Business left high and dry by immigration dodge

One measure of today’s political dysfunction is the inability of elected officials to govern at the margins. For business, immigration is a stark example.

Last year the U.S. Senate passed the “Border Security, Economic Opportunity, and Immigration Modernization Act”, Senate Bill 744. Today it sits idle in the House, stalled indefinitely and its meaningful pieces sidetracked by the politics of ‘pathways’ and the status of millions of undocumented immigrants.

It’s unfortunate. Business would benefit from incremental progress on immigration.

The Bill is actually comprised of five distinct parts: Border Security (Title I), Immigrant Visas (Title II), Interior Enforcement (Title III), Reforms to Nonimmigrant Visa Programs (Title IV), and Jobs for Youth (Title V). And it’s here that we’re so poorly served. As a practical matter, business today would benefit greatly if Congressional leaders would set aside the ‘status’ issue, just for a moment, to find consensus on its other parts. SB 744 passed on a bipartisan basis last year. There are plenty of opportunities to agree.

Senate Bill 744 makes “enormous” investments, according to some, in border security, envisioning a truly staggering 38,405 full-time Border Patrol agents along the southern border and $46.3 billion in initial funding. In 1993, the annual budget for the U.S. border patrol was $363 million dollars.

There’s also mechanism’s to identify specialized labor. Components of Title II provide immediate relief to employers seeking qualified immigrant help. 744 creates a new “merit based point system with two tracks that award points to immigrants with educational credentials, work experience, and other qualifications.”

Additionally, key reforms in employment-based immigration would ease bottlenecks in current law by eliminating country-specific limits and exempting “highly-skilled and exceptionally talented immigrants” from the worldwide cap, including STEM graduates.

Consider the plight of Colorado manufacturers. A number of factors have contributed to a substantial ‘skills-gap’ in the manufacturing workforce. Last year, nearly 20,000 manufacturing jobs went unfilled in Colorado for a lack of qualified candidates.

Today it’s not much different. Across industries, manufacturers are searching for talent.

Industry will tell you that domestically, we’ve failed to train a generation of manufacturing employees, that there’s simply not a qualified pool of up and coming candidates to replace retiring workers or staff promising new businesses. That we’ve dissed manufacturing and trade careers while offshoring a sizable portion of our making prowess, at the same time we’ve fast-tracked kids into four-year degree programs that are expensive, or ill fitting.

The timing is particularly bad today, as manufacturing is surging. And unfortunately, there is no fast and easy fix. As aware education and policy wonks have become about the skills gap, we’re years away from delivering a steady flow of interested, engaged, qualified workers to industry.

Today Colorado companies and their regional counterparts in Utah and the Mountain West would benefit greatly from the opportunity to access appropriately trained, easily assimilated immigrant labor. The bipartisan Senate Bill envisions this scenario.

Marginal reform, if not comprehensive agreement on the status of Immigrant Visas, would be a boon to business including manufacturers. Debate the ‘status’ issue; it’s important. But reform isn’t a single-issue proposition. Make progress.

It’s not too much to ask.

Manufacturing’s lost its cultural mojo. Here’s how to get it back.

Later this month in Colorado Springs, over 1000 high-school age kids and 500 or so community college students will visit the Southern Colorado Manufacturing Expo & Conference to view demonstrations and interact with industry, suppliers and service. It’s what manufacturer’s have been asking for – and need: visibility to a next-generation workforce.

How many of these kids will end up choosing manufacturing as a career? More than in recent history, I’d guess. We seem to be coming around to the notion that the career track we’ve established for young people needs to change, that not all high-school graduates need be shoehorned into a four-year college program.

The alternative – more families choosing vocational schooling – would be welcome in the manufacturing sector. But reform is also on the minds of the professional sector: the data say that employers believe higher education is doing a so-so job of preparing college graduates for the needs of today’s employers.

The ‘skills-gap’ that bedevils manufacturing is acute. We know why there’s a gap: manufacturing was offshored, for cheap labor, mainly; with jobs left a commitment to train a new generation of makers; business leaders assumed the U.S. would continue to lead in innovation without making stuff; and the subsequent push to maintain our innovation acumen and staff the service-economy-on-steroids has overhyped a need to send every kid to Harvard in search of a professional degree.

So manufacturing’s lost its cultural mojo. A factory job used to carry with it social status. Not today.

How to get it back? How can we convince families that it’s OK to consider manufacturing careers as an option to a four-year degree? Secondly, if the sector can recapture the imagination of a new workforce, do we know how to train them?

Both are big undertakings.

Consider job training. It’s conventional wisdom that the apprenticeships and job-shadowing methods developed by Germany and others are effective not only in preparing students for manufacturing careers but create a sustainable pipeline for talent once established.

