Confidential
MARKET ANALYSIS
Market Analysis
The Ranch, Resort and Conference
Center at Moab Utah
Index
The following areas are covered in this section

Introduction

Research Approach

Industry Summaries for Our Ranch SBU’s

Workforce Statistics for Our Ranch SBU’s

Moab Area Overview

Market Segment Analysis

SWOT Analysis

Customer Profile

Target Audience Profile

Market Summary
Introduction
The saying among cynics in Moab is that a climber/hiker/biker comes to
town with a dirty pair of shorts and a $20 bill in their pocket and leaves two days
later with both. But times have changed. Now, more often than not, that grungylooking adventurer has an SUV, piles of expensive gear, and loads up on fuel,
ice, gas, snacks, maps and beverages upon entering town. Then he'll rent a
mountain bike, jeep, ATV and a tour guide.
"People who say that really don't understand the people they're talking
about," says Marian DeLay, executive director with Moab Travel Council. "And
those that do leave with dirty shorts and $20 still send more people back."
Locals were lucky to have $20 in their pocket when the uranium mines
died in Moab in 1983. Moab was already a Mecca for rafters, dirt bikers, and
jeepers, with 90,000 visitors annually, but "the community realized it was not
enough," she says.
© Copyright The WellSpring Institute All Rights Reserved
1
Confidential
MARKET ANALYSIS
In 1985 Bill and John Groff started bike tours on the dirt-bike trails and by
1990 mountain biking put Moab on the map. More than 1.5 million visitors
annually now spend an average of $115 per day in town, up from $76 in '95.
So what's the big deal? Riding redrock gives mountain bike tires
supernatural traction, making Moab to mountain bikers what the North Shore is to
surfers. Word about the stunning country and climate spread and now, Moab
sees three seasonal waves: spring roars in with mountain bikers, families of fourwheeling enthusiasts and hordes of spring breakers--mostly from out of state-packing all 2060 rooms and 1700 campsites; summer sees crowds of Harley
Davidson’s and the main wave of adventure seekers--river runners, rafters,
climbers, photographers, hikers--then the heavy-spending Germans, French,
Italians and Canadians; and fall brings backroad cyclists, four-wheelers, and an
influx of seniors who jam the RV parks on their way south for the winter.
Darwin Barker, manager of Eddie McStiff's brewery and restaurant, says
foreign tourist numbers fluctuate with the euro. Festivals with themes of bikes,
music, off-roading (Jeep Safari is the single biggest week), and even rodeo
provide huge boosts, too.
Barker's "ideal visitors," however, are yuppies. "We love the couples in
BMW's who pull up with mountain bikes in the trunk and sit and drink martinis,"
he says. "Money is not an issue, no kids; they eat from the top of the menu and
are not afraid to order a bottle of wine."
He likes all visitors, though, and is happy to see Moab cutting into St.
George's spring break traffic. "I'll get a group of 20 kids from Kansas in here
tonight," he said in mid-March, "and a group last Friday from Holy Cross in
Indiana."
Yuppies or no, Moab is seeing more visitors who don't want to sleep in a
Motel 6. Down the river from town, Red Cliffs Lodge is home to a winery and
restaurant, with 80 rooms, on-site sports, a film museum, riverside hot tubs, and
a four-diamond AAA rating. Over 2,000 movies and commercials have been
filmed in Moab, and Hollywood crews often stay at Red Cliffs or the newer Sorrell
River Ranch, a similar luxury lodge on the mesas above Castle Valley. Riverview rooms, Cataract Canyon raft trips, a spa, and four-wheel-drive tours pull
celebrities and executives to the century old ranch, says spokesperson Sara
Snider. Rooms are $200 to $400 per night, with most guests dropping about
$1,000 per person on a single weekend.
Snider came from New Orleans nine years ago, and is shocked at how
little overall growth there is in Moab, despite the five-year-old Sorrell outfit being
"incredibly busy, during season" with affluent, repeat clientele packing its 55
rooms.
© Copyright The WellSpring Institute All Rights Reserved
2
Confidential
MARKET ANALYSIS
"The high desert is such an amazing experience for people. They are
surprised by it and want to come back ... but overall there is so little growth," she
says. "It's amazing how stagnant it is. A lot of people think Moab is Monument
Valley and Grand Canyon. We don't really have an identity we're marketing."
Moab will inevitably be "another Telluride, another Vail, another Sedona," she
says, but it may take a few years.
In addition to tourism, start-up businesses incubate well in the redrock.
Zeal Optics was founded six years ago by Michael and Wink Jackson,
competitive cyclists, and went on to win awards as a top Utah growth company.
Another mountain biker, Ashley Korenblat, owner of Western Spirit cycling tours,
has expanded her local touring business internationally, as far as Costa Rica.
International tourists make up only 3.4 percent of non-resident travelers to
Utah but as high as 40 percent on some summer days in Arches National Park.
There are snow and mountains in Europe but nothing close to Utah's Navajo
sandstone cliffs, deserts and formations.
The Ranch, Resort and Conference Center at Moab Utah is soon to
become one of the highest rated resort hotel and guest ranch vacation
destinations in the Western Untied States taking advantage of the World’s most
unique and varied landscapes including Arches National Park, Canyon lands,
Dead Horse Point, Goblin Valley and Needles recreation areas.
The Ranch, Resort and Conference Center at Moab Utah will focus on the
following product and service lines that will become Strategic Business Units
(SBU’s) with profit and loss responsibility:

The Ranch Operations - Sector 11--Agriculture, Forestry, Fishing And
Hunting

The Country Store and Western Town Mall - Sector 44-45--Retail Trade

The Sale Of Private Homes And Timeshares - Sector 53--Real Estate
And Rental And Leasing

The Training And Conference Center - 611430 Professional And
Management Development Training

Hunting Lodge, Bunk Houses, Hotel And Food Services - Sector 72.
721--Accommodation And Food Services

Golf Course, Tennis Operations, Sports Center And Other Recreation
Services - Sector 71--Arts, Entertainment, and Recreation

Elder Care Center- Community Care Facilities for the Elderly: NAICS
Code 623311
Youth Development Center - - Fitness and Recreational Sports Centers;
NAICS Code 713940

© Copyright The WellSpring Institute All Rights Reserved
3
Confidential

MARKET ANALYSIS
Indian Nation Culture Center
In addition we will focus on or target the following market segments and key
customers:

Executive, Management and Team Training

Personal Development Retreats

Women Conferences

Family Reunions and Youth Conferences

Vacationers

Asian and European Travelers

Young Adult Programs

Sports Camps

Elder Care
Research Approach
Information in this analysis was developed from data covering more
than 300 US establishments and 50 world wide companies and all of the
businesses in the Moab and San Juan Counties of Utah. While we believe
that the information contained in this report represents an accurate picture of
trends and performance, no claim is made as to the accuracy of the
database(s) utilized or the results of subsequent analyses.
In addition, we have taken the opportunity to do extensive perusal on
the Internet looking for evidence in the industry literature from pundits’ and
industry leaders to suggest any general trends or fads that would either
support or refute our hypotheses for success. We researched numerous
articles in mainstream media, and the industry specific media and
accumulated for the most part corroborating evidence.
Our conclusions come from research gathered in the eight industry
cluster and nine market segments identified above.
We have quoted information and statistics that have come from
sources that have used at minimum twenty five different businesses from and
around the United States and the World. Our findings come from over 1,357
separate organization listings.
Starting from the general or very basic industry perspective, and
gathering a very macro or “thirty thousand foot” view… and then working to
© Copyright The WellSpring Institute All Rights Reserved
4
Confidential
MARKET ANALYSIS
the specifics of a fairly new niche within that broader industry, we’ve tried to
narrow the view and come to a surer conclusion.
The overall impression after months of research suggests that there is
certainly an awareness of and recognition that each of our product lines is in
high demand and currently producing billions of dollars of revenue world wide.
We are also convinced that our combination of products, our unique
target markets and the synergy that can be gained by combining these
products and services into one destination resort will fill a an every growing
need and generate prosperity for all stakeholder for the new organization.
Industry Summaries for Our Ranch SBU’s
Resort Industry
Recent studies have shown what folks in the travel industry have been
noticing for the past several months—the economic downturn of the past year is
reshaping the tourism landscape.
With smaller vacation budgets, many travelers are downsizing their
vacations by staying closer to home and going on shorter trips, such as long
weekends. “Staycations” and day trips have become increasingly more popular.
A recent aol.com survey found that 49% of Americans are considering a
vacation planned around local tourist attractions, such as museums, aquariums
or amusement parks, to save on travel costs. According to TripAdvisor.com,
52% of travelers said it takes them less than one day to unwind, making
weekend getaways a nice option for a quick rejuvenation.
“An emerging trend is travelers getting greener. They plan to be more
environmentally-conscious, and will be more active outdoors this year, taking
advantage of some of the outstanding resources in the U.S., such as our
beautiful national parks,” said Michele Perry, vice president of global
communications for TripAdvisor. Many in the industry are also noticing more
reservations are last minute this year.
Weekend travelers, in fact, tend to plan their vacations at the last minute.
Many hotels and resorts are responding to this trend by offering last-minute
deals online. Although aol.com found that 67% of Americans prefer to plan their
longer trips weeks to months in advance rather than cash in on last-minute deal
savings, according to a study by the Travel Industry Association (TIA), most
weekend travelers make last-minute plans and select their destination within two
weeks of their trip. Many travel experts recommend checking for last-minute
deals through the destinations’ websites.
Internet comparison-shopping is on the rise as travelers seek more value
for their vacation dollars. Consumers are also favoring all-inclusive vacation
© Copyright The WellSpring Institute All Rights Reserved
5
Confidential
MARKET ANALYSIS
packages as a way to budget trips. According to TIA, 76% “expect to book a
packaged vacation to save money”, 58% “plan to comparison shop for prices and
rates specifically on the Internet.” and 67% expect to “spend less on food,
beverages and entertainment” when traveling. Jayne O’Connor, president of the
White Mountains Attractions Association.
But a good deal is not the main social trend in travel today. Travelers
want unique experiences that they can describe to their friends back home, says
Daniel Levine, executive director of the New York-based Avant-Guide Institute, a
guidebook publisher and consultant on cultural trends. “It’s about brag-ability.
It’s about telling people something you’ve done that they haven’t done.”
Levine’s advice to the travel industry? “Think about what experience you can
give people that they can’t get anyplace else. The bottom line is about surprising
and delighting your customer.”
Developing Nations Travel
What is it that emerging middle classes crave most after they've secured a
decent house and a spanking new car? Yup, TRAVEL. So, with millions of
consumers in major Chinese metropolitan areas having joined the MASS CLASS
Walhalla, it should come as no surprise that Chinese tourism within China, to
Hong Kong and to the rest of the world is booming. More than 16 million people
traveled from mainland China last year, and this year that number is projected to
rise by at least 18 percent -- the highest growth rate of any Asian nation, studies
show.
Where are they all staying? Well, with Chinese incomes still modest
compared to most developed nations, affordable two and three star resorts and
hotels are most popular. Hence the rebirth taking place for many resorts and
hotels once popular with Germans, Americans and Swedes.
Chinese government officials and businessmen routinely detour to Las
Vegas and lose so much money that U.S. casinos like the MGM Grand, Harrah's,
the Venetian, and Caesar's Palace have opened offices in China and are
dispatching representatives to China to organize groups of high-stakes gamblers
and attract more business. Casinos from South Korea, the Philippines, Australia
and North Korea have followed suit.
By 2020, the World Tourism Organization has predicted, more Chinese
tourists -- a massive 100 million -- will head overseas than tourists from any other
country. They made up just 1 percent of the Australian tourism market in 1995;
that figure is expected to rise to 25 percent by the end of the decade. The
Honolulu Advertiser, Hawaii's leading daily newspaper, recently reported that
China, not Japan, is the state's long-term hope of boosting its sagging travel
industry.
© Copyright The WellSpring Institute All Rights Reserved
6
Confidential
MARKET ANALYSIS
Attracting Families
For the Western ski industry as a whole, several levels of a multitiered
strategy for attracting new generations as the core group of big spenders that
fueled the industry's growth over the past 30 years starts thinking about hanging
up its skis.
"The industry's economic well-being is based on a transition of skiing
passion from the baby boomers across the bridge to the millennials," said Ralf
Garrison, whose Mountain Travel Research Program tracks lodging trends for ski
resorts in western North America.
Fortunately for the ski industry, baby boomers, who wield the bulk of the
country's discretionary income, don't act like their parents. With 60 being the new
40 (and with the aid of technology ranging from easy-to-maneuver parabolic skis
to knee replacements), many will ski well into their 70s. So resorts like
Breckenridge and its parent, Vail Resorts, are working aggressively to make sure
they offer everything aging baby boomers (and their children and grandchildren)
might want, even if sore knees start to limit the amount of time they can spend on
the slopes.
"The most important thing to keep baby boomers coming back is to make
sure their kids want to come back -- and their grandkids," said Rob Katz, CEO of
Vail Resorts, which owns the Breckenridge, Keystone, Vail and Beaver Creek
resorts in Colorado and Heavenly at Lake Tahoe. The company also has a
lodging arm, which includes Rock Resorts. "If you can take the kids and the
grandkids on vacation, you know it's probably going to be a huge success.
"Properties like One Ski Hill Place are really an interesting place, where
people and families can congregate and come together," Katz said. "It really is
providing a comprehensive experience. You have luxury opportunities, but you
also have family opportunities, things for everyone to do on the mountain. That
allows the baby boomers to come back, because everyone in their family wants
to come back."
Although adding luxury was key for a resort like Breckenridge, the
economic realities of the past few years have largely put any new development
on hold. Still, the new resorts here, and this mountain town as a whole, offer a
glimpse into what ski resorts, particularly in the West, are doing to prepare for the
generational shift that some predict could create a 10-year trough in demand.
At the Arrabelle, a luxury hotel that was developed at the height of the
ultra luxury boom and which opened just before the global economy collapsed,
Paul Toner, senior vice president and COO of Rock Resorts and Vail Resorts
Hospitality, says the company has made some changes.
© Copyright The WellSpring Institute All Rights Reserved
7
Confidential
MARKET ANALYSIS
There is less emphasis on amenities such as 24-hour butler service, he
said. And the fine-dining restaurant was scaled down to make way for an upscale
tavern. "That really hit a home run," he said, explaining that Rock Resorts is
focusing more on "smart, savvy" luxury. The company is also working to offer
more value-oriented packages that make the whole vacation easier.
Baby Boomers Rebound
Coming out of the recession boomers have been the least affected in
terms of real wealth. He said Generation Y is saddled with high credit card debt,
while Gen X is feeling the pinch of unemployment.
At the same time, "Unemployment [among] boomers has decreased.
There are fewer unemployed boomers now than before the recession, so what
you have is a group of people who still have a lot of money."
"Twenty and 30 years ago, when the 80 million boomers in North America
were in their 20s and 30s, and when the number of people under the age of 50
was nearly double the number of people over 50, you could get away with the
bias of youth, because there were way more people under the age of 30. Now
there are as many people over 50 as there are under 50, and the people over 50
have the money. Seventy-two percent of our nation's wealth is in the hands of
people over 50."
Because of that, resorts need a dual-pronged marketing program to keep
the wealthy boomers coming back while building interest among their children,
who have cheaper alternatives, such as urban skating parks, than baby boomers
ever had when they were seeking an adrenaline rush in their 20s.
Training and Development Industry
Training Magazine's 2007 Industry Report finds the training budget of
organizations has grown to $58.5 billion. However, growth is down compared
with 2005 to 2006, when training budgets increased 7 percent, compared with 6
percent from 2006 to 2007. Organizations reported that an average of $1,202
(including staff salaries) was spent per learner on training.
Instructor-led classroom training remains the dominant delivery method,
used for 65% of all formal training, while self-study e-learning now accounts for
20% of student hours. However, the lines are becoming blurred because what
used to be pure instructor-led training now is typically a blend of classroom and
online learning.
Leadership development, which includes management/supervisory
training and executive development, is a $12 billion industry, including internal
© Copyright The WellSpring Institute All Rights Reserved
8
Confidential
MARKET ANALYSIS
and external spending. That said, the number of training organizations reporting
budget increases still far outweighs the number (16 percent) reporting budget
decreases. Approximately one-third of training organizations reported no change
in their budgets over last year.
Across all companies, budgets increased 6 percent this year, on average.
Small businesses (those with 100 to 999 employees) saw budget increases of
nearly 7 percent, on average; midsize and large companies reported increases in
the 6 percent range. But even with these larger budgets, the amount of spending
per learner has not risen. This year, organizations spent $1,202 per learner on
training (including staff salaries), which is roughly equivalent to last year’s figure
of $1,273. Why? Companies now have more employees to train, and they are
still hiring and expanding their workforces, keeping per-learner spending stable.
In terms of staffing, approximately one-third (30 percent) of training groups
added headcount over the last 12 months, which is also a decline from the 37
percent reporting staff increases in 2006. In most training organizations (67
percent), the number of training personnel has remained steady over the last
year. Only a small number (3 percent) of training groups said they have fewer
staff this year than last.
Overall, the average staff-to-learner ratio remained the same as last year,
at 6.7 training personnel for every 1,000 learners. Total payroll spending for
training staff personnel has remained fairly consistent over the last several years.
This is due, in part, to the changing composition of training groups. As senior
training personnel retire, they are replaced by younger, lower-cost workers. In
addition, organizations once heavily staffed with instructors now are hiring higher
proportions of content developers and technology specialists to facilitate their
online learning strategies, roles that come at a lower cost than a senior trainer or
instructor.
Over the years, the proportion of training dollars spent on saw overall
training budgets and staffing go up, but growth tailed off somewhat, and the
number of training organizations reporting increases in their training budgets and
reporting staffing increases dropped.
Overall, U.S. organizations shelled out $58.5 billion for training this year
(including payroll and training budgets), with $16.3 billion earmarked for external
learning products and services. These numbers are up 4.8 percent and 3.1
percent, respectively, from last year’s figures of $55.8 billion and $15.8 billion.
However, growth is down compared with 2005 to 2006, when training
budgets increased 7 percent, compared with 6 percent from 2006 to 2007.
Approximately half (54 percent) of all training organizations reported increases in
their training budgets this year versus 63 percent in 2006.
With the increase in e-learning, organizations are spending a greater
proportion of their training budgets on learning technologies. They also are
© Copyright The WellSpring Institute All Rights Reserved
9
Confidential
MARKET ANALYSIS
spending more on outside services. With the high numbers of external vendors
and consultants available today, training groups are outsourcing more functions
and are utilizing their internal teams for more strategic, value added activities.
Top Priorities
Training organizations have a variety of program areas competing for
funding. This year, the top areas for funding include management training and
profession- or industry-specific training. Each of these areas receives 15 percent
of training dollars.
Profession- or industry-specific training includes programs in areas such
as accounting, engineering, or the telecommunications market. This training can
be provided internally or through outside conferences, seminars, or classes. As
most skilled workers need continual training in their specific profession or
industry, a large amount of money is spent in this area.
Management and supervisory training receives a great deal of funding
due, in part, to the aging of the workforce. With large numbers of retirements
looming, companies are focused on succession planning. The combined
leadership training and development category, which includes both
management/supervisory training and executive development, captures 21
percent of training dollars, the single largest category. This underscores the
critical nature of this program area, as organizations realize they must invest
heavily to fuel their leadership pipelines.
Mandatory/compliance training and sales training also are among the top
areas for funding. Each of these program areas receives 13 percent of training
dollars. Meeting compliance requirements is a critical issue in regulated
industries such as the financial services and health-care sectors. Other types of
mandatory training, such as operational safety, are important in the
manufacturing sectors.
Corporate-wide tracking and reporting on these programs can be
problematic, as many companies struggle with pulling the requisite data from
their internal learning systems. Many companies are investing more in online
learning to facilitate the delivery, tracking, and reporting of these programs.
Sales training is of critical importance to most companies. The rapid pace
of new products and features necessitates continuous updating of the sales
force. And these programs can be expensive to deliver, as they generally entail a
large amount of face-to-face training and involve learners from all over the globe.
Many companies now are using online training to deliver parts of their sales
training, and some are experimenting with new methods, such as podcasting, to
efficiently deliver these programs.
© Copyright The WellSpring Institute All Rights Reserved
10
Confidential
MARKET ANALYSIS
Spending allocations by employee group have remained fairly constant
over the last few years. Sixty-four percent of the funding goes toward training
employees (exempt and nonexempt). Managers receive 26 percent of the
resources. And although executives represent a tiny fraction of the overall
workforce, they receive 10 percent of training dollars. This again illustrates that
organizations are willing to spend an extraordinarily high proportion of their
budgets on training their current and next generation of leaders. These programs
typically are conducted in a classroom or face-to-face setting with outside experts
to facilitate the sessions, making them costly to deliver.
E-Learning Acceleration
Delivery strategies continue to evolve as online training becomes a
mainstream delivery vehicle. Instructor-led classroom training remains the
dominant delivery method, used for 65 percent of all formal training hours
consumed by learners. This number has dropped considerably over the last
several years, but has remained fairly steady from 2006-’07. The use of selfstudy e-learning continues to grow, now accounting for 20 percent of student
hours, up from last year’s figure of 15 percent. Live virtual classroom training
accounts for another 10 percent of student hours. Many of these virtual programs
are recorded and available for playback, contributing to the growth of self-study
online learning.
When taken together, self-study e-learning and virtual classroom training
account for 30 percent of formal training hours consumed by learners. Use of
other methods for formal training—such as videos and paper based workbooks—
has declined slightly since last year. As online training becomes feasible for more
organizations, these methods gradually are being phased out.
In general, large organizations make greater use of online methods, as
they are more likely to have the budget and technology necessary to
accommodate online training. Among companies with more than 10,000
employees, 25 percent of formal training is online self-study, and another 12
percent is delivered by virtual classroom. These proportions have remained the
same over the last year.
The use of online training jumped significantly among small companies.
Last year’s study found that self-study e-learning accounted for 14 percent of
formal training delivered in small organizations (100 to 999 employees). This
year, the number shot to 20 percent, demonstrating that more small companies
are acquiring the skills and technology to make online training a reality. “We
expect e-learning to continue to grow, both in standalone programs and in
combination with other modalities,” says Karen O’Leonard, principal analyst for
Bersin & Associates and project lead for the study. “The lines are becoming
blurred because what used to be pure instructor-led training (ILT) now is typically
a blend of classroom-based and online learning.”
© Copyright The WellSpring Institute All Rights Reserved
11
Confidential
MARKET ANALYSIS
Online methods are used most extensively for mandatory or compliance
training, in which 28 percent of training is conducted “mostly or completely”
online. Because of the critical nature of these programs, many firms are turning
to online delivery to make them easier to deploy, measure, and report. Not
surprisingly, online training also is used widely for training on desktop
applications and IT/systems training, where the nature of the content makes
online delivery a natural choice.
Online training is used more sparingly in the areas of interpersonal (“soft”)
skills, executive development, customer service, and sales training, where
classroom or face-to-face training still dominates. When online methods are used
in these areas, it is primarily as prerequisite or supplemental material to live, inperson training.
Maximum Impact
This year, the primary focus among training organizations is on increasing
the effectiveness of their programs. Just less than half (44 percent) of
organizations report this as a No. 1 or No. 2 training priority. The importance of
training effectiveness has ratcheted up significantly in the last year, as
organizations look for ways to affect the transfer of learning and ultimately the
bottom line.
Measuring the impact of training programs goes hand-in-hand with
increasing effectiveness, and was mentioned by 28 percent of companies as a
top priority. This number is consistent with last year, as despite the large number
of books, seminars, and articles written about training measurement, most
organizations continue to struggle with the process. Although there has been an
intense focus on measuring the business impact of training, most organizations
measure tactical aspects such as completions and volumes— things that are
relatively easy to measure, but aren’t very valuable. The current hype over
measurement will continue in the short term as organizations define their
measurement plans (i.e., what to measure and when). Ultimately, most
companies will choose a few programs for measuring business impact, those that
are worthy of the time and resources required for this effort.
Reducing costs/improving efficiencies is also near the top of the list, cited
by 29 percent of training organizations as one of the top two priorities this year.
This number is roughly equivalent to last year, and underscores the fact that, as
primarily cost centers, training organizations must remain constantly vigilant over
expenditures.
One area that has come to the forefront this year is integration with
performance and competency management initiatives. Part of the reason is that,
driven by the shortage of talent, organizations are focusing more closely than
ever on career development programs. These talent-driven learning initiatives
are multi-year, multi-class programs that require integration of learning activities
© Copyright The WellSpring Institute All Rights Reserved
12
Confidential
MARKET ANALYSIS
with competencies and job families. As such, organizations increasingly are
asking their suppliers to link these applications together, and many vendors are
rushing to design and implement their performance/learning management
strategies.
Ultimately, many companies would like to integrate all of their
performance, talent, and learning activities. This has created a new category of
HR applications we call “talent management.” In addition to learning,
performance, and competencies, “talent management” includes other HR
activities such as recruiting and succession planning. Although just 12 percent of
organizations today view this as a top priority, we expect this area to grow in
importance over the next few years.
The two top priority areas from last year have fallen in importance this
year. Faster deployment was the second highest priority in 2006, but this year is
near the bottom of the list. This could be due to the widespread adoption of rapid
e-learning tools, which have satisfied many companies’ need for getting out
programs quicker. And the top priority last year—learning technology and
infrastructure—was cited by only 24 percent of companies as a top consideration
this year. Now that most organizations have technology in place, they are
focused on making the greatest use of it.
More Midmarket LMS’s
Today’s learning organizations have a plethora of tools and technologies
at their disposal. According to the research, the percentage of companies using
most learning tools has not changed significantly over the last year. Nearly 40
percent of organizations are using a learning management system (LMS); more
than half are using a virtual classroom tool; and between 20 and 30 percent are
using application simulation and rapid e-learning tools. Among large companies,
these numbers nearly double.
Within the LMS market, the percentage of small and large companies
using an LMS has not changed significantly. However, the mid-market segment
(1,000 to 9,999 employees), which has been heavily courted by LMS vendors,
has seen a significant jump in usage of learning management systems over
the last year. This has been the fastest growing segment of the LMS market,
and nearly every large vendor has introduced an offering specifically targeted
toward mid-market buyers. (For more information on the LMS market and
vendors, see “LMS 2008” at http://store.bersinassociates.com/lms.html.
For many large enterprises, the primary challenge is supporting and
integrating their technologies. Among those using an LMS, nearly two-thirds now
have a single, company-wide LMS. Just two years ago, this figure was 55
percent, underscoring the consolidation that is happening within corporate
infrastructures. One-quarter of large companies said they have consolidated or
reduced the number of learning management systems in the last 12 months. This
© Copyright The WellSpring Institute All Rights Reserved
13
Confidential
MARKET ANALYSIS
consolidation should continue as organizations strive to eliminate redundancies
and streamline their processes and systems. Approximately one-quarter of large
enterprises still have multiple LMS’s running internally.
New Technologies and Approaches
Training groups must continually rethink how they develop and deliver
learning programs. Learning on-demand and collaborative learning methods are
emerging categories that are poised to revolutionize how learning is conducted in
the enterprise.
Learning on-demand implies that information and digital learning assets
are made immediately available—just as the learner needs them. These
solutions today include online support materials, agents, and electronic
performance support systems (EPS'S).
Organizations are recognizing that monolithic courseware that takes
weeks to deliver is not the answer for many learning challenges. Learners need
access to chunks of information while they are working or while they are on the
road.
Learning assets need to be modularized into short segments for easy
access and consumption. Podcasting is one example of how organizations are
providing small segments of information to learners that can be accessed from
almost anywhere.
Usage of podcasting for training purposes grew from 5 percent in 2006 to
15 percent this year, and organizations are finding that podcasts are used by
more than just mobile professionals. Many learners like to listen to podcasts
while at their desks or at home, not only while they are on the road.
Another strategy still in its infancy is the use of learning portals. These
portals offer a single place for learning resources, including access to online
learning, documents, blogs, discussion groups, and even people. Although the
notion of a single place for learning sounds ideal, companies are finding it takes
a great deal of time and effort to create, maintain, and manage the sites. These
factors are contributing to the slow adoption of learning portals.
Collaborative learning is a fairly new approach designed for the new
generation of workers who are accustomed to social networks and cooperative
learning. One example is communities of practice, used by 11 percent of training
organizations today. Blogs and wikis are other examples of collaborative
learning, and are mainly in the experimental stages from a learning standpoint.
All of these tools promote a group learning format, underscoring the idea
that “many minds are better than one.” “With the younger generation of
employees, organizations need to rethink how they deliver learning,” explains
© Copyright The WellSpring Institute All Rights Reserved
14
Confidential
MARKET ANALYSIS
O’Leonard. “Today the most important trends are toward audio, mobile, and
collaborative environments.”
Out-Tasking Grows
Training organizations typically turn to outside providers when they lack
internal expertise or bandwidth. As they become more strategically focused, they
tend to outsource more tactical and specialized functions. This has driven the
growth in outsourcing (or “outtasking”) in two main areas: instruction and custom
content development.
Most organizations turn to outside professionals for some of their
facilitation and teaching needs. Today, 53 percent of organizations report using
external instructors, up from 44 percent last year. Companies may choose to
bring in outside experts, particularly in the areas of management and leadership
training and some areas of technical training.
Use of outside suppliers for custom content development likewise has
increased, from 29 percent of organizations using outside developers in 2006 to
43 percent this year. This, too, traditionally has been a popular area for
outsourcing, as training groups are under increased pressure to quickly meet
learning gaps and don’t have the expertise, bandwidth, or desire to do it
themselves.
Content development often can be expensive, however, prompting some
organizations to turn to offshore providers for their custom content. This year, 4
percent of organizations reported using offshore custom content developers,
down from 11 percent last year. Many customers have experienced problems
with offshore firms, primarily around communications and project management.
To alleviate these challenges, offshore companies have set up U.S.- based sites
or partnerships (and many U.S.-based vendors, in turn, have established
partnerships or offices abroad), allowing customers to work with local personnel
while still enjoying some of the cost savings of overseas labor.
In the areas of learner support and LMS hosting, use of external suppliers
has remained steady over the last year. One out of five organizations outsources
learner support/help desk activities. And slightly more (28 percent) host their
LMS with a third party. Indeed, the SaaS (software as a service) model has
changed the LMS market considerably with lower-cost, easy-to-use products.
One area of outsourcing that has declined over the last year is LMS
administration, which includes managing learner registrations and uploading
data. Today, 18 percent of organizations are outsourcing this function, down from
24 percent last year. Most training organizations now have sufficient volumes of
online training programs to warrant hiring a dedicated internal resource to handle
LMS administrative tasks, rather than outsource to a third party.
© Copyright The WellSpring Institute All Rights Reserved
15
Confidential
MARKET ANALYSIS
“Today, there are large numbers of third-party content developers and
instructors/facilitators,” says O’Leonard. “We expect that outsourcing will remain
high in these areas, as training groups turn to outside specialists for many of
their training needs.” T
Construction Industry Economic Outlook
If this recession plays out like previous ones, there still are significant
declines ahead. In the early 1980s recession, nonresidential construction activity
fell by almost 28 percent before growth resumed, a figure exceeded in the early
1990s recession (31 percent) and almost matched in the early 2000s downturn
(25 percent). Kermit Baker, Chief Economist, AIA Consensus Construction Forecast. 1/16/09.
Last quarter the outlook for construction as “the good, the bad and the
ugly.” Now that 2009 is past, the outlook is just plain ugly. Nonresidential
construction will plummet and begin at least three years of contraction. The
bottom in terms of both dollar volume and percent decline will not be until 2010.
Residential construction is not expected to recover until 2011. FMI’s Construction
Outlook: First Quarter 2009 Report. 3/10/09.
“2010 is going to be a tough year for the North American construction
industry.” “While no one has perfect knowledge about the future and there are
certainly serious economic issues yet to be faced, some indicators hint that our
survey may have been taken at or near an economic low point. It’s possible that
a slow recovery is underway or is about to begin. Let’s hope so. A government
stimulus package that includes an infrastructure revitalization component could
go a long way to helping this industry.” Ron Riecks, General Manager, Wells Fargo
While the outlook in the construction looks bleak, it creates a real benefit
for us. In today's construction market you are able to get a lot more value for
less. Building costs are still way down, but edging up a bit from last year. High
quality contractors have been able to stay afloat while less focused contractor
have not, allowing for a better pool of builders to get our project done right. In
addition, real estate costs are back down to where they were about 10 years ago.
They are starting to creep up, but not by much. So, on the real estate front, now
is a good time to buy as well.
Material Costs
Building Costs
20-CITY:
1913 = 100
20-CITY:
1913 = 100
MATERIALS
CEMENT $/TON
STEEL $/CWT
LUMBER $/MBF
SEPT 2010
INDEX VALUE
% CHANGE
MONTH
% CHANGE
YEAR
2703.53
-0.7
+2.8
CEMENT $/TON
102.90
+0.2
+1.5
STEEL $/CWT
45.22
0.0
+3.8
LUMBER $/MBF
396.58
-0.3
-0.4
© Copyright The WellSpring Institute All Rights Reserved
MATERIALS
16
SEPT 2010
INDEX VALUE
% CHANGE
MONTH
% CHANGE
YEAR
2703.53
-0.7
+2.8
102.90
+0.2
+1.5
45.22
0.0
+3.8
396.58
-0.3
-0.4
Confidential
MARKET ANALYSIS
Construction Costs
20-CITY:
1913 = 100
MATERIALS
CEMENT $/TON
STEEL $/CWT
LUMBER $/MBF
SEPT 2010
INDEX VALUE
% CHANGE
MONTH
% CHANGE
YEAR
2703.53
-0.7
+2.8
102.90
+0.2
+1.5
45.22
0.0
+3.8
396.58
-0.3
-0.4
Restaurant Industry
WASHINGTON, Jan. 20 /PRNewswire-US Newswire/ -- With the
economic downturn easing, the restaurant industry is expected to show gradual
improvement in 2010, according to the National Restaurant Association's
Restaurant Industry Forecast. Industry sales are projected to reach $580 billion
in 2010, a 2.5 percent increase in current dollars over 2009 sales. When adjusted
for inflation, 2010 sales will be essentially flat, which is an improvement over the
1.2 percent and 2.9 percent negative growth in real sales that the industry
experienced in 2008 and 2009, respectively.
Restaurants will continue to be strong contributors to the recovery of the
nation's economy, with industry sales representing 4 percent of the U.S. gross
domestic product and employees comprising 9 percent of the U.S. workforce.
"The past two years have been a very challenging time for our industry.
While there are still substantial challenges ahead, we are encouraged that the
outlook is improving," said Dawn Sweeney, President and CEO of the National
Restaurant Association. "With a total economic impact of more than $1.5 trillion,
the restaurant industry is a strong player in the economic recovery. Restaurants
are the cornerstone of communities across this nation and we are a key player in
propelling job retention and creation across the United States."
Industry Segment Growth
Continuing the trend from last year, the quick service restaurant segment
is expected to fare slightly better than the full service segment as diners focus on
value and specials. Quick service restaurants are projected to post sales of
$164.8 billion in 2010, a gain of 3.0 percent over 2009. Sales at full service
restaurants are projected to reach $184.2 billion in 2010, an increase of 1.2
percent in current dollars over 2009.
The eating-and-drinking place segment expected to show the strongest
growth in 2010 is social caterers, whose sales are expected to increase by 4.5
percent. Among all commercial industry segments, the strongest growth is
© Copyright The WellSpring Institute All Rights Reserved
17
Confidential
MARKET ANALYSIS
expected in retail-host restaurants (including those located in gas/service stations
and drug and grocery stores) with a 4.9 percent sales increase.
Workforce Outlook
For only the second time in nearly half a century, the restaurant industry
lost jobs in 2009. Despite the losses, the industry still outperformed the national
economy, and job growth is expected to resume in 2010. The restaurant-andfoodservice industry remains one of the nation's largest private sector employers
with its 12.7 million employees. By 2020, the industry is projected to employ 14
million people - an increase of 1.3 million jobs.
State Sales Growth
Colorado is expected to post the strongest sales growth in 2010 at 2.9
percent (2010 industry sales of $8.7 billion), followed by Idaho at 2.8 percent
($1.6 billion). Forecasted to post growth of 2.7 percent: New Jersey ($12.8
billion), New York ($29.0 billion), North Carolina ($12.8 billion) and Texas ($34.8
billion).
The top states by restaurant sales volume in 2009 will be California at
$58.0 billion (2.3 percent growth); Texas at $34.8 billion (2.7 percent growth);
New York at $29.0 billion (2.7 percent growth); Florida at $27.6 billion (2.4
percent growth); and Illinois at $18.7 billion (1.9 percent growth).
Senior Housing Industry
The Senior Housing Industry provides a remarkable opportunistic period of
time with the baby boomer demographics and during this time period that is the
largest market corrections that the United States has ever seen. Senior Housing
has offered higher stability in earnings than all other real estate asset classes
during this period of economic turbulence as reported by industry leaders.
A Unique Industry Within Real Estate
The underwriting, investment and
ownership of seniors housing has some
commonality with core real estate.
Importantly though, seniors housing has
unique attributes to real estate due to
demand factors that are relatively
independent of typical economic indicators.
As a result, the seniors housing sector has
performed better than core real estate types
in recent years reporting the lowest yearover-year drop in occupancy. It is also the
only property type to post year-over-year
© Copyright The WellSpring Institute All Rights Reserved
Number of people 65 & 85 and older
18
Confidential
MARKET ANALYSIS
rental rate growth.
Chart Source: U.S. Census Bureau; release date: August 14, 2008. Note: “A” indicates actuals based on estimate from 2000 Census
and “F” indicates forecasted population estimates from 2007 actuals.
The following section provides additional detail on the performance of
various property types as compared to seniors housing.
Bucking the downward trend seen in core sectors, the seniors housing
sector is expected to perform well both in the short and long term due to a
confluence of events, namely: limited new supply of seniors housing product,
exponential growth in the 75-plus age group over the next decade, pent-up
demand created by delayed consumer decisions due to current economy and
greater acceptance by the general population of seniors housing as a viable
retirement option.
As said, seniors housing fits well within both consumer non-discretionary
investments and also within growth-oriented investments.
National Health Expectations
National Health Expectations per Capita
Chart Source: Centers for Medicare & Medicaid Services; released in January 2010. Chart Source: Centers for Medicare & Medicaid
Services; released in January 2010.
Healthcare Demand Will Increase In Line With Demographic
Increases
The 75-plus age category is expected to increase by 19.9% from 2010 to
(1)
2020, an increase of approximately 3.7 million Seniors!
In addition to the dramatic increase in the number of Seniors (defined as
age 65 plus) creating demand for seniors housing, societal factors such as a
greater awareness and acceptance of various retirement options increases the
percentage of Seniors that utilize seniors housing, creating an exponential
increase in demand.
© Copyright The WellSpring Institute All Rights Reserved
19
Confidential
MARKET ANALYSIS
A Trillion Dollar Industry
Annual United States healthcare services expenditures are projected to be
(2)
over $2.6 trillion for the current year.
Seniors Housing Versus Other Asset Classes
Seniors housing/healthcare investments
have anticipated long term stability of earnings
and the systematic risks generally appear
favorable over the long term. Demand for
seniors housing (and thus occupancy) is less
impacted by economic forces because it is
offset by the dramatic increase in Seniors that
will occur over the next several decades as the
“Baby Boomers” age.
As illustrated in the chart below, seniors
housing all property occupancy declined by
(4)
1.4% between the fourth quarter of 2008 and
the fourth quarter of 2009, which is relatively
mild compared to the 9.5% decline in the hotel
(3)
sector.
Comparison of Occupancy and Rental Rate Growth
Seniors Housing versus Other Commercial
Property Types*
Percent Change I Occupancy
Percent Change in Rent
Importantly, over the
same period, seniors housing
properties actually still achieved
moderate rental rate growth of
(4)
1.4% while the other real
estate property sectors
experienced decreases in rental
(3)
rates. Many operators/owners
have sustained and even increased their communities’ Net Operating Income
levels in spite of a drop in census. Thus, seniors housing has offered a higher
stability in earnings than other real estate property types during this economic
recession.
*Chart Sources and dates of year-to-year comparisons: Seniors Housing source is NIC MAP Data & Analysis
Service 4Q09; Retail, Office and Multifamily source is Mortgage Bankers Association Quarterly Data Book, Property and
© Copyright The WellSpring Institute All Rights Reserved
20
Confidential
MARKET ANALYSIS
Portfolio Research 3Q09; Hotel source is Hotel News Now as of October 2009 YTD.
Liquidity still exists in the sector enhanced by the availability of attractively
priced agency debt from Fannie Mae, Freddie Mac and HUD. Agency debt is
currently priced 150 to 200 basis points lower than conventional debt and has
reportedly become more aggressive due to lack of product. With the availability
of this lower priced debt, seniors housing may offer comparatively higher equity
cash yields than other real estate property types. This being said, the availability
of debt, particularly for non-performing properties, will continue to be the biggest
challenge
Seniors housing has one of the lowest default rates yet higher interest rate
spreads, thus incentivizing conventional lenders to re-enter the sector and new
debt sources to become attracted to the sector.
Loan Performance
Loans Placed
Loans Performing
Seniors Housing Returns
The third quarter 2009 Property Index Performance Report published by
the National Council of Real Estate Fiduciaries (NCREIF) shows that reporting
seniors housing properties have outperformed the broader National Property
Index (NPI) since at least 2003. More specifically, as of the third quarter of 2009,
© Copyright The WellSpring Institute All Rights Reserved
21
Confidential
MARKET ANALYSIS
the seniors housing component had produced a cumulative return that is 2.3
times its mid-2003 value. This compares with a cumulative gain of 1.4 for the
apartment index and 1.5 for the entire index. This performance is the result of
greater gains in both the appreciation component (1.4 versus 1.0 and 1.1,
respectively) and the income component (1.6 versus 1.4 and 1.5, respectively).
The charts below illustrate the returns achieved by the Seniors Housing
(8)
Sector as compared to the apartment component and the overall index.
Cumulative NCREIF Total Returns
Cumulative NCREIF Appreciation Returns NPI vs.
Apartments vs. Seniors Housing
Cumulative NCREIF Income Returns NPI vs. Apartments vs. Seniors Housing
Total NPI
Apartment
Senior Living Stabilized
Chart is replication of chart provided in article titled “Senior Housing Returns Outperform the NPI” included
in the 2009 Property Index Performance Report published by NCREIF. Specific chart source: NCREIF
Query Tool. 2Q03=1000. 4Q05 Senior Living appreciation return has been set to zero (was 17.7%), as it
reflects atypical results.
© Copyright The WellSpring Institute All Rights Reserved
22
Confidential
© Copyright The WellSpring Institute All Rights Reserved
MARKET ANALYSIS
23
Confidential
MARKET ANALYSIS
The onset of the credit crisis has caused a severe contraction in
construction lending for seniors housing projects. The seniors housing pipeline
(construction versus inventory) was as high as 3.8% as recently as the first
quarter of 2008. As of the fourth quarter 2009, construction versus inventory was
(4)
1.8%.
New Construction Started by Quarter
Seniors Housing Inventory Growth
(Top 100 MSAs)
(Top 100 MSAs)
Major Independent Living
Majority Assisted Living
Major Nursing Care
© Copyright The WellSpring Institute All Rights Reserved
24
Confidential
Seniors Housing
Providers
(Independent
Living “IL”/
Assisted Living
“AL”)
MARKET ANALYSIS
1
2
3
4
5
6
7
8
9
10
Brookdale Senior Living, Inc.
Sunrise Senior Living, Inc.
Holiday Retirement
Professional Community Management
Emeritus Senior Living
Life Care Services, LLC
Erickson Retirement Communities, LLC
Five Star Quality Care, Inc.
Atria Senior Living Group
Horizon Bay Retirement Living
Public -->BKD
Public -->SRZ
Private
Private
Public -->ESC
Private
Private
Public -->FVE
Private
Private
51,888
40,160
36,706
31,215
27,234
22,746
20,985
17,846
14,915
13,054
This is a
highly fragmented
(“cottage industry”)
market.
The top 50 seniors housing providers control 38.3% of the IL/ AL total
(5)
supply. The average size of the top 50 providers is only 9,121 units per
(5)
provider compared to an average of 27,675 units for the top ten providers.
Only six providers in the top 50 are publicly traded companies.
547
371
313
30
309
80
20
161
129
72
Nursing Care Providers
Also a highly
fragmented
(“cottage industry”)
market. The top 50
1
HCR ManorCare
Private
38,140
nursing care
2
Golden Living
Private
33,351
3
Life Care Centers of America
Private
29,367
providers control
4
Kindred Healthcare
Public -->KIND
28,525
26.4% of the total
5
Genesis Healthcare Corp.
Private
27,947
nursing care supply.
6
Sun HealthCare Group
Public -->SUNH
23,345
(6)
Public -->(OTC:
The average size
7
Extendicare Real Estate Investment Trust
18,157
EXETF.PK)
of the top 50
The Evangelical Lutheran Good Samaritan
8
Non Profit
13,409
Society
providers is only
9
National HealthCare Corp.
Public -->NHC
9,772
7,451 beds per
10
Skilled Healthcare Group
Public -->SKH
9,373
provider compared
Source: Provider Magazine; June 2009 issue. Rankings are based on 12/31/08 bed counts.
to 23,139 beds for
(6)
the top ten providers. Only seven providers in the top 50 are publicly traded
companies.
© Copyright The WellSpring Institute All Rights Reserved
25
277
324
223
228
227
207
175
185
76
75
Confidential
MARKET ANALYSIS
SENIORS HOUSING GRAPPLES WITH IMPACT OF HEALTHCARE
REFORM
The Community Living Assistance Services and Supports (CLASS) Act, part
of the federal government’s sweeping healthcare reform legislation, will likely
have a significant impact on the seniors housing sector. This portion of the bill
will set up government-sponsored, long-term care insurance, which could revalue
skilled nursing communities across the country over the next several years.
Users of government-sponsored healthcare will be automatically enrolled in the
program, though the high cost will likely drive many to opt out shortly after
implementation. Consequently, premiums will fall short of benefits paid out after
the five-year vesting period, leading to further stress on Medicaid and reduced
payouts under the current system. Since most of the value in skilled nursing
facilities relates to the profitability of the business and not its physical site, any
decrease in Medicaid payouts will lower the value of the business. This trend will
wedge a divide between new, state-of-the-art facilities that cater to Medicare and
private-pay users and older communities that depend on Medicaid supplements.
While the CLASS Act will likely impair operations at some skilled nursing
properties, assisted living units may benefit from the legislation. Projected
reimbursements will be at least $50 per day, helping pay for the less expensive
living arrangement. Anyone enrolled, vested and needing support for at least two
activities of daily living can opt for home healthcare or assisted living properties,
rather than skilled nursing beds. With approximately half of the cost of assisted
living covered, more seniors will stay in these facilities longer. The resulting
evolution in the census at skilled nursing facilities will cut further into margins as
residents with more challenges move into beds later and the cost of care
escalates. Over the next 10 years, these changes will encourage developers to
build CCRCs with larger assisted living components to stay solvent. A severe
shortage of skilled nursing facilities will emerge as margins fall, requiring
additional government intervention to spur development and supplement the high
cost of care.
© Copyright The WellSpring Institute All Rights Reserved
26
Confidential
MARKET ANALYSIS
SENIORS HOUSING MARKET HIGHLIGHTS
1
Occupancy in the IL segment is expected to fall to
87.5 percent this year, down 70 basis points from year-end
2009. Average rents are forecast to finish 2010 at $2,668 per
month, an annual climb of 0.9 percent.
Assisted Living (AL): The AL sector is projected to
post a 50 basis point occupancy decrease to 87.9 percent in
2010, while average rents will reach $3,565 per month, a
rise of 1.2 percent from last year.
Skilled Nursing (SN): Positive absorption in the SN
arena will push occupancy to 89.8 percent this year, 100
basis points higher than at the close of 2009. Average perdiem revenue will end 2010 at $266 per occupied bed, an
annual gain of 3.5 percent.
Continuing Care Retirement Communities (CCRCs): Occupancy
in CCRCs is forecast to slide 60 basis points to 89.5 percent in
2010.
The Opportunity and Sustainability – The Vision

