twelve day hospital stay followed by a lengthy recovery period. With the vascular mobile imaging system, patients are going home within one day and are returning to the normal activities that they enjoy.

GE Medical Systems is an $8 billion global leader in medical imaging, interventional procedures, healthcare services, and information technology. Its offerings include networking and productivity tools, clinical information systems, patient monitoring systems, surgery and vascular imaging, conventional and digital X-ray, computed tomography, electron beam tomography, magnetic resonance, ultrasound and bone mineral densitometry, positron emission tomography, nuclear medicine, and a comprehensive portfolio of clinical and business services. Production Infrastructure – Key Resources Modus Media Modus Media International, Inc. (MMI) with facilities in Salt Lake City and Lindon, Utah, is a global provider of supply chain management solutions to leading technology companies. With 21 facilities in 13 countries, MMI delivers a full range of integrated services including software manufacturing, product assembly, on-demand manufacturing, multi-channel fulfillment, financial management services, and reverse logistics. For the third time in four years, Business Week magazine recently named MMI as one of the “Top Ten Private InfoTech Companies” in the United States. MMI has received numerous awards

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TER. Among the services

ded are kitting and assembly,nd manufacturing diskette

for its supply chain performance from key clients, including Sun Microsystems and Intuit, Inc. The Supply Chain Council for Technology Excellence recently recognized its proprietary Supply Chain Conditioning and Execution Process. Clients such as Adobe, Cisco, Dell, Intuit, Microsoft, Network Associates, Sony, Sun, and hundreds of others depend on MMI for a wide array of supply chain services, including: e-Commerce services Financial management Product assembly Multi-channel fulfillment Reverse logistics Customer care Reporting and analysis

iAccess.com In October 2002, iAccess merged with the Washington-based replicator, OptiDisc Solutions. Together, the merged company has expanded its capacity and combined its services to become the only replicator that provides all the services in-house – mastering, replication, and fulfillment of CDs, DVDs, and shaped CDs. In 1999, iAccess created and patented the revolutionary CDCard, a molded mini disc in the shape of a business card. Using its exclusive molding technology, it is able to mold – rather than cut – shaped CDs, thus eliminating the cracked edges and poor performance common in CDs. Utah’s Top Computer Hardware, Electronics, and Telecommunications Companies FIGURE 16 – Top Computer Hardware, Electronics, and Telecommunication Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 L-3 Communications P.O. Box 16850 Salt Lake City, Utah 84116 www.l-3com.com

Mr. John Hill Human Resource Manager (801) 594-2000

1,700 Manufacturer of communication systems and products

2 Modus Media International 500 South 500 West Lindon, Utah 84042 www.modusmedia.com

Mr. Bob Zelis General Manager (801) 431-5000

920 Manufacturer of magnetic and optical recording media

3

Evans & Sutherland Computer Corporation 600 Komas Drive Salt Lake City, Utah 84108 www.es.com

Mr. James Oyler President & CEO (*01) 588-1000

550 Manufacturer and designer of computer graphics systems

4 Fairchild Semiconductor 333 West 9000 South West Jordan, Utah 84088 www.fairchildsemi.com

Mr. Erv Logan Plant Manager (801) 562-7539

500 Manufacturer of semiconductor devices

4 Unisys Corporation P.O. Box 16800 Salt Lake City, Utah 84116 www.unisys.com

Mr. Bill Greg Manager (801) 594-5000

500 Producer of Unixware operating systems and developer of communications products

5 Micron Technology, Inc. 1550 East 3400 North Lehi, Utah 84043 www.micron.com

Mr. Harold Killgroe General Manager 400 Semiconductor manufacturing and testing

facility

5

Tyco Electronics - Logan Division 710 North 600 West Logan, Utah 84321 www.tycoint.com

Mr. Michael Bolan General Manager (435) 753-4700

400 Manufacturer of commercial printed circuit board fabrication

5 Harman Music Group 8760 South Sandy Parkway Sandy, Utah 84070 www.harmanmusicgroup.com

Mr. Rob Urry President (801) 566-8800

400 Manufacturer of audio electronics

6 Iomega Corporation 1821 West Iomega Way Roy, Utah 84067 www.iomega.com

Mr. Reed Brown Manager (801) 332-1000

380 Manufacturer of computer storage products

7

Compeq International Corporation 620 North John Glenn Road Salt Lake City, Utah 84116 www.compeq.com

Mr. W.C. Chang Chairman & CEO (801) 990-2000

375 Manufacturer of circuit boards

8 Young Electric Sign Company 2401 Foothill Drive Salt Lake City, Utah 84109 www.yesco.com

Mr. Michael T. Young President (801) 464-4600

300 Manufacturer and designer of custom signs

9 EDO Corporation 2645 South 300 West Salt Lake City, Utah 84115 www.edoceramic.com

Mr. Gary Springfield Vice President (801) 486-7481

250 Manufacturer of piezoelectric ceramic based products and naval transducers and arrays

10 ClearOne Communications 1825 Research Way Salt Lake City, Utah 84119 www.clearone.com

Mr. Michael D. Keough Chief Executive Officer (801) 975-7200

240 Manufacturer of multimedia conferencing products and services

11 Campbell Scientific, Inc. 815 West 1800 North Logan, Utah 84321 www.campbellsci.com

Mr. Paul Campbell Chief Executive Officer (435) 753-2342

200 Manufacturer of data acquisition systems

12 Cirque Corporation 2463 South 2850 West, Suite A Salt Lake City, Utah 84120 www.cirque.com

Mr. Richard Clasen President & CEO (801) 467-1100

175 Developer of customized input technology solutions for the consumer market and digital device manufacturers

13

IBM-International Business Machines 420 East South Temple, 5th Floor Salt Lake City, Utah 84111 www.ibm.com

Mr. David Asay Manager (801) 328-6653

165 Manufacturer and provider of computers, information systems, and software services

14

Thomson Multimedia Broadcast Solutions 2300 South Decker Lake Lane Salt Lake City, Utah 84119 www.thomson.net

Mr. Joop Jensen Chief Executive Officer (801) 972-8000

150 Manufacturer of television broadcasting equipment

15 Wolf Electronix 1176 South 1480 West Orem, Utah 84058 www.wolfelectronix.com

Mr. Jim Trent, Jr President (801) 802-7700

145 Manufacturer of printed circuit boards

16 Video-Matic Group 2470 South Redwood Road Salt Lake City, Utah 84119 www.video-matic.com

Mr. Ken Rasmussen President (801) 975-1116

140 VIDEO, AUDIO CASSETTE, CD, AND COMPUTER SOFTWARE DUPLICATION

17 EFI Electronics Corporation 1751 South 4800 West Salt Lake City, Utah 84104 www.efinet.com

Mr. Kenneth Spencer Human Resource Director (801) 977-9009

130 Manufacturer of transient voltage surge suppression (TVSS) products

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18 CDI Media 2323 South 3600 West Salt Lake City, Utah 84119 www.cdmedia.com

Mr. Don Stone Vice President, Operations Manager (801) 977-0077

125 Computer software, audio, video duplication

19 NACT Telecommunications Inc. 191 West 5200 North Provo, Utah 84604 www.nact.com

Ms. A. Lindsay Wallace Chief Executive Officer (801) 802-3000

114 Manufacturer of integrated switching and billing systems for specialty telecommunications applications

20 Reid Ashman Mfg., Inc. 582 North 3050 East St. George, Utah 84790 www.reidashman.com

Mr. Steve Reid President (435) 986-6000

100 Manufacturer of semiconductor manipulators

20

Salt Lake Cable and Harness, Inc. 421 West 900 North North Salt Lake, Utah 84054 www.saltlakecable.com

Mr. Loren East President (801) 292-4999

100 Manufacturer of cable

20

Companion Systems Design & Manufacturing 645 West 200 North North Salt Lake, Utah 84045 www.companionsystems.com

Ms. Amy Burks Marketing Manager (801) 936-8082

100 Manufacturer of enclosures for electronic self service products

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003. Electronic manufacturers of biomedical equipment can be found in the EDCU Biotechnology Industry Profile. CONSUMER GOODS (APPAREL, FURNITURE, SPORTING GOODS) This industry segment represents 15 percent of the manufacturing firms and 15 percent of the manufacturing employment in Utah (See Figure 17 and 18). The fastest growing sectors are personal care products, and outdoor and sporting goods. FIGURE 17 – Utah Consumer Goods Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Apparel – Clothing and Footwear 81 2,120 $163.2M Business Forms Supplies 33 2,362 $409.0M Cleaning Products 24 1,099 $342.0M Home Furnishings 105 3,762 $303.2M Miscellaneous Consumer Goods 86 3,348 $370.5M Office and Business Furniture 77 1,683 $174.5M Personal Care Products 17 1,073 $396.0M Sporting Goods 69 7,465 $319.7M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed. FIGURE 18 – 2001 Mean Annual Wage – Selected Consumer Goods Occupations

SOC Description Utah California Washington Texas Arizona

41-4012

SALES REPRESENTATIVES, WHOLESALE AND MANUFACTURING, EXCEPT TECHNICAL AND SCIENTIFIC PRODUCTS

$41,330 $43,790 $41,770 $38,910 $35,500

51-2092 TEAM ASSEMBLERS $21,410 $20,190 $23,350 $19,280 $19,900

51-4031 CUTTING, PUNCHING, AND PRESS MACHINE SETTERS, OPERATORS, AND TENDERS, METAL AND PLASTIC

$22,890 $22,510 $26,480 $20,360 $20,240

51-4072 MOLDING, COREMAKING, AND CASTING MACHINE SETTERS, OPERATORS, AND TENDERS, METAL AND PLASTIC

$21,460 $17,640 $24,040 $18,180 $20,760

51-6062 TEXTILE CUTTING MACHINE SETTERS, OPERATORS, AND TENDERS

$18,510 $16,530 $22,470 $17,970 N/A

51-9111 PACKAGING AND FILLING MACHINE OPERATORS AND TENDERS

$22,300 $18,530 $21,390 $18,580 $19,190

Source: Bureau of Labor Statistics Highlighted Consumer Goods Companies ICON Health & Fitness With over 4,200 employees and 11 locations around the globe, ICON Health & Fitness is the largest manufacturer and marketer of home fitness equipment worldwide. As one of the first U.S. fitness companies to venture into the international arena, ICON has facilities located in China, Europe, Canada, and the United States. Each year ICON produces 3.9 million units of quality fitness equipment. ICON headquarters and main manufacturing are based in Logan, Utah. Grand Prix Apparel Grand Prix Apparel and Accessories, Inc. announced a relocation of its manufacturing division to Lindon, Utah in August 2002. The apparel and accessories manufacturing company had been operating for 11 years in Southern California. Its customers are major organizations such as Kawasaki Motor Corporation, Yamaha Motor Corporation, Ferrari North America, Lucent Technologies, Fox Racing, and Harley Davidson. “Our company’s manufacturing base could be located in any number of cities,” said Sergio R. Calvo, president and CEO of Grand Prix. “We chose Utah for its hospitable and family-oriented environment. I wanted to offer a better lifestyle and environment to my family and employees.” Black Diamond Equipment Black Diamond Equipment Ltd. is an employee-owned manufacturer of equipment for rock climbing, alpinism, and backcountry skiing. Black Diamond’s family of brands includes Ascension, Beal Ropes, Bibler Tents, Franklin Climbing Equipment, and SCARPA Footwear.

In June of 2003, Salt Lake City-based Black Diamond received three Editor’s Choice Awards for new products for the 2003-climbing season. The winners include the new SCARPA Marathon rock shoe and Black Diamond ATC-XP variable friction belay device from Climbing magazine; and Editor’s Choice for Best Value from Rock & Ice for the SCARPA Eclipse rock shoe. Because it is located at the base of the Wasatch Mountains in Utah, on the same day it can test an ice tool concept on the Scruffy Band, ride tele prototypes in the Cottonwood Canyons, and torque a shoe design on granite.

Easton Sports Jas. D. Easton, Inc., is a privately owned manufacturer, marketer, and distributor of sporting equipment, headquartered in Van Nuys, California. It currently employs more than 1,000 people worldwide in various distribution, manufacturing, sales, and marketing capacities. Other operations are located in Salt Lake City, Utah; Mexico; and Canada. Easton Sports is a privately owned developer, manufacturer, marketer, and distributor of sports equipment. It manufactures equipment for archery, baseball, softball, hockey, and bicycle components.

The plant in Salt Lake City, Utah, home of Easton Technical Products, manufactures the world’s most accurate arrow shafts and a new carbon arrow called CarbonAeros, continuing Easton’s legendary high standards of quality and performance.

Easton Sports distribution center is also in Salt Lake City. In December of 1987, Easton opened an automated warehouse in Salt Lake City to distribute its line of hockey gear, baseball bats, and other

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sports equipment. It was a noteworthy achievement featuring extensive use of conveyors and a sophisticated tilt tray sorter. However, By 2001, Easton needed to alter its processes to fit changing customer requirements.

Older methods were no longer the most cost-effective way to meet the distribution challenge of shipping larger volumes to fewer destinations. This included products for big name customers, such as Wal-Mart, Target, and The Sports Authority. In 2001, Easton ripped out the tilt tray system and most of the conveyor. It moved to a new warehouse management system and went from batch picking to pick-to-order for most processing.

The results of the moves have been impressive. Productivity has raised an average of 14 percent, as measured per man-hour, and Easton expects to save $208,000 in labor costs in 2002 alone. The company’s biggest seasons are in the early part of the year. During January, February, and March, daily throughputs can double at the Salt Lake City distribution center.

