houston and europe open for business texas: an overview population: 23,507,783 labor force:...

Houston and EuropeOpen for Business

Texas: An Overview

Population: 23,507,783

Labor Force: 11,937,150

Unemployment Rate: 3.8 %

2nd Most Populous State

261,797 square miles (678,051 km2; twice the size of Germany)

Texas: An OverviewPopulation

• Texas has 3 of the 10 largest US cities: – Houston, Dallas and San Antonio

• Labor force: approximately 12 million

0

5

10

15

20

25

30

35

1995 1997 1999 2001 2003 2005 2020*

Texas Population Growth

Source: U.S. Census Bureau (*projected)

Texas: An Overview Gross State Product

10th largest economy in the world

High Income: more than 1 million families have an income of more than $100,000

Texas has 56 “Fortune 500 Companies” - #1 in the U.S.

1,6

22

98

9

95

8

67

3

56

0

48

9

44

0

0200400600800

1,0001,2001,4001,6001,800

GSP by State (US$ billion)

4.02

2.482.04

1.38

5.114.75

4.94

3.66

0.897

1.47

2.55

4.15

3.683.55

0

1

2

3

4

5

6

2000 2001 2002 2003 2004 2005 2006*

TX

USA

Source: Bureau of Economic Analysis ( *projected by Perryman & Associates)

Texas is above the U.S. annual average growth rate.

Texas: An OverviewGross State Product

Employment Distribution10%

12%

6%

11%

11%9%

6%

35%

Manufacturing

Retail Trade

Administrative & Support

Educational Services

Health Care & Social Assistance

Accomodation & Food Services

Public Administration

All Others

Houston ranked #2 in employment growth rate among 10 most populous US metro areas.

Source: The Labor Market & Career Information Department (LMCI)

Texas: An OverviewLabor Force

Texas: An OverviewEmployment Insourcing

Texas ranks 3rd in the US in the number of workers employed by foreign-owned firms.

61

6,4

00

39

4,7

00

35

1,4

00

26

8,4

00

24

4,9

00

22

8,6

00

20

4,1

00

0

100000

200000

300000

400000

500000

600000

700000

Source: OFII Organization for International Investment

Texas: An OverviewTexas is Business Friendly

No personal income tax

No corporate income tax

Sales and use tax: - 6.25% (not to exceed 8.25%).

Texas: An OverviewBusiness Incentives

Property tax abatements

Texas Enterprise Zone Program

Research & Development Abatements

Pollution Control Property Tax Abatements

State Sales and Franchise Tax Refund

Manufacturing Sales Tax Exemption

Texas Emerging Technology Fund

Texas Governor’s Economic Development Bank

Houston: An OverviewHouston’s Metropolitan Statistical Area

Houston Metropolitan Statistical Area (MSA)

Population – 5.28 Million Sixth-most populous among

U.S. MSAs 10,062 Square Miles (26,060

square kilometers)

Its 2006 10-county metro area Gross Area Product (GAP) exceeded $360.6 billion.

World’s 30th largest economy

Larger than GAP of Austria, Hong Kong, Sweden, or Switzerland

Houston: An OverviewPopulation

Founded in 1836

City of Houston Population – 2.01 Million Fourth-most populous U.S. city Largest city in southern U.S. and Texas

Houston: An OverviewArea Industry Mix

Aerospace

Health Care/Biotechnology

Electronics and Technology

Engineering and Construction

Chemicals

Energy

Information Technology

Houston: An OverviewEnergy

3,600+ energy-related companies

500+ exploration and production firms

700+ chemical, plastic, rubber plants and refineries

150+ oil field equipment manufacturers

10 of the 25 largest public exploration firms

14 of the 20 largest oil pipeline companies

15 of the 20 largest gas transmission companies


30.7% of all US jobs in oil and gas extraction

13.8% of US refining capacity

38.9% of US base petrochemical manufacturing capacity

42.1% of oil pipeline capacity is controlled from Houston

57.1% of gas transmission capacity is controlled from Houston


15.6% 15.7%

31.7%

16.2%

52.1%

68.7%

Upstream Energy Downstream Energy Diversifying Sectors

Perc

en

t o

f E

co

no

mic

Base J

ob

s

1981 2005

Economic Base Employment

Source: Institute for Regional Forecasting, University of Houston, July 2006

Houston: An OverviewInternational Business

Houston has:

