The Colorado economy is on track to shed about 75,000 jobs this year, positioning the state ahead of only 20 states in the percentage of jobs lost during 2009. Employment declines are expected in all sectors, with the exception of healthcare. The state's current level of employment is comparable to peak employment in mid-summer 2001. In other words, all the jobs gained after the recovery from the 2001 recession have disappeared.
On a brighter note, I recently had the opportunity to visit several Colorado companies as part of the work the BRD has conducted in support of the photonics and film industries. These company visit make it apparent that there are companies in various sectors that didn't receive the memo that the country has been in a deep recession for the past year.
At the top of the list is Real D, a company quietly nestled in a small industrial park south of the Boulder airport. The company produces 3D projection equipment that integrates optics research from the University of Colorado. In addition, they provide cutting-edge visualization tools for professionals, and technology for home 3D televisions and display screens. If you have visited the theatres within the past year and enjoyed one of the 3D flicks where the characters appear to jump out of the screen into your lap, then you most likely watched it on Real D projection equipment. Such movies include Chicken Little, Bolt, Up, the Jonas Brother, and Hannah Montana.
Other firms on the tour are categorized as "post-production" companies (Postmodern, Lighting Services Inc., and Citizen Pictures), a term with describes the way these companies operated a decade ago. All three companies have successfully adapted to the drastic technological changes that have transformed the manner in which productions are made and distributed.
On top of that, the model for conducting business has been changed significantly by incentives. Today, the industry is driven by incentives provided by state and local governments. Producers typically make decisions about where to produce based on these incentives rather than on factors such as location or the quality of the local workforce. In most cases, other states and communities provide incentives that are far more attractive than those provided by Colorado. (Additional information about the history, impact, and challenges of the film industry conducted by the BRD can be found by clicking here. In addition, Dave Emrich, second-generation film producer and President of Postmodern, has made available a short clip of the history of film in Colorado. Additional information about the industry can be found at the Colorado Office of Film Television and Media.)
While the state continues to feel the effects of the 2007 recession, it was a breath of fresh air to see first-hand how Colorado companies have successfully adapted to challenges provided by the recession, redefinition of their industry, and policy decisions. The success of these companies help put the struggles of the recession in perspective. Clearly, it is necessary for the country to have improved consumer confidence, better access to capital, and stronger employment levels for the economy to improve. Ultimately, though, these four companies provide a reminder that creativity, innovation, adaptability, and persistence will foster sustained prosperity in our state and national economies.
