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The Lufkin/Angelina County Economic Development Analysis Prepared for:

Lufkin Economic Development Corporation The Economic Development Partnership (Strengths/Weaknesses/Opportunities/Threats

Part 1-Market Valuation and Action Plan This is the first part of the three part Market Valuation and Action Plan, which includes the identification of Strengths/Weaknesses/Opportunities/Threats in economic development terms for the City of Lufkin/Angelina County.

2010

mbarnes Mike Barnes Group, Inc.

10/11/2010

2 Lufkin/Angelina Partnership Market Valuation and Action Plan, Part 1

Submitted by the Mike Barnes Group

Table of Contents Preface……………………………………………………………………………………………3

Introduction……………………………………………………………………………………….5

Business Climate…………………………………………………………………………………11

Workforce/Education…………………………………………………………………………….13

Infrastructure/Sites……………………………………………………………………………….19

Quality of Life……………………………………………………………………………………21

Economic Development and Marketing…………………………………………………………22

Labor Analysis…………………………………………………………………………………...24

Observations/Findings…………………………………………………………………………...27

Conclusions………………………………………………………………………………………28

Appendix 1………………………………………………………………………………………29



Preface

In this report, Market Valuation and Action Plan, Mike Barnes Group, Inc. (MBG) has prepared

a Strengths and Weaknesses Analysis. The report includes a workforce development and labor

analysis. The analysis is designed to assess Lufkin/Angelina County, Texas, from a corporate site

selector’s perspective. MBG is a site selection/economic development provider with affiliates in

New Mexico and Indiana.

To prepare this analysis MBG has compiled information from its own databases, research from

outside sources and detailed interviews with industry in the Lufkin/Angelina County area. Those

interviews were carefully selected to draw a composite of the industry that most truly represents

the Lufkin/Angelina area's makeup.

The team at MBG has over 90 years experience in economic development and site selection. All

members of the team have been consulting with a significant number of communities over the

last ten years. Our Team started evaluating communities in 1995 and has been using the

Paragon/Fantus/site selection format. The team has used this format in hundreds of communities

from Maine to Florida to California, in almost all 48 contiguous states. This format is a very

commonly used approach.

The approach of evaluating communities based upon interviews is also one commonly used by

the top site selection professionals. Projects are won and lost based on the opinions of existing

companies and leaders in a given community. Therefore, when we rate a factor a strength or a

weakness, it is based on fieldwork, data, and on some subjectivity. This is exactly how a site

selection process takes place. Projects are frequently won and lost based on a site selection

team’s discretion in protection of their clients.

Those stakeholders interviewed include:

As part of our work in determining the competitiveness of a Lufkin/Angelina location, we

likewise conducted a number of employer interviews, combined with staffing agencies, as part of

a labor analysis. Those interview participants are listed on the following page.

Lufkin/Angelina Chamber of Commerce

City of Lufkin

Appointed

City of Lufkin

Elected

City of Lufkin

Elected

Angelina Community

College

Angelina Hardwood

Sales

City of Lufkin

Elected

Lufkin Independent

School District

Memorial Hospital

Angelina County

Angelina and Neches River

Railroad Company



Preface

The analysis generally assesses Lufkin/Angelina County’s assets and liabilities versus key

economic development criteria, including key criteria for select target industry. Economic

development criteria include:

In this assessment MBG also identifies critical issues, threats and opportunities based upon the

interviews in the community and observations from select business leaders and others in

Lufkin/Angelina County.

Finally, we will make recommendations as to specific actions that Lufkin/Angelina County

should undertake. The recommendations shall serve as a platform for future economic

development programming and directions for Lufkin/Angelina County.

Coca ColaBrookshire Brothers

Lockheed Martin

Lufkin High School

Temple Inland

Angelina College

VertisLufkin

Industries

Woodland Heights Medical

Center

Atkinson Candy

Express Staffing

Spherion Staffing

Business Climate Workforce/Education Infrastructure/Sites

Quality of LifeEconomic

Development and Marketing



Introduction

MBG conducted an economic development strength and weakness analysis for the

Lufkin/Angelina County area. First we will help you understand the most important factors by

industry sector. Next we will rate Lufkin/Angelina County against each critical factor (strength,

weakness or neutral).

Understanding the Importance of Select Factors in Corporate Site Selection

MBG has worked with many different types of companies on relocation-related projects. From

this experience we have identified the most important site location cost and condition criteria for

different types of projects. It is important to review this information, in order to better understand

why select factors are critical to the success of new locations and expansions. It will also help the

reader to better understand Lufkin/Angelina County’s potential for selected target industries, Part

2.

A full SWOT cannot be completed without a labor analysis. Some consultants will not go to the

extent of interviews in the community and do not present an adequate description of the labor

force without talking to the people on the ground. MBG has interviewed people involved in

hiring and maintaining a labor force. Therefore the SWOT can give the community a good

representation as to labor availability, labor characteristics, and the higher and secondary

education system. The SWOT does not include a full resident analysis, workforce delivery

system analysis or complete report on the schools and quality of life in the communities. The

SWOT does include what a site selection team will report on to their client after spending a few

days in the county.

We will now break down the select factors for three different areas of industry to illustrate the

differences in corporate site selection in the areas of:

Manufacturing

Administrative/Back Office

Warehouse/Distribution/Logistics



Introduction

Understanding the Importance of Select Factors in Corporate Site Selection Manufacturing

Site selection studies suggest that, in general, labor will represent the largest single annual cost

item for a typical manufacturing project. Fringe benefit costs (consisting of medical, disability,

life insurance, unemployment insurance, and workers compensation insurance) will also be

significant cost factors (often second or third). Market access is also critical and will determine

freight cost variables.

The following represent annual operating costs for two manufacturing projects, one is food

processing and the other is electronics. These are only inserted into this SWOT to help educate

the reader on the importance of the key location criteria factors. Understanding the makeup of

the key location criteria factors will later assist with the target marketing identification process

for Lea County.

Labor is the largest annual cost component in an electronics manufacturing project.

61%8%

16%

6%

4%

5%

Annual Operating Costs for a Communications Electronics Plant

Wages

Amoritized Building

Fringe Benefits

State and Federal Taxes

Local Taxes and Fees

Electric Power



Introduction

Understanding the Importance of Select Factors in Corporate Site Selection Manufacturing A food processing plant will have a much larger freight cost component.

The most critical location factors, by priority, for a typical manufacturing project:

1. Market Access (Freight Costs) 2. Labor Skills and Quality 3. Labor Costs and Fringe Benefits 4. Unionization Trends 5. Available Buildings 6. Utility Costs and Local Services 7. Business Climate/Taxation

43%

38%

11%

4% 3% 1%

Annual Operating Costs for a Food Processing Plant:

Freight Costs are Critical

Wages

Freight

Fringe Benefits

Electric Power

Amoritized Building

Taxes



Introduction

Understanding the Importance of Select Factors in Corporate Site Selection Administrative/Back Office Labor costs and conditions are even more important for an administrative back-office function.

In the sample below, wages and fringe benefits represent 90% of annual operating costs. Back

offices not only include call centers but also administrative centers that may be regional in

nature. Information technology and accounting as well as accounts payable and receivable

offices fall into this category of industry.

