June 2007
Corporate headquarters relocations fuel Metro Denver employment
Numerous corporate headquarters relocations create jobs in Metro Denver, while the commercial and residential real estate markets regain strength, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for June 2007.
Total employment in Metro Denver increased by 10,800 positions from March to April, compared to 7,600 positions from February to March, bringing total employment in the Metro Denver region to 1,394,000 positions. A closer look reveals a 1.8% year-to-date employment increase in the Denver-Aurora MSA and a 3.4% increase in the Boulder-Longmont MSA. The state of Colorado posted a 2.1% year-to-date gain through April compared to a 1.5% gain at the national level.
At a broader level, Metro Denver employers will hire new employees at a “vigorous” pace in the second quarter of 2007, according to the latest Manpower Employment Outlook Survey. An estimated 42% of Denver area employers will add workers during the April-June period while 12% will reduce payrolls and 43% expect no staffing changes. The remaining 3% are unsure of their staffing plans.
Several company relocations to the Metro Denver area will continue to fuel future job growth. Three companies recently announced new corporate headquarters relocations to Metro Denver, including The Revere Group, Vodafone Americas Inc., and Pro-Build Holdings Inc.
The Revere Group, a global business and technology-consulting firm, will eventually support 200 high-paying local jobs within four to five years. For the Western region as a whole, Revere envisions a workforce of 500 positions and annual revenues of $125 million.
Vodafone Americas Inc. moved its headquarters from Walnut Creek, CA. Executives selected Metro Denver for its new headquarters because of the region’s lower operating costs, high-quality labor force, and international airport.
Pro-Build Holdings Inc., the nation’s largest professional building materials supplier, was Forbes magazine's 37th largest private company in 2006. The company is also considering Metro Denver for a data center.
“These announcements signal that Metro Denver is again being seen nationally as a corporate headquarters location,” stated Patty Silverstein, chief economist for the Metro Denver EDC.
Additionally, two companies announced their return to Metro Denver. Educational software developer eCollege.com and Marathon Oil Co. will restart operations in the area this year.
Company relocations and expansions have also led the commercial real estate sector to build 2.23 million square feet of new office space during the January-March period, compared to 1.33 million square feet in the prior quarter, and 1.21 million square feet in the same quarter last year.
Further, in residential real estate, Metro Denver’s existing or previously-owned home sales strengthened in April for a 3.3% year-to-date increase. Home sales under contract, a forward-looking indicator, also increased in April for a 2% year-to-date gain. The level of unsold inventory increased from March to April as the summer selling season got underway but remains 4.3% below inventory levels at this time last year.
Recent economic data for Metro Denver reveals that 9 of the 18 indicators moved in a positive direction for the month, down from 10 last month and 12 two months prior. Annualized activity also slipped from last month with 13 economic variables posting positive changes for the year, down from 14 last month. Based on data from the first several months of 2007, Metro Denver has a solid employment market coupled with strong nonresidential real estate fundamentals, but consumer activity is growing at a more modest pace as the residential housing market remains sluggish.
The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.