Harris County Update Report 2023

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ECONOMIC ALLIANCE HOUSTON PORT REGION HARRIS COUNTY UPDATE REPORT 2023

EXECUTIVE SUMMARY - HARRIS COUNTY UPDATE REPORT

with area governments, membership dues and fundraising events.

A driving force in the Houston Port region’s economic prosperity due to participation by our 250 Private Sector Members, 12 Cities/Communities, Port Houston, and Harris County. A well- connected organization, convening a large, trusted network.

Facilitator to market the Houston Port region as a Global Gateway. Providing publicity to various programs and initiatives through - Website Enhancements, Events, Newsletters and Economic Development Project work.

2 announced economic development project wins total $336M in committed capital investment in Harris County, 73 direct job opportunities and 425 retained jobs. Forum for Private Sector and Government Leadership to discuss Economic Development Tools, State of Port Operations, Impact as a Growth Engine, Supply Chain Solutions, and efforts moving toward Sustainability and development of economic opportunities through SMWBE and DEI efforts.

A leader in workforce development initiatives to address the growing skilled workforce gap in the Houston Port region. Conducting over 400+ Career Path Presentations exceeding 50,000 Potential Workers/Students. A diverse audience exposed to our workforce development/job opportunities to create economic equity.

Convening entity in identifying and promoting issues of Houston Port region significance. Working to improve our economic development assets, transportation infrastructure, workforce development entities and Port Houston investment protections.

Established thought leader through relevant and well attended events. Anticipating over 3,700 participants at 11 events that will produce an average of 335 attendees for each planned gathering in 2023.

Harris County’s support is an integral contributor to Economic Alliance’s successes that you will find outlined in this document. Our Board, Members and Staff look forward to enhancing our relationship and continuing our collaborative work to advance the Houston Port region and Harris County globally.

ECONOMIC ALLIANCE HOUSTON PORT REGION

ECONOMIC ALLIANCE HOUSTON PORT REGION

Introduction/Background

Economic Alliance Houston Port Region (Economic Alliance) is a nonprofit organization whose mission since 1986 has been to grow a vibrant regional economy. Supported by impact initiatives focused on:

EconomicDevelopment

Public Policy

WorkforceDevelopment

Transportation/Infrastructure

Qualityof Life

Events/Thought Leadership

Our structure consists of an Executive Board, an Elected Board and eight initiative chairs supported by members through their direct involvement. Our staff of seven works to carry out the directives of each of these bodies in the most efficient and effective way possible.

250 Private Sector Members, 11 Cities/Communities, Port Houston, and Harris County

8 Taskforces

Several annual events convening leaders and highlighting one of the World’s most influential energy corridors and trade ports.

6 full-time and 1 part-time professional staff and 2 college interns.

The Houston Port region’s make up is so unique that there is not a blueprint of how to strategize to improve our economic development activities/assets, transportation infrastructure, workforce development entities and investment protections. For this reason, EconomicAlliance has established itself as the convening entity in identifying, prioritizing, and promoting issues of Houston Port region significance.

ADVOCATING FOR THE HOUSTON PORT REGION

SUPPORTING INFRASTRUCTURE FUNDING, GOODS MOVEMENT, WORKFORCE, AND WATERWAY PROTECTIONS

Every year the Economic Alliance organizes a leadership team to travel to Washington DC and advocate for issues important to the Houston Port Region. This annual federal advocacy trip provides our industry members and community leaders exclusive access to members of the US Senate, Congress and their staff, executive branch policymakers, and representatives from key federal agencies.

Economic Alliance supports policies to enhance Port Houston/supply chain infrastructure, skilled worker growth, industry partnerships, and coastal protections for critical economic assets.

PORT HOUSTON /SUPPLY CHAIN IMPROVEMENTS

Allocations in the Infrastructure Investment and Jobs Act, USACE Work Plan, and Inland Waterway Trust Fund for Houston Ship Channel upgrades and maintenance.

PPETROCHEMICAL INDUSTRY EFFICIENCIES/PARTNERSHIPS

Reforms to Surface Transportation Board policies to impact product movement and enhanced partnerships with industry to use the most innovative technologies/materials for infrastructure rebuilds.

