Mesa County’s Western Colorado Manufacturing Alliance off to a fast start

The drive east on I-70 from Grand Junction, at 6:15 a.m. on a Friday morning, is more stock car race than commute. The highway’s packed with mud-caked pickups and dualies, all in a mad dash to the oil and gas rigs around De Beque, Parachute then Rifle. The frantic pace seems an apt metaphor for the sector.

I’m heading back to the Front Range after attending the first Western Colorado Manufacturing Alliance Summit, and guessing the surging pack on I-70 is welcome but also a reason to pause for the farsighted leaders who’ve worked to pull this industry group together. Oil and gas have been great for Mesa County, but diversifying the economy’s an objective here. Energy’s boom pace is hard to sustain, at the expense of related sectors in down times.

The rush is also a reminder of the workforce challenge here for non-energy manufacturers. Oil and gas producers tap deeply into the labor pool. Wages are high. It makes it tough on companies who would hire and train a new generation of tech-savvy machinists and equipment operators, welders and brewmasters.

Of course energy producers are manufacturers of the first order, but WCMA has gathered a group of light industry firms, primarily, to network and determine what can be gained from building a more connected maker economy. It’s a mix of established industry players and smaller process and component manufacturers.

It’s a good showing – it’s the group’s first event – but it’s who’s not here that also makes this event and initiative promising. When they’re engaged WCMA will grow.

Only one winery from Colorado’s jewel of a maker sector attended the summit – Talon. It’s not a slight; the vision for a truly integrated maker community, with disparate industries collaborating to advance their interests, is relatively new. Plus some wineries need to be reminded they’re manufacturers.

Also in the building stages is a community of small tech-shop startups and entrepreneurs armed with 3D printers and CAD-enabled means just beginning to provide component prototypes, and increasing production-ready parts that enable small batch manufacturing. The foundation is here; Jon Maraschin’s Business Incubator Center is collaborating with others like Colorado Mesa University and Colorado SBDC to build from the ground up. Meaningful collaboration with Mesa County’s maker community should only grow.

I was one of the few east-slopers who made the trip west to the Summit without a bike. Attendees were peeling off after the last session to ride the Monument, or Rustler’s Loop or planning trail rides the following day. Mesa County’s an outdoor mecca. A push to attract light industrial makers in the lifestyle sector, to leverage and shape fitness tourism into a true cluster strategy with industry a core component seems here for the taking. Companies like Mountain Racing Products (profiled in CompanyWeek) and Loki are vanguards.

The event’s grassroots feel seems the right track here. It’s unclear though whether it’s aligned with the state’s economic development efforts. OEDIT, Colorado’s Office of Economic Development, and CAMA, the Colorado Advanced Manufacturing Alliance, were here, outlining efforts to support manufacturers, mainly from programs in pursuit of federal dollars aligned with national advanced manufacturing initiatives. Colorado’s well-positioned, to OEDIT’s credit. But it’s a high-stakes game with uncertain outcomes, often with long-lead times involving myriad grant applications and lot’s of moving parts.

The top-down push is also expensive. Karla Tartz, Deputy Director at OEDIT, mentioned here that two new deputy directors are being hired to manage program development in advanced manufacturing. Governor Hickenlooper’s economic development bureaucracy is already big; it’s nearly doubled in size since FY 2011-12. And it’s getting bigger.

It’s worthwhile if a payoff follows, if initiatives OEDIT’s pursuing such as the Colorado Acceleration Agenda, or COAA, bear fruit. The ‘Manufacturing Corridor’ envisioned in COAA would first be established along the Front Range, from Larimer County to Pueblo, but eventually include Mesa County and more regional destinations.

Next to this complex and ‘advanced’ approach to advance development, Mesa County’s support of entrepreneurship, of connecting business to enhance collaboration, and tapping its lifestyle attributes might sound inadequate. And Reynolds Polymer and other established industry players here must see also see the benefits of being part of a cross-industry maker community that pulls the same direction.

But if the maker economy here engages, if entrepreneurship is nurtured, and municipalities widen their view to the possibilities, WCMA’s first summit will be a preview of great things to come.

Along with a more casual morning drive along the Colorado River.

Brad Peterson on Castleton Tower

When industry comes to play: Utah’s recreation ‘brand’ getting a business push

Brad Peterson, director of the Utah Office of Outdoor Recreation, seems the right person for the job. “When I’m working around the Wasatch Front [in Salt Lake City and vicinity], I try to mountain bike the Wasatch Crest, rock climb up Big Cottonwood Canyon, ice climb up Little Cottonwood Canyon, or do a dawn patrol ski tour before putting on my suit and heading to the capitol by 8:30 a.m.”

