Dumas EDC - Texas Wide Open for Business

Texas texaseconomicdevelopmentguide.com

What’s Online Learn about the Lone Star State’s aviation and aerospace legacy.

Wide open for business

Breezing Right Along

State boasts robust wind energy sector

Nano Know-How Computer and IT cluster continues to advance

Star Power

Stellar attractions draw global visitors

presented by the office of the governor, economic development & tourism | 2010

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Texas Wide open for business

36 Working in Texas Breezing Right AlongÂ

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State boasts robust wind energy sector.

A Zest for Life Sciences

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Research prowess, state initiatives breed a booming bio sector.

Nano Know-How

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Computer and IT cluster continues to advance.

Air Force

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The aviation heritage of Texas gives a lift to the aerospace industry.

Global Positioning

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Exports and direct foreign investment bolster the state’s economy and create jobs.

In Good Company

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Texas small business, population 386,000, is big and getting bigger.

Star Power

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Stellar attractions draw global visitors.

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Table of Contents Continued

On the Cover The Bob Bullock Texas State History Museum in Austin Photo by brian mccord

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Insight Overview

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Business Almanac

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Business Climate: Wide Open for Business 28

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Technology

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Energy

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Transportation

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Economic Profile

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Living in Texas Gallery

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Education

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Health

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The Perfect Place to Call Home

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Special advertising section: Texas Midwest Community Network All or part of this magazine is printed with soy ink on recycled paper containing 10% post-consumer waste.

Please recycle this magazine

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Texas Wide open for business 2010 Edition , volum e 1

Proofreading Manager Raven Petty Content Coordinators Jennifer Graves, Erica Hines Staff Writer Kevin Litwin Copy Editors Lisa Battles, Joyce Caruthers, Jill Wyatt Contributing writers Pamela Coyle, Michaela Jackson, Bill Lewis, Joe Morris, Claire Ratliff, Amy Stumpfl Media Technology Director Christina Carden Senior Graphic Designers Laura Gallagher, Jessica Manner, Janine Maryland, Kris Sexton, Candice Sweet, Vikki Williams Media Technology Analysts Chandra Bradshaw, Yamel Hall, Alison Hunter, Marcus Snyder Photography Director Jeffrey S. Otto Senior Photographers Jeff Adkins, Brian McCord Staff Photographers Todd Bennett, Antony Boshier Web Content Managers John Hood, Kim Madlom Web Design Director Franco Scaramuzza Web Designer Leigh Guarin Ad Production Manager Katie Middendorf Ad Traffic Assistants Marcia Miller, Patricia Moisan I.T. Director Yancey Bond I.T. Service Technician Ryan Sweeney Regional Sales Manager Charles Sweeney Sales Support/Community, Business, Custom Rachael Goldsberry Senior Accountant Lisa Owens Accounts Payable Coordinator Maria McFarland Accounts Receivable Coordinator Diana Guzman Office Manager/Accounts Receivable Coordinator Shelly Miller Integrated Media Managers David Moskovitz, trip Miller, Colin Wright Sales Support Manager Cindy Hall Chairman Greg Thurman President/Publisher Bob Schwartzman Executive Vice President Ray Langen Senior V.P./Sales Todd Potter, Carla Thurman Senior V.P./Operations Casey Hester Senior V.P./Client Development Jeff Heefner V.P./Content Development Teree Caruthers V.P./Custom Publishing Kim Newsom V.P./Visual Content Mark Forester V.P./Content Operations Natasha Lorens V.P. Sales Charles Fitzgibbon, Herb Harper, Jarek Swekosky Controller Chris Dudley Content Director/Travel Publications Susan Chappell Content Director/Business Publications Bill McMeekin Marketing Creative Director Keith Harris Distribution Director Gary Smith Recruiting/Training Director Suzy Simpson Executive Secretary Kristy Duncan Human Resources Manager Peggy Blake Receptionist Linda Bishop

Texas Wide Open for Business is published annually by Journal Communications Inc. and is distributed through the Texas Economic Development Corporation.

For advertising information or to direct questions or comments about the magazine, contact Journal Communications Inc. at (615) 771-0080 or by e-mail at info@jnlcom.com.

For more information, contact: Texas Economic Development Corporation P.O. Box 12428 • Austin, TX 78711-2428 Phone: (512) 936-0101 • Fax: (512) 936-0080 www.TexasWideOpenForBusiness.com

Visit Texas Wide Open for Business online at TexasEconomicDevelopmentGuide.com ©Copyright 2010 Journal Communications Inc., 725 Cool Springs Blvd., Suite 400, Franklin, TN 37067, (615) 771-0080. All rights reserved. No portion of this magazine may be reproduced in whole or in part without written consent.

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Texas ONLINE

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What’s Online Learn about the Lone Star State’s aviation and aerospace legacy.

Wide OPeN fOR BuSiNeSS

Breezing Right Along

State boasts robust wind energy sector

Nano Know-How Computer and IT cluster continues to advance

Lifestyle Find out what it’s like to live here and what makes Texas such a special place to be.

Star Power

Stellar attractions draw global visitors

PReSeNted By tHe Office Of tHe gOveRNOR, ecONOmic deveLOPmeNt & tOuRiSm | 2010

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org 8

T e x as W i d e O p e n f or B u s i n e ss

Overview

The Lone Star State Shines Brightly Texas sets the pace as a place to invest, work and live As Governor of Texas, I am dedicated to supporting an environment of job growth, opportunity and prosperity for the people of the Lone Star State.

Texas’ pro-business climate continues to bring quality jobs to the state. Our state offers companies an unparalleled competitive edge, with the lowest per capita tax rates in the nation, no personal income tax, close proximity to strategic markets, cutting-edge infrastructure, excellent schools and a skilled workforce.

Texas provides businesses with the tools they need to grow and prosper, including the innovative, “deal closing” Texas Enterprise Fund (TEF) and the Texas Emerging Technology Fund (TETF). To date, TEF has resulted in the announcement of nearly 52,000 new jobs and more than $14.3 billion in capital investment to the state. TETF has allocated more than $130 million in funds to 103 early-stage

Amarillo 40

HIGH PLAINS 27

Wichita Falls

Lubbock

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El Paso

Odessa

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METROPLEX NORTHWEST TEXAS

NORTHEAST TEXAS

Ft. Worth Dallas

Abilene

Longview

WEST TEXAS

Beaumont

Austin

Houston 10

San Antonio

GULF COAST

Port Arthur

BAILEY

LAMB

ARMS

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HALE 27

Rick Perry Governor

HOCKLEY

LUBBOCK 62

Lubbock

COCHRAN

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For more information, contact:

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Corpus Christi

McAllen Brownsville

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SOUTH TEXAS

Laredo

CAR

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UPPER RIO GRANDE

HUTCH

CASTRO

SOUTHEAST TEXAS

CENTRAL TEXAS 10

Sincerely,

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Waco

HANS

SWISHER

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Tyler

Midland

companies, and $168 million in grant matching and research superiority funds to Texas universities/industry consortia.

Texas is recognized around the world for our pro-business climate, which is demonstrated every day by statistics like these: • Texas has been ranked the No. 1 exporting state for eight straight years. Texas’ exports were approximately $163 billion in 2009 (WISERTrade, February 2010).

• Texas has been ranked the No. 1 relocation destination in the United States for the fifth year in a row (SIRVA, Inc., January 2010).

385 • Four Texas cities were ranked D A L L A M 87 in Forbes’ “Cities Where the SHERMAN Recession is Easing” list: Austin (1), Dallas (3), Houston (4) and San287 Antonio (7) (Forbes,H March A R T L E Y 2010).

MOORE Texas is a place54of limitless 87 possibility, and we will continue to make every effort to ensure that business and industry thrive in our OLDHAM POTTER great state. I invite you to come to Amarillo Texas, where we’re ready to work 40with you. No matter the industry, the Lone Star State is committed to doing 60 DEAF SMITH what it takes to keep Texas Wide RANDALL Open for Business.

CR

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Texas Economic LYNN Development Corp.

82 380 P.O. Box 12428 Y O A K U M TERRY Austin, TX 78711-2428 (512) 936-9405 GAINES D AWSON www.texaswideopenforbusiness.com 62 180

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Almanac A Smokin’ Hot Operation The first Sadler’s Smokehouse opened in Henderson in 1948, with a menu as small as the building that housed the business.

Today, Sadler’s line of smoked meat products are sold in 7,200 locations throughout the United States. The East Texas company distributes to major grocery retailers, food service companies and national chain restaurants.

Sadler’s operates in a 300,000-square-foot plant that houses the company’s headquarters and processing plant, on land that spans 40 acres. Their premium pit-smoked meats include various fresh cuts of beef, pork, ribs and turkey products. For more, go to www.sadlerssmokehouse.com.

Burning Calories Mars Snackfood US has been recognized by the U.S. Environmental Protection Agency for a methane gas project it initiated at its Waco manufacturing plant.

The facility that makes Snickers, Starburst and Skittles receives methane gas piped directly from a city landfill, and that will provide 60 percent of the plant’s total boiler fuel requirements for the next 25 years.

Using methane gas for power will save Mars some $600,000 a year, and will be the equivalent of removing 1,900 cars from the road, planting 2,300 acres of pine or fir forest, heating 2,700 homes or saving 24,000 barrels of oil. The EPA recognized Mars as a 2008 Energy Partner of the Year. For more on the Mars company, go to www.mars.com.

Salt of the Earth Grand Saline is home to the only building in North America made of pure rock salt.

The Salt Palace was constructed because Grand Saline is home to one of the largest salt domes in the nation, with a future supply estimated to last 20,000 years.

Many visitors can’t resist a taste of the building, just to prove the material is truly salt.

The original landmark was erected in 1936 as part of the Texas centennial celebration, then reconstructed in 1975 at its present location on West Garland Avenue.

Grand Saline is also the Texas home of Morton Salt Co., which donated the solid salt rocks and salt mortar mixture used to construct the current Salt Palace.

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Lights, Camera, Texas Texas has a long list of credits as a location for feature films and television productions. In fact, over the past 10 years, more than 100 major television and film projects have been shot in Texas, creating a statewide economic impact of more than $1.7 billion.

Recent films made in Texas include the Spy Kids trilogy, The Rookie, Secondhand Lions and Academy Award winners There Will Be Blood and No Country for Old Men; and the hit television series Prison Break, Friday Night Lights, Barney and Friends, Judge Alex and Austin City Limits.

Since 1910, Texas has been the filming location for almost 2,000 films and television projects. Since 1971, the Texas Film Commission, now a division of the office of Gov. Rick Perry, has been providing location research, workforce referrals and national and international marketing to promote Texas as a first choice for on-location filming. Over recent years, the Film Commission has expanded its services to include the animation and video game production industries, both of which have a strong presence in Texas.

In April 2009, Gov. Perry signed House Bill 873, providing financial incentives for film, television and video game companies doing business in Texas.

Under the Texas Moving Image Industry Incentive Program, qualifying film, television programs, commercials, video games and stand-alone postproduction projects may receive payments of 5 to 15 percent of eligible in-state expenditures. As a result of the state’s competitive incentive program, production in Texas continues to grow in all segments of the industries. For details on the program, please see www.texasfilmcommission.com.

Stands the Test of Time An innovative program at Paris Junior College is turning out graduates with time-tested skills.

The college’s Texas Institute of Jewelry Technology allows students to complete up to four levels of mastery, with the highest designation being certified master jeweler.

