One-on-One interview with Rich Werner, president and CEO of Upstate Colorado Economic Development

Each month, BizWest asks a business leader to participate in a question and answer feature to help shed light on a business topic, an industry or add insight to a field of endeavor. This month, BizWest asked Rich Werner, president and CEO of Upstate Colorado Economic Development, to address the manufacturing sector in Northern Colorado. Werner was among the presenters at the recent NoCo Manufacturing Partnership trade show.

BizWest: Manufacturing in Northern Colorado appears to be on the upswing. To what do you attribute the recent growth in this sector?

Rich Werner: The growth in the manufacturing sector is partially based on our growing population and the needs and opportunity to service the growing demands for goods and services.  The growing population also serves as a conduit for talent to fill positions in companies that are strategically located here in Weld and Northern Colorado.  Small and large manufacturers alike are locating here to service industrial development along the Front Range, surrounding states and parts of the Midwest and Western United States.

BW: Like many industries, labor shortages or at least what has been called a “skills gap” has been cited as a headwind for manufacturing. What are two or three solutions that you know about happening right now in the region?

Werner: Northern Colorado has regional assets that put us ahead of the curve as it relates to developing tangible solutions to support the employment ecosystem. NOCOM manufacturing has its well established Manufacturing Rocks program introducing middle schoolers to manufacturing facilities across the area. Weld County Bright Futures provides a workforce stipend to every student who graduates from a Weld County high school to use for higher education courses or certificate programs and in Fort Collins there’s a talent recruitment program to support our local industries.

BW: As an economic developer, what types of manufacturing are getting the most attention from site selectors and others looking to locate companies in this region?

Werner: Projects come to Upstate directly from a variety of sources that are as diverse as the industries we work with. On the manufacturing side, pharmaceutical, food processing, and heavy manufacturing that support some of our larger industries in the region are currently the most common.

BW: Is warehouse space and industrial real estate sufficient in the region to meet the demand of companies wanting to grow or to relocate to the region? If not, what can be done about it?

Werner: Industrial vacancy rates are around 2.4 percent in the region so insufficient would be an understatement.  It is incredibly difficult to cater to manufacturing companies looking for existing buildings when there aren’t any.  We work with our communities to encourage local policy that facilitates development. And we ask our clients to identify options such as build-to-suit scenarios.  For companies looking to locate to the area, it’s about workforce, cost of doing business and speed to market.

BW: Are you seeing impact from recent U.S. tariffs on the manufacturing sector?

Werner: It depends on the market since so much of the current policy focuses on targeted geography or products. As an example, the local market has had to deal with an increase in steel prices that first led to overstocking orders and then a 25 percent increase in costs just on the speculation of tariffs alone.  These costs flow through building cost increases and the burden gets carried down the line to the end user.

BW: What other issues should business people understand as they consider the economic impact of manufacturing in the region?

Werner: I think the most important thing for business people to understand is not an issue but rather the opportunity. Northern Colorado has an amazing collective of companies and resources in place to support manufacturing in the region. Upstate Colorado regularly has the opportunity to connect these resources to help existing companies expand and new companies flourish through the support of groups and institutions like NOCOM, the Weld/Larimer Workforce centers, Bright Futures, our local school systems and higher education institutions that are all working to support the individual growth needs of our manufacturing community.

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