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HomeMy WebLinkAboutMemo - Mail Packet - 3/19/2019 - Memorandum From Seonah Kendall Re: Update: 2018 Northern Colorado Business Retention And Expansion ReportBerthoud Town of Wellington Estes Park EDC Lar t Small Business Development Center Loveland Cham mmerce Upstate CO Economic Development One NO Berthoud Town of Wellington Estes Park EDC Lar Small Business Development Center Loveland Cham mmerce Upstate CO Economic Development One NO Berthoud Town of Wellington Estes Park EDC Lar Small Business Development Center Loveland Cham mmerce Upstate CO Economic Development One NO Berthoud Town of Wellington Estes Park EDC Lar t Small Business Development Center Loveland Cham mmerce Upstate CO Economic Development One NO Berthoud Town of Wellington Estes Park EDC Lar Small Business Development Center Loveland Cham mmerce Upstate CO Economic Development One NO 1 Berthoud Town of Wellington Estes Park EDC elopment Small Business Development Center ea Chamber of Commerce Upstate CO Economic City of Loveland Town of Berthoud Town of Economic and Workforce Development Small mber of Commerce Fort Collins Area Chamber ment One NOCO City of Fort Collins City of n Estes Park EDC Larimer County Economic and opment Center Loveland Chamber of Commerce pstate CO Economic Development One NOCO Berthoud Town of Wellington Estes Park EDC velopment Small Business Development Center d Town of Berthoud Town of Wellington Estes orce Development Small Business Development Collins Area Chamber of Commerce Upstate CO ort Collins City of Loveland Town of Berthoud County Economic and Workforce Development hamber of Commerce Fort Collins Area Chamber ment One NOCO City of Fort Collins City of n Estes Park EDC Larimer County Economic and opment Center Loveland Chamber of Commerce pstate CO Economic Development One NOCO Berthoud Town of Wellington Estes Park EDC velopment Small Business Development Center d Town of Berthoud Town of Wellington Estes orce Development Small Business Development Collins Area Chamber of Commerce Upstate CO ort Collins City of Loveland Town of Berthoud County Economic and Workforce Development hamber of Commerce Fort Collins Area Chamber Business Retention and Expansion Annual Report 2018 NORTHERN COLORADO EXECUTIVE SUMMARY METHODOLOGY INTRODUCTION City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO 3 The Larimer County Business Retention and Expansion (BR&E) Partnership is a consortium of economic and workforce development entities supporting primary employers through intentional and meaningful contact and relationship development. Members of this effort include: City of Fort Collins, City of Loveland, Town of Windsor, Town of Berthoud, Town of Wellington, Larimer County Economic and Workforce Development, Loveland Chamber of Commerce, Fort Collins Area Chamber of Commerce, Estes Park EDC, and One NoCo. Through planned and coordinated efforts we gain greater engagement with the business community, promote job growth and effectively identify larger community issues we can address as a partnership. This report includes data points covering the Larimer and Weld County region because the two counties have an interconnected economy and a shared laborshed. Throughout the report the reference to Northern Colorado includes both Larimer and Weld Counties. Year-over-year growth in gross regional product, low unemployment rates and strong job growth indicate a healthy regional economy. Additionally, the BR&E Partnership gathered 315 responses from regional businesses which show an optimistic view of the economy, as well as positive reports of business growth and expansion. However, businesses consistently reported workforce as a major challenge. Cited are challenges of finding talent, employee retention and a lack of skilled labor. In 2018, members of our partnership gathered data from business interviews and from a short questionnaire that was distributed during business events throughout the region. All collected data from the interviews and questionnaires is strictly confidential and findings are only reported in aggregate. Berthoud Town of Wellington Estes Park EDC elopment Small Business Development Center ea Chamber of Commerce Upstate CO Economic City of Loveland Town of Berthoud Town of Economic and Workforce Development Small mber of Commerce Fort Collins Area Chamber ment One NOCO City of Fort Collins City of n Estes Park EDC Larimer