58% of Texas companies with overseas offices

46% of all foreign firms with Texas operations

21 foreign banks from 10 nations

3,000 international firms

406 Houston firms with subsidiaries in Western Europe

More than 770 foreign-owned firms

428 Western European firms with subsidiaries in Houston

900+ freight forwarders


Houston has:

87 foreign consulates

18 foreign trade and commercial offices

31 active foreign chambers of commerce and trade associations

16 sister-city relationships: Australia (1), Asia (5), Europe (7), Africa (1) and Americas (2)

Grampian Region, Scotland Huelva, Spain Istanbul, Turkey Leipzig, Germany Nice, France Stavanger, Norway Tyumen, Russia


18

20

30

36

72

87

87

107

Phoenix

San Diego

Dallas-Ft. Worth

Philadelphia

Chicago

Los Angeles

HOUSTON

New York

Consular Corps by City

SOURCES: Houston International Protocol Alliance, 2006 and Foreign Consular Offices in the United States, U.S. Dept. of State, 2006

Houston: An OverviewFortune 500 Headquarters

Houston is a major corporate center. Numerous Fortune 500 companies,

multinationals and domestic concerns maintain operations here.

• Anadarko Petroleum• Apache• Baker Hughes• Burlington Resources• CenterPoint Energy• ConocoPhillips• Continental Airlines• Dynegy• El Paso• Enbridge Energy Partners• Enterprise Products• Frontier Oil

• Group 1 Automotive• Halliburton• Kinder Morgan Energy• Lyondell Chemical• Marathon Oil• National Oilwell Varco• Plains All American Pipeline• Reliant Energy• Smith International• Sysco• TEPPCO Partners• Waste Management

Source: Fortune, April 17, 2006

Houston: An OverviewBusiness Climate

The Houston MSA ranked #3 among 200 metropolitan areas in the US as “Best Places for Business and Careers” by Forbes. The criteria included business costs, living costs, education levels, job growth, income growth, migration patterns, crime rates and culture/leisure.

The Houston MSA is the headquarters for 13 of the “100 Fastest Growing Companies,” according to Fortune.


Foreign-owned firms and domestic firms with significant international business support 880,000 direct and indirect jobs in Houston, nearly 38 percent of total jobs in metropolitan area.

Government, Health &

Education7%

Mining4%

Transport/ Utilities

10%

Other5% Trade

20%

Professional Services

28%

Finance, Insurance & Real Estate

7%

Construction2%

Manufacturing25%

Information2%

International Business Activities in Houston

Source: Great Houston Partnership, International Business Survey 2006

Houston: An Overview

Houston’s Pro-Business Climate:

• Strategic Location

• World Class Infrastructure

• High Quality Workforce

• Low Cost of Doing Business

• Pro-business Attitude

Houston: An OverviewStrategic Location

Houston: An Overview World Class Infrastructure

The Port of Houston is ranked 1st in the US in foreign seaborne trade and is the 10th largest port in the world.

In 2006, more than 200 million short tons of cargo moved through the port which ranks 1st in the US in seaborne exports – foreign trade was valued at $103 billion.

The Houston Airport System is 6th largest airport system in the world. The three airports serve more than 75 international and 120 US destinations with direct and non-stop service.

2 major rail systems, Burlington Northern Santa Fe & Union Pacific operate 14 mainline tracks radiating from Houston.

Houston is the crossroads for interstate highways - the largest road network in the US – with 1,100 long distance, non-local truck lines.

Houston: An Overview High Quality Workforce

Houston is the 4th most populous city in the US

The average age is 34.6 years; below the U.S. average of 35.3

More than 78% of the work force has at least a high school diploma

Texas is a “Right-to-Work” state – only 3.7% of private sector workers are unionized in Houston.

