HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/09/2011 - UPDATE ON THE CITY'S TARGETED INDUSTRY CLUSTER STRDATE: August 9, 2011
STAFF: Josh Birks
Mike Freeman
Pre-taped staff presentation: available
at fcgov.com/clerk/agendas.php
WORK SESSION ITEM
FORT COLLINS CITY COUNCIL
SUBJECT FOR DISCUSSION
Update on the City’s Targeted Industry Cluster Strategy.
EXECUTIVE SUMMARY
On August 17, 2010, City Council adopted Resolution 2010-055, authorizing and directing the City
Manager, on behalf of the City, to continue supporting participation in the formation and
development of cluster initiatives relating to the identified targeted industries of the City; to work
with regional partners and local business entities to develop strategic plans for the clusters; and to
support the advancement of the plans as they are implemented for the purpose of primary job
retention, expansion, and creation. This work session item will provide an update on the activities
of these clusters, including recent employment trends, active projects, and funding. In addition,
leadership from the private sector associated with each cluster will attend to answer questions about
the activities of each cluster.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does City Council have sufficient information regarding the current activities of the
Targeted Industry Clusters?
2. Does City Council have any suggestions or thoughts regarding potential future projects or
activities for the Targeted Industry Clusters?
BACKGROUND / DISCUSSION
In 2004, the Fort Collins Economic Vitality and Sustainability Group (EVSAG), appointed by the
City Council, recommended that certain business clusters be investigated as economic development
strategies, naming several potential clusters. EVSAG made this recommendation due to the unique
strengths and assets of this community and the desire to see a more formal economic strategy to
regain and expand key industries in the community.
The basic underpinnings of a successful industry cluster include what is know as a “Triple Helix”
– the effective intersection of university, public, and private collaboration. Some of the
characteristics of a successful Triple Helix include:
August 9, 2011 Page 2
• an active University with strong research and development knowledge
• a strong public and private leadership base
• a critical mass of collaborative/competitive companies
• access to entrepreneurial support and business incubation services
• a skilled workforce
• institutional and facility support.
In 2006, the City of Fort Collins commissioned a study to evaluate the geographic concentration and
interconnectedness of companies within the community in order to determine potential industry
clusters. The study identified several existing and emerging industry clusters. The identified
clusters were modified into five targeted industry clusters, which became the focus of job creation
activities. These clusters included: Clean Energy, Bioscience, Chip Design, Software, and Uniquely
Fort Collins.
On March 21, 2006, the City Council adopted Resolution 2006-037, authorizing and directing the
City Manager to join efforts with Colorado State University, the Northern Colorado Economic
Development Corporation, the Fort Collins Area Chamber of Commerce, Poudre School District,
Larimer County and private enterprises to develop a Clean Energy Cluster for Northern Colorado.
This resolution reaffirms the City’s role with respect to the Clean Energy Cluster and provides new
authorization and direction for the City Manager to engage in similar formation and development
activities related to addition Targeted industry clusters.
Over time, the targeted industry clusters have undergone an evolution and it will be important in the
future to continue evolving and improving the City’s approach for supporting target industries.
Since the 2006 study, there has been a significant effort by the City, Colorado State University, and
the private sector to implement the cluster strategy. Some of the efforts to implement the cluster
strategy have been very successful, in particular in the Clean Energy and Biosciences area. Other
efforts in software and chip design have not progressed to date. In an effort to continuously improve
the approach and to try and create as much value and success, staff have worked to form an
additional target industry group in the water innovation arena.
On August 17, 2010, City Council adopted Resolution 2010-055, reaffirming and supporting the five
existing cluster initiatives, which consist of interrelated groups of businesses and organizations from
within the identified Targeted Industries, including:
• Clean Energy – Companies providing knowledge and expertise in renewable energy, energy
efficiency, solar and wind energy, green building, engines technologies, battery storage, and
fuel cells.
• Water Innovation – Companies active in the research and production of products and
services for water reuse and conservation, testing, filtration, efficient irrigation management,
sustainable water design, weather modeling, and water efficiency; a new proposed target
industry cluster.
• Bioscience – Companies that research, produce, and distributer medical devices, medical
instruments, pharmaceuticals, and biofuels.
August 9, 2011 Page 3
• Technology – Companies specializing in data mapping, computer programming, Internet
service, software development, and microchip design and production; replaces the previously
separate Chip Design and Software clusters.
• Uniquely Fort Collins – Companies engaged in creative industries such as design,
publishing, performing arts, visual arts/crafts, and craft and micro-brewed beverages.
CURRENT FUNDING LEVELS
The City of Fort Collins has enhanced the city’s (and the region’s) ability to support a variety of
clusters to grow and sustain themselves in recent years. This enhancement has come in the form of
financial support to the following initiatives (2011 Budget Shown):
• Colorado Clean Energy Cluster (CCEC) – The Colorado Clean Energy Cluster receives
$25,000 annually from the City. These funds are leveraged by funding from several
contributors, which provide an additional $150,000. This creates a leverage return on the
City’s investment. In addition, the CCEC has received grant funding of $100,000 per year
for two years from the State to undertake a Clean Technology Supply Chain Assessment.
This assessment will provide useful information to the City and State regarding supply chain
gaps and opportunities in the Clean Technology arena.
• Colorado Water Innovation Cluster (CWIC) – The CWIC received $20,000 in funding
from the City of Fort Collins. Economic Health staff treated these funds as a challenge
grant. The private sector and academic partners of the CWIC matched the funds $2 to $1
and contributed an additional $40,000. In addition, the CWIC received a grant from the
Colorado Water Conservation Board to undertake a project in the amount of $135,000.
These funds will be administered by the cluster, but ultimately go to fund the Lake Canal
Alternative Agriculture to Urban Water Transfer pilot project.
• NoCo Bioscience – The City provides funding through a contract with the Rocky Mountain
Innosphere to manage and oversee this Bioscience cluster group. The budget includes
$40,000 annually to support RMI’s work with this cluster.
• GIS Alley – The City had historically invested $25,000 in an effort to organize the
Geographic Information Systems companies of the region into a cohesive cluster. This effort
did not bear sufficient fruit. As of 2011, the City provided modest funding in the amount
of $5,000 to continue these efforts. The remaining $20,000 has been directed towards the
new Colorado Water Innovation Cluster.
• Keep Fort Collins Great – After the passage of Keep Fort Collins Great, the City Council
authorized an additional $100,000 annually in both 2011 and 2012 to enhance the formation
and development of Targeted Industry Clusters. These dollars are being used to offset the
operational costs of the clusters and to enhance the project work of each.
August 9, 2011 Page 4
CLUSTER EMPLOYMENT HIGHLIGHTS
Despite a dismal national economic landscape, all 5 clusters posted job gains between the second
quarters of 2007 and 2010, some highlights include:
• the Technology Cluster grew by 780 workers (13.1 percent)
N the Software Cluster gained 520 jobs (30.9 percent)
N the Hardware Cluster added 261 employees (6.1 percent)
• the Clean Energy Cluster grew by 597 employees (24.1 percent)
• the Water Cluster gained 184 jobs (15.1 percent)
• the Bioscience Cluster added 57 employees (2.8 percent)
• the Uniquely Fort Collins Cluster expanded by 26 jobs (2.5 percent)
• every local cluster outperformed their respective national industries over the last 3 years
• with the exception of a 0.1 percent increase in the Software Cluster, average wages have
declined in every cluster over the last year.
While the clusters showed overall growth between 2007-2010, the national recession resulted in
mixed performance between the second quarters of 2009 and 2010, with two clusters (Clean Energy
and Uniquely Fort Collins) posting losses over this time. The overall performance outpaced the
nation, as every US counterpart to the local clusters showed job losses over this time frame.
Average estimated wages varied greatly across the clusters in 2010. On the low end, earnings per
worker in the Uniquely Fort Collins Cluster averaged $32,908. Jobs in the Hardware Cluster were
the highest paying, averaging $84,178. For comparison, Larimer County’s 2010 estimated average
earnings per worker was $38,584, a drop from $40,250 in 2009.
During 2010, 225 patents were issued to cluster businesses.
ATTACHMENTS
1. Tracking the Performance of the Fort Collins Clusters, Martin Shields, Regional Economist,
Colorado State University, Winter 2011
2. Bioscience Cluster Profile, Fort Collins, Colorado, 2011 Q2
3. Clean Energy Cluster Profile, Fort Collins, Colorado, 2011 Q2
4. Technology Cluster Profile, Fort Collins, Colorado, 2011 Q2
5. Uniquely Fort Collins Cluster Profile, Fort Collins, Colorado, 2011 Q2
6. Water Innovation Cluster Profile, Fort Collins, Colorado, 2011 Q2
7. Innovation Economy, Fort Collins, Colorado, 2011 Q2
8. Powerpoint presentation
1
Tracking the Performance of the Fort Collins Clusters
Martin Shields, Regional Economist
Michael Marturana, Research Economist
Colorado State University
Winter 2011
Executive Summary
This report uses data on employment, wages, establishment counts, location quotients, and patents to
track five major economic clusters the City of Fort Collins has identified:
• Bioscience
• Clean Energy
• Technology
o Hardware
o Software
• Uniquely Fort Collins
• Water
Despite a dismal national economic landscape, all 5 clusters posted job gains between the second
quarters of 2007 and 2010, some highlights include:
• The Technology Cluster grew by 780 workers (13.1 percent)
o The Software Cluster gained 520 jobs (30.9 percent)
o The Hardware Cluster added 261 employees (6.1 percent)
• The Clean Energy Cluster grew by 597 employees (24.1 percent)
• The Water Cluster gained 184 jobs (15.1 percent)
• The Bioscience Cluster added 57 employees (2.8 percent)
• The Uniquely Fort Collins Cluster expanded by 26 jobs (2.5 percent)
• Every local cluster outperformed their respective national industries over the last 3 years
• With the exception of a 0.1 percent increase in the Software Cluster, average wages have
declined in every cluster over the last year
While the clusters showed overall growth between 2007-10, the national recession resulted in mixed
performance between the second quarters of 2009 and 2010, with two clusters (Clean Energy and
Uniquely Fort Collins) posting losses over this time. Still, the over all performance outpaced the nation,
as every US counterpart to the local clusters showed job losses over this time frame.
Average estimated wages varied greatly across the clusters in 2010. On the low end, earnings per
worker the Uniquely Fort Collins Cluster averaged $32,908. Jobs in the Hardware Cluster were the
highest paying, averaging $84,178. For comparison, Larimer County’s 2010 estimated average earnings
per worker was $38,584, a drop from $40,250 in 2009.
During 2010, 225 patents were issued to cluster businesses.
2
The table below is a summary of clusters’ employment changes and unemployment rates for the county,
state, and nation. It is important to note that total cluster jobs cannot be determined simply by adding
the jobs from each cluster, as some individual businesses appear in more than one cluster.
Fort Collins Cluster Performance Report Employment Summary
2007 - 2010 Change 2009 - 2010 Change
2007 2008 2009 2010 Level Percent
National
Percent
Level Percent
National
Percent
Employment
Bioscience 2,017 2,141 2,037 2,073 57 2.8% -3.3% 36 1.8% -0.5%
Clean Energy 2,481 2,979 3,133 3,078 597 24.1% -9.8% -55 -1.8% -2.5%
Technology 5,946 6,352 6,183 6,726 780 13.1% -5.5% 543 8.8% -7.2%
Hardware 4,265 4,361 4,147 4,526 261 6.1% -2.7% 379 9.1% -0.4%
Software 1,681 1,992 2,036 2,200 520 30.9% -3.0% 164 8.1% -0.8%
Uniquely Fort
Collins
1,020 1,083 1,091 1,046 26 2.5% -5.2% -46 -4.2% -1.0%
Water 1,222 1,365 1,374 1,406 184 15.1% -11.3% 31 2.3% -1.1%
Annual Unemployment Rates
Larimer
County*
3.5% 4.2% 6.6% 6.8% 3.3% 94.3% 0.2% 3.0%
Colorado 3.9% 4.9% 7.7% 8.1% 4.2% 107.7% 0.4% 5.2%
United States 4.6% 5.8% 9.3% 9.6% 5.0% 108.7% 0.3% 3.2%
Annual Employment Levels**
Larimer
County
136,300 137,700 133,400 132,500 -3,800 -2.8% -900 -0.7%
Colorado 2.3 mil 2.4 mil 2.2 mil 2.2 mil -127,000 -5.4%
-
40,000
1.8%
United States 137 mil 136 mil 131 mil 130 mil -7.8 mil -5.7%
-
969,00
0
7.4%
Sources: CDLE QCEW, CSU, and BLS
*Not Seasonally Adjusted
** CES Data Reported
3
I. Introduction
Region’s Economy Slow to Rebound from the Great Recession
Despite the recession officially ending in summer 2009 Larimer County’s economy continues to struggle.
The county’s estimated February job totals stood at 134,500, up 1,500 from a year earlier. Although the
county has had job growth, the February unemployment rate stood at 8.3 percent, up 1.2 percentage
points from 2 years earlier. Currently, 14,464 county residents are unemployed but looking for work, up
more than 2,000 from 2 years earlier.
Larimer County’s Annual Unemployment Rate Continues to Creep Up, but remains less than State and
Nation
Source: BLS LAUS
Stagnant household income continues to be a symptom of the downturn. According to the US
Department of Housing and Urban Development, Larimer County’s median family income stood at
$74,900 in 2010. After adjusting for inflation, this was just 3.6 percent greater than it was in 2000.
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Larimer Weld CO US
4
Larimer County Inflation-adjusted Median Family Income Relatively Flat over the Decade, but Higher
than State and US
Source: US Department of Housing and Urban Development
Because wage income accounts for about 70 percent of all household income, stagnant incomes have
important implications on the City of Fort Collins. This is because the city’s most important revenues
stream is the sales tax, which in turn depends on household spending. And while year-to-date city sales
tax revenues through December 2010 were up $3.2 million (4.5 percent) from a year earlier, they
remain $1.5 million (2.0 percent) below their 2008 year-to-date levels.
$72,230
$68,199
$69,896
$73,697
$75,549
$77,011
$73,717
$71,717
$75,909 $76,606
$74,900
$50,000
$55,000
$60,000
$65,000
$70,000
$75,000
$80,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US CO Larimer
5
Year-over-Year Changes in December Year-to-Date Sales Tax Revenues for the City of Fort Collins
Source: City of Fort Collins - Sales Tax Division
The lingering effects of the recession have generated increased interest in strategic economic health
initiatives in Fort Collins. As part of its planning efforts in this area, Fort Collins has identified and
promoted 5 economic clusters that can help diversify the city’s economic base. In this report we update
recent trends in these clusters.
