Tracking the Performance of the Fort Collins Clusters

Tracking the Performance of the Fort Collins Clusters Martin Shields, Regional Economist Michael Marturana, Research Economist Colorado State University Winter 2011 Executive Summary This report uses data on employment, wages, establishment counts, location quotients, and patents to track five major economic clusters the City of Fort Collins has identified: Bioscience Clean Energy Technology o Hardware o Software Uniquely Fort Collins Water Despite a dismal national economic landscape, all 5 clusters posted job gains between the second quarters of 2007 and 2010, some highlights include: The Technology Cluster grew by 780 workers (13.1 percent) o The Software Cluster gained 520 jobs (30.9 percent) o The Hardware Cluster added 261 employees (6.1 percent) The Clean Energy Cluster grew by 597 employees (24.1 percent) The Water Cluster gained 184 jobs (15.1 percent) The Bioscience Cluster added 57 employees (2.8 percent) The Uniquely Fort Collins Cluster expanded by 26 jobs (2.5 percent) Every local cluster outperformed their respective national industries over the last 3 years With the exception of a 0.1 percent increase in the Software Cluster, average wages have declined in every cluster over the last year While the clusters showed overall growth between 2007-10, the national recession resulted in mixed performance between the second quarters of 2009 and 2010, with two clusters (Clean Energy and Uniquely Fort Collins) posting losses over this time. Still, the over all performance outpaced the nation, as every US counterpart to the local clusters showed job losses over this time frame. Average estimated wages varied greatly across the clusters in 2010. On the low end, earnings per worker the Uniquely Fort Collins Cluster averaged $32,908. Jobs in the Hardware Cluster were the highest paying, averaging $84,178. For comparison, Larimer County s 2010 estimated average earnings per worker was $38,584, a drop from $40,250 in 2009. During 2010, 225 patents were issued to cluster businesses. 1

The table below is a summary of clusters employment changes and unemployment rates for the county, state, and nation. It is important to note that total cluster jobs cannot be determined simply by adding the jobs from each cluster, as some individual businesses appear in more than one cluster. Fort Collins Cluster Performance Report Employment Summary 2007-2010 Change 2009-2010 Change 2007 2008 2009 2010 Level Percent National Percent Level Percent National Percent Employment Bioscience 2,017 2,141 2,037 2,073 57 2.8% -3.3% 36 1.8% -0.5% Clean Energy 2,481 2,979 3,133 3,078 597 24.1% -9.8% -55-1.8% -2.5% Technology 5,946 6,352 6,183 6,726 780 13.1% -5.5% 543 8.8% -7.2% Hardware 4,265 4,361 4,147 4,526 261 6.1% -2.7% 379 9.1% -0.4% Software 1,681 1,992 2,036 2,200 520 30.9% -3.0% 164 8.1% -0.8% Uniquely Fort Collins 1,020 1,083 1,091 1,046 26 2.5% -5.2% -46-4.2% -1.0% Water 1,222 1,365 1,374 1,406 184 15.1% -11.3% 31 2.3% -1.1% Annual Unemployment Rates Larimer County* 3.5% 4.2% 6.6% 6.8% 3.3% 94.3% 0.2% 3.0% Colorado 3.9% 4.9% 7.7% 8.1% 4.2% 107.7% 0.4% 5.2% United States 4.6% 5.8% 9.3% 9.6% 5.0% 108.7% 0.3% 3.2% Annual Employment Levels** Larimer County 136,300 137,700 133,400 132,500-3,800-2.8% -900-0.7% Colorado 2.3 mil 2.4 mil 2.2 mil 2.2 mil -127,000-5.4% - 40,000 1.8% United States 137 mil 136 mil 131 mil 130 mil -7.8 mil -5.7% - 969,00 0 7.4% Sources: CDLE QCEW, CSU, and BLS *Not Seasonally Adjusted ** CES Data Reported 2

I. Introduction Region s Economy Slow to Rebound from the Great Recession Despite the recession officially ending in summer 2009 Larimer County s economy continues to struggle. The county s estimated February job totals stood at 134,500, up 1,500 from a year earlier. Although the county has had job growth, the February unemployment rate stood at 8.3 percent, up 1.2 percentage points from 2 years earlier. Currently, 14,464 county residents are unemployed but looking for work, up more than 2,000 from 2 years earlier. Larimer County s Annual Unemployment Rate Continues to Creep Up, but remains less than State and Nation 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% Source: BLS LAUS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Larimer Weld CO US Stagnant household income continues to be a symptom of the downturn. According to the US Department of Housing and Urban Development, Larimer County s median family income stood at $74,900 in 2010. After adjusting for inflation, this was just 3.6 percent greater than it was in 2000. 3

Larimer County Inflation-adjusted Median Family Income Relatively Flat over the Decade, but Higher than State and US $80,000 $75,000 $70,000 $77,011 $75,549 $75,909 $76,606 $74,900 $73,697 $73,717 $72,230 $71,717 $69,896 $68,199 $65,000 $60,000 $55,000 $50,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 US CO Larimer Source: US Department of Housing and Urban Development Because wage income accounts for about 70 percent of all household income, stagnant incomes have important implications on the City of Fort Collins. This is because the city s most important revenues stream is the sales tax, which in turn depends on household spending. And while year-to-date city sales tax revenues through December 2010 were up $3.2 million (4.5 percent) from a year earlier, they remain $1.5 million (2.0 percent) below their 2008 year-to-date levels. 4

Year-over-Year Changes in December Year-to-Date Sales Tax Revenues for the City of Fort Collins 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% 2003 2004 2005 2006 2007 2008 2009 2010 Source: City of Fort Collins - Sales Tax Division The lingering effects of the recession have generated increased interest in strategic economic health initiatives in Fort Collins. As part of its planning efforts in this area, Fort Collins has identified and promoted 5 economic clusters that can help diversify the city s economic base. In this report we update recent trends in these clusters. The remaining sections of this report address each cluster individually. We provide cluster analysis and data looking at trends in 1) number of establishments and start-ups (or closures), 2) number of employees, 3) average wages paid, and 4) new patent data. Beyond providing a basic state of the cluster analysis we look at changes in the competitive position of these sectors relative to the nation. The overarching goal of our work is to help the City better understand the effectiveness and overall impact of its cluster initiatives. How this Report is Organized This report has two major sections: a brief overview of each cluster and Appendix A, which is a detailed report of each cluster. Each section follows the section number for the discussion of cluster: II. Bioscience III. Clean Energy IV. Technology o IV.A. Hardware o IV.B. Software V. Uniquely Fort Collins VI. Water We work with The City of Fort Collins and other collaborators to track new companies in the area and determine which firms to include in each cluster. The companies in these clusters are handpicked, based on their industry, with the exception of the Technology Cluster this is the summation of two smaller clusters: Hardware and Software. The firms in the Technology Cluster are tracked using their respective 4-digit NAICS North American Industry Classification System code (NAICS codes are discussed in Appendix B.I). 5

