WELCOME TO THE CULTURE OF BUSINESS.

Transcription

1 SAN ANTONIO PROFILE

2 WELCOME TO THE CULTURE OF BUSINESS. While this city is known for a culture rooted in history, art and ethnic diversity, business here enjoys a culture all its own. Homegrown firms and expanding companies alike are drawn by affordable land, abundant power, a great lifestyle, a cost of living nearly 12% below the national average, and an education system that continues to evolve and improve. Their growth is actively cultivated by local business retention and expansion efforts, and supported by financial incentives and a local government focused on economic growth. The result? We ve grown to be the 7th largest city in the U.S., with a skilled workforce of more than a million and with 150,000 students in 15 area colleges and universities. Small wonder that Forbes has formally recognized us as one of America s Fastest Growing Cities and ranks us #1 in Texas on their list of Best Places for Business and Careers. The SAEDF is available to provide you with a confidential, no-cost relocation analysis and assistance. Discover a culture that can help your business grow.

3 WHERE IS SAN ANTONIO? San Antonio sits at the center of Bexar County, Texas only 140 miles from the Gulf of Mexico and approximately 701 feet above sea level. Its unique geographic position connects the east and west coasts, Canada, Mexico, and Central and South America. Interstate highways connect San Antonio to the major Texas population centers and to primary border crossing points into Mexico including Laredo, Del Rio, Eagle Pass and the ports at Corpus Christi and Houston. Because of the combination of ideal location and quality infrastructure, more than 50 percent of the total goods flowing between the U.S. and Mexico travel through San Antonio before reaching their final destination. CLIMATE ( O F) 30-yr Avg. Monthly Temp ANNUAL O JAN O FEB O MAR O APR O MAY O JUN O JULY O AUG O DISTANCE TO OTHER MAJOR CITIES CITY REGION MILES KM Austin Northeast Corpus Christi Southeast Dallas Northeast Houston East Nuevo Laredo, Mexico Southwest Monterrey, Mexico Southwest Source: U.S. Census Bureau, 2010 SEPT O OCT O NOV O DEC O Source: National Weather Service A + For Business - Forbes, 2013

4 WHO LIVES HERE? San Antonians love both the international flair and the down home comfort that combine to make this city so unique. San Antonio has long attracted a diverse, multifaceted and multicultural population. POPULATION AND PROJECTIONS AREA 2010 CENSUS EST. POP PROJ. GROWTH San Antonio 1,327,605 1,387, % Bexar County 1,714,777 1,804, % Metro Area 2,142,508 2,256, % Source: Claritas RACE COMPOSITION White Hispanic/Latino Black/African American American Indian/Alaska Native Asian BEXAR COUNTY SAN ANTONIO MSA PERCENTAGE PERCENTAGE 29.60% 36.45% 59.10% 53.80% 7.00% 6.08% 0.20% 0.22% 2.40% 1.92% Native Hawaiian/Other Pacific Islander 0.10% 0.09% BEXAR COUNTY SAN ANTONIO MSA Two or More Races 1.40% 1.29% Other Race 0.20% 0.15% Source: American Community Survey, 2012 LANGUAGE / BILINGUAL Spanish and English English Only Other and English BEXAR COUNTY SAN ANTONIO MSA PERCENTAGE PERCENTAGE 27.99% 30.14% 69.64% 67.60% 2.35% 2.24% BEXAR COUNTY SAN ANTONIO MSA Source: American Community Survey, Of America s Enterprising Cities U.S. Chamber of Commerce, Sept 2013 # 9 Top 20 Fastest Growing Cities - Forbes, Jan 2013