Peterson describes his morning regimen to me without a hint of pretentiousness, almost apologetically. There’s nothing modest though about Utah’s efforts to promote its outdoor brand. Peterson was hired after the Utah legislature established the position to support the state’s growing recreation-related economy.

Industry is at the heart of the effort, and it’s here that Utah’s program crosses over from just another tourism promotion to meaningful economic development initiative, one that Colorado and other western states with lifestyle-related business ambitions should watch.

“The recreation economy is one of six key industries that drive our economy, to the tune of about $5.8 billion dollars,” Peterson says. “Per capita, Utah has more recreation-related jobs than any other state in the country and we are continuing to expand that base every year.”

A push to attract recreation businesses is a part of the plan. “It’s hard to economically measure the number of people and companies who have moved to Utah as a result of our extensive recreational opportunities, but we know that as major companies like Black Diamond, Backcountry.com, Petzl, QBP, Skullcandy, and Hoyt Archery have moved their headquarters to Utah, other companies have followed,” he says, adding, “plus we know there’s a “halo” effect of non-outdoor related companies moving to Utah following the actions of outdoor related companies.”

Peterson was part of a Utah delegation that traveled to Taiwan in March to the Taipei International Cycle Show to recruit companies and promote the state’s cycling-related economy. Bicycle Retailer reported on the trip, including Ogden’s noteworthy push to develop a cycling business brand. Ogden’s bike-friendly mayor, Mike Caldwell, is leading a charge to support and attract companies to the area, including an event last September when the city hosted 25 Taiwanese executives from cycling firms on a multi-day bicycle tour of Utah’s national and state parks.

Peterson lauds Caldwell’s efforts. “He’s an enormous advocate to recruit cycling based companies to the state. And he’s doing it the right way. It’s about quality of life and the state’s recreational opportunities but the synergies from being clustered together in the outdoor industry are huge. We’re trying to recruit a large number of Taiwanese companies to headquarter along the Wasatch Front. Ogden’s a great indicator of how it can work.”

Sarah Lehman, CEO of ENVE, one of Utah’s signature cycling firms based in Ogden and global leader in carbon-frame technologies, agrees. “Utah is favorable from a business standpoint, but it’s also favorable in terms of the outdoor recreational focus,” she says. “We’re a bike company. It makes a lot of sense to be here surrounded by our peers.”

The idea of industry clusters isn’t new but the notion of building around recreation (to leverage a region’s world-class natural resources) and the momentum in the lifestyle ‘maker economy’ is, and it’s gaining momentum. In Bozeman, Montana, a group of city officials, manufacturers, and outdoor industry players have launched the Montana Outdoor Alliance to promote the state’s recreation business opportunities and attract lifestyle manufacturers. Montana State University is also at the table.

In Colorado, pockets of recreation industry have developed around the local inspiration of visionary athletes and entrepreneurs. Boulder’s lifestyle business community has long birthed world-class ski, running, and cycling businesses. In Colorado Springs, there’s a growing push to include industry in a possible brand campaign around its Olympic facilities — a ‘City of Champions’ moniker. In Steamboat Springs, the founders of Honey Stinger, Big Agnes, and Moots Cycling have laid a foundation.

Yet Colorado has failed to tightly integrate an industry cluster message with its international tourism push, and moving an inclusive initiative through the state’s painfully large development bureaucracy and polarized political landscape seems daunting. Efforts are still underway in the legislature to fight Governor Hickenlooper’s byCOLORADO program. If the lifestyle cluster strategy is to work here, it likely will be driven, supported, and promoted by local entities.

The benefit of consensus and a streamlined process at a high level isn’t lost on businesses in Utah. “There’s no bureaucracy,” ENVE’s Sarah Lehman says. “There’s no red tape. There’s just a group of individuals who are here trying to improve the workforce and the economic conditions that allow businesses such as ENVE to thrive.”

Brad Peterson of course agrees, and he is committed to keeping the Office of Outdoor Recreation out of political fights that might sidetrack his efforts. Asked about SkiLink, a proposal to connect Canyons with Solitude via a chairlift on Forest Service land that’s ruffling feathers, he said, “The Office of Outdoor Recreation does not and will not own those issues.”

Given the growing competition to attract new lifestyle industry it’s a commendable approach. Utah seems intent on wresting regional lifestyle leadership from its rival to the east. Yet as things are going, and Peterson might agree, how one state goes so goes the region. And if Utah, Colorado and Montana can each build dynamic and growing maker economies in the lifestyle and recreation space, the region as a whole will benefit.

