Guests Countries and Regions 2008
Texas profile
Relocating to or expanding in Texas means adding a competitive advantage. Under Governor Rick Perry’s leadership, the business climate in Texas continues to garner international attention.
Texas offers a favorable tax climate, business-driven tort reform, and low cost of doing business. The many global companies that call Texas home greatly enrich its multi-faceted, wide-open-for-business landscape.Texas is logistics friendly with its top-notch roads, airports, rail system, and ports. The state has an abundance of highly skilled workers. And the Lone Star State offers a dynamic quality of life.
The Lone Star State: America’s Best Place to Do Business Texas has a business climate that is second to none.
Texas had the most cities honored for the United States in the 2007 North American Cities of the Future awards from London-based Foreign Direct Investment magazine. Closer to home, Chief Executive Magazine’s poll of the U.S.’s leading executives ranked Texas as the best state in which to do business, applauding the state for controlling taxes and spending as well as for its positive regulatory burden, quality of life and infrastructure. Texas’ pro-business attitude is as big as the state itself. Texas ranked No. 1 for the number of firms on the 2008 FORTUNE 500 and 1,000 lists, with 113 companies. The Lone Star State is home to 58 of the nation’s FORTUNE 500 companies.
According to the U.S. Department of Commerce’s latest foreign direct investment report, French and UK based companies contributed a combined $29.5 billion annually in foreign direct investment into the Texas economy and employ about 108,700 workers. This represents 34 percent of the total foreign direct investment into the state of Texas.
If Texas were its own nation it would represent the world’s 10th largest economy, and for the sixth consecutive year, Texas is the top exporting state in the nation. Texas’ exports for 2007 were valued at more than $168 billion.
Companies flock to Texas because of several business advantages including having one of the lowest tax burdens in the country, ranking No. 42 of 50 states in the percentage of individuals’ income that goes to local, state and federal taxes Texas also does not have a personal income tax, and its constitution requires a vote of the people in order to pass one.
The state’s innovative, deal-closing fund – the Texas Enterprise Fund (TEF) – continues to be a drawing card for businesses. As of February 2008, the TEF has closed the deal on projects generating more than 51,000 new jobs and $13.6 billion in capital investment in the state. The Texas Legislature established the TEF to provide financial resources to help strengthen the state’s economy. Capital investment, job creation, wages generated, financial strength of the applicant, applicant’s business history, analysis of relevant business sectors, and a project’s federal and local government and private sector financial support are all factors influencing approval.
Another tool in Texas’ impressive economic development arsenal is the Texas Emerging Technology Fund (ETF), which is designed to expedite the development and commercialization of new technologies and attracting and creating jobs in technology fields.
The ETF focuses on three main investment areas: increasing research collaboration through Regional Centers of Innovation and Commercialization located throughout the state; matching research grants funds; and attracting more top-notch research talent. As of May 2008, the ETF has allocated more than $110 million in grant funds to Texas companies and universities.
A High-Powered Workforce: For Today and Tomorrow
Texas has the second largest civilian workforce in the United States with 11.3 million workers. To continue to provide a strong workforce for tomorrow, Texas continues to make the grade with education as a national leader in setting education and accountability standards, high school graduation standards and other innovative education efforts. Texas’ 143 institutions of higher education produce a highly educated work force. The Lone Star State boasts the nation’s third largest pool of graduate scientists and the second largest pool of graduate engineers. The state has an estimated 1.19 million students enrolled in institutions of higher learning, and has awarded more than 146,000 degrees annually. Eleven Nobel Laureates in the Sciences call Texas home.
Reliable Transportation Routes
Texas supports a state-of-the-art transportation and telecommunications network that facilitates the movement of people, goods and information. Texas has 23 airports with Customs Service (Ports of Entry). The state’s Trans Texas Corridor – using public-private partnerships to accelerate development – will further enhance mobility around the state.
A few Texas transportation assets include:
- Fort Worth Alliance Airport is the first purely industrial airport in the Western Hemisphere.
- 45 railroads operate on 10,246 miles of track to carry more than 360 million tons of freight each year.
- More than 300,000 miles of public roads – more than any other state.
- Dallas/Fort Worth International Airport set an all-time international cargo record in 2006 with 281,486 metric tonnes.
- 13 deep-water ports with channels at least 30 feet deep, and 29 seaports line the Gulf Coast.
- The Port of Houston is ranked first in the U.S. in foreign waterborne commerce, and ranks second in the U.S. and sixth in the world in total tonnage.
Abundant Resources
With more than 267,000 square miles of land, Texas is a state with abundant natural resources and energy. Texas is the No. 1 producer of oil and gas, refined products, and chemicals in the United States, and its marketed production of natural gas represents one-third of 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.
Texas is better known for its oil wells than its wind turbines; nonetheless, the state currently leads the nation in renewable energy potential and in wind energy production.
Texas is the only state with its own power grid. The state boasts one of the most robust, well-functioning electric markets in the world. Texas shares more than 1,250 miles of border with Mexico, making the state a major gateway to trade with Central and South America. An estimated 70 percent of the United States’ commerce with Mexico travels through Texas.
Diverse Economic Base
In 2004, Texas introduced a comprehensive job creation effort to encourage growth opportunities for six key industries. The State of Texas presents unique advantages in these fields.
The industries are:
• Advanced Technology and Manufacturing
• Energy
• Aerospace and Defense
• Biotechnology and Life Sciences
• Information and Computer Technology
• Petroleum Refining and Chemical Products
Among U.S. states, Texas ranks second in the number of patents issued annually and third in investments into venture-backed companies. High tech companies such as Texas Instruments, EDS, Samsung and Dell call Texas their home. San Antonio’s Southwest Research Institute is the world’s third-largest independent, nonprofit applied research and development center.
Texas continues to provide fertile ground for biotechnology and life sciences. Texas ranked in the top 10 in the U.S. for the number of traditional biotechnology companies located in-state, according to 2006 Ernst & Young data. The Texas Medical Center in Houston is the world’s largest medical complex and headquarters more the 45 health care organizations.
Texas has been on the leading edge of aerospace and defense from the beginning of manned flight. In 1961, Johnson Space Center was established in Houston as the Manned Spacecraft Center. The Space Center serves as flight control for the International Space Station, a collaborative effort of 16 nations and the largest, most powerful complex human facility to ever operate in space.
Quality of Life
With its beautiful landscapes, warm weather, and famous hospitality, Texas remains a popular choice for people looking to relocate. Texas has been labeled as one of the most affordable places to live and the second most popular U.S. state in which to retire. The cost of living composite index for most metro areas in Texas is lower than the national composite index of 100.
The Lone Star State’s beaches, rugged mountains, endless prairies, and piney woods provide a spectacular diversity of geography and wildlife. The same diversity extends to the people who call Texas home, creating a rich cultural heritage.
