By JJ Ament, Debbie Brown, Dave Davia, Loren Furman and Kourtny Garrett
When a company leaves Colorado, no one wins; especially not line cooks, transport drivers, investors, or small businesses according to them. Often, business travel is criticized as an isolated or trivial event. They are not like that. Their departure is a sign of the growing disconnect in our state between policy objectives and real-world impacts for workers, families and communities.
Colorado has long been a place where people come to build their future. Our strong workforce, entrepreneurial spirit, and quality of life have made the Centennial State one of the nation’s most vibrant and desirable places to live and work.
Until recently. There are warning signs that our economic base is collapsing.
The latest data from the Metro Denver Economic Development Corporation’s Toward a More Competitive Colorado report shows that while Colorado continues to rank high in labor force participation, our job growth has slowed significantly and is inconsistent. Overall, we now rank 48th in the nation for affordability, and our economic conditions and home prices have fallen significantly.
These findings are bolstered by national data showing growing concerns from employers. According to a recent survey of business leaders by the Colorado Chamber of Commerce, many businesses report that Colorado is becoming unaffordable and difficult to operate in, with rising costs and increased regulatory complexity.
For working families, these methods are important. Limited career growth means limited opportunities for career advancement. High costs make it difficult for people to stay in the communities where they grew up. And when businesses like TIAA or Palantir decide to relocate or reduce back-office operations, the ripple effects extend far beyond corporate headquarters.
It means fewer jobs for Colorado workers, fewer small business customers, and fewer tax dollars and philanthropic support for our community.
And unfortunately, these decisions are not shared. The latest analysis of lost opportunities in Colorado’s economy shows that since 2019, Colorado has lost or lost at least 73 companies’ relocation or expansion opportunities to other states, resulting in more than 11,600 jobs that would have supported Colorado workers and communities.
This is not a case of one policy being wrong. It’s about the cumulative effects of rising costs, regulatory uncertainty, and policy choices that are making it harder for businesses, and the people who work for them, to thrive. In fact, Colorado is the sixth most regulated state in the nation, reflecting the growing challenges businesses face doing business here.
For example, HB26-1210 would restrict the use of pricing and reward tools that businesses use every day to manage inventory, labor, and customer demand, and likely result in fewer discounts, fewer pricing options, and higher costs for consumers. Recently, a new slate of tax proposals, HB26-1221, HB26-1222, HB26-1223, HB1233, and HB26-1289, together could increase taxes on businesses by about $750 million a year, meaning less investment in workers’ wages, job creation, and a larger decline in business.
Taken together, these policies send a clear message: Colorado remains an expensive and unpredictable place to do business.
At a time when our country needs to focus on new technologies as opportunities to improve, we are introducing policies that will hinder them from doing business here.
Take Colorado’s attempt to lead the state in regulating emerging technologies called the “Colorado AI Law,” for example. Responsible safeguards around artificial intelligence are important, but the rapid adoption of complex regulatory frameworks can place a significant compliance burden on companies, especially small firms and startups without large legal teams. Our technology industry makes up about 10% of Colorado’s jobs and produces about 20% of our state’s gross domestic product. Now is not the time to rule them out of business.
Other laws also contribute to rising costs for businesses and the people they serve. Building performance standards require many commercial buildings to meet strict emissions targets, often requiring expensive retrofits. Programs like the Colorado FAMLI Act increase employee benefits but also increase the wage costs that businesses, large and small, must absorb.
None of these strategies exist outside of space. We agree on affordability issues for Colorado’s hard-working workers, but policies that ensure permitting delays, energy price hikes, and infrastructure gaps raise the growing problems that affect the daily lives of Colorado’s workers and consumers.
Denver’s restaurant industry, which accounts for 1 in 12 local jobs and contributes 13% of the city’s sales tax, is often the first to experience economic stress.
In a recently released State of Denver Restaurants report, there is a clear correlation between policies that lead to increased operating costs, shrinking margins and growing complexity. Opportunity costs in Colorado now sit at 5.1% above the national average, proof that these pressures are not just speculation. As we work to revitalize Denver’s downtown culture, it’s important that we do right by one of the most visible aspects of the city’s small businesses.
Education goes beyond restaurants. Retailers, construction companies, child care providers, and manufacturers across Colorado are dealing with many of the same pressures.
This is not an argument against thoughtful regulations or important worker protections. Colorado’s economic success has always depended on balancing innovation, equity and opportunity. Maintaining balance requires policymakers to understand how policies interact in the real world.
As leaders representing businesses across the state, we believe that Colorado can change, but only if we are willing to acknowledge the warning signs and act quickly.
Policymakers should follow a simple guiding principle: do no harm. That means taking a hard look at the cumulative effect of regulations and asking the important question: are we making it easier or harder for businesses and workers to succeed?
Colorado’s success has always depended on its people. People who start businesses, people who go to work every day, and people who rely on a strong local economy to support their families.
The decisions we make today will determine whether Colorado remains a place where those people can continue to thrive.
The processing window is still open. But it’s still closing.
JJ Ament serves as president and CEO of the Denver Metro Chamber of Commerce. Debbie Brown serves as president of the Colorado Business Roundtable, a community organization that focuses on executive strategy from some of the state’s largest employers. Dave Davia is the president and CEO of Colorado Concern, a coalition of senior business executives dedicated to improving the Centennial State’s business climate. Loren Furman is president and CEO of the Colorado Chamber of Commerce. Runtny Garrett serves as president and CEO of the Downtown Denver Partnership, the leading voice for independent businesses in Downtown Denver.
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