Tuesday 28 May, 2013
Denver is a great city for starting any kind of business. Companies of all shapes and sizes, from huge corporations to small start-ups, call the city home. There’s a growing labor surplus and a burgeoning locally-based venture capital scene, which means even more opportunity. Denver is a particularly ideal location for manufacturing businesses.
Manufacturing in Colorado
Colorado has always been a major manufacturing center for several reasons. First of all, what originally put it on the map and led to its initial growth was the development of its nearby mineral resources. The proximity to these natural resources made it ideal for manufacturing, and the Rocky Mountain Arsenal and other plants were opened in order to produce arms for the war effort. With its military bases and educational institutions, nearby Colorado Springs also became a huge manufacturing center.
These early industries laid the groundwork for the Rocky Mountain Front Range as it is today. The facilities, resources, equipment, and labor force is all there for manufacturing businesses to use.
Denver’s Shipping Lines
A manufacturing business needs good shipping lines in order to get its finished goods to market. Denver offers several ways for manufacturers to do this. If shipping by rail, Interstate 70, one of the country’s main commercial arteries, runs right through the center of the city. There’s also Interstate 25, which runs from north to south.
Denver has always been a railroad town, with its Union Station connecting it to major train lines. There’s also the Denver International Airport, one of the country’s main air hubs.
Reshoring in Colorado
Reshoring is a trend among businesses of bringing manufacturing jobs shipped overseas back. As China’s economy grows and its currency becomes more expensive, companies are moving their manufacturing jobs back home. Colorado is one of the areas where reshoring is taking off. As of August 2012, Colorado had nearly 6,000 more manufacturing jobs than it had a year before. At the time of writing, there are over 133,000, which is more than most urban areas of Denver’s size.
There are a number of reasons why Colorado is such an attractive place for reshoring. The labor surplus, ease of shipping, and established manufacturing resources mentioned above all play a part. So does the fact that Colorado’s government is actively pro-business and trying to encourage companies to call the state home.
Tax Credit Initiatives
A pro-business government means many incentives for businesses that want to call the state home. One of these is the Denver Enterprise Zone, a tax credit initiative available for companies that operate in Colorado. With this incentive, manufacturing businesses in Denver are exempt from state sales and use tax for machinery and equipment that costs over $500.
Denver is a wonderful place to have a business and the reasons are endless. It’s especially ideal for manufacturing businesses. Its location, history and business environment make it a great choice.