COMMUNITY COLLEGES WORKFORCE DEVELOPMENT

Increased training funds via the Department of Labor, reforms to Pell Grant eligibility and appropriations from the U.S. Department of Transportation to establish a Maritime Center of Excellence at San Jacinto College

COASTAL BARRIER ECONOMIC ASSET PROTECTIONS

Phased appropriations through the U S Army Corp of Engineers for the design/construction of a coastal barrier protecting the Texas/Louisiana portion of the U S Gulf Coast, impacting our national supply chain/economy

SUPPORTING HARRIS COUNTY TRANSPORATION INFRASTRUCTURE

FREIGHT MOVEMENT - TRANSPORTATION & INFRASTRUCTURE TASK FORCE

Economic Alliance is making certain the Houston Port region is connecting mobility, safety, environmental issues, economic opportunity with Port Houston unprecedented growth.

The mission has been to deliver TxDOT and key leadership a prioritized transportation/infrastructure project list based on stakeholder consensus and critical investment need. Economic Alliance convenes a collection of local/state elected officials, Port Houston, petrochemical association partners and private sector members.

PEL Studies

I10 East Expansion/San Jacinto River Bridge

SH 225 - 610 Expansion

Critical Priority Projects

146 Expansion – Fairmont to Red Bluff – under construction

Beltway Bridge/225 Direct Connectors – designed need funding 225/146 DC for Barbours Cut Blvd into Port Terminal

Beltway 8 Direct Connector Support Letters

JOB CREATION AND CAPITAL INVESTMENT IN HARRIS COUNTY

ECONOMIC DEVELOPMENT - INVESTMENT COMMITMENTS & JOB OPPORTUNITIES

ANNOUNCEMENTS -'23

2 announced economic development wins total $363M in committed capital investment for the Houston port region, 73 direct job opportunities and 425 retained positions.

INVESTMENT BRIEFS

KAO will invest $260M and create 60 jobs to construct a Tertiary Amine Production Plant at the former Sunoco site that sat vacant for over 10 years - Basic ingredients in hair conditioners, dishwashing detergents, disinfectants and other household products.

Albermarle a manufacturer and supplier of catalysts and additives will invest $113M, create 13 new jobs and retain 425 position to expand its production capabilities by installing a new operating unit as well as additional reactors and associated equipment required to increase production.

JOB CREATION AND CAPITAL INVESTMENT IN HARRIS COUNTY

PROJECT PIPELINE - ’23

25 active projects in the pipeline the Economic Alliance is tracking with our regional partners

Potential for: $6.7B Cap Ex – 5,100 New Job Opportunities – 15 Retained Jobs

The Economic Alliance conducts an annual evaluation of the project pipeline to determine which of the projects are still viable, approximately 40% of the 2022 pipeline carried over as active projects into 2023.

Manufacturing and Petrochemical make up 81% of the YTD ‘23 pipeline with Logistics, Corporate Headquarters, Alternative Fuels, and RE Development combining for the remaining 19%

Pipeline Breakdown

25 Projects

$6.7B Cap Ex

5,100 New Job Opportunities

15 Retained Jobs

48% Manufacturing

33% Petrochem

7% Logistics

4% Corp Hdqtr

4% Alt Fuels

4% RE Develop

Early stages and evaluating multiple locations across the Houston Port region/Ship Channel locations.

Economic Alliance provides integral support through a comprehensive suite of client-driven project management services to companies investing in the Houston Port region:

Conducting real estate searches of existing and greenfield locations for prospects

Participation and coordination of site-selection trips/briefings and orientations

Facilitate access to data (via partners) on key business factors that highlight the region as a destination for investment and job creation

Provide guidance in evaluating and applying for State and Local incentive and workforce programs Advocacy for projects on issues pertaining to permitting and regulation with State and Local entities

Mobilization of our key board members, allies, partners to ensure project success

JOB CREATION AND CAPITAL INVESTMENT IN HARRIS COUNTY

HISTORICAL ANNOUNCEMENTS THROUGH ‘22

Project Announcements

77 Project Wins over 14 Years

$17.8B Cap Ex

3800 Jobs Created

Yearly Averages

5 Projects per Year

1.5B of Cap Ex per Year

271 Jobs Created per Year

Industry Breakdown

54% Petrochemical projects (largest indirect job creation multiplier in the U S economy)

40% Manufacturing & Logistics projects (impacting the largest export of goods port in the U S )

Activity reflects approximately 14 years of professional Economic Development services and only includes projects that Economic Alliance has directly interfaced/supported This a fraction of the nearly $100 Billion of capital investment in production facilities in the Houston Port region over the last several years

PROMOTION OF HOUSTON PORT REGION/HARRIS COUNTY

MARKETING THE HOUSTON PORT REGION AS A GLOBAL GATEWAY

Marketing our region as a Global Gateway, Economic Alliance is currently conducting a major upgrade to our website. Putting forth a more profound presence of highlighting to businesses the potential of direct access to Port Houston/Harris County.

