NoCo Chamber of Commerce Jobs Summit

Income (and jobs) are important to individuals. Good financial health is almost as important as good physical health. I decided to take a break from writing about physical health and post some notes from a meeting I attended today.

Future of jobs in NoCo (Northern Colorado) – (31 July 2013) Presented by the Fort Collins Chamber of Commerce

I will include each of the speakers and have a point summary of my thoughts on what each of them said.

Technology Job Trends in Northern Colorado

Martin Shields, CSU Regional Economist

• Tech sector has lost more jobs.
• 600 layoffs at Center Partners yesterday.
• Efficiency and productivity up, so job growth slower.
• Region has added about 5,000 jobs in health care, consumption sector, manufacturing.
• All other areas are stagnate.  Computer manufacturing on steep decline.
• With Affordable Care act and aging population, driving healthcare growth.
• In 40 years Fort Collins has grown from a small cow town to a sophisticated metropolis.
• Advanced technology industries hard to define, so based on qualifications of the work force.
• Dot com bubble easily seen in Colorado economy. In last ten years the US.tech sector growth is much better than Colorado.
  25% decline in high tech jobs in Colorado since 2000. Back at level (7.3% of overall job) it was in 1980.
• Most high tech venture capital going to coastal cities and not to Colorado. Over time the concentration on the coast of venture capital is getting stronger.
• Presentation slides will be on line later.
• In 2001 tech workforce 73% higher than national average, now only 53%.
• HP will continue to be an important partner, but life science much larger growth area.
• With international competition so strong, it is hurting local economy, we need to have clusters of a particular industry to have a growth area. Example: microbreweries.
• Need to move forward, or we will be another Detroit.

Economic Development: ignite style
– 15 seconds per slide, 5 minute presentations

Josh Birks City of Fort Collins Health Director

• Several companies have invested in Fort Collins, as well as the city investments. Fort Collins investments are just seed money to private investments. Midtown corridor is a hopeful new example.
• Unemployment is about 5.3%.
• By 2015 we should have a robust economy, new mall, Max buses, new Woodward Governor HQ, etc.
• Fly wheel, series of Small Steps to make momentous changes in the community.

Walt Elish, CEO of Northern Colorado Economic Development Corporation

• Opportunities best for 24-35 age group. We are still not at the pre Great Recession level.
• Has information on demographics. Works with existing and desired companies for NoCo. Works closely with various government units to make sure that the two are in agreement with regard to the companies wanted for this region.
• The Quality of Life of the residents of this are dependent on Primary Job (salary and benefits so that people can afford the life style they want).

Aging and the Labor Force in Colorado and Larimer County

Cindy DeGroen, Projections Demographer at Colorado Department of Local Affairs

• Aging of the Baby Boomers will have a major factor in Colorado.
• Before the Baby Boom population that moved to Colorado in the 1980s-2000s, Colorado had a very low 65 and older population.
• With Baby Boomers deciding to stay in Colorado, the 65+ demographics is rapidly shifting.
• Rural counties are losing population, but the percentage of 65+ people is increasing, because they are not leaving like the younger generations are.
• Front Range and Western Slope are showing increases in population and in those 65+.
• People over 65 growing faster throughout Colorado than any other age groups.
• Currently, 10% of population of Colorado are 65+, but lower than most other states. We are just catching up with other states.
• Colorado not an attractive place for people 65+. Very few of this age group move to Colorado, most growth due to aging population (people who choose not to move as they grow older).
• In 1980s Colorado was attractive to Baby Boomers.
• In general, 65 and over spending on services and not on goods.
• Colorado usually attracts people between 25 and 40. Rarely attracts older people. Larimer County not a destination for retirees.
• Before now, Colorado has never had an older population. Consumption of health care increases with older population. For each person 65+, it creates at least 0.1 jobs in health industry.
• In this decade growth in households lead by someone over 65 will increase by 80% in this decade. About one-third of households will be lead by someone 65+.
• 69% of those 65+ will have a disability.
• People 55+ are staying in work force longer. Younger people getting more schooling so are staying out of the labor force longer.
• Labor force is aging. Diversity is lager for younger population.
  In time of transition because of baby boomers, after they mature, later generations will keep proportions about the same.

Jacob Castillo, Larimer County Workforce Economic Development Manager

• Education now preschool through death and is more technical than it used to be.
• Employers want people who are productive in 30-90 days.
• Workforce Center can help businesses as well as individuals.
• Side note – The Larimer County Workforce Center has great classes. If their employer classes are as good as their future employee classes, then they are a big help to the community.

Jerry Thurber Larimer County, Workforce Investment Board Member

• A skill you learn today will be obsolete in 3 years.
• New employment economy driven by technology and statelessness.
• As needed skills change, current (and sometimes future) employees have a tremendous skills mismatch for a new position.
• Finding technical workers who either live or are willing to move to this area is critical to our success.
• We need to strengthen math skills for K-12 education
• The areas that we need to emphasize in schools are expressed by the acronym STEAM:
  • Science
  • Technology
  • Engineering
  • Arts (design)
  • Mathematics
• These areas are critical to improve in our education system, otherwise we will not be able to compete in the world marketplace. Side Note: I agree strongly with this point, after earning my Colorado Principal license from CSU I applied for the PhD program in order to help the schools improve on the math, technology, and science curriculum. CSU said that they had no one in the department who could help in this area, so could not help me earn a PhD emphasizing STEAM area improvements in education.

