Denver South Economic Development Partnership Industry Cluster Profile
AEROSPACE
The aerospace cluster includes companies that develop a complete spectrum of products and systems for
commercial, military, and civil space applications. Colorado’s aerospace companies provide research and
development, design, and manufacture of guided missiles, space vehicles, satellites and other communications
equipment, and navigation and detection instruments. Companies in the aerospace cluster also produce planetary
spacecraft and launch systems, and provide mission support.
The breadth and depth of the aerospace cluster is rooted in support from four military commands, eight major
space contractors, National Aeronautics and Space Administration (NASA) research activities, and several
universities involved in extensive space research. The state’s wealth of talent, research assets, and synergy
between industry, commercialization, research, and workforce development supports its position as a space
industry leader. Colorado has 140 businesses classified as aerospace companies, and more than 400 companies
and suppliers providing space-related products and services. Direct employment in the aerospace cluster totals
25,150 private sector workers and approximately 29,960 military personnel. These nearly 55,120 workers in the
aerospace cluster support an additional 114,690 workers in all industries throughout Colorado, bringing direct and
indirect employment supported by the aerospace cluster to 169,810 workers.
A number of the state’s key aerospace businesses and facilities are located in the Denver South region.1 The
Denver South region is well positioned between the diverse mix of Department of Defense military installations in
Colorado Springs, Buckley Air Force Base in the eastern metro area, and several renowned research entities
across the nine-county Metro Denver and Northern Colorado region.2 Aerospace employment in the Denver
South region represents 22 percent of all aerospace employment in the nine-county region.
The Denver South region’s companies play a pivotal role in the development of multiple key space missions and
numerous successful launches. Notable company announcements in 2013 included:
 United Launch Alliance (ULA) celebrated its 77th successful mission launch with a classified payload for the
National Reconnaissance Office (NRO). Overall, ULA launched eight national security and three
NASA missions in 2013, including eight Atlas V and three Delta IV launches. The launch year began
with NASA’s TDRS-K communications satellite in January 2013, the U.S. Air Force’s (USAF) missiledetection satellite in March 2013, and the U.S. Navy’s MUOS-2 in July 2013. Other notable ULA launches
included the Delta IV carrying the Wideband Global SATCOM spacecraft in May 2013 and the Advanced
Extremely High Frequency-3 (AEHF-3) satellite in September 2013. Notably, ULA’s Delta IV Heavy rocket—
the largest rocket currently flying worldwide—carried the NRO's classified satellite into orbit in August 2013.
ULA is scheduled to launch 15 missions in 2014—the second-highest annual number in ULA's history.
 The Mars Atmospheric and Volatile EvolutioN (MAVEN) spacecraft successfully launched in November 2013,
and was a celebration of Colorado’s leadership in space exploration with the entire mission and spacecraft
being built and launched by Colorado organizations. Lockheed Martin Space Systems Company designed
and built the spacecraft, while the University of Colorado Boulder’s (CU-Boulder) Laboratory for Atmospheric
& Space Physics (LASP) provided science operations, instruments, and education programs. ULA provided
the Atlas V rocket that launched MAVEN into space. The $485 million MAVEN mission is scheduled to arrive
on Mars by the fall of 2014 and will gather data about the Martian upper atmosphere and the planet’s potential
for supporting life.
 NASA’s Launch Services Program selected ULA’s Atlas V to launch the InSight mission (Interior Exploration
using Seismic Investigations, Geodesy and Heat Transport), which will place a geophysical lander on the
surface of Mars. The InSight mission is scheduled to launch in 2016 and will be ULA’s eighth mission to Mars
since 2001, including Mars Science Lab and MAVEN. Lockheed Martin Space Systems Company will build
and operate the InSight spacecraft.
 The Mexican government chose Arapahoe County-based United Launch Alliance’s Atlas V rocket to put its
third satellite in orbit. The Morelos-3 mission will also be using the commercial launch services of Lockheed
Martin Space Systems Co., based in Jefferson County. The satellite is part of a three-satellite MEXSAT
constellation used for advanced government and commercial telecommunications throughout Mexico.
1
The Denver South region consists of zip codes 80111, 80112, 80124, 80126, 80129, 80130, 80134, and 80237.
The nine-county Metro Denver and Northern Colorado region consists of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas,
Jefferson, Larimer, and Weld Counties.
2
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Denver South Economic Development Partnership Industry Cluster Profile
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ULA won a $96.6 million NASA contract to provide launch services for the Ice, Cloud, and Land Elevation
Satellite (ICESat)-2 mission. The company will use the Delta II rocket to measure polar ice sheets, global
vegetation, and sea ice thickness and is scheduled to launch in 2016.
Highlands Ranch-based launch services company UP Aerospace Inc. successfully launched the SpaceLoft
rocket on a subortibal mission carrying seven payloads for NASA’s Flight Opportunities Program. The seven
payloads represent experiments to develop and advance future aerospace technologies. The execution of this
mission is part of the contract awarded to UP Aerospace by NASA in 2011, to provide low cost commercial
launch services to NASA and the mission is the first fully manifested space flight for NASA's Flight
Opportunities Program.
NASA’s Jet Propulsion Laboratory selected Englewood-based Surrey Satellite Technology US LLC (SST-US)
for the flight of the Deep Space Atomic Clock (DSAC) payload, scheduled to launch during 2015. DSAC will
fly on the SST-US-owned and operated Orbital Test Bed stallite, the first spacecraft to be integrated at the
company’s Englewood facility. DSAC is a key requirement for NASA’s pursuit of deep space exploration
missions which require higher-precsision data collection and autonomous radio navigation.
SunBorne Companies completed construction of new hangar space with offices for Sierra Nevada
Corporation at Centennial Airport. The hangar and office facilities are located at the airport’s Centennial
InterPort.
PRIVATE AEROSPACE ECONOMIC PROFILE
The aerospace cluster consists of 19, six-digit North American Industry Classification System (NAICS) codes
including search, detection, and navigation instrument manufacturing; guided missile and space vehicle
manufacturing; satellite telecommunications; and research and development.
Direct Employment, 2013
Number of Direct Companies, 2013
One-Year Direct Employment Growth, 2012-2013
Five-Year Direct Employment Growth, 2008-2013
Avg. Annual Direct Employment Growth, 2008-2013
Direct Employment Concentration
Denver South
4,370
20
10.3%
61.1%
10.0%
1.9%
Nine-County Region
19,810
110
1.0%
-2.6%
-0.5%
1.1%
United States
357,270
5,160
-1.4%
-5.6%
-1.1%
0.2%
Note: Data reflects only private aerospace employment in the region and excludes military employment.
Sources: Dun & Bradstreet, Inc. Marketplace database, July-Sept. 2007-2010; Market Analysis Profile, 2011-2013;
Development Research Partners.
Private Aerospace Employment