5 WHO WORKS HERE? The answer is simple: many intelligent people. In fact, over one million in San Antonio s current skilled workforce. Average age Now add another 150,000 students attending 15 area colleges and universities. They represent even higher degrees of skill. The kind your firm can use especially after those skills are honed to your exact specifications via workforce programs at some of the same colleges. Current programs include specialized training for aerospace, business, information technology, cybersecurity, and more. ANNUAL WORKFORCE FIGURES San Antonio MSA Annual Averages YEAR TOTAL CIVILIAN LABOR FORCE Source: Texas Workforce Commission PERCENT GROWTH EMPLOYMENT NO. OF WORKERS UNEMPLOYED UNEMPLOYMENT RATE ,026, % 959,876 66, % ,019, % 943,728 76, % , % 916,219 72, % , % 901,279 64, % , % 898,320 44, % EMPLOYMENT PERCENTAGES BY INDUSTRY INDUSTRY NAICS SAN ANTONIO MSA PERCENTAGE AVG. EARNINGS 21 Mining, Quarrying, and Oil/Gas Extraction 0.41% $94,298 # 2 22 Utilities 0.86% $94, Construction 5.46% $57, Manufacturing 5.28% $62, Wholesale Trade 3.39% $66, Retail Trade 11.64% $34,325 Best Cities for Small Business - National Federation of Independent Business, Jan Transportation and Warehousing 2.91% $58, Information 2.29% $85, Finance and Insurance 6.26% $81, Real Estate and Leasing 1.69% $49, Professional and Technical Services 4.85% $75, Management of Companies and Enterprises 1.05% $128, Administrative and Waste Services 6.49% $36,415 # 6 61 Educational Services 10.83% $45, Healthcare and Social Assistance 15.47% $48, Arts, Entertainment, and Recreation 1.61% $33, Accommodation and Food Services 11.02% $20,192 Best Cities for Good Jobs - Forbes, March Public Administration 5.05% $91,520 Source: Bureau of Labor Statistics & Texas Workforce Commission, Jan - Sept 2013 EMPLOYMENT IN INTERNET TECHNOLOGY OCCUPATIONS San Antonio MSA % Texas % United States %

6 KEEPING JOB GROWTH HIGH AND COST OF LIVING LOW. San Antonio has exhibited positive employment growth and remarkable stability in recent years, even as other areas of the state and country have suffered negative job growth outcomes. Total employment in San Antonio has risen steadily from below 550,000 in early 2005 to more than 800,000 in June Unemployment has remained remarkably steady, never rising above 7.4 percent during this eight-year timeframe. As of October 2013, the unemployment rate for San Antonio is 5.8 percent, compared to 7.3 percent nationwide. San Antonio boasts a lower-than-average composite cost of living among major metropolitan areas nationwide. The cost of living in San Antonio is especially low in the areas of housing, grocery items and utilities. This provides clear potential to benefit the city in the attraction of both its workforce and its student population. COST OF LIVING INDEX San Francisco, CA San Diego, CA Chicago, IL Denver, CO Kansas City, MO Houston, TX Jacksonville, FL Dallas, TX Atlanta, GA Phoenix, AZ Salt Lake City, UT Albuquerque, NM Charlotte, NC Austin, TX Oklahoma City, OK Columbus, OH Higher Index indicates higher cost of living, based on average index of 100 among all U.S. metro areas. San Antonio, TX 88.2 Source: C2ER (ACCRA) Cost of Living Index, Four Quarter Average (Q3, 2012 to Q2, 2013) MEDIAN SALES PRICE OF SINGLE-FAMILY HOMES Metropolitan Area 2012 (In Thousands) San Francisco, CA...$543.8 San Diego, CA... $385.5 Denver, CO... $252.4 Austin, TX... $206.0 Chicago, IL...$175.3 Albuquerque, NM... $170.3 San Antonio, TX... $159.5 Dallas, TX... $159.3 Metropolitan Area 2012 (In Thousands) Charlotte, NC... $156.6 Phoenix, AZ...$147.6 Oklahoma City, OK...$145.0 Kansas City, MO... $142.6 Columbus, OH... $136.5 Jacksonville, FL...$128.2 Atlanta, GA...$101.4 Source: National Association of REALTORS