Half of the products received in Salt Lake City are manufactured at Easton plants. Archery equipment is made at a factory across the street from the distribution center. Softball and baseball bats are manufactured in California, and hockey sticks are made in plants in Vermont and Mexico. Lifetime Products Established in 1986, Lifetime Products is a privately held company headquartered in Clearfield, Utah. Lifetime manufactures high-impact polyethylene folding tables, chairs, and picnic tables, as well as state-of-the-art basketball equipment. Lifetime has 1,600 employees. The company started with humble beginnings in the owner’s garage. Today, it is the world’s largest manufacturer of residential basketball equipment, and the world’s largest manufacturer of polyethylene top tables. Lifetime has grown to include a 1.3-million-square-foot facility located in the Freeport Center in Clearfield. Utah’s Top Consumer Goods Companies FIGURE 19 – Top Consumer Goods Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Icon Health & Fitness, Inc. 1500 South 1000 West Logan, Utah 84321 www.iconfitness.com

Mr. Scott Waterson Chief Executive Officer (435) 750-5000

3,000 MANUFACTURER OF HOME FITNESS EQUIPMENT

2

Lifetime Products, Inc. P.O. Box 160010 Freeport Circle Bldg. D11 Clearfield, Utah 84016 www.lifetime.com

Mr. Barry Mower Chief Executive Officer (801) 776-1532

1,600 Manufacturer of sporting goods and outdoor furniture

3 La-Z-Boy, Utah 350 West 1000 North Tremonton, Utah 84337 www.lzb.com

Mr. Jerry Garren Vice President (801) 486-7431

1,100 Manufacturer of upholstered furniture

4 Huish Detergents 3540 West 1987 South Salt Lake City, Utah 84104 www.huish.com

Dan Huish President (801) 975-3100

975 Supplier of private label detergents and cleaning products

5 Levolor Kirsch 1330 West 3300 South Ogden, Utah 84401 www.levelor.com

Mr. Scott Petersen Plant Manager (801) 627-2450

400 Manufacturer of drapery hardware, window blinds, and shades

5 AMSCO Windows 1880 South 1045 West Salt Lake City, Utah 84104 www.amscowindows.com

Mr. R.P. Rasmussen President (801) 568-8900

400 Manufacturer of windows

6 Easton Technical Products, Inc. 5040 West Harold Gatty Drive Salt Lake City, Utah 84116 www.eastonarchery.com

Mr. Greg Easton President (801) 539-1400

320 Manufacturer of aluminum and carbon sports equipment, specializing in archery equipment

7 Hunter Douglas Fabrications 4282 South 590 West Salt Lake City, Utah 84123 www.hunterdouglas.com

Mr. Rick Mecham Manager (801) 261-4262

300 Manufacturer of window blinds, shades, and draperies

8 Mity-Lite Inc. 1301 West 400 North Orem, Utah 84057 www.mitylite.com

Mr. Bradley Nielsen Chief Executive Officer (801) 224-0589

250 MANUFACTURER OF PUBLIC BUILDING AND RELATED FURNITURE

8

D F G, Inc. Bldg. D-12 Freeport Circle P.O. Box 160217 Clearfield, Utah 84016-0217 Website: N/A

Mr. Bill Scott President (801) 773-4180

250 Manufacturer and distributor of sunglasses, ski goggles, masks, sporting goods

9 Black Diamond Equipment Ltd. 2084 East 3900 South Salt Lake City, Utah 84124 www.blackdiamondequipment.com

Mr. Peter Metcalf President & CEO (801) 278-5552

200 Manufacturer of rock-climbing gear

10 Hoyt USA Inc. 543 North Neil Armstrong Road Salt Lake City, Utah 84116 www.hoytusa.com

Mr. Randy Walk President (801) 486-4611

150 Manufacturer of compound and recurve bows and accessories

10 Osborn Apparel, Inc. 7081 West 3500 South West Valley City, Utah 84128 www.cobblestones.com

Mr. Mark Osborn General Manager (801) 250-1865

150 Manufacturer of sportswear

10 Browning One Browning Place Morgan, Utah 84050 www.browning.com

Mr. Don Gobel President (801) 876-2711

150 Manufacturer of firearms

10 RT Manufacturing 1186 Industrial Park Drive Orem, Utah 84057 www.rumbletuff.com

Mr. Brad Peay President (801) 226-2648

150 Manufacturer of children’s furniture

11 Action Target, Inc. 1281 West 2200 North Provo, Utah 84601 www.actarg.com

Mr. John Curtis General Manager (801) 377-8033

125 Manufacturer of shooting range and firearms training equipment

12 E K Ekcessories, Inc. 575 West 3200 South Logan, Utah 84321 www.ekusa.com

Mr. Randall Anderson Chief Operating Officer (435) 753-8448

100 Manufacturer of sports and athletic equipment, Including rock climbing gear

12 Sport Court, Inc. 939 South 700 West Salt Lake City, Utah 84104 www.sportcourt.com

Mr. Mike Fenerty President (801) 972-0260

100 Manufacturer of surfaces and sport flooring products, including putting greens, basketball and tennis courts

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003 FOOD PROCESSING The food processing and beverage industry accounts for about one-sixth of the U.S. manufacturing industry’s activity according to the U.S. Department of Agriculture, but has undergone significant reorganization as profits have fallen. Processors continue to reduce costs through restructuring and expansion while also developing more value-added products. According to statistics compiled by The Food Institute, merger activity in the food industry has quieted considerably during the first half of 2002 after a period of consolidation. The Elmwood Park,

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New Jersey, organization tracked just 219 deals, a 26 percent drop from a year ago and 37 percent below the first half of 2000. Figure 20 shows a breakdown of Utah’s food processing industry. FIGURE 20 – Utah Food Processing Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Agriculture / biotechnology 36 3,391 1,306.0M Canned and frozen food 20 1,308 332.0M Dairy products 35 2,762 1,088.2M Grain, breads, cereals 54 3,298 445.0M Meat products 47 2,482 489.0M Sugar confectionary 24 1,091 154.0M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed. Utah Food Processing Strategy and Trends When food industry companies decide to relocate or expand, site size, configuration, and topography are strengths in Utah, as are energy rates, which are given extra consideration due to the heavy loads required to power cold docks and refrigeration units. Rail access and proximity to trucking routes, along with timing of inbound and outbound trucking volume, are part of Utah’s equation, also. Local economic incentives and available labor are other major factors.

The food-processing industry is fiercely competitive, where constant innovation is the norm. Given the constantly changing taste of the American consumer, there’s a growing need for companies to be agile and lean. It is a requirement that is reflected in the food processors’ facility management and site selection strategies. Logistics considerations are particularly crucial in the food processing industry, since perishable factor in moving raw materials to processing plants and in transporting finished goods to market. Proximity to markets is still a bigger factor in the food processing industry than in most types of manufacturing, and is the reason why Utah is a great location.

Another major trend affecting the industry is the growth of so-called “value-added” foods, as producers – farmers and ranchers – become more involved in processing and marketing finished products. Microwaveable beef and pre-marinated chicken wings are two examples popular with consumers. For producers, the process of adding value helps reduce the impact of fluctuating commodity prices. Thus, a new strategy for Utah food manufacturers is to get out of the commodity business and generate demand for value-added products.

Figure 21 makes a comparison of wages in the food processing industry across several western states. FIGURE 21 – 2001 Mean Annual Wage – Selected Food Processing Occupations

SOC Description Utah California Washington Texas Arizona

17-3026 INDUSTRIAL ENGINEERING TECHNICIANS $37,990 $44,200 $52,190 $41,860 $41,940

19-1010 AGRICULTURAL AND FOOD SCIENTISTS $37,510 $53,010 $51,020 $43,070 $46,040

19-4011 AGRICULTURAL AND FOOD SCIENCE TECHNICIANS $26,880 $25,020 $32,390 $28,280 N/A

51-9061 INSPECTORS, TESTERS, SORTERS, SAMPLERS, AND WEIGHERS

$26,650 $24,900 $27,990 $26,380 $25,800

51-9111 PACKAGING AND FILLING MACHINE OPERATORS AND TENDERS

$22,300 $18,530 $21,390 $18,580 $19,190

53-7064 PACKERS AND PACKAGERS, HAND $14,770 $15,870 $16,4905 $15,020 $13,900

Source: Bureau of Labor Statistics

Highlighted Food Processing Companies Malt-O-Meal

Minneapolis-based Malt-O-Meal Co. announced in July of 2003 plans to hire as many as 250 people over five years to produce bagged cereals at its Tremonton, Utah plant. The end of 2003 will add 100 more jobs. Moroni Feed Company Moroni Feed Company, headquartered in the community of Moroni, Utah, is a fully-integrated, turkey producing and processing cooperative, and is a key member of the Norbest, Inc. turkey marketing cooperative that markets all of Moroni Feed’s turkeys and turkey products worldwide. The 64 independent turkey producer-members of the co-op. Incorporated raise all of Utah’s five million commercially grown turkeys in 1938, Moroni Feed Company had gross sales in excess of $125 million in 2002. In addition to the independent growers and their employees, Moroni Feed has 850 employees, with an annual payroll of over $10 million. Full integration of the cooperative is reflected in Moroni Feed’s organizational structure: Breeder Division: Six breeder farms located in Sanpete, Juab, Sevier, and Washington counties, as

well as in Orosi, California. Hatchery Division: Located in Moroni, this facility hatches over five million turkey eggs annually. Feed Division: The feed mill operations mix and deliver over 150,000 tons of feed per year. Nutrimulch Division: This operation produces and sells over 45,000 yards per year of nutrient-rich

soil conditioner made from recycled turkey litter. Processing Division: The huge turkey processing plant in Moroni is a state-of-the-art facility

processing millions of pounds of Norbest whole turkeys and other turkey products. Further Processing Division: This plant, located in Salina, Utah, produces Norbest cooked, smoked,

and roasted products, including smoked turkeys, deli breasts, turkey ham, pastrami, and other lunchmeats.

Cargill Flour and Pepperidge Farm When flour is finished being milled at a Cargill plant in Ogden, Utah, it is on its way to becoming garlic bread, goldfish crackers, and cookies at Pepperidge Farm, one of the premier names in baked goods in the United States. The Richmond, Utah plant for Pepperidge Farm uses 100 percent Cargill flour. Cargill Flour Milling has been the sole supplier to Pepperidge Farm for about eight years. “We earned that status because we assured Pepperidge that we would get them flour on demand and we wouldn’t let them run out,” said Ogden’s former plant manager Dallas Rahn, who recently retired after nearly 37 years at Cargill. “Even if that meant we had to bring in flour from another Cargill mill or buy it from a competitor if we had a breakdown.”

Since the sole supplier relationship began, “our quality has definitely improved,” said Michael Anderson, Pepperidge Farm purchasing manager at the Richmond plant. Cargill and Pepperidge technicians are in constant communication, flour trucks are inspected daily, and downtime has decreased because problems are resolved quickly.

Wells Dairy Ground broke in June 2002 on a new, 158,000-square-foot Wells Dairy ice cream plant in St. George, Utah. The $40 million facility will employ up to 70 people. Le Mars, Iowa-based Wells Dairy operates three production facilities in Le Mars and a fourth plant is in Omaha, Nebraska. “In addition to more capacity, we were looking for more access to our western markets,” says Doug Wells, chief operating officer. “It will help us out on some of our transportation and freight issues – both raw material freight and finished product.” St. George is within an eight-hour drive of nearly every major U.S. West Coast

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city, so customers of Wells Dairy in that region are better served from a logistics standpoint. “The city was seeking a manufacturing base for their community,” notes Wells. “We had researched a number of criteria when selecting the site, including utilities, labor, environmental issues, and cost and non-cost factors, as well as the quality of life, and that location mixed well with our needs.” “It’s much like Le Mars, Iowa,” he adds, “with a strong work ethic and a good quality of life.” Utah’s Top Food Processing Companies

FIGURE 22 – Top Food Processing Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Nestle USA- Food Group, Inc. 815 West Raymond Klauck Way Springville, Utah 84663 www.nestle.com

Ms. Ann Coleman Plant Manager (801) 489-8621

1,800 Manufacturer and distributor of frozen foods

2 E A Miller 410 North 200 West Hyrum, Utah 84319 www.eamiller.com

Mr. Ted A. Miller President (435) 245-6454

1,200 Packager and distributor of beef

3 Moroni Feed Company 15 East 1900 South Moroni, Utah 84646 www.norbest.com

Mr. David Bailey Chief Executive Officer (435) 436-8221

900 Co-op of independent turkey farmers, producer of Norbest brand turkeys

4 Lofthouse Foods, Inc. P.O. Box 160460 Clearfield, Utah 84016-0460 www.lofthouse-foods.com

Ms. Paea Cole Plant Manager (801) 776-3500

750 Manufacturer of cookies

5

Interstate Brands - Wonder Bread/Hostess Cake 734 East 400 South Salt Lake City, Utah 84102 www.wonderbread.com

Mr. Bob Johansen General Manager (801) 531-6057

500 Manufacturer of Wonder Bread bakery goods

5 Pepperidge Farm, Inc. 901 North 200 West Richmond, Utah 84333 www.pepperidgefarm.com

Mr. J. Victor Mahoney Plant Manager (435) 258-2491

500 Manufacturer of food products

6 Morinda P.O. Box 4000 Orem, Utah 84059 www.tahitiannoni.com

Mr. Kerry Asay President (801) 234-1000

450 Producer and distributor of Tahitian Noni Juice

7 Schreiber Foods Inc. 885 North 600 West Logan, Utah 84321 www.schreiberfoods.com

Mr. Wade Whiting Plant Manager (435) 752-8175

350 Manufacturer of dairy products

7 Gossner Foods, Inc. 1051 North 1000 West Logan, Utah 84321 www.gossner.com

Ms. Dolores Wheeler President (435) 713-6100

350 Manufacturer of dairy products

7 Kencraft, Inc. 119 East 200 North Alpine, Utah 84004 www.kencraftcandy.com

Mr. David Taiclet President (800) 377-4368

350 Manufacturer of candy products

8 Meadow Gold Dairy 3752 West 1820 South Salt Lake City, Utah 84104 www.meadowgold.com

Mr. Lynn Tuttle General Manager (801) 973-2409

300 Manufacturer of dairy products

8 Sara Lee Bakery Group 3475 South 300 West Salt Lake City, Utah 84115 www.saralee.com

Mr. Ken Franklin Vice President (801) 487-4677

300 Manufacturer of bread and buns

9 Western Country Pies, Inc. 250 West Crossroads Square Salt Lake City, Utah 84115 www.edwardsisb.com

Mr. Mark Grandinetti Plant Manager (801) 485-3883

275 Manufacturer of pies

10 Frito-Lay Company 6301 West 4700 South Kearns, Utah 84118 www.frito-lay.com

Ms. Myra Francke Plant Manager (801) 957-7600

250 Manufacturer and distributor of snack food

10 Gardenburger, Inc. Freeport Center, Bldg. A-16H Clearfield, Utah 84015 www.gardenburger.com

Mr. Kevin Trussel Plant Manager (801) 773-8813

250 Producer of meatless food products

11 Pepsi Bottling Group 3388 West 1987 South Salt Lake City, Utah 84104 www.pepsi.com

Mr. Mike Robbins Plant Manager (801) 972-7400

220 Bottler of Pepsi beverages

12 Condie’s Foods 4850 South 5200 West Kearns, Utah 84118 Website: N/A

Mr. Gary Black President (801) 969-1448

210 Manufacturer of organic and natural foods

13

T C B Y Enterprises, Inc. 2855 East Cottonwood Parkway, Suite 400 Salt Lake City, Utah 84121 www.tcby.com

Mr. Frank Hickingbotham President (801) 736-5600

200 Manufacturer and retailer of yogurts, sorbet, and ice cream

13 Earthgrains Company 3475 South 300 West Salt Lake City, Utah 84115 www.earthgrains.com

Mr. Jack Hart Plant Manager (801) 487-4677

200 Manufacturer and distributor of bakery goods

13 Wilson Foods Company 1811 West 1700 South Salt Lake City, Utah 84104 www.lynnwilson.com

Mr. Robert Lovejoy President (801) 972-5633

200 Producer of food products

14 Farmland Foods 1260 South Pioneer Road Salt Lake City, Utah 84101 www.farmlandfoods.com

Mr. Brian Baskett Plant Manager (801) 956-0337

150 Meat processor

14 Cream O’Weber Dairy, Inc. 4282 West 1730 South Salt Lake City, Utah 84104 www.creamoweber.com

Mr. Walter M. Mendez Human Resource Mgr. (801) 973-9922

150 Manufacturer of ice cream

14 Winder Dairy, Inc. 4400 West 4100 South Salt Lake City, Utah 84120 www.winderdairy.com

Mr. Gordon Liddle President & CEO (801) 969-3401

150 Manufacturer of dairy products

14 Sweet Candy Company 3780 West Directors Row Salt Lake City, Utah 84104 www.sweetcandy.com

Mr. R. Anthony Sweet President (801) 886-1444

150 Manufacturer of chocolate and other candy products

14 Daily Foods, Inc. 3535 South 500 West Salt Lake City, Utah 84115 www.dailyfoods.com

Mr. Russ Wilcox President (801) 328-7695

150 Packager of meats and bacon

14

Swire Coca-Cola USA / Bonneville Production Center 2269 South 3270 West Salt Lake City, Utah 84119 www.swire.com

