WSP04638

• File Number: 8136.500.10
• Description: Local Governments - Municipalities - Colorado Springs
• State: CO
• Basin: Arkansas
• Water Division: 2
• Date: 1/1/1981
• Author: Colorado Springs
• Title: Community Profile for the City of Colorado Springs
• Water Supply Pro - Doc Type: Report/Study

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when a number of firms producing high
value, law bulk goods began locating here.
These firms, most of which produce
electronic equipment, began to shift the
emphasis of the economy from the
military and tourism to manufacturing.
Table I I shows 13 electronic firms which
each have over 100 employees. Some of
these firms are not yet fully operational,
thus the number of employees will
substantially increase. In addition to
electronics firms, a number of research
facilities and precisian instruments and
optical goods manufacturers are
represented. This influx apparently
results from the quality of life perceived
by the industries, labor conditions ond
aggressive recruiting by the Chamber of
Commerce.

Although the percentage of total
employment in the manufacturing sector
has only increased from 6.5% to 9.7% in
the past 9 years, the percentage gain in
employment was 110%.

A number of manufacturing firms have
announced plans for future operations
here, with more announcements expected
in the near future.

The Military

The military presence in EI Paso County
remains the major economic influence
although the number of military-related
jabs has declined in the last decade. As
shown in Table 12, there are currently
about 63,000 troops and dependents in the
area related to the three major military
installations: Fort Carson, the Air Force
Academy and Peterson Air Force
Base/NORAD.

Total employment by the Department of
Defense (DOD) in the community does not
provide a complete measure of the
economic impact of the military in the
area. All Defense Department employees
purchase goods and services which results
in income for the retail and service
sectors of the economy. This income is,
in turn, spent in the community,
generating additional local income. The

total amount of local income generated
from Defense Department spending is
calculated by using a figure known as the
income multiplier. This is a tool used to
measure the impact on the local economy
of income from sources outside the local
area. Estimates for Colorado Springs
indicate tne local income multiplier is
about two. Thus each dollar of Defense
Department spending generates about two
dollars of income in the community.
Despite efforts to diversify the local
economic base to increase the percentage
of income from nonmilitary spending,
economic activity in the area is still
heavily dependent on defense spending.
As Table 13 shows, total personal income
in the Colorado Springs area for 1979 was
estimated at $2.2 billion. Of this total,
$571.1 million came directly from the
Department of Defense and $633.9 million
resulted from the income multiplier
effect. The combined direct and
multiplier effects of defense spendin<;l in
the area in 1979 totaled an estimated ~ 1.2
billion or over half of total personal
income.

Tourism

The natural amenities of the Pikes Peak
Region, which include a pleasant climate
and mountain setting, make tourism one
of the most important regional industries.
It is estimated that 4 million people
visited the metropolitan area in 1979,
more than 12 times the number of people
who live here. Durin\! 1979, visitor
spending amounted to ~ 195 mi II ion or
about 10% of total retail sales. Of this
total, convention spending was $38 million

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