The same outline is followed for each cluster outline. First, we discuss cluster employment over the last 3 years, from 2007Q2 through 2010Q2; the second topic narrows cluster performance over to the last year (2009Q2-10Q2). We discuss employment and average estimated yearly wages in these sections. We also discuss local and national cluster employment trends ( national employment tracks the same NAICS industries as the clusters). The last point in each section talks about the number of patents issued in the clusters. We use patents as a proxy for cluster innovation, a key point when using the cluster method to track economic health. For greater detail on each cluster, see Appendix A. The Fast Facts tables drilldown to 3 or 4 digit NAICS employment, which make up the clusters and provides level and percentage employment changes at 1 and 3 year intervals. If the data is available, we report the Bureau of Labor Statistics (BLS) location quotients (LQs) for each industry from 2006 and 2009 these are used to determine comparative advantages at a regional level, see Appendix B.II for LQ calculations. Appendix A also includes charts on each cluster s historical employment as well as a 3 or 4 digit NAICS breakdown of current employment, compared to Larimer County, and estimated average wages paid in 2009Q2 and 2010Q2. Data Over a year ago, our discussions with the City led to an overhaul of the Fort Collins Cluster Reports and some changes to the definitions of clusters. The new definitions have been applied to previous years data such that our current reports are uniform; however, our new reports diverge from those performed in the initial cluster analysis performed by Development Research Partners in 2006. An outcome of the cluster restructuring is that some firms can be represented in more than one cluster. It is key to cluster based economic health methods that each cluster spans multiple industries. Because of this intentional overlap, it is important not to sum cluster employment as some companies would be counted twice. Employment and wage information for Larimer and Weld Counties is derived from Colorado Department of Labor and Employment s (CDLE) publication of Quarterly Census of Employment and Wages (QCEW). We use averaged second quarter data. This database captures detailed information on every firm that pays into unemployment in the State of Colorado. To remove cyclicality and utilize the latest data available, we report average employment from 2007Q2-10Q2. The information used for national comparison comes from the Bureau of Labor Statistics (BLS), which compiles a nationwide QCEW dataset. The location quotients reported the Fast Facts tables also come directly from the BLS we do not actually calculate each location quotient, just report them. See Appendix B.II for more information regarding the calculation of location quotients. Innovation and Intellectual Property Patents provide incentives for research and development, which advances technology. Innovation and technology are key drivers for the City s targeted clusters (excluding the Uniquely Fort Collins Cluster). Without legal protection of intellectual property, provided by patents, technology advances would be slower studies have revealed that cluster performance is correlated with the number of patents issued in a region. 6

Per the United States Patent and Trademark Office, 713 patents were issued in the Fort Collins Loveland area during 2010. One third of these patents (32.0 percent) were issued to cluster members. Various companies in the Technology Cluster were issued a total of 174 patents. Members of the Bioscience Cluster received a total of 32 patents. Clean Energy firms received a total of 22 patents, while 15 patents were issued in the Water Cluster. One shortcoming of the analysis here is that patents are often assigned in places other than where they were developed. For example, an inventor working in Fort Collins might develop a patent issued to Hewlett Packard (called the assignee ), but the patent itself may be registered in Houston, which is the home of the assignee. 7

II. Bioscience Cluster The number of firms tracked in the Bioscience Cluster has remained relatively constant over the last 3 years between 2007Q2 and 2010Q2, the cluster has grown by 7 firms to a total of 54 businesses. Employment in the cluster grew by 57 workers (2.8 percent) to 2,073 employees from 2007Q2-10Q2. This 2.8 percent employment growth was better than nationwide firms in similar industries, which lost 3.3 percent of their employment base over this time. In the past year, from 2009Q2 to 2010Q2, the Bioscience Cluster grew by 36 jobs (1.8 percent). Fort Collins Bioscience Cluster outperformed similar national industries, as employment fell by 0.5 percent in these industries. Over the last year, estimated average earnings per worker in the cluster fell by $6,954 (10.2 percent) to $61,337. The Bioscience Cluster is expected to continue to expand as Tolmar announced the leasing of an additional 21,000 square-foot facility for additional research and development operations, according to the Northern Colorado Business Report. Additionally, the Qualifying Therapeutic Discovery Project program, created under the Patient Protection and Affordable Care Act of 2010, has directed nearly $250,000 in research funding to Chata Biosystems, St. Renatus LLC, Inviragen Inc and Ventria Bioscience. In 2010, there were a total of 32 patents issued to Bioscience firms. These firms, and number of patents registered are: WaterPik: 8 Hach Chemical: 7 Heska: 5 XY: 5 Value Plastics: 3 Centers for Disease Control: 2 Livengood Engineering: 2 Highlights From 2007Q2 through 2010Q2, the cluster grew by 57 employees (2.8 percent) o In contrast, national employment in the same industries contracted by 3.3 percent over these years The cluster added 36 jobs, or 1.8 percent, between 2009Q2 and 2010Q2 o National employment fell by 0.5 percent during this time Cluster estimated earnings per worker o 2009: $68,291 o 2010: $61,337 Chart II reports average employment from 2007Q2 to 2010Q2 Table II lists the 5 largest firms the Bioscience Cluster as of 2010Q2 8

Chart II: Average Bioscience Cluster Employment from 2007Q2 to 2010Q2 Bioscience Cluster Employment - Q2 Averages 2,500 2,000 2,017 2,141 2,037 2,073 1,500 1,000 500 0 2007 2008 2009 2010 Table II: Five Largest Employers in the Bioscience Cluster Company Hach Chemial Company Inc Tolmar Inc Water Pik Inc Heska Corporation Centers for Disease Control Top 5 Total Employment 1,438 Percent of Cluster Employment 69.4% 9

III. Clean Energy Between 2007Q2 and 2010Q2, the Clean Energy Cluster which spans Larimer and Weld Counties experienced an employment growth of 597 employees (24.1 percent). During this time, the cluster has expanded by nearly 30 percent to a total of 29 companies. This large employment growth meant that the Clean Energy Cluster dramatically outperformed the nation, where the same industries lost 9.8 percent of employment. The Clean Energy Cluster is one of two local clusters to shed jobs in the last year. Fifty five jobs (-1.8 percent) were lost from 2009Q2 to 2010Q2. These local losses were better than the national industries, which lost 2.5 percent of jobs. For the second year in a row, average estimated wages in the cluster fell. Estimated average 2010 wages were $69,005, 8.5 percent lower than 2009 levels. Promising growth, UQM Technologies Inc has announced a contract in which they will manufacture electric motors and controllers for Audi s new A1 electric vehicle. Furthermore, they will also build a small batch of motors for a Saab 9-3 test fleet, per Boulder Business Report. Companies in the Clean Energy Cluster were issued 22 patents during 2010: Woodward Governor: 8 Advanced Energy: 7 ICE Energy: 5 AMPT Solar: 2 Highlights Clean Energy Cluster employment grew by 597 jobs (24.1 percent) from 2007Q2-10Q2 o During these 3 years, national employment in the same industries fell by 9.8 percent In the past year, between 2009Q2 and 2010Q2, the cluster shed 55 employees (-1.8 percent) o The industries on a national level experienced a 2.5 percent drop in employment over this year Estimated average estimated wages paid o 2009: $75,334 o 2010: $69,005 The cluster s employment, from 2007Q2-10Q2, is reported in Chart III Table III lists the largest 5 firms in the Clean Energy Cluster 10