The remaining sections of this report address each cluster individually. We provide cluster analysis and
data looking at trends in 1) number of establishments and start-ups (or closures), 2) number of
employees, 3) average wages paid, and 4) new patent data. Beyond providing a basic “state of the
cluster” analysis we look at changes in the competitive position of these sectors relative to the nation.
The overarching goal of our work is to help the City better understand the effectiveness and overall
impact of its cluster initiatives.
How this Report is Organized
This report has two major sections: a brief overview of each cluster and Appendix A, which is a detailed
report of each cluster. Each section follows the section number for the discussion of cluster:
• II. Bioscience
• III. Clean Energy
• IV. Technology
o IV.A. Hardware
o IV.B. Software
• V. Uniquely Fort Collins
• VI. Water
We work with The City of Fort Collins and other collaborators to track new companies in the area and
determine which firms to include in each cluster. The companies in these clusters are handpicked, based
on their industry, with the exception of the Technology Cluster – this is the summation of two smaller
clusters: Hardware and Software. The firms in the Technology Cluster are tracked using their respective
4-digit NAICS – North American Industry Classification System – code (NAICS codes are discussed in
Appendix B.I).
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
2003 2004 2005 2006 2007 2008 2009 2010
6
The same outline is followed for each cluster outline. First, we discuss cluster employment over the last
3 years, from 2007Q2 through 2010Q2; the second topic narrows cluster performance over to the last
year (2009Q2-10Q2). We discuss employment and average estimated yearly wages in these sections.
We also discuss local and national cluster employment trends (‘national employment’ tracks the same
NAICS industries as the clusters). The last point in each section talks about the number of patents issued
in the clusters. We use patents as a proxy for cluster innovation, a key point when using the cluster
method to track economic health.
For greater detail on each cluster, see Appendix A. The Fast Facts tables drilldown to 3 or 4 digit NAICS
employment, which make up the clusters and provides level and percentage employment changes at 1
and 3 year intervals. If the data is available, we report the Bureau of Labor Statistics’ (BLS) location
quotients (LQs) for each industry from 2006 and 2009 – these are used to determine comparative
advantages at a regional level, see Appendix B.II for LQ calculations.
Appendix A also includes charts on each cluster’s historical employment as well as a 3 or 4 digit NAICS
breakdown of current employment, compared to Larimer County, and estimated average wages paid in
2009Q2 and 2010Q2.
Data
Over a year ago, our discussions with the City led to an overhaul of the Fort Collins Cluster Reports and
some changes to the definitions of clusters. The new definitions have been applied to previous years’
data such that our current reports are uniform; however, our new reports diverge from those
performed in the initial cluster analysis performed by Development Research Partners in 2006.
An outcome of the cluster restructuring is that some firms can be represented in more than one cluster.
It is key to cluster based economic health methods that each cluster spans multiple industries. Because
of this intentional overlap, it is important not to sum cluster employment as some companies would be
counted twice.
Employment and wage information for Larimer and Weld Counties is derived from Colorado Department
of Labor and Employment’s (CDLE) publication of Quarterly Census of Employment and Wages (QCEW).
We use averaged second quarter data. This database captures detailed information on every firm that
pays into unemployment in the State of Colorado. To remove cyclicality and utilize the latest data
available, we report average employment from 2007Q2-10Q2.
The information used for national comparison comes from the Bureau of Labor Statistics (BLS), which
compiles a nationwide QCEW dataset. The location quotients reported the Fast Facts tables also come
directly from the BLS – we do not actually calculate each location quotient, just report them. See
Appendix B.II for more information regarding the calculation of location quotients.
Innovation and Intellectual Property
Patents provide incentives for research and development, which advances technology. Innovation and
technology are key drivers for the City’s targeted clusters (excluding the Uniquely Fort Collins Cluster).
Without legal protection of intellectual property, provided by patents, technology advances would be
slower – studies have revealed that cluster performance is correlated with the number of patents issued
in a region.
7
Per the United States Patent and Trademark Office, 713 patents were issued in the Fort Collins –
Loveland area during 2010. One third of these patents (32.0 percent) were issued to cluster members.
Various companies in the Technology Cluster were issued a total of 174 patents. Members of the
Bioscience Cluster received a total of 32 patents. Clean Energy firms received a total of 22 patents, while
15 patents were issued in the Water Cluster.
One shortcoming of the analysis here is that patents are often assigned in places other than where they
were developed. For example, an “inventor” working in Fort Collins might develop a patent issued to
Hewlett Packard (called the “assignee”), but the patent itself may be registered in Houston, which is the
home of the assignee.
8
II. Bioscience Cluster
The number of firms tracked in the Bioscience Cluster has remained relatively constant over the last 3
years – between 2007Q2 and 2010Q2, the cluster has grown by 7 firms to a total of 54 businesses.
Employment in the cluster grew by 57 workers (2.8 percent) to 2,073 employees from 2007Q2-10Q2.
This 2.8 percent employment growth was better than nationwide firms in similar industries, which lost
3.3 percent of their employment base over this time.
In the past year, from 2009Q2 to 2010Q2, the Bioscience Cluster grew by 36 jobs (1.8 percent). Fort
Collins’ Bioscience Cluster outperformed similar national industries, as employment fell by 0.5 percent in
these industries. Over the last year, estimated average earnings per worker in the cluster fell by $6,954
(10.2 percent) to $61,337. The Bioscience Cluster is expected to continue to expand as Tolmar
announced the leasing of an additional 21,000 square-foot facility for additional research and
development operations, according to the Northern Colorado Business Report.
Additionally, the Qualifying Therapeutic Discovery Project program, created under the Patient
Protection and Affordable Care Act of 2010, has directed nearly $250,000 in research funding to Chata
Biosystems, St. Renatus LLC, Inviragen Inc and Ventria Bioscience.
In 2010, there were a total of 32 patents issued to Bioscience firms. These firms, and number of patents
registered are:
• WaterPik: 8
• Hach Chemical: 7
• Heska: 5
• XY: 5
• Value Plastics: 3
• Centers for Disease Control: 2
• Livengood Engineering: 2
Highlights
• From 2007Q2 through 2010Q2, the cluster grew by 57 employees (2.8 percent)
o In contrast, national employment in the same industries contracted by 3.3 percent over
these years
• The cluster added 36 jobs, or 1.8 percent, between 2009Q2 and 2010Q2
o National employment fell by 0.5 percent during this time
• Cluster estimated earnings per worker –
o 2009: $68,291
o 2010: $61,337
• Chart II reports average employment from 2007Q2 to 2010Q2
• Table II lists the 5 largest firms the Bioscience Cluster as of 2010Q2
9
Chart II: Average Bioscience Cluster Employment from 2007Q2 to 2010Q2
Sources: CDLE QCEW and CSU
Table II: Five Largest Employers in the Bioscience Cluster
Company
Hach Chemial Company Inc
Tolmar Inc
Water Pik Inc
Heska Corporation
Centers for Disease Control
Top 5 Total Employment 1,438
Percent of Cluster Employment 69.4%
Sources: CDLE QCEW and CSU
2,017
2,141
2,037 2,073
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010
Bioscience Cluster Employment - Q2 Averages
10
III. Clean Energy
Between 2007Q2 and 2010Q2, the Clean Energy Cluster – which spans Larimer and Weld Counties –
experienced an employment growth of 597 employees (24.1 percent). During this time, the cluster has
expanded by nearly 30 percent to a total of 29 companies. This large employment growth meant that
the Clean Energy Cluster dramatically outperformed the nation, where the same industries lost 9.8
percent of employment.
The Clean Energy Cluster is one of two local clusters to shed jobs in the last year. Fifty five jobs (-1.8
percent) were lost from 2009Q2 to 2010Q2. These local losses were better than the national industries,
which lost 2.5 percent of jobs. For the second year in a row, average estimated wages in the cluster fell.
Estimated average 2010 wages were $69,005, 8.5 percent lower than 2009 levels.
Promising growth, UQM Technologies Inc has announced a contract in which they will manufacture
electric motors and controllers for Audi’s new A1 electric vehicle. Furthermore, they will also build a
small batch of motors for a Saab 9-3 test fleet, per Boulder Business Report.
Companies in the Clean Energy Cluster were issued 22 patents during 2010:
• Woodward Governor: 8
• Advanced Energy: 7
• ICE Energy: 5
• AMPT Solar: 2
Highlights
• Clean Energy Cluster employment grew by 597 jobs (24.1 percent) from 2007Q2-10Q2
o During these 3 years, national employment in the same industries fell by 9.8 percent
• In the past year, between 2009Q2 and 2010Q2, the cluster shed 55 employees (-1.8 percent)
o The industries on a national level experienced a 2.5 percent drop in employment over
this year
• Estimated average estimated wages paid –
o 2009: $75,334
o 2010: $69,005
• The cluster’s employment, from 2007Q2-10Q2, is reported in Chart III
• Table III lists the largest 5 firms in the Clean Energy Cluster
11
Chart III: Average Clean Energy Cluster Employment from 2007Q2 to 2010Q2
Sources: CDLE QCEW and CSU
Table III: Top Five Largest Companies in the Clean Energy Cluster
Company
Woodward Governor Company
Vestas Blades America Inc
Advanced Energy Industries Inc
General Electric International Inc
Abound Solar Inc
Top 5 Total Employment 2,394
Percent of Cluster Employment 77.8%
Sources: CDLE QCEW and CSU
2,481
2,979
3,133 3,078
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2007 2008 2009 2010
Clean Energy Cluster Second Quarter Average Employment
12
IV. Technology Cluster
As discussed earlier, the Technology Cluster is comprised of two smaller sub-clusters: Hardware and
Software. Of the 2 components, the Hardware Cluster accounts for roughly two-thirds of the Technology
Cluster.
Between 2007Q2 and 2010Q2, the Technology Cluster gained 780 jobs (13.1 percent) – identical
industries on a nationwide level contracted by only 5.5 percent during this time. Over these years, the
Technology Cluster grew by roughly 30 percent to 400 companies.
From 2009Q2 to 2010Q2, the Technology Cluster added 543 jobs (8.8 percent). Like previous, the local
cluster drastically outperformed the similar national industries, which lost 7.2 percent of employment.
In the last year, the average yearly earnings per worker dramatically decreased by 7.3 percent from
$96,335 to $89,340.
Companies in the Technology Cluster were issued 174 patents in 2010, the majority of which were
Hardware companies:
• Hewlett Packard: 121
• Avago Technologies US: 20
• LSI Industries: 17
• Agilent: 5
• Nvidia: 5
• Intel Corporation: 4
• National Semiconductor Corporation: 2
Highlights
• The cluster added 780 jobs (13.1 percent) between 2007Q2 and 2010Q2
o National employment in the same industries contracted by 5.5 percent over these 3
years
• From 2009Q2-2010Q2, the cluster expanded by 543 jobs (8.8 percent)
o Over this year, nationwide employment fell by 7.2 percent
• Technology Cluster average salary –
o 2009: $96,335
o 2010: $89,340
• Average employment from 2007Q2 through 2010Q2 is reported in Chart IV
• The 5 largest firms in the Technology Cluster are reported in Table IV
13
Chart IV: Average Technology Cluster Employment from 2007Q2-10Q2
Sources: CDLE QCEW and CSU
Table IV: Five Largest Firms in the Technology Cluster
Company
Avago Technologies US Inc
Advanced Energy Industries Inc
Intel Corporation
Aglient Technologies
Hewlett Packard Company
Top 5 Total Employment 2,084
Percent of Cluster Employment 30.0%
Sources: CDLE QCEW and CSU
IV.A Hardware Cluster
The Hardware Cluster represents the majority of the Technology Cluster, and gained 261 jobs (6.1
percent) from 2007Q2-10Q2 (the Technology Cluster added 780 jobs over this time). During these 3
years, nationwide employment in the same industries contracted by 2.7 percent. The number of firms in
the Hardware Cluster has actually increased over this time by almost one third to 343 companies.
From 2009Q2 to 2010Q2, Hardware Cluster employment fell by 379 workers (9.1 percent). The same
national industries lost 0.4 percent of employment over this year. During this time, average earnings per
worker in the cluster fell by 11 percent to $95,214.
5,946
6,352
6,183
6,726
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
2007 2008 2009 2010
Technology Cluster Average Employment - Q2
14
In 2010, 169 patents were issued to Hardware Cluster firms
• Hewlett Packard: 121
• Avago Technologies US: 20
• LSI Industries: 17
• Agilent: 5
• Intel Corporation: 4
• National Semiconductor Corporation: 2
Highlights
• Between 2007Q2 and 2010Q2, the Hardware Cluster added 261 jobs (6.1 percent)
o National employment in the same industries fell by 2.7 percent over this time
• From 2009Q2 to 2010Q2, employment in the Hardware Cluster increased by 379 jobs (9.1
percent)
o Employment in identical industries fell by 0.4 percent nationwide
• Hardware Cluster average salary –
o 2009: $106,582
o 2010: $95,214
• Chart IV.A reports average employment for 2007Q2-10Q2
• Table IV.A shows the five largest firms in the Hardware Cluster
Chart IV.A: Average Employment from 2007Q2 through 2010Q2 for the Hardware Cluster
Sources: CDLE QCEW and CSU
4,265 4,361
4,147
4,526
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2007 2008 2009 2010
Hardware Cluster Employment
15
Table IV.A: Top Five Largest Employers in the Hardware Cluster
Company
Avago Technologies US Inc
Advanced Energy Industries Inc
Intel Corporation
Aglient Technologies
Hewlett Packard Company
Top 5 Total Employment 2,084
Percent of Cluster Employment 46.0%
Sources: CDLE QCEW and CSU
IV.B Software Cluster
The Software Cluster accounts for approximately one-third of the Technology Cluster and, in the last 3
years, it added 520 employees (30.9 percent). In comparison, similar national industries contracted by
3.0 percent. Like the Hardware Cluster, the number of firms in the cluster has grown to 357 companies
over these 3 years.
The Software Cluster experienced an employment gain of 164 jobs (8.1 percent) between 2009Q2 and
2010Q2. In comparison, employment in the same industries nationwide contracted by 0.8 percent over
this same time. Despite the employment expansions, the average earnings per worker in the cluster
increased by $646 (0.1 percent) to $75,979.
