UTAH’S BUSINESS JOURNAL www.slenterprise.com Feb. 6-12, 2012 Volume 41, Number 28 $1.50 $34 million SLC THIS Business property tax industrial supplier relief legislation WEEK sold to New York firm stalls in committee MSC Industrial Direct Co., a By Brice Wallace Rep. Patrick Painter, R-Nephi. Melville, N.Y.-based distributor of The Enterprise Painter acknowledged that, metalworking and maintenance, A bill designed to help busi- from a practical standpoint, the Firm launches repair and operations (MRO) ness owners with personal prop- bill would not eliminate audits but school for supplies to industrial contractors serves its customers from loca- erty tax costs stalled in a Utah it might lessen the likelihood. throughout the U.S., has acquired tions in Salt Lake City, Phoenix legislative committee. “If there’s anything that I’d freight brokers the assets and certain liabilities and Tijuana, Mexico. HB41 received much dis- like to give to the small-business See page 3. of ATS Industrial Supply, a Salt “We are pleased to acquire cussion but no vote during a meet- owners in this state for hanging Lake City-based firm that had ATS Industrial Supply Inc., a ing of the House Revenue and in the last three or four years of sales of approximately $34.5 mil- regional leader with excellent Taxation Committee as people this recession, [it] is a break on lion in 2011. management and an emphasis questioned whether the measure some of their equipment personal Terms of the deal, which on value-added services that fits would result in too much of a tax property [tax],” Painter said. “If I closed Jan. 31, were not disclosed. well with the MSC model,” said Wheeler shift onto Utah residents. can make life easier for them, then MSC is funding the acquisition David Sandler, CEO of MSC. creates new The bill would exempt from I’m all for it, and that’s basically with available cash. “In keeping with our long-term taxes the first $25,000 of taxable what the bill does.” mining services Established in 1970, ATS acquisition strategy, ATS builds tangible personal property for About 50,000 businesses division Industrial Supply Inc. is a leading out our geographic footprint, sig- metalworking and MRO industrial nificantly increasing our presence businesses. Currently, the level statewide would benefit from the See page 4. distributor in the Rocky Mountain in the Rocky Mountain region, is $3,500, although a consumer bill, but it would result in a tax region. It distributes a broad range while further extending our lead- price index component has moved shift of about $12 million. Painter of industrial tools, cutting tools, ership position in metalworking. it to about $3,800. said business owners would see a • Earnings Roundup • abrasives, machinery, precision We welcome their talented team “My motivation for this rise in business real estate taxes See page 6. instrument supplies and other of associates to the company and is hearing from a lot of small- and homeowners also would see MRO-related supplies to a large look forward to working together business constituents that say if personal property taxes rise, typi- • Industry Briefs • customer base ranging from small to grow our combined business- there’s one thing they’d like to cally $7 to $12 on a $200,000 Begin on page 7. machine shops and fabricators to es.” eliminate [it’s] personal property home, depending on the county. some of the largest aerospace and David Hellberg, CEO of audits,” said the bill’s sponsor, • Calendar • manufacturing concerns in the see BILL page 2 See page 13. country. ATS Industrial Supply see ATS page 4 Utah County start-up receives Real estate speaker: U.S. economy $20 mil. in additional funding

suffers from exaggerated uncertainty Lindon-based Domo, a new By Brice Wallace sion to have ended in commercial software-as-a-service (SaaS) ven- The Enterprise real estate, it has a lot more to do ture launched by Omniture co- Today’s U.S. economy is suf- with that more-pedestrian defini- founder Josh James, has closed fering from “exaggerated uncer- tion of ‘recession’ than it has to $20 million from Institutional tainty” as it recovers from the do with economists’ definition of Venture Partners (IVP) in Series recession. ‘recession.’ … If we are not creat- A-1 funding. This round brings That’s what Sam Chandan, ing jobs, then we will not observe total investment in Domo to $63 president and chief economist at sustained demand for commercial million. Chandan Economics, told a group real estate in this country,” said “While we weren’t in the of Salt Lake real estate profession- Chandan, who also is an adjunct market for additional funding, the James als last week. professor in real estate and public capital from a trusted and experi- addressing high-growth markets. Economic figures such as policy at the Wharton School of enced partner such as IVP made GDP accelerated throughout 2011 the University of Pennsylvania. Josh is an extraordinarily tal- a lot of sense. We’ve experienced and the recovery has actually Corporate profits are back ented, world-class entrepreneur. positive feedback from the mar- lasted longer than the recession — the 2011 third-quarter figures We know he has the experience ketplace,” James said. “This move itself, but “families don’t feel the were higher than those in the peak to build Domo into a disruptive recession is over because we’re markets of 2007 — “but that’s not fills the coffers and enables us and dominant player in a growing not creating jobs. … That makes translating into actual outcomes” to stay focused on execution. It $10 billion market,” said Todd it [feel] like the recession has not for businesses or individuals, he also provides flexibility as we Chaffee, general partner, IVP. In ended, even though the economy said. The result is that labor utili- build out our sales organization addition to Omniture, IVP has may be expanding,” Chandan said zation — how many people ages and position the company to take backed a rich portfolio of Internet during the 2012 Utah Commercial 18 to 65 who are actually working, advantage of strategic growth leaders and disruptors, such as Real Estate Symposium. which he said is a better indicator opportunities.” Concur, Dropbox, LivingSocial, That weak labor market than the unemployment rate — IVP invested in James’ prior Shazam, Twitter and Zynga. remains a drag on the economy has been “falling precipitously.” company Omniture, and developed IVP joins a list of angels and and, perhaps as importantly, peo- While a year ago compa- a relationship with the Omniture investors including Benchmark ple’s perception of the economy. nies had trouble finding credit team through that investment. Capital, Andreessen Horowitz, “Ultimately, when we think and capital, now they are hesitant “At IVP, we look for dynam- Ron Conway and David Lee of about what it means for a reces- see REAL ESTATE page 2 ic management teams that are see DOMO page 2 2 The Enterprise Feb. 6-12, 2012 took place during the last quarter ticularly the retail market in Utah, back in with their families are now “Utah investors may well pre- REAL ESTATE of 2011 and into 2012, accord- will continue to see and enjoy an seeking to get back into the rental sume the higher range of growth from page 1 ing to Brett Palmer, retail and improving year.” markets. Foreclosures are slowing predictions due to solid Utah fun- investment property specialist at but are still a lingering problem, • Industrial: Chris Liddell, an daments. The market cycle appears to use their profits to create jobs Mountain West Commercial Real associate at CBRE, noted that the working to force people into rent- to have been bouncing along the because they remain concerned Estate. Lower rents allowed ten- industrial market saw a “modest” als, he said. bottom, with a modest climb to a about the business environment ants to have “comfortable” occu- increase in total gross activity in “[The year] 2012 should con- over the next six to 12 months. pancy costs that are helping drive 2011. There was lots of construc- tinue to see solid economic stabil- recovery has that begun.” With previous recessions, an the economy, he said. tion, but much of it was specula- ity, with moderate growth,” Hart • Michael Morris, executive average of 28 months would pass “Even with this increase in tive. As for 2012, he said there said. “With that said, the Greater vice president of Zions Bank and from the beginning of a downturn activity, rents have been slow to should be “no major peaks or val- Salt Lake multifamily market managing director of real estate until jobs lost during the recession respond and are just starting to should remain strong. We see at leys.” capital markets, said qualifying were recovered. The U.S. is now at show signs of improvement,” he least 2 percent rent growth even • Office: Vacancy and absorp- for a mortgage remains an obstacle the 48-month mark from the most said, noting that rents likely will with the new supply of apartments tion rates strengthened in 2011, recent recession’s beginning and not change much and retailers are coming in the market. Occupancy for potential homeowners. “It is with a stronger demand for sub- “only a small fraction” of lost jobs cautious about opening new stores. levels should remain around 95 the qualification process that is urban space, increased demand has been recovered, he said. “We will continue to see only min- percent. [In] 2012 and even into preventing a stronger recovery in for higher-quality properties and But Chandan noted that reces- imal adjustments to rent, land and 2013, we see a stable rental mar- a return of modest speculative residential housing right now and sion impacts often last for years in building prices until the economy ket.” construction, according to Dana it is boosting the demand side for real estate markets. One recession continues to improve, consumers • Investment markets: Utah multifamily housing, and that can ended in 2001 but national office grow in confidence, more prod- Baird, director and office spe- saw “distinct” increases in transac- last for a while,” he said. space demand did not return to uct is absorbed and, perhaps most cialist at Cushman & Wakefield/ tions and dollar volumes in 2011, pre-recession levels until 2005. In importantly, retailers’ sales con- Commerce. Vacancies should drop said Jared Booth, vice president “The residential black cloud some markets, rents and occupan- tinue to improve.” in 2012 but less than in 2011, she of investment at Coldwell Banker is still out there. It’s holding back, cy rates in 2007 were still lagging Still, he said, Utah is “a bright said. Commercial. The year began in my opinion, the entire economy behind what they were in 1999 and spot in the national landscape.” • Multifamily: Utah added with hope of a “robust” economic and it needs to be repaired and it jobs last year and “an employed 2000. “Indications are that the rebound, but the pace did not con- needs to fall on its own. The lon- The symposium also fea- momentum of late 2011 should workforce equals a strong rental tinue was strongly as expected ger the subsidies, the more inter- tured discussions about various continue through 2012,” he said. market,” said Kevin Hart, vice after the first quarter. The economy vention, the longer the landing. Salt Lake real estate sectors. They “If the world conditions and the president for ARA’s West region. is recovering, “but high unemploy- included: political and debt factors plaguing Homeownership is slipping, ment levels remain a formidable There’s still some left but we real- • Retail/multi-use: Much of our national economy don’t put a adding to the pool of new rent- headwind to recovering real estate ly need to flush what is out there in the increased activity in this sector pin in our bubble, Utah, and par- ers. Young adults who had moved markets,” he said. the system and get to a bottom.” BILL million collected annually in per- Independent Business, concurred, DOMO in the cloud, in spreadsheets and sonal property taxes in the coun- calling some audits “brutal” and dictionary-sized reports ... hard to from page 1 from page 1 ty, about $4.8 million would be time-consuming. “The time and search, and hard to make sense of exempted under the bill — “not an the burden on small businesses to SV Angel and Hummer Winblad. it all. By the time you get the data Rep. Gage Froerer, R-Huntsville, inconsequential amount,” he said. track all of these items is crazy. Domo bills itself as a new you want or need, the information said that shift might be “a little too Gardner added that he opposed … It takes them away from the form of business intelligence is inaccurate, irrelevant or has drastic on some of our residents.” the bill because the decrease in work that they’re supposed to be (BI) — an executive management been massaged and manipulated Salt Lake County Assessor the tax base effectively would doing,” she said. platform delivered as a service so much that you don’t have con- Lee Gardner said the bill will increase the tax rate. Daly also noted that busi- that helps managers and execu- fidence in it or the level of trans- not change the number of audits Still, Painter said small-busi- nesses pay sales taxes when they tives transform the way they run parency you want. With Domo, all his office conducts although it ness owners could benefit, not purchase items, only to see them their business. According to the the information you need is in one might shift “what categories we only from the exemption, but, taxed over and over again as per- firm’s website, “today, business place. look at.” Of 27,000 personal if fewer are audited, the cost of sonal property. data lives in silos: on premise, “We’ve been testing the property accounts in the county, lost time when handling audits. The Revenue and Taxation market through an early adopter about 16,000 would fall under the Candace Daly, Utah director Interim Committee had recom- program and the overwhelming $25,000 threshold, he said. Of $65 of the National Federation of mended the bill. response signals that we’ve tapped into a major pain point for CEOs and other executives,” James said. “Today, we can’t install customers fast enough. We are scheduling support customers weeks out and have THE ENTERPRISE [USPS 891-300] a two-month waiting list for our Published weekly by Enterprise beta product. We’re leaning in what you Newspaper Group Inc. even more aggressively to this 825 N. 300 W., Suite C309, opportunity.” Salt Lake City, UT 84103 Telephone: (801) 533-0556 Fax: (801) 533-0684 Website: www.slenterprise.com. SUGAR HOUSE For advertising inquiries, e-mail [email protected]. To contact the OFFICE SPACE newsroom, e-mail [email protected]. Subscriptions are $55 per year for online only, $65 per year for print only and $75 per year for both the 2257 South 1100 East print and online versions, Salt Lake City, UT 84106 or $1.50 per copy. Opinions expressed by columnists are not necessarily the opinion or policy of The Enterprise Sugar House $16 / RSF / Year Copyright 2012 Enterprise Newspaper Group Inc. 500-12,000 Sq. Ft. Available All rights reserved Periodicals postage paid at Call 801-486-8157 or email Salt Lake City, UT 84199. POSTMASTER: Send address [email protected] for corrections to P.O. Box 11778, property information and Downtown Station features. 