EXECUTIVE UPDATE / January 13, 2006

Looking ahead for 2006, Colorado’s overall employment will grow 2.3% or 52,100 total jobs. This employment growth builds on the recovery that began during the first quarter of 2005. The outlook for income growth is brighter this year as the Colorado economy is forecast to outperform the U.S. economy in employment growth. Personal income is projected to increase by 6.8% in Colorado and 6.1% for the U.S. with per capita income expected to widen as annual averages will be $39,917 for Colorado and $36,635 for the nation. (Source: Colorado Business Review)
The U.S. economy will generate about 1.9 million new jobs this year after 2 million last year, as GDP growth downshifts to 3.3% from 3.7%, according to the Kiplinger Washington Editors. December’s hiring slowdown doesn’t signal a slump ahead. An increase of 108,000 jobs, half of what had been expected, followed a huge jump in November.
Colorado ranks 4th in economics. Strength in technology and business incubation continue to move Colorado higher among the national leaders for economic competitiveness, according to a report recently released by Suffolk University’s Beacon Hill Institute. (Source: The Gazette.)
Colorado Springs was recently recognized by the National League of Cities as a winner of the 2005 James C. Howland Award for Municipal Enrichment. The Gold Award was won by Colorado Springs for its Transportation Education plan, a two-phased plan that led to a successful ballot initiative to help fix growing transportation and infrastructure problems in the city. Click here for the full story.
Colorado Springs received a number of national rankings in 2005 that include: 5 star (top rating) Business Opportunity Metro; 3rd in the 2005 Best Cities for Relocating Families; 6th among smaller metro areas for creativity; 8th on Fast Magazine’s 10 Fastest Cities in Amercia; 8th among the nation’s 100 largest metro areas for business growth during the past four years; ranked in the top 10 for business growth during the past five years. 14th in Runner’s World Magazine; Intel Corporation ranked Colorado Springs 15th on their list of most unwired cities; 18th in Expansion Management's "America's 50 Hottest Cities" list for 2004; 19th in the America’s Most Literate Cities study; 19th on Farmers Insurance Group’s list of most secure places to live in America; 23rd on the 2004 Forbes Best Places for Business and Careers list; ranked 3rd fittest city in the country by Men’s Fitness magazine but slid in the 2006 ranking to 6th. For a more complete list of rankings, go to Colorado Springs Rankings.
Colorado Springs Utilities recent 6 percent increase for natural gas users is significantly less than the 41 percent increase projected nationwide by the U.S. Energy Information Administration. The typical small commercial customer will see an increase of $52 in their monthly bill based on use of 1,240 CCF per month. The typical large industrial customer will see an increase of $527 in their monthly bill based on natual gas use of 12,400 CCF per month. (Source: Colorado Springs Utilities, www.csu.org)
The homeland security database commissioned by the Colorado Institute of Technology can be accessed at www.coloradoit.org. The database contains academic, federal facility, and corporate listings; details research, products, and services available and can be used to find contacts and develop partnerships.
A More Competitive Colorado will have to pay closer attention to workforce issues, according to a report by Metro Denver Economic Development Corporation. As lower paying, lower skilled jobs become increasingly obsolete, the state must focus on maintaining its “knowledge-based economy”. This endeavor requires continued investments in the workforce. Rankings indicate that Colorado is frequently in the lower quartile for such investments. A number of trends are headed downward, that, if unchecked, pose potential long-term challenges to Colorado’s historically competitive place in job creation: 49th in state and local support for higher education; 32nd in high school graduates entering college within one year of graduation; 48th in higher education spending per capita; 37th in job growth in 2004; 26th in per student spending on K-12 education; 29th in high school graduation rates.
“The Young and Restless in a Knowledge Economy” was the subject of a recent report by CEOs for Cities. It was noted that young adults ages 25 to 34 are more likely to be Hispanic or of Asian descent than the baby boomers age group. It was suggested urban leaders insure that these more diverse young people can be comfortable in their cities. www.ceosforcities.org.
“Colorado Springs Economic Development - It’s Not Business as Usual” will be the topic of EDC CEO Mike Kazmierski’s speech at the January 26 EDC luncheon, to be held at the Cheyenne Mountain Resort. Call (719) 475-6455 for information and reservations or to register and pre-pay using your Visa, MasterCard or American Express, please click here.
Youth and Employment and Education Conference 2006 will be held February 10 at Pikes Peak Community College. Co-sponsored by the Pikes Peak Workforce Center Youth Council and PPCC, this event is designed to help youth, ages 14 to 21, prepare for their future. Workshops will be taught by local experts. www.ppwfc.org and click on Youth Zone.
For questions or comments regarding the Executive Update, please contact Julie Boswell at jboswell@csedc.org