‘Where Industry Comes to Play’. The Rocky Mountains, that is.

(Thanks to Bicycle Retailer, the ParkRecord, and Utah Governor’s Office of Economic Development for quotes in this story.)

Top of Jahman on Sister Superior

Colorado’s health-care service economy is booming. But at what cost?

Is it too early to roll out the next iteration of the Colorado ‘brand’? A just-released economic report from CSU’s Regional Economics Institute provides some direction.

‘Colorado: Sick and Getting Sicker. And Older’, doesn’t have quite the same ring as ‘It’s our Nature’, but since the Great Recession, Colorado’s ‘Health-care and Social Assistance’ service sector has added more jobs than any in the state. By a lot.

The Regional Economics Institute’s report quantified the trend:

‘Health care and social assistance is the state’s largest sector and has steadily added jobs over the past decade.

Since the start of the millennium the nation’s job growth has been driven largely by the expanding health care sector and Colorado is no different. In the third quarter of 2013 Health care and social assistance was the state’s largest sector in terms of employment, with more than 286,400 workers.’

And in the past five years, the sector’s taken on a life of it’s own.

‘Health care and social assistance added more than 50,200 jobs over the timeframe, more than the combined total of the next two largest growth sectors (Professional and technical services and Accommodation and food services).’

Of course we’re not that sick. But the data tell a story of how rising insurance premiums, medical fees and prescription drug prices aren’t just funding our care but a significant expansion of the health-service complex. We’re building a private-sector behemoth to maintain and monitor our health. The business of social assistance is booming.
The downsides seem straightforward enough. Our care hasn’t improved to the degree our rates have risen the past decade or so. And consumers should prepare to pay more. It will be increasingly hard to roll back fees or slow down a service sector that’s creating new ways to generate revenue. For Coloradans who live the healthy lifestyle that was in part invented here, it’s an especially tough pill to swallow.

Service jobs including those in health-care also pay less than those they’re replacing. As a result household wages continue to fall from their pre-recession highs. As the reports states:

‘…although the state is adding jobs, much of the growth is concentrated in industries with average wages below the state average.’

REI’s report does shed some positive light on job growth:

‘The Great Recession was hard on Colorado, wiping out more than 146,000 jobs in 18 months. Since bottoming out in 2010, the state’s employment totals have steadily grown, and today Colorado has more jobs than ever before.’

Unemployment remains stubbornly high, though, and a recovery varies greatly from metro area to metro area. Grand Junction and Colorado Springs, for example, haven’t added jobs at the same rate northern Colorado, or the Denver Metro area have.

But Colorado’s labor force is growing and sectors that would diversify the economy and pay higher wages have huge potential here. The state continues to churn out or attract an educated, risk-taking workforce. And companies and eco-devo entities are powering a regional surge in entrepreneurship.

But how to support these sectors – including manufacturing – is a challenge. CSU’s news release promoting the report summed it up this way:

“The varied economic progress across Colorado shows the diversity of the state’s economy. Yet it also highlights the need for more geographically targeted economic development policy. What works in one region will not necessarily work elsewhere.”

We’ll explore Colorado’s regional economic realities as reported by REI, and the diverse set of economic development needs, in the coming weeks.

Jobs, prosperity at stake as Colorado manufacturers organize to advance their interests

New economic realities are bringing manufacturers together across Colorado. Unlike the employee-driven efforts of an earlier generation, today’s organizers are business leaders facing new challenges to growth but who also see opportunity as the post-recession manufacturing economy takes shape.

On Colorado’s western slope, industry has led the formation of the Western Colorado Manufacturing Alliance. The WCMA is hosting the Western Colorado Manufacturers Summit April 10 in Grand Junction. Eric Goertz, VP of Operations at Capco, Inc., a western slope manufacturer, is acting chairman of the Alliance.

Goertz, an engineer by trade, is as pragmatic as he is optimistic about what’s to be gained from organizing.

“I am sure the reasons for ‘why’ we are working to put together manufacturing alliances may differ, but the end results should be very similar,” Goertz says. “Obviously if manufacturers band together, we can avoid duplication of efforts in a wide array of topics, from changing health care regulations to employee training programs. We can also learn best practices from each other, work to buy locally which helps bolster the local economy and workforce, speak with a unified voice and make policy changes happen if needed.”