Source: US Census Bureau

Houston: An OverviewLow Cost of Doing Business

Office Real Estate Cost Comparison - Total Class A

75.98

42.23

38.12

35.97

34.37

31.35

35.42

25.42

0 10 20 30 40 50 60 70

NEW YORK

SAN FRANCISCO

WASHINGTON, D.C.

LOS ANGELES

MIAMI

CHICAGO

BOSTON

HOUSTON

$ / square foot

Source: Grubb & Ellis, Office Market Trends 4th Quarter 2007 for Class A

Houston: An OverviewLow Costs of Doing Business

Industrial Space Cost Comparison

5.43

7.38

6.88

6.16

5.88

4.36

4.40

13.52

10.87

10.40

9.94

11.63

8.92

8.11

0 2 4 6 8 10 12 14

WASHINGTON, D.C.

LOS ANGELES

MIAMI

BOSTON

SEATTLE

PHILADELPHIA

HOUSTON

$ / square foot - Warehouse $ / square foot - Research & Development

Source: Grubb & Ellis, Industrial Market Trends 3rd Quarter 2006

Houston: An OverviewLow Cost of Doing Business

Houston has the lowest cost of living among US cities

Index: Average of 274 Urban Areas = 100

-11.5

-8.6

-2.8

2.5

3.4

16.5

29.2

32.1

47.0

50.8

Houston-Sugar Land-Baytown TX

Dallas-Fort Worth-Arlington TX

Atlanta-Sandy Springs-Marietta GA

Phoenix-Mesa-Scottsdale AZ

Denver-Aurora CO

Miami-Fort Lauderdale-Miami Beach FL

Boston-Cambridge-Quincy MA-NH

Washington-Arlington-Alexandria DC-VA-MD-WV

Los Angeles-Long Beach-Santa Ana CA

New York-Newark-Edison NY-NJ-PA

% Below / Above National Average

Source: ACCRA Cost of Living Index, Fourth Quarter 2006

Houston: An OverviewPro-business Attitude

Houston ranks 3rd in the US of “Best Places for Business and Careers” by Forbes (2006).

Houston ranks 1st in the US of “100 Fastest Growing Companies” (2006 Fortune) with 13 headquartered in the Houston MSA. Los Angeles and New York are tied for 2nd with 8 companies each.

Houston: An OverviewCultural Arts

More than 200 Houston institutions are devoted to the arts, science and history.

Houston offers world-class year-round resident companies in all major performing arts: Symphony, Opera, Theatre and Ballet.

In the past 18 years, Houston has added or expanded 10 art museums or galleries, 4 major theatres and 15 science and history museums.

Houston: An OverviewCultural Arts

The Museum of Fine Arts, Houston added a new $83 million building in 2000, making it the 6th largest in the nation (up from 30th).

The Houston Theater District is the 2nd largest in the US.

Houston has the 3rd largest international film festivals in the US.

Houston ranks 3rd in the US for contemporary art museums, collections and galleries.

Houston: An OverviewEducation

Houston is the academic center of the Southwest.

Houston Independent School District is the 7th largest in the US.

Approximately 318,000 students in the region are enrolled in more than 60

degree-granting colleges, universities, institutes, and technical schools.

Two international private institutes Awty International School British School of Houston

Four major universities: University of Houston 34,329 students Rice University 5,009 students University of St. Thomas 3,607 students Texas Southern University 9,579 students

Houston and Europe*Major Trade Partners

There are 770 foreign-owned companies in Houston, 54.8% are European-owned.

Almost 1,650 Houston firms trade goods and services with Western Europe.

More than 395 Houston companies have subsidiaries in Western Europe.

*Statistics provided are limited to countries in European Union only and not all of Europe.

Houston and EuropeMajor Trade Partners

Trade between Houston and Europe continues to grow (+ 17 % 05 vs. 04).