Graduates wind up with the skills to design, manufacture and restore jewelry.

Paris Junior College is one of only a handful of institutions in the United States that offers the interesting jewelry-based program. Students are trained in watchmaking, identifying and shaping gems and metals, and designing and working with computer-aided technologies and lasers. For more, go to www.parisjc.edu.

Taking the Wrap Off an Expansion PWP Industries, a leading manufacturer of food-packaging products, is wrapping up a $22 million, 125,000-square-foot expansion that more than doubled the size of its Abilene facility, which opened in 2006.

The project created additional space for both manufacturing and warehousing in an eco-friendly facility that, among other things, takes advantage of the sun for lighting and uses heat generated by the production process as a heat source for the building.

PWP has also opened an in-house recycling facility to transform used plastic bottles into resin for food packaging. PWP Industries is a leading producer of polyethylene and polypropylene packaging for the food industry. Go to www.pwpc.com for more.

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

A New Base of Operations

Keeping the Economy Marching

The Naval Station Ingleside is set to close in September 2010, but the 1,000-acre complex won’t be sailing off into the sunset.

Trivia question: What is the largest single employer in Texas?

Due to a 2005 decision from the Base Realignment and Closure Commission, the facility won’t be a naval base anymore, but plans are already in place that will give the base a bright future. The Port of Corpus Christi and the Texas A&M University System have inked a partnership to manage redevelopment of the property.

Under the agreement, the Port of Corpus Christi will control the complex, while the Texas A&M University System will manage redevelopment of the site. Current plans are to transform the property into a major research and training center, particularly in the area of renewable energy.

The answer is the Fort Hood military base in Killeen, home to some 53,000 soldiers assigned to the post, which also employs 5,100 civilians and 9,200 service contract employees. That staggering figure underscores the fact that the military is a key component of Texas’ economy.

Some of the U.S. military’s largest installations are in Texas, and several are undergoing major expansions.

For example, $2.3 billion in recent upgrades at San Antonio-area installation Fort Sam Houston will ultimately produce a Medical Education and Training Campus that will serve as the training center for all medical-enlisted personnel, and be one of the largest medical training education institutions in the world.

Fort Bliss in El Paso County has an annual economic impact of $1.7 billion, a figure projected to grow to $6.4 billion by 2013 as new initiatives are added.

Sit-Down Success Class, please be seated, thanks to furniture makers in Central Texas, where a cluster of companies have formed a hub of specialty furniture manufacturing for schools and colleges.

Royal Seating Ltd. in Cameron was founded in 1968, and has grown to a $30 million business that makes chairs and desks, computer tables and library shelving.

Artco-Bell Corp. in Temple manufactures classroom furniture. Its mission is to make the ideal desks, chairs and tables that are ergonomic and kid-friendly, enhancing a child’s ability to learn.

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Free, Since 1836 Most history buffs in Texas know that March 2 represents a significant date for the Lone Star State.

On March 2, 1836, Texas declared its independence from Mexico, and the site where the moment actually occurred is Washington-on-the-Brazos in Washington County. As a result, the 300-acre park hosts the annual Texas Independence Day Celebration, and is also home to Star of the Republic Museum.

The museum opened March 2, 1970, and is operated by Blinn College. The first level of the two-story building is shaped like a fivepointed Texas star, and its mission is to preserve the memory of the Texas Republic that existed from 1836-1846. For more, go to www.starmuseum.org.

Battling Terrorism from Sweetwater

Dr Pepper Lives here

Ludlum Measurements Inc. has been around since 1962, but the Sweetwater-based company saw its growth escalate when the global war on terrorism began.

The city of Plano is home to Frito-Lay chips and snack foods, and Dr Pepper soft drinks. Frito-Lay was actually founded in San Antonio in 1932, and founder C.E. Doolin originally sold his Fritos corn chips from his Model T Ford.

LMI is a leading manufacturer of radiation detection equipment, and its customers include governments and private companies around the globe that need radiation detection and measurement equipment to increase security. LMI officials say the company has contributed significantly towards advancing security along the U.S. border and at seaports.

Dr Pepper traces its roots all the way back to 1885 in Waco, and is the oldest major soft drink made in America today. Its inventor, Charles Alderton, was a pharmacist who happened upon the successful formula. Today in Waco, the Dr Pepper Museum offers exhibits and memorabilia, and, of course, a replica drugstore that serves Dr Pepper.

The Ludlum Measurements product line includes isotope identifiers, radiation response kits, neutron detectors and Geiger counters. LMI equips first responders with tools that better enable them to deal with emergencies where unknown harmful materials may be present. For more, visit www.ludlums.com.

Got enough snacks for the football game?

For more on the museum, go to www.drpeppermuseum.com.

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Business Climate

Wide Open for Business Everything is bigger in Texas, especially the economy Story by Bill Lewis

innovative enterprises

corporate headquarters

low taxes and costs

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Solid transportation assets are a major draw for business in choosing Texas.

S ta f f P h o t o

here’s an old saying that there’s no arguing with success. In that case, there’s no arguing with Texas.

The Lone Star State is the nation’s undisputed leader in economic development, with an economy growing at three times the national average and, in 2008, creating more jobs than the other 49 states combined. Another sign of strength is the fact that Texas today is home to 110 companies with more than $1 billion in revenue, greater than any other state.

Small businesses get a big welcome in Texas, as well. The independent Small Business & Entrepreneurship Council ranked Texas as one of the nation’s top three states for nurturing small businesses in 2009.

“Our accomplishments did not go unnoticed,” says Aaron Demerson, executive director of the Economic Development & Tourism Division in the Office of the Governor.

Texas was ranked in 2009 as the No. 1 state with the most corporate headquarters on the Fortune 500 list and was named 2009 Best Business Climate by Business Facilities magazine.

The state’s low tax rates and cost of living, talented workforce, central location, predictable regulations and fair tort system moved Texas to the top of Directorship Magazine’s 2009 list of best states for business.

“When it comes to business, Texas

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Texas is home to 64 Fortune 500 companies, including JC Penney in Plano. ph o t o b y bri a n M c C o r d

is No. 1,” the magazine declared.

The success is underscored by a series of recent developments, such as the opening of Texas Instruments’ 1.1 million-square-foot computer chip plant that will employ up to 1,000 people in Richardson, and Caterpillar Inc.’s decision to bring one of its primary global assembly, test and paint facilities to Seguin, creating more than 1,400 jobs.

Texas was in competition with South Carolina and Mexico for the Caterpillar facility.

Texas is a center of innovation, generating new enterprises and growth in such industry sectors as biotechnology and life sciences, information technology, advanced technology and manufacturing, aerospace and defense, energy, and petroleum refining and chemical production.

There are many reasons why Texas is so competitive with other states, and even other countries, when businesses are looking for a welcoming place to grow, says Gray Mayes, Texas Instruments’ government relations director.

“The state and local governments understand there are regions around the world eager for capitalintensive facilities and very focused on measures that allow these businesses to better compete in global markets. Lower taxes; access to talent and basic research; a favorable tort climate; a costeffective and reliable supply of energy and water; efficient permitting processes; and a ‘Right to Work’ policy are all strengths in the Texas economic development tool kit,” says Mayes.

Texas Instruments’ Richardson

Texas By the Numbers

$1.23 trillion Texas Gross State Product in 2009

11 Rank of the Texas economy in the world, if it were a stand-alone nation

11.5 million Civilian workforce in Texas, second highest in the nation

64 Fortune 500 companies with headquarters in Texas

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

B ri a n M c C o r d

fabrication facility, known as RFAB, holds a special distinction. It is the world’s only production facility using 12-inch silicon wafers to manufacture analog chips used for smart phones, computing systems and other electronic devices. Not only is that more environmentally friendly, but the facility gives TI a strategic advantage in high-volume production since more than twice as many chips can be etched on the wafers than on the more commonly used 200-millimeter wafers.

Being in Texas has advantages for Caterpillar as well.

“Caterpillar looks forward to the new engine facility in Seguin, which will allow us to improve process capability, f lexibility and f low of our operations to optimize efficiency,” says Gary Stroup, vice president of Caterpillar’s Large Power Systems Division.

Amarillo National Plaza Building

Top Texas Fortune 500 Companies, by 2009 revenue Company

2009 Revenues

ExxonMobil

$442.9 billion

Irving

ConocoPhillips

$230.8 billion

Houston

AT&T Valero Energy

Location

$124 billion Dallas $118.3 billion

San Antonio

Marathon Oil

$73.5 billion

Houston

Dell

$61.1 billion

Round Rock

Sysco

$37.5 billion

Houston

Enterprise GP Holdings

$35.5 billion

Houston

Plains All American Pipeline

$30.1 billion

Houston

$28 billion

San Antonio

Tesoro

more at TexasEconomicDevelopmentGuide.com

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

That’s a Big Toolbox State incentives promote investment, jobs in texas Texas’ landscape varies widely from Fort Worth to Brownsville to El Paso, but the business climate that makes the Lone Star State so attractive for investment and job creation never changes.

Texas’ advantages include a favorable tax climate, tort reform, business-friendly attitude and low cost of doing business.

Add to that a strategic central U.S. location, excellent ports along the coast and a well-developed transportation infrastructure, says Hector Rivero, president and CEO of the Texas Chemical Council, which represents an industry that directly employs up to 70,000 Texans.

“Texas is a very attractive location for many businesses,” Rivero says.

For individuals and businesses, those advantages include a commitment by the state to grow the economy and create jobs, and one of the lowest tax burdens of any state.

Among the state’s numerous advantages: • No personal income tax • No state sales tax on property used for pollution control, which enables businesses to protect the environment without facing the prospect of higher taxes • No state tax on goods in transit • No state tax on machinery and equipment used in manufacturing The Texas Enterprise Fund, the largest deal-closing fund of its kind in the nation, offers grant incentives to attract business expansion and relocation projects to the state.

The Texas Emerging Technology Fund (TETF) supports research, development and commercialization of emerging technologies.

The Texas Economic Development Bank provides globally competitive, cost-effective

state financial incentives via public and private equity loans to help expand businesses operating in Texas.

Training assistance programs increase the skill levels and wages of the Texas workforce.

Tax incentives such as the Texas Enterprise Zone Program, and the Defense Economic Readjustment

Zone Program.

For more details on the state’s incentive and financial assistance programs, go to www.texaswideopenforbusiness.com/ financial-resources.

– Bill Lewis

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Breezing Right Along Texas leads the nation in wind production

Story by Michaela Jackson

O

Right: Texas is a wind turbine manufacturing leader.

S ta f f P h o t o

T o d d B e n n ett

ne of the hottest commodities in Texas is earning the state international recognition, creating thousands of jobs and reinventing land use.

And it’s invisible.

In the place that gave Texas Tea its name, wind is the new face of energy, with the state leading the country in wind production for the last four years.

In fact, if Texas were a nation, its installed wind power capacity of more than 9,400 megawatts would rank it sixth in the world.

“Texas has a very good wind resource, strong customer demand for renewable energy, good transmission policy and ease of siting,” says Jan Johnson, spokeswoman for wind farm developer Iberdrola Renewables, which is building a 404-megawatt

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S ta f f P h o t o s

installation in South Texas.

“So basically, just a whole lot of factors make Texas a good place to build wind power.”

The wind industry is a promising source of job creation for Texas, where 25 percent of the nation’s wind power is generated. Currently, wind power employs some 50,000 people nationwide, but a report by the U.S. Department of Energy estimates that number will grow to 300,000 by 2030.

