Posts tagged Richard Wobbekind
CU Leeds School of Business: Positive, broad-based job growth forecast for Colorado in 2013
Dec 3rd
Wobbekind’s announcement is part of the 48th annual Colorado Business Economic Outlook Forum presented Dec. 3 by the Business Research Division of the Leeds School.
The comprehensive outlook for 2013 features forecasts and trends for 13 business sectors prepared by more than 100 key business, government and industry professionals.
“For the state, we see a very positive environment for 2013,” said Wobbekind, executive director of the Business Research Division. “We’re seeing a wide array of jobs being added and they’re diversifying our state economy.”
Overall, the forecast calls for a gain of 42,100 jobs in 2013, compared with a gain of about 47,900 jobs this year. All sectors of the Colorado economy are predicted to grow in 2013 with the exception of the information sector, which includes publishing and telecommunications.
When comparing the Leeds School forecast to employment outlooks for other states, Colorado is expected to be in the top 10 states for job growth in 2013 and perhaps in the top six or seven, according to Wobbekind.
Even with positive job growth projected for the state, Wobbekind said uncertainty from national and international factors will play a role in slowing growth during the first and second quarters of 2013. More momentum will occur in the second half of the year.
“Resolution of the so-called fiscal cliff and the resolution of the European debt crisis will have impacts on the national economy and that will filter down to the state level,” said Wobbekind. “Once that uncertainty gets resolved, we then expect business investments to start flowing again and consumers to start making decisions based on a known environment. We think the recovery will be quite a bit smoother after that.”
The strongest sector for projected job growth in Colorado in 2013 is the educational and health services sector. The sector is expected to add 7,600 jobs in 2013.
In addition, other leading growth sectors for 2013 include the professional and business services sector with 7,400 jobs added and leisure and hospitality with 5,000 workers added, mostly in the areas of accommodation and food services.
The trade, transportation and utilities sector is the largest provider of jobs in Colorado. It includes everything from wholesale and retail trade to a variety of transportation features such as the Denver International Airport and gas pipelines, as well as utilities. The sector is expected to grow 1.4 percent in 2013 with the addition of 5,600 jobs.
The construction sector is expected to grow by 6,300 jobs in 2013 — up from a 2,800-job increase this year — and produce $12.6 billion in total value of construction. While the biggest surprise in the sector is the demand for infrastructure work, the number of new multifamily units built is a contributing factor to the increase, among others.
Commenting on the overall forecast, Wobbekind said, “It’s great to be giving positive news to people year after year. Confidence levels nationally are at their highest levels in five years. We’re really starting to see a lot more optimism on the part of the average person on the street about the future.”
Colorado’s unemployment rate is expected to decrease from 8 percent in 2012 to 7.4 percent in 2013, which is comparatively better than the national unemployment rate.
Colorado’s population grew by 1.4 percent, or 71,000 people, in 2012 and is projected to increase by 1.5 percent, or 77,500 people, in 2013. Roughly half of the increase will derive from net migration, or the increase of people moving to the state.
To view the entire economic outlook for Colorado in 2013, including an overview of each of the state’s major economic sectors, visit http://leeds.colorado.edu/BRD and click on the Colorado Business Economic Outlook 2013 icon.
CU Business Review: Colorado’s becoming “beverage”-can capital
Oct 15th
More than 92 billion aluminum beverage cans were sold in the U.S. in 2011 reflecting a decline in annual sales — particularly among standard 12-ounce cans — since the industry’s peak five years prior.
But a number of Colorado companies, including Ball Corp., are well positioned to tap new markets in the evolving industry. Ball employs more than 3,000 workers statewide, and packaging accounts for 90 percent of the company’s sales.
“Beverage industry employment is growing faster than manufacturing employment and total employment in the state and is outperforming beverage manufacturing employment nationally,” said Richard Wobbekind, editor of the quarterly Colorado Business Review.
According to the latest edition of the review, published by the Business Research Division of the Leeds School of Business, the U.S. beverage can market remains quite healthy with a unit share of just over 40 percent.
Experts attribute the sales decline of 12-ounce cans to weak economic growth, which has consumers “trading down” to less expensive products, among other factors.
By contrast, demand for specialty can sizes grew at a robust rate of approximately 15 percent last year. From the 5.5-ounce mini-can to the 32-ounce jumbo can, brand owners are leveraging the unique sizes and shapes of the beverage cans to drive differentiation in the market.
One well-known specialty package from Ball is the Alumi-Tek bottle, or aluminum pint. Brewers have enjoyed great success with the bottles, which offer re-closable caps. Craft beers and wines have increasingly found their way into aluminum cans. Even water sold in cans has grown more than 30 percent since 2008.
“The current decrease in the U.S. beverage can market is more a sign of progress than one of decline as the industry shifts away from reliance on just the 12-ounce can,” says Jim Peterson, vice president of marketing and corporate affairs for Ball Corp. “Ball is expanding into new products and capabilities to meet demand.”
Peterson cites more than $175 million in investment across the U.S., including $60 million in Colorado for a new specialty can line in the company’s Golden, Colo., facility and a nearly $5 million expansion of its package research and development operations in Westminster, Colo.
Colorado beverage makers also benefit from state laws that support self-distribution, allowing young brands and small producers to go to market. New Belgium Brewing of Fort Collins, Colo., America’s third-largest craft brewery, started selling beer out of the back of a station wagon.
The Business Research Division of CU-Boulder’s Leeds School of Business conducts Colorado-focused economic and marketing studies, collaborating with faculty researchers, government entities, business leaders, nonprofit organizations and students. For more information visit http://leeds.colorado.edu/brd#coloradobusinessreview.