He’s also aware of the limitations of trade groups and cautions against unrealistic expectations. “The question in my mind was, given some investment of time and talent into the local economy, specifically manufacturing, could I see an ROI from these efforts? Thus far, I will say that I have become more connected with the types of manufacturing that takes place locally, and we (Capco) are starting to use suppliers from our local market a little more than we did a year ago. I am pleased with our progress; we’re hoping the Summit is successful.”

Similar efforts are taking shape along Colorado’s Front Range. A northern Colorado manufacturing ‘partnership’ is building, as is a new alliance stretching south from Castle Rock to the New Mexico border. Led by Springs Fabrications’ founder and CEO Tom Neppl, who’s also now the industry chair for the Colorado Springs Regional Business Alliance, the Southern Colorado Regional Manufacturing Initiative will host a kick-off reception April 30 in Colorado Springs (details are being finalized), with an expo and week-long event in the works for late summer.

Neppl’s company has enjoyed strong growth the past few years including a high-profile role in Japan’s Fukushima nuclear accident. But he’s also keenly aware of the hard hit manufacturing endured in southern Colorado the late 2000’s, and is optimistic as to what can be gained from building closer ties throughout the community.

“The February 2014 economic report prepared for the Southern Colorado Economic Forum noted that El Paso County has lost some 13,000 manufacturing jobs since 2000,” Neppl says. “Most can be attributed to the exodus of our semi-conductor industry. Real job losses probably exceeded that. This is reason enough to increase the focus on manufacturing in our region.”

But Neppl’s also an energetic promoter of manufacturing. For him, coming together as a sector has everything to do with the opportunity – and the promise of a new manufacturing economy.

“Manufacturers typically provide above average wages and benefits. They’re also more likely to teach people technical skills that are transferable. Learning a skilled trade increases the likelihood of earning a stable paycheck and often provides opportunity for personal and professional growth.”

He adds, “Manufacturing is once again in the spotlight, and nearly every region in the world is focused on growing its manufacturing base. We should be no different. Today’s industry is a modern, tech-driven sector that provides a more stable economic base than service jobs. Manufacturing creates wealth.”

It’s hard to argue the point, and Colorado’s economic leadership certainly wouldn’t. With each month the Office of Economic Development and International Trade seems to announce a new manufacturing initiative, grant, or opportunity emanating from policy-makers or public-sector sources. Earlier this month OEDIT announced a multi-faceted initiative called the Colorado Acceleration Agenda, or COAA, that would in part establish a Technology Commercialization and Manufacturing Corridor along the Front Range from Larimer County to Pueblo. This in addition to the myriad programs coursing through economic development circles to develop workforce, procure federal dollars and generally promote ‘advanced manufacturing’.

In the end, industry’s own grassroots efforts may be as effective as government’s well-intentioned (and well-funded) top-down programs. Both should work to improve economic prospects for the region.

Pot Pioneers: Colorado’s first tax windfall a gratifying payback for voters

Much to the unending dismay of the Denver Post, Colorado voters continue to view legalization a wise alternative to prohibition. In a Quinnipiac survey, 58% now support legalizing pot, up from an already big majority, 55%, who voted in 2012 to change decades of public policy.

Despite the drum-beat of doubt from the Post and other media like 9News, there’s good reason to be optimistic. The system seems to be working as intended. Little seems to have changed in our communities as we regulate and tax a multi-million dollar industry already operating in our state. Voters deserve credit.

Business, predictably, is a vanguard. This week’s profile of Dixie Elixirs and Edibles, one of the state’s fastest growing businesses, is testament to the efficiency of the private sector. A year and half ago, the electorate said pot was mainstream. Today, less than eighteen months after the vote, makers in the marijuana space like Dixie are mainstream-corporate as well. The numbers don’t lie.

Regrettably for Dixie and others, the Feds still see it differently. It’s still against the law to bank an illegal business. On one hand it’s understandable; a lot has happened in a short period of time. But if the upside of legalization materializes, and it’s heading that way, it will become harder to make the case that voter-approved commerce should be embargoed by the federal government. Elected officials will have to make that case, as will candidates for office. Who will?

Colorado officials should be applauded for their work since the election. With teeth-clenched and eyes-rolled in some cases, they’ve nevertheless put in place a workable framework. Colorado’s sold pot for a month. Money’s been collected. The streets are still safe. It’s a considerable public policy achievement.

Stores will report sales on February 20th. Notwithstanding a huge surprise, it’s a good bet that everyone, including the most persistent skeptics of mainstreet pot, will be forced to concede that regulating a thriving black-market business not only has a considerable financial upside, but lays the groundwork to regulate use more effectively. Colorado’s first tax windfall will be a gratifying payback for voters.