Success Snapshot: Woodward Governor

Rocky Scott from Woodward Governor on Why Woodward Governor Chose Fort Collins for Their New Headquarters

• In the next few years, Rocky expects 10% growth expected in Woodward Governor market share, 3% growth in jobs.
• What does a community need to do to get large companies like Woodward Governor?
  • Speed
  • Highly educated workforce
  • Attractive location that will attract strong talent
  • Right to work state
  • Reduced life cycle costs
  • Amenities
  • These requirements can be divided into Hard and Soft requirements
  • Effective/efficient government
  • Low risk
  • Low conflict
  • Transportation
• 60% of population in Fort Collins has college degrees
• People want to be where there is a good quality of life.
• Pouder River in Lincoln Triangle was ideal location for Woodward Governor. They love the river and its potential for Fort Collins
• Side Note: They bought the old Link-N-Greens Golf Course at 777 E Lincoln Ave., Fort Collins, which was first settled as a farm.
• Woodward Governor is planning to preserve the old barn and grain towers
• They like the fact that the new sight is close to library, museum, and river. They plan to develop the property next to the river as a park for city residents.
• Plan to build out over next 40-50 years. Headquarters will be the first building built. Photovoltaic energy to be used.
• Occupancy is planned for 2015. Six months later they will be able to ship product from the site.
• Want rail transportation around downtown like the old Birney street car system that used to be in Fort Collins
• Side Note In order to achieve the latter goal, I would highly recommend that Woodward Governor works with the Fort Collins Municipal Railway Society.

(When) will the Economy Pickup?

JD Foster – US Chamber of Commerce

• The economy is not there yet!
• What is holding the economy back?
• If the economy is to withstand hits, it needs full employment.
• Recovery started in 2009, but we have been falling behind ever since. We have not gotten back to where we were before the Great Recession.
• All data says the economy is recovering, but no where near what the recoveries have been in the past.
• Slow growth is the new normal, people argue that thesis as good as it gets and India and China will overtake us.
• Use rubber band, top is 0% unemployment, bottom is full employment (about4%-5% unemployment). When unemployment goes above this level, it is like a rubber band being stretched, it wants to return to normal. This is the first time this has to happened.
  Uncertainty includes tax policy, Dodd-Frank, and Obamacare. Some companies have huge committees to try to figure out what the effects these will haven’t heir businesses.
• All the uncertainties from Washington has increased unemployment by at least 1.3%.
• High taxes proposed by government has slowed growth.
• Household wealth was crushed in 2008-2009. Start-ups usually funded by household wealth. Recovery will take off when household wealth fully recovers.
• Recovery fueled by moving capital and other resources to high productive activities. Capital adjusts quickly, but labor does not adjust as quickly. In past, our strength was the flexibility of our workforce. American workers usually have been willing to move to find the opportunities availability.
• Companies need to be more easily hire and fire and workers need to be able to move. Housing bubble not only ruined housing market, it also made many people “under wat” and they could not sell their home so could not move.
• Housing prices are now starting to increase, so people will be better able to sell their homes and move.
• When our economy is doing well,shocks do not  affect the economy.
• Quantitative easing is like pushing on a string. Can buy at a low rate, but reversing it will be very expensive, pushing up interest rates.
• Fed chooses words very carefully. Foreign investments in the US have also kept the interest rates down. But the interest rates will move rapidly when the Fed starts to change. US debt has increased by 30% compared to the economy. This is the first time in history.
• No budget in US is a problem.
• Europe has half it’s countries in recession, rest in worse shape. Many countries have high levels of unemployment. They try to solve this by increasing taxes, which worsens they employment picture.
• China is in a big growth bubble. How much of their growth is real?
• China is not adequately auditing local government rates.
• If US interests rise, dollar will increase in value, Chinese Yuan tied to dollar,will this hurt them.
• Social Security and Medicare and Medicaid do not serve anyone very well.we need to understand we have and entitlement problem. We need to address these entitlement programs, if we possibly can. When will we do it.
• Winston Churchill said that “The Americans will choose the correct solution, after they have exhausted all other possibilities”

Emily Wilson – Rocky Mountain Innosphere Director of Communications

• Works with start ups and entrepreneurs.
• Incubators for Bioscience, tech, and clean tech.
• Pipeline development – use education and other resources to start up ideas that may eventually a turn into companies..
  NetZeroCities.?
• After Hours presentations can keep you up-to-date on innovations in NoCo.
• Text to 22828 to keep informed.

David May, CEO Fort Collins Area Chamber President

• Stay focused on job creation.
• Read Coming Job Wars
• FC residents hungry for good jobs.
• FortCollinsWorks.com
• Lobby various levels of government. Work closely with city of Fort Collins to recruit companies.
• Polls people who run for City Council, make sure they help the people and companies of Fort Collins.
• Have great partners who supported this meeting.
• Adjourned Meeting