Economy of Houston
From Wikipedia, the free encyclopedia
Houston's energy industry is internationally known (particularly oil), but biomedical research and aerospace are also large parts of the city's economic base. The Houston metropolitan area comprises the largest petrochemical manufacturing area in the world, including for synthetic rubber, insecticides, and fertilizers. The area is also the world's leading center for building oilfield equipment. The city is home to 5,000 energy-related establishments, including many of the top oil and gas exploration and production firms and petroleum pipeline operators. [1] Houston is second to New York City in Fortune 500 headquarters.
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[edit] Indicators and history
The Houston–Sugar Land–Baytown MSA's Gross Area Product (GAP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars—slightly larger than Austria's Gross Domestic Product (GDP). Only 28 nations other than the United States have a GDP exceeding Houston's GAP.[2] Mining, which in Houston is almost entirely oil and gas exploration and production, accounts for 11 percent of Houston's GAP—down from 21 percent as recently as 1985. The reduced role of oil and gas in Houston's GAP reflects the rapid growth of other sectors—such as engineering services, health services, and manufacturing.[3]. Oil and gas exploration and production, however, has increased in reaction to high energy prices and a reduced worldwide surplus oil production capacity.[4] The Houston-Sugar Land-Baytown metropolitan area ranked 33rd among the nation’s 361 MSAs on per capita personal income at $36,852, making the figure 11.5 percent higher than the national figure of $33,050. Among the 10 most populous MSAs, Houston ranked fifth, trailing Washington (4th nationally), New York (8th), Philadelphia (22nd) and Chicago (31st). Total personal income in Houston was $190.8 billion in 2004, ranking Houston seventh among the 10 largest metros and ninth among all 361 metros. [5] Among the 10 most populous metro areas, Houston ranked second in employment growth rate and fourth in nominal employment growth.[6]
Historically, Houston has had several growth spurts (and some devastating economic recessions) related to the oil industry. The discovery of oil near Houston in 1901 led to its first growth spurt — by the 1920s, Houston had grown to almost 140,000 people. The city's burgeoning aerospace industry heralded its second growth spurt, which solidified with the 1973 oil crisis. Demand on Texas oil increased, and many people from the northeast moved to Houston to profit from the trade. When the embargo was lifted, the growth mostly stopped. However, Pasadena still has its refineries, and the Port of Houston is among the busiest in the world.
[edit] Manufacturing and industrial sector
Houston is home to more than 10,700 manufacturing establishments and has ranked as a Gold Medal World-Class Community for Manufacturing for four consecutive years by Industry Week magazine. [7] The Houston-Gulf Coast region has nearly 40 percent of the U.S. capacity for base petrochemicals, ensuring rapid access to major resin producers and the latest resin technologies. Houston is projected to experience a 2.7 percent increase in manufacturing employment by 2012. Metals manufacturing is a $12.0 billion industry in Houston, with nearly 2,100 establishments employing more than 67,000 workers in the region.[8] Approximately 250 establishments employ more than 20,000 people in Houston’s electronics manufacturing industries. Hewlett Packard employs more people in its Houston operations than any other HP facility in the world. [9]
[edit] Energy
Houston is known as a world capital of the oil and gas industry with over 5000 energy firms doing business in the region. [10] The city is the leading domestic and international center for virtually every segment of the oil and gas industry - exploration, production, transmission, marketing, service, supply, offshore drilling, and technology. Houston dominates U.S. oil and gas exploration and production. The city remains unrivaled as a center for the American energy industry. [11]In January 2005, the Houston Primary Metropolitan Statistical Areas (PMSA) accounted for: 31% of all U.S. jobs in oil and gas extraction (38,300 of 123,400), and 14% of all U.S. jobs in support activities for mining (28,100 of 200,900). [12] Houston is headquarters for 17 energy-related Fortune 500 companies and is home to more than 3,600 energy-related establishments. Houston is home to 13 of the nation’s 20 largest natural gas transmission companies, 600 exploration and production firms and more than 170 pipeline operators.
The Offshore Technology Conference held yearly in Houston presents the latest exploration and development technology in the energy industry to more than 50,000 attendees.
Houston is a member of the World Energy Cities Partnership, a collaboration between 13 energy focused cities around the world. [13]
[edit] Petrochemicals
Houston is one of the world’s largest manufacturing centers for petrochemicals, and the $15 billion petrochemical complex at the Houston Ship Channel is the largest in the country. Supporting the industry is a complex of several thousand miles of pipeline connecting 200 chemical plants, refineries, salt domes and fractionation plants along the Texas Gulf Coast, which allows convenient and low-cost transfer of feedstocks, fuel and chemical products among plants, storage terminals and transportation facilities. Houston has more than 400 chemical manufacturing establishments with more than 35,000 employees. [14] Houston has two of four largest U.S. refineries. ExxonMobil’s complex in Baytown is one of the oldest in the area and one of the largest of its kind in the world
More than 235 establishments in the Houston metro area manufacture plastic and rubber products. [15] Houston dominates the U.S. production of three major resins: polyethelene (38.7% of U.S. capacity); polyvinyl chloride (35.9% of U.S. capacity) and polypropylene (48.4% of U.S. capacity).
Much of Houston's success as a petrochemical complex is due to its busy man-made ship channel, the Port of Houston.[16] The port ranks first in the country in international commerce and is the sixth-largest port in the world. Amid other U.S. ports, it is the busiest in foreign tonnage and second in overall tonnage. Because of these economic trades, many residents have moved to Houston from other U.S. states, as well as hundreds of countries worldwide.