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Secure prime office space now as Sugar House looks forward to light rail and major developments in the near future. Feb. 6-12, 2012 The Enterprise 3 Bill would lower companies' max CHG Healthcare names Beck president CHG Healthcare Services, since 2008. unemployment insurance rates Salt Lake City, has promoted Scott Founded in 1979, CHG Beck to president. Beck will also Healthcare Services is one of the By Brice Wallace they have no rate experience, this point, they’re teetering on retain his current position as chief nation’s oldest and largest health The Enterprise they pay the average rate for their the edge of whether or not they operating officer of the company. care staffing firms employing Utah companies’ maximum industry, which often is at the can hire an additional employee Michael Weinholtz, previous pres- approximately 1,400 profession- unemployment insurance rates maximum rate under current stat- and this [bill] is a piece of that, ident of CHG, will continue in his als across the United States. The would drop under terms of a utes. “It would almost be prohibi- to choose whether or not they can capacity as CEO of the company. company provides a comprehen- Senate bill. tive to some” new businesses to hire a new employee. We want Beck joined CHG in 1999 SB129 would reduce employ- pay 9 percent of their payroll to encourage them to hire more and has held the positions of sive service offering that includes ers’ maximum unemployment for unemployment insurance, said employees. We want them to start chief marketing officer; president temporary and permanent place- insurance contribution rate from Tom Bingham, president of the a new business. We want them of the company’s largest divi- ment of physicians, allied health 9 percent to 7 percent starting this Utah Manufacturers Association. back and strong in the economy in sion, CompHealth Locum Tenens; professionals and nurses to hospi- year and cap the social unemploy- “We understand as employ- Utah.” group president; and chief operat- tals and healthcare organizations ment insurance rate at 0.4 percent ers that this will socialize some of Bramble said the bill would ing officer, a position he has held in all 50 states. for 2012. The bill’s sponsor, Sen. the costs because there are some reduce taxes by $9 million in fis- Nature's Sunshine names new president Curt Bramble, R-Provo, said Utah at the highest level,” Bingham cal 2012, $20 million in 2013 and currently has the second-highest said. “Some of those at that high- $7.3 million in 2014. Nature’s Sunshine Products as president, international for maximum rate in the country, est level, about 5 percent, are Starks said the bill would Inc., a Provo-based natural health DMX Music Corp. In addition behind Minnesota. manufacturers. … The preponder- slow the increase in the Utah and wellness company, has to consulting experience, Roberts Even at 7 percent, the cap ance of them are in the construc- Unemployment Compensation appointed D. Wynne Roberts as has held significant international would put Utah as the fifth-high- tion industry, which has been hit Fund, which brought in about president and chief operating offi- executive positions at XE Systems est, “but it would provide some very hard during this recession.” $300 million during the past year. cer. Inc. and NCR Corp. immediate relief to approximate- Candace Daly, Utah direc- Tax revenues last year were about Roberts most recently Nature’s Sunshine Products ly 2,700 employers for this year tor of the National Federation of 20 percent higher than expected served as chairman of the board makes, markets and distributes and we figure a greater num- Independent Business, said the and overall payroll grew for the for LifeCare Corp., a Romanian ber for 2013 and beyond,” Bill bill is “very critical” for Utah’s first time in three years, while direct selling company. From nutritional, herbal, weight man- Starks, unemployment insurance small businesses. benefit costs were down 25 per- 2005 to 2009, he was senior vice agement, energy and other com- director for the Utah Department “Right now, it is not the avail- cent. The fund now has $350 president, EMEA (Europe, Middle plementary products through a of Workforce Services, told the ability for them to get a loan that million and is on its way to what East and Africa) at Herbalife, one global direct sales force of more Senate Revenue and Taxation is stopping them from expanding he said was a minimum adequate of the world’s largest direct sell- than 600,000 independent distrib- Committee, which passed the bill or increasing their businesses,” level of about $600 million. ing companies. He also served utors in more than 40 countries. out. The bill is “an avenue to bring Daly said. “It is actually the cost SB129 also would allow the the range of the tax rates more in and whether or not they can sus- Utah Unemployment Insurance line with the rest of the country,” tain that cost because the con- Division to accept compromises he said. sumers have been very slow at from employers to reduce past- Speakers said the bill will coming back, in this downturn due debt under certain circum- benefit new businesses. Because in the economy, to purchase. At stances. Firm launches licensed freight broker school Interide Logistics, a Salt that will provide transportation Logistics president, and several Lake City-based third-party logis- to and from the Salt Lake City key members of his former C.R. You take care tics company, has created a post- airport as well as to and from the England executive team. The secondary, state licensed freight school each day. Upon gradua- company is structured around of Business. broker school. The vision of the tion, students receive the names three affiliate companies: Interide school’s creators is to meet an of a number of companies that Logistics, Interide Transport and exploding market demand for offer sponsorships to graduating Interide Capital. Interide Logistics trained logistics professionals. students. maintains the freight brokerage We’ll take care of The Interide Logistics “We’ve improved upon the services, while Interide Transport Freight Broker School will pre- education and training currently houses the equipment and assets pare students, through a one-week provided to our employees and in- and Interide Capital provides pre- the plants. course, to enter the transportation house freight brokers,” said Sean mium, full-service freight bill fac- industry, either to work for a ship- Snow, president of Interide. “That toring and equipment financing Interior plant maintenance. per or to become an independent training has made Interide one of solutions. Guaranteed. freight broker or third party logis- the most successful asset-based For more information about tics (3PL) owner. Courses will run 3PLs in the country. We stand the new freight broker school, Monday through Friday from 8 apart from most other schools in call 855-428-1164 or visit www. a.m. to 5 p.m. that we are a company that con- interidefreightbrokerschool.com. The school will be located tinues to be successful at what we in 5,000 square feet of the firm’s teach.” Draper location: 12252 S. 1325 E. 801-676-0935 12,000 square foot headquarters Interide was founded in facility at 2890 W. 2100 S. Cost to 1984 (then called Professional Salt Lake location: 2735 S. 2000 E. 801-485-2542 attend is $2,495. The school has Transportation Brokers Inc.) cactusandtropicals.com also partnered with a local hotel by Snow, former C.R. England

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To enhance its commitment Those systems include hole drills, and our unrivaled product offer- ing tools and process improve- Innovation to the mining industry, Wheeler draglines, rope shovels and under- ing,” said Rob Campbell, presi- ment specialists geared to support Machinery Co.. Salt Lake City, ground mining equipment to doz- dent of Wheeler Machinery Co. all facets of a mining operation. Awards has created a new division called ers, motor graders, haul trucks and At the helm of the division will The new positions that Nominations are now being Wheeler Mining Systems. radio systems. be the Wheeler Mining Systems accepted for the 10th annual Utah will comprise Wheeler Mining With Caterpillar’s acquisition “Our goal in forming Wheeler general manager. Additionally, the Innovation Awards, presented by Systems will be added over the of Bucyrus, Wheeler will soon Mining Systems is to be an invalu- division will have on-site manag- Stoel Rives LLP and the Utah be in a position to offer com- able asset to our mining custom- ers who will have a full support course of the next several months Technology Council. The pro- plete mining systems previous- ers. We look forward to better team of equipment and product with the plan to have the division gram recognizes Utah’s best ly unavailable from one source. serving the mines in our region support managers as well as tech- fully formed and functioning by innovations and the companies that created them. Nominations (Wheeler is a Caterpillar dealer.) through the setup of this division nology, work tools, ground engag- mid-2012. are due Feb. 17 and can be sub- mitted online at http://www.stoel. com/Innovation/Utah. Innovations from all indus- tries, and in all areas of technol- ogy and business, are eligible for US Magnesium consideration if they meet the eli- gibility requirements. When sub- mitting a nomination, nominators are invited to create a classifica- tion that best fits their nomination, or select from past years’ classifi- cations on the nomination form. A final determination of the classifi- cation areas/category names will be decided by program organizers based on the pool of nomina- tions. Past years' categories have included clean technology and energy, computer hardware/elec- trical devices, consumer prod- ucts, consumer software and Web services, enterprise software and Web-enabled B2B solutions, life science (biotech/pharma/medi- cal device), mechanical systems/ and their 500 Utah Employees chemicals/manufacturing, natural products and outdoor products. Nominations are evaluated by a selection committee com- prised of approximately 70 repre- sentatives from private industry, government and higher educa- tion, many of whom are experts or professionals in the areas rep- resented. Up to two finalists and Wish to Thank one winner may be selected from each category. Award winners will be announced at an Awards Luncheon on May 1. The Utah ATS from page 1

Congressional ATS Industrial Supply, said he is looking forward to benefitting from MSC’s position as a leading player in the marketplace. Delegation MSC has more than 1,000 sales specialists, 600,000 indus- trial products, 3,000 suppliers, and 99 percent in-stock avail- ability. For the fiscal 2012 first quarter, the firm’s net sales rose $15.4 percent to $545.7 million. Its shares are traded on the New York Stock Exchange. for listening. ATS stocks approximately 13,000 items at its 14,000 square foot Salt Lake City warehouse, and approximately 6,000 items at its 7,800 square foot facility in Phoenix. Its combined inventory value ranges from $4 million to $5 million. Feb. 6-12, 2012 The Enterprise 5 Solera Networks Bill would crack down on perceived deceptive practices State regulators are looking car mechanic shops who have companies for repairs — plumb- gets $20 million to crack down on some business charged customers for part of their ers, heating and air conditioning tactics they believe are deceiving repair work on their vehicles with- experts and locksmiths, for exam- capital infusion consumers. out first getting prior approval. ple — but encountered travel-time Portions of HB78 would Because it involved only part of charges when the repair people clarify how credit and debit cards the transaction, those businesses Solera Networks‚ a South time, intelligent incident response had to drive a long distance to Jordan-based provider of network is now an essential component of can be charged and would prohibit contended they did not violate the home. The consumers had security analytics, has secured their security strategy,” said Sean misrepresenting a supplier’s busi- statutes, she said. $20 million in Series D financing Cunningham, Intel Capital invest- ness location. “So we would just like to believed they were hiring a local led by Intel Capital. Intel Capital ment director. “Solera Networks In the case of the credit and clarify that if you’re going to company because the companies is joined by existing investors delivers a scalable, high-perfor- debit cards, the bill requires com- charge a consumer’s credit card or had used Google “drop boxes” Allegis Capital, Signal Peak mance solution that addresses panies to get prior approval from debit card, you need to have their to make it appear as if they were Ventures and Trident Capital. The these challenges and is the only a consumer before charging for a express authorization,” Gundersen local. “This is a way for people to new funds will help support the independent platform capable of transaction or part of a transac- said. appear local when they’re not,” company’s rapid growth by fur- broad integration. We are very tion. Another part of HB78 would she said. ther expanding global sales, mar- optimistic about where Solera is Traci Gundersen, direc- prohibit misrepresenting the geo- The division fields about 10 keting and product development headed.” tor of the Utah Division of graphical origin or location of complaints a month for that type initiatives. The financing round follows Consumer Protection, told the any supplier’s business. Current “With increasingly large a year of tremendous momen- House Workforce Services and law pertains only to suppliers of of activity. “It is increasing,” she amounts of data crossing cor- tum at Solera, with domestic and Community and Economic cut flowers, flower arrangements said, “and I think it’s because porate networks, organizations international growth exceeding Development Committee that or floral products. Gundersen more and more companies are must balance advanced threat pre- 100 percent in 2011. the problem has been focused on said some consumers have used starting to utilize the Google drop vention with an aggressive and “Malware entering the net- sole proprietor, mom-and-pop computer searches to find local box feature.” proactive response system to be work and key intellectual prop- fully prepared when an inevitable erty leaving are top-of-mind for breach occurs. We see companies every chief information security continuing to realize that real- officer and for Solera Networks. We’re providing complete vis- ibility into what’s happening on the network, including all threats coming in and all data going out, allowing organizations to shut down breaches before they result in widespread loss,” said Steve Shillingford, president and CEO of Solera Networks. Intel Capital has invested more than $10.4 billion in over 1,212 companies in 51 countries.