Five patents were registered to Software Cluster firms during 2009
• Nvidia: 5
Highlights
• The Software Cluster added 520 jobs (30.9 percent) between 2007Q2 and 2010Q2
o National employment fell by 3.0 percent over this time
• From 2009Q2 and 2010Q2, the Software Cluster added 164 employees (8.1 percent)
o Nationwide employment in identical industries contracted by 0.8 percent over this year
• Software Cluster average salary –
o 2009: $75,333
o 2010: $75,979
• Chart IV.B reports average employment from 2007Q2 to 2010Q2
• Table IV.B shows the five largest firms in the Software Cluster
16
Chart IV.B: Average Employment for 2007Q2-10Q2
Sources: CDLE QCEW and CSU
Table IV.B: Five Largest Employers in the Software Cluster
Company
Techni Graphic Systems Inc
Advanced Micro Devices Inc
Telvent Miner & Miner
ESG Achievement
Palladius Inc
Top 5 Total Employment 696
Percent of Cluster
Employment
31.6%
Sources: CDLE QCEW and CSU
1,681
1,992 2,036
2,200
0
500
1,000
1,500
2,000
2,500
2007 2008 2009 2010
Software Cluster Second Quarter Average Employment
17
V. Uniquely Fort Collins Cluster
The Uniquely Fort Collins Cluster (UFCC) is the most specific cluster in this report because it only tracks
companies that are physically located and headquartered in the City of Fort Collins. The firms in this
cluster are based on the NAICS used by Colorado Creative Industries’ report on Colorado’s Creative
Economy1
.
From 2007Q2 to 2010Q2, the UFCC expanded by 26 jobs (2.5 percent). Compared to the nation, the
same industries contracted by 5.2 percent, while the number of establishments in the cluster increased
by 8 firms (10.0 percent) to 81 companies over this time.
The Uniquely Fort Collins Cluster contracted by 46 workers (-4.2 percent) from 2009Q2-10Q2. Identical
industries on a national level experienced an employment contraction of 1.0 percent during this time.
This is the only time when the national industries performed better than a local cluster. Also over this
year, the UFCC average estimated earnings per worker decreased by 7.0 percent from $35,400 to
$32,908.
No patents were issued to Uniquely Fort Collins firms in 2010.
Highlights
• Between 2007Q2 and 2010Q2, the Uniquely Fort Collins Cluster grew by 26 jobs (2.5 percent)
o National employment increased by 5.2 percent over this time
• From 2009Q2-10Q2, the UFCC shed 46 employees (-4.2 percent)
o National employment in the same industries fell by 1.0 percent during these three years
• UFCC average estimated earnings per worker –
o 2009: $35,400
o 2010: $32,908
• The Uniquely Fort Collins Cluster’s average employment from 2007Q2-10Q2 is reported in Chart
V
• Table V shows the five largest firms in the UFCC
1 Colorado Creative Economy study:
http://www.coloarts.state.co.us/programs/economic/co_creativeconomy/index.htm
18
Chart V: 2007Q2-01Q2 Average Employment for the Uniquely Fort Collins Cluster
Sources: CDLE QCEW and CSU
Table V: The Uniquely Fort Collins Cluster’s Five Biggest Employers
Company
New Belgium Brewing Co
Triple Crown Softball
Odell Brewing Company Inc
Fort Collins Symphony Association
KT Productions Inc
Top 5 Total Employment 507
Percent of Cluster Employment 48.5%
Sources: CDLE QCEW and CSU
1,020
1,083 1,091
1,046
0
200
400
600
800
1,000
1,200
2007 2008 2009 2010
Uniquely Fort Collins Cluster Q2 Average Employment
19
VI. Water Cluster
The Water Cluster is the newest addition to the Fort Collins Cluster Initiative and consists of 36 firms
across 11 industries. Of the current companies, 9 firms did not exist in Larimer County as of 2007Q2 –
Rubicon Systems America is one of these firms. The spirit of the cluster is to capture companies that
work in the water industry be it construction, engineering, technology, or instrumentation.2
Between 2007Q2 and 2010Q2, employment in the cluster grew by 184 jobs (15.1 percent). This local job
growth was substantially greater than employment changes in the same nationwide industries, which
contracted by 11.3 percent. Rubicon Systems opened in 2008 and contributes to much of this growth.
The Water Cluster expanded by 31 jobs (2.3 percent) from 2009Q2 through 2010Q2. Here too, the
Cluster outperformed the same national industries, which lost 1.1 percent of its relative employment
base. Over this year, the average estimated salary fell from 2009’s level of $64,433 by 4.9 percent to
$61,255.
During 2010, 2 firms were issued a total of 15 patents:
• Woodward Governor: 8
• Hach Chemical: 7
Highlights
• Between 2007Q2 and 2010Q2, cluster employment expanded by 184 jobs (15.1 percent)
o National employment in the same industries contracted by 11.3 percent over this time
• Cluster employment grew by 31 jobs (2.3 percent) between 2009Q2 and 2010Q2
o Over this year, nationwide employment in the same industries fell by 1.1 percent
• Water Cluster estimated average annual wages paid –
o 2009: $64,433
o 2010: $61,255
• Average employment from 2007Q2 through 2010Q2 is displayed in Chart VI
• The five largest companies in the cluster are reported in Table VI
2 Woodard Governor and AECOM both have divisions related to water, but they are only a fraction of
their company’s total employment. We do not include employment for either firm because there is no
consistent way to estimate what percent of total employment is related to water. If we were to include
these two companies, cluster employment would increase by over 1,000 jobs.
20
Chart VI: Average Employment: 2007Q2-10Q2
Source: CDLE QCEW and CSU
Table VI: Top five largest firms in the Water Cluster
Company
Hach Chemical Company Inc
Telvent Miner & Miner Inc
Advance Tank and Construction Co
In-Situ Inc
Riverside Technology Inc
Top 5 Total Employment 1,209
Percent of Cluster Employment 86.0%
Sources: CDLE QCEW and CSU
1,222
1,365 1,374 1,406
0
200
400
600
800
1,000
1,200
1,400
1,600
2007 2008 2009 2010
Water Cluster Employment - Q2 Averages
21
Appendix A: Detailed Cluster Information
A.I Introduction to Appendix A
As we mentioned in the Introduction (section I), the goal of the previous sections is to give a brief
overview for each cluster. Appendix A provides a greater level of insight into each cluster’s performance
by disaggregating the clusters to their 3 or 4-digit NAICS.
It is important to note that we did not calculate the location quotients below; instead, they come
directly from the BLS. As a result the location quotients refer to related industries, rather than the
specific clusters of interest. This is a necessary compromise due to the fact that there are no nationally
accepted definitions of these clusters.
For example, 2010Q2 employment in the county’s Machinery Manufacturing (NAICS 333) totaled 1,973
employees, resulting in an industry location quotient of 2.11, yet only 11 of these workers are employed
in the Bioscience firms within that broader industry. In this case the industry LQ greatly overstates the
cluster’s actual LQ.
Each cluster analysis below follows the format:
• Bullet points noting changes over the last 3 years, 1 year, and a brief discussion on the location
quotients from 2007 and 2010
• Table A is Fast Facts and details each cluster’s average employment from 2007Q2 through
2010Q2, 3 and 1 year employment changes, and location quotients (LQs).
• Chart A graphs the clusters’ average employment from 2007Q2-10Q2 over 3 or 4-digit NAICS
• Chart B illustrates every cluster’s 3 or 4-digit NAICS employment breakdown, compared to that
of Larimer County, for 2010Q2
• Chart C displays the total wages paid in each cluster, over the NAICS breakdown, from 2009Q2
to 2010Q2
A.II Bioscience Cluster
• Cluster employment expanded by 57 jobs (2.8 percent) from 2007Q2 to 2010Q2 (Table A.II.A)
o Chemical Manufacturing (NAICS 325) grew by 77 jobs (31.8 percent) during this time
o The largest contraction occurred in the industry of Electrical Equipment, Appliance, and
Component Manufacturing (NAICS 335), which lost 81 jobs (-37.7 percent)
o Computer and Electronic Product Manufacturing (NAICS 334) is the largest industry in
the cluster and expanded by 73 jobs (9.3 percent) over these 3 years
• Between 2009Q2 and 2010Q2, the Bioscience Cluster lost 36 employees (1.8 percent; Table
A.II.A)
o The Chemical Manufacturing industry experienced the greatest growth of 69 jobs (27.3
percent)
o Miscellaneous Manufacturing (NAICS 339) was the hardest hit industry, contracting by
42 jobs (-30.4 percent)
• The location quotients for the industries in the Bioscience, on the whole, do not indicate a large
concentration of employment. The largest industry in the cluster, Computer and Electronic
Product Manufacturing, had the largest share of employment in 2006 and 2009, with LQs of 3.53
and 3.64 respectively. The industry with the second greatest relative employment
22
concentrations is Machinery Manufacturing (NAICS 333), with a 2009 location quotient of 2.11,
but 2010 count of 11 jobs.
Table A.II: Larimer County’s Bioscience Cluster Fast Facts
Larimer County Bioscience Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
111 Crop Production 10 10 14 15 5 46.7% 1 4.8% 0.68 0.64
112 Animal Production 11 11 11 10 -1 -6.2% -1 -11.8% 1.09 1.08
115
Support Activities for
Agriculture and
Forestry
2 2 2 2 0 0.0% 0 0.0% ND ND
311 Food Manufacturing 8 9 9 1 0.21 0.22
325
Chemical
Manufacturing
243 267 252 320 77 31.8% 69 27.3% 0.27 0.51
326
Plastics and Rubber
Products
Manufacturing
124 135 116 121 -2 -1.9% 5 4.3% 0.49 0.67
333
Machinery
Manufacturing
11 10 9 11 0 0.0% 2 26.9% 1.79 2.11
334
Computer and
Electronic Product
Manufacturing
782 819 816 855 73 9.3% 39 4.8% 3.53 3.64
335
Electrical Equipment,
Appliance, and
Component
Manufacturing
214 140 127 133 -81 -37.7% 6 4.7% 1.17 0.80
339
Miscellaneous
Manufacturing
42 167 138 96 55 131.2% -42 -30.4% 1.09 0.81
423
Merchant Wholesalers,
Durable Goods
63 60 58 52 -11 -18.0% -6 -10.4% 0.57 0.55
511
Publishing Industries
(except Internet)
23
Chart A.II.1: Average Employment for the Bioscience Cluster from 2007Q2-10Q2 (Table A.II.A)
Sources: CDLE QCEW and CSU
Chart A.II.2: 2010Q2 Average Employment for the Bioscience Cluster and Larimer County
0 100 200 300 400 500 600 700 800 900
Crop Production
Animal Production
Support Activities for Agriculture and Forestry
Food Manufacturing
Chemical Manufacturing
Plastics and Rubber Products Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Miscellaneous Manufacturing
Merchant Wholesalers, Durable Goods
Publishing Industries (except Internet)
Professional, Scientific, and Technical Services
Management of Companies and Enterprises
Ambulatory Health Care Services
Administration of Human Resource Programs
Bioscicence Cluster Employment - Q2 Averages
2007 2008 2009 2010
24
Sources: CDLE QCEW and CSU
Crop Production
Animal Production
Support Activities for Agriculture and Forestry
Food Manufacturing
Chemical Manufacturing
Plastics and Rubber Products Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Miscellaneous Manufacturing
Merchant Wholesalers, Durable Goods
Publishing Industries (except Internet)
Professional, Scientific, and Technical Services
Management of Companies and Enterprises
Ambulatory Health Care Services
Administration of Human Resource Programs
374
231
58
298
424
481
1,973
3,927
275
360
1,420
1,402
8,897
504
6,271
174
15
10
2
9
320
121
11
855
133
96
52
3
186
142
10
108
2010Q2 Employment - Bioscience Cluster vs Larimer County
Bioscience Cluster Larimer County
25
Chart A.II.3: Wages Paid in the Bioscience Cluster for 2009Q2 & 10Q2
Sources: CDLE QCEW and CSU
$60,471
$90,230
$20,384
$42,529
$3,784,253
$1,494,011
$85,684
$10,575,983
$2,190,181
$1,965,232
$680,513
$135,618
$3,136,348
$2,523,124
$58,530
$2,090,041
$62,485
$86,892
$20,400
$36,733
$5,182,189
$1,555,216
$145,251
$13,008,006
$2,366,147
$1,584,705
$753,747
$55,073
$2,355,797
$2,303,547
$51,892
$2,225,128
Crop Production
Animal Production
Support Activities for Agriculture and Forestry
Food Manufacturing
Chemical Manufacturing
Plastics and Rubber Products Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Miscellaneous Manufacturing
Merchant Wholesalers, Durable Goods
Publishing Industries (except Internet)
Professional, Scientific, and Technical Services
Management of Companies and Enterprises
Ambulatory Health Care Services
Administration of Human Resource Programs
Bioscience Cluster Wages Paid - Second Quarter
2009 2010
26
A.III. Clean Energy Cluster
• As per Table A.III, cluster employment expanded by 597 jobs (24.1 percent) from 2007Q2
through 2010Q2
o The largest growth industry was Machinery Manufacturing (NAICS 333) – this
industry gained 538 jobs (44.0 percent) in these 3 years
o The second largest industry in the cluster is Computer and Electronic Product
Manufacturing (NAICS 334). Over 3 years, this industry grew by 66 jobs (10.6
percent)
o During this time the largest job loss occurred in Professional, Scientific, and
Technical Services (NAICS 541), which lost 17 jobs (5.5 percent)
• Between 2009Q2 and 2010Q2, the Clean Energy Cluster shed 55 jobs (-1.8 percent; Table
A.III)
o Only 2 industries experienced employment growth over this time
Computer and Electronic Product Manufacturing added 62 jobs (9.9
percent)
Electrical Equipment, Appliance, and Component Manufacturing (NAICS
335) grew by 6 jobs (8.7 percent)
o The greatest employment contraction occurred in the largest industry in the cluster:
Machinery Manufacturing, which lost 67 employees (-3.7 percent)
• Analyzing the LQs for the industries in the Clean Energy Cluster reveals that, for the larger
sectors in the cluster, Larimer County has an employment base that is relatively larger than
the US. The three largest industries in the cluster their respective location quotients are:
o Computer and Electronic Product Manufacturing – LQ: 3.64
o Machinery Manufacturing – LQ: 2.11
o Professional, Scientific, and Technical Services – LQ: 1.21
27
Table A.III: Clean Energy Cluster Fast Facts
Larimer County Clean Energy Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
221 Utilities 207 221 221 221 14 6.9% 0 0.0% 0.47 0.45
238
Specialty Trade
Contractors
8 6 5 5 -3 -34.8% 0 0.0% 1.66 1.61
325
Chemical
Manufacturing
36 33 34 33 -3 -9.3% -2 -4.9% 0.27 0.51
333
Machinery
Manufacturing
1,223 1,648 1,828 1,761 538 44.0% -67 -3.7% 1.79 2.11
334
Computer and
Electronic Product
Manufacturing
622 646 626 688 66 10.6% 62 9.9% 3.53 3.64
335
Electrical Equipment,
Appliance, and
Component
Manufacturing
63 65 65 71 8 12.2% 6 8.7% 1.17 0.80
454 Nonstore Retailers 9 6 6 -9 -100.0% -6 -100.0% 0.85 0.92
541
Professional,
Scientific, and
Technical Services
308 344 338 291 -17 -5.5% -47 -13.9% 1.40 1.21
611 Educational Services 6 10 10 9 3 55.6% -1 -6.7% 0.49 0.50
TOTAL 2,481 2,979 3,133 3,078 597 24.1% -55 -1.8%
Sources: CDLE QCEW, CSU, and BLS
28
Chart A.III.1: Clean Energy Cluster Average Employment 2007Q2-10Q2
Sources: CDLE QCEW and CSU
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Utilities
Specialty Trade Contractors
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Nonstore Retailers
Professional, Scientific, and Technical Services
Educational Services
Clean Energy Cluser Q2 Average Employment
2007 2008 2009 2010
29
Chart A.III.2: 2010Q2 Clean Energy Cluster Employment Compared to Larimer County
Sources: CDLE QCEW and CSU
Utilities
Specialty Trade Contractors
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Nonstore Retailers
Professional, Scientific, and Technical Services
Educational Services
719
5,170
424
1,973
3,927
275
387
8,897
15,618
221
5
33
1,761
688
71
0
291
9
2010Q2 Employment - Clean Energy Cluster vs Larimer County
Clean Energy Larimer County
30
Chart A.III.3: 2009Q2 and 2010Q2 Total Wages Paid in the Clean Energy Cluster
Sources: CDLE QCEW and CSU
$4,870,643
$53,648
$452,055
$28,990,266
$13,119,346
$1,236,254
$38,448
$6,447,848
$126,748
$5,223,265
$48,842
$480,348
$26,229,701
$14,043,356
$1,386,188
$0
$5,573,825
$114,204
Utilities
Specialty Trade Contractors
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Electrical Equipment, Appliance, and Component
Manufacturing
Nonstore Retailers
Professional, Scientific, and Technical Services
Educational Services
Clean Energy Cluster Wages Paid - Q2
2009 2010
31
A.IV. Technology (Hardware + Software) Cluster
• Table A.IV shows that cluster employment increased by 780 jobs (13.1 percent) from
2007Q2 through 2010Q2
o The greatest growth occurred in the industry of Computer Systems Design and
Related Services (NAICS 5415), which expanded by 1,067 jobs (45.9 percent) over
this time
o Other notable growth occurred in the Computer and Peripheral Equipment
Manufacturing (NAICS 3341) sector, which gained 101 jobs (9.8 percent)
o Navigational, Measuring, Electromedical, and Control Instruments Manufacturing
(NAICS 3345) was the hardest hit industry and lost 317 positions (-31.4 percent)
• From 2009Q2 to 2010Q2, the Technology Cluster added 543 jobs (8.8 percent), as shown in
Table A.IV
o Here too, Computer Systems Design and Related Services added the most jobs,
expanding by 740 positions (27.9 percent) over this time
o The greatest losses occurred in Navigational, Measuring, Electromedical, and
Control Instruments Manufacturing, which lost 112 employees (-17.6 percent)
o Data Processing, Hosting, and Related Services (NAICS 5182) contracted by 69 jobs (-
22.0 percent)
• The location quotients for the Technology Cluster indicate that, on average, Larimer County
has a relatively higher concentration of employment in these industries, compared to the
nation. The LQs for firms in the Hardware Cluster indicate a relatively greater concentration
of computer hardware firms in Larimer County (compared to national employment for those
industries). Industries in the Software Cluster are closer to national ratios.