Mr. Jack Pelo President & CEO (801) 816-5450

150 Producer of bottled and canned soft drinks

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14 Market Fare Foods, Inc. 5850 Amelia Earhart Drive Salt Lake City, Utah 84116 www.marketfarefoods.com

Mr. Michael Clemens Manager (801) 531-7711

150 Producer of sauces, sandwiches, and burritos

15 Pictsweet Mushroom Farms 550 South 1100 West Fillmore, Utah 84631 www.pictsweet.com

Mr. Loyal Adams Manager (435) 743-6817

125 Wholesale fruits and vegetables

16 Red Rock Brewing Co., Inc. 254 south 200 West Salt Lake City, Utah 84101 www.redrockbrewing.com

Mr. Robert Jensen Manager (801) 521-7446

120 Producer of beer

17 Otto & Sons, Inc. 4980 West 9470 South West Jordan, Utah 84088 www.osigroup.com

Mr. Dean Martensen Vice President (801) 280-0166

115 Producer of prepared meat products

18 The Farr/Russell Group 2575 South 300 West Salt Lake City, Utah 84115 Website: N/A

Mr. Darin Farr Sales Manager (801) 484-8724

100 Manufacturer of ice cream

18

Amalgamated Sugar Company, LLC 2427 Lincoln Avenue Ogden, Utah 84401 www.amalgamatedsugar.com

Mr. Ralph C. Burton President & CEO (801) 399-3431

100 Manufacturer of sugar

18 Bear Creek Country Kitchens 325 West 600 South Heber City, Utah 84032 www.bearcreekfoods.com

Mr. Jeff Hansen Director of Marketing (800) 516-7286

100 Manufacturer of dehydrated soup mixes

19 Redmond Minerals, Inc. 6005 North 100 West Redmond, Utah 84652 www.redmondminerals.com

Mr. Jay Bosshardt Manager (435) 529-7402

85 Producer of gourmet salt

20

Pictsweet Frozen Foods, a Division of United Foods 1277 West 2350 North Ogden, Utah 84404 www.pictsweet.com

Mr. Mike Whalen Manager (801) 782-2566

80 Packager of frozen vegetables

20 Malt-O-Meal 1135 North 1000 West Tremonton, Utah 84337 www.malt-o-meal.com

Mr. Mark Suchan Plant Manager (435) 257-9000

80 Manufacturer of cereal products

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003 PAPER PRODUCTS Consolidations, closures, capital constraint, and cost cutting are just some of the methods used by paper producers to secure themselves while hoping for a brighter future. Now, statistical indicators have producers expecting an upturn as economics seemingly turn in their favor, prices begin a slight rebound, and production of paper and paperboard begins to climb slightly. Spending for capital projects in the North American pulp and paper industry should decrease again this year as companies seek to control capacity and offset the impacts of a weakened economy. According to a Pulp & Paper survey of known projects, capital expenditures should drop almost 30 percent to $4.3 billion for identified spending at U.S. operations from 2002 to 2004. Investments at Canadian facilities will almost hold steady at C$1.6 billion.

As in recent years, North American companies are apparently investing in lower-cost projects that offer higher returns. Although the industry has traditionally invested in high-cost, capacity-adding projects, this new spending trend has companies focused on reducing high-cost capacity or adding capacity from rebuilds to machines already in their systems. Smurfit-Stone Container Corp., for example,

expects to spend $200 million on capital expenditures this year. The company had planned to spend more but reduced its budgets in response to the sluggish economy.

Ranking as one of the state’s top manufacturing industry segments, Utah’s paper products industry is a vital component of the state’s economy. The industry employs 8,000 workers (in 2001) with an annual payroll of $192 million (See Figure 23 and 24). Utah’s paper and wood manufacturing workforce represents 4.1 percent of the state’s total manufacturing workforce. FIGURE 23 – Utah Paper Products Manufacturing Sector Breakdown,2002 Industry Sector Number of Firms Total Employment Estimated Sales Packaging and containers 45 2,737 $365.2M Paper products 18 1,233 $184.2M Printing 301 6,386 $589.0M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed. FIGURE 24 – 2001 Mean Annual Wage – Selected Paper Product Occupations

SOC Description Utah California Washington Texas Arizona

41-4012

SALES REPRESENTATIVES, WHOLESALE AND MANUFACTURING, EXCEPT TECHNICAL AND SCIENTIFIC PRODUCTS

$41,330 $43,790 $41,770 $38,910 $35,500

49-9043 MAINTENANCE WORKERS, MACHINERY $32,840 $34,310 $31,190 $27,910 $37,950

51-5023 PRINTING MACHINE OPERATORS $26,800 $27,160 $33,780 $26,220 $30,420

51-9032 CUTTING AND SLICING MACHINE SETTERS, OPERATORS, AND TENDERS

$22,540 $21,360 $24,740 $22,200 N/A

51-9191 CEMENTING AND GLUING MACHINE OPERATORS AND TENDERS

$19,050 $17,890 $25,680 $21,980 $21,340

51-9196 PAPER GOODS MACHINE SETTERS, OPERATORS, AND TENDERS

$25,300 $28,840 $38,560 $25,270 $22,930

Source: Bureau of Labor Statistics Highlighted Paper Products Companies Kimberly-Clark Corporation Kimberly-Clark products are sold in more than 150 countries with manufacturing facilities in 42 countries. Its global business segments are Consumer Tissue, Personal Care, and Business-to-Business products. As a point of pride, most of its facilities are not major sources of air emissions. At every Kimberly-Clark location, air emissions are at or below government-permitted levels. Its diaper manufacturing facility at Ogden, Utah, for example, has one of the most advanced air emission control systems for a facility of its type in the United States. Smead Manufacturing Company Today, over 2,600 people support Smead production facilities and distribution centers located in Cedar City, Utah; Georgia; Minnesota; Ohio; Texas; and Wisconsin. Smead has been a worldwide leading provider of document management and organizational solutions for 97 years. Headquartered in Hastings, Minnesota, Smead is a privately held, woman-owned business offering 5,000 organizational products with 2,600 employees in eight manufacturing plants located across North America. Smead-Europe,

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headquartered in Hoogezand, the Netherlands, has three manufacturing plants in the Netherlands and subsidiaries in eight European countries. Smurfit-Stone Container Corporation A key component of Smurfit-Stone’s total bag packaging solution is the equipment-testing laboratory. The 6,000-square-foot test lab is located in the Salt Lake City, Utah facility and consists of three large bays and more than $1 million worth of equipment.

The lab includes valve bag packers, ultrasonic sealers, valve bag applicators, an applicator/palletizer robot, conveyors, and automated bulk bag filler with pallet dispenser and conveying system. In addition, a complete palletizer system with conveyors, a bag flattener, a checkweigher, a reject conveyor, an overhead bag turner, and a pallet dispenser are utilized for testing.

The Salt Lake City plant manufactures both consumer bags and multiwall bags. It has flexographic printing capabilities up to eight colors plus one lacquer. The equipment plant is conveniently located two miles from the Salt Lake City International Airport and two miles from the city center. Products manufactured at this facility are valve bag fillers, applicators, sealers, pinch bottom bag closers, palletizers, conveyors, bulk bag fillers, and complete bag packaging systems.

Longview Fibre Longview Fibre is a major manufacturer of value-added corrugated and solid-fiber containers, handle shopping and merchandise bags, and other paper products. The company operates one of the largest pulp-paper mills in the world at Longview, Washington; 17 converting plants in 12 states; and a lumber plant. Longview Fibre is a leader in recycled-content paper packaging and owns over 572,000 acres of timberlands managed for Sustainable Forestry in the Pacific Northwest.

With a steady business increase and repeated retooling necessary to meet production demand, the Spanish Fork, Utah plant has tripled in size from the original 175,000 square feet to more than 500,000 square feet, or some 11 acres under one roof today. Container capacity has risen more than half-again, and its workforce has grown to more than 200 employees.

End-uses for containers produced have greatly expanded. Litho-laminated and other special boxes are made for computers and software, many frozen foods, appliances, soaps, cosmetics, and point-of-purchase displays. Among standard container uses are meat and poultry, cheese, health and exercise equipment, furniture, explosives, pharmaceuticals, clothing, automotive accessories, as well as health and other foods.

The Spanish Fork Bag Plant is strategically located near the geographical center of the western United States. The nearby interstate highway system allows the Spanish Fork plant to service the Far West, Southwest, Rocky Mountain and Midwestern states promptly. Quick service to customers is enhanced by the plant’s excellent access to major routes in all directions within Utah, Colorado, Wyoming, and Nevada. Important to its container distribution is the expanded warehouse at Logan, Utah.

Modern technology permits the plant to communicate with the Waltham bag plant in the east; the paper mill in Longview, Washington; and all the customers in between.

Evolving with regional marketplace growth, Longview Fibre’s relatively new Cedar City corrugated container plant doubled-in-size in its first year of operation, and installed more equipment. Cedar City-manufactured boxes are marketed in Southern Utah, Southern Nevada, and Northern Arizona, and answer diverse customer-packaging needs with end-uses including office furniture, a variety of food and dairy products, clothing, kitchen cabinets, and numerous other items.

Packaging Corporation of America Packaging Corporation of America (PCA) is a world-class manufacturer of containerboard and corrugated packaging. Its focus on a single line of business not only differentiates it from its major competitors, but also helps it achieve levels of operational excellence that are highly respected within the industry. With

2002 net sales of $1.7 billion and 7,900 employees, PCA produced 2.2 million tons of containerboard and shipped 27.5 billion square feet of corrugated products.

PCA Salt Lake City’s specialty products are point-of-purchase graphics packaging, litho laminated containers, point-of-purchase displays, boxes for sporting goods, furniture, and other bulk products. It offers wax coating, which provides a moisture barrier, and anti-scuff coating for a wide variety of products. It also offers cushion packaging and foam interior packaging to protect fragile products. Stock boxes and pack out is available for those customers who need multiple packaging components assembled and delivered as a complete package. UTAH’S TOP PAPER PRODUCTS COMPANIES FIGURE 25 – Top Paper Products Manufacturing Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Kimberly-Clark Corporation 2010 Rulon White Boulevard Ogden, Utah 84404 www.kimberly-clark.com

Mr. Phillip Senn Plant Manager (801) 782-2500

600 Manufacturer of diapers

2 Smead Manufacturing 3309 West 600 North Smead Blvd Cedar City, Utah 84720 www.smead.com

Mr. Gordan Goodall Manager (435) 415-5000

370 Manufacturer and distributor of paper products

3

Smurfit-Stone Container Corporation 2357 South 900 West Salt Lake City, Utah 84119 www.smurfit-stone.com

Ms. Edi Lorenz Human Resource Manager (801) 972-3005

360 Manufacturer of paperboard and paper-based packaging products

4

Longview Fibre Company 2200 North Main Street Spanish Fork, Utah 84660 (801) 798-7331 www.longviewfibre.com

Mr. Stan W. Curtis Plant Manager (801) 539-2570

250 Manufacturer of containers, boxes, and bags

5 Temkin International, Inc. 302 West 900 North Springville, Utah 84663 www.temkininternational.com

Mr. Danny Temkin President (801) 489-8223

250 Manufacturer of stock and custom floral sleeves, fabri-wrap, craft paper, palette wrap, tissues, and other parcel products

6

Ampad-A Division of American Pad & Paper Co. 5995 West Amelia Earhart Drive Salt Lake City, Utah 84116 www.ampad.com

Mr. Rafe Miller General Manager 200 Manufacturer of paper products

7

PCA-Packaging Corporation of America 4654 West 1525 South Salt Lake City, Utah 84104 www.packagingcorp.com

Mr. David Holbrook General Manager (801) 975-0996

155 Manufacturer of customized corrugated shipping containers, and foam, wood, and paperboard cartons

8 Malnove, Inc. P.O. Box 16028 Clearfield, Utah 84016-0128 www.malnove.com

Mr. Sam Cooper Human Resource Manager (801) 773-7400

150 Manufacturer of non-integrated folding cartons

9 Boise Cascade Corporation 451 North 5600 West Salt Lake City, Utah 84122 www.boisecascade.com

Mr. Dave Kunz (801) 531-6262 130 Manufacturer of corrugated containers

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003 INDUSTRIAL MACHINERY In June 2003, U.S. machine tool consumption totaled $244.6 million, up 67.1 percent from May 2003, and up 3.3 percent from the total of $236.8 million reported for June 2002, according to the American

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Machine Tool Distributors’ Association (AMTDA) and the Association For Manufacturing Technology (AMT). With a year-to-date total (up to June 2003) of $952.9 million, 2003 is down 17.9 percent compared to the same period in 2002. These numbers are based on the totals of actual data reported by companies participating in the United States Machine Tool Consumption (USMTC) program. June 2003 machine tool consumption in the Western region rose to $18.5 million, up 24 percent from May’s $14.9 million, but down 27.1 percent from June 2002. A first-half total of $92.1 million falls 33.5 percent short of the comparable figure in 2002. Figure 26 shows the sector breakdown of Utah’s industrial machinery manufacturing. Figure 27 shows wages for selected industrial machinery occupations. FIGURE 26 – Utah Industrial Machinery Sector Breakdown, 2002 Industry Sector Number of Firms Total Employment Estimated Sales Fluid control equipment 29 1,258 120.0M Industrial automation 43 847 71.0M Material handling machinery 22 965 308.5M General, special machinery 274 8,235 722.2M Pollution treatment controls 63 1,377 139.0M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed. FIGURE 27 – 2001 Mean Annual Wage – Selected Industrial Machinery Occupations

SOC Description Utah California Washington Texas Arizona 17-2141 MECHANICAL ENGINEERS $59,550 $68,420 $62,510 $75,670 $63,570

41-4012

SALES REPRESENTATIVES, WHOLESALE AND MANUFACTURING, EXCEPT TECHNICAL AND SCIENTIFIC PRODUCTS

$41,330 $43,790 $41,770 $38,910 $35,500

49-9041 INDUSTRIAL MACHINERY MECHANICS $41,090 $43,240 $41,810 $37,780 $37,150

51-2092 TEAM ASSEMBLERS $21,410 $20,190 $23,350 $19,280 $19,900 51-4041 MACHINISTS $33,540 $31,720 $38,990 $29,500 $32,100

51-4121 WELDERS, CUTTERS, SOLDERERS, AND BRAZERS $27,590 $28,130 $33,750 $26,730 $24,430

Source: Bureau of Labor Statistics Highlighted Industrial Machinery Companies SK Daifuku Corporation SK Daifuku’s new 75,000-square-foot headquarters is located in the Salt Lake International Center. SK Daifuku provides automated material handling solutions for manufacturing and distribution operations of all sizes.