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Call Kent DeHart or Scott Snow at 801-478-2300, or visit a First Utah Bank office near you. www.firstutahbank.com/sba 6 The Enterprise Feb. 6-12, 2012 • Earnings Roundup • Nu Skin cents per share, for the 2012 fis- ting, technological innovation and medical devices. quarter. Nu Skin Enterprises Inc., cal second quarter ended Dec. 31. overall business efficiencies.” Headwaters The fourth-quarter figures based in Provo, reported record That compares with $24.2 million, Nutraceutical manufactures, Building products company compare with $65.2 million, or 35 fourth-quarter and annual results. or 26 cents per share, for the same markets, distributes and retails Headwaters Inc., based in South cents per share, for the 2011 third The company reported net income quarter a year earlier. nutritional supplements and other Jordan, reported a net loss, includ- quarter. Excluding the acquired- of $49.5 million, or 76 cents per Revenue totaled $122.8 mil- products. ing discontinued operations, of loans factors, third-quarter earn- share for the quarter, up from lion, up from $100.4 million a Utah Medical $23.7 million, or 39 cents per ings were $74.8 million, or 40 $37.3 million, or 58 cents per year earlier. Utah Medical Products Inc., share, for the fiscal 2012 first cents per share. share, for the same quarter a year Myriad is a molecular diag- based in Midvale, reported net quarter ended Dec. 31. That com- “We are again pleased with earlier. nostic company developing and income of $1.9 million, or 51 pares with a net loss of $20.7 mil- the significant improvement in Revenues totaled $495.3 mil- marketing tests to assess various cents per share, for the 2011 fourth lion, or 34 cents per share, for the credit quality this quarter, which lion, up 23 percent from $401.4 medical risks in individuals. quarter. That compares with $1.5 2011 first quarter. we expect to continue and to million. Nutraceutical International million, or 41 cents per share, The loss from continuing result in lower net charge-offs in For the full year, Nu Skin Nutraceutical International for the same quarter in 2010. Net operations was $13.3 million, or 2012,” Harris H. Simmons, chair- reported net income of $153.3 Inc., based in Park City, reported sales totaled $9.9 million, up from 22 cents per share. That com- man and CEO, said in a prepared million, or $2.38 per share, on net income of $3.4 million, or 34 $6.2 million a year earlier. pares with a loss from continuing statement. “We also are pleased revenues of $1.74 billion. That cents per share, for the fiscal 2012 For the full year, the com- operations of $18.8 million, or 31 with the somewhat stronger loan compares with net income of $136 first quarter ended Dec. 31. That pany reported net income of $7.4 cents per share, for the year-earlier growth this quarter and with signs million, or $2.11 per share, on rev- compares with $3.9 million, or 38 million, or $2.03 per share. That quarter. Adjusted earnings before of strengthening loan pipelines, enues of $1.54 billion in 2010. cents per share, for the year-earlier compares with $6 million, or interest, taxes, depreciation and particularly for business loans. “By all measures, 2011 was quarter. $1.65 per share, for 2010. Sales amortization was $20.4 million, Revenue growth was a challenge a record year,” Truman Hunt, Net sales totaled $46.6 mil- in 2011 totaled $37.9 million, up up from $13.7 million. for us, as it was for the whole president and CEO, said in a lion, up from $45.2 million a year from $25.1 million in 2010. Revenues in the most recent industry, in 2011. However, we prepared statement in which he quarter. “After acquiring Femcare quarter totaled $137 million, up see signs of stabilizing loan pric- anticipated record results again “Net income primarily Holdings Limited in March 2011, from $135.8 million a year ear- ing, which with continued loan this year. “We’re also optimistic declined as a result of increased UTMD delivered on its prom- lier. growth and improving credit qual- that our momentum will continue manufacturing overhead costs ise that the acquisition would be “We had a great first quar- ity should lead to improved results into 2012 as we roll out our latest associated with our new manufac- immediately accretive in earnings ter, and we are excited about the in 2012.” product innovations globally.” turing facilities, as well as other per share,” CEO Kevin Cornwell remainder of the current year Zions said net interest income The company also announced costs associated with recent acqui- said in a prepared statement. because we are realizing the ben- fell 1.8 percent to $462 million that its board of directors has sitions including freight, payroll “Despite the 23 percent EPS efits from the restructuring pro- during the quarter and but was up declared a 25 percent increase in and interest expense,” Bill Bay, increase, our progress in achiev- gram implemented in the latter from $406.9 million a year earlier. its quarterly cash dividend. The chairman and CEO, said in a pre- ing some important operating syn- half of 2011,” Kirk A. Benson, The net interest margin slipped dividend of 20 cents per share, up pared statement. “We will focus ergies from the combination of chairman and CEO, said in a pre- to 3.86 percent from 3.99 percent from 16 cents, will be paid March on improving manufacturing over- the entities has been slower than pared statement. “While the sec- in the third quarter. Noninterest 14 to shareholders on record Feb. head over the calendar year by expected. In 2012, we hope to ond fiscal quarter is always our income totaled $98.3 million, 24. methodically working on improv- accelerate more effective distribu- seasonally slowest quarter, we down from $113.2 million a year Nu Skin is a direct-sales ing utilization of our added capac- tion through the rationalization expect to see continued year-over- earlier. company with more than 850,000 ity. Cash flow remained strong and of market channels, integration year improvements in our core Average total deposits grew distributors of its anti-aging prod- we continued to invest in acquisi- of manufacturing previously out- business segments.” $804 million to $42.2 billion dur- ucts. tions, facilities and repurchases of sourced and revitalization of prod- Zions ing the fourth quarter and com- Myriad Genetics our common stock. … We have uct development.” Zions Bancorp., based in Salt pared with a third-quarter increase Myriad Genetics Inc., based now experienced four years of this Utah Medical develops, man- Lake City, reported net income in Salt Lake City, reported net lethargic economy and so we will ufactures, assembles and markets of $44.4 million, or 24 cents per of $512 million. Average cash- income of $28.3 million, or 33 continue to emphasize cost cut- disposable and reusable specialty share, for the fourth quarter of related balances grew $1.1 billion, 2011. That compares with a net compared with a $726 million increase in the third quarter. THETHE loss of $110.3 million, or 62 cents per share, for the same quarter a Average loans and leases, year earlier. excluding loans supported by the Excluding the effects of the FDIC, grew to $36.1 billion, com- discount amortization on convert- pared with $35.9 billion a year UTAH’S BUSINESS JOURNAL ible subordinated debt and other earlier. effects on acquired loans, net Zions has about 500 offices earnings were $53.5 million, or in 10 western and southwestern KEEP YOUR EYE OUT FOR THE 30 cents per share, in the fourth states. Golf Feb. 20 Mining Feb. 27 Real Estate Mar. 26 Trucking Apr. 2 Small Biz May 7 Green June 18 Law July 16 Banking Aug. 6 Travel Aug. 13 Education Aug. 20 Healthcare Aug 27 To advertise call David Gregersen at: 801-533-0556 ext. 203 Technology Sep. 10 Feb. 6-12, 2012 The Enterprise 7 • Industry Briefs • ASSOCIATIONS access ATM. The branch will offer Unified Communications (UC) • The Davis Chamber retail and business banking, and certificates and Managed Public has joined with other cham- home lending mortgage services. Key Infrastructure (MPKI) ser- bers in northern Utah to form vices. By doing so, DigiCert has the Northern Utah Chamber COMPUTERS/ developed a flexible product suite Coalition, designed to promote SOFTWARE tailored to different customer legislative priorities that impact • Mindshare Technologies, needs. For network administrators the entire region. The coalition is Murray, has appointed Lonnie who run multiple subdomains or comprised of the Brigham City Mayne, executive vice presi- multiple servers, most SSL cer- Area, Cache, Davis, and Ogden/ dent of sales and account man- tificate authorities on the market Weber Chambers of Commerce. agement, to the new position of require them to purchase multiple A new Zions Bank building in Provo will become the new home of NUCC combines efforts to sup- chief experience officer. Mayne certificates for their networks. MultiLing, a translation services firm. port public policy and government will be responsible for improving DigiCert’s Wildcard certificate Translation services firm to double funding issues in Northern Utah and enhancing the customer and benefits administrators in that just that positively affect the business client experience at all points of one certificate secures multiple size of Utah County footprint community and the quality of life contact. All departments that have web properties. in the region. Each chamber has customer interactions, includ- • Allegiance, a South Jordan- Provo-based MultiLing, a tion technology and processes,” its own respective legislative poli- ing marketing, sales and account based provider of VOCi (Voice of provider of global enterprise and he said. “It is our high quality — cies and processes, but they have management, will report to and Customer Intelligence) technology intellectual property translation coupled with our increasing spe- agreed that certain issues are of work with Mayne, who will create and services, has named Andrew services, is preparing to double cialization in intellectual property regional significance. and execute operational solutions McInnes, formerly customer the size of its footprint in Utah translation — that has allowed that are a better experience for experience analyst at Forrester County. us to grow staffing by nearly 125 The firm has finalized an BANKING Mindshare customers. Mindshare Research, director of product mar- percent from 2006 and 2012, and agreement to occupy two floors — • Bank of Utah will close is an operational improvement keting. McInnes spent the previous will allow us to continue growing the doors of its 3990 Washington firm serving more than 25 differ- five years in the customer experi- 21,000 square feet — of a newly constructed Zions Bank building at an even faster pace in 2012 and Blvd. location in Ogden at the end ent industries, including travel, ence research practice at Forrester at 180 N. University Ave., Provo, beyond.” of the day on April 13 and open hospitality, restaurant, financial, Research. As a Forrester analyst, to accommodate planned growth The ability to translate intel- the doors to a new full-service salon, automotive and retail. McInnes performed research and this year and beyond. The move lectual properties in 40-plus lan- branch at 4605 Harrison Blvd., • Based on its recent analy- consulting in the areas of Voice of should take place within the next guages with speed and accuracy is Ogden, the following Monday sis of the Secure Socket Layer the Customer (VOC), Voice of the 90 to 120 days. CEO Michael helping some of MultiLing’s larg- morning. Bank of Utah is making (SSL) certificate market, Frost & Employee (VOE) and customer Sneddon said the company is est global customers to increase the move because it was unable to Sullivan has recognized DigiCert journey mapping. He also pub- planning on hiring a