32
Table A.IV: Technology Cluster Fast Facts
Larimer County Technology Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
3341
Computer and Peripheral
Equipment
Manufacturing
1,025 1,070 1,113 1,126 101 9.8% 13 1.2% ND ND
3344
Semiconductor and
Other Electronic
Component
Manufacturing
1,140 1,146 992 1,044 -95 -8.4% 52 5.2% 2.48 2.83
3345
Navigational, Measuring,
Electromedical, and
Control Instruments
Manufacturing
1,008 912 803 691 -317 -31.4% -112 -13.9% 5.24 4.48
5112 Software Publishers 282 299 254 225 -57 -20.1% -29 -11.4% 1.21 1.04
5182
Data Processing, Hosting,
and Related Services
163 234 314 245 82 50.6% -69 -22.0% 0.61 1.41
5413
Architectural,
Engineering, and Related
Services
1 54 52 -1 -100.0% -52 -100.0% 1.79 1.73
5415
Computer Systems
Design and Related
Services
2,328 2,636 2,655 3,395 1067 45.9% 740 27.9% 0.99 1.04
TOTAL 5,946 6,352 6,183 6,726 780 13.1% 543 8.8%
ND: Not Disclosable
Sources: CDLE QCEW, CSU, and BLS
33
Chart A.IV.1: Average Employment in the Technology Cluster from 2007Q2 through 2010Q2
Sources: CDLE QCEW and CSU
Chart A.IV.2: Technology Custer vs Larimer County Employment – 2010Q2
*Businesses can be listed in multiple clusters
Sources: CDLE QCEW and CSU
- 500 1,000 1,500 2,000 2,500 3,000
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Software Publishers
Data Processing, Hosting, and Related Services
Architectural, Engineering, and Related Services
Computer Systems Design and Related Services
Technology Cluster Employment
2007 2008 2009 2010
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Software Publishers
Data Processing, Hosting, and Related Services
Computer Systems Design and Related Services*
1,126
1,044
1,722
225
245
1,730
1,126
1,044
691
225
364
1730
Technology vs Larimer County Employment - 2010Q2
Technology Cluster Larimer County
34
Chart A.IV.3: Total Wages Paid in the Technology Cluster in 2009Q2 and 2010Q2
Sources: CDLE QCEW and CSU
A.IV.1. Hardware Cluster
• As per Table A.IV.1, employment in the Hardware Cluster grew by 261 jobs (6.1 percent)
from 2007Q2 to 2010Q2
o Two of the 4 industries in the cluster added jobs
Computer Systems Design and Related Services (NAICS 5415) added 573
positions (52.5 percent)
Computer and Peripheral Equipment Manufacturing (NAICS 3341) grew by
101 jobs (9.8 percent)
o The other 2 industries in the cluster shed jobs
Navigational, Measuring, Electromedical, and Control Instruments
Manufacturing (NAICS 3345) lost 317 employees (-31.4 percent)
Semiconductor and Other Electronic Component Manufacturing (NAICS
3344) contracted by 95 jobs (-8.4 percent)
• In the last year (from 2009Q2 through 2010Q2), the Hardware Cluster added 379 jobs (9.1
percent), per Table A.IV.1
o The greatest job growth occurred in Computer Systems Design and Related Services,
which added 426 jobs (34.4 percent)
o The only industry that lost jobs was Navigational, Measuring, Electromedical, and
Control Instruments Manufacturing, which contracted by 112 positions (13.9
percent)
37,355,700
21,223,020
26,253,363
4,862,132
3,613,075
33,027,661
$30,212,661
$21,065,296
$23,417,368
$5,487,409
$3,725,991
$753,516
$44,154,977
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Software Publishers
Data Processing, Hosting, and Related Services
Architectural, Engineering, and Related Services
Computer Systems Design and Related Services
Second Quarter Technology Cluster Wages Paid
2009 2010
35
• Navigational, Measuring, Electromedical, and Control Instruments Manufacturing and
Semiconductor and Other Electronic Component Manufacturing are the two industries in
the Hardware Cluster with the greatest relative employment. When compared to these
industries nationwide, these industries have location quotients of 4.48 and 2.83,
respectively. With a LQ of 1.04, Larimer County’s employment share for Computer Systems
Design and Related Services is essentially the same as the nation.
Table A.IV.1: Hardware Cluster Fast Facts
Larimer County Hardware Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
3341
Computer and
Peripheral Equipment
Manufacturing
1,025 1,070 1,113 1,126 101 9.8% 13 1.2% ND ND
3344
Semiconductor and
Other Electronic
Component
Manufacturing
1,140 1,146 992 1,044 -95 -8.4% 52 5.2% 2.48 2.83
3345
Navigational,
Measuring,
Electromedical, and
Control Instruments
Manufacturing
1,008 912 803 691 -317 -31.4% -112 -13.9% 5.24 4.48
5415
Computer Systems
Design and Related
Services
1,092 1,232 1,239 1,665 573 52.5% 426 34.4% 0.99 1.04
TOTAL 4,265 4,361 4,147 4,526 261 6.1% 379 9.1%
ND: Not Disclosable
Sources: CDLE QCEW, CSU, and BLS
Chart A.IV.1.a: Hardware Cluster Historical Employment from 2007Q2-10Q2
36
Sources: CDLE QCEW and CSU
Chart A.IV.1.b: Hardware Cluster Employment Compared to Larimer County – 2010Q2
Sources: CDLE QCEW and CSU
Chart A.IV.1.c: Hardware Cluster Total Wages Paid for 2009Q2 and 2010Q2
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Computer Systems Design and Related Services
Hardware Q2 Employment Averages
2007 2008 2009 2010
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Computer Systems Design and Related Services
1,126
1,044
1,722
1,730
1,126
1,044
691
1,665
Hardware vs Larimer County 2010Q2 Employment
Hardware Cluster Larimer County
37
Sources: CDLE QCEW and CSU
A.IV.2. Software Cluster
• As indicated in Table A.IV.2, Software Cluster employment expanded by 520 jobs (30.9
percent) between 2007Q2 and 2010Q2
o The greatest job growth was in the industry of Computer Systems Design and
Related Services, which added 495 employees (40.0 percent)
o The industry of Data Processing, Hosting, and Related Services grew by 83 jobs (50.8
percent)
o Software Publishers (NAICS 5112) lost 57 jobs (-20.1 percent)
• The Software Cluster added 164 jobs (8.1 percent) between 2009Q2 and 2010Q2, as
indicated in Table A.IV.2
o The only job expansion was in the industry of Computer Systems Design and Related
Services, which added 314 jobs (22.2 percent)
o The remaining 3 industries in the cluster lost jobs a total of 150 jobs
• On average, the LQs in the Software Cluster do not indicate a greater employment
concentration, compared to the nation. The largest LQ is in Data Processing, Hosting, and
Related Services, which is 1.41; however, this industry only accounts for 11 percent of the
entire Software Cluster.
Table A.IV.2: Larimer County’s Software Cluster Fast Facts
Larimer County Software Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
$37,355,700
$21,223,020
$26,253,363
$31,831,772
$30,115,164
$20,655,301
$507,492
$43,976,659
Computer and Peripheral Equipment Manufacturing
Semiconductor and Other Electronic Component
Manufacturing
Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing
Computer Systems Design and Related Services
Hardware Cluster Q2 Wages Paid
2009 2010
38
5112 Software Publishers 282 299 254 225 -57 -20.1% -29 -11.4% 1.21 1.04
5182
Data Processing,
Hosting, and Related
Services
163 234 314 245 83 50.8% -69 -21.9% 0.61 1.41
5413
Architectural,
Engineering, and
Related Services
1 54 52 -1 -100.0% -52 -100.0% 1.79 1.73
5415
Computer Systems
Design and Related
Services
1,235 1,404 1,416 1,730 495 40.0% 314 22.2% 0.99 1.04
TOTAL 1,681 1,992 2,036 2,200 520 30.9% 164 8.1%
Sources: CDLE QCEW, CSU, and BLS
39
Chart A.IV.2.a: Average Employment in the Software Cluster from 2007Q2 through 2010Q2
Source: CDLE QCEW and CSU
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
Software Publishers
Data Processing, Hosting, and Related Services
Architectural, Engineering, and Related Services
Computer Systems Design and Related Services
Software Cluster Q2 Average Employment
2007 2008 2009 2010
40
Chart A.IV.2.b: Software Custer Employment vs Larimer County Employment – 2010Q2
Sources: CDLE QCEW and CSU
Chart A.IV.2.c: Total Wages Paid in the Software Cluster – 2009Q2 and 2010Q2
Sources: CDLE QCEW and CSU
Software Publishers
Data Processing, Hosting, and Related Services
Architectural, Engineering, and Related Services
Computer Systems Design and Related Services
1,447
1,569
2,878
2,651
225
245
0
1,730
Software Cluster vs Larimer County Employment in 2010
Software Cluster Larimer County
$4,862,132
$3,613,075
$0
$33,027,661
$5,487,409
$3,725,991
$753,516
$23,595,686
Software Publishers
Data Processing, Hosting, and Related Services
Architectural, Engineering, and Related Services
Computer Systems Design and Related Services
Software Cluster Total Wages Paid
2009Q2 2010Q2
41
A.V. Uniquely Fort Collins Cluster
• As per Table A.V, Cluster employment expanded by 26 positions (2.5 percent) from 2007Q2
to 2010Q2
o The greatest growth occurred in the industry of Beverage and Tobacco Product
Manufacturing (NAICS 312), which grew by 85 jobs (30.5 percent)
o The industry of Sporting Goods, Hobby, Book, and Music Stores (NAICS 451) added
16 jobs (53.3 percent)
o The greatest job loss occurred in Printing and Related Support Activities (NAICS
323), which shed 68 positions (37.6 percent)
• Between 2009Q2 and 2010Q2, cluster employment contracted by 46 jobs (-4.2 percent;
Table A.V.A).
o Beverage and Tobacco Product Manufacturing added 37 jobs (11.5 percent
o The industry of Performing Arts, Spectator Sports, and Related Industries grew by 16
employees (8.3 percent)
o Ten out of the 15 industries in the UFC cluster lost jobs over this year
o The greatest employment contraction occurred in Printing and Related Support
Activities, which lost 70 jobs (-38.2 percent)
• The greatest relative employment concentration is in the industry of Beverage and Tobacco
Product Manufacturing, with a LQ of 5.26. It is interesting to note the variance in the
Uniquely Fort Collins Cluster location quotients. Compared to the US, Larimer County has a
relatively small employment base in the industry of Museums, Historical Sites, and Similar
Institutions (NAICS 712), with a LQ of 0.13. By comparison, the industry of Sporting Goods,
Hobby, Book, and Music Stores had a location quotient of 1.97 in 2009.
