Colorado Springs has fallen to 50th place in a ranking of high-tech metro areas, hobbled by its waning semiconductor and computer manufacturing industries.

The city is down 13 spots since 2003, according to a new Milken Institute report. The economic research organization, headquartered in Santa Monica, Calif., based its rankings on 2007 employment and wage data, the latest available. 

Silicon Valley and Seattle continue to lead the rankings, and other cities across North America are gaining ground. Colorado Springs, with its concentration of computer component companies, has fallen.

“Because Colorado Springs is concentrated in the sectors that were hit the hardest in the last tech implosion, they have caused the overall ranking to decline,” said Ross DeVol, an author of the June 2 report. The city’s drop is the largest among the top 50 metro areas.

From 2003 to 2007, the number of high-tech workers in the city fell to 27,900, down from 29,570, according to the report.

Following a tech peak in 2001, companies including Intel and Agilent have closed or scaled back operations here, said Fred Crowley, an economist with the Southern Colorado Economic Forum.

Since 2007, the situation has worsened as the recession has hammered the tech sector, DeVol said.

Colorado Springs maintains a high concentration of tech jobs, above the national average. That positions the city for a strong economic rebound, DeVol said.

However, local tech companies didn’t spur recovery after the 2001 bust, Crowley said, and they probably won’t in coming years.

“More than likely, unless we get really lucky with a new technology, it’s going to be really hard to climb the ladder,” he said.

While computer-related jobs are moving out, the city’s skilled work force and attractive business environment could create new tech industries, said Mike Kazmierski, president of the Colorado Springs Regional Economic Development Corp.

“We’re transitioning from the chip industry and the industries of the 1990s to companies that will be growing in the months ahead,” such as software development, Kazmierski said.-Contact the writer at 636-0368.

On Thursday the Marian House Self Sufficiency Center, which is named after Bishop Richard C. Hanifen, will officially be open for business. Photo by The Gazette/Bryan Oller