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DENVER – The Colorado Chamber today released the results of its 2025 poll of Colorado businesses covering key economic and policy issues relevant to the statewide business community. The survey of 169 business leaders was conducted by Cole Hargrave Snodgrass & Associates, a nationally-recognized firm with expertise in market research specifically for state chambers of commerce. Interviews were conducted from November 25 to December 17, 2024.
“Based on strong feedback on our regulatory climate in previous surveys and studies conducted by the Colorado Chamber, this year we took a deep dive into how these regulations are impacting businesses and their workers,” said Loren Furman, president and CEO of the Colorado Chamber. “Companies have choices in where they invest and grow, and too many are choosing to go elsewhere. There’s no doubt that state regulations are the primary driver of Colorado’s recent decline in competitiveness, and our path forward is clear. Our regulatory relief package for the 2025 session is currently in development and we will work closely with lawmakers to ensure its passage.”
The most concerning regulations come from the labor and employment side (41% of employers say it’s their top concern) followed by environmental regulations (32%). The business community is united in the need for regulatory relief from the legislature, with 92% saying reform is necessary to reduce the burden on employers.
The economic impact of our state regulatory climate is widespread, with 76% saying regulations have led to increased costs of products, 71% saying they have negatively impacted their overall company, and 63% saying they have caused a reduction in productivity. Regulations also negatively impact workers, with 67% of employers saying they have had to reduce wages offered due to regulatory costs and 51% saying regulations have prevented additional hiring and job growth.
“Having conducted more than 50 studies of businesses in states across the nation, this is the greatest concern about regulations I have ever recorded,” said Pat McFerron, president at Cole Hargrave Snodgrass & Associates. “It is very clear that Colorado businesses face unique challenges – especially when it comes to state regulations and housing attainability. Concerns about the economy and the regulatory burden could have long-term consequences on the state.”
Other key findings of the survey:
- Business leaders continue to sour in their perception of the state’s economy. Two-thirds (67%) now say Colorado’s economy is headed in the wrong direction, up from 60% in 2023 and 53% in 2022.
- 71% of respondents say that Colorado’s business climate is more costly or burdensome than other states – only 5% hold the opposite view.
- The state-imposed regulatory burden dominates the concern of Colorado businesses. Not only do 48% volunteer this concern on an open-ended question, but 70% say it is one of the three greatest challenges their business is facing.
- When asked where they see the greatest regulatory burden, the state (58%) far outdistances federal (18%) or local (23%) regulations as areas for concern.
- Only 29% of Colorado businesses expect to grow their workforce over the next year – down from 41% in 2023 and 48% in 2022. 15% say they will decrease the number of employes, more than doubling what we saw just two years ago.
- More than a quarter of the business say they are unlikely to make future investments in Colorado, a number that continues to climb. Among those with operations already in other states, 47% say they are ending investment in Colorado and more than 30% of those with more than 100 employees say they will invest in other states, but not Colorado.
- Regulatory costs are clearly the top reason businesses say they won’t invest in the state. When asked about what hesitancy they have in investing, 37% cite the regulatory burden in the state and 21% cite a more favorable business climate in other states. Only 24% say they have no hesitancy in investing in Colorado.
- Blame for not being able to attract and retain workforce talent centers around the high cost of living (73% say it is in the top two concerns) and housing attainability (50% in the top two concerns).
- Likely because they recognize the need for more attainable housing, Colorado business leaders embrace a variety of reforms to increase housing such as construction defects reform (79% favor), incentives for developers and home buyers (71% favor) and local regulatory reform (86%).
To view the poll memo highlighting major findings from the survey, please click here.
To view the full survey report, please click here.
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The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association.