Prosper in Pueblo: An economic development vision for 2017

While launching a Denver commercial and losing 300 jobs, Pueblo’s jobs recruiting group aims high once again.

Ashleigh Hollowell Blocked Unblock Follow Following Mar 13, 2017

“Are you ready?” is the first line in a Pueblo Economic Development Corporation commercial that will soon air in Denver television markets.

The commercial is another effort in bringing primary jobs to Pueblo — primary jobs are jobs in industries that export 51 percent of their goods or services out of the community in order to bring in new money to Pueblo’s economy.

From an abundance of water, to available manufacturing space and cash incentives, the commercial continues that the organization has a lot to offer Pueblo and its businesses. “Prosper in Pueblo” is the 31-second commercial’s message.

The commercial debuted in step, while not purposefully, with an announcement that Express Scripts, a pharmacy benefits customer service call center in Pueblo, would cut 300 jobs. Express Scripts received $5.8 million from the city’s half-cent sales tax fund — which is reserved only for recruiting primary jobs.

Two weeks earlier, PEDCO CEO and president Jeff Shaw told PULP the organization’s jobs goal would remain at 500, even though just 195 jobs were recruited under a 500-job goal in 2016.

PEDCO achieved 39 percent of their 2016 jobs goal set last January. The economic development entity fell 305 jobs shy of the 500 jobs mark. When the goal was set Shaw said it was realistic.

He still believes it is.

“We believe the goal number was the correct number last year as well as this year. …the 500 goal is aggressive and achievable,” Shaw said. “There are many opportunities within the clusters we are focusing on that combined with our pipeline we feel the 500 number is the right number for 2017.”

Once again, PEDCO will focus on aerospace, hemp, recreation and rail industries. In 2016, PEDCO was unable to recruit companies in any of those sectors.

PULP reported in December 2016 on the four big announcements PEDCO made throughout last year. The Vestas expansion added the most to the final total jobs PEDCO added with, 108 new jobs, and an average salary of $15 to $19 an hour. Coming in right behind that was Coronado Stone Products with 51 jobs. The Big R farm and ranch supply expansion added 33 jobs at an average annual salary of $64,315. And Formulary 55, the second small business to receive a PEDCO gift grant, added three jobs.

The 195 jobs added was down from the previous year. In 2015, PEDCO added 353 jobs.

In addition to the goal of adding 500 jobs in 2017, PEDCO hopes to see a 10 percent increase

in membership in their business incentives programs.

The whole goal may be considered lofty, especially with state economic forecasts for 2017.

The University of Colorado-Boulder’s Leeds School of Business’ 52nd annual Colorado Business Economic Outlook for 2017 reported that manufacturing jobs are anticipated to increase statewide by 2,300 jobs, a 1.6 percent growth rate.

If PEDCO met its 500-job goal, that’d mean Pueblo made up 20 percent of the state’s growth.

The Colorado Department of Labor and Employment released their third quarter 2016 Quarterly Census of Employment and Wages report Feb. 22 — which anticipated manufacturing jobs statewide will decrease. Jobs for Pueblo were also revised downward.

“Watch what happens with renewable energy over next few years. If there is a change in policy or incentives that will impact Pueblo’s manufacturing industry since Vestas is a big manufacturer there,” said Brian Lewandowski, Associate Director of the Business Research Division at University of Colorado Boulder Leeds School of Business.

Lewandowski was part of the steering committee for the Colorado Business Economic Outlook for 2017.

“I think the renewable energy industry could be at risk, but perhaps the steel industry isn’t and maybe Pueblo is diversified in a way that if there is a negative policy change the other manufacturing industry types down there could buffer the impact, but it doesn’t completely absolve Pueblo of risk,” he said.

After the collapse of the steel industry in the 1980s, also when PEDCO was born, Pueblo made it a point to diversify its manufacturing industries. Relying almost entirely on steel was near disastrous for the local economy.

“It would be painful either way,” Lewandowski said. “There will not be a decrease in all manufacturing at once if energy policy were to impact a company like Vestas- perhaps some industries could sort of offset that impact.”