SK Daifuku has provided leading logistics solutions for some of the world’s best-run manufacturing and distribution operations, helping them achieve the efficiency and flexibility required to stay competitive. Through logistics studies, design, integration, and implementation, SK Daifuku can help boost productivity, improve customer service, and achieve higher profits. The Factory Automation / Distribution Automation Group’s products and services include material handling automation equipment, logistics studies, warehouse management software, project integration and management, automated storage / retrieval systems, conveyance and sortation, automated vehicles, and carts.

SK Daifuku cleanroom factory automation is already working in many of the world’s first automated 300mm production facilities. The Cleanroom Factory Automation Group is the leader in 300mm Interbay technology, Intrabay, and Bridge technology.

SK Daifuku is the number two materials handling system supplier worldwide. HK Systems, another materials handling systems supplier with operations in Utah, ranks number 15 (See Figure 28).

FIGURE 28 – Top Materials Handling Systems Suppliers in the World – 2002

Rank/Company Rank 2001 Headquarters Worldwide 2002

annual sales, U.S.$ American Business Units

1. SIEMENS DEMATIC 1 Nuremburg, Germany $2.9 billion Siemens Dematic, Material Handling Automation - Grand Rapids,

MI; Automation Technologies - Birmingham, AL

2. Daifuku Co., Ltd. 3 Osaka, Japan $1.35 billion SK Daifuku Corp. - Salt Lake City, UT; Daifuku America - Columbus, OH

15. HK Systems, Inc. 14 Milwaukee, WI $200 million

Materials Handling Systems - Milwaukee, WI / Salt Lake City, UT; Unit Handling Systems - Hebron, KY; Von Gal - Montgomery, AL;

Irista Software - Milwaukee, WI Source: Modern Materials Handling, April 2003 HK Systems, Inc. In August of 2003, HK Systems, a leading automated material handling and supply chain solutions provider, announced that it had been selected by FedEx Ground, an operating unit of FedEx Corporation, to develop and install package sortation systems in four new FedEx Ground central distribution hubs that will begin construction over the next year.

HK Systems is an automated material handling and supply chain software solutions provider with facilities in Salt Lake City, Utah. The company’s comprehensive product and service offerings include automated storage and retrieval systems, automated guided vehicles, conveyance, sortation, palletizers, customer services, warehouse management, transportation management, and event management systems.

HK Systems develops and delivers solutions for the following vertical markets: automotive and transportation, document storage, food and beverage, paper and publishing, and pharmaceuticals. Chromalox Precision Heat and Control In March of 2003, Chromalox announced a new ceramic-sheathed immersion heater designed to supply temperatures up to 2100° F for direct immersion in processes. The innovative ceramic sheath provides extreme temperature protection for the heating elements inside. The non-metallic design also provides unmatched corrosion protection as well as exceptional abrasive resistance and non-conductive qualities.

The ceramic-sheathed immersion heater is designed for use in molten metal baths, abrasive or corrosive service, high pressure, vacuum, and other extreme temperature applications. This extreme service heater is limited only by the capacity of the heating wire inside the sheath and currently uses a NiChrome wire rated at 2100° F. The company is also evaluating Kendal wire alloys rated at 2400° F and tungsten wires rated at 3000° F. While most metal-sheathed heaters are limited by the properties of the sheath material, this ceramic sheath is composed of SiAlON tubing and can withstand temperatures to 3100° F.

Chromalox’s global position makes it easy for the company to meet United States, European, and any other standards for foreign products. One can find Chromalox heaters, sensors, controls, and packaged systems in places ranging from the depths of a nuclear reactor, to the depths of the Pacific Ocean on board U. S. Navy submarines. It also had the very first strip heater on the moon.

Chromalox manufactures electric heaters and heating equipment and has facilities in Ogden, Utah. Product lines include process heaters, strip heaters, ring heaters, cartridge heaters, screw plug heaters, immersion heaters, circulation heaters, radiant heaters, heat trace systems, temperature controllers, and more.

Weir Specialty Pumps Weir Specialty Pumps is part of one of the largest pump companies in the world today. The WEIR Group PLC, Glasgow, Scotland, is a global leader in pumping, valve, desalinization, liquid gas handling, and

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turbo-drilling technology, and includes the well known trade names of Ash Pump, Galigher Pump, Warman International, Weir Pumps, Mather & Platt Machinery, W H Allen and Gwynnes Large Pumps, Lewis Pump, Begemann Pump, Floway Pumps, and WEMCO and Roto-Jet Pumps.

Headquartered in Salt Lake City, Utah, Weir Specialty Pumps has been providing the world with specialized pumps and equipment for nearly a century. Selling under the trade names of Roto-Jet and WEMCO, these products can be found in all parts of the world. Municipal waste water and sludge, power generation, chemical processing, pulp and paper, phosphate and fertilizer, oil drilling, food handling, and high-pressure cleaning are just a few of the many industries served by Weir Specialty Pumps’ products. Flowserve Flowserve with facilities in Springville, Utah, is the world’s premier provider of industrial flow management services. The company produces engineered pumps, precision mechanical seals, automated and manual quarter-turn valves, and control valves and actuators. It provides a range of related flow management services primarily for the process industries. With 2002 sales of almost $2.3 billion, Flowserve has about 14,000 employees (350 in Utah) and operates in 56 countries through three divisions: the Pump Division, the Flow Control Division, and the Flow Solutions Divisions.

Flowserve has an estimated worldwide installed base of more than one million pumps working in a broad range of industrial applications. Flowserve is the premier manufacturer of pumps for the petroleum, chemical processing and power generating industries. Its valves, valve actuators, and valve automation systems are widely installed in refineries, chemical plants, as well as pharmaceutical, food, and other processing applications. Its seals and sealing systems are used to prevent leakage of fluids in a variety of rotating systems. High-Tech Industrial Companies KnowledgeScape Systems KnowledgeScape Systems, offers KnowledgeScape Adaptive Optimization and Expert Control system based on genetic algorithms, a form of artificial intelligence, to emulate the functions of expert plant operators. It also uses a neural network that continually models the process. These features allow it to evaluate alternative operating conditions for future effectiveness, and then implement the best set.

KnowledgeScape Systems, with headquarters in Salt Lake City, Utah, is a division of EIMCO. EIMCO is a global leader in process systems for the physical separation of materials and the treatment of water and wastewater. Its products are used by industries worldwide to produce metals, chemicals, pulp and paper, foods, power and petroleum products; and by municipalities to purify raw water supplies and treat wastewater.

KnowledgeScape’s advanced process control software integrates fuzzy logic, neural networks, genetic algorithms, statistical process control techniques, and client server architecture to provide an easy to use, on line, real time, and global optimization solution to the process control industry.

KnowledgeScape’s market focus is specialty instrumentation, systems integration, and expert control. Historically, it has been very active in the field of systems integration and implementation of expert systems using commercially available software. Its work has been primarily focused in the physical separation of materials and water/wastewater treatment industries.

Fonix Corporation and Parvus Corporation Fonix Corp. (headquartered in Draper, Utah since 1994, with offices in Waltham, Massachusetts, Seoul, Korea, and Munich, Germany) and Parvus Corp. (headquartered in Salt Lake City since 1983, with a 20,000-square-foot complex located 15 minutes from the Salt Lake International Airport) announced in January of 2002 the signing of a collaborative agreement to promote mutual opportunities for implementing voice recognition technologies in embedded computer systems.

“Parvus is delivering embedded systems into markets that are prime for speech,” said Kurt W. Flygare, VP of Sales, Fonix. “Our agreement strategically links Fonix with a strong hardware developer to broaden our customer opportunities and extend the reach of our speech solutions. This collaboration will deliver speech to Parvus’ embedded control systems that are already operable in the marketplace, thus driving additional revenue for both companies.”

Operational Effectiveness Software Many have speculated about a seamless, integrated,Web-delivered system to connect employees withcorporate knowledge and work processes, help align theiractivities with the most important organizational objectives,and then dynamically manage the work throughout theorganization.

The results of this goal, now called OperationalEffectiveness software, has indeed produced a powerfulnew approach to: Elevating employee productivity and involvement. Managing an organization’s knowledge and work

processes. Meeting contract and regulatory obligations

transparently. Simplifying and consolidating the entire work

environment.

Parvus commonly serves customers in the avionics/aerospace, defense, factory automation, light industrial, medical, telecom, and transportation fields. Fonix speech technologies have been integrated into mobile and wireless devices, PDAs, vehicle navigation systems, and cellular applications, as well as server systems, including unified messaging services, email readers, HTML Web readers, Web-based education courses, voice portals, and more.

Veritcore Technologies Verticore Technologies, based in Salt Lake City, Utah, announced in February of 2003 that CITGO Petroleum Corporation has initiated a pilot Verticore Productivity Solution (VPS) software program that is designed to enhance environment and safety reporting and compliance documentation at CITGO’s Lemont, Illinois, refinery.

VPS provides a field-tested approach to operational effectiveness, operational integrity, profitability, and compliance for the refining industry. The software provides a consolidated view of information and access to Verticore’s applications that improve measurement and work process operations. VPS accomplishes this by connecting, aligning, and dynamically managing work processes within an organization. Through a personalized portal interface or wireless handheld device, each employee has access to all the information, services, and applications they need to accomplish the right work. Verticore’s Scorecard helps align each employee’s priorities with key operations success factors, and then helps them track their path towards accomplishment. Once employees are aligned in their efforts, work processes are dynamically managed in a way that reflects industry best practices. These field-proven applications deliver measurable productivity gains and regulatory compliance within the critical arena of manufacturing operations.

Verticore Technologies offers a hosted application and a version that can be located at the customer’s facility. Verticore is an enterprise software company and the leader in the emerging Operational Effectiveness market. Its mission is to deliver $55 billion of measurable Operational Effectiveness to its clients by 2008. emWare, Inc. emWare has developed a technology called DeviceGate. DeviceGate products are self-contained gateways that offer manufacturers a way to add remote management capabilities to both new and legacy electronic devices. emWare’s remote device management solution includes EMIT software and hosted emConnect device management services that enable companies to remotely connect, monitor, control, and

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diagnose intelligent devices. emWare founded the ETI Alliance, a group of leading technology companies that are extending the Internet to everyday devices. Established in May 1996, emWare is a private company with headquarters in Salt Lake City, Utah and an office in Munich, Germany.

According to John C. William, managing director of the FocalPoint Group, LLC, “Service organizations are increasingly faced with aging field assets, higher labor and transportation costs, and more demanding customer environments. These organizations need simplified, enterprise-level applications that allow for remote asset monitoring.” Williams added, “emWare’s DeviceView Service provides the means to connect field support staff with device history and real-time information, enabling field operations to achieve wide-spread optimization.” With emWare’s DeviceView Service, companies can easily deploy an enterprise-

t

Who needs Remote Device Management? REMOTE DEVICE MANAGEMENT IS FOR ELECTRONIC DEVICE MANUFACTURERS WHO WOULD BENEFIT FROM CREATING SELF-AWARE PRODUCTS THAT USERS CAN THEN MANAGE AND INTERACT WITH REMOTELY VIA THE INTERNET OR OTHER NETWORKS. THESE COMPANIES ARE LOOKING FOR A COST-EFFECTIVE METHOD TO DELIVER A NEW GENERATION OF SMART PRODUCTS THAT REDUCE COMPLEXITY, IMPROVE SERVICE, AND AUTOMATE MANAGEMENT OF NEW AND LEGACY INTELLIGENT REMOTE DEVICES. THE REMOTE DEVICE MANAGEMENT SOLUTIONS APPLY TO ANY TYPE OF

level, remote equipment management solution without incurring he typical hundreds of thousands of dollars in development time and implementation costs.

Utah’s Top Industrial Machinery Companies FIGURE 29 – Top Industrial Machinery Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Chromalox 2150 North Rulon White Blvd. Ogden, Utah 84404 www.chromalox.com

Mr. Davin Wilson President (801) 782-3030

450 Manufacturer of industrial heating products

2

Weir Specialty Pumps 440 West 800 South P.O. Box 209 Salt Lake City, Utah 84101-0209 www.weirsp.com

Mr. Joseph Roark President (801) 359-8731

400 MANUFACTURER OF WEMCO® AND ROTO-JET® PUMPS

3 Flowserve Corporation 1350 Mountain Springs Parkway Springville, Utah 84663 www.flowserve.com

Leslie Hatch Human Resource Manager (801) 489-8611

350 Manufacturer of industrial and engineered pumps, precision mechanical seals, automated and manual quarter-turn and control valves.

4 Dorr – Oliver Eimco 669 West 200 South Salt Lake City, Utah 84101 www.glv.com

Mr. Richard Ray Human Resource Manager (801) 526-2000

300 Manufacturer of mineral processing, dewatering, and separation equipment

4 HK Systems, Inc. 515 East 100 South Salt Lake City, Utah 84102 www.hksystems.com

Mr. Richard Mooney President (801) 530-4000

300 Manufacturer of automation systems and equipment

4 Macrotech Polyseal, Inc. 1754 West 500 South Salt Lake City, Utah 84104 www.polyseal.com

Mr. Gordan Zitting President & CEO (801) 973-9171

300 Manufacturer of seals for the fluid power industry

5 Petersen, Inc. 1527 North 2000 West Ogden, Utah 84404 www.petersen-inc.com

Mr. Steven Petersen Chief Executive Officer (801) 732-2000

295 Steel fabricator of precision machinery

6 Boart Longyear Company 2640 West 1700 South Salt Lake City, Utah 84104 www.boartlongyear.com

Mr. Richard Swayne President (801) 972-6430

250 Company headquarters. Manufacturer of drill bits

7 Sorenson Bioscience, Inc. 6507 South 400 West Murray, Utah 84107 www.sorbio.com

Mr. West Price President (801) 266-9334

160 Manufacturer of liquid-handling products

8 Christensen Products 3120 California Avenue, Suite B Salt Lake City, Utah 84122 www.christensenproducts.com

Mr. Eric Despain Senior Vice President 150 Manufacturer of a complete line of drilling

equipment and supplies

8 Nephi Rubber Products 255 West 1100 North Nephi, Utah 84648 www.nrpjones.com

Mr. Roger Jorgensen Plant Manager (435) 623-1740

150 MANUFACTURER OF INDUSTRIAL AND HYDRAULIC HOSES, HYDRAULIC ASSEMBLIES AND OIL PRODUCTS

8 Cerro Wire and Cable Company 1160 West 2150 North Ogden, Utah 84401 www.cerrowire.com

Mr. Andrew H. Paine Plant Manager (801) 782-4900

150 Manufacturer of industrial wire

9 Arnold Machinery Company 2975 West 2100 South West Valley City, Utah 84119 www.arnoldmachinery.com

Mr. Alvin Richer President (801) 972-4000

140 MANUFACTURER AND DISTRIBUTOR OF CONSTRUCTION, MINING, MATERIAL HANDLING, AND FARM EQUIPMENT

10 Daw Technologies, Inc. 1600 West 2200 South, Suite 201 Salt Lake City, Utah 84119 www.dawtech.com

Mr. Jim Collings Chief Executive Officer (801) 977-3100

125 Clean room installation and equipment

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11 Naco Industries, Inc. 395 West 1400 North Logan, Utah 84341 www.naco-industries.com