42
Table A.V: Uniquely Fort Collins Cluster Fast Facts
Uniquely Fort Collins Cluster Fast Facts
Employment Location
2007 - 2010 2009 - 2010 Quotients
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
312
Beverage and Tobacco
Product
Manufacturing
278 297 326 363 85 30.5% 37 11.5% 5.22 5.26
323
Printing and Related
Support Activities
182 191 183 113 -68 -37.6% -70 -38.2% 0.67 0.70
332
Fabricated Metal
Product
Manufacturing
15 21 12 12 -3 -18.2% 0 0.0% 0.37 0.34
337
Furniture and Related
Product
Manufacturing
10 12 14 10 -1 -6.5% -4 -31.0% 1.13 1.23
339
Miscellaneous
Manufacturing
1 2 1 1 -1 -50.0% 1.09 0.81
423
Merchant
Wholesalers, Durable
Goods
9 7 4 -9 -100.0% -4 -100.0% 0.57 0.55
451
Sporting Goods,
Hobby, Book, and
Music Stores
31 33 37 47 16 53.3% 10 28.2% 1.97 1.98
453
Miscellaneous Store
Retailers
29 26 23 20 -9 -29.9% -2 -10.3% 1.63 1.74
511
Publishing Industries
(except Internet)
72 68 66 58 -14 -19.4% -8 -12.1% 1.98 2.00
512
Motion Picture and
Recording Industries
18 25 18 15 -3 -16.7% -3 -18.2% 0.67 0.66
43
Sources: CDLE QCEW and CSU
0 50 100 150 200 250 300 350 400
Beverage and Tobacco Product Manufacturing
Printing and Related Support Activities
Fabricated Metal Product Manufacturing
Furniture and Related Product Manufacturing
Miscellaneous Manufacturing
Merchant Wholesalers, Durable Goods
Sporting Goods, Hobby, Book, and Music Stores
Miscellaneous Store Retailers
Publishing Industries (except Internet)
Motion Picture and Sound Recording Industries
Professional, Scientific, and Technical Services
Educational Services
Performing Arts, Spectator Sports, and Related Industries
Museums, Historical Sites, and Similar Institutions
Food Services and Drinking Places
Uniquely Fort Collins Cluster Q2 Average Employment
2007 2008 2009 2010
44
Chart A.V.2: Uniquely Fort Collins Cluster Employment Compared to Larimer County – 2010Q2
Sources: CDLE QCEW and CSU
Beverage and Tobacco Product Manufacturing
Printing and Related Support Activities
Fabricated Metal Product Manufacturing
Furniture and Related Product Manufacturing
Miscellaneous Manufacturing
Sporting Goods, Hobby, Book, and Music Stores
Miscellaneous Store Retailers
Publishing Industries (except Internet)
Motion Picture and Sound Recording Industries
Professional, Scientific, and Technical Services
Educational Services
Performing Arts, Spectator Sports, and Related Industries
Museums, Historical Sites, and Similar Institutions
Food Services and Drinking Places
945
390
390
323
360
1,187
1,257
1,402
222
8,897
15,618
568
452
11,975
363
113
12
10
1
47
20
58
15
22
56
208
12
107
2010Q2 Employment - Uniquely Fort Collins Cluster vs Larimer County
Uniquely Fort Collins Larimer County
45
Chart A.V.3: Total Wages Paid in the UFC Cluster – 2009Q2 and 2010Q2
Sources: CDLE QCEW and CSU
$4,547,005
$990,269
$98,788
$50,761
$3,800
$0
$176,602
$77,347
$556,036
$97,000
$138,213
$162,984
$1,068,716
$86,988
$548,151
$4,098,232
$1,694,708
$107,580
$74,388
$6,700
$37,565
$179,852
$79,776
$589,593
$126,599
$106,568
$170,768
$1,134,473
$102,560
$539,564
Beverage and Tobacco Product Manufacturing
Printing and Related Support Activities
Fabricated Metal Product Manufacturing
Furniture and Related Product Manufacturing
Miscellaneous Manufacturing
Merchant Wholesalers, Durable Goods
Sporting Goods, Hobby, Book, and Music Stores
Miscellaneous Store Retailers
Publishing Industries (except Internet)
Motion Picture and Sound Recording Industries
Professional, Scientific, and Technical Services
Educational Services
Performing Arts, Spectator Sports, and Related Industries
Museums, Historical Sites, and Similar Institutions
Food Services and Drinking Places
Uniquely Fort Collins Wages Paid
2009 2010
46
A.VI. Water Cluster Details
• The Water Cluster grew by 184 jobs (15.1 percent) between 2007Q2 and 2010Q2 (Table A.VI)
o Professional, Scientific, and Technical Services (NAICS 541) experienced the greatest
growth of 179 jobs (90.4 percent)
o Computer and Electronic Product Manufacturing (NAICS 334) grew by 82 jobs (10.6
percent)
o Specialty Trade Contractors (NAICS 238 shed 109 jobs (57.6 percent)
• Between 2009Q2 and 2010Q2, the Water Cluster expanded by 31 positions (2.3 percent)
o Computer and Electronic Product Manufacturing expanded by 53 jobs (6.6 percent)
o Specialty Trade Contractors lost 33 jobs (-28.9 percent)
• The location quotients for the industries in the Water Cluster, on average, indicate a relatively
larger employment base in Larimer County, compared to the US. The largest industry in the
cluster, accounting for 61 percent of cluster employment, is Computer and Electronic Product
Manufacturing and Machinery Manufacturing (NAICS 333), which has a location quotient of
3.64. Over an additional quarter of Water Cluster employment is in the industry of Professional,
Scientific, and Technical Services, which has an LQ of 1.21.
47
Table A.VI: Water Cluster Fast Facts
Larimer County Water Cluster Fast Facts
Employment Location
Quotients
2007 - 2010 2009 - 2010
NAICS Industry 2007 2008 2009 2010
Level
Change
Percent
Change
Level
Change
Percent
Change
2006 2009
237
Heavy and Civil
Engineering
Construction
1 1 1 0 0.0% 1.20 1.20
238
Specialty Trade
Contractors
190 113 113 80 -109 -57.6% -33 -28.9% 1.66 1.61
314 Textile Product Mills 37 56 49 42 6 15.5% -7 -13.6% 0.44 0.64
325 Chemical Manufacturing 15 21 18 18 -4 -17.2% 0.27 0.51
333
Machinery
Manufacturing
10 10 9 11 1 10.0% 2 22.2% 1.79 2.11
334
Computer and
Electronic Product
Manufacturing
773 812 802 856 82 10.6% 53 6.6% 3.53 3.64
425
Wholesale Electronic
Markets and Agents and
Brokers
6 5 6 6 0 0.0% 0 0.0% 0.44 0.52
541
Professional, Scientific,
and Technical Services
198 343 359 377 179 90.4% 18 5.0% 1.40 1.21
561
Administrative and
Support Services
4 5 6 6 1 20.0% 0.92 1.05
813
Religious, Grantmaking,
Civic, Professional, and
Similar Organizations
8 8 9 9 1 12.5% 0 0.0% 1.00 0.39
TOTAL 1,222 1,365 1,374 1,406 184 15.1% 31 2.3%
Sources: CDLE QCEW, CSU and BLS
48
Chart A.VI.1: Second Quarter Average Employment in the Water Cluster
Source: CDLE QCEW and CSU
0 200 400 600 800 1000 1200
Heavy and Civil Engineering Construction
Specialty Trade Contractors
Textile Product Mills
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Wholesale Electronic Markets and Agents and Brokers
Professional, Scientific, and Technical Services
Administrative and Support Services
Religious, Grantmaking, Civic, Professional, and Similar
Organizations
Water Cluster Employment - Q2 Averages
2007 2008 2009 2010
49
Chart A.VI.2: 2010Q2 Average Employment - Water Cluster Compared to Larimer County
Sources: CDLE QCEW and CSU
Heavy and Civil Engineering Construction
Specialty Trade Contractors
Textile Product Mills
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Wholesale Electronic Markets and Agents and Brokers
Professional, Scientific, and Technical Services
Administrative and Support Services
Religious, Grantmaking, Civic, Professional, and Similar
Organizations
1,027
5,366
69
435
1,985
3,964
403
8,800
8,142
542
1
80
42
18
1,015
856
6
574
6
9
2010Q2 Employment - Water Cluster vs Larimer County
Water Cluster Larimer County
50
Chart A.VI.3: Total Second Quarter Wages Paid in the Water Cluster
Source: CDLE QCEW and CSU
$8,177
$1,745,698
$449,915
$264,388
$16,929,608
$10,528,870
$174,680
$9,604,527
$100,635
$72,282
$17,577
$1,203,470
$412,191
$236,145
$14,026,599
$12,965,840
$152,935
$10,468,175
$354,926
$79,662
Heavy and Civil Engineering Construction
Specialty Trade Contractors
Textile Product Mills
Chemical Manufacturing
Machinery Manufacturing
Computer and Electronic Product Manufacturing
Wholesale Electronic Markets and Agents and Brokers
Professional, Scientific, and Technical Services
Administrative and Support Services
Religious, Grantmaking, Civic, Professional, and Similar
Organizations
Total SecondQuater Wages Paid in the Water Cluster
2009 2010
51
APPENDIX B
B.I: North American Industrial Classification System (NAICS)
NAICS is a basic framework for categorizing establishments and is the basis for regional economic
analysis. This system allows us to arrange the economy’s multitude of business types into discrete
industry classifications. These classifications are numerical and hierarchical, with digits on the left
defining major sectors and digits to their right specifying subdivisions. Today, much of the readily
available economic data related to employment is based on such classifications.
NAICS divides the economy into 20 major sectors and recognizes 1,170 industries. Five of the 20 sectors
are largely goods producing and 15 are entirely services-producing industries. The NAICS system is
hierarchical and identifies sectors and industries therein with from 2 to 6 digits: the more digits, the
more specific the industry identification.
New NAICS code structure
NAICS Code Industry
11 Agriculture, Forestry, and Fishing
21 Mining
22 Utilities
23 Construction
31-33 Manufacturing
41-43 Wholesale Trade
44-46 Retail Trade
48-49 Transportation and Warehousing
51 Information
52 Finance and Insurance
53 Real Estate and Rental and Leasing
54 Professional, Scientific, and Technical Services
55 Management of Companies and Enterprises
56 Administrative and Support and Waste Management and Remediation
Services
61 Educational Services
62 Health Care and Social Assistance
71 Arts, Entertainment, and Recreation
72 Accommodation and Food Services
81 Other Service (except public administration)
91-93 Public Administration
Typically, in comparative discussions of industries the NAICS codes can be used as 2, 3, 4, 5, and 6 digit
codes. Discussions about manufacturing in general use the 2 digit manufacturing codes (31-33) but
discussions about particular types of manufacturing use the 3-digit sub-sector codes.
52
Here are a couple of examples:
Example #1 Example #2
NAICS Level NAICS
Code
Description NAICS
Code
Description
Sector 31-33 Manufacturing 51 Information
Subsector 334 Computer and electronic
product manufacturing
513 Broadcasting and
telecommunications
Industry
group
3346 Manufacturing and
reproduction of magnetic
and optical media
5133 Telecommunications
Industry 33461 Manufacturing and
reproduction of magnetic
and optical media
51332 Wireless telecommunications
carriers, except satellite
U.S. Industry 334611 Reproduction of software 513321 Paging
A Few Caveats
When using Industrial Classifications, there are a few important factors that you should keep in mind.
First, individual establishments are assigned an industry according to their primary economic activity.
Thus, if a business produces goods that fall under two or more industries, the business is classified
according to its major output.
Second, employment figures represent an industry and not an occupation. Thus, industry data does not
provide a clear picture of the types of work in which employees are engaged. For example, many
companies carry out some of their business services internally. Such services show up in the industry
employment statistics for the whole business. For example, an accountant at a steel mill would be
counted in the employment statistics for the steel industry (NAICS 3311) rather than the business
service industry (NAICS 5412). However, if the steel mill hired an accounting firm to do their books, this
employee would show up in NAICS 5412.
Finally, for confidentiality reasons, data is often not made publicly available when it will identify
individual businesses. While county data is usually available at very aggregated level, confidentiality
concerns often arise at more detailed levels of analysis. This is especially true in smaller economic
regions, such as rural counties.
More information on the NAICS system is available on the internet, go to:
http://www.census.gov/epcd/www/naics.html
53
B.II: Location Quotients
In a nutshell, the location quotient helps identify those local industries that are producing more than is
needed for local use and selling outside the region (exporting) and those that are not meeting local
needs and are a source of consumption leakage (importing). Often times, the location quotient
reinforces what you already know about your local economy, but just as often, it uncovers things you
did not know, or, at least, changes your perceptions. The real strength of the tool is that it is a simple,
yet effective educational resource.
Calculating a location quotient is a straightforward process, and, in practice, most often uses
employment data that is widely available (This analysis is most informative when using as disaggregated
employment data as you can find for your region (NAICS 3- or 4-digit). The basic formula for the location
quotient is:
% of Local Employment in Industry i
LQ = ----------------------------------------------------
% of National Employment in Industry i
Local Employment in Industry i / Total Local Employment
= -----------------------------------------------------------------------------------
National Employment in Industry i / Total National Employment
Simply put, the location quotient identifies how local industries stack up with national averages.
In practice, location quotients are often used to identify regionally competitive industries. An exporting
industry is one where the industry not only meets the local demand for its products, but also produces
enough so as to sell outside of the region. An importing industry is one where local production levels are
insufficient to meet local demand.
When interpreting the data, a location quotient greater than 1.0 indicates that the economy is self-
sufficient, and may even be exporting the good or service of that particular industry. (As a rule-of-
thumb, a location quotient greater than 1.25 almost certainly identifies exporting industries.) On the
other hand, a location quotient less than 1.0 suggests that the region tends to import the good or
service. (The applicable rule-of- thumb is that a location quotient less than 0.75 indicates an importing
industry.)
Global ChallenGes
Collaborative Culture
outstandinG researCh institution
Bioscience
The Northern Colorado Bioscience Cluster is comprised of companies that research, produce
& distribute medical devices, medical instruments, pharmaceuticals and biofuels. In 2010, 32
patents were issued to area bioscience companies. The City of Fort Collins and its residents
value the bioscience companies and agencies that make their home here.
cluster profile fort collins, co
2011 Q2
ATTACHMENT 2
1
Bioscience
With 54 companies in growth mode, close
associations with research scientists at
Colorado State University, and a diverse
product base, this cluster plays an important
role in economic development and health
in Fort Collins. Fort Collins has a long history
in Bioscience research and development. We
are home to the Centers for Disease Control
Division of Vector Borne Infectious Diseases
Research Area and many other federal agencies
that test, research and develop bioscience
related solutions and products.
st. Renatus, a
Biomedical success stoRy
A Fort Collins start-up company will soon provide
needle-free relief to dental patients. St. Renatus
recently completed Adult Phase 2 trials with the
U.S. Food and Drug Administration (FDA) review
and will begin Phase 3 trials shortly. The application
for the nasal spray is for the upper jaw only at this
time. There is hope its use can be expanded to
effect the lower jaw as well.