The most critical location factors, by priority, for a typical back-office project are:

1. Clerical Labor Costs 2. Clerical labor quality, availability 3. Turnover 4. Absenteeism 5. Occupancy costs (Class B buildings) 1 6. Training programs 7. Available buildings 8. Ability to recruit management labor (relocation & quality of life issues) 9. Proximity to commercial air service (especially for check processing centers) 1 Class B: which were the “A’s” of yesterday; now prone to some obsolescence but

still utilitarian; i.e., older, slower elevators; large columns; older HVAC systems;

smaller floor-plates; etc. (reference: SIOR) ( K Mart buildings fit this category)

72%

18%

5% 4%

0.9% 0.1%

Annual Operating Costs for Administrative/Back Office Operation:

Labor Costs Dominate

Labor

Fringe Benefits

Amortized Building

Property Taxes

Corporate Taxes

Electric Power



Introduction

Understanding the Importance of Select Factors in Corporate Site Selection Warehouse/Distribution

The most critical location factors, by priority, for a typical warehouse/distribution project

are: Labor cost, quality & availability

1. Freight costs/market access 2. Service delivery time (access to market) 2 3. Interstate highway access (four directions considered most desirable) 4. Available buildings (minimum 80,000 to 120,000 sq.ft; 20-24 foot ceilings

2Especially seasonal workers for seasonal products which fluctuate in quantities.

49%

35%

10%6%

Annual Operating Costs: Wharehouse/Distribution Plant

freight costs

labor

amortized building

taxes



Introduction

The Market Valuation and Action Plan for Lufkin/Angelina County will provide three reports. .

This report, Report 1-Consultant Report of the Findings of the SWOT and Labor Analysis will

address the competitiveness. The second report, The Targets, will include the targeted

industries. The marketing strategy aimed at prospect development from within the “targets,” will

be the third report. Various organizational analysis observations and suggestions will be made in

all facets of the reports.

The Project’s intended results are as follows:

Thorough understanding of Lufkin/Angelina

County's Strenghts and Challenges

Active Participation from stakeholders

and employers from within

Lufkin/Angelina County

Action with Marketing Plan and

Marketing Effort

Countywide support for a unified

economic development effort

A business community engaged

in economic development

Implement Quickly

Lufkin/Angelina SWOT Report

Submitted by October 22, 2010

Lufking/Angelina Targeted Industries

Report Submitted by

November 15,2010

Lufkin/Angelina Marketing Plan Submitted by

November 30, 2010



The following table represents the private employment by industry sector in Angelina County for

the fourth quarter, 2009, reflecting wages and fluctuations from the previous year. As we discuss

the business climate in the following pages, it is helpful to have an understanding of the types of

businesses that provide the major sources of private employment.

Back To State

Angelina County

Industry supersector data table, private ownership

Supersector Number of

establishments, Dec 2009p

Employment, Dec 2009p

12 month percent

change in employment,

Dec 2008-Dec 2009p

12 month change in

employment, Dec 2008-Dec 2009p

Average weekly wage, Dec

2009p

12 month percent change

in average weekly wage, Dec

2008-Dec

2009p

12 month change

in average weekly wage, Dec

2008-Dec

2009p

Construction 152 1,381 -20.8% -362 $739 2.9% $21

Education and Health Services 257 7,166 -0.5% -38 $705 4.1% $28

Financial Activities 201 1,264 -2.8% -37 $771 0.1% $1

Information 27 484 -4.9% -25 $975 -4.5% $-46

Leisure and Hospitality 139 2,967 -3.8% -117 $276 0.4% $1

Manufacturing 80 4,190 -23.0% -1,255 $1,161 15.3% $154

Natural Resources and Mining 54 403 -23.1% -121 $1,024 1.9% $19

Other Services 140 700 -3.6% -26 $448 -3.7% $-17

Professional and Business Services

239 2,494 -4.0% -105 $973 4.1% $38

Trade, Transportation, and Utilities

452 6,428 -3.6% -241 $600 1.7% $10

Source: Bureau of Labor Statistics, 2010

Business Climate

http://beta.bls.gov/maps/cew/TX?period=2009-Q4&industry=10&geo_id=48000&chartData=2&distribution=Quantiles&pos_color=blue&neg_color=orange&showHideChart=hide



Business Climate

Business Climate

As evidenced by the chart above, stakeholders found the Business Climate in Lufkin/Angelina to

be very positive. Attempts were made to identify those weaknesses; however, the only weakness

cited was potential permitting issues with regard to obtaining building permits. This is an

outstanding indicator of a positive business climate.

Strengths

All Elements of the Community Work Together

Pro Growth Attitude

Incentives in Place and Willingness to Implement

Texas is Strong Business State

Available Land

Engaged Community and EDC

Community Appears Larger than Population

Medical Facilities Present Suggest Regional Hub

Regional Retail/Service Hub

Weaknesses

Opportunities

EDC Can Positively Impact Business Climate

Ongoing Success Will Create More Opportunities

Potential Discussion of Air Service to Lufkin

Enhanced Community College/SFA/Local School Districts Colloborative Efforts Will Create More

Business Opportunities

More Connectivity to Southeast Texas' Ports

Threats

Lack of Interstate HIghway (Perception)

"Perception of Piney Woods Curtain"

Lack of "Brand or Image" in Marketplace

Lack of Targeted/Focused Economic Development Marketing Program

Potential for Building Permit Issues

Business Climate

Business Climate



Lufkin/Angelina County is fortunate to have, within its boundaries, Angelina College. This

community college plays a major role in the business attraction/retention effort by its ability to

provide training for employers as they locate or expand. In addition, the close proximity to

Stephen F. Austin University in nearby Nacogdoches provides outstanding linkage to a four year

(+) institution of higher education.

A total of six school districts exist within Angelina County. In the following charts, we can

identify certain performance assessments within these districts.

16 16.5 17 17.5 18 18.5 19 19.5 20 20.5

Lufkin ISD

Central

Diboll

Hudson

Huntington

Zavalla

17.5

17.6

17.8

19.2

20.3

19

Source: TEA 2008 Data

Average ACT Scores by District

Workforce/Education



800 850 900 950 1000 1050 1100 1150 1200

Lufkin ISD

Central

Diboll

Hudson

Huntington

Zavalla

980

1033

980

970

990

1015

Source: TEA 2008 Data

Average SAT Scores By District

50% 55% 60% 65% 70% 75% 80% 85% 90% 95%

State …

Zavalla ISD

Huntingto…

Hudson ISD

Diboll ISD

Central ISD

Lufkin ISD

82%

71%

84%

93%

83%

88%

86%

78%

72%

79%

90%

77%

80%

79%

Source: TEA 2008-09

Percentage of Students Meeting Accountability Standards

Science Mathematics

Workforce/Education



91%93%

94%89%

92%

89%96%

96%

93%

86% 94%

95%

92%97%

50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

Source: TEA, 2008-2009

Lufkin ISD

Central ISD

Diboll ISD

Hudson ISD

Huntington ISD

Zavalla ISD

State Average

Percentages of Students Making Accountability Standards

Reading/Eng Lang Arts Writing

$4,319

$4,422

$3,857

$3,785

$3,768

$3,943

$3,730

$2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000

source: TEA, 2008-2009

Lufkin ISD

Central ISD

Diboll ISD

Hudson ISD

Huntington ISD

Zavalla ISD

State Average

Instructional Expenditures per Pupil (Actual 2008-09)

Workforce/Education



Please note the charts on the following pages for specific data relative to Angelina County in

terms of it education, poverty and related earnings.

