The Texas Advantage. Canada.

Transcription

1 The Texas Advantage Canada

2 A Letter from Texas Governor Rick Perry Texas is dedicated to supporting an environment of job growth, opportunity, and prosperity for the people of the Lone Star State. Our pro-business climate continues to bring quality jobs to the state, offering employers an unparalleled competitive edge, with the lowest per capita tax rates in the nation, no personal income tax, proximity to strategic markets, cutting-edge infrastructure, excellent schools, and a skilled workforce. That s helped Texas remain a prime destination for employers and job-seekers alike. We ve made inroads in almost every industry sector, from biotech and computer science, to energy and finance. We ve attracted expansions for visionary companies like Facebook, Apple, and Electronic Arts, among others. In classrooms, on assembly lines, in laboratories, on farms, and in office buildings, hard-working Texans are turning their dreams into realities. Naturally, that s meant a lot more jobs for Texans more than half a million private-sector jobs added over the last two years alone, and a total of nearly 1.4 million private-sector jobs over the last 10 years. These are jobs in all categories and for people in all stages of their careers, from part-time, entry-level work to executive positions in the corner office suite. However, we cannot rest on our laurels. Other states are aggressively following our lead and embracing the concept of vigorous competition, courting major employers, fostering their hightech sectors, and investing in their workforce. Put simply, they want to beat us at our own game. That s why we re looking to not only keep taxes low, but to further ease the tax burden on Texans. We need to continue our practice of not spending all the money, of separating our wants from our needs and making the tough decisions regarding every taxpayer dollar. We are also dedicated to taking steps to improve our infrastructure needs, ensuring that anyone coming to Texas can count on adequate transportation systems, power, and water for generations to come. Texas is not merely strong, but exceptional. We are a testament to the power of freedom, to the entrepreneurial spirit unleashed from government interference. We believe these ideals are sturdy enough and strong enough to advance any and all Texans, regardless of race, color or creed. We embrace a can do culture for every citizen willing to work hard and pursue a dream. Those ideals propel us forward as we stand as a national example that hard work can breed success regardless of one s station in life, that freedom is the best antidote to poverty, and that each individual deserves to inherit a state of equality and opportunity. I invite you to come to Texas, where we re ready to work with you. No matter the industry, the Lone Star State is committed to doing what it takes to keep Texas Wide Open for Business. Sincerely, Rick Perry Governor of Texas

3 Texas & Canada Trade Texas knows how to maintain healthy trade relationships. In 2012, Texas topped U.S. exports for the 11th year in a row with over $ billion. ÕÕ Canada was Texas 2nd largest export destination in 2012 with over $23.85 billion in exports. Texas top exports to Canada were chemicals; computers and electronics; transportation equipment; machinery (except electrical); and petroleum and coal products. ÕÕ Canada was Texas 27th largest import source country in Texas $1.54 billion in Canadian imports included mineral fuels and oils; organic chemicals; electric machinery; industrial machinery (including computers); and medical equipment (including optics and photo). Foreign Direct Investment According to Bloomberg & fdi Markets' combined data, between 2003 and 2013, Canadian companies recorded ÕÕ 4,787 U.S. investment projects and $ billion in FDI, including ÕÕ Texas' 380 investment projects and $44.78 billion in FDI. In 2012, Kelso Technologies (USA) Inc. added 27,000 square feet to their valve assembly plant in Bonham that opened in GuestLogix, Inc. opened its U.S. headquarters in Dallas in The technology company provides airlines with in-flight point-of-sale tools. Creating Jobs in Texas There are more than 110 Canadian companies with operations in Texas including Village Farms, CGI, Bombardier, and RBC Wealth Management. Texas Exports to Canada Texas Imports from Canada 7% 29% 12% 18% 16% 17% Chemicals Computers & Electronics Transportation Equip. Machinery Petro & Coal Products Others 15% 5% 8% 11% 16% 45% Mineral Fuels & Oils Organic Chemicals Electric Machinery Industrial Machinery Medical Equipment Others Office of the Governor Economic Development & Tourism Division P.O. Box Austin, Texas U.S.A (512)

