Why are Companies Relocating to Denver?
Gymshark, Salesforce, and Zoom are just a few of the many international companies in Denver. The state of Colorado is 16th largest economy in the US, adding over about $366 US dollars of value to the US real gross domestic product (GDP). And where better to do business in this thriving state than Colorado's capital, Denver. We spoke to Stephanie Garnica, the director of Global Business Development for The City and County of Denver to find out why are companies relocating to Denver.
What are the advantages of doing business in Denver?
Historically Denver was known as a great gateway to the Rocky Mountains, where tourists would fly into to explore. More recently the city has been gaining traction as a location for business with more companies relocating to Denver. The advantages include:
Central Location
Denver is based almost in the geographic center of the United States. When doing business in the US, a central or well-connected location is essential to connect you to:
Transportation routes for shipments.
Airports for traveling into, across, and out of the US for business.
Commuting lines to attract quality talent.
The city is also at the base of the Rocky Mountains, boasting not only a beautiful view but providing residents the perfect balance between an urban and outdoor lifestyle. Health and wellness life balance is imbued in every aspect of the Denver community, both from a work and a personal side. Therefore, companies relocating to Denver and their employees can experience the US city life combined with an array of options for outdoor activities.
Diverse economy
Denver’s diverse economy has been critical for attracting both companies and employees to the city. Denver is not fully focused on one sector having learned its lessons historically. Previously, the city was known for oil and gas and at one stage an agricultural hub.
After massive fluctuations within those sectors in the eighties, the state, city, and county governments of Denver decided to intentionally diversify. As a result of this, Denver has branched out as a hub for aerospace, life science, and tech, making it really appealing to start-ups. Consequently, the mix of international companies in Denver operating within these diverse sectors is attracting high-quality talent with varied skillsets.
What big companies are based in Denver?
Fortune 500 companies in Denver
There are over 10 fortune 500 companies based in the metro area of Denver. Examples of popular international companies in Denver include:
Western Union – A FinTech company headquartered in Denver that offers global money transfer services.
Arrow Electronics – A global provider of technology products, services, and solutions headquartered slightly south of Denver.
Ball Corporation - A global electronics fortune 500 company known as a world-leading provider of aluminum packaging and glass bottles. Ball Corporation also has an aerospace division within their company. This highlights how Denver is growing in popularity for businesses operating within the life sciences sector.
An innovative location for FinTech Companies
Denver has become a hidden gem for tech talent thanks to its developing FinTech scene as highlighted by Forbes. Several international companies operating within the FinTech industry have recently set up offices in Denver, such as Melio an Israeli fintech company, and Finder, originally based in Australia.
Melio cited the strategic location of Denver providing better time zone coverage for their western users, diverse talent pool, and the state’s vibrant small business ecosystem as the main reasons their new western headquarters is based in Denver.
Traditionally many of these types of companies chose the coastal cities in the US as their base. Over the years, there has been a massive uptick in companies relocating to Denver from these traditional areas or opening a second office, while keeping satellite offices on the US coast. Companies have recognized that they require a location with a:
Talented workforce.
Central location.
Time zone that provides greater access to their clients around the world.
Lower cost of living
More balanced/outdoor lifestyle.
A location not at opposite ends of the country or clock
The central location of Denver means businesses can easily travel to their clients in all parts of the United States. The prime location is a reasonable distance from both coasts in the US, so if you have business to do in California or New York, you are not at opposite ends of the country or clock.
Denver follows Mountain Standard Time (MST) which makes it:
1 hour ahead of California (Pacific Time Zone)
2 hours behind New York (Eastern Standard Time)
7 hours behind the United Kingdom (Greenwich Mean Time)
Companies based in Denver can find a convenient time to accommodate all parties. Thanks to the time zone you can typically start your day talking to European companies, followed by those based in North America, South America, and end the day with Asia. For example, to catch UK clients or co-workers, you can schedule a virtual meeting between 9 and 11 am (MST) which falls between 4 pm and 6 pm in the UK within working hours.