Angelina County, Texas

Subject Total

Margin of Error Male

Margin of Error Female

Margin of Error

Population 18 to 24 years 7,654 +/-197 3,836 +/-66 3,818 +/-188

Less than high school graduate 21.7% +/-5.6 27.9% +/-7.7 15.6% +/-5.2

High school graduate (includes equivalency) 43.8% +/-5.8 48.0% +/-7.3 39.7% +/-8.6

Some college or associate's degree 33.0% +/-5.8 23.6% +/-7.7 42.4% +/-8.0

Bachelor's degree or higher 1.4% +/-1.2 0.5% +/-0.8 2.4% +/-2.3

Population 25 years and over 52,809 +/-223 25,489 +/-141 27,320 +/-214

Less than 9th grade 9.6% +/-1.2 10.5% +/-1.7 8.7% +/-1.4

9th to 12th grade, no diploma 13.4% +/-1.5 12.7% +/-2.1 14.1% +/-2.3


Some college, no degree 23.4% +/-1.8 22.5% +/-2.4 24.2% +/-2.8

Associate's degree 6.8% +/-1.3 7.4% +/-1.9 6.3% +/-1.4

Bachelor's degree 11.3% +/-1.6 11.3% +/-2.0 11.3% +/-2.0

Graduate or professional degree 4.6% +/-0.9 3.6% +/-0.9 5.6% +/-1.5

Percent high school graduate or higher 77.1% +/-1.9 76.9% +/-2.4 77.2% +/-2.7

Percent bachelor's degree or higher 15.9% +/-2.0 14.9% +/-2.2 16.9% +/-2.5


High school graduate or higher 77.7% +/-5.3 79.3% +/-5.3 75.8% +/-7.4








Population 65 years and over 11,460 +/-181 4,783 +/-165 6,677 +/-99



Data Set: 2006-2008 American Community Survey 3-Year Estimates, U. S. Census Bureau, American Community Survey

Workforce/Education

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Angelina County, Texas

POVERTY RATE FOR THE POPULATION 25 YEARS AND OVER FOR WHOM POVERTY STATUS IS DETERMINED BY EDUCATIONAL ATTAINMENT LEVEL

Less than high school graduate 23.6% +/-4.5 15.9% +/-6.0 30.3% +/-5.7


Some college or associate's degree 10.9% +/-3.2 9.9% +/-4.1 11.8% +/-4.0

Bachelor's degree 4.8% +/-3.4 0.0% +/-2.2 9.2% +/-6.2

Graduate or professional degree 2.0% +/-2.2 4.6% +/-5.8 0.5% +/-1.0

MEDIAN EARNINGS IN THE PAST 12 MONTHS (IN 2008 INFLATION-ADJUSTED DOLLARS)

Population 25 years and over with earnings 27,470 +/-1,852 31,412 +/-2,155 21,588 +/-2,635

Less than high school graduate 17,365 +/-2,329 20,536 +/-3,115 13,665 +/-1,918

High school graduate (includes equivalency) 21,775 +/-1,964 26,628 +/-3,092 15,859 +/-3,006

Some college or associate's degree 30,654 +/-1,339 36,384 +/-2,851 25,558 +/-3,455

Bachelor's degree 44,364 +/-5,757 63,656 +/-13,421 36,809 +/-4,353

Graduate or professional degree 49,487 +/-6,705 70,652 +/-11,842 46,032 +/-6,277

PERCENT IMPUTED

Educational attainment 3.3% (X) (X) (X) (X) (X)

Data Set: 2006-2008 American Community Survey 3-Year Estimates, U. S. Census Bureau, American Community Survey

Evaluating Workforce and Education in Lufkin/Angelina is not an easy task. It is widely held

that the schools are doing a very good job, which is reflected in the “Recognized” ratings of the

six districts. In the section that addresses the labor analysis, more direct negatives were observed

than by those stakeholders. This might suggest that a perception gap exists between those at the

policy level and those engaged daily in manufacturing or service businesses. Education is

uniformly considered a high priority and that is certainly a plus!

Workforce/Education



Strengths

All 6 Districts are "Recognized"

Outstanding Relationship Between Community and Angelina College

Magnet Schools Receive High Marks

Higher Skills Present in the Workforce

Training for Needed Skills Availablle

Workforce Commutes from Within Region

Business and WIB Work Well

Pilot Project (s) Get Workers Ramped Quickly

(Nursing is Example)

Weaknesses

Lack of Quality Customer Service Training

Lack of Integration in Business Community with Pre-K--12

Soft Skills Need Improvement

Large Pool of Experienced Workers not Available

Tradition of Heavy Industry Orientation While Economy Shifts

Perception of the PIne Forest Curtain in Terms of Education/Workforce

Opportunities

More Regional Approaches to Education--Get 6 Districts on Same Page

More Integration Between All Education and Business Community

More Integration With Stephen F, Austin

Consideration of Career Academy

Recognize Changing Economy and Have Education/Workforce to Meet the Change

Continue Efforts from Manufacturing to Imagineering

Threats

Lack of Understanding and Meeting the Needs of a Changing Economy in Workforce and Education

Not Recognizing New Measurements for Success in a Regional Economy

Continuation of the "Sawmill Mentality"

Workforce/Education

Workforce/Education



Lufkin/Angelina is strategically located in East Texas. Its proximity to Houston (less than two

hours), serves as an asset in terms of its access to “Hub Air Service” Likewise, its proximity

limits the ability to obtain commercial air service in Lufkin/Angelina. Neighboring Tyler, Texas

enjoys a commuter commercial service. Highway access is primarily provided by Highways 59

and 69, with convenient loops carrying traffic inside the city. Although there is not an interstate

highway located within Lufkin/Angelina, commercial truck and other vehicular traffic are

heavily present in and around the city. This infrastructure throughtout Lufkin/Angelina is quite

adequate for the transportation of goods and the provision of services. This is evidenced by the

number of businesses/industries present throughout the county.

Highway Map Showing Highways 59 and 69 serving Lufkin/Angelina County

Infrastructure/Sites/Buildings

http://www.city-data.com/city/Lufkin-Texas.html



In the discussions with the community’s stakeholders, it was apparent that

Infrastructure/Sites/Buildings were perceived as a major strength in the region. Research

conducted by the Consultant Team confirms this observation. In Appendix 1, we have offered

suggestions as to the specific types of information that should be present on the site/building

section of the website.

Strengths

Excess Capacities in Water/Sewer

Newly developed "Large Rail Site"

New Industrial Park(s)

Reasonable Inventory of Quality Buildings

Good Highway Access Inter-City and Intra City

AvailableLand Within and Outside of EDC Control

of Varying Size/Locations

Close Proximity to Houston Air Hub

Enhanced Appearance of HIghways

Weaknesses

Lack of Interstate

Lack of Commercial Air Service

Opportunities

Consideration of Local/Regional Commercial Air Service

Enhanced Public/Private Partnerships to Provide Sites/Buildings to End Users--

Risk/Entrepreneurial

Create Locations for "Changing Economy" Business/Industry

Threats

Perception of Lack of Business/Industrial Locations Within the "Pine Curtain"

Lack of Willingness to Continue Development of Sites

Infrastructure/Sites and Buildings

Infrastructure/Sites/Buildings



One of the first impressions one has when coming to Lufkin is that it is a city whose population

is much larger than the U.S. Census indicates. That impression is due largely to the abundance

of retail, restaurants and shopping, cultural amenities such as the Temple Performing Arts

Center, parks--including the zoo, Angelina College, outstanding golf courses and the

configuration and beautification of the recent transportation improvements.

When compared to other similarly sized communities, Lufkin/Angelina appears to have

tremendous quality of life options. Whether it is a performance of Roberta Flack, touring

theater productions, agricultural-related activities, sports activities both as spectators and

participants, outstanding parks, abundant civic and religious options, and the ability to take

advantage of a number of ongoing events, Lufkin/Angelina is well equipped with quality of

life activities.

