In parallel to the work of NoCo REDI (Northern Colorado Regional Economic Development Initiative) to identify targeted industry clusters for the region combining Larimer and Weld counties, (Greeley Rising, July Issue), the City of Greeley’s Economic Development team has been exploring the growth potential of Greeley’s top industry sectors. This work seeks to better understand the various ways our top industries contribute to the economy, including direct jobs as well as indirect jobs across the supply chain. Aside from employment impacts linked to the average wages paid in different industries, we can calculate total compensation, which feeds directly into local consumer spending power. Additionally, the projected impacts of business sales and output growth is a measure that feeds into business profits and tax generation. It is important to take a 360-degree view when forecasting future industry impacts to ensure that economic development is targeting industries that create strong returns for the community.
Direct impact forecast: Energy and Power is projected to contribute an additional 971 direct jobs contributing $82.9 million in direct wages annually by 2030; the 3rd highest for direct impact. The average wage in Energy and Power at $84,904 to $85,384 is about 58% higher than the local average wage of $53,683.
Total impact forecast: Energy and Power is projected to contribute an additional 1,990 jobs annually by 2030; the 3rd highest. With high average wages, the industry is projected to contribute an additional $293 million in total compensation annually; the highest of all top industries. By 2030, Energy and Power is projected to add $2.24 billion annually in total sales and output; contributing more than all other top industry sectors.
Prospects
- Wealth Impact: The Energy and Power sector underpins local prosperity through high local wages, royalty fee payments, and strong regional supply chains that help local companies to succeed.
- Current Climate: Low oil prices and the COVID pandemic have reduced global energy activity and suppressed the number of drilling rigs active in the Denver Julesburg (DJ) Basin.
- New Investment: The acquisition of Noble Energy by Chevron, one of the world's largest companies, is a vote of confidence.
- Market/Political Risk: Long term, oil and gas exploration is facing headwinds as advances in renewable energy and electric cars, and shifting government policy combine to favor eco-friendly alternatives that undermine demand.