The aerospace cluster directly employed 4,370 people in the Denver South region in 2013.
Aerospace companies employed 1.9 percent of the region’s total employment base, compared with 1.1
percent and 0.2 percent employment concentrations in the nine-county region and nationwide, respectively.
Employment in the region’s aerospace cluster increaed 10.3 percent between 2012 and 2013, compared with
a 1 percent increase and a 1.4 percent decline in the nine-county region, and nationwide, respectively.
The majority of the region’s aerospace employees manufactured serach and navigation equipment (55
percent) and guided missiles and space vehicles (40 percent).
Private Aerospace Companies



Approximately 20 aerospace companies operated in the Denver South region in 2013.
More than 33 percent of the region’s aerospace companies employed fewer than 10 people, while 20 percent
employed 250 or more.
The region’s aerospace companies were located in Arapahoe (93 percent) and Douglas (7 percent) Counties.
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Denver South Economic Development Partnership Industry Cluster Profile
PRIVATE AEROSPACE WORKFORCE PROFILE
Many companies choose locations because of the available workforce. With nearly half of the nine-county
region’s 3.5 million residents under the age of 35, employers can draw from a large, young, highly educated, and
productive workforce. Of the region’s adult population, 40.9 percent are college graduates and 90.3 percent have
graduated from high school. Further, the state has the nation’s second-most highly educated workforce as
measured by the percentage of residents with a bachelor’s degree or higher.
Educational Attainment of Metro Denver and
Northern Colorado's Population Age 25 and Older
3,000,000
Metro Denver and Northern Colorado's Labor
Force Projections by Age
Less than 9th Grade
4.3%
15.1%
2,500,000
5.4%
9th to 12th Grade, No
Diploma
20.0%
2,000,000
High School Graduate
(includes equivalency)
1,500,000
Some College, No
Degree
25.8%
Associate’s Degree
Bachelor’s Degree
21.7%
7.7%
1,000,000
500,000
0
Graduate or
Professional Degree
Source: U.S. Census Bureau, 2012 American Community Survey.
2010
16-24
25-34
2020
35-44
45-54
2030
55-64
2040
65+
Source: Colorado Division of Local Government, State Demography Office.
The attractiveness of the region draws new residents through migration. The region’s population is expected to
grow 51.1 percent from 2010 to 2040, driving a 36.3 percent increase in the region’s labor force over the same
period. It is important to note the changing composition of the workforce supply as the baby boomers begin to
retire. This has serious implications for businesses whose employee pool includes significant numbers of these
workers.
Metro Denver and Northern Colorado's Distribution of
Employment by Age
35%
30%
25%
20%
Aerospace Workforce | The nine-county region’s
aerospace industry employs 19,810 people and
includes a large pool of talented, well-educated,
and highly skilled workers. Compared with the
age distribution across all industries, the
aerospace cluster has a larger share of
employees that are between the ages of 35 and
64 years old.
15%
The aerospace workforce supply consists of four
main components: those currently working in the
5%
industry; those doing a similar type of job in some
other industry; the unemployed; and those
0%
currently in the education pipeline. The Metro
16-24
25-34
35-44
45-54
55-64
65+
Denver and Northern Colorado Aerospace
Aerospace
All Industries
Source: Provided by Arapahoe/Douglas Works! QCEW Employees, Non-QCEW Employees, Self Employed, &
Occupation Profile below includes the 10 largest
Extended Proprietors - EMSI 2013.3 Class of Worker.
aerospace occupations in the region. For these
10 largest occupations, the chart details the total number of workers employed in that occupation across all
industries, the number of available applicants that would like to be working in that occupation, and the number of
recent graduates that are qualified for that occupation.
10%