Quality of Life

Strengths

"Gem of the Region"

Medical Regional Hub

Regional Retail/Restaurant Hub

Great Parks/Zoo

Outdoor Recreation is Superb

Outstanding Golf Courses

Foundations Provide Funding

Angelina College is Major Asset to QoL

Abundance of "New" Motels

Weaknesses

Concern for Young Professionals Finding Lufkin Adequate for Their Needs

Outmigration of Youth to Larger Cities

Opportunities

Additional Tourism Marketing Could Lure New Firms

Further Engagement with Angelina College and Other Educational Resources

Market Quality of LIfe as Part of EDC Inventory

Continuing Beautification Effort(s)

Enhance Downtown Appearance

Threats

Lack of Engagement of Public on Beautification Issues

Lack of Focus on Downtown

Poor Attendance at Some Venues Could Cause Apathy

Quality of Life



Economic Development in Lufkin/Angelina enjoys significant public-private partnership.

Through the Lufkin Economic Development Corporation, elected city officials participate

directly or through appointment in establishing the policy for the City’s economic development

effort. Utilizing the sales tax legislation, this organization has a budget that enables staff to focus

on economic development and not fundraising. In addition, the private sector participation

through the Angelina Partnership provides private business leadership a vehicle to positively

impact the area’s economic development effort. The Consultant Team found the relationship

between these two organizations to be beneficial and contributory. The cross-pollination of

direction from all facets of leadership within the city/county contributes positively to the ongoing

economic development effort.

The above-named organizations are staffed professionally by a staff of two. The Consultant

Team found widespread support for the activities of the staff while researching this subject.

Staff is well respected, not only in Lufkin/Angelina, but by peers throughout Texas. The day-to-

day operations of an economic development agency require creative, adaptive, and

knowledgeable professionals. From the feedback provided the Consultant Team,

Lufkin/Angelina more than satisfies this requirement through its economic development staffing.

Strengths

Quality Leadership at Policy and Staff Levels

Considerable Improvement Over Previous Years

Community has the Ingredients

Have Funds for "Closing the Deal"

Underway with New/Higher Level Jobs

Weaknesses

Lack of National Image

No Plan in Place

"Scattershoot vs. Target"

Outside the "Houston Commute Pattern"

Opportunities

Examine Regional Linkages for ED

Create even more "deal closing" approaches

Increase Marketing to Targets from Strategy

Develop Relationships with Corporate Decision Makers

Become More Engaged in Marketing Functions Nationally

Threats

Apathy

Inadequate Number of Staff for Enhanced E.D. Activities

Sales Tax Revenue Decreasing

Lack of "Risk Taking" in E.D. Projects

Lack of Understanding of E.D. by Larger Community

Economic Development and Marketing

Economic Development

and Marketing



The Lufkin EDC/Angelina Partnership engages in a number of marketing activities. It currently

possesses a very attractive website and collateral pieces that provide specific information. In

addition, the economic development group is a member of Team Texas/Texas One, which

enhances the visibility of Lufkin/Angelina not only within the State of Texas but to outside

corporate interests. In Part 3 of this report, recommendations will be made relative to the more

specific marketing activities that should be undertaken.

One of the “missing components” is the Business Retention/Expansion Program (BREP). This is

not to state that the staff does not recognize its importance; rather, there is little time for staff to

engage in this program activity. It would be “routine” for an organization this size to conduct at

least one formal BREP visit each week. This would provide a total of over 50 visits annually,

which appears quite impressive. Given time constraints and staff (size) limitations; it is easy to

see this component not receiving the attention it deserves. Most BREP visits are currently

limited to those firms which are experiencing growth or difficulty.

Economic Development and

Marketing



This portion of the Market Valuation addresses labor and the perspectives of those existing

businesses within the community. The Consultant Team conducted interviews with a number of

firms (See p.4) and compiled their responses in chart form. The following represent the

responses from the existing businesses/industries interviewed on October 4-5, 2010.

9.00

7.45

7.73

5.82

6.22

5.29

5.86

0.00 2.00 4.00 6.00 8.00 10.00

Index: 1= very poor; 5 = very poor; 10 = excellent

Engineering

Management

Technical

Skilled

Semiskilled

Unskilled

Clerical

Labor Availability Ratings: Lufkin

7.78

8.11

8.78

8.11

7.89

7.89

8.22

8.56

8.00

0.00 2.00 4.00 6.00 8.00 10.00

Index: 1= very poor; 5= avg.; 10 = excellent

Turnover

Absenteeism

Attitudes

Trainability

Basic Skills

Communications

Alcohol/Drugs

Labor Productivity

Accuracy

Labor Characteristics Ratings: Lufkin

Labor Analysis



7.11

9.00

7.00

8.33

9.67

9.56

8.56

8.44

7.89

8.44

0.00 2.00 4.00 6.00 8.00 10.00

Index: 1= very poor; 5= avg.; 10 = excellent

Water

Sewer

Electric

Telecom

Police

Fire

Rail

Permitting

Highway/Roads

Air Service

Quality of Services Ratings: Lufkin

8.11

8.11

7.44

7.78

7.78

5.56

9.11

8.56

7.61

0.00 2.00 4.00 6.00 8.00 10.00

Index: 1= very poor; 5 = avg.; 10 = excellent

Public Schools

Medical Services

Housing: owner occupied

Housing: rental

Day Care

Zoning

Community Attractiveness

Recreation

Cultural Facilities

Quality of Life Ratings: Lufkin

Labor Analysis



The leadership (business community and elected/appointed governmental officials) in Lufkin/Angelina County is desirous of successful economic development. The challenge

lies in the approach and implementation. The following questions need to be addressed:

1. Will the leadership be unified in the provision of incentives? Will the Lufkin EDC/Angelina Partnership be willing to become more risk takers or

entrepreneurial in their approaches?

2. Will the leadership recognize the need for additional funding for staff and other resources to provide needed services in the following categories:

1) Business Retention/Expansion Program integrated into the ongoing comprehensive economic development program

2) Enhanced marketing which will require key staff to be away from the community for extended periods of time, thus needing staff to maintain

ongoing presence in the community (Discussed in detail in Part 3)

3. Will the leadership maintain patience while the expanded economic development program gets underway? Will there be a demand for “immediate success?”

4. Will the leadership continue to recognize the demographics of the community are changing as reflected in the schools, workplace/workforce, and business? Will

there continue to be this impressive focus on all components of the community

working together to enhance education/workforce and the overall standards and

quality of life?

Strengths and opportunities far outweigh the weaknesses and threats! 1. Available land with infrastructure in place or the ability to put in place timely. 2. Outstanding workforce training through collaborative efforts of the local WIB, pre-

K educational facilities, and Angelina College currently exists.

3. Although the county is not located on an interstate, access to/from and within Lufkin/Angelina is outstanding. Access to the numerous ports to the south could

play a key role in the future.

4. Retailers, restaurateurs, and motel operators have observed the “expanded or regional” population base in the community. Tremendous opportunity exists to

translate that into business/industrial locations/expansions.



5. Both the Business Climate and Quality of Life are well above average—the challenge is to design components of the economic development program to

incorporate each of these attributes.

6. There may be more opportunities to “connect to Nacogdoches” in terms of utilizing the proximity of Stephen F. Austin from a regional economic

development marketing effort.

7. Any marketing campaign that is undertaken must involve both internal and external components. There must be continued community-wide support for a

comprehensive economic development effort.

8. The community “understands” business/industry and has a successful tradition of accommodating both. This understanding should be emphasized in upcoming

marketing campaigns.