St. Renatus is operating at a global level, with
manufactures in Europe helping to provide some
of the equipment and materials for the nasal spray,
and a board of directors that is similar to an all-star
athletic team. One of the co-founders, Dr. Mark
Kollar, DDS, lives in Fort Collins and has attracted
the interest of local and national specialist to fill
positions on the Board of Directors and Scientific
Advisory Board.
To learn more about the company, its drug product
and mission to knockout fear and loathing in the
dentist office, visit St-Renatus.com.
sample companies
• Aurogen
• Advanced Regenerative Therapies (ART)
• Beckman Coulter
• InViragen
• Optibrand
• Propel Labs
• Solix
• Tolmar, Inc.
stRengths
• Centers for Disease Control Division of Vector
Borne Infectious Diseases Research Area
- Annual budget for this branch of the CDC is
$51 million
- 200 employees
• Colorado State University (CSU), students,
professors and staff are on the leading,
global edge in fighting infectious disease
- The Rocky Mountain Regional
Biocontainment Laboratory
- BSL-3, in Fort Collins studies deadly
pathogens
- The Research Innovation Center, or RIC,
at CSU further compliments the research
adding 72,000 square feet of BSL-2 space
Bioscience
2007 2008 2009 2010
2,141
2,037
2,017
2,073
2010 employment composition 2010 Q2 eaRnings
other
total
Manufacturing
adminstration of
Public health Programs
$278 K
other
$753 K
Merchant Wholesalers,
durable Goods
$22.4 m
total Manufacturing
$4.5 m
administration
of Public health
Programs
Professional, scientific
& technical services
$2.3 m
Professional, scientific
& technical services
9%
12%
2%
Merchant
Wholesalers,
durable Goods
3%
75%
sources: Quarterly census of employment and Wages (QceW), Bureau of labor and statistics (Bls), and colorado state university
employment tRend
number of employees
3
Bioscience
For more information on Bioscience in Fort Collins
Ryan Speir, COO, Rocky Mountain Innosphere, 970.221.1301, ryan.speir@rmi2.org
Contact the City of Fort Collins for questions on retention, expansion, incubation or relocation
Josh Birks, City of Fort Collins, Economic Advisor 970.221.6324, jbirks@fcgov.com
Northern Colorado Bioscience Cluster nocobio.org
Colorado Bioscience Association cobioscience.com
Doing business in Fort Collins fcgov.com/business
Community information ftcollins.com
Fort Collins Cluster Performance Report available on fcgov.com/business
contacts
What’s neW
1. Chata Biosystems, St. Renatus, LLC, Inviragen Inc. and Ventria Bioscience received $250,000 in
research funding through the Qualifying Therapeutic Discovery Project program, created under the
Patient Protection and Affordable Care Act of 2010.
2. Limagrain Cereal Seeds is expanding its North American headquarters in Fort Collins with a new
6,000 square-foot building and a 7,500 square foot warehouse.
3. Solix BioSystems has launched the production and sales of their algar growth system. The Lumian
AGS 4000 is an inflatable tank with 20 patent-pending photobioreactor panels where algae is
cultivated for its oil—a base for biofuels.
community aWaRds
Following your passions and pursuing your career don’t have to be mutually exclusive.
• One of the nation’s “Emerging Epicenters” for innovation and high-tech job growth in green
technology: Wired Magazine - June 2011
• Fort Collins, One of the Top 10 Cities Adopting Smart Grid Technology:
U.S.News and World Report - May 2011
• Third Happiest Metro Region, Fort Collins-Loveland, CO: Gallup-Healthways Well-Being Index - 2011
• 2011 Governor’s Arts Award: Colorado Creative Industries and the Colorado Office of Economic
Development and International Trade - March 2011
• One of the Top 10 Best American cities to invest your real estate dollars in 2011:
Trulia.com - December 2010
• Named 5th Most Educated City in the country based on education levels of our adult population:
Portfolio.com - December 2010
• Fourth Best State for Business, Colorado: Forbes magazine - October 2010
• One of the Top 10 Best College Towns: Small-Sized Cities Category, USA Today - September 2010
• One of the top six ‘Smarter Cities’ for Energy:
Natural Resources Defense Council, (population 100,000-249,999) - August 2010
• 6th Best Place to Live in the Nation: Money Magazine - July 2010
fcgov.com/business
4
Industry Leaders
renewabLe energy
InnovatIve soLutIons
clean energy
What sets Fort Collins apart from other clean energy-focused communities? The ability for
the private sector to test energy technology, products and services on the municipally owned
Fort Collins Utilities grid system. Sample projects include solar panels on private and public
buildings, electric vehicle plug-in stations and generator upgrades at select public building sites.
The City of Fort Collins and its residents value the renewable and clean energy companies and
agencies that make their home here.
cluster profile fort collins, co
2011 Q2
ATTACHMENT 3
1
clean energy
enriching the economy
• 22 patents issued in 2010 to Clean Energy
Cluster companies
• FortZED (Zero Energy District) is projected to
create 200-300 high-paying primary jobs in the New
Energy Economy and hundreds of spin off jobs
• Colorado State University recognized
internationally for pioneering many clean and
renewable energy technologies
• A collaborative working environment, attracts
quality researchers and business people to the area
collaboration
& resources
Colorado State University, founding member of
the Colorado Renewable Energy Collaboratory
• Includes CU-Boulder, Colorado School of Mines,
and the National Renewable Energy Laboratory
• Purpose: research & commercialize clean
energy technologies
Engines and Energy Conversion Laboratory
eecl.colostate.edu
City of Fort Collins fcgov.com
Colorado Clean Energy Cluster
coloradocleanenergy.com
FortZED fortzed.com
Center for Smart Grid Advancement
sample companies
• Abound Solar
• Advanced Energy
• Brendle Group
• CPP Wind Engineering
• CZero, Inc. Carbon Neutral Solutions
• Ice Energy
• Spirae
• Wirsol
• Woodward
strengths
• Progressive public policies
• Municipally-owned, Progressive Utility
• Smart Grid technology developed in
Fort Collins
• Innovative, award-winning companies
• Abundant sun and wind resources
• Residents who value energy conservation and
sustainability
grants and research Funding
Colorado State University Clean Energy Supercluster
Seed Grants
Department of Energy Federal Recovery Act,
Smart Grid Technology Implementation
National Science Foundation Colorado New Energy Economic Development Grants
incubation
• Colorado State University’s Clean Energy
Supercluster- Cenergy
• Engines and Energy Conversion Laboratory,
Colorado State University
• InteGrid Lab
• Rocky Mountain Innosphere
colorado’s renewable
clean energy
2010 employment composition 2010 Q2 earnings
2010
3,078
2007
2,481
2009
3,133
2008
2,979
total Manufacturing
83%
9.5%
Professional, scientific
& technical services
$42 m
total Manufacturing
$5.6 m
Professional scientific
& technical services
$5.2 m
utilities
$114 K
educational
services
$49 K
specialty trade
Contractors
educational
services
utilities
.3%
specialty trade
Contractors
.16%
sources: Quarterly census of employment and Wages (QceW), Bureau of labor and statistics (Bls), and colorado state university
employment trend
number of employees
7%
3
clean energy
community awards
Following your passions and pursuing your career don’t have to be mutually exclusive.
• One of the nation’s “Emerging Epicenters” for innovation and high-tech job growth in green
technology: Wired Magazine - June 2011
• Fort Collins, One of the Top 10 Cities Adopting Smart Grid Technology:
U.S.News and World Report - May 2011
• Third Happiest Metro Region, Fort Collins-Loveland, CO: Gallup-Healthways Well-Being Index - 2011
• 2011 Governor’s Arts Award: Colorado Creative Industries and the Colorado Office of Economic
Development and International Trade - March 2011
• One of the Top 10 Best American cities to invest your real estate dollars in 2011:
Trulia.com - December 2010
• Named 5th Most Educated City in the country based on education levels of our adult
population: Portfolio.com - December 2010
• Fourth Best State for Business, Colorado: Forbes magazine - October 2010
• One of the Top 10 Best College Towns: Small-Sized Cities Category, USA Today - September 2010
• One of the top six ‘Smarter Cities’ for Energy:
Natural Resources Defense Council, (population 100,000-249,999) - August 2010
• 6th Best Place to Live in the Nation: Money Magazine - July 2010
For more information on Clean Energy in Fort Collins
Judy Dorsey, Executive Director of the Colorado Clean Energy Cluster, 970.207.0058
jdorsey@brendlegroup.com
Josh Birks, City of Fort Collins, Economic Advisor 970.221.6324, jbirks@fcgov.com
Colorado Clean Energy Cluster coloradocleanenergy.com
Doing business in Fort Collins fcgov.com/business
Fort Collins Cluster Performance Report available on fcgov.com/business
contacts
what’s hot
1. Colorado State University was chosen as one of 16 teams in North America to update the engine
design of the Chevrolet Malibu in the “EcoCAR 2: Plugging into the Future,” collegian challenge.
2. Colorado State University and its partner, Fotowatio Renewable Ventures, have completed one of
the largest solar plants at a U.S. university. Advanced Energy provided the inverters that convert
DC electric power to AC power for the 5.3-megawatt solar plant.
industry awards
• Guy Babbitt, co-founder and president of Czero Inc. in Fort Collins, was named Emerging Entrepreneur
at the Northern Colorado Business Report’s Annual Bravo! Award Ceremony.
• Amy Prieto, a Colorado State University chemistry professor and founder of Prieto Battery, has been
named the 2011 ExxonMobil Solid State Chemistry Faculty Fellow. Prieto Battery is researching and
building batteries up to 1,000 times more powerful and 10 times longer-lasting and cheaper than
traditional batteries.
fcgov.com/business
4
cluster profile fort collins, co
HigH-TecH Workforce
enTrepreneurs
cHip Design anD sofTWare
technology
Fort Collins is home to a large, diverse high-tech workforce. Despite the ups and downs of the
tech sector, Fort Collins remains an attractive location for new businesses. Companies that
specialize in data mapping, computer programming, Internet service, software development
and computer facilities management are grouped in the Software cluster. The City of Fort Collins
and its residents value the software companies and agencies that make their home here.
2010 Q4
ATTACHMENT 4
technology
Innovation thrives here! Approximately 250
software companies are located in Fort Collins; 80
percent employ less than 10 people. Technology
they have developed is used at the top levels of
the government, military and private businesses.
Colorado State University’s main campus in Fort
Collins has a legacy of GIS curriculum and career
paths across disciplines.
Start-up assistance for seed high-tech
companies is available through the Rocky
Mountain Innovation Initiative (RMI2
), a high-
tech incubator for innovative companies.
Offering mentoring, physical space, business
advisement and funding options, RMI2
is equipped to
assist up-and-coming technology firms of all kinds.
enriching the economy
The Technology Cluster was hard hit over the last
three years, 13.8% of the workforce was lost. Ninety-
five percent of those losses occurred in the Hardware
Cluster. On the bright side, 214 patents were issued
to companies within the cluster in 2009, and more
than 475 companies are thriving in the area.
• Fort Collins has one of the highest Software and
Hardware employment concentrations in the country
• Workforce development and initiatives are priorities
for local educational institutions and businesses
collaboration &
resources
• Rocky Mountain Innovation Initiative
• Colorado State University
• Front Range Community College
• Poudre School District
• ESRI
• Fast Trac® Tech Ventures through RMI2
legacy of gis
The legacy of geospatial technology is rich and
diverse in Northern Colorado:
• Hewlett Packard established location-based
computer system centers in Loveland and Fort
Collins in 1960 and 1978
• Colorado State University began teaching GIS in
1980’s in their Natural Resources Dept.
• In the 1990s, nearly a dozen GIS companies
opened their doors in Fort Collins
• Geospatial technologies have been used
successfully by local government agencies in
Northern Colorado since the 1980’s
• In the fall of 2007, RMI2
began hosting meetings
with private businesses and public agencies to
begin the work of building a cluster to support
the “GIS Alley”
sample softWare
companies
• Clear Path Labs
• New Century Software
• I-cubed
technology
2009 employment composition 2009 Q4 earnings
computer & electronic product Mfg.
software publishing,
Websearch portals
& Data Hosting
architectural engineering,
computer systems Design
& related services
50%
12%
38%
$32 m
$94 m
harDWare Design
softWare Design
employment trenD
number of employees
2006 2007
harDWare Design softWare Design
2008 2009
4,313
1,746
6,060
5,424
5,929
5,222
3,678
1,846
4,072
1,857
3,513
1,709
sources: Quarterly census of employment and Wages (QceW) and colorado state university and Bureau of labor and statistics (Bls)
technology
What’s neW
1. Hewlett-Packard, Inc. donated $10,000 worth of technology equipment to the Community Foundation
of Northern Colorado, enhancing the day-to-day operations of the Foundation and its clients.
2. Rocky Mountain Innovation Initiative teaches entrepreneurial skills and tactics with FastTrac®
TechVenture™, a specialized curriculum developed by the Ewing Marion Kaufman Foundation.
3. Integware is relocating to the Harmony Technology Park with its 120 employees and preparing for
more growth in their new location.
4. Two Colorado State University computer scientists awarded $7.8 million from the National Science
Foundation to examine routing and security measures associated with the Internet.
5. Advanced Microlabs entered the commercialization stage for Ion Analysis in the Industrial Clean
Water Market after receiving a Phase II SBIR grant for 845K from the National Institute of Health.
community aWarDs
Following your passions and pursuing your career don’t have to be mutually exclusive.
• One of the top six ‘Smarter Cities’ for Energy: Natural Resources Defense Council,
(population 100,000-249,999) - August 2010
• Ranked 6th Best Place to Live in the Nation: Money Magazine - July 2010
• One of the Most Underrated Cities in the West: Life.com - June 2010
• One of the Greatest Places to Live in the West: American Cowboy magazine - April 2010
• Ranked 3rd Best State for Business, Colorado, CNBC April 2010
• Ranked 4th Best Place for Business and Careers, Forbes.com March 2010
• Ranked 1st Best Place to Live and Work for Young Professionals (pop. 100,000-200,000),
Next Generation Consulting - March 2009
For more information on the Software cluster and GIS Alley
Mark Forsyth, Director, Rocky Mountain Innovation Initiative, 970.221.1301, mforsyth@rmi2.org
For more information on expanding or relocating your business
Mike Freeman, City of Fort Collins Chief Financial Officer 970.416.2259, mfreeman@fcgov.com
GIS Alley, Rocky Mountain GeoSpatial Cluster gisalley.com
Rocky Mountain Innovation Initiative rmi2.org
Doing business in Fort Collins fcgov.com/business
Online entrepreneur support fortcollinsinnovation.com
Community information ftcollins.com
Fort Collins Cluster Performance Report available on fcgov.com/business
fcgov.com/business
contacts
EclEctic
AuthEntic
VibrAnt
uniquely fort collins
Unique: \yoo-neek\, adjective 1. Being the only one, sole. 2. Being without a like or equal,
unequaled. The Uniquely Fort Collins cluster is made up of companies that are unique,
independent, and contribute to Fort Collins’ high quality of life. Arts, cultural, tourism, breweries
and creative firms fall in this category. The City of Fort Collins and its residents value the unique
companies and agencies that make their home here.