“Manufacturers should be attracted to Texas, given the pretty rapid growth of the wind industry in this area,” says Rick Walker, an instructor at Texas Tech University in Lubbock and president of Sustainable Energy Strategies.

The state, which is home to more than 2,000 wind turbines in West Texas alone, boasts many of the world’s largest installations, including

Wind Wind Situation

9,403 Texas’ wind power capacity in megawatts in 2009, tops among states

2,290 Added capacity in megawatts in 2009

6 Texas’ rank globally for installed wind capacity if it were a stand-alone nation

1 2009 rank by American Wind Energy Association for wind-energy potential

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Top Five States Ranked by New Capacity Added in 2009 (in megawatts) 2500

2,292

2000

1500

1000

905

879 691

632

500

0

Texas Indiana

Iowa Oregon Illinois

Source: American Wind Energy Association, April 2009

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the granddaddy of all wind farms near Roscoe. Nearly 630 towering turbines spanning 100,000 acres across four counties generate 781 megawatts of electricity at the Roscoe Wind Complex. The wind farm, built by E.ON Climate and Renewables North America, is the world’s largest, with the potential to power 230,000 households at full capacity.

When the Roscoe complex began churning out electricity in October 2009, it barely snatched the claim to “world’s largest” from Horse Hollow Wind Energy Center, a 735-megawatt installation completed in September 2006 southwest of Abilene.

“We invested in Texas because the state is very pro-wind and probusiness, has excellent wind resources

In response to the activity, the Texas Legislature has worked aggressively to increase transmission capabilities, which are close to capacity in many cases.

At the behest of the legislature, the Texas Public Utility Commission has adopted a plan to deliver renewable energy to consumers from Competitive Renewable Energy Zones, or CREZs, including 2,400 miles of new 345-kilovolt transmission lines.

“A lot of times it’s difficult to get power from the big windy place where the wind blows to the cities where the homes and businesses use the electricity,” says Johnson of Iberdrola Renewables. “And Texas is ahead of other parts of the country.”

J e f f a d ki n s

in West Texas and had growing energy demand,” says Steven Stengel, spokesman for project developer NextEra Energy Resources.

Peñascal I, Iberdrola Renewable’s first 202-megawatt wind farm in the Kenedy County community of Sarita, came online in April 2009.

The project, and the community, caught a tail wind in fall 2009 when the U.S. Department of Energy awarded Iberdrola Renewables $114 million in stimulus money to complete Peñascal II. Also in development is a collaborative project of the U.S. Renewable Energy Group, Cielo Wind Power and China’s Shenyang Power Group to build a 600-megawatt wind farm on 36,000 acres in West Texas.

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org 30

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The Power of the Sun Solar capacity is heating up an industry in Texas The sun shines bright on the Lone Star State – and not just in a metaphorical sense.

Texas has the greatest solar energy resources and potential in the nation, earning a nod in a 2007 U.S. Department of Energy study as one of the top states for concentrating the sun’s power.

The estimated potential solar capacity of West Texas alone is 351 megawatt-hours, enough to keep a 60-watt lightbulb burning for nearly 668 years.

Austin, Houston and San Antonio were three of 25 cities selected by the Energy Department to participate in the Solar America Cities program, which is intended to serve as a model for the establishment of a solar energy marketplace.

The state is already a hub for solar-focused companies positioned to capitalize on the emerging industry.

In Austin, photovoltaic materials manufacturer HelioVolt received a $1 million award from the Texas Enterprise Fund for construction of a 122,000-squarefoot development and manufacturing facility that is expected to generate a $62 million investment.

The state’s wealth of innovation and research centered in a network of top-flight universities has also proven a valuable resource in the development of solar technology.

For example, the Center for Electrochemistry at the University of Texas at Austin received a $5 million grant in October 2008 from the Welch Foundation in Houston to establish the Renewable Energy Initiative, which draws on collaboration between a broad swath of stakeholders to catalyze the progress of renewable energy technologies such as solar power.

– Michaela Jackson

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$5 million

Estimated potential solar capacity of West Texas in megawatt-hours

Number of Texas cities selected to participate in the Solar America Cities program out of 25 U.S. cities

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A Zest for Life Sciences Research, state initiatives breed booming bio sector

Texas is home to 3,200 bio-related firms, such as BioNumerik Pharmaceuticals in San Antonio. photo by brian McCord

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J e f f A d ki n s B ri a n M c C o r d

Story by Pamela Coyle

J e f f A d ki n s

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exas has become a major hub of life science enterprises, spanning cancer research, medical devices, animal sciences, food safety and pharmaceuticals.

The diverse and vibrant sector encompasses more than 4,100 companies, employs more than 104,000 people and means billions in annual salaries.

World-class educational and research institutions, an educated workforce and significant state investment have created a climate where innovation is welcomed and rewarded.

In 2001, lawmakers appropriated $800 million for science, engineering, research, commercialization and

infrastructure. In 2002, Gov. Rick Perry established the Council on Science and Biotechnology Development.

In 2003, the Texas Legislature passed and the governor signed legislation authorizing the Texas Enterprise Fund, a “deal-closing” fund to attract businesses and new jobs to Texas. The Texas Emerging Technology Fund (TETF) was launched in 2005 to promote and finance technological innovations in multiple industries, including biotechnology. The plan is to invest $600 million.

“I think Texas has really stepped up,” says Thomas R. Kowalski, president of the Texas Healthcare and

Bioscience Institute. “It is really a hotbed of activity, and the genesis has been in academic centers.”

One example is Dr. John C. Criscione, an associate professor of biomedical engineering at Texas A&M University in College Station, who is working on a new device to mechanically treat congestive heart failure by restoring healthy heart motion.

CorInnova Inc., his company, is in the preclinical stage and developing a commercial prototype of a coneshaped device that would cradle the heart, but not require major thoracic surgery. CorInnova received a $250,000 pre-seed investment from the TETF, with a commitment of up to

Left: Dr. Deeann Wallis Schultz conducts genome research at Texas A&M University in College Station.

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BioNumerik Pharmaceuticals

$1 million if the company hits certain benchmarks.

Having worked at Johns Hopkins University and other research heavyweights, Criscione says the Texas climate is refreshing.

“I can be innovative and people will listen, and they are looking for things outside the box,” he says.

Houston-based US Oncology provides support, research, business services and care coordination for doctors across the United States who treat 17 percent of the nation’s cancer patients.

“You have to have an incredibly diverse and incredibly good pool of employee talent, and the talent pool in Houston in particular and Texas in general is just what is needed,” says Dr. Roy Beveridge, US Oncology’s medical director.

Affiliated clinics are independently owned, but US Oncology, a Fortune 1000 company with a staff of 600 in

The Big Picture

4,100 Bio-related establishments in Texas

104,400 Bioscience-related employment in the state

$67,370 Average wage in the state for bio-related workers

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$93.1M

Amount awarded as of March 2010 for biotechnology-related projects through the Texas Enterprise Fund

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Houston, provides foundational services that have advanced cancer care. In summer 2010, the company will open an oncology lab in Dallas that will handle all tissue and tumor testing for its doctors, plus retain preand post-treatment specimens. The goal is to track clinical results to lower toxicity levels and work toward truly customized treatment, Beveridge says.

Research is a big part of that, and US Oncology has played a role in the development of 39 of the cancer drugs most recently approved by the FDA. “We have the largest research platform in the world for oncology,” Beveridge says. “With most of the drugs going through development now, every manufacturer comes to us.”

San Antonio-based BioNumerik Pharmaceuticals Inc. has two novel drug candidates for cancer treatment

in Phase III clinical development.

BioNumerik recently treated its first patients in an international multicenter Phase III clinical trial of Tavocept in patients with the most common type of lung cancer.

In addition, BioNumerik’s Karenitecin is undergoing testing in an international Phase III clinical trial in patients with advanced ovarian cancer. The 40-person company has eight additional drug discovery research programs.

State involvement in helping build life sciences industries has created an awareness of its importance and set the stage for future growth, says David Margrave, BioNumerik’s vice president for administration.

“There is no question it is a growing part of Texas’s future and means jobs for Texas, and a large number are high-wage jobs,” he says.

Glass “chips” containing sensors for nearly all of the genes in the human genome.

Booster Shot Texas bolsters innovation economy with $600M fund Bioscience, clean energy and other cutting-edge industries have a big partner in the Texas Emerging Technology Fund.

In the last four years, the fund has invested more than $300 million in research superiority funds and matching grants to universities and 100 fledgling companies.

The goal is $600 million at the end of five years, and if the system works as planned, Alan Kirchhoff, the fund’s director, will be out of a job.

“Part of the vision is to build an innovation economy within our regions,” Kirchhoff says. “If it can be selfsustaining without state funding, then we’ll be successful.”

The idea is to help universities recruit and pay top researchers with a track record of taking an idea to market and make equity investments in startup companies to help commercialize new technologies.

The commercialization investments provide muchneeded capital for early-stage companies and, if the ideas succeed, a return on the dollars of Texas taxpayers.

In December 2009, TETF invested $5 million in Austin-

based Mirna Therapeutics Inc., to commercialize micro ribonucleic acid treatments for cancer.

ScanTech Sciences Inc. of Houston received $2 million in January 2010 to move its electronic pasteurization technology forward. The process removes more insects, bacteria and toxins from food without using chemicals.

Often, the fund’s advisory board invests $250,000 as pre-seed money, with a commitment of up to $750,000 more if the start-up meets certain milestones.

“This allows us to move back into the really early stage where the funding gap is the greatest,” Kirchhoff says.

For example, Photon8 Inc., based at the University of Texas at Brownsville and Texas Southmost College, received $250,000 in January 2010 for its algae bio-fuel technology. Austin-based ActaCell Inc. received $250,000 in November 2009 to develop its high power, rechargeable lithium ion batteries for electric vehicles.

Visit www.emergingtechfund.com for more information on the TETF. – Pamela Coyle T e x asE c ono m i c D e v e lop m e n t G u i d e . c o m

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Nano Know-How A big state fosters innovation on a small scale

Story by Michaela Jackson

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ot everything is bigger in Texas.

And when it comes to the state’s burgeoning nanotechnology sector, that’s a very good thing.

Nanotechnology, a science that impacts industries as diverse as transportation, construction, medicine and communications, involves engineering materials at the molecular and atomic levels.

Who can benefit from research on such a tiny scale?

“Everybody who makes stuff out of atoms. So, basically everything, ultimately,” says James Von Ehr, founder and president of Zyvex Labs in Richardson. “That’s kind of like asking, ‘What is the application for steel?’ or ‘What is the application for aluminum? Concrete?’”

Zyvex Labs is developing the technology to enable

Texas is a global powerhouse in semiconductor manufacturing, with exports of $10.5 billion in 2006 alone.

By the Numbers Texas semiconductor industry

11.5% Texas’ share of the world’s silicon processing capacity

$26 million Amount of unclassified semiconductor-related Small Business Innovation Research awards from the U.S. Defense Department to Texas enterprises from 2000-2007

$12.7 billion Value of Texas semiconductor exports in 2008

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More Insight Major semiconductor companies in Texas Freescale Semiconductor Texas Instruments Advanced Micro Devices Applied Materials Maxim Dallas STMicroelectronics Samsung Austin Semiconductor National Semiconductor Corp.

MEMC Southwest Cirrus Logic TriQuint Semiconductor Texas Toppan Photomasks

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atomically precise manufacturing, which essentially means building materials starting at the atomic level.