But will European-style apprenticeships ever become a mainstream educational model in the U.S? I have my doubts. They represent a radical departure from today’s socially favored career pathways. And a collective disdain for many things ‘Euro’ is a barrier to vocational training. These things aren’t changed easily; higher-ed is change-averse.

Apprenticeships will instead be part of a comprehensive plan if not the centerpiece. It will fall on industry to lead the way. We can inform higher-ed how to develop curricula, we can provide community colleges more resources and we can facilitate ongoing communication to identify the skills needed in the future. We can convince the business community that what was lost as we offshored our ‘maker’ capacity can’t be easily fixed without a robust domestic manufacturing sector.

But to regain a powerful cultural connection to manufacturing, to once again celebrate vocational work, manufacturers must first capture the imagination of a new labor pool.

An important step is highlighting the maker economy that appeal to young people – like beer, food, and high-tech manufacturing – alongside the anchors of the industry who cut, bend, fabricate and weld.

It probably starts with ‘blocking and tackling’: celebrating the companies who’ve sustained and are again emerging as a strategic players in the U.S. economy.

Fifteen hundred or so K-12 and community college students will be onhand in two weeks, in Colorado Springs, to get a firsthand look, to see what manufacturing has to offer. Industry must show up. Represent.

You asked for it. You got it.

As manufacturing boosts commercial real estate, Placemakers are taking note

Denver’s most illustrious Maker defies description. She’s a real-estate developer by trade, though the moniker understates the outcomes of her work. After all, how many developers have a hotel named after them?

No, Dana Crawford is a placemaker. Crawford’s projects – her places – are often a brick-and-mortar continuum: they remind us of who lived and worked here before, of who made it possible to build anew at the same time they embrace the future.

I met Dana a decade ago. Our connection also involved a place, Salina, Kansas, from where both of us hail, roughly. Reconnecting after a several years, our interests may again align, this time around the changing face of urban development. In a recent conversation, she mentioned how she believes light industry, manufacturing, is poised to be an integral component in modern, mixed-use development. I’ll leave Dana’s projects to speak for her, which I’m certain she prefers anyway, but the sentiment from so esteemed a placemaker confirms a trend we’ve written about previously.

The upshot is that a broad-based manufacturing revival is providing commercial real-estate a boost. Of course much of the excitement in today’s industrial real estate sector involves big-box space. A boom in e-commerce and the related need for warehousing space is a catalyst. But so is the resurgent manufacturing sector, generally. Vacancy rates for Class A space in America’s major industrial centers are dropping. A CBRE market analysis sums it up. “The nation’s factories are humming again, and industrial capacity utilization rates are back to historical averages; firms will soon need to start investing in new facilities as demand for their products increases in the expanding economy.”

The Urban Land Institute’s 2014 Emerging Trends in Real Estate forecast a similar push. “Manufacturing is coming back to the U.S., and it’s coming back faster than we thought. Back in 2011, no one thought we would see anything until 2015. Now, we are seeing dozens of companies moving back to the U.S. because the economics are shifting,” ULI’s report says, referencing the reshoring trend underway in U.S. industry that’s driving demand for commercial space.

But it’s likely that manufacturing will build differently in the future, and the demand for space will manifest accordingly. In real estate, the industrial renaissance continues to be largely defined by large increments of square feet like warehouse space, but observers like Denver’s Richard Kadzis believe that “economies of scale” are changing. “There will be a re-emergence of manufacturing in the U.S. with smaller regional facilities,” he notes.

Colorado’s manufacturing sector will certainly grow in this manner. As much as economic developers must focus on big companies, and ‘wins’, like Tesla, manufacturing growth here will also sprout from the state’s vibrant small business community, leveraging leadership in food and beverage, bioscience and medical, aerospace, consumer goods and contract manufacturing across all industrial sectors as companies seek new tech shops, materials suppliers, and labor to reshore operations.

The trend should inspire today’s placemakers. Mixed-use space that include light industry add interest and are financially more sound. They add fabric and flavor – beer and spirits, food and wine, cycles and clothing – to new our new urban settings. Imagine a city center development in Colorado without a craft brewery. They’re also tax and job generators, not simply cost centers for city services.

Moreover, any move to assimilate making and manufacturing back into our cultural fabric is a plus. We derive so much from building around our work. The products we make tend to be higher quality, at the same time we shorten supply chains, support local producers and become more efficient energy consumers. Wages from manufacturing are relatively high. We’re building careers, not just creating jobs. Residents prosper.

As rock-star placemakers like Dana Crawford envision compelling new places incorporating industry, advocates of local manufacturing will continue to push for the American-made renaissance. We’ll meet in the compelling spaces of the future.