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Denver South Economic Development Partnership Industry Cluster Profile
Metro Denver and Northern Colorado Aerospace Occupation Profile
10 Largest Aerospace Occupations in Metro Denver and Northern
Total Working Number of Available
Colorado
Across All
Applicants (2013)
Industries (2013)
1. Aerospace engineers
2,309
184
2. Business operations specialists, all other
30,744
1,362
3. Software developers, systems software
9,991
337
4. Mechanical engineers
4,489
359
5. Software developers, applications
17,992
601
6. Biological technicians
2,210
133
7. General & operations managers
32,144
3,110
8. Industrial engineers
2,534
148
9. Atmospheric & space scientists
1,215
32
10. Secretaries & administrative assistants, except legal, medical, &
executive
47,771
1,127
Number of
Graduates
(2012)
153
116
595
399
540
0
5,940
10
55
54
Notes: The number of available applicants is a point-in-time measurement of the number of people who have registered in Colorado’s workforce development system’s statewide database,
Connecting Colorado, as being able and available to work in a particular occupation. Results should be interpreted with caution since registration in Connecting Colorado is self-reported. In
addition, the skills rubric may assign up to four occupation codes for each registrant. Therefore, the number of available applicants could be inflated.
Source: Provided by Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2013.3 Class of Worker.
Wages | Wages in the aerospace cluster are among the highest across all industry clusters. The 2012 average
annual salary for an aerospace worker in the nine-county region was $125,700, compared with the national
average of $98,050. Total nine-county payroll in the aerospace cluster was nearly $2.5 billion in 2012. The
median, average, and percentile annual salaries for the 10 largest occupations in the aerospace cluster are
included in the following chart.
Metro Denver and Northern Colorado Aerospace Salary Profile, 2013
10 Largest Aerospace Occupations in
Median
10th
25th
Average
Metro Denver and Northern Colorado
Salary
Percentile
Percentile
Salary
Salary
Salary
1. Aerospace engineers
$104,541
$63,981
$80,413
$110,635
2. Business operations specialists, all other
$66,269
$33,862
$46,800
$71,240
3. Software developers, systems software
$98,738
$63,773
$79,747
$99,174
4. Mechanical engineers
$82,805
$48,797
$63,648
$86,050
5. Software developers, applications
$88,566
$52,520
$67,870
$89,627
6. Biological technicians
$42,162
$29,890
$34,195
$45,053
7. General & operations managers
$105,768
$54,475
$72,654
$123,968
8. Industrial engineers
$85,987
$58,282
$70,221
$87,922
9. Atmospheric & space scientists
$104,146
$62,899
$83,242
$103,480
10. Secretaries & administrative assistants,
except legal, medical, & executive
$35,630
$23,234
$28,787
$36,192
75th
Percentile
Salary
$125,986
$89,086
$119,600
$106,101
$109,138
$54,496
$158,517
$103,979
$129,522
90th
Percentile
Salary
$158,912
$114,421
$139,901
$132,101
$131,435
$66,664
$230,235
$124,363
$145,413
$43,389
$51,043
Source: Provided by Arapahoe/Douglas Works!; QCEW Employees, Non-QCEW Employees, Self Employed, & Extended Proprietors - EMSI 2013.3 Class of Worker.
Education and Training | The higher education system in Colorado provides an excellent support system for
businesses in the region. There are 28 public institutions of higher education in Colorado, of which seven fouryear and six two-year public institutions offering comprehensive curricula are located in the nine-county region. In
addition, there are over 100 private and religious accredited institutions and nearly 340 private occupational and
technical schools offering courses in dozens of program areas throughout the state. Although not exhaustive, a
list of the major accredited educational institutions with the greatest number of graduates for each of the 10
largest aerospace occupations in the region are included below. A directory of all higher education institutions
with corresponding web sites may be accessed via http://highered.colorado.gov.