County Economic and pment Center Loveland Chamber of Commerce state CO Economic Development One NOCO Berthoud Town of Wellington Estes Park EDC elopment Small Business Development Center d Town of Berthoud Town of Wellington Estes orce Development Small Business Development STATE OF THE REGIONAL COMMUNITY City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO 4 5 The BR&E Partnership is comprised of members representing both Larimer and Weld Counties. These two counties comprise a unique economic region. Our region’s geography has supported significant economic development and population growth along the I-25 corridor, and because of this, we see healthy commuter exchange between cities and towns throughout the region. Figure 1: While our region covers a very large geographic area, the center of our region, from an employment perspective, is located in between Greeley, Fort Collins and Loveland. In this map, the size of each blue dot shows the concentration of jobs. High employment Census Blocks have larger dots which creates an effect where job centers (overlapping dots) are represented by blue clusters. U.S. Census Bureau. Data Source: OnTheMap Application and LEHD Origin-Destination Employment Statistics (Beginning of Quarter Employment, 2nd Quarter of 2015). Worker Destinations by Census Block. Primary Jobs (unique workers) only. Accessed September 2018. Employment center point calculated in ArcGIS 10.5. Presentation map produced in QGIS, December 2018. BUSINESS CLIMATE City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO 6 7 BREAKDOWN OF BUSINESS RESPONDENTS 76% of interview respondents were from locally owned businesses. Respondents were in the aerospace, agriculture, beverage production, bioscience, construction, consulting, distribution, financial services, health & wellness, manufacturing, real estate, retail and technology industries. PERCEPTION OF ECONOMY Respondents were asked if their feelings about the Northern Colorado economy were up, neutral or down. 70% of respondents stated their feelings about the Northern Colorado economy were up, 26% responded their feelings were neutral, 3% down and 1% did not respond. LOCATION Questionnaire respondents were asked if they would consider relocating their business outside of Northern Colorado: 79% said no, 16% said yes and 5% did not respond. Interview respondents were asked if they were considering any of the following options (respondents could choose more than one): • 42% stated they were considering expanding at their current facility. • 48% responded they were considering expanding at another location. • 12% were considering moving. • 15% were considering merging with or acquiring another business. • 6% were considering selling their business. • 6% indicated there were other changes they were considering. • One business reported they were considering downsizing. • No businesses reported considering closing. For those who responded that they were considering moving, selling or downsizing, the most commonly stated reason was due to an overcrowded building. Other reasons included retirement, low work productivity, high state/local taxes, lease expiration, insufficient talent supply and labor costs. EMPLOYMENT 70% of interview respondents reported they expect company employment to increase in the next five years. 18% anticipate company employment to stabilize, 12% did not respond and no one reported an anticipated decrease in employment. 70% of respondents feel positive about the Northern Colorado economy BUSINESS CLIMATE OPPORTUNITIES Respondents were asked to identify the greatest opportunity facing their City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO 8 9 Emsi. 2018.3 Industry Table, Larimer + Weld, QCEW Employees, Non-QCEW Employees + Self Employed 2018 EMPLOYMENT BY INDUSTRY WHERE DO RESIDENTS OF LARIMER & WELD COUNTIES WORK? WOULD EMPLOYERS IN LARIMER & WELD COUNTIES CONSIDER RELOCATION? WHAT CHANGES ARE EMPLOYERS CONSIDERING MAKING TO THEIR BUSINESS? BUSINESS CLIMATE WHERE DO EMPLOYEES IN LARIMER & WELD COUNTIES LIVE? No Yes Did not respond GOALS & ACTIVITIES FOR 2019 City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO City of Fort Collins City of Loveland Town of Berthoud Town of Wellington Estes Park EDC Larimer County Economic and Workforce Development Small Business Development Center Loveland Chamber of Commerce Fort Collins Area Chamber of Commerce Upstate CO Economic Development One