significant their IP filings by as much as 200 negotiate a new lease at the cur- Inc., Lindon, with the 2011 North lished the first in-depth evaluation number of new employees both percent. rent site. The new, approximately American Frost & Sullivan of the VOC software market, “The this year and next. Founded in 1988, MultiLing 3,000 square foot space will house Award for Customer Value Forrester Wave” report in 2011, MultiLing’s growing spe- specializes in translating for the a full-service banking facility with Enhancement. DigiCert has estab- presented at industry events and cialization in intellectual prop- patent, IT, chemical, medical tech- a drive-up depository, night drop, lished new standards in the SSL erty translation — one of the continued on next page nology, biotechnology and auto- safe deposit boxes and an exterior- market to include its Wildcard, most complex and highly strate- gic needs for global organizations motive industries. Clients include • Legislative Roundup • — is accounting for much of the many Fortune 500 companies company’s current growth. such as Dell, Procter & Gamble, • HB39 would allow clerks at cians to work without a license about under HB201. The bill des- “As a company, we are IBM, Siemens, TYCO, Lufthansa, retail locations to continue to sell, on motion pictures shot in Utah. ignates skiing and snowboarding working to define and to drive the Carbongen, Amcis AG, LSI Corp. fit, adjust and dispense prescrip- Those workers would have to be as the state’s winter sports. standard of excellence for transla- and Promise Technology. tion lenses without having an opti- employed by or under contract to cian license. The clerk would still assist with a movie company pro- need to have a prescription from duction and conduct that work for a licensed physician or optom- no more than 120 days per year. etrist. The bill’s sponsor, Rep. Jim Sponsored by Rep. Jim Dunnigan, Dunnigan, R-Taylorsville, said R-Taylorsville, the bill was rec- 28 states have adopted an opti- ommended by the Business and cian license requirement for those Labor Interim Committee. clerks but Utah does not want to • Companies catering to par- become part of that group. ticipants in a pair of winter sports • SB36 would allow Utah would have something to brag corporations to transfer to anoth- er state. The sponsor, Sen. Gene Davis, D-Salt Lake, told the Senate Accuscan: 20% off full body scan Business and Labor Committee At The Gateway, we believe that when you work hard, you that the bill cleans up Utah stat- deserve some perks. That’s why The Gateway, FM100 and The utes, which currently do not allow California Pizza Kitchen: 20% Enterprise have created and exclusive “Office Worker At Work Perk Card” for all of you hardworking people. (Fill out your At a corporation domesticated in Utah off entire order to transfer elsewhere. Shirlene Work Perk Card application at The Gateway Concierge desk.) Bastar, an attorney in Utah and Flash your card and get savings and discounts at participat- California, told the committee that ing shops and restaurants at The Gateway. currently a company moving from Utah to California faces having Just keep your card in your wallet and look for special to dissolve and reincorporate in deals throughout The Gateway. FM100 will be e-mailing California or convert to a limited you ever Monday with the “Perks of the Week.” Log on to liability corporation. Both have www.fm100.com or check out The Enterprise for the most unnecessary tax consequences, up to date list of specials. she said. Turn in your completed form to The Gateway Concierge, • HB43 would allow bar- located across from Urban Outfitters or to any participating bers, cosmetologists, estheticians, retailer to be eligible for monthly drawings. electrologists and nail techni- 8 The Enterprise Feb. 6-12, 2012 from previous page he held analyst and senior level accolades that Industrial Supply Community Federal Credit Union capital they need to start and stay contributed to industry publica- positions in finance and inter- has earned. Recently, the firm won – Kukui Grove West Office has in business. Andrus established tions, such as 1to1 magazine, CRM national business development the AutoLiv Supplier of the Year, officially received a LEED Gold and led several national commer- magazine, and Computerworld. with Boeing, Ford Motor Co. and the Yellow Coat Elite Award and certification from the U.S. Green cial lending institutions, including • Adaptive Computing, Honeywell. the Industrial Distribution maga- Building Council. The two-story, franchise financing divisions. He a Provo firm that bills itself as zine Future Leader Award. 21,000 square foot office building has served as the executive direc- the manager of the world’s larg- CONSTRUCTION • The Associated General opened in November 2010 and is tor of the Business Development est supercomputing systems and • Big-D Construction, Salt Contractors of Utah honored the first LEED-certified bank or Corporation of Provo, a nonprofit experts in cloud management Lake City, has promoted Gifford dozens of contractors, suppliers credit union in all of Hawaii and entity that provides early stage and HPC workload management Briggs to vice president. Briggs will and individuals who excel in areas the second LEED-certified build- seed capital and functions as a solutions, has hired Alan Taylor oversee all management aspects of of teamwork, safety, innovation ing on the island of Kauai. There small-business growth accelera- chief financial officer. He brings the firm’s Lindon office. Briggs and quality at its annual awards are only four other LEED Gold tor. more than 20 years of manage- has been a managing partner in the breakfast held Jan. 28 at the Little certified facilities in the state of ment and operating experience Lindon office since Big-D opened America Hotel in Salt Lake City. Hawaii. GOVERNMENT to his role as CFO. Before join- it in 2005. The Big-D Lindon Western Rock Products received • Pentalon Construction • Robin Hutcheson is the ing Adaptive Computing, Taylor office is structured to manage over the Best Rural Highway Project Inc., Draper, has commenced con- new director of the Transportation served as the CFO and then CEO $80 million in annual construction Award for its work on the Utah struction of the first phase of the Planning Division at Salt Lake of DirectPointe, a managed IT revenue and currently employs Department of Transportation’s new Ashley Creek Apartments City. Hutcheson takes over the services provider. Prior to that more than 60 full-time office and Milepost 46 to Kanab, US-89 in Vernal. The developer is Utah- position from Tim Harpst follow- he was the CFO of Helius Inc. field staff. Recent projects con- reconstruction. Vaughn Pack, a based PEG Development and the ing his retirement. For the past 15 where Taylor was instrumen- structed by Big-D in Utah County Staker Parson employee for 37 architect is Carpenter Stringham years, Hutcheson has worked as tal in getting Helius acquired include UVU Pope Science, years, was honored as Highway Architects. The first phase an industry consultant on a broad by Hughes Network Systems. Utah Valley Regional Medical Project Manager of the Year. consists of four 24 plex apart- range of transportation planning Taylor also served as the direc- Center Expansion, University of Pack has managed UDOT proj- ment buildings, garages, the site projects, including alternative tor of finance and group control- Phoenix, Action Target, Noah’s, ects across the state from Davis improvements and infrastructure. modes development, mobility ler for the Product Development Thanksgiving Park Office Phase II County to St. George. The project is scheduled for com- management and transportation Organization at Novell, where he & III, Riverwoods Imaging Center, • Layton Construction pletion in spring of 2013. and traffic studies. Prior to join- worked extensively in the product and BYU Heritage Housing. The Co. Inc. built one of the most • Five years after states first ing Salt Lake City, Hutcheson was planning process. Prior to Novell, Lindon office recently began environmentally sensitive proj- started shedding construction a senior associate with Fehr & buildings 7 and 8 on the BYU ects ever built on the Hawaiian jobs, construction employment Peers’ Salt Lake City office. She Heritage Housing Phase II proj- island of Kauai. The Kauai remains below peak levels in is the co-founder of the Women’s ect. all 50 states and the District of Transportation Seminar Northern • Industrial Supply Co., Columbia, according to a new Utah Chapter, promoting women Salt Lake City, has been named analysis released by the Associated in the field of transportation. “Supplier of the Year” by the General Contractors of America. Hutcheson is an accredited plan- Associated General Contractors Given the continued weakness ner with the American Institute of of Utah (AGC). Announced at the in construction employment, the Certified Planners. AGC’s annual awards breakfast association is launching a new on Jan. 28, the award represents effort to encourage Congress to HEALTH CARE general contractors, specialty pass “years-late” legislation to • Utah would lose 686 jobs, contractors and service/suppliers fund highway, bridge and transit local economies would suffer and that have been committed to the construction work. In Utah, con- patients may be denied their choice principles of skill, integrity and struction employment reached of pharmacy if the proposed mega- responsibility in their business, its peak in April of 2007, when merger of two prescription drug and to the support of the construc- 105,300 people were employed in middlemen goes through, accord- tion industry. The award will be the field. That dropped to 64,600 ing to the National Community added to the collection of other in November 2011, a loss of Pharmacists Association. The 70,700 jobs and down 39 percent Federal Trade Commission is cur- from peak. According to the data, rently reviewing the proposed Utah’s construction industry was merger of pharmacy benefit man- the ninth hardest-hit in the nation. agers Express Scripts Inc. and North Dakota fared best while Medco Health Solutions. The Nevada fared worst. multi-billion-dollar companies are already among the country’s EDUCATION/TRAINING largest pharmacy benefit manag- • Westminster College’s ers, which administer prescription Institute for New Enterprise said drug plans and operate mail order that Inside & Out Cosmetics was pharmacies. In Utah, the com- the first place winner of the 2011- panies collectively manage phar- 2012 Opportunity Quest business macy benefits for 113,000 state plan competition for its USDA- employees and their dependents certified organic make-up line that as well as 32,801 of the Defense is also tied to a social cause. With Department’s TRICARE benefi- each sale, Inside & Out Cosmetics ciaries. Property Management Group will contribute a portion of the • South Davis Community profit to women’s causes. Caitlin Hospital, Bountiful, recently was Jolley, a Westminster MBA stu- honored with two awards for excel- Sales & Leasing dent, and her team received the lence in employment: first place honor during the fifth annual Large Employer and Employer Commercial awards banquet on Jan. 27, where of the Year. On Jan. 12 the hos- she also received an award check pital was honored with the Utah of $5,000. Work Life 2011 Award given by Residential • Utah Valley University’s the Utah Division of Workforce recently opened Business Services, placing first in the Large HOA Resource Center has named Employer category. The hospital Roger Andrus as its new director. also received the 2011 Employer DeAnna Gregersen For over two decades Andrus has of the Year award from the Davis been instrumental in helping thou- Chamber of Commerce on Jan. 801-879-1704 sands of entrepreneurs secure the 20.