4 Economic Comparison Texas Canada Land Area: 261,231 sq. miles 3,855,171 sq. miles (676,585 sq. km) (9,984,670 sq. km) Population: 26.0 million 34.6 million Pop. Growth Rate: 3.6% 0.8% GDP: $1.4 trillion $1.8 trillion GDP Rank: 13 th in the world* 11 th in the world Labor Force: 12.8 million 18.9 million Unemployment Rate: 6.5% 7.3% Exports: $264.7 billion $462.9 billion Export Commodities: petroleum & coal products chemical products computers & electronics machinery (not electrical) transportation equipment motor vehicles & parts industrial machinery aircraft plastics telecommunications equip. chemicals fertilizers Imports: $377.9 billion $474.8 billion Import Commodities: mineral fuel electrical machinery industrial machinery automobiles machinery & equipment motor vehicles & parts crude oil chemicals electricity iron & steel products Airports: Freight Railways: 10,384 miles (16,711 km) 28,926 miles (46,552 km) Public Roadways: 311,249 miles (500,907 km) 258,242 miles (415,600 km) Ports: 16 9 * If Texas were a country For more information on doing business in Texas, please contact: Jose Romano International Business Manager jromano@gov.texas.gov (512) Shirley Temple Regional Director - Americas & Europe stemple@gov.texas.gov (512) Office of the Governor Economic Development & Tourism Division P.O. Box Austin, Texas U.S.A (512)

5 Texas is a state where a dream can be put to work. - Governor Rick Perry Best State for Business America s Top State for Economy & Infrastructure 2012 State of the Year A Top State for Fortune 500 HQs 2012 Governor s Cup Winner & Most Competitive State Winner Texas dominates Best Cities for Good Jobs Texas is the birthplace of......and while these companies were founded in Canada......all have major locations in Texas. TexasWideOpenForBusiness.com

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7 STATE-TO-STATE COMPARISON July 2013 Bouncing Back from Recession Texas has over half a million more jobs today than it did before the recession (January 2008 vs. June 2013), while many other states are still climbing out of a deep hole. New York +84,600 Jobs Illinois -208,700 Jobs California -487,600 Jobs Texas +606,800 Jobs Florida -386,300 Jobs Texas Job Growth Sets the Pace Over the past year, Texas employment has grown the fastest of the 10 most populous states. Source: U.S. Bureau of Labor Statistics Texas +2.8% Georgia +1.9% California +1.8% Florida +1.7% North Carolina +1.5% Michigan +1.3% New York +0.9% Illinois +0.8% Pennsylvania +0.6% Ohio +0.3% Net Job Growth (%) 0.0% 1.0% 2.0% 3.0% Source: U.S. Bureau of Labor Statistics

8 Houston Leads All U.S. Metros in Total Exports In 2012, Houston was the No. 1 U.S. metropolitan area for exports, surpassing New York City for the first time. As a whole, Texas has been the top exporting state for 11 consecutive years. Houston, TX New York City, NY Los Angeles CA Detroit, MI Seattle, WA Miami, FL Chicago, IL Dallas-Ft. Worth, TX San Jose, CA Minneapolis, MN Source: U.S. Department of Commerce Unemployment Rates in the Biggest States In June 2013, Texas had the lowest unemployment rate among the ten most populous states. 10.0% 9.0% Illinois North Carolina Michigan Georgia California 8.0% 7.0% National Unemployment Rate 7.6% New York Pennsylvania Ohio Florida Texas 6.0% Source: U.S. Bureau of Labor Statistics

9 Infrastructure Texas offers superior transportation and logistical advantages. The state s central location and state-of-the-art transportation network provide timely access to domestic and global markets via air, land, and sea. Texas is home to American Airlines and Southwest Airlines, two of the largest airlines in the world. More than 10.9 million tons of freight were shipped through Texas 20 intermodal facilities in In 2011, Texas 46 railroad operators transported million tons of freight. Houston is the top U.S. exporting market. The Houston-Sugar LandBaytown area exported $110.3 billion in Texas is the only state with its own power grid and is not subject to federal regulation over electrical transmission. Fort Worth s Alliance Airport at the Alliance Global Logistics Hub is the world s first purely industrial airport. Select Companies in Texas For more information on doing business in Texas, visit us online at /TexasWideOpen 07.13

