Economic Overview: Pueblo

Two large industrial projects and a new outlook boost the city

Pueblo saw steady growth through the 1990s but has since experienced a lull in development, residential construction and population growth. The city doesn’t seem to be experiencing the same economic downturn that the rest of the nation, according to the Pueblo Economic Development Corp., but is feeling the effects of a slowdown in the overall economy.

Some changes in the city's profile include the addition of the Pro Rodeo Hall of Fame and the growth of Colorado State University at Pueblo, including adding football and wrestling teams. A number of significant projects are under construction in the city, a chemical demilitarization project, the Comanche Power Plant project and the GCC Pueblo Cement Plant.

Colorado Construction magazine talked to PEDCO about what the industry can expect to see happening in Pueblo in 2008.

Colorado Construction magazine: What is the current industry base in Pueblo?

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Pueblo Economic Development Corp.: Today, the city of Pueblo’s employment picture is bright and diverse. We have a stable and productive labor force with characteristics that are deeply rooted in the traditions of Pueblo’s history as Colorado’s manufacturing center. Job growth has shown an increase through the past several quarters and has exceeded state and national values.

The strength of the commercial construction sector of the local economy has played a big role in sustaining job growth. And we are seeing new jobs come available through projects like the cement plant, call centers, the Pro Rodeo and manufacturing-based companies.

Once we start filtering the students from high school and college into the local workforce, I think we will start to see more growth throughout the city.

CCM: What economic factors are driving the local economy?

PEDCO: The effects of the housing slowdown were apparent at all levels. Cumulative single-family housing starts within Pueblo showed declines by the end of 2007. It has hurt us just like it has hurt everyone else. But we didn’t have the huge growth that was seen in other parts of the state. Pueblo has experienced a steady growth pattern that has leveled off recently. There is a light at the end of the tunnel, and some developers are looking at new subdivisions that will be created on a smaller scale than what we have seen in the past.

There are a lot of changes filtering into the way we do business here. Many of the companies are looking for options to increase railroad access, and if that goes through, it will lead to heavy and light manufacturing possibilities. On the technical side, there are lot more companies looking to business over the Internet and through call centers.

And, at least with our organization, there will always be a focus on what we need to do to focus on providing and developing primary jobs.

Having the university here has also helped. We have seen an increase in enrollment and the addition of sports teams that is being fostered with a new stadium currently under construction.

CCM: How is the construction industry faring in the Pueblo area?

PEDCO: Commercial construction in Pueblo is holding its own, but homebuilding is suffering. There are a lot of projects under construction that will be finishing up here shortly, including the GCC Pueblo Cement Plant. At maximum output, the plant will supply one million tons of cement per year in Colorado, and in the city, it will bring a number of jobs. The Comanche Power Plant will also bring a number of jobs to the area as well as increase the cities ability to better serve the surrounding areas.

CCM: What is the economic outlook for the rest of 2008 in the area?

PEDCO: Though it seems that times are rocky, we believe Pueblo will continue to hold its own. Things seem to be leveling off as we approach the middle of 2008, and our people are starting to look toward the positive. We have revitalized our downtown area through the River Walk project, which has seemed to bring a lot of pride to our citizens. We have started to see a lot of commercial, restaurant and multifamily development to the area, which helps our downtown. We anticipate the steady growth we have experienced in the past to continue at levels that are manageable and good for our city.

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