The company received $5 million in grants from the U.S. Defense Advanced Research Projects Agency and Texas Emerging Technology Fund, an investment program the state created in 2005 to catalyze the growth of high-potential industries.

Zyvex technology may one day replicate photosynthesis and allow tiny medical devices to perform surgery from inside the body.

Texas lays claim to the title of nanotechnology’s birthplace, and today, the state boasts an impressive roster of innovators that both develop and rely on nanotechnology research and development. Texas Instruments, Samsung and 3M have all put down roots in the state, where roughly 11.5 percent of the world’s silicon processing capacity hangs its hat.

SEMATECH, a global research consortium of computer chip manufacturers including the likes of Intel and IBM, represents roughly 60 percent of the world’s semiconductor production. The organization, founded in Austin, works closely with its member companies, identifying common, noncompetitive needs and working to increase efficiency in meeting those needs.

The word on the tip of everyone’s tongue

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Right: Coating circuit boards with polyurethane under a UV light

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Texas has an 11.5 percent share of the world’s silicon processing capacity.

these days is “convergence.”

“As we keep pushing the envelope in the research that we’re doing for our member companies, we’re continually running into that intersection of traditional chip manufacturing and ways that those (chips) are now being applied in other areas,” says Anne Englander, director of corporate relations for SEMATECH. “There’s certainly convergence of what’s happening in the chip area and what’s happening in areas like bioenergy.”

A critical factor in Texas’ success in fostering the development of nanotechnology is a top-flight network of research universities, which in turn produce a highly educated workforce.

“We’ve got the M.D. Anderson Cancer Center in Houston,

which does some of the world’s greatest medical research and several medical centers that are associated with the University of Texas and Rice and Texas A&M,” says Dan Holladay, SEMATECH advanced technologies manager. “And there’s a lot of energy research that goes on at these universities.”

Von Ehr of Zyvex works closely with Rice University researchers, and he underwrote the establishment of a nanotechnology program at the University of Texas at Dallas.

Supporting and working with local universities is an investment in the future of the industry, the way Von Ehr sees it, and Texas’ willingness to make that investment bodes well for the state’s future in nanotechnology.

“Texas is looking out for the workforce of the future,” he says. “The state’s just a great place to do business.”

Na-noteworthy texas ranks as national leader in nanotechnology Between 1995 and 2006, Texas ranked third nationally for the number of new nanotechnology-based firms and was tied for fourth place for the number of new nanotech-based firms with venture capital.

In 2007, the Project on Emerging Nanotechnologies ranked Texas fourth nationally as a top nanotechnology state based on the number of nano-related companies and third nationally based on the number of nano-related universities/ government research laboratories.

In May 2007, Rice University in Houston ranked

10th on Small Times magazine’s third annual national survey of universities for microtechnology and nanotechnology.

From 2003 to 2008 to date, the National Science Foundation awarded Texas universities and colleges approximately $31.6 million in nanotechnologyrelated projects.

Since 1976, Texas inventors have been issued more than 240 nanotech patents. From 2001 through October 2008, Texas inventors published applications for 45 nanotechnology patents.

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

In the Driver’s Seat Texas revs up vehicle, equipment production It’s estimated that one in five full-sized pickup trucks in 2008 was sold in Texas. Not just in the United States, but everywhere.

So it’s no surprise that Toyota announced in August 2009 that its San Antonio manufacturing facility would begin producing Tacoma pickups in spring 2010. The announcement for the San Antonio plant, whose nearly 2,000 employees began rolling trucks off the assembly line in November 2006, is one of the state’s long string of automotive manufacturing success stories.

General Motors has been producing automobiles in Arlington since 1954. In June 2004, GM celebrated the plant’s 50th anniversary by announcing a $160 million expansion and renovation of the facility. Between 1996 and 2006, GM invested $910 million investment in the Arlington plant.

Today, the Arlington facility, which employs nearly 600 workers, is GM’s only producer of full-size sport utility vehicles, such as the Chevrolet Suburban and the Cadillac Escalade.

In December 2008, Texas announced that Illinois-based Caterpillar would relocate one of its primary global manufacturing facilities to 1 million-square-foot facility in Seguin, creating some 1,700 jobs and generating more than $170 million in capital investment.

That news followed BAE Systems’ decision in February 2008 to open a 33,000-square-foot facility in Austin to build cage armor kits for Army vehicles, creating 30 new jobs to fulfill $34 million in orders. In March 2010, the company was awarded a $45 million contract to provide heat-sensing cameras for military reconnaissance vehicles.

– Michaela Jackson

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Air Force Texas’ aviation heritage gives lift to aerospace industry

Story by Bill Lewis

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ot even the sky is the limit for Texas’ aerospace and aviation industry, which is helping to set the pace for America’s exploration of space and the development of the newest generation of military and civilian aircraft.

NASA’s Johnson Space Center in Houston is home to the space agency’s Constellation program, which has the goal of returning astronauts to the moon and eventually reaching Mars.

The center, headquarters of America’s astronaut corps, is NASA’s lead location for the Space Shuttle and the International Space Station. Many leading private-sector firms, including Lockheed Martin, Bell Aerospace, Raytheon, Boeing and Gulfstream, have major Texas operations.

Texas and military aviation have a 100-year history that dates to march 2010 when Army 1st Lt. Benjamin Foulois flew a Wright biplane for

seven minutes 200 feet above Fort Sam Houston, the first time a governmentowned airplane was flown by a military-trained pilot.

The aerospace and aviation industry has grown into a major economic presence in Texas, with some 200,000 jobs at 1,700 companies.

They are attracted to the state’s open skies – and a lot more.

With 140,000 employees worldwide, Lockheed Martin is a global security industry leader and the largest defense company in Texas. Home to several Lockheed Martin operations, Texas has the most Lockheed Martin employees of any state, more than 20,000, including 14,500 employees in Fort Worth, where Lockheed Martin Aeronautics Co. is based.

A world leader in the design, research and development, systems integration, production and support of advanced military aircraft and related

Some 1,700 companies in Texas are involved in aerospace and aviation, including American Eurocopter, top left, and McTurbine, top right. Lockheed Martin Aeronautics Co., based in Forth Worth, builds sophisticated military aircraft including the F-22 Raptor.

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technologies, Lockheed Martin Aeronautic’s customers include the military services in the United States and allied nations throughout the world. Company products include the F-35 Lighting II Joint Strike Fighter, F-22 Raptor and F-16 Multi-mission Fighter. Another major Lockheed operation is Lockheed Missiles and Fire Control in Dallas.

Vought Aircraft Industries has operations in Dallas, where it is headquartered, and in Grand Prairie.

In Dallas, the company manufactures assemblies for the C-17 Globemaster III cargo aircraft; wings for the Global Hawk UAV; cabin structures for Black Hawk UH-60 variants; assemblies for the V-22 Osprey; wings for Gulfstream G550 and G500 business jets; flight control surfaces for the C-5 Galaxy cargo plane; and machining and fabrication of parts and components for commercial and military aircraft.

“Texas is a great place for business.

It has so much going for it: a central location, skilled workers and a long history in the aerospace industry,” says Tom Stubbins, vice president, human resources, for Vought Aircraft. “We also appreciate the support of the Texas delegation and our elected officials in Austin. They are at the forefront of

By the Numbers Look, Up in the Sky

200,000 Workers in Texas aviation and aerospace industries

1,700 Companies in aerospace and aviation industry in the state

$50,000 ph o t o s b y B ri a n M c C o r d

Average annual wage of aerospace and aviation industry workers in Texas

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42,795 Licensed pilots, private, commercial and helicopter, in Texas

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Major aerospace and aviation employers in Texas: • American Eurocopter • BAE Systems • Bell Helicopter Textron • Boeing Co. • Gulfstream Aerospace Corp.

• NASA Johnson Space Center

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• L-3 Communications • Lockheed Martin • Raytheon • Vought Aircraft Industries • Sikorsky Aircraft Corp.

making Texas a business-friendly state.”

In Grand Prairie, Vought makes assemblies of tail sections for Boeing 767 and 747 airliners and fuselage panels and floor beams for the Boeing 747 wide body jet.

American Eurocopter, headquartered in Grand Prairie, makes, markets, assembles, supports and provides training for Eurocopter rotary-wing aircraft in the United States, says

a plant in Amarillo. Bell Helicopter was the first company to obtain certification for a commercial helicopter and today manufactures a wide range of aircraft for military and commercial applications.

As the manufacturer of the military’s V-22 Osprey in a strategic alliance with Boeing, Bell Helicopter is rewriting the rules of mobility. These unique tilt-rotor aircraft lift vertically like a helicopter,

then fly like an airplane with twice the speed, three times the payload and five times the range of traditional helicopters.

The company’s breakthrough civilian tiltrotor aircraft, the BA609, combines the speed, altitude and comfort of a turboprop with the vertical takeoff and landing capabilities of a helicopter. It features seating for up to nine passengers and has twice the speed of typical helicopters of comparable capacity.

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spokesman Jeff Dronen. The company is a major provider of helicopters for civilian, law enforcement, military, homeland defense and other markets.

The company recently celebrated its 40th anniversary in Texas and marked the milestone of becoming the largest helicopter manufacturer in the U.S. Another aircraft manufacturer with deep roots in Texas, Bell Helicopter, is headquartered in Fort Worth and has

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

The Plane Truth Lone Star State aviation is no flight of fancy Legend has it that aviation was born in Texas in 1865, many years before Orville and Wilbur Wright successfully flew at Kitty Hawk, N.C. A teacher and minister named Jacob Friedrich Brodbeck took to the sky over Lubbock in an airship of his own design. Others believe the first flight in Texas took place over Houston in 1910.

Regardless of who’s right, since its very beginning aviation has had a significant impact on Texas’ imagination and its economy. The state today is a key player in the worldwide industry of flight. That comes as no surprise in a state that is home to more than 42,000 of the nation’s 600,000 licensed pilots, and where Gov. Rick Perry and two former presidents, George H.W. Bush and George W. Bush, served as military pilots.

The aviation industry creates jobs and strengthens communities across the state. In Corpus Christi, where the McTurbine division of Bell Helicopter is based, around 100 employees operate an industry-leading military and commercial helicopter turbine engine maintenance, repair and overhaul station.

On a larger scale, the corporate headquarters of four airlines are based in Texas – American Airlines in Fort Worth, Southwest Airlines in Dallas, Continental Airlines and ExpressJet, both in Houston.

Many major civilian and defense aerospace and aviation employers have operations in the state, including Vought Aircraft Industries, Raytheon, Lockheed Martin, Gulfstream Aerospace Corp., Boeing, BAE Systems, American Eurocopter and Bell Helicopter.

Other aviation milestones include: • Twenty colleges and universities and 36 public high schools offer a variety of aeronautical courses.

• More than 12.1 million departures and arrivals take place each year at Texas’ many commercial airports.

• Texas has 24 airports that are designated U.S. Customs Service ports of entry. There are 384 public-use airports and five public-use heliports in the state.

Twenty-three bodies of water have seaplane operations.

• Fort Worth Alliance Airport is the first purely industrial airport in the Western Hemisphere.

• There are several aviation museums throughout the state, including the Frontiers of Flight Museum in Dallas, the Lone Star Flight Museum in Galveston and the Silent Wings Museum in Lubbock.

– Bill Lewis

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Global Positioning Exports, foreign investment bolster the state’s economy

Story by Michaela Jackson

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f Texas were a country, its national gross domestic product would rank it as the 11th largest economy in the world, bigger than that of Australia, India, Mexico, Russia and just about every other country.