Chart III: Average Clean Energy Cluster Employment from 2007Q2 to 2010Q2 Clean Energy Cluster Second Quarter Average Employment 3,500 3,000 2,500 2,481 2,979 3,133 3,078 2,000 1,500 1,000 500 0 2007 2008 2009 2010 Table III: Top Five Largest Companies in the Clean Energy Cluster Company Woodward Governor Company Vestas Blades America Inc Advanced Energy Industries Inc General Electric International Inc Abound Solar Inc Top 5 Total Employment 2,394 Percent of Cluster Employment 77.8% 11

IV. Technology Cluster As discussed earlier, the Technology Cluster is comprised of two smaller sub-clusters: Hardware and Software. Of the 2 components, the Hardware Cluster accounts for roughly two-thirds of the Technology Cluster. Between 2007Q2 and 2010Q2, the Technology Cluster gained 780 jobs (13.1 percent) identical industries on a nationwide level contracted by only 5.5 percent during this time. Over these years, the Technology Cluster grew by roughly 30 percent to 400 companies. From 2009Q2 to 2010Q2, the Technology Cluster added 543 jobs (8.8 percent). Like previous, the local cluster drastically outperformed the similar national industries, which lost 7.2 percent of employment. In the last year, the average yearly earnings per worker dramatically decreased by 7.3 percent from $96,335 to $89,340. Companies in the Technology Cluster were issued 174 patents in 2010, the majority of which were Hardware companies: Hewlett Packard: 121 Avago Technologies US: 20 LSI Industries: 17 Agilent: 5 Nvidia: 5 Intel Corporation: 4 National Semiconductor Corporation: 2 Highlights The cluster added 780 jobs (13.1 percent) between 2007Q2 and 2010Q2 o National employment in the same industries contracted by 5.5 percent over these 3 years From 2009Q2-2010Q2, the cluster expanded by 543 jobs (8.8 percent) o Over this year, nationwide employment fell by 7.2 percent Technology Cluster average salary o 2009: $96,335 o 2010: $89,340 Average employment from 2007Q2 through 2010Q2 is reported in Chart IV The 5 largest firms in the Technology Cluster are reported in Table IV 12

Chart IV: Average Technology Cluster Employment from 2007Q2-10Q2 6,800 6,600 Technology Cluster Average Employment - Q2 6,726 6,400 6,200 6,000 5,800 5,600 5,946 6,352 6,183 5,400 2007 2008 2009 2010 Table IV: Five Largest Firms in the Technology Cluster Company Avago Technologies US Inc Advanced Energy Industries Inc Intel Corporation Aglient Technologies Hewlett Packard Company Top 5 Total Employment 2,084 Percent of Cluster Employment 30.0% IV.A Hardware Cluster The Hardware Cluster represents the majority of the Technology Cluster, and gained 261 jobs (6.1 percent) from 2007Q2-10Q2 (the Technology Cluster added 780 jobs over this time). During these 3 years, nationwide employment in the same industries contracted by 2.7 percent. The number of firms in the Hardware Cluster has actually increased over this time by almost one third to 343 companies. From 2009Q2 to 2010Q2, Hardware Cluster employment fell by 379 workers (9.1 percent). The same national industries lost 0.4 percent of employment over this year. During this time, average earnings per worker in the cluster fell by 11 percent to $95,214. 13

In 2010, 169 patents were issued to Hardware Cluster firms Hewlett Packard: 121 Avago Technologies US: 20 LSI Industries: 17 Agilent: 5 Intel Corporation: 4 National Semiconductor Corporation: 2 Highlights Between 2007Q2 and 2010Q2, the Hardware Cluster added 261 jobs (6.1 percent) o National employment in the same industries fell by 2.7 percent over this time From 2009Q2 to 2010Q2, employment in the Hardware Cluster increased by 379 jobs (9.1 percent) o Employment in identical industries fell by 0.4 percent nationwide Hardware Cluster average salary o 2009: $106,582 o 2010: $95,214 Chart IV.A reports average employment for 2007Q2-10Q2 Table IV.A shows the five largest firms in the Hardware Cluster Chart IV.A: Average Employment from 2007Q2 through 2010Q2 for the Hardware Cluster 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Hardware Cluster Employment 4,526 4,265 4,361 4,147 2007 2008 2009 2010 14

Table IV.A: Top Five Largest Employers in the Hardware Cluster Company Avago Technologies US Inc Advanced Energy Industries Inc Intel Corporation Aglient Technologies Hewlett Packard Company Top 5 Total Employment 2,084 Percent of Cluster Employment 46.0% IV.B Software Cluster The Software Cluster accounts for approximately one-third of the Technology Cluster and, in the last 3 years, it added 520 employees (30.9 percent). In comparison, similar national industries contracted by 3.0 percent. Like the Hardware Cluster, the number of firms in the cluster has grown to 357 companies over these 3 years. The Software Cluster experienced an employment gain of 164 jobs (8.1 percent) between 2009Q2 and 2010Q2. In comparison, employment in the same industries nationwide contracted by 0.8 percent over this same time. Despite the employment expansions, the average earnings per worker in the cluster increased by $646 (0.1 percent) to $75,979. Five patents were registered to Software Cluster firms during 2009 Nvidia: 5 Highlights The Software Cluster added 520 jobs (30.9 percent) between 2007Q2 and 2010Q2 o National employment fell by 3.0 percent over this time From 2009Q2 and 2010Q2, the Software Cluster added 164 employees (8.1 percent) o Nationwide employment in identical industries contracted by 0.8 percent over this year Software Cluster average salary o 2009: $75,333 o 2010: $75,979 Chart IV.B reports average employment from 2007Q2 to 2010Q2 Table IV.B shows the five largest firms in the Software Cluster 15

Chart IV.B: Average Employment for 2007Q2-10Q2 2,500 2,000 Software Cluster Second Quarter Average Employment 2,200 1,992 2,036 1,681 1,500 1,000 500 0 2007 2008 2009 2010 Table IV.B: Five Largest Employers in the Software Cluster Company Techni Graphic Systems Inc Advanced Micro Devices Inc Telvent Miner & Miner ESG Achievement Palladius Inc Top 5 Total Employment 696 Percent of Cluster 31.6% Employment 16

V. Uniquely Fort Collins Cluster The Uniquely Fort Collins Cluster (UFCC) is the most specific cluster in this report because it only tracks companies that are physically located and headquartered in the City of Fort Collins. The firms in this cluster are based on the NAICS used by Colorado Creative Industries report on Colorado s Creative Economy 1. From 2007Q2 to 2010Q2, the UFCC expanded by 26 jobs (2.5 percent). Compared to the nation, the same industries contracted by 5.2 percent, while the number of establishments in the cluster increased by 8 firms (10.0 percent) to 81 companies over this time. The Uniquely Fort Collins Cluster contracted by 46 workers (-4.2 percent) from 2009Q2-10Q2. Identical industries on a national level experienced an employment contraction of 1.0 percent during this time. This is the only time when the national industries performed better than a local cluster. Also over this year, the UFCC average estimated earnings per worker decreased by 7.0 percent from $35,400 to $32,908. No patents were issued to Uniquely Fort Collins firms in 2010. Highlights Between 2007Q2 and 2010Q2, the Uniquely Fort Collins Cluster grew by 26 jobs (2.5 percent) o National employment increased by 5.2 percent over this time From 2009Q2-10Q2, the UFCC shed 46 employees (-4.2 percent) o National employment in the same industries fell by 1.0 percent during these three years UFCC average estimated earnings per worker o 2009: $35,400 o 2010: $32,908 The Uniquely Fort Collins Cluster s average employment from 2007Q2-10Q2 is reported in Chart V Table V shows the five largest firms in the UFCC 1 Colorado Creative Economy study: http://www.coloarts.state.co.us/programs/economic/co_creativeconomy/index.htm 17

