The first snowflakes have finally fallen in the Denver metro area, with more in the forecast. That’s great news, and not just for those us who want to get in some good ski days—it’s good news for our economy. And, you know why:
Snow means water. And, not just for Colorado but for the western United States. Our snowfall supports areas whose GDPs combine to rank just between the fifth and sixth largest in the world. So, now when you’re shoveling this winter, you can smile the entire time.
It puts Coloradans to work. Our tourism and outdoor recreation industry employs 177,700 people—with an annual payroll of $6 billion.
Those visitors spend cash. In 2015, 77.7 million people visited Colorado—yeah, you read that correctly—over 77 MILLION visitors. They spent over $19 billion (yep, that’s with a B) and that delivered $1.13 billion in state and local taxes (up 7 percent from 2014). In Denver, a record 16.4 million tourists visited in 2015, spending $5 billion. So, we hope even more Coloradans will go out of their way to say hello to visitors, give them directions and ensure they know we love having them in our state.
Visitors remember their experiences. Data tells us that many company executives first came to Colorado on a trip—whether a conference or a vacation. That trip is often the catalyst to conversations about moving here. Now you see how important your interaction with a visitor is—it can deliver long-term economic benefits for our state.
Our airport is an economic driver. DEN’s economic impact is $26.3 billion a year, and it is critical to many of those visitors coming to our state. It serves us well, too. So, for those times when you find yourself needing or wanting to visit someplace else, we want to make that easier, too. We have a new partnership with IdentoGO to enroll in TSA Pre✓. They are taking enrollment on the road and bringing it to travelers like you in an RV set up to enroll folks quickly and conveniently. The RV will be at the Chamber the week of Dec. 12. You can set your appointment time to get enrolled just in time for a new business year. Get Pre✓
We love all our seasons in Colorado.
To winter we say: let it snow, let it snow, let it snow.
Kelly Brough is president and CEO of the Denver Metro Chamber of Commerce.
Today, the Metro Denver Economic Development Corporation (Metro Denver EDC) released the 11th edition of its Toward a More Competitive Colorado (TMCC) report. The annual benchmark study analyzes Colorado's strengths, challenges, and opportunities for future job growth and economic expansion.
First published in 2005, TMCC is the foremost effort to compare Colorado's competitive position against the other 49 states. The study is researched by the Metro Denver EDC's Chief Economist Patty Silverstein, along with Senior Economist David Hansen of Development Research Partners, and is presented in cooperation with Wells Fargo.
According to Silverstein, more than 10 years of data paints a broad picture of Colorado’s performance through periods of both economic expansion as well as economic downturns. Findings show that Colorado has emerged as a ‘destination state’ for both companies and workers.
“We’ve found that over this period that Colorado has excelled following two recessions, with considerable strength in economic performance and employment growth compared to other states and countries,” said Silverstein. “The state is a significant global competitor in attracting new industry, jobs, and investment.”
This year's report shows that Colorado is the No. 3 state for employment growth—at 3.5 percent—for the second straight year. The most dire year for job growth in the past 10 years was 2010, when the state ranked 40th.
Throughout TMCC’s history, innovation has stood out as another of Colorado’s major economic strengths. This year is no exception, with Colorado’s reputation as a hub for innovation even further validated. All 18 innovation measures reported as strengths, with the state tallying top 10 rankings in 15 measures. Further, since Colorado is now the location of a regional U.S. Patent and Trademark Office, business leaders expect innovation to position the state favorably for years to come.
"Innovation measures point to states that are poised for continued prosperity and growth,” explained Pam Reichert, Vice President of the Metro Denver EDC. “Colorado’s competitiveness in innovation is further enhanced by its focus on creating spaces and support systems for innovation through private- and public-sector platforms that provide training, mentorship, and entrees to venture capital.”
Another area where Colorado maintains a significant competitive advantage is in the health of its workforce, which is first for physical activity and also the second-most highly educated in the country (behind Massachusetts), further boosting Metro Denver's economic development brand: Energetic Bodies. Energetic Minds.
Additional strengths for Colorado:
TMCC also draws attention to areas that challenge Colorado’s competitiveness. Since its inception, the report has called out the threats faced by declining funding for higher education, with tuition costs skyrocketing to offset declining state support. In addition, this year’s findings show another disparity—that Colorado isn’t keeping pace in graduating sufficient numbers of students for key professions, including teachers, nurses, and engineering technicians.
Another of the state’s persistent challenges lies in its performance in key K-12 rankings. In 2014, Colorado generally ranked in the second or third quintile in the 16 data measures included in TMCC. With the race for talent growth becoming ever more competitive among the states, these modest results challenge Colorado’s ability to expand its 21st century workforce.
“We see Colorado’s performance in K-12 education as merely average,” explained Tom Clark, CEO of the Metro Denver EDC. “If we want to see continued economic growth in our state, we need to ask ourselves ‘is average ok for Colorado?’”
Although Colorado continues to garner national attention as one of the country’s most desirable places to live—especially among millennials—housing is becoming increasingly unaffordable, notes the study. The report recommends that the state find more avenues to provide affordable rental housing and pathways to first-time residential ownership in order to continue attracting millennial workers, a demographic vital to the future workforce. Currently, the Metro Denver EDC is leading a coalition of stakeholders evaluating the effects of construction defect laws and how such policies have brought the construction of condominiums—often the only purchase option for first-time homebuyers—to a near grinding halt in the region.
Throughout 11 years of TMCC research, another theme remains consistent:Colorado’s unbalanced tax system between state and local governments creates critical funding issues for infrastructure and education.
“We have a tax paradox in Colorado. Although we have the lowest state sales tax rate among the states that levy one, when both state and local sales tax rates are combined, Colorado actually has the eighth-worst tax structure in the United States,” explained Kelly Brough, President and CEO of the Denver Metro Chamber of Commerce.
“Colorado’s tax policies are dictated by a number of Constitutional amendments, making reform complex and difficult to achieve,” she said. “But thanks to the efforts of Building a Better Colorado—a grassroots effort bringing citizens and business together to address these challenges—reform might finally be on the horizon.”
Both the Executive Summary and Full Report can be viewed online.
Janet Fritz is the senior director of marketing and technology for the Metro Denver Economic Development Corporation.
This report was originally published to the Metro Denver Economic Development Corporation's website, you can view the full report here.
