Richmond Economic Development

Local Industries PERCENTAGE OF EMPLOYMENT BY INDUSTRY

The Educational Services, and Health Care and Social Assistance, and Construction industries are the largest employers in Richmond, primarily due to Lamar Consolidated Independent School District and Oak Bend Medical Center. As the county seat for Fort Bend County, Richmond also has a concentration of county and City jobs as well as manufacturing and retail related jobs. Source: U.S. Census Bureau, 2000, 2008-2012.

Agriculture, Forestry, Fishing and Hunting, and Mining Public Administration 2%

5%

Other Services 7.6%

Construction 20.2%

Arts, Entertainment, Recreation, Accommodation, and Food Services 10%

Manufacturing 9.7%

Educational services, and Health Care and Social Assistance Wholesale Trade

22.2%

2%

Retail Trade 8.3%

Transportation and Warehousing, and Utilities

Information

3.4%

6.26%

Finance and Insurance, Real Estate, Rental, and Leasing 4.6%

Job Locations INFLOW / OUTFLOW OF JOB COUNTS IN 2011

Information 0.7%

4,221

$

Commuters that work in Richmond but live outside the City

Of the 4,431 jobs located in Richmond, 95 percent or 4,221 of these employees live outside the City Limits. This uncovers a significant leakage that could be captured with increased housing options and attractive amenities. On the other hand, 93 percent or 4,698 residents of the 5,028 employed Richmond residents travel outside of the City Limits for employment in nearby areas. Richmond’s economy success will be dependent on capturing these markets locally.

Residents living Source: U.S. Census Bureau, 2012; OnTheMap Data, 2011. in Richmond but employed outside the 4,698 City

210 Living and employed in Richmond

Industry Growth Since Great Depression JOB CREATION BY INDUSTRY SINCE 1939

The chart shows how steeply the “Eds and Meds” sector climbed after the Great Depression, but it also shows that the two industries are beginning to level off, meaning they are nearing the end of their growth cycle.

25,000

Construction Manufacturing Wholesale Retail Business Services Education/Medical

20,000

Diversifying the Local Economy “Governments at all levels need to wake up to the fact that Eds and Meds will not be, by themselves, the ticket to economic growth.

- Aaron Chatterji, Duke University economist

15,000

10,000

5,000

0 1939

1949

1959

1969

1979

1989

1999

2009

The “Eds and Meds” Syndrome The health care and education sectors, the so-called “Eds and Meds” industries have grown substantially in recent decades, even during the recession’s hardest hitting years. These industries have come to dominate the economic development strategies for so many cities as America’s aging population continues to need medical care, and the knowledge economy continues to demand an increasingly skilled and educated workforce. The “Eds and Meds” industries, often touted as a means for economic development, recently have some economists questioning the ability of these sectors to continue sustaining and powering local economies as they stop growing. While “Eds and Meds” sectors may constitute a large part of the urban workforce and provide a substantial job base for many cities and regions, economists advise that they cannot not be the sole source of economic development.

In recent years, while economies went global, job creation went local; roughly half of the jobs created between 1990 and 2008 were created in education, health care, and government, all of which are all locallyoriented sectors. What is positive in the recent Eds-Meds growth trend, is that growth is occurring and being focused within local economies.

Richmond has a great opportunity to capitalize on this trend, and support emerging commercial and retail sectors into its current health and government economic portfolio.

The sustained health of Richmond’s economy will be dependent on both its diversity of economy sectors and their success and resilience. Several activity centers that are primed for the development of commercial and retail opportunities include: Highway 90A Corridor, Downtown Richmond, Brazos Town Center, and Great Wood and River Park.