Arts, Culture, tourism fort Collins, Co
2011 Q2
ATTACHMENT 5
1
uniquely fort collins
Our residents enjoy an active outdoor lifestyle by
walking on 20+ miles of trails, playing in 44 parks
or following the Poudre River that runs through
the city. The community and out of town guests
support the arts, dining out and shopping — with
so much to choose from it’s hard to stay home.
Bonus: we have the most microbreweries per
capita in the state of Colorado, including New
Belgium Brewery, the third largest microbrewery
in the United States.
Be Local Northern Colorado unites independent
businesses in Fort Collins.
Be local coupon Book
2010-2011
• 176 businesses
• $6,000 worth of discounts for $15
• 260+ coupons
• Dozens of independent business stories
• Membership directory
• Purchase the coupon book at numerous
locations around Fort Collins
• belocalnc.org
strenGtHs
• Beautiful Old Town district
• Downtown Development Authority
• Entrepreneurial residents
• Most microbreweries per capita in Colorado
• Outdoor enthusiasts
• Municipally-maintained bike trails & natural areas
enricHinG tHe economy
• Unique businesses increase the quality of life of
a region
• A high quality of life attracts high-tech firms and
entrepreneurs who can choose to live wherever
they want
• Most of the Uniquely Fort Collins businesses
operate in Downtown Fort Collins
• More than 300 employers & 3,000+ employees
work in Downtown Monday-Friday
Grants and researcH fundinG
Fort Fund National Endowment for the Arts
Institute of Museum and Library Services National Endowment for the Humanities
Colorado Creative Industries Bohemian Foundation
collaBoration
Beet Street beetstreet.org
Convention and Visitors Bureau
visit.ftcollins.com
Downtown Business Association
downtownfortcollins.com
Fort Collins Area Chamber of Commerce
fcchamber.org
Be Local Northern Colorado
belocalnc.org
Rocky Mountain Innosphere
rockymountaininnosphere.com
Shop Fort Collins First fcgov.com/shop
arts & culture
• Fuels the local economy with purchases and
ticket sales
uniquely fort collins
2007 2008 2009 2010
2010 employment composition
Performing Arts, Spectator Sports,
Museum & related industries
Publishing,
Motion Picture
& Sound recording
industries
Other
Sporting Goods
& retail
$254 k
Sporting Goods
$300 k & retail
Other
$653 k
Publishing, Motion Picture &
Sound recording industries
$5.7 m
beverage,
Printing,
Furniture &
Misc. Manufacturing
$1.1 m
Performing Arts,
Spectator Sports,
Museum and
related industries
$550 k
Food Service
beverage, Printing, & Drinking Places
Furniture & Misc.
Manufacturing
48%
employment trend
number of employees
21%
6%
7%
7%
Food Service
& Drinking Places
10%
1,091
1,020 1,083
1,046
sources: Quarterly Census of employment and Wages (QCeW), Bureau of labor and statistics (Bls), and Colorado state university
2010 q2 earninGs
3
uniquely fort collins
Contact the City of Fort Collins for questions on retention, expansion, incubation or relocation
Josh Birks, City of Fort Collins, Economic Advisor 970.221.6324, jbirks@fcgov.com
Doing business in Fort Collins fcgov.com/business
Be Local Northern Colorado belocalnc.org
Community information ftcollins.com
Fort Collins Cluster Performance Report available on fcgov.com/business
contacts
industry awards & news
• The Fort Collins Museum of Discovery’s new home is on track for its 2012 opening. Exhibit themes
reflect the interests of the Fort Collins community: water, local history, music and energy. The crown
jewel of the Museum of Discovery will be a digital dome, a 360-degree immersive theater half dome,
tipped at an angle that seats 85 people.
• The City’s performing arts hall, the Lincoln Center, will complete its renovation and expansion in late
2011.New features include a new rooftop deck overlooking the entry plaza, state-of-the-art acoustical
upgrades in both performance halls, a new self-contained and climate-controlled arts gallery, greatly
expanded lobby spaces with three new permanent bars, new (and more) bathrooms, and a newly
remodeled ballroom and outdoor terrace.
• Tandem Select was named a 2011 Colorado Companies to Watch award winner. Tandem Select is
a Fort Collins company that performs fast, friendly background checks and employment screenings.
• Nine local breweries created a collaboration beer for American Craft Beer Week, May 16-22. CB
& Potts, Coopersmith’s, Crooked Stave, Equinox, Fort Collins Brewery, Funkwerks, New Belgium
Brewing, Odell Brewing Co. and Pateros Creek joined forces to recognize and celebrate craft brewers
and craft beer culture in the local community.
community awards
Following your passions and pursuing your career don’t have to be mutually exclusive.
• One of the nation’s “Emerging Epicenters” for innovation and high-tech job growth in green
technology: Wired Magazine - June 2011
• Fort Collins, One of the Top 10 Cities Adopting Smart Grid Technology:
U.S.News and World Report - May 2011
• Third Happiest Metro Region, Fort Collins-Loveland, CO: Gallup-Healthways Well-Being Index - 2011
• 2011 Governor’s Arts Award: Colorado Creative Industries and the Colorado Office of Economic
Development and International Trade - March 2011
• One of the Top 10 Best American cities to invest your real estate dollars in 2011:
Trulia.com - December 2010
• Named 5th Most Educated City in the country based on education levels of our adult population:
Portfolio.com - December 2010
• Fourth Best State for Business, Colorado: Forbes magazine - October 2010
• One of the Top 10 Best College Towns: Small-Sized Cities Category, USA Today - September 2010
• One of the top six ‘Smarter Cities’ for Energy:
Natural Resources Defense Council, (population 100,000-249,999) - August 2010
• 6th Best Place to Live in the Nation: Money Magazine - July 2010
fcgov.com/business
4
CritiCal resourCe
international Coordination
loCal innovation
The Water Innovation Cluster focuses on water-related issues and innovation. The future of
water safety, water supply and water management is a global issue; Fort Collins area companies,
Colorado State University and industry partners around the state are ready to take on water
challenges and discover solutions that are best for the planet, for business and our societies.
The newly organized industry cluster unites these companies and organizations as they
contribute to the economic vitality of our areas and beyond.
cluster profile fort collins, co
water innovation
2011 Q2
ATTACHMENT 6
1
Collaboration
& reSoUrCeS
Local resources provide industry
expertise such as:
• hydrologic and hydraulic engineering
• water planning and systems management
• water policy development and governance
• ecosystem sustainability
Colorado Water Institute
United Nations Educational, Scientific
and Cultural Organization (UNESCO)
Colorado State University’s International
School for Water Resources
Colorado Water Innovation Cluster
water innovation
why here? why now?
By 2050 a third of the people on Earth may lack
a clean, secure source of water.
2.5 percent of all water on Earth is freshwater.
About two-thirds of that is frozen.¹
The facts and figures of water on Earth fill journals
and textbooks. Humans have an insatiable need for
fresh, clean water—for agriculture, for consumption,
for manufacturing. Scientists, researchers and
business people are creating innovative ways for
dealing with many of these issues including how to
desalinate water on an affordable, large scale; how
to get water supplies closer to people’s homes; how
to use less water in irrigation and agriculture; and
more. The problems are fixable for the most part, yet
there’s a sense of urgency to develop solutions in a
timely way, before it’s too late for some communities.
expertiSe
Businesses and research institutions in Fort Collins
are on the leading edge of solving some of water’s
most challenging problems. The City of Fort Collins,
along with a variety of private sector companies and
Colorado State University, formed the Colorado Water
Innovation Cluster (CWIC) to leverage expertise in
the area and collaborate on regional and global water
issues. Combined with initiatives already underway in
clean energy, bioscience and location-based decision
support systems, the CWIC will allow regional
stakeholders to collaboratively design and showcase
innovative solutions, which in many cases are much
larger and have far more impact than any stakeholder
could achieve on their own.
¹National Geographic magazine, April 2010
enriChing the eConomy
36 Water Innovation businesses employ more
than 1400 people.
A main focus of the Water Innovation Cluster
is to create initiatives that highlight the region’s
capabilities, involve the innovative use of
technologies and contribute to the economic vitality
of the community.
Sample CompanieS
• Aqua Engineering, Inc.
• Hach
• In Situ, Inc.
water innovation
2007 2008 2009 2010
1,365 1,374
1,222
1,406
2010 employment CompoSition 2010 Q2 earningS
$27.6 m
total manufacturing and mills
$10.8 m
Professional
services,
Management and
administrative
support services
$233 K
agents, Brokers,
Civic and other organizations
$1.2 m
Heavy & Civil engineering
Construction and specialty
trade Contractors
6%
Heavy & Civil engineering
Construction and specialty
trade Contractors
agents, Brokers,
Civic and other
organizations
total manufacturing
and mills
1%
sources: Quarterly census of employment and Wages (QceW) and colorado state university and Bureau of labor and statistics (Bls)
employment trend
number of employees
66%
27%
Professional services,
Management and
administrative support
services
3
water innovation
For more information on Water Innovation in Fort Collins
Jeff Throckmorton, co-chair, Colorado Water Innovation Cluster, 970.663.1377 x2642,
Jeffrey.Throckmorton@gmail.com
Contact the City of Fort Collins for questions on retention, expansion, incubation or relocation
Josh Birks, Economic Advisor, City of Fort Collins, 970.221.6324, jbirks@fcgov.com
Colorado Water Innovation Cluster co-waterinnovation.com
Doing business in Fort Collins fcgov.com/business
Community information ftcollins.com
Fort Collins Cluster performance report available on
fcgov.com/business/target-industries.php
ContaCtS
indUStry awardS and newS
1. The Colorado Water Innovation Cluster (CWIC) received grant funding to help complete the CWIC’s
Lake Canal Alternative Practices and In-stream Flow Demonstration Project. The demonstration will
address the municipal, industrial and environmental water “gap” during irrigation season in the Lake
Canal area.
2. In-Situ Inc. has acquired Waterra UK Limited, a United Kingdom groundwater monitoring equipment
provider. This is the first foreign country In-Situ has ventured into. The company designs,
manufactures, distributes and rents environmental equipment for monitoring the quantity and quality
of groundwater and surface water.
3. Advanced MicroLabs LLC, a Colorado State University startup company, has been awarded a pair
of research grants from the National Institutes of Health Superfund Research Program and the
National Science Foundation. The grants will be used to develop online analysis instrumentation
and chemistry for minute traces of water impurities.
CommUnity awardS
Following your passions and pursuing your career don’t have to be mutually exclusive.
• One of the nation’s “Emerging Epicenters” for innovation and high-tech job growth in green
technology: Wired Magazine - June 2011
• Fort Collins, One of the Top 10 Cities Adopting Smart Grid Technology:
U.S.News and World Report - May 2011
• Third Happiest Metro Region, Fort Collins-Loveland, CO: Gallup-Healthways Well-Being Index - 2011
• 2011 Governor’s Arts Award: Colorado Creative Industries and the Colorado Office of Economic
Development and International Trade - March 2011
• One of the Top 10 Best American cities to invest your real estate dollars in 2011:
Trulia.com - December 2010
• Named 5th Most Educated City in the country based on education levels of our adult population:
Portfolio.com - December 2010
• Fourth Best State for Business, Colorado: Forbes magazine - October 2010
• One of the Top 10 Best College Towns: Small-Sized Cities Category, USA Today - September 2010
• One of the top six ‘Smarter Cities’ for Energy:
Natural Resources Defense Council, (population 100,000-249,999) - August 2010
• 6th Best Place to Live in the Nation: Money Magazine - July 2010
fcgov.com/business
4
EntrEprEnEurs
EnErgy
partnErships
innovation economy
Innovation in Fort Collins is nothing new. Our city’s settlers were trailblazers and visionaries,
setting new standards for agriculture, education, and community building. That pioneer spirit
is alive and well in Fort Collins. Today, people must be agile, innovative, and creative across
business sectors and industry. In 2010, 225 patents were registered to researchers, scientists
and entrepreneurs in Fort Collins.
The City of Fort Collins and its residents value the innovative companies and agencies that
make their home here.
fort collins, co
2011 Q2
ATTACHMENT 7
1
innovation economy
What IS Fort Collins’ special sauce? We like to say
that the community has big city ideas and small town
relationships. Innovation occurs across industry
sectors in Fort Collins. Craft brewers, bioscience,
software, hardware, and clean energy companies
contribute ideas, inventions, and products that
positively affect the local economy.
The university’s innovation culture directly benefits
Fort Collins’ economy through technology transfer
and globally-focused research in clean energy,
water innovation and disease prevention and
treatment. Fort Collins City leaders and the local
business community embrace an international
outlook from an economic perspective; working
globally across industries to build relationships
and solve supply chain challenges.
Sample companieS
• Advanced Regenerative Therapies
• Clear Path Labs
• CZero, Inc
• New Belgium Brewing Co.
• Solix
• St. Renatus
• VanDyne SuperTurbos
StrengthS
• Rocky Mountain Innosphere
• Highly educated workforce, 48.2% of
population have a four year degree or higher
• Creative class –a talented, agile workforce
• A patents rate of 11.45 per 10,000
residents, one of the highest ratios in the
nation and world
the energy Behind
local ingenuity
Operating in a vacuum is seldom successful. Working
in a collaborative environment with highly skilled
resources at your fingertips? Reaching your potential
is much easier. Here’s a snapshot of three local
incubators where start-ups and entrepreneurs soar.
