Colorado economic development remains among the strongest

State earns top marks in national economic assessment

Colorado not only has strong businesses, but it is well-positioned for future growth, according to a comprehensive assessment of state economies released in January 2007.

The 20th Development Report Card for the States, released by the nonprofit Corporation for Enterprise Development (CFED), listed Colorado on its Honor Roll for the second straight year for its overall economic development performance. The state received the following grades:

• “B” for Performance (the performance of the economy for its citizens)
• “A” for Business Vitality (business competitiveness and entrepreneurial energy)
• “A” for Development Capacity (the positioning of the state for future economic growth)

The CFED Development Report Card for the States is the most comprehensive measurement of the health of a state’s economy and each state’s economic development efforts. The study uses 67 measures to assess how the economy is performing for citizens and businesses and how well a state is situated for its future. The complete 2007 Development Report Card for the States, including all 67 measures and analysis of each state, is available online at http://www.cfed.org/go/drc.

The study finds Colorado to be forward-thinking state with a robust business community and an agile labor force. Colorado has created an excellent climate in which to do business, as it has made significant investments to boost both existing businesses and entrepreneurial activity. The state ranks 3rd among the states in new companies created and 2nd in technology industry employment.

“In addition to its strong business environment, Colorado also ranks high in public health, and other quality of life measures,” said David Buchholz, research director for CFED. “In addition, Colorado is closing its income gap, which means more Coloradans are participating in the prosperity.”

However, Buchholz adds that stagnating wages may become a concern, as Colorado now ranks 41st in average annual pay growth.

The top performers for 2007 are Connecticut and Delaware, the only states to earn straight “A”s. Colorado and four other states –Massachusetts, Minnesota, Utah and Wisconsin – joined them on the Report Card’s Honor Roll by earning all “A”s and “B”s.

The Development Report Card for the States was launched in 1987 to provide a more comprehensive measurement of state economic health. The Report Card is based on the idea that both businesses and individuals benefit from dependable infrastructure, good schools, a healthy environment, a good quality of life, accountable and transparent government, financial security for households, and prosperity that is widely shared.