Light starts to shine on region’s economy

One thing that many business owners and executives seem to be craving as the pandemic nears a full year of wreaking havoc on our lives — personally and professionally — is perspective.

Metro Denver Economic Development Corp. CEO J.J. Ament delivers on that front at the South Metro Denver Chamber’s annual Economic Development Group’s economic forecast breakfast. Presented by Fisher Phillips and held Jan. 29, Ament reminds us that in the 1980s, Colorado had the dead-last worst economy nationwide.

“We were No. 1 in the country for business failures,” Ament says. “More people were leaving the state than moving to it.”

I highlight Ament’s comments not to harp on more bad news but to point out that the Denver region came back from the depths once before, and we can — and will — do it again. And working in our favor this time around is the perspective that as a community back then, we worked hard and worked together to build a diversified economy and a robust, world-class airport. Those efforts and others made Denver a go-to spot for businesses to grow and people to relocate to for decades — a fact Ament believes will be a big boost as we navigate our way through the current crisis.

This year’s annual economic forecast breakfast, hosted virtually with panelists at the Lone Tree Arts Center, was certainly different than past breakfasts. But again, with the perspective of a new year, the vaccine and more, Ament and his fellow panelists share a guarded optimism for 2021.

“Once we get over this health emergency,” Ament says, “there are indications we will be in full recovery.”

Another example of the optimism in the region’s recovery comes from Eamon Twomey, senior vice president of operational services with Charles Schwab. Twomey says the company already has 4,200 employees in South Metro Denver and has been growing that tally fast.

“We had such high demand that we accelerated our hiring plan by two years,” Twomey says. “Even in this environment, we continue to hire, and we’re not alone. We know Fidelity and others around us are hiring as well. There is movement. There is a bit of a silver lining going into 2021.”

With Charles Schwab as a backdrop, the hiring rate in the region, significantly better compared to other areas and the country, is what gives Henry Sobanet, chief financial officer and senior vice chancellor for administration and government relations for the Colorado State University System, a dose of optimism.

“We’ve done a great job of diversifying our economy, and our natural attributes have certainly been a feature,” Sobanet says. “That’s borne out massively compared to our growth rate in employment and population versus employment and population for the country as a whole.”

On hiring, Ament and Sobanet point out more good news for South Metro Denver, in a trend they are seeing where companies have begun to follow the talent when making relocation decisions. It used to be that population followed jobs — if you build it, the employees will come. But now, with people looking to get away from the coasts and the work-from-home model becoming commonplace, companies are chasing talent. With people seeking to leave coastal states for a variety of reasons, that’s an advantage for Colorado and South Metro Denver.

“Talent is what sets us apart,” Ament says.

Twomey notices that trend, too, which is why he says flexible work policies are a big trend now and will likely remain that way for the rest of year, at least.

While our three panelists share lots of reasons for optimism about the region’s economy for 2021, there are trouble signs — beyond the pandemic. For Ament, the list of worries or weaknesses that could negatively impact Colorado include unfunded pension liabilities, lack of investment in water and highways and a growing anti-growth sentiment. The pension issue is a big one, Ament points out, as Colorado has been mentioned with Illinois on that topic in national news stories — not a good place to be.

“That’s bad arithmetic for our legislature,” Ament says, “and bad marketing for our state.”

Even so, Ament reminds us that the good far outweighs the bad. Again, perspective — when talking about the South Metro Denver regional economy for 2021.

“Let’s not forget that we had the No. 1 economy in America for four years running,” Ament says. “There is light at the end of this tunnel.”

To view the 2021 Economic Forecast Breakfast, click here.

- Jeff Keener, President and CEO of the South Metro Denver Chamber of Commerce