The Senior Housing Industry is now in a period of restructuring and
consolidation.

The Senior Housing Industry is still strong in spite of the rest of the
economy and the demographics show it is going to get much stronger.

Senior Housing has offered higher stability in earnings than all other real
estate asset classes during this period of economic turbulence as reported
by industry leaders.

The United States economy is in the largest market correction that the
United States has ever seen.

Investors have been hoarding money; concerned about the unstable
markets. Yet, they are looking for and need a good haven to invest in and
get a great return.

The Senior Housing Industry provides a remarkable and opportunistic
period of time
© Copyright The WellSpring Institute All Rights Reserved
27
Confidential
MARKET ANALYSIS

The Senior Housing market (Independent Living, Assisted Living, and
Memory Care) currently presents an excellent and immediate opportunity
to develop facilities at opportune pricing.

The market sector is highly fragmented with numerous local and regional
owners operating an estimated $194 billion in property value. This is
made up of an estimated 16,000 properties with 1.9 million units currently
operating at approximately 88% occupancy.

The six public companies comprise 8.7% of the industry capacity.

Market demand is expected to grow by at least 20% through 2020,
fueled by the aging population, working adult children, and increasing
acceptance of Senior Housing as an essential part of the aging
process.

Only 5.8% of Senior citizens (65+) currently live in Senior Housing
properties in the nation’s 31 largest MSA’s.

Penetration rates are expected to increase by 7% per annum.

A 7% increase per annum nationally in the number of Seniors is more
than the total of the entire existing supply of professionally managed
Senior Housing beds/units.

Fastest growing age cohort >75, and 50% people over the age of 85 have
Alzheimer's. This age cohort is expected to increase from 18.5 million
people to 22.5 million by 2020 (21.7% increase).

Rapid expansion of the sector over the last nine years has been
achieved by significant new construction (total of 297,900 units); this
has all but stopped.

The sector fundamentals remain solid, and demand will outstrip supply in
the coming years, especially where the need-driven demand continues to
increase.

Historically, the Senior Housing Industry has seen several cycles of
growth fueled by inexpensive capital, lax underwriting standards and
over construction. The last downturn was 1998-2000.

Between 2002 and August 2007 the industry experienced substantial
growth due to an unprecedented amount of equity capital and debt
© Copyright The WellSpring Institute All Rights Reserved
28
Confidential
MARKET ANALYSIS
financing. As a result, cap rates plunged to historical lows of 6-7%
and valuations were at an all time high.

However, this all changed with the collapse of the credit and housing
markets. Since then, occupancy has weakened due to Senior’s inability to
sell their homes and their significant real and/or perceived loss of invested
wealth. While this has had minimal impact of less than 2% on needdriven Assisted Living, Memory Care and Skilled Nursing, it has had
substantial impact on Independent Living sector.

The long term industry outlook is positive. With the lack of new
construction, when the housing market begins to recover, demand
will quickly outweigh supply.

The average price per unit more than doubled from 2003 to 2007 ($79,800
to $164,500).

Cap rates have cycled: 2000 @ 11.2%; 2007/2008 @ 6.5%-8.0%; 2009 @
9.5% -11.5%.

Significant difference in prices between stabilized and non-stabilized
properties:
o
2005: 41.4% higher.
o
2006: 65.8% higher.
o
2007: 62% higher.
o
On average, $55,700 per unit difference over all 3 years.
o
$66,000 difference in 2007.

Development is a solid position to be established in Assisted Living and
Memory Care for the pent up demand and the next wave of Baby
Boomers.