With such a vibrant economy, the Lone Star State is a global heavyweight in the export and foreign direct investment markets. Texas was the leading exporter in the United States for the eighth straight year, passing $163 billion in 2009, up more than 96 percent from just a decade earlier.

The most recent data available from the U.S. Bureau of Economic Analysis indicates that Texas received more than $119 billion in foreign direct investment in 2007. More than 368,000 Texans, or 4 percent of the state’s workforce, are employed by foreignowned companies.

The state’s 13 deep-water ports are a major Texas advantage in promoting global business. ph o t o b y bri a n M c C o r d

Top 5 exporting states (in billions) 200 163 150 120.1 100 57.3 50

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Texas

51.7

46.9

California New York Washington Florida

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Clockwise from far left: Headworks, the leading supplier of water and wastewater screening systems worldwide; Port-ACool LLC plant in Center; Sam Dunn Enterprises, Inc. in Longview

Texas encourages companies of all sizes to enter the global marketplace and provides support in the form of training and technical assistance.

“The Texas economy and the government in Texas understand exporting and understand selling products outside of the United States,” says Ron Crockett, president and director of marketing and sales at Shook Mobile Technologies, which does 50 percent of its business internationally. “The district export councils and the Department of Commerce are very proactive, and they help businesses small and large export products.”

Part of what makes Texas such an attractive hub for exports and a natural choice for foreign investment and global trade is its strategic location along the U.S.-Mexico border along side its strong transportation infrastructure that includes more ports of entry than any other state.

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Texas Welcomes You

In 2007, foreign-controlled companies employed 418,000 workers in Texas, the third largest total among the 50 states. Major sources of foreign direct investment assets in 2007 were the United Kingdom (20 percent), France (10 percent), Germany (10 percent) and Japan (9 percent). More than a third of foreign-investmentsupported jobs (35 percent, or 146,000 workers) were in the manufacturing sector in 2007. Foreign-controlled companies accounted for almost 10 percent of total manufacturing employment in Texas in 2007. Foreign investment in Texas was responsible for 4.3 percent of the state’s total privateindustry employment in 2007.

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Portable evaporative cooling units are manufactured at the Port-A-Cool LLC plant in Center and shipped globally.

Texas boasts 13 deep-water ports, eight airports with international service and the nation’s largest road and rail networks.

“One of the biggest advantages we have is that we’re situated close to the Port of Houston, which gives us easy access to the ports, and that’s certainly helped us from a freight standpoint,” says Ben Wulf, vice president of marketing and international sales for portable air conditioning manufacturer Port-ACool in Center. “Overall, the climate has been very favorable.”

Port-A-Cool’s exports equal about 25 percent of its business and sends

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products to roughly 65 countries.

The same assets are attractive for foreign companies looking to relocate to the United States or establish a stateside presence.

Michele LaNoue, CEO of Headworks, relocated her company to Texas 10 years ago from Austria. In the final decision phase, Houston was pitted against Chicago. Ultimately, Houston won on location – and warmer weather.

“Our initial market that we were focusing on was Latin America and South America and the U.S. and Canada,” LaNoue says. “So the port was important to us. And snow. That was the killer.”

In 2007, Samsung opened a $3.5 billion semiconductor manufacturing plant in Austin, and Toyota, which has been making trucks in the state since 2006, is transferring additional production to its San Antonio operation. Motiva, a joint venture that includes Saudi Refining and Royal Dutch Shell, invested $3.5 billion in 2006 to increase capacity at its Port Arthur refinery.

LaNoue is former chairman of the Department of Commerce district export council in Houston.

“I really do think if somebody wants to export,” she says, “it’s the best state to do it from.”

$163B

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23,784

Value of Texas exports in 2009, tops among the states

Percentage of manufacturing jobs in Texas dependent on exports

Number of exporting companies in Texas in 2007

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A $1 million Texas grant is aiding WHAM! in Allen in developing its next-generation video application. p h o t o b y b r i a n M c C o r d

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In Good Company Texas small business, population 386,000, is big and getting bigger

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A $750,000 Texas Emerging Technology Fund investment in 2007 assisted StarVision Technologies, a company in College Station that develops optical-based guidance, navigation and surveillance systems.

Story by Michaela Jackson

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here’s nothing small time about Texas small business.

The Lone Star State has made entrepreneurship a priority, equipping startups with both financial support and technical assistance. In 2005, the state rolled out the Texas Emerging Technology Fund, which has inveted more than $234 million with the intention of ushering new technology to the marketplace and creating high-skill jobs.

“TETF is a very competitive, highly sought-after investment fund that basically bridges the gap between tech start-ups and companies that are already in their growth stage,” says Jose Luque, president and CEO of the Austin-based identification technology company, Merkatum, which received a $1 million TETF investment.

“This process has been of tremendous value to us,” he says, “not only because of the capital, which has helped us accelerate our growth process, but because the strategic involvement with our investor, TETF, has been very proactive and very positive.”

Other recent success stories include:

• WHAM!, a Collin County company, received a $1 million investment for its next generation video applications, which enable high definition consumer video calling.

• Mayan Pigments, in El Paso, received a $250,000 TETF investment in 2008. The company is commercializing an eco-friendly manufacturing process and resulting pigments that are not heavy metal-based.

• StarVision Technologies Inc., in College Station, develops intelligent optical-based guidance, navigation and surveillance systems. The company’s SpeedStar product will give domestic aerospace contractors, such as the military and NASA, a way to reduce their dependency on foreign made guidance and navigation products.

• Falcon International, in Odessa, received an $850,000 TETF investment. The company produces armor plating for Humvees and other military equipment.

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

across the state is a key asset for many research-based businesses.

StarVision, a high performance products manufacturer that serves the aerospace and intelligence industries, works closely with Texas A&M University, even counting former faculty members among its staff.

Michael Jacox, StarVision president, says the company’s relationship with Texas A&M is the most important factor in its Texas location.

“The advantage to us is that Texas A&M has one of the top aerospace programs in the country, and because of that, we can collaborate with the faculty there and leverage the national recognition that they have to create this company and license key technology,” Jacox says. “We’ve got access to an excellent workforce.”

The company, which was founded in 2003 and now employs 15 staff members, received a TETF investment of $750,000 in 2007.

“We also were able to use that as leverage on getting additional contracts from sources outside the state,” Jacox says. “That kind of foresight, in terms of setting aside those dollars, has been unique in Texas.”

TexasSiteSearch.com The Texas Economic Development Corp. provides a free interactive map tool, data source and clearinghouse for commercial and industrial property listings in Texas.

TexasSiteSearch.com includes clickable map layers that let users explore geographic assets, including transportation infrastructure, universities, and Enterprise Zones.

Users can access detailed demographic, workforce, and consumer profiles for every city and county in Texas, as well as for the immediate radius surrounding a given property.

J e f f A d ki n s

Texas’ hands-on approach to small business is generating results. Roughly 386,000 Texas companies, or 98.7 percent of the state’s employers, are classified as small businesses.

Texas was second on the 2009 Inc. 500 list for number of fastest-growing private companies.

Nearly half of all new jobs in Texas from 2004 to 2005 were created by small companies.

Small enterprises find a welcoming environment in Texas, not only because of the assistance they receive from the state, but also because of the overall favorable business climate.

A wealth of educational resources, an emphasis on fair tax treatment and a strategic location contribute to a climate that nurtures growth.

“It is very compelling to be here, because, not only do we have the technology sector, which is very strong and growing in entrepreneurial initiatives, but we have the government sector and the academic sector that feed on each other and help companies like ours really to generate value,” Luque says.

“We must also remember that Texas lies on the border with Mexico, and it’s a great gateway between both countries and Latin America to do business.”

The network of universities sprawling

The Autonomous Aerial Refueling System is being developed by StarVision Technologies.

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Star Power From big cities to wide-open spaces, the Lone Star State is open for adventure

Story by Amy Stumpfl

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From left to right: Lake Cyprus Springs in Franklin; Traditions Club in Bryan

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rom the sweeping sunsets of the Panhandle Plains to the gorgeous beaches of the Gulf Coast, Texas offers unbelievable diversity. But beyond impressive scenery, it’s the wide range of culture and activities that makes Texas such a unique experience for visitors.

“Whether you’re interested in exploring the great outdoors or sampling the state’s rich cultural influences, there’s really something for everyone,” says Brad Smyth, deputy director of tourism with the state’s Office of the Governor, Economic Development and Tourism. “There

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are wide open spaces and Western heritage, exciting cities with worldclass museums, shopping and dining, family attractions, golf, birding, culinary experiences. It’s a big list, and it just continues to grow.”

Of course, tourism is big business in the Lone Star State, with total direct travel spending for 2008 reaching $60.6 billion. In fact, 194 million domestic visitors traveled to and within Texas in 2008, and travel spending directly supported 544,400 jobs with earnings of $16.8 billion for that year.

Smyth says that major cities such as Houston, Dallas, Fort Worth, Austin and San Antonio are extremely popular destinations – not only for personal travel, but also for business meetings and conventions.

“Live music, museums, professional sports, history – each city has its own charm and its own story to tell,” he

Texas Tourism By the Numbers

$60.6 billion Total direct travel spending in Texas in 2008

544,400 Number of jobs in Texas directly supported by the travel industry

$23.8 billion Gross domestic product of the Texas travel industry in 2008

Clockwise from top left: Fishing near Port Aransas; Horses grazing in the Palo Duro Canyon; Palo Duro Canyon State Park near Amarillo; River Walk, or Paseo del Rio, in downtown San Antonio

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$4 billion Local and state tax revenues directly generated by travel spending in Texas in 2008

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Texas travel spending by visitor source

Direct travel spending in Texas

Texas

$27.1 billion

2008

$60.6 billion

Other U.S.

$19.1 billion

2007

$56.7 billion

International

$4.9 billion

2006

$53.8 billion

Other Travel (Includes travel agency bookings)

2005

$49.2 billion

$9.5 billion

2004

$44.4 billion

Source: Dean Runyan Associates study for Texas Tourism, 2008

Source: Dean Runyan Associates study for Texas Tourism, 2008

Texas State Aquarium in Corpus Christi

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its colorful culture and history.

Tourism is a mainstay of the San Antonio economy, contributing $11 billion annually and employing one out of every eight workers in the metropolitan area, says Ronnie Price, assistant executive director of the San Antonio Convention & Visitors Bureau.

“The city’s future promises even

more with the recent extension of the River Walk,” he says One of the top attractions in Texas, the River Walk has doubled in size to more than four miles connecting the original stretch of cafes, shops and hotels to the San Antonio Museum of Art and the Pearl Brewery. By 2014, the River Walk will extend to a

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says. “And Texas also offers some great options when it comes to meetings and conventions, including world-class convention facilities and plenty of entertainment options.”

San Antonio offers a prime example. Home to the storied Alamo and the newly renovated River Walk, this bustling city is widely known for

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

T o d d B e n n ett

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stunning 15 miles reaching four of the city’s Spanish colonial missions.

The JW Marriott San Antonio Hill Country Resort & Spa is a new addition to the region’s attractions.

Set in the Cibolo Canyons countryside, the resort offers two TPC golf courses and a lavish spa.

For those who like the outdoors, the state is chock full of winding roads and wide open spaces. And with adventure waiting in every corner, Texas attracts plenty of visitors looking to take a walk on the wild side.