[edit] Aerospace
Houston is home to the Johnson Space Center, NASA’s largest research and development facility, employing nearly 3,000 federal civil service workers and more than 14,000 contract personnel. [17] Program offices for Project Constellation, Orion and other new space vehicle projects will create new jobs at the center. The majority of the contractor work force related to the projects will also be located at the center. [18] Texas Governor Rick Perry recently announced a $7.5 million Texas Enterprise Fund (TEF) grant to Lockheed Martin, which will bring about 1,000 jobs to the Houston area. The grant ensures that Lockheed Martin will create these jobs in the Houston area after they earned a multi-billon dollar contract from NASA to build the Orion Crew Exploration Vehicle. [19]
[edit] Corporate sector
Houston is a major corporate center. Numerous Fortune 500 companies, multinationals and domestic companies maintain operations in the city. Of the world’s 100 largest non-U.S.-based corporations, more than half have operations in Houston. [20] In 2006, the Houston metropolitan area ranked first in Texas and third in the U.S. within the category of "Best Places for Business and Careers" by Forbes.[21] The 2006 Fortune 500 list shows 24 firms headquartered in the 10-county Houston-Sugar Land-Baytown Metropolitan Statistical Area.
Banking and financial services are vital the region. Forty foreign governments maintain trade and commercial offices here and the city has 23 active foreign chambers of commerce and trade associations.[22].Eleven foreign banks representing 12 nations operate in Houston and provide financial assistance to the international community. [23]
- Further information: List of companies in Houston
[edit] High tech
[edit] Biotechnology and healthcare
The Texas Medical Center is the region’s life science focal point with $3.5 billion committed to research grants from 2000 through 2004, more than 43 member institutions, 5.2 million patient visits in 2004. More than 65,000 health care professionals work there every day, treating more than five million patients from all over the world every year. [24] The UT Research Park, a joint venture between The University of Texas M.D. Anderson and the UT Health Science Center at Houston, is located in the Medical Center. When fully developed, the UT Research Park will be made up of nearly 2 million square feet of research, lab, office and support space for private companies and not-for-profit research institutions. The venture will be focused on biotechnology and life sciences research. [25] Baylor College of Medicine is home to the Human Genome Sequencing Center, one of only five in the nation.
According to U.S. News and World Report, many hospitals in Houston consistently rank among the nation’s top healthcare institutions.[26]
[edit] Information technology and telecommunications
Houston has more than 1,000 computer-related companies. [27] State-of-the-art I.T. developed in Houston impacts many entities, including the Mayor’s Technology Task Force that created the ouston Transtar Center, a centralized police, fire and emergency medical services dispatch center. Since its inception in 1999, Houston Technology Center has become the center of technology entrepreneurship in Houston. HTC has helped more than 150 emerging technology companies raise more than $400 million in capital and create about 1,000 new jobs.
Houston, with a customer base of more than 3 million, is AT&T’s largest service city. The city's telecommunications infrastructure completes more than 70 million Houston telephone connections daily. [28] The Texas Public Utilities Commission has certified more than 400 additional Competitive Local Exchange Carriers to provide service state-wide or specifically within Houston. More than 1,600 interexchange carriers have registered with the commission to provide long distance service
[edit] References
- ^ http://www.aci-na.org/docs/5-has-10116page%20305.pdf
- ^ Houston Area Profile. Greater Houston Partnership
- ^ Gross Area Product by Industry. Greater Houston Partnership
- ^ http://www.houston.org/blackfenders/15AW001.pdf
- ^ http://www.houston.org/pdfs/EconomicForecast.pdf
- ^ Employment by Industry. Greater Houston Partnership
- ^ http://www.houston.org/industryGuide/manufacturing.asp
- ^ http://www.houston.org/blackfenders/16JW001.pdf
- ^ http://www.houston.org/blackfenders/16_W005.pdf
- ^ http://www.law.northwestern.edu/career/jobsearch/documents/Houston_Market_Report.pdf
- ^ http://www.nytimes.com/2005/09/06/business/06goldrush.html?ex=1212379200&en=7220360ed029c719&ei=5035&partner=MARKETWATCH
- ^ http://www.ruf.rice.edu/~che/about_us/houston_economy.html
- ^ http://www.energycities.org/index.asp
- ^ http://www.houston.org/industryGuide/petrochemical.asp
- ^ http://www.houston.org/blackfenders/16HW010.pdf
- ^ http://www.portsl.com/pages/15_overview.html
- ^ http://www.houston.org/industryGuide/aerospace.asp
- ^ http://www.voanews.com/english/archive/2006-09/2006-09-15-voa53.cfm?CFID=76425258&CFTOKEN=56257205
- ^ http://www.governor.state.tx.us/divisions/press/pressreleases/PressRelease.2006-09-20.3437
- ^ http://www.houston.org/blackfenders/14AW001.pdf
- ^ 2006 Best Places for Business and Careers. Forbes
- ^ International Representation in Houston. Greater Houston Partnership
- ^ http://www.houston.org/blackfenders/18AW001.pdf
- ^ http://www.houston.org/industryGuide/healthCare.asp
- ^ http://www.houston.org/blackfenders/16TW040.pdf
- ^ http://www.houston.org/blackfenders/13AW001.pdf
- ^ http://www.houston.org/industryGuide/informationTechnology.asp
- ^ http://www.houston.org/blackfenders/07IW001.pdf