A significant opportunity exists to enhance the reputation of facilities to
provide a higher level of care to a attract residents where the move-in
decision is need-driven – high acuity Assisted Living and age related
memory loss.
Workforce Statistics for Our Ranch SBU’s
The Ranch Operations - Sector 11--Agriculture, Forestry, Fishing and
Hunting
© Copyright The WellSpring Institute All Rights Reserved
29
Confidential
MARKET ANALYSIS
With the exception of our hunting operations, most of the products and
services for this SBU are specifically designed to provide resources for internal
use by the ranch operations. Hay and oats for the livestock. Vegetables, fruits,
berries, herbs, and fish for our restaurants. Using our “Activity Based Accounting
System”, these services and products will be sold internally to the Ranch
operated SBU’s and must demonstrate at least a breakeven position or they will
be outsourced.
Some of these products, like our fruits and berries may be canned or
processed for sale and distribution in regional markets.
WORKFORCE STATISTICS
This section provides information relating to employment and
unemployment in agriculture, forestry, fishing and hunting. While most data are
obtained from employer or establishment surveys, information on industry
unemployment comes from a national survey of households. The following tables
present an overview of the industry including the unemployment rate of those
previously employed in the industry, mass layoffs, data for occupations common
to the industry, and projections of occupational employment change.
Unemployment and Layoffs
Back May Jun. Jul. Aug.
data 2009 2009 2009 2009
Data series
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment benefits
10.0% 12.3% 12.1% 13.1%
27
50
93
22
2,066 3,485 7,519 1,727
(Source: Current Population Survey, Mass Layoff Statistics)
Employment by Occupation
Data series
Agricultural equipment operators
Farm workers and laborers, crop, nursery, and greenhouse
First-line supervisors/managers of farming, fishing, and forestry
workers
Logging equipment operators
Truck drivers, heavy and tractor-trailer
(Source: Occupational Employment Statistics)
© Copyright The WellSpring Institute All Rights Reserved
30
Employment,
2008
15,040
186,030
10,900
22,020
12,080
Confidential
MARKET ANALYSIS
Projections
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for agriculture, forestry, fishing and hunting.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS
Recent hourly and annual earnings for occupations commonly found in
agriculture, forestry, fishing and hunting.
Earnings by Occupation
Data series
Agricultural equipment operators
Farm workers and laborers, crop, nursery, and
greenhouse
First-line supervisors/managers of farming, fishing,
and forestry workers
Logging equipment operators
Truck drivers, heavy and tractor-trailer
Wages, 2008
Hourly
Annual
Median Mean Median Mean
$10.08 $11.15 $20,960 $23,200
$8.51
$8.94 $17,700 $18,600
$17.33 $19.03 $36,050 $39,570
$15.38 $15.87 $32,000 $33,000
$14.72 $15.41 $30,620 $32,050
(Source: Occupational Employment Statistics)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in agriculture, forestry, fishing and hunting. An injury or illness is
considered to be work-related if an event or exposure in the work environment
either caused or contributed to the resulting condition or significantly aggravated
a pre-existing condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
© Copyright The WellSpring Institute All Rights Reserved
31
2005 2006 2007 2008
719 666 589 (P) 661
6.1 6.0 5.4
3.3 3.2 2.8
2.1 1.9 1.8
1.2 1.2 1.0
Confidential
MARKET ANALYSIS
Data series
2005 2006 2007 2008
(P) Preliminary
(Source: Injuries, Illnesses, and Fatalities)
PRICES
This section provides industry-specific pricing information. The import
price index reflects the percentage change in prices paid to foreign producers for
their goods and services within the U.S., while the export price index measures
the percentage change in prices received by U.S. producers for goods and
services sold outside the U.S.
Back May Jun.
Jul.
Aug.
data 2009 2009
2009
2009
134.6 (R) 133.3 (R) 129.0 133.0
Import index
-2.0% (R) -1.0% (R) -3.2% (R) 3.1%
Percent change from previous month
144.5 (R) 151.7 (R) 139.9 140.4
Export index
4.4% (R) 5.0% (R) -7.8% (R) 0.4%
Percent change from previous month
Footnotes
(R) Revised
Data series
(Source: International Price Program)
WORKPLACE TRENDS
This section presents data on the number of establishments in agriculture,
forestry, fishing and hunting.
Establishments
Data series
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
(P) Preliminary
(P) 95,154
(P) 66
(P) 143
(P) 82
(P) 95,112
(P) 67
(P) 143
(P) 82
(P) 95,600
(P) 67
(P) 144
(P) 82
(P) 95,832
(P) 67
(P) 144
(P) 82
(Source: Quarterly Census of Employment and Wage
The Country Store and Western Town Mall - Sector 44-45--Retail
Trade
WORKFORCE STATISTICS
© Copyright The WellSpring Institute All Rights Reserved
32
Confidential
MARKET ANALYSIS
This section provides information relating to employment and
unemployment in retail trade. While most data are obtained from employer or
establishment surveys, information on industry unemployment comes from a
national survey of households. The following tables present an overview of the
industry including the number of jobs, the unemployment rate of those previously
employed in the industry, job openings and labor turnover, union membership
and representation, gross job gains and losses, mass layoffs, data for
occupations common to the industry, and projections of occupational
employment change.
Employment, Unemployment, Layoffs, and Openings, Hires, and
Separations
Data series
Back May
data 2009
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
(seasonally adjusted)
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment
benefits
Job openings, hires, and separations (in
thousands)
Job openings
Hires
Separations
Footnotes
(P) Preliminary
Jun.
2009
Jul.
2009
Aug.
2009
14,811.6 14,791.5 (P) 14,748.3 (P) 14,738.7
12,728.1 12,703.5 (P) 12,660.3 (P) 12,643.2
9.5%
9.6%
9.4%
9.2%
202
155
161
111
18,360 15,318 17,388
320
606
567
293
537
486
10,173
(P) 248
(P) 551
(P) 584
(Source: Current Employment Statistics, Current Population Survey, Mass Layoff
Statistics, Job Openings and Labor Turnover Survey)
Union Membership and Representation
Back
2005 2006 2007 2008
data
Data series
Union membership and representation
Members of unions (percent of wage and salary workers)
Represented by unions (percent of wage and salary
workers)
© Copyright The WellSpring Institute All Rights Reserved
33
5.2% 5.0% 5.3% 5.2%
5.8% 5.3% 5.7% 5.9%
Confidential
MARKET ANALYSIS
(Source: Current Population Survey)
Dynamic Changes in Employment
Data series
1st
Back
quarter
data
2008
Dynamic changes in employment (in
thousands)
Gross job gains
Gross job losses
954
979
2nd
quarter
2008
939
1,080
3rd
quarter
2008
892
1,062
4th
quarter
2008
835
1,181
(Source: Business Employment Dynamics)
Extended Mass Layoffs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
92
202
(P) 382
(P) 163
Extended mass layoff events
20,896
61,492
(P) 90,379 (P) 31,653
Separations
22,712
54,896
(P) 82,415 (P) 32,347
Initial claimants
Footnotes
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Employment,
2008
2,956,140
Cashiers
247,350
Customer service representatives
First-line supervisors/managers of retail sales workers 1,054,190
4,081,720
Retail salespersons
1,278,960
Stock clerks and order fillers
Data series
(Source: Occupational Employment Statistics)
PROJECTIONS
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for retail trade.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS AND HOURS
© Copyright The WellSpring Institute All Rights Reserved
34
Confidential
MARKET ANALYSIS
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees, as well as weekly earnings by union membership
status, are shown. In addition, recent hourly and annual earnings are shown for
occupations commonly found in retail trade. This section also contains
information on the average cost of benefits paid by employers, as well as recent
rates of change in wages and total compensation.
Earnings and Hours of Production Workers
Back May Jun.
Jul.
Aug.
data 2009 2009
2009
2009
$12.97
$12.96
(P)
$12.96
(P)
$13.09
Average hourly earnings
29.9 29.8 (P) 29.8 (P) 29.8
Average weekly hours
Footnotes
(P) Preliminary
Data series
(Source: Current Employment Statistics)
Union Membership and Representation
Data series
Back Median weekly earnings
data 2005 2006 2007 2008
Union membership and representation
Full-time workers
Members of unions
Represented by unions
Nonunion
$515
$590
$585
$513
$520
$583
$582
$518
$538
$608
$601
$532
$564
$598
$596
$561
(Source: Current Population Survey)
Earnings by Occupation
Data series
Cashiers
Customer service representatives
First-line supervisors/managers of retail sales
workers
Retail salespersons
Stock clerks and order fillers
(Source: Occupational Employment Statistics)
© Copyright The WellSpring Institute All Rights Reserved
35
Wages, 2008
Hourly
Annual
Median Mean Median Mean
$8.52 $9.07 $17,720 $18,870
$11.17 $12.23 $23,240 $25,440
$16.84 $19.02 $35,030 $39,560
$9.80
$9.35
$11.96 $20,380 $24,880
$10.13 $19,440 $21,060
Confidential
MARKET ANALYSIS
Employer Compensation Costs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
Data series
12-month percent change
Total compensation
Wages and salaries
2.9%
2.9%
1.9%
1.9%
1.6%
1.8%
1.1%
1.2%
(Source: Compensation Cost Trends)
Data series
Compensation costs
Total compensation
Wages and salaries
Total benefits
Insurance
Retirement
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
16.88
12.72
4.15
1.15
0.35
100.0
75.4
24.6
6.8
2.0
(Source: Compensation Cost Trends)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in retail trade. An injury or illness is considered to be work-related if an
event or exposure in the work environment either caused or contributed to the
resulting condition or significantly aggravated a pre-existing condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
(Source: Injuries, Illnesses, and Fatalities)
© Copyright The WellSpring Institute All Rights Reserved
36
2005 2006 2007 2008
401 359 348 (P) 290
5.0 4.9 4.8
2.6 2.6 2.5
1.5 1.4 1.4
1.2 1.2 1.2
Confidential
MARKET ANALYSIS
PRICES
This section provides industry-specific pricing information. The producer
price index measures the percentage change in prices that domestic producers
receive for goods and services. The prices included in the producer price index
are from the first commercial transaction.
Back
data
Data series
Producer price index
Percent change from previous month
Footnotes
(P) Preliminary
May
Jun.
Jul.
Aug.
2009
2009
2009
2009
(P) 107.3 (P) 108.4 (P) 107.8 (P) 107.2
(P) -0.7% (P) 1.0% (P) -0.6% (P) -0.6%
(Source: Producer Price Indexes)
WORKPLACE TRENDS
This section presents data on the number of establishments and the
number of establishments experiencing job gains or job losses in retail trade.
Also included in this section is information on productivity, presented as the rate
of change in output per hour of workers in the industry.
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Establishments with changes in
employment (in thousands)
With job gains (seasonally
adjusted)
With job losses (seasonally
adjusted)
Footnotes
(P) Preliminary
Back 1st quarter
data
2008
2nd quarter 3rd quarter 4th quarter
2008
2008
2008
(P) 1,052,988
(P) 540
(P) 417
(P) 587
(P) 1,053,274
(P) 544
(P) 417
(P) 587
(P) 1,053,234 (P) 1,054,226
(P) 543
(P) 549
(P) 417
(P) 420
(P) 588
(P) 588
264
257
255
248
296
309
301
320
(Source: Business Employment Dynamics, Quarterly Census of Employment and Wages)
Productivity
Data series
Back
2005
data
© Copyright The WellSpring Institute All Rights Reserved
37
2006
2007
2008
Confidential
MARKET ANALYSIS
Back
2005 2006 2007 2008
data
141.298 146.653 150.686 147.994
Labor productivity index, output per hour
2.5
3.8
2.8
-1.8
Percent change from previous year
103.322 102.858 102.418 100.565
Labor index, total labor hours
1.1
-0.4
-0.4
-1.8
Percent change from previous year
145.992 150.845 154.330 148.830
Output index
3.6
3.3
2.3
-3.6
Percent change from previous year
94.236 93.780 94.667 96.934
Unit labor costs index
0.7
-0.5
0.9
2.4
Percent change from previous year
Data series
(Source: Productivity and Costs)
The Sale of Private Homes and Timeshares - Sector 53--Real Estate
and Rental and Leasing
WORKFORCE STATISTICS
This section provides information relating to employment and
unemployment in real estate and rental and leasing. While most data are
obtained from employer or establishment surveys, information on industry
unemployment comes from a national survey of households. The following tables
present an overview of the industry including the number of jobs, the
unemployment rate of those previously employed in the industry, job openings
and labor turnover, union membership and representation, mass layoffs, data for
occupations common to the industry, and projections of occupational
employment change.
Employment, Unemployment, Layoffs, and Openings, Hires, and
Separations
Data series
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment benefits
Job openings, hires, and separations (in
thousands)
Job openings
© Copyright The WellSpring Institute All Rights Reserved
Back May
data 2009
Jun.
2009
Jul.
2009
2,002.7 1,990.6 (P) 1,988.5
Aug.
2009
(P) 1,980.5
1,584.9 1,611.8 (P) 1,624.8
8.2%
6.5%
14
985
20
12
1,590 819
39
31
38
7.1%
(P) 43
6.3%
7
404
Confidential
MARKET ANALYSIS
Data series
Hires
Separations
Back May Jun.
Jul.
data 2009 2009
2009
72
89
(P) 95
57
59
(P) 96
Aug.
2009
Footnotes
(P) Preliminary
(Source: Current Employment Statistics, Current Population Survey, Mass Layoff
Statistics, Job Openings and Labor Turnover Survey)
Union Membership and Representation
Back
2005 2006 2007 2008
data
Data series
Union membership and representation
Members of unions (percent of wage and salary workers)
Represented by unions (percent of wage and salary
workers)
4.0% 3.3% 3.2% 3.3%
4.6% 3.5% 3.7% 4.0%
(Source: Current Population Survey)
Extended Mass Layoffs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
11
27
(P) 39
(P) 18
Extended mass layoff events
1,458
3,592
(P) 4,325 (P) 3,010
Separations
(R) 1,850 4,061
(P) 4,445 (P) 2,303
Initial claimants
Footnotes
(R) Revised
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Employment,
2008
212,630
Counter and rental clerks
244,910
Maintenance and repair workers, general
Property, real estate, and community association managers 120,340
45,830
Real estate brokers
126,330
Real estate sales agents
Data series
(Source: Occupational Employment Statistics)
© Copyright The WellSpring Institute All Rights Reserved
39
Confidential
MARKET ANALYSIS
PROJECTIONS
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for real estate and rental and leasing.
(Source: Office of Occupational Statistics and Employment Projections)
Earnings and Hours
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees, as well as weekly earnings by union membership
status, are shown. In addition, recent hourly and annual earnings are shown for
occupations commonly found in real estate and rental and leasing. This section
also contains information on the average cost of benefits paid by employers, as
well as recent rates of change in wages and total compensation.
Earnings and Hours of Production Workers
Back Apr. May Jun.
Jul.
data 2009 2009 2009
2009
$16.75 $16.73 $16.61 (P) $16.50
Average hourly earnings
32.8 32.7 33.0 (P) 33.1
Average weekly hours
Footnotes
(P) Preliminary
Data series
(Source: Current Employment Statistics)
Union Membership and Representation
Data series
Back Median weekly earnings
data 2005 2006 2007 2008
Union membership and representation
Full-time workers
Members of unions
Represented by unions
Nonunion
$653
$711
$696
$649
$663
$701
$700
$660
$691
$739
$718
$690
$703
$789
$783
$696
(Source: Current Population Survey)
Earnings by Occupation
Wages, 2008
Hourly
Annual
Median Mean Median Mean
$10.12 $11.30 $21,050 $23,500
$14.17 $14.96 $29,470 $31,120
Data series
Counter and rental clerks
Maintenance and repair workers, general
© Copyright The WellSpring Institute All Rights Reserved
40
Confidential
MARKET ANALYSIS
Wages, 2008
Hourly
Annual
Median Mean Median Mean
Data series
Property, real estate, and community association
managers
Real estate brokers
Real estate sales agents
$20.24 $24.78 $42,100 $51,540
$27.62 $37.20 $57,440 $77,370
$18.16 $25.11 $37,770 $52,230
(Source: Occupational Employment Statistics)
Employer Compensation Costs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
Data series
12-month percent change
Total compensation
Wages and salaries
2.2%
1.6%
2.8%
2.5%
1.0%
1.1%
1.1%
1.1%
(Source: Compensation Cost Trends)
Data series
Compensation costs
Total compensation
Wages and salaries
Total benefits
Insurance
Retirement
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
24.81
17.91
6.90
1.87
0.58
100.0
72.2
27.8
7.5
2.3
(Source: Compensation Cost Trends)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in real estate and rental and leasing. An injury or illness is considered to
be work-related if an event or exposure in the work environment either caused or
contributed to the resulting condition or significantly aggravated a pre-existing
condition.
Data series
Fatalities
© Copyright The WellSpring Institute All Rights Reserved
2005 2006 2007
41
2008
Confidential
MARKET ANALYSIS
Data series
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
2005 2006 2007 2008
59 83 73 (P) 81
3.7 3.3 2.9
2.1 1.8 1.6
1.3 1.1 1.0
0.7 0.7 0.5
(Source: Injuries, Illnesses, and Fatalities)
WORKPLACE TRENDS
This section presents data on the number of establishments in real estate
and rental and leasing.
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
(P) Preliminary
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) 373,762 (P) 373,019
(P) 1,693 (P) 1,687
(P) 34
(P) 34
(P) 6
(P) 6
(P) 372,271
(P) 1,688
(P) 33
(P) 6
(P) 372,266
(P) 1,691
(P) 33
(P) 6
(Source: Quarterly Census of Employment and Wages)
The Training and Conference Center - 611430 Professional And
Management Development Training
WORKFORCE STATISTICS
This section provides information relating to employment and
unemployment in professional, scientific, and technical services. While most data
are obtained from employer or establishment surveys, information on industry
unemployment comes from a national survey of households. The following tables
present an overview of the industry including the number of jobs, the
unemployment rate of those previously employed in the industry, union
membership and representation, mass layoffs, data for occupations common to
the industry, and projections of occupational employment change.
© Copyright The WellSpring Institute All Rights Reserved
42
Confidential
MARKET ANALYSIS
Employment, Unemployment, and Layoffs
Back May
data 2009
Data series
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment
benefits
Footnotes
(P) Preliminary
Jun.
2009
Jul.
2009
7,652.4 7,615.6 (P) 7,606.6
Aug.
2009
(P) 7,595.3
5,993.1 6,003.8 (P) 6,019.8
6.8%
7.5%
7.6%
8.1%
83
53
95
32
7,030 4,503 10,555
2,302
(Source: Current Employment Statistics, Current Population Survey, Mass Layoff
Statistics)
Union Membership and Representation
Back
2005 2006 2007 2008
data
Data series
Union membership and representation
Members of unions (percent of wage and salary workers)
Represented by unions (percent of wage and salary
workers)
1.5% 1.4% 1.4% 1.3%
1.9% 1.8% 2.1% 1.8%
(Source: Current Population Survey)
Extended Mass Layoffs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
50
88
(P) 154
(P) 122
Extended mass layoff events
8,877
12,803
(P) 21,862 (P) 30,884
Separations
9,442
13,909
(P) 24,142 (P) 21,546
Initial claimants
Footnotes
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Data series
Employment,
2008
© Copyright The WellSpring Institute All Rights Reserved
43
Confidential
MARKET ANALYSIS
Employment,
2008
Accountants and auditors 366,990
Architectural and civil drafters 94,020
372,100
Lawyers
210,420
Management analysts
Market research analysts 69,210
Data series
(Source: Occupational Employment Statistics)
Projections
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for professional, scientific, and technical services.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS AND HOURS
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees, as well as weekly earnings by union membership
status, are shown. In addition, recent hourly and annual earnings are shown for
occupations commonly found in professional, scientific, and technical services.
This section also contains information on the average cost of benefits paid by
employers, as well as recent rates of change in wages and total compensation.
Earnings and Hours of Production Workers
Back Apr. May Jun.
Jul.
data 2009 2009 2009
2009
$28.55 $28.82 $28.82 (P) $28.95
Average hourly earnings
35.5 35.4 35.5 (P) 35.3
Average weekly hours
Footnotes
(P) Preliminary
Data series
(Source: Current Employment Statistics)
Union Membership and Representation
Data series
Back Median weekly earnings
data 2005 2006 2007 2008
Union membership and representation
Full-time workers
Members of unions
Represented by unions
© Copyright The WellSpring Institute All Rights Reserved
$961 $996 $1,031 $1,065
$770 $940 $991 $1,129
$858 $966 $1,041 $1,140
44
Confidential
MARKET ANALYSIS
Back Median weekly earnings
data 2005 2006 2007 2008
$963 $996 $1,031 $1,064
Data series
Nonunion
(Source: Current Population Survey)
Earnings by Occupation
Wages, 2008
Data series
Hourly
Annual
Median Mean Median Mean
Accountants and auditors $29.75 $34.49 $61,880 $71,730
Architectural and civil drafters $21.34 $22.22 $44,390 $46,230
$56.16 $63.37 $116,820 $131,810
Lawyers
$39.08 $45.24 $81,290 $94,100
Management analysts
Market research analysts $29.03 $32.39 $60,390 $67,360
(Source: Occupational Employment Statistics)
Employer Compensation Costs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
Data series
12-month percent change
Total compensation
Wages and salaries
4.1%
4.4%
4.4%
4.8%
2.9%
3.2%
2.0%
2.1%
(Source: Compensation Cost Trends)
Data series
Compensation costs
Total compensation
Wages and salaries
Total benefits
Insurance
Retirement
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
44.66
31.94
12.72
2.74
1.35
100.0
71.5
28.5
6.1
3.0
(Source: Compensation Cost Trends)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in professional, scientific, and technical services. An injury or illness is
© Copyright The WellSpring Institute All Rights Reserved
45
Confidential
MARKET ANALYSIS
considered to be work-related if an event or exposure in the work environment
either caused or contributed to the resulting condition or significantly aggravated
a pre-existing condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
2005 2006 2007
84
85
78
2008
(P) 68
1.4 1.2 1.3
0.6 0.5 0.5
0.4 0.3 0.3
0.2 0.2 0.2
(Source: Injuries, Illnesses, and Fatalities)
WORKPLACE TRENDS
This section presents data on the number of establishments in
professional, scientific, and technical services.
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
(P) Preliminary
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) 988,567 (P) 997,973
(P) 871
(P) 879
(P) 386
(P) 398
(P) 1,493 (P) 1,494
(P) 1,005,190 (P) 1,014,636
(P) 883
(P) 887
(P) 394
(P) 382
(P) 1,497
(P) 1,496
(Source: Quarterly Census of Employment and Wages)
Hunting Lodge, Bunk Houses, Hotel And Food Services - Sector
72. 721--Accommodation and Food Services
WORKFORCE STATISTICS
This section provides information relating to employment and
unemployment in accommodation and food services. While most data are
obtained from employer or establishment surveys, information on industry
unemployment comes from a national survey of households. The following tables
present an overview of the industry including the number of jobs, the
© Copyright The WellSpring Institute All Rights Reserved
46
Confidential
MARKET ANALYSIS
unemployment rate of those previously employed in the industry, job openings
and labor turnover, union membership and representation, mass layoffs, data for
occupations common to the industry, and projections of occupational
employment change.
Employment, Unemployment, Layoffs, and Openings, Hires, and
Separations
Back May
data 2009
Data series
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment
benefits
Job openings, hires, and separations (in
thousands)
Job openings
Hires
Separations
Footnotes
(P) Preliminary
Jun.
2009
Jul.
2009
Aug.
2009
11,293.6 11,290.0 (P) 11,281.1 (P) 11,270.0
10,171.6 10,341.9 (P) 10,376.4
12.1%
12.3%
11.6%
12.6%
189
136
124
74
21,484 18,499 9,651
262
719
543
250
693
603
6,034
(P) 275
(P) 635
(P) 659
(Source: Current Employment Statistics, Current Population Survey, Mass Layoff
Statistics, Job Openings and Labor Turnover Survey)
Union Membership and Representation
Back
2005 2006 2007 2008
data
Data series
Union membership and representation
Members of unions (percent of wage and salary workers)
Represented by unions (percent of wage and salary
workers)
2.4% 2.4% 2.0% 2.5%
2.8% 2.8% 2.4% 2.8%