Scenic preserves such as Palo Duro Canyon State Park, Big Bend National Park and Sabine National Forest offer everything from hiking and mountain biking to camping, boating and fishing. And city slickers can “cowboy up” at one of more than 70 guest and working ranches around the state.

“Many people do not associate beach vacations with Texas, but we have approximately 600 miles of coastline along the Gulf of Mexico,” Smyth says, citing destinations such as Galveston, Corpus Christi, Port Aransas and South Padre Island.

“We have more than 800 golf courses, set among rolling hills, pine trees and prairies, as well as four PGA tournaments. And because of our moderate climate, visitors can enjoy year-round adventures and plenty of surprises along the way.”

For more on travel and tourism in Texas, go to www.traveltex.com.

From top: A marina in Port Aransas; Old Town Helotes

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Pulling Out the Stopper Texas uncorks a passion for wine production As the nation’s fifth-largest wineproducing state, Texas has plenty to toast these days. In fact, the burgeoning wine industry contributes roughly $1.35 billion a year to the state’s economy, supporting nearly 9,000 jobs.

“This state benefits enormously from the recent explosion of wine tourism,” says Bobby Champion Jr., state coordinator for wine marketing.

“Wineries attract visitors to destinations all over Texas and that’s a real boon for merchants, hotels, restaurants and other businesses in the region. Wine festivals and regional wine trails draw large crowds, and the result is very positive for the Texas economy.”

Champion says that the state is home to 181 wineries – most of which are small, family-owned operations – from Lubbock to Del Rio and Galveston to El Paso.

“These are passionate, hardworking people. And although these wineries are competitors, there’s great synergy among them as well.

They share ideas because they want to see each other do well and succeed,” Champion says.

Anchored by eight wine trails located throughout the state, the industry attracts nearly 1 million visitors each year who have come to realize they don’t have to travel to Tuscany or Napa to find good wine.

“And because so many of these wineries are small, you’re likely to get to spend some one-on-one time with the winemaker himself,” Champion says. “Texas is blessed with a wealth of tourism opportunities, and wineries greatly enhance the attractiveness of our state to visitors.

The impact is statewide. Wineries and tasting rooms are located in our rural regions, in small towns and in our most bustling cities, making access convenient for Texans and visitors alike.”

– Amy Stumpfl

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Gallery

Tubing the San Marcos River Photo by Brian McCord

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The Alamo in San Antonio Photo by Brian McCord

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Gallery

Monahans Sandhills State Park, located approximately 30 minutes west of Odessa Photo by Brian McCord

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Enchanted Springs Ranch in Boerne Staff Photo

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Handcrafted boots at J.L. Mercer Boot Co. in downtown San Angelo Staff Photo

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Oil derrick in Lubbock Photo by Brian McCord

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Kids sailing the inlets of downtown Corpus Christi Photo by Brian McCord

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Technology

The Chips Are Up Texas tech plugs into strong network of research, resources Story by Bill Lewis

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ome of the world’s best-known computer and information technology companies and some of the tech industry’s leading researchers have a Texas home address.

Dell, Texas Instruments and Rackspace are among the 25,937

high-tech companies that call Texas home, which accounts for the state ranking second nationwide in the number of high-tech workers, the size of the high-tech payroll and the number of businesses. More than 474,000 workers are employed in the state’s high-tech sector.

TechAmerica’s Cyberstates 2009 report also says the average tech industry job in Texas paid 84 percent higher than the average private-sector wage in 2007. The report goes on to say that Texas had the largest gains in tech-sector employment that year, surpassing California.

The state is home base to major global technology players, such as Texas Instruments in Dallas.

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Clearly, the state and its citizens benefit a great deal from the presence of so many companies in the IT cluster. Those benefits go both ways, says Gray Mayes, Texas Instruments Inc.’s government relations director.

TI launched its new, 1.1 millionsquare-foot computer chip manufacturing plant in Richardson in late 2009. The plant eventually will employ up to 1,000 people.

“In addition to the factors that make Texas an attractive place to invest – lower taxes; good energy, water and logistical infrastructure; a favorable tort climate – the commitment by the state and the University of Texas to invest heavily in basic research at the University of

Texas High-Tech Industry Facts

25,937 Companies

474,131 Employment

$1,614 Average weekly wage

2

Rank among states in high-tech employment

$39.8B J e f f A d ki n s

High-tech payroll in Texas

Source: TechAmerica Cyberstates, 2007

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A n t o n y B o shier

Texas at Dallas was a deal maker.

This supports TI’s need for engineering talent in specific disciplines and noncompetitive basic research that is crafting the future of the semiconductor industry eight to 12 years out,” says Mayes.

Texas’ commitment to research brought renowned researcher Ravi Sandhu to the Institute for Cyber Security Research at the University of Texas at San Antonio. The institute’s mission is to pursue world-leading research with realworld impact, including development of technologies that can be commercialized. The university received a $3.5 million Texas Emerging Technology Fund award from the state to recruit Sandhu.

“Cyberspace is becoming ever more pervasive and entangled with physical space and our daily lives. We need new methodologies and endless innovation to keep cyberspace safe for our nation and its individual citizens.

UTSA and its Institute for Cyber

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Computer giant Dell’s world headquarters in Round Rock

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Security put Texas in a prominent position for this effort,” he says.

Rackspace, the international leader in hosting and cloud computing, moved into its new San Antonio headquarters with the assistance of an award from the Texas Enterprise Fund. The company announced it would invest $100 million in the project and create 3,000 jobs in San Antonio and another 1,000 statewide.

Dell has had its headquarters in Austin and neighboring Round Rock since native Texan Michael Dell founded the computer company there in 1984. But there are other compelling reasons why Dell has remained and grown substantially in Central Texas. Kip Thompson, vice president, Dell global facilities and strategic growth, cites the positive economic environment

in the state.

“Even in this challenging economy, Texas is creating an economic development environment that enables continued growth in good jobs today and in the future,” Thompson says. “Texas is investing and encouraging innovation in the state, and providing the framework for developing a workforce for a 21stcentury economy.”

Companies such as Texas Instruments make the Lone Star State a magnet for investment and innovation in information technology.

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Kickstarting Innovation Texas emerging tech fund makes ideas a reality Across the Lone Star State, entrepreneurs and researchers are turning new ideas into innovative products and services with the help of the Texas Emerging Technology Fund.

“Texas is creating the innovation economy of the future, building an innovation ecosystem,” says Alan Kirchhoff, Emerging Technology Fund director.

Administered by seven Regional Centers for Innovation and Commercialization (RCICs), the TETF speeds up the development and commercialization of new technologies by small businesses across the state and attracts world-class researchers to Texas universities, with the goal of bringing their ideas to the marketplace. The TETF also provides Matching Awards to create public-private partnerships that leverage the strengths of universities, federal grant programs and industry.

At the request of Gov. Rick Perry, the Legislature created the TETF in 2005 with an initial appropriation of $200 million. Building on success, lawmakers appropriated an additional $75 million in 2007 and $200 million in 2009.

By the beginning of 2010, 130 early-stage technology companies had received investments through the TETF’s Commercialization Awards.

As a result of the TETF’s Research Superiority Awards, 57 world-class researchers had been recruited at up to 15 universities. Wasting no time, those researchers quickly spun out 14 new companies as a result of their work and filed 31 patents, says Kirchhoff.

“We’re attracting people who want to do world-class research and also want to commercialize their ideas. They’ll create wealth and they’ll create jobs in Texas,” he says.

The RCICs work closely with applicants from their regions and act as the local agent for the TETF Advisory Committee, which makes recommendations to state leadership. Each RCIC assists applicants with proposal development, post-proposal debriefings and commercialization activities. The advice provided by the RCICs is invaluable, Kirchhoff says.

“Texas is a diverse state. RCICs and the TETF help us take a regional approach to developing an innovation economy,” Kirchhoff says.

– Bill Lewis

divide and conquer seven regions of texas boost Tetf Texas’ Regional Centers for Innovation and Commercialization, established to administer the Emerging Technology Fund: • Central Texas RCIC

• The Rio Grande RCIC

• Gulf Coast RCIC

• Trans-Pecos/El Paso RCIC

• North Texas RCIC

• West Texas Coalition for Innovation and Commercialization

• South Texas RCIC

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

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Energy

Opportunity by the Barrel Oil and gas production, petrochemicals fuel the state’s economy

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stats

Story by Bill Lewis

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Texas Annual Crude Oil Production 2005

2006

2007

2008

2009 0

50

100

150 200 250 in millions of barrels

300

350

400

Texas Natural Gas Production 2005

2006

2007

2008

2009 0

1

2

3

4

in billions of Mcf Source: Texas Railroad Commission

5

6

7

8

here’s a reason oil is called Texas Tea. Crude oil and natural gas are produced in 218 of the state’s 254 counties, and Texas is home to 26 operating refineries that produce an average of 1 million barrels of oil per day.

More than any other industry, oil sets Texas’ economy apart, says William Ennis, vice president of the Texas Oil & Gas Association.

“An industry once written off by some has roared back to life in recent years, contributing record amounts to government coffers and creating some of the highest paid jobs in Texas,” says Ennis. “Texas’ oil and gas businesses have brought together technology, manpower and investment to keep the state No. 1 in energy production despite turbulent times in energy markets.”

The state’s marketed production of natural gas represents one-third of the total U.S. supply. As an oil and gas producer, the state of Texas also is a global leader, contributing approximately 5.3 percent of worldwide refinery capacity. Natural gas production in the state exceeds 5 trillion cubic feet a year.

Under the threat of national and international economic and financial crises, Texas’ oil and gas industry has been the fuel keeping the state fiscally and economically resilient, he says, citing the association’s 2009 report.

How big is the industry’s economic impact? The oil and gas industry employs almost 200,000 Texans in jobs that pay an average of more than $129,000 per year, nearly triple the amount paid by by the average private-sector employer. Those jobs have a huge economic impact, but T e x asE c ono m i c D e v e lop m e n t G u i d e . c o m

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More Insight Chemical Attraction Texas is the nation’s largest chemicals producer, manufacturing 14 percent of the nation’s value of chemical output.

Major Texas chemical producing employers include Celanese, Chevron Philips Chemical, ExxonMobil Chemical, Dow Chemical, Huntsman, Lyondell Chemical and Shell Chemical.

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The Gulf Coast complex of chemical plants and refineries is the largest petrochemical complex in the world and home to more than 400 chemical plants employing approximately 37,000. Houston alone accounts for nearly 40 percent of the nation’s base petrochemical capacity.

Ennis says an even greater benefit results from the industry’s ripple effect through the economy.

Purchases of machinery, pipe, concrete, steel, construction, engineering and legal services, land, electrical power and other expenditures have a powerful effect throughout the state, not just in the “oil patch.” The oil sector’s jobs and

spending support other local businesses, such as banking, hotels, restaurants and dry cleaners. For every job created in petroleum refining, 14 additional jobs are created in other industries, Ennis says. The only industry that matches that amazing record is the petrochemical manufacturing business, which generates 17 additional jobs for

every job it creates.

Texas is home to 200 chemical plants that have $50 billion in assets and export products valued at $35 billion a year, says Hector Rivero, president and CEO of the Texas Chemical Council.

Texas represent two-thirds of the U.S. chemical market, he says, and accounts for 500,000 jobs in Texas,

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S ta f f P h o t o

More than 200,000 people work in Texas’ oil and gas industry.

a number that includes contractors and suppliers as well as the approximately 70,000 people directly employed by the industry.