Country Percentage trade growth 2004 vs. 2005

Austria 50.1%

Belgium 13.5%

Denmark 92.0%

France 21.8%

Germany 20.6%

Italy 9.4%

Netherlands 22.6%

Russia 12.6%

Spain 39.4%

United Kingdom 55.3%


Europe is Houston’s largest export market, accounting for nearly a third of all goods shipped from the region.

Houston-Galveston Customs District2005 Export Destinations by Region

7%

Europe 35.2%

17%

26%

14%

1%0.0%5.0%

10.0%15.0%

20.0%25.0%

30.0%35.0%

40.0%

Europe TheAmericas

Asia Middle East& NorthAfrica

Africa Australia &Oceania


Europe was Houston’s largest import source, accounting for more than 1/4 of all goods arriving from around the world.

Houston’s imports from Europe increased 23.2% percent in 2005; imports were valued at $27 billion in 2006.

Houston-Galveston Customs District2005 Import Sources by Region

0%

10%

23%

10%

Europe, 26%

16%

0%

5%

10%

15%

20%

25%

30%

Europe The Americas Middle East &North Africa

Asia Africa Australia &Oceania

Total International Air Passengers 6,385,016

Mexico41.3%

Canada8.0%

Europe19.6%

Central-South America

-Asia-AfricaAustralia

4.0%

Source: Houston Airport System 2006


Seaborne Trade by Region

Europe 31.6%

Latin America 21.7%

Asia and Pacific Rim 14.5%

North America 13.0%

Africa 12.3%

Middle East 6.6%

Europe

Asia andPacific Rim

Middle East

Latin America

Africa

North America

Source: U.S. Dept. of Commerce, Bureau of the Census, 2006 (Figures reflect 2005 in $ value) Note: Latin America includes South and Central America and the Caribbean

Europe is Houston’s top seaborne trading partner – with $24.6 billion by sea in 2005.


Air Cargo Trade by Region

Europe 50.9%

Asia and Pacific Rim 15.6%

Middle East 14.7%

Latin America 8.6%

Africa 6.8%

North America 3.2%

Europe

Asia andPacific Rim

Middle East

Latin America

Africa

North America

Source: U.S. Dept. of Commerce, Bureau of the Census, 2006 (Figures reflect 2005 kg) Note: Latin America includes South and Central America and the Caribbean


Europe is Houston’s top air cargo trading partner – with 62,504,322 kilograms by air in 2005.


EUROPEAN CONSULATES IN HOUSTON

Consulate General of Italy 300 Post Oak Boulevard, Suite 660 Houston, Texas 77056 Tel. 713-850 7520 Fax 713-850 9113

Consulate General of the Republic of Hungary 11850 Hempstead Highway, Suite 230 Houston, TX 77092Work Phone: Fax: (713) 476-0437

Consulate General of the French Republic 777 Post Oak Blvd., Suite 600 Houston, TX 77056-3204Work Phone: Fax: (713) 572-2911

http://www.consulfrance-houston.org/


Consulate of the Kingdom of Belgium 2009 Lubbock St. Houston, TX 77007-7621Work Phone: Fax: (713) 224-1120

Consulate General of the Republic of Cyprus 1128 River Glyn Drive Houston, TX 77063-1517Work Phone: Fax: (713) 468-5695

Consulate of the Kingdom of Denmark 4545 Post Oak Place Drive, Suite 105 Houston, TX 77027-3164Work Phone: Fax: (713) 622-7512

Consulate of the Kingdom of Sweden 2909 Hillcroft Blvd., Suite 515 Houston, TX 77057-5847Work Phone: Fax: (713) 953-7776

http://www.diplobel.org/usa

http://www.diplobel.org/usa


Consulate General of the Republic of Malta 2602 Commonwealth Houston, TX 77006-2609Work Phone: Fax: (713) 650-6815

Consulate of the Republic of Romania 4265 San Felipe, Suite 605 Houston, TX 77027-2920Work Phone: Fax: (713) 629-1553

Consulate of the Hellenic Republic 520 Post Oak Blvd., Suite 450 Houston, TX 77027-9481Work Phone: Fax: (713) 840-0614