(Source: Current Population Survey)
Extended Mass Layoffs
Data series
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
© Copyright The WellSpring Institute All Rights Reserved
47
Confidential
MARKET ANALYSIS
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
84
153
(P) 158
(P) 215
Extended mass layoff events
20,187
33,908
(P) 29,854 (P) 55,013
Separations
15,859
34,368
(P) 32,421 (P) 45,338
Initial claimants
Footnotes
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Employment,
2008
Combined food preparation and serving workers, including fast food 2,226,150
531,720
Cooks, fast food
849,300
Cooks, restaurant
219,880
Hotel, motel, and resort desk clerks
2,189,330
Waiters and waitresses
Data series
(Source: Occupational Employment Statistics)
PROJECTIONS
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for accommodation and food services.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS AND HOURS
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees, as well as weekly earnings by union membership
status, are shown. In addition, recent hourly and annual earnings are shown for
occupations commonly found in accommodation and food services. This section
also contains information on the average cost of benefits paid by employers, as
well as recent rates of change in wages and total compensation.
Earnings and Hours of Production Workers
Back Apr. May Jun.
Jul.
data 2009 2009 2009
2009
$10.34 $10.34 $10.37 (P) $10.36
Average hourly earnings
24.7 24.9 25.2 (P) 25.4
Average weekly hours
Footnotes
(P) Preliminary
Data series
© Copyright The WellSpring Institute All Rights Reserved
48
Confidential
MARKET ANALYSIS
(Source: Current Employment Statistics)
Union Membership and Representation
Back Median weekly earnings
data 2005 2006 2007 2008
Data series
Union membership and representation
Full-time workers
Members of unions
Represented by unions
Nonunion
$388
$487
$486
$384
$399
$515
$515
$395
$413
$534
$528
$410
$435
$563
$552
$427
(Source: Current Population Survey)
Earnings by Occupation
Wages, 2008
Hourly
Annual
Median Mean Median Mean
Data series
Combined food preparation and serving workers,
including fast food
Cooks, fast food
Cooks, restaurant
Hotel, motel, and resort desk clerks
Waiters and waitresses
$7.76
$8.09 $16,130 $16,820
$8.10
$10.53
$9.34
$8.00
$8.44 $16,850 $17,550
$10.88 $21,890 $22,640
$9.88 $19,420 $20,550
$9.38 $16,640 $19,500
(Source: Occupational Employment Statistics)
Employer Compensation Costs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
Data series
12-month percent change
Total compensation
Wages and salaries
3.1%
3.2%
3.2%
3.5%
3.2%
3.4%
2.4%
2.5%
(Source: Compensation Cost Trends)
Data series
Compensation costs
Total compensation
Wages and salaries
Total benefits
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
11.18
8.85
2.33
© Copyright The WellSpring Institute All Rights Reserved
100.0
79.2
20.8
49
Confidential
Data series
Insurance
Retirement
MARKET ANALYSIS
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
0.59
5.3
0.09
0.8
(Source: Compensation Cost Trends)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in accommodation and food services. An injury or illness is considered to
be work-related if an event or exposure in the work environment either caused or
contributed to the resulting condition or significantly aggravated a pre-existing
condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
2005 2006 2007 2008
138 185 165 (P) 146
4.5 4.5 4.4
1.7 1.7 1.6
1.0 1.1 1.0
0.6 0.6 0.6
(Source: Injuries, Illnesses, and Fatalities)
WORKPLACE TRENDS
This section presents data on the number of establishments in
accommodation and food services.
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) 605,556 (P) 609,024
(P) 670
(P) 676
(P) 16
(P) 17
(P) 283
(P) 283
© Copyright The WellSpring Institute All Rights Reserved
50
(P) 612,340
(P) 680
(P) 17
(P) 282
(P) 615,505
(P) 678
(P) 17
(P) 282
Confidential
MARKET ANALYSIS
Data series
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) Preliminary
(Source: Quarterly Census of Employment and Wages)
Golf Course, Tennis Operations, Sports Center and Other
Recreation Services - Sector 71--Arts, Entertainment, and Recreation
WORKFORCE STATISTICS
This section provides information relating to employment and
unemployment in arts, entertainment, and recreation. While most data are
obtained from employer or establishment surveys, information on industry
unemployment comes from a national survey of households. The following tables
present an overview of the industry including the number of jobs, the
unemployment rate of those previously employed in the industry, job openings
and labor turnover, union membership and representation, mass layoffs, data for
occupations common to the industry, and projections of occupational
employment change.
Employment, Unemployment, Layoffs, and Openings, Hires, and
Separations
Data series
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
Unemployment
Unemployment rate
Layoffs
Mass layoff events
Initial claimants for unemployment benefits
Job openings, hires, and separations (in
thousands)
Job openings
Hires
Separations
Footnotes
(P) Preliminary
Back May
data 2009
Jun.
2009
Jul.
2009
Aug.
2009
1,901.8 1,885.5 (P) 1,895.8 (P) 1,886.4
1,707.1 1,849.5 (P) 1,917.2
11.0% 11.1% 9.7%
9.7%
37
45
38
2,676 2,671 2,611
19
1,403
25
130
63
17
171
92
(P) 29
(P) 98
(P) 77
(Source: Current Employment Statistics, Current Population Survey, Mass Layoff
Statistics, Job Openings and Labor Turnover Survey)
© Copyright The WellSpring Institute All Rights Reserved
51
Confidential
MARKET ANALYSIS
Union Membership and Representation
Back
2005 2006 2007 2008
data
Data series
Union membership and representation
Members of unions (percent of wage and salary workers)
Represented by unions (percent of wage and salary
workers)
6.3% 6.3% 6.2% 6.4%
7.2% 7.1% 7.0% 7.3%
(Source: Current Population Survey)
Extended Mass Layoffs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
39
63
(P) 45
(P) 76
Extended mass layoff events
11,762
14,609
(P) 7,147 (P) 16,402
Separations
5,722
8,696
(P) 7,183 (P) 8,766
Initial claimants
Footnotes
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Employment,
2008
19,260
Actors
Amusement and recreation attendants 166,720
Fitness trainers and aerobics instructors 157,470
6,110
Gaming supervisors
33,480
Musicians and singers
Data series
(Source: Occupational Employment Statistics)
PROJECTIONS
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for arts, entertainment, and recreation.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS AND HOURS
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees, as well as weekly earnings by union membership
© Copyright The WellSpring Institute All Rights Reserved
52
Confidential
MARKET ANALYSIS
status, are shown. In addition, recent hourly and annual earnings are shown for
occupations commonly found in arts, entertainment, and recreation.
Earnings and Hours of Production Workers
Back Apr. May Jun.
Jul.
data 2009 2009 2009
2009
$15.20 $15.05 $14.48 (P) $14.23
Average hourly earnings
23.9 23.6 24.0 (P) 24.6
Average weekly hours
Footnotes
(P) Preliminary
Data series
(Source: Current Employment Statistics)
Union Membership and Representation
Data series
Back Median weekly earnings
data 2005 2006 2007 2008
Union membership and representation
Full-time workers
Members of unions
Represented by unions
Nonunion
$521
$652
$618
$515
$545
$617
$604
$537
$587
$633
$634
$581
$590
$651
$638
$586
(Source: Current Population Survey)
Earnings by Occupation
Wages, 2008
Hourly
Annual
Median
Mean
Median
Mean
$15.58
$25.97 (1) $(1) $Actors
$8.79
$17,050
$18,280
Amusement and recreation attendants $8.20
Fitness trainers and aerobics
$14.69
$17.06 $30,560
$35,490
instructors
$21.69
$22.57 $45,110
$46,940
Gaming supervisors
$23.48
$30.97 (1) $(1) $Musicians and singers
Footnotes
(1) Wages for some occupations that do not generally work year-round, full time, are
reported either as hourly wages or annual salaries depending on how they are typically
paid.
Data series
(Source: Occupational Employment Statistics)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
© Copyright The WellSpring Institute All Rights Reserved
53
Confidential
MARKET ANALYSIS
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in arts, entertainment, and recreation. An injury or illness is considered
to be work-related if an event or exposure in the work environment either caused
or contributed to the resulting condition or significantly aggravated a pre-existing
condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
2005 2006 2007 2008
92
87
106 (P) 99
6.1 5.3 5.3
2.9 2.5 2.5
1.6 1.3 1.4
1.4 1.2 1.1
(Source: Injuries, Illnesses, and Fatalities)
WORKPLACE TRENDS
This section presents data on the number of establishments in arts,
entertainment, and recreation.
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
(P) Preliminary
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) 124,288 (P) 125,192
(P) 3,669 (P) 3,698
(P) 876
(P) 883
(P) 932
(P) 942
(P) 125,992
(P) 3,706
(P) 875
(P) 947
(P) 126,700
(P) 3,708
(P) 866
(P) 950
(Source: Quarterly Census of Employment and Wages)
Elder Care Center - Community Care Facilities for the Elderly: NAICS Code
6232
WORKFORCE STATISTICS
This section provides information relating to employment in nursing and
residential care facilities. These data are obtained from employer or
© Copyright The WellSpring Institute All Rights Reserved
54
Confidential
MARKET ANALYSIS
establishment surveys. The following tables present an overview of the industry
including the number of jobs, mass layoffs, data for occupations common to the
industry, and projections of occupational employment change.
Employment and Layoffs
Data series
Employment (in thousands)
Employment, all employees (seasonally
adjusted)
Employment, nonsupervisory workers
Layoffs
Mass layoff events
Initial claimants for unemployment
benefits
Footnotes
(P) Preliminary
Back May
data 2009
Jun.
2009
Jul.
2009
3,049.1 3,056.3 (P) 3,063.0
Aug.
2009
(P) 3,073.3
2,716.6 2,728.3 (P) 2,737.0
4
7
11
6
277
375
658
421
(Source: Current Employment Statistics, Mass Layoff Statistics)
Extended Mass Layoffs
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
9
6
(P) 7
(P) 3
Extended mass layoff events
1,116
688
(P) 874
(P) 204
Separations
922
412
(P) 721
(P) 240
Initial claimants
Footnotes
(P) Preliminary
Data series
(Source: Mass Layoff Statistics)
Employment by Occupation
Employment,
2008
388,170
Home health aides
256,050
Licensed practical and licensed vocational nurses
32,350
Medical and health services managers
775,510
Nursing aides, orderlies, and attendants
162,190
Registered nurses
Note: These employment estimates include employment in both the private-sector and
government.
Data series
(Source: Occupational Employment Statistics)
© Copyright The WellSpring Institute All Rights Reserved
55
Confidential
MARKET ANALYSIS
PROJECTIONS
For projected (future) employment estimates, see the National
Employment Matrix, which includes employment estimates by industry and
occupation for nursing and residential care facilities.
(Source: Office of Occupational Statistics and Employment Projections)
EARNINGS AND HOURS
This section presents data on employee earnings and weekly hours. The
latest industry averages of hourly earnings and weekly hours for production or
nonsupervisory employees are shown. In addition, recent hourly and annual
earnings are shown for occupations commonly found in nursing and residential
care facilities. This section also contains information on the average cost of
benefits paid by employers, as well as recent rates of change in wages and total
compensation.
Earnings and Hours of Production Workers
Back Apr. May Jun.
Jul.
data 2009 2009 2009
2009
$14.06 $13.97 $14.02 (P) $14.07
Average hourly earnings
31.6 31.5 31.6 (P) 32.0
Average weekly hours
Footnotes
(P) Preliminary
Data series
(Source: Current Employment Statistics)
Earnings by Occupation
Wages, 2008
Data series
Hourly
Annual
Median Mean Median Mean
$9.81 $10.16 $20,410 $21,130
Home health aides
Licensed practical and licensed vocational nurses $19.44 $19.94 $40,440 $41,470
$32.13 $34.75 $66,830 $72,270
Medical and health services managers
$11.07 $11.31 $23,030 $23,520
Nursing aides, orderlies, and attendants
$27.20 $27.82 $56,570 $57,870
Registered nurses
(Source: Occupational Employment Statistics)
Employer Compensation Costs
Data series
12-month percent change
Total compensation
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
3.0%
© Copyright The WellSpring Institute All Rights Reserved
2.9%
56
2.6%
2.2%
Confidential
MARKET ANALYSIS
Data series
Wages and salaries
Back 3rd quarter 4th quarter 1st quarter 2nd quarter
data
2008
2008
2009
2009
2.9%
3.0%
2.7%
2.3%
(Source: Compensation Cost Trends)
Data series
Compensation costs
Total compensation
Wages and salaries
Total benefits
Insurance
Retirement
2nd quarter 2009
Back
Compensation component
data
Percent of total compensation
($ per hour worked)
19.81
14.43
5.37
1.48
0.29
100.0
72.9
27.1
7.5
1.5
(Source: Compensation Cost Trends)
WORK-RELATED FATALITIES, INJURIES, AND ILLNESSES
This section presents data for the industry on the number of workplace
fatalities and the rates of workplace injuries and illnesses per 100 full-time
workers in nursing and residential care facilities. An injury or illness is considered
to be work-related if an event or exposure in the work environment either caused
or contributed to the resulting condition or significantly aggravated a pre-existing
condition.
Data series
Fatalities
Number of fatalities
Rate of injury and illness cases per 100 full-time workers
Total recordable cases
Cases involving days away from work, job restriction, or
transfer
Cases involving days away from work
Cases involving days of job transfer or restriction
Footnotes
(P) Preliminary
2005 2006 2007
15
23
21
2008
(P) 20
9.1 8.9 8.8
5.7 5.4 5.2
2.9 2.6 2.6
2.8 2.7 2.6
(Source: Injuries, Illnesses, and Fatalities)
WORKPLACE TRENDS
This section presents data on the number of establishments in nursing
and residential care facilities.
© Copyright The WellSpring Institute All Rights Reserved
57
Confidential
MARKET ANALYSIS
Establishments
Data series
Number of establishments
Private industry
Local government
State government
Federal government
Footnotes
(P) Preliminary
Back 1st quarter 2nd quarter 3rd quarter 4th quarter
data
2008
2008
2008
2008
(P) 67,565
(P) 802
(P) 999
(P) 9
(P) 67,835
(P) 803
(P) 992
(P) 9
(P) 68,165
(P) 802
(P) 1,010
(P) 9
(P) 68,425
(P) 799
(P) 1,015
(P) 9
(Source: Quarterly Census of Employment and Wages
Area Overview
Community of Moab - The Moab area lies in the heart of the Colorado
Plateau, which, because of its pristine environment and magnificent scenery, has
long been thought a national treasure. The area is a geological wonder.
Moab, the only Utah community located on the Colorado River, is nestled
in a valley with scenic red rock cliffs on both sides. Moab is surrounded by an
extremely rugged and beautiful desert terrain. The La Sal Mountains, just 18
miles to the east, reach elevations of over 12,000 feet. Mt. Peale, at nearly
13,000 feet, is the third-highest peak in Utah. Meadows, lakes and streams
abound in the pine, spruce, fir and aspen forests. The lush mountain valleys and
alpine beauty provide striking contrast to the panoramic view of the deserts and
canyons below. This varied topography offers excellent and practically unlimited
recreational opportunities throughout the year.
© Copyright The WellSpring Institute All Rights Reserved
58
Confidential
MARKET ANALYSIS
Some folks are discovering that a recreation destination can also make a
wonderful site for business and industry. Today's high-tech communications have
made it possible for literally hundreds of companies to operate in this refreshing
country environment. Moab's unique setting is guaranteed to foster creative
inspiration and intellectual productivity.
The community of Moab offers a wholesome way of life with very little
crime and plenty of activities for all ages, especially if you enjoy the outdoors.
Moab's trend toward arts and culture, coupled with the magnificent
scenery and recreational opportunities, creates an irresistible atmosphere for
retirement.
Activities - The Moab community offers
over 30 motels, numerous camping areas,
many bed and breakfast establishments, and
apartment type lodging. There are also over 40
restaurants, camping supplies, sport outfitters,
tour guides, and plenty of gift shopping
available.
Arts and Entertainment - The beauty and tranquility of the area inspire
creativity and the area is home to artists of all kinds. Visitors and residents
alike enjoy theater productions, a variety of galleries, concerts, and arts and
music festivals. Other events include vintage car shows, rodeos and horse
events, volleyball and fast pitch softball tournaments, marathons, parades,
archery and shooting meets, mountain bike races, the Annual Fat Tire
Mountain Bike Festival, and the Annual East Jeep Safari and the annual
Classic Car Show. Moab has a spectacular 18-hole golf course as well as
tennis courts, bowling, a movie theater, and a water park, amusement center.
Climate - Because of its moderate climate, Moab
has become a popular year-round playground. Moab has
a short, mild winter and a long, moderate spring. Spring
and fall are the most pleasant times of the year. Average
Annual Temperatures:
Highs and Lows:
January 39°F 18°F
April 79°F 41°F
July 99°F 64°F
October 74°F 41°F
Average Annual Precipitation: 9.09 inches
© Copyright The WellSpring Institute All Rights Reserved
59
Confidential
MARKET ANALYSIS
Elevation - City of Moab 4,025 ft. above sea level; The Ranch
Mountain location in the LaSalle Mountain Range; 9,000-12000 feet above
sea level and The Ranch Desert Location around 3,000 feet above sea level.
Bus Service from Green River - Greyhound, 800-231-2222, 525 E.
Main Street, Green River;
Railroad: AMTRAK (from Green River depot) 800-872-7245, 250 S.
Broadway, Green River;
Air: Great Lakes Airlines (1-800-554-5111 or 307-433-2899) offers
daily scheduled service from the Moab Canyon lands Airport (located 16
miles from downtown Moab) to Denver, Colorado. Thrifty Car Rental (435259-7317; 800-THRIFTY) provides service from the Moab Canyon lands
Airport.
Additional passenger and air freight service is offered at the airport,
Walker Field, located in Grand Junction, Colorado, 120 miles northeast of
Moab. The airport has several major airlines and commuter services,
including SkyWest Airlines (Delta interconnect), United Express, and America
West Airlines.
Access Highways: U.S. I-70; U.S. Highway 191, Utah Scenic Byway
128
National Park
Visitation - Having two
national parks easy driving
distance from Moab
provides visitors
outstanding recreational
opportunities. The number
of visitors to Arches
National Park (4 miles from
downtown Moab) from
January through October,
2006 was 791,412, up
6.3% during the same period for 2005. The number of visitors to Canyon lands
National Park from January through October, 2006 was 373,397, down .6%
during the same period for 2005.
Mileages to Recreation Areas
Colorado River
2
Arches National Park - UT
4
Dead Horse Point State Park - UT
33
Canyon lands Nat'l Park (Islands in the Sky District) - UT 45
© Copyright The WellSpring Institute All Rights Reserved
60
Confidential
MARKET ANALYSIS
Canyon lands Nat'l Park (Needles District) - UT
La Sal National Forest - UT
Bryce Canyon National Park - UT
Capitol Reef National Park - UT
Goblin Valley National Monument - UT
Lake Powell (Hite Marina) - UT
Natural Bridges National Monument - UT
Zion National Park - UT
Monument Valley - AZ
Hovenweep National Monument - CO
Mesa Verde National Park - CO
68
18
275
145
82
162
70
289
150
85
150
Over 90 percent of Grand County is "public land" administered by the
Bureau of Land Management, the U.S. Forest Service, the State of Utah, and the
National Park Service. These lands have diverse uses, including recreation,
woodland products, wildlife management, livestock grazing, and mineral
resources. Different recreational activities are permitted in these areas,
depending on which government agency administers the land.
Many of these public areas may be reached with a standard automobile.
Paved roads provide access to much of the "front country." Trailheads, visitor
centers, overlooks and other sights are generally easily accessible.
Off-highway Vehicles (OHV) - Any OHV being operated or transported on
public lands, roads or trails in the state of Utah must display a current OHV
registration sticker. Dual sport off-highway motorcycles may be registered as
street legal vehicles if they possess the proper safety equipment, have passed a
state safety inspection, and carry the proper insurance, or they may be registered
as off-highway vehicles.
Business and Economic Development - The Moab Area Economic
Development Committee has adopted the following Economic Development
Goals:
1. We will work with entrepreneurs and small businesses to increase longterm employment opportunities. We will pursue providing more business
counseling and education, easier access to capital, and more employee
training programs. We will also work to provide new and expanding
businesses with incentives, improved physical infrastructure and
streamlined rules and regulations to permit businesses to grow.
2. We will work with businesses on the facilitation of infrastructure needed to
grow through the development of public projects, health care, airport
service, adequate housing, and transportation planning.
3. We will support the development of natural resources and the protection of
resources important to the ongoing health of tourist businesses. This
© Copyright The WellSpring Institute All Rights Reserved
61
Confidential
4.
5.
6.
7.
8.
9.
MARKET ANALYSIS
includes working with energy exploration companies to provide employee
training resources.
We will work to protect and enhance the scenic assets and quality
community life of Grand County. This includes community clean-up
campaigns, downtown improvements and efforts to promote the
preservation of agricultural land use.
We will work to help local residents develop new job skills and career
opportunities, which in turn will attract business investment.
We will work to improve local higher education, both to provide
educational options for local residents and to develop destination-oriented
higher education programs.
We will work to enhance tourism-related economic development, including
efforts to expand convention and conference activities and film and video
projects.
Goal 8. We will work to expand and promote cultural and recreational
activities.
We will work to better inform local elected officials, local businesses, and
local residents of economic development activities, trends, and
opportunities, and we will present for approval to Grand County and Moab
City an annual work plan.
Demographics: Population, Education Level, Income & Labor
Force
Moab Population 4,825
Castle Valley 354
La Sal approx 400
Thompson Springs 52
Grand County Population 8,826 (2005), 2.5% increase over 2004
Population by
Race
2000 Census
Under 18
26.9%
White
92.6%
65 Years & Over
12.5%
Black
0.2%
Median Age
36.9
American
Indian
3.9%
Persons per Household
2.44
Asian
0.2%
Persons per Family
3.06
Pacific
Islanders
0.1%
Female-Headed Families
10.7%
Other
3.0%
High School Graduates
82.5%
Hispanic/All
Races
5.6%
© Copyright The WellSpring Institute All Rights Reserved
62
Confidential
College Graduates
MARKET ANALYSIS
22.9%
Income
Labor Force
$39,095
Female
Participation
64.2%
Per Capita Income (2003) $20,634
Male
Participation
73.5%
Average Monthly Wage
(2005)
Self Employed 12.9%
Median Family Income
$ 1,964
Median Earnings
Male, full-time, yearend
$31,000
Female, full-time,
yearend
$21,769
2004 and 2005 Preliminary 6 month Jan - June Averages
2005 Preliminary 2004
Civilian Labor Force
4,332
4,632
Employed
3,950
4,623
Unemployed
382
399
Percent of Labor Force
8.8
8.6
Total Nonagricultural Jobs
4,212
4,033
Goods Production
412
354
Mining
87
77
Construction
269
227
Manufacturing
57
50
Service Production
3,799
3,678
Trade, Transportation, & Utilities
790
777
Wholesale Trade
66
65
Retail Trade
634
621
Transportation & Warehousing
63
64
Utilities
28
28
Information
45
46
© Copyright The WellSpring Institute All Rights Reserved
63
Confidential
MARKET ANALYSIS
Financial Activities
202
166
Finance & Insurance
70
60
Real Estate & Renting & Leasing
132
107
Professional & Business Services
203
186
Education & Health Services
308
247
Leisure & Hospitality
1,342
1,388
Other
69
71
Government
842
849
Education: Grand County School District, Moab Community School Charter School
Private Schools: DayStar Seventh Day Adventist Academy, located in
Castle Valley, enrolls 50 students in grades 9 through 12.
Utah State University: The Moab branch of Utah State University, a
four-year university, offers opportunities to complete Associate, Bachelor, and
Master degrees. Out-of-state extension students pay in-state resident tuition
while attending USU in Moab.
Employment - Grand County's Largest Employers