Those jobs are the ticket to a better life for many Texans, he says.

“Someone can graduate high school, get an associate’s degree or skills training, and have a very high quality of life. Our industry has been the economic engine that has allowed many people to have a comfortable life, have a nice house and two cars and send their kids to college,” he says.

Texas petroleum and chemical industries touch the lives of everyone in the United States every day, says Rivero.

“Think about everything in your home and car. People don’t know what we make, but we’re pretty much in everything,” he says.

Oil and Gas Industry By the Numbers

$63 billion Annual economic contribution of Texas oil and gas producers

27 Operating refineries in the state

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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4.7 million Daily processing capacity of Texas petroleum refineries

200,000 Employment in Texas oil and gas industry

Lone Star State Takes Shine to Renewables It’s impossible to talk about the oil and gas industry without mentioning Texas, and for good reason. The state is the nation’s top producer of those fuels. But Texas is a power player in other ways as well.

In addition to being an oil and natural gas leader, Texas is a major player in renewable and sustainable energy, including wind and biofuels.

As of 2009, the state had an installed wind generating capacity of more than 9,400 megawatts, ranking it No. 1 among all states.

Texas is home to four of the nation’s largest wind farms. One of the largest, the Horse Hollow Wind Energy Center, has more than 420 wind turbines that together produce 735.5 megawatts, enough power to light more than 220,600 homes.

Recent legislation laid the groundwork for large transmission lines that will speed up the adoption of wind power.

Biofuels are another growth industry. Texas is the nation’s leading biodiesel producer, with 30 biodiesel refineries. Texas also had three operational ethanol plants and another under construction in 2009.

When it comes to America’s most abundant fossil fuel – coal – Texas is the nation’s fifth-largest producer and is the top producer of lignite, the type of coal most commonly used in electric power plants.

Nuclear energy is another important power source in Texas, which gets about 6 percent of its electricity from two plants.

The Comanche Peak Project in Somervell County and the South Texas Project on the Gulf Coast in Matagorda County have the capacity to generate about 4,800 megawatts of electricity.

– Bill Lewis

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Education

Class Acts Higher education keeps Texas commerce, research thriving

Story by Joe Morris

University of Texas at Austin

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umbers don’t lie, and when it comes to Texas’ colleges and universities, they speak a very positive truth.

The state has upward of 200 institutions of higher education, with a roster ranging from strong local community colleges to the University of Texas and Texas A&M networks. Colleges and universities tackle everything from workforce training to breakthrough research and development, and from technology transfer to well-trained graduates it all finds its way into the workforce.

“The universities play a role in job development in that they provide a pathway for employees to continue their education, and they also are an attraction for potential employers when they are looking at an area for relocation,” says MacGregor Stephenson, assistant commissioner of academic affairs and research for the Texas Higher Education Coordinating Board.

On the research and development side, Stephenson adds, Texas universities continue to put together cutting-edge degree programs across a spectrum of fields, from life

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sciences to energy to engineering, and faculty research drives innovation and business creation in the surrounding communities.

“The industries that spring up can help guide that research, and the curriculum, by providing direction in terms of what they need,” he says. “It’s a symbiotic relationship between business, industry and higher education here, and we have all the components to meet current and changing needs through good, strong cooperative partnerships.”

The importance of that “town and gown” relationship can’t be emphasized enough, says Dr. Steven Nichols, professor of mechanical engineering at the University of Texas at Austin’s Cockrell School of Engineering, holder of the Chair of Free Enterprise and director of the school’s Advanced Manufacturing Center.

“We are able to commercialize our technology, and by doing so have created new jobs and helped save lives,” Nichols says. “Our business incubators are having a real

Well Schooled

Left: The Jack E. Brown Engineering Building at Texas A&M campus in College Station S ta f f P h o t o Top: Students walk past the Biological Sciences Building West at Texas A&M University.

Students enrolled in public and private higher education institutions in Texas

25.2 Percentage of Texas population with a bachelor’s degree

$11.4 billion State general revenue appropriations to higher education in Texas in 2008-09, up 12.7 percent from 2006-07

74,153 Bachelor’s degrees awarded by Texas public universities in fiscal 2007

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What’s Online Learn more about the standout colleges and universities in Texas at TexasEconomic DevelopmentGuide.com.

impact, and we are now working on building a collaborative effort between all our colleges on campus, including creating intellectual property clerkships for law students, so that we can get even more involved with transfer and commercialization.”

Rice University in Houston has become a national leader in tech transfer, and stands as a model for other Texas institutions as they look to expand their own programs, says Jim Coleman, vice provost for research.

“We’ve only been doing tech transfer for a little more than 10 years, but we have become a hot spot for nanoscience and nanotechnology,” Coleman says. “Our faculty is disclosing inventions at an extraordinary rate, and we have been ranked first in the country in industry-impact factor, or how our patents are driving other new patents.”

The university’s research has been utilized in 40 startup companies to date, says Mary Lynn Fernau, director of marketing for the Rice Alliance for Technology and Entrepreneurship, with more coming all the time.

“Texas is the third-largest state for venture capital, and we are helping to build that by helping and highlighting these tech-transfer companies,” Fernau says.

The university’s efforts focus on medium and large companies in the marketplace as well as startups, so it can help companies at all levels of development, says Nila Bhakuni, director of the university’s Office of Technology Transfer.

“We’ve been making a stronger effort to balance that portfolio in terms of licensing to companies of all sizes, so we have a better chance of commercializing our technology,” Bhakuni says. “And with the breadth of technology that we do have, we’re going to be successful well into the future.”

University of Texas at Austin

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ph o t o s b y B ri a n M c C o r d

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Local School, Statewide Impact Changing economy highlights role of Texas’ community colleges For companies looking to train or retrain their workers, or people who want to expand their skills, there’s no better destination than the community college network in Texas.

As workers look to learn new crafts or sharpen existing skills and companies retool their operations, the colleges are nimbly responding to specific needs in their communities, says Steven Johnson,

associate vice president for external relations for the Texas Association of Community Colleges.

“One of the distinct advantages the colleges have is that they are independent local institutions,” Johnson says, “They have a locally elected board and are independently accredited, so they have natural connections to the workforce and economic

Dumas Economic Development Corporation

development officials in the areas they serve.”

Community colleges are often the first and preferred provider for workforce development and training, allowing them to expand their offerings into areas of demand.

“West Texas might need welders, while elsewhere there is a need for processmanagement training,” Johnson says. “The colleges can ramp up those programs quickly, and then ramp them right back down until they’re needed again. They also can build on these and related academic programs over time, so that their graduates can get an associate’s degree or transfer to a four-year university if they continue their studies.”

Even better, the colleges are able to work with people whose skills are no longer in demand, so that they can train for the jobs that are coming rather than wait for those that may never reappear.

“Community colleges have become the largest graduate schools in the United States,” Johnson says. “We have a lot of people who have a bachelor’s degree, but need to develop new skills for the jobs that will be here as they economy picks up. Many of these people are employed, but they realize that they need more skills, so they are coming here to retool.

– Joe Morris

Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

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Transportation

By Land, Sea and Air Texas ranks ‘big’ in airports, roads, rail, ocean ports

Story by Kevin Litwin

A network of major interstates and highways and some 300 commercial airports make Texas a transportation hub.

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verything is bigger in Texas – even the statistics.

The state’s fully integrated and sophisticated transportation network makes it a destination of choice for distribution and logistics.

The state boasts 300 airports, more than any state in the nation, including 27 commercial airports.

Dallas/Fort Worth International is the world’s fourth-largest airport. Houston’s George Bush Intercontinental Airport offers service to more destinations in Mexico than any other facility in the United States.

But airports aren’t the only aspect

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First In Flight

• Dallas/Fort Worth International Airport is the fourth-busiest airport in the nation and eighth-busiest in the world in 2009.

• George Bush Intercontinental Airport in Houston ranked

No. 8 in the U.S. and 17 in the world in 2009 for passenger traffic.

• Three major airlines – Continental Airlines, Southwest

Airlines and American Airlines – are based in Texas and are Fortune 500 companies.

• United Space Alliance (USA), one of the world’s largest space

operation companies is headquartered in Houston. USA is the prime contractor for NASA’s space shuttle program.

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of the Texas transportation system that is big. The state also has the largest highway and railway systems in place in the United States in terms of mileage. A network of Foreign Trade Zones spread throughout the state provides tax and other cost advantages for bringing goods in from foreign markets, and the state includes 26 border entry points providing access to Mexico and Latin America.

Excellent highways and railroads help make Texas a destination of choice for distribution and logistics, providing companies with efficient and cost-effective ways to ship and

Commercial Airports in Texas with more than 1 million passengers per year

Dallas/Fort Worth Int’l

Dallas Love Field

El Paso Int’l

Austin-Bergstrom Int’l

Houston Hobby

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San Antonio Int’l

Houston Bush Intercontinental

receive raw materials. In fact, Expansion Management magazine states that six Texas locations – Dallas, El Paso, Fort Worth/ Arlington, Houston, Laredo and San Antonio – are among the top metro areas in the country for transportation and distribution.

From the Dallas-Fort Worth Metroplex, for example, trucks can reach 93 percent of the nation’s population within 48 hours, and nearly 40 percent within 24 hours. It Left to right: Port of Corpus Christi; Railroad track in downtown Temple

More Insight Major Op-PORT-unity • Texas ports, including 13 deep-water ports, move an average of 317 million metric tons of cargo annually, accounting for nearly 17 percent of the total U.S. port tonnage and more than half of U.S. foreign imports and exports.

• Port activity is tied to nearly 1 million jobs, more than $30 billion in personal income and business sales topping $178 billion.

• Marine and intermodal transportation accounts for nearly $65 billion. Annually, ports bring in almost $5 billion in local and state tax revenue.

• Ports positively affect Texas agricultures by transporting export products such as wheat, corn, rice, peas and vegetable oils.

Source: Texas Ports Association

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Operators monitor planes arriving and departing (far left) from the control tower (above) at the Dallas/Fort Worth International Airport.

also helps that every mile of federal and state highway in Texas is paved.

The railroad has been a big part of Texas since 1853, when cowboy wranglers began herding livestock into freight cars. Today, 45 railroads operate in Texas on almost 12,000 miles of track, and there are 26 border points that provide direct access to the markets in Mexico and Latin America.

The Texas Gulf Coast is home to 29 seaports. The Port of Houston is the nation’s busiest for foreign tonnage and second in overall tonnage. Three of the top U.S. seaports by cargo volume are located in Texas, which has 13 deep-water ports with channels at least 30 feet deep, including Corpus Christi, which ranks sixth in the country for tonnage. “We provide quick access to the Gulf of Mexico and then the entire

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

United States inland waterway system,” says Patricia Cardenas, community affairs manager for the Port of Corpus Christi. “And in 2010, we are about to get even bigger, just like everything in Texas.”

Corpus Christi has embarked upon a channel-dredging project in 2010 that will ultimately allow the port to accommodate heavier freighters.

“Right now, about 90 percent of our shipping business is related to the petrochemical industry, but we want to diversify – and that means dredging our La Quinta channel,” Cardenas says. “Once completed, it’s going to make Corpus Christi even bigger in importance than it already is.”

Texas Transportation by the Numbers

300 Airports, including 27 commercial facilities in 24 major cities, eight with international service

22,337 Length of rail system in kilometers, largest in the U.S.