10 Infrastructure Fast Facts 2 Logistics Complexes Fort Worth s Alliance Global Logistics Hub and San Antonio s Port San Antonio integrate high-capacity industrial airports, Class I rail terminals, and direct interstate highway access. 46 Freight Railroads Texas 46 freight railroads travel on 10,425 miles of track, the most in the United States. 624 Miles of Coastline Texas coastline is dotted with over 970 wharves, piers, and docks handling waterborne freight. #1 Installed Wind Capacity Texas leads the nation in installed wind capacity (12,214 MW), and is home to two of the three largest wind farms in the western hemisphere. 26 Commercial Airports Texas has over 380 airports including two of the world s busiest, Dallas-Fort Worth International (DFW) and George Bush Intercontinental (IAH) in Houston. 11 Interstate Highways Over 311,249 miles of public roads run through Texas, more than any other state. 16 Ports Of call Texas 16 ports include 11 deep-water ports with channels at least 30 feet deep. 4.8 Million Barrels Texas 27 refineries produce 4,761,495 barrels of crude oil a day, and the state leads the nation in crude oil production and refining. TexasWideOpenforBusiness.com

11 It s easy to get around in Texas. Over 311,249 miles of public roads run through Texas, more than any other state, including 11 primary interstate highways and seven auxiliary interstates. These major thoroughfares include international routes (I-35 to 1-29 and under construction), coast-to-coast routes (I-10 and I-20), and even intrastate routes (I-2, I-27, I-37, and I-45), providing direct access to some of the nation s biggest cites. Interstate Highway System in Texas

12 Texas offers superior transportation and logistical advantages. The state s central location and state-of-the-art transportation network provides timely access to domestic and global markets. I-69 will someday stretch 1,600 miles from Canada to Mexico. Of the 650 miles that will run through Texas, 416 miles have already been upgraded to freeway standards. Texas by Air, Land, and Sea

13 Trade & FDI Foreign direct investment (FDI) includes significant investments by foreign companies, such as construction of production facilities or ownership stakes taken in Texan companies. FDI not only creates new jobs, it can also lead to an infusion of innovative technologies, management strategies, and workforce practices. Texas is #1 in exports. In 2012, the Lone Star State led the U.S. for the 11th year in a row with over $264.7 billion in exports. Texas top 2012 export destinations include Mexico, Canada, China, Brazil, and the Netherlands. Texas top exports are petroleum and coal products; chemicals; computers and electronics; machinery; and transportation equipment. If Texas were a nation, it would be ranked 13th based on the 2012 Gross Domestic Product (GDP). Texas is #2 for jobs at U.S. subsidiaries of global companies, insourcing 428,100 jobs in Since 2008 there have been 504 FDI projects in Texas, creating 46,000 jobs and $38 billion in capital investment. Selection of Global Companies Doing Business in Texas For more information on doing business in Texas, visit us online at /TexasWideOpen 07.13

14 Texas leads the nation with 32 foreign trade zones (FTZs), more than any other state. FTZs are the domestic equivalents of free-trade zones. FTZs promote the international competitiveness of U.S.-based businesses because FTZ activities primarily involve domestic operations combining foreign and domestic inputs. Foreign Trade Zones in Texas

15 Incentives & Financing Texas takes the initiative to invest in its future by offering competitive incentives to companies who are creating jobs and driving innovation in Texas. The following incentives are the most commonly utilized state offerings, for more details on any of the following programs/funds, visit Texas Enterprise Fund The Texas Enterprise Fund (TEF) is the largest deal-closing fund of its kind in the nation. The fund is used as a final incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option. Texas Emerging Technology Fund The Texas Emerging Technology Fund (TETF) provides Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies by offering grants to recruit the best research talent in the world and to help companies take ideas from concept to development to ready for the marketplace. Workforce Development Workforce training programs provided through the Texas Workforce Commission. Skills Development Fund: Financing for customized job training. Self-Sufficiency Fund: Financing to provide training for employment opportunities primarily for individuals dependent on public assistance. Grants From public infrastructure projects in non-entitlement communities to cancer research and laboratory facility construction, several types of grants are available to Texas communities and businesses. Texas Capital Fund Infrastructure Program: Provides financial resources to non-entitlement communities for public infrastructure projects needed to assist businesses. Texas Capital Fund Real Estate Development Program: Loans provide capital to Texas communities at favorable market rates. Cancer Prevention and Research General Obligation Bonds: Funding opportunities for promising cancer research and prevention programs Defense Economic Adjustment Assistance Grant Program: A job creation grant program designed to assist adversely and positively impacted defense communities. Moving Image Industry Incentive Program: Cash production grants between 5 and percent of qualified in-state spending for film, television, commercial, and video game projects.

