Colorado was ranked the fourth-best state for business by CNBC and the fifth best by Forbes. Companies are attracted to Colorado for its friendly business environment, central location, and
access to a talented workforce, while people relocate to Colorado for its employment opportunities and high quality of life. Easy access to Denver International Airport aids businesses in distributing goods and services around the globe as well as connecting employees with other major employment centers.
The professional and business services supersector is Colorado’s second-largest sector by employment, representing 15.3 percent of total employment in 2015. Some of these companies provide expert services including engineering, accounting, legal, and design, while others act as consultants, staffing companies, and groundskeepers. The supersector is comprised of three sectors: administrative and waste services (39%), management of companies (9%), and professional, scientific, and technical services (52%). Many of the state’s largest employers are included in this supersector.
Businesses in the administrative and waste services sector perform routine support activities for the day-to-day operations of other organizations. This is a diverse group of businesses, with companies in the sector providing office administration, employment services, cleaning and janitorial services, document preparation and clerical services, security services, and waste disposal. Employment services is the largest subsector, and is regarded as a barometer of the economy as a whole. Many businesses use temporary or contract employees as they enter a new growth mode, prior to hiring new permanent employees. As company growth becomes more stable, the use of employment agencies may fall or at least may not grow as rapidly.
Establishments in the management of companies sector include a broad cross-section of company headquarters and holding companies. These headquarters operations administer, oversee, and manage the general business activities of the company, providing a central source for such functions as personnel, financial planning, billing and recordkeeping, and other company logistics. Colorado is the headquarters location of 20 Fortune 1000 companies representing a broad range of industries, including electronics, telecommunications, healthcare, financial services, energy, and consumer products.
Companies in the professional, scientific, and technical services sector (PST) include establishments that provide legal, architecture and engineering, computer systems and design, accounting, and other research and consulting services. Companies in this sector rely upon an available and talented workforce, with many of the employees in this sector boasting a strong foundation in science, technology, engineering, and mathematics (STEM). Computer systems design and related services have increased steadily over the past five years, with this subsector currently representing about 26 percent of the total PST employment. One of the highest concentrations of engineering services employment anywhere in the nation is found in the Denver South region, along the I-25 corridor stretching from the Denver Tech Center into northern Douglas County.
The professional and business services sector is a crucial and necessary component of the state’s economy, with companies providing services from the bottom up, ranging from janitorial services to supply chain analysis. The diversity of companies in this supersector reflects the vitality of the business community.