NOCO 10 11 The BR&E Partnership was formed with the purpose of gaining greater engagement with the business community, promoting job growth and effectively identifying larger community issues we can address as a partnership. To meet this purpose, we plan to focus on the following areas in 2019: Expand the number of businesses the partnership engages with through outreach efforts. Specifically, 1 primary employers. Refine and expand the partnership’s data collecting 2 and data sharing capabilities. Expand our coordination with economic 3 development partners in Weld County. berthoudeconomicdevelopment.com cityofloveland.org/departments/ economic-development larimer.org/ewd townofwellington.com/ 35/Business-Development fcgov.com/business northerncolorado.com fcchamber.org larimersbdc.org estesparkedc.com loveland.org larimer.org/ewd windsorgov.com/744/ Economic-Development City of Fort Collins City of Loveland Town of Larimer County Economic and Workforce Deve Loveland Chamber of Commerce Fort Collins Are Development One NOCO City of Fort Collins Wellington Estes Park EDC Larimer County E Business Development Center Loveland Cham of Commerce Upstate CO Economic Developm Loveland Town of Berthoud Town of Wellington Workforce Development Small Business Develo Fort Collins Area Chamber of Commerce Ups City of Fort Collins City of Loveland Town of B Larimer County Economic and Workforce Dev Loveland City of Fort Collins City of Loveland Park EDC Larimer County Economic and Workfo Center Loveland Chamber of Commerce Fort Co Economic Development One NOCO City of Fo Town of Wellington Estes Park EDC Larimer Co Small Business Development Center Loveland Ch of Commerce Upstate CO Economic Developm Loveland Town of Berthoud Town of Wellington Workforce Development Small Business Develo Fort Collins Area Chamber of Commerce Ups City of Fort Collins City of Loveland Town of B Larimer County Economic and Workforce Dev Loveland City of Fort Collins City of Loveland Park EDC Larimer County Economic and Workfo Center Loveland Chamber of Commerce Fort Co Economic Development One NOCO City of Fo Town of Wellington Estes Park EDC Larimer Co Small Business Development Center Loveland Ch Report printed courtesy of the Investors of Northern Colorado Prospers NorthernColoradoProspers.com business, though many identified multiple, and the three most commonly reported were related to growth/expansion, talent/hiring and marketing. GROWTH/EXPANSION 30% stated “growth” or “expansion” as their greatest opportunity. When stating “growth,” respondents said they were encouraged by the growth of the population, saw positive growth in their market, expected continued growth in the local economy and/or planned to grow the size of their business. Expansion also had many contextual meanings. Some respondents stated plans for an expansion of their facility, and others expected an expansion in their services or products. TALENT/HIRING 9% stated “talent” or “hiring” as their greatest opportunity. MARKETING 6% stated “marketing” as their greatest opportunity. THREATS Respondents were also asked to identify the greatest threat facing their business, though many identified multiple. The most commonly identified threats were related to labor, regulations and competition. LABOR 24% of respondents stated difficulties finding qualified candidates/ lack of skilled talent, retention, and the cost of labor. REGULATIONS 11% of respondents specified regulations such as tariffs, development reviews (subject to specific jurisdictions), and FDA regulations/inspections as the greatest threat to their business. COMPETITION 9% of respondents reported competition internal to the region, external from the region and online. ollins Area Chamber of Commerce Upstate CO ort Collins City of Loveland Town of Berthoud ounty Economic and Workforce Development hamber of Commerce Fort Collins Area Chamber ment One NOCO City of Fort Collins City of n Estes Park EDC Larimer County Economic and pment Center Loveland Chamber of Commerce state CO Economic Development One NOCO Berthoud Town of Wellington Estes Park EDC elopment Small Business Development Center Town of Berthoud Town of Wellington Estes orce Development Small Business Development ollins Area Chamber of Commerce Upstate CO ort Collins City of Loveland Town of Berthoud ounty Economic and Workforce Development hamber of Commerce Fort Collins Area Chamber ment One NOCO City of Fort Collins City of