9. Stakeholders recognize the “Changing Economy” and the upcoming targets and marketing campaign must similarly recognize this shift. (This challenge will be

addressed by the Consultant Team.) This will aid in the diversification of the

community’s economic base.

10. Consideration of identifying expanded air service as a goal should occur. At a minimum, further exploration of multi-modal transportation opportunities is a

must, given the expanding ports to the south.

ObservationsFindings



Conclusions

Strengths Business Climate

Workforce /Education

Sites/Infrastructure/Buildings

Quality of Life

Economic Development and Marketing

Weaknesses Workforce/Education (From Employer

Dialogue)

Opportunities Economic Development and Marketing

Workforce/Education (Future

Opportunities)

Threats Business Climate (Apathy)



Appendix 1 Appendix 1: Review of Sites and buildings in the Lufkin area.

Upon initial review, there are weaknesses in the database concerning information on available

buildings and sites found in the Lufkin website. The primary weaknesses found are all data

related. There is no information concerning available or future utilities attached to any of the

sites or facilities. This is information that is critical for both site selectors and business/industry

in determining whether they will consider a potential site or facility for a location. Additionally,

there is very little information concerning lease or purchase options and associated costs, so that

appropriate initial cost comparisons can be calculated.

A remedy that should be considered is the use of the Site Selection Standards that were

established by IEDC a number of years ago. While they were never formally adopted they are

still the best accumulation of desired data that has been put together. These data standards can

be found in their entirety on the IEDC Website www.iedconline.org.

Companies and Site Selection Professionals do a majority of their initial searches over the

Internet. Thus an organization must provide as much detail as is possible to keep your

community and products (Buildings and Sites) from being rejected before you get a chance to

have a conversation with the potential client. Lufkin is no exception; an example of additional

information needs for an existing building such as the Shell Building would be to include a

number of potential details. While the information included on the webpage includes key

elements such as zoning, acreage, rail access and provider, building type, overall square footage,

column spacing, year built, construction type and ceiling height more information is needed to

answer critical questions as to whether the building will work for a particular client.

The proposed floor thickness of a standard building would be an important piece of information.

Also is the ceiling height to the joist or the height of the building itself. The number of truck

docks and type would also be important to include as well as the potential number of rail doors.

There should also be a building layout with placement of columns, docks, and doors with

potential locations of utility entrances. More critical elements are what utilities are to the

building and which need to be extended, the time needed to extend to building, the size (volume)

of service, the service provider, and generic costs for service including any additional fees and

charges. As noted on the data sheet of the Shell Building, both the sprinkler system and

overhead cranes are engineered for the building. It would be important to include the type of

sprinkler system envisioned (wet or dry) or required for the building, and the maximum tonnage

capacity for the proposed crane that could be installed. Lastly, there needs to be included the fire

insurance rating for the structure, the proposed tax levy on the facility and an approximate cost

for purchase or lease as is. By having this information for all of your facilities, the client will be

able to conduct a more efficient search and thus have a better feel for the community.

An example of the needs for an Industrial site is quite similar to that of a building. However

there are a few additions for a site. An example in Lufkin would be the Lufkin

http://www.iedconline.org/



Business Park. The information currently listed includes Zoning, Incentive Zones, Size, Rail

Access and Provider, Environmental Condition and site type and location. Additional data

needed to entice a potential client would be a topographical and aerial map showing elevations

(preferably 2 ft. contours), the proposed platting for the whole property and potential ingress and

egress points. Also identify the locations for potential roadways and water drainage, including

retention basins and flowage easements. Size/volume, location, service provider and extension

time lines for servicing the site with all utilities. Also include a listing of utility service rates and

other fees required of a user as well as the tax rate on the property itself. Include the cost per

acre or per square foot of the property so that the client can run their numbers for the overall cost

of the project.

By providing this type of detail you will not only be assisting potential clients with pertinent

data, but will also be saving yourself valuable time in dealing with clients that have no intention

of locating in a facility or site that does not meet their respective needs. Another thing to

consider is how current is the information on your Sites and Building Webpage. Are the

properties still available, is the price still the same, have any of the other data changed about the

properties. This is one of the largest problems experienced by site selection professionals today,

making sure that the information provided is current and accurate. The more you do to assure

the accuracy of your information the more leads will be drawn to your location.

Following is a partial list of needs as identified to be used in the Buildings and site section of the

Lufkin Website as well as basic database:

Building Information

Square Foot Dimensions

Ceiling Heights Under Joist

Sprinkler System

Dry/Wet

Size/Capacity/Rating

Column Spacing

Floor Thickness/Weight Capacity

Loading Docks

Number

Type

Zoning

Environmental Study

Construction Type

Age of Facility

Previous Use

Ingress/Egress

Site Topography



Transportation

Highway

Rail

Barge/Port

Airport

Utilities

Electricity

Service to Facility

Service Provider

Costs of Hook-up and Processing

Dual/Single Feed

Interior Service

Natural Gas

Size/Pressure of Service

Service Provider


Distance to service

BTU Value

Water

Size of Service

Line Size

Pressure of Service

Service Provider


Rated Capacity

Peak Demand

Sewer

Size of Main

Service Provider


Treatment Plant Capacity

Peak Demand

Pre-treatment requirements

Telecommunications

Current Service provider

Type of Switch

Points of Presence (POPs)


Fiber Availability

Fire insurance Rating

Taxes/Fees on Facility

Lease/Purchase Prices



Site Information

Acreage

Site Plat/Boundaries

Topography

Soil Bearings

Aerial Photography of Site

Elevation (Flood Zone)

% Wetlands

Environmental (Min. Phase 1)

Price per Acre

Transportation

Highway

Rail

Barge/Port

Airport

Zoning

Utilities

Electricity

Size/Type of Service to Site

Service Provider

Dual/Single Feed

Rates

Natural Gas

Size/Pressure of Service to Site

Service Provider

Rates

Water

Size/Pressure of Service to Site

Service Provider

Extension and Service Costs to Site

Capacity of System

Sewer

Size of Service to Site

Service Provider

Hook-up and Extension Requirements

Costs associated with Hook-ups and Processing

Telecommunications

Current Service provider

Type of Switch

Points of Presence (POPs)


Fiber Availability

Fire Insurance Rating



These are the more critical types of information that needs to be easily accessible by a potential

client when they are looking for a potential location. This data should be available on all

properties included in the Lufkin Site and Building Database. Additionally, there also needs to

be as many photographs of the Sites and Buildings from multiple angles inside and out. This

allows the potential client to better determine which facility or site meet their initial criteria.

1 The Lufkin/Angelina County Market Valuation and Action Plan, Part 2

The Lufkin/Angelina County Market Valuation and Action Plan, Part 2 Prepared for the: Lufkin Economic Development Corporation The Economic Development Partnership

Part 2-Market Valuation and Action Plan Targeted Industries This is the second part of the three part Market Valuation and Action Plan, which includes the identification of Targeted Industries in economic development terms for the City of Lufkin/Angelina County.

2010

Submitted by the Mike Barnes Group, Inc.

11/15/2010


Table of Contents

Preface………………………………………………………………………………….......................3

Introduction………………………………………………………………..…………………………4 Targeted Industries and Businesses………………………………………………………5 Appendix 1…………………………………………………………………………………………….9 Appendix 2……………………………………………………………………………..……………25 Appendix 3…………………………………………………………………………………………..66

The Lufkin/Angelina County Market Valuation and Action Plan, Part 2 3


Preface

The Strategic Plan is the second document in a series of economic development documents

presented to Lufkin/Angelina County. The first document, the SWOT was developed from

interviews and research conducted by the Mike Barnes Group during October and November

2010. The second document, entitled, Report 2-Targeted Industries represents findings derived

from the aforementioned interviews, additional interviews and on-site inspections of educational

and training facilities located in Lufkin and Nacogdoches. The Strategic Plan will incorporate

the findings of those earlier documents and research, coupled with the recommendations of the

Consultant Team. The Consultant Team has executive level economic development experience

that totals more than ninety years. Two members of the Consultant Team possess advanced

degrees. In addition, the MBG has an extensive database derived from both community

economic development work and site selection/incentive negotiation projects.