Everybody wins.

What’s your Colorado manufacturing IQ? Take this quiz and find out.

Last week, with a push from the Colorado Association of Commerce and Industry, Governor John Hickenlooper proclaimed this workweek ‘Manufacturing Week’ in Colorado, adding a regional flavor to Friday’s national Manufacturing Day.

It’s music to our ears, so we thought we’d join the festivities with a pop quiz celebrating Colorado’s broad, dynamic manufacturing community. Go ahead and test your Colorado manufacturing IQ.

1. Denver’s Ocean Journey uses this global-leading acrylic designer and aquarium builder for its watery enclosures. Name the firm.

2. Air Force pilots and musical stars like Def Leppard beat a path to this Colorado Springs manufacturer of custom audio apparatus.

3. This growing Denver-based apparel company was launched by an entrepreneur who guessed Tiger Woods would lead a new generation of kids into golf – and into a new golf apparel category.

4. Colorado’s the national epicenter of the natural and organic food business, but also fertile ground for the launch of ‘fast and fresh’ restaurant start-ups. Name two not named Chipotle.

5. Colorado food manufacturers – co-packers – changed the face of the natural food industry. Name two of Colorado’s current crop of food innovators.

6. Founded before Columbus discovered America (can you believe it?), this European company opened its first-ever U.S. manufacturing facility in Pueblo last May, impressed by a deep regional connection to steel. (Also a gimme – from this weeks issue.)

7. Manufacturing accounts for 91% of all Colorado exports and over 130,000 jobs. What’s the annual average compensation for manufacturing employees?

a. $33,000

b. $53,000

c. $73,000

d. $93,000

8. This Colorado firm is emulating the texture from what animal to inhibit bacterial growth on surfaces of all kinds?

9. Kids frolic on the oversized, colorful commercial playgrounds in the Cherry Creek Shopping Center and in dozens of locations nationwide, designed and manufactured by this Denver company.

10. This Colorado lifestyle brand builds titanium cycles, one at a time, at its very cool manufacturing facility in Steamboat Springs.

11. More products are manufactured from the following product categories in Colorado than any others. Rank them in order, by dollar volume.

a. Food and beverage and tobacco product manufacturing

b. Computer and electronic product manufacturing

c. Chemical manufacturing

12. This Durango brewery and first-mover extended its brand and launched a new company that manufacturers automated canning equipment for the beverage industry.

13. This Colorado apparel firm sources high-altitude wool in the Rocky Mountains then ‘supercharges’ its natural attributes with tiny increments of synthetic fiber. Name this performance-apparel brand.

14. A Boulder company has has revolutionized bike-fitting with a proprietary system manufactured here in part and used throughout the cycling world. Who’s this progressive maker?

Of course most of these great companies were featured in CompanyWeek the past twelve months. Read more and raise you Colorado manufacturing IQ.

And celebrate American manufacturing this week: patronize a Colorado maker or manufacturer.

Answers: 1. Reynolds Polymer; 2. Westone Laboratories; 3. Garb; d; 4. Garbanzo, Larkburger; 5. The Kitchen Coop, Fresca Foods; 6. pewag; 7. C; 8. Sharklet Technologies; 9. Playtime; 10. Moots; 11. b, a, c; 12. Ska Brewing; 13. Voormi; 14. Retul.

Questions from Walmart’s strange Denver manufacturing summit

Walmart is a study in contrast. For shareholders and Wall St. the company’s a rock star. For consumers, Walmart’s high-volume low-margin model has helped family budgets go further, at a time when wages are stagnant for a big majority of Americans.

But Walmart stores have also changed America’s economic fabric by forcing smaller retailers out of business. The iconic downtown retailer in small town America has effectively disappeared. Shopping at Walmart may extend a family budget but working at Walmart does it no favors.

Walmart’s wage scale is especially annoying to AFL-CIO union boss Richard Trumka, who trumpeted last week, “If Walmart is truly committed to rebuilding the American middle class, it can start with its own workers, most of whom make less than $25,000/year and struggle to make ends meet.”

Trumka was commenting on the occasion of Walmart’s annual manufacturing summit, held this year in Denver. If you missed it, you’re not alone. The event was largely ignored by the press (not a single mention in the Denver Business Journal, one article in the Denver Post), and strangely under-promoted by Denver and Colorado officials including the state’s economic and manufacturing entities. Walmart’s the world’s largest company, measured in revenue. Number one. Imagine Apple (18), Toyota (13) or Amazon (66) hosting an annual conference in Denver.

Denver’s Mayor Michael Hancock was visibly surprised to see several mayoral colleagues in the front rows during his opening remarks to delegates on day of the summit – and said as much. Governors from around the country were also in the crowd – including New Mexico’s Susana Martinez, who also addressed delegates and spoke of her state’s emphasis on manufacturing. Colorado Governor John Hickenlooper wasn’t on the agenda.

