EXECUTIVE UPDATE / July 7, 2004

Progressive Insurance plans to expand its presence in Colorado Springs, creating its first significant Information Technology presence outside its Cleveland headquarters. While the expansion will provide Progressive with IT redundancy, the primary objective is to tap into the Colorado Springs labor market and to establish a location that will be attractive to new college graduates. Progressive plans to recruit, hire and train approximately 250 IT staff over the next three to four years. Progressive’s new Colorado Springs campus can accommodate over 2,000 employees. If the company fully staffs the campus it would make Progressive one of the largest private employers in the region.
MCI recently announced it plans to close its Colorado Springs telemarketing center and lay off 650 employees by August 24. Company officials blamed the cuts on the 9-month old nationwide do-not-call list, which has more than 62 million telephone numbers that telemarketers are forbidden to call. EDC marketing staff will be publicizing its availability to national site location consultants, developers and call center prospects.
Companies undertaking a major expansion, hiring new employees, changing their current business strategy or adding new technology in order to stay competitive may be eligible for a training grant. Colorado First and Existing Industry customized training grants have been increased from $400 to $800 per person. For more information, contact Jaki Taggart at Pikes Peak Community College (719) 540-7235.
Colorado Springs key competitive strengths and challenges were recently outlined in a study for the Colorado Springs Airport Business Park prepared by Deloitte Consulting LLP and Synergy Real Estate Corporation. Strengths include availability of semi- and highly-skilled production and professional labor, exceptional quality of life, favorable community utility infrastructure and costs, particularly electricity, and low natural disaster risk compared to many regions of the country. Key competitive challenges are transportation access and distance to centers of market and supply, absence of a larger, research-oriented university, limited state-level incentives to facilitate investment and expansion, and international airport access.
Employment growth slowed in June, as the economy created 112,000 jobs last month. Economists surveyed by Briefing.com had forecast a gain of 250,000 jobs. Manufacturing and construction jobs dropped after these sectors had pulled out of a slump and started hiring in recent months. Anthony Chan, Chief Economist for Banc One, said he didn’t think the economic recovery is in danger. (Source: CNNMoney.)
The City’s infrastructure is deteriorating and unfunded road needs are growing reported City Manager Lorne Kramer at the June 29 EDC luncheon. As a result, a Rural Transportation Authority (RTA) initiative to fund such improvements through a 1-cent sales tax will be on the ballot this fall. Full text of the speech is available at www.coloradosprings.org.
TABOR is severely impacting community colleges, according to Pikes Peak Community College President, Joe Garcia. For the first time since 1967, Colorado Community College System resident students are paying a majority of their individual educational costs, 52% in 2004 versus the national average of 25-30%, meaning that accessibility is being pushed to the limit at community colleges state-wide.
EDC’s Beach Party at The Broadmoor will be July 31. The 17th Annual Tournament of Teams will be August 9 at Pine Creek Golf Club. For reservations and registration call (719) 475-6461.
The Colorado Festival of World Theatre Education Program is offering free seminars to the public, July 10 through 17. For more information on the education program click here. For program information and tickets to performances during festival week go to www.ticketmaster.com, and search on keyword “Colorado Fest World Theatre”.
Increasing gas prices have impacted the ability of some Meals on Wheels volunteer drivers, many of whom are on a fixed income, to continue to support the program. If you or your company is interested in volunteering for or sponsoring this vital service, please contact Diane Stevens, COO, Silver Key Senior Services (719) 632-1521.
Volunteers and Officials are being sought for the State Games of America to be held in Colorado Springs July 28-31. Applications should be made to the Colorado Springs Sports Corp., (719) 634-7333.