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www.slenterprise.com January 16, 2017 Volume 46, Number 24 $1.50 OF NOTE Packsize growth means 354 new jobs for Utah A Salt Lake City-based packaging manufacturer will expand operations in Utah, adding up to 354 jobs over the next seven years. Packsize International made the an- nouncement about the $9.2 million project last week after being approved for a state Surviving the scandal incentive from the Governor’s Office of Economic Development (GOED) board. Despite lawsuits and crimi- Founded in 2002, Packsize creates an nal investigations over claims “on-demand” packaging system placed Volkswagen cheated on emissions onsite for companies, allowing them to testing procedures, the Germany- save an average of 20 to 30 percent in cor- based auto manufacturer booked rugated packaging costs. The system in- An attendee at the 2017 Outdoor Retailer Winter Market tries out a fat-tire bicycle on the snow at cludes custom box-making hardware and a 3.8 percent increase in sales Solitude Mountain Resort on Jan. 9 during the All Mountain Demo event. More than 22,000 del- software and other services designed to re- revenue in 2016, helped by an egates, including manufacturers, retailers and industry representatives, attended the show, which 11.8 percent jump in December. concluded on Thursday. Photo courtesy Outdoor Retailer. duce corrugated inventory requirements, The increase pushed VW toward increase handling and transportation ef- the title of world's largest auto fi ciencies, and minimize wasted shipping space. maker, now trailing only Toyota — Real winter conditions welcome Packsize has operations in more than 10.15 units to 9.93 million units in 25 countries. Among the industries using 2016. Packsize are fulfi llment/e-commerce, fur- niture, cabinetry, printing/marketing and Industry News Briefs 22,000 to Outdoor Retailer show manufacturing. Among its customers in the pages 6 Participants in the Outdoor Retailer All “We’re excited that after fi ve years, U.S. are Staples and Cabela’s. Business Calendar Mountain Demo day at Solitude Mountain winter is fi nally beginning to arrive,” said “Utah’s bright entrepreneurial commu- page 9 Resort had something to celebrate last week Marisa Nicholson, Emerald Expositions nity and labor market make it attractive for — snow. The traditional kickoff to the an- vice president and show director for Out- Packsize to compete globally from here,” Real Estate Section nual Outdoor Retailer Winter Market, the door Retailer. “We know how critical this is said Hanko Kiessner, chief executive of- pages 14-15 demonstration event takes attendees to the to our retailers, reps and brands and we’re fi cer. “We affi rm our commitment to serv- mountains to show off new products in the working to make the show as effi cient ing as a proud member of Utah’s growing conditions in which they will be used. With as possible, down to making it only three community of companies that are partici- a snow base of 77 inches, Solitude was the days. We want the industry to come togeth- pating in building the ‘Industrial Internet of perfect setting for the event this year, un- er, make plans for the future and get back Things’ as part of the fourth industrial rev- like some past years when snow conditions weren’t so favorable. see RETAILERS pg. 4 see GOED pg. 12 Christensen: Focus on 'job' it does, not product itself nies focus on their particular product or ser- “The reason why that’s important is, Brice Wallace vice rather than on the “job” that it can do what causes us to buy products or services The Enterprise for customers. Some of the tasks are simple is that jobs arise in our lives that need to and repetitive; others are complicated and get done,” he said of the concept. “And we A renown author and educator who time-consuming, said Christensen, a Utah concluded that understanding the costum- proffered the theory of “disruptive innova- native who currently is the Kim B. Clark er is the wrong unit of analysis. It’s under- tion” spent a while last week in Salt Lake Professor of Business Administration at standing the job that allows us to be suc- City discussing McDonald’s milkshakes. the Harvard Business School. The “doing cessful over and over again.” Clayton Christensen used that food a job” concept is explored in Christensen’s product toAFCU-Strip_112116.pdf demonstrate how many 1 11/21/16compa- 4:19latest PM book, Competing Against Luck. C see CHRISTENSEN pg. 5 M Y CM MY CY CMY K 2 • January 16-22, 2017 • The Enterprise - Utah's Business Journal Looking for a hot housing market? Three of nation's top 10 are in Utah Utah’s three major markets tionally, Zillow expects home val- and Nashville are desirable