Chart V: 2007Q2-01Q2 Average Employment for the Uniquely Fort Collins Cluster Uniquely Fort Collins Cluster Q2 Average Employment 1,200 1,000 1,020 1,083 1,091 1,046 800 600 400 200 0 2007 2008 2009 2010 Table V: The Uniquely Fort Collins Cluster s Five Biggest Employers Company New Belgium Brewing Co Triple Crown Softball Odell Brewing Company Inc Fort Collins Symphony Association KT Productions Inc Top 5 Total Employment 507 Percent of Cluster Employment 48.5% 18

VI. Water Cluster The Water Cluster is the newest addition to the Fort Collins Cluster Initiative and consists of 36 firms across 11 industries. Of the current companies, 9 firms did not exist in Larimer County as of 2007Q2 Rubicon Systems America is one of these firms. The spirit of the cluster is to capture companies that work in the water industry be it construction, engineering, technology, or instrumentation. 2 Between 2007Q2 and 2010Q2, employment in the cluster grew by 184 jobs (15.1 percent). This local job growth was substantially greater than employment changes in the same nationwide industries, which contracted by 11.3 percent. Rubicon Systems opened in 2008 and contributes to much of this growth. The Water Cluster expanded by 31 jobs (2.3 percent) from 2009Q2 through 2010Q2. Here too, the Cluster outperformed the same national industries, which lost 1.1 percent of its relative employment base. Over this year, the average estimated salary fell from 2009 s level of $64,433 by 4.9 percent to $61,255. During 2010, 2 firms were issued a total of 15 patents: Woodward Governor: 8 Hach Chemical: 7 Highlights Between 2007Q2 and 2010Q2, cluster employment expanded by 184 jobs (15.1 percent) o National employment in the same industries contracted by 11.3 percent over this time Cluster employment grew by 31 jobs (2.3 percent) between 2009Q2 and 2010Q2 o Over this year, nationwide employment in the same industries fell by 1.1 percent Water Cluster estimated average annual wages paid o 2009: $64,433 o 2010: $61,255 Average employment from 2007Q2 through 2010Q2 is displayed in Chart VI The five largest companies in the cluster are reported in Table VI 2 Woodard Governor and AECOM both have divisions related to water, but they are only a fraction of their company s total employment. We do not include employment for either firm because there is no consistent way to estimate what percent of total employment is related to water. If we were to include these two companies, cluster employment would increase by over 1,000 jobs. 19

Chart VI: Average Employment: 2007Q2-10Q2 Water Cluster Employment - Q2 Averages 1,600 1,400 1,200 1,000 800 600 400 200 1,222 1,365 1,374 1,406 0 2007 2008 2009 2010 Source: CDLE QCEW and CSU Table VI: Top five largest firms in the Water Cluster Company Hach Chemical Company Inc Telvent Miner & Miner Inc Advance Tank and Construction Co In-Situ Inc Riverside Technology Inc Top 5 Total Employment 1,209 Percent of Cluster Employment 86.0% 20

Appendix A: Detailed Cluster Information A.I Introduction to Appendix A As we mentioned in the Introduction (section I), the goal of the previous sections is to give a brief overview for each cluster. Appendix A provides a greater level of insight into each cluster s performance by disaggregating the clusters to their 3 or 4-digit NAICS. It is important to note that we did not calculate the location quotients below; instead, they come directly from the BLS. As a result the location quotients refer to related industries, rather than the specific clusters of interest. This is a necessary compromise due to the fact that there are no nationally accepted definitions of these clusters. For example, 2010Q2 employment in the county s Machinery (NAICS 333) totaled 1,973 employees, resulting in an industry location quotient of 2.11, yet only 11 of these workers are employed in the Bioscience firms within that broader industry. In this case the industry LQ greatly overstates the cluster s actual LQ. Each cluster analysis below follows the format: Bullet points noting changes over the last 3 years, 1 year, and a brief discussion on the location quotients from 2007 and 2010 Table A is Fast Facts and details each cluster s average employment from 2007Q2 through 2010Q2, 3 and 1 year employment changes, and location quotients (LQs). Chart A graphs the clusters average employment from 2007Q2-10Q2 over 3 or 4-digit NAICS Chart B illustrates every cluster s 3 or 4-digit NAICS employment breakdown, compared to that of Larimer County, for 2010Q2 Chart C displays the total wages paid in each cluster, over the NAICS breakdown, from 2009Q2 to 2010Q2 A.II Bioscience Cluster Cluster employment expanded by 57 jobs (2.8 percent) from 2007Q2 to 2010Q2 (Table A.II.A) o Chemical (NAICS 325) grew by 77 jobs (31.8 percent) during this time o The largest contraction occurred in the industry of Electrical Equipment, Appliance, and Component (NAICS 335), which lost 81 jobs (-37.7 percent) o Computer and Electronic Product (NAICS 334) is the largest industry in the cluster and expanded by 73 jobs (9.3 percent) over these 3 years Between 2009Q2 and 2010Q2, the Bioscience Cluster lost 36 employees (1.8 percent; Table A.II.A) o The Chemical industry experienced the greatest growth of 69 jobs (27.3 percent) o Miscellaneous (NAICS 339) was the hardest hit industry, contracting by 42 jobs (-30.4 percent) The location quotients for the industries in the Bioscience, on the whole, do not indicate a large concentration of employment. The largest industry in the cluster, Computer and Electronic Product, had the largest share of employment in 2006 and 2009, with LQs of 3.53 and 3.64 respectively. The industry with the second greatest relative employment 21

concentrations is Machinery (NAICS 333), with a 2009 location quotient of 2.11, but 2010 count of 11 jobs. Table A.II: Larimer County s Bioscience Cluster Fast Facts Larimer County Bioscience Cluster Fast Facts Employment Location 2007-2010 2009-2010 Quotients NAICS Industry 2007 2008 2009 2010 Level Percent Level Percent Change Change Change Change 2006 2009 111 Crop Production 10 10 14 15 5 46.7% 1 4.8% 0.68 0.64 112 Animal Production 11 11 11 10-1 -6.2% -1-11.8% 1.09 1.08 115 Support Activities for Agriculture and 2 2 2 2 0 0.0% 0 0.0% ND ND Forestry 311 Food 8 9 9 1 0.21 0.22 325 Chemical 243 267 252 320 77 31.8% 69 27.3% 0.27 0.51 326 Plastics and Rubber Products 124 135 116 121-2 -1.9% 5 4.3% 0.49 0.67 333 Machinery 11 10 9 11 0 0.0% 2 26.9% 1.79 2.11 334 Computer and Electronic Product 782 819 816 855 73 9.3% 39 4.8% 3.53 3.64 335 Electrical Equipment, Appliance, and Component 214 140 127 133-81 -37.7% 6 4.7% 1.17 0.80 339 Miscellaneous 42 167 138 96 55 131.2% -42-30.4% 1.09 0.81 423 Merchant Wholesalers, Durable Goods 63 60 58 52-11 -18.0% -6-10.4% 0.57 0.55 511 Publishing Industries (except Internet) 13 11 6 3-10 -76.3% -3-50.0% 0.67 2.00 541 Professional, Scientific, and Technical Services 264 254 225 186-78 -29.6% -39-17.5% 1.40 1.21 551 Management of Companies and 146 151 140 142-4 -3.0% 2 1.2% 0.34 0.27 Enterprises 621 Ambulatory Health Care Services 10 13 11 10 0 0.0% -1-11.8% 1.03 1.06 923 Administration of Human Resource 82 92 103 108 25 30.8% 4 4.2% ND 0.31 Programs TOTAL 2,017 2,141 2,037 2,073 57 2.8% 36 1.8% ND: Not Disclosable Sources: CDLE QCEW, CSU, and BLS 22