Colorado School of Mines
www.mines.edu
Colorado State University
www.colostate.edu
Colorado State University Global Campus
www.colostate.edu
Jones International University
www.jiu.edu
Metropolitan State University of Denver
www.msudenver.edu
Regis University
www.regis.edu





University of Colorado Boulder
www.colorado.edu
University of Colorado Denver
www.ucdenver.edu
University of Denver
www.du.edu
University of Northern Colorado
www.unco.edu
University of Phoenix, Colorado Campus
www.phoenix.edu
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Denver South Economic Development Partnership Industry Cluster Profile
Major Private Aerospace Companies




IHS Aerospace & Defense
http://aero-defense.ihs.com
Jeppesen
ww1.jeppesen.com
Science Applications International Corp.
www.saic.com
SEAKR Engineering, Inc.
www.seakr.com




Sierra Nevada Corporation
www.sncorp.com
Surrey Satellite Technology US LLC
www.sst-us.com
United Launch Alliance
www.ulalaunch.com
UP Aerospace Inc.
www.upaerospace.com
KEY REASONS FOR AEROSPACE COMPANIES TO LOCATE IN THE DENVER SOUTH REGION AND THE
SURROUNDING NINE-COUNTY REGION
The region is a top aerospace location offering:
1. The ability to recruit and retain technical and scientific employees and entrepreneurial talent

Of Colorado’s adult population, more than 37 percent has completed a bachelor’s or higher-level degree,
making Colorado the second-most highly educated state in the nation behind Massachusetts. (U.S.
Census Bureau, 2012 American Community Survey)

Colorado ranked 10th in the number of science and engineering graduate students per 1,000 individuals
ages 25 to 34 years old in 2009. Universities such as Colorado School of Mines, the University of
Colorado Boulder (CU-Boulder), and Colorado State University (CSU) all offer competitive science and
engineering doctorate programs and research facilities. (National Science Foundation, 2012)

Colorado ranked fourth in the number of scientists and engineers as a percent of the workforce in 2010.
This measure points to a large pool of potential innovators in the state. (National Science Foundation,
2012)

Denver South’s surrounding counties (Arapahoe, Denver, Douglas) issued 224 patents per 1 million
people in 2011, slightly below the 225 patents issued per 1 million people in Colorado. A high number of
patents indicate a high level of technological capacity and innovation. (U.S. Patent and Trademark Office,
2013; U.S. Bureau of Economic Analysis, 2013)

NerdWallet found that two of the 10 best places in Colorado for job seekers was in Denver South—
Centennial and Parker. The study looked at the cost of living, the unemployment rate, and the growth in
the number of working-age people in each city. (NerdWallet, 2013)

The U.S. Department of Commerce's United States Patent and Trademark Office located one of four new
satellite offices in Denver due to the state's expansive culture of innovation and entrepreneurism.
Colorado’s new office could result in nearly 600 jobs and will have a $439 million economic impact over
five years. (U.S. Patent and Trademark Office, 2013)

Boulder and Denver are among the most inventive metro areas in the U.S., according to the Brookings
Institution’s Patenting Prosperity: Invention and Economic Performance in the United States and Its
Metropolitan Areas. Boulder ranked fifth for the number of patents per million residents between 2007 and
2011 and ranked 12th for the largest increase in patents per worker from 1980 to 2010. Both Boulder and
Denver ranked among the top 15 metro areas for the highest number of Small Business Innovation
Research awards, while Denver received the 15th-highest value from IPOs between 2000 and 2006. (The
Brookings Institution, 2013)

Colorado ranked fourth in the Milken Institute’s 2012 State Technology and Science Index, which uses 79
indicators in five categories to gauge each state’s technology concentration, science and technology
workforce, human and risk capital, and research and development capacity. Colorado received top-10
rankings in all five categories, and received its highest individual scores in technology concentration and
research and development capacity (third). (Milken Institute, 2013)
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Denver South Economic Development Partnership Industry Cluster Profile