Mr. Verne Bray President (435) 753-8020

120 Manufacturer of plastic pipe fittings and valves for agricultural, utility, industrial, aquacultural, water treatment, cooling tower, and construction industries

12

Hoj Engineering and Sales Company, Inc. 3960 South 500 West Salt Lake City, Utah 84123 www.hoj-eng.com

Mr. Henning Hoj President (801) 266-8881

100 PROVIDER AND INSTALLER OF MATERIAL HANDLING SYSTEMS AND ENGINEERING SERVICES

12 K-Tec 1206 South 1680 West Orem, Utah 84058 www.k-tecusa.com

Mr. Bryan Dickson Vice President, Operations (801) 222-0888

100 Manufacturer of commercial blenders

13 Hart Scientific, Inc. 799 East Utah Valley Drive American Fork, Utah 84003 www.hartscientific.com

Mr. Chris Juchau President (801) 763-1010

90 Manufacturer of temperature calibration equipment

14 Larsen-Davis, Inc. 1681 West 820 North Provo, Utah 84601 www.lardav.com

Mr. Ken Lally President (801) 375-0177

65 Manufacturer of precision measuring instruments

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003

METALS AND MINING Metals and mining have been an important part of Utah’s economy since the late 1840’s. A breakdown of this manufacturing sector is found in Figure 30. FIGURE 30 – Utah Metals and Mining Sector Breakdown, 2002

Industry Sector Number of Firms Total Employment Estimated Sales Aluminum 9 738 $130.2M Copper 5 579 $31.0M Diversified Mining Metals 25 2,336 $1,382.5M Mining Metals Processing 16 850 $120.7M Steel Production 21 2,815 $1,116.2M Source: Harris InfoSource Utah Manufacturing Report 2002. Not all sectors are listed. Utah’s Top Metals and Mining Companies FIGURE 31 – Top Metals and Mining Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 Kennecott Utah Copper P.O. Box 6001 Magna, Utah 84006 www.kennecott.com

Mr. Bill Champion CEO, President (801) 569-6000

1450 Mining of metals including gold and copper

2 US Magnesium L.L.C. 238 North 2200 West Salt Lake City, Utah 84116 www.usmagnesium.com

Mr. Michael H. Legge President (801) 532-2043

400 Magnesium mining

2 Western Zirconium Plant 1000 West 900 South Ogden, Utah 84404-9799 www.westinghouse.com

Mr. Richard Gerwels Plant Manager (801) 732-2200

400 Zirconium and zirconium alloy materials processing

3 GSC 2738 Commerce Way Ogden, Utah 84401 www.gscutah.com

Mr. Herbert Christian President (801) 627-1660

350 Manufacturer of precision investment castings in aluminum and steel alloys

3 Nucor Cold Finish 1875 West Highway 13 South Brigham City, Utah 84302 www.nucorcoldfinish.com

Mr. Randy Beard Vice President & GM (435) 734-9334

350 Manufacturer of carbon and alloy cold draw steel bars

4 Nucor Vulcraft-Brigham City 1875 West Highway 13 South Brigham City, Utah 84302 www.vulcraft.com

Mr. Randy Beard Vice President & GM (435) 734-9433

300 Manufacturer of steel joists and grinding belts

4 SME Steel Contractors 5955 West Wells Park Road West Jordan, Utah 84088 www.smesteel.com

Mr. Craig Moyes President (801) 280-0711

300 Steel fabricator and erector

4 Cyprus Plateau Mining Corporation 847 North West Highway 191 Helper, Utah 84526

Mr. John Boylen, Jr. General Manager 300 Coal mining operation

5 Alcoa Extrusions, Inc. 1550 Kirby Lane Spanish Fork, Utah 84660 www.alcoa.com

Mr. Brent Johnson General Manager (801) 798-8730

250 Manufacturer of aluminum extrusions

6 Futura Industries Company P.O. Box 160350 Clearfield, Utah 84016-0350 www.futuraind.com

Ms. Susan Johnson Manager (801) 773-6282

235 Manufacturer of aluminum

7

Pacific States Cast Iron Pipe Co. P.O. Box 1219 1401 East 200 South Provo, Utah 84603 www.pscipco.com

Mr. Charles Matlock Vice President (801) 373-6910

230 MANUFACTURER OF DUCTILE IRON PIPES

8 St. George Steel Fabrication 1301 East 700 North St. George, Utah 84770 www.stgeorgesteel.com

Mr. John Campos President & GM (435) 567-3485

150 Steel fabrication

8 Mountain States Steel, Inc. 325 South Geneva Road Lindon, Utah 84042 www.mssteel.com

Mr. J. Chris Olsen President (801) 785-5085

150 Steel fabrication

8 Andalex Resources, Inc. 45 West 10,000 South, Suite 401 Sandy, Utah 84070 www.andalex.com

Mr. Douglas H. Smith President (801) 568-8900

150 Coal mining company with three divisions operating in the state of Utah

9 Richards Sheet Metal Works, Inc. 2680 Industrial Drive Ogden, Utah 84401 www.richards-fab.com

Mr. Stephen Richards President (801) 621-3341

100 Precision metal fabrication

SOURCE: EDCU UTAH MAJOR EMPLOYERS GUIDE, 2003; MANUFACTURERS NEWS INC., UTAH MANUFACTURERS DIRECTORY, 2003 OTHER MANUFACTURING THE MANUFACTURING SECTORS ALREADY DISCUSSED IN THIS PROFILE ALL PLAY A SIGNIFICANT ROLE IN UTAH’S ECONOMY, BUT THESE ARE NOT THE ONLY SECTORS ACTIVE IN UTAH. MANY COMPANIES IN VERY SPECIALIZED NICHES (SUCH AS O.C. TANNER IN THE SERVICE AWARDS BUSINESS) HAVE A LARGE PRESENCE IN THE STATE. FIGURE 32 IS A SAMPLING OF SUCH COMPANIES.

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FIGURE 32 – Other Manufacturing Companies in Utah 2003, Ranked by Number of Employees

RANK Name and Address of Company Contact Information Number of Employees Products/Services

1 O.C.Tanner Company 1930 South State Street Salt Lake City, Utah 84115 www.octanner.com

Mr. David Sturt Senior VP, Marketing (801) 486-2430

1,800 Manufacturer of service awards

2 Stampin Up! 9350 South 150 East, 5th Floor Sandy, Utah 84070 www.stampinup.com

Ms. Shellie Gardner President & CEO (801) 601-5400

400 Manufacturer and distributor of scrapbook materials

3 Enable Industries 2640 Industrial Drive Ogden, Utah 84401 www.enableindustries.com

Mr. Donald Pierce Director (801) 621-6595

278 Manufacturing and assembly work

4 Zero Manufacturing, Inc. 500 West 200 North North Salt Lake, Utah 84054 www.zerocases.com

Mr. Joseph Santosuosso General Manager (801) 264-1001

240 Manufacturer of fabricated and drawn metal and plastic enclosures

5 Penco Products 4080 West Farm Road West Jordan, Utah 84068 www.pencoproducts.com

Mr. Kevin Booth Manager (801) 280-1541

225 Manufacturer of lockers and shelving

6 Boman Kemp Companies 2393 South 1900 West Ogden, Utah 84401 www.boman-kemp.com

Mr. Mel Kemp Chief Executive Officer (801) 731-0615

200 Manufacturer of steel and metal fabricated window structures

7 Goer Manufacturing Company 2695 West Highway 56 Cedar City, Utah 84720 www.goer.com

Mr. Chuck Nichols Executive Vice President (435) 586-9948

150 Manufacturer of store fixtures

8 Champion Safe Company, LLC 2055 South Larsen Parkway Provo, Utah 84606 www.championsafe.com

Ms. Connie Spencer Office Manager (801) 377-7199

140 Manufacturer of steel safes

Source: EDCU Utah Major Employers Guide, 2003; Manufacturers News Inc., Utah Manufacturers Directory, 2003 EXPORTING US Overview Manufacturing exports as a share of GDP have contracted since 1997, reflecting the strong dollar overseas, the impact of the long Asian recession on our trading partners, the terrorist attacks in the United States in September 2001, and increased global competition. The U.S. trade deficit has ballooned to historic highs, reflecting an increase in purchases of foreign-made goods, especially from countries that do not freely float their currencies. The United States is the world’s largest exporter of manufactured goods. In 2001, it exported almost $600 billion worth of goods. U.S. manufactured exports have more than doubled since 1990, and manufactured goods account for 82 percent of the United States’ total merchandise exports and three-quarters of all its exports. The International Trade Administration estimates that one in five manufacturing jobs is tied to exports of manufactured products, and for each of those manufacturing jobs there are 1.3 non-manufacturing jobs tied to manufactured exports.

Manufacturing R&D is an important driver in spurring growth in U.S. exports. Exports of R&D-intensive goods are a growing share of overall goods exported by the United States. In 1980, exports of such goods accounted for about 19 percent of all manufactured exports in the United States; by the late 1990s that share had grown to about 27 percent. However, by definition, goods high in R&D content are those embedding new and better ideas. The world buys U.S. exports because they are “the better

mousetrap.” Maintaining the growth in such goods requires a sizable continuous stream of investment in R&D, and a vibrant manufacturing sector to innovate, produce, and sell those goods abroad.

Utah Overview Utah’s exports fell nine percent during 2002, from $3.5 billion to $3.2 billion. Although Utah’s exports more than doubled during the 1990s, most of the growth occurred before 1997. Since then, exports have remained in the range of $3.0 billion to $3.5 billion (See Figures 46 and 47 in the appendix). Exports would have fallen even farther without a surge in shipments of primary metals to Switzerland (See Figures 47 and 48 in the appendix). Furthermore, East Asia’s purchases of Utah goods did not fall in 2002, helping to shore up exports. The fact that the world economy is barely growing, but exports to East Asia are holding up, bodes well for future Utah export growth.

During 2002, exports of primary metal products (gold, copper, and steel) were $1.2 billion, almost one-third of Utah’s total exports. Other major export products included computers and electronics ($601 million, or 15 percent), transportation equipment ($357 million, or 17 percent), chemicals ($189 million, or seven percent), and food ($169 million, or seven percent). In 2002, Exports of primary metals to Switzerland made it Utah’s largest market. In the same year, primary metal purchases also made the United Kingdom Utah’s second largest market. In 2002, the U.S. dollar continued to remain strong in the global economy. While this helped to sustain U.S. buying power in the world market, it negatively impacted exports. Weakening foreign economies combined with a strong U.S. dollar resulted in lower demand for U.S.-produced goods. Utah’s Merchandise Exports in Detail Since 1997, Western Europe has been Utah’s largest export market, followed by East Asia. In 2001, Utah exported $1.5 billion of merchandise to Western Europe, which was 72 percent more than the $880 million sold to East Asia. Exports to East Asia peaked at over $1.0 billion during 1997, fell to less than $750 million during 1999, and have since modestly recovered to $880 million during 2001. Canada is Utah’s third largest market, with export purchases of almost $600 million during 2001. Combined, Europe, East Asia, and Canada purchase about 90 percent of Utah’s exports, though this share has been declining, falling from 92 percent in 1997 to 88 percent in 2001. Mexico and Latin America purchased seven percent of Utah’s exports during 2001.

Since 1997, Switzerland, Canada, the United Kingdom, and Japan have been the top four national markets for Utah’s exports.

Switzerland has been in the top four countries purchasing Utah exports since 1998. In 2001, Switzerland was the largest purchaser of Utah’s exports; purchasing almost $700 million of merchandise, of which almost $680 million, or 97 percent, were primary metals.

Canada was the second largest export market for Utah in 2001, and has been the first or second since 1998. Utah exports to Canada increased from a range of $500 million in 1997 and 1998, to a range of $600 million since 1999. Transportation equipment (airbags from Thiokol’s plant) accounts for 25 to 30 percent of Canada’s purchases, dominating Utah’s sales there. At $55 million during 2001, computer and electronic sales to Canada were the second largest product category, with a ten percent share of total exports. In addition to transportation equipment and computers, Canada makes significant purchases of metals, machinery, and chemicals from Utah.

The United Kingdom was the third largest export market for Utah in 2001, purchasing $421.3 million of merchandise. In 1997 and 1998, the U.K. was the largest market. Metals have consistently been the top product sold to the U.K. At around $30 million for each product category, sales of computers and electronics, electrical equipment, and transportation equipment combined, accounted for 15 percent of total exports during 2001.

Japan was the fourth largest export market for Utah in 2001, purchasing $396.4 million of merchandise. Japan was Utah’s second largest market in 1997, purchasing over $500 million of merchandise, including over $100 million of airbags and coal. However, since 1998, Japan has been the

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third or fourth largest market, purchasing about $400 million of merchandise. Since 1997, Japan’s largest purchases from Utah have been airbags, coal, chemicals, food, and computers.

Since 1997, the Netherlands, Korea, Mexico, Germany, and the Philippines have been among the top ten markets for Utah’s exports. Airbags and computers are typically the main products sold to each of these countries. The Netherlands also purchases significant amounts of minerals. Mexico buys around $10 million of food and $10 million of chemicals. Figure 33 shows Utah’s total export growth from 1990 to 2002.

FIGURE 33 – Utah Merchandise Exports: 1990 – 2003 (Millions of Dollars)

$3,187$3,506

$3,220$3,133$2,978$3,237

$2,769

$2,269

$1,596$1,906

$2,706

$2,027$2,207

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Source: U.S. Census Bureau Other Export Numbers In 2002, Utah’s goods exports were $3.2 billion, up 57 percent ($1.2 billion) from 1993. Among Utah’s fastest growing manufactured exports from 2001 to 2002 was Transportation

Equipment at 32.51 percent, Food Preparations at 15.57 percent, Beauty and Skin Preparations at 26.36 percent, and Medical Devices at 12.82 percent.

In 1999, Utah’s jobs supported by goods exported were an estimated ten percent (3,509 jobs) higher than 1992. U.S. jobs supported by goods exported pay 13 to 16 percent higher than the national average wage.

Total exports from Utah to NAFTA countries in 1999 were 64 percent higher than 1993 (pre-NAFTA), rising from $471.8 million in 1993 to $773.8 million in 1999. During 1999, Canada was Utah’s second largest export market, while Mexico was Utah’s sixth largest export market. Exports to Canada in 1999 were $649.4 million, a 48 percent increase from 1993. Exports to Mexico in 1999 were $124.4 million, a 289 percent increase from 1993.

Figures 34, 35, and 36 show Utah’s top merchandise export industries, total export dollars by year, and top export destination countries.

Note: Exports for 2002 are estimated based on the first three quarters.