Why the uninterested, awkward reception from the Summit’s home state leadership?

One possibility is that state and local officials didn’t see value in jumping in to support a Walmart supply chain event, though plenty of other state-level, high-power contingents saw fit to fly to Denver to participate. Sacramento’s Mayor, Kevin Johnson, acted more the host, and didn’t miss the chance to point out the Denver Mayor’s quick exit after his remarks.

Another is that they simply weren’t invited to participate in a meaningful way. Clearly Governor Martinez, as with Mr. Johnson, has been involved with Walmart before. Yet it was bizarre to listen to Walmart executives and Martinez laud New Mexico’s manufacturing efforts – from Colorado. It’s true that the Hickenlooper agenda has focused on ‘advanced’ manufacturing even though his state is a national leader in less high-tech goods-producing sectors (think food and beverage). But still. Walmart could have done more to highlight the host state’s manufacturing prowess.

Was Colorado business not invited? Of the hundreds of companies exhibiting in the convention center, only a handful was from Colorado. (Qualtek was one; read Chris Fagnant’s perspective here.) The Summit’s objective – connecting U.S.-based manufacturers with each other and supply chain partners to build more U.S.-made stuff that ends up in Walmart stores – would have benefitted from the presence of more local companies

Clearly the mission to connect industry players to juice U.S. manufacturing is legitimate. Walmart’s national effort is commendable. But as at least a couple of the speakers in the opening session confessed, finding suppliers, or contract manufacturers, within a ‘two-hour’ drive of a maker operation can make the biggest difference.

It will be left to local initiatives, happening across the country, to facilitate the connections that will get U.S. manufacturing off the mat and moving ahead. I wrote of two Colorado events last week that should lead to very positive outcomes. Mayor Hancock mentioned one the city is involved with – the Colorado Apparel Manufacturing Summit, October 9 in Denver.

With a slate of events planned in the weeks ahead, industry and it’s policy and development partners will have ample opportunity to do what Walmart could not: bring together the local ecosystem in a celebration of the possibilities.

And leave the clenched-teeth behind.

Change at Colorado’s OEDIT an opportunity to upgrade Hick’s Blueprint

The worst kept secret in Colorado economic circles is the impending leadership shake-up at the Governor’s Office of Economic Development and International Trade, or OEDIT. Ken Lund, Executive Director of OEDIT and Karla Tartz, Deputy Director, Strategy & Operations, are leaving as early as September.

The change shouldn’t come as a surprise. Lund’s made it clear he’s a one-termer. A stint in Hickenlooper’s administration has only raised his profile in Colorado’s business community. It would be more unusual for him to stay.

The more interesting speculation will swirl around the direction of OEDIT with new leadership if Hickenlooper wins again this November and the legacy of OEDIT under Lund’s leadership.

On one hand his timing couldn’t be better. The Colorado economy has roared back from the wreckage of the late 2000’s, so much so that it’s hard now to go a week without the state being singled out as a national model for growth, entrepreneurship and innovation and rosy prospects. Opinions vary as to who should get credit (as does the recovery’s regional impact – some are faring better than others), but the upshot is that Lund’s OEDIT has presided over a powerful recovery.

But OEDIT’s also been challenged to live up to expectations developed early in Hickenlooper’s tenure. The collaborative, grassroots success and tone set by the Colorado Blueprint has given way to puzzlement about things like key industry sectors, questions about strategy and a Denver-centric gaze, and outcomes from its $150 million budget and growing payroll.

Our filter is manufacturing, and for makers and manufacturers, OEDIT’s support the past four years has also been a mixed bag.

There’s certainly a lot to like. OEDIT prioritized manufacturing by establishing CAMA – the Colorado Advanced Manufacturing Alliance – at a time when confidence in the Colorado Association for Manufacturing and Technology, then CAMT and now Manufacturer’s Edge, had waned. CAMA’s now an important advocate for regional manufacturing. Manufacturer’s Edge has also benefitted, free from obligations of a trade association to operate true to its federal charter as a service provider to industry.

“Advanced Manufacturing” is a point of emphasis for OEDIT, and as Tartz leaves is championing a program that would provide Colorado’s ‘advanced’ sector significant assets in the future. If funded, SMART – Strengthening Manufacturing by Accelerating Research and Technology – would create regional centers that would provide “immediate and sustained support to Colorado’s manufacturing industry”, with technology, tools, targeted programs and outreach.

