ARCHIVED  February 1, 1997

Publisher’s Notebook: Don’t miss warning signals Region must work to cure economic-development ailments

Northern Colorado often compares its economic performance and statistics with other regions of the state, at times finding itself lacking when stacked up next to high-tech hotbeds such as Boulder County.
True, growth here outpaces the state as a whole, but other factors, such as the level of education and per capita income, lag.
But how do Larimer and Weld counties compare to similar regions around the country? Quite well in some areas but with important elements of concern, according to a just-completed study by BBC Research & Consulting of Denver. BBC’s Colorado Economic Development Strategic Planning Interim Report for the state compares Northern Colorado with Austin, Texas; Eugene, Ore.; and Provo, Utah.
Other competitors include Reno, Nev.; Albuquerque, N.M., Phoenix; Bend, Ore.; and Colorado Springs.
The report raised some concerns regarding these competitors, such as the perception that Northern Colorado can’t compete with Oregon on personal-property-tax rates, an important issue for high-tech manufacturers. Additionally, some local business leaders expressed worries to BBC that competitors would raid the local area for high-tech manufacturers, exploiting the region’s tax disadvantages.
Affordable housing, a labor shortage and a slow-growth movement in Larimer County are listed as major obstacles to economic development. For the eastern part of the region, the report pointed to a “desirability disadvantage relative to areas with closer access to the mountains.” That comes across as a bit of mountain snobbery to someone who lives in that “eastern area.”
The report cites several other areas of concern regarding Larimer and Weld counties. “Recent small layoffs and the decrease in inquiries about region are of concern as a portent that the slowdown may be beginning,” the report states. It also concludes that present rates of job growth are “unsustainable in the long run” and notes the difference in Weld County’s aggressive seeking of growth and Larimer County’s more conservative approach.
But those concerns come against a backdrop that includes many positives. Northern Colorado’s population base is slightly larger than that of Austin, Eugene or Provo, and the percentage of employment in the manufacturing sector stands at 13.9, compared with 10.6 percent in Austin, 13.1 percent in Eugene and 11.5 percent in Provo.
Looking with this state’s borders, Northern Colorado rates as the most-concentrated manufacturing center in the state, with 13.9 percent of employment in manufacturing compared with 7.7 percent statewide.
But the 2.1 percent local growth rate in manufacturing from 1989 to 1994 compares favorably only with that of Eugene, which saw a 1.5 percent decline. Austin’s manufacturing employment jumped 6.4 percent during that period, while Provo’s gained 3.5 percent.
Northern Colorado outperformed its competitors in average earnings by employment sector in agriculture, mining, construction, manufacturing, wholesale trade and government while lagging in transportation, retail trade, FIRE (finance, insurance and real estate) and services.
But take a look at this statistic, which might come as a surprise to some: Larimer and Weld counties count just 13.4 percent of their population as being below the poverty level, compared with 15.3 percent in Austin, 14.5 percent in Eugene and 15.4 percent in Provo.
The Northern Front Range also compares favorably in high-school and college graduation rates, with numbers in the same ballpark as its competitors.
This region slams the other cities in business ownership rates, with 16.8 locally owned firms per 100 labor-force participants. That compares with 14.5 in Austin, 16.3 in Eugene and 14.8 in Provo.
What’s the bottom line? Simply that Larimer and Weld counties face serious problems that must be addressed in order for them to not only recruit outside companies if desired but also to keep those large employers that are here. Attempts at progress are being made in labor-force and affordable-housing issues, but other initiatives are needed in the area of personal property taxes and continued diversification of the local economy.
The BBC report points to some significant advantages held by Northern Colorado over its main Western competitors. But the warning signals are loud and clear.Christopher Wood can be reached at (970) 221-5400, (970) 356-1683, (800) 440-3506 or via e-mail at ncbr@aol.com.P.S. Anyone wanting a copy of the report, which includes analyses of other parts of the state, can call me at one of the numbers above, and I’ll be happy to provide one.
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Northern Colorado often compares its economic performance and statistics with other regions of the state, at times finding itself lacking when stacked up next to high-tech hotbeds such as Boulder County.
True, growth here outpaces the state as a whole, but other factors, such as the level of education and per capita income, lag.
But how do Larimer and Weld counties compare to similar regions around the country? Quite well in some areas but with important elements of concern, according to a just-completed study by BBC Research & Consulting of Denver. BBC’s Colorado Economic Development Strategic Planning Interim Report for…

Christopher Wood
Christopher Wood is editor and publisher of BizWest, a regional business journal covering Boulder, Broomfield, Larimer and Weld counties. Wood co-founded the Northern Colorado Business Report in 1995 and served as publisher of the Boulder County Business Report until the two publications were merged to form BizWest in 2014. From 1990 to 1995, Wood served as reporter and managing editor of the Denver Business Journal. He is a Marine Corps veteran and a graduate of the University of Colorado Boulder. He has won numerous awards from the Colorado Press Association, Society of Professional Journalists and the Alliance of Area Business Publishers.
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