Harris County directly supports our efforts to enhance the message that the Houston Port region is an ideal hub for companies needing worldwide distribution for their products, world-class infrastructure, and a supply of workers to minimize time, transportation, and distribution costs domestically and internationally.

The enhanced website will include sections (scheduled to go live 4th Qtr. ’23)

Unparalleled Global Access via Port Houston Terminals Improvements and Investments by Port Houston Impact of Port Houston as a Growth Engine Benefits to Existing and New Operations

PROMOTION OF HOUSTON PORT REGION/HARRIS COUNTY

NEWSLETTER - THE CURRENT

Economic Alliance distributes a quarterly newsletter highlighting Houston Port region businesses, partners, industry news/events, upcoming classes and workshops, and resources our office and partners provide.

Economic Alliance newsletters have a distribution of more than 10,000+ recipients that provides an opportunity for Port Houston to submit articles about current news and promotion of programs.

Highlighting Port Houston Sustainability Action Plan: MOU collaborative agreement with Shell to identify decarbonization opportunities at the port that will support the goal to be carbon neutral by 2050.

Port Houston Improvements and Investments to Keep the Houston Port Region Competitive/: Highlighting Port Houston infrastructure investments.

PROMOTION OF HOUSTON PORT REGION/HARRIS COUNTY

FREIGHT MOBILITY & PORT HOUSTON

Bruce Mann, Director of Freight Mobility at Port Houston participated in the Gulf Coast Growth Show Season 8. The Economic Alliance produced 33 podcasts in 2022, bringing the latest news and updates in the petrochemical, manufacturing, maritime, transportation, and workforce related industries.

Bruce offered insight on the importance of freight mobility in the region noting:

The unprecedented growth of container activity and his role in their movement to the end destination

The high-profile infrastructure projects in the works at Port Houston

His personal passion to end human trafficking and how everyone can play a role

ECONOMIC ALLIANCE CONVENES LOCAL/STATE ELECTED OFFICIALS, PORT HOUSTON, PETROCHEMICAL ASSOCIATION PARTNERS AND PRIVATE SECTOR MEMBERS TO DELIVER TXDOT A PRIORITIZED PROJECT LIST

PROMOTION OF HOUSTON PORT REGION/HARRIS COUNTY

SUSTAINABILITY

The Economic Alliance is committed to working with Port Houston to advance policies and initiatives promoting the energy transition to a more sustainable future that will benefit our communities

Trae Camble, Director of Environmental Affairs at Port Houston participated in the Gulf Coast Growth Show Season 7 Ep 18.

Trae highlighted what Port Houston is doing to leave a more environmentally friendly footprint across the Houston Port region and highlighting:

Sustainability efforts and goals; the Environmental Social Governance (ESG) report they are working on. Reduction of the ports carbon footprint~55% over the last 5-6 years.

Importance and impact of Project 11. Role as a Board Member for the Galveston Bay Foundation.

Sustainability Leadership Panel at the Gulf Coast Industry Forum featured industry and higher education leaders that discussed advanced plastics recycling and how our region is leading in sustainability.

Quarterly newsletter “The Current” Q1/2023 primary focus highlighted “Advanced Recycling” advancing plastics circularity through technology and collaboration

CREATING ECONOMIC OPPORTUNITY IN HARRIS COUNTY

GULF COAST INDUSTRYFORUM PROVIDING A STATE OF HARRIS COUNTY & PORT HOUSTON OPERATIONS

The Gulf Coast Industry Forum continues to be a vital point for knowledge sharing, networking and thought leadership around issues facing Port Houston.

The conference began due to Houston Port region leaders recognizing the need for a forecasting conference in the industry. They asked the Economic Alliance to produce a conference that would provide information for the overall industrial economy. The Petrochemical and Maritime Outlook Conference (PMOC) was first introduced in 2010 and later became known as the Gulf Coast Industry Forum (GCIF) in 2016.

