How rough is the economy out there? (Houston, Dallas: employment, earthquake)

[TurtleCreek80]

Originally Posted by DabOnEm

I wouldn't discount Houston long-term. Companies are still relocating and expanding down there. FedEx just announced they are building their largest NA distribution center there for example.

Yes, good catch, I should have expanded on my thoughts re: long-term in my last post. IF Houston can really commit to a strategy of diversifying its economy significantly, then long-term prospects are stable (stability being the key to a healthy economy vs the violent peaks and valleys seen in the energy industry). Dallas learned its lesson in the 1980's; hopefully Houston will learn from this bust cycle. Houston is in better shape today than in the 1980's but still much more work needs to be done so that <5% of jobs are oil dependent. Current stats show 10% of Houston's job market is DIRECTLY tied to energy, with thousands more jobs tied indirectly (attorneys, accountants, finance, etc who specialize in O&G). Total employment exposure is probably close to 11%. O&G contribute almost 20% of Houston's GDP.

The other strategy is attracting high paying jobs. I think O&G compensation hovers north of $150k average in Houston....what kind of income jobs will a FedEx distribution center bring? Probably <$20/hour, non-management jobs. This is where Dallas is doing a good job- ie, the average salary coming with Toyota's relocation is $110k-ish. Several tech firms have relocated to downtown Dallas with six-figure salaries, too.

[radiolibre99]

That's one thing I didn't like about the Texas miracle, especially in the early stages of it and the surrounding hoopla around Houston. I always felt the growth was two fold. If you weren't a credentialed professional in certain sectors mainly medical or O&G, energy, your other options were lower wage work. You could get into the manufacturing but even for the highly skilled laborer the pay is much lower than the union work out elsewhere (what's left of it) unless you're working 70+hours and making it up with overtime.
it's good cities like Dallas are diversifying and bringing in other fields which bring in jobs they pay more.

[DabOnEm]

Originally Posted by TurtleCreek80

Yes, good catch, I should have expanded on my thoughts re: long-term in my last post. IF Houston can really commit to a strategy of diversifying its economy significantly, then long-term prospects are stable (stability being the key to a healthy economy vs the violent peaks and valleys seen in the energy industry). Dallas learned its lesson in the 1980's; hopefully Houston will learn from this bust cycle. Houston is in better shape today than in the 1980's but still much more work needs to be done so that <5% of jobs are oil dependent. Current stats show 10% of Houston's job market is DIRECTLY tied to energy, with thousands more jobs tied indirectly (attorneys, accountants, finance, etc who specialize in O&G). Total employment exposure is probably close to 11%. O&G contribute almost 20% of Houston's GDP.

The other strategy is attracting high paying jobs. I think O&G compensation hovers north of $150k average in Houston....what kind of income jobs will a FedEx distribution center bring? Probably <$20/hour, non-management jobs. This is where Dallas is doing a good job- ie, the average salary coming with Toyota's relocation is $110k-ish. Several tech firms have relocated to downtown Dallas with six-figure salaries, too.

IIRC, the wages in Houston are already the highest in the state, so maybe other major areas of the state are catching up to what Houston already has while it goes through this slow down. The distribution center is just one example. When Exxon moved employees to Houston from their Virginia operations, those were all high paying. The workers in the refineries on the east side (that are booming) make good pay too. May not be the "sexy" white collar jobs but they buy brand new cars and go out to eat too.

[Jimmy1953]

Energy saver: Dallas, San Antonio and Austin keep Texas growing | Dallas Morning News

[radiolibre99]

Originally Posted by DabOnEm

IIRC, the wages in Houston are already the highest in the state, so maybe other major areas of the state are catching up to what Houston already has while it goes through this slow down. The distribution center is just one example. When Exxon moved employees to Houston from their Virginia operations, those were all high paying. The workers in the refineries on the east side (that are booming) make good pay too. May not be the "sexy" white collar jobs but they buy brand new cars and go out to eat too.

When is Houston going to attract tech? Nearly every major city has some Silicon X.

[DabOnEm]

Originally Posted by radiolibre99

When is Houston going to attract tech? Nearly every major city has some Silicon X.

Houston has long had tech with NASA.

[radiolibre99]

Originally Posted by DabOnEm

Houston has long had tech with NASA.

I meant Google, Facebook, Netflix etc

[Austinite101]

Originally Posted by DabOnEm

Houston has long had tech with NASA.

NASA isn't the same kind of tech that Silicon Valley type tech is.

[BCB]

Originally Posted by Jimmy1953

Energy saver: Dallas, San Antonio and Austin keep Texas growing | Dallas Morning News

Non-farm jobs added:

• Dallas
  • 99,100
  • +4.2%
• Austin
  • 37,600
  • +4.0%
• San Antonio
  • 31,400
  • +3.3%
• Houston
  • 10,100
  • +0.3%
• Fort Worth
  • 6,300
  • +0.6%

Fort Worth really needs to start pulling their weight.

And they wonder why everyone collectively refers to The Metroplex as "Dallas?"

[DabOnEm]

Originally Posted by radiolibre99

I meant Google, Facebook, Netflix etc

Have no idea. I think IBM has some operations down there but that's all I know of. Houston of course use to have Compaq.