Boulder Chamber View: Boulder’s Economic Future — Innovation Fuels Growth Amid Key Challenges

Originally published by Daily Camera on March 10, 2025. 

With so much national policy turbulence in the air, anticipation filled the room as more than 375 business leaders, city officials, and economists gathered at the Boulder Chamber’s 2025 Economic Forecast to gain economic insights from the University of Colorado’s dynamic economic duo, Senior Economist Richard Wobbekind and Business Research Division Executive Director Brian Lewandowski.

Justifiably, they recognized that Boulder’s economy has long been a model of resilience. But the data concerning persistent troubling conditions, coupled with policy shifts in Washington, D.C., reveal a more complex reality, which forces all of us to ask if Boulder can sustain its current strength in the face of mounting challenges.

My takeaway: Boulder’s economy — driven by strengths in technology, research, and entrepreneurship — is poised for long-term success. However, pressing challenges in housing affordability, workforce shortages, and office vacancies demand immediate, research-backed policy action and innovative solutions to keep us on a positive trajectory, regardless of the national policy direction.

The U.S. Bureau of Economic Analysis reported that the economy expanded by 2.3% in Q4 2024, driven by strong consumer spending and controlled inflation. While many factors could influence this trajectory, Brian and Rich anticipated modest growth continuing into 2025 as of mid-January. “The U.S. economy performed well in the most recent quarter,” said Wobbekind, noting that growth is expected to slow slightly to “not much over 2%” in 2025.

Closer to home, Colorado continues to outperform national trends, ranking among the top five states for GDP growth, personal income, and population expansion. Boulder County, a key engine of this strong statewide performance, added 2,400 jobs last year. “The last 15 years have been ours,” said Brian Lewandowski, referencing Colorado’s strong economic performance compared to other states.

With an eye on keeping the good times rolling, panel members at the Economic Forecast touted Boulder’s innovation and startup business leadership. It all rests on the foundation of research at CU Boulder and in our federal laboratories, along with a legacy of support for entrepreneurship. It’s a dynamic spirit that fuels our high-growth sectors — from professional services and IT to biosciences — and their own innovation flywheels.

The practical outcomes are all around us. Advances in quantum technology, bolstered by Elevate Quantum and Boulder’s burgeoning quantum ecosystem, have positioned us as a national leader in next-generation computing. Meanwhile, our biotech and life sciences sectors, driven by innovators such as Corden Pharma Colorado, KBI Biopharma, and AI discovery startup Enveda Biosciences (which recently raised $130M), are expanding rapidly.

However, both Wobbekind and Lewandowski emphasized that without targeted interventions, structural challenges could slow Boulder’s economic progress. Through my own engagement with local business leaders, officials, and startup founders over the past year, I’ve seen firsthand that Boulder’s growth is not random — it is built on deliberate policies, strategic investment, and a well-supported culture of innovation. Every decision we make today builds on this foundation for a stronger, more competitive economy tomorrow.

That proactive action is the foundation of the Boulder Chamber’s Boulder Together program. It begins by identifying the greatest challenges to our regional economy and developing targeted measures that take us in a positive direction. Affordable housing, commuter mobility and workforce development have topped the list in previous years, but as our community evolves, so will the focus of Boulder Together adapt.

For example, while Boulder’s labor market remains resilient — with unemployment at 4.1% and 2,400 new jobs added last year, industry-wide labor shortages persist. Our talent pool could be further challenged by federal immigration policies. As Lewandowski noted, “Colorado has the highest number of immigrants among non-border states.” Boulder Together is responding with program investments — such as efforts to retain graduating University of Colorado students in Boulder, internships for local high school students, and apprenticeships for those exploring new careers — that prepare our available workforce to fill vacant positions.

We’re also seeing that high office vacancy rates are threatening the stability of our commercial building market, while also leaving our small businesses starving for customers. Office vacancy in downtown Boulder, alone, is sitting at above 30 percent. Boulder Together is forging a coalition of partners, including CU’s Real Estate Center, the Downtown Boulder Partnership, the Small Business Development Center and representatives from our Commercial Brokers of Boulder association, to identify creative initiatives that will fill our offices. Conversions to residential units, direct marketing for business relocations, and the elimination of barriers to office reconfigurations are all strategies under consideration.

In the coming months, I will elaborate on some of the further challenges to our sustained economic vitality and the solutions we are pursuing through the Boulder Together program. More important is the underlying message. As our expectant audience at the 2025 Economic Forecast heard, Boulder boasts many enviable characteristics that provide a platform for positive economic trends. However, shifting national policy directions and persistent local challenges underscore the need for proactive action. The Boulder Chamber, working in collaboration with our other economic vitality partners, business leaders and civic officials, will not shy from this responsibility to act. Let’s work together to build an even brighter economic future for Boulder.