Colorado’s other flagship manufacturing sectors are booming as well, but without the level of engagement with OEDIT or alignment with its priorities. In the Colorado Blueprint, low-tech manufacturing was scattered among the remaining ‘key’ industries. Natural and organic food manufacturing and craft beverages can famously be found beneath the Hereford cow on the Food and Agriculture Key Industry web page.

Yet the state’s natural and organic food industry is a national model. Innovations in manufacturing have been a driver. Co-packers like Fresca Foods have catapulted locally inspired brands onto the national scene. Colorado’s craft beer sector is juggernaut. There may be no more strategic sector than food and beverage manufacturing in Colorado’s future.

I’d suggest the following adjustments to new OEDIT leadership:

– Reduce the number of Key Industry Sectors from 14 to whatever is actually ‘key’. Acknowledge and feed anchor industries like tourism and ag but rally around the sectors that will drive growth in the coming decades.

– Lifestyle Industries is certainly one. Colorado’s a mecca for smart, capitalized lifestyle entrepreneurs intent on building the next New Belgium or Chipotle. Others will arrive in the future to emulate Voormi, Icelantic, Moots, Topo Designs or Boa. Use Colorado’s powerful national brand to develop a lifestyle industrial capability that’s a catalyst for growth.

– Utah created a Director of Outdoor Recreation – but Brad Peterson’s not simply marketing the state to tourists. He’s leveraging Utah’s outdoor brand to attract industry – industry aligned with lifestyle. Align Colorado’s mega-tourism sector similarly.

– The region is home to a sophisticated industrial manufacturing and builder sector. Working with engineers from Colorado’s first-rate universities, benders, cutters, and fabricators are designing and building infrastructure products and industrial parts that are sold worldwide. They’re all increasingly high-tech and require skilled workers. Treat them as an ‘advanced’ industry.

– Colorado will be home to million more residents by 2020 – keeping pace with a regional boom in the intermountain West. The state is not an island – it’s an anchor destination in a desired national location that shares opportunity and challenges with its neighbors. If you believe Colorado to be the bellwether of the bunch, it should lead a new pan-regionalism that for one promotes the region as a reshoring destination for manufacturing. There’s much to build on.

CompanyWeek at one year: Inspiring and intrepid, manufacturing companies are the story

CompanyWeek is a year old this week. Last September we set out to do something different, to report on the manufacturing economy through the people and companies that comprise it. We profiled nearly 150 businesses and what a sector it is. Looking back, the companies are the story.

We’ve been inspired by Springs Fabrication’s role in the Fukushima nuclear disaster in Japan; Sparkfun’s commitment to educating a new generation of science and tech-minded kids; of Brian Burney’s connection to place, to Oliver Manufacturing’s La Junta homebase; by the ingenuity of entrepreneurs like Matt Vincent of Ska Brewing/Fabricating and the flat-out inventiveness of Dave and Jenny Hall of Glideware.

We’re awestruck by Colorado’s natural and organic food business. By Fresca Foods, who transformed an industry 18 years ago with a manufacturing innovation and today is led by stars like Todd Dutkin and Liz Myzlik; by Richard Lappen’s new gig Natural Food Works. By Boulder Soup Works to Rudi’s Organic Bakery to Hope Food’s missile tubes to 34 Degrees to New York transplant pure elizabeth, whose intrepid namesake Elizabeth Stein packed up this year to move to the ‘50-yard line’ of the industry.

It’s impossible not to respect the stalwarts of the trade and business acumen of Noel Ginsburg of Intertech Plastics, of Bill Newland at Hercules Industries, Marcia Coulson at Eldon James, Doug Rhoda at Wolf Robotics and Scott Sullivan at Grand Junction’s global star Reynolds Polymer. Many, if not all, are working to make sure their coattails are long for those who want to follow.

The beautiful slice of the region’s manufacturing economy is the passion of entrepreneurs like Trent Johnson at Greeley Hat Works, Chrissy Rogers of Spinelli’s and Julie Nirvelli of White Girl Salsa. Of Brian Dunn at Great Divide, Karen Hoskin of Montanya Distillers and Mike Koenig of Studio Shed. And small business doesn’t corner the market. Tom Cycyota started our meeting with a moving, half-hour story about an Allosource organ donor. Cycycota leads one Colorado’s most successful and unique manufacturers with the passion of a much smaller company.

Compared to the youthfulness of craft beer and natural foods, manufacturing is dotted with powerful family legacies, of compelling generational stories like RK Mechanical and Denver’s Polidori Sausage, that Ana Polidori, great-grandmother of current vice president Melodie Polidori Harris, opened in 1925. CEO Donn Schaible takes great care in maintaining Eagle Claw’s connection to Lee McGill and the Wright & McGill Co. Colorado legacy.

