BREV Executive Summary

1
BREV Executive Summary

• Effective community development programs require
  three elements
• (1)   support for expansion and retention of
  existing business
• (2)   attraction of new business to diversify the
  economy as it changes
• (3)   encouragement for the creation of new
  wealth-generating enterprises
• The Business Retention and Expansion Visitation
  Program (BREV) is a local initiative to promote
  the first of these elements.
• Since 2001, layoffs in the primary workforce and
  the deployment of military personnel have
  resulted in nearly 20,000 fewer persons employed
  locally. While some losses have been offset by
  some gains in the aerospace/defense and the
  services sectors (customer service,
  telemarketing, mail order, etc.), the effects
  have also impacted local secondary businesses.

2
BREV Executive Summary

• As a result of the Year 2000 Pikes Peak Region
  Economic Development Strategy, the Economic
  Vitality Group (EVG) recommended to expand and
  improve the coordination of business retention
  initiatives. Economic development strategies
  strive to implement policies and programs that
  meet employers needs and enable the community to
  quickly respond to new opportunities.
• Recent Economic Development Strategies
• 1988
• 1994
• 2000
• Springs into Action 04

3
BREV Executive Summary

• The BREV program is designed to increase the
  communication level and understand and address
  local issues. Beginning in February 2003, local
  economic development professionals, paired with
  community leaders, embarked on this project to
  determine the overall business climate and to
  support local firms in their quest for
  excellence. The report will summarize not only
  the results of the survey, but act as a template
  in support of the Springs into Action 04
  Economic Development Strategy.

4
BREV Executive Summary

• Visitors
• 22 economic development professionals and EVG
  members
• 38 elected officials and other community leaders
• Less than 5 of the estimated 17,000 businesses
  in the region are primary employers. However,
  the small number of these businesses employ an
  estimated 108,000 citizens.
• Primary Employer Facts (estimated)
• Private sector - 60,000 employees
• Public sector - 48,000 employees (military
  etc.)

5
BREV Executive Summary

• BREV Facts
• 208 firms, 53,000 employees identified (private
  sector)
• 120 firms, 40,000 employees visited (private
  sector)
• 6 sectors of the local economic base
• Firms ranged in size from 15 to over 1000
  employees.
• The majority of employers are very positive about
  doing business in Colorado Springs. The responses
  indicate a strong belief that Colorado Springs
  has a lot to offer existing industry and
  prospective business. Some benefits of being
  located in Colorado Springs include
• High quality of life ( cost of living,
  aesthetics, recreation)
• Excellent workforce (available, qualified,
  productive)
• Business climate (low tax environment)
• Location
• Supplier network
• Military presence

6
BREV Executive Summary

• A number of companies also had similar
  reservations about the area when asked to
  identify community weaknesses. Many of these
  issues are not new, but should serve as a serious
  reminder that the community can always take steps
  to improve the business climate. The main
  weaknesses of the community include
• Transportation (I-25, east/west mobility)
• Air service
• Workforce (engineers, trades, entry level)
• Business climate
• Local regulation
• Community problems

7
BREV Executive Summary

• Barriers to growth in the region include
• Loss of manufacturing base (impacting local
  suppliers)
• Absence of business name recognition (Larry
  Ellison or Bill Gates vs. John Elway)
• Inadequate big City conveniences (public transit,
  urban core)
• Lack of major research university
• Workforce related
• Lack of incentives, financing

8
BREV Executive Summary

• A vital function of the BREV program is to
  address local issues firms are facing. Through
  the cooperation of the Economic Vitality Group,
  over 80 issues have been addressed from over 50
  companies. Several firms were pleasantly
  surprised to receive responses in regards to
  their specific issue. Some key issues addressed
  related to
• Expansion and retention services including
  political networking
• Financing
• Workforce attraction and training
• Local regulation
• Utility related
• Community problems

9
BREV Executive Summary

• Other accomplishments related to resolving issues
  have been
• 500,000 awarded in workforce training dollars
  (trained by PPCC)
• community collaboration in support of certain
  target industries
• company awareness of existing available programs
  and services
• A possible sign of recovery, resulting from the
  surveys, is the optimism of local companies
  regarding expansion plans. Many of the companies
  surveyed early in the year are now expanding and
  creating jobs. It is interesting to note that
  many of the firms who indicated they would be
  expanding are doing so on an incremental basis,
  and many are also waiting for a clear recovery in
  the economy.

10
BREV Executive Summary

• Expansion estimates of expanding companies
  through 2005 are
• 2,923 new jobs projected
• 237,914,250 in new investment
• 1,278,000 SF of space required
• Other local highlights include
• companies being forced to do more with fewer
  resources and keep costs low (a trend that may
  continue due to worldwide competition)
• technology increasing productivity and
  competitiveness
• technology reducing the number of employees
  needed to produce products
• companies facing severe competition for contracts
• companies facing competition for employees
• firms diversifying into new markets
• firms developing new products
• significant amount of RD being undertaken
  locally
• weak dollar assisting firms with an international
  market

11
BREV Executive Summary

• In general, local companies are satisfied doing
  business here. Some fundamental issues and other
  concerns that require significant investment from
  the public sector remain a stumbling block.
  However, it does not appear to have a major
  impact on the potential expansions in the future.
  
•  Although many of these findings may have been
  intuitively known, it is important to validate
  and quantify the perceptions about doing business
  locally. The baseline information may now be
  used for future reference to identify economic
  trends and further analysis. It is a positive
  first step in recognizing the importance of the
  local primary employer base. The increased
  communication between the public and private
  sectors resulting from BREV should prove
  invaluable. For example, Springs into Action 04
  has encompassed more participants than ever
  before signaling a sincere concern and
  cooperation in sustaining the economic vitality
  of the region. The mission is clear continue to
  support primary employers as they continue to
  support the community.