Dear EDC Investors,
We have some amazing updates that we are excited to share with you this month. We are over the moon that the Biden administration announced that Space Command headquarters will remain in Colorado Springs. The decision will keep nearly 1,400 jobs, and $1 billion in economic impact in the region. The high concentration of the aerospace industry, and a pipeline of highly educated workers in the state were key factors in the decision. We are proud to have participated in the efforts to keep Space Command in Colorado. You can read more about the announcement through our press release.
We conducted two simultaneous recruitment trips in Southern California this month, thanks to our sponsor CORE Electric, combining 11 different Economic Development organizations across the region and meeting with 14 companies over two days. This trip has already led to an active project, dubbed Project Conductor, which replaces legacy materials in high-voltage electricity transmission lines with a conductor that doubles the lines’ capacity without the need to retrofit towers or other infrastructure. This represents a capital investment of $40 million and 400 jobs in the region!
The economic data continues to show positive signs despite the challenging environment in both Colorado and the U.S.:
- According to the annual tourism report by Dean Runyan Associates and Longwoods International that recently came out, the Colorado tourism industry in 2022 reported $26.1 billion in travel spending. The state welcomed 90 million visitors in the year, 25 percent more than in 2021. The Metro Denver area accounted for almost 64 percent of the tourism spending and 70 percent of the growth over 2021 levels.
- The first estimate for second quarter GDP growth came in at an annual rate of 2.4 percent, well above expectations given that the Federal Funds Rate is now 5.25-5.50 percent, its highest level since early 2001. Consumer spending on services and business investment largely drove the quarterly increase. The IMF estimated that the U.S. economy would grow at a rate of 1.6 percent in 2023, but through the first two quarters of 2023 economic activity rose by 2.0 and 2.4 percent.
- Colorado fell from 4th to 11th on CNBCs list of “Top States for Business 2023” ranking. The state fell most notably in the workforce (from 1st to 9th), economy (from 11th to 32nd), and education (from 11th to 21st) categories. Colorado did improve its score in the infrastructure and access to capital categories, jumping up to 10th and 12th from 16th and 22nd, respectively.
In case you missed it, the EDC has welcomed our newest team member, Daniel Ryley. Daniel was previously the executive director for the Arvada Economic Development Association and joins us as the Vice President of Corporate Attraction. He brings two decades of hands-on development experience to keep the Metro Denver area economically competitive.
If you have any questions or comments about the monthly economic indicators or would like to receive additional information, please do not hesitate to reach out to our Chief Economist, Meredith Moon.
Thank you for your ongoing support, and we look forward to working with you to promote a strong and economically healthy Metro Denver.
Raymond H. Gonzales
President of Metro Denver EDC
Executive Vice President of Denver Metro Chamber of Commerce
Monthly Economic Indicators