Bob Walker’s father Max began building mowing machines in the 1970’s. Today, Walker Manufacturing is a source of pride not only for the Walker family but for northern Colorado. Pride is the operative sentiment as Paul Harter leads a tour of Aqua-Hot in Frederick, who’s clearly gratified by continuing Hap Enander’s business legacy but immensely proud of the new company he’s building.

Builders share space in the economy with manufacturers – they both make things – and the ‘built environment’ is intrigued with the new manufacturing economy. One of our objectives over the next year is to profile the buildings and spaces of GE Johnson and others that will house a next-generation of makers and manufacturers – maker spaces that in the coming years should increasingly co-locate among retail, residential and service – modern ‘clusters’ that comprise a 2st century economy.

Visionary public-sector leaders get the value of maker businesses. They’ll take a lead from Denver’s OED, from Ogden’s city leaders, who envision a cycling manufacturing hub and Utah’s legislature, who created the position of Director of Outdoor Recreation to manage the state’s outdoor brand to the benefit of lifestyle manufacturers. This in contrast to the wretched public stewardship on display in Colorado Springs, where an ugly mayor/city council dustup selfishly hamstrings business; and Castle Rock, my hometown, where city government squanders the community’s hard-earned family-oriented brand in favor of the economic development attributes of Dodge City, circa 1880.

But the doers far exceed the obstructionists in the Rocky Mountain region. Powerful, sustaining business rationale are driving U.S. manufacturing back onshore and domestic manufacturers and supply-chain partners together again. Within five years, a more connected manufacturing economy, redefined as a modern and lucrative sector, will be shaping regional economic activity like never before.

– –

As our crusade enters its second year, with new markets like Utah among the opportunities, I’d like to thank Robinson, Webb, and Rothe for a runway and Kalkwarf and Popeil for a push; Severson and Myzlik for genuine enthusiasm and encouragement; Bugnitz for a true north; Maraschin and Goertz because they paid attention from the western slope; Neppl, Newland, and Lee because they didn’t say no; and Bingham for saying simply, yes.

CompanyWeek is Eric Peterson and Chris Meehan, Becky Hurley and Mike Dano, Tamara O’Dell, Valarie Johnson and occasionally, Jeff Rundles. It’s Carrie Nicholson, Jessica Thomas and Doug Hunley. It’s Michael DeJager. It’s Jonathan Castner’s visuals, along with those of Cat Mayer, Judson Pryanovitch, and Scott DW. Smith, Michelle Goodall and Sara Hertwig. It’s also AJ’s daily burden. CompanyWeek is their work.

On to the next 150!

Laynee Jones

Utah’s Mountain Accord puts a modern transportation vision on the fast-track.

Front Range skiers fortunate enough to experience Utah’s terrific resorts just east of Salt Lake City return to Colorado with varying degrees of envy, often of the terrain, as great as it is, but also of the commute. Residents of greater Salt Lake City have a 30 to 40 minute drive up I-80 or Little Cottonwood canyon to a parking lot – and sanity.

Denver’s intrepid day-skiers can only dream. Catch a bad break or leave home after 7 a.m., and a two-to-three hour trip is the norm. Both ways. And today, traffic is often as bad in summer as winter.

But a coalition of Utah policy-makers is worried that population growth will create a similar civic headache along the Wasatch Front (Utah’s Front Range) and have set in motion a process to manage the impact of people and use. Called Mountain Accord, the program is designed to address transportation, economic, environmental, and recreational impacts of development in the central Wasatch Range.

Laynee Jones is the program manager for Mountain Accord, and in a conversation last week quickly got to the issue that has stymied similar efforts in Colorado.

“So far there has been a lot of support to get people out of cars and onto transit”, Jones says. “Envision Utah paved the way for the general public and elected officials to support a deliberate pattern of growth that includes transit. Many Utah officials have witnessed first-hand how transit systems in other countries like Switzerland can impact quality of life,” she added, “and while we haven’t had the study yet that estimates cost, we know better transit will be a part of the solution”.

To be sure, the expense, environmental and technical challenges of an integrated transit system from Denver to Vail is a scale much larger than what Utah’s facing. But as a practical matter, it seems the Mountain Accord coalition has crossed an important threshold. In Colorado, the debate about mass transit as a transportation solution seems to quickly devolve into a circular argument about automobiles.

Layne credits the “unconventional” process ushered in by Mountain Accord for progress, but only after two separate, controversial issues provided incentive. “We’d been studying transportation solutions and slowly gaining traction, but the wilderness bill, then the SkiLink idea were a catalyst. They were the proverbial ‘straw that broke the camels’ back.”

SkiLink, now called One Wasatch, would connect seven of Utah’s iconic ski areas just east of Salt Lake City with a series of new lifts, but only after the sale and development of public lands. Environmental groups, in particular, argue the benefits of the project are overhyped and have pushed back.