Chart A.II.1: Average Employment for the Bioscience Cluster from 2007Q2-10Q2 (Table A.II.A) Bioscicence Cluster Employment - Q2 Averages Administration of Human Resource Programs Ambulatory Health Care Services Management of Companies and Enterprises Professional, Scientific, and Technical Services Publishing Industries (except Internet) Merchant Wholesalers, Durable Goods Miscellaneous Electrical Equipment, Appliance, and Component Computer and Electronic Product Machinery Plastics and Rubber Products Chemical Food Support Activities for Agriculture and Forestry Animal Production Crop Production 0 100 200 300 400 500 600 700 800 900 2007 2008 2009 2010 Chart A.II.2: 2010Q2 Average Employment for the Bioscience Cluster and Larimer County 23

2010Q2 Employment - Bioscience Cluster vs Larimer County Administration of Human Resource Programs 108 174 Ambulatory Health Care Services Management of Companies and Enterprises 10 142 504 6,271 Professional, Scientific, and Technical Services 186 Publishing Industries (except Internet) 3 1,402 8,897 Merchant Wholesalers, Durable Goods Miscellaneous 52 96 360 1,420 Electrical Equipment, Appliance, and Component Computer and Electronic Product 133 275 855 3,927 Machinery 11 Plastics and Rubber Products 121 481 1,973 Chemical 320 424 Food 9 298 Support Activities for Agriculture and Forestry 2 58 Animal Production 10 231 Crop Production 15 374 Bioscience Cluster Larimer County 24

Chart A.II.3: Wages Paid in the Bioscience Cluster for 2009Q2 & 10Q2 Bioscience Cluster Wages Paid - Second Quarter Crop Production Animal Production Support Activities for Agriculture and Forestry Food $62,485 $60,471 $86,892 $90,230 $20,384 $20,400 $42,529 $36,733 Chemical Plastics and Rubber Products Machinery Computer and Electronic Product Electrical Equipment, Appliance, and Component Miscellaneous Merchant Wholesalers, Durable Goods Publishing Industries (except Internet) Professional, Scientific, and Technical Services Management of Companies and Enterprises Ambulatory Health Care Services Administration of Human Resource Programs $3,784,253 $5,182,189 $1,555,216 $1,494,011 $85,684 $145,251 $2,190,181 $2,366,147 $1,965,232 $1,584,705 $680,513 $753,747 $135,618 $55,073 $3,136,348 $2,355,797 $2,523,124 $2,303,547 $58,530 $51,892 $2,090,041 $2,225,128 $10,575,983 $13,008,006 2009 2010 25

A.III. Clean Energy Cluster As per Table A.III, cluster employment expanded by 597 jobs (24.1 percent) from 2007Q2 through 2010Q2 o The largest growth industry was Machinery (NAICS 333) this industry gained 538 jobs (44.0 percent) in these 3 years o The second largest industry in the cluster is Computer and Electronic Product (NAICS 334). Over 3 years, this industry grew by 66 jobs (10.6 percent) o During this time the largest job loss occurred in Professional, Scientific, and Technical Services (NAICS 541), which lost 17 jobs (5.5 percent) Between 2009Q2 and 2010Q2, the Clean Energy Cluster shed 55 jobs (-1.8 percent; Table A.III) o Only 2 industries experienced employment growth over this time Computer and Electronic Product added 62 jobs (9.9 percent) Electrical Equipment, Appliance, and Component (NAICS 335) grew by 6 jobs (8.7 percent) o The greatest employment contraction occurred in the largest industry in the cluster: Machinery, which lost 67 employees (-3.7 percent) Analyzing the LQs for the industries in the Clean Energy Cluster reveals that, for the larger sectors in the cluster, Larimer County has an employment base that is relatively larger than the US. The three largest industries in the cluster their respective location quotients are: o Computer and Electronic Product LQ: 3.64 o Machinery LQ: 2.11 o Professional, Scientific, and Technical Services LQ: 1.21 26

Table A.III: Clean Energy Cluster Fast Facts Larimer County Clean Energy Cluster Fast Facts Employment Location 2007-2010 2009-2010 Quotients NAICS Industry 2007 2008 2009 2010 Level Percent Level Percent Change Change Change Change 2006 2009 221 Utilities 207 221 221 221 14 6.9% 0 0.0% 0.47 0.45 238 Specialty Trade Contractors 8 6 5 5-3 -34.8% 0 0.0% 1.66 1.61 325 Chemical 36 33 34 33-3 -9.3% -2-4.9% 0.27 0.51 333 Machinery 1,223 1,648 1,828 1,761 538 44.0% -67-3.7% 1.79 2.11 334 Computer and Electronic Product 622 646 626 688 66 10.6% 62 9.9% 3.53 3.64 335 Electrical Equipment, Appliance, and Component 63 65 65 71 8 12.2% 6 8.7% 1.17 0.80 454 Nonstore Retailers 9 6 6-9 -100.0% -6-100.0% 0.85 0.92 541 Professional, Scientific, and 308 344 338 291-17 -5.5% -47-13.9% 1.40 1.21 Technical Services 611 Educational Services 6 10 10 9 3 55.6% -1-6.7% 0.49 0.50 TOTAL 2,481 2,979 3,133 3,078 597 24.1% -55-1.8% Sources: CDLE QCEW, CSU, and BLS 27

Chart A.III.1: Clean Energy Cluster Average Employment 2007Q2-10Q2 Clean Energy Cluser Q2 Average Employment Educational Services Professional, Scientific, and Technical Services Nonstore Retailers Electrical Equipment, Appliance, and Component Computer and Electronic Product Machinery Chemical Specialty Trade Contractors Utilities 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2007 2008 2009 2010 28

Chart A.III.2: 2010Q2 Clean Energy Cluster Employment Compared to Larimer County 2010Q2 Employment - Clean Energy Cluster vs Larimer County Educational Services 9 15,618 Professional, Scientific, and Technical Services Nonstore Retailers 0 291 387 8,897 Electrical Equipment, Appliance, and Component 71 275 Computer and Electronic Product Machinery 688 1,761 1,973 3,927 Chemical 33 424 Specialty Trade Contractors 5 5,170 Utilities 221 719 Clean Energy Larimer County 29