Consulate of Ireland 2630 Sutton Court Houston, TX 77027-5245Work Phone: Fax: (713) 961-3850

http://www.greekembassy.org/consular/houston


Consulate of the Republic of Finland 14 Greenway Plaza, Suite 22R Houston, TX 77046-1400Work Phone: Fax: (713) 552-1676

Consulate General of the Republic of Austria 1701 Hermann Drive, Suite 1605 Houston, TX 77004

Consulate General of the Kingdom of Spain 1800 Bering Drive, Suite 660 Houston, TX 77057-3151Work Phone: Fax: (713) 783-6166

Consulate General of the Federal Republic of Germany 1330 Post Oak Blvd., Suite 1850 Houston, TX 77056-3031Work Phone: Fax: (713) 627-0506

http://www.austria.org/

http://www.spainemb.org/

http://www.germanconsulatehouston.org/


Consulate of the Republic of Latvia 5847 San Felipe, Suite 3275 Houston, TX 77057-3000Work Phone: Fax: (713) 952-1110

Royal Norwegian Consulate General 2777 Allen Pkwy., Suite 1185 Houston, TX 77019-2141

Consulate General of the United Kingdom of Great Britain and Northern Ireland 1000 Louisiana, Suite 1900 Houston, TX 77002Work Phone: Fax: (713) 659-7094

Consulate of the Czech Republic P.O. Box 8 West, TX 76691Work Phone: Fax: (713) 629-9606

http://www.norway.org/houston


Consulate of the Kingdom of the Netherlands 2200 Post Oak Blvd., Suite 610 Houston, TX 77056-4783Work Phone: Fax: (713) 622-3581

Consulate of the Portuguese Republic 4544 Post Oak Place Drive, Suite 350 Houston, TX 77027-3161Work Phone: Fax: (713) 237-0401

Consulate of the Republic of Slovenia 2925 Briarpark Drive, 7th Floor Houston, TX 77042-3720Work Phone: Fax: (713) 430-7077


Consulate of the Republic of Poland 35 Harbor View Drive Sugar Land, TX 77479-5854Work Phone: Fax: (281) 565-1507

Consulate of the Republic of Lithuania 4030 Case St. Houston, TX 77005-3606Work Phone: Fax: (866) 764-8622

Consulate General of The Russian Federation in Houston 1333 West Loop South, Suite 1300 Houston, TX 77027Work Phone: Fax: (713) 337-3305

Honorary Consul of Ukraine in Houston 2934 Fairway Drive, Sugar Land, TX 77478-4023Work Phone: Fax: (281) 242-8147


Chambers of Commerce in Houston

Italy – America Chamber of Commerce 1800 West Loop South, Ste 1120 77027 HoustonTel: (713)626-9303 Fax: 713.626.9306

French American Chamber of Commerce 5373 W Alabama St # 209, Houston, 77056 Tel:(713) 960-0575

German American Chamber of Commerce2400 Augusta Dr # 280 Houston, TX 77057Tel: (832) 251-9832


Swedish American Chamber of CommercePO Box 591366 Houston, TX 77259Tel: (713) 914-0015

Norwegian American Chamber of Commerce2777 Allen Parkway, Suite 1185 Houston, TX 77019-2123 Tel:(713) 526-6222 Fax:(713) 521-9473

Czech Chamber of Commerce7474 South Kirkwood Road Houston, TXTel.: (281) 564-9800

British-American Business Council HoustonP O Box 421234 Houston, TX 77242-1234Tel:(713)784-7710 Fax :(713)784-7712


Russian-American Chamber for Trade and Industry700 Louisiana Street, Suite 3600 Houston, TX 77002

Greater Houston Partnership1200 Smith – Allen Center II Ste 700, 7th floorHouston, Texas 77002 Office: 713.844.3600 Fax: 713.844.0200 email: [email protected]

Houston and EuropeOpen for Business

houston and europe open for business texas: an overview population: 23,507,783 labor force:...

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