FIGURE 34 – Utah Merchandise Exports by Top Ten Industries: 2002

Source: U.S. Census Bureau

FIGURE 35 – Utah Merchandise Exports (Millions of Dollars)

Note: Exports for 2002 are estimated based on the first three quarters. Source: U.S. Census Bureau

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Note: Exports for 2002 are estimated based on the first three quarters.

FIGURE 36 – Utah Merchandise Exports to Top Ten Purchasing Countries: 2002 (Millions of Dollars)

Source: U.S. Census Bureau DISTRIBUTION AND SUPPLY CHAIN Salt Lake International Airport, Delta Air Lines’ third-largest national hub, has been ranked in the top ten internationally for the quality of its operations, which includes a new international arrivals facility. Each year the airport’s 12 commercial carriers serve over 18 million passengers. Salt Lake City is within a 2.5-hour flight of half of the nation’s population. On land, some 43,000 miles of highway, including I-15, 1-70, 1-80, and 1-84, connect Utah to points throughout North America. More than 2,300 interstate and intrastate motor carriers provide same-day, one-day, or two-day direct service from Utah to virtually any point in the Western United States. Similarly, speedy connections are provided by the state’s rail network, which centers on the newly merged Union Pacific/Southern Pacific Class I railroad for freight and Amtrak for passenger service. (See the EDCU Distribution Industry Profile). Distribution and the Internet More and more large shippers have begun setting up private exchanges – limited-access Internet sites – which they use for confidential communications with their carriers. In March of 2002, Nu Skin, a Provo, Utah-based seller of skin, hair-care and nutritional products, went live with a private Web-based exchange for communications with its inbound carriers. The exchange, set up by Elogex of Charlotte, N.C., will allow Nu Skin to tender loads to a select group of core motor carriers and monitor the movement of inbound shipments. “The long-term goal is to provide visibility from the vendor to our distribution people in each foreign office so we have control over inventory,” says Brad Morris, Nu Skin’s vice president of logistics. “We [hope it will] have a positive impact on inventory turns, service levels, and overall costs.” These sites are intended to automate load tendering while offering visibility over incoming shipments to plants, stores, or warehouses.

Online Manufacturers In the New Economy, success formanufacturers and their employeeswill come as a result of the degreeto which they embrace technology,both in how they make products andincorporate technology into theirproducts. Workers employed inmanufacturing plants with moretechnologies (e.g., computer-aideddesign, CNC machines) then thenational average earn 63 percentmore than workers in plants usingless (See Figure 37).

Today, whenever Nu Skin has a load ready for pickup, the Elogex system sends out an e-mail notice to the designated primary carrier. If the primary carrier rejects the freight shipment, the next carrier on the list is contacted about accepting the freight. In addition to load tendering, the system can schedule receiving dock appointments electronically, eliminating the need for phone calls. This helps companies shorten delivery windows, and allows them to not take ownership of inventory before they need it. They can manage the resources at the dock door and control what comes into the store.

Industry analysts believe that many large retailers view private networks as an excellent way to get a handle on their transportation costs. The big retailers, who are upset that suppliers are hiding transportation costs and bundling them into product prices, will see this technology as giving them an advantage in terms of cost reduction. Figure 37 shows the top 15 states based upon the percentage of manufacturing establishments with internet access in 2002.

SOURCE: 2002 STATE NEW ECONOMY INDEX, PROGRESSIVE POLICY INSTITUTE

FIGURE 37 – Rankings of States By Percentage of Manufacturing Establishments with Internet Access: 2002 Rank State Score

1 Minnesota 91.7% 2 North Dakota 90.3% 3 Maine 89.5% 4 Indiana 89.0% 5 Louisiana 88.9% 6 Oregon 88.7% 7 Wyoming 88.6% 8 South Carolina 88.4% 9 Oklahoma 88.0% 10 Connecticut 87.9% 11 Utah 87.8% 12 Kentucky 87.8% 13 Wisconsin 87.7% 14 Michigan 87.7% 15 Massachusetts 87.5% U.S. Average 84.5%

MANUFACTURING EDUCATION Many believe that American manufacturing is in a crisis because jobs have gone overseas. The fact is that we may never be able to compete with countries that offer significantly lower labor costs. But this is not the real problem for American manufacturing. The challenge is in the collision between demographic change and a workforce not prepared for 21st-century jobs. The demographic shift is not just about an aging society, it is about skills as much as numbers. We don’t just need more workers, we need smarter, better trained, and higher skilled workers to boost productivity.

In a May 2003 Industry Week article discussing the future shortage of skilled workers, futurist Roger Herman stated, “The manufacturing jobs that are going to be available are going to be more sophisticated than ‘traditional’ manufacturing sector jobs.”

Manufacturing offers job opportunities to workers across the educational spectrum – employing more than its relative share of the workforce with no more than a high school diploma, but also employing a large number of college-trained employees. In 2000, U.S. manufacturing had on its payrolls 16 percent of the workforce without a college degree, the second largest employer of that group in the country. (Retail trade is the largest employer of workers without college degrees.) However,

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manufacturing also employed 12 percent of the workforce who had at least an associate’s college degree, the second largest employer among the major industries of that group, as well.

Universities and Colleges The quality of Utah’s labor force has been recognized by many sources. Forbes ASAP magazine a few years ago has hailed Salt Lake City as the most “computer savvy” and “generally educated” city in the country, ranking the city number one in its “Best Places for Smart Companies” survey. Education sets the foundation for business in Utah. The state has the nation’s third highest high school graduation rate of 87.7 percent, and can boast that 26.1 percent of its residents over the age of 25 are college graduates. Utah is in the top ten of states in the category of Science and Engineering PhD’s awarded per 100,000 people (1999). Its three major public universities are the University of Utah in Salt Lake City, Utah State University in Logan and Weber State University in Ogden. The largest private school is Brigham Young University (BYU) in Provo.

There are three other four-year colleges, five community colleges, and nine applied-technology centers that educate more than 150,000 students annually, many of whom fuel the nation’s fifth-largest concentration of software-development companies. And to meet the educational needs of the future, Utah is developing a statewide computer network (SMARTUTAH) and spearheading the Western Governors’ University, which will link education and research resources with industries and the general public.

Applied Technology Colleges The Utah Legislature created the Utah College of Applied Technology (UCAT) in June of 2001, the state’s tenth and newest institution of higher education. This legislation organized nine existing applied technology education centers and service regions into one college, with several unique, individual campuses.

The nine UCAT campuses are located throughout the state of Utah. UCAT is a new concept in applied technology education, serving both high school and adult learners. Utah high school students attending a UCAT college campus enroll tuition-free, and tuition for adults is minimal. Students receive instruction in a self-paced format. The flexible schedule is ideal for working adults with limited time and for high school students desiring to supplement their high school schedule. Education Level of Utah’s Manufacturing Workforce In the 1990s, an increasing share of companies abandoned old economy ways of organizing work in favor of giving workers more autonomy and the ability to work in self-managed teams. At the same time, many manufacturing companies have deployed advanced production technologies. Both practices lead manufacturers to employ people with more education. Education levels of the manufacturing workforce in Utah are an indicator of both the quality of the manufacturing workforce and the degree to which the state’s manufacturers have embraced high-performance, technology-driven work organizations (See Figure 38).

Source: 2002 State New Economy Index, Progressive Policy Institute

FIGURE 38 – Rankings of States by Education Level of Manufacturing Workforce: 2002 Rank State Score*

1 Hawaii 1.76 2 Oregon 1.66 3 California 1.65 4 New Hampshire 1.56 5 Nebraska 1.56 6 Washington 1.53 7 Michigan 1.52 8 Utah 1.40 9 Colorado 1.40 10 Kentucky 1.33 U.S. Average 1.00

*A weighted measure of the educational attainment of the manufacturing workforce of each state. MANUFACTURING EMPLOYMENT Despite the loss of 2.3 million national jobs over the past few years, the manufacturing industry is facing a potential shortfall of highly qualified employees with specific, manufacturing-related, educational backgrounds and skills. The skills and knowledge of the workforce in Utah provide manufacturing’s competitive edge and is critical to the prospect for economic growth.

In a May 2003 Industry Week article discussing the future shortage of skilled workers, futurist Roger Herman stated, “The manufacturing jobs that are going to be available are going to be more sophisticated than ‘traditional’ manufacturing sector jobs.”

Figures 39 and 40 show Utah manufacturing employment and wage growth, as well as 2001 wages for general manufacturing positions in Utah.

FIGURE 39 – Utah Manufacturing Employment and Wage Growth

Item 1996 1997 1998 1999 2000 2001 Change 96-01

% Change 96-01

NUMBER OF ESTABLISHMENTS 3,073 3,198 3,253 3,332 3,391 3,467 394 12.82%

TOTAL EMPLOYEES IN THOUSANDS 126.8 132.9 133.6 133.6 130.9 126.6 -0.2 - 0.16%

PAYROLL IN MILLIONS $3,814.7 $4,176.1 $4,327.1 $4,470.0 $4,625.9 $4,627.7 $813.0 21.31% AVERAGE ANNUAL WAGE $30,100 $31,400 $32,400 $33,500 $35,300 $36,500 $6,400 21.26%

Source: Utah Department of Community and Economic Development, Business Information and Research Services

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FIGURE 40 – 2001 Mean Annual Wage – General Manufacturing Positions SOC Description Utah California Washington Texas Arizona

11-1021 GENERAL AND OPERATIONS MANAGERS $54,840 $82,790 $88,280 $58,720 $67,450

11-3051 INDUSTRIAL PRODUCTION MANAGERS $57,330 $71,420 $71,690 $63,230 $68,160

13-1023 PURCHASING AGENTS, EXCEPT WHOLESALE, RETAIL, AND FARM PRODUCTS

$42,930 $46,620 $46,280 $40,740 $41,830

17-2112 INDUSTRIAL ENGINEERS $55,880 $66,900 $65,820 $63,790 $59,450 17-2131 MATERIALS ENGINEERS $59,080 $64,070 $57,110 $62,960 $65,440

43-5071 SHIPPING, RECEIVING, AND TRAFFIC CLERKS $22,330 $22,700 $25,980 $21,500 $19,730

49-9041 INDUSTRIAL MACHINERY MECHANICS $41,090 $43,240 $41,810 $37,780 $37,150

51-1011 FIRST-LINE SUPERVISORS/MANAGERS OF PRODUCTION AND OPERATING WORKERS

$37,910 $43,930 $46,790 $39,990 $39,240

53-3032 TRUCK DRIVERS, HEAVY AND TRACTOR-TRAILER $34,660 $34,210 $34,610 $28,590 $31,180

Source: Bureau of Labor Statistics

REAL ESTATE AND UTILITY COSTS With the U.S. economy just now starting to show signs of improvement, Utah continues to be a place for bargain prices on real estate and significant savings on utility costs. Real Estate – Office Although Utah has been forced to contend with economic factors that have plagued the rest of the country, the Salt Lake area is considered to be among the healthiest office markets in the U.S. The Salt Lake market is more stable and less subject to the high/low swings common in other cities, and business-operating costs are still substantially lower than comparable markets. With vacancy rates up, net absorption down, and weighted average asking lease rates down, the savvy tenant can take advantage of the great deals currently available before the market’s inevitable rise.

According to CB Richard Ellis’ Salt Lake City Office Market Index Brief for the third quarter of 2003, there was more than 25.8 million square feet of office space in Salt Lake County, with a total vacancy rate of 21.16 percent. As of mid-year 2003, average weighted full-service lease rates were as shown in Figure 41.

FIGURE 41 – Salt Lake Office Lease Rates for Mid-Year 2003 Property Area Class Lease Rate

A $22.23 B $16.70 Central Business District C $13.75 A $19.15 B $16.51 Periphery C $12.94 A $19.88 B $17.23 Suburban C $13.57

Source: Colliers International, Utah Mid-Year Market Review 2003 Real Estate – Industrial The market presents unprecedented opportunities for industrial tenants. With anxious landlords offering generous concessions and lease rates comparable to those seen twenty years ago, tenants are getting more for their real estate dollar than ever before. Those in need of additional space to accommodate growth will find they can secure considerably larger facilities at the same, or possibly lower, rent.

According to CB Richard Ellis’ Salt Lake City Industrial Market Index Brief for the second quarter of 2003, there was more than 110.8 million square feet of industrial space in Salt Lake County, with a total vacancy rate of 9.52 percent. Average lease rates were as shown in Figure 42. FIGURE 42 – Salt Lake Industrial Lease Rates for 1st Quarter 2003

Property Type Lease Rate 0-5,000 S.F. $0.42

5,001-20,000 S.F. $0.36 20,001-50,000 S.F. $0.32

50,001 S.F.+ $0.23 Source: Colliers International, Utah Mid-Year Market Review 2003

Utility Costs In a recent study published by Business Facilities magazine in June 2003, Utah ranked third best in overall utility costs in the nation and placed in the top five in each category for lowest commercial and industrial costs. (See Figure 43 for a comparison to other significant high-tech manufacturing states.) FIGURE 43 – Utility Costs by State, In Dollars Per Million BTU’s of Energy

Electricity Natural Gas State (Overall Rank)

Commercial Industrial Commercial Industrial WASHINGTON (2) $13.74 $9.68 $5.82 $3.90 Utah (3) $15.01 $9.82 $4.68 $3.74 TEXAS (32) $20.11 $12.96 $5.56 $3.97 Arizona (43) $20.54 $15.45 $6.62 $4.35

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Massachusetts (48) $27.06 $24.03 $8.26 $7.17 California (46) $28.91 $20.94 $7.71 $5.42 New York (47) $35.50 $15.75 $7.55 $5.96 U.S. Average $21.52 $13.60 $6.57 $4.71 SOURCE: BUSINESS FACILITIES MAGAZINE, JUNE 2003 UTAH BUSINESS INCENTIVES To help assist with business and economic growth in Utah, the State of Utah and local municipalities offer the following business incentives: Research Tax Credits The Utah Partnership Research Committee initiated Research Tax Credit legislation to provide credits on corporate franchise tax and corporate income tax for research activities conducted in the state. The committee supported the Salt Lake Chamber of Commerce and the trade associations in Utah to obtain passage of the bill in 1998. The Utah legislature approved two research tax-credit bills. One credit is given for the purchase of machinery and equipment used for conducting qualified or basic research. The other provides a tax credit of six percent of a company’s research expenses to encourage the research and development of new and innovative technologies and products to help keep the state at the technological and economic forefront. The details of these credits are as follows:

Income tax credits of up to six percent of a taxpayer’s qualified research expenses for the tax year in excess of the taxpayer’s base amount. Limited to qualified research conducted in Utah. Available for basic research payments to qualified organizations. Quality research expenses include: (1) the purchase price of machinery and equipment primarily used for conducting qualified research in Utah; and (2) wages paid to an employee engaging in qualified research. Covers computers, computer equipment, and software. Available only if the equipment or machinery is not exempt from sales or use taxes. Available for basic research payments to qualified organizations.

