Every location has different pillars when it comes to the local economy. In Colorado, we have a variety of exports and imports that help boost the flow of money in and out of the state. You may think of industries like agriculture and tourism, and while these are both big contributors, there is value in another industry that may be unexpected. Secondary education is one of the most valuable sources of Colorado's income. Let's learn more!
The Value of Universities in Colorado's Economy
Residents might not have a direct connection with any of Colorado’s universities, but they benefit from the economic boost that the schools bring regardless.
The main components of Colorado's economy
According to the state government of Colorado, ranching, farming and mining are the three most integral parts of the state's economic prosperity. Even outside of that, you may not know that the state is number one in private aerospace employment, which brings in a lot of high-income businesses and wealthy professionals. Here are some more examples of important industries found in the state that boost the economic variety:
- Advanced manufacturing.
- Bioscience.
- Creative industries.
- Defense and homeland security.
- Electronics.
With so many technical employers in the area, higher education has become more important than ever, training people to feed into these industries. That's where the value of university education comes into play in the state economy.
The impact of the University of Colorado
There are many top-tier universities within the borders, and the University of Colorado is a public school that has four campuses across the state. They have locations in Boulder, Denver, Colorado Springs and a specific medical campus in Aurora. The U.S. News & World Report's "best colleges" publication for 2023 reports that several CU Boulder undergraduate programs rank in the top 25 or better across the nation.
The university is a good place to get an education, but it also has a serious impact on the success of Colorado's economy. According to a study by the University of Colorado, the "University of Colorado campuses had an $8.7 billion economic footprint across the state during the 2021-2022 fiscal year, including $440 million generated by UCCS."
So it's safe to say that when higher education in the area is thriving, there are economic benefits around the corner. This amount is measured by the employee and student wages, including operating expenditures, construction and spending on research — not to mention the income generated from visitors to the campuses. The study reports that the economy is also boosted through "derived from innovation, tech transfer, skills and training, and alumni in the workforce."
There are many different components that go into how the economy function, especially locally. If you want to learn more about how you should react to changes in the local economy, reach out to Vectra Bank today.
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