The Strategic Plan will identify potential targeted industries and businesses for the Lufkin

EDC/Angelina Partnership. In addition, it will provide a Marketing Plan that can easily be

implemented. Finally, the Strategic Plan will provide an organizational analysis of the economic

development organization(s). The MBG appreciates the hard work and dedication of all those

persons identified in Report 1 and 2 in helping this project come to fruition. MBG acknowledges

the specific effort of the staff of the Lufkin EDC/Angelina Partnership in providing logistics,

establishing appointments, answering numerous inquiries, and the hospitality throughout this

project.

The Consultant Team of the Mike Barnes Group included the firm’s President/CEO, Michael

Barnes, from Blanco, Texas, Senior Associate, Jack Allston of JBA and Associates from Rio

Rancho, New Mexico and James Kinnett of TKCG from Lawrenceburg, Indiana. Similarly, we

appreciate the assistance from Angelina College and Stephen F. Austin in providing additional

insight into the research portion of this project.

To suggest that the Lufkin EDC/Angelina Partnership has been anything but successful in its

economic development endeavors would be inaccurate. The goal of this process is to further

enhance the ability of Lufkin/Angelina County to be competitive in the global marketplace. It

has been estimated that at least 10,000 organizations such as the Lufkin EDC/Angelina

Partnership compete with one another for the obviously limited economic development projects.

This speaks volumes in terms of the recent success of the Lufkin EDC/Angelina Partnership!


Introduction

Lufkin/Angelina County possesses major attributes in terms of economic development

competitiveness. As is the case with most areas, there are barriers to its being more competitive.

The Strategy the Consultant Team is recommending recognizes this situation. Of significant

importance is the ―market orientation‖ of the MBG approach. Rather than a theoretical

document, the Strategy puts into place proven economic development practices.

In identifying targets, MBG recognized the importance and contribution of Lufkin/Angelina

County’s existing industry. Likewise, the targets were developed with a keen recognition of the

area workforce—existing and potential. The Consultant Team was cognizant of recent success

in the aviation-related industry. Simultaneously, a push to help diversify the economy and

enhance the future opportunities for residents was made with identified targets that offered subtle

modifications to the existing industrial base and the accompanying workforce.

Having identified targets also is a valuable asset when establishing a marketing plan. Any

marketing strategy must be given time. Too many economic development organizations shift

their focus and strategy prematurely. Economic development is rarely instantaneous. Typically,

the process takes a matter of months, or in many cases, years. Evaluation of the marketing plan

should be ongoing and modifications reflective of the marketplace made.

Perhaps the easiest component of this three phased report is that of Organizational Analysis.

Candidly, the Lufkin EDC appears to be well organized and funded. Staffing could be an issue

that will be addressed in the next phase, as we address the marketing component. This

contributes significantly to the successful economic development effort. There will be some

observations/recommendations suggesting perhaps other approaches and identifying minor

modifications to enhance the organization. On balance, Lufkin EDC/Angelina Partnership

should be very proud of the accomplishments of its economic development organization and

staff.



Targeted Industries and Businesses

Selecting target industries for Lufkin/Angelina County is a multi-step process. In Report 1,

Results of the SWOT, we identified the area’s strengths and weaknesses as a location for

business growth. From this, we employ a ―site selection‖ methodology that seeks to answer the

following four questions:

1. Are there local assets that give specific industries a competitive edge? What clusters currently exist locally, and are they growing? Immediate and obvious

candidates for targets are those that are experiencing growth within the community or

surrounding communities. Industries that have a large presence but lack growth suggest

that the county is losing its competitiveness in this industry. While the industry may be a

candidate to target for a retention effort, a long-term decline calls for a close look at

transitional opportunities into new industries that create jobs (e.g. textile workers

transitioning into food processing).

2. Are existing or emerging local clusters growing nationally or undergoing geographic dislocation? For those local clusters that have potential, are they growing

nationally as well? While some industries are experiencing high growth rates, most U.S.

industries are modest or stagnant in their growth. However, the dislocation of industries

from one part of the country to another has been a longstanding opportunity for

recruitment. Many industries undergo restructuring in order to be more competitive or

simply suffer a high rate of startup and failure.

3. Communities are as unique as people. Each one has strengths that companies can leverage to create competitive advantages. These strengths can include such things as

workforce skills, tax structure, infrastructure, and market proximity. Likewise, many

companies have specific infrastructure and workforce minimum requirements, and

understanding whether the region can meet those requirements is crucial. For example, if

the region lacks water and wastewater capacity or has overly stringent environmental

regulations, then the community could be ruled out for food processing and

semiconductor manufacturing. Understanding the needs of target companies is essential

to recruiting them.

4. Does the industry match community goals? The most important criterion is often whether or not the industry matches the stated goals of the community. Some

communities may want to avoid manufacturing businesses or businesses that don’t pay

high enough wages. Sometimes lack of available land requires a more precise list of

targets. Communities wanting to maintain a small-town appeal, for example, may target

homegrown ―soft‖ industries. Others wanting to transition into a more urban,

metropolitan setting may focus more on larger office users.



―Site selection‖ is a broad term that describes a company’s process of selecting a city for a new

office or the relocation of existing divisions. This process involves executives from several

divisions within the company (such as Executive, Human Resources, Facilities Planning, and

sometimes Marketing) and often involves a consultant or real estate broker. Site selection is not a

scientific process, but does involve a system of measurements and calculations, many of which

are subjective to the company.

Traditionally, the growth of economies has been described in terms of a region’s ―basic‖ or

―primary‖ industries. These industries typically export their goods or services outside the region,

thereby supporting local industries such as retail, housing construction, and personal services

through its payroll and local purchases. Primary industries reflect an injection of outside money

into the community and have a high economic impact; according to various economic impact

analyses, a typical primary business may create two additional jobs in the local economy for

every one job at its facility. For this reason, communities across the country compete to recruit

or retain these high-impact, primary businesses.

Manufacturing is a good example of a primary industry, as most customers would be found

throughout the U.S. or even internationally. With the manufacturing industry in decline and the

increasingly global nature of business today, many more industries are increasingly ―primary‖ in

their make-up: distribution centers may serve a multi-state region; back office operations can

serve a company’s global network of employees; and custom software companies can

build Internet applications that serve businesses anywhere in the world. Federal installations such

as army bases or federal research labs are clear examples of how government can be classified as

a primary industry. High wage jobs are usually found at national or global companies that are

enjoying growth.

While businesses are more global in nature today, rapid gains in technology,

telecommunications, and markets continue to alter the location requirements of many companies.

Often the speed of business drives corporate location decisions. Research conducted by the

Industrial Asset Management Council suggests that the competition for top talent is now viewed

to be the most important component of a successful company. Today’s business environment

requires that businesses continue to upgrade their technological capabilities while expanding the

skills of the available workforce. Innovation and change are now basic requirements for success.

In the following pages, we will identify potential targets, based upon those criteria outlined

above and the results of the findings in the previous report. These targets will be identified by

the NAICS codes, many at the six digit level. North American Industry Classification System or

NAICS codes were developed as a standard for use by the federal statistical agencies in

categorizing business and industry, according to the NAICS Association.




