EXECUTIVE UPDATE /May 9, 2005

Colorado Springs’ cost of living has dropped to 95.7% of the US average for 1st Quarter 2005, from 98.3% in 4th Quarter 2004, on the American Chamber of Commerce Researchers Association Cost of Living Index. Residential utilities in Colorado Springs remain competitively priced, at 80.4% of the national average, while housing costs are slightly under, at 98.0%. Transportation and healthcare exceed the national average, at 101.4% and 104.5% respectively, while grocery items and miscellaneous goods and services (comprising items such as fast food, basic clothing and leisure activities) are at 97.0% and 95.3% of the national average. The Index measures the after tax cost for a professional/managerial standard of living in 294 urban areas in North America.

A look at housing prices for 1st Quarter 2005:

San Jose	$794,450	A newly built home of approximately 2,400 sq.ft. with 3-bedrooms, 2 full baths, living room, dining room, one fireplace, utility room, fully finished basement and attached 2-car garage on an 8,000 sq.ft. lot.
Los Angeles	$725,000
Washington D.C.	$603,609
Las Vegas	$374,286
Seattle	$362,616
Denver	$304,011
Colorado Springs	$273,997
Phoenix	$246,754

Source: American Chamber of Commerce Research Association, 1st Quarter 2005

Local aerospace companies continue to expand. SI International recently broke ground on a new Colorado Springs campus south of Peterson Air Force Base. The company is projected to increase their existing workforce of 335 employees by approximately 100 people this year. The company has indicated that the number of local employees may continue to increase by another 200-300 jobs within the next three years. Defense contractor Scitor Corp. has announced plans to build a new office building in Patriot Park, located at the NW corner of Powers Boulevard and Platte Avenue. The anticipated increase in jobs for Scitor is said to be in the 30 to 50 range. SAIC, a San Diego based research and engineering company with 400 employees in Colorado Springs, said it will construct a two building office campus outside Peterson’s main gate. Some new jobs would be added but no numbers have yet been estimated by SAIC. Source: EDC and The Gazette
Attracting and retaining jobs is the City’s number one priority, according to a 2005 survey of 400 residents conducted by Talmey-Drake Research on behalf of the City of Colorado Springs. To see the full survey, go to www.springsgov.com.
A recent report by The World Bank, concluding that the global recovery has peaked, is supported by the findings of The McKinsey Global Survey of Business Executives. 9,300 Business people from 130 countries who participated in the survey revealed they have a positive view of the economic prospects of their countries and industries, but a significantly less positive view than they had a year ago. Global confidence has fallen by 11 percent since the first survey in January 2004. (Source: The McKinsey Quarterly; www.mckinseyquarterly.com)
Vietnam’s national government has approved tax breaks for high-tech firms and mapped out ambitious goals for training software engineers in the hopes of becoming the next India of the high-tech world. Ho Chi Minh City now has some 650 software companies that collectively employ 20,000 people. A handful does low-cost outsourcing for U.S. firms. Vietnamese software engineers typically earn $20,000 compared to $100,000 in the U.S. (Source: Silicon Valley; www.siliconvalley.com)
More companies will enlist workers to achieve political goals, encouraging them to be grassroot lobbyists on important issues. They’ll also let workers know how an election might affect business. Over 1000 firms are already doing this. Most of the companies use web sites to educate workers on business issues and help them contact members of Congress. Employers can get help setting up and running their web sites from the Business Industry Political Action Committee at www.bipac.org.
A graduate certificate in Homeland Defense and an undergraduate certificate in Homeland Security will be offered by the University of Colorado at Colorado Springs during June and August. Contact dsagen@uccs.edu for more information.
Pikes Peak Community College President, Joseph A. Garcia, was recently named President of the Year by the State Student Advisory Council. The SSAC, made up of elected student leaders from each of the colleges in the Colorado Community College System, serves as an advisory body to the State Board for Community Colleges and Occupational Education.
Arts on the Avenue, a celebration of local arts and music, will be held Friday, June 10, 6:30 to 9:00p.m., at 1305 North Cascade Avenue. Call (719) 489-1253 for more information.