Property Management HOA Residential Commercial Deanna Gregersen 801-563-8372 Feb. 6-12, 2012 The Enterprise 9 • The South Jordan Health ers, fast food cooks, data entry identify, protect, defend, enforce sists of a pain-free, super quiet ness growth and performance. Center, the University of Utah’s keyers and word processors and and otherwise build value around water drill, a breakthrough in Candle Warmers Etc. has grown largest off-campus medical facil- typists. IP assets, including patents, dental care aligned with attracting into today’s market leader and ity, officially opened its doors trademarks, copyrights and trade and retaining more patients. The innovator in the candle warmer with a ribbon cutting ceremony on LAW secrets. waterjet is designed to increase category, ranking among the top Jan. 18. The 208,000 square foot • Attorneys and staff of seven • Mark E. Rinehart has joined office production with a net reduc- consumer products companies in facility is located in the heart of Salt Lake City law firms joined the law firm of Callister Nebeker & tion in the use of anesthetics and the U.S. by Inc. 500/5000 for four the Daybreak community in South together for the second consecutive McCullough. Rinehart’s practice substantially improve patient out- years. Jordan. Layton Construction Co., year to collect nearly $40,000 in focuses on real estate development come and experience. • Mobile accessories maker Inc. was the contractor for the cash and more than 1,000 pounds and finance, corporate finance and • Candle Warmers Etc., ZAGG Inc., Salt Lake City, saw project, which was designed by of food for the Utah Food Bank. private placements, renewable Woods Cross, was presented online sales that were 94 per- Dixon and Associates. With participants Parr Brown Gee energy development and mergers the Small Business Award by cent higher on Cyber Monday • ADP has acquired private- & Loveless, Jones Waldo, Fabian and acquisitions. Purchases and the Davis County Chamber of in 2011 compared to 2010, while ly held PhyLogic Healthcare, Law, Stoel Rives, Durham Jones sales of businesses are a part Commerce during the cham- traffic grew 234 percent to set a Revenue Cycle Management & Pinegar, Ballard Spahr, and of his practice. Rinehart was ber’s annual awards banquet at a record high. To provide high- (RCM) company that has served Dorsey & Whitney, the law firm admitted to the Colorado State the Davis Conference Center in quality care to that rapidly grow- small- and mid-size U.S. medical food drive donated $38,274 and Bar in 1982 and the Utah State Layton. Judging criteria for the ing customer base, the company practices since 2001. The firm 1,050 pounds of food. The cash Bar in 1985. He received a B.S. Small Business Award included recently implemented a hosted IP is based in Roseland, N.J. The donation is significant because the degree in engineering magna demonstrating sound business phone system created by Phoenix- ADP medical office software divi- Utah Food Bank can turn every cum laude from Brigham Young strategies and practices, overcom- based Telesphere for its con- sion, ADP AdvancedMD, a South $1 donation into $7 worth of food University in 1976, an M.B.A. ing challenges, customer service tact center. ZAGG upgraded to Jordan-based provider of lead- and services due to the support from the University of Houston strategies, employee relations, Telesphere from an on-site PBX ing cloud practice management, of volunteers and in-kind donors. in 1979, and graduated from the community involvement and busi- continued on page 11 electronic health record, medical According to the Utah Food Bank, Law School of the University of scheduling and billing applica- from every $1 donation, 99 cents Chicago in 1982. tions, now offers outsourced med- goes directly to food and services ical billing services to practices while only 1 cent goes to adminis- MANUFACTURING seeking to improve revenue and tration and overhead. • A new collaboration between offload costly and complex medi- • Blake R. Bauman, David two innovative Utah-based com- cal claims processing. B. Dibble, Michael K. Erickson panies is designed to improve vis- and S. Brandon Owen have been its to the dentist’s office, for both HUMAN RESOURCES elected shareholders of the Salt patients and practitioners. On Jan. • The U.S. Bureau of Lake City law firm of Ray Quinney 6, Aribex signed an agreement Labor Statistics has released its & Nebeker. Bauman is a member with H20 TECH Inc. to pro- employment projections for 2010- of the firm’s Real Estate Section vide an equity investment in the 2020. According to the bureau, the and focuses his practice on devel- start-up. Aribex bills itself as the top 10 occupations with the largest opment, land use and entitlements, worldwide leader in portable and projected job growth for the period acquisitions and dispositions of handheld X-ray products for use are, in descending order, registered property, leasing and financ- in a dental office as well as vari- nurses, retail salespersons, home ing of office, retail, multi-family ous other remote and mobile care At RWC, we make it our mission to provide health aides, personal care aides, and other properties. Dibble is applications. The Orem-based our clients with expert analysis of office clerks, food preparation a member of the Firm’s Labor & company has experienced more construction related assemblies and to generate and implement innovative solutions and serving workers including Employment Section. His practice than three years of greater than 30 to sustain building envelope integrity. fast food, customer service includes complex commercial liti- percent growth and 11 consecutive representatives, heavy and tractor- gation, general litigation, federal profitable quarters. H20 TECH is (877) 594-4433 trailer truck drivers, laborers and and state employment litigation, an emerging company based in WWW.RWC-INC.NET freight, stock and material movers, administrative agency practice and Spanish Fork. Its technology con- and postsecondary teachers. advising on business and employ- The top 10 occupations with the ment issues. Erickson practices largest projected job declines in the firm’s Intellectual Property during the period, in descending Section. His practice emphasizes order, are farmers/ranchers/ intellectual property litigation, agricultural managers, postal including copyright, trademark, service mail sorters/processors/ patent, and trade secret matters. processing machine operators, In particular, he focuses on intel- sewing machine operators, postal lectual property disputes in com- service mail carriers, switchboard puter, software and Internet indus- operators, including answering tries. Owen is a member of the services, postal service clerks, Intellectual Property Section. His miscellaneous agricultural work- practice includes all facets of IP law including litigation and the EVEN THE BIGGEST BUMPS preparation and prosecution of patent, trademark, and copyright applications in the United States ARE JUST PART OF THE ROAD. and foreign countries. Over the years, we’ve helped countless businesses get the cash • Eric Nielsen, an associate flow they need to keep moving, and we can do the same for you. from the Phoenix office of Snell Learn how at tabbank.com or by calling 801.624.4415. & Wilmer, has relocated to the firm’s Salt Lake City office. With this move, the firm’s Intellectual Property and Technology (IP) practice group continues to expand its footprint in the western United States. Nielsen will continue to have a presence in Phoenix. Nielsen’s practice is centered on IP counseling—in particular, the design and implementation of business driven strategies to 10 The Enterprise Feb. 6-12, 2012 Why are you fighting with The danger of the 'Big Idea' procurement and purchasing? I know everyone is looking for the that.” DISCLAIMER: The following 2. Create a “range of price” accep- “Big Idea.” But big ideas can be dangerous, “It’s too edgy. We’re likely to turn our article is a reality and a strategy, NOT tance. If the price is within 10 percent especially in the world of marketing and audience off.” defamation or a tactic. of the lowest bid, the purchasing agent advertising. “It would be funnier if we …” THE CONCEPT: Why purchasing can (and should) choose what he or she If that sounds like the opposite of what You know you’ve got a “big idea”, and procurement departments should be believes is the BEST product or service. you’d expect, here’s the problem: market- though, when they start out with the words, avoided, and how to do it. 3. Let your people test the product. ing and advertising are the glamour sides of “Y’know what we oughta do is …” THE REALITY: Purchasing and pro- 4. Let your people tell you what every business. It’s the fun stuff, and it’s the Here’s the truth when it comes to the curement are a way of life. they want. most important stuff. people who create advertising and market- YOUR REALITY: Your total lack 5. Let your people tell you who they The great industrialist Peter Drucker ing programs for a living, at least the good of C-level relationships makes your life a want to do business with. said — and I’m paraphrasing here — “there ones. Every single word that has gone into sell-from-the-bottom-up proposition. NOTE WELL: Independent third are only two legitimate functions of busi- your ad — every graphic, visual, auditory HERE’S YOUR SELF-TEST: party purchasing groups should be totally ness ... marketing and innovation. The rest element — has been thought through and • Are you relegated to “purchasing” avoided. The hotel industry is besieged is expense.” calculated to bring the greatest possible as part of corporate policy? by RFPs from bullying third If you believe Drucker — and response. • Are you prevented from talk- party event planning companies who doesn’t? — then if you’re an They’ve almost always ing to the person who actually uses that shield the customer and accountant, an attorney, an executive considered just about every one the product you’re trying to sell? only care about price. Hotels assistant, a middle manager, a pro- of the ideas you and your non- • Are you making decisions as hate them, and are forced to duction line person, the janitor, and marketing wannabes are spout- to how much profit you’re willing eliminate most of their profit all too often the president or CEO, ing off like the creative geniuses to sacrifice to secure the business? to book the event. And the ulti- you’re part of the expense structure. they’re not. Those ideas were • Are you bullied into “match- mate customer loses respect and Jeffrey And what fun is that? tossed for a reason. ing price” to get the order? Gitomer face, and is in total jeopardy of • Are you being TOLD what having a third rate event with a It’s the marketers that make the People who tell you they Jim Ackerman your price will be in order to “do poor outcome. All in the name world go ‘round. Sales, marketing and wouldn’t respond to “something business?” of “saving money.” advertising. That’s where the action like that” almost always have Welcome to the club of losers. Not And “reverse auctions” are worse. is. And everybody wants in on the action, and almost always will. The only market people and profit. They milk every cent of