Rocky Mountain innospheRe
• Accelerating the success of new business
• Matches mentors to startups
• Hosts regional networking events
• Provides assistance with capital funding
• Kaufman Foundation’s FastTrac®
TechVenture™ curriculum
csu’s engines and eneRgy
conveRsion Lab (eecL)
• Creating innovative clean energy products
• Addressing health and safety issues for humanity
• $2 million a year in research funding
• Envirofit International, manufacturers of two-stroke
engine retrofit kits, and clean-burning cookstoves
• Solix, researching and producing biodiesel made
from domesticated algae
• VanDyne SuperTurbo, super turbo engines for
fleet vehicles with energy efficiencies
csu’s ReseaRch innovation centeR (Ric)
• 72,000 square foot research center focused on
innovation economy
sources: QcEW and csU, reflecting data from 2007q2 through 2010q2
innovation aSSetS
incubators
Rocky Mountain
Innosphere
Engines and Energy
Conversion Lab
Research Innovation Center
Fitzsimmons BioBusiness
Partners
Federal Labs
Centers for Disease Control
National Renewable Energy Lab
National Wildlife Research Ctr
higher education
Colorado State University
Front Range Community
College
regional innovation cluSter
Colorado Clean Energy Cluster
Colorado Water Innovation Cluster
Northern Colorado Bioscience Cluster
Colorado Engines and Transportaton Innovation Cluster
partnerShipS
private sector
public sector
City of Fort Collins
Larimer County Workforce
Center
State of Colorado Office
of Economic Development
economic development
Northern Colorado Economic
Development Corporation
Small Business Development
Center
Fort Collins Area Chamber of
Commerce
higher education
Colorado State University
Colorado State University:
- Research Foundation
- University Ventures
Front Range Community
College
University of Northern
Colorado
clean energy
Industry growth in Fort Collins: 24.1%
Industry growth in Nation: -9.89%
# of companies 29
# of employees 3,078
Average earnings $69,005
uniquely Fort collinS
Industry growth in Fort Collins: 2.5%
Industry growth in Nation: -5.2%
# of companies 81
# of employees 1,046
Average earnings $32,908
innovation economy
what’S hot
1. The Fort Collins-based volunteer weather-monitoring network known as CoCoRaHS has received a $1.2
million grant to improve its efforts nationwide. It was created in response to the 1997 Spring Creek
Flood in Fort Collins. The Community Collaborative Rain, Hail, and Snow Network is now in 50 states.
2. Former Colorado Governor Bill Ritter named Director and Senior Scholar of Colorado State University’s
Center for the New Energy Economy within the School of Global Environmental Sustainability. The
policy center and Ritter’s role were created in early 2011.
3. OtterBox has received a U.S. patent for its Defender Series of cases, a five year process from
application to approval. Patent No. 7,933,122 recognizes the innovations at the core of the line of
cases for a wide variety of technology devices from more than fifteen name brands such as Apple,
BlackBerry, Sony, Amazon, Google, Barnes & Noble and HP.
For more information on Innovation in Fort Collins
Ryan speir, COO, Rocky Mountain Innosphere, 970.221.1301, ryan.speir@rmi2.org.
Contact the City of Fort Collins for questions on retention, expansion, incubation or relocation
Josh birks, City of Fort Collins, Economic Advisor 970.221.6324, jbirks@fcgov.com
entrepreneurial resources fortcollinsinnovation.com
Rocky Mountain innosphere rockymountaininnosphere.com
doing business in Fort collins fcgov.com/business
community information ftcollins.com
Fort collins cluster performance Report available on fcgov.com/business
contactS
community awardS
Following your passions and pursuing your career don’t have to be mutually exclusive.
• one of the nation’s “emerging epicenters” for innovation and high-tech job growth in green
technology: Wired Magazine - June 2011
• Fort collins, one of the top 10 cities adopting smart grid technology:
U.S.News and World Report - May 2011
• third happiest Metro Region, Fort collins-Loveland, co: Gallup-Healthways Well-Being Index - 2011
• 2011 governor’s arts award: Colorado Creative Industries and the Colorado Office of Economic
Development and International Trade - March 2011
• one of the top 10 best american cities to invest your real estate dollars in 2011:
Trulia.com - December 2010
• named 5th Most educated city in the country based on education levels of our adult population:
Portfolio.com - December 2010
• Fourth best state for business, colorado: Forbes magazine - October 2010
• one of the top 10 best college towns: Small-Sized Cities Category, USA Today - September 2010
• one of the top six ‘smarter cities’ for energy:
Natural Resources Defense Council, (population 100,000-249,999) - August 2010
• 6th best place to Live in the nation: Money Magazine - July 2010
fcgov.com/business
4
1
1
Target Industry Cluster
Overview/Update
August 9, 2011
2
Agenda for Work Session
• Overview/Update on Target Industry Clusters
• Dialogue with representatives from active Industry
Cluster groups
• Feedback from City Council
– Sufficient Information?
– Suggestions/Future Projects?
ATTACHMENT 8
2
3
Presentation Outline
• Overview of the Target Industry Cluster strategy
• Update on each Target Industry Cluster
– Current Funding
– Employment Data
– Strategic Plan/Goals
– Active Projects
4
Cluster Strategy Background
3
5
Timeline
• 2004: Economic Vitality and Sustainability Group
• 2005: Initial Economic Action Plan
• 2006: Target Industry Cluster Study
• 2010: City Council Resolution supporting Target
Industry Clusters
6
Triple Helix
• Leverage strengths/mitigate weaknesses:
– University: research/insight/innovation
– Government: pilot projects/policy
– Private Sector: efficiency/capital
•Outcome:
– Greater innovation reach
– Real Projects
– Local Benefit & Economic Health
4
7
Target Industry Cluster Strategy
• Clean Energy
• Water Innovation
• Bioscience
• Technology (Hardware/Software)
• Uniquely Fort Collins
8
Innovation Economy Model
5
9
Clean Energy
10
Clean Energy Funding
• Contributes $25,000 in on-going support
• Private contributions total $150,000
• Public/Private Leverage of 6:1
• Additional $100,000 for supply chain study
• Total Leverage of 10:1
6
11
Clean Energy Employment
2,481
2,979
3,133 3,078
2007200820092010
Source: Colorado State University
12
Clean Energy Composition
7
13
COLORADO CLEAN ENERGY CLUSTER
2010 – 2015 Strategic Plan
Retain and expand existing companies
– 1650 new primary jobs
Attract/Incubate 6-8 new businesses per year
– Emphasis on HQ companies
Project of regional significance
– 1 year: CO State Land Board
Project of global significance
– 5 years: FortZED
14
8
15
Initiatives-Based Approach
16
• Renewable and Distributed Systems Integration Project ($11M)
– Aggregating 24 distributed assets across 5 sites to demonstrate 20% peak load
reduction on two distribution feeders
• Renewable Energy Communities Grant ($3M)
– Energy efficiency and renewable energy on public buildings
• Smart-Grid Investment Grant ($34M)
– Metering, controls, and system upgrades for residential and commercial
accounts city-wide
• Green Restaurant Initiative (volunteer base)
– Voluntary energy efficiency and communications campaign targeting restaurants
and consumers
• Community Energy Challenge (volunteer base)
– Outreach initiative in FortZED to educate, engage and empower residents to get
involved
FortZED Progress to Date
9
17
• Over the next five years, establish
this strong international network of
cleantech clusters
• Colorado Clean Energy Cluster and Copenhagen Cleantech Cluster
have signed a partnership agreement regarding:
- build up of the network
- running and heading of ICN
- creation of a shared knowledge platform
- project management
ICN Work Plan
18
Improving the competiveness of Colorado clean energy companies
• Establish an understanding of supply chain performance and needs
• Provide an effective on-the-ground channel to support businesses
First action-focused initiative to expand and strengthen the statewide clean
energy supply chain
• An identified priority by economic development organizations
• A repeated request by Clean Energy companies
• Fits with CCEC task oriented approach
• Partnering state-wide
Colorado Clean Energy Supply Chain Initiative
10
19
Water Innovation
20
Water Innovation Funding
• City Contributes $20,000 in on-going support
• Private contributions total $46,000
• Public/Private Leverage of 2.3:1 (First Year)
• Additional $135,000 for Alternative Transfer Pilot
Project
• Total Leverage of 9:1
11
21
Water Innovation Employment
1,222
1,365 1,374 1,406
2007 2008 2009 2010
Source: Colorado State University
22
Colorado Water Innovation Cluster
Goals
• Establish our region as a global leader in water
innovation
• Increase regional water-related technology
commercialization
• Contribute to the economic vitality of our
community
Metrics
• Increase in outside capital
• Media hits
12
23
Lake Canal – Pilot Project
• Evaluate Alternative Agriculture to Urban Water
Transfer method
• Leverage technology to evaluate “on farm”
techniques
• “On farm” changes create a true savings in water
• Package water savings to create a block of
leasable water
24
Lake Canal – Pilot Project
13
25
Water Innovation Network
• Instrument the Cache la Poudre watershed
– Real Time monitoring of flow and quality
– Eventually 60 real time monitoring stations
• Pilot Project
– Waste Water Treatment Plant optimization
– Specifically relating to Phosphorus and
Nitrogen output
– Initial 8 monitoring stations
26
WIN Technology Platform
Completely Pristine
Agricultural
Influenced
Urban
Influenced
Mixed Land Use, Combined
Socioeconomic factors
14
27
Bioscience
28
Bioscience Funding
• City Contributes $40,000 in on-going support
• Other contributions total $10,000
• Total Leverage of 0.25:1
15
29
Bioscience Employment
2,017
2,141
2,037 2,073
2007 2008 2009 2010
Source: Colorado State University
30
Bioscience Composition
16
31
• 2011 Strategy
– Diversify funding sources
– Leverage Colorado Bioscience Association;
create a Northern Colorado chapter
– Build off Research Innovation Center; nearly
leased up
– CBSA Bio Boot Camp program and content
– Colorado BioSage advisor group
– Creation of RMI/Kauffman BioFastTrac
content, coaches and coalition
32
Technology
17
33
Hardware/Software Employment
4,265 4,361 4,147
4,526
1,681
1,992 2,036
2,200
2007200820092010
Source: Colorado State University
5,946
6,353 6,183
6,726
34
Hardware/Software Composition
18
35
Uniquely Fort Collins
36
UNIQUELY FORT COLLINS
Includes companies such as:
– Arts & Culture
– Tourism
– Breweries
– Creative Firms
Arts Incubator
– Physical space
– Leadership & promotion
19
37
UNIQUELY FORT COLLINS
• Be Local Northern Colorado
– Indoor Winter Farmer’s Market
– Business web search engine
– 20/20 pledge
– Pocket guides
• Shop Fort Collins First
– Spring into Action
– Home for the Holidays
38
Uniquely Fort Collins Employment
1,020
1,083 1,091
1,046
2007 2008 2009 2010
Source: Colorado State University
20
39
City Council Feedback
1. Does City Council have sufficient information
regarding the current activities of the Target
Industry Clusters?
2. Does City Council have any suggestions or
thoughts regarding potential future projects or
activities for the Target Industry Clusters?
technology: SoFtware
Industry growth in Fort Collins: 30.9%
Industry growth in Nation: -3.0%
# of companies 357
# of employees 2,200
Average earnings $75,979
BioScience
Industry growth in Fort Collins: 2.8%
Industry growth in Nation: -3.3%
# of companies 54
# of employees 2,073
Average earnings $61,337
technology: hardware
Industry growth in Fort Collins: 6.1%
Industry growth in Nation: -2.7%
# of companies 343
# of employees 4,526
Average earnings $95,214
water innovation
Industry growth in Fort Collins: 15.1%
Industry growth in Nation: -11.3%
# of companies 36
# of employees 1,406
Average earnings $61,255
3
developing new products to treat and diagnose
infectious diseases
• Includes a bioscience business incubator
• Launching pad for scientific discoveries which
are patented and brought to market
• Faculty and students, as well as startup
companies and other private-sector scientists
use the lab
2
• OptiEnz
• Regenisis
• Riverside
• Rubicon
• Stewart Environmental
• Symbios
StrengthS
• Headwater state
• Abilities of Water Innovation Cluster
members to produce long-term solutions to
global water issues.
• Hydraulic engineering programs at CSU
which attract international students for
implementation in their home countries
grantS and reSearCh FUnding
U.S. Dept. of Agriculture National Science Foundation
Urban Drainage and Flood Control District Office of Naval Research
2
• Variety of technical and creative jobs
• Supports other creative companies
• Adds value to our high quality of life
• Online resource for Fort Collins Arts District,
fortcollinsarts.org
2
• Information Technology Experts, Inc. (ITX)
• Integware, Inc.
• Red Hen Systems
• Riverside Technology, Inc.
• Secure 64
sample harDWare
companies
• AMD
• Avago
• Hewlett Packard
• Intel
• LSI
• National Semi-Conductor
• NVIDIA
• Pelco
strengths
• Synergistic relationships between other
software companies along the
Colorado I-25 Corridor
• Access to skilled workforce
• Reliable and affordable infrastructure
• High quality of life
• Denver International Airport, one hour’s drive
energy supply chain
A new initiative is in the works that will map
out the supply chain for the region’s wind and
photovoltaic industries. Before this study, there
was no proactive, focused, statewide renewable
energy supply chain analysis or development
strategy in Colorado. The industry will use the
results of the supply chain study to maximize job
creation by identifying recruitment opportunities
of companies outside our area and forging new
business relationships with existing manufacturers
to produce more products in Colorado.
The study will take place in 2011. Learn more about
the initiative at coloradocleanenergy.com.
2
• NoCoBio Northern Colorado Bioscience
Cluster nocobio.com
gRants and ReseaRch Funding
Colorado State University U.S. Depts. Of Energy and Agriculture
Center for Disease Control Vice President of Research, Colorado State University
National Science Foundation Fund 1, Colorado State University
2
541
Professional,
Scientific, and
Technical Services
15 17 22 22 4 25.0% 1.40 1.21
611 Educational Services 42 53 62 56 15 35.2% -5 -8.6% 0.49 0.50
711
Performing Arts,
Spectator Sports, and
Related Industries
198 190 192 208 10 5.0% 16 8.3% 1.35 1.34
712
Museums, Historical
Sites, and Similar Inst
17 18 15 12 -5 -29.4% -3 -20.0% 0.14 0.13
722
Food Services and
Drinking Places
118 126 119 107 -11 -9.3% -12 -10.1% 1.41 1.33
TOTAL 1,020 1,083 1,091 1,046 26 2.5% -46 -4.2%
Sources: CDLE QCEW, CSU, and BLS
Chart A.V.1: Average Employment in the Uniquely Fort Collins Cluster from 2007Q2 through 2010Q2
13 11 6 3 -10 -76.3% -3 -50.0% 0.67 2.00
541
Professional, Scientific,
and Technical Services
264 254 225 186 -78 -29.6% -39 -17.5% 1.40 1.21
551
Management of
Companies and
Enterprises
146 151 140 142 -4 -3.0% 2 1.2% 0.34 0.27
621
Ambulatory Health
Care Services
10 13 11 10 0 0.0% -1 -11.8% 1.03 1.06
923
Administration of
Human Resource
Programs
82 92 103 108 25 30.8% 4 4.2% ND 0.31
TOTAL 2,017 2,141 2,037 2,073 57 2.8% 36 1.8%
ND: Not Disclosable
Sources: CDLE QCEW, CSU, and BLS