Certainly there’s room to improve how mainstream pot is managed. Voters asked to reconsider the promise of legalization. Missing almost entirely from the Colorado conversation thus far is how media can be deployed with pot proceeds to educate young people as to the pitfalls of using.

Think tobacco – and Madison Avenue. With pot-use out of the shadows, our best creative talent can be harnessed to have a modern, substantive conversation with young people about what’s at stake, what can be lost with use. Business should lead the discussion. It has much to gain – see Dixie Elixirs – and much to lose, like a workforce.

Using media to educate young people and working in good faith to implement the economic will of voters seem two worthy objectives. If 2012 is a guide, voters will double-down and hold candidates accountable, including those who don’t take action to reduce the uncertainty facing pot entrepreneurs.

Colorado voters deserve a full-throated endorsement of their wishes from state and local candidates this fall.

MFG v. Service: Encouraging our smartest to build companies that build things

Is the U.S. economy at the front end of a manufacturing renaissance?

It’s a popular sentiment. A groundswell of support for a manufacturing and ‘maker’ surge seems real enough.

Others are convinced the service economy is here to stay. Nataraj Slavov of the American Enterprise Institute, and Ben Ho of Vassar College and Columbia University give voice to ‘manufacturing’ skeptics. In Stop Wishing for the Return of Manufacturing Jobs – Lawmakers need to embrace the service economy” , they note “70 percent of the wealth created in the U.S. today comes from providing services, a 33 percent increase since 1950”, and add:

Americans already have plenty of stuff. Think for a second about what you spend your money on, and what you wish you had more of. Food? Televisions? Mobile phones? Cars? In a largely obese nation, we probably don’t need more food. We need higher quality food, better prepared food, tastier food, healthier food – but not more food. We have more televisions, mobile phones and cars in this country than we know how to use. We don’t need more devices. We need better content on those devices.

Recent research in psychology shows that for most Americans, spending money on experiences leads to greater happiness than spending money on material goods. As we get richer as a nation, therefore, growth in the economy will not be driven by more stuff, but by better health care, more education, more travel and better entertainment.

There may be more nuanced arguments. It’s difficult to see how ‘better entertainment’ will emerge as a pillar of the new economy. And the ‘higher quality food’ producers, and ‘content’ developers Slavov and Ho cite may indeed be driving the new manufacturing economy. They’re not a trivial, passing reference.

Especially, food makers. We not only “need higher quality food…healthier food….” , the world can’t get enough of it. Food is a manufacturing home-run for Colorado. For the U.S. And we’re just beginning to understand that.

It’s why the circa-1950 view of today’s manufacturing sector – the view of Slavov nd Ho – misses the mark. They’re in good company though. Boulder Soup Works, profiled today in CompanyWeek, is among other things an increasingly advanced manufacturer. Or they’re not. In their home state they’re an agricultural business.

Which of course they are. And Ag is huge. But Andrew Yang, and others, view them as strategic makers of the first order, not only businesses left to inspire only those who would more wisely consume in an otherwise service-centric economy.

Yang’s book, Smart People Should Build Things – How to Restore Our Culture of Achievement, Build a Path For Entrepreneurs, and Create New Jobs in America, starts with a bang:

“We’ve got a problem: our smart people are doing the wrong things. If we can get them to do the right things, it will transform the country.”

Yang argues that the allocation of talent in the U.S. has tilted precariously away from business and industry. He continues:

“If year after year we send our top people to financial services, management consulting and law schools, we’ll wind up with the pattern we’re already seeing: layers of highly paid professionals working astride faltering companies and industries. But if we send them to startups, we’ll get something else. Early-stage companies in energy, retail, biotech, consumer products, healthcare, transportation, software, media, education and other industries…”

CompanyWeek was in part launched on a related premise, that business media has followed the path Yang describes and become so service-centric – largely following banking and finance, law and professional services – that it’s lost sight of entrepreneurs and operators in other sectors.

Of course we also join the debate on the pro-maker and manufacturer side. Kate Brown, founder of Boulder Soup Works, and the dozens of other companies we profile here are inarguably building much-needed value, distinct from what service business offer our communities. And are largely ignored for their efforts.

Maybe it’s a third school of thought: encouraging our smartest people to build companies that build things. Service industries would benefit most.

Taber Sweet, left, and Trae Rigby

Building CO’s maker spaces: developers, industry, cities partner to drive new MFG

Builders and manufacturers share space in the economy. They’re makers. They create things. It’s interesting then that circumstances are bringing them together in a meaningful collaboration.

Developers are increasingly motivated to build new mixed-use projects with light industry a key component. City planners favor the mix. Industry brings jobs and tax revenue. It pays for itself and more.

