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San Luis Valley: Energizing with Sunshine UNIVERSITY OF COLORADO BOULDER LEEDS SCHOOL OF BUSINESS IN THIS ISSUE PAGE 1 San Luis Valley: Energizing with Sunshine PAGE 2 The Economy of Southern and Southeastern Colorado PAGE 4 Recreation at Altitude PAGE 6 Hidden Treasure in the San Luis Valley A publication of the Business Research Division PAGE 8 Manufacturing Spurs Economic Growth Volume 81, Number 4, 2015 in La Junta San Luis Valley: Energizing with Sunshine Rachel Baird exports of the valley: potatoes, grain, and 57.2 megawatts (MW) of electricity. A fourth alfalfa. At the intersection of Lane 8 North farm, Cogentrix, located 6 miles south, is There’s a new type of farm in the San another type of farm shimmers in the the only concentrating photovoltaic solar Luis Valley, and it’s producing on a scale no distance. plant in Colorado, with panels towering 50 one anticipated. Two of Alamosa County’s utility-scale feet above the valley floor. The impressive Driving along State Highway 17, the solar installations, Sun Edison and Greater array of over 500 dual-axis tracking units Sangre de Cristo mountains rise in sharp Sandhill, sit along a road that could arguably has become somewhat of a tourist attraction relief to the stark, arid landscape of the San be called the highest-density utility-scale and is affectionately called “star wars” by the Luis Valley, the largest alpine valley in North solar farm installation in Colorado. Lane 8 locals. A fifth farm by SunPower, the larg- America. Center-pivot irrigation circles dot North boasts three operating farms cover- est to date, at 49.5 MW, is currently under the landscape representing the principal ing a cumulative 600 acres and producing construction and infusing the local economy with hundreds of jobs. The San Luis Valley was identified as the state’s optimal area for solar development by the National Renewable Energy Laboratory in Golden, Colo. With a photovoltaic solar resource that makes the region on par with the most productive areas of California and Arizona, the valley’s 7,500-feet-plus elevation gives the area an even greater advantage. Higher elevations yield direct normal irradi- ance (DNI), or the amount of solar radiation per unit area at unparalleled efficiency. Word spread and developers began approaching Alamosa County in 2007. continued on page 10 Photo courtesy of Juan Altamirano. The Economy of Southern and Southeastern Colorado Jackson Rueter 4.8% in September 2015, with Baca County posting the lowest rate, at 1.7%. Unemployment declined The CBR is a quarterly publication Southern Colorado is home to 5.1% of Colora- year-over-year every month in 2014 and has contin- of the Business Research Division at do’s population according to 2014 estimates by the ued through the first nine months of 2015. The three CU-Boulder. Opinions and conclusions expressed in the CBR are those of the State Demography Office (SDO), but accounts for industries that dominate the region are Govern- authors and are not endorsed by the only 3.8% of Colorado’s jobs. The region’s popula- ment, Health Care and Social Assistance, and Retail BRD, the Leeds School of Business tion is older than the state’s, with a smaller propor- Trade, accounting for roughly 54% of jobs. faculty, or the officials of CU. tion of people in the 0–19, 20–39, and 40–59 age Southern and Southeastern Colorado (“South- View our website: ranges. Nearly one-quarter of the population is age ern Colorado”) comprises 15 counties: Alamosa, colorado.edu/business/brd 60 and older compared to 18.5% at the state level. Baca, Bent, Conejos, Costilla, Crowley, Huerfano, Richard L. Wobbekind, editor; Cindy Southern Colorado seems to have greater employ- Kiowa, Las Animas, Mineral, Otero, Prowers, DiPersio, assistant editor; Brian ment stability than the state and nation. While the Pueblo, Rio Grande, and Saguache, correspond- Lewandowski, technical advisor; area has not grown as fast as the state or nation ing to four SDO planning regions: 6, 7, 8, and 14. Lynn Reed, design. following the recession, the impact of the recession These counties account for roughly one-quarter This report is not produced at taxpayer on the area was not as strong. In 2014, employment of Colorado’s total area. Pueblo County makes up expense. The University of Colorado Boulder is an equal opportunity/ grew 0.5%, a rebound from consecutive losses in over half (58.9%) of Southern Colorado’s popula- nondiscrimination institution. 