Allen Memorial Hospital
Grand County School District
National Park Service
Quinstar
Bureau of Land Management
City Market, Inc.
Moab Brewery
City of Moab
State of Utah
Zax Wood Fired Pizza
Grand County Non-Agricultural Employment
Government - City of Moab, Grand County, San Juan County
Corporate Tax - Corporations with a tax liability of $3,000 or more in
the current tax year, or with a tax liability of $3,000 or more in the previous tax
year, must make estimated tax payments. Contact Taxpayer Services 801297-7705.
© Copyright The WellSpring Institute All Rights Reserved
64
Confidential
MARKET ANALYSIS
Sales & Use Tax - The combined Utah and City of Moab tax is 7.75
percent on retail sales, 8.75 percent on restaurant food and beverage sales,
12.25 percent on overnight accommodations, and 10.75 percent on car
rentals.
Purchases of certain equipment by manufacturing companies may be
exempt. Also exempt are purchases of approved water and air pollution
equipment. At the end of June, 2006, collection of sales tax for Grand County
increased 13% and 11% for the City of Moab compared to the same time
frame in 2005. Transient room tax collections (rent of rooms in hotels, motels,
inns, trailer courts, campgrounds, and similar accommodations for stays of
less than 30 consecutive days) were up 12 percent for the City of Moab at the
end of June, 2006 compared to the same time frame in 2005.
Property Tax - The Grand County Assessors Office, located in the
County Courthouse, 125 E. Center Street, determines market value every five
years, or when the property is sold. A primary residence is taxed at 45% of
market value in Grand County and San Juan County. A second home, or
nightly rental is taxed at 100% of market value, unless the renter is a primary
resident. Mobile homes not on a foundation are considered personal property,
and will be assessed as such. Property taxes are due November 30th of each
year; when a property is purchased, the title company will pro-rate the amount
due, with the buyer only paying the portion of taxes starting after their closing
date.
Health Care - Allen Memorial Hospital - For more than 50 years,
AMH has served the Moab community. Currently AMH has 14 Board Certified
physicians here in Moab and 6 specialists who visit from urban medical
facilities on a regular basis. The existing facility has 2 birthing suites, 14 longterm care beds and a full compliment of wellness services and medical
treatment options. AMH, currently housed in an older building, is planning a
new facility, the Moab Regional Medical Center. The medical staff offers the
following services:
 Anesthesiology (Pain Management, Acupuncture)
 Cardio-Pulmonary Services
 Emergency and Critical Care Services
 Family Practice
 General Surgery
 Obstetrics and Gynecology
 Ophthalmology
 Orthopedic Surgery
 Podiatry Consult/Services
 Radiology and Pathology
Health Department of Southeastern Utah - 471 S. Main Street, Moab
UT 84532; 435-259-5602 or 435-259-8448
© Copyright The WellSpring Institute All Rights Reserved
65
Confidential
MARKET ANALYSIS
Four Corners Mental Health - 198 E. Center Street, Moab UT 84532;
435-259-6131
Real Estate and Housing - The average price of homes and condos
continues to increase. The third quarter 2006 average price of homes was
$181,653, and $268,392 for condos, increases over third quarter 2005
average sales prices for homes by 16.32% and for condos by 18.56%.
Total home sales in Grand and San Juan Counties in 2005 were 206,
an increase of 24% over 2004. The average sale price for 2005 was $160,041
for a home, (an increase of 13.65% over 2004), and $210,841 for a
condominium, (an increase of 10.47% over 2004). New construction consists
mostly of custom homes and townhouses, but there are some older homes
available in city neighborhoods. Several developments have been proposed
in the surrounding area, supplementing existing projects. Because
commercial real estate is scarce in downtown Moab, most development is
occurring on the outskirts of town.
With a strong real estate market and the ever increasing interest in
Southeastern Utah, Moab should continue to see appreciation in prices in the
fourth quarter of 2006 and beyond. Real estate rental and purchasing
information is available through any of the real estate companies listed in this
directory. Information on rent-subsidized housing for low-income, senior, or
disabled persons is available from the Grand County Housing Authority, 2595891.
San Juan County, Utah. Nowhere else will you find such diversity!
Canyons, desert, rivers, mountains and lakes as well as past and present Native
American cultures create the Canyon Country of San Juan County.
This is where the true west of myth and legend is alive
today. Free from the distractions of metropolitan and urban life,
the relaxing lifestyle in our charming towns and villages offers
the perfect vacation, residential, or business environment.
We are located in the Four Corners region of the
southwest United States. This is the heart of the Colorado
Plateau with the textbook geology that created the breathtaking
canyons and majestic mountains of Canyon Country.
San Juan County provides a perfect, centralized base of
travel to the world renowned features that surround us.
National Parks and Monuments, including the Grand Canyon, Monument Valley,
Canyon lands, Arches, Lake Powell, Natural Bridges, Hovenweep, and Mesa
© Copyright The WellSpring Institute All Rights Reserved
66
Confidential
MARKET ANALYSIS
Verde are all within Canyon Country or easy driving distance. State parks include
Edge of the Cedars Museum and the great Goosenecks of the San Juan River.
All of this and more is easily visited from our excellent selection of motels,
lodges, RV parks, campgrounds, and resorts. Fine dining as well as family
restaurants complements the visitor experience.
Cultural and natural history experiences
abound in Canyon Country. Edge of the
Cedars State Park & Museum highlights
the Ancestral Puebloan (Anasazi) culture
with the largest display of artifacts in the
Four Corners.
Newspaper Rock Recreation Site
offers a large petroglyph panel. Cowboy and Mormon history add color to the
county's foundation as do Navajo, Hopi, Zuni, and Ute artisans whose work is
available at local trading posts and galleries.
Our annual crafts fairs, rodeos, ATV Safari, and the International Balloon
Festival add to San Juan County's sense of excitement and adventure. Enjoy
river rafting with an excellent guide, jeep into hidden canyons and across
mountain ridges, hike, bike, 4-wheel, and ATV into and through Utah's Canyon
Country for the vacation of a lifetime! With 9,000 feet of elevation change almost 2 miles between 3,700 feet and 12,600 feet - from red rock canyons to
alpine splendor, San Juan County has it all!
Traffic Frequency
When looking at the frequency of
travelers stopping in Moab you can see
from the cart that 31% of the visits come
from regulars and 69% come from passerby. This suggests that there is still an
untapped market to increase the planned
visits of people.
The following chart demonstrates the three peak season of spring,
summer and fall. Our plan is to increase the winter season activity by brining in
executive development courses and workshops and offering winter activities in
our La Salle mountain facility.
© Copyright The WellSpring Institute All Rights Reserved
67
Confidential
MARKET ANALYSIS
Market Segment Analysis
Arches National Park - A red rock wonderland containing some of the
most scenic and inspiring landscapes on Earth, Arches National Park contains
the world's largest concentration of natural sandstone arches. Although over
2,000 arches are located within the park's 76,518 acres, the park also contains
an astounding variety of other geological formations. Colossal sandstone fins,
© Copyright The WellSpring Institute All Rights Reserved
68
Confidential
MARKET ANALYSIS
massive balanced rocks, soaring pinnacles and spires dwarf visitors as they
explore the park's viewpoints and hiking trails. Geologic faulting has exposed
millions of years of geologic history within the park.
Arts - Visitors from around the world visit Moab for its incredible
landscapes and scenic beauty. Many are moved by the beauty found here and
express that beauty in the arts. Some actually move to Moab because of their
desire to be more closely connected with the inspiration for their art. Whether you
come to Moab for adventure, to play, or for business, you can always find
something going on in the arts to extend and enhance your stay!
Moab may have more artists-per-capita than any other town in America,
certainly in Utah! Here you can find
painters, potters, poets, photographers, and
writers, dancers, actors, musicians and
mimes. There are also jewelers, sculptors,
playwrights and just about any other form of
artist and art that you can think of, including
body art! The Moab Artist Directory has
identified over 200 practicing artists (almost
2.5% of the county population) and the
number keeps on growing.
Well before Moab was founded, the people of the Fremont and Anasazi
cultures practiced their own forms of art. Rock art, in the form of petroglyphs and
pictographs, are found at hundreds of sites within a short radius of Moab.
Combined with the art forms of the early pioneers and the thriving arts
community of today, Moab has nurtured creativity for eons.
Canyonlands National Park - Canyonlands is the largest national
park in Utah, and its diversity staggers the imagination. It is divided into three
districts by the Green and Colorado Rivers - the Island in the Sky, the
Needles and the Maze. Named for their most prominent geologic
characteristics, these districts are quite varied in what they have to offer.
© Copyright The WellSpring Institute All Rights Reserved
69
Confidential
MARKET ANALYSIS
Island in the Sky - This section of the park
sits atop a massive 1500 foot mesa - quite literally an
Island in the Sky. 20 miles of paved roads lead to
many of the most spectacular views in Canyon
Country. From these lofty viewpoints visitors can see
nearly 100 miles in any given direction, resulting in
panoramic views that encompass thousands of
square miles of canyon country.
Take a short day-hike or spend a relaxing late
afternoon enjoying the sunset. Whether you have a
few hours to spend or a few days, the Island in the
Sky provides an unforgettable Canyon Country
experience for the entire family.
Green River Overlook
Island in the Sky District
The Needles - A ten mile paved scenic drive gives visitors a wonderful
taste of what The Needles was named after - beautiful sandstone spires that jut
out of the ground creating an unforgettable spectacle. For those willing to venture
off the paved roads, however, this section offers an amazing diversity of
terrain. Arches, canyons, gardens, and beautiful sculpted rock formations await
hikers, backpackers and 4WD enthusiasts. The scenic drive can be done in an
hour or two, however hikers and 4 wheel drive enthusiasts will need at least a
day or two to get a good taste of this section.
The Maze - Definitely considered the wildest district in Canyonlands
National Park, the Maze ranks as one of the most remote and inaccessible
sections in the United States. There is, in the Maze itself, a perplexing jumble of
canyons that has been described as a "30 square mile puzzle in sandstone". If
you crave solitude and are ready for some serious backcountry travel and hiking,
the Maze may be just what you're looking for.
Colorado River way - The
Colorado River way encompasses the
public lands along the Colorado River. A
number of activities take place in this red
rock haven, including river running,
technical rock climbing, scenic drives,
hiking, cycling, picnicking, and wildlife
watching. The Colorado River way
includes the Public Lands managed by the
Bureau of Land Management in the following areas:

Along the Colorado River and Utah Highway 128 from Dewey Bridge to
U.S. 191
© Copyright The WellSpring Institute All Rights Reserved
70
Confidential


MARKET ANALYSIS
Along the Colorado River and Utah Highway 279 from Moab Valley to
Potash
Along Kane Creek Road from Moab Valley to the block of State land south
of Hunter Canyon
Dead Horse Point SP - Dead
Horse Point is one of Utah's most
spectacular state parks. Towering
2,000 feet above the Colorado River,
the park provides a breathtaking
panorama of Canyonlands' sculpted
pinnacles and buttes.
Access to Dead Horse Point is nine miles north of Moab on US 191. (Turn
west on SR 313, then go 22 miles.) The visitor center, interpretive museum,
developed campground and large overlook shelter make the park comfortable
and informative as well as spectacular. It is open from 6 a.m. to 10 p.m. daily.
Movie Sites - Since 1949
the Moab area has been a popular
location for Hollywood movies.
Movies filmed in our area range
from the old John Wayne classics
to more recent hits such as
Geronimo, City Slickers II, and
Mission Impossible II. Thelma and
Louise took their final leap into the Colorado River from along the Shafer Trail
under Dead Horse Point near Moab! Numerous commercials, and more
recently music videos, have been filmed here.
Museums - Museums, galleries, and a
variety of interesting shops are available in the
Moab area. Because of this, many visitors prefer
to alternate their vacation days, reserving several
for hiking and sightseeing, and several set aside
for museum touring and shopping. Moab's Main
Street has dozens of shops featuring authentic
Indian jewelry, statuary, clothing, and rock shops,
as well as the products of local artisans. The Film Museum provides a great
turnaround point for a beautiful drive down Scenic Byway 128.
National Forests - Almost 160,000 acres of area woodlands are
designated National Forest. The Moab Ranger District, of the USFS,
administers a large block of the Manti-La Sal National Forest in the La Sal
Mountains southeast of Moab. The second highest range in Utah, these
© Copyright The WellSpring Institute All Rights Reserved
71
Confidential
MARKET ANALYSIS
alpine mountains offer excellent opportunities for hiking, camping, cycling and
mountain climbing and are a perfect place to escape the summer heat.
Capped with snow much
of the year, they also serve as
nature's backdrop for Arches and
Canyonlands National Parks.
Fishing is available in small
mountain lakes throughout the
forest. Bicycles, motorcycles and
all-terrain vehicles may be used
on designated roads. Dozens of miles of cross-country trails and 'hut to hut' ski
systems provide winter fun. Many beautiful campsites, including Warner Lake,
are available on a first come, first serve basis.
Rock Art Sites -The Moab area has numerous examples of Indian rock
art to enjoy. There are two types of rock
art: petroglyphs (motifs that are pecked,
ground, incised, abraded, or scratched on
the rock surface) and pictographs
(paintings or drawings in one or more
colors using mineral pigments and plant
dyes on the rock surface). Although many
images may have originally been
executed as a combination of both
techniques, most now appear only as a
petroglyph because the paint material has faded or washed away over many
years. On closer examination you might be able to see a painted design
accompanying the pecked image. Examples of both types of rock art are found
along the sites described in this guide. Each site is unique. The patterns and
motifs may be similar, but are never quite the same. Styles vary from place to
place, and from people to people.
Sand Flats/Slickrock
Trail - The Sand Flats
Recreation Area near Moab,
Utah is a nationally significant
public lands treasure at the
heart of the Colorado Plateau.
A high plain of slick rock
domes, bowls and fins, it rises
on the south to meet the colorful mesas and nearly 13,000 foot peaks of the La
Sal Mountains. Cutting into the area on the east and west are the altered
canyons of the Negro Bill and Mill Creek Wilderness Study Areas. To the north
lies the deep gorge of the Colorado River and a hundred mile vista over Arches
National Park.
© Copyright The WellSpring Institute All Rights Reserved
72
Confidential
MARKET ANALYSIS
SFRA is home to the famous Slickrock Bike Trail enjoyed annually by over
100,000 visitors. The 7,320 acre SFRA is also popular for camping and jeeping
and is seeing an increase in motorcycle and ATV use.
The Sand Flats Recreation Area is managed through a unique partnership
between Grand County and the Bureau of Land Management. In 1995 this area
was developed through the collaborative efforts of Americorps, the BLM, Grand
County and the Moab community.
Wetlands - The Matheson Wetlands Preserve, located just a half-mile
from Moab, provides some of the
best wetlands wildlife watching in
Utah. It is the only major wetland
along the Colorado River in Utah. It
is a critical 'steppingstone' for
migrating waterfowl, raptors and
shorebirds. Point of entry is on Kane
Creek Road.
Wineries - Wine tasters and
connoisseurs from around the world
are often quite surprised to learn that
there are two vineyards and wineries
right here in Moab area. Moab's long
growing season coupled with its fertile,
sandy soils has resulted in production
of quite a few world-class wines. Visitors can spend half a day enjoying both
Moab area wineries and their tasting rooms, or take a quick tour of either one.
Spanish Valley Vineyards & Winery is conveniently located just a few
miles south of Moab - the perfect way to relax after a hike in Arches or near
Moab.
Castle Creek Winery is located just 15 miles from Moab, along beautiful
Scenic Byway 128. Its location makes it the perfect destination after a
sightseeing drive down Highway 128, or a hike to the Fisher Towers.
4 Wheeling - here are thousands of miles of jeep trails in Grand County.
Most are unmaintained relics from mining or
prospecting for minerals such as uranium,
vanadium radium copper, gold, and oil. Yet,
except for the trails themselves, there are few
scars on the landscape. Some trails are used
in current mining and grazing activities, and
major access roads receive some maintenance from the county. Others are
repaired just enough to get through.
© Copyright The WellSpring Institute All Rights Reserved
73
Confidential
MARKET ANALYSIS
The trails described on this page were selected because they are close to
Moab and short enough for a partial-day trip. Among the trails are a variety of
scenery and a range of challenge to the off-highway abilities of vehicle and
driver. The map shows trail locations; the chart gives distances, difficulty, and
minimum time to drive each trail without stops.
ATV Riding - Moab
has numerous trails
suitable for ATV's. Much
of the public land
surrounding the National
Parks is open to ATV
travel on existing trails. (However, please note that ATV riding is not allowing
within either Arches or Canyonlands National Park.) ATV enthusiasts can use all
of the popular
Ballooning - Imagine ascending to greet the
sunrise as you drift among geologic wonders created
when dinosaurs roamed the earth. Behold the fragile
sandstone formations of Arches National Park as the
13,000 foot La Sal Mountains cast long shadows upon
the town of Moab and Canyonlands National Park. As
you drift over the river carved canyons of the Colorado
River, let the pilot and wind be your navigator while you capture photographic
images that will last a lifetime.
Since hot air ballooning is an activity that is best suited for areas away
from major population centers, ballooning near Moab and Castle Valley is the
perfect location. Balloon flights in this region encompass some of the most
incredible and awe inspiring scenery in the country.
Fishing - Enjoy fishing? What’s
your preference…trout or catfish? Bait or
Fly? Lake or River? Moab has it all, with
the Colorado River offering many sandy
beaches from which anglers can try their
luck at cat fishing. Great trout fishing can
be found in the beautiful lakes and
streams of the nearby La Sal Mountains.
Whispering pines, quaking aspens,
bubbling brooks, all of nature’s music harmonizes into a beautiful symphony
making a family outing in the forest an unforgettable experience.
The La Sal National Forest just a few miles Southeast of Moab offers
many great opportunities for recreational angling with its many lakes and
© Copyright The WellSpring Institute All Rights Reserved
74
Confidential
MARKET ANALYSIS
streams. Eight lakes, ranging in size from 2 to 5 acres, are scattered amidst fir,
spruce, tall quaking aspen and beautiful mountain meadows often colored with
wild flowers. While the lakes are accessible by two-wheel drive vehicles during
the summer months, periodically wet weather can at times make roads
impassable.
Golfing - The Moab Golf Course is one of the
most visually appealing in the state with its
contrast of smooth, bright greens set amid
rough, eroded red cliffs and boulders. The public
course has 18 holes and a par of 72. It is open
seven days a week, year-round. It has a pro
shop, a driving range, and a snack bar open for
breakfast and lunch. Cart rentals and lessons
are available.
Hiking - Great hiking doesn't end with your visits to Arches and
Canyonlands National Parks. The Moab area contains a large number of trails to
suit any taste and experience level. From cool stream-side hikes (Negro Bill &
Hunter Canyons) to spectacular sandstone arches (Corona Arch), the Moab area
is full of exciting day-hikes suitable for the entire family.
The day-hikes described on this
page are all located within a one-half hour
drive of Moab. The closest trailhead to town
is about 2 miles from downtown, while the
farthest away is 23 miles. All of the trails
are suitable for half-day outings. The
Hidden Valley and Moab Rim Trails can be
combined for a longer one-way hike. Hiking times described represent the
number of hours needed to complete a leisurely round trip hike.
Motorcycle Touring - Sweeping
curves, twisting turns, and scenery that takes
your breath away. Could you ask for more? If
so Moab, Utah will deliver with arches,
canyons, red rock formations, the Colorado
River Gorge, petrogylphs, dinosaur tracks,
historical bridge, and the LaSalle Mountains.
Home to three National Scenic Byways, one Scenic Back way, two National
Parks and one State Park, Moab is a perfect destination for a motorcycling
vacation or a great “extra day” stop on your way to the next rally
Scenic Byway 128 along the Colorado River is the preferred route into
Moab from Interstate 70. You start your journey across the open desert with a
few sweeping curves, until you reach the Colorado River where considerably
© Copyright The WellSpring Institute All Rights Reserved
75
Confidential
MARKET ANALYSIS
sharper turns will command your attention. The route crosses the mighty river
near the historic Dewey Bridge. Built in 1916 and used until 1986, this
suspension bridge is on the National Register of Historic places and is now
only open to foot traffic. A nearby rest area makes this a perfect stop to
stretch your legs. Beyond the bridge, the byway continues to follow the
Colorado River with more twists and turns, before giving way to a straight, but
spectacularly scenic, section. Along this stretch, you will pass the majestic
Fisher Towers and the famous Castle Rock, a finger-like spiral to the
southwest, which was the location for many films and commercials, and can
be seen, just before the Castle Valley Junction.
Mountain Biking - Welcome to the home of the greatest mountain
biking on the planet. Moab offers a
huge variety of trails for mountain
bikers of any experience level, from
beginners looking for a scenic ride
through beautiful canyons and mesa
tops, to seasoned bikers looking for
the ultimate challenge.
Moab is well known for the
world famous, and highly technical, Slickrock Bike Trail. This challenging 9.6 mile
trail is considered by many to be the ultimate mountain biking experience. Moab,
however, also contains an assortment of easy and extremely scenic biking trails.
The Bar-M Loop Trail, for example, provides a great introduction to the varied
terrain and beautiful scenery adjacent to Arches National Park. Look around this
page and create your own mountain biking adventure!
Photography - Southeastern Utah is a paradise for photographers.
Under conditions of constantly changing
light, the red rock landscapes of
southeastern Utah provide limitless
photographic opportunities. Often, the
difference between an average photograph
and an exceptional photograph is good
lighting. Low sun angles at sunrise and
sunset add great depth to many of the
panoramic vistas in southeastern Utah, such as the views from the Island in the
Sky District of Canyonlands National Park and Dead Horse Point State Park.
Scattered clouds can also add depth to an image and a passing storm can
provide extremely dramatic lighting.
River Activities - Southeastern
Utah is blessed with an abundance of
river recreation opportunities. Visitors
may select river environments that
© Copyright The WellSpring Institute All Rights Reserved
76
Confidential
MARKET ANALYSIS
range from the wilderness settings of Cataract and Desolation-Gray canyons to
the more easily accessible sections of the Colorado and Green Rivers. While the
area is known for its whitewater float trips, there are also several scenic calm
water segments suitable for canoes and small powerboats.
Although the Colorado River often conjures images of wild, churning
rapids and heart-stopping near capsizes; the rivers of the Moab area have a
softer side as well. For miles at a time they are simply wide, quiet streams that,
on clear days, reflect a mosaic of rock cliffs and sky. Calm water float trips in
canoes, kayaks and rafts are available. The river stretches are administered by
either the BLM or the National Park Service. Individuals or groups may raft the
river on their own or with a professional river outfitter. On any trip, calm or white
water, special river rules apply to fires, campsites and sanitation. Permits and
fees may be required for private use.
Scenic Drives -touring the Moab area in an
automobile? The following auto tours will take you
through some of the most spectacular scenery in
the area. Arches, canyons, the Colorado River
gorge, mountain vistas, petroglyphs, and dinosaur
tracks these routes have it all!
Scenic Flights - The wild and untamed
landscape of southern Utah contains some of the most rugged and inaccessible
terrain in the country. Visitors to this area are
awestruck by the enormity of the landscape its vast size and colossal dimensions are
overwhelming to the senses. Taking it all in
during a brief visit is impossible - exploring
this spectacular landscape can take a
lifetime. However, even an hour-long scenic
flight will allow you to experience thousands of square miles of ruggedly
spectacular canyon country! No other mode of transportation will allow you to see
so much in so short a period of time.
A scenic flight over the Canyonlands Region can be the perfect
compliment to any vacation. A birds-eye view of our unique terrain is the perfect
way to put your entire visit into perspective.
Peer down on the enormous canyons cut by the Colorado and Green
River over millions of years. Experience the remoteness, desolation, and
unspoiled beauty of hundreds of square miles of pure wilderness. Fly around
magnificent mesas, buttes, pinnacles, and spires. Journey back in time as eons
of geological evolution, often perplexing from the ground, are clearly revealed
from the air.
© Copyright The WellSpring Institute All Rights Reserved
77
Confidential
MARKET ANALYSIS
From your aerial vantage point, suspended in time and space over a truly
remarkable one-of-a-kind landscape, take a respite from the routine of daily life
and let your spirit soar!
Skydiving - or many, skydiving is a
once in a lifetime adventure. Others continue
on to become licensed skydivers that jump all
over the US and the world. In either case,
making that first skydive is an experience you
will never forget! Moab’s spectacular canyon
country offers the perfect backdrop to make
this exciting event even more unforgettable!
Winter Activities - Located within the
Manti-La Sal National Forest, the LaSalle offer
many areas open to cross-country skiing,
sledding and a small amount of snowmobiling.
Access to most areas is off the Geyser Pass
Road which is plowed to a parking lot. For
skiers, the LaSalle offer both worked trails and
backcountry terrain. Some of these same areas are shared by snowmobile users,
although some restrictions apply.
Winter backcountry users should call 435-259-SNOW, November through
April, for current taped information on mountain weather, road conditions and
avalanche potential. The steep LaSalle Mountains have a greater potential for
avalanche than the mountains of northern Utah, so please use caution and
common sense. Guided day and overnight ski tours, and ski rentals are available
in Moab.
Strengths, Weaknesses, Opportunities & Threats (SWOT
Analysis)
Strengths - The following are a few of the strengths of the RANCH








Proximity to Moab
Only private land available in the area
Private land is surrounded by forest service and BLM land allowing us
unlimited access and use
Already established and county maintained ATV and horse trails
Proximity to LaSalle Mountain Rangers with Pine Forest and escape
from summer heat and access to winter activities
Property is located directly off the main highway
Electric power is located within 5 miles of the property
Property offers space for a wide variety of activities that will appeal to a
wide range of customers
© Copyright The WellSpring Institute All Rights Reserved
78
Confidential














MARKET ANALYSIS
Existing business relationships with
o Fortune 500 Companies
o Asian youth markets
o Japanese travel agencies
o Las Vegas bookers
o The WellSpring Institute Clients
o I Learning Pros Clients
Abundant wildlife for hunting activity including: white mule deer, wild
turkey, elk, bear, white tail squirrel and jackrabbits just to name a few
Large acreage of land so operations can spread out to create an old
west environment
Highly trained and experienced personnel
Synergistic product mix that provide a destination retreat environment
Strong and growing tourist season history in the Moab and San Juan
county areas
Positive business development environment in San Juan County
Current positive trend in the continuing education environment
Development of own power plant provides opportunities for resale of
energy
Relationship and experience of the Wellspring Institute
Gas line and rights currently available on property
Unlimited water rights
Large acreage of grazing rights available
Built in “product launch with the Entrepreneur Fast Track Program and
Seven days to prosperity and fulfillment” to help cover operating
expenses
Weaknesses - The following are a few of the weaknesses of the RANCH
Opportunities




Large integrated business development effort
Large funding requirements
No current infrastructure on prosperity
Close nit “green” community in Moab
Opportunities - The following are a few of the opportunities to the RANCH

Build a “one of kind” business

Purchase some of the most pristine land in southern Utah

Create a showplace for American Western culture

Develop a Indian Culture Center

Create a showplace for “green” construction and self supplied
resources
© Copyright The WellSpring Institute All Rights Reserved
79
Confidential

MARKET ANALYSIS
Generate jobs and prosperity for hundreds of individuals
Threats - The following are a few of the threats to the RANCH



Economy stays flat and travel and training business does not grow.
Other competitors enter market
Attitudes of Moab residents resistant to change and business
development
Customer Profile
Demographics of the Moab Visitor
Sex of Visitors
There is just about a split
between men and women visitors to
the Moab area which suggest that
couples typically travel and vacation together.
Age of Visitor
There are two spikes in the age of
individuals visiting Moab. The over 50 are
the primary visitors with teenagers coming
in a close second. This suggest that
families are the primary source of visitors.
Race of Visitor
Consistent with the demographics
of Utah, over 90% of visitors to Utah are
Caucasian. There could a real opportunity
to market y to people of color
© Copyright The WellSpring Institute All Rights Reserved
80
Confidential
MARKET ANALYSIS
Family Make-up of Visitor
While this slide suggest, most of the
visitors to Moab do not have children. When
you combine the numbers of ages. It is clear
that families are indeed your number one
traveler. It also show a trend that families with
younger are visiting which suggest providing
activities for all ages along the spectrum
Income of Visitors
This chart suggest that Moab
attracts an affluent audience with income
over 100K. In practical terms, this means
the visitors to Moab have the money to
spend on the activities provided.
Education of Visitors
There is a high index of College
Graduates visiting the Moab area. This
may be accountable for the Spring Break
crowd and the high family oriented crowd.
The following chart show the earnings of the visitors to you by age
Table 3. Age of reference person: Average annual expenditures and characteristics, Consumer Expenditure
Survey, 2007
Item
All
consumer
units
Under
25
years
25-34
years
© Copyright The WellSpring Institute All Rights Reserved
35-44
years
81
45-54
years
55-64
years
65 years
and
older
65-74
years
75
years
and
older
Confidential
Number of consumer
units (in thousands)
MARKET ANALYSIS
120,171
8,150
20,499
23,416
25,245
19,462
23,400
12,011
11,390
Consumer unit characteristics:
Income before taxes
$63,091
$31,443
$57,256
$76,540
$80,560
$71,048
$40,305
$47,708
$32,499
Income after taxes
$60,858
$30,802
$55,765
$74,051
$77,075
$67,965
$39,179
$46,334
$31,634
48.8
21.5
29.6
39.6
49.4
59.2
75.2
69.1
81.5
Persons
2.5
2.0
2.8
3.2
2.7
2.1
1.7
1.8
1.5
Children under 18
0.6
0.4
1.1
1.3
0.6
0.2
0.1
0.1
a/
Persons 65 and over
0.3
a/
a/
a/
a/
0.1
1.4
1.4
1.3
Earners
1.3
1.3
1.5
1.6
1.7
1.4
0.4
0.7
0.2
Vehicles
1.9
1.2
1.7
2.2
2.3
2.2
1.6
1.8
1.3
Male
47
47
48
46
49
49
43
47
39
Female
53
53
52
54
51
51
57
53
61
Homeowner
67
16
47
68
75
81
79
81
77
With mortgage
43
11
41
60
59
47
21
30
11
Without mortgage
23
5
6
9
16
34
58
51
66
Renter
33
84
53
32
25
19
21
19
23
12
12
15
14
12
11
9
10
7
88
88
85
86
88
89
91
90
93
Age of reference person
Average number in consumer unit:
Percent distribution:
Sex of reference person:
Housing tenure:
Race of reference person:
Black or AfricanAmerican
White, Asian, and all
other races
Hispanic or Latino origin of reference person:
Hispanic or Latino
12
14
18
16
11
7
6
7
5
Not Hispanic or Latino
88
86
82
84
89
93
94
93
95
Education of reference person:
Elementary (1-8)
5
3
4
4
4
4
11
8
14
High school (9-12)
35
31
30
33
33
33
45
44
46
College
60
66
66
63
62
63
43
47
38
b/
c/
b/
b/
b/
b/
1
b/
1
88
73
89
92
91
93
83
88
78
Never attended and
other
At least one vehicle
owned or leased
Table 3. Age of reference person: Average annual expenditures and characteristics, Consumer Expenditure
Survey, 2007 Continued
Item
All
consumer
units
Under
25
years
Other meats
$104
$71
$89
$127
$125
$107
$83
$93
75
years
and
older
$72
Poultry
$142
$90
$138
$179
$173
$134
$101
$125
$73
Fish and seafood
$122
$64
$99
$152
$146
$127
$103
$122
$81
$43
$27
$41
$49
$47
$44
$39
$42
$36
Dairy products
$387
$238
$368
$459
$442
$384
$332
$376
$284
Fresh milk and cream
$154
$103
$157
$187
$172
$142
$126
$136
$115
Other dairy products
$234
$136
$211
$271
$271
$242
$206
$240
$169
Fruits and vegetables
$600
$340
$529
$677
$684
$640
$557
$628
$479
Eggs
25-34
years
© Copyright The WellSpring Institute All Rights Reserved
35-44
years
82
45-54
years
55-64
years
65 years
and
older
65-74
years
Confidential
MARKET ANALYSIS
Fresh fruits
$202
$112
$168
$227
$232
$219
$193
$212
$172
Fresh vegetables
$190
$103
$163
$220
$217
$207
$175
$205
$142
Processed fruits
$112
$66
$111
$125
$123
$113
$106
$113
$99
$96
$58
$87
$105
$112
$102
$84
$99
$67
$1,241
$922
$1,194
$1,465
$1,447
$1,219
$976
$1,147
$789
$124
$69
$100
$151
$150
$119
$118
$136
$99
$91
$53
$76
$101
$107
$95
$89
$97
$80
Miscellaneous foods
$650
$528
$683
$781
$729
$599
$489
$569
$403
Nonalcoholic
beverages
Food prepared by
consumer unit on out-oftown trips
Food away from home
$333
$255
$305
$382
$411
$343
$247
$297
$192
$43
$17
$30
$50
$50
$63
$33
$49
$16
$2,668
$1,876
$2,790
$3,268
$3,178
$2,784
$1,610
$1,878
$1,319
$457
$461
$514
$469
$498
$533
$285
$346
$218
Housing
$16,920
$9,598
$17,329
$20,952
$19,195
$17,223
$12,396
$13,547
$11,173
Shelter
$10,023
$6,220
$10,536
$12,758
$11,617
$9,763
$6,656
$7,271
$6,009
$6,730
$1,398
$5,985
$9,232
$8,626
$7,063
$4,414
$5,329
$3,448
Mortgage interest and
charges
Property taxes
$3,890
$919
$4,286
$6,239
$5,093
$3,421
$1,320
$2,049
$550
$1,709
$325
$1,076
$1,950
$2,178
$2,127
$1,651
$1,767
$1,529
Maintenance, repairs,
insurance, other expenses
$1,131
$154
$623
$1,043
$1,356
$1,515
$1,443
$1,513
$1,369
$2,602
$4,649
$4,288
$2,849
$2,055
$1,539
$1,639
$1,277
$2,020
$691
$173
$263
$677
$936
$1,161
$604
$664
$540
$3,477
$1,813
$3,063
$3,928
$4,053
$3,754
$3,117
$3,392
$2,828
$480
$169
$379
$534
$539
$557
$497
$522
$470
$1,303
$706
$1,148
$1,479
$1,499
$1,403
$1,175
$1,289
$1,055
$151
$28
$85
$132
$192
$171
$208
$185
$232
$1,110
$744
$1,094
$1,295
$1,330
$1,135
$806
$946
$659
$434
$166
$357
$487
$493
$488
$431
$451
$411
$984
$363
$1,175
$1,422
$867
$860
$825
$715
$941
Processed vegetables
Other food at home
Sugar and other sweets
Fats and oils
Alcoholic beverages
Owned dwellings
Rented dwellings
Other lodging
Utilities, fuels, and public
services
Natural gas
Electricity
Fuel oil and other fuels
Telephone services
Water and other public
services
Household operations
Personal services
$415
$174
$780
$844
$193
$159
$205
$83
$334
Other household
expenses
Housekeeping supplies
$569
$189
$394
$579
$674
$701
$620
$632
$607
$639
$278
$522
$646
$724
$902
$562
$661
$453
Laundry and cleaning
supplies
$140
$84
$129
$178
$161
$134
$115
$138
$90
Table 3. Age of reference person: Average annual expenditures and characteristics, Consumer Expenditure
Survey, 2007 Continued
Item
Other household
products
Postage and stationery
Household furnishings
and equipment
Household textiles
Furniture
Floor coverings
All
consumer
units
Under
25
years
25-34
years
$347
$134
$265
$343
$365
$572
$296
$348
75
years
and
older
$240
$152
$60
$127
$125
$198
$197
$150
$175
$123
$1,797
$925
$2,034
$2,198
$1,933
$1,944
$1,235
$1,508
$943
$133
$65
$120
$169
$120
$170
$117
$145
$86
$446
$281
$537
$625
$461
$437
$235
$308
$159
$46
$4
$48
$50
$54
$48
$48
$58
$37
© Copyright The WellSpring Institute All Rights Reserved
35-44
years
83
45-54
years
55-64
years
65 years
and
older
65-74
years
Confidential
MARKET ANALYSIS
Major appliances
$231
$122
$213
$251
$285
$266
$180
$205
$152
Small appliances,
miscellaneous house
wares
Miscellaneous
household equipment
$101
$59
$103
$110
$115
$92
$98
$115
$79
$840
$394
$1,013
$993
$898
$931
$558
$678
$429
Apparel and services
$1,881
$1,477
$2,106
$2,335
$2,191
$1,888
$1,040
$1,323
$732
Men and boys
$435
$323
$508
$582
$514
$402
$209
$255
$160
Men, 16 and over
$351
$290
$396
$403
$428
$367
$187
$220
$152
$84
$33
$112
$178
$87
$35
$22
$36
$8
Women and girls
$749
$535
$729
$855
$952
$793
$487
$636
$325
Women, 16 and over
$627
$510
$570
$604
$822
$723
$460
$590
$316
Girls, 2 to 15
$122
$25
$158
$251
$130
$70
$28
$46
d/ 8
Boys, 2 to 15
Children under 2
$93
$145
$206
$119
$54
$55
$23
$32
$14
$327
$237
$383
$399
$383
$351
$160
$209
$106
$276
$237
$281
$381
$287
$286
$160
$190
$128
Transportation
$8,758
$5,708
$9,065
$10,558
$9,943
$9,608
$5,785
$7,669
$3,784
Vehicle purchases (net
outlay)
Cars and trucks, new
$3,244
$2,273
$3,930
$4,183
$3,223
$3,348
$1,977
$2,701
$1,213
$1,572
$1,058
$1,541
$1,955
$1,645
$1,700
$1,209
$1,721
$668
Cars and trucks, used
$1,567
$1,126
$2,256
$2,106
$1,404
$1,582
$740
$925
$545
Footwear
Other apparel products
and services
$105
d/ 89
$133
$122
$174
d/ 66
d/ 29
d/ 56
c/
Gasoline and motor oil
Other vehicles
$2,384
$1,760
$2,446
$2,870
$2,846
$2,504
$1,461
$1,862
$1,039
Other vehicle expenses
$2,592
$1,365
$2,293
$2,966
$3,213
$2,993
$1,928
$2,536
$1,270
Vehicle finance charges
$305
$221
$384
$400
$335
$325
$122
$197
$43
Maintenance and repairs
$738
$437
$609
$809
$941
$885
$543
$693
$384
$1,071
$492
$802
$1,173
$1,382
$1,214
$975
$1,321
$597
$478
$216
$498
$584
$555
$569
$287
$325
$247
Vehicle insurance
Vehicle rental, leases,
licenses, and other
charges
Public transportation
$538
$310
$396
$540
$661
$763
$420
$569
$262
Healthcare
$2,853
$800
$1,740
$2,315
$2,792
$3,476
$4,631
$4,967
$4,275
Health insurance
$1,545
$397
$918
$1,269
$1,386
$1,751
$2,770
$2,821
$2,716
Medical services
$709
$267
$556
$651
$772
$883
$844
$1,027
$651
Drugs
$481
$103
$203
$303
$498
$674
$859
$935
$777
Medical supplies
$118
$34
$64
$93
$135
$168
$159
$184
$132
Table 3. Age of reference person: Average annual expenditures and characteristics, Consumer Expenditure
Survey, 2007 Continued
Item
All
consumer
units
Entertainment
Fees and admissions
Under
25
years
25-34
years
35-44
years
45-54
years
55-64
years
65 years
and
older
65-74
years
$2,698
$1,448
$2,462
$3,551
$3,163
$2,730
$1,966
$2,636
75
years
and
older
$1,255
$658
$290
$500
$967
$823
$645
$450
$575
$318
Audio and visual
equipment and services
Pets, toys, hobbies, and
playground equipment
$987
$726
$1,034
$1,196
$1,126
$965
$694
$812
$570
$560
$243
$480
$730
$711
$653
$338
$429
$239
Other entertainment
supplies, equipment, and
services
$493
$189
$448
$658
$504
$468
$484
$821
$128
Personal care products
and services
$588
$337
$512
$662
$686
$632
$528
$599
$451
© Copyright The WellSpring Institute All Rights Reserved
84
Confidential
MARKET ANALYSIS
Reading
$118
$51
$72
$107
$137
$151
$143
$151
$136
Education
$945
$1,787
$604
$819
$1,687
$929
$292
$245
$341
Tobacco products and
smoking supplies
$323
$290
$331
$379
$388
$353
$176
$243
$106
Miscellaneous
$808
$368
$589
$845
$1,008
$1,084
$672
$787
$548
Cash contributions
$1,821
$549
$1,027
$1,569
$1,972
$2,746
$2,282
$1,923
$2,661
Personal insurance and
pensions
$5,336
$2,440
$5,159
$6,980
$7,489
$6,193
$1,819
$2,600
$996
Life and other personal
insurance
$309
$39
$164
$286
$402
$461
$329
$375
$279
$5,027
$2,401
$4,995
$6,694
$7,087
$5,732
$1,491
$2,225
$716
$63,091
$31,443
$57,256
$76,540
$80,560
$71,048
$40,305
$47,708
$32,499
Pensions and Social
Security
Sources of income and personal taxes:
Money income before
taxes
Wages and salaries
$50,322
$27,685
$52,914
$69,903
$70,023
$54,021
$12,011
$18,489
$5,180
Self-employment
income
Social Security, private
and government
retirement
Interest, dividends,
rental income, other
property income
Unemployment and
workers' compensation,
veterans' benefits
Public assistance,
supplemental security
income, food stamps
Regular contributions
for support
Other income
$3,445
$1,310
$2,523
$3,557
$5,326
$4,478
$1,993
$2,880
$1,058
$6,379
$180
$302
$898
$2,355
$8,704
$21,754
$22,616
$20,846
$1,746
$662
$387
$756
$1,439
$2,651
$3,881
$3,053
$4,755
$216
$101
$168
$196
$299
$268
$186
$96
d/ 281
$332
$279
$320
$428
$351
$339
$239
$282
$195
$463
$797
$380
$604
$591
$463
$139
$154
$123
$189
$429
$263
$198
$175
$122
$100
$137
$61
Personal taxes
$2,233
$641
$1,491
$2,489
$3,485
$3,083
$1,126
$1,374
$864
Federal income taxes
$1,569
$433
$982
$1,741
$2,490
$2,234
$760
$1,003
$505
$468
$191
$413
$561
$754
$551
$143
$139
$147
State and local income
taxes
Other taxes
Income after taxes
$196
$17
$96
$188
$241
$298
$223
$232
$212
$60,858
$30,802
$55,765
$74,051
$77,075
$67,965
$39,179
$46,334
$31,634
Target Audience Profile
In order to book our facilities and make better use of our activities, we are
going to focus on the following market segments. We have provided a brief
analysis of each of these market segments.