A big driver for companies relocating to the US is the tax climate. Are there any attractive Denver business incentives available?
Colorado offers over 100 programs to support business growth
The City and County of Denver have some limited funding available to encourage and reward business growth. The Office of Denver Economic Development and Opportunity will often refer companies to the Colorado state government and their economic development team.
The state has a greater pool of funding to provide businesses expanding or relocating in Colorado. They offer over 100 programs varying from tax credit, economic incentives, and business grants to encourage job and economic growth.
Community connections to expand your network in Denver
Where Denver really shines is the community-like feel it offers companies. Denver provides warm introductions to help businesses form connections and integrate into the community. This can include anything from site selection, helping advertise jobs, and tapping into workforce services.
Connect with leaders in your industry
The office of Denver Economic Development and Opportunity can connect you or your employees to Denver based leaders in the industry you operate in. Often people within these business networks in Denver are willing and ready to meet with other companies for a coffee to share the experiences and challenges they have faced doing business in Denver.
The City of Denver is great for sharing knowledge and its network of contacts with companies relocating to Denver. They want to see companies not just relocating to Denver, but establish themselves successfully, integrate into the community and feel like they have an instantaneous network that they can start building and tapping into.
Build brand awareness within the Denver community
The office of Denver Economic Development and Opportunity invites companies relocating to Denver, or already based there, to attend events across the city as guests or panel speakers.
They can also help publicize your business across the community by:
Brand awareness pieces.
Introducing you to key chambers of commerce or industry associations.
Sharing annual events that align with your industry or the country you're from if international.
The main goal is to set up companies relocating to Denver for success. Taking the big leap and setting up an office in the US or relocating to another state can be intimidating. Having a team in your chosen state for business like the City of Denver to help you every step of the way and with structure is a great resource to utilize.
With the US being such a candidate-driven market now, companies want to have access to a larger talent pool. From an employee's point of view, what is the best thing about living in Denver?
Denver offers a high quality of life
The residents in Denver are generally open and there is a strong sense of a collaborative spirit wherever you go. You feel welcome in the city like you're a part of something no matter where you're from. The open community feel is attractive for current employees within the city and people considering relocating to Denver. The outdoor lifestyle with the Rocky Mountains mixed with city life offers employees the best of both worlds.
An area that attracts top talent and businesses
Entrepreneurial, innovative, and creative minds are attracted to Denver. Colorado in general is a research-heavy state thanks to the high standard of local universities. The federal government research and development labs provide a great platform for scientists and researchers from around the world. These centres also give back to the communities in Denver and open lab space for start-up companies to empower them to test ideas and help commercialize them. For those working in research-heavy industries, Denver can help employees grow in their careers.
From an employer perspective, if you can't source the right talent locally with the current candidate-driven market in the US right now, it's very easy to promote job openings in Denver through community networks. Denver companies appear to be faring better than some areas in the US because of the attractive nature of the city and the community-focused ecosystem.
If a business owner is weighing up relocating or setting up in a few states, what is the main thing that would sway them to do business in Denver?
The top-selling points for businesses considering doing business in Denver summarized are:
The time zone - If you are based in Denver the MST time zone provides extra availability for global meetings, which is fundamental when you have employees and clients in different time zones.
The prime location – Denver provides access to both coasts in the US when traveling for business. This is often the main selling point that encourages companies to do business in Denver.
The quality of life
Ready to Start Doing Business in Denver?
If you are considering joining the host of companies relocating to Denver, The City and County of Denver can help you with your strategy, connections, and much more. For more information about the benefits of doing business in Denver, get in touch with Stephanie Garnica, the director of Global Business Development.
Additionally, if you’re ready to get feet on the ground in Denver and start hiring employees, PGC has got you covered to ensure you remain compliant with the different employment benefits and requirements in Denver.
Disclaimer: PGC does not endorse any personal views or opinions of the interviewee. All information here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.