Chart A.III.3: 2009Q2 and 2010Q2 Total Wages Paid in the Clean Energy Cluster Clean Energy Cluster Wages Paid - Q2 Utilities $4,870,643 $5,223,265 Specialty Trade Contractors Chemical $53,648 $48,842 $452,055 $480,348 Machinery $28,990,266 $26,229,701 Computer and Electronic Product $13,119,346 $14,043,356 Electrical Equipment, Appliance, and Component Nonstore Retailers Professional, Scientific, and Technical Services Educational Services $1,236,254 $1,386,188 $38,448 $0 $6,447,848 $5,573,825 $126,748 $114,204 2009 2010 30

A.IV. Technology (Hardware + Software) Cluster Table A.IV shows that cluster employment increased by 780 jobs (13.1 percent) from 2007Q2 through 2010Q2 o The greatest growth occurred in the industry of Computer Systems Design and Related Services (NAICS 5415), which expanded by 1,067 jobs (45.9 percent) over this time o Other notable growth occurred in the Computer and Peripheral Equipment (NAICS 3341) sector, which gained 101 jobs (9.8 percent) o Navigational, Measuring, Electromedical, and Control Instruments (NAICS 3345) was the hardest hit industry and lost 317 positions (-31.4 percent) From 2009Q2 to 2010Q2, the Technology Cluster added 543 jobs (8.8 percent), as shown in Table A.IV o Here too, Computer Systems Design and Related Services added the most jobs, expanding by 740 positions (27.9 percent) over this time o The greatest losses occurred in Navigational, Measuring, Electromedical, and Control Instruments, which lost 112 employees (-17.6 percent) o Data Processing, Hosting, and Related Services (NAICS 5182) contracted by 69 jobs (- 22.0 percent) The location quotients for the Technology Cluster indicate that, on average, Larimer County has a relatively higher concentration of employment in these industries, compared to the nation. The LQs for firms in the Hardware Cluster indicate a relatively greater concentration of computer hardware firms in Larimer County (compared to national employment for those industries). Industries in the Software Cluster are closer to national ratios. 31

Table A.IV: Technology Cluster Fast Facts Larimer County Technology Cluster Fast Facts Employment Location 2007-2010 2009-2010 Quotients NAICS Industry 2007 2008 2009 2010 Level Percent Level Percent Change Change Change Change 2006 2009 Computer and Peripheral 3341 Equipment 1,025 1,070 1,113 1,126 101 9.8% 13 1.2% ND ND 3344 Semiconductor and Other Electronic Component 1,140 1,146 992 1,044-95 -8.4% 52 5.2% 2.48 2.83 3345 Navigational, Measuring, Electromedical, and Control Instruments 1,008 912 803 691-317 -31.4% -112-13.9% 5.24 4.48 5112 Software Publishers 282 299 254 225-57 -20.1% -29-11.4% 1.21 1.04 5182 Data Processing, Hosting, and Related Services 163 234 314 245 82 50.6% -69-22.0% 0.61 1.41 5413 Architectural, Engineering, and Related 1 54 52-1 -100.0% -52-100.0% 1.79 1.73 Services 5415 Computer Systems Design and Related 2,328 2,636 2,655 3,395 1067 45.9% 740 27.9% 0.99 1.04 Services TOTAL 5,946 6,352 6,183 6,726 780 13.1% 543 8.8% ND: Not Disclosable Sources: CDLE QCEW, CSU, and BLS 32

Chart A.IV.1: Average Employment in the Technology Cluster from 2007Q2 through 2010Q2 Technology Cluster Employment Computer Systems Design and Related Services Architectural, Engineering, and Related Services Data Processing, Hosting, and Related Services Software Publishers Navigational, Measuring, Electromedical, and Control Instruments Semiconductor and Other Electronic Component Computer and Peripheral Equipment - 500 1,000 1,500 2,000 2,500 3,000 2007 2008 2009 2010 Chart A.IV.2: Technology Custer vs Larimer County Employment 2010Q2 Technology vs Larimer County Employment - 2010Q2 Computer Systems Design and Related Services* 1730 1,730 Data Processing, Hosting, and Related Services Software Publishers 364 245 225 225 Navigational, Measuring, Electromedical, and Control Instruments 691 1,722 Semiconductor and Other Electronic Component Computer and Peripheral Equipment 1,044 1,044 1,126 1,126 Technology Cluster Larimer County *Businesses can be listed in multiple clusters 33

Chart A.IV.3: Total Wages Paid in the Technology Cluster in 2009Q2 and 2010Q2 Second Quarter Technology Cluster Wages Paid Computer Systems Design and Related Services 33,027,661 $44,154,977 Architectural, Engineering, and Related Services $753,516 Data Processing, Hosting, and Related Services Software Publishers $3,725,991 3,613,075 $5,487,409 4,862,132 Navigational, Measuring, Electromedical, and Control Instruments Semiconductor and Other Electronic Component Computer and Peripheral Equipment $23,417,368 26,253,363 $21,065,296 21,223,020 $30,212,661 37,355,700 2009 2010 A.IV.1. Hardware Cluster As per Table A.IV.1, employment in the Hardware Cluster grew by 261 jobs (6.1 percent) from 2007Q2 to 2010Q2 o Two of the 4 industries in the cluster added jobs Computer Systems Design and Related Services (NAICS 5415) added 573 positions (52.5 percent) Computer and Peripheral Equipment (NAICS 3341) grew by 101 jobs (9.8 percent) o The other 2 industries in the cluster shed jobs Navigational, Measuring, Electromedical, and Control Instruments (NAICS 3345) lost 317 employees (-31.4 percent) Semiconductor and Other Electronic Component (NAICS 3344) contracted by 95 jobs (-8.4 percent) In the last year (from 2009Q2 through 2010Q2), the Hardware Cluster added 379 jobs (9.1 percent), per Table A.IV.1 o The greatest job growth occurred in Computer Systems Design and Related Services, which added 426 jobs (34.4 percent) o The only industry that lost jobs was Navigational, Measuring, Electromedical, and Control Instruments, which contracted by 112 positions (13.9 percent) 34

Navigational, Measuring, Electromedical, and Control Instruments and Semiconductor and Other Electronic Component are the two industries in the Hardware Cluster with the greatest relative employment. When compared to these industries nationwide, these industries have location quotients of 4.48 and 2.83, respectively. With a LQ of 1.04, Larimer County s employment share for Computer Systems Design and Related Services is essentially the same as the nation. Table A.IV.1: Hardware Cluster Fast Facts Larimer County Hardware Cluster Fast Facts Employment Location 2007-2010 2009-2010 Quotients NAICS Industry 2007 2008 2009 2010 Level Percent Level Percent Change Change Change Change 2006 2009 Computer and 3341 Peripheral Equipment 1,025 1,070 1,113 1,126 101 9.8% 13 1.2% ND ND 3344 Semiconductor and Other Electronic Component 1,140 1,146 992 1,044-95 -8.4% 52 5.2% 2.48 2.83 3345 Navigational, Measuring, Electromedical, and 1,008 912 803 691-317 -31.4% -112-13.9% 5.24 4.48 Control Instruments 5415 Computer Systems Design and Related 1,092 1,232 1,239 1,665 573 52.5% 426 34.4% 0.99 1.04 Services TOTAL 4,265 4,361 4,147 4,526 261 6.1% 379 9.1% ND: Not Disclosable Sources: CDLE QCEW, CSU, and BLS Chart A.IV.1.a: Hardware Cluster Historical Employment from 2007Q2-10Q2 35