7 HIGHER EDUCATION IS GROWING AND THRIVING HERE. With 150,000 students at 15 different colleges and universities within a 50 mile radius of the city, San Antonio offers its college-bound residents many options. Since 2004, combined enrollment at these institutions has grown by over 52%. Continuing on its path of expansion, The University of the Incarnate Word has grown by nearly 80%; Texas State University, with over 34,000 students today, has experienced a near 28% increase; and the University of Texas at San Antonio has grown by 17%, as it makes its way to becoming a Tier One school. Meanwhile, enrollment in local community colleges has similarly skyrocketed, with Northwest Vista nearly doubling its enrollment. Through a community-wide effort known as SA2020, Mayor Julián Castro intends to orchestrate one of the greatest turnarounds in education in the United States by providing the community with access to quality education and career opportunities. With an already robust education system, the initiative positions San Antonio s current and future workforce ahead of other major markets. And the results are already paying off. While enrollment in colleges and universities continues to climb, the Alamo City is outperforming the country in increasing the number of graduates with post-secondary degrees. According to IPEDS data from 2008 to 2012, San Antonio experienced a 39% increase in the number of students graduating with a post-secondary degree or certification, while the U.S. increased by only 37%. College/University 2012 Fall Enrollment* Texas State University... 34,229 University of Texas at San Antonio...30,607 San Antonio College...23,282 Northwest Vista College... 16,141 St. Philip s College...10,511 Palo Alto College...8,771 University of the Incarnate Word...8,442 Texas A&M University San Antonio... 4,133 St. Mary s University...3,988 University of Texas Health Science Center...3,294 Our Lady of the Lake University... 2,766 Trinity University...2,525 Wayland Baptist...1,969 Texas Lutheran University...1,317 Northeast Lakeview College * US Dept. of Education: IPEDS # 1 In Texas for Business and Careers - Forbes, March 2013

8 HOW GREEN IS SAN ANTONIO? We are a national leader in renewable energy and are already well on our way to achieving a goal of renewable power equal to 20% of total generation capacity (1,500 MW) by In fact, CPS Energy has already: Become the nation s largest municipally-owned purchaser of renewable energy (883 MW). Been ranked #1 nationally in wind energy capacity. Purchased 44.8 MW of solar power with agreements in place for 400 MW more. Debuted 120 public charging stations throughout the Greater San Antonio area and introduced a pilot program for prepaid electric vehicle (EV) charging. # 9 Top 15 Aspirational Cities - The Daily Beast, July 2013

9 THE UTILITY SITUATION. Every large metropolitan area faces significant current demand and growing future needs for power, water, and telecommunication services. San Antonio is no exception. Luckily for both private and corporate citizens, however, this area is fortunate to have reliable, abundant and affordable sources for all of these. What s more, plans are already in place to grow responsibly and dramatically in capacity as demand increases. ELECTRIC POWER & NATURAL GAS CPS Energy is the nation s largest municipally-owned utility providing both electric power and natural gas. CPS Energy is the exclusive distribution supplier within its certified service territory: a 1,566-square-mile area including Bexar County and portions of Atascosa, Bandera, Comal, Guadalupe, Medina, Wilson and Kendall Counties. CPS Energy is a forward-thinking organization and uses clean energy harvested from wind, solar and landfill gas to power San Antonio with 21st century energy options. CPS Energy is capitalizing on its aggressive clean energy initiatives and energy efficiency programs to meet their goal of achieving 20% of total generation capacity from renewable resources by WATER The Edwards Aquifer is famed for some of the cleanest water in the country and water from this source, as well as multiple area lakes, rivers and aquifers, is provided by San Antonio Water Systems, a major municipally-owned utility. THE TRUTH ABOUT TAXES. Taxes are a reality everywhere you go. But some of the major factors that have led to San Antonio s ongoing economic boom include surprisingly light tax burdens (both for businesses and for individuals), as well as special incentives available for firms locating here. How could this help your firm? The SAEDF staff is available to help guide you through the process of securing information on taxes and incentives for a variety of location scenarios. SALES TAX RATES Texas % San Antonio %* San Antonio Metropolitan Transit Authority (MTA) % San Antonio Advanced Transportation District (ATD) % Bexar County %** San Antonio Area Total Tax Rate % *Texas state law limits the collection of local sales and use tax to no more than 2 percent. San Antonio, a municipality within Bexar County, has a rate of 1.250% included in the San Antonio Area Total Tax Rate. **Bexar County does not impose a sales and use tax. Source: Texas Comptroller NO STATE PERSONAL INCOME TAX Texas does not levy individual income taxes or corporate income taxes. FRANCHISE TAX Texas levies an annual franchise tax on companies with liability protection. The underlying tax base is on a business' margin rather than net income or net worth resulting in a primary tax rate of 1%. Trade businesses engaged primarily in wholesale or retail activities would pay 0.5%. Businesses making less than $1 million in revenue are exempt. INCENTIVES & COST SAVINGS These depend in part on the type of business locating in the area and the expected number of jobs to be created. However, economic benefits and incentives are available from both state and local governments, and may include such specific programs as: Texas Texas Enterprise Fund Emerging Technology Fund Skills Development Fund San Antonio Economic Development Incentive Fund Tax Abatements and Exemptions for Targeted Industries Fee Waivers for Inner City Reinvestment Infill Policy Utility Incentives