Denver ranked as the third-best city for college graduates, according to NerdWallet. Rankings were
based on criteria including cost of living, demographics, and social scene. Denver received accolades for
its low cost of living, moderate unemployment rate, and easy access to the mountains and nature.
(NerdWallet, 2013)

Metro Denver ranked second among the nation's largest metropolitan areas for total population gain in
the 25- to 34-year age group between 2010 and 2012, according to the Brookings Institution. The region’s
stable economies, “cool” cities, and high-tech centers are drawing young adults. (The Brookings
Institution, 2013)

Health and fitness website Greatist.com named Denver to its 2013 list of the “20 Best Cities for 20Somethings.” Contributors ranked cities on health and wellness, transit, cleanliness, cultural diversity,
sustainability, and affordability. Denver received accolades for its healthy and active population, and
cultural diversity. (Greatist.com, 2013)

Forbes ranked the Denver-Aurora-Broomfield MSA ninth among “The Best Big Cities for Jobs 2013.” The
ranking considered 66 metro areas with more than 450,000 jobs and examined factors such as growth
trends, economic momentum, and employment data. (Forbes, 2013)

Denver ranked as the fifth-most highly-skilled intensive science, technology, engineering, and math
(STEM) economy in the nation, according to the Global Cities Initiative. The $10 million, five-year joint
project between the Brookings Institution Metropolitan Policy Program and JPMorgan Chase aims to help
leaders of metropolitan areas strengthen their regional economies by becoming more competitive in the
global marketplace. Denver received accolades for its highly educated workforce and innovative
ecosystem. (The Brookings Institution, 2013)

The Colorado Academy for the Development of STEM-related Careers—a partnership between
Metropolitan State University of Denver, Colorado School of Mines, Community College of Denver, and
the Cherry Creek School District—is designed to position the state as a leader in scientific and technology
education. The overall program ensures Colorado students from kindergarten to graduate level receive
specialized training and certifications to connect targeted communities to job readiness and career
enhancement, coordinate with state Workforce Centers, and assist in job placement.
2. Proximity to vendors and customers

Colorado received the third-highest National Aeronautics and Space Administration (NASA) prime
contract awards in the nation—more than $1.8 billion—in 2012. Major award recipients with a significant
presence in the state included Lockheed Martin, The Boeing Company, and Raytheon. The University of
Colorado ranked sixth and CSU ranked 53rd among the top 100 public educational institutions for NASA
research awards in 2012, representing 4.4 percent of the total awards. (National Aeronautics and Space
Administration, 2013)

Denver South is anchored by two of Metro Denver’s eight large prime contractors: Sierra Nevada
Corporation and United Launch Alliance.

Denver South is home to major military operations including Buckley Air Force Base, which is home to the
460th Space Wing and supports more than 83 tenant organizations that represent all branches of the
military. The base also hosts the Colorado Air National Guard 120th Fighter Squadron and its F-16C
fighters.

Cheyenne Mountain Complex serves as NORAD and USNORTHCOM's Alternate Command Center and
as a training site for crew qualification.

Prime contractors and military installations support more than 400 space-related businesses in Colorado.
(Colorado Space Coalition, 2013)

The U.S. Department of Defense (DoD) awarded Colorado a Procurement Technical Assistance Center
(PTAC) in 2009. Based in Colorado Springs and with satellite offices in Aurora, Golden, and Westminster,
the Center provides assistance to businesses in marketing products and services to prime contractors
and the federal, state, and local governments at no or nominal cost. Since inception, Colorado PTAC’s
nearly 3,000 active businesses have received $700 million in contract awards and have generated an
estimated 35,000 jobs for Colorado.
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Denver South Economic Development Partnership Industry Cluster Profile
3. Proximity to colleges/universities

Two academic institutions in Colorado offer nationally ranked aerospace programs or degrees:

The University of Colorado Boulder’s (CU-Boulder) aerospace engineering sciences graduate
program ranked among the top 15 in the nation, offering students strong space-related research
programs, numerous aerospace-focused research centers, and membership in the U.S. Air Force
Space Education Consortium. (U.S. News & World Report, 2013)

The National Research Council ranked CU-Boulder’s aerospace engineering sciences graduate
program among the top four in the country. (National Research Council, 2010)

The U.S. Air Force Academy in Colorado Springs ranked second among schools that do not offer
doctoral degrees for its undergraduate aerospace engineering program for the 13th-consecutive
year and offers majors ranging from astronautical engineering and computer science to
aeronautical engineering and space operations. (U.S. News & World Report, 2013; Colorado
Space Coalition, 2013)

