Houston is ready-made for business success. World-class infrastructure, welcoming business networks, and a can-do spirit among Houstonians, combined with a broad range of business resources, supports companies wishing to expand or relocate in the area.
The region offers a highly educated and skilled work force, a world-class infrastructure and transportation system and fosters a can-do spirit.
Houston is among the nation's fastest-growing metropolitan areas. If the City of Houston were a state, it would rank 36th in population. The 10-county Houston region is the nation's seventh most populous metro area. Were it a state, it would rank 21st, ahead of Minnesota and behind Wisconsin.
The Houston region has a thriving business community and is a major corporate center. The region is home to twenty-nine 2009 Fortune 500 companies and many more multinational and domestic companies maintain operations here.
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Industries:
Houston is home to a diverse and dynamic industrial base that will propel the region to the forefront in the 21st century. The Partnership has identified key industries where Houston lays claim to a unique set of business assets that drive focused efforts to build centers of excellence, create innovative projects, and develop targeted initiatives that will build revenues and attract talents. These industries include:
- Advanced Manufacturing
- Aerospace/Aviation
- Biotechnology/Life Sciences/Medical
- Distribution/Logistics
- Energy
- Petrochemicals
- Alternative Energy
- Headquarters
- Information Technology
- Nanotechnology
Enormous Labor Shed:
- Ranks sixth among U.S. metropolitan statistical areas with a population of 5,728,143 as of mid-2008.
- Covers more than 10,000 square miles.
- Has a gross product in 2008 was $435.9 billion, according to The Perryman Group.
- Recorded 2.55 million payroll jobs in May 2009, more than the job counts of 29 U.S. states, including Arizona, Colorado and Alabama.
- Ranks as the number one place to live in the country, according to Kiplinger Personal Finance. Kiplinger reviewed places with strong economies and abundant jobs, reasonable living costs and plentiful entertainment amenities.
Since the 2000 census the Houston MSA has grown 21.5%, which is well above the growth in population over that same time period for the state of Texas (16.7%) and the nation (8.0%).
Taxes:
Texas' state and local tax burden has been consistently below the national average.
- Estimated at 8.4% of income, Texas's state and local tax burden percentage ranks 43rd highest nationally, well below the national average of 9.7%. Texans pay $3,580 per capita in state and local taxes.
- The Houston region consistently offers a favorable tax climate for business. In 2010 Texas ranked 11th in State Business Tax Climate Index with a score of 5.70, US average is 5.00.
Unemployment Rate
Houston's unemployment rate has been well below the nation's since November 2008.
The Work Ethic in Houston
The work ethic is alive and well - and flourishing - in Houston.
- The confidence that personal effort will be rewarded in Houston transcends racial and ethnic categories. In 2007, 87 percent of Anglos and 79 percent of blacks agreed with the statement while agreement among Hispanics - who are more likely to be both younger and more recent arrivals to Houston - reached 89 percent.
- In contrast to Houston's strongly positive attitude, agreement with this same statement in national samples over the same period has ranged only from 58 to 63 percent. The difference between Houston and the nation as a whole is statistically significant and has endured through the entire range of the regional business cycle.
Unions:
Union activity is low in Houston compared to other large U.S. urban metros with 3% of private workers that are unionized compared to the U.S. average of 8.4%
- Texas is a right-to-work state, ensuring a choice among quality union and merit shop-skilled labor. State right-to-work laws secure the right of employees to decide whether to join or financially support a union.
Business Incentives
A range of local and state incentives are available to qualifying companies in the Houston area to support new, expanding and relocating companies.
Examples:
- Texas Enterprise Fund
- Texas Emerging Technology Fund (ETF)
- Skills Development Fund
- Texas Enterprise Zone Program
- Manufacturing Sales Tax Exemption
- Tax-Exempt Industrial Revenue Bonds
- Texas Product Development Fund
- Texas Small Business Fund
- Pollution Control Property Tax Abatements
- Texas Economic Development Act
- Local Incentives:
- Freeport Tax Exemption
- Property Tax Abatements
- City of Houston Brownfield Redevelopment Program
- Foreign Trade Zone
- Texas Manufacturing Assistance Center (TMAC)
Transportation & Infrastructure
Houston's infrastructure is second to none. We leverage our locational advantage of being geographically centered between the East and West coasts with an exceptional airline system, deep sea port and intracoastal waterway, multiple major railroads and intermodal facilities, and a world-class highway system.
- In 2008, the Port of Houston ranked first among U.S. ports in volume of foreign tonnage for the 13th consecutive year.
- In 2008, the Houston Airport System (HAS) handled 50,485,186 passengers including 7,960,132 international passengers.
- Houston is well-served by a system of radial highways that provide excellent access to markets outside the region.
- Class I Railroads include Burlington Northern Santa Fe Railway (BNSF), Kansas City Southern Railway (KCS), and Union Pacific Railroad (UP); switching and terminal railroads include Galveston Railroad, L.P. (GVSR), Port Terminal Railroad Association (PTRA), and Texas City Terminal Railway Company.
International Business Costs
Houston offers an internationally competitive business environment.
- Houston's business costs are below the U.S. average and substantially below the international average for several industries including aerospace, chemicals, Port of Houston
Utilities
Natural Gas: Businesses will find natural gas to be abundant and inexpensive along the Texas Gulf Coast.
Electricity: The majority of Texas enjoys a deregulated energy market, thus providing electricity customers with a selection of retail providers and open market competition.
Telecommunications: With NASA's Johnson Space Center, twenty-nine Fortune 500 headquarters, thousands of multinational companies and the world's largest medical center, the Houston region benefits from some of the most sophisticated and robust communications networks in the world.
Water & Sewer: Houston has the water and sewer capacity to meet the current and future needs of the region.
Living Here
The fourth-largest metropolitan region in the country is also one of the best bargains when it comes to housing costs.
Houston's housing costs are more than 25% lower than the national average and 42% lower than the average of the 27 metro areas with more than 2 million residents.
Low housing costs are the main reason Houston's overall living costs are 11 percent below the nationwide average for places of all sizes and 20 percent below the large-metro.
Great schools and access to world-renowned higher education institutions
Access to quality healthcare, whether you need routine care or highly specialized treatment. The Houston region's health care system is first-rate. From specialized to routine care, Houston has options for everyone.
Houston brings world-class culture, sports, and recreation to residents and visitors alike. From the finest museums, symphonies, and operas to sports venues and state and national forests, Houston is well known for its breadth and diversity.