2012 and 2013 of 0.6% and 0.2%, respectively. tion according to the SDO’s 2014 July populations For information/address change: The data for the two most recent quarters (Q4 estimates. As a region, Southern Colorado’s popula- 2014 and Q1 2015) have been stronger than usual, tion declined 0.1% year-over-year in 2014, likely due Business Research Division 420 UCB with Southern Colorado remaining above 1% in to the population loss in two-thirds of the counties in University of Colorado Boulder year-over-year employment growth for six straight the region, outweighing the slow growth of counties Boulder, CO 80309-0420 months—the first time since February 2008. Unem- that did have population increases. For compari- 303-492-8227 ployment in the Southern Colorado region was son, statewide population increased 1.6%. Crowley From the Editor SOUTHERN COLORADO EMPLOYMENT, 2014 This issue of the CBR highlights the economy of southern and southeastern Colorado, which comprises 15 counties. Together, these counties account for approximately 27,000 square miles, or about 26% of Colorado’s total area, and just over 5% of the state’s population. Government, Health Care and Social Assistance, Retail Trade, and Accommodation and Food Services were the largest employment sectors in the area in 2014. The articles in the issue, primarily written by industry leaders, provide insight into the region’s economy, focusing on key industries and unique innovations and challenges facing southern Colorado communities. Please contact me at 303-492-1147 with questions or comments. Richard L. Wobbekind Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages, (QCEW). COLORADO BUSINESS REVIEW 2 County experienced the fastest population growth in the region from 2013 to 2014 according to SDO estimates, increasing 5.1%, and was followed by Costilla (0.4%), Pueblo (0.3%), and Alamosa (0.3%) coun- ties. Mineral County saw the fastest year- over-year decline in population, decreasing 4.1%, and was followed by Bent (2.8%) and Las Animas (2.2%) counties. Employment in the region accounts for 3.8% of total employment in Colorado. Year-over-year growth in the region has been slower than the state since the beginning of 2011, and was 0.5% in 2014 compared to 3.5% statewide. The Pueblo Metropolitan Statistical Area (MSA) has seen greater job growth than the region but is still under the Source: State Demography Office, July 2014 Estimates. statewide rate, growing 1.7% year-over-year in 2014. Southern Colorado employment has also grown more slowly when com- whole, and a lower concentration of federal respectively. Together, these four industries pared to the state, with compound annual government employment. State govern- accounted for 63.3% of regional employ- growth rates (CAGRs) of 0.1% over the ment jobs made up 7.1% of the southern ment in 2014. The three smallest sectors last 10 years, -0.1% over the last 5 years, region’s jobs compared to 3.8% for Colorado were Management of Companies and Enter- and -0.3% over the last 3 years according in 2014. Local government made up 14.7% prises, Educational Services, and Mining, to data from the Bureau of Labor Statistics of jobs in Southern Colorado while statewide recording 302, 414, and 666 jobs, respec- (BLS), Quarterly Census of Employment and local government accounted for 10.1% of tively. These industries made up only 1.5% Wages (QCEW). For comparison, Colorado jobs. Colorado had a higher concentration of total employment in the region in 2014. employment growth rates were 1.2% over of federal government employment, 2.2%, Coming out of the recession, Professional the last 10 years, 1.9% over the last 5 years, compared to Southern Colorado, with 1.8%. and Technical Services has shown the most and 3% over the last 3 years. Private employment for Colorado in 2014 growth, posting a five-year CAGR of 5.9% Southern Colorado employment contains accounted for 83.9% of state jobs while through 2014. Mining was a close second, a higher concentration of government jobs they only made up 75.6% of employment in recording a five-year CAGR of 5.8%, and than the state. Nearly one-quarter of jobs in Southern Colorado. Management of Companies and Enterprises Southern Colorado were government jobs The largest sectors in the region in was third, with 2.9%. The sectors that in 2014 (24.4%) compared to 16.1% for the 2014 were Government, Health Care experienced the lowest five-year CAGR— state. Southern Colorado recorded a higher and Social Assistance, Retail Trade, and Information; Real Estate, Rental, and concentration of state and local govern- Accommodation and Food Services, with ment employment relative to the state as a 22,947, 16,122, 11,533, and 8,788 jobs, continued on back page YEAR-OVER-YEAR EMPLOYMENT GROWTH Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages, (QCEW). COLORADO BUSINESS REVIEW 3 Recreation at Altitude laid out to make the least intrusive presence, utilizing slick rock at every opportunity and incorporating what can only be called aesthetic use of the natural features. These are purpose-built trails using the most sustainable design technologies avail- able.
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