The University of Colorado system ranked 10th among the nation’s public institutions for science and
engineering research and development expenditures totaling $816 million in fiscal year 2011. The
university also ranked fifth for federally funded research expenditures. (National Science Foundation,
2013)

CU-Boulder’s Department of Aerospace Engineering Sciences received $16.6M in research awards in
fiscal year 2013. (University of Colorado, 2013)

CU-Boulder’s Laboratory for Atmospheric and Space Physics (LASP)—the only research institution that
has designed and built space instruments for NASA that have launched to every planet in the solar
system—is a full-cycle space institute that combines all aspects of space exploration and expertise
including data analysis, education, mission operations, and engineering. LASP can operate up to 11
space instruments, with up to 12 space science flight programs in development concurrently. Further,
LASP is only one of a few university-based mission operation centers that train and certify
undergraduates to perform mission operations for NASA satellites totaling more than $1.5 billion in value.

BioServe Space Technologies is a NASA-funded Center in CU-Boulder’s Department of Aerospace
Engineering Sciences. For more than 25 years, BioServe has designed, constructed, and flown
microgravity life science research and hardware on more than 40 space flight missions. It has partnered
with 100 different companies and organizations to conduct ground and space-related research and
engineering activities. BioServe’s hardware is currently used on the International Space Station and the
Space Shuttle mission. (University of Colorado, 2013)

The Center of Excellence for Commercial Space Transportation—a partnership between government,
industry, the Federal Aviation Administration (FAA), and nine academic institutions including CUBoulder—formed in 2010 to address current and future challenges of commercial space transportation.
CU-Boulder plays a key role, offering their experience in spacecraft life support systems and habitat
design, human factors engineering analysis, payload experiment integration, and expertise in space
environment and orbital mechanics.

eSpace: The Center for Space Entrepreneurship was established in 2009 as a partnership between the
University of Colorado and Sierra Nevada Space Systems. The not-for-profit business incubator is
dedicated to developing and catalyzing new entrepreneurial space companies, commercializing
aerospace technologies created within these companies, and developing the aerospace workforce to
support them. Since its inception, the center has generated a $7.1 million economic impact to the state
and has fostered a thriving entrepreneurial aerospace industry through three successful programs:
eSpace Incubator, Straight to Space workforce initiative, and the Venture Design program.

Metropolitan State University of Denver’s (MSUD) Robert K. Mock World Indoor Airport (WIA) is a large
flight training and simulation laboratory that features the Advanced Aviation & Aerospace Flight Training
program. The WIA is comprised of multiple labs that contain state-of-the-art, FAA-approved flight training
devices, aerospace computer-based training systems, air traffic controller training stations, and avionics
equipment. A full-featured avionics lab is also included in the WIA where students learn the principles of
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Denver South Economic Development Partnership Industry Cluster Profile
operation and problem solving using avionics equipment that have similar operational fidelity as
experienced in the flight environment.

CSU’s programs and institutes dedicated to atmospheric science and research are internationally
renowned. Established in 1980, the Cooperative Institute for Research in the Atmosphere (CIRA) serves
as a mechanism to promote synergisms between CSU scientists and its ongoing partnership with the
National Oceanic and Atmospheric Administration (NOAA). Since its inception, CIRA has expanded and
diversified its mission to coordinate with other federal agencies including NASA, the National Park
Service, the U.S. Forest Service, the FAA, the Environmental Protection Agency, and the DoD. (Colorado
State University, 2013)

MSUD’s Aviation and Aerospace Department is expanding its focus to include space commercialization
and spaceport development in an effort to align its efforts with Spaceport Colorado. The Department is
also working closely with Front Range Airport and could eventually serve as a space-pilot training facility
for the Spaceport.

Three institutions in the nine-county region—CU-Boulder, Colorado School of Mines, and the University of
Denver—are members of the Universities Space Research Association, with graduate programs in space
sciences or engineering.

CU-Boulder’s AeroSpace Ventures is a newly formed collaboration among aerospace-related
departments, centers, institutes, government labs, and industry partners to create knowledge and develop
new technologies to better understand Earth and space, specifically focusing on unmanned aerial
systems, small satellites, and sensors. These collaborations result in accelerating discoveries in earth and
space sciences, educating multidisciplinary and systems-oriented students, developing new technologies
that create new commercial opportunities, and creating partnerships that help industry grow. (University
of Colorado, 2013)

Launched in 1989, the Colorado Space Grant Consortium—a NASA funded statewide organization
involving 17 Colorado institutions—designs and builds space hardware, including CubeSats, and provides
hands-on experience to more than 10,000 students engaged in designing, building, and flying satellites.
Since its inception, Colorado student teams have designed, built, and flown 20 rocket payloads, three
NASA space shuttle payloads, three orbiting satellites, and more than 1,000 high-altitude balloon
payloads. (University of Colorado Boulder, 2013)