The industry of choice is increasingly maker and manufacturing businesses. Despite a lingering stereotype, today’s manufacturing surge looks different, more appealing. It’s advanced, clean, tech-driven, green and growing in lifestyle sectors that communities want to highlight – not hide.

It’s a fortuitous alignment. The result may be the development of a new generation of mixed-use, industry-and-family friendly spaces that literally reshape our city landscapes. Colorado’s award of a national digital manufacturing hub will only help.

McWhinney, a prominent real-estate company, developer and builder, sees the convergence of interests and is an advocate.

“For so many years our development pattern has been that industrial is dirty, and needs to put in the backyard, so to speak”, says Taber Sweet, McWhinney’s director of development. “I could show you the spaces we’re contemplating today – light, energy efficient, simple construction techniques. In the past when people say ‘mixed-use’, industrial was the piece that got left out – but going forward I think it’s the piece that gets integrated.

“If you go up to (Denver’s) River North, on Brighton Boulevard , you have The Source (eateries, office) next to these great craftsman and artisans, welders or carbon fiber guys; and that’s what makes River North really tick now…It’s interesting to see how that use (industry) is being integrated.”

The integration also makes financial sense, says Trae Rigby, chief development officer at McWhinney. “As an integrated real estate/development company, we’re trying to be ‘evergreen’ – profitable in all cycles. These types of projects can accomplish that for us, where we own everything long-term, where we tend to ‘asset-manage’ our own buildings so that when things slow down, and we don’t build anything in the next 3 or 4 years, income will come in from a variety of sources and give us a lot of flexibility.”

Colorado’s at the epicenter of the trend, says Sweet. “There’s no mystery why we’re (McWhinney) here. Colorado is incredibly well positioned nationally from a geographical standpoint – we’re central, with transportation infrastructure. And Denver has this incredible industrial core based on a rich history of energy and mineral rights.

“But I think more than anything, we have such a highly educated populace that Colorado is really the next big logical spot for incubation”, says Sweet. “And for us, I believe we’re talking about a product that’s a blend of office, R&D, lab, advanced manufacturing, and light industrial. It’s a great opportunity for the state.”

Other developer/builders see similar opportunity in light industry and manufacturing. Shawn Sullivan, vice president for business development at The Neenan Company, is focused on the craft-brewing segment. “Most successful brewers quickly outgrow their space”, Sullivan says. “As they get a foothold in the market, they make more beer, and to do that they need more equipment and a larger facility.”

Sullivan works with brewers to build new space, but he’s also a cheerleader for the sector. “We’re helping brewers understand how much space they’ll need and when – and how to manage that growth financially. But we’re excited about what’s happening here, with craft brewing and other parts of the maker and manufacturing economy. We view this as a partnership with industry.”

It’s a collaborative approach playing out to mutual benefit for all involved – foremost the communities prescient enough to drive the public-private partnerships required for the large, integrated developments that Sweet and Rigby are enthused about.

Colorado only stands to gain in the regional competition for a new and modern industrial base.

Are manufacturing jobs Cory Gardner’s path to the Senate?

Can Cory Gardner defeat Mark Udall and become Senator? Dick Wadhams thinks so. But as much credit the Colorado GOP is also receiving nationally for nominating a more ‘electable’ candidate, a win against Udall would still be a surprise.

A Republican hasn’t won a statewide election for Colorado Governor or U.S. Senate since Bill Owens in 2002. Dems control the legislature and Governor’s office, and as GOP operative Wadhams and others have noted, a candidate has yet to emerge who can seriously challenge John Hickenlooper. The Governor casts a large shadow on the ticket. He’s assembled a formidable electoral coalition. In Udall’s case, Democratic incumbency is a plus.

Gardner’s yet to articulate a platform but early pronouncements from the gubernatorial field provide strong clues. They suggest the GOP ticket will run on the repeal of Obamacare, Dem overreach on gun legislation, opposition to same-sex marriage and economic sluggishness – a slow recovery.

Will this platform appeal to young voters, women and minorities and social moderates in Colorado who increasingly decide elections? It’s principled. It also similar to what’s been defeated here before. And Gardner’s ‘Battle for the Future of America’ theme runs headlong against a few economic realities.

Contrary to the gloomy tone the of the GOP’s economic assertions, growth and vitality are on display here. Energy is feeding an industrial comeback. Entrepreneurship is thriving. Yes, the western slope is lagging. But on balance the Colorado economy is a formidable engine and compelling story, a national model in some respects. As Brian Burney, CEO of Oliver Manufacturing (profiled in today’s issue) told me, “It’s a good time to be a manufacturer.”