Hardware Q2 Employment Averages Computer Systems Design and Related Services Navigational, Measuring, Electromedical, and Control Instruments Semiconductor and Other Electronic Component Computer and Peripheral Equipment - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2007 2008 2009 2010 Chart A.IV.1.b: Hardware Cluster Employment Compared to Larimer County 2010Q2 Hardware vs Larimer County 2010Q2 Employment Computer Systems Design and Related Services 1,665 1,730 Navigational, Measuring, Electromedical, and Control Instruments 691 1,722 Semiconductor and Other Electronic Component 1,044 1,044 Computer and Peripheral Equipment 1,126 1,126 Hardware Cluster Larimer County Chart A.IV.1.c: Hardware Cluster Total Wages Paid for 2009Q2 and 2010Q2 36

Hardware Cluster Q2 Wages Paid $43,976,659 Computer Systems Design and Related Services $31,831,772 Navigational, Measuring, Electromedical, and Control Instruments $507,492 $26,253,363 Semiconductor and Other Electronic Component $20,655,301 $21,223,020 Computer and Peripheral Equipment $30,115,164 $37,355,700 2009 2010 A.IV.2. Software Cluster As indicated in Table A.IV.2, Software Cluster employment expanded by 520 jobs (30.9 percent) between 2007Q2 and 2010Q2 o The greatest job growth was in the industry of Computer Systems Design and Related Services, which added 495 employees (40.0 percent) o The industry of Data Processing, Hosting, and Related Services grew by 83 jobs (50.8 percent) o Software Publishers (NAICS 5112) lost 57 jobs (-20.1 percent) The Software Cluster added 164 jobs (8.1 percent) between 2009Q2 and 2010Q2, as indicated in Table A.IV.2 o The only job expansion was in the industry of Computer Systems Design and Related Services, which added 314 jobs (22.2 percent) o The remaining 3 industries in the cluster lost jobs a total of 150 jobs On average, the LQs in the Software Cluster do not indicate a greater employment concentration, compared to the nation. The largest LQ is in Data Processing, Hosting, and Related Services, which is 1.41; however, this industry only accounts for 11 percent of the entire Software Cluster. Table A.IV.2: Larimer County s Software Cluster Fast Facts Larimer County Software Cluster Fast Facts Employment 2007-2010 2009-2010 NAICS Industry 2007 2008 2009 2010 Level Change Percent Change Level Change Percent Change Location Quotients 2006 2009 37

5112 Software Publishers 282 299 254 225-57 -20.1% -29-11.4% 1.21 1.04 5182 Data Processing, Hosting, and Related 163 234 314 245 83 50.8% -69-21.9% 0.61 1.41 Services 5413 Architectural, Engineering, and 1 54 52-1 -100.0% -52-100.0% 1.79 1.73 Related Services 5415 Computer Systems Design and Related 1,235 1,404 1,416 1,730 495 40.0% 314 22.2% 0.99 1.04 Services TOTAL 1,681 1,992 2,036 2,200 520 30.9% 164 8.1% Sources: CDLE QCEW, CSU, and BLS 38

Chart A.IV.2.a: Average Employment in the Software Cluster from 2007Q2 through 2010Q2 Software Cluster Q2 Average Employment Computer Systems Design and Related Services Architectural, Engineering, and Related Services Data Processing, Hosting, and Related Services Software Publishers Source: CDLE QCEW and CSU 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2007 2008 2009 2010 39

Chart A.IV.2.b: Software Custer Employment vs Larimer County Employment 2010Q2 Software Cluster vs Larimer County Employment in 2010 Computer Systems Design and Related Services 1,730 2,651 Architectural, Engineering, and Related Services 0 2,878 Data Processing, Hosting, and Related Services 245 1,569 Software Publishers 225 1,447 Software Cluster Larimer County Chart A.IV.2.c: Total Wages Paid in the Software Cluster 2009Q2 and 2010Q2 Software Cluster Total Wages Paid Computer Systems Design and Related Services $23,595,686 $33,027,661 Architectural, Engineering, and Related Services $753,516 $0 Data Processing, Hosting, and Related Services $3,725,991 $3,613,075 Software Publishers $5,487,409 $4,862,132 2009Q2 2010Q2 40

A.V. Uniquely Fort Collins Cluster As per Table A.V, Cluster employment expanded by 26 positions (2.5 percent) from 2007Q2 to 2010Q2 o The greatest growth occurred in the industry of Beverage and Tobacco Product (NAICS 312), which grew by 85 jobs (30.5 percent) o The industry of Sporting Goods, Hobby, Book, and Music Stores (NAICS 451) added 16 jobs (53.3 percent) o The greatest job loss occurred in Printing and Related Support Activities (NAICS 323), which shed 68 positions (37.6 percent) Between 2009Q2 and 2010Q2, cluster employment contracted by 46 jobs (-4.2 percent; Table A.V.A). o Beverage and Tobacco Product added 37 jobs (11.5 percent o The industry of Performing Arts, Spectator Sports, and Related Industries grew by 16 employees (8.3 percent) o Ten out of the 15 industries in the UFC cluster lost jobs over this year o The greatest employment contraction occurred in Printing and Related Support Activities, which lost 70 jobs (-38.2 percent) The greatest relative employment concentration is in the industry of Beverage and Tobacco Product, with a LQ of 5.26. It is interesting to note the variance in the Uniquely Fort Collins Cluster location quotients. Compared to the US, Larimer County has a relatively small employment base in the industry of Museums, Historical Sites, and Similar Institutions (NAICS 712), with a LQ of 0.13. By comparison, the industry of Sporting Goods, Hobby, Book, and Music Stores had a location quotient of 1.97 in 2009. 41

Table A.V: Uniquely Fort Collins Cluster Fast Facts Uniquely Fort Collins Cluster Fast Facts Employment Location 2007-2010 2009-2010 Quotients NAICS Industry 2007 2008 2009 2010 Level Percent Level Percent Change Change Change Change 2006 2009 Beverage and Tobacco 312 Product 278 297 326 363 85 30.5% 37 11.5% 5.22 5.26 323 Printing and Related Support Activities 182 191 183 113-68 -37.6% -70-38.2% 0.67 0.70 332 Fabricated Metal Product 15 21 12 12-3 -18.2% 0 0.0% 0.37 0.34 337 Furniture and Related Product 10 12 14 10-1 -6.5% -4-31.0% 1.13 1.23 339 Miscellaneous 1 2 1 1-1 -50.0% 1.09 0.81 423 Merchant Wholesalers, Durable 9 7 4-9 -100.0% -4-100.0% 0.57 0.55 Goods 451 Sporting Goods, Hobby, Book, and 31 33 37 47 16 53.3% 10 28.2% 1.97 1.98 Music Stores 453 Miscellaneous Store Retailers 29 26 23 20-9 -29.9% -2-10.3% 1.63 1.74 511 Publishing Industries (except Internet) 72 68 66 58-14 -19.4% -8-12.1% 1.98 2.00 512 Motion Picture and Recording Industries 18 25 18 15-3 -16.7% -3-18.2% 0.67 0.66 541 Professional, Scientific, and 15 17 22 22 4 25.0% 1.40 1.21 Technical Services 611 Educational Services 42 53 62 56 15 35.2% -5-8.6% 0.49 0.50 711 Performing Arts, Spectator Sports, and 198 190 192 208 10 5.0% 16 8.3% 1.35 1.34 Related Industries 712 Museums, Historical Sites, and Similar Inst 17 18 15 12-5 -29.4% -3-20.0% 0.14 0.13 722 Food Services and Drinking Places 118 126 119 107-11 -9.3% -12-10.1% 1.41 1.33 TOTAL 1,020 1,083 1,091 1,046 26 2.5% -46-4.2% Sources: CDLE QCEW, CSU, and BLS Chart A.V.1: Average Employment in the Uniquely Fort Collins Cluster from 2007Q2 through 2010Q2 42

