Texas Economy Leads Nation in Numbers That Count
Apple's Customer Service Center
Apple's Customer Service current location on Riata Vista Circle in Austin, Texas.
The business climate in Texas is red hot, as the state continues to set the pace in job creation, attracting new investment and staying at the top of a number of business rankings. Those include Best State for Business by Chief Executive magazine, No. 1 State for Business by Site Selection magazine and No. 1 State for Doing Business by Area Development magazine and winner of its 2012 Gold Shovel award for its new investments and job creations in 2011. Texas has been recognized each year since the magazine began the awards, receiving the Gold Shovel in 2008, and Silver Shovels in 2006, 2007, 2009, 2010 and 2011.
“Our combination of low taxes, predictable regulations, fair courts and world-class workforce has helped create an economic stronghold that’s been the envy of the nation the last decade and a boon for any company seeking to grow, particularly innovative young companies seeking firm footing during their early years,” says Texas Gov. Rick Perry. “We’ve taken steps over the past 10 years to nurture that segment of our economy – first, by maintaining our business climate, and secondly, through programs like our Texas Emerging Technology Fund.”
Texas Enterprise Fund Lures Jobs, Investment
Joining the TETF as one of the most effective tools in the state’s economic strongbox is the Texas Enterprise Fund, the largest deal-closing fund of its kind in the nation, used only as a final incentive tool where a single Texas site is competing with another viable out-of-state option. Since its inception in 2003, TEF has invested more than $465.4 million and closed the deal on projects generating more than 73,000 new jobs and more than $18 billion in capital investment.
“The TEF forms a one-two punch with the Texas Emerging Technology Fund, which helps ensure innovative ideas that are born in Texas stay in Texas, all the way from the laboratory to the marketplace,” Perry says. “Keeping our innovators in the state, and bringing in new ones as well, is vital to the future of Texas, as our increasingly diverse economy reinvents itself in preparation for the decades to come.”
Job Creation Leads Nation
The powerhouse Texas economy created a staggering number of jobs in a five-year span from 2006 to 2011 – 451,000 of them – besting the next highest state almost eight times over. That explosion of job growth is set to continue, and the Texas population is projected to double from 25 million to 50 million over the next 30 years.
The state's Gross Domestic Product hit an astounding $1.3 trillion in 2011, more than 8 percent of the U.S. total. Texas is a global leader in numerous industry sectors, from aerospace and aviation to energy and renewables and life sciences, manufacturing and logistics.
A Who's Who of companies – 52 Fortune 500 companies are headquartered in the state – is keeping the new investment and expansion pipeline flowing. Apple will create 3,600 jobs over the next decade, more than doubling the size of the company's Texas workforce and investing $304 million in a new Austin campus. Other companies, including Direct Energy (Houston), Waste Connections Inc. (The Woodlands) and Copart (Farmers Branch), are setting up corporate headquarters in the Lone Star State.
Houston led the country in 2011 with one of the fastest-growing economies in North America, producing more corporate real estate projects (195) than any other city in the United States. And Houston, along with Austin, McAllen-Edinburg, El Paso and San Antonio, took five of the top 10 slots for metro areas creating the most private sector jobs between February 2008 and February 2012.
Skilled Workers, No Income Tax
The state’s highly favorable economic climate, the governor says, is supported by a business friendly environment that includes a deep pool of highly skilled workers, a favorable tax structure (no corporate or personal income taxes), a fair legal system and a roster of incentive programs, such as TEF and TETF, designed to encourage expansion, investment and job growth.
Business in Texas extends well beyond the state's borders. The Lone Star State is an export juggernaut, sending goods valued at $249.8 billion in 2011, tops among states for the 10th consecutive year.
“For a full decade now, Texas has been the nation’s epicenter for international trade, thanks to the continued strength of our state economy and the opportunities created by our business climate,” Perry says.
The Lone Star State Stands Alone in Job Creation
Texas is the only one of the top 20 states to add jobs during the three-year period from December 2008 to December 2011:
Texas: +74,700 jobs (+7.0%)
California: -455,000 jobs (-3.1%)
New York: -64,400 jobs (-0.7%)
Florida: -217,800 (-2.9%)
Illinois: -173,600 (-3.0%)
Pennsylvania: -39,700 (-0.7%)
Ohio: -147,600 (-2.8%)
Michigan: -113,200 (-2.8%)
Georgia: -199,400 (-5.0%)
North Carolina: -179,900 (-4.4%)
Texas Gross Domestic Product
2011: $1.30 trillion
2010: $1.22 trillion
2009: $1.13 trillion
2008: $1.21 trillion
2007: $1.15 trillion
Texas Named Top State for Export Values for 11th Year
• 2011 export value: $249.8 billion, up 20.7% from 2010
• Top export categories: petroleum and coal products, chemicals, computer and electronic products, nonelectrical machinery, transportation equipment and agricultural products
• Top export destinations