Executive, Management and Team Training and Retreats
Almost all Fortune 500 companies use formal vacation destination and
conference centers for their training and retreats. In an informal study of
corporate planners, we discovered that there is yet a great need for
professional facilities with a unique “play” experience that pampers guests.
The continuing education business is really thriving in this economic
© Copyright The WellSpring Institute All Rights Reserved
85
Confidential
MARKET ANALYSIS
downturn. Either as a result of a planned or forced transition, professionals
displaced from their careers often explore other educational options to
prepare them for another line of work. Or, in some cases, many come to
the classroom just to learn more about something in which they are
interested. Either way, the wide variety of continuing education programs
available can meet the need.
Those who administer continuing education programs tell us that they are
benefiting from the aging of the baby boomer generation, as more and
more nontraditional students are returning to the classroom. A study
conducted by the U.S. Department of Education in 2002 highlights the
older undergraduate population as well, which is more likely to attend parttime due to family and work responsibilities.
Continuing education is on the upswing for several reasons
:
o Mergers, acquisitions and closures are sending more and more
highly competent professionals into the job market. Many need to
refine or update their skills to be best positioned for future
employment.
o As service-industry jobs feel the pressures of outsourcing and
manufacturing jobs decrease, the need for employees to stay
current in industry-related skills is critical.
o More than half of the world's 500 largest corporations were located
in the U.S. in the 1970s; today less than one third are located here.
A trained workforce is essential for the nation to maintain our share
of the global economy.
o Uncertain economic conditions in the past several years have sent
many people directly into the workforce rather than to colleges and
universities. Part-time continuing education programs offer them
the opportunity to pursue their education while maintaining their
careers.
o Having completed their careers, many retirees are interested in
learning in other subject matter areas unrelated to their former work
lives.
o The Baby Boomer generation is well-educated. Researchers
believe that well-educated people drive the demand for more
educational opportunities. They know that there is a positive
relationship between the level of education attained and the
tendency to pursue continuing education opportunities.
o That same generation will drive a high demand for healthcare
professionals. Continuing education is critical to those who work
caring for others and how need to stay updated on the latest
technologies and treatments.
© Copyright The WellSpring Institute All Rights Reserved
86
Confidential
MARKET ANALYSIS
o Nearly half of all federal government employees will face retirement
age in the next 5-10 years. Job openings will be extensive, and
individuals seeking to change careers will need training.
o Paid for continuing education opportunities are popular benefits and
help employers retain qualified and high-performing employees.
o Learning for the sake of learning, particularly among the growing
senior citizens market, drives the development of courses in
history, the arts and language.
o With the advent of a more diverse workforce, English as a Second
Language classes are become more popular.
o Increasing awareness of the importance of entrepreneurship for the
national economy is driving many individuals to pursue an idea for
business ownership, often requiring extensive education in
company start-up, marketing, finance and management.
o The rapid growth in online learning makes continuing education
more convenient for working adults.
A recent Wall Street Journal article reported that most Americans can
expect to change careers at least three to five times and hold 7-12
different positions in their work lifetimes. The disappearance of lifetime
employment opportunities has required workers to become more agile and
flexible in adapting to changing conditions.
As a result, those in the business of preparing those workers have had to
become more agile themselves. The positive result in central Missouri is a
wide array of educational offerings to meet nearly any budget, schedule,
interest area and delivery method. The choice is ours.

Personal Development Retreats
Based on the soon to be released books “Seven Days to Personal
Prosperity and Fulfillment” and “The Entrepreneur Fast track program”
offered by the WellSpring Institute, individuals will solicited from across the
country to attend boot camps at the ranch for their own persona
development.

Women Conferences
Our unique blend of resort and education facilities offer themselves to a
wide market of women looking for personal development and relaxation.
Borrowing form the success of the BYU education week, we will offer an
alternative for women seeking personal development.
© Copyright The WellSpring Institute All Rights Reserved
87
Confidential

MARKET ANALYSIS
Family Reunions and Youth Conferences
At the beginning of the summer of 2002, we conducted an informal survey
of typical family reunion sites in Utah, Colorado, and Nevada. To our
surprise, all of these sites were booked for the summer, and many had
reservations 1-3 years in advance. As we personally visited a few of these
sites, we discovered that families were paying top dollar for little or no
services and activities, let alone less than professional facilities. Only two
organization’s offered formalized activities by a trained recreation
specialist. When visiting with some of the guests we discovered that they
were vacationing at these facilities because they were the only ones
available.
More than 72 million Americans attend family reunions, and more than half
do so every year. Reunions magazine [reunionsmag.com], a leader in
tracking the growth and trends of various kinds of reunion groups, reports
that families are unique in that the motivation is to create a meaningful
way for relatives to stay in touch and pass on their heritage to new
generations.
Family reunions account for an increasing share of travel. The TIA reports
that 34 percent of Americans have traveled to a family reunion in the past
three years. But increasingly, families are not just getting together, they're
traveling together.

Vacationers

With the current unrest around the world, many Americans have said that
they will vacation in their own backyards. With the current crowds at
traditional vacations spots, particularly around the Grand Canyon, one of
the Seven Wonders of the World, we can offer unique, uncrowned
experience with unlimited growth potential. Our research indicates that by
providing the right facilities and activities, we can draw business from the
other ranches and resorts in the area.
Asian and European Travelers
With most of the Asian travel controlled by three travel agencies, gaining
their favor almost guarantees success with any vacationing destination.
Today the Asians look for safe activities like horseback riding, ATV’s and
shooting ranges. Our research indicates that Europeans visit sites like the
Grand Canyon, Zion’s, Arches and Bryce Canyon more than any other
foreign nationality. Our conveyance to Las Vegas and our unique access
to the Colorado River and the river excursion companies create additional
appeal for these travelers.

Young Adult Program
© Copyright The WellSpring Institute All Rights Reserved
88
Confidential
MARKET ANALYSIS
A retreat facility provides an excellent venue for 3 to 6 day youth camps
where young adults can gather and learn in a fun non-threatening
environment. Coping and preventative skills can be developed in a
natural setting.

Sports Camps
Our unique sports facilities will provide the perfect venue for schools and
other professional and not for profit organization to come in a “boot camp”
atmosphere to train and bond before their season begins. Special camps
offered by professionals will be provided for individuals seeking to learn
specific skills on their own.
Several trends have emerged over the past 20 years in the camping
industry. Highlighted below are the trends that the Company believes most
impact its business.
o Increasing Demand for Camp Reflects Parental Desire for
Supervision of their Children During the Summer
Many adults now in their 40's, 50's or 60's spent the summers of
their youth riding, swimming, fishing or playing ball with friends.
Today's parents are less willing to give their children this type of
freedom. Summer camp provides an envelope of safety and
supervision that today's parent’s desire. Consequently, demand for
all sorts of supervised summer activities, largely camp related, has
grown.
o Increasing Demand for Camp Reflects Parental Desire for
Childhood Enrichment Programs
Today's parents are far more likely to seek to enrich the lives of
their children through supervised, structured instructional and
enrichment programs. Thirty years ago, few if any children were
introduced to supervised sports or paid sports instruction before the
age of 9 or 10. In contrast, it is quite common for today's 4, 5 and 6
year olds to take tennis lessons and play in soccer leagues. The
demand for child supervision and enrichment fuels demand for
camps of all sorts.
The trend extends to teens and pre-teens (now often referred to as
"tweens"). Summer academic enrichment programs geared to
children 12 to 17 years of age have proliferated on college
campuses and prep schools in recent years. In addition, for-profit
community service programs have multiplied to serve parents
seeking to give their children an edge in the increasingly
© Copyright The WellSpring Institute All Rights Reserved
89
Confidential
MARKET ANALYSIS
competitive college admissions process.
o Steady Demand for Premium Traditional Resident and Day
Camps
As noted above, over the past 25 years, the number of traditional
resident and day camps declined. Beginning in 1989, the United
States experienced an "echo baby boom." Birth rates rose to their
highest levels since the original, post-war "baby boom." As a result,
beginning in 1996, demand for traditional resident and day camps
started to rise. Indeed, demand outstripped supply so that those
camps that continued to run quality programs increased capacity
and raised prices.
o The Growth of Shorter Session Residential and Day Camping
Demand has increased in recent years for traditional resident and
day camps offering sessions of one to four weeks. These camps
appeal to a broader segment of the population because of their
lower price points.
o The Growth of Specialty Camps and Non-Traditional Day
Camps
The ACA attributes most of the growth in summer camps over the
last 20 years to growth in specialty camps and non-traditional day
camps. These camps typically occupy facilities where camp is a
secondary use such as prep schools, colleges and universities and
public and private recreational facilities such as tennis clubs and
indoor athletic complexes. The growth in this type of camping is
fueled by low barriers to entry as well as demand by owners of
such facilities for additional summer income. Hundreds of colleges
and private schools now run their own summer programs or lease
their facilities to private operators. The same goes for tennis clubs
and indoor athletic complexes which used to be empty during the
summer.
We believe that the growth in demand for day camp is largely
fueled by demand for summer day care. The Company believes
that many of the newer "day camps" are really summer childcare
service providers masquerading as day camps. Day camps that are
sponsored or set up by corporations seeking to become more
family friendly fit this description.
o Volatility in the Not-For-Profit Camp Sector
© Copyright The WellSpring Institute All Rights Reserved
90
Confidential
MARKET ANALYSIS
Many traditional not-for-profit camps that operate on their own land
have fallen victim to the same economic phenomena that affected
their for-profit brethren. Although not-for-profit camps are typically
exempt from real estate taxes, they must still comply with a
complex web of governmental regulations and competing demands
for the real estate which they occupy. Moreover, they are often
partially or completely dependent on charitable contributions. After
the tragic events of September 11, 2001, donations too many
charities that operated camps declined, and these camps suffered
substantially. Many had no choice but to sell their land, discontinue
operations or sell their camp to better managed, not-for-profit or forprofit operators.
o Year-Round Use of Traditional Camps
As the fixed costs of operating a traditional camp have risen, many
owners and operators have sought to bolster their revenues and
profits by expanding their business into the off-season. According
to a recent survey, more than half of ACA accredited camps rent
their facilities to outside groups during the off-season. An
increasing number of traditional camps are winterizing some of their
facilities to make them suitable for year round rental.
In our faster-better-more culture, the notion of a vacation as time "off," as
pure getaway, seems almost quaint. Not surprisingly, many Americans are
using summer vacation time to pursue interests that are all but impossible
to fit into their packed daily routine -- like learning to cook a new type of
cuisine or whipping their bodies into shape at a fitness boot camp. These
interests and many more can be satisfied at a growing number of
immersive camps and workshops, dedicated to everything from en plein
air painting to, well, something a lot like a military boot camp.
Soccer camp is not just for kids anymore; in fact, in many sports, the
fastest growing segment of participants is among master’s athletes. It
makes sense; Little League, the mother of all kids' leagues in the U.S.,
was established in 1939, and it flourished in the post-War period. The kids
of those kids (not to mention some of those original kids as well, who
continue to compete in their 80's and 90's) are now running age-group
marathons, doing laps before dawn in masters swimming programs, and
learning to roll kayaks on glacier lakes. The first kids to experience the
"football" boom in America are even starting up adult and age-group
soccer leagues.

Elder Care
With our unique elder care facilities, families of our guest will come to stay
© Copyright The WellSpring Institute All Rights Reserved
91
Confidential
MARKET ANALYSIS
and participate in our activities while they visit with their older family
members.
US demand to grow 6.6% annually through 2011. Revenues for elder care
services in the US are expected to increase 6.6 percent per year to $26.4
billion in 2011. Advances will be driven largely by demographic changes.
Medical advances and trends toward healthier lifestyles are increasing the
life expectancy of all age groups and contributing to the growing number
of individuals in the older population segments. Such gains are
augmented by the large, post-World War II "baby boom" generation that
will be entering their retirement years. Growth will also stem from the
rising cost of providing care on a per capita basis. Additionally, advances
are spurred by the rising number of older adults who either do not have
family members who are able to care for them, or simply prefer using
professional care.
Further revenue gains will be restrained by limitations on government
reimbursements that have not generally kept pace with the rising cost of
providing care, a particular concern because a large number of older
adults rely on Medicare and Medicaid to pay for elder care services.
© Copyright The WellSpring Institute All Rights Reserved
92