profit. right? research that really means anything is the The purchasing department or the My two-word strategy for both of Now, in order to get the marketing “wallet test.” Which marketing will actually procurement department has one major these is: “DON’T PARTICIPATE!” If no stuff done and done well, the boss hires ad get somebody to pull out their wallet and job: to save their company money. Oh one played, they’d go away in a week. agencies, or in-house marketing people or buy? And the only way to discover that is wait, let me complete that sentence as The strategy to eliminate, or at least freelancers from top designers to foreigners to take it to market and sell it. it relates to you: to save their company mitigate, the process of starting with pur- on elance at two bucks an hour. The reason your creative people even money, at your expense. chasing, is to have a relationship with the A good start. These people are hired allow these kind of pass-it-around shenani- In general, when you deal with the person or people that direct them. You can because of their expertise in this tricky gans is that they’re not arrogant enough to procurement department and their people be recommended and you can be the “stan- field of marketing. They’re hired because believe that they’ve got the only answers – keep in mind: dard” used for selection. they’ve made a study of it. It’s their life’s of even the best ones. But odds are, frankly • They don’t care about quality. You can have a history of success at work. They have education and they have through the roof, that they actually do. • They don’t understand outcome. other companies based on quality, pro- experience. And that is specifically why These exercises are maddenly frus- • They don’t understand the need for ductivity, results and profitability — and they’re hired. trating to the creatives. Maybe that’s why service after the sale. present proof of this as a price alternative. They’re expected to come up with they’re seen as hyper-sensitive eccentrics • They don’t understand productivity. You can have a social media presence brilliance and they feel the pressure to do most of the time. It certainly is profession- • They don’t care about morale. that allows your customers to provide so. And sometimes they actually deliver. ally discouraging to them. Bad for their • They don’t care about outcome. feedback. But then what happens? attitude. Bad for their work. Bad for what • They don’t care about vendor rela- You can write value-based articles Incredulously, the very people who you get out of them. tionships. that C-level people might read. This can hired them in the first place, specifically Still, occasionally, somebody comes • They don’t care about vendor profit- get you in direct contact with decision because the hiree is supposedly smarter up with an idea that really is an improve- ability. makers. hirer • They don’t care about you. NOTE WELL: These 750 words are about these things than the , feel com- ment, so we all keep doing the dance. That • They NEVER look for the best, just not going to resolve the issue, and are cer- pelled to seek all kinds of opinions about is the nature of ideas. the lowest price. tainly not going to eliminate the purchas- the work of the expert. Just remember that these true improve- Procurement departments operate ing department. In most cases, purchasing So they “show the work around” to ments are very rare indeed. And in fact, most under the general principle of, and are and procurement are a vital part of any virtually everybody in the building. The of the “improvements” that get deployed measured and rewarded by: “we saved a large company. The challenge I’m issu- accountants and lawyers, the clericals and actually make the effort less effective, not nickel!” But the outcome of the “saved ing is that it is NOT just a price decision. managers, even the line workers and the more. nickel” may be that everyone in the com- “Bidding” is a losing proposition. “Best” janitors in many cases. There can be an exception to the pany is unhappy, the product is crappy and and “value” are the winners. Don’t you find it unnerving that the rule. When you go to get your “second breaks down, the service response is slow. If you’re a purchasing agent and you boss wouldn’t trust these people to do this opinions,” why not pay another profes- NOTE TO PURCHASING: It’s also likely personally need heart surgery or a hip work, but he turns to them to critique it? sional to critique the work? Keep an agency, the productivity and low quality, and loss replacement, do you want best, or lowest When you go to the doctor and he a copywriter, a marketing consultant on of morale cost your company 500 times price? Best, or three bids? gives you a treatment plan, do you say, retainer, whose sole job is to look at the lead more than the nickel you saved. Think about it. “Gee Doc, sounds p-e-r-r-e-t-t-y good. Tell agency’s work. A second pair of genuinely There’s a “Rock, Paper, Scissors” you what. Let me run it by my secretary and expert eyes could be just the ticket to make game of business: CEOs cover purchasing some of my line people and see what they real improvements that could send response and procurement. If the CEO calls down Jeffrey Gitomer is the author of The Sales have to say.” rates through the roof. Bible, Customer Satisfaction is Worthless to purchasing and says, “We’re going Yet this is precisely what happens in “Too expensive, Jim.” Customer Loyalty is Priceless, The Little with ACME Widgets!” The procurement the world of advertising. Really? If you’ve been reading this Red Book of Selling, The Little Red Book person says, “ACME, boss? OK, boss!” And what do you get when you do column for any length of time, you know And that’s it. No proposal, no bid, no price of Sales Answers, The Little Black Book of this? A plethora of “big ideas” and an array that a two-word change in a headline could cutting, no “match this price.” No nothing. Connections, The Little Gold Book of YES! of small ones as well. account for as much as a 1,000 percent Just a purchase order. Attitude, The Little Green Book of Getting The little ones look like this: increase in results. Given that understand- NOTE WELL: This is only possible Your Way, The Little Platinum Book of “I think you should change the word ing, doesn’t a little extra investment in the if you have a relationship with the CEO. Cha-Ching, The Little Teal Book of Trust, Ouch. The Little Book of Leadership, and Social STAT in the headline. I don’t think our mar- message make a lot of sense? It could make ATTENTION PURCHASING: Here BOOM! His website, www.gitomer.com, will ket will relate to that.” a lot of dollars. are a few recommendations that eliminate lead you to more information about training “The picture doesn’t do anything for Whether you take that step or not, “lowest price” from the final decision: and seminars, or e-mail him personally at me. How about we use an older couple here’s one thing I recommend in all cases: 1. Demand testimonials. Don’t just [email protected]. looking like they’re enjoying life?” You hire these people for their expertise. bid. Prove what you promise. © 2012 All Rights Reserved “I would never respond to an offer like see ACKERMAN next page Feb. 6-12, 2012 The Enterprise 11

from page 9 24th; Entrepreneur magazine’s Not your parents' Federal Reserve America’s Top Global, rank: system because it was limited by 128th; Inc. magazine’s 500 Fastest Whether one likes it or not, this Federal diture index (PCE deflator). This inflation measure the number of seats it could host. Growing Companies; National Reserve, under the direction of chairman Ben differs slightly from the more familiar Consumer • Provo-based Nu Skin, a Minority Franchising Initiative’s Bernanke, has not exactly been shy in turning tradi- Price Index. This goal of roughly 2 percent inflation direct seller of anti-aging prod- Top 50 Franchises for Minorities; tional Fed actions on their collective head. Another has been widely accepted by financial markets, but ucts, engaged the services of New and Personal Real Estate Investor major development occurred on Jan. 25. never actually articulated by the Fed until now. York City-based Translations. The Federal Reserve — now in its 99th year More QE? magazine’s Opinion Makers and com to translate and localize of existence as this nation’s central bank — has In addition to pushing its key interest rate Market Leaders. website copy in 20 languages, traditionally tried to keep financial market players to historic lows in recent years, and promising to • In the Salt Lake City including Chinese, Finnish, and investors in the dark as to future policy moves. keep it there for a long time to come, the Fed has metro area, average home prices Russian, Spanish and Czech and As a result, major financial institutions for years been throwing mud at the wall through a process fell 5 percent in the past year. By to provide translated content to employed highly compensated “Fed watchers” to called “quantitative easing.” The Fed announced the summer of 2012, home prices its 825,000 independent distribu- decipher every word, every nuance, of Fed state- and enacted two major moves of buying roughly are expected to rise 1.7 percent. tors. Translations.com bills itself ments to gain an advantage regarding the Fed’s next $2 trillion of mortgage-backed securities and U.S. Those are among the findings the world’s largest privately held monetary policy moves. Treasury securities in an attempt to push long-term of the latest quarterly data from provider of language services and Needless to say, those positions no longer have interest rates lower. The FOMC suggested in a very the Fiserv Case-Shiller Indexes, translation related technologies to value. complex statement that more bond buying is which track home price trends in streamline the process for local- Note that the Fed had reduced its key “an option that’s certainly on the table.” more than 380 U.S. metro areas. izing new and dynamic content short-term interest rate (the federal funds By the Fed’s measure, the process has been According to Fiserv Case-Shiller rate) — and the most important of all short- successful. Thirty-year fixed-rate conven- for 52 global markets. Prior to projections, home prices in Salt term interest rates — to an all-time low tional mortgage loans averaged 3.88 percent working with Translations.com, Lake City will see a growth of 9.5 target range of 0-0.25 percent in December the week of Jan. 16-20, the lowest level on Nu Skin relied on an inefficient, percent between Q3 2012 and Q3 2008, more than three years ago. The Fed record. decentralized Web model in which 2013. had suggested in 2009 and 2010 that it One might think that such incredibly low regional sites were managed sepa- was in no particular hurry to push that rate fixed-rate conventional mortgages would rately. Using Translations.com’s RESTAURANTS higher. draw record levels of home buying and GlobalLink localization manage- Jeff Thredgold • Teriyaki Madness, a Last August, the Fed then took the refinance activity. Such is not the case. ment software, core content is restaurant chain with seven unprecedented step of indicating that the Home sales remain soft (although improv- quickly translated and localized