ECONOMIC OUTLOOK: TEXAS AND THE AUSTIN REGION. Texas Office of the Governor Economic Development and Tourism Division

Transcription

1 ECONOMIC OUTLOOK: TEXAS AND THE AUSTIN REGION Texas Office of the Governor Economic Development and Tourism Division

2 Market Texas as a leading business location Advertising and business recruitment trips Assist companies looking for sites or buildings in Texas Provide business incentives

3 TEXAS AND THE OTHER 49

4 Bouncing Back from Recession Losses January 2008 vs. Today Gains New York +84,600 Jobs California -487,600 Jobs 78% Jobs regained nationwide Texas +606,800 Jobs Florida -386,300 Jobs

5 Past Decade of U.S. Job Growth Net New U.S. Jobs by Location, Texas: 30% New York: 8% California: 5% Florida: 5% Washington: 5%

6 Current Job Growth Rates 10 Largest States, Past Year Ohio +0.3% 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% Net Job Growth (%) Texas +2.8%

7 Housing Boom Residential Building Permits (2013 to date) 120, ,000 80,000 60,000 40,000 Multi-Family Single Family 20,000 - #1 Houston #3 DFW #7 Austin

8 Exports by State $300 $250 Top 10 States by Value of Total Exports (2012) $200 $ Billions $150 $100 $50 0

9 INSIDE THE TEXAS GROWTH

10 Unemployment Rates Around Texas Midland 3.5% Odessa 4.3% Amarillo 5.0% Abilene 5.5% Austin 5.6% Lubbock 5.7% Longview 6.0% Corpus Christi 6.3% San Antonio 6.4% Dallas-Fort Worth 6.5% Houston 6.5% Waco 6.6% Laredo 7.3% Killeen-Temple 7.5% El Paso 9.4% Beaumont-Port Arthur 10.2% Brownsville 10.6% U.S. 7.3%

11 Texas Job Growth by Sector Average Annual Growth Rate ( ) Oil & Gas Extraction Professional & Business Services Accomodation & Food Services Construction Wholesale Retail Health Care Financial Activities Computer & Electronics Manufacturing All Other Manufacturing Government 0.6% -0.2% 4.6% 4.2% 3.9% 3.6% 2.6% 2.9% 2.7% 1.9% 9.4% -2% 0% 2% 4% 6% 8% 10%

12 Texas Crude Oil Production Spikes Texas Crude Oil Production (Million barrels per day)

13 Texas Exports by Sector Petroleum Products (Refined Fuels) Other 23% $61.2 billion 21% $56.9 billion Transportation Equipment 9% $25.1 billion 18% $47.0 billion Chemicals 11% $29.5 billion 17% $45.1 billion Machinery Computer & Electronic Goods

14 Computer & Electronics Manufacturing Top States by Computer & Electronics Sector Output $ Millions 60,000 50,000 40,000 30,000 20,000 California Oregon Texas Massachusetts New York 10,000 - Oregon overtook Texas in 2007

15 Tech Goods vs. Services 140,000 Employment in Texas by Sector Employment 120, ,000 80,000 60,000 40,000 IT Services Computer & Electronics Manufacturing 20,000 -

16 Texas Manufacturing Outlook Survey Source: Federal Reserve Bank of Dallas

17 THE AUSTIN ECONOMY

18 Austin Job Growth No. 1 U.S. metro for percentage job growth over past 5 years Rebounded to pre-recession job levels by 2010 and now far beyond

19 Austin Job Growth by Sector Average Annual Growth Rate ( ) Professional & Business Services Construction 7.7% 7.7% Computer & Electronics Wholesale 5.5% All Other Wholesale 2.1% Health Care Accomodation & Food Services 4.2% 3.9% Computer & Electronics Manufacturing 1.8% All Other Manufacturing Financial Activities Government 0.0% 0.3% -0.1% -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

20 Austin s Knowledge Economy Top 10 U.S. Metros by Patents Issued (2011) San Jose (Silicon Valley) San Francisco-Oakland New York City Los Angeles Boston Seattle San Diego Minneapolis-St. Paul Chicago Austin Top 3 Austin Patentees Total Patents

21 Austin s Knowledge Economy Top 10 U.S. Metros for Venture Capital Investment (2012) Rank Metro Area Investment ($ Millions) 1 San Francisco-Oakland $6,896 2 San Jose (Silicon Valley) $3,985 3 Boston $3,101 4 New York City $2,269 5 Los Angeles $1,677 6 San Diego $1,134 7 Seattle $886 8 Austin $626 9 Chicago $ Washington, D.C. $484 Source: National Venture Capital Association

22 CURRENT STATE INITIATIVES

23 Business Incentives R&D Tax Credit (coming 2014) Franchise tax credit or sales tax exemption for equipment, materials, or software used for R&D purposes Data Center Tax Incentive (new 2013) Data centers of certain size eligible for sales tax exemption on equipment purchases

24 Business Incentives Texas Enterprise Fund (TEF) To attract expanding or relocating corporate projects $505 million awarded to 120 companies since 2003 Nearly 70,000 jobs committed

25 Current State Initiatives Texas Emerging Technology Fund $203 million invested in 140 startups statewide since 2005 Additional $50 million appropriated to the fund in 2013

26 Current State Initiatives State Water Plan Prop 6 Constitutional Amendment Pull $2 billion from Rainy Day Fund for water project loans Nov. 5, 2013 vote Austin s Top 3 Industrial Water Users

27 Eric Clennon Manager of Business Research Economic Development and Tourism Division Office of the Governor