CU-Boulder is the only university outside of the Naval Postgraduate School to have two astronaut alumni
on its faculty. Former astronauts Jim Voss and Joe Tanner serve as faculty in the Department of
Aerospace Engineering Sciences and bring 43 years of combined experience at NASA. (University of
Colorado, 2013)

The University of Colorado has one of the highest numbers of astronaut alumni in the nation and a high
participation rate in the NASA space program. Of the 20 University of Colorado astronaut alumni, 19 have
flown in space as of 2013. (University of Colorado, 2013)

The University of Colorado faculty, staff, and students receive about $50 million annually for space
research, allowing students the opportunity to gain hands-on experience on projects used by space
scientists. (University of Colorado, 2013)
4. Low to moderate costs of doing business

Colorado's simplified corporate income tax structure based on single-factor apportionment allows
companies to pay taxes based solely on their sales in the state. Along with few regulatory burdens,
Colorado's corporate income tax rate of 4.63 percent is one of the lowest and most competitive tax
structures in the nation. (State of Colorado; The Tax Foundation)

Colorado has the nation’s eighth-best tax climate for small businesses and entrepreneurs, according to
the Small Business & Entrepreneurship Council’s “Business Tax Index 2013.” The index evaluates state
taxes on personal income, capital gains, dividends and interest, corporate income, and other factors to
determine each tax system’s overall cost to small business. (Small Business & Entrepreneurship Council,
2013)
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Denver South Economic Development Partnership Industry Cluster Profile

Denver South’s office rental rates averaged $21.43 per square foot in the fourth quarter of 2013, making
the region’s office market highly competitive with other major markets in the U.S. Denver South has more
than 41 million square feet of office space and roughly 5,000 acres of ready-to-be-developed land.
(CoStar Realty Information, Q4 2013)
5. Pro-business and flexible state and local governments

Metro Denver ranked sixth on Forbes’ 2013 list of the “Best Places for Business and Careers.” The
ranking of the 200 largest metropolitan statistical areas is based on 12 metrics including the costs of
doing business, job growth, educational attainment, and projected economic growth. Denver received
accolades for its central location, growing technology and telecommunications industries, and active
lifestyle. Four other Colorado metropolitan areas were included on the list. The Fort Collins metro area
ranked seventh overall, Boulder ranked 26th, Colorado Springs ranked 44th, and Greeley ranked 51st.
(Forbes, 2013)

CNBC ranked Colorado as the seventh-best state for business in its annual “Top States for Business.”
The ranking reflected states’ composite scores on 51 metrics in 10 broad categories of competitiveness
ranging from workforce and quality of life to the cost of doing business and business friendliness.
Colorado earned top-10 rankings in the categories that measure the economy (seventh), technology and
innovation (eighth), and workforce (10th). (CNBC, 2013)

Colorado ranked among the top 15 states with the most entrepreneur-friendly environment, according to
the Small Business & Entrepreneurship Council’s “Small Business Policy Index 2013.” The index
evaluates 47 policy measures ranging from property, sales, and income taxes to unemployment taxes
and healthcare costs. The state’s low unemployment taxes, low corporate taxes, and small share of
federal aid contributed to its notable ranking. (Small Business & Entrepreneurship Council, 2013)

Colorado is a top state for supporting innovation, according to the U.S. Chamber of Commerce and the
National Chamber Foundation’s Enterprising States report. The study examined six metrics including
exports and international trade, entrepreneurship and innovation, economic performance, business
climate, talent pipeline, and infrastructure. Colorado received several top 10 rankings in innovation and
entrepreneurship (second), infrastructure (seventh), business climate (eighth), and talent pipeline (ninth).
(National Chamber Foundation, 2013)

Colorado received an “A” grade for its business-friendly environment, according to the Thumbtack.com
and the Ewing Marion Kauffman Foundation Small Business Friendliness Survey. Researchers compiled
survey responses of 7,700 small businesses across the nation. The state earned top ratings on factors
such as starting a business, hiring costs, regulation, taxes, and the availability of training and networking
programs. Cities were also given grades and Denver received an “A-” grade. (Thumbtack.com, 2013;
Ewing Marion Kauffman Foundation, 2013)