Manufacturing may provide an opening for any candidate willing to make it a campaign issue. Last week Manufacturing & Technology News summarized research that according to the publication, concludes “There is a wide disconnect between the American public and policymakers in Washington, D.C., on the importance of manufacturing to the U.S. economy and the need for action to restore American industrial competitiveness.” Or more succinctly, “Americans Want Washington To Deal With Manufacturing, But Washington Is Not Responding.”

Run on manufacturing!

M&T News reported on some of the findings:

– When asked, “which of the following industries is the most important to the strength of the American economy?” 32 percent of Americans said “manufacturing,” followed by 19 percent saying “high tech and knowledge industries,” 12 percent saying health care, 11 percent saying agriculture, 8 percent saying housing and construction, 6 percent saying finance, and 4 percent saying services and retail.

– Voters reject the idea that other sectors like high tech or services can replace manufacturing. Only 34 percent of Americans agreed with the statement that “the strength of the American economy is innovation and competition — and if manufacturing leaves, we will move into new areas like high tech or services which will take its place in the future”.

– With 88 percent of Americans agreeing with the statement that “American manufacturing means American jobs,” the survey found that “support for American manufacturing and manufacturers is nearly universal.”

– Most Americans (84 percent) support the adoption of a national manufacturing strategy that is focused on tax, education and trade policies (with 7 percent opposed to such a policy).

Ah, the elusive national manufacturing strategy. Another finding strikes close to home. “Most Americans “don’t want to hear about ‘advanced manufacturing,’ ” the survey found, with 44 percent agreeing with the statement: “All manufacturing is advanced — they need to stop trying to come up with new language and focus on strengthening all of manufacturing.”

Colorado policy-makers are tangled up promoting ‘advanced manufacturing’. Even those paying attention are confused. Word is out that ‘advanced industries’ is the new catchword. One wonders where craft brewers, burrito makers, or sew shops fit in this nomenclature.

They’re all important. Congressman Gardner may do well to glance nearly straight south from Yuma, his hometown, to LaJunta, where Oliver Manufacturing’s gravity separators are a global hit.

Campaign inspiration awaits.

Business, universities search for online equilibrium

Reconciling the competing narratives around higher education can be a challenge. Reports of financial trouble and sweeping change are offset by news of the broad and profound economic impact of America’s institutions of higher learning.

Insolvent or impactful, universities and colleges are accountable to business, their customers, and as well-served as US industry has been there’s worry today that graduates aren’t adequately trained to meet the needs of employers. Pick your report – I’ve referenced McKinsey’s in the past – but there’s general agreement a skills-gap is prevalent; that graduates increasingly lack the skills business requires.

John Miller, COO of Englewood-based HOL, a provider of cloud-based, STEM solutions and learning tools, sums up the alignment conundrum. “Industry believes that students graduates today have about 50% of the skills necessary to succeed. Universities say its 70% – what they both agree on is there’s a gap.”

Miller’s firm has developed a “solution set within the distance learning environment” intended to help universities become better at addressing the missing that the 30-50% of graduates, depending on the number, are lacking. For HOL, this means developing tools that enhance science-based online learning.

“The way students learn today if very different than it used to be”, Miller says. “They want to be able to get information when they want in a format they want it – a laptop, an iPad, or whatever they choose to use.

HOL is essentially making distance learning more hands on than it would be otherwise. “We provide the physical hands-on lab tools, for example, to execute any kinds of experimentation to support the learning objectives of a course at a school”, Miller says. “For (distance) chemistry students, as an example, we provide a box with the beakers, the fetal pig to dissect, and other things to give them the same learning experience they’d get at the lab of a university, but in the environment of their choosing.”

Miller works with both universities and industry to develop sector-specific solutions. “We’re trying to bring business and higher-education together to close the gap of what industry needs. The commodity that industry buys, are graduates. Education still doesn’t really get that, that they’re developing a commodity for a market. I’m bringing the two together so they better understand what the needs are so they can create a better solution.”

Miller says the upside for universities is twofold – revenue for starters. Much of the cost for the solutions HOL develops is underwritten by industry. “Many institutions believe that they are physically at risk – they’re desperate for funding. Government can’t underwrite this, it has to be from the entity that is consuming the product.”

A higher placement-percentage may be the big payoff. “There is one job for every eight graduates that is non-STEM”, Miller says. “There are three jobs for one STEM-graduate.”