in locations open in Las Vegas, is rate would stay where it was “until at least mid- ing), while refi activity is not exactly gangbusters. order to better target international looking to bring its Asian dishes and 2013,” unlike any statement the Fed had ever made The headwinds of roughly one out of every four customers and increase Nu Skin’s signature sauces to several states, before. The Fed’s intent was to allow businesses and homes being underwater (the mortgage is larger than global sales. consumers to have some clarity or relative certainty the current value of the home); still high unemploy- including Utah. The company plans call for growing to a total of that new loans or new borrowings could be under- ment; and the latest bombardment of government REAL ESTATE taken with limited upside interest rate risks. legislation on lending institutions — the more than 10 restaurant locations by the end • Layton-based Real That was then … this is now. 2,300 page Dodd-Frank financial legislation — has of 2012, 25 by the end of 2015, 50 Property Management, which The Fed’s Open Market Committee (known made the lending process more cumbersome, more by the end of 2017, with a total provides full-service residential affectionately as the FOMC) took that one better on paper intensive and more difficult. As noted before, of 200 locations throughout the property management for inves- Jan. 25 with a statement that the federal funds rate just one more example of “we’re from the federal next 10 years. Utah franchisees tors and homeowners across would stay at its current historic low level “through government — and we’re here to help you.” are currently being sought. The North America, has won sever- at least late 2014.” Another 18 months of incredibly Savers Anguish average ticket price for lunch at al major national awards and low interest rate stability seems in store for the U.S. While the Fed’s announcement can be con- Teriyaki madness ranges from $10 earned high marks on a number economy. strued as good news for businesses and consumers to $12, while dinner is around $13. of key industry lists. Accolades Note that this is a most likely scenario. Between that are net borrowers, it is simply more pain and The chain was founded in 2003. A include Entrepreneur magazine’s you and me, the Fed would love to see stronger-than- anguish for net savers. Millions of retirees had done new prototype shifts the dining expected U.S. economic performance this year and all the right things over the years — investing in Franchise 500, rank: 159th; focus from take-out to dine-in. The next year and the following year, perhaps mandating stocks and then shifting to bonds and certificates of Entrepreneur magazine’s Fastest- average total investment to open a move to push its key rate higher sooner rather than deposit in later years. Growing, rank: 57th; Entrepreneur a Teriyaki Madness franchise is later. Millions of retirees assumed a reasonable magazine’s Low-Cost, rank: between $198,098 and $390,213, A GDP Forecast level of interest income from FDIC-insured finan- In reality, the Fed’s willingness to keep its key cial institutions that would essentially be risk free ACKERMAN which includes the initial franchise rate so low for so long is a recognition that modest (allowing them to sleep at night), while providing a fee. The new Teriyaki Madness from previous page U.S. economic growth of 2010 and 2011 is likely consistent flow of income. prototypes will be 1,800 to 2,000 to continue. The Fed’s Jan. 25 forecast of 2.2-2.7 Not so fast. square feet, seating approximately percent real (after inflation) U.S. economic growth The Fed’s continuing efforts to “help” the When it comes to changing their 50 to 75 guests and will employ, this year is down from a forecast of 2.5-2.9 percent U.S. economy by keeping short-term interest rates work in favor of any less-expert on average, 12 people. growth last November. extraordinarily low is significantly offset by a opinion, it’s dangerous not to The Fed expects real U.S. economic growth in shrinkage of spending by retirees on housing, trips give your creatives the benefit of RETAIL 2013 of 2.8-3.2 percent, also down from a prior fore- to restaurants, entertainment, travel, etc. as incomes the doubt. • Bell Janitorial Supply, cast. Its forecast of as much as 4 percent real growth for millions are sparse. Now more of the same for If you can’t do that, then at an Ogden distributor of janitorial in 2014 seems quite iffy, and in my mind only occurs another 18 months! least test their version against the supplies, cleaning products and with a much more business-friendly administration Unfortunately, too many retirees are reaching amateur-revised versions, head- floor-cleaning machines, recently and Congress than the one we have now. for higher returns by putting money into higher risk to-head in the marketplace. relocated to a newer, upgraded An Unemployment Rate Forecast “deals” that will ultimately cost them dearly. Note: If you still don’t trust their facility at 1970 Wall Ave. Bell has The Fed also provided its collective forecast At lunch a couple of days ago, a roughly 65 year- instincts and training, fire them six full-time Ogden employees that the current 8.5 percent unemployment rate old man was telling a younger woman, a daughter and get people who you can (23 total, when a Salt Lake City would be no lower than 8.2 percent at year-end. It I think, about this “great investment opportunity” trust. location is included) and stocks also suggested a jobless rate of 8.1 percent down to that he had been shown by a near stranger. He was more than 1,300 items, in addition 7.4 percent in 2013 and a rate of 7.6 percent down to explaining how high quality it was even as the Jim Ackerman is a Salt Lake to floor machine parts, in its new City-based marketing speaker, 6.7 percent in 2014. Again, my view would require returns were very high. 8,000 square foot facility. The a massive sea change in government to reach those A fool and his money are soon parted. marketing coach, author and ad company started in 1964 when the more attractive levels. Always remember: if it sounds too good to be writer. For his speaking services, late George Bell joined his father The nature of the FOMC’s forecast was differ- true, it is! go to www.marketingspeakerji- mackerman.com Subscribe to his in the feed and seed business, ent this time around. This is the first time the Fed VLOGS at www.YouTube.com/ selling seeds, chicks and lambs has published such detailed predictions by its senior Jeff Thredgold is the only economist in the MarketingSpeakerJimA, where to the farmers in the Ogden area. officials about future policy decisions (The New world to have ever earned the CSP (Certified you get a video marketing tip of George then started a business in York Times). Speaking Professional) international designation, the the day, and at www.YouTube. An Inflation Forecast highest earned designation in professional speaking. com/GoodBadnUglyAds, where which he cleaned furnaces with The Fed’s FOMC also for the first time publicly He is the author of econAmerica, released by major Ackerman does a weekly ad cri- a giant truck-mounted vacuum. acknowledged a target of 2 percent for inflation, as publisher Wiley & Sons, and serves as economic tique and let’s you do the same. From furnaces, he moved into car- measured by the Fed’s personal consumption expen- consultant to Zions Bank. ©2012, Jim Ackerman, pet cleaning, and then sold carpet All Rights Reserved continued on next page 12 The Enterprise Feb. 6-12, 2012 from previous page port and sales positions are avail- Scientific Investigator Award, and radio communication training able now. the Department of Ophthalmology facilities for student pilots of all cleaning products and other clean- TRANSPORTATION • More building permits have and Visual Sciences has been • Southtowne Auto Mall levels, through contracts with the ing chemicals. been issued for tenant improve- granted $100,000, to be directed dealers presented a check for various flight schools throughout • Nordstrom Inc. plans to ments for retailers that will open by department chairman Randall $29,000 to Angel’s Hands the Wasatch Front, will host a hire 200 local employees for its next month at the City Creek J Olson, M.D., CEO of the Foundation from proceeds of the grand opening open house Feb. new store at City Creek Center Center in downtown Salt Lake JMEC. To date, RPB has awarded sale of automobiles. For every 11 from 10 a.m. to 4 p.m. at 337. N in Salt Lake City. Nordstrom City. They include Footlocker, grants totaling $4,765,300 to the vehicle sold during the month 2370 W., Suite 222, in the Kibbie City Creek Center will open on Sunglass Hut, The New ZAGG, University of Utah. of December, the consortium Executive Terminal Building Thursday, March 22 at 10 a.m. Aldo Shoes, Steve Madden, Vans of 12 dealerships committed a at the Salt Lake International Positions are available in all areas and American Eagle Outfitters. SERVICES contribution to Angel’s Hands Airport. Air Sim’s training lab of the store, including sales in • Holladay-based manage- Foundation to help the everyday allows student pilots, with their women’s, men’s and children’s SCIENCE ment consulting firm CXO struggles of children facing rare instructors sitting right next to apparel, shoes, accessories, cos- • Research to Prevent Vantage has made avail- diseases. The dealerships in the them just like in a real airplane, the metics, as well as various sup- Blindness has awarded two grants able Executive Cheat Sheets that Southtowne Auto Mall located ability to practice all of their flying port positions in housekeeping, to the John A. Moran Eye Center at 10600 South in Sandy include skills, including ground taxiing, alterations, restaurant and espres- cover tips from a variety of at the University of Utah to support Riverton Chevrolet, Larry H. takeoffs and landings and cross so bar. For more information on business functions including research into the causes, treatment Miller Chrysler/Jeep, Larry H. country VFR (visual flight rules) Nordstrom City Creek Center finance, marketing and operations. and prevention of blinding diseas- Miller Dodge, Stockton 12 Honda, and IFR (instrument flight rules) employment opportunities or to CXO Vantage Executive Cheat es. Gregory Hageman, Ph.D., has Riverton Hyundai, Riverton flying, all while communicating apply online, visit careers.nord- Sheets are designed to help been granted a $150,000 Senior Mitsubishi, National Auto Plaza, with professionally trained air strom.com. Applications for sup- anyone in business have access to Tim Dahle Nissan, Mark Miller traffic controllers who will be valuable at-a-glance information Subaru, Riverton Suzuki, Larry H. monitoring all flights, including on topics that are vital to running Miller Used Car Supermarket and those of non-student commercial a successful company. The Thrifty Car Sales. and GA flights in the area, on radar cheat sheets are free. For more • Air Sim Corp., a Salt screens connected to the flight information, call (801) 930-0842. Lake City firm that provides school’s simulators.

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197185 Competitors shown are subject to change. © 2011 Feld Motor Sports, Inc.

