The good and bad of Colorado’s economy: Tech, aerospace companies coming to state, other firms laying off workers

Economic news in Colorado has been a mixed bag recently: Inflation is impacting consumer spending over the holidays, recession fears are real and some prominent companies have laid off workers.

On the flip side, several companies are moving their headquarters to the state while others are expanding their operations in Colorado. The relocations could bring over 1,000 new jobs with them.

Let’s start with the positive economic news.

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Tech company Teamwork, headquartered in Cork, Ireland, held the grand opening of its new North American hub in Denver at 1550 Wewatta St. this month. With a labor force of more than 350 globally, the project management platform’s initial plans included hiring 20 employees by the year’s end in the Mile High City.

“We’re really excited to build our team in North America,” said Beau Brooks, vice president of worldwide sales. “I see Teamwork growing significantly over the next couple of years and it starts with this expansion into Denver.”

The company’s on track to reach $50 million in revenue by the end of 2023.

“In the past 12 months, we’ve seen Teamwork’s workforce grow by close to 35%, and we are looking forward to seeing this number increase even more with our expansion into Denver,” said Jeni Brown, chief people officer. “We’ve seen some of the biggest tech companies in the world open offices in Denver, and we’re thrilled to be one of them too.”

Another tech company, HNA Live, settled on Denver as its new headquarters. The data analytics company, which serves the manufacturing and real estate industries, plans to create more than 36 new jobs, with the average annual wage falling around $99,000.

HNA Live considered 10 cities before making its choice. The startup employs 13 U.S.-based employees, but none in Colorado, as of Dec. 5.

“Everything pointed to Denver,” said CEO Cooper Mojsiejenko. “The workforce is talented, the city’s central location makes it easy to do business across the country, and innovative tech and real estate ecosystems will help the heart of our nation solve their biggest challenges first.”

HNA Live received approval from the Colorado Economic Development Commission for up to $164,284 in performance-based job growth incentive tax credits over eight years.

Zivaro, an information technology company that serves government and national defense partners, is expanding in Colorado Springs. The move is part of an industry trend, as more than 250 technology companies are located throughout the city, with 50% of the country’s Space Force based in Colorado, according to the Colorado Office of Economic Development and International Trade.

“As the aerospace industry in Colorado continues to boom, we are thrilled cutting-edge companies like Zivaro have chosen to expand here, creating more than 300 new jobs,” said Gov. Jared Polis. “Colorado is a great place to live, work and do business which is evident as we continue to support business expansion in our state.”

Members of Zivaro’s leadership team have already come from Colorado Springs, and 132 of 175 employees are in the state, said CEO and co-founder Greg Byles. “In many ways, this expansion feels like a homecoming and there is no other place we would rather be as we expand.”

The company’s other options included Huntsville, Ala., and Omaha, Neb. It aims to create 304 new jobs, with an average annual wage of $165,076.

“Colorado has the second largest space economy in the U.S. and the state’s aerospace industry alone employs more than 240,000 Coloradans, which is more aerospace employees per capita than any other state,” said OEDIT Executive Director Patrick Meyers.

Zivaro counts as the first company to receive an award from the Colorado Springs Deal Closing Fund — “a public-private-partnership to incentivize the creation of new, high-paying jobs and capital investment through investment by new and expanding primary employers in Colorado Springs,” OEDIT reported.

The company is also up for up to $8.6 million in performance-based job growth incentive tax credits over eight years from the Colorado Economic Development Commission, along with $57,500 in a performance-based Strategic Fund LONE Worker incentive over five years.