In its first year, PMOC had an attendance expectancy of 200 people. Economic Alliance finished the conference with over 450 attendees and with Port Houston support since 2010 the event has consecutively grown with more people in attendance each year. In 2019, GCIF had over 1,000 people attend.

CAMPO KEYNOTE SPEAKER MV SAM HOUSTON DINNER & PORT
TOUR
HOUSTON EXHIBITOR BOOTH IN FRONT OF 800+ ATTENDEES
LEVEL SPONSORSHIP
RIC
HOUSTON
PORT
PLATINUM
GCIF 2022

CREATING ECONOMIC OPPORTUNITY IN HARRIS COUNTY

MEMBER & COMMUNITY STAKEHOLDER NETWORKING OPPORTUNITIES

11 ORGANIZED AND HOSTED EVENTS in addition to our monthly taskforce and board meetings, provide members, industry leaders, and community stakeholders opportunities to network, gain knowledge, and engage in information sharing

Events such as the Industrial Procurement Forum provides insight to small and midsize businesses on how to do business with large industries including Port Houston. The aforementioned Women’s Leadership event empowers women to succeed in industry, and the aforementioned Gulf Coast Industry Forum have been well represented by key Port Houston team members.

PROMOTION OF SUSTAINABILITY, SMWBE, AND DEI EFFORTS

PROGRAMS MAKING AN IMPACT ON SMWBE AND DEI EFFORTS

Women in Alliance Committee

Mission “To provide a platform that highlights the exceptional women leaders and empower women in the Houston Port Region”.

3 annual lunch events

Keynote speakers featuring local accomplished women who share their journeys to leadership.

Past speakers: San Jacinto College Chancellor Brenda Hellyer, State Representative Carol Alvarado, and Exxon Plant Manager Kate Lightfoot. Port Houston and women owned businesses participated in exhibitor booths highlighting services and business offerings.

The Economic Alliance is partnering with the East Harris County Empowerment Council to promote a “Back to School Supply Drive” to provide school supplies to economically disadvantaged students in the East Harris County/ Port Houston region.

East Harris County Empowerment Council

The Economic Alliance is partnering with the East Harris County Empowerment Council to promote a “Back to School Supply Drive” to provide school supplies to economically disadvantaged students in the East Harris County/ Port Houston region.

WORKFORCE DEVELOPMENT AND DEI ACTIVITIES

MARKETING ECONOMIC OPPORTUNITY AND EQUITY

Effectively coordinate and carry out activities to communicate to the future workforce the path to obtain skills needed for skilled employment in the Houston Port region.

Activities by staff facilitate the promotion of workforce development initiatives to address the growing skilled workforce gap. Focused on marketing high paying careers in the petrochemical, maritime, logistics, and construction industries to local students to connect life changing employment opportunities.

Economic Alliance leverages partnerships with EHCMA and 9 community colleges to recruit and train a qualified workforce that is needed in the Houston Port region.

Filling a key role with industry partners in identifying and prioritizing the high-demand, high-paying careers that support the petrochemical, maritime, and construction industries.

WORKFORCE DEVELOPMENT AND DEI ACTIVITIES

WORKFORCE DEVELOPMENT PARTNERSHIPS

Economic Alliance Workforce Development Manager organizes and schedules presentations to highlight economic equity career paths at school districts across Harris County. Direct engagement provides the roadmap to opportunities and potential careers in transformational jobs withing advanced Harris County industrial faciltiies.

GALENA PARK

DAYTON

SPRING

DEER PARK

KLEIN

CHANNELVIEW

FRIENDSWOOD

GOOSE CREEK

HOUSTON

HUFFMAN

LAPORTE

PASADENA

ALDINE

HOUSTON COMMUNITY COLLEGE

SAN JACINTO COMMUNITY COLLEGE

ECONOMIC OPPORTUNITY AND EQUITY OUTREACH METRICS

MEMBERSHIP OF THE ECONOMIC ALLIANCE

DIVERSE PARTNERS OF ECONOMIC ALLIANCE

A driving force in the Houston Port region’s economic prosperity and successes are growing faster than ever due to the participation by our members We convene a large, trusted network and well-connected organization

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