Sales Tax Exemption for Purchase of New and Replacement Manufacturing Equipment Manufacturers (SIC codes 2000 through 3000) are exempt from paying sales tax on new equipment purchases for plant start-up in Utah, and replacement manufacturing equipment purchases are exempt from sales tax. Custom Fit Training Customized training is offered to meet companies’ needs; state funds are available to subsidize training expenses (maximum of five hundred dollars per employee); and training is conducted at Salt Lake Community college campuses, applied technology centers, or at the business’s location. Enterprise Zones Those counties meeting specified criteria are designated on a countywide basis. Eligible businesses locating or expanding in an Enterprise Zone may take corporate income tax credits based on the following:

$750 for the creation of each new job during the tax year; An additional $500 credit for the creation of each new job paying at least 125 percent of the county’s average monthly wage for the respective industry;

An additional $750 credit for the creation of each job adding value to agricultural commodities through manufacturing;

25 percent credit on the first $200,000 invested in rehabilitating a vacant building; and Annual ten percent credit on the first $250,000 investment and five percent on the next $1 million in plant, equipment, or other depreciable property.

Industrial Assistance Fund (IAF) The Utah State Legislature established the IAF in 1991. Initially structured as a loan, the IAF becomes a grant when the company meets projected job creation levels or local expenditures. The following are the IAF’s different guidelines for rural and urban communities. Urban

Financial strength of the company and track record are very important. IAF assistance is tied to the creation of jobs that pay more than (125 percent) the county average. Companies must create at least 50 new jobs. Companies must be in one of the following target industries: biomedical, finance, technology, aerospace, or be a corporate headquarters.

Rural

IAF covers companies from the Wasatch Front expanding to rural areas. IAF may be used to retain companies in rural areas. IAF assistance may be given to companies in rural areas creating ANY new jobs. Amount of IAF assistance is based on the number of new jobs created.

Corporate

Given to companies relocating to Utah from out of state. Given if the project would not locate in Utah without IAF assistance. Additional targeted industries are considered.

Property Tax Inducements (Tax Increment Financing) Municipalities can create Redevelopment Agency/Economic Development Agency (RDA/EDA) districts where the municipalities provide property tax inducements for economic development. These districts are either determined to be blighted areas (RDA), or areas in which the municipalities want to encourage greater economic growth (EDA). The details of the RDA/EDA are as follows: Available increment: 80 percent over 15 years. New property tax monies are returned to the developer/owner in the form of infrastructure

development, land cost write down, or other appropriate means. MANUFACTURING RESOURCE ORGANIZATIONS Utah offers several organizations and programs that provide resources for local manufacturing organizations. They include the Manufacturing Extension Partnership, the Utah Manufacturing Association, and the Intermountain Industrial Assessment Center at the University of Utah, the Centers of Excellence Program, and the Technology Transfer offices at the various Universities in Utah. The Manufacturing Extension Partnership The Manufacturing Extension Partnership (MEP) is a non-profit organization chartered with raising the level of competitiveness, performance, and profitability of Utah’s manufacturers. Small and mid-sized manufacturers account for more than half of all U.S. production. However, private consulting firms tend

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to serve large companies because of simple economics. As a result, smaller companies are left to their own devices to develop business strategies, access the latest technologies, and implement the newest management and manufacturing practices (lean manufacturing, ISO 9000, eBusiness, etc.) The MEP leverages state and federal support along with a network of Utah-based public and private resources to assist in providing services to small manufacturers. Fundamental to the MEP’s approach is the focus on its clients’ bottom line. In April 2002, the American Society for Training and Development completed an economic impact study for the Utah MEP. The study evaluated the impact of 40 recent projects. The results showed that the MEP Utah could be credited with creating or retaining 1,055 jobs, retaining or increasing sales by $122 million, and $474 million in industrial output. In continuing this work, the MEP is assisting Utah manufacturers in securing low-interest, long-term capital improvement loans from a fund of $27 million derived from the sale of tax-exempt bonds. The program will begin in January of 2004. The Utah Manufacturers Association The Utah Manufacturers Association (UMA) has over 750 member companies that employ over 87,000 people. The UMA is a non-profit, non-partisan corporation that has served as an active link between its members and elected officials in its advocacy activities since 1905. UMA publications and UMA events keep members connected with other business trends and people. IIAC Assessment Center The Intermountain Industrial Assessment Center (IIAC) at the University of Utah was established in 2001. The IIAC is funded by the U.S. Department of Energy to perform energy, waste, and productivity assessments for qualified manufacturers in the intermountain region. These assessments are free and confidential to the manufacturer. To be eligible for an IIAC assessment, a manufacturing plant must meet the following criteria: 1. Within Standard Industrial Codes (SIC) 2000-3999. 2. Within 150 miles of the University of Utah. 3. Gross annual sales below $75 million. 4. Fewer than 500 employees at the plant site. 5. Annual energy bills more than $75,000 and less than $1.75 million. 6. No professional in-house staff to perform the assessment.

An IIAC assessment was performed for Alcoa’s plant in Spanish Fork, Utah. The plant produces extruded aluminum products for the automotive industry, electrical equipment, and miscellaneous other uses nationwide. About 300 employees are involved in processing 82 million pounds of extruded products annually. The plant operates 24-hours a day, seven-days a week, and 52-weeks a year.

IIAC recommendations were based on observations and measurements made in the plant. Specific and quantitative recommendations for cost savings, energy efficiency, pollution prevention, and productivity improvement were identified where possible. As of September 2002, the following recommendations had been implemented (See Figure 44).

FIGURE 44 – IIAC Recommendations for Alcoa’s Spanish Fork Plant Implemented as of September 2002

Recommendation Annual Resource Savings Annual Cost Savings ($)

Implementation Cost ($)

Payback (years)

TURN OFF MELT BURNERS WHILE CHARGING 23,455 MMBtu natural gas 74,960 1,050 0

Turn off saw blow-off hose when not in use 168,200 kWh 6,150 400 0.1

REDUCE PEAK ELECTRIC DEMAND 600 kWh 6,360 10,000 1.6 Reduce compressed air leaks 171,900 kWh 4,980 1,000 0.2 Install low-pressure blower for agitation of water quench tank 114,200 kWh 4,180 6,780 1.6

Minimize open time of melt furnace door 304 million Btu natural gas 1,260 500 0.4

Install dross press 198,600 lbs solid waste 238 million Btu natural gas 107,610 75,000 0.7

Increase chip recovery from extrusion saw 441,900 lbs solid waste 39,460 10,000 0.3

TOTALS 24,087 million BTu natural gas 454,300 kWh electricity 640,500 lbs solid waste 244,960 104,730 0.43

Source: Office of Industrial Technologies, US Department of Energy The measures implemented to date at the Spanish Fork plant have been estimated to reduce electric energy consumption by 454,300 kWh per year; reduce natural gas energy consumption by 24,087 million Btu per year; and reduce non-hazardous solid waste generation by 640,500 lbs. per year. The total cost savings is estimated to be $244,960 per year, with an implementation cost of $104,730. Thus, the simple payback period on average was just over five months. Centers of Excellence Program The Utah State Legislature established the Centers of Excellence Program (COEP) in 1986 as part of a strategy to improve on Utah inventions being commercialized in Utah. The legislature approved the annual allocation of economic development funds to be awarded to university faculty members on a competitive basis through the COEP. This program will specifically fund certain projects that federal grants from agencies like the National Science Foundation would not support. These are the highly targeted, market-driven projects that perform the applied research, prototype development, and business planning necessary to successfully commercialize promising technical innovations here in Utah.

COEP projects require a 2:1 match with non-state funds, and are subject to an annual competitive renewal for up to five years of support. Over time, an advisory council composed of veteran technology executives has been formed to assist in reviewing and choosing the projects to be funded, and a requirement has been added that the funded projects (or “Centers of Excellence” or “Centers”) work with independent, pre-approved Commercialization Consultants to insure that the projects remain commercially focused. During the 2001-2002 fiscal year the COEP issued $1.87 million in grants to 16 active Centers for use in bringing significant new technologies closer to the marketplace. The 16 Centers received matching funds of $20.5 million, resulting in a matching fund ratio of 11:1, and (despite the recession) spun out eight new Utah companies. Over the first 16 years of the program, the Centers of Excellence have generated 179 patents, resulting in 204 license agreements and the creation of 150 Utah-based companies to license and market proprietary technology from the program.

Advanced Structural Composites One example of a successful Centers of Excellence program is the IsoTruss, created by IsoTruss Structures, Inc. The objective of the Center for Advanced Structural Composites (CASC) is to develop the commercial potential of the IsoTruss technology. The IsoTruss enables the creation of super lightweight grid structures with the potential for revolutionizing industries as diverse as civil infrastructure (e.g., communication and construction); aerospace, automotive, marine, and sporting structures; and virtually

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any application area requiring high strength, high stiffness, light weight, and superb corrosion resistance. CASC is a research group in the Civil and Environmental Engineering Department at Brigham Young University. Bioremediation A second successful example is Applied Biosciences, which began in 1996 to provide innovative environmental solutions to the mining industry. Early successes with water treatment for selenium and arsenic quickly found application in other industries as well. Applied Biosciences now provides solutions for a wide range of parameters in a variety of industries. It works closely with end-user customers and with its engineering and water treatment partners to provide the most cost-effective water treatment systems available. Other Manufacturing Technologies Developed by Centers of Excellence Companies The following are specific manufacturing technologies developed by companies involved in the Centers of Excellence Program.

A miniature-cooling device that replaces fans in airplane cockpit displays and personal computers using sound as the main energy source. A new method for welding metals and plastics that does not melt the material, does not add new material, and forms a joint that is base metal strong and virtually undetectable from the surrounding material. A method for redesigning any complex machine part to significantly reduce the number of parts, simplify the manufacturing process, reduce costs, and end up with a more reliable and wear-resistant device. A new Personal Prototyping System that makes rapid prototyping available to small companies and perhaps the private consumer.

Technology Transfer The Technology Transfer Offices of each of Utah’s major universities manage the affairs of dealing with technical works or intellectual properties that are generated at the universities and are of a scientific, engineering, or technical nature such as patentable or un-patentable inventions (devices, machines, processes, methods, and chemical compositions), computer software, and university collections.

An example in the instrumentation and electronics sector is Cross Check from Brigham Young University. Cross Check is a device that measures the properties of nonaqueous liquids and gasses. For example, Cross Check would allow the sensing of conductivity in resins, enclosed atmospheres, and petroleum products.

Utah Manufacturing Resource Organizations FIGURE 45 – Manufacturing Resource Organizations in Utah

The Economic Development Corporation of Utah (EDCU) 201 South Main Street, Suite 2010 Salt Lake City, Utah 84111 www.edcutah.org

Mr. Christopher Roybal President & CEO Phone: (801) 328-8824 Fax: (801) 531-1460

Manufacturing Extension Partnership 800 West University Parkway, MS-212 Orem, Utah 84058-5999 www.mep.org

Mr. Jerry Kilpatrick Director of Marketing Phone: (801) 863-8637 Fax: (801) 765-9739

Utah Manufacturers Association 136 East South Temple, Suite 1740 Salt Lake City, Utah 84111-1134 www.umaweb.org

Mr. Thomas Bingham President Phone: (801) 363-3885 Fax: (801) 363-0505

Intermountain Industrial Assessment Center University of Utah 50 South Central Campus Dr., Room 1206 Salt Lake City, Utah 84112 www.utah.edu/iac/

Dr. Melinda Krahenbuhl Phone: (801) 581-4188 Fax: (801) 585-5477

Utah Centers of Excellence Program 324 South State Street, Suite 500 Salt Lake City, Utah 84111 www.dced.utah.gov/techdev/

Mr. Michael A. Keene State Science Advisor Director Phone: (801) 538-8616 Fax: (801) 538-8888

Utah Technology Alliance 324 South State Street, Suite 500 Salt Lake City, Utah 84111 www.techalliance.utah.gov/index.html

Mr. Rod Linton Executive Director Phone: (801) 538-8770 Fax: (801) 538-8888

University of Utah Technology Transfer Office 615 Arapeen Drive, Suite 110 Salt Lake City, Utah 84108 www.tto.utah.edu

Dr. Jayne Carney Director Phone: (801) 581-7792 Fax: (801) 581-7538

Brigham Young University Technology Transfer Office A-285 ASB PO BOX 21231 Provo, Utah 84602-1231 www.techtransfer.byu.edu

Dr. Lynn Astle Director Phone: (801) 422-6266 Fax: (801) 422-0620

Utah State University Technology Commercialization 570 Research Parkway, Suite 101 North Logan, Utah 84341-9730 www.usu.edu/techcomm

Dr. Steven Kubisen Director Phone: (435) 797-9607 Fax: (435) 797-9612

Utah State University Innovation Campus 1770 North Research Park Way, Suite 120 Logan, Utah 84341 www.usu.edu/innovationcampus/

Teresa W. McKnight Manager Phone: (435) 797-9606 Fax: (435) 797-9605

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ABOUT THE ECONOMIC DEVELOPMENT CORPORATION OF UTAH The Economic Development Corporation of Utah (EDCU) is a private, statewide, non-profit organization formed in 1987, to provide a unified and professionally managed, economic development program promoting the state of Utah.

EDCU is an investor-based organization, with more than 230 private sector businesses and organizations, chambers of commerce, municipalities, and counties. Through these partnerships, EDCU facilitates an on-going effort to develop and nurture a thriving business climate throughout Utah.

EDCU specializes in assisting companies who are considering Utah for a business relocation or expansion. EDCU’s corporate recruitment team coordinates all of the information key decision makers and economic development/site consultants need as they evaluate Utah as a site location.