Chief Executive Magazine ranked Colorado among the top 15 best states to do business in 2013. The
magazine’s annual “Best & Worst States Survey” evaluated the sentiments of 736 CEOs across the
nation on a variety of metrics including regulations and tax policies, workforce quality, quality of living,
educational resources, and infrastructure. Colorado’s business environment is bolstered by low taxes, few
regulatory burdens, and a high-quality workforce. (Chief Executive Magazine, 2013)
6. Business organizations and public policy programs designed to encourage industry growth

The Advanced Industries Accelerator Programs—House Bill 1001 (2013) and House Bill 1193 (2013)—
were created to promote growth and sustainability in Colorado’s key industries through public-private
partnerships, strong infrastructure, and early capital. House Bill 1001 (2013) provides advanced industries
such as aerospace, bioscience, electronics, information technology, advanced manufacturing,
engineering, and energy and natural resources with several million dollars a year for up to 10 years
(including $14.5 million in fiscal year 2013-14) for grants to create new high-skilled jobs, align educational
and training institutions to match workforce and industry needs, accelerate the commercialization of
technologies, and enable the state to compete effectively in a global market. A separate bill, House Bill
1193 (2013), launched a new five-year, $300,000 export program with the state’s international trade
division to help export products developed by advanced industries under the acceleration program.
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Denver South Economic Development Partnership Industry Cluster Profile

The Colorado Office of Economic Development and International Trade appointed Maj. Gen. Jay Lindell
as Colorado’s Aerospace and Defense Industry Champion in 2013. Maj. Gen. Lindell will promote the
interests of Colorado’s aerospace and defense industry, oversee the implementation of Colorado’s
aerospace strategic plan, and develop and implement strategies surrounding the state’s military bases.
This new position was created following the state’s partnership with The Brookings Institution to develop a
strategic plan for further growing the space industry in Colorado: “Launch! Taking Colorado’s Space
Economy to the Next Level.”

Legislation passed in 2013 extended Colorado’s Job Growth Incentive Tax Credit through 2024. House
Bill 1287 (2013) provides an income tax credit to businesses creating new jobs in Colorado. To qualify for
the credit, businesses must create at least 20 new full-time jobs in the state and the average annual wage
of the jobs must also be at least 110 percent of the county average wage where the business is located.
Since its inception, the job growth tax incentive program has created more than 7,200 new jobs in nearly
30 expanding businesses in Colorado.

To further pave the way for Spaceport Colorado, legislation passed in 2012 will help expand the state’s
aerospace economy. Senate Bill 035 (2012) limited the liability for public and private entities holding a
FAA license for spaceflight activities. The legislation is an important first step in initiating commercial
spaceflight activities in the state.

President Obama signed into law the Fiscal Year 2013 National Defense Authorization Act, which
includes a provision to reduce export restrictions on certain satellites and components not deemed highly
sensitive, and helps aerospace companies stay competitive globally while maintaining national security
interests. The provision, much-welcomed by the aerospace industry, was championed in the Senate by
Colorado Senator Michael Bennet, and in the House by Colorado Representatives Mike Coffman, Diana
DeGette, Ed Perlmutter, and Jared Polis.

The Colorado Innovation Network (COIN) is a private, public, and academic collaboration designed to
foster new technology development across the state’s existing and emerging industries. Launched in
2011, COIN aims to connect innovation leaders and inventors to solutions and ideas and is part of Gov.
John Hickenlooper’s economic development plan, Blueprint Colorado. In 2013, COIN hosted the secondannual Innovation Networking Summit in Denver which brought together 250 leaders from around the
world to discuss the innovation ecosystem and Colorado’s economy in relation to the global market, local
business support, and job creation. Additionally, Mark Sirangelo, head of Sierra Nevada Corporation
Space Systems, was appointed as Colorado's new Chief Innovation Officer and will also serve as
chairman of COIN in 2013 to help increase the state's innovative competitiveness.

Startup Colorado is a regional initiative to increase the breadth and depth of the entrepreneurial
ecosystem across Colorado’s Front Range. Launched in 2011, the initiative focuses on improving access
to entrepreneurial education, encouraging new company creation, increasing connections among
entrepreneurs and mentors, and building a more vibrant entrepreneurial community. In 2013, Startup
Colorado launched the first program of its kind—the Startup Colorado Community Fund—to support
entrepreneurial communities across the state, including providing funds to host events, speakers,
seminars, and competitors to spur startup activity. (Startup Colorado, 2013)
Provided by:
Denver South Economic Development Partnership
304 Inverness Way South, Suite 315
Englewood, CO 80112
303-792-9447
www.denversouthedp.org
Prepared by:
Development Research Partners, Inc.
10184 West Belleview Ave, Ste 100
Littleton, Colorado 80127
303-991-0070
www.developmentresearch.net
March 2014
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