BOULDER - Annual economic benefits to Larimer County from federal laboratory centers, most housed at or near Colorado State University, will climb by nearly half to $152 million by the end of 2009, a new study shows.

Statewide, the annual net economic benefit of federally funded research facilities and their affiliates in Colorado is about $1.1 billion, according to the study conducted by the Business Research Division at the University of Colorado for Co-Labs, a nonprofit consortium of federally funded laboratories, universities, businesses and local governments.

The report, commissioned by the Boulder Economic Council but having a statewide reach, puts numbers to a longstanding belief that the federal labs are a coveted and integral part of the state and local economies. While most of the 113-page report crunches data to show direct economic impact from the lab facilities, other benefits are quantified as well.

The study "identifies the intangible benefits, including spin-off companies, commercialized research, research awards and strategic affiliates that contribute to the uniqueness of the federal research presence in the state," the authors say in a summary.

In Larimer County five federal laboratories, three of them under the U.S. Department of Agriculture, contributed almost $106 million to the region's economy last year, the study shows. That number is projected to climb to $113 million this year and will top $152 million during 2009.

The net economic benefits of the federal laboratories for Boulder and Jefferson counties totaled $376.7 million and $363.5 million respectively during 2007, the report says. The Denver metro region, including Broomfield, Adams, Arapahoe, Denver, Douglas and Jefferson counties, derived nearly $490.6 million in benefits.

Co-Labs formed last year to raise awareness of the economic impact of the labs to the state's economy and to retain them in Colorado. The state in 2006 lost a bid to Wyoming to host a $75 million federal supercomputing lab. Oklahoma gave Colorado a wakeup call two years ago when it attempted to lure two National Oceanic and Atmospheric Administration weather laboratories from Boulder to Norman. The attempt was unsuccessful, but proved the labs' economic desirability.



Construction leads way

A big chunk of the growth in Larimer County's share of benefits will come from the expansion of the National Wildlife Research Center, a CSU-based arm of the U.S. Department of Agriculture. The agency will spend $36 million in 2009 to build its new Wildlife Disease Research Center.

The statewide economic impact of the labs is expected to grow to $1.25 billion in fiscal year 2008 and $1.55 billion 2009, according to the study. Jobs, new construction and renovation, employee spending and visitor spending are the primary drivers of the benefits.

Laboratories in the state with the greatest economic impact are the U.S. Geological Survey in Lakewood, with $257,000 in annual benefits; University Corporation for Atmospheric Research in Boulder, at $207 million; National Renewable Energy Laboratory in Golden, with $194 million; National Institute of Standards and Technology in Boulder, at $112 million; and the National Oceanic and Atmospheric Administration in Boulder, with $107 million.

The federal labs account for about 6,200 jobs statewide with an average annual salary of $64,350, and average total compensation including benefits is $90,627 per worker.

Larimer County had 547 full-time federal lab employees, 142-part-timers and 155 contract workers.

About 3,000 of the federal jobs, or nearly half the state's total, are in Boulder County at seven labs and their affiliates. In fiscal year 2007 Boulder County had 2,548 full-time federal lab employees, 357 part-time workers and 229 contract workers.

The University of Colorado at Boulder, CSU in Fort Collins and the Colorado School of Mines in Golden also benefit from the labs, collaborating on research and spinning off new companies that locate near the facilities.

Construction at the facilities in the study topped $12 million in fiscal year 2007, with indications that construction expenditures in Colorado will increase to $54.7 million and $155.4 million in 2008 and 2009, resulting in nearly 3,460 construction-related jobs over the three-year period, the study predicted.

The labs also have a positive impact on the hospitality industry generating approximately $1.1 million annually from 104,000 day visits and 37,300 room nights in Boulder, Jefferson and Larimer counties through conferences, tours and technical training events.

The data for the study was gathered during surveys of 13 federal research facilities in the state. Twelve of those agencies responded with detailed reports, and information was gathered informally from the one that did not reply.