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If Houston sticks with O&G at this point, it is best to get firms associated with the intel of the field (engineering for new ways to discover oil, or new ways for clean up).
I happen to agree with most everything you said there....I don't think the HERO ordinance would bring business to Houston...but I have no issue whatsoever with gay people having the right to be recognized by the state and federal government for insurance, and other tax issues.
I took issue with the financial penalties in the HERO ordinance, and anyone who thinks TECH companies or any other company of value would not move to Houston b/c of an ordinance. That is just silly propaganda nonsense.
When you look at where in Texas, Tech companies from out of state (Cali) are locating it is obvious that they are showing a marked preference for Texas cities that have ERO ordinances. Its not just coincidence.
"California saw most of its departures from the southern part of the state and the middle of the state — from the San Francisco Bay area straight across the Central Valley into what’s called Gold Country.
Of all U.S. cities, Austin was No. 1, gaining 86 California corporate sites or expansions. Dallas ranked sixth (20 companies), San Antonio was No. 8 (16), Houston was No. 11 (11), Plano and Irving tied with Hillsboro, Ore., for No. 13 (9) and Fort Worth tied with Tempe, Ariz., for No. 14 (8)."
Plano had 9 relocations to Houstons 11 and Plano is 1/10th of Houston's size. Plano went out of its way to pass a ERO because they want that business and are pragmatic about attracting relocations.
And it's not because these cities might have more of a base infrastructure to easily placate these companies? Houston isn't much known for tech. Is Dallas that much young and hipper and more progressive than Houston?
Plano had 9 relocations to Houstons 11 and Plano is 1/10th of Houston's size. Plano went out of its way to pass a ERO because they want that business and are pragmatic about attracting relocations.
And there is soooo much truth to this. I lived in Plano when the ERO was passed. The residents were mixed. I and my friends supported it but a lot of people didn't. However, Toyota and Liberty Mutual basically told the city to get it done and they did. Now that the jobs are pouring into the area no one in Plano cares anymore.
So what has Dallas done to attract other business? It seems to be gaining tech companies and fosters more start ups too. What can Houston do to be more like Dallas?
Can't really win by replicating what others have done. You'll always play catch up and never be the front runner. There needs to be greater investment in new or growing industry sectors and a system in place for funding those companies. One of the benefits that Silicon Valley has is strong universities, including Stanford and Cal. Universities are frequently centers of innovation. New ideas began with education...combine that with the collective experience of other entrepreneurs and business owners and you create an ecosystem.
Rather late now, but when O&G was doing well, there should have been an concerted effort to get some of the beneficiaries of the boom to fund research grants and fellowships at local schools. Of course, many of those folks very conservative and possibly would not be interested in funding programs that aren't related to their area of expertise.
Another problem here is that even if you have an idea, you'll probably get more money and financial support by moving to a center known for innovating in that area. If you're doing software you go to Silicon Valley. If you're doing pharma or biomedical, you go to Boston or San Diego. If you're doing Media or Fashion you go to LA or NYC.
Given its intent to launch from Boca Chica, I'm hoping SpaceX moves some manufacturing here. Given how quickly the Company is growing, I can't imagine that it will fabricate rockets in Boca Chica or anywhere else in South Texas. Too many challenges in recruiting talent to those areas. SpaceX + NASA = would be a boon for innovation in the space technology arena. Launch cost reduction will lead to growth in the market for small satellites. No reason some of that innovation and design work can't take place here, what with all the O&G engineering staff and skilled trades with fabrication experience from work in the petrochemical industry. Plenty of room for growth and many people with expertise in that area would move for the lower cost of living.
Can medical expand anymore? Aren't we also tops for shipping?
For strong growth in medical you need local jobs with good health insurance, which O&G has provided. Luckily, Obamacare will keep some of that going even if the unemployment rate increases, because many people can now keep their insurance even if they suffer job loss.
As far as the port goes, you get a lot of jobs from shipping and logistics. But what we really need are services or products that can be exported. LNG, plastics, etc. Unfortunately, a lot of our manufacturing has moved to China. Hopefully, greater use of automation will bring some of that advantage back to the states.
Oil is going to boom and bust. It always has and it always will. The economical stability of our city depends on our leaders doing everything they can to lure non O&G businesses to Houston.
I agree 100%. And that's not to say they haven't done that. Since the 80s. They've came a long way but there's still more work to be done. Currently at around half of the economy being directly related to O&G, compared to 80% in the 80s. However there's still plenty to be done. And in all honesty, they did a really good job in the early 90s and going onto the 2010 which is what has lowered that # down, but it seems during this decade in the 2010s, they have let their guard down. Hopefully this serves as a great wake up call and they never ever ever ever take their eyes out.
There's a few projects in Houston that are in the means of lowering the #, but the diversification never stop.
And it's not because these cities might have more of a base infrastructure to easily placate these companies? Houston isn't much known for tech. Is Dallas that much young and hipper and more progressive than Houston?