LCF Ent Ad.indd 1 9/23/05 3:16:12 PM Feb. 6-12, 2012 The Enterprise 13 • Calendar • • Feb. 6, 12:15-1:45 p.m.: ness in Korea. Panel members foods in 16 western states. He also p.m.: MountainWest Capital principals of more than 30 Utah- Utah Manufacturers Association will include Jeong Gwan Lee, spent seven years as a senior man- Networks 2012 Entrepreneur focused private equity groups Annual Membership Luncheon. consul general, consulate general ager at Apple Computer, doing of the Year Awards Luncheon. and mezzanine lenders represent- Featured speaker will be Dr. of the Republic of Korea in San pricing and strategic investments, Josh James, Domo Technologies ing billions of dollars of growth chairman and CEO and found- Craig Manning of Griffin Hill, Francisco; Robert Mansfield, a and earned a CPA while working and buyout capital, including er of Omniture, will be honored who will speak about “How partner with the law firm of Snell at the big eight accounting firm Serent Capital, Sorenson Capital, Manufacturers Can Lead Utah out & Wilmer LLP and honorary con- Peat, Marwick & Mitchell (now this year. Domo helps transform the way executives manage their Valor Equity Partners and Weston of the Recession into Prosperity. sul of the Republic of Korea, state KPMG). Location is the Little business and get value from the Presidio. There will be a num- Combining scientifically proven of Utah; Marshall Horowitz, a America Hotel, 500 S. Main St., tens of billions of dollars that are ber of workshops. Location is curriculum with mental strength partner at Snell & Wilmer; and Salt Lake City. Free to UCG mem- spent on business intelligence sys- the Grand America Hotel, 555 consulting, Manning works with Greg Rigby, owner of Pac Rim bers, nonmembers pay $30 to $45. tems. Domo’s founding team con- S. Main St., Salt Lake City. Cost business leaders, families, athletes Business Solutions. Location is Register at www.acgutah.org or sists of some of the most sought ranges from $200 to $250 based and sports teams to help them the offices of Snell & Wilmer, by calling Linda Blake at (801) after talent in the industry with on early-bird registration and develop the winning habits that 15 W. South Temple, Suite 1200, 359-8613. experience that includes Amazon, the registrant’s affiliation with produce break away high per- Salt Lake City. Free. Parking at • Feb. 15, 8 a.m.-4:30 p.m. American Express, Ancestry.com, formance. Location is the Little City Creek or the Joseph Smith with reception to follow: Utah eBay, Endeca, Facebook, Google, certain other industry groups. America Hotel, 500 S. Main St., Memorial Building will be vali- Governor’s First Annual Linkedin, MLB.com, Omniture, Register at http://www.acg.org/ Salt Lake City. Cost is $40 per dated. RSVP by Feb. 7 to Matt Energy Development Summit. and Salesforce.com, among oth- utah/2012conferenceagenda.aspx. person or $260 for a table of eight. Fankhauser at mfankhauser@ The event will provide an open ers. Location is the Little America • March 21, 11:30 a.m.- Register with Teresa at (801) 363- swlaw.com or (801) 257-1840. forum for industry, academia and Hotel, 500 S. Main St., Salt Lake 1 p.m.: Society of Marketing 3885. • Feb. 9, 8 a.m.: Sandy government officials to discuss City. Free to MWCN members, Professional Services Utah nonmembers pay $55. Register • Feb. 9, 11:30 a.m.: The Area Chamber of Commerce Gov. Herbert’s 10-Year Strategic Chapter Networking Event. at http://www.mwcn.org/store/dis- Building Owners and Managers Base Camp for Business. Energy Plan. Location is the Salt Those in the architectural, engi- play/2093/37/entrepreneur-of-the- Association (BOMA Utah) Keynote speaker will be Utah Palace, 100 S. West Temple, Salt year-award-2012-josh-james. neering and construction industries Outstanding Building of the entrepreneur Alan E. Hall, who Lake City. Cost is $85 for full-day • March 9, 7:15 a.m.- are encouraged to attend. Speakers Year Awards Banquet. The will speak about “The Seven Cs attendance, $50 for lunch only. 4:30 p.m.: 2012 Association will include Todd Provost from the Outstanding Building of the Year of Hiring and Keeping Great For more information and to reg- for Corporate Growth Utah Utah Transit Authority and Terry (TOBY) Awards are the most Employees.” Other speakers will ister, visit http://www.energy.utah. Intermountain Growth Conf- Johnson from the Utah Department prestigious and comprehensive include Mary Michelle Scott of gov/. erence and ACG Capital of Transportation. Location is the programs of their kind in the com- Fishbowl, speaking about “How • Feb. 17, 9 a.m.-4 p.m.: Connection. Breakfast keynote Little America Hotel, 500 S. Main mercial real estate industry rec- to Build Confidence in Potential speaker will be George Feiger of Meet the Generals Event, pre- St., Salt Lake City. For cost infor- ognizing quality in buildings and Customers”; and Cheryl Snapp Contango Capital Advisors. Lunch sented by Mountainlands Area Plan mation and to register, visit www. rewarding excellence in building Conner of Snapp Conner PR, Room and the American Society keynote speaker will be Urban smpsutah.org. management. During the com- speaking about “How to Build of Professional Estimators. The Meyer, former Florida Gators and Utah Utes Coach and two-time • April 8, 6 p.m.: Salt Lake petitions, all facets of a build- Great Branding and Marketing.” networking and vendor display BCS National Championship win- Chamber 125th Anniversary ing’s operations are thoroughly Location is the Miller Campus of event for those in the construction ner (subject to Ohio State sched- Gala. Location is the Grand evaluated. Buildings are judged Salt Lake Community College, industry is free and will be held ule). The event will provide an on everything from community 9750 S. 300 W., Sandy. Cost is America Hotel, 555 S. Main St., at the Embassy Suites, 110 W. opportunity for business owners, involvement and site management $50, lunch included. Register at Salt Lake City. Cost is $100 per 600 S., Salt Lake City. For more executives, development officers, to environmental and “green” www.sandychamber.com or by person. A reception will begin at 6 information, contact Mike Luke at intermediaries and service pro- p.m. followed by dinner and a pro- policies and procedures. Keynote calling (801) 566-0344. (801) 288-1188. Sponsorships are viders in Utah to network, learn speaker will be Joe Markling, • Feb. 14, 7:15-9 a.m.: available. about how to maximize growth gram at 7 p.m. For more informa- BOMA International’s chair-elect. Association for Corporate • Feb. 21, 11 a.m.-1:30 opportunities and to meet with the tion, visit www.slchamber.com. Location is the Grand America Growth February Breakfast Hotel, 555 S. Main St., Salt City. Program. Guest speaker will be THE Free for BOMA members, non- Scott Tanner, president and CFO members pay $150. Register at of Winder Farms. Before joining www.bomautah.org. Winder Farms, Tanner served as • Feb. 9, 8 a.m.-5 p.m.: “How the CEO of Juice-It, a wholesale UTAH’S BUSINESS JOURNAL to Raise Money,” sponsored by the distributor of healthier alternative Wayne Brown Institute. This year’s fountain drinks, where he helped event will coincide with the 28th the newly recapitalized compa- Annual Investors Choice Venture ny double sales and bring the Capital Conference. In attendance business back to profitability. He Why share? will be venture capitalists, angel was the founder and president investors, private equity groups, of 1-800-GOPHERS, which was venture professionals, serial entre- formed to provide housekeeping, Get your own copy! preneurs, service providers and home delivery dry cleaning and other strategic partners. Location concierge and errand services for is the Zermatt Resort and Spa in individuals and businesses. Tanner Midway. Seating is limited. Cost spent five years as COO and CFO is $50 for “How to Raise Money” of 1-800 CONTACTS, the world’s only or $195 for the all-day event. largest direct marketer and distrib- Call To Subscribe Register at http://www.venture- utor of contact lenses, and a com- capital.org/vc-events. pany which he helped take public. 801-533-0556 • Feb. 9, 8-10 a.m.: “Doing While at 1-800 CONTACTS the Business in Korea.” The event company grew from just over $20 will consist of a panel discus- million to about $200 million in sion on the U.S.-Korea Free Trade sales. Prior to 1-800 CONTACTS Agreement and the risks, ben- Tanner did turnaround work as efits and legal implications and CFO of Clover Club Foods, a cultural issues companies should $100 million Utah-based manufac- consider when conducting busi- turer and distributor of salty snack 14 The Enterprise Feb. 6-12, 2012

The high cost of Romney's scorching victory Mitt Romney’s convincing — demanding, for instance, that two decades ago, when he created That is surprising, if only because and would be dismayed to learn victory in the Florida primary Romney release many more years GOPAC to take over Congress. the frontrunner is so plainly a that Romney has hired on the erased his earlier defeats and per- of tax returns. Although Gingrich’s own captive of the Republican Party’s same discredited crew that misled haps any serious obstacle But the elector- copious defects often blunt the ultra-hawkish neoconservative us into Iraq, and that botched the to his nomination. The ate can also learn much impact of his attacks on Romney faction, which dominates the cam- wars in both Iraq and Afghanistan question that still troubles about Romney from Ron — as they did during the final paign advisory team he announced at a cost of trillions of dollars and party leaders, however, is Paul, if the Texan ever debate in Florida — his message last fall. On Tuesday evening, thousands of lives. the damage he will sustain summons the courage can still be effective. And he will Romney’s blustering prattle about A military veteran who served before returning to Tampa to articulate their pro- continue to dream of discovering American military power sounded at the height of the Cold War, as in September for their con- found differences on the silver bullet that will take down like former Vice President Dick he often points out, Paul has the vention. war, national security his patrician tormentor — perhaps Cheney at his most disturbed. And credentials to expose Romney’s Triumph could cost and defense spending. a document proving Romney, like like Cheney, Romney is a “chick- hollow, bellicose but still danger- Romney much more than The scorching Joe Conason so many other multimillionaires, en-hawk” who avoided service in ous posturing. What remains to be the million dollars or so character assaults that used loopholes to pay no income Vietnam by signing up for defer- seen in the weeks ahead is whether that bought each point incinerated Gingrich taxes at all while making those ments (to perform Mormon mis- he has the grit to do so. of his 46-32 margin over Newt have left him yearning for revenge, lucrative private equity deals. sionary work — in France!). Gingrich. Already the former and he is a past master of the Meanwhile Paul, admired by Although Paul’s unorthodox speaker has shaped the plutocratic politics of personal destruction. In many on the left for his anti- views on the Mideast conflict and Joe Conason is the editor in chief image of Romney now visible in Florida, he became the target of the war statements, has so far avoided Islamist terrorism may be unpopu- of NationalMemo.com. national polls. A furious, wounded same tactics and rhetoric that he directly criticizing Romney’s for- lar, most Americans today share Copyright 2012 Gingrich could go still further popularized among Republicans eign policy positions or advisers. his aversion to foreign wars — Creators.com. Feb. 6-12, 2012 The Enterprise 15

Getting nowhere, very fast California has a huge state economic viability of mass trans- density required for passengers don’t ring a bell with you, there over politically out in the San debt and Washington has a huge portation, from subways to high- to cover the operating costs. You is a reason. They are modest- Joaquin Valley. national debt. But that does not dis- speed rail. would need the hordes of Genghis sized communities out in the agri- The only reason for even courage either Gov. Jerry Brown It so happens that I have Khan riding the high-speed rail cultural San Joaquin Valley, well thinking about building a high- or President Barack Obama from ridden on Spain’s high-speed rail system to cover the additional removed from San Francisco or speed rail line between Merced wanting to launch a very costly system. It was very nice, espe- costs of the rails and the trains. Los Angeles. and Bakersfield is just to get the high-speed rail system. cially since I did not have to An economics professor at You can bet the rent money project under way with federal Most of us might pay the full costs, which the University of Barcelona says that high-speed rail traffic between money, making it politically more be a little skittish about were subsidized by the that Spain “has not recovered one Merced and Bakersfield will never difficult to stop the larger project spending money if we Spanish taxpayers. single euro from the infrastructure come within shouting distance for a similar rail line between San were teetering on the While the Spanish investment.” of covering the operating costs. Francisco and Los Angeles. brink of bankruptcy. But government has been The most famous high-speed Some people have analogized put- In other words, they are the beauty of politics is subsidizing the pas- rail system is that in Japan, one ting such a rail line between these going to start wasting money out that it is all other people’s sengers on its high- of the most densely populated two towns to the infamous “bridge in the valley, so that they will be money, including among Thomas speed rail system, the countries in the world. The “bul- to nowhere” in Alaska. able to waste more money later those other people genera- Sowell European Union has been let train” between Tokyo and Why are they doing it? on, along the coast. This may not tions yet unborn. subsidizing the Spanish Osaka has 130 million riders a Because they can. make any sense economically, but The high-speed rail system government. Someone once said year. Tokyo alone has more than If they began this proj- it can make sense politically for proposed for California has been that government is the illusion that three times the population of San ect where they want it to go — Jerry Brown and Barack Obama. envisioned as a model for similar we can all live off somebody else. Francisco and Los Angeles put between San Francisco and Los An old song ended, “You’ve systems elsewhere in the United Spain’s high-speed rail system is together. Angeles — they would run into been running around in circles, get- States. A recent story in the San not even covering its operating In California, an element so much opposition from the envi- ting nowhere — getting nowhere Francisco Chronicle used the costs, never mind the enormous of farce has been added to the ronmentalists, and from local poli- very fast.” On high-speed rail. high-speed rail system in Spain as costs of setting up the system in impending economic tragedy, if ticians influenced by the environ- the first place. One reason is that an analogy for California. the envisioned high-speed rail sys- mentalists, that the delays could Thomas Sowell is a senior fellow Spain is about the same size half the seats are empty in the tem actually materializes. take the high-speed rail advocates at the Hoover Institution, Stanford as California, and has a similar high-speed trains in Spain. The first leg of the system beyond the time limit for using University, Stanford, CA 94305. population density — and popu- That is what happens when is planned to run between Fresno the federal subsidy money. But the Copyright 2012 lation density is the key to the you don’t have the population and Bakersfield. If those names green fanatics have not yet taken Creators.com Congratulations to Mountain America’s SBA Team...

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