10 WHAT S TRANSPORTATION LIKE IN AND AROUND THE CITY? For several centuries, San Antonio s central location and accessible geography have made it a vital crossroads for both commerce and culture. As the city made the transition into the modern age, business transportation and shipping needs increased tremendously, and the facilities and services from highways to rail to air have more than kept up with demand. AIR San Antonio s extensive aviation facilities include: San Antonio International Airport, the primary commercial aviation hub for south central Texas, which averages 260 daily domestic and international departures and arrivals, including 30 non-stop domestic and international destinations. Global Entry Airport. Stinson Airport, America s second oldest general aviation airport. RAIL San Antonio s vibrant rail system is served by: Multiple freight and passenger railroad companies. Numerous private/commercial spurs throughout the region. Burlington Northern Santa Fe and Union Pacific track access. PORT SAN ANTONIO Port San Antonio is a master-planned, 1,900-acre aerospace industrial complex and international logistics platform, centrally located in San Antonio. Features include: Foreign Trade Zone status. An 11,500-ft. runway. Unrivaled multi-rail and multi-highway access. Home to more than 60 businesses and satellite office locations. ROAD The city offers a comprehensive, accessible and free-flowing system of roads and transit services: Three major interregional highways, numerous U.S. and state highways, two major urban loops. Excellent transit service: current bus and paratransit, with bus rapid transit launched in VIA Metropolitan Transit operates one of the best transit systems in the country with a fleet that consists of more than 450 buses. A wide array of motor freight carriers. # 10 - in Global Trade National Federation of Independent Business, Jan 2013

11 INDUSTRY HERE IS MORE DIVERSE THAN EVER. San Antonio s growth ranks high among large Texas cities and has emerged as one of the best environments for business. The city has continued to diversify its industries over the past several decades with healthcare, biomedical and finance prevailing. In fact, the manufacturing industry has a rich history in San Antonio, dating back nearly 300 years. San Antonio is home to many Fortune 500 companies, including Valero, USAA, Tesoro, Clear Channel and NuStar. In 2003, Toyota Motor Corp. chose San Antonio as the location of its new manufacturing plant, which generated over 2,000 jobs and produces 150,000 trucks annually. SA2020 is a community-wide effort that promotes areas of prioritized industry growth, and works to improve San Antonio s quality of life through areas such as transportation, education, and arts and culture. SA2020 s focus on economic competitiveness seeks to maintain steady job growth in traditional employment sectors, as well as promote growth in industries such as aerospace/aviation, bioscience/healthcare, new energy/green industries and information technology/information security. The collective nature of this effort aims to unite the community as it moves forward to For more information on these industries and others in San Antonio, visit sanantonioedf.com/industry-clusters. AEROSPACE / AVIATION The local aerospace industry includes a range of businesses that manufacture aircraft equipment and parts, service and repair aircraft, produce and distribute transportation equipment and supplies, provide both scheduled and unscheduled air transportation, and operate flight schools. Industry Highlights: According to a 2011 study by Trinity University, the economic impact of the aerospace industry was $5.4 billion. The local aerospace industry has grown 440% over 20 years, 260% over the past 15 years, and almost 75% over the past 10 years. In 2010, the Texas Workforce Commission reported 8,558 aerospace employees in the San Antonio region. When the military workforce is added, it brings the estimated employment for 2010 to 13,616. Jobs in the aerospace industry are among the best paying in the area. According to the Texas Workforce Commission, the average wage of employees in 2010 was $58,729. Programs like the Alamo Area Aerospace Academy, operating in close cooperation with industry, have created essential pipelines between high school and aerospace employers.