Uniquely Fort Collins Cluster Q2 Average Employment Food Services and Drinking Places Museums, Historical Sites, and Similar Institutions Performing Arts, Spectator Sports, and Related Industries Educational Services Professional, Scientific, and Technical Services Motion Picture and Sound Recording Industries Publishing Industries (except Internet) Miscellaneous Store Retailers Sporting Goods, Hobby, Book, and Music Stores Merchant Wholesalers, Durable Goods Miscellaneous Furniture and Related Product Fabricated Metal Product Printing and Related Support Activities Beverage and Tobacco Product 0 50 100 150 200 250 300 350 400 2007 2008 2009 2010 43

Chart A.V.2: Uniquely Fort Collins Cluster Employment Compared to Larimer County 2010Q2 2010Q2 Employment - Uniquely Fort Collins Cluster vs Larimer County Food Services and Drinking Places 107 11,975 Museums, Historical Sites, and Similar Institutions 12 452 Performing Arts, Spectator Sports, and Related Industries Educational Services 208 56 568 15,618 Professional, Scientific, and Technical Services 22 8,897 Motion Picture and Sound Recording Industries Publishing Industries (except Internet) 15 58 222 1,402 Miscellaneous Store Retailers 20 1,257 Sporting Goods, Hobby, Book, and Music Stores Miscellaneous Furniture and Related Product 47 1 10 360 323 1,187 Fabricated Metal Product 12 390 Printing and Related Support Activities Beverage and Tobacco Product 113 390 363 945 Uniquely Fort Collins Larimer County 44

Chart A.V.3: Total Wages Paid in the UFC Cluster 2009Q2 and 2010Q2 Uniquely Fort Collins Wages Paid Food Services and Drinking Places Museums, Historical Sites, and Similar Institutions Performing Arts, Spectator Sports, and Related Industries Educational Services Professional, Scientific, and Technical Services Motion Picture and Sound Recording Industries Publishing Industries (except Internet) Miscellaneous Store Retailers Sporting Goods, Hobby, Book, and Music Stores Merchant Wholesalers, Durable Goods Miscellaneous Furniture and Related Product Fabricated Metal Product Printing and Related Support Activities $539,564 $548,151 $102,560 $86,988 $1,134,473 $1,068,716 $170,768 $162,984 $106,568 $138,213 $126,599 $97,000 $589,593 $556,036 $79,776 $77,347 $179,852 $176,602 $37,565 $0 $6,700 $3,800 $74,388 $50,761 $107,580 $98,788 $1,694,708 $990,269 Beverage and Tobacco Product 2009 2010 $4,098,232 $4,547,005 45

A.VI. Water Cluster Details The Water Cluster grew by 184 jobs (15.1 percent) between 2007Q2 and 2010Q2 (Table A.VI) o Professional, Scientific, and Technical Services (NAICS 541) experienced the greatest growth of 179 jobs (90.4 percent) o Computer and Electronic Product (NAICS 334) grew by 82 jobs (10.6 percent) o Specialty Trade Contractors (NAICS 238 shed 109 jobs (57.6 percent) Between 2009Q2 and 2010Q2, the Water Cluster expanded by 31 positions (2.3 percent) o Computer and Electronic Product expanded by 53 jobs (6.6 percent) o Specialty Trade Contractors lost 33 jobs (-28.9 percent) The location quotients for the industries in the Water Cluster, on average, indicate a relatively larger employment base in Larimer County, compared to the US. The largest industry in the cluster, accounting for 61 percent of cluster employment, is Computer and Electronic Product and Machinery (NAICS 333), which has a location quotient of 3.64. Over an additional quarter of Water Cluster employment is in the industry of Professional, Scientific, and Technical Services, which has an LQ of 1.21. 46

Table A.VI: Water Cluster Fast Facts Larimer County Water Cluster Fast Facts Employment 2007-2010 2009-2010 Location Quotients NAICS Industry 2007 2008 2009 2010 Level Change Percent Change Level Change Percent Change 2006 2009 237 Heavy and Civil Engineering 1 1 1 0 0.0% 1.20 1.20 Construction 238 Specialty Trade Contractors 190 113 113 80-109 -57.6% -33-28.9% 1.66 1.61 314 Textile Product Mills 37 56 49 42 6 15.5% -7-13.6% 0.44 0.64 325 Chemical 15 21 18 18-4 -17.2% 0.27 0.51 333 Machinery 10 10 9 11 1 10.0% 2 22.2% 1.79 2.11 334 Computer and Electronic Product 773 812 802 856 82 10.6% 53 6.6% 3.53 3.64 425 Wholesale Electronic Markets and Agents and 6 5 6 6 0 0.0% 0 0.0% 0.44 0.52 Brokers 541 Professional, Scientific, and Technical Services 198 343 359 377 179 90.4% 18 5.0% 1.40 1.21 561 Administrative and Support Services 4 5 6 6 1 20.0% 0.92 1.05 813 Religious, Grantmaking, Civic, Professional, and 8 8 9 9 1 12.5% 0 0.0% 1.00 0.39 Similar Organizations TOTAL 1,222 1,365 1,374 1,406 184 15.1% 31 2.3% Sources: CDLE QCEW, CSU and BLS 47

Chart A.VI.1: Second Quarter Average Employment in the Water Cluster Religious, Grantmaking, Civic, Professional, and Similar Organizations Water Cluster Employment - Q2 Averages Administrative and Support Services Professional, Scientific, and Technical Services Wholesale Electronic Markets and Agents and Brokers Computer and Electronic Product Machinery Chemical Textile Product Mills Specialty Trade Contractors Heavy and Civil Engineering Construction Source: CDLE QCEW and CSU 0 200 400 600 800 1000 1200 2007 2008 2009 2010 48

Chart A.VI.2: 2010Q2 Average Employment - Water Cluster Compared to Larimer County 2010Q2 Employment - Water Cluster vs Larimer County Religious, Grantmaking, Civic, Professional, and Similar Organizations Administrative and Support Services Professional, Scientific, and Technical Services Wholesale Electronic Markets and Agents and Brokers 9 6 6 403 542 574 8,142 8,800 Computer and Electronic Product 856 3,964 Machinery 1,015 1,985 Chemical Textile Product Mills 18 42 69 435 Specialty Trade Contractors 80 5,366 Heavy and Civil Engineering Construction 1 1,027 Water Cluster Larimer County 49