As indicated previously, targets are subject to ―fit‖ within a community. Upon review of the

workforce and existing clusters, a concentrated effort was made to identify those industry

clusters that utilized the existing foundation while drawing upon new technologies and

expanding industries nationally and internationally. It is with those parameters in place that the

following targets are offered:

Primary Targets for Lufkin/Angelina County

*North American Industry Classification System (NAICS)

The above cited targets take advantage of the infrastructure, sites, workforce, and educational

foundation available within Lufkin/Angelina County. Utilizing linkages with Angelina College

and Stephen F. Austin University, tremendous opportunities exist within the Research and

Development, Consulting, and Environmental Services/Engineering sectors. In addition, there

are many components within the traditional industrial base of Lufkin/Angelina County that

provide transferable skills to the above targets.

Please see Appendix 1 for Input/Output Analysis of a number of primary and secondary targets

identified by the Consultant Team for Lufkin/Angelina County.

333294-333111*

Food Product Machinery Manufacturing

54162*

Environmental Consulting Services/Engineering

54171*

Research and Development in the

Physical, Engineering, and Life Sciences

54141-3*

Interior and Graphic Design Services

5614*

Business Support Services/Back Offices



Secondary Targets for Lufkin/Angelina County

*North American Industry Classification System (NAICS)

The following appendices illustrate the gaps that exist within Angelina County for satisfying the

needs of the primary and secondary targets. Those areas with large imported services obviously

are greater targets for Lufkin/Angelina County. Appendix 2 provides background information

on the targets and identifies industry leaders by name and sales in those sectors.

115112*

Soil Preparation, Planting, and

Cultivating115114*

Postharvest Crop Activities (except Cotton Ginning)

33321*

Sawmill and Woodworking

Machinery Manufacturing

3327*

Machine Shops; Turned Product; and Screw, Nut,

and Bolt Manufacturing

484122*

General Freight Trucking, Long-

Distance, Less Than Truckload

333993*

Packaging Machinery Manufacturing

3335*

Metalworking Machinery

Manufacturing



Appendix 1

Gap Analysis Report

Economic Modeling Specialists, Inc. www.economicmodeling.com


Region Info Region: Angelina Co. County Areas: Angelina, Texas (48005)

2010 Requirements for: Farm Machinery and Equipment Manufacturing

NAICS Code

Description Total

Requirements (K)

% Satisfied in Region

% Satisfied out of Region

331111 Iron and Steel Mills $9 0% 100%

332116 Metal Stamping $6 0% 100%

333618 Other Engine Equipment Manufacturing $6 0% 100%

551114 Corporate, Subsidiary, and Regional Managing Offices

$6 33% 67%

326199 All Other Plastics Product Manufacturing $4 0% 100%

331511 Iron Foundries $3 67% 0%

425120 Wholesale Trade Agents and Brokers $2 0% 100%

326291 Rubber Product Manufacturing for Mechanical Use

$2 0% 100%

326299 All Other Rubber Product Manufacturing $2 0% 100%

332710 Machine Shops $2 50% 50%

332912 Fluid Power Valve and Hose Fitting Manufacturing

$2 0% 100%

325510 Paint and Coating Manufacturing $2 0% 100%

541990 All Other Professional, Scientific, and Technical Services

$1 100% 0%



333996 Fluid Power Pump and Motor Manufacturing $1 0% 100%

522110 Commercial Banking $1 0% 100%

331210 Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

$1 0% 100%

332722 Bolt, Nut, Screw, Rivet, and Washer Manufacturing

$1 0% 100%

326211 Tire Manufacturing (except Retreading) $1 0% 100%

331221 Rolled Steel Shape Manufacturing $1 0% 100%

541330 Engineering Services $1 0% 100%

332991 Ball and Roller Bearing Manufacturing $1 0% 100%

332999 All Other Miscellaneous Fabricated Metal Product Manufacturing

$1 0% 100%

332911 Industrial Valve Manufacturing $1 0% 100%

517110 Wired Telecommunications Carriers $1 100% 0%

423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

$1 0% 100%

332721 Precision Turned Product Manufacturing $1 0% 100%

331513 Steel Foundries (except Investment) $1 0% 100%

326220 Rubber and Plastics Hoses and Belting Manufacturing

$1 0% 100%

335911 Storage Battery Manufacturing $1 0% 100%

333995 Fluid Power Cylinder and Actuator Manufacturing

$1 0% 100%

423830 Industrial Machinery and Equipment Merchant Wholesalers

$1 0% 0%

484121 General Freight Trucking, Long-Distance, Truckload

$1 100% 0%

424210 Drugs and Druggists' Sundries Merchant Wholesalers

$1 0% 100%

533110 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

$1 0% 100%

332919 Other Metal Valve and Pipe Fitting Manufacturing

$1 0% 100%

332111 Iron and Steel Forging $1 0% 0%

336399 All Other Motor Vehicle Parts Manufacturing $1 0% 100%

518210 Data Processing, Hosting, and Related Services

$1 0% 100%

333132 Oil and Gas Field Machinery and Equipment Manufacturing

$1 0% 100%

333120 Construction Machinery Manufacturing $1 0% 0%

327999 All Other Miscellaneous Nonmetallic Mineral Product Manufacturing

$1 0% 0%

423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

$1 0% 100%

333612 Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing

$1 100% 0%

331512 Steel Investment Foundries $1 0% 100%

423690 Other Electronic Parts and Equipment Merchant Wholesalers

$1 100% 0%

336350 Motor Vehicle Transmission and Power Train Parts Manufacturing

$1 0% 100%


336370 Motor Vehicle Metal Stamping $1 0% 100%

Source: EMSI Complete Employment - 3rd Quarter 2010

Note: Requirements less than $1K are not shown

Data Sources and Calculations

Input-Output Data The input-output model in this report is created using the national Input-Output matrix provided by the federal Bureau of Economic Analysis. This is combined with the national Total Gross Output, the regional Total Gross Output, the land area of the subject region, regional DIRT data and regional in/out commuter patterns in order to calculate regional requirements, imports and exports. After using matrix algebra to calculate the regional multiplier, the resulting matrix is multiplied by the sales vector and converted back to jobs or earnings. Specifically, this data comes from the U.S. Department of Commerce, Bureau of Economic Analysis, Industry Economic Accounts: Benchmark & Annual Input-Output (I-O) Accounts.

State Data Sources This report uses state data from the following agencies: Texas Workforce Commission.