16 Tax Incentives Texas and local communities offer a variety of tax incentives and innovative solutions for businesses expanding in or relocating to Texas. Programs include Enterprise Zone sales tax refunds, manufacturing sales tax exemptions, property tax value limitation, and freeport exemptions. Texas Enterprise Zone Program: State sales and use tax refunds for businesses in economically distressed areas of the state. Manufacturing Exemptions: State sales and use tax exemptions for manufacturers on tangible property, natural gas, and electricity. Value Limitation and Tax Credits (Texas Economic Development Act): An appraised eight-year limitation to the local school district maintenance and operations tax portion of the property tax and a tax credit. Freeport Exemptions: Tax exemption for certain goods that enter and leave Texas within 175 days. Pollution Control Equipment Incentive: Tax exemption for property that is for pollution control purposes. Renewable Energy Incentives: Tax exemptions and deductions for solar, wind, ethanol, and biodiesel energy. Defense Economic Readjustment Zone Program: A tax refund program for business recruitment and job creation in adversely impacted defense-dependent communities. Financing Texas is committed to providing and facilitating funding for companies and communities with expansion and relocation projects in the Lone Star State. Asset-based loans for companies, leveraged loans to communities, and tax-exempt bond financing are just a few means of obtaining the capital necessary for a successful project. Texas Product/Business Fund: Asset-backed financing for companies in Texas to promote job retention and creation. Texas Leverage Fund: Financing that allows communities to leverage future sales tax revenues to support job retention or creation. Industrial Revenue Bond Program: Bonds provide tax-exempt or taxable financing for eligible industrial or manufacturing projects. Texas Military Value Revolving Loan Fund: Financing provided to defense communities for job creation and infrastructure projects. CAPCO: Providing alternative sources of venture capital to Texas entrepreneurs. For more information on doing business in Texas, visit us online at /TexasWideOpen 07.13

17 Economic Strength Fast Facts $0 No Personal Income Tax With no corporate income tax or personal income tax, Texas has one of the lowest tax burdens in the country. 52 Fortune 500 Companies Texas is home to 52 Fortune 500 HQs, including the #2 company, ExxonMobil. $65 Billion Travel Spending Texas has the third largest share of domestic tourism. In 2012, Texas tourism accounted for 564,000 jobs and over $65 billion in direct travel spending. #1 Exporting U.S. state In 2012, Texas led the United States in exports for the 11th year in a row with over $264.7 billion in exports Million Labor Force Texas has million people in the civilian labor force, the 2nd highest in the country. <100 Cost of Living Index Texas is one of the most affordable states to live and do business. The ACCRA COL Index for most metro areas in Texas is lower than the national rate of 100. #1 Relocation State Texas topped Allied Van Lines Magnet States list for the 8th consecutive year with a net relocation gain of 1,585 families in thousand new jobs created Texas was the top state for job growth in 2012 with 337,500 new jobs. TexasWideOpenforBusiness.com

18 Sports Fast Facts 3 MLB Pennants Texas is home to the 2010 and 2011 AL Champion Texas Rangers and 2005 NL Champion Houston Astros. 7 NBA Championships The 2011 Champion Dallas Mavericks, the 4x Champion San Antonio Spurs, and the 2x Champion Houston Rockets all call Texas home. 1 Formula1 racetrack Circuit of The Americas in Austin hosts the country s only F1 race and the Texas Motor Speedway near Fort Worth hosts two NASCAR Sprint Cup race weekends each year. >1000 races each year There are over 1,000 running events and triathlons held in Texas each year. 5 Super Bowl Trophies Texas is home to the 5x Super Bowl Champion Dallas Cowboys and the Houston Texans. 7 Pro Golf tour Stops The PGA Tour makes four tour stops in Texas, while the Champions Tour makes two stops and the web.com Tour makes one stop. >100 thousand fans fill dkr DKR - Texas Memorial Stadium in Austin has a capacity of 100,119, and is the 6th-largest collegiate stadium in the country and the largest in the southwest. 2 mls teams Two of the country s 16 MLS teams call Texas home, the Houston Dynamo and FC Dallas. TexasWideOpenforBusiness.com

19 Texas is a state where a dream can be put to work. - Texas Governor Rick Perry Texas Wide Open for Business is more than just our motto. It s a commitment to create and sustain an environment that fosters business and entrepreneurship, trains the workforce of the future, and helps turn a dream into a reality. No matter what the industry, we are committed to your growth and success. Come to Texas, we re Wide Open for Business. To learn more about opportunities in Texas visit TexasWideOpenforBusiness.com

20 This publication is sponsored by the Texas Economic Development Corporation in partnership with: For more information on doing business in Texas, visit us online at /TexasWideOpen