“What the wilderness bill and SkiLink provided was a wake-up call, that a piecemeal approach to development was not the way to do it”, Jones says. “We’re so used to operating within institutional silos. Considering these issues in the context of a wider development plan was the right thing to do.”

But can a process overcome the technical and cost challenges that have also bedeviled Colorado’s transportation efforts? Jones seems to understand the degree of difficulty. “As Colorado knows better than most, highway corridors and transit don’t often fit well together.”

A game-changer for Utah may be the sheer number of stakeholders involved in the program – part of the “unconventional” methodology of Mountain Accord. “We’re identifying the wilderness areas to protect and conducting joint studies of each component of the program, a scenario planning phase, with about 250 people participating across four committees – transportation, recreation, economy and environmental – each focused on their ecosystem,” Jones explains. “We’ll then layer the committee analysis on top of each other in October.”

If all goes well, the process will generate actionable recommendations soon thereafter. “In January we should have highly scaled maps that will identify the transportation corridors on which to start an EIS (an Environmental Impact Statement, required by federal law),” Jones says.

Of course nothing that Jones describes ensures that skiers will be flying into Salt Lake City anytime soon, to board a high-speed rail line that whisks them to Park City in fifteen minutes or less. Jones says a three-year timeframe on the EIS would be “very optimistic”.

A final decision on Mountain Accord’s transportation elements is also dependent on other factors, like cost. Coloradans have experienced sticker shock already. The financial equation is complex. Utah’s economy, like Colorado’s, is currently strong. But forecasting the region’s appetite for a major public works project today, in three to five years, is an inexact proposition.

Yet the prospect of a Swiss-like transportation model along the eastern front of the Rockies, in the central Wasatch Mountains, is incredibly compelling. It should be easy for all westerners to root for the success of Mountain Accord. Taking preemptive action to avoid the pratfall of Colorado’s I-70’s experience is reason enough. The positive development impact could be staggering, playing into a regional lifestyle brand that’s already forecast to attract millions of new residents in the decades to come. Residents who deserve a modern transportation infrastructure.

Regardless of the commuter-envy it may inspire on the eastern side of the Divide.

Regionalism’s ascent: why Western states should expand economic development efforts

Economic development in the West is big business. In Colorado, at the state level, the investment in programs and people has almost doubled since 2012. Today about 60 full time employees staff the Governor’s Office of Economic Development and International Trade.

It’s become a state-by-state competition, and success is measured in jobs, in spending and investment, in start-ups and relocations. The stakes are high, including political payoffs if you win and liabilities if you lose. Kevin Grantham, Colorado state senator from Canyon City, said as much in a Denver Business Journal op-ed last week attacking the jobs record of the Hickenlooper administration. “We compete primarily with states in our region. Colorado’s total employment growth during the four-year period since the recession ended in 2009 has not matched that of Utah, Nebraska, Wyoming or most of our neighboring states,” he wrote.

Grantham has an ax to grind, but his political adversaries would likely agree that comparing Colorado’s growth to that of our neighbors is an important metric.

But is it? Can Colorado, Utah, Arizona, or New Mexico and Wyoming for that matter, compete alone in the increasingly global market? The population of the entire mountain West is about 17 million people, with an economy around $800 billion, or just 5.2% of the nation’s total. Michael Gallis, in his important analysis and advocacy of regional rail transportation, notes the totals are substantially less than a single Chinese city, Shanghai, which clearly has global ambitions to become a center of economic growth and innovation.

“..it’s a good bet that in the future industry and government will realize that hyper-localizing the economic discussion short-circuits a broader regional opportunity to drive growth.”

When should self-interest give way to support a cohesive regional development message?

Gallis and others are making the argument, and it’s a good bet that in the future industry and government will realize that hyper-localizing the economic discussion short-circuits a broader regional opportunity to drive growth. Here’s why:

· Six of the top 11 cities in Forbes ‘2014 Best Places for Business and Careers’ feature were in Colorado and Utah, and seven of the top 20. A common denominator is the influx of smart, educated young professionals migrating to the region for quality of life and bringing with them career aspirations in a lifestyle economy. The region’s a draw. Not just Colorado. Or Utah.

The story of Mercury Wheels relocating to Odgen from Oxford, Mississippi, is typical. Boulder and Ogden were clear frontrunners in the relocation decision. Ogden won – but so did the region. As Forbes confirms, Boulder, Greeley, Provo, Salt Lake City and Denver are winning their share.

· This key migration of talent is resulting in regional first-mover status in lifestyle industries connected to the West’s tourism and recreation draw. Cycling, skiing, backcountry exploration, and other regional pursuits are driving growth in equipment, apparel, and accessory maker businesses.