2010 Requirements for: Corporate, Subsidiary, and Regional Managing Offices



NAICS Code

Description Total

Requirements (K)



541110 Offices of Lawyers $2,870 36% 64%

517110 Wired Telecommunications Carriers $2,510 95% 5%


$1,762 0% 100%

541611 Administrative Management and General Management Consulting Services

$1,522 0% 100%


$1,227 26% 74%

531210 Offices of Real Estate Agents and Brokers $1,183 28% 72%

531110 Lessors of Residential Buildings and Dwellings $1,161 95% 5%

531120 Lessors of Nonresidential Buildings (except Miniwarehouses)

$1,041 74% 26%

541810 Advertising Agencies $885 1% 99%

517210 Wireless Telecommunications Carriers (except Satellite)

$733 40% 60%


$617 95% 5%

541211 Offices of Certified Public Accountants $580 89% 11%

531390 Other Activities Related to Real Estate $557 90% 10%

541613 Marketing Consulting Services $469 0% 100%

541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

$463 0% 100%

531311 Residential Property Managers $461 32% 68%

517911 Telecommunications Resellers $433 26% 74%

541690 Other Scientific and Technical Consulting Services

$384 7% 93%

541512 Computer Systems Design Services $372 11% 89%

221112 Fossil Fuel Electric Power Generation $363 2% 98%

524210 Insurance Agencies and Brokerages $348 50% 50%

541219 Other Accounting Services $330 95% 5%

531190 Lessors of Other Real Estate Property $325 95% 5%

221122 Electric Power Distribution $324 19% 81%

541820 Public Relations Agencies $317 1% 99%

531312 Nonresidential Property Managers $306 74% 26%

515120 Television Broadcasting $306 3% 97%

323110 Commercial Lithographic Printing $300 67% 33%

332710 Machine Shops $299 68% 32%

531130 Lessors of Miniwarehouses and Self-Storage Units

$297 95% 5%

541618 Other Management Consulting Services $269 3% 97%

541612 Human Resources Consulting Services $256 0% 100%

511110 Newspaper Publishers $249 79% 21%

221210 Natural Gas Distribution $235 89% 11%

541614 Process, Physical Distribution, and Logistics Consulting Services

$226 0% 100%

813910 Business Associations $214 62% 38%

813410 Civic and Social Organizations $197 34% 66%


811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

$185 95% 5%

511120 Periodical Publishers $179 18% 82%

515112 Radio Stations $177 25% 75%

541860 Direct Mail Advertising $176 2% 98%

541890 Other Services Related to Advertising $176 16% 84%

541711 Research and Development in Biotechnology $172 0% 100%

221113 Nuclear Electric Power Generation $160 0% 100%

541620 Environmental Consulting Services $157 10% 90%

517919 All Other Telecommunications $153 1% 99%

541214 Payroll Services $151 3% 98%

519130 Internet Publishing and Broadcasting and Web Search Portals

$147 0% 100%


813920 Professional Organizations $137 3% 96%








2010 Requirements for: Forest Nurseries and Gathering of Forest Products

NAICS Code

Description Total

Requirements (K)



115115 Farm Labor Contractors and Crew Leaders $1,158 0% 100%

115210 Support Activities for Animal Production $701 1% 99%

115114 Postharvest Crop Activities (except Cotton Ginning)

$566 0% 100%

115112 Soil Preparation, Planting, and Cultivating $436 3% 97%

115310 Support Activities for Forestry $279 15% 85%

115116 Farm Management Services $200 0% 100%

11A000 Crop and animal production $146 64% 37%

115113 Crop Harvesting, Primarily by Machine $98 0% 100%

115111 Cotton Ginning $84 0% 100%

333111 Farm Machinery and Equipment Manufacturing $28 0% 100%


311119 Other Animal Food Manufacturing $20 0% 100%

711510 Independent Artists, Writers, and Performers $16 0% 100%


324110 Petroleum Refineries $8 13% 88%


811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

$4 100% 0%

113110 Timber Tract Operations $4 100% 0%



$4 75% 0%

522120 Savings Institutions $3 0% 100%


$3 0% 100%

541310 Architectural Services $3 0% 100%

522292 Real Estate Credit $3 0% 100%


$2 50% 50%

522130 Credit Unions $2 0% 100%

541110 Offices of Lawyers $2 50% 50%


$2 50% 100%

713910 Golf Courses and Country Clubs $2 0% 100%

721110 Hotels (except Casino Hotels) and Motels $2 0% 100%

325320 Pesticide and Other Agricultural Chemical Manufacturing

$2 0% 100%

811111 General Automotive Repair $2 50% 0%


$2 0% 100%

423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers

$2 0% 100%

323110 Commercial Lithographic Printing $2 50% 50%

511210 Software Publishers $2 0% 100%

423690 Other Electronic Parts and Equipment Merchant Wholesalers

$2 100% 0%

424490 Other Grocery and Related Products Merchant Wholesalers

$1 100% 0%

811490 Other Personal and Household Goods Repair and Maintenance

$1 100% 0%

541380 Testing Laboratories $1 0% 100%

524126 Direct Property and Casualty Insurance Carriers

$1 0% 100%

424410 General Line Grocery Merchant Wholesalers $1 100% 0%

336399 All Other Motor Vehicle Parts Manufacturing $1 0% 100%

811121 Automotive Body, Paint, and Interior Repair and Maintenance

$1 100% 0%

423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers

$1 100% 0%

322211 Corrugated and Solid Fiber Box Manufacturing $1 0% 100%

423990 Other Miscellaneous Durable Goods Merchant Wholesalers

$1 100% 0%

523120 Securities Brokerage $1 0% 100%

423120 Motor Vehicle Supplies and New Parts Merchant Wholesalers

$1 0% 100%

522310 Mortgage and Nonmortgage Loan Brokers $1 0% 100%

326211 Tire Manufacturing (except Retreading) $1 0% 100%








2010 Requirements for: All Other Industrial Machinery Manufacturing


NAICS Code

Description Total

Requirements (K)




$7 29% 71%

331111 Iron and Steel Mills $6 0% 100%

332710 Machine Shops $5 60% 40%

331511 Iron Foundries $2 100% 0%


335314 Relay and Industrial Control Manufacturing $2 0% 100%


332991 Ball and Roller Bearing Manufacturing $1 0% 100%

335312 Motor and Generator Manufacturing $1 100% 100%


$1 100% 0%


332813 Electroplating, Plating, Polishing, Anodizing, and Coloring

$1 100% 0%

331210 Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

$1 0% 100%

331221 Rolled Steel Shape Manufacturing $1 0% 100%


$1 0% 100%


$1 0% 100%

331513 Steel Foundries (except Investment) $1 0% 100%

332812 Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers

$1 0% 100%

333912 Air and Gas Compressor Manufacturing $1 0% 100%

332912 Fluid Power Valve and Hose Fitting Manufacturing

$1 0% 100%

333515 Cutting Tool and Machine Tool Accessory Manufacturing

$1 0% 100%

333612 Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing

$1 100% 0%

331316 Aluminum Extruded Product Manufacturing $1 0% 100%

332722 Bolt, Nut, Screw, Rivet, and Washer Manufacturing

$1 0% 100%

332431 Metal Can Manufacturing $1 0% 100%


$1 0% 0%

332312 Fabricated Structural Metal Manufacturing $1 0% 0%

333996 Fluid Power Pump and Motor Manufacturing $1 0% 100%

334413 Semiconductor and Related Device Manufacturing

$1 0% 100%


$1 0% 0%

332999 All Other Miscellaneous Fabricated Metal Product Manufacturing

$1 0% 0%

333294 Food Product Machinery Manufacturing $1 0% 100%

332116 Metal Stamping $1 0% 100%



541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

$1 0% 100%

551112 Offices of Other Holding Companies $1 0% 100%


$1 0% 0%

331315 Aluminum Sheet, Plate, and Foil Manufacturing $1 0% 100%

332721 Precision Turned Product Manufacturing $1 0% 100%







2010 Requirements for: Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

NAICS Code

Description Total

Requirements (K)




$6 83% 0%

541611 Administrative Management and General Management Consulting Services

$4 0% 100%


561730 Landscaping Services $4 75% 25%

561720 Janitorial Services $4 75% 25%

561320 Temporary Help Services $3 100% 33%

541110 Offices of Lawyers $3 33% 67%


$3 0% 100%

531210 Offices of Real Estate Agents and Brokers $3 33% 67%

531110 Lessors of Residential Buildings and Dwellings $3 67% 0%


561110 Office Administrative Services $3 33% 33%


531120 Lessors of Nonresidential Buildings (except Miniwarehouses)

$2 100% 50%


$2 50% 50%

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