Most of the relocations are going to the North Dallas suburbs, the masterplanned business parks north of Fort Worth, and the Las Colinas area. The City of Dallas has become more of a minor player in the relocation business, somewhat of an urban amenity for the hotter suburban locales that have become the centerpiece of the North Texas economy. Those suburbs, while certainly sophisticated in many ways, aren't known as terribly young and hip, at least in the Austin sense. They're more perceived as an endless mass of middle class and affluent modern suburbia, which is highly attractive to many, regardless of whether others find that bland. I have to wonder if the contrast between the huge mass of the northern suburbs up there and Houston's relatively thinner outer ring of desirable suburbs, combined with Houston's more traditionally blue collar image, works to Houston's disadvantage for many companies.
However, North Texas' two greatest advantages both related to transportation: it is a mighty logistics hub (highways, freight rail, and freight air), and it has a gigantic commercial airport. It is also perceived as being located in the "center" of the country more so than Houston, for some reason, making travel times convenient.
Plus, it has been the top white collar / finance center between the Mississippi River and the West Coast for many decades. And, it has long been known for shopping - don't underestimate the importance of wives'/daughters' opinions on male decision-makers. (Sorry if that's perceived as politically incorrect, it's just reality.) It was lucky to have Ross Perot (EDS) and Texas Instruments to build a reputation for tech since the 1970s. Some niche industries, like automobile and helicopter manufacturing (interestingly, blue-collar industries), have been there for a long time. Finally, it lost most of its energy industry to Houston (though Fort Worth still has a fair amount), so it doesn't get as consumed by O&G booms as Houston does.
Most of the relocations are going to the North Dallas suburbs, the masterplanned business parks north of Fort Worth, and the Las Colinas area. The City of Dallas has become more of a minor player in the relocation business, somewhat of an urban amenity for the hotter suburban locales that have become the centerpiece of the North Texas economy. Those suburbs, while certainly sophisticated in many ways, aren't known as terribly young and hip, at least in the Austin sense. They're more perceived as an endless mass of middle class and affluent modern suburbia, which is highly attractive to many, regardless of whether others find that bland. I have to wonder if the contrast between the huge mass of the northern suburbs up there and Houston's relatively thinner outer ring of desirable suburbs, combined with Houston's more traditionally blue collar image, works to Houston's disadvantage for many companies.
However, North Texas' two greatest advantages both related to transportation: it is a mighty logistics hub (highways, freight rail, and freight air), and it has a gigantic commercial airport. It is also perceived as being located in the "center" of the country more so than Houston, for some reason, making travel times convenient.
Plus, it has been the top white collar / finance center between the Mississippi River and the West Coast for many decades. And, it has long been known for shopping - don't underestimate the importance of wives'/daughters' opinions on male decision-makers. (Sorry if that's perceived as politically incorrect, it's just reality.) It was lucky to have Ross Perot (EDS) and Texas Instruments to build a reputation for tech since the 1970s. Some niche industries, like automobile and helicopter manufacturing (interestingly, blue-collar industries), have been there for a long time. Finally, it lost most of its energy industry to Houston (though Fort Worth still has a fair amount), so it doesn't get as consumed by O&G booms as Houston does.
I think that that plays a part. I think that if there was a "City of Bear Creek", "City of Cypress", "City of Klein", "City of Atascocita", "City of West Houston" (for unincorporated areas west of Highway 6) etc., that the hodge-podge development you get in the unincorporated areas would instead have been built in a more organized fashion. What it's going to take now is the increasing growth in suburbs that are their own city (Pearland, League City, Sugar Land, etc.) to continue to grow and create their own identities that would attract companies outside of energy to them.
Houston city leaders dropped the ball in a few places. For example, letting United get away. How nice would it be right now to have United here as a HQ during this bust? Losing Astroworld for nothing, thus denting the tourist industry (as small as it may be). When Mayor Turner came out saying he wants a theme park in Houston recently, San Antonio Business Journals had an article about how the tourism there has gone up since Astroworld closed since Houstonians wanting their coaster fix have to leave the metro now (literally only two coasters for a metro area of 6.7M).
I feel like Houston may have had more forward thinking leaders back in the day that vanished after NASA came. Why is there not a better amusement park component to NASA? The Gulf Freeway could be an entire tourist strip from CL to Galveston. Space X should be in Houston already. City leaders shouldn't fight a new university being built in the core. Rail transit is a must inside the Beltway. If Orlando can be a host to tourists with its weather, then Houston easily could if there was more of an effort to built theme parks here. In the middle of the country it can attract from all of the Central timezone, plus Central/South America.
Not sure what would make a bank or insurance company want to expand operations in Houston when there is a large base in the Dallas suburbs. Or why would a tech company want to expand in Houston, when their is a strong base in Austin? I think Houston can take some of the call center jobs from San Antonio or something, but the future of Houston is in the STEM fields, not administrative jobs like Dallas. Things should be built and shipped from here. A lot of these engineers were designing technologies that would make the techies in Austin or Dallas weak in the knees because it doesn't compare in magnitude. The talent is there in Houston.
I feel like Houston has kind of gotten the shaft from the state and country for that matter. It's as if they said "well, energy can be so robust, so what else do you guys need down there?? We can't let you have banking or tech/IT too!". Could you imagine if Houston had a strong banking/insurance/tech/telecom (just one) to go along with the energy/medical fields? It'd be a wrap. Houston would have two million more people in the metro area.
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