335 million Tons of freight carried each year by the 45 rail carriers that operate in Texas

671,594 Length of Texas road system in kilometers, the largest road system in the nation

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Just Plane Busy Fort Worth Alliance is a cargo-handling heavyweight Southwest regional sorting hub for FedEx. Besides North America, FedEx now offers daily service to Asia from the airport.

Fort Worth Alliance Airport is owned by the city of Fort Worth and managed by privately held Alliance Air Services. Also a key part of the airport is Foreign Trade Zone 196, which allows goods from foreign destinations to be brought into the

Fort Worth Alliance Airport is the first purely industrial airport in the Western Hemisphere.

The facility deals only with the transport of cargo, not passengers.

The airport can accommodate virtually any air cargo, corporate aviation or military freight need and is a key component of the AllianceTexas planned community, which is located in northern Fort Worth.

AllianceTexas was a construction development idea of Ross Perot Jr. more than two decades ago, and today the community features 7,100 single-family residences and 220 companies in its office and industrial parks – many of which utilize Fort Worth Alliance Airport for their industrial shipping needs.

The full-size airport can land jets of any size, and already houses an Antonov An-124 – a Russian-built aircraft that happens to be the world’s largest cargo plane.

Fort Worth Alliance is also the

country tax and duty free as long as they remain in the zone.

And there is news that cargo traffic at Fort Worth Alliance could grow significantly in the near future, since AllianceTexas is only 40 percent developed. A major addition will come in 2011 with the opening of a new hospital off Interstate 35W that will serve the surrounding area.

- Kevin Litwin

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Dumas Economic Development Corporation

The Control Tower at the Fort Worth Alliance Airport

Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Health

A Wealth of Health Texas hospitals are world leaders in research, treatment

Story by Bill Lewis

I

t’s no surprise that the use of life-saving air ambulances was pioneered at Texas Medical Center in Houston or that more new anticancer drugs are evaluated at the M.D. Anderson Cancer Center, also in Houston, than at any other institution in the United States.

Texas is a world leader in many

industries, and health care is no exception.

With more than 81,000 beds available at 583 hospitals, communities across Texas enjoy the benefits of state-of-the-art health services close to home.

“Texas is fortunate to have a diverse network of hospitals providing needed

services throughout the state,” says Dr. Dan Stultz, president and CEO of the Texas Hospital Association.

“Whether it’s delivering babies or offering the highest level of trauma care, Texas hospitals are committed to providing safe, high-quality health care to the communities they serve.”

Baylor University Medical Center at

583

81,000

350,000

Hospitals in Texas

Beds available at Texas hospitals

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

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Dallas, for example, is developing North Texas’ first dedicated cancer hospital along with a new outpatient center that will be the region’s largest.

When completed in 2013, the new cancer hospital will allow a more personalized medicine program for patients and will empower clinicians to conduct more research studies with a focus on breakthroughs that directly

affect patients.

“It will be our goal to be a nationally and internationally renowned cancer-care destination, building on Baylor Dallas’ commitment to providing advanced cancer treatments and leading the charge of improvement in cancer care through research,” says Joel T. Allison, president of Baylor Health Care

System, which includes 25 hospitals.

Texas A&M Health Science Center is growing in Central Texas. Just 30 months after receiving funding from the state Legislature to establish a new medical education campus in Williamson County, the HSC held a ribbon cutting in late 2008 for the first building on the Round Rock campus.

“The opening of this building is a

With nearly 600 hospitals across the state, Texas boasts a network of world-class health-care facilities.

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great first step in our commitment to the people of central Texas to increase the educational offerings for health care professionals,” says Dr. Michael D. McKinney, chancellor of the Texas A&M University System.

Others are talking about Texas hospitals’ commitment to excellence.

For 17 consecutive years, Baylor University Medical Center has been included in U.S. News & World Report’s guide to America’s Best Hospitals. For seven straight years, Temple-based Scott & White Healthcare has been included on the Thompson 100 Top Hospitals national list. Based on clinical excellence, patient safety and satisfaction and community responsiveness, the study recognizes Scott & White as one of the country’s elite teaching hospitals.

Just as impressive, member institutions of the Texas Medical Center (known as the world’s largest medical center) have been recognized

by U.S. News & World Report’s annual best hospital survey as being among the best providers in all 16 adult and 10 pediatric categories of care.

“The Texas Medical Center contributes more than $14 billion in economic impact to the region annually,” says Richard E. Wainerdi, president, CEO and COO. “However, we think it is just as important to measure the impact of the 5.5 million patients we serve annually and the dramatic breakthroughs that occur on a daily basis due to the $1 billion investment made in cutting edge research activities.”

Texas A&M Health Science Center in Round Rock

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The Doctors Are In New medical school serves a need in El Paso Texas Tech University Health Science Center’s new four-year medical school in El Paso – the only one on the U.S.-Mexico border – is expected to dramatically boost the local economy while improving access to health services throughout the region.

“It’s going to reinvigorate the health-care field in El Paso and all along the border,” a historically underserved region, says Dr. Manuel de la Rosa, who is a pediatrician and the medical school’s founding dean.

The Texas Tech University Health Sciences Center Paul L. Foster School of Medicine admitted its inaugural class of 39 students in summer 2009 and expects to admit 60 students in 2010 and 80 in 2011.

As they train, students will help treat patients at the 12-story children’s hospital now under construction and in new or expanded facilities under construction at the University Medical Center and the El Paso Psychiatric Center.

Those projects represent $320 million in construction costs in addition to $100 million spent for construction of facilities at the Foster School of Medicine. Annual payroll for physicians and Ph.D.s on the faculty and support personnel will add another $45 million to the local economy, says de la Rosa. The school currently has

230 full-time faculty members – a number expected to grow by 100 in two years – and 500 volunteer and part-time instructors.

The medical school addresses a critical shortage of physicians in El Paso, where there are fewer than 110 doctors for every 100,000 residents. The Texas average is 150 physicians per 100,000 people. The national average is 198. Doctors who train at the Foster School of Medicine are likely to remain in the region, says de la Rosa. – Bill Lewis

Texas Tech University Health Science Center

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 • (806) 934-3332 • www.dumasedc.org 124 T e x as

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org 126 T e x as

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Livability

The Perfect Place to Call Home Culture, recreation make Texas an inviting place to live

Story by Claire Ratliff

Feeding seagulls in Corpus Christi

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he Greney family has called Friendswood, just south of Houston, home since 2009.

“We have found great neighbors here,” says Ken Greney, who moved from Michigan for a job in industrial sales.

“And warm weather is one of the top reasons I took the job.”

An excellent school district awaited the Greneys, whose children, ages 7 and 8, took to their new schools right away.

The Greneys enjoy visiting family in Dallas and making trips to Galveston, and are looking forward to experiencing the state’s world-class theme parks, water parks, cultural attractions and historic sites.

“The kids love Galveston,” Greney says. “They took to the beach immediately. It’s so easy to hop in the car and park on the sea wall.”

Texas is brimming with outdoor adventures, boasting more than 600 miles of coastline, 19 wildlife refuges, 13 national parks and 123 state parks, 800 golf courses and abundant natural areas.

“We’ve got the Alamo, the George Bush library, and we’re looking forward to ball games. We’ve already

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By the Numbers

24,326,974 Population in 2008, up more than 16 percent since 2000

600 Miles of coastline in Texas

13 National parks in Texas, as well as 123 state parks and 19 wildlife refuges

800 Number of golf courses in Texas, several of which are nationally ranked

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Clockwise from left: Downtown Austin; The Alamo in San Antonio; Crown Colony Country Club in Lufkin

discovered the Houston theater district,” Greney says. “We took the kids to see a Broadway play.”

When he’s not playing tennis, Paul Fabrizio is a professor of political science and the interim vice president for academic affairs at Abilene’s McMurry University. Fabrizio and his wife, a physician’s assistant, have two children in middle school.

“The people here are very down to earth and friendly,” Fabrizio says.

“People are simply nice. There is also a spirit of independence here. People are both sensitive to others in need and respectful of each others’ privacy. I have not found that combination in other places I have lived.”

Texas offers tremendous diversity, Fabrizio says.

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Jeff Adkins

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“We’ve been to the beach in South Padre Island, the mountains of Alpine and the plains of Abilene. You can head west for a desert experience or east for forests and lakes.” he says. “And of course, if you like football, this is the place.”

That would be at all levels, from the Houston Texans and Dallas Cowboys to a wealth of top-level collegiate programs and, of course, the brand played on Friday nights at high schools across the state.

Texas offers a rich and varied cultural experience from its largest urban centers to its smaller cities and rural communities.

In Dallas, the AT&T Performing Arts Center opened in fall 2009, a $354 million premier performance venue that includes new facilities

for opera, classical music, theater and dance, as well as a park and outdoor performance area.

The Fort Worth Museum of Science and History draws more than 1 million visitors a year.

The museum, housed in an $80 million facility that opened in November 2009, includes the Cattle Raisers Museum, dozens of interactive exhibits, a planetarium, Omni IMAX Theater and a children’s museum. The museum’s Innovation Studios are five glass-walled studios in nearly 6,000 square feet of space dedicated to provides opportunities for nurturing imagination, curiosity and creativity.

With a low cost of living and affordable housing, Texas has become a draw for retirees, aided in part by the state’s Go Texan and Texas

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Jeff Adkins

S ta f f P h o t o s

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Clockwise from far left: City Lake in Harlingen; Kids’ Kingdom in San Angelo; The Big Texan Steak Ranch in Amarillo

Main Street programs.

Go Texan certifies retirement commu­ nities based on a rigorous application process and retiree desirability assessment.

The Texas Main Street program helps cities with historic downtown and neigh­borhood commercial district revitalization.

From cosmopolitan cities to the vibrant town squares of smaller communities to the wide open rural spaces, Texas offers variety and a quality of life that is only matched by its many advantages as a place to do business.

“Economically, Texas is simply a great choice. We wanted to move to a place where there are opportunities for our kids when they are grown,” Greney says. “Overall, it’s been a wonderful experience.”

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Gulf Coast Getaways from tranquility to energy, texas beaches have it all With more than 600 miles of shoreline, beach lovers have plenty of options to choose from in Texas. Here are just a few:

South Padre Island The white sand and clear, green water explain why South Padre Island is considered the most pristine beach in Texas. Find out more at www.sopadre.com.

Galveston Island Located 40 minutes south of the fourth-largest city in the United States is an island with famous 19th century architecture and history, as well as beautiful, relaxing beaches. Visit www.galveston.com for more information.

Port Aransas Enjoy world-class fishing while visiting Port Aransas beach … or just a lazy day in the sun on the Texas gulf coast. For more, go to www.portaransas-texas.com.

– Jill Wyatt

Dumas Economic Development Corporation Mike Running, Economic Development Director

S ta f f P h o t o

P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Labor Force Housing Market

$185,400 Average home selling price (2009)

texas employment information Agriculture, Forestry & Fishing

91,092

Mining

155,606

Construction

533,270

Manufacturing

839,741

Transportation & Communications

496,898

Wholesale Trade

566,909

Retail Trade Finance, Insurance & Real Estate Service Public Administration

2,288,387 734,977 4,190,045 96,198

Information provided by

Sources: www.texaswideopenforbusiness.com quickfacts.census.gov www.top50states.com www.texasonline.com Onboard Informatics

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 • Dumas, TX 79029 (806) 934-3332 • www.dumasedc.org

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Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org

Dumas Economic Development Corporation Mike Running, Economic Development Director P.O. Box 595 Dumas, TX 79029 (806) 934-3332 www.dumasedc.org