APPENDIX FIGURE 46 – Total U.S. Exports (Origin of Movement) via Utah Top 25 Countries Based on 2002 Dollar Value (in millions of dollars)

Rank and Country Value 1999

Value 2000

Value 2001

Value 2002

% Share 1999

% Share 2000

% Share 2001

% Share 2002

% Change

2002/2001 Utah Total and % share of U.S. Total 3,133.50 3,220.80 3,506.40 4,542.70 0.45 0.46 0.51 0.66 29.56

Total Top 25 Countries and % of Utah 2,947.50 3,020.50 3,285.40 4,348.50 94.06 93.78 93.7 95.73 32.36

1 Switzerland 399.5 452.9 696.4 1,341.20 12.75 14.06 19.86 29.52 92.58 2 United Kingdom 628.9 246 421.3 710.2 20.07 7.64 12.02 15.63 68.57 3 Canada 568.5 605.8 543.2 513.3 18.14 18.81 15.49 11.3 -5.49 4 Japan 378.5 402.1 396.4 427.1 12.08 12.48 11.31 9.4 7.75 5 Singapore 44 54.9 46.3 263.6 1.4 1.7 1.32 5.8 469.9 6 Netherlands 120.8 151.2 154.3 137.8 3.85 4.69 4.4 3.03 -10.64 7 Mexico 78.7 102.1 113.6 134.2 2.51 3.17 3.24 2.95 18.12 8 South Korea 67.2 128.9 127.6 88.4 2.15 4 3.64 1.95 -30.74 9 Philippines 79.6 105.2 79.4 84.8 2.54 3.27 2.26 1.87 6.83 10 Federal Republic of Germany 75.7 104.5 93.6 68.8 2.41 3.25 2.67 1.51 -26.47

11 Hong Kong 40.4 58.4 53.2 67.4 1.29 1.81 1.52 1.48 26.77 12 China 17.3 32.6 40.6 64.2 0.55 1.01 1.16 1.41 57.9 13 Belgium 53.1 72.8 58.6 62.7 1.69 2.26 1.67 1.38 7.03 14 Taiwan 43.6 76.3 57.1 59.7 1.39 2.37 1.63 1.31 4.56 15 Australia 44.9 59.7 54.1 51.6 1.43 1.85 1.54 1.14 -4.53 16 France 57.1 46.9 54.1 51.1 1.82 1.46 1.54 1.12 -5.57 17 Italy 45.9 39.6 37.5 39.1 1.47 1.23 1.07 0.86 4.27 18 Malaysia 47.3 44 50.3 31.2 1.51 1.37 1.43 0.69 -37.92 19 Costa Rica 2.7 18.6 20.8 31 0.08 0.58 0.59 0.68 49.08 20 Thailand 23.4 17.9 23.3 29 0.75 0.55 0.67 0.64 24.28 21 Spain 15 18.2 19.6 23.9 0.48 0.57 0.56 0.53 21.88 22 Turkey 19.8 30.3 33.5 23.4 0.63 0.94 0.96 0.51 -30.26 23 Ireland 64 98.3 55.3 18 2.04 3.05 1.58 0.4 -67.39 24 Sweden 7.1 12.2 13.6 14 0.23 0.38 0.39 0.31 3.15 25 Brazil 24.5 41.1 41.7 12.8 0.78 1.28 1.19 0.28 -69.25

Source: U.S. Census Bureau, Foreign Trade Division FIGURE 47 – Utah Top Export Products, Ranked by Dollar Amount in 2002 (in millions of Dollars)

Rank HS Code Commodity Value

1999 Value 2000

Value 2001

Value 2002

% Share 1999

% Share 2000

% Share 2001

% Share 2002

% Change

2002/2001

Total of All Commodities Via Utah And % Share Of U.S. Total

3,133.50 3,220.80 3,506.40 4,542.70 0.45 0.46 0.51 0.66 29.56

Total of Top 25 Commodities And % of Utah Total

1,750.50 1,642.20 2,038.80 3,221.70 55.86 50.99 58.15 70.92 58.02

1 710812 Gold, Nonmonetary, Unwrought 891.2 580 908.3 1,797.10 28.44 18.01 25.91 39.56 97.84

2 870899 Parts And Accessories Of Motor Vehicles

125.2 187.9 227 214.9 4 5.83 6.47 4.73 -5.34

3 854221 Digital Monolithic Integrated Circuits 0 0 0 201.9 0 0 0 4.45 0

4 870829 Parts & Accessories Of Bodies Of Motor Vehicles

172.4 160.8 91.5 121.2 5.5 4.99 2.61 2.67 32.51

5 210690 Food Preparations 53.3 66.2 82.2 95 1.7 2.05 2.34 2.09 15.57

6 854121

Transistors, Excluding Photosensitive, Dissipation Rate < 1 W

41.3 80 62.6 81.4 1.32 2.48 1.79 1.79 29.95

7 330499 Beauty & Skin Care Preparations 21.2 26.8 50.4 63.7 0.68 0.83 1.44 1.4 26.36

8 902230 X-ray Tubes 60.1 43 46.6 59 1.92 1.34 1.33 1.3 26.71

9 880330 Parts Of Airplanes Or Helicopters 100.7 113.7 108.2 52.2 3.21 3.53 3.09 1.15 -51.76

10 880310 Propeller Rotors & Parts Of Gliders & Aircraft, Non-powered/powered

66.3 93.9 80.2 50.7 2.11 2.92 2.29 1.12 -36.71

11 901890 Instruments & Appliances For Medical, Surgical, Dental, Veterinary

35.9 41.5 44.5 50.2 1.15 1.29 1.27 1.11 12.82

12 901839 Medical Needles, Catheters, And Parts

28.4 47 45.3 45.1 0.91 1.46 1.29 0.99 -0.45

13 902214 Apparatus Based On X-ray, Medical, Surgical, Veterinary

16.6 23.1 44.1 43.7 0.53 0.72 1.26 0.96 -0.91

14 710691 Silver, Unwrought 30.1 22.6 61 42.5 0.96 0.7 1.74 0.94 -30.38

15 261390 Molybdenum Ores And Concentrates Not Roasted

24.6 36.1 24.5 36.7 0.79 1.12 0.7 0.81 50.1

16 880529 Ground Flying Trainers And Parts Thereof

0 0 0 36.4 0 0 0 0.8 0

17 950699 Articles For Sports, Swimming Pools, Parts & Accessories

23.9 23.7 42 32.8 0.76 0.73 1.2 0.72 -21.75

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18 847330 Parts & Accessories For Adp Machines & Units

15.2 14.5 17.5 30.3 0.48 0.45 0.5 0.67 73.55

19 980240 Articles Donated For Relief 16.1 27.9 34.7 28.7 0.51 0.87 0.99 0.63 -17.26

20 391690 Monofilament, Cross-sections Over 1mm, Rods, Plastics

0.1 16.6 17.3 27.5 0 0.52 0.49 0.61 58.55

21 681510 Nonelectrical Articles Of Graphite Or Carbon

13.1 13 19.2 23.1 0.42 0.4 0.55 0.51 20.4

22 853669 Electrical Plugs & Sockets For Voltage Not Over 1000 V

1 1.1 0.8 22.6 0.03 0.03 0.02 0.5 2,658.38

23 854229 Monolithic Integrated Circuits, Other Than Digital

0 0 0 22.3 0 0 0 0.49 0

24 200990 Mixtures Of Fruit And/or Vegetable Juices

8 16.7 22 21.7 0.25 0.52 0.63 0.48 -1.22

25 360300 Safety Fuses, Detonating Fuses, Percussion Caps

5.8 6.1 8.9 21 0.18 0.19 0.25 0.46 134.97

Source: U.S. Census Bureau, Foreign Trade Division FIGURE 48 – Utah 2001 Merchandise Exports to Top Ten Purchasing Countries (Millions of Dollars)

Industry Switzerland Canada United Kingdom Japan Netherlands Korea Mexico Germany Philippines Belgium Industry

Total Agricultural Products 0 0.3 0.1 2.5 0 1.4 0 0 0.7 0 5.1

Livestock Products 0 0.1 0 0 0 0 0 0 0 0 0.2

Forestry Products 0 0.4 0 0 0 0.1 0 0 0 0 0.5

Fish Products 0 0 0.1 0.5 0 0 0 0 0.1 0 0.7 Oil and Gas 0 0 0 0 0 0 0 0 0 0 0.0 Minerals 0 22.7 0.9 44.5 12.6 0.5 0.6 0.3 0 13.8 96.0 Processed Food 3 29.2 2.1 67.5 4.5 11.4 12.3 0.6 4.9 1.9 137.3 Beverages 0 2.2 1.5 0.9 0 0 0.3 0 0 0 4.9 Raw Textiles 0 0.7 0 0 0 0 5.7 0 0.1 0 6.5 Milled Textiles 0 1.1 0.1 0.1 0 0 0.3 0 0 0 1.7 Apparel 0.1 0.6 0.7 0.9 0 0 0.2 0.3 0 0 2.7 Leather 0 1.4 0.7 2.7 0.2 0.1 0.2 0.2 0 0.1 5.7 Wood Products 0 0.2 0 0 0.4 0 0.1 0 0 0 0.7 Paper Products 0 35.7 0.5 0.4 0 0 2.9 0 0.5 0 40.2 Printed Material 0.1 4.6 1.5 0.8 0.6 0.1 2.4 0.7 1.5 0 12.3 Petroleum andCoal 0 0.1 0.1 0 0 0.1 0 0 0 0 0.3

Chemicals 0.5 39.1 6.5 77.7 6.3 7.5 10.5 4.6 0.4 8.5 161.6 Plastics 0 6.1 1.4 6.9 2.2 2 4.1 0.3 0.1 1.2 24.4 Nonmetallic Minerals 0 3.8 0.5 0.4 0.9 0 0.1 0.1 0.2 0 6.0

Primary Metals 678.5 49.8 263.8 7 0.6 1.1 0.7 0.3 0.4 0 1,002.10

Fabricated Metals 0 17.2 5.4 2.9 0.7 0.1 1.5 0.3 2.4 0.1 30.7

Machinery 0.9 44.6 21.5 8.7 7.9 2.8 2.8 4.9 0.8 4.1 98.9 Computers andElectronics 7.6 54.9 34.6 50.6 24.6 14.5 16.8 28.8 63.3 4 299.7

Electrical Equipment 0.5 14.3 30.1 11.5 0.7 0.4 0.9 14.7 0.1 1 74.3

Transportation Equipment 1.8 154.9 29.7 82.7 78.7 81.1 42.2 23.2 2.6 0.4 497.4

Furniture 0.1 7.1 0.1 0.2 0 0.1 0.2 0 0.3 0 8.3 Miscellaneous Manufactures 3 31.9 16.8 24.7 12.3 3.7 7.4 10.9 0.7 22.6 134.2

Scrap 0 0.2 0 0.5 0 0.2 0.5 0 0.1 0.5 2.1 Used Merchandise 0 1.2 0.1 0.9 0 0 0.1 0 0 0 2.3

Unclassified 0.1 18.9 2.4 0.9 0.8 0.2 1.1 3 0.3 0.3 27.9 Country Total 696.4 543.2 421.3 396.4 154.3 127.6 113.6 93.6 79.4 58.6 2,684.40 Source: U.S. Census Bureau SOURCES Executive Summary

1.

2.

The Utah Energy Office reported that Utah high-tech manufacturing contributes $2.3 billion to the economy. The numbers describing the U.S. business productivity increase in the second quarter of 2003 in the Outlook section was reported by Reuters on September 4, 2003. The numbers describing the U.S. manufacturing growth in the second quarter of 2003 in the Outlook section was reported by Reuters on September 2, 2003.

Manufacturing Overview

The quote in the text box is from Joe Popkin and Company, “Securing America’s Future: The Case for a Strong Manufacturing Base,” commissioned by the Council of Manufacturing Associations, June 2003. The Utah Energy Office and the U.S. Department of Energy advanced the “Hard-hat” Technology description of Utah manufacturing.

Aerospace

Employment and wage data comes from the report “Commission on the Future of the U.S. Aerospace Industry,” October 2002. Note: 2001 employment data are preliminary. Wage, payroll, and establishment data are for 2000, the most recent available from the U.S. government. Source: U.S. Bureau of Labor Statistics

Computer Hardware, Electronics, and Telecommunications Statements made in the introduction of this industry section come from three sources:

“Targeted High Technology Manufacturing Industries for Utah,” Bureau of Economic and Business Research, David Eccles School of Business, University of Utah, August 31, 2000 Allison Thomson, “Industry output and employment projections to 2008,” Monthly Labor Review, November 1999, Volume 122, Number 11, http://www.bls.gov/opub/mlr/1999/art4abs.htm

3. Bureau of Labor Statistics, “Electronic Equipment Manufacturing,” Career Guide to Industries, 2001-02 Edition, pages 59 – 63, http://stats.bls.gov/cbhome.htm

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In the wage table Figure 15, page 20, a N/A (not available) appears for the wage in Arizona for Computer Hardware Engineer. An explanation was received via e-mail and is as follows:

The Occupational Employment Statistics (OES) program is not able to provide the information you seek. All OES data are reviewed before publication by OES and State staffs to check if the estimates pass confidential, statistical, and economic tests. Data for Computer Hardware Engineers in Arizona failed BLS/OES standards.

Joseph C. Bush Economist Occupational Employment Statistics (OES)

The claim of being the number six worldwide Printed Circuit Board (PCB) manufacturer comes from the Compeq company’s website.

Consumer Goods Information on Easton Sports improved distribution strategy was highlighted in “Warehouse of the

Month, Big Win!,” an article in Modern Materials Handling, December 1, 2002. Food Processing The Food Institute numbers were reported in Site Selection magazine, “Food for Thought,” November

2002. In the wage table Figure 21, page 33, a N/A (not available) appears for the wage in Arizona for

Agricultural and Food Science technicians. An explanation was received via e-mail and is as follows: The Occupational Employment Statistics (OES) program is not able to provide the information you seek. All OES data are reviewed before publication by OES and State staffs to check if the estimates pass confidential, statistical, and economic tests. Data for Agricultural and Food Science technicians in Arizona failed BLS/OES standards. Joseph C. Bush Economist Occupational Employment Statistics (OES)

The story on the new Malt-O-Meal plant was complied from two news stories: Site Selection magazine, December 16, 2002, “Cereal Continues: Malt-O-Meal’s Utah Plant Is a Go Again,” and a July 22, 2003 article in the Salt Lake Tribune, “Malt-O-Meal to hire 250 at Tremonton plant.”

The story about Cargill Flour being a main supplier for Pepperidge Farm was written in a Cargill News International publication, May 2000, “Bread basket - Making ‘the perfect food’ more perfect.”

The Site Selection magazine article entitled “UTAH SPOTLIGHT: All Points West - Access to Western markets is behind many decisions to locate facilities in Utah,” from January 2003, highlighted the new Wells Dairy plant.

Paper products The Pulp & Paper survey is found in the publication’s January 2003 issue. Information for this industry was obtained from the report “Utah Forest & Paper Industry at a

Glance,” American Forest & Paper Association, 2001. Industrial Machinery KnowledgeSpace received an honor when Control Engineering, in its March 1, 2002 issue, listed

KnowledgeSpace as one of its Progressive Innovations recipients. The awards were explained in the following manner, “The 35 winners of Control Engineering’s 15th annual Editors’ Choice Awards showed once again in 2001 that control and automation’s creators will likely never run out of useful ideas and solutions.” KnowledgeSpace won under the category of “Control, optimization based on algorithms.”

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Control Engineering also reported in its February 6, 2002 issue the details of Fonix and Parvus partnership to deliver embedded speech recognition applications.

Exporting Information in the US overview section came from Joe Popkin and Company, “Securing America’s

Future: The Case for a Strong Manufacturing Base,” commissioned by the Council of Manufacturing Associations, June 2003

Information in the Utah overview section is from the “State of Utah, Economic Report to the Governor, 2003,” and the U.S. Census Bureau’s Foreign Trade Division.

Information in the “Utah’s Merchandise Exports in Detail” section is from the “Utah and the Global Economy 2003, Merchandise Export Report,” Governor’s Office of Planning and Budget.

Information in the “Other Export Numbers” section is from the Massachusetts Institute of Social and Economic Research, U.S. Commerce Dept., and the U.S. Agriculture Dept.

Distribution See the EDCU Distribution profile. The Nu Skin story is from Logistics Management, July 1, 2002, “For your eyes only.”

Manufacturing Education More data and research on the role of education in American manufacturing can be found in the June 2003 Bulletin of the Utah Manufacturers Association. Their website is http://www.umaweb.org. Employment Wage data from the table Figure 39, page 55, can be found at

http://dced.utah.gov/BIRS/industry/state.htm.