For its part higher education seems torn between protecting a legacy of institutional success and methodology, and the reengineering that Miller and others advocate involving a more systemic embrace of distance-learning. Given HOL’s national reach, I ask Miller if the McKinsey report and others are motivating higher-ed to embrace change. “They’re attempting to”, he says, “but those attempts in large part have not gone extremely well.”

A leadership faction at Colorado State University might disagree. In 2007 the university launched the CSU-Global Campus, a fully online university that in 2011 became the first of its kind to be awarded independent accreditation from the Higher Learning Commission of the North Central Association of Colleges and Schools. But CSU’s not alone. Harvard and MIT teamed-up on a nonprofit initiative in 2012 called edX, significant in part given the brick-and-mortar stature and the high value of a traditional degree from those schools. MOOCs – massive open online courses – are the rage in higher-ed.

Yet to Miller’s point, are these efforts translating into the type of high-quality education that industry expects? Lou Swanson, vice president of engagement in CSU’s Office of Engagement, believes they can. “If you do this right, it can be as good – if not better – than what students get in class on campus. It comes down to the person delivering the class.”

Swanson’s enthusiasm may also reflect the confidence that CSU’s leadership has in the institution’s ability to adapt to a changing higher-ed landscape.

Industry will benefit if that’s the case.

Is the Colorado Water Plan a silver bullet for Industry?

Companies don’t often have the luxury of forecasting business a decade from now, so it’s no surprise that of the 50 makers and manufacturers we profiled last year, none identified water as a challenge to their operations. Does that mean manufacturers shouldn’t care? No.

If goods-producers are focused on today’s pressing issues, like workforce development, prosperity will come only to those with water. Unfortunately, it’s an increasingly open question as to who will have enough. Some will have less. It’s the West’s greatest economic development challenge.

For their part officials here hope the Colorado Water Plan, currently under development, will provide a modern, equitable distribution blueprint. Part of the rationale, reasonably, is to encourage and codify smart use and conservation. It’s also intended, one assumes, to take a more holistic view of distribution and management, which as a practical matter may be the only way to manage a diminishing resource in the face of growing demand.

But the stakeholders who would divide Colorado’s water are drifting apart. There’s arguably less agreement today on key issues that would make or break a meaningful plan.

The water discussion here begins and ends with the Colorado River, and there’s a pervasive sentiment on the western slope that more water will be diverted to front range users, something viewed as an existential economic threat by many officials west of the divide.

Lurline Curran, county manager of Grand County, put a fine point on it at a Colorado River Basin Roundtable meeting late last year. “Don’t goddamn come here any more,” she now famously exclaimed. “We’re trying to tell you, Front Range: Don’t count on us,” Curran said. “Don’t be counting on us to make up all the shortages.”

Front range municipalities in Douglas County, and elsewhere, like ag-counties on the eastern plain and south, in the Arkansas River basin, see it differently. For one, planners believe more water can be developed from the River per the 1922 Compact. The Bureau of Reclamation, final arbiter on the issue of supply, has established Colorado is using less than its full entitlement. The state’s never used the three million acre feet or so it’s entitled.

As a result south metro officials are pushing for active consideration of new projects that would at once bring more water to the front range and enable the state to realize its full entitlement from the River, something it’s never done.

Will the plan address or sidestep other prickly issues? Ag, energy, municipalities, industry and business – compete for a finite resource. We know ag will get less, cities and towns more, industry enough to sustain short-term growth. But where is the new equilibrium?

Who will own Colorado’s share and how much is also only a piece of the larger River puzzle. What of the other parties to the Compact? The Lower Basin states are in the midst of a water crisis involving the River. At the same time California bakes in drought, it’s being forced to use less what from the Colorado River. For decades California, Arizona and Nevada overused their entitlement. With demand growing, there will be less water. And lower basin users facing imminent shortfalls will not go quietly.

How will all this impact business and industry? A friend with knowledge of northern Colorado water guessed, “If Cargill had taken a real close look at the state’s water issues, they’d never have come here”, referring to that company’s plans to locate a steel processing center in the area.

Agriculture is already losing water and being asked to reinvent itself on the fly, a challenge akin to changing a tire on a moving vehicle. Makers and manufacturers throughout the food and beverage sector should watch closely.

Can the new water reality – scarcity – disrupt industry in a positive way? Without question, it has. The culture of craft beer manufacturing is generally informed by progressive, modern conservation ethos. Growers, producers, and manufacturers – all are developing new methods and materials to use less and do more.

Can a meaningful water plan avoid consensus on major issues but further codify and be a catalyst for a new water-sharing paradigm?

Everyone, including industry, should keep a close watch.