· The ‘Made in America’ movement has deep roots in the region and is poised to drive more growth. Industries like natural and organic foods, craft beer, energy and mining, clean-tech, aerospace and aviation operate from regional hubs and enjoy international-leading market positions. A new, progressive, retooled manufacturing sector is materializing in the west – one with international reach and a massive upside.

· Western state’s most pressing economic development challenges are regional in scope. Colorado’s water crisis is Arizona’s and Utah’s, New Mexico and Nevada’s. Workforce issues plague manufacturers regardless of state lines. Likewise, opportunity will derive from bold, region-wide solutions. Modern air and rail infrastructure will help each state that invests. But a collective effort to connect region offers exponential benefits.

Hercules Industries operates regionally, including Denver and Salt Lake City, and utilizes rail transport both east and west, avoiding the cost of traversing the Divide. Vestas, in a CompanyWeek profile, notes the rail advantages of Colorado’s central location. Osprey Packs has moved its distribution center from Durango to Salt Lake City. Regional connectivity has never been more important.

· We also know that state-level efforts are fleeting. What will become of Colorado’s development efforts if the governor’s office changes this November? With each new administration comes a different vision for how the state should be marketed.

The intrigue surrounding Tesla’s new battery mega-factory has been framed as a competition between Nevada, Texas and Arizona. I’ve not yet read the editorial celebrating Tesla’s decision to narrow its decision to the western U.S. It’s no surprise. Media will deconstruct the decision as economic development pros will – as a win or loss, with a local spin.

In the future, for the future, it may be good business to root for a broader, regional perspective to emerge in the West.

Next steps: Two inaugural events seek to connect manufacturers and business

If you’ve wondered about the mission of CompanyWeek, two events we’re supporting align perfectly with one aspiration, to connect companies in a community that wants to know each other. But largely doesn’t.

In most every goods-producing sector the plan is to make more stuff here, in the U.S. And this time, manufacturing growth means more work for U.S. companies. Manufacturers want local partners to improve quality and better protect IP, to get off the road and inform brands with a local, authentic fabric.

But where to find them?

SOCOM – the Southern Colorado Manufacturing Expo and Conference – will be held September 30/October 1 in Colorado Springs, the week of national Manufacturing Day, Friday, October 4.

It’s an industry-led initiative — the first trade-show-type Expo held along the Front Range. Tom Neppl, CEO of Spring Fabrication, an international provider of engineered metal products, is the visionary behind the event.

“Manufacturing is an economic engine for nearly every economy in the world, including southern Colorado, where a very diverse group of companies is supplying products to every industry and shipping products around the globe. We’re taking this opportunity to raise awareness, educate the public and showcase the products we produce.

“Manufacturing companies are busy, including multi-national companies operating in our own backyard. There are career opportunities at nearly every level, both highly skilled and support functions. We’re excited to showcase manufacturing to industry and a prospective workforce.”

Neppl’s investing time and resources, as are his colleagues from Colorado Springs and Pueblo. It’s an ambitious move to energize the manufacturing community.

Tracy Waters is a great contact if you or your company want to get involved. Reach her at 719-358-4225 or tracy@springsfab.com.

That’s not all.

CompanyWeek is co-host along with the City of Denver of a new event that also promises to connect industry players, with the mission of overcoming specific barriers to growth.

The Colorado Apparel Manufacturing Summit, October 9 in Denver, will bring together the region’s apparel sector to have a long-overdue discussion about what needs to happen to put regional apparel manufacturing back on track.

With the help of apparel pros like Carol Engel-Enright, we’re convening the state’s established and rising apparel stars to discuss the state of fashion and apparel given manufacturing challenges, and if possible, begin to construct a blueprint for policy-makers and higher-education — industry’s partners.

Apparel is tough. It’s still an offshore industry. But more companies want to make stuff here. Outdoor Retailer, the mega-trade event held last week in Salt Lake City, was abuzz with talk of more domestic apparel manufacturing.

The challenge is to build labor and equipment infrastructure equal to the opportunity. Dan English, CEO of Pagosa Springs-based Voormi and a panelist at the Summit, sums it up.

“When it comes to [the outdoor] industry, we believe there’s no more authentic place than Colorado to design, develop, and build products. It’s our challenge, we believe, to match that authenticity with the infrastructure needed to make it happen, from training programs to advanced capability centers, and more.”

An objective of the Summit is to provide a workable path that policy-makers and economic development entities can act on.

For more information on how to attend or get involved – and it’s hoped everyone with a stake in lifestyle manufacturing will do so – contact me or Carol Engel-Enright at 303-517-2583, or carol.engel-enright@colostate.edu.