plac- Zillow’s Home Value Forecast, Housing experts were sur- are all predicted to be among the ues to appreciate 3 percent over es to live, with good employment which forecasts the change in the veyed in the Zillow Home Price 10 hottest housing markets for the next year. opportunities and steady econom- Zillow Home Value Index over Expectations Survey between 2017 by Zillow, a Seattle-based “Zillow’s 2017 list highlights ic growth. The growth and de- the next 12 months; recent in- Oct. 28 and Nov. 15. The survey real estate data and analytics firm. that jobs and opportunities are mand for housing will drive up come growth; and current unem- was conducted by Pulsenomics Provo came in at No. 3, Salt Lake increasingly growing in smaller home prices in 2017 and these hot ployment rates. Those three vari- LLC on behalf of Zillow Inc. and City at No. 5 and Ogden at No. 8. markets away from the coasts,” markets are experiencing change ables were then scaled for the 100 asked the experts about their ex- Nashville was the top-rated mar- said Zillow chief economist as more people discover them.” largest U.S. metros and combined pectations for the housing market. ket with Seattle finishing ahead of Svenja Gudell. “Mid-size cit- Three variables influenced to form a “hotness score,” pro- A total of 111 experts were sur- Provo at No. 2. Orlando finished ies like Salt Lake City, Portland Zillow’s hot market predictions: ducing the top 10 list. veyed. at No. 4. Portland, Oregon; Knoxville, Tennessee; Denver and Sacra- mento round out the 10 hot mar- kets. Foxley tabbed to replace Edwards at helm of EDCUtah To determine which markets The Economic Development been serving as EDCUtah’s chief Goldman Sachs, Vista Outdoors, iarity with EDCUtah, our pub- would heat up over the next 12 Corporation of Utah (EDCUtah) of staff during the CEO search. Procter & Gamble, Solar City and lic-private business model and months, Zillow looked for plac- has announced the selection of He has been with EDCUtah for Stadler Rail. the critical role the organization es with quickly rising home val- Theresa A. Foxley as the orga- more than a decade and recently Prior to her time at GOED, plays in growing Utah’s econo- ues, low unemployment rates nization’s new relocated back to Utah from North Foxley served as a business and fi- my made her the best possible and strong income growth. Pro- president and Carolina, where he served as vice nance attorney with the Salt Lake candidate for this important job. vo has the lowest unemployment CEO. EDCU- president of economic develop- office of Ballard Spahr, a law firm As EDCUtah enters its 30th year rate of the 10 hottest markets at tah’s executive ment services for the Charlotte with 14 offices nationwide. At of business, I’m confident that 2.7 percent. Home values in all committee rec- Regional Partnership. Ballard Spahr she represented a she can help place the organiza- three Utah markets are expected ommended Fox- Foxley assumes her new role diverse set of clients on corporate tion in the best possible position to appreciate more than 4 percent ley after an ex- at EDCUtah after most recently and financial matters, including for future success.” in 2017, according to Zillow. haustive search “Theresa Foxley is an ex- serving as the deputy director of mergers and acquisitions. Foxley Although Nashville is ranked and her selec- cellent choice to lead EDCU- Theresa Foxley corporate recruitment and busi- has also served as corporate coun- No. 1, Zillow’s list is largely tion was ap- tah,” said Gov. Gary Herbert. ness services at the Governor’s sel to a venture-funded company made up of western cities. Port- proved at a recent special meet- “She has a good understanding land reported the strongest home ing of the organization’s board of Office of Economic Development during its acquisition by, and in- of economic development and value growth in 2016 among the trustees. (GOED), where she oversaw tegration with, a larger publicly business needs. In addition, her 100 largest U.S. metros, with Foxley replaces Jeff Ed- all of the business development traded company. strong relationships with GOED home values up almost 15 per- wards, who retired from EDCU- functions of incentives, govern- “The board of trustees is de- and other key government and cent over the past year. Housing tah in November. ment contracting, bonding and lighted to have Theresa join ED- business leaders across the experts predict that Portland, Se- In addition, EDCUtah an- business resources. During her CUtah,” said Dean Luikart, se- state will help make the transi- attle and Denver will continue to nounced the promotion of Mi- tenure, Foxley worked with doz- nior vice president at Wells Fargo tion seamless.