12 BIOSCIENCE / HEALTHCARE With San Antonio s diverse mix of educational institutions, nationally-recognized healthcare systems, cutting-edge biotech companies and successful national corporations, the bioscience and healthcare industry is a dominant force in the city s economy. The industry includes both direct and indirect healthcare services. Direct healthcare services include care provided in hospitals, physicians offices, nursing homes and various other outpatient and ambulatory care settings. Indirect industries complement and support the provision of medical and healthcare. These industry sectors include health insurance carriers, pharmaceutical companies, medical equipment manufacturers, civilian and military medical education, biomedical research organizations, residential care and social service providers, and a variety of other related endeavors. Industry Highlights: In 2011, according to a Trinity University study, the economic impact of the Bioscience and Healthcare industry was more than $29.2 billion. The industry paid $7.5 billion in wages and salaries to 156,205 employees in The Bioscience and Healthcare industry has added nearly 40,000 net new jobs over the past decade, fueling San Antonio s growth. # 4 - In Boomtowns Bloomberg, Apr 2013

13 NEW ENERGY ECONOMY / GREEN INDUSTRIES San Antonio is committed to being a leader in investment and training in the green economy. Mayor Julián Castro has formed the Green Jobs Leadership Council, a committee of high-level individuals to recommend public policy that will help create jobs in the new green economy. In addition to CPS Energy s efforts to grow the renewable energy sector, San Antonio is also a national leader in green research technology, and home to long-established research entities such as the Texas Sustainable Energy Research Institute at the University of Texas at San Antonio. INFORMATION TECHNOLOGY / INFORMATION SECURITY San Antonio s IT / IS sector has come to be recognized as a national leader. The state of Texas is #2 in the nation for science and technology. And according to Computerworld Magazine, San Antonio is #2 in the nation for information assurance, behind only Washington, D.C. The city s association with the military and with scientific research has helped create a unique combination of cyber resources useful to many business operations. In 2009, the 24th Air Force activated their new Cyber Command Headquarters at Lackland AFB. The city offers the kind of network connectivity needed to support all security levels of Global Cyber Operations such as the Joint Worldwide Intelligence Communication System and the National Security Agency Nets, DISA GIG Network (Defense Information Systems Network) and GIG-BE (Global Information Grid Bandwidth Expansion), which helps link major government intel community sites. San Antonio also has 80-plus companies specializing in defense technology.

14 INFORMATION TECHNOLOGY IN SAN ANTONIO. The information technology (IT) industry itself is both large and diverse, including cybersecurity, software development, cloud services, managed hosting, and the production of a wide variety of IT related products. A small sampling of IT companies that call San Antonio home includes: Appddiction Studio Avnet CyrusOne Delta Risk Denim Group Digital Defense FEDITC GlobalSCAPE Innové KGS L-3 Communications Holdings Maxim Integrated Products MDI Security Systems Microsoft Mobius Partners NCI NewTek Rackspace SecureInfo SecureLogix Sigma Solutions Taurean Group # 3 - New Tech Hot Spots Forbes, Jan 2013

15 We invite you to learn more about San Antonio online at Enjoy a quick and informative video introduction 6 super-short